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Latest ICAR Agriculture Economics Exam Question (Objective Questions), MCQ in English
Subjects : Agriculture Economics
Question Bank ICAR AIEEA Agriculture Economics Exam - English
Agriculture Economics
Q 1 :
What is the difference between stock and supply
A.Stock is a flow concept whereas supply is no
B.Supply is a flow concept and stock is not a flow.com
C.Both supply and stock are flow concepts
D.None of the above
Q 2 :
What is the shape of supply curve
A.Convex to x axis or upward sloping
B.Downward sloping
C.Concave
D.Can be any of the
Q 3 :
What is the relation between individual and market supply curve
A.Market supply curve is the horizontal summation of individual supply curve
B.Market demand curve is the vertical summation of individual supply curve
C.Individual supply curve is the horizontal summation of market demand curve
D.Individual supply curve is the vertical summation of market demand curve
Q 4 :
Contraction and extension of supply means
A.Increase in supply due to increased price and decrease in supply due
decreased price
B.Decrease in supply due to increased price increase in supply due to decreased
price
C.Both a and b
D.None of the above
Q 5 :
More supply at same price and same supply at lower price means
A.Increased supply
B.Decreased supply
C.Constant supply
D.None of the above
Q 6 :
Decrease in supply means
A.Less supply at same price and same supply at higher price
B.Higher supply at same price and same supply at decreased price
C.Both a and b
D.None of the above
Q 7 :
Elasticity of supply is given by
A.% A quantity supplied / %A in demand
B.% A quantity demanded / % A in supply
C.% 4 in supply / % 4 in price
D.None of the above
Q 8 :
Pick the incorrect one out in terms of (es= elasticity of supply)
A) Perfectly inelastic - es = 0
B) Perfectly elastic - es = 0
C) Inelastic - es <1
D) Elastic - es = 1
E) Unitary elastic - es = 1
A.Only A
B.Only B
C.Only C
D.None of the above
Q 9 :
Market is in equilibrium when
A.Quantity demanded = quantity supplied
B.Quantity demanded > quantity supplied
C.Quantity demanded < quantity supplied
D.All of the above
Q 10 :
Which one of the following is not correctly matched
A.Surplus when quantity supplied > quantity demanded
B.Deficit when quantity supplied < quantity demanded
C.Elastic supply curve has elasticity > 1
D.None of the above
Q 11 :
Supply curve shift towards right side if
A.Prices are expected to increase in future
B.Prices are expected to decrease in future
C.Prices of relative products decrease
D.All of the above
Q 12 :
Reduction in input prices leads to
A.Increase in supply
B.Decrease in supply
C.Constant supply
D.Can be any of the above
Q 13 :
Shift in supply curve can also be written as
A.Increase or decrease in supply
B.Extension or contraction of supply
C.Increase or decrease in supply due to factors other
D.Both a and c
Q 14 :
Cardinal utility analysis was given by
A.Alfred Marshall
B.Adam Smith
C.Lionel Robbins
D.None of the above
Q 15 :
Cardinal utility analysis comprises of
A.Law of diminishing marginal utility or law of life
B.Law of equi marginal utility
C.Indifference curve approach
D.Both a and b
Q 16 :
Law of life states
A.Marginal utility of a product decreases when the consumer has more and more of it
B.Each successive unit of a commodity brings in lesser and lesser utility
C.Both a and b
D.None of the above
Q 17 :
Which among the following are the assumptions of law of life
A.Cardinal measurability of utility meaning utility can be quantified an
Introspective method
B.Utilities are independent and marginal utility of money is constant
C.Both a and b
D.None of the above
Q 18 :
Total utility is
A.Sum of marginal utilities
B.Maximum when marginal utility is zero
C.Summation of satisfaction gained from consuming various units
D.All of the above
Q 19 :
Marginal utility and price is
A.Directly related
B.Inversely related
C.Unrelated
D.Both a and b
Q 20 :
Area under marginal utility curve represents
A.Total utility
B.Total disutility
C.Average utility
D.None of the above
Q 21 :
Condition for equilibrium under diminishing marginal utility
A.Total utility maximum and marginal utility is zero
B.Total utility zero and marginal utility maximum
C.Both total and marginal utility is maximum
D.Both total and marginal utility zero
Q 22 :
Law of equi marginal utility is also called as
A.Principle of proportion and law of maximum satisfaction
B.Law of opportunity cost and law of substitution and Gossen's second law
C.Both a and b
D.None of the above
Q 23 :
Which among the following is not correctly matched
