Business Economics

311. Which of the following statements are correct? In (the)

  1. Keynesian model, unemployment is voluntary.
  2. Real business cycle model, all unemployment is voluntary
  3. New classical models, there is voluntary unemployment
  4. Both b&c
Correct answer: (D)
Both b&c

312. The aggregate production function for real business cycle models is shown as

  1. Yt=F(Kt,Nt)
  2. Yt= Zt F(Kt - Nt)
  3. Yt= Zt F(Kt,Nt)
  4. Yt=Zt / (Kt,Nt)
Correct answer: (D)

Yt= Zt F(Kt,Nt)

313. With respect to efficiency wage models the efficiency of workers depends

  1. Positively on the money wage they are paid
  2. Positively on the real wage paid
  3. Inversely on the age of the workers
  4. Positively on the unemployment rate
Correct answer: (B)
Positively on the real wage paid

314. Real business cycle and new Keynesian models disagree upon

  1. Whether people form their expectations rationally
  2. Whether changes in unemployment are voluntary or involuntary
  3. Whether individuals engage in optimizing behavior at all times
  4. Whether changes in the money supply affect output in the long-run
Correct answer: (B)
Whether changes in unemployment are voluntary or involuntary

315. Which of the following is the least liquid asset?

  1. Machines
  2. Money
  3. Shares
  4. Bonds
Correct answer: (A)
Machines

316. The economist who said that international trade was based upon the concept of absolute advantage was:

  1. David Ricardo
  2. Adam Smith
  3. J.S.Mill
  4. Bertil Ohlin
Correct answer: (B)
Adam Smith

317. Harrod-Domar model was formed the basis of which plan

  1. First plan
  2. Third plan
  3. Second plan
  4. None of the above
Correct answer: (A)
First plan

318. Joint profits are maximized in the model cartel, which is model of:

  1. Duopsony
  2. Duopoly
  3. Oligopoly
  4. Oligopony
Correct answer: (C)
Oligopoly

319. Which of the following is a problem connected with general equilibrium analysis?

  1. Uniqueness problem
  2. Existence problem
  3. stability problem
  4. all of the above
Correct answer: (D)
all of the above

320. Advocates of the public-choice view argue that elected officials

  1. Will always respond to inflation with expansionary policies but will respond to unemployment with restrictive policies
  2. Will actively respond to inflation with restrictive policies but are reluctant to respond to unemployment with expansionary policies
  3. Will always respond to both inflation and unemployment with expansionary policies
  4. None of the above
Correct answer: (D)
None of the above
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