Practice Research Questions and Answers

• In a given year, the nominal GDP of a country was $2,500 billion and the real GDP was $2,000 billion. What is the GDP deflator for that year?
• In a study examining the relationship between hours of study (X) and test scores (Y) of students, a bivariate regression analysis was conducted. The follow...
• In the Classical model, if there is an increase in aggregate demand, what will be the long-run effect on output and prices? 
• Sonia has decided to always spend one-tenth of her income on shoes. Her income and price elasticities of demand for shoes are
• Which of the following is a property of a normal distribution?
• Which probability distribution is appropriate for modeling the number of occurrences of an event in a fixed interval of time or space?
• Which of the below probability distribution has same mean and variance?
• If a random variable X follows a uniform distribution between 0 and 1, what is the expected value of X?
• Given the following data for an economy: National Income: $700 billion Depreciation: $50 billion Indirect taxes minus subsidies: $30 billion Net fact...
• Given the following data for a country: Fiscal deficit: $50 billion Interest payments: $15 billion Capital expenditure: $25 billion What is the prima...
•    Which of the following best explains why the J-curve effect occurs?
• If Y is preferred over X lexicographically. If income is 100 and price of x=1 and price of y is10, then at optimal bundle the total amount of X is
• The economic development in Schumpeter’s development theory is because of
• Percentage of values that lie within a band around the mean in a normal distribution with a width of two standard deviations is approximately
• What is the correlation coefficient of the straight line ax+by+c=0 wherein a>0 and b <0
• Gauss-Markov Theorem is associated with which of the following
• What is sum product of the error an independent variable in OLS estimation
• Which one of the following is not an assumption of Classical Linear Regression Model
• Which of the following is not a test related to Heteroscedasticity?
• The difference in GNP and NNP is because of 
• The Fisher Effect assumes that the       
• Consider the following Utility function U(x,y) = 4x2 + 9y2 +12xy. Here the preferences are
• What is the elasticity of the demand curve when P=10 and Q=20 and the inverse of slope of the demand curve is -2?
• In which of the following market structure Quantity is maximum?
• A consumer demand curve can be obtained from
• We quite often use the term economies of scale. What does this mean?
• For the following demand curve, Q=10P-2 , calculate the profit made by the monopolist when Marginal cost is Rs.2
• Among the following production functions which one is having increasing returns to scale
• When an individual’s consumption decreases the wellbeing of others, but the individual does not compensate those others. It is the case of__________.
• What is the value of the balanced budget multiplier?
• In case of full Crowding out effect what is the shape of the LM curve
• In an economy, ceteris paribus, the value of imports decreased by Rs.100, what is the change in the value of output
• The relationship between the unemployment rate and the gross national product is depicted by
• The inverse demand function for a commodity is P = 50-2Q-Q2 . Calculate the consumer surplus when quantity demanded is 5 unts.
• When a straight-line demand curve is tangent to curvilinear demand curve then the elasticity of the curves at point of tangency is
• Consider the following Utility function U(x,y) = 4x+5y. The price of x and y are 5 and 6 respectively. The income of the consumer is 120. Calculate the max...
•   Consider the following demand curve Q=100-P in a Duopoly where in A firm is the leader and the B firm is the follower. The Marginal cost given as 20...
• A monopoly firm has the following demand and cost function Q = 50-P Total Cost = 20 + 2Q + 3Q2 Government imposes an excise tax @Rs.5 per unit. What is the...
•   The impossible trinity is a concept in international economics which states that it is impossible to have all three of the following at the same tim...