Practice Research Questions and Answers

• What was the primary reason for the reduction in India's current account deficit from USD 67 billion in 2022-23 to USD 23.2 billion in 2023-24?
• Consider a firm with a production function Q=LαKβ operating in a perfectly competitive product market with price P. If the firm is a monopsonist in the l...
• Which labor market outcome is consistent with the Efficiency Wage Theory?
•  The Laffer Curve in a labor market context illustrates the relationship between:
• A monopolist sells its product in two separate markets with different price elasticities of demand. The marginal cost of production is constant at $20 per ...
• A company using first-degree price discrimination has a demand curve given by P=100−2Q. If the marginal cost of production is $10 per unit, what is the t...
• In a model with two goods, x & y, with x plotted on the horizontal axis, the price consumption curve generated by changing the price of x is parallel to th...
•   The equilibrium level of income is
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• Revealed preference theory assumes
• lumpsum tax is levied on the monopolist, the burden will be borne by
• Suppose after paying bills and setting aside some money for retirement, Joana has $130 left to spend on just two goods: concerts and books. For simplicity,...
• The 2nd phase (diminishing returns to a factor) is exhibited by the following total product sequence
• Which method is used by Hicks to eliminate the income effect when price of a product is changed           
• Which of the following statements is true      
• The substitution effect for a commodity is
• If positive income effect is less than the substitution effect: the product will be 
• Which is not a fixed cost?      
•  According to the Principle of Equal Marginal Sacrifice proposed by Hugh Dalton, an optimal income tax structure is one where:
• A country is running a Fiscal Deficit of $500 billion, and the government's interest payments on existing debt are $100 billion. If the country has nominal...
• The Benefit Principle of taxation is most closely associated with the financing of which of the following goods?
• The optimal quantity of the Public good to be produced is given by
• The subsidies that are trade distorting comes under which box of WTO?
•   Which of the following statement is/are true regarding classical theory of income and employment?        &...
• According to monetarists view, in the long-run, the Philips curve    
• The economic rationale for government provision of a Merit Good (e.g., education, healthcare) often rests on which concept?
• Which of the following statements accurately describes the concept of Tax Incidence when the supply curve for the taxed good is perfectly elastic (ES=∞)?...
• High powered money comprises
• According to the neoclassical growth model, which of the following statements is  false ?  
• From an economic efficiency perspective, what is the socially optimal level of pollution? State the fundamental condition (in terms of marginal cost and ma...
• Find National Income from the following                                                      Autonomou...
• According to the Romer model, if the stock of ideas increases by 15 %, how much will output per worker increase when all else is equal?          ...
• Which of the following tests use rank sums?
• If the marginal product function of quibs is positive from 0 to 25 units of quibs, and 0 for 25 units of quibs and above, the total product function of qui...
• A producer received ₹ 6,000 when the price of a commodity was ₹ 60 per unit. The receipts increased to ₹ 8,400 when the price increased by ₹ 10. Wh...
• In a situation when MRS>Px/Py, the consumer would react by:
• Suppose the wedding dress industry is a perfectly competitive constant cost industry. Suppose also that market demand for wedding dresses is described by Q...