Re: Gokhale sample paper 3 discussion

Posted by neha:) on Jun 07, 2014; 9:37am
URL: http://discussion-forum.276.s1.nabble.com/Gokhale-sample-paper-3-discussion-tp7591759p7591775.html

Section B:
6. The hypothesis of qualified joint profit-maximization implies that firms
 a) are profit-maximizers b) are unselfish  c) will act as if they had a monopoly d) are able to exploit the gains from limiting competition in some respects, but not in all respects

7. A change in factor prices
 a) changes long-run cost-curve positions b) changes short-run cost-curve positions c) alters the optimal factor proportions d) is likely to do all of the above

11. Among the essential aspects of oligopoly is
 i) Excess capacity ii) Non-price competition
 iii) A large number of firms iv) Mutual recognition of interdependence
 a) Both i) and ii) are satisfactory  b) Both ii) and iii) are satisfactory  c) Only iv) d) None of the above is  satisfactory

20. In the classical model, given an initial aggregate equilibrium at full employment, the long
run effect of an increase in government spending is
 a) increase in the price level c) constant level of output
 b) an upward shift of the aggregate demand curve d) all of the above

26. Milton Friedman and Anna Schwartz believed that monetary policy was ineffective because
of the __ lag.
 a) information c) Decision
 b) recognition d) Implementation

38. According to Friedman, if the stock market rises rapidly in value, the:
 a) demand for money will increase. c) demand for money will be unaffected.
 b) demand for money will decrease. d) marginal propensity to consume will decrease.
 
39. The circular flow of income for a private sector model shows
a) the flow of income between the household and the business sectors
b) the flow of income between government and business sector
c) the flow of income between household, business and government sector.
d) the flow of income between government and household sector.