Business Economics
311. Which of the following statements are correct? In (the)
- Keynesian model, unemployment is voluntary.
- Real business cycle model, all unemployment is voluntary
- New classical models, there is voluntary unemployment
- Both b&c
Correct answer: (D)
Both b&c
312. The aggregate production function for real business cycle models is shown as
- Yt=F(Kt,Nt)
- Yt= Zt F(Kt - Nt)
- Yt= Zt F(Kt,Nt)
- Yt=Zt / (Kt,Nt)
Correct answer: (D)
Yt= Zt F(Kt,Nt)
313. With respect to efficiency wage models the efficiency of workers depends
- Positively on the money wage they are paid
- Positively on the real wage paid
- Inversely on the age of the workers
- Positively on the unemployment rate
Correct answer: (B)
Positively on the real wage paid
314. Real business cycle and new Keynesian models disagree upon
- Whether people form their expectations rationally
- Whether changes in unemployment are voluntary or involuntary
- Whether individuals engage in optimizing behavior at all times
- 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?
- Machines
- Money
- Shares
- Bonds
Correct answer: (A)
Machines
316. The economist who said that international trade was based upon the concept of absolute advantage was:
- David Ricardo
- Adam Smith
- J.S.Mill
- Bertil Ohlin
Correct answer: (B)
Adam Smith
317. Harrod-Domar model was formed the basis of which plan
- First plan
- Third plan
- Second plan
- None of the above
Correct answer: (A)
First plan
318. Joint profits are maximized in the model cartel, which is model of:
- Duopsony
- Duopoly
- Oligopoly
- Oligopony
Correct answer: (C)
Oligopoly
319. Which of the following is a problem connected with general equilibrium analysis?
- Uniqueness problem
- Existence problem
- stability problem
- all of the above
Correct answer: (D)
all of the above
320. Advocates of the public-choice view argue that elected officials
- Will always respond to inflation with expansionary policies but will respond to unemployment with restrictive policies
- Will actively respond to inflation with restrictive policies but are reluctant to respond to unemployment with expansionary policies
- Will always respond to both inflation and unemployment with expansionary policies
- None of the above
Correct answer: (D)
None of the above