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...