Practice Research Questions and Answers

• Which of the following is not an example of market failure?
• What will happen when supply elasticity is less than demand elasticity? 
• For a monopoly firm, which of the following equalities is always true? 
• For any given price, a firm in a competitive market will maximize profit by selecting the level of output at which price intersects the
• Employing a lawyer to draft and enforce a private contract between parties wishing to solve an externality problem is an example of a(n) ______________cost
• The government provides public goods because 
• Within a country, the domestic price of a product will equal the world price if 
• Claudia would be willing to pay as much as $100 per week to have her house cleaned. John's opportunity cost of cleaning Claudia’s house is $70 per we...
• Market failure is the inability of 
• According to the graph on the right, the equilibrium price in the market before the tax is imposed is  ...
• If demand is price inelastic, then 
• With fixed costs of $400, a firm has average total costs of $3 and average variable costs of $2.50. Its output is:
• The 2nd phase (diminishing returns to a factor) is exhibited by the following total product sequence:
• Crusoe begins with an endowment A. Point R is the consumption combination he would choose at real interest rate r and point R´ is the consumption c...
• Consider the game:   What is the dominant strategy of the game?...
• Two people enter a bus. Two adjacent cramped seats are free. Each person must decide whether to sit or stand. Sitting alone is more comfortable than sittin...
• Guess an even integer between 1 and 100 that is closest to 1/2 of the mean of the guesses, what will be the equilibrium in that case?
• A profit-maximizing monopolist sets an output of 100 per day and a price of £10. Which of the following statements is true?
• A profit-maximizing monopolist finds that if it remains open, the best output is 50 a week, but at this output it would make a loss. Under what circumstanc...
• On a graph for a monopolist or monopolistic competitor, which of the following curves coincide?
• N people guess an integer between 1 and 100, and the winner is the player whose guess is closest to 2 times the mean of the guesses. What is the equilibriu...
• Consider the matching-pennies game:   Let p= probability Player 2 plays left, q= probability Player 1 plays left. Find the mixed-strategy equilibrium....
• In a government budget, revenue deficit is Rs. 50000 crores and borrowing are Rs. 75000 crores. The fiscal deficit will be:
• 'Distributed Profits' is also known as: 
• If factor cost is greater than Market price, then it means that: 
• In a small open economy with a floating exchange rate, the supply of real money balances is fixed and a rise in government spending ______ 
• With reference to the governance of public sector banking in India, consider the following statements: Capital infusion into public sector banks by the Go...
• Suppose the money supply in Mexico grows more quickly than the money supply in the USA. We would expect that
• Suppose the nominal interest rate is 7 per cent while the money supply is growing at a rate of 5 per cent per year. If the government increases the growth ...
• If the public consumes €100 billion less and the government purchases €100 billion more (other things unchanging), which of the following statement is ...
• The minimum rate at which the central bank re-discounts bills held by commercial banks is called: 
• Hirschman takes divergent series of investment as a project that : 
• Demonetization refers to
• A firm should increase investment when :
• Offer curve introduced by Alfred Marshall deals with :
• Which of the following is/are the aim/aims of "Digital India" Plan of the Government of India? Formation of India's own Internet companies like China did....
• With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements: It is the flagship scheme of the Ministry of Labour and Employme...
• When C = 200 + 0.75(Y − T), I = 200 − 25r, G = 100, T = 100. Find IS curve function.
• For an economy, if C = 400 + 0.8Yd, Yd = Y − T, T = 300 + 0.2Y , find MPC.