Description : Leontief’s input output model is based on the concept of----- (a) Consumption function (b) Partial Equilibrium © General Equilibrium. (d) All of the above.
Last Answer : © General Equilibrium.
Description : Isoquants in Leontief’s input- output model are (a) Variable coefficient (b) Fixed coefficient © Sometimes fixed sometimes variable (d) None of the abov
Last Answer : (b) Fixed coefficient
Description : Leontief’s model is open due to the fact that final demand is given from----- the system (a) within (b) outside © both (a) and (b) (d) none of the above.
Last Answer : (b) outside
Description : Factors of production in Input Output model is---- (a) one (b) two © three (d) four
Last Answer : (a) one
Description : In Input Output model only----product is produced (a) One (b) Two © Three (d) Four
Last Answer : (a) One (d) Four
Description : The isoquants in Input Output model is (a) convex to the origin (b) concave to the origin © l shaped. (d) straight line.
Last Answer : © l shaped.
Description : Hawkins Simon condition explains the----- condition in Input output model (a) Instability (b) Stability © Uniqueness (d) None of the above
Last Answer : (b) Stability
Description : n simple Keynesian model, stability of equilibrium exists, if (a) APC is less than one. (b) APS is less than one. © MPC is less than one. (d) None of the above.
Last Answer : (a) APC is less than one.
Description : Diminishing returns occurs when a firm (a) uses too much of all inputs (b) uses more and more of one input while holding another inputs constant © does not utilize its inputs efficiently (d) cut down on the quantity of all inputs it uses
Last Answer : b) uses more and more of one input while holding another inputs constant
Description : There are ----types of line diagram (a) one (b) two © three (d) four
Last Answer : (b) two
Description : . In Heckscher Ohlin theory factors of production are---in number. (a) one (b) two © three (d) four
Description : Leontief”s model explains a----- equilibrium. (a) static (b) dynamic © both static and dynamic (d) none of the above
Last Answer : (a) static
Description : Which of the following statement is incorrect,- In simple Keynesian model,- (a) MPC+MPS=1 (b) APC+ APS=1 © Both (a) and (b) (d) Neither (a) nor (b).
Last Answer : (d) Neither (a) nor (b).
Description : n the simple Keynesian model investment is (a) Fixed. (b) A function of level of income. © Either fixed or a function of level of income. (d) None of the above.
Last Answer : © Either fixed or a function of level of income.
Description : n the simple Keynesian model consumption is a function of, (a) Rate of interest. (b) Level of income. © Price level. (d) None of the above.
Last Answer : (b) Level of income.
Description : The forecasting model that pools the opinions of a group of experts or managers is known as the……… (a) sales force composition model ; (b) jury of executive opinion model (c) consumer market survey model ; (d) management coefficients model
Last Answer : (b) jury of executive opinion model
Description : Afirm will close down in the short run, if AR is less than (a) AC (b) AVC © MC (d) none of the above
Last Answer : (b) AVC
Description : A profit maximizing firm will invest up to the level of investment where (a) The cost of borrowing equals marginal efficiency of capital (b) The cost of borrowing is greater than marginal ... marginal efficiency of capital (d) The cost of borrowing is equal to marginal propensity to consume.
Last Answer : (a) The cost of borrowing equals marginal efficiency of capital
Description : Which of the following are not characteristics of Keynesian consumption function? (a) The main influence on consumption in the short run is current disposable income (b) The marginal ... consume decreases as income increases (d) The average propensity to consume increases as income increases
Last Answer : d) The average propensity to consume increases as income increases
Description : If capital is available in large proportion and labour is less then the economy is known as (a) Labour intensive country (b) Capital intensive country. © Both (a) and (b). (d) None of the above.
Last Answer : (b) Capital intensive country.
Description : The contribution of agricultural sector is decreasing in India’s economy then what conclusion can be drawn? (a) India is growing towards a developed economy. (b) India is growing towards a developing economy. © India is growing towards a less developed economy. (d) None of the above.
Last Answer : (a) India is growing towards a developed economy.
Description : Derive the relation between three coefficients of thermal expansion.
Last Answer : Derive the relation between three coefficients of thermal expansion.
Description : Comparative advantage occurs when (a) A country can produce more goods than anyone else (b) A country has a lower opportunity cost in the production of a good than any other country © A country has more product lines than other countries (d) The exchange rate appreciates.
