C:-Increase in the money supply
D:-Increase in the public borrowings
Correct Answer:- Option-C
Question47:-The basic proposition of the psychological law of consumption is that
A:-APC and MPC are equal
B:-APC is negative
C:-MPC is positive but less than unity
D:-MPC is always equal to one
Correct Answer:- Option-C
Question48:-The relationship between unemployment and the rate of change in the wage rate, according to A. W. Phillips is
A:-Inverse and non-linear
B:-Direct and proportional
:-Direct but non proportional
D:-Inverse but linear
Correct Answer:- Option-A
Question49:-The expansion and contraction process in the business cycle model of Kaldaor is brought about by the
A:-Interaction between multiplier and accelerator
B:-Business expectations
C:-Stock of capital
D:-Technological shocks
Correct Answer:- Option-C
Question50:-Monetarism postulates that
A:-Money is a substitute for a wide range of real and financial assets but no single asset is a close substitute for money
-A fiscal-monetary mix will bring about stabilities
-Fiscal policy is more effective in curbing inflation and generating full employment
D:-Money is neutral and insignificant
Correct Answer:- Option-A
Question51:-The theory of vicious circle deals with
A:-Full employment
-Imperfect markets
C:-Poverty
D:-Inequality
Correct Answer:- Option-C
Question52:-The marginal productivity of labour under the state of disguised unemployment is
A:-Equal to one
-Equal to zero
C:-Greater than one
D:-Equal or greater than one
Correct Answer:- Option-B
Question53:-The theory of Economic development with unlimited supplies of labour argues for
A:-Promotion of DPA and SOC in the economy to absorb excess labour
B:-Improvement of agriculture to provide more employment
C:-Unlimited supply of labour at the current market wage
D:-Shifting of labour with zero marginal productivity from agriculture to industry
Correct Answer:- Option-D

Question54:-The technique which provides numerical solution to the problem of making optimum in the context of given
constraints

A:-Linear programming
B:-Shadow pricing
C:-The incremental capital-output ratio
D:-Choice of technique
Correct Answer:- Option-A
Question55:-The book ‘Asian Drama’ has been written by
A:-Gunar Myrdal
B:-C. P. Kindleberger
C:-A. P. Thrilwall
D:-Ragnar Nurkse
Correct Answer:- Option-A
Question56:-In the model of Golden Age, equilibrium is attained when