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Practice Research Questions and Answers

Since the 1980s, Wal-Mart stores have appeared in almost every community in America. Wal-Mart buys its goods in large quantities and, therefore, at cheaper...
To gauge the sacrifice made by a taxpayer, we should use the _____ tax rate.
In a market economy
Comparative advantage is based on
Economists generally believe that making assumptions is
A rational decision maker does which of the following?
What do you mean by ‘under conditions of a perfect competition in the product market’?
As the degree of product differentiation increases among the products sold in a monopolistically competitive industry, which of the following occurs?
If you have found the percentage of the value of sales accounted for by the four largest firms in an industry, you have found the
If a tax is placed on the product in this market, tax revenue paid by the buyers is the area ...
The graph that shows the relationship between the size of a tax and the tax revenue collected by the government is known as a
If a tax on a good is doubled, the deadweight loss from the tax
Which of the follow statements about price discrimination is not true?
If the economy is operating at point C, the opportunity cost of producing an additional 20 units of bacon is ...
The profit-maximizing monopolist will choose the price and quantity represented by point ...
A two-person zero-sum game means that the
Consider the game: Let p=probability prey is active and q=probability Predator is active. What is the mixed strategy Nash equilibrium for the game? ...
Consider a bargaining game: Find pure strategy Nash equilibrium.
In the standard IS-LM model, an increase in Government spending (G) without changing taxes has
Consider a fractional reserve banking system with a legally required reserve-deposit ratio of m. Suppose that an individual deposits ID dollars in one bank...
By _____________ economists refer to an unanticipated inflation that reduces the real value of outstanding government debt.
The fiscal deficit is the difference between the government’s total expenditure and its total receipts excluding ______
Which of the following is a synonym of "Undistributed Profits"?
GNP exceeds NNP by:
Accelerator theory of investment is the ratio of:
When exchange rate in terms of domestic currency rises
Which among the following is the reason for convergence exhibited by the Solow growth Model ?
At point A, inflation is equal to the underlying rate of inflation and output is at the level of output consistent with the equilibrium unemployment rate....
Fisher’s cash transaction equation is expressed as
If the money supply grows 5 per cent, and real output grows 2 per cent, prices should rise by
The primary deficit in a government budget will be zero, when _______
Consider the following: Statement 1: There exists an inverse relationship between market rates of interest and price of bond Statement 2: The liquidity t...
Consider the following: Assertion (A): According to Peacock-Wiseman hypothesis, public expenditure increases overtime in a step-by-step manner. Reason (R):...
Which among the following are the recommendations of the Urjit Patel Committee report on monetary policy? I. Curtailment of the fiscal deficit. II. Inflati...
If money is neutral,
The velocity of money is
Suppose the following bilateral spot exchange rates are being quoted for the Danish krone (DKK), the US dollar (US$) and the euro (€): US$/€ = 1.5 DKK/...
If a government defaults on the value of its debt by 3/4, this is the same as imposing a ____ tax on interest and repayment of the principal.
Calculate national income from the following data:
You are given the following data for national economy of a country Y: Equilibrium GDP is $6000 million. MPC is 0.8 It is considered to be necessary to incr...

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