Business Economics

231. An example of negative productivity shocks that could cause recessions is

  1. A hurricane which destroys capital
  2. A decrease in the price of oil
  3. Reductions in defense spending
  4. All of the above
  5. 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

  1. Workers are voluntary giving up their jobs
  2. The quantity supplied of labor is falling
  3. All of the above
  4. None of the above
Correct answer: (D)
None of the above

233. Which of the following statements are correct

  1. Real business cycle theorists remain convinced that the business cycle can be explained as an equilibrium phenomenon
  2. According to real business cycle theorists fluctuations in output come as optimizing agents respond to real shocks that affect production possibilities
  3. Real business cycle theorists consider policies to prevent fluctuations in output unnecessary
  4. Both a and b
  5. All of the above
Correct answer: (E)
All of the above

234. The first Nobel prize winner for Economics was

  1. Hicks
  2. Myrdal
  3. Samuelson
  4. Turbergen
Correct answer: (D)
Turbergen

235. The equity of Reserve Bank of India in National Housing Bank is:

  1. 49%
  2. 51%
  3. 71%
  4. 100%
Correct answer: (D)
100%

236. Who gave the first scientific treatment of general equilibrium analysis

  1. Leon Walras
  2. J.B Say
  3. Edward Chamberlain
  4. K.E Boulding
Correct answer: (A)
Leon Walras

237. Which of the following is a better measure of economic development?

  1. National income
  2. Rural consumption
  3. Size of exports
  4. Employment
Correct answer: (A)
National income

238. The rational entrepreneur will expand his output and select input combinations which lies on his:

  1. Isoquant line
  2. Ridge line
  3. Isoquant line
  4. Expansion path
Correct answer: (D)
Expansion path

239. Direct control refers to:

  1. Trade and exchange controls
  2. Interference with the operation of the market forces
  3. Price and wage controls
  4. All of these
Correct answer: (D)
All of these

240. The income consumption curve generally?

  1. Slopes upwards to the right
  2. Slopes downwards to the right
  3. Slopes upwards to the left
  4. Slopes downwards to the left
  5. Represents a horizontal line
Correct answer: (C)
Slopes upwards to the left
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