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Vinayakan
Lead
Jun 28, 2021
In PG Entrance
45. If X1 = f(P1, P2) and X2 = g(P1, P2), then the two commodities are substitutes if A. (dX1/dP2) < 0, (dX2/dP1) > 0 B. (dX1/dP2) > 0, (dX2/dP1) > 0 C. (dX1/dP2) > 0, (dX2/dP1) < 0 D. (dX1/dP2) < 0, (dX2/dP1) < 0
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Vinayakan
Lead
Jun 27, 2021
In PG Entrance
59. In calculating buoyancy of a tax we consider A. Only discretionary changes B. Only automatic changes C. Both ‘A’ or ‘B’ D. None of the above
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Vinayakan
Lead
Jun 27, 2021
In PG Entrance
56. When the supply is more elastic than demand A. The tax incidence falls on the buyers B. The tax burden is less on the sellers C. Both (a) and (b) D. None of the above
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Vinayakan
Lead
Jun 27, 2021
In PG Entrance
55. In India, while defining an urban area, the most important consideration besides the size of its population is that it should have A. Half of its male working in the non-primary sector B. Three-fourth of its male working on non-agricultural pursuits C. A police station, a college and a hospital D. Number of ATMs, Number of Bank Branches
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Vinayakan
Lead
Jun 27, 2021
In PG Entrance
51. Assume that the United States faces an 8 percent inflation rate while no (zero) inflation exists in Japan. According to the purchasing power parity theory, over the long run the dollar would be expected to: A. appreciate by 8 percent against the yen B. depreciate by 8 percent against the yen C. remain at its existing exchange rate D. any of the above
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Vinayakan
Lead
Jun 27, 2021
In PG Entrance
50. Suppose that the economy is in long-run macroeconomic equilibrium and aggregate demand increases. As the economy moves to short-run macroeconomic equilibrium, there is: A. a recessionary gap with high inflation. B. a recessionary gap with low inflation. C. an inflationary gap with low unemployment. D. an inflationary gap with high unemployment.
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Vinayakan
Lead
Jun 27, 2021
In PG Entrance
49. Every year more and more purchases are made with credit cards on the Internet. Given this trend, all else equal, we would expect: A. the money demand curve to shift inward. B. the money demand curve to shift outward. C. a downward movement along a fixed money demand curve. D. an upward movement along a fixed money demand curve.
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Vinayakan
Lead
Jun 27, 2021
In PG Entrance
48. As a result of a decrease in the value of the dollar in relation to other currencies, American imports decrease and exports increase. Consequently, there is a(n): A. increase in aggregate demand. B. decrease in the quantity of aggregate output supplied in the short run. C. increase in short-run aggregate supply. D. decrease in the quantity of aggregate output demanded.
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Vinayakan
Lead
Jun 27, 2021
In PG Entrance
45. A capital account surplus might be expected to cause a current account deficit because the associated A. capital inflow would cause the nation’s currency to appreciate, contributing to a trade deficit B. capital inflow would cause the nation’s currency to depreciate, contributing to a trade deficit C. capital outflow would cause the nation’s currency to depreciate, contributing to a trade deficit D. capital outflow would cause the nation’s currency to appreciate, contributing to a trade deficit
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Vinayakan
Lead
Jun 27, 2021
In PG Entrance
43. The classical theory predicts that A. considerable trade will occur between countries with different levels of technology. B. small countries could obtain all of the gains from trade when trading with large countries. C. countries will completely specialize in the production of export goods. D. All of the above.
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Vinayakan
Lead
Jun 27, 2021
In PG Entrance
41. If a country has a straight (downward sloping) production possibilities frontier, then production is said to be subject to A. first increasing and then decreasing opportunity costs. B. decreasing opportunity costs C. increasing opportunity costs. D. constant opportunity costs.
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Vinayakan
Lead
Jun 27, 2021
In PG Entrance
36. There are two economies A and B and the labor cost of producing unit output of two commodities is A B 1 15 35 2 20 45 A. Country A has comparative advantage in producing commodity 2 and B in 1 B. Country A has comparative advantage in producing commodity 1 and B in 2 C. Neither country has any comparative advantage but A has absolute advantage D. None of the above
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Vinayakan
Lead
Jun 27, 2021
In PG Entrance
31. If two goods are bad substitutes, the indifference curve will: A. Slope upwards B. Approach a straight line C. approach a right angle D. be a straight line
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