What does ‘Price Scissors’ refer to ?
Answer:A sharp fall in price of a major export item accompanied by a sharp rise in price of a major import
Hedging in the foreign exchange market refers to :
Answer: Covering a risk of foreign exchange in future.
Tax incidence refers to :
Answer:The person or group who ends up paying a tax.
Given the production function Q52 K1 3 . L2 3 , find the output level when 8 units of capital and
27 units of labour are used.
If OLS is applied separately to each equation that is part of a simultaneous interdependent system, the resulting estimates will be :
Answer: Biased and inconsistent
Which one of the following is not a plausible remedy for multicollinearity ?
Answer:Take logarithm of each of the variables
In which one of the following market situations are the firms mutually interdependent in pricing and output decisions ?
A tax is said to be buoyant if tax revenue is proportionally :
Answer:More responsive to changes in output
“Value and Capital” is written by who among the following economists ?
Giffen paradox occurs when income effect is :
Answer:Negative and is greater than the substitution effect
Which one of the following curves will respond the supply curve of labour ?
Answer:Marginal product curve of labour
Limit price refers to the :
Answer:Price which prevents entry of new firms
Intellectual property rights regime is managed by :
According to Heckscher - ohlin theorem, a nation will export a commodity which is :
Answer:Both (1) and (2) are necessary
Customs union always leads to :
Answer:Both trade creation and trade diversion effects