Test Preparation on UGC NET Economics Practice Set-7
1.
When the price-elasticity of demand is unity,the marginal revenue would be
2.
The total area under the demand curve of a good,measures
3.
If the price-consumption curve is horizontal, theprice-elasticity of demand of X (the price ofwhich falls) would be
4.
If two demand curves intersect, then at the pointof intersection
5.
The production function Y = LK is
6.
Assume a production function Y = L?K1?? (Y =output, L = labour and K = capital) for a firm in apurely competitive market. Which one of thefollowing would measure the share of labour inoutput?
7.
A supply curve will have a price-elasticity equalto 1 only when it is
8.
If two factors are perfect substitutes, theisoquant will be
9.
Under perfect competition (when input pricesare fixed and there are no external economics ordiseconomies), the industry supply curve isderived by
10.
Starting from a monopoly equilibrium withoutany policy intervention, market efficiency canbe improved by imposing a
11.
Application of the ?Marginal-cost pricing?principle in a decreasing cost industry wouldlead to
12.
In monopolistic competition, a firm is in longrunequilibrium
13.
If in a purely competitive market with downwardslopingdemand and upward-sloping supplycurves, a specific excise tax per unit of output isimposed, then
14.
Rent earned by a factor of production equals
15.
The Adding Up Theorem under constant returnsto scale holds when the factors of productionare paid according to their
16.
A given economic state is Pareto-optimal if apolicy change can
17.
The aggregate output is determined by theproduction function Q = K?L1??, where a = 0.40,K is capital and L is labour. Suppose, K and Lare growing respectively at the rate of 10% and20%, the growth-rate of aggregate output willequal
18.
When exchange rates are stable and a countryat full employment has a surplus balance ofpayments, it will result in a
19.
When income rise, the impact on the liquiditypreference curve is that
20.
Assertion (A): Transfer earnings are not to beincluded in the national income estimation.Reason (R): Transfer earnings are not paymentsfor factor services.
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