NET, IAS, State-SET (KSET, WBSET, MPSET, etc.), GATE, CUET, Olympiads etc.: Economics MCQs (Practice_Test 45 of 122)
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- Income inequalities in a country can be measured by
- Lorenz curve
- Gini coefficient
- proportion of income received by different size groups
- all of the above
- Market failure may NOT arise in the case of
- increasing returns to scale
- public goods
- the consumption externalities
- income inequalities
- A given economic state is Pareto-optimal if a policy-change can
- make everyone better off
- make someone better off and someone worse off
- make someone better off and all others worse off
- not make anyone better of without making someone worse off:
- Which one of the following represents the savings the private corporate sector?
- Total profits of a company
- Undistributed profits
- excess of income over expenditure
- dividends paid to shareholders
- An economy՚s Net national Income is $ 20,000 million indirect taxes are $ 2,000 million, subsidies are $ 1,000 million and its population 150 million. What will be the national Income at factor cost?
- $ 21,000 million
- $ 19,000 million
- $ 23,000 million
- $ 22,000 million
- The aggregate output is determined by the production function Q = Ka L1 − a, where a = 0.40, K is capital and L is labour. Suppose, K and L are growing respectively at the rate of 10% and 20% , the growthrate of aggregate output will equal
- 12%
- 15%
- 16%
- 18%
- Given: C = 50 0.5 Y I = 80 G = 100. The equilibrium level of income is
- 4600
- 560
- 230
- 360
- Given the total investment expenditure, an increase in the propensity to save will lead to a
- rise in income
- rise in the rate of interest fall in income
- fall in savings
- fall in income
- If the investment multiplier is 4, the relevant consumption function is given by
- C = 28 + 0.75 y
- C =-28 + 0.78y
- C = 28 + 0.70 y
- C = 28 + 0.40 y
- consider the following statements
- bond prices and interest rates vary directly.
- supply creates its own demand is known as Walras ′ law
- the rate that equalizes the discounted cash flow expected from an investment in a capital asset to its supply price is the marginal efficiency of investment.
- disposable income varies inversely with a tax on personal income
- Which of the above statements are correct?
- 3 and 4
- 1 and 3
- 2 and 4
- 1,2 and 3
- Which of the following is consistent with the cross-sectional consumption function?
- APC = MPC
- MPC = 0
- APC > MPC
- APC = 0
- The speculative demand for money depends on
- interest rate
- income
- profit
- output
- An entrepreneurs plans to acquire a capital asset, which is expected to yield ₹ 660 at the end of the first year and ₹ 1,452 at the end of the second year after which it will become useless. The discount rate is 0.10 what is its equilibrium supply price?
- 2,112
- 1,200
- 1,800
- 2,000
- Consider the following statements:
- when prices fall, with no change in costs, marginal efficiency of capital falls.
- when prices fall, with no change in costs, marginal efficiency of capital increases.
- marginal efficiency of capital falls with increased output of capital goods.
- marginal efficiency of capital rises with increased investment because of the increased output of capital goods.
- Which of the above statement are correct?
- 1 and 2
- 1 and 3
- 1 and 4
- 2 and 3
- Consider the following statements: Classical economists believed that unemployment in an economy would persist because of
- Labour-saving technical progress.
- Deficiency in demand for goods.
- Government intervention in the free working of the economy
- Which of the above statements is⟋are correct?
- 1,2 and 3
- 1 and 2
- 2 and 3
- 3 alone