231. An example of negative productivity shocks that could cause recessions is
A hurricane which destroys capital
A decrease in the price of oil
Reductions in defense spending
All of the above
Both a and b
Correct answer: (A) A hurricane which destroys capital
232. In the real business cycle theory during a period when output is falling
Workers are voluntary giving up their jobs
The quantity supplied of labor is falling
All of the above
None of the above
Correct answer: (D) None of the above
233. Which of the following statements are correct
Real business cycle theorists remain convinced that the business cycle can be explained as an equilibrium phenomenon
According to real business cycle theorists fluctuations in output come as optimizing agents respond to real shocks that affect production possibilities
Real business cycle theorists consider policies to prevent fluctuations in output unnecessary
Both a and b
All of the above
Correct answer: (E) All of the above
234. The first Nobel prize winner for Economics was
Hicks
Myrdal
Samuelson
Turbergen
Correct answer: (D) Turbergen
235. The equity of Reserve Bank of India in National Housing Bank is:
49%
51%
71%
100%
Correct answer: (D) 100%
236. Who gave the first scientific treatment of general equilibrium analysis
Leon Walras
J.B Say
Edward Chamberlain
K.E Boulding
Correct answer: (A) Leon Walras
237. Which of the following is a better measure of economic development?
National income
Rural consumption
Size of exports
Employment
Correct answer: (A) National income
238. The rational entrepreneur will expand his output and select input combinations which lies on his:
Isoquant line
Ridge line
Isoquant line
Expansion path
Correct answer: (D) Expansion path
239. Direct control refers to:
Trade and exchange controls
Interference with the operation of the market forces