Question:

MEC for a capital good was found out to be 10% and the market rate of interest is 9%,then the investment is

A.

not profitable

B.

profitable

C.

breakeven

D.

cannot say

Answer» b. profitable

Question:

LM curve shows the equilibrium condition in ———- market

A.

goods market

B.

product market

C.

money market

D.

none of these

Answer» c. money market

Question:

Imputed value of good is added to the GDP because:

A.

they indeed represent value

B.

there is no market price for that

C.

they increase consumption

D.

none of the above

Answer» b. there is no market price for that

Question:

Supply creates its own demand is the Basis of:

A.

classical economics

B.

keynesian economics

C.

monetarism

D.

none of these

Answer» a. classical economics

Question:

The value of ‘intermediate goods’ are excluded from GDP calculation because:

A.

it will increase the gdp unduly

B.

it results in multiple counting of same value

C.

intermediate goods are not important

D.

all the above

Answer» b. it results in multiple counting of same value

Question:

Which one in the following is a stock variable?

A.

income

B.

investment

C.

capital

D.

fiscal deficit

Answer» c. capital

Question:

Who defined economics as: a science which studies human behavior as a relationshipbetween ends and scarce means which have alternative uses:

A.

j b say

B.

alfred marshall

C.

david ricardo

D.

robbins

Answer» d. robbins

Question:

Net investment is

A.

value of gross minus subsidies

B.

investment after providing for depreciation

C.

value of gross output before providing forsubsidies

D.

none of the above

Answer» b. investment after providing for depreciation

Question:

The marginal productivity of labour:

A.

increases when the price of the good sold increases, ceteris paribus

B.

decreases when there is an adverse supply shock, ceteris paribus

C.

increase when more workers are hired, ceteris paribus

D.

decreases when there is an increase in the quantity of capital, ceteris paribus

Answer» b. decreases when there is an adverse supply shock, ceteris paribus

Question:

The method consistsin deriving conclusionsfrom general truths, takesfewgeneral principles and applies them draw conclusions.

A.

inductive

B.

deductive

C.

empirical

D.

scientific

Answer» b. deductive