S. No. Questions Marks - 10
________________________________________
1 . What is price discrimination? Under what necessary conditions can price discrimination be practiced?
2 . Explain the concept of consumer’s surplus . How is it related to utility?
3 .Distinguish between factors causing movement and shift in the supply curve.
4 .Explain Marginal productivity theory.
5 .What are the major sources of disequilibrium in the BOP of the country? What kind of BOP disequilibrium can hardly be cured through policy measures?
6 .Explain the Sweezy’s kinked demand curve model of Oligiopoly . How does it explain price rigidity under oligopoly?
7 .What are the arguments against the fixed exchange rate ? Why does the IMF want the member nations to adopt a fixed exchange rate policy despite its advantages?
8 .Distinguish between laws of returns to variable proportions and laws of returns to scale. Explain the factor, which cause increasing returns to scale.
Case Detail:
Case Study
An Oil Crisis Provoked Policy Dilemma
The sudden increase in the price of crude oil by the OPEC countries has put India in a fix. To top
it, the Finance Ministry which had increased the market price of LPG and SKO (kerosene) had to
partially roll it back, the former by Rs 10 and the latter by Re 1 under political pressure. This
means the burden on the Union Budget has increased on both grounds, one because of an
increase in the oil price internationally and second, because of the subsidy on petroleum
products. All of these will result in an additional burden of Rs 560 crore, a burden which is
unbearable, given the present situation of the Central Government's deficit. The fiscal deficit
stands at a figure of 5.6 per cent as against the target of 4.5 per cent. The situation by all
standards is alarming. Some suggested that a temporary cut should be made in the import of
crude oil, but this is a straight invitation to a supply shock inflation, such that not only the prices
in the economy go up, but there is a shortfall in the supply of various products including LPG,
SKO, HSD (diesel), etc., a situation totally avoidable by all means.
A more plausible argument was put forward by some other people in the Finance Ministry, that
of restructuring so that more emphasis is laid automatic stabilizers, various direct taxes like
income tax, corporate tax, etc. The argument that was put forward was, the industry was out of
recession and corporate income seemed to be on a pick. The export sector was also booming
with a growth rate of 15 per cent. All these have a positive impact on the GDP growth rate
(though the agricultural sector seemed to be pulling along without much growth in the services
sector). The GDP at market price seemed to grow at an impressive rate of 7 per cent (whereas the
GDP at factor cost was growing only at 6.25 per cent). All these make the industrial as well as
the external sector, a good source of taxation; Ministry officials further said, in the face of a
surging fiscal deficit, mainly due to interest repayment, the burden of government-increased
taxation seems inevitable, and one is lucky that at least two sectors are doing well.
However, the officials seem to have missed one point: a direct tax like income or corporate
tax, which moves proportionally with the rising income has a dampening effect on not only the
overall industrial and corporate atmosphere, but the total effect is a multiple of the initial tax
burden as it affects the investment multiplier value negatively. Taxing the export sector also
creates a negative multiplier effect. People from the ministry seem to face a real dilemma. An
increase in such proportional direct taxes make them instantaneously richer by Rs 9,000
to12,000 crore, but there is a risk of putting the country back on yet another industrial slowdown.
However, allowing further deficit in the budget is also by no means desirable.
1.Discuss the kind of inflation the country might face if there is a shortage of crude oil in the economy.
2. How does a direct proportional tax have a negative multiplier effect on the economy's level of income?
Question No. 1 Marks - 10
________________________________________
The rate at which one input can be reduced per additional unit of the other input while holding output constant is measured by the:
Options
Marginal rate of substitution.
Marginal rate of technical substitution.
Average product of the input.
None of the given options.
Question No. 2 Marks - 10
________________________________________
All of the following are determinants of supply except:
Options
Price
Income levels
Objectives of the firm
Level of technology
Question No. 3 Marks - 10
________________________________________
Demand function is given as Dx=f(Px, Pr,Y,T) What does T stand for:
Options
Taxes
Tastes
Both Taxes and Tastes
None
Question No. 4 Marks - 10
________________________________________
What kind of relationship exist between demand for a good and price of its substitute goods?
Options
Direct
Inverse
No effect
Can be direct or inverse
Question No. 5 Marks - 10
________________________________________
What kind of relationship exist between demand for a good and price of its complementary
goods?
