065/2022

Total Marks : 100 Marks
Time : 1 hour and 30 minutes

1. In Cobb-Douglas production function elasticity of factor substitution is equal to-
(^) Zero (B) Infinity
(C) One (2) 0-1

2. Point of inflexion is the point at which
(A) marginal product increases.
(B) marginal product decreased.
(C) marginal product is at its maximum.
(D) marginal product becomes zero.

3. 120 goods were perfect complements, their indifference curves would be-
(^) Right angle (B) Parabolic
(C) Straight lines (D) Rectangular hyperbolas

4. Fora Giffen good
(^) Negative substitution effect outweighs positive income effect
(B) Positive income effect outweighs negative substitution effect
(C) Negative income effect outweighs positive substitution effect
(D) Positive substitution effect outweighs negative income effect

5. The optimum capital stock is achieved when the user cost of capital is equal to
(^) The interest rate (B) The depreciation rate
(0) Tobin's 0 (D) The marginal product of capital

6. Non-Accelerating Inflation Rate of Unemployment (NAIRU) means :
(^^) A rate of inflation which makes the rate of unemployment zero.
(B) A rate of unemployment for which change in the rate of inflation is zero.
(0) A rate of inflation for which the change in the rate of unemployment is zero.
(D) A rate of unemployment which is equal to the rate of inflation.

7. Which amongst the following is not correctly matched ?
(A) New Classical Economics — Robert Lucas
(B) Multiple effect of Balanced Budget - T.H. Haavelmo
(C) New Keynesian Economics — Paul Romer
(D) Permanent Income Hypothesis - M. Friedman.

8. The negative relationship between the gap between actual GNP and its trend and the
difference between actual unemployment rate and its equilibrium value is called-
(A) The Aggregate Supply Curve
(B) Okun's Law
(C) The Natural Rate of Unemployment
(D) The Phillips Curve
A 3 065/2022
[P.T.O.]