McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Bachelor of Commerce (B Com) .
| 101. |
An exceptional demand curve is one that slopes |
| A. | Upward to the left |
| B. | Downward to the right |
| C. | Horizontally |
| D. | Upward to the right |
| Answer» D. Upward to the right | |
| 102. |
Which one is not an exception to the Law of Demand? |
| A. | Normal good |
| B. | Articles of Distinction |
| C. | Ignorance |
| D. | Inferior good |
| Answer» A. Normal good | |
| 103. |
Demand for a commodity is elastic when it has: |
| A. | Only one use |
| B. | Uses which can not be postponed |
| C. | Many uses |
| D. | Uses very essential for the consumer |
| Answer» C. Many uses | |
| 104. |
When the demand curve is a rectangular hyperbola, it represents: |
| A. | Perfectly elastic demand |
| B. | Unitary elastic demand |
| C. | Perfectly inelastic demand |
| D. | Relatively elastic demand |
| Answer» B. Unitary elastic demand | |
| 105. |
The horizontal demand curve for a commodity shows that its demand is: |
| A. | Perfectly elastic |
| B. | Highly elastic |
| C. | Perfectly inelastic |
| D. | Moderately elastic |
| Answer» A. Perfectly elastic | |
| 106. |
When an individual’s income falls(while everything else remains the same), his demand for an inferior good: |
| A. | Increases |
| B. | Decrease |
| C. | Remains unchanged |
| D. | We cannot say without additional information |
| Answer» B. Decrease | |
| 107. |
A fall in the price of a commodity whose demand curve is a rectangular hyperbola causes total expenditure on the commodity to: |
| A. | Increases |
| B. | Decrease |
| C. | Remains unchanged |
| D. | Any of the above |
| Answer» C. Remains unchanged | |
| 108. |
The utility may be defined as: |
| A. | The desire for a commodity |
| B. | The usefulness of a commodity |
| C. | The necessity of a commodity |
| D. | The power of a commodity to satisfy wants |
| Answer» D. The power of a commodity to satisfy wants | |
| 109. |
The utility of a commodity is: |
| A. | Its expected social value |
| B. | The extent of its practical use |
| C. | Its relative scarcity |
| D. | The degree of its fashion |
| Answer» C. Its relative scarcity | |
| 110. |
Marginal utility curve of a given consumer is also his: |
| A. | Indifference curve |
| B. | Total utility curve |
| C. | Demand curve |
| D. | Supply curve |
| Answer» C. Demand curve | |
| 111. |
The relationship between demand for a commodity and price, ceteris paribus, is: |
| A. | Negative |
| B. | Positive |
| C. | Non-negative |
| D. | Non-positive |
| Answer» A. Negative | |
| 112. |
A demand curve which takes the form of horizontal line parallel to quantity axis illustrates elasticity which is: |
| A. | Zero |
| B. | Infinite |
| C. | Greater than one |
| D. | Less than one |
| Answer» D. Less than one | |
| 113. |
Consider a demand curve which takes the form of a straight line cutting both axes. Elasticity at the mid-point of the line would be: |
| A. | Zero |
| B. | One infinite |
| C. | infinite |
| D. | Can not be calculated |
| Answer» B. One infinite | |
| 114. |
The elasticity of demand for a product will be higher: |
| A. | The more available are substitutes for that product |
| B. | The more its buyers demand loyalty |
| C. | The more the product is considered a necessity by its buyers |
| D. | All of the above |
| Answer» A. The more available are substitutes for that product | |
| 115. |
A consumers demand curve can be obtained from: |
| A. | ICC |
| B. | Engel curve |
| C. | Lorence curve |
| D. | PCC |
| Answer» D. PCC | |
| 116. |
In case of Giffen goods, demand curve will slope: |
| A. | Vertical |
| B. | Horizontal |
| C. | Upward |
| D. | Downward |
| Answer» C. Upward | |
| 117. |
Cross elasticity of demand between tea and sugar is: |
| A. | Positive |
| B. | Zero |
| C. | Infinity |
| D. | Negative |
| Answer» D. Negative | |
| 118. |
If the percentage increase in quantity of a commodity demanded is its price, the coefficient of price elasticity of demand is: |
| A. | Greater than 1 |
| B. | Equal to 1 |
| C. | Less than 1 |
| D. | Zero |
| Answer» C. Less than 1 | |
| 119. |
If the quantity of a commodity demanded remains unchanged as its price changes, the coefficient of price elasticity of demand is |
| A. | Greater than 1 |
| B. | Equal to 1 |
| C. | Less than 1 |
| D. | Zero |
| Answer» D. Zero | |
| 120. |
Unitary elasticity of demand is: |
| A. | Zero |
| B. | Equal to one |
| C. | Greater than 1 |
| D. | Less than 1 |
| Answer» B. Equal to one | |
| 121. |
The real business cycle theory is most closely related to |
| A. | Keynesian theory |
| B. | Monetarist theory |
