List of practice Questions

An analyst at the Green Car Co. Ltd. estimated the following demand function for the electric vehicles it sells:
\(Q_E=0.75-1.5P_{E} +2.5P_F - 0.5P_B+3.2l\)
where \(Q_E\) = Number of electric vehicles (in thousand per year), \(P_E\) = Unit price of electric vehicle (Rs. in Lakh), \(P_F\) = Average unit price of vehicle using fossil fuels (Rs. in Lakh), \(P_B\) = Unit price of battery used in electric vehicle (Rs. in Lakh), \(l\) = Personal disposable income (Rs. in Lakh).
Let \(P_E\)  = Rs. 6.5 Lakh, \(P_F\)= Rs. 4.5 Lakh,  \(P_B\)  = Rs. 0.5 Lakh and \(l\) = Rs. 10 Lakh. Then the income elasticity of demand (\(e_{Qgl}\)) and the cross price elasticity of demand (\(e_{Qgp_f}\)) satisfy

The probability of getting head in a toss of a biased coin is ⅔ . Let the coin be tossed three times independently. Then the probability of getting head in the first two tosses and tail in the final toss is

Choose the option that represents the original linear programming problem based on the initial simplex tableau given below, where \(S_i\) represents slack/surplus variables and \(A_i\) represents the artificial variables corresponding to the \(i^{th}\)constraint: 

Which of the following statements is NOT correct under the IS-LM (Fixed Price) model?

Consider a pure exchange economy with two goods x and y. Ravi and Suraj are two individuals with utility functions $U_R = \beta log(xy)$ and $U_s = (x/y)^{\alpha},$ respectively. The endowments are $x_R$ and $y_R$ for Ravi and $x_s$ and $y_s$ for Suraj such that $x_R$+$x_s$ = A and $y_R + y_s= B$. Then their contract curve is

Which of the following is NOT correct regarding R-squared ($R^2$) and Adjusted R-squared ($\overline{R^2}$)?

The technical change in the endogenous growth model is endogenized by

Which of the following statements is CORRECT for Game A and Game B?

Game A: Mary wants to watch a movie and John is interested in watching a football match. Both wish to be together. The payoff matrix is:

Game B: The Prisoner's dilemma problem is shown below:

The short-run production function of a firm is $Q = 200 + 0.2L^2 -0.0004L^3$. If wage rate equals Rs. 140 and the number of labours (L) is 100, then the Marginal Cost and the Average Variable Cost, respectively, are

Let \(X \sim N(\mu X, \sigma _X ^2)\) and \(Y \sim N(\mu _y, \sigma _y ^2)\) Which of the following is/are NOT correct?

Suppose road accident occurs, then being an Advocate what is the correct way of approaching the situation?

Matching List I and List II, choose the CORRECT option(s).

List I	List II
a. Bombay Plan	i. J. P. Narayan
b. People's Plan	ii. J. R. D. Tata
c. Sarvodaya Plan	iii. M. N. Roy

Suppose that the regression model is $Y_i =\beta_0 + \beta_1 X_{1i} + \beta_2 X_{2i} + \mu_i, i = 1, 2,..., n$. Which of the following null hypotheses could be tested using the F-test?

Let ƒ be defined by $f(x) = |x| + |cos({\frac{\pi }{2} - x }), x \, \, \epsilon \, \,(-\frac{\pi }{2},\frac{\pi }{2}).$ Then

The real exchange rate is given by e = EP/P*, where e is the price of domestic goods in terms of foreign goods, E is the price of domestic currency in terms of foreign currency, P is the domestic price level, P* is the foreign price level. If the Indian Rupee depreciates vis-à-vis the Japanese Yen, and the Marshall-Lerner condition holds, then

The demand function (\(Q^D_x\)) and supply function \((Q^S_x)\) are given as:
\(Q^D_x=f(P_x,I)\ and\ Q^S_x=g(P_x,A)\) where I (Income) and A (Advertisement expenses) are the exogenous factors affecting quantity demanded and supplied, respectively. Further, \(\frac{\partial f}{\partial P_x}\lt0,\frac{\partial g}{\partial P_x}\gt0\) but \(\frac{\partial f}{\partial I}\) and \(\frac{\partial g}{\partial A}\) may have any sign. Considering that there exists an equilibrium \((Q_x^D=Q_x^S=Q)\), which of the following is/are CORRECT?

Which of the following statements is/are CORRECT under the Keynesian Cross (Fixed Price) Model?

Which of the following functions is/are homogeneous?

In the context of Indian agriculture, which of the following statements is/are CORRECT?

Let a monopolist demand curve be given by $Q = P^e$, where Q is output, P is price, e is the price elasticity of demand (e <-1), and Marginal Cost = Average Cost = $\alpha$. If $P^c$ and PM represent the price under perfect competition and monopoly, respectively, then which of the following is/are NOT correct?
($CS_M$ and $CS_C$ represent the consumer surplus under monopoly and perfect competition, respectively.)

The sum of the eigen values of the square matrix $ \begin{pmatrix} {1} & {1} & {3}\\ {1} & {5} & {1}\\ {3} & {1} & {1} \end{pmatrix}$ (in integer).

Monthly per capita consumption expenditure (MPCE) of 10 households in a region is given below.

Households	H1	H2	H3	H4	H5	H6	H7	H8	H9	H10
MPCE(in Rs.)	2800	3000	1200	3500	1400	2500	4000	1000	900	1300

Assuming the poverty cutoff (Z) of MPCE to be Rs. 2000, the squared poverty gap ratio is _______(round off to 3 decimal places)

Suppose that the full employment level of output of an economy is Rs. 2200 million, expenditure determined level of output is Rs. 2163 million, and the marginal propensity to consume is 0.75. The deflationary gap equals Rs. _____ million (round off to 2 decimal places).

Let a,b $\epsilon$ R. If f(x)= ax+bis such that
a+b=4 and f(x + y) = f(x)+f(y)-2 for all x, y $\epsilon$ R,
then  $ \sum_{n=1} ^{50} f(n)$ =__________  (in integer).

The Total Variable Cost (TVC) for a firm is given by TVC = $x^3-bx^2$. The Total Fixed Cost is 848. The value of b for which the Marginal Cost is minimum at x = 16 is________ (in integer).