Classical

December 2014 - Paper 2

1:  
In the market-oriented system, for the allocation of resources which one of the following is the most appropriate conveyor of information ?
A.

Finance Ministry

B.

Central Bank

C.

Market Price

D.

Advertisement Expenditure

 
 

Option: A

Explanation :

Click on Discuss to view users comments.

v s m srinivas said: (2:47am on Wednesday 27th May 2015)
i didnot understand why it is option a can u explain

Write your comments here:



2:  
A company supplies 20 units of a particular product per month, at a price of Rs. 10 per unit. If price elasticity of supply is 5, how many units would the company supply at a price of Rs.15?
A.

50

B.

70

C.

40

D.

5

 
 

Option: B

Explanation :

Click on Discuss to view users comments.

Rhythm said: (9:59pm on Friday 13th February 2015)
whats the formula to calculate price elasticity of supply??
archana said: (6:29am on Saturday 2nd May 2015)
kindly explain the answer in detail with calculation.
Asha S said: (1:53am on Wednesday 6th July 2016)
e=Change in qnty/change in price*PRice/Qnty5=x-20/5*10/20
jagannath said: (10:35am on Saturday 2nd September 2017)
5=Q2-20/15-10 *10/205=Q2-20/10Q2=70

Write your comments here:



3:  

Which characteristic is not likely to be a part of perfect competition?

A.

Absence of interdepence

B.

Deadweight loss is non-existent

C.

Strong rivalry

D.

Absence of advertisement

 
 

Option: D

Explanation :

Click on Discuss to view users comments.

Write your comments here:



4:  
Match the items given in List - I and List - II by considering which of the following are macroeconomic issues and which are microeconomic ones :

List – I

List - II

a. The level of government revenue

i. Microeconomic

b. The rate of inflation

ii. Macroeconomic

c. The price of  T. V. set

 

d. The amount saved last year by households

 

 

 

A.

 a   b    c    d

 ii    i     i     ii

B.

 a   b    c    d

 ii    i     ii     i

C.

 a   b    c    d

  i    ii    ii     ii

D.

 a   b    c    d

 ii    ii     i     ii

 
 

Option: D

Explanation :

Click on Discuss to view users comments.

Write your comments here:



5:  
In the recent years, world economy has witnessed the influence. of unconventional monetary policy ofthe U.S.A. This policy stance is known as
A.

Bank rate

B.

Taylor rule

C.

Reserve requirement

D.

Quantitative easing

 
 

Option: D

Explanation :

Click on Discuss to view users comments.

Write your comments here:





Suggest an improvement