Doubts!

[Bin]

1.Suppose annual growth rate of Nominal GDP, Real GDP and population are
respectively 8%, 4%, and 2%. Then the growth rate of real per capita GDP, and
GDP deflator are respectively and .
A. 4% and 2%
B. 2 % and 4%
C. 6% and 2%
D. -2% and 4%

Please explain the method!

2. If, marginal propensity to consume is 0.75, then the value of the balanced budget
multiplier is
A. 1
B. 2
C. 3
D. 4

3. Which of the following will not result in an increase in output?
A. An increase in autonomous spending
B. A decrease in autonomous taxes
C. An increase in autonomous taxes
D. An increase in lumpsum taxes

4. A-(B U C)=
a) A-B U A-C
b)A-B INTERSECTION A-C

5. Let a 2 R. If x belongs to the neighbourhood Ve(a) for every e > 0, then:
A. x > a
B. x 6= a
C. x < a
D. x = a

[Anjali]

1. B
2. A
3. D
4. A
5. D ( explanation is pretty confusing , I don't rem myself , but yes , for this question , option D is the answer  )

[Bin]

For 1) GDP deflator=Nominal/Real, right? Won't we get 2 (8/4)? So shouldn't 2 and 2 be the answer?

For 3), won't increasing taxes reduce output? Also, aren't lumpsum taxes independent of output?

[mrittik]

for 4 we can understand one thing that A-(BUC) it means a much portion is deducted....what is more 5-(2+3) or 5-(3-2), i think its the second one....A-(BUC)=(A-B) intersection (A-C).

[Bin]

Please answer!!

2. A sample of 99 distances has a mean of 24 feet and a median of 24.5 feet. Unfortunately,
it has just been discovered that an observation which was erroneously
recorded as “30” actually had a value of “35”. If we make this correction to the
data, then:
A. The mean remains the same, but the median is increased.
B. The mean and median remain the same.
C. The median remains the same, but the mean is increased.
D. The mean and median are both increased.

3. Relative Frequency of Accidents per day in a city

Accidents
0 1 2 3 4 or more

Relative Frequency 0.55 0.20 0.10 0.15 0


Which of the following statements are true on the basis of information provided
in Table 1?
1. The mean and modal number of accidents are equal.
2. The mean and median number of accidents are equal.
3. The median and modal number of accidents are equal.
A. 1 only.
B. 2 only.
C. 3 only.
D. 1, 2, and 3.

4.The market structure of mobile telecom services in India is almost a:
A. Perfectly competitive industry.
B. Regulated monopoly.
C. Bilateral monopoly.
D. Oligopolistic industry.

5. 86. Which of the following items accounts for the largest share in total subsidies in
India?
A. Petroleum.
B. Food.
C. Fertilizer.
D. Interest subsidy.

6.Which of the following statements with respect to aggregate savings and investment
in India is true:
A. Aggregate savings rate is less than aggregate investment rate.
B. Aggregate savings rate is more than aggregate investment rate.
C. Aggregate savings rate is equal to aggregate investment rate.
D. Aggregate savings rate has been falling continuously since 1991 with
increases in consumption.

7. Much of India’s GDP growth is contributed by:
A. Primary and secondary sectors.
B. Information and communications sector.
C. Manufacturing and mining sectors.
D. Tertiary sector including construction.

8. When there is an absence of money illusion, the consumer’s demand function is
said to be homogeneous of degree .
A. Zero.
B. One.
C. Two.
D. More than 2.

9. If the rows in a matrix A are linearly independent, the matrix A is .
A. singular.
B. Non-singular.
C. Symmetric.
D. Idempotent.

10. If you are measuring level of consumption of a good in one axis and that of a bad
on the other axis, the indifference curve will be:
A. Parallel to the good axis.
B. Parallel to the bad axis.
C. Of “inverted-U” shape.
D. Having positive slope.

11. In a perfectly competitive market, a firm’s long-run supply curve is:
A. The upward segment of its average cost curve.
B. The upward segment of its marginal cost curve.
C. The upward segment of its marginal cost curve which is above the lowest
point of the average cost curve.
D. None of the above.

12. Theory of revealed preference is used to:
A. Derive optimal choice from given preferences and budget constraint.
B. Derive underlying preferences from optimally chosen bundles under
different budget constraints.
C. Both A and B.
D. Neither A nor B.

13. Marginal utility of an inferior good is:
A. Positive.
B. Negative.
C. Zero.
D. Zero or positive.

14. Consider a paddy farmer’s production decision, which of the following input does
not enter into his optimisation programme?
A. Labour.
B. Fertiliser.
C. Sunlight.
D. None of the above.

15. If the nominal interest rate is 8%, prices are rising at 5% a year and GDP is growing
at 6% a year, then the real interest rate in the economy is:
A. 2%
B. 5%
C. 3%
D. -3%

16.If real GDP, population and prices are increasing respectively at 8%, 2.5% and 5%
per annum, then growth rate of real per capita GDP is:
A. 10.5%
B. 8%
C. 5.5%
D. 6%


PLEASE REPLY!!!