Options
Direct
Inverse
No effect
Can be direct or inverse
Question No. 6 Marks - 10
________________________________________
Degree of responsiveness of demand to a change in any of its determinants is called
Options
Elasticity of demand
Law of demand
Law of supply
Elasticity of supply
Question No. 7 Marks - 10
________________________________________
………. tells us about the , ‘direction’ of change in demand in response to a change in any of its determinants; it , however does not tells us anything about the ‘ magnitude’ of change
Options
Law of demand
Demand function
Both
None
Question No. 8 Marks - 10
________________________________________
The value of elasticity coefficient varies between zero and ………
Options
Infinity
one
Both
None
Question No. 9 Marks - 10
________________________________________
Elasticity of supply is defined as the ……of percentage change in quantity supplied and the percentage change in the price of the commodity
Options
Ratio
Addition
Multiplication
None of the above
Question No. 10 Marks - 10
________________________________________
Perishable goods cannot store and thus, entire stock of such goods must be disposed of within very short period, whatever may be price. Hence the nature of supply of such goods is –
Options
Elastic
inelastic
unitary elastic
none
Question No. 11 Marks - 10
________________________________________
In Marginal utility theory, utility is an:
Options
Ordinal concept
Cardinal concept
Both ordinal and cardinal concept
None of the above
Question No. 12 Marks - 10
________________________________________
MU of the commodity becomes negative when TU of the commodity is:
Options
Rising
Constant
Falling
zero
Question No. 13 Marks - 10
________________________________________
Falling MU shows which law?
Options
Law of diminishing returns
Law of diminishing marginal rate of substitution
Law
of diminishing marginal utility
None of the above
Question No. 14 Marks - 10
________________________________________
Slope of TU curve is called
Options
rginal utility
Utility
Average utility
None
Question No. 15 Marks - 10
________________________________________
Indifference mean:
Options
X is preferred to Y
Y is preferred to X
X and Y are equally preferred
None
Question No. 16 Marks - 10
________________________________________
Higher Indifference curve means:
Options
Consumer has more income
Price of goods have reduced
Higher utility level
All of the above
Question No. 17 Marks - 10
________________________________________
MRS is given by :
Options
ΔX/ ΔY
ΔX- ΔY
ΔY/ ΔX
ΔY- ΔX
Question No. 18 Marks - 10
________________________________________
When tax is raised, consumer surplus:
Options
Falls
Rises
Remain unchanged
Becomes Zero
Question No. 19 Marks - 10
________________________________________
Consumer surplus is the difference between :
Options
amount consumer is willing to pay minus amount actually paid by the consumer
Amount consumer actually paid minus the amount consumer is willing to pay
Amount consumer actually paid minus the amount charged by the seller
Amount consumer is willing to pay minus the amount producer is wanting.
Question No. 20 Marks - 10
________________________________________
The common assumption of marginal utility and indifference curve theories is:
Options
Consistency
Transitivity
Rationality
More is better
Question No. 21 Marks - 10
________________________________________
Factors of production can be :
Options
Land
Labour
Organisation
All of the above
Question No. 22 Marks - 10
________________________________________
Production function means :
Options
Physical relationship between inputs used and output
Technical relationship between inputs used and output
Financial relationship between inputs used and output
Both physical and technical relationship between inputs used and output
Question No. 23 Marks - 10
________________________________________
Short –run production function means
Options
At least one factor is in fixed supply
Two factor are in fixed supply
All factors are in fixed supply
One factor is in variable supply
Question No. 24 Marks - 10
________________________________________
Law of variable proportion holds when
Options
State of technology is same
All units of variable factor are homogeneous
There is at least one fixed factor
All of the above
Question No. 25 Marks - 10
________________________________________
Returns to scale occur :
Options
In the long –run
When all inputs are increased
When the increase in inputs is in the same proportion
All of the above
Question No. 26 Marks - 10
________________________________________
Cost of next best alternatives opportunity given up is called
Options
Outlay cost
Opportunity cost
Explicit Cost
Implicit Cost
Question No. 27 Marks - 10
________________________________________
Fixed cost is also called:
Options
Sunk cost
Supplementary cost
Overhead Cost
All of the above
Question No. 28 Marks - 10
________________________________________
MC curve is ……… shaped.
Options
L-shaped
Straight line
U –shaped
Inverse S-shaped
Question No. 29 Marks - 10
________________________________________
Long-run AC curve is also called:
Options
Planning curve
Envelop curve
Cost frontier
All of the above
uestion No. 30 Marks - 10
________________________________________
Total cost at zero level of output will be= ………….?
