211. Who is regarded as a father of Business Economics
Joel Dean
Adam Smith
J M Keynes
Ragnar Frisch
Correct answer: (A) Joel Dean
212. Which of the following is not a function of managerial economist
Analysis of under developed economies
Capital project appraisal
Advice on primary commodities
None of these
Correct answer: (D) None of these
213. In the long run all input become ______________
Fixed
Variable
Semi variable
None of these
Correct answer: (B) Variable
214. The product under monopolistic competition are
differentiated with close substitute
perfect substitute
differentiated without close substitute
homogeneous
Correct answer: (A) differentiated with close substitute
215. Automatic fiscal stabilizers
Keep the federal budget balanced
Keep the federal high employment budget balanced
Help to reduce the severity of recessions and inflationary boom periods
Increases structural deficits over the business cycle
Both C & D
Correct answer: (C) Help to reduce the severity of recessions and inflationary boom periods
216. If the tax function is given by T= -20+0.1 Y the average tax rate would
Be 0.1
Fall as income falls
Vary negatively with income
Be -20 _0.1
None of the above
Correct answer: (B) Fall as income falls
217. According to partisan party model,
The primary emphasis of the liberal party is on full employment and income distribution.
The liberal party stresses price stability as their most important goat.
Employment stability is most important to the conservative party.
Only two parties exit.
Both a and d
Correct answer: (E) Both a and d
218. Which of the following statements is(are) correct?
Even the earliest political business cycle and partisan models assume that expectations were rational
The partisan model of fiscal policy cannot be modified to be consistent with rational expectations
The myopic, or short-sighted behaviour of voters is inconsistent with rational expectations
The earliest political business cycle models assumed that expectations were always rational, whereas the partisan model assumed that expectations were sometimes irrational.
Correct answer: (C) The myopic, or short-sighted behaviour of voters is inconsistent with rational expectations
219. The structural deficit is
Directly attributable to the long-run behaviour of the economy
Not directly attributable to the cyclical behaviour of the economy
The result of permanent decisions policymakers have made about tax rates, the level of government spending, and benefit levels for transfer programs.
Both b and c
Correct answer: (D) Both b and c
220. Assuming a simultaneous deduction in income taxes and transfer payments of $50 billion, then aggregate disposable income will