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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  
Answer :  


332)The accelerator model predicts that the change in investment is determined by the change in  
Output  Interest  
Inventory  Capital  
Answer :  


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  
Answer :  


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)  
Answer :  


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  
Answer :  


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  
Answer :  


337)Which one of the following is not a tax sacrifice principle?  
Equal average sacrifice  Equal marginal sacrifice  
Equal absolute sacrifice  Equal proportional sacrifice  
Answer :  




338)Find the correct statements from the following
a) Lower the reservedeposit ratio, higher is the money multiplier b) Lower the currencydeposit 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  
Answer :  


339)Find the correct statement  
Inflation benefits the bondholders  Inflation benefits the debtors  
Both (a) and (b)  None of these  
Answer :  


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  
Answer :  


341)Which one of the following is the best average for the construction of index number ?  
Harmonic mean  Arithmetic mean  
Geometric mean  Weighted mean  
Answer :  


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  
Answer :  


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  
Answer :  


344)The minimum price at which the seller will not sell the goods is known as  
Reserve price  Shadow price  
Estimated price  Administered price  
Answer :  


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 increasesWhich of the above statements are correct? 

a, c and d  a and b  
b and d  a, b and c  
Answer :  
