Question:

What is true for inductive method?

A.

Hypothetical

B.

Empirical

C.

Ignores experimentation

D.

Static

Answer» b. Empirical

Question:

A hypothesis is a :

A.

Statement of facts

B.

Statement of observations made by a researcher

C.

Statement of expected out of research

D.

A proposition the validity of which is to be tested

Answer» d. A proposition the validity of which is to be tested

Question:

When both average and total product are greater than zero, and marginal product equals average product, then total product:

A.

Is at a maximum.

B.

Is positive and rising.

C.

Is falling.

D.

Is negative but rising.

Answer» b. Is positive and rising.

Question:

A movement from one point to another along an indifference curve makes the satisfaction:

A.

Increasing

B.

Decreasing

C.

Unaltered

D.

None

Answer» c. Unaltered

Question:

An equilibrium which holds a particular position over-time is:

A.

General Equilibrium

B.

Unstable equilibrium

C.

Stable equilibrium

D.

Partial equilibrium

Answer» c. Stable equilibrium

Question:

Theories are:

A.

Much more complicated than common sense

B.

Scientific only if based on normative value judgments

C.

Proven if only a few unimportant exceptions exist

D.

Developed when we collect data, try to explain how things work, and then

Answer» d. Developed when we collect data, try to explain how things work, and then

Question:

The monetary policy is completely ineffective when the LM curve is:

A.

Vertical .

B.

Horizontal.

C.

Upward sloping.

D.

Downward sloping

Answer» b. Horizontal.

Question:

As the value of MPC increases, the value of multiplier:

A.

Decreases

B.

Increases

C.

Constant

D.

Cannot say

Answer» b. Increases

Question:

Total utility is

A.

the sum total of marginal utilities

B.

entire utility derived from whole consumption

C.

increases at a diminishing rate

D.

all the above

Answer» d. all the above

Question:

In a free enterprise economy, the problems of what, how and for whom to produce are solved by :

A.

A Planning Committee

B.

The Price mechanism

C.

The Planning Commission

D.

None of these.

Answer» b. The Price mechanism