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 : In Leontief’s model own input coefficient’s are less than---- (a) Four (b) Three © Two (d) One
Last Answer : (d) One
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 : An increase in consumption at any given level of income will lead to (a) Higher aggregate demand. (b) An increase in exports. © A fall in taxation revenue. (d) A decrease in import spending.
Last Answer : (a) Higher aggregate demand.
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 : Total revenue is maximum when elasticity of demand is (a) 3 (b) 1 © 0 (d) 0.5
Last Answer : (b) 1
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 : 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 : 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 : 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 : 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
Description : Demand curve shifts downwards when (a) at the same price level demand falls (b) price increases and demand falls © price falls and demand also falls (d) at the same price level demand increases
Last Answer : © price falls and demand also falls
Description : When tariff is imposed on imports which of the following will increase? (a) Domestic output. (b) Domestic demand. © Domestic price. (d) Domestic consumption.
Last Answer : © Domestic price.
Description : Classical economists’ neglects---- side in their theories. (a) demand (b) supply © savings (d) investment
Last Answer : (a) demand
Description : In a boom (a) Unemployment is likely to fall. (b) Prices are likely to fall © Demand is likely to fall
Last Answer : (a) Unemployment is likely to fall.
Description : An increase in aggregate demand is more likely to lead to demand pull inflation (a) If aggregate supply is completely elastic (b) If aggregate supply is completely inelastic © If aggregate supply is unitary elastic (d) If aggregate supply is moderately elastic
Last Answer : (b) If aggregate supply is completely inelastic
Description : Demand pull inflation may be caused by (a) An increase in cost (b) A decrease in interest rate © A reduction in government spending (d) An outward shift of aggregate supply.
Last Answer : (b) A decrease in interest rate
Description : If an increase in investment leads to a bigger increase in national income (a) Accelerator (b) Aggregate demand © Monetarism (d) Multiplier
Last Answer : (d) Multiplier
Description : The cost of borrowing is equal to marginal propensity to consume. 21. Investment is (a) An injection that increases aggregate demand (b) An withdrawal that increases aggregate demand © An injection that decreases aggregate demand (d) An withdrawal that decreases aggregate demand
Last Answer : a) An injection that increases aggregate demand
Description : In explaining the level of unemployment, Keynes emphasized,- (a) Changes in technology. (b) Aggregate demand. © Inflationary expectations. (d) Lending by financial institutions.
Last Answer : (b) Aggregate demand.
Description : Factors of production in Input Output model is---- (a) one (b) two © three (d) four
Last Answer : (a) one
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 : In Input Output model only----product is produced (a) One (b) Two © Three (d) Four
Last Answer : (a) One (d) Four
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 : 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 : Marginal Propensity to Consume is (a) Increase in consumption due to one unit increase in income. (b) Total consumption divided by total income. © Both (a) and (b). (d) Neither (a) nor (b).
Last Answer : (a) Increase in consumption due to one unit increase in income.
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 : ’Infant industry argument’ in international trade is given in support of (a) Granting protection (b) Free trade © Encouragement to export oriented small and tiny industry (d) None of the above.
Last Answer : (a) Granting protection
Description : Cumulative frequency distribution is helpful to calculate----- (a) mean (b) median © mode (d) both (b) and (c).
Last Answer : (b) median
Description : Primary data is collected ---- from the field of enquiry (a) directly (b) indirectly © both directly and indirectly (d) none of the above
Last Answer : (a) directly
Description : Tariff is a----- (a) Quantitative restrictions on import. (b) Tax on import. © License on import. (d) Both (b) and (c).
Last Answer : (b) Tax on import.
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 : Terms of trade in developing countries are generally unfavourable because (a) They export manufacturing products. (b) They export primary products. © They export few goods. (d) Both (a) and (c).
Last Answer : (b) They export primary products.
Description : A tariff------ (a) Increases the volume of trade. (b) Reduces the volume of trade. © Has no effect on the volume of trade. (d) Both (a) and (c).
Last Answer : (b) Reduces the volume of trade.
Description : Which is not added in the calculation of national income in India? (a) The value of goods and services. (b) The sold value of old fridge. © Services rendered by the housewives (d) Both (b) and (c)
Last Answer : (d) Both (b) and (c)
Description : Savings represent (a) An injection to the circular flow of income (b) A withdrawal into the circular flow © Both an injection and a withdrawal (d) None of the above.
Last Answer : (b) A withdrawal into the circular flow
Description : Keynesian analysis is (a) A short run analysis. (b) Long run analysis. © Both short and long run analysis. (d) Neither short nor long run analysis.
Last Answer : (a) A short run analysis.
Description : The sensation of weightlessness in a spacecraft in an orbit is due to the - (1) Absence of gravity outside (2) Acceleration in the orbit which is equal to the acceleration due to gravity outside ... of gravity outside but not inside the spacecraft (4) Fact that spacecraft in the orbit has no energy
Last Answer : (2) Acceleration in the orbit which is equal to the acceleration due to gravity outside Explanation: Weightlessness in space is caused by the simple physical factors that cause the limitation of gravity. ... . Many people believe that a lack of gravity is the root cause for weightlessness in space.
Description : The sensation of weightlessness in a spacecraft in an orbit is due to the (1) absence of gravity outside (2) acceleration in the orbit which is equal to the acceleration due to gravity outside (3 ... of gravity outside but not inside the spacecraft (4) fact that spacecraft in the orbit has no energy
Last Answer : acceleration in the orbit which is equal to the acceleration due to gravity outside
Description : To stop exploitation of actual tillers and give them permanent rights – system was introduced (a) Green revolution. (b) Land reform. © Dry land farming. (d) None of the above.
Last Answer : (b) Land reform.
Description : Zamindari , Mahalwari and Ryotwari system were based on exploitation by the (a) Middleman (b) Tenant © Worker (d) None of them.
Last Answer : (a) Middleman
Description : Which indivisibilities have been described in Rodan’s development model ? (a) Indivisibilities in the production function only. (b) Indivisibilities of the Demand only. (c) Indivisibilities in the supply of savings only. (d) All the above indivisibilities.
Last Answer : (d) All the above indivisibilities.
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