Practice Research Questions and Answers

• When a firm’s decision to produce decreases the wellbeing of others, but the firm does not compensate those others. It is a case of______. ...
• Opportunity cost version of comparative cost advantage doctrine was introduced by
• Labour theory of value was propounded by                                 I.            Adam Smith        ...
• Starting from a position where the nation's money demand equals the money supply and its balance of payments is in equilibrium its balance of payments woul...
• For a positively sloped LM curve, which of the following statements is CORRECT?
• Which of the following is NOT a postulate of the Classical Model of full-employment equilibrium?
• If the marginal propensity to save is 0.3 and the marginal propensity to import is 0.1, and the government increases expenditures by Rs. 10 billion, ignori...
• From the information provided in the following table, calculate the GNPmp ...
• Which of the following statements is NOT CORRECT in the context of an Open Economy IS-LM Model under Floating Exchange Rate (with fixed price) and Perfect ...
• What happens in long run under monopolistic competition?
• What is the Slope of the Straight line PPC curve between cloth and wheat?
• When oligopolistic firms co-operate and work as cartel, then output produced is ______ than perfect competition and ______ to Monopoly
• The substitution effect for a commodity is
• The marginal product of labour (L) of the production function F(L, K) = LK2 is , MPL =
•   Which method is used by Hicks to eliminate the income effect when price of a product is changed
•   If a Cobb-Douglas production is Q = K0.4 L0.6 the function is
• What is the range of Gini coefficient?
• Production function of two companies producing floppy and discs was given. Q1 = 10L^0.5 K^0.5 Q2 = 10L^0.6K^0.4 Which of the following is correct if both...
• Elistan can produce either 5 monster trucks or 10 cans of silly string in a day. What is the opportunity cost of one can of silly string?
• Find the value of Lerner index if P=10 and MR= 5
• Find MR when ed=0.5 and P=10
• The 2nd phase (diminishing returns to a factor) is exhibited by the following total product sequence:
• Commodity X and Y have an equal price elasticity of supply. The supply of X rises from 400 units to 500 units due to a 20 percent rise in its price. Calcul...
• Demand function for two commodities was given as below. Which of the following options are correct? Q1= A1(Px1)-0.5 (Px2)0.2 Q2 = A2(Px2)-0.5 (Px1)0.6 ...
• Find Saddle point from the payoff matrix: ...
• Using the following table. Find the profit-maximizing output when price is Rs 25:   ...
• If following is a payoff (profit) matrix for Firm  A and B. What should be strategy for Firm A. first number is for Firm A and second is for Firm B.   ...
• A perfectly competitive firm was given, P = 60 and TC = Q2 + 8Q + 10. Now price decreases to 54, what is the change in profit?
• Demand and supply equations were given as Qd = 300 - P, Qs = P/2 and govt imposes specific tax you had to find quantity at which tax revenue is maximized?
• It is given that Qd = 300 - P, Qs = Q/2. Government imposes specific tax in such a way that it maximizes the total tax revenue. Then find out the DWL in su...
• What is the basis of international trade in the Heckscher-Ohlin model?
• There is a situation in which there is an extreme fall of demand for loans. What should be done by banks in such a situation?
• What is the terms of trade formula?
• Which growth model inspired the use of the capital-output ratio for development planning?
• A spot purchase of a currency coupled with simultaneous forward sale of the same currency is called:
• In a flexible exchange rate system, if domestic interest rate increases, then which of the following is true:
• A society in which there was garbage collection problem. But there was voluntary problem of payment so some people would participate and some wouldn’t pa...
• Vaccination dose by some individuals benefits the individuals around them by reducing the pace with which the disease spreads. This is an example of which ...
•   If investment is not responding to change in interest rate, then which of the following is true?
• What is the effect of expansionary fiscal policy on output and unemployment?