A) Limited resource -law of equi marginal utility
B) Unlimited or given resource -law of diminishing marginal utility
C) Utility - measured in terms of degrees
D) Utility -measured in terms of utils
A.Both A and C
B.Both B and D
C.Only C
D.Only D
Q 24 :
Equilibrium under many commodities and same price for law of equi marginal utility is given by
A.Marginal utility of last unit consumed is nearly equal to first
B.Marginal utility of last unit consumed is exactly equal to first
C.Marginal utility of last unit consumed is greater than first
D.None of the above
Q 25 :
Equilibrium under two or more than two commodities under law of substitution is given by
A.MUx/Px= MUY/PY
B.MUX/Py= MUY/Px
C.MUX/Px= MUY.Py
D.MUX.Px= MUY/Py
Q 26 :
Concept of consumer surplus was given by
A.Alfred Marshall
B.Adam Smith
C.Samuelson
D.Walker
Q 27 :
Consumer surplus is defined as
A.Difference between price a consumer pays and th
B.Difference between the actual price and what the
C.Difference between the price a consumer is willing pays
D.None of the above
Q 28 :
Consumer surplus is
A.Inversely proportional to price
B.Directly proportional to price
C.Not related to price
D.None of the above
Q 29 :
Consumer surplus can be stated as
A.Marginal utility - market price (for a unit of commodity)
B.Total utility - total amount spent
C.Value in use - value in exchange
D.All of the above
Q 30 :
J R Hicks and Allen gave
A.Indifference curve technique
B.Law of diminishing marginal utility
C.Law of equi marginal utility
D.All of the above
Q 31 :
Ordinal utility means
A.Utility can be measured
B.Utility cannot be measured
C.Utilities can be ranked
D.Both b and c
Q 32 :
Which of the following is the assumption of indifference curve approach
A.Consistency - if in a condition A, person chooses X over Y, he will not choose y over X in other condition
B.Transitivity - A is preferred to B and B is preferred to C then A is preferred to
C.Non satiation - more of a good is always preferred to less
D.All of the above
Q 33 :
Assumption of convexity in indifference curve means
A.Consumer prefers to have exclusively one good rather than two
B.Consumer prefers to have some amount of both goods rather than one goou only
C.Consumer is never satisfied
D.Consumer is always satisfied with whatever he has
Q 34 :
Indifference map is
A.Family of indifference curve
B.Another name of indifference curve
C.Expression of scale of preferences
D.Both a and c
Q 35 :
Indifference curve is
A.Convex shaped
B.Concave shape
C.Straight line sloping downward
D.Straight line sloping upwards
Q 36 :
Higher indifference curve means
A.Higher satisfaction
B.No satisfaction
C.Same satisfaction
D.Lower satisfaction
Q 37 :
Marginal rate of substitution between good X and Y is stated as
A.Amount of good Y a person is ready to let go to gain one unit of good X
B.Amount of good X a person is ready to let go to gain one unit of good Y
C.Amount of good X demanded to let go of a unit of good Y
D.None of the above
Q 38 :
Diminishing marginal rate of substitution between good X and Y means
A.A person is ready to let go less and less of Y as he has more and more of good
B.Decreasing value of slope of indifference curve
C.Both a and b
D.None of the above
Q 39 :
Slope of indifference curve is
A.Marginal rate of substitution (MRS)
B.Total utility (TU)
C.Marginal rate of complementarity (MRC)
D.Marginal rate of utility (MRU)
Q 40 :
A line that shows all possible combinations of two goods that can be bought with the given amount of income is called as
A.Isocost line
B.Iso revenue line
C.Budget line
D.None of the above
Q 41 :
Budget line is also called as
A.Price line
B.Outlay or expenditure line
C.Budget constraint
D.All of the above
Q 42 :
Indifference curves
A.Never intersect
B.Can intersect
C.Touch either of the axis
D.None of the above
Q 43 :
Equilibrium equation under indifference curve method is given by (for two goods X and Y, p = price)
A.MRSxy = Px/Py
B.AY/AX = Px/Py
C.MRSxy = Py/Px
D.Both a and b
Q 44 :
Conditions of equilibrium under indifference curve are
A.First order condition - MRS = inverse price ratio
B.Second order condition - MRS should be decreasing at the point of equilibrium
C.Third order condition - Indifference curves intersect x axis at point of equilibrium
D.Both a and b
Q 45 :
Which of the following is incorrect regarding Indifference curves
A.Normal goods - convex
B.Perfect substitutes - download sloping straight line
C.Perfect complements - L shaped
D.None of the above
Q 46 :
With nominal income fixed, what happens to real income when prices fall, it!
A.Increases
B.Decreases
C.Remains constant
D.Becomes zero
Q 47 :
Formula for real income is given by
A.Nominal income/quantity demanded
B.Nominal income/price index
C.Nominal income x price index
D.Price index/nominal income
Q 48 :
Change in quantity demanded due to change in price, with nominal income constant is called as
A.Substitution effect
B.Price effect
C.Income effect
D.None of the above
Q 49 :
Substitution effect is described as
A.Change in quantity demanded due to change in own price
B.Change in quantity demanded to change in relative price
C.Change in quantity demanded due to change in income
D.Both a and c
Q 50 :
Price effect is equal to
A.Income effect - substitution effect
B.Income effect + substitution effect
C.Income effect / substitution effect
D.Income effect x substitution
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Change in quantity demanded to due to change in real income is called as
A.Price effect
B.Income effect
C.Substitution effect
D.None of the above
Q 53 :
Under Hicksian substitution effect
A.Consumers utility level remains unchanged
B.Consumers purchasing power remains unchanged
C.Substitution happens over the same indifference curve
D.Both a and c
Q 54 :
Under Slutsky substitution effect
A.Substitution happens over different indifference curve
B.Consumers purchasing power/real income remains unchanged
C.Consumers utility level remains unchanged
D.Both a and b
Q 55 :
Compensating variation in income is
A.That variation in income which keeps the consumer at same level of satisfaction
as he was before change in price
B.That variation in income which keeps the consumer at final level of satisfaction
where he had reached due to change in price
C.That variation in income which keeps consumers
D.None of the above
Q 56 :
That variation in income which keeps consumers real income unch
Equivalent variation in income is
A.That variation in income which keeps the con as he was before change in price
b.That variation in income which keeps the consumer at final level
B.where he had reached due to change in price of both goods
C.That variation in income which leads the consumer at same level of
where he would have been due to change in relative prices of one
D.None of the above
Q 57 :
Cost difference is represented as (A = change)
A.A quantity demanded x A price
B.A price x quantity demanded before price change
C.A price x quantity demanded after price change
D.None of the above
Q 58 :
Income effect is
A.Positive for luxury
B.Positive for normal goods
C.Negative for inferior goods
D.All of the above
Q 59 :
As the income of family increases the proportion of income spent on necessities falls
and that on luxury increases, this statement is given under which law
A.Engel's law of family expenditure
B.Engel's law of family income
C.Both a and b
D.None of the above
Q 60 :
Which statement regarding Engel's curve is incorrect
A) Necessities or normal goods -upward sloping or convex
B) Luxuries -upward sloping or concave
C) Inferior goods -backward bending
D) Neutral goods -parallel to y axis
A.Only A
B.Only B
C.Only D
D.None of the above
Q 61 :
Neutral goods are goods whose quantity demanded
A.Increases with increase in income
B.Remains the same irrespective of change in income
C.Varies inversely with income
D.None of the above
Q 62 :
Engel's expenditure curve states the relationship between
A.Income and quantity demanded
B.Income and quantity supplied
C.Income on x axis expenditure on commodities on y axis
D.Income on y-axis expenditure on commodity on x axis
Q 63 :
Giffen goods have
A.Upward sloping demand curve
B.Downward sloping demand curve
C.Demand curve horizontal
D.Backward bending demand curve
Q 64 :
The goods whose consumption increases with the increase in price are
A.Normal goods
B.Giffen/inferior goods
C.Luxury goods
D.None of the above
Q 65 :
Which statement regarding inferior goods are correct
A.Giffen goods are special inferior goods
B.Demand falls when income rises
C.Substitution effect is greater than income effect
D.All of the above
Q 66 :
Pick the odd one out (C = cross elasticity of demand)
A.Independent goods - C = 0
B.Substitute goods - C = positive
C.Complementary goods - Cod = negative
D.Normal goods - Ced=0
Q 67 :
For giffen goods income effect is
A.Less than substitution effect
B.Equal to substitution effect
C.Larger than substitution effect
D.Can take any value
Q 68 :
For inferior goods income effect is
A.Less than substitution effect
B.Equal to substitution effect
C.Larger than substitution effect
D.None of the above
Q 69 :
Income effect is negative for which goods
A.Inferior goods
B.Giffen goods
C.Normal goods
D.Both a and b
Q 70 :
If increase in price of one good leads to increase in quantity demanded of the other good and vice versa the goods in question are
A.Complementary goods
B.Supplementary good
C.Substitute goods
D.Normal goods
Q 71 :
If increase in price of one good leads to decreas in quantity of the other good then the goods in question are
A.Complementary goods
B.Supplementary goods
C.Substitute goods
D.Normal goods
Q 72 :
Revealed preference theory of demand was given by
A.JR Hicks
B.Paul Samuelson
C.Alfred Marshall
D.Adam Smith
Q 73 :
Revealed preference theory of demand is based on
A.Weak ordering
B.Strong ordering
C.Moderate ordering
D.None of the above
Q 74 :
Revealed preference theory is also known as
A.Behaviouristic theory
B.Deterministic theory
C.Probabilistic theory
D.None of the above
Q 75 :
Ordinal utility analysis is superior to cardinal utility analysis because of
A.Constant marginal utility of money assumed in ordinal utility analysis
B.Independent utilities assumed in ordinal utility analysis
C.Constant marginal utility of money assumed in cardinal utility analysis
D.Both b and c
Q 76 :
Choice reveals preference was given by
A.Alfred Marshall
B.Paul Krugman
C.Paul Samuelson
D.Adam Smith
Q 77 :
Income elasticity of demand is/are
A.Positive for normal goods
B.Negative for inferior goods
C.Zero for complementary goods d. Both a and b
D.Both a and b
Q 78 :
Income consumption curve
A.Locus of maximum satisfaction level combinations for different levels of income
B.Locus of maximum satisfaction level combinations for different lev
investment
C.Locus of maximum satisfaction level combinations for different levers
levels of saving
D.None of the above
Q 79 :
Price consumption curve
A.Depicts change in quantity demanded of a good due to change in its price
B.Tracks the various quantities demanded of a good when relative price of a good
changes
C.The locus of different equilibrium points depicting optimal consumption when slope of price line changes due to change in relative price
D.Both b and c
Q 80 :
Which statement regarding price consumption curve is incorrect
A.ed > 1 - Downward sloping
B.ed < 1 - Upward sloping
C.ed = 1 - Horizontal
D.Giffen goods - upward sloping
Q 81 :
Logical ordering theory of demand was given by
A.Paul Samuelson
B.Paul Krugman
C.Adam Smith
D.J R Hicks
Q 82 :
Indifference curve of goods and bads is of which shape (goods on y axis and bads on x-axis)
A.Convex to x-axis
B.Upward sloping
C.Downward sloping
D.Both a and b
Q 83 :
Point of maximum satisfaction is called as
A.Point of satiation
B.Point of bliss
C.Both a and b
D.None of the above
Q 84 :
Cost function states relationship between
A.Input and output
B.Input and cost
C.Cost and output
D.None of the above
Q 85 :
Economics profit =
A.Total revenue- total accounting cost
B.Total revenue- total economic cost
C.Gross revenue - total economic cost
D.Grass revenue - total accounting cost
Q 86 :
Accounting cost are
A.Explicit cost - implicit cost
B.Explicit cost + implicit cost
C.Payments made by entrepreneur to the supplier for input purchased or hired
D.Both b and c
Q 87 :
Economic cost is equal to
A.Accounting cost - implicit cost
B.Accounting or explicit cost + implicit cost
C.Only implicit cost
D.None of the above
Q 88 :
The cost of owned resources employed in production is called as
A.Explicit cost
B.Fixed cost
C.Accounting cost
D.Economic cost
Q 89 :
Value of next best alternative good that can be reduced with same value (note exactly same factors) of factors
A.Social cost
B.Private cost ho
C.Opportunity cost
D.Long run costs
Q 90 :
Private cost is equal to
A.Social costs
B.Cost of production borne by the producer
C.Long run costs
D.Short run cost
Q 91 :
Social cost are
A.Cost of production borne by the society
B.Private cost
C.Private cost + Net of negative externalities over positive externalities
D.None of the above
Q 92 :
Pick the incorrect one out
A.Average fixed cost = total fixed cost/output
B.Average variable cost = total variable cost /output
C.Total fixed cost curve is horizontal to x axis
D.None of the above
Q 93 :
Which one of the following is incorrect
A.Fixed cost - overhead cost
B.Variable cost - prime or direct cost
C.Average fixed cost curve is not a rectangular hyperbola
D.Average variable cost first decline reaches minimum and then rises sharply due to decreasing returns
Q 94 :
Shape of average variable cost curve is
A.Marginal product curve turned upside down
B.Marginal cost curve turned upside down
C.U shaped
D.None of the above
Q 95 :
Shape of marginal cost curve is
A.Average cost curve turned upside down
B.Marginal product curve turned upside down
C.Average product curve turned upside down
D.Can take any shape
Q 96 :
Average cost curve and average variable cost curve is intersected at the minimum points by
A.Fixed cost curve
B.Total cost curve
C.Economic cost curve
D.Marginal cost curve
Q 97 :
Which of the following is correctly stated (MC - Marginal cost, AC - average cost, AVC - average variable cost)
A.AC curve rises when MC is greater than AC
B.AC curve falls when AC is greater than MC
C.MC = slope of AVC + AVC
D.All of the above
Q 98 :
Least possible average cost of production for any given level of output in long term is called as
A. Long run total cost
B.Long run fixed cost
C.Long run opportunity cost
D.Long run average cost
Q 99 :
Shape of long run average cost curve is
A.Convex
B.Concave
C.Straight line
D.Saucer or U shaped
Q 100 :
Economies of scale lead to (LAC- Long run average cost)
A.Rising LAC
B.Stagnant LAC
C.Falling LAC
D.None of the above
Q 101 :
Diseconomies of scale leads to
A.Rising LAC
B.Stagnant LAC
C.Falling LAC
D.None of the above
Q 102 :
Firm that produces optimum output at minimum point of LAC is called
A.Economic firm
B.Optinium firm
C.Efficient firm
D.None of the above
Q 103 :
Slope of total cost curve gives
A.Marginal cost
B.Average cost
C.Opportunity cost
D.Optimum cost
Q 104 :
Long run marginal cost (LRMC) curve cuts long run average cost (LAC) curve at
A.Falling section
B.Rising section
C.Minimum point
D.Does not intersect
Q 105 :
Kenneth J arrow propounded which concept
A.External economies and diseconomies of scale
B.Saucer shaped LAC curve
C.Learning curve
D.None of the above
Q 106 :
Cost per unit of output decreases as cumulative output increases, the statement was given under
A.Learning curve
B.External economies
C.External diseconomies
D.Internal economies
Q 107 :
Which among the following is not correct
A) External economies and diseconomies accrue to a firm due to increase in output of whole industry
B) Internal economies and diseconomies accrue to a firm when its own output changes
C) Long run average cost curve shifts downward due to external diseconomies
D) Long run average cost curve shift upward due to external economies
A.A and B
B.Only B
C.B and C
D.Both C and D
Q 108 :
Shape of learning curve is
A.Upward sloping
B.Downward sloping
C.Horizontal
D.None of the above
Q 109 :
Various types of inputs that are utilised production of different goods and services are collectively known as
A.Factors of construction
B.Factors of production
C.Factor loadings
D.Factors of consumption
Q 110 :
The four important factors of production
A.Land, labour, capital, organisation
B.Land, labour, savings, income
C.Labour, savings, income, organisation
D.Income, capital, organization, services
Q 111 :
Two original factors of production
A.Land and Labour
B.Capital and Organisation
C.Labour and Organisation
D.Land and Organisation
Q 112 :
The term land includes
A.Only land
B.Land and water
C.All the materials that nature provides to man for free
D.None of the above
Q 113 :
Which among the following is incorrect
A.Supply of land is inelastic at firm level
B.Supply of land is inelastic at economy level
C.Supply of land is elastic at firm level
D.Both b and c
Q 114 :
Which of the statements mentioned below is false
A) Goldsmith, blacksmith - complex division of labour
B) Goldsmith and blacksmith - simple division of labour
C) Handloom industry in Panipat, Haryana - territorial division of labour
D) Whole production process is divided into different tasks and one man for each
task - complex division of labour
A.All of the above
B.A and B
C.B and C
D.Only A
Q 115 :
Demand for labour is
A.Direct demand
B.Indirect demand
C.Derived demand
D.Market demand
Q 116 :
The wages of labour and their supply are
A.Directly related
B.Not related
C.Indirectly related
D.Can be any of the above
Q 117 :
The value of output added to the total production due to employment of me unit of labour is called as
A.Value of marginal product VMP
B.Marginal revenue product MRP
C.Marginal physical product MPP
D.Average physical product APP
Q 118 :
Value of marginal product of labour is equal to
A.MPP x Price
B.MPP X Revenue
C.MPP X MR
D.None of the above
Q 119 :
Marginal revenue product (MRP) of labour is described as
A.MPP x Price
B.MPP x MR
C.Addition to revenue of the company due to the marginal product added to its output by employment of one more unit of labour
D.Both b and c
Q 120 :
Capital is crystallized labour, this definition of capital was given by
A.Kenneth J arrow
B.Hugo Stiglitz
C.Karl Marx
D.John Maynard Keynes
Q 121 :
Which of the following is not a type of capital
A.Physical - land, buildings
B.Financial - money, bonds, securities
C.Both a and b
D.None of the above
Q 122 :
Capital formation is
A.Production of machinery equipments for the purpose of further production process
B.Creation of money
C.Creation of savings by reducing consumption
D.None of the above
Q 123 :
The three stages of capital formation in proper order are
A.Investment of savings, mobilisation of savings, increase in savings
B.Increase in savings, investment of savings, mobilisation of savings
C.Increase in consumption, reduction in savings, creation of capital
D.Increase in savings, mobilisation of savings, investment of savings
Q 124 :
Which among the following is incorrectly matched
A) Actively involved member of the partnership - Sleeping partner
B) Member of the partnership who is just there for the sake of name – nominal partner
C) Equally shares profits and losses but not involved in decision making – sleeping partner
D) Name is not disclosed but inactive member of the partnership - secret partner
A.Only A
B.Both B and C
C.Both A and D
D.Only D
Q 125 :
Joint stock companies are
A.Only public
B.Only private
C.Both public and private
D.Another name of cooperatives
Q 126 :
If a company goes bankrupt the, partners are equally responsible for paying the debt! which can be more than their respective shares, this kind of liability is called as
A.Unlimited liability
B.Limited liability
C.Quasi limited liability
D.Non liability
Q 127 :
If a company goes bankrupt the shareholders for partners are only responsible for paying debt equal to the extent of their shares only, this type of liability is called
A.Unlimited liability
B.Semi liability
C.General liability
D.Limited liability
Q 128 :
Unlimited liability is a characteristic of
A.Joint stock company
B.Sole proprietorship
C.Sole proprietorship and partnership
D.Only b
Q 129 :
Limited liability is a characteristic of
A.Joint stock company
B.Partnership
C.Sole proprietorship
D.None of the above
Q 130 :
Which of the following is not synonymous with national income
A.National Product
B.National expenditure
C.National Savings
D.None of the above
Q 131 :
Which of the following is not correctly matched ?
A.National product - sum of values of all final goods and services produce an year
B.National Income - sum of all incomes accruing to factors of production
rent to land, wages to labour, profit to entrepreneur and interest to
in an year
C.National expenditure - sum of consumption expenditure + po
expenditure + net investment expenditure + net exports
D.None of the above
Q 132 :
In a two sector (consumer household and business firm) closed economy with government intervention, with saving and investment, the condition for const-of circular flow of money is
A.Savings > investment
B.Saving < investment
C.Saving = investment
D.Saving = consumption expenditure
Q 133 :
The proof for constancy of circular flow of money in a two sector economy with! saving and investment is given by
A.Value of output produced (national income) = value of output sold
(consumption or investment expenditure)
B.National income (consumed + saved) = national expenditure (consumption + investment expenditure)
C.Both a and b mean the same
D.None of the above
Q 134 :
In a three sector economy, condition for constancy of flow of money is given by
A.National expenditure = national income
B.Consumption (C) + investment (0) + government expenditure (consumption (C) + saving (S) + taxes (T)
C.G-T = S-1
D.All of the above
Q 135 :
In a four sector economy (Y = C+I+G+ NX) net export (NX) is equal to
A.Net export (NX) = national savings (Y-C-G) - investment (1)
B.Net export (NX) = national savings (Y-C-G) + investment
C.Net export (NX) + investment (1) = national savings (Y-C-G)
D.None of the above
Q 136 :
In a four sector economy (Y = C+I+G+ NX) which of the relationship between trade balance NX ((export (X) - import (M)) and foreign capital flows is incorrect
A.NX positive = national savings > investment= surplus money
borrow i.e. net capital outflow
B.NX positive = national savings < investment = surplus money
lend i.e. net capital inflow
C.NX negative = national savings < investment = deficit = borrow from
i.e. net capital inflow
D.Both a and b
Q 137 :
Which sector is added to three sector model of closed economy to form a four sector model i.e. Open Economy
A.Financial market
B.Foreign countries market
C.Government
D.Households
Q 138 :
GDP (Gross Domestic Product) at market price is
A.Total value of all final goods and services produced in an year within the domestic Territory of a country by the normal residents of the country
