I seem to have encountered quite a number of unclear answers and doubts in this paper. I would be more than grateful is someone could answer any of them.
The link:
http://www.uohyd.ac.in/images/pdf/question_papers/ma_economics.pdfQ11) A commodity is available in fixed supply. Demand is downward sloping w.r.t its own price. It is found that in equilibrium configuration, there is excess supply for this commodity at zero price. Then this represents a case of:
a. Unique equilibrium price
b. Multiple equilibria
c. Commodity that is a free good
d. All of the above
Q25) If a firm is producing where its SMC is equal to price and LMC is less than LAC, then it would do better in the long run by
a. increasing output with its existing plan until LMC equals price
b. increasing plant size until LMC and SMC are identical and equal to price
c. decrease plant size until LAC,SAC and price are equal
d. doing nothing since its already at LR profit maximizing point
Q47) Fiscal deficit is economical sustainable if:
a. Revenue growth is faster than inflation
b. Current a/c deficit grows slower than fiscal a/c deficit
c. capital expenditure grows faster than revenue expenditure
d. Nominal Growth rate of GDP is higher than the interest rate
Locked
