19.

20.

21.

22.

The contradictory and inconsistent results of Kaldor-Hicks criterion in welfare economics was
firstly pointed out by:

(A) William J Baumol (2) J.R. Hicks
(C) K.J. Arrow (D) Scitovsky

Which are the features of the Bergson-Samuelson social welfare function?

0) It is based on explicit value judgement and involves interpersonal comparisons of utility
in cardinal terms

(i) It enables us to find a unique optimum solution (when used along with Pareto
Optimality analysis) which combines economic efficiency with distributive justice.

(iii) The maximization technique is used to obtain the maximum social welfare function at
which allocation of resources is Pareto optimum.

(iv) It is based on explicit value judgements and involves interpersonal comparisons of
utility in ordinal terms.
(A) Only (i), (ii), (iii) (B) Only 6, (0, (1)
(C) Only (ii), (ii) and (iv) (D) Only (i), 61), (ಗ)

Which of the following statements is/are true in the case of ISLM Keynesian analysis?

டு The Current Account is equal to zero line (CA = 0 line) will shift to right when there is a
decrease in autonomous exports.

(1) The Current Account is equal to zero line (CA = 0 line) will shift to right when there is
an increase in autonomous exports.

(17) If the Marshall-Lerner condition holds, then a devaluation will shift the CA = 0 line to

the right.
(iv) If the Marshall-Lerner condition holds, then a revaluation will shift the CA = 0 line to
the left.
(^) Only (@) and (iv) (B) Only (ii) and (iii)
(C) Only (i), (ii) and (iii) (D) Only (ii), (iii) and (1೪)

The terms ‘outside’ and ‘inside’ money were introduced by :
(A) Gurley and Shaw (B) A.C. Pigou
(C) Irvin Fischer (D) Metzler

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