Mock test -1

TheEconomics hub

MOCK TEST-1

Q.1 an economic region of production consists of
A. The highest points of all isoquants
B. The positivity sloped portions of all isoquants
C. The negatively sloped of all isoquants
D. The middle of all isoquants
Q.2 Arrange the following in chronological order. (i) Theory of monopolistic competition (ii) Gurnot’s Theory of Duopoly (iii) Marshall’s Theory of Quasi-rent. (iv) Sweezy’s kinked demand curve Analysis
A. (iv) (iii) (i) (ii)
B. (i) (iii) (ii) (iv)
C. (ii) (iii) (i) (iv)
D. (iii) (i) (iv) (ii)
Q.3 PAUL M SWEEZY used a kinked demand curve to explain:
(A) Price determination in oligopoly
(B) Price rigidity in oligopoly
(C) Profit maximization in oligopoly
(D) Price output determination in oligopoly
Q.4 Revealed preference theory can be used:
(A) To prove the convexity of an indifference curve
(B) To break the price effect
(C) To prove basic proposition of law of demand
(D) All of the above
Q.5 According to Milton Friedman quantity theory of money is the theory of :
(A) Prices
(B) Income
(C) Demand for money
(D) Supply of money
Q.6 Even as the fixed average cost continues to fall, the average variable cost begins to rise because
(A) Returns to factors start diminishing
(B) Returns to factors start rising
(C) Input prices start rising
(D) Producers budget starts shrinking
Q.7 which among the following is not a characteristic of Imperfect Competition?
(A) Perfect knowledge
(B) Free transport
(C) Free Entry of firms
(D) Homogeneous product
Q.8 which of the following is an inferior good?
(A) Kerosene
(B) Cooking gas
(C) Electricity
(D)Chemical fertilizers
Q.9 Slutsky equation explains the
A. Demand for durable goods.
B. Supply of durable goods.
C. Split between price, income, and substitution effects.
D. Demand for rare or non-reproducible goods
Q.10 If a linear consumption function passes through the origin it means:
A. APC > MPC
B. APC < MPC
C. APC MPC
D. APC = MPC =0
Q.11 Slope of the LM Curve depends upon which of the following?
A. Interest elasticity of investment
B. Interest elasticity of income
C. Interest elasticity of demand for money
D. None of the above
Q.12 In consumption, inferior goods have
A. Negative income effect
B. Positive income effect
C. Zero income effect
D. Infinite income effect
Q.13 Which of the following can be considered as leakages in the force of the multiplier?
A. Higher propensity to import
B. Higher marginal propensity to save
C. Both (1) and (2) above
D. Neither (1) nor (2) above
Q.14 As income falls, consumption declines but proportionately less than the decrease in income because the consumer desires to sustain the previous standard of living. This is called?
A. Ratchet effect
B. Wealth effect
C. Demonstration effect
D. Income effect
Q.15 Which one is NOT axiom of inequality measures?
A. Principles of scale invariance
B. Principle of equity
C. Principles of translation invariance
D. Axiom of decomposability

ANSWER SHEET

MOCK TEST -1

Q.1 -C
Q.2-C
Q.3- B
Q.4-C
Q.5-C
Q.6-D
Q.7-A
Q.8-A
Q.9-C
Q.10-C
Q.11-C
Q.12-B
Q.13-C
Q.14-B
Q.15-A

*T&C

Author

TheEconomics hub