MCQs 50

1.Law of demand which describe the  relation  bw Price and ......

a.Demand change
b.Quantity Demand change
c.Quantity Demand✔
d.1&2

2.What is income elasticity for inferior goods ?
a.Ey>1
b.Ey<1✔
c.Ey=
d.1or 2

3.What is income elasticity for Necessary goods ?
a.Ey>1
b.Ey<1✔
c.Ey=
d.1or 2

5.What is income elasticity for luxury  goods ?
a.Ey>1✔
b.Ey<1
c.Ey=
d. 1or 2

6.Chamberlin has introduced ______________ models of equilibrium in monopolistic competition.
a. one
b. two
c. three✔
d.four

7. Chamberlin has introduced a second demand curve named as _________________.

a. Individual demand curve
b. planned sales surve
c. actual sales curve✔
d. All of the above

8.The actual sales curve or second demand curve is derived by the locus of points of shifting ________________ as competitors change their prices.

a. individual demand curve✔
b. Marginal cost
c. Both a & b
d. None of the above

9.the individual demand curve of firm is also known as _________________ in monopolistic competition.

a. Planned sales curve✔
b. actual sales curve
c. share of the market curve
d. Both a and b

10.The first model of Chamberlin monopolistic competition is ___________________.

a. Equilibrium with new firms entering the industry.✔
b. Equilibrium with price competition
c. Equilibrium with price competition and free entry
d. All of the above

11.The second model of Chamberlin monopolistic competition is ___________________.

a. Equilibrium with new firms entering the industry.
b. Equilibrium with price competition✔
c. Equilibrium with price competition and free entry
d. All of the above

12.The third model of Chamberlin monopolistic competition is ___________________.

a. Equilibrium with new firms entering the industry.
b. Equilibrium with price competition
c. Equilibrium with price competition and free entry✔
d. All of the above

13.The third model of Chamberlin monopolistic competition is developed by joining by _________________.

a. Equilibrium with new firms entering the industry.
b. Equilibrium with price competition
c. Both a & b✔
d. None of the above

14.In first model of monopolistic competition it is assumed that firms are operation in _________________ and making _________________ profit.

a. short-run, abnormal profit✔
b. long-run abnormal profit
c. long-run, Normal profit
d. short-run normal profit

15.Abnormal profit ______________ firms.

a. attracts new✔
b. does not attract new
c. has no impact on entry or exit of
d. None of the above

16.The demand curve shifts due to ______________.

a. entry or exit of firms.✔
b. price adjustments
c. Both a & b
d. None of the above

17.In first model of monopolistic competition equilibrium is attained by the ___________________.

a. entry or exit of the firm✔
b. price adjustment
c. Both a & b
d. None of the above

18.In first model of monopolistic competition equilibrium is where individual demand curve tangents ______________. it is a point where firms earn normal profit.

a. LAC✔
b. LMC
c. MR
d. None of the above

19.In second model of monopolistic competition, equilibrium is attained by _______________.

a. entry or exit of firms.
b. price adjustment✔
c. Both a & b
d. None of the above

20.In third model of monopolistic competition equilibrium is attained by _______________.

a. entry or exit of firms.
b. price adjustment
c. Both a & b✔
d. None of the above

21.Macro-Economics deals with _________________.

a. whole economy✔
b. individual units of economy
c. Both a & b
d. None of the above

22.Classical macro-economists believe that prices are _______________.

a. flexible✔
b. rigid
c. Both a & b
d. None of the above

23.According to classical macro-economists rate of interest is ________________.

a. flexible✔
b. rigid
c. Both a & b
d. None of the above

24.According to classical macro-economists wages are _______________.

a. flexible✔
b. rigid
c. Both a & b
d. None of the above

25.According to classical macro-economists there is always _____________ employment level in economy.

a. full✔
b. zero
c. low
d. high

26.Which one is incorrect context of monopoly ?

