Subject General Knowledge
Direction: Choose the correct answer.
126. The number of imported automobiles in a year is an example of what type data?
(a) Nominal
(b) Qualitative
(c) Discrete
(d) Continuous
Ans. c
127. A binomial distribution may be approximated by a Poisson distribution (where n = number of trails and p = probability of success in each trail) if
(a) n is large and p is small
(b) n is small and p is large
(c) n is small and p is small
(d) (a) and (b) but not (c)
Ans. a
128. Scarcity is the imbalance between
(a) Demand and supply
(b) Limited resources and limited wants
(c) Limited resources and unlimited wants
(d) None of the above
Ans. c
129. In the oligopolistic market, firms sell
(a) Homogenous product
(b) Differentiated product
(c) Homogenous or differentiated product
(d) None of the above
Ans. c
130. The IMF Articles of Agreement encourages currency convertibility on
(a) Current account of the BOP
(b) Capital account of the BOP
(c) None of the above
(d) Both (a) and (b)
Ans. a
131. Supply side policy is related with the
(a) Supply side improvement on real output
(b) Supply side improvement on price level and real output
(c) Demand for real output
(d) Demand and supply of real output
Ans. a
132. Presence of Heteroscedasticity in a Classical Linear Regression Model indicates
(a) Disturbances appear in the population regression are Homoscedastic
(b) Variance for variables considered in the model are same
(c) Standard deviations for all variable of the model are different
(d) The error term of the model has unequal variance
Ans. c
133. Causes of Multicollinearity in an Econometric model is/are due to
(a) Improper use of dummy variable
(b) Presence of correlation among the explanatory variables
(c) Inclusion of less number explanatory variables
(d) Both a and b
Ans. b
134. Short run AC of firm is U shaped because the production process
(a) Follows law of diminishing marginal utility
(b) Follows law of diminishing marginal product
(c) Follows returns to scale
(d) Does not follow any law
Ans. b
135. Consumer surplus means
(a) Total price paid to purchase a basket of goods
(b) Difference between what consumer wants to pay and actual price
(c) What consumer wants to pay
(d) What consumer actually paid
Ans. b
136. For optimal macroeconomic effectiveness, monetary policy should be
(a) Independently applied
(b) Coordinated with fiscal policy
(c) coordinated with trade, fiscal and exchange rate policy
(d) All of the above
Ans. d
137. For the standard normal distribution, the z value gives the distribution, the z value gives the distance between
(a) The mean and a point in terms of the mean
(b) The mean and a point in terms of the standard deviation
(c) The mean and a point in terms of the variance
(d) The mean and a point in terms of the enter of the curve
Ans. d
138. 'Dumping' in international trade means
(a) Forcing other countries to buy a country's goods
(b) Charging a lower price for exported goods than the same goods sold domestically
(c) Charging a lower price for exported good than the same goods sold domestically
(d) Both (a) and (c)
Ans. b
139. The theory of "Purchasing Power Parity" holds that
(a) All countries price levels are equal, when measured in terms of the same currency
(b) Price levels are equal, ignoring transportation cost
(c) Both (a) and (b)
(d) None of the above
Ans. a
140. "Managed Floating" of the exchange rate allows a central bank to
(a) Control volatility of the exchange rate
(b) Control money supply but at the cost of greater exchange rate instability
(c) Both of the above
(d) None of the above
Ans. a
141. The Doha Round of multilateral trade negotiations could not yet achieve its goal because of
(a) Disagreements over agricultural subsidy issues
(b) Disagreements over tariff issues
(c) Refusal to negotiate
(d) None of the above
Ans. a
142. A discount bond
(a) Pays the bondholder the same amount every period until the maturity date
(b) At the maturity date pays the bondholder the face value of the bond plus an interest payment
(c) Pays the bondholder a fixed interest payment every period and repays the face value at the maturity date
(d) Pays the bondholder face value at the maturity date
Ans. a
143. What are appropriate value in the blank space
(a) 1, 2, 3
(b) 3, 2, 1
(c) 1, 3,1
(d) 2, 3, 1
Ans. a
144. Keeping other factors constant, total revenue of the producer from product from product X falls with the increase i price which suggest.
(a) The cross elasticity of demand for X with regard to Y is negative
(b) Income elasticity of demand for X is greater than 1
(c) Price elasticity of demand for X is greater than 1
(d) None of the above
Ans. c
145. The Isoquant curve is
(a) Concave to the origin
(b) Convex to the origin
(c) Straight line
(d) U shaped
Ans. b
146. Which of the following is not considered in calculating GDP?
(a) A grant to the poor student
(b) A shareholders dividend
(c) A doctor's fees
(d) A landlord's rent
Ans. a
147. Which of the following could not bring about a shift in the demand for commodity X from D1 to D2 as shown in the diagram?
(a) A successful advertising campaign to promote
(b) An increase in the real income of the population of the country
(c) A fall in the price of X
(d) An increase in the price of a close substitute for X
Ans. c
148. Which of the following countries is not a lank locked country?
(a) Bhutan
(b) Austria
(c) Nepal
(d) Afghanistan
(e) Denmark
Ans. e
149. Among the following who is/was not a winner of Nobel prize in literature?
(a) Tomas Transtroemer
(b) Georgo Bernard Shaw
(c) Pablo Neruda
(d) Bertrand Russell
(e) Leo Tolstoy
Ans. e
150. which one is incorrect?
(a) IMO : International Maritime Organization
(b) UNV : United Nations Volunteer
(c) UNC : United Nations University
(d) IFC : International Fiance Company
(e) UNDP : United Nations Development Program
Ans. d