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...