List of practice Questions

Arrange the following statements based on Keynesian theory.
(A) Level of aggregate income rises in Keynesian world.
(B) Aggregate Saving as a function of GDP rises.
(C) Government expenditure rises.
(D) Fiscal deficit rises, given revenue receipts.
If the expected rate of return from the investment projects in India be 10% per annum, and if the exchange rate becomes Rs.88 per USD from Rs.80 per USD in one year, what would be the expected amount of profit in terms of US Dollar from an investment project of 100 Million USD in India from the point of view of an investor from the USA?
What would happen to the rate of interest, in new equilibrium, if the money supply rises in the Mundell-Fleming model under the flexible exchange rate and absolutely free capital mobility, if the international interest rate remains the same?
Tax holidays and cash grants are examples of
What would be the slope of the labour supply curve if there is large scale involuntary unemployment in the economy, if wage rate is measured along the vertical axis and labour supply is measured along the horizontal axis?
What would be the slope of the LM curve in the interest rate-income plane, if the rate of interest is exogenously determined by the Central bank?
Which statutory body determines the criteria for tax devolution from the divisible pool to the States in India?
Arrange the following rates in ascending order.
(A) Repo Rate
(B) Lending Rate
(C) Deposit Rate
(D) Reverse Repo Rate
Which of the followings are correct in the context of inflation?
(A) Higher aggregate demand may lead to demand-pull inflation.
(B) Higher cost of production may lead to cost-push inflation.
(C) Higher international food and fuel prices may lead to inflation.
(D) Higher indirect taxes and lower subsidy may lead to inflation.
Arrange the following events in chronological order
(A) New Economic Policy - Liberalisation
(B) Drain of Wealth
(C) White Revolution
(D) Monopolies Inquiry Commission
Match List-I with List-II:

List-I(Works)

List-II(Authors)

ATheory of Moral SentimentsIJ.M. Keynes
BTheories of Surplus ValueIIJ.S. Mill
CGeneral TheoryIIIAdam Smith
DOn LibertyIVKarl Marx

Choose the correct answer from the options given below
The GDP of an economy is Rs.100 crores. The aggregate saving is Rs.30 crores. If the autonomous aggregate investment rises from Rs.30 crores to Rs.45 crores, ceteris paribus, what would be the GDP in that economy in the new equilibrium?
If the GDP of an economy be Rs.100 and the autonomous aggregate investment and ex-post aggregate saving be Rs.30 in equilibrium, what would be the aggregate saving in equilibrium in that economy if the aggregate investment remains at Rs.30 and the average saving propensity increases from 30% to 40%?
Why is the Phillips curve negatively sloped?
Which of the following is not a part of the national income?
What does a bank do if there are no excess reserves?
Match List-I with List-II:

List-I(Scenarios)

List-II(Type of Externality)

AApple farmer who has his orchard next to a beekeeperIPositive Consumption
BVillages downstream from a manufacturing plantIINegative Consumption
CAn unvaccinated family living next door to a family who has received the COVID-19 vaccinationIIIPositive Production
DRice farmer who has his field next to a chemical plantIVNegative Production

Choose the correct answer from the options given below
Match List-I with List-II:

List-I

List-II

A\( y = ln(x)\)I\(\frac{1}{x}\)
B\(y=\frac{x^2}{4}\)II\(3x^2\)
C\(y=x^3\)III\(\frac{x}{2}\)
D\(y=x+1\)IV\(1\)

Choose the correct answer from the options given below
If a group of countries abolish trade barriers between themselves and set common tariffs for other countries, this is known as:
Transfer pricing refers to:
The current account balance in an open economy:
Stagflation describes a situation of:
A utility maximizing consumer has a utility function given by \(U(X,Y)=2X+Y\). He has a budget constraint given by \(X+2Y=10\). In equilibrium he purchases:
In a 2x2 general equilibrium model of exchange with goods X and Y and two consumers 1 and 2, both of whom have a weakly positive endowment of X and Y. In the exchange equilibrium, we know that:
Mr Tokai is very particular in how he makes his coffee. He is completely inflexible in that he can only take 1 teaspoon of coffee with 2 teaspoons of sugar. Any more coffee or sugar given to him is discarded in his quest for the perfect coffee. Suppose you give him 9 teaspoons of coffee and 2 teaspoons of sugar. How many cups of coffee can he create from this?