List of top Economics Questions

Consider the Mundell-Fleming model with flexible exchange rate for a small open economy characterised by a downward sloping IS curve and a vertical LM curve. If the risk premium of the country increases, then which one of the following options is CORRECT?

In India, plan-holiday was declared between

Which one of the following statements is CORRECT in the context of the Keynesian Absolute Income Hypothesis?

In the context of Reserve Bank of India’s monetary policy, which one of the following options represents the CORRECT order of magnitude?

Which one of the following statements is CORRECT in the context of price indices?

Which one of the following statements regarding Romer’s Endogenous Growth model and Solow’s Growth model is CORRECT?

The Taylor rule is used by the Central Banks mainly

For a sample of employees participating in an annual appraisal, the effect of the participants’ performance on their wages is studied. Information are collected, and variables of interest are defined below:

Let \(Y_t\) be the value of \(Y\) in year \(t\). The natural logarithmic value of \(Y_t\) is regressed on \(t\). A simple linear regression yields the statistically significant estimates of intercept and slope coefficient as \(12\) and \(0.1512\), respectively. The calculated compound annual growth rate of \(Y\) is

Which one of the following statements is CORRECT in the context of Gross Domestic Product (GDP) calculation?

The Permanent Settlement Act of 1793 primarily aimed at

The relationship between tax revenue and tax rate is represented by _ _ _.

Which one of the followings was NOT part of India’s economic reforms in 1991?

Let \(e\), \(R\), and \(p\) represent own price elasticity of demand, total revenue, and price, respectively for a good. If \[ \frac{\partial R}{\partial p}<0, \] then

India’s Second Five-Year Plan (1956-61) was developed based on

Which one of the following is a relative measure of dispersion?

If kurtosis is defined as \[ \left(\frac{m_4}{\sigma^4}-3\right), \]
where \(m_4\) is the \(4^{th}\) order central moment and \(\sigma\) is the standard deviation, then its value is positive for

Which of the following correctly explains “opportunity cost”?

If an economy is operating below full employment equilibrium, the government should:

Which of the following causes a rightward shift in the demand curve of a normal good?

When average revenue equals marginal revenue at all levels of output, the market structure is:

Which of the following is a direct tax?

If Marginal Propensity to Consume (MPC) is \(0.8\), the value of investment multiplier will be:

The central problem of an economy arises mainly because:

In national income accounting, depreciation is deducted from gross domestic product to obtain: