Given arithmetic mean= 45, Mode=48 then median=---

 MCQS ON ECONOMICS

Chater-1 

A. Micro Economics

1. Principle of maximum social advantage is concerned with:

a. Public expenditure

b. Taxation only

c. Public debt 

d. Above a & b ✓

Ans: d

2. If marginal propensity to import is 0.1 and Marginal propensity to consume is 0.7, the value of income multiplier will be...

a.<1

b. >1✓

c.=0

d=1

Ans: 1/{=1-(MPI+MPC)}

From above question MPI=0.1, and MPC=0.7

1/{1-(0.1+0.7)}

1/1-0.8.                       

1/0.2

10/2

5      

 Ans: b. 

3. A toll tax is a tax based on which of the folowing:

a. Horizontal equality 

. The benifit principle✓

c. Vertical Equality

d. Tax progressively 

Ans: b 

4.which of the following factors is Not the cause for Market Failure

a. Public goods 

b. Externality 

c. Lack of  Demand ✓

d. Symmetric information 

Ans: c 

5. Liquidity approach is also known by the name:-

a. Gurley-Shaw approach

b. Radcliffe approach✓

c. Traditional approach

d. Monetarist approach 

Ans: b 

6. Cross Elasticity of complementary goods is:-

a. Infinite

b. Negative✓

c. Zero 

d. One 

Ans: b 

7. Which is an inverted U shaped curve?

a. AC 

b. TC 

c. MC ✓

d. FC 

Ans: c 

8. Rectangular hyperbola is the shape of 

a. TTC 

b. AFC ✓

c. MC 

d. FC 

Ans: b 

9.Given the saving function S= -20+0.2y and autonomous investment (I)= Rs. 100 million,  the equilibrium of level of consumption would be:

A. 500

B. 600✓

C.700 

D. 400

Explanation: at equilibrium level.  I= S 

100= -20+0.2y 

100+20= 0.2y 

120=0.2y

0.2y= 120

y= 120/0.2

y= 1200/2

y= 600 

Ans:B.

10. The value of the income multiplier K=4, find the consumption function? Ugc net-Dec.2019,paper-II,q.no.73

A. C= 100+05Y

B. C=50+0.8Y

C. C= 200+0.75Y

D. 50+0.4Y

Solution: K=1/1_MPC

4=1/1_MPC

4(1_MPC)=1

4_4MPC=1

4_1=4MPC

3=4MPC

4MPC=3

MPC=3/4

MPC=0.75

ANS:C 

11.If in a Harrodian economy, Ga= 10% and Gw= 8%, this will leads to:

A. Inflation

B. Unemployment

C. Deflation✓

D. Stagflation 

Ans: C

12. The Geometric mean of four numbers 2,X,16,32 is 8. What is the value of X?( Ugc net Dec_2015, paper-II, q.no.33)

A.2.               B.4. ✓             C. 6.            D.8

Solution: 4√2×16×X×32= 8

                  4√1024×X=8

                  1024×X=8×8×8×8

                  1024×X=4096

                   X= 4096/1024

                   X=4 

An

Q 13. In a Harrodian economy ICOR is 4.5:1, population growth is 2% per annum, and the investment rate is 27%. Hence the annual growth of per capita will be:

A. 2.5%

B. 9%

C . 6%

D. 4% ✓

Solution:

Growth rate per capita=( Investment Rate/ICOR)-Population growth

                                         =( 27/4.5)-2

                                         =( 270/45)-2

                                         = 6-2

                                         =  4%

Ans: D

14. Given arithmetic mean= 45, Mode=48 then median=-----

A. 46 ✓

B. 45

C. 48

D. 49

Solution: Formula= Mode= 3Median-2Mean

                                 = 3Median= Mode+2Mean

                                  According to given problem Mean is 45 and Mode is 48

                          So, 3Median= 48+2×45

                                                = 48+90

                                                = 138

                                  3Median=138

                                     Median=138/3

                                     Median=46

Ans: A