Quiznetik
Mathematical Economics and Econometrics | Set 1
1. The measurement of economic data:
A. mathematical
B. econometrics
C. business
D. statistics
Correct : B. econometrics
2. An identity between two alternative:
A. behavioral
B. definitional
C. conditional
D. none
Correct : B. definitional
3. The relationship between the price of the commodity and quantity of the commodity demanded :
A. supply
B. demand
C. elasticity
D. none
Correct : B. demand
4. The relation of Price and quantity demanded:
A. negative
B. positive
C. no relation
D. none
Correct : B. positive
5. The relationship between the price of the commodity and quantity of the commodity supplied:
A. demand
B. equilibrium
C. supply
D. none
Correct : C. supply
6. The wants satisfying power of a commodity:
A. consumption
B. saving
C. utility
D. interest
Correct : C. utility
7. Consumption function is given C = 35 + .4 Yd , find MPC:
A. .4
B. .6
C. .8
D. .7
Correct : A. .4
8. The relationship between income and consumption:
A. consumption
B. saving
C. investment
D. none
Correct : A. consumption
9. The transformation of physical inputs in to physical outputs:
A. production
B. consumption
C. distribution
D. investment
Correct : A. production
10. The difference between total revenue and the total Cost:
A. cost
B. income
C. profit
D. revenue
Correct : C. profit
11. MPS + MPC =?
A. 2
B. 0
C. 1
D. 3
Correct : C. 1
12. The difference between the present level of income and the past level of income:
A. saving
B. consumption
C. investment
D. none
Correct : C. investment
13. The first derivative of the consumption function is:
A. marginal revenue
B. marginal cost
C. marginal propensity to consume
D. none
Correct : C. marginal propensity to consume
14. Revenue function TR = 22x²+14, find Marginal revenue?
A. 44x
B. 40x
C. 22x
D. 54x
Correct : A. 44x
15. The addition to total cost:
A. mc
B. ac
C. tc
D. none
Correct : A. mc
16. The proportionate change in quantity demanded and the proportionate change in price is:
A. price elasticity
B. income elasticity
C. cross elasticity
D. none
Correct : A. price elasticity
17. MRSxy is equal to:
A. mux/muy
B. mpx/mpy
C. mrts
D. none
Correct : A. mux/muy
18. Marginal rate of technical substitution is equal to:
A. mux/muy
B. mpl/mpk
C. mrsxy/mrs
D. mrx/mry
Correct : B. mpl/mpk
19. The ratio of the proportionate change in the quantity purchased of a good to the proportionate change in income:
A. price elasticity
B. income elasticity
C. cross elasticity
D. none
Correct : B. income elasticity
20. An increase in income lead to the increase in quantity demanded of the good:
A. negative good
B. positive good
C. superior good
D. normal good
Correct : C. superior good
21. The relationship between quantity demanded of a good and level of consumer’s income:
A. engel function
B. consumption function
C. saving function
D. none
Correct : A. engel function
22. The proportionate change in quantity demanded by a good due to proportionate change in the price of the other good:
A. price elasticity
B. income elasticity
C. cross elasticity
D. demand elasticity
Correct : C. cross elasticity
23. Given the utility function U = 5x²+12x, find Marginal utility:
A. 5+12
B. 10x+12
C. 12x 10
D. 10x +12x
Correct : B. 10x+12
24. The first order derivative of Total Utility:
A. mu
B. tu
C. au
D. none
Correct : A. mu
25. The transformation of physical inputs in to outputs:
A. production function
B. consumption function
C. saving function
D. none
Correct : A. production function
26. if all factors of production are increased in a given proportion, output also increased in a same proportion:
A. second degree
B. first degree
C. third degree
D. none
Correct : B. first degree
27. The amount of a productive factor that is essential to produce a unit of product is called:
A. technical coefficient
B. fixed proportion
C. variable proportion
D. none
Correct : A. technical coefficient
28. The ratio of the factors (K/L):
A. apk
B. apl
C. mpl
D. mpk
Correct : B. apl
29. Marginal rate of substitution between factors is equal to the ratio of :
A. mpx/mpy
B. mpl/mpk
C. mrsxy/mrs
D. none
Correct : B. mpl/mpk
30. The elasticity of substitution under cob- Douglas function:
A. 2
B. 1
C. 0
D. 3
Correct : B. 1
31. If ∝ + = 1 is related to:
A. constant
B. increase
C. decrease
D. none
Correct : A. constant
32. The percentage change in output caused by a given percentage change in a variable factor is:
A. output elasticity
B. income elasticity
C. price elasticity
D. none
Correct : A. output elasticity
33. If output is exhausted by the distributive shares of all factors:
A. euler theorem
B. output elasticity
C. labour share
D. none
Correct : A. euler theorem
34. Who is invented the linear programming technique:
A. h. thail
B. george b danzig
C. galton
D. karl pearson
Correct : B. george b danzig
35. Those which meet or satisfy the constraints of the problem:
A. technical
B. objective
C. feasible
D. optimum
Correct : C. feasible
36. one of the assumptions of LPP:
A. linearity
B. elasticity
C. equilibrium
D. none
Correct : A. linearity
37. One of the applications of LPP:
A. objectivity
B. diet problem
C. constraint
D. none
Correct : B. diet problem
38. The term ‘econometrics’ was coined by:
A. marsahll
B. pawel
C. ragner frisch
D. clompa
Correct : C. ragner frisch
39. Error term serves the purpose of…………………….. assumption in economics:
A. dynamic
B. static
C. comparative
D. none of the above
Correct : D. none of the above
40. Econometrics model is ………….model.
A. exogenous
B. endogenous
C. identified
D. either exogenous or endogenous
Correct : D. either exogenous or endogenous
41. The starting point of econometric analysis is:
A. model specification
B. formulation of alternative hypothesis
C. formulation of null hypothesis
D. collection of data
Correct : C. formulation of null hypothesis
42. Regressor refers to:
A. independent variable
B. dependent variable
C. error term
D. dummy variable
Correct : A. independent variable
43. In perfect linear model, we assume that regression coefficient remains………..
A. variable until some point
B. variable through out
C. constant to some point
D. constant through out
Correct : D. constant through out
44. In econometric models, t+1 indicates:
A. net addition
B. current value with some fluctuations
C. expected value
D. none of these
Correct : C. expected value
45. Quota sample is………………….sample.
A. probability sample
B. non probability sample
C. convenient sample
D. judgment sample
Correct : B. non probability sample
46. When a north Indian town data and south Indian data are totaled, it leads to the problem of -------------aggregation.
A. national
B. regional
C. spatial
D. heterogeneous
Correct : C. spatial
47. In an econometric model, Y = ∞ + βX, ∞ shows,
A. intercept of the equation
B. slope of the equation
C. average value of y for average value of x
D. rate of change
Correct : A. intercept of the equation
48. Error term indicates
A. fluctuations in the given data
B. variations
C. random variations
D. explained variation
Correct : C. random variations
49. Among the following, which is an assumption of OLS
A. the explanatory variables are measurable
B. the relationship being estimated is identified
C. error term and independent variables are related
D. error term and independent variables are linearly related
Correct : B. the relationship being estimated is identified
50. Linearity means
A. the ols estimates are linear function of random variable
B. the ols estimates are function of variable
C. the ols estimates are function of random variable
D. the ols estimates has minimum variance
Correct : A. the ols estimates are linear function of random variable
51. The power of a statistical test is defined as,
A. 1-β
B. 1 + β
C. 1
D. β
Correct : A. 1-β
52. Standard error is defined as,
A. standard deviation of the sampling distribution
B. standard deviation of the population
C. variance of the sampling distribution
D. variance of the population
Correct : A. standard deviation of the sampling distribution
53. Student t test is preferred in the case of a,
A. small sample
B. large sample
C. when sample is below 50
D. when sample is above 50
Correct : A. small sample
54. Cobb Douglas production function is an example of :
A. linear model
B. double log model
C. lin log model
D. log lin model
Correct : B. double log model