Economics Questions and Answers - Set 33 | Indian Economy Solved Multiple Choice Questions(MCQs)

1 In a multiple regression the regression coefficients are to be tested. Which test would be used ?

1 F test

2 χ 2 (Chi-square)test

3 d test

4 t test

View Answer

Answer:t test

2 Which is called Gossen’s second law ?

1 Law of Equi-marginal Utility

2 Law of Diminishing Marginal Utility

3 Revealed Preference Theory

4 Indifference Curve Approach

View Answer

Answer:Law of Equi-marginal Utility

3 When a consumer is in equilibrium, MRSXY is 2.5. If the price of commodity Y is 16, then what will be the price of commodity X ?

1 40

2 6.4

3 23.2

4 24

View Answer

Answer:40

4 Which of the conditions support long run equilibrium in monopolistic competition ?

1 MR = MC, AR = AC

2 P = MC, AR = AC

3 MR = MC = AR = AC

4 AR = MC = AC

View Answer

Answer:MR = MC, AR = AC

5 Who explained importance of time element in price determination, for the first time ?

1 Chamberlin

2 Stigler

3 Mrs. Joan Robinson

4 Marshall

View Answer

Answer:Marshall

6 Law of diminishing returns begins to operate when :

1 Total product begins to rise.

2 Total product begins to fall.

3 Marginal product begins to rise.

4 Marginal product begins to fall.

View Answer

Answer: Marginal product begins to fall.

7 Assuming wage-price flexibility, the classical economists asserted that a decline in money wages and price would lead to

1 Unemployment

2 Deflation

3 High level of employment and output

4 Unemployment and decline in output

View Answer

Answer:High level of employment and output

8 The classical theory of interest postulates that both savings and investments are a function of

1 the level of National income

2 the level of employment and output

3 monetary and fiscal policy

4 rate of interest

View Answer

Answer:rate of interest

9 The relative income hypothesis of Duesenberry suggests that as income increases, consumption function curve shifts above and therefore,

1 Average propensity to consume rises.

2 Average propensity to consume falls.

3 Average propensity to consume remains constant.

4 Average propensity to consume is equal to 1.

View Answer

Answer:Average propensity to consume remains constant.

10 Who among the following said, “Inflation is everywhere and always a monetary phenomenon” ?

1 James Tobin

2 John M. Keynes

3 Milton Friedman

4 Anna J. Schwartz

View Answer

Answer: Milton Friedman

11 Accelerator is most closely related to

1 interest rate

2 inventories

3 idle capacity

4 induced investment

View Answer

Answer: induced investment

12 Which one of the following would be inconsistent with the Keynesian view about the effectiveness of monetary policy ?

1 Velocity of money is relatively stable.

2 The demand for money is unstable

3 The demand for money is interest sensitive.

4 Investment demand is unstable.

View Answer

Answer:The demand for money is interest sensitive.

13 Which of the following statement is true ?

1 Sporadic dumping is selling of goods at a low price in the foreign market to get rid of the inventory stocks.

2 Predatory dumping is destroying of competitors even at a loss initially and then, after eliminating of competitors, selling product at a high price.

3 Persistent dumping is selling a product at a lower price in foreign markets due to differences in elasticity of demand at home and in the foreign market.

4 All the above.

View Answer