Contact www.kimsharma.co.in for best and lowest cost solution or Email: amitymbaassignment@gmail.com Call: +91 8290772200 Assignment solution help, Assignment answers help, Assignment Help Economics Test 1 Q1. The equation for calculation of Gross Domestic Product through expenditure approach is Y=C+I+G+ (X-M) Y=C+I+ (X-M) Y=C+I+G (X-M) Y=C+I+G+ (X+M) Q2. Which of the following is true concerning the relationship between the marginal propensity to consume and the consumption function? The smaller the MPC, the steeper the consumption function The larger the MPC, the steeper the consumption function The larger the MPC, the larger the MPS The larger the MPC, the Higher the level of autonomous consumption Q3. Macroeconomics does not comprise of Growth of national income Study of unemployment in a country Employment of factor inputs by a firm Inflation in a country Q4. A decrease in demand for a good could mean that The demand curve has shifted to the left The demand curve has undergone a parallel shift to the right Consumers are willing to pay a higher price for each quantity of the good Consumers are willing to buy larger quantities of the good at each price Q5. The cost of the factor inputs hired by the producer to produce final output is called as Marginal cost external cost implicit cost explicit cost Q6. Cartel is Used to explain price rigidity A form of tacit collusion A form of overt collusion Non collusive oligopoly Q7. Marginal utility is defined as the Additional satisfaction gained from consuming one more unit of a product Average amount of satisfaction gained from consuming a product Total amount of satisfaction gained from consuming a product divided by the number of units consumed Total amount of satisfaction gained from consuming a product Q8. A firm earns maximum profit when MC=ATC TR is greater than TC by the larger amount MC=MR Total revenue equals total costs Q9. If Marginal Product of labour is lesser than Average Product of labour, then Product of labour is Constant Increasing Decreasing Maximum Q10. Which of the following would cause as increase in the velocity of money? An increase in the money supply A decrease in interest rates An increase in demand for money Increased use of credit cards Q11. Which of the following describes a situation in which demand must be elastic? Total revenue decreases by more than 15 percent when the price of corndogs rises by 15 percent Total revenue increases by $15 when the price of corndogs rises by $15 Total revenue increases by 15 percent when the price of corndogs rises by 15 percent. Total revenue increases by less than 15 percent when the price of corndogs rises by15 percent. Q12. Price discrimination refers to Selling a given product for different prices at two different points in time any price above that which is equal to a minimum average total cost the difference between the prices a purely competitive seller and a purely monopolistic selling would charge the selling of a given product at different prices that do not reflect cost differences Q13. Short run cost curves behavior is explained by Economies of scale Laws of returns Law of variable proportions Law of increasing returns Q14. Which of the following industry most closely approximates the oligopoly model Wheat wholesaler Automobile Services of doctors Nuclear energy Q15. In autarky, Each country’s consumption possibilities are the same as its production possibilities Equilibrium is attained with the maximum gains from specialization and trade Equilibrium is attained with the maximum amount of international trade A nation is governed by an individual with absolute authority Q16. If future price changes were perfectly anticipated by both borrowers and lenders, what would happen to the real interest rate in the future if the price level changed? It would not change It would decrease It would increase It would decrease by the amount of the price increase Q17. The percentage change in the demand for film divided by the percentage change in the price of cameras indicates The price elasticity of demand for cameras The cross-price elasticity of demand for photograph The cross-price elasticity of demand between film and cameras The price elasticity of demand for film Q18. If a 12 % fall in price of burgers leads to a 3% increase in quantity demanded of burgers, then price elasticity would be -1.25 -0.5 -4 -0.25 Q19. The reason that you don’t drink five cups of coffee at breakfast is that The price of coffee rises as you buy more cups The total utility of coffee rises as you consume more cups The marginal utility of extra cups of coffee eventually diminishes The marginal satisfaction derived from cups of coffee remains constant Q20. Returns to scale depicts the relationship of an impact on output when there is a change In all inputs simultaneously In all inputs simultaneously and in different proportion In all inputs simultaneously and in same proportion None of