Practice Research Questions and Answers

• The costs of inflation are?
• Longevity is proxy for ---- in the Human Development Index?
• In a small open economy with a floating exchange rate, the supply of real money balances is fixed and a rise in government spending ______
• According to the Mundell-Fleming model for a small open economy with flexible exchange rates, if the Federal Reserve cannot alter domestic interest rates, ...
• According to the Taylor principle, for inflation to be stable, the central bank must respond to an increase in inflation with ____ increase in the nominal...
• Which of the following is not correct?
• The value of expenditure multiplier when marginal propensity to save is 0.4 is 
• Consider an economy described by the following equations:  C = 100 + 0.6 ∗ (Y − T) (consumption function)  I = 200 − 1000 ∗ r (investment funct...
• Based on the IS curve and LM curve you have derived in Q36 and Q37, what is the equilibrium income?
• Based on the IS curve and LM curve you have derived in Q36 and Q37, what is the equilibrium interest rate? 
• A decrease in the tax to GDP ratio indicates which of the following: Slowing economic growth rate Less equitable distribution of national income S...
• Calculate Operating Surplus: Items Rs in crore Compensation of employees 2000 Rent and interest 800 Indirect taxes 120 Corporation Tax 460 Consumption ...
• The correlation coefficient between X and -X is:
• The arithmetic mean of the two regression coefficients is greater than or equal to: 
• When two regression coefficients bear same algebraic signs, then correlation coefficient is:
• Which of the following could be a remedy for Multicollinearity Problem?
• In classical linear regression model if we add in 90 in X and Y observation and re-estimate the regression model then slope coefficient
• In a frequency distribution the last cumulative frequency is 500. Q3 must lie in?
• Type II error occurs when
• If coefficient of correlation rxy= 1, then
• The credit manager at a Departmental store collects data on 100 of her customers. Of the 60 men, 40 have credit cards (C). Of the 40 women, 30 have credit ...
• The credit manager at a Departmental store collects data on 100 of her customers. Of the 60 men, 40 have credit cards (C). Of the 40 women, 30 have credit ...
• An oil exploration company intends to drill an exploratory well in each of two geologically unrelated regions A and B. If the probability of finding oil in...
• Two mutually exclusive events
• A researcher has to consult a recently published book. The probability of it being available is 0.5 for library A and 0.7 for library B. Assuming the two e...
• If it rains a dealer in raincoats can earn Rs. 400 per day. If it is a fair day he loses Rs. 80 per day. What is his expectation if the probability of a fa...
• The last period’s forecast was 70 and demand was 60. What is the simple exponential smoothing forecast with alpha of 0.4 for the next period? ...
• Let X and Y represent prices in Rs of a commodity in Kolkata and Mumbai respectively. It is given X(bar) = 65, Y(bar) = 67, standard deviation of X = 2.5, ...
• If X(bar) = 25, Y(bar) = 120, bxy = 2. Find the value of X when Y=130?
• Which of the following is not an example of market failure?
• What will happen when supply elasticity is less than demand elasticity? 
• For a monopoly firm, which of the following equalities is always true? 
• For any given price, a firm in a competitive market will maximize profit by selecting the level of output at which price intersects the
• Employing a lawyer to draft and enforce a private contract between parties wishing to solve an externality problem is an example of a(n) ______________cost
• The government provides public goods because