Last Answer : (b) A country has a lower opportunity cost in the production of a good than any other country
Description : A price consumption curve, traces the utility maximizing combination of two goods when (a) the price of one good changes (b) the consumer’s preference change © the consumer’s income changes (d) the demand curve for one of the goods shifts rightward
Last Answer : (a) the price of one good changes
Description : In case of horizontal demand curve , price elasticity of demand is (a) equal to zero (b) equal to one © equal to two (d) infinite
Last Answer : (a) equal to zero
Description : Trade between two countries can be beneficial if cost ratio between two countries are ( a) Same (b) Different © Undetermined (d) Decreasing
Last Answer : (b) Different
Description : Gains from trade can be divided into two parts (a) gains from exports and gains from imports. (b) gains from specialization and gains from exchange. © gains from consumption and gains from production. (d) gains from profit and gains from loss.
Last Answer : (b) gains from specialization and gains from exchange.
Description : According to Heckscher and Ohlin there are two bases of international trade (a) coparative advantage and absolute advantage (b) gains from trade and cost of trade. © difference in factor endowments and differences in factor intensities. (d) none of them.
Last Answer : © difference in factor endowments and differences in factor intensities.
Description : If the production possibility curve is linear, then production is said to be subject of (a) constant opportunity cost (b) decreasing opportunity cost © Increasing opportunity cost (d) first increasing then decreasing opportunity cost.
Last Answer : (a) constant opportunity cost
Description : Normally the isoquant slopes (a) downwards from left to right (b) upward from right to left © upwards from left to right (d) backwards from left to right
Last Answer : (a) downwards from left to right
Description : For getting total revenue, the formula is (a) TR/Q (b) MR+Q © AR/Q (d) AR X Q
Last Answer : (d) AR X Q
Description : Total revenue is maximum when elasticity of demand is (a) 3 (b) 1 © 0 (d) 0.5
Last Answer : (b) 1
Description : .All of the following curves are U-shaped, except the (a) AFC curve (b) MC curve © AC curve (d) AVC curve
Last Answer : (a) AFC curve
Description : Difference between average cost and average revenue is (a) total profit (b) net profit © average profit (d) marginal profit
Last Answer : © average profit
Description : Opportunity cost is a/an (a) spill-over cost (b) money cost © alternative cost (d) social cost
Last Answer : © alternative cost
Description : In the long run, which of the following factors of production is fixed? (a) capital (b) building © labour (d) none of the above
Last Answer : (d) none of the above
Description : “Higher the indifference curve, higher will be the level of satisfaction” (a) always true (b) always false © sometimes true and sometimes false (d) true only if price effect is positive.
Last Answer : (b) always false
Description : Marginal rate of substitution is the ___of the indifference curve (a) mean (b) slope © peak (d) inverse
Last Answer : (b) slope
Description : Marginal utility means (a) change in total utility due to one unit change in consumption (b) change in total utility due to no change in consumption © change in utility due to change in price (d) change in utility due to change in income
Last Answer : (a) change in total utility due to one unit change in consumption
Description : Total utility is maximum, when (a) marginal utility is maximum (b) marginal utility is zero © marginal utility increases (d) average utility is maximum
Last Answer : (b) marginal utility is zero
Description : “ All Giffen goods are inferior, but all inferior goods are not Giffen”. The statement is (a) sometimes true (b) true © false (d) none of the above
Last Answer : (b) true
Description : An increase in product price will cause (a) quantity demanded to decrease (b) quantity supplied to decrease © quantity demanded to increase (d) the demand curve to shift to the left
Last Answer : (a) quantity demanded to decrease
Description : If consumer’s income increases, the demand for normal product X (a) will remain unchanged (b)will necessarily increase © will necessarily decrease (d) may increase or decrease
Last Answer : (b)will necessarily increase
Description : The law of diminishing marginal utility is most useful for explaining the (a) Law of supply (b) Law of demand © Shape of production possibility curve (d) curvature of total cost curve
Last Answer : (b) Law of demand
Description : A rightward shift in the supply schedule indicates (a) a decrease in supply (b) an increase in supply © an increase in quantity supply (d) a decrease in quantity supply
Last Answer : (b) an increase in supply
Description : The quantity demanded depends on (a) its price (b) income © price of other goods (d) all of the above
Last Answer : (d) all of the above
Description : Demand curve remaining the same, if the supply curve shifts to the right then (a) Price and quantity move in the same direction (b) Price and quantity move in the opposite direction © Price and quantity remain unchanged (d) None of the above.
Last Answer : (b) Price and quantity move in the opposite direction
Description : The basic problem of an economy is (a) What to produce? (b) How to produce? © For whom to produce? (d) All of the above.
Last Answer : (d) All of the above.
Description : Cross-price elasticity of demand between tea and coffee is (a) negative (b) positive © zero (d) infinite
Last Answer : (b) positive
Description : Price elasticity of demand shows the relationship between demand for a commodity and (a) price of other commodities (b) price of that commodity © tastes and preferences of the consumer (d) income of the consumer
Last Answer : (b) price of that commodity