Start
Q1
Question 1: LM curve shows the equilibrium in:
Money Market.
Goods Market.
Labor Market.
Financial Market.
Q2
Question 2: If there are 30 percent chances that machine will work well and 70 percent chances that it will not function well, then the odd ratio will be:
Q3
Question 3: All of the following conditions lead to the successful operation of a cartel EXCEPT
Market demand for the good is relatively inelastic
The cartel supplies all of the worlds output of the good
Cartel members have substantial cost advantages over non-member producers
The supply of non-cartel members is very price elastic
Q4
Question 4: If the required reserve ratio is 20% then what will be the value of money multiplier?
Q5
Question 5: A group of modern economists who believe that markets clear very rapidly and that expanding the money supply will always increase prices rather than employment are the:
Keynesians
Monetarists
New Classical school
Post-Keynesians
Q6
Question 6: The rate at which a firm can substitute capital for labour and hold output constant is the:
Law of diminishing marginal returns.
Marginal rate of substitution.
Marginal rate of technical substitution.
Marginal rate of production.
Q7
Question 7: The total cost (TC) function is given as TC = 200 + 5Q. What will be the average total cost if four units of commodity are produced?
Q8
Question 8: The shape of production possibilities curve is:
Concave.
Convex.
Linear.
Positive.
Q9
Question 9: In which condition, the IS curve will shift to the right?
Consumer confidence in the economy improves.
Firms become more optimistic about the economy and decide to invest more at each interest rate.
The government increases transfer payments.
It will shift to the right in all of the given conditions.
Q10
Question 10: The demand curve for eggs is downward-sloping. Suddenly the price of eggs decreases from Rs.60/- per dozen to Rs.50/- per dozen. This will cause:
The demand curve for eggs to shift leftward.
Quantity demanded of eggs to decrease.
The demand curve for eggs to shift rightward.
Quantity demanded of eggs to increase.