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Practice International Trade Questions and Answers

What is the degree of homogeneity in case of Constant Elasticity of Substitution production function?
Consider the following table What is the Nash Equilibrium here?...
There are two firms in the market and they follow Cournot model. The demand curve faced by them is Q = 180 – P and the marginal cost of producing the goo...
Demand curve of a Monopoly firm is Q=1000-50P and the Total cost of production is TC = 50+2Q. Profit maximizing output for the firm is
In case of Cob web Model, Perpetual Oscillation is witnessed when
Suppose that the (inverse) market demand for good A is given by P = 400 - 2Q Where Q is total industry output. There are two firms that produce A. Each ...
Suppose that a firm has the cost function for a plant as given below C(w, r, q) = 0.5q(w+r) where q is output, w is the cost of labour l and r is the cost ...
What is the optimal number of trips to bank such that cost of holding money is minimum, if the rate of interest foregone is 10% , income is 100 and the tra...
If the wage contracts gets better indexed with the prices, what will happen to the effect of unemployment on inflation?
_____________________Effect is an effect that describes the relationship between an increase in productivity, higher exchange rates and an increase in wage...
Consider a closed economy wherein C = 0.8 Yd , t = 0.25 , I = 900 – 50i , G = 800, L = 0.25 Y – 62.5i , M/P = 500 Where in Yd = Disposable Income, ...
Consider a closed economy wherein C = 0.8 Yd , t = 0.25 , I = 900 – 50i , G = 800, L = 0.25 Y – 62.5i , M/P = 500 Where in Yd = Disposable Income, ...
If the R2 value for a regression line is 0.60 for 50 observations. What is the adjusted Rsquare value if the number of independent variables are 7?...
Calculate the F-statistic , given the unrestricted R2 value is 0.60. Number of restricted parameters are 7 and total number of observations are 108....
When the value of d=2, in case of Durbin-Watson Test, what should be done with the null hypothesis?
Calculate the value of VIF in case of Multicollinearity, if the Ri2(Coefficient of auxiliary regression on independent variables) is 0.60 and the variance ...
The __________________test in econometrics begins by assuming that a defining point exists and can be used to differentiate the variance of the error term.
A and B constitute a random sample of size 2 from normal population with the mean µ and variance α2, find the efficiency of (A+2B)/3
The regression equation is Y = β1X1i + ui and following is the sample, Find the value of B1 ...
Which of the following pairs is INCORRECT considering the constitutional provisions of the Comptroller and Auditor General of India?
The National Rural Livelihood Mission, a measure adopted by the Government to alleviate poverty, is also known as________.
Which of the statement is TRUE considering the Central problems of an economy?
In 1991, under the external sector reforms. Indian rupee______.
National Sample Survey Organization (NSSO) provides estimates of magnitude of unemployment on the basis of different concepts. Which of the following is su...
Balance of Trade is measured as:
During the first stage of a total product curve, the total product is
Which of the following pairs of goods is/are likely to have a positive cross price elasticity of demand? (1) Cars and Petrol (2) Tea and Coffee (3) Rice...
Which of the following is NOT a correct statement in the context of National income?
The foreign capital investment in India on the eve of independence concentrated on the following sectors of the economy (i) railways (ii) tea and coffee ...
Which of the following is/are included while calculating the national income using the income method? (1) Wages and salaries in cash (2) Employers' contr...
For the growth of the Indian economy, which among the following should NOT be encouraged?
Which of the following statements is/are true? (1) Outsourcing of services is an outcome of globalisation. (2) Privatisation implies supremacy of social ...
An analyst has data on wages for 100 individuals. The arithmetic mean of the log of wages is the same as:
Suppose your data produces the regression result y = 10 +3x. Scale y by multiplying observations by 0.9 and do not scale x. The new intercept and slope est...
In a multiple regression model, the Durbin-Watson test statistic is 1.3, while the critical lower and upper values are 1.5 and 1.7 respectively. This impli...
In a small open economy with a floating exchange rate, the supply of real money balances is fixed and a rise in government spending ______
Let X1, X2 and X3 are three (Pairwise) uncorrelated random variables. The mean & variance of each variable is 0 and 3, respectively. Find the correlation b...
GDPf = Gross Domestic Product at Factor Cost; GDPm = Gross Domestic Product at Market Price; NNPf = Net National Product at Factor Cost; C = Consumption; I...
An analyst has data on wages for 100 individuals. The arithmetic mean of the log of wages is the same as:
Suppose your data produces the regression result y = 10 +3x. Scale y by multiplying observations by 0.9 and do not scale x. The new intercept and slope est...

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