the above Q21. Demand pull inflation is due to All of these Increase in income with population Increase in purchasing power Increase in money supply Q22. The law of demand refers to A shift in the demand curve that occurs when a variable other than the good’s own price changes A functional relationship between the various possible prices of a good and the quantity supplied by sellers of it per time period The proposition that price and quantity demanded can be expected to be inversely related showing that consumers will be willing and able to buy more of a good at lower prices that they are at higher prices The amounts of a good that consumers are willing and able to buy and other relevant variables such as income or the prices of other goods. Q23. The simple spending multiplier is 1/(1-MPC) 1/MPC -MPC/(1-MPC) MPC/(1-MPC) Q24. Oligopolistic industries are characterized by Large firms and high entry barriers A few dominant firms and low entry barriers Large number of firms and low entry barriers A few dominant firms and substantial entry barriers Q25. The equilibrium quantity of aggregate output occurs when Planned aggregate expenditure equals income generated from production Actual aggregate expenditure equal real GDP The economy reaches the full employment of labor Inventories of good and services are increasing Q26. The firm is a price taker under All of these Monopolistic competition Perfect competition oligopoly Q27. The quantity theory of money states that Since velocity is not stable, changes in the money supply have unpredictable impacts on income Since velocity is reasonably stable, we can predict the effects of an increase in the money supply on employment MV=PY Since velocity is reasonably stable, we can predict the effects of an increase in the money supply on nominal income Q28. When total utility is maximum Marginal Utility is Falling and positive Zero Falling and negative Rising Q29. An isoquant is Least cost combination A locus of input combinations that give the same level of output A locus of input combinations that give the different level of output A locus of product combinations that give the same level of satisfaction Q30. Under monopolistic competition there is absence of cost of transportation sellers have absolute control over price of the product sellers control price through brand loyalty buyers have perfect market information Contact www.kimsharma.co.in for best and lowest cost solution or Email: amitymbaassignment@gmail.com Call: +91 8290772200 Assignment solution help, Assignment answers help, Assignment Help Economics Test 2 Q1. The demand curve faced by a pure monopolist May be either more or less elastic than that faced by a single purely competitive firm Is more elastic than that faced by a single purely competitive firm Has the same elasticity as that faced by a single purely competitive firm Is less elastic than that faced by a single purely competitive firm Q2. The higher the anticipated inflation rate, The less workers will ask for increase in wages, and the less firms will agree to pay The more workers will ask for increase in wages, and the less firms will agree to pay The more workers will ask for increase in wages, and the more firms will agree to pay The higher the real wages increase offered by firms Q3. A firm can earns maximum profit when MC=ATC TR is greater than TC by the larger amount MC=MR Total revenue equals total costs Q4. Which of the following is assumed constant along the aggregate expenditure line? Actual investment Consumption Unintended inventory adjustment The price level Q5. In choosing between burger and shirts, consumer increase their purchases of each until The marginal utility from the last rupee of burger is the same as from the last shirt The marginal utility from the last rupee spent on one is the same as the another The total utility from one is the same as from the other None of the above Q6. Contractionary gap can be controlled by Decrease in taxation and increase in public expenditure Increase in taxation and increase in public expenditure Increase in taxation and decrease in public expenditure Decrease in taxation and decrease in public expenditure Q7. If a 12 % fall in price of burgers leads to a 3% increase in quantity demanded of burgers, then price elasticity would be -1.25 -0.5 -4 -0.25 Q8. For a perfectly competitive firm the average revenue Is equal to marginal revenue Is higher than marginal revenue Is lower than total revenue Coincides with total revenue Q9. A decrease in demand for a good could mean that The demand curve has undergone a parallel shift to the right Consumers are willing to buy larger quantities of the good at each price The demand curve has shifted to the left Consumers are willing to pay a higher price for each quantity of the good Q10. Utility is Hard to measure because it is a subjective concept Easily measure because it is an objective concept Easily measure because it is a subjective concept Easily measure because all people derive the same utility from consumption Q11. In the long run, a monopolistic competitor Any of above Incurs losses Reaps normal profits Make economic profit Q12. Which of the following industry most closely approximates the oligopoly model Wheat wholesaler Automobile Services of doctors Nuclear energy Q13. The percentage change in the demand for film divided by the percentage change in the price of cameras indicates The price elasticity of demand for cameras The cross-price elasticity of demand for photograph The cross-price elasticity of demand between film and cameras The price elasticity of demand for film Q14. A firm is in equilibrium when Marginal revenue is more than marginal cost Marginal revenue is equal to marginal cost Both conditions 1 and 2 are fulfilled Marginal cost of the firm is rising Q15. Returns to scale depicts the relationship of an impact on output when there is a change In all inputs simultaneously In all inputs simultaneously and in different proportion In all inputs simultaneously and in same proportion None of the above Q16. If an imperfectly competitive firm is selling its 100th unit of output for $35, its marginal revenue May be either greater or less than $35 Will be less than $35 Will be greater than $35 Will also be $35 Q17. Fiscal policy is concerned with Government spending and money only Government spending and taxation only Government spending, taxation and money Money and taxation only Q18. The crowding in of private investment is associated with A reduction in the level of government spending Increased investment opportunities resulting from a withdrawal of foreign investors Increased investment opportunities resulting from a decline in interest rates More favorable business expectations resulting from an increase in aggregate demand induced by increased government borrowing Q19. When economists say that people act as rational decision makers, that means Once a pattern of behavior has been established, people tend to become set in their ways They gather all relevant information before making their purchases People rarely make errors when they are permitted to make transactions People respond in predictable ways to changes in costs and benefits Q20. GDP Price Index is calculated by formula Real GDP/Nominal GDP*100 Nominal GDP/Real GDP Nominal GDP/Real GDP*100 Real GDP/Nominal GDP Q21. Gross Domestic Product can be calculated by adding ______in an accounting year Expenditure approach Adding income earned by all factors inputs Adding output produced by all sectors Any of these methods Q22. Demand pull inflation is due to All of these Increase in income with population Increase in purchasing power Increase in money supply Q23. If the economy experiences a contractionary gap and the RBI stimulates the economy. The money supply is increasing because the RBI prints more money The money supply is increasing because the RBI makes open-market purchases The money supply is decreasing because the RBI makes open-market sales The money supply is decreasing because the RBI hoards money Q24. Gross domestic product is The sum of money value of all intermediate goods and services produced within the domestic territories of a country during an accounting year The aggregate final goods and services produced during an accounting year The sum of money value of all final goods and services produced within the domestic territories of a country during an accounting year The aggregate intermediate goods and services produced during an accounting year Q25. Under perfect competition there are Large number of buyers Large number of buyers and sellers Large number of sellers Large number of buyers and sellers and selles are small in size Q26. Price elasticity of demand is calculated as The percentage change in price divided by the percentage change in quantity demanded The percentage change in quantity demanded divided by the percentage change in price The absolute change in quantity demanded divided by the absolute change in price The absolute change in price divided by the absolute change in quantity demanded Q27. If Marginal Product of labour is lesser than Average Product of labour then Average product of labour is Constant Increasing Decreasing Maximum Q28. Macroeconomics does not comprise of Growth of national income Study of unemployment in a country Employment of factor inputs by a firm Inflation in a country Q29. If the price charged by a firm is greater than average cost of production, the firm earns Economic profit Normal profit Incurs losses Any of these Q30. When prices increase at such a speed that the value of money falls drastically is called as Headline inflation Hyperinflation Core inflation Stagflation Contact www.kimsharma.co.in for best and lowest cost solution or Email: amitymbaassignment@gmail.com Call: +91 8290772200 Assignment solution help, Assignment answers help, Assignment Help