Subject General Knowledge | |||
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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 ${D}_{1}$ to ${D}_{2}$ 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 |