Economics GK Quiz

Q136. The first theorem of welfare economics states that
(a) A competitive equilibrium is Pareto efficient
(b) A competitive equilibrium may be Pareto efficient
(c) A competitive equilibrium may not be Pareto efficient
(d) A competitive equilibrium maximises profit

Q137. Asymmetric information results into
(a) Market efficiency
(b) Market success
(c) Government failure
(d) Adverse selection by consumer

Q138. Which of the following ratios best describes the GNP deflator
(a) Nominal GNP to real GNP
(b) Real GNP to nominal GNP
(c) Nominal GNP to real GDP
(d) Real GNP to real GDP

Q139. According to monetarism, the demand for money depends upon
(a) Inflation rate
(b) Money supply
(c) Interest rates on bonds
(d) Rate of returns on all assets

Q140. Exchange rate that is determined by unregulated forces of supply and demand are
(a) Fixed exchange rate
(b) Floating exchange rate
(c) Pegged exchange rate
(d) Managed exchanged rate

Q141. The concept of consumer’s welfare is
(a) subjective
(b) objective
(c) negative
(d) positive

Q142. Which of the following is not a feature of an underdeveloped money market
(a) Existence of unorganised sector
(b) Inadequate funds
(c) Uniform rate of interest
(d) Lack of sub-markets

Q143. According to W.A. Lewis, what is ‘quasi bottleneck’
(a) High technology
(b) Over-population
(c) Capital accumulation
(d) Skilled labour

Q144. The backward bend in the shape of supply curve of labour is caused by
(a) cost of labour
(b) demand for labour
(c) factor market
(d) attitude of individuals towards work and leisure

Q145. Moral hazards are also a result of
(a) Symmetric information
(b) Lack of information
(c) Asymmetric information
(d) Perfect information

Q146. The investment demand curve shows the relationship between the following two variables
(a) Investment and consumption
(b) Consumption and interest rate
(c) Investment and interest rate
(d) Investment and demand for goods

Q147. Logit and Probit models are used to analyze data that are
(a) Binary
(b) Continuous
(c) Missing
(d) Used to analyze business cycles exclusively

Q148. Mercantilism was based on the ideology of
(a) Rapid industrialization
(b) Economic nationalism
(c) Free trade
(d) Economic expansionism

Q149. The counterpart of benefit externalities is
(a) average costs
(b) total costs
(c) internal costs
(d) external costs

Q150. If the firm has both monopolistic power in the product market and monopolistic power in the input market then the factor is paid a price ______
(a) Equal to its Marginal Revenue Product (MRP)
(b) Less than its Marginal Revenue Product (MRP)
(c) Greater than its Marginal Revenue Product (MRP)
(d) Equal to its Value of Marginal Product (VMP)

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