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Economics Questions and Answers for Competitive Exams | Indian Economy Quiz Set 5

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Questions
1 If a sample survey of the same 100 households is conducted in a particular village, annually for five years, the data so collected will be described as :
1 Time Series Data
2 Cross-section Data
3 Panel Data
4 Pooled Time Series and Cross-section Data

Answer:Panel Data
2 If in a distribution mean is 40, mode is 60 and the standard deviation is 10, then the coefficient of skewness will be :
1 −2
2 2
3 −20
4 5

Answer:−2
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3 In a multiple linear regression with 4 independent variables, the overall regression’s significance is to be tested. Which test would be used ?
1 Z test
2 F test
3 χ2 test
4 t test

Answer:F test
4 If a sample of 100 is to be taken from a population of 1000 farmers consisting of marginal small and large farmers, which of the following will be the most appropriate sampling method ?
1 Simple random sampling
2 Cluster sampling
3 Stratified random sampling
4 Systematic sampling

Answer: Stratified random sampling
5 If the producer pays the price for each of the inputs that is used is equal to its value of Marginal product, then which one of the following does he earn ?
1 Zero supernormal profit
2 Monopoly profit
3 Positive supernormal profit
4 Negative supernormal profit

Answer:Zero supernormal profit
6 In 2016, the Nobel prize in Economics was awarded for :
1 analysis of trade pattern and location of economic activity
2 analysis of asset prices
3 analysis of globalization
4 contributions to contract theory

Answer:contributions to contract theory
7 Which of the following is not true for perfect competition ?
1 Price =LAC
2 Market demand curve for a commodity is horizontal to X-axis
3 Firms earn normal profits
4 In the long run firms operate at the minimum point of average cost

Answer:Market demand curve for a commodity is horizontal to X-axis
8 Which amongst the following statements is correct ?
1 The minimum point of AVC and MC are at the same level of output
2 Minimum of AVC is at lesser output than the minimum of MC
3 Minimum of AVC is at larger output than the minimum of MC
4 Any of the above is possible depending upon operating of the law of returns

Answer:Minimum of AVC is at larger output than the minimum of MC
9 A firm in monopolistic competition advertises in order to :
1 make its product more similar to its competitors’
2 shift the demand curve for its product to the left
3 make the demand for its product less price elastic
4 reduce the industry’s price

Answer: make the demand for its product less price elastic
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10 Assume that people like onions on their hamburgers. If the supply of hamburgers decreases, the demand for onions will most likely :
1 remain unchanged because hamburgers and onions are different goods
2 increase because hamburgers and onions are substitutes
3 increase because hamburgers and onions are complements
4 decrease because hamburgers and onions are complements

Answer:decrease because hamburgers and onions are complements
11 In the shortrun, which of the following costs must continuously decrease as output increases ?
1 Total variable cost
2 Total fixed cost
3 Average variable cost
4 Average fixed cost

Answer:Average fixed cost
12 If export price increases by 5 percent and import price by 20 percent, the commodity terms of trade is :
1 0.91
2 0.87
3 0.25
4 4

Answer:0.87
13 If economic agents perfectly anticipate policy changes and if all prices, including wages, are completely flexible, which of the following will be true in the long run ?
1 There will be no trade - off between inflation and unemployment
2 The unemployment rate will be less than the natural rate of unemployment
3 The price level will be constant
4 Changes in the money supply will not lead to changes in the price level

Answer:There will be no trade - off between inflation and unemployment
14 Who made the statement, “Inflation is everywhere and always a monetary phenomenon’’ ?
1 Milton Friedman
2 James Tobin
3 T.W. Swan
4 A.W. Phillips

Answer:Milton Friedman
15 Who argued that Keynes’s theory of equilibrium with involuntary unemployment is a special case of the general equilibrium model, augmented to include money ?
1 W. Leontief
2 J.R Hicks
3 M. Friedman
4 D. Patinkin

Answer: D. Patinkin

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