aud.ac.in MA Economics Entrance Question Paper Model : Ambedkar University

Name of the University : Ambedkar University
Degree : MA
Document Type : Sample Question Paper
Name of the Subject : Economics

Website : aud.ac.in
Download Sample Question Paper: https://www.pdfquestion.in/uploads/7597-MAEconomics.pdf

Economics Sample Question Paper :

Section A :
1. In the IS-LM model, an increase in the marginal propensity to consume would
(a) Make the IS curve steeper
(b) Make the IS curve flatter
(c) Leave the slope of the IS curve unchanged
(d) Have different consequences depending on the other parameters of the model

Related : Ambedkar University MA Psychology Entrance Question Paper Model : www.pdfquestion.in/7595.html

2. If an increase in the price of blue jeans leads to an increase in the demand for tennis shoes, then blue jeans and tennis shoes are
(a) Complements
(b) Substitutes
(c) Normal goods
(d) Inferior goods
(e) None of the above
3. The marginal rate of substitution measures the distance between one indifference curve and the next one.
(a) True
(b) False
4. Friedman’s theory of consumption is based on
a) Life Cycle Hypothesis
b) Past Income
c) Permanent Income
d) Real income
5. If it is observed that the long run marginal cost is below the long run average cost at a quantity Q, then Q is
(a) The long-run equilibrium quantity of the firm.
(b) Less than the long-run equilibrium quantity of the firm.
(c) More than the long-run equilibrium quantity of the firm.
(d) The long-run equilibrium quantity of the industry.
6. Under what conditions of duopoly, prices do not change when there are small changes in the overhead costs?
a) Cournot Solution
b) Kinked Demand Curve Solution
c) Stackelberg Solution
d) Market Shares Solution
7. The maximum value attained by the function x+4x+5 on the interval o to 3 is
(a) 1 (b) 2 (c) 4 (d) 5
8. There is a technological advance in the production of ice cream. As a result, the supply curve of ice cream shifts ________ and ________.
(a) leftward; both the equilibrium price and equilibrium quantity fall
(b) rightward; both the equilibrium price and equilibrium quantity rise
(c) rightward; both the equilibrium price and equilibrium quantity fall
(d) rightward; the equilibrium price falls while the equilibrium quantity increases
9. According to Rybczinski Theorem, an increase in labour supply in a country leads to
(a) Higher Unemployment
(b) Lower wages
(c) Decrease in production of labour-intensive goods
(d) Increase in production of labour-intensive goods
10. In Solow’s growth model, the capital-labour ratio in the steady state depends on
(a) Only the rate of growth of population.
(b) Only the growth rate of population and the production function.
(c) Only the growth rate of population and the proportion of income saved.
(d) Only the growth rate of population, the proportion of income saved and the production function
11. If A = 8x + 6, and x is increased by 2, what will be the corresponding increase in A?
(a) 2x (b) 8x (c) 2 (d) 16
12. Which of these is not an assumption of the Mundell-Fleming model?
(a) Domestic and foreign assets are perfect substitutes.
(b) Domestic prices are perfectly flexible.
(c) There are no restrictions on capital flows.
(d) The world interest rate is exogenously given.
13. A competitive firm has the following cost and revenue characteristics at its current level of output
Price=Rs.8, average variable cost=Rs.6, and average fixed cost =Rs.4. This firm is
(a) Making a loss of Rs.2 per unit and should shut down.
(b) Making zero economic profit.
(c) Making a profit of Rs.2 per unit and should expand.
(d) Making a loss of Rs.2 per unit, but should continue operating.
(e) Making a profit of Rs.2 per unit but should cut output.
14. The ‘inverted U’ Kuznets Curve hypothesizes the relationship between
(a) Income and Nutrition
(b) Economic Growth and Social Welfare
(c) Inequality and Poverty
(d) None of the above
16. In colonial India, the Permanent Settlement Act passed in 1793 was related to
a) Indigo exports b) Land revenues c) Remittances d) Agricultural debt
17. How many real roots does the equation x2+ 32 = 0 have?
(a) 0 (b) 1 (c) 2 (d) 3
18. For an ordinary good, the direction of Substitution Effect and Income Effect due to a price change are
(a) Opposite to each other
(b) Same for both
(c) Either of the above
(d) None of the above
19. The investment demand curve shifts rightward if
(a) The expected profit rate increases.
(b) The real interest rate falls.
(c) Savers increase their thriftiness.
(d) The economy moves into a recession.
20. The Quantity Theory of Money does not consider money to have a ‘store of value’.
a) True b) False
21. The Fiscal Responsibility and Budget Management (FRBM) Act stipulates that the fiscal deficit as a proportion of GDP should be restricted to
(a) 1 percent (b) 2 percent (c) 3 percent (d) 4 percent
22. International trade is based on the idea that
(a) Exports should exceed imports
(b) Imports should exceed exports
(c) Resources are more mobile internationally than are goods
(d) Resources are less mobile internationally than are goods
23. The Doha Development Round of the WTO negotiations, which started in 2001, was completed by
(a) 2003 at Cancun (b) 2005 at Paris (c) 2008 at Geneva (d) None of the above
24. A, B and C are planning to race against each other. A and B each are twice as likely as C to win the race. What is the probability of C winning the race?
(a) 1/6 (b) 1/5 (c) 1/4 (d) 1/3
25. The mean of a set of 10 numbers is 15. Another two numbers are included in the set and the new mean becomes 20. What is the mean of the two additional numbers?
(a) 5 (b) 9 (c) 24 (d) 45