Business Economics

281. Indian exports were increased during 2001-2002 and it went upto the level of:

  1. 39.8 billion dollars
  2. 28.2 billion dollars
  3. 44.0 billion dollars
  4. 45.6 billion dollars
Correct answer: (C)
44.0 billion dollars

282. The interrelation between innovations and investment opportunity was first pointed out by:

  1. Schumpeter
  2. Samuelson
  3. T. R. Hicks
  4. Torgenson
Correct answer: (D)
Torgenson

283. Who has suggested the utilization of “disguised unemployment” as a source of savings potential in underdeveloped countries?

  1. W.A Lewis
  2. Ragnar Nurkse
  3. Gunnar Myrdal
  4. K.K Kurihara
Correct answer: (B)
Ragnar Nurkse

284. Suppose that the MPC out of disposable income was 0.8 and the tax function for a given economy was T= -30+0.25Y. an increase in the intercept of the tax function of 10 units(from -30 to -20 would cause equilibrium income in the simple Keynesian model to fall by

  1. -20 units
  2. 10 units
  3. 20 units
  4. 40 units
Correct answer: (C)
20 units

285. Advocates of the public-choice view argue that voting behaviour is influenced by the

  1. Rate of inflation prior to an election.
  2. Level of economic activity.
  3. Favourite son syndrome.
  4. Campaign issues
Correct answer: (B)
Level of economic activity.

286. Assume that the actual deficit is $150 billion with the economy well below potential output and that the level of economic activity rose to its potential level while tax revenues increased by $50 billion and transfer payments fell by $20 billion. Then, what is the structural deficit?

  1. $180 billion
  2. $120 billion
  3. $220 billion
  4. $80 billion
Correct answer: (D)
$80 billion

287. From the net tax function: T=t0+t1Y,where t0<0 and t1>0, it follows that, as income rises

  1. average taxes falls and the surplus declines
  2. average taxes rises and the deficit increases
  3. average taxes falls and the deficit declines
  4. average taxes and the deficit do not change
Correct answer: (C)
average taxes falls and the deficit declines

288. The book 'Asian Drama' was written by

  1. A.C Pigou
  2. D.Ricardov
  3. Gunnar Myrdal
  4. Lionel Robbins
Correct answer: (C)
Gunnar Myrdal

289. An exceptional demand curve is one that slopes

  1. Upward to the left
  2. Downward to the right
  3. Horizontally
  4. Upward to the right
Correct answer: (D)
Upward to the right

290. When the demand curve is a rectangular hyperbola, it represents:

  1. Perfectly elastic demand
  2. Unitary elastic demand
  3. Perfectly inelastic demand
  4. Relatively elastic demand
Correct answer: (B)
Unitary elastic demand
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