| C. | The classical theory |
| D. | The new Keynesian theory |
| Answer» C. The classical theory | |
| 122. |
In the real business cycle model, business cycles are |
| A. | Efficient and do not represent lost output |
| B. | Driven by technology shocks |
| C. | Occur when markets clear |
| D. | All of the above |
| Answer» D. All of the above | |
| 123. |
Real business cycle proponents argue that |
| A. | Recessions are caused by movements of output away from the natural rate of output |
| B. | Prices and wages are sticky |
| C. | Macroeconomics should be based on the same assumptions as microeconomics |
| D. | Monetary policy is important in determining recessions |
| Answer» C. Macroeconomics should be based on the same assumptions as microeconomics | |
| 124. |
Which of the following statements are correct? In (the) |
| A. | Keynesian model, unemployment is voluntary. |
| B. | Real business cycle model, all unemployment is voluntary |
| C. | New classical models, there is voluntary unemployment |
| D. | Both b&c |
| Answer» D. Both b&c | |
| 125. |
A usual assumption in real business cycle models is that the economy is populated by a group of identical individuals and the behavior of the group can then be explained in terms of the behavior of one individual, called a------------- |
| A. | Maximizing agent |
| B. | Representative agent |
| C. | Republican agent |
| D. | Informative agent |
| Answer» B. Representative agent | |
| 126. |
The aggregate production function for real business cycle models is shown as |
| A. | Yt=F(Kt,Nt) |
| B. | Yt= Zt F(Kt - Nt) |
| C. | Yt= Zt F(Kt,Nt) |
| D. | Yt=Zt / (Kt,Nt) |
| Answer» C. Yt= Zt F(Kt,Nt) | |
| 127. |
In real business cycle models and new classical models |
| A. | Monetary factors are responsible for fluctuations in output and employment |
| B. | Changes in unemployment are involuntary |
| C. | Markets always clear |
| D. | Prices and wages are perfectly flexible |
| Answer» D. Prices and wages are perfectly flexible | |
| 128. |
Which of the following shocks have been emphasized most often with respect to real business cycle story? |
| A. | Shocks to technology |
| B. | Variations in environmental conditions |
| C. | Changes in the real(relative) prices of imported raw materials |
| D. | Changes in tax rates |
| Answer» A. Shocks to technology | |
| 129. |
In the new Keynesian models, |
| A. | Imperfect competition comes is the result of optimizing behavior by individuals |
| B. | Perfect competition is assumed with respect to the product market |
| C. | A natural monopoly is presumed for the product market |
| D. | Both a and c |
| Answer» A. Imperfect competition comes is the result of optimizing behavior by individuals | |
| 130. |
Which of the following cannot be used to justify efficiency wages |
| A. | Sticky price(menu cost) models |
| B. | Turnover costs |
| C. | Worker shirking |
| D. | Worker morale |
| Answer» A. Sticky price(menu cost) models | |
| 131. |
In any efficiency wage model it must be true that |
| A. | The marginal benefit of increased efficiency is equal to the marginal cost of higher wages |
| B. | Nominal wages are inflexible |
| C. | Disequilibrium in the labor market exists |
| D. | All of the above |
| Answer» D. All of the above | |
| 132. |
With respect to efficiency wage models the efficiency of workers depends |
| A. | Positively on the money wage they are paid |
| B. | Positively on the real wage paid |
| C. | Inversely on the age of the workers |
| D. | Positively on the unemployment rate |
| Answer» B. Positively on the real wage paid | |
| 133. |
New Keynesian would agree with all of the following except |
| A. | Stabilization policy can reduce the severity of business cycles |
| B. | Wages and prices are sticky |
| C. | Markets are perfectly competitive |
| D. | Market equilibrium is often suboptimal |
| Answer» C. Markets are perfectly competitive | |
| 134. |
In real business cycle models, business cycles are caused by ------------------,while in new Keynesian model business cycles are caused by------------------- |
| A. | Aggregate demand ; Aggregate demand |
| B. | Aggregate demand ; Aggregate supply |
| C. | Aggregate supply; Aggregate demand |
| D. | Fiscal policy ; monetary policy |
| Answer» C. Aggregate supply; Aggregate demand | |
| 135. |
Which of the following models view changes in real supply-side factors as determinants of short-run fluctuations in output and employment? |
| A. | New classical models |
| B. | Political business cycle models |
| C. | Keynesian models |
| D. | Real business cycle models |
| Answer» D. Real business cycle models | |