Options
TFC
TVC
AC
AFC
Question No. 31 Marks - 10
________________________________________
Homogenous product exists under:
Options
Perfect Competition
Monopoly
Monopolistic Competition
All of the above
Question No. 32 Marks - 10
________________________________________
One seller exists under:
Options
Perfect Competition
Monopoly
Monopolistic Competition
All of the above
Question No. 33 Marks - 10
________________________________________
Monopolistic competition means:
Options
Large number of sellers
Product differentiation
Free entry and exit of firms
all of the above
Question No. 34 Marks - 10
________________________________________
Homogenous product means product are:
Options
Perfect substitutes
Identical
Cross elasticity between products is infinity
All of the above
Question No. 35 Marks - 10
________________________________________
Discriminating monopoly means:
Options
Different prices are charged
Consumers might be same or different
Commodity is same
All of the above
Question No. 36 Marks - 10
________________________________________
What brings about pure competition?
Options
Large number of buyers and sellers
Homogenous product
Free entry and exit of firms
All of the above
Question No. 37 Marks - 10
________________________________________
Who coined the term monopolistic competition?
Options
Chamberlin
Joan Robinson
Robbins
Marshall
Question No. 38 Marks - 10
________________________________________
What is the basic principle of all market conditions?
Options
A firm should produce only if TR>TC
To maximise profit, firm must produce where MR=MC
Slope of MC should be more than slope of MR
All of the above
Question No. 39 Marks - 10
________________________________________
In economics, …………………measures the payments that flow between any individual country and all other countries
Options
Exchange Rate
BOP
Both of the above
None
Question No. 40 Marks - 10
________________________________________
A term commonly used to refer to a central banks operations which mitigates the two
potentially undesirable effects of inbound capital (currency appreciation and inflation) is-
Options
Sterilisation
Open market operations
Exchange Rate
none
Dear Student,
Solved assignment which is always available with us. We ensure you that the answer quality would be the best and you will get up to 90% to 100% marks in the assignments purchased from us. We have an expert on every subject working with us. The subject matter experts are highly qualified and deliver their best for you over and over again.
Please have a look at the price list mentioned below and send us a reply on this e-mail to let us know which assignment you want from us.
- Ready to use General Assignments – This assignment is ready to use assignment for every student. (The content of this assignment is the same for every student. You may risk getting your marks deducted by the university due to plagiarism.) We will provide you with all Sections of assignment fully solved: Section A, Section B, Section C.
- Customized, personal and exclusive Assignments- This assignment is personalized and customized just for you. The answers of this assignment would not be shared with any other student. The content of this assignment would be unique and we will delete it from our database after sending it to you exclusively. (This assignment would have 0% plagiarism). We will provide you with all Sections of assignment fully solved: Section A, Section B, Section C.
- Answers with online typing and filling assistance Assignments – This assignment is done by our staff members on your behalf. We will do it online by using your Amity user id and password. The answers we provide would be unique and will not be shared with any other student. (This assignment would also have 0% plagiarism) .We will provide you with all Sections of assignment fully solved: Section A, Section B, Section C. Please NOTE: This assignment is same as Customized, personal and exclusive Assignments, in addition we provide you here online typing and filling by just an additional charge of Rs 300 only as typing charge.
Please note that you have to pay us in advance. All payment should be made in INR. As soon as we receive your payment, we will send you’re ready to use General Assignment within 10 minutes only. If you have opted for Customized, personal and exclusive Assignment, we will send the assignment within 5 hours of receiving your payment. If you have opted for Answers with online typing and filling assistance Assignment, we will send your assignment within 24 hours of receiving the payment. Customized , personal and exclusive Assignments and Answers with online typing and filling assistance Assignments submission takes more time because we customize each and every word of the assignment just for you. So we request you to be patient.
Our process
- Email or call us for which type of assignment you need: Ready to use General Assignments OR Customized, personal and exclusive Assignments OR Answers with online typing and filling assistance Assignments
- We will reply you with price list of assignment
- After you have made the payment please email us your payment details with Assignment Name and Type Preference at solvezone@gmail.com. We will send your assignment ASAP.
Pay Online
Now you can also make the payment online by the below mentioned link. We accept payments through Credit Card, Debit Card and Net Banking too.
Pay Offline
You can also pay us via NEFT / RTGS by visiting the nearest branch of your bank.
You can also deposit Cash by visiting the nearest branch of ICICI Bank.
M.No. 08882309876 M.No. 08010058890 E-mail solvezone@gmail.com
University: AMITY Year: 2015