List of top Economics Questions asked in Indian Institute Of Technology Joint Admission Test for MSc

Consider the economy described by the following: \[ Y = C + I + G \quad \text{with} \quad Y = 5000, \, G = 1000, \, T = 1000, \quad \text{and} \quad C = 250 + 0.75(Y - T), \] where \( Y \), \( C \), \( I \), \( G \), and \( T \) are national income, private consumption spending, investment expenditure, government expenditure, and tax revenue respectively. In this economy, private saving is ............

Price of milk of certain brand was Rs.28/litre and Rs.36/litre in the months of September and October of 2015, respectively. Assume equal amounts of money is spent on that brand of milk by a particular family in each of these months. The average monthly price of milk paid by this family during these months is ............ per litre (rounded off to one decimal place).

Demand curve for a commodity in your consumption basket is given by \( P^2 Q^5 = 392.67 \). The absolute value of your own price elasticity of demand for this commodity is ........ (rounded off to one decimal place).

Lerner Index (\( L \)), a measure of market power, is defined as \( L = \frac{P - MC}{P} \), where \( P \) and \( MC \) are, respectively, price and marginal cost of a firm. If a profit maximizing firm faces the demand curve \( P^2 Q = 7 \), the value of \( L \) is ............ (rounded off to one decimal place).

The present value of a perpetual cash flow of Rs.250 per year, discounted at the rate of 10% each year, is .........

An economy saves 25% of its national income and invests a sum of Rs.1000 each year. The economy starts with Rs.10,000 as its initial national income. Assume that the consumption in any year depends on the income of the previous year. The national income of the economy after 10 years is Rs. ........... (rounded off to two decimal places).

Suppose utility function of a consumer is \( u(x, y) = xy \), where \( x \) and \( y \) are quantities of the two commodities consumed. If price of \( x \) is Rs.1 and that of \( y \) is Rs.2, and income of the consumer is Rs.100, utility maximizing quantity consumption of \( x \) is ..........

Suppose an economy produces 100 kg of rice in a year and sells that for Rs.100 per kg. If the quantity of money in the economy is Rs.500, then the velocity of money is ..............

A monopolist produces a product and sells to two types of buyers: A and B. The inverse demand functions for A and B are given by \( P = 50 - 5Q \) and \( P = 100 - 10Q \), respectively. The monopolist’s cost function is given by \( C = 90 + 20Q \). The profit maximizing output of the monopolist for buyer B is .........

Suppose the GDP growth rate is 8% and the rate of saving in the economy is 40%. The incremental capital output ratio (ICOR) is ............

The composition of the adult population in an economy is as follows: Employed: 140 million; Unemployed: 10 million; Not in labour force: 50 million. The rate of unemployment is .......... % (rounded off to two decimal places).

A monopolist produces two commodities 1 and 2 in quantities \(x_1\) and \(x_2\) at a constant average cost of Rs.2.50 and Rs.3.00 per item, respectively. If \(p_1\) and \(p_2\) stand for the prices charged and the market demands are: \[ x_1 = 5(p_2 - p_1) \quad \text{and} \quad x_2 = 32 + 5p_1 - 10p_2 \] The price \(p_1\) for commodity 1 at which the monopolist's total profit is maximised is (rounded off to two decimal places).

Which of the following reference period(s) is/are used by the National Sample Survey for measuring employment and unemployment?

In the case of first-degree price discrimination, which of the following statements is/are CORRECT in the long run?

Which of the following statements is/are CORRECT for diseconomies of scale?

Market failure occur(s) in the presence of which of the following?

Which of the following is/are CORRECT according to the classical macroeconomic school?

Which of the following is/are CORRECT in the case of a small open economy with floating exchange rate?

Which of the following is/are the shock(s) to the IS curve?

Which of the following statements describe(s) the relationship between \( R^2 \) and adjusted \( R^2 \) (denoted by \( \bar{R}^2 \))?

Which of the following is/are NOT the assumption(s) of Classical Linear Regression Model (CLRM)?

Marginal utility of a good refers to the ............

You are measuring level of consumption of a good commodity on the X-axis and that of a bad commodity on the Y-axis. The indifference curve is ............

In the case of ‘liquidity trap’, ..........