जीएसएससी परीक्षा पूर्वतयारी

1 Which of the following statements is false in relation to consumer equilibrium?

 A A consumer gets maximum utility at a point where the budget line is tangential to the indifference curve.

 B The substitution ratio gives the slope of the indifference curve.

 C Other things remaining the same, a change in the price of one good results in a new budget line which will not be parallel to the

 previous one.

 D Equi-marginal utility is achieved at the mid-point of the budget line.

 E None of the above

 Correct Answer D

 Marks 1

 2 If the market demand curve shifts sharply to the left while market supply curve moves to the right, which of the following is true?

 A Equilibrium quantity will increase, but equilibrium price will decrease.

 B Equilibrium price will increase, but equilibrium quantity will decrease.

 C Equilibrium price and equilibrium quantity will decrease.

 D Equilibrium price will decrease but equilibrium quantity may or may not change.

 E None of the above

 Correct Answer C

 Marks 1

3 An expansionary fiscal policy combined with a liberal monetary policy results in

 i. A lower level of output.

 ii. A higher level of output.

 iii. A lower interest rate.

 iv. A higher interest rate.

 A lower or higher interest rate depending on the relative magnitude of fiscal and monetary policies.

 A (i) and (iii) above

 B (i) and (iv) above

 C (ii) and (iii) above

 D (ii) and (v) above

 E None of the above

 Correct Answer D

 Marks 1

4 A firm having a kinked demand curve indicates that

 i. If the firm reduces the price, competitive firms also reduce the price

 ii. If the firm increases the price, competitive firms also increase the price

 iii. If the firm reduces the price, competitive firms do not reduce the price

 iv. If the firm increases the price, competitive firms do not increase the price

 A Only (i) above

 B Both (i) and (iv) above

 C Both (ii) and (iv) above

 D Both (ii) and (iii) above

 E None of the above

 Correct Answer B

 Marks 1

5 Personal disposable income is equal to 

 A Wages and salaries + Dividends paid at home – Personal income tax

 B Wages and salaries + Dividends paid at home + Factor income received from abroad – Personal income tax

 C Wages and salaries + Dividends paid at home + Factor income received from abroad + Transfers from government – Personal

 income tax

 D Wages and salaries + Dividends paid at home + Factor income received from abroad – Transfers from government – Personal

 income tax.

 E None of the above

 Correct Answer D

 Marks 1

6 Question Description Which of the following theories predicts that a country will export those goods that use the country’s abundant factor(s) intensively

 in production and import those goods that use the country’s scarce factor(s) intensively in production?

 A Absolute advantage.

 B Comparative advantage.

 C Heckscher-Ohlin theory.

 D The production differentiation model.

 E None of the above

 Correct Answer C

 Marks 1

7 In the context of Domar's model, what does the "vicious circle of poverty" refer to?

 A A cycle of low savings and low investment

 B Rapid population growth leading to economic stagnation

 C The impact of income inequality on economic growth

 D Technological stagnation in underdeveloped economies

 E None of the above

 Correct Answer A

 Marks 1

8 Diseconomies of scale refer to

 A The forces which reduce the average cost of producing a good as the firm expands the size of its plant

 B The forces which reduce the marginal cost of producing a good as the firm expands the size of its plant

 C The forces which increase the average cost of producing a good as the firm expands the size of its plant

 D The forces which increase the marginal cost of producing a good as the firm expands the size of its plant

 E None of the above

 Correct Answer C

 Marks 1

9 Which of the following is/are true?

 A When the marginal cost is below the average cost, it pulls the average cost down.

 B When the marginal cost is below the average cost, it pulls the average cost up.

 C When the marginal cost is below the average fixed cost, it pulls the average cost up.

 D When the marginal cost is below the average fixed cost, it pulls the average variable cost down.

 E None of the above

 Correct Answer A

 Marks 1

10  Question Description Which of the following statements is true?

 A If 10% decrease in the inputs leads to 10% increase in the output, increasing returns to scale are said to be in operation.

 B If the output remains constant in spite of 10% reduction in the quantities of inputs, constant returns to scale are said to be in

 operation.

 C The elasticity of substitution between two factors, labour and capital, in Cobb-Douglas production function is equal to unity.

 D Isoquants are concave to the origin.

 E None of the above

 Correct Answer C

 Marks 1

 11 The ordinal utility approach in indifference curve analysis focuses on:

 A Measuring the exact amount of utility gained from consumption

 B Ranking consumption bundles based on preference without measuring utility quantitatively

 C Calculating total utility derived from consuming specific quantities of goods

 D Analysing the impact of taxes on consumer choices

 E None of the above

 Correct Answer B

 Marks 1

12 Which of the following is false with reference to MR in a monopoly?

 A When the demand curve slopes downward MR will be equal to the difference between price and the reduced revenue on all

 previous units.

 B The point at which the MR curve touches the X-axis gives the output where the revenues of the firm are maximum.

 C When MR is zero, the firm has maximum total revenue.

 D When the demand turns inelastic, MR will be negative

 E None of the above

 Correct Answer D

 Marks 1

13 Question Description In the Cambridge growth model, what does the Harrod-neutral technological progress refer to?

 A Technological progress that benefits all sectors equally

 B Technological progress that benefits the service sector

 C Technological progress that benefits the manufacturing sector

 D Technological progress that benefits only the agricultural sector

 E None of the above

 Correct Answer A

 Marks 1