| 136. |
An example of negative productivity shocks that could cause recessions is |
| A. | A hurricane which destroys capital |
| B. | A decrease in the price of oil |
| C. | Reductions in defense spending |
| D. | All of the above |
| Answer» A. A hurricane which destroys capital | |
| 137. |
The real business cycle theory and the new classical theory agree that |
| A. | Business cycles are driven by changes in Aggregate demand |
| B. | Expectations are formed rationally |
| C. | Imperfect information plays a big role in business cycles |
| D. | None of the above |
| Answer» B. Expectations are formed rationally | |
| 138. |
Advocates of real business cycle theories argue that all of the following could cause a recession except |
| A. | A fall in consumer expectations |
| B. | Natural disasters |
| C. | Higher taxation |
| D. | Increase in the price of oil |
| Answer» A. A fall in consumer expectations | |
| 139. |
Real business cycle and new Keynesian models disagree upon |
| A. | Whether people form their expectations rationally |
| B. | Whether changes in unemployment are voluntary or involuntary |
| C. | Whether individuals engage in optimizing behavior at all times |
| D. | Whether changes in the money supply affect output in the long-run |
| Answer» B. Whether changes in unemployment are voluntary or involuntary | |
| 140. |
In the real business cycle theory during a period when output is falling |
| A. | Workers are voluntary giving up their jobs |
| B. | The quantity supplied of labor is falling |
| C. | All of the above |
| D. | None of the above |
| Answer» D. None of the above | |
| 141. |
According to the real business cycle theory business cycles |
| A. | Can be eliminated with appropriate monetary and fiscal policy |
| B. | Are natural and efficient reactions to changes in productivity |
| C. | Do not occur |
| D. | Occur infrequently |
| Answer» B. Are natural and efficient reactions to changes in productivity | |
| 142. |
According to real business cycle theory an increase in taxes |
| A. | Would significantly reduce labor supply, increase employment, and decrease output |
| B. | A decline in employment but not in output |
| C. | Would significantly reduce labor supply, decrease employment, and decrease output |
| D. | No change in output and employment |
| Answer» C. Would significantly reduce labor supply, decrease employment, and decrease output | |
| 143. |
Many economists who accept the real business cycle explanations of economic fluctuations |
| A. | Believe that the Sharpe rise in the relative price of imported oil was the central cause of the deep recession in the United States in the mid-1970s |
| B. | Believe that the restrictive Federal reserve Monetary policy was the central cause of the deep recession in the United States in the mid-1970s |
| C. | Believe that the Sharpe rise in the relative price of imported oil was not the main cause of the deep recession in the United States in the mid-1970s |
| D. | Both a and c |
| Answer» A. Believe that the Sharpe rise in the relative price of imported oil was the central cause of the deep recession in the United States in the mid-1970s | |
| 144. |
New Keynesian theories of efficiency wages imply |
| A. | Voluntary unemployment |
| B. | Real wage rigidity |
| C. | Changes in unemployment represent changes in the natural rate of unemployment |
| D. | None of the above |
| Answer» B. Real wage rigidity | |
| 145. |
The first Nobel prize winner for Economics was |
| A. | Hicks |
| B. | Myrdal |
| C. | Samuelson |
| D. | Turbergen |
| Answer» D. Turbergen | |
| 146. |
Which of the following is the least liquid asset? |
| A. | Machines |
| B. | Money |
| C. | Shares |
| D. | Bonds |
| Answer» A. Machines | |
| 147. |
The five year plan in India are launched after the approval of |
| A. | The President and Prime Minister |
| B. | The Rajya Sabha |
| C. | The National Development Council (NDC) |
| D. | The Lok Sabha |
| Answer» C. The National Development Council (NDC) | |
| 148. |
Harrod-Domar model was formed the basis of which plan |
| A. | First plan |
| B. | Third plan |
| C. | Second plan |
| D. | None of the above |
| Answer» A. First plan | |
| 149. |
Deductive method |
| A. | Moves from general to particular |
| B. | Moves from particular to general |
| C. | Is based on hypothesis |
| D. | Both a and b |
| Answer» A. Moves from general to particular | |
| 150. |
The equity of Reserve Bank of India in National Housing Bank is: |
| A. | 49% |
| B. | 51% |
| C. | 71% |
| D. | 100% |
| Answer» D. 100% | |
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