1.AR=MR(E/E-1)
2.set the price on  E<1
3.set the price on E>1
4.cross elasticity is zero
Code:
A.1,2 &  4✔
B.1,3 &  4
C.1& 4
D.None

27.Limit of multiple correlation coefficient?
A. -ve infinity to +ve infinity
B. -1 to +1✔
C. 0 to infinity
D. 0 to 1

28.Which of the following measures of Central tendency will be the most appropriate to use if the data relate to rates , proportions and ratios ?

1.Median
2.Harmonic Mean
3.Geometric Mean✔
4.None

29.Which is incorrect about SEZ of the following ?
1.Its lunched in India in 2000
2.Act is 2005
3.Norms Published in 2006
4.All are correct✔

30.What is incorrect about SEZ Background ?
1.its 1st appeared in 1950
2.china followed from 1979
3.objective labour intensive Manufacturing process
4.That time effective in Developing country✔

31.Arrange in Choronological Order of the following :
A.Keyns'consumption function
B.Life cycle hypothesis
C.Relative income hypothesis
D.Permanant income hypothesis
Code:
1.ACBD✔
2.BACD
3.ACDB
4.CDBA

32.A monopolist sell output elasticity of demand:
1)0
2)<1
3)>1✔
4)one

33.How many are Regional Rural Bank ?
1.64
2.93
3.56✔
4.27

34.How much paid up capital need there for New Bank establishment ?
1.200 cr
2.500cr✔
3.300cr
4.100Cr

35.what is difference bw  Steady state and stationary state ?
1.only classical & Neo classical ✔
2.Constant & incresing Return to scale
3.Both
4.None

36.Consider the following and find out incorrect against Malthusian theory of Population :-                    
A.Positive Checks                 
B.Man made checks              C.Contraception ✔           
D.None

37.Why was Malthusian theory of Population criticised?                          
A.Not follow technical progress                        
B.Only fucus on self control check                         
C.Fail Mathematical Nature                              
D.All✔

38. During which Five Year Plan the price level in Indian Economy should a decline?
A. Plan 1✔
B. Plan 11
C. Plan IV
D. Annual plan

39.Which one act as a clearing house for foreign exchange dd and ss in course of foreign transaction by nation's residents

a Central bank✔
b. Commercial banks
c 1&2
d 2 only

40.Consider the following statements:
1 .Liauidity trap is a situation when people prefer to hold money rather than investing it.
2. Liquidity preference is the situation when people prefer to invest money rather than hold it.
3. Liquidity crunch is a situation of short- supply of money in the money market
4. Credit crunch is a situation of short- Supply of money in the loan market
Select the correct statements using the code given below :
A. 1,2, &3
B. 2,3, &4
C. 1,2,& 4
D. 1,3,& 4✔

41. Select the correct statement: Regarding the process of Disinflation
A. Prices fall towards the upper limit of the healthy range of the headline inflation .✔
B. Price levels fall below the lower limit of the healthy range of inflation
C. Retail inflation index falls down to single digit
D. It is similar to deflation

42.In financial economics what is white cow:-
a primary stocks✔
b secondary stocks
c preference share
d none

43.Marginal costing is also known as...
A. Variable costing✔
B. Additional costing
C. Direct costing
D. NONE

44.if the events happed bw Ram & Mohan .possibility Ram's 3/4 and Mohan's 2/8 then what will be neither possibility bw them ?
A.1
B.3
C.3/16✔
D.None

45.what is income elasticity when MPC=0.7 and APC = 0.5 ?
A.5/7
B.7/5✔
C.1
D.None

46.How many % capical Adequacy Ratio (CAR) needed to Public sector Bank:-
1.9%
2.12%
3.8%
4.4%

47.Paid capital had to be increased 200cr to ____within three year to the Bank.
1.250
2.300
3.400
4.500

48.At present 1st April 2019,how many public sector and Nationalised banks?
1.21 & 26
2.20 & 21
3.20 & 19
4.18 & 17✔

49.Expected revenues from the use of the capital assets plus variable cost is called :-
1.Prospective Income
2.supply price
3.prospective  yield ✔
4.None

50.Expected revenues from the use of the capital assets minus variable cost is called :-
1.Prospective Income ✔
2.supply price
3.prospective  yield
4.None