List of practice Questions

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 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.
Which statutory body determines the criteria for tax devolution from the divisible pool to the States in India?
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%?
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(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
What does a bank do if there are no excess reserves?
Which of the following is not a part of the national income?
Why is the Phillips curve negatively sloped?
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:
If a group of countries abolish trade barriers between themselves and set common tariffs for other countries, this is known as:
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:
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\(1\)

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Stagflation describes a situation of:
The current account balance in an open economy:
Transfer pricing refers to:
Debts which have to be paid at some specific future date are known as:
If a consumer definitely prefers a payment of INR 50 for sure to a lottery which promises rewards of INR 100 or INR 0 with probabilities of 1/2 each, then we can say that the consumer is:
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?
Services such as the provision of clean air and national security are considered to be:
The mark-up as a fraction of price for the profit-maximizing quantity \( Q^{*} \) for a monopolist can be expressed in the following form:
\(\frac{p^{*} - C(Q^{*})}{p^{*}} = -\frac{1}{e^{*}}.\)
We can say from this that:
The shutdown point for a profit maximizing competitive firm in the short run is when the market price is equal to the:
An allocation for agents in an economy, x, is said to be Pareto superior to another allocation y if moving from allocation y to allocation x:
For a manufacturing firm, the cost function is given by \(C = q^{3} + 2q^{2} + q + 1.\) The marginal and average costs at \(q = 10\) units are respectively given by:
For inferior goods, the substitution effect of a price decrease and the income effect of the same price decrease: