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Economics

331)In which situation the borrowers and lenders expect inflation?
The real rate of interest exceeds the nominal rate of interest The nominal rate of interest exceeds the real rate of interest
The nominal rate of interest and the real rate of interest become zero The nominal rate of interest equals the real rate of interest
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332)The accelerator model predicts that the change in investment is determined by the change in
Output Interest
Inventory Capital
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333)What is effective demand?
Level of demand when aggregate demand is less than aggregate supply Level of demand when aggregate demand is equal to aggregate supply
Level of demand when aggregate demand is more than aggregate supply Level of demand when aggregate demand is zero
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334)The measure to be taken when the economy is under inflationary pressure is to
Reduce interest rate Increase public spending
Increase direct tax Both (a) and (c)
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335)The life cycle hypothesis of consumption implies that consumption is related to
Transitory income Expected life income
Permanent income Price expectation over ones life time
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336)Employment elasticity of growth is measure as
Employment groth rate/ Population growth rate Employment growth rate/ Unemployment growth rate
Employment growth rate/ Per capita income growth rate Employment growth rate/ GDP
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337)Which one of the following is not a tax sacrifice principle?
Equal average sacrifice Equal marginal sacrifice
Equal absolute sacrifice Equal proportional sacrifice
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338)Find the correct statements from the following-
a) Lower the reserve-deposit ratio, higher is the money multiplier
b)  Lower the currency-deposit ration, higher is the money multiplier
c) Larger the monetary base, lower is the money supply
d) Larger the monetary base, higher is the money supply
a, b and c a, b and d
b, c and d a, c and d
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339)Find the correct statement
Inflation benefits the bond-holders Inflation benefits the debtors
Both (a) and (b) None of these
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340)Which of the following influence the currency notes in circulation as well as the proportion of total money supply held in the form of currency?
I. The development of banks and banking habits of population
II. The level of prices in the economy
III. The physical volume of trade and transactions
Only I Only II
I and II I, II and III
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341)Which one of the following is the best average for the construction of index number ?
Harmonic mean Arithmetic mean
Geometric mean Weighted mean
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342)Which of the follwing is correct?
A tax on personal income reduces disposable income Bond price and interest rate vary indirectly
Both (a) and (b) None of these
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343)When there is monopolistic competetion, the cross elesticity of demand for a product of the firm will be
Perfectly inelastic Perfectly elastic
Highly inelastic Highly elastic
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344)The minimum price at which the seller will not sell the goods is known as
Reserve price Shadow price
Estimated price Administered price
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345)In a competetive market incidence of tax
a) is fully borne by buyers if elasticity of demand is zero
b) is independent of elasticity
c) is shared by buyers and sellers
d) on buyers increases if elasticity of supply increases
Which of the above statements are correct?
a, c and d a and b
b and d a, b and c
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