In Case of monopolistic competition, equilibrium takes place at the point where _____.

1. 1. MR- MC
   2. MR MC
   3. MR CM
   4. MC is less than zero

The concept of Pareto optimum is also called as _____.

1. 1. Economics Efficiency
   2. Production Efficiency
   3. Consumption Efficiency
   4. Distribution Efficiency

The _____ is the value imputed to any final assets because of its ease of conversion into a medium exchange.

1. 1. Portfolio Investment
   2. Liquidity Premium
   3. Liquidity Trap
   4. Yield-bearing Assets

With full-employment in economy, aggregate supply curve is _____.

1. 1. Upward sloping
   2. Horizontal
   3. Vertical
   4. Downward sloping

Which one is not amongst the Price indices?

1. 1. Consumer Price Index (CPI)
   2. Producer Price Index (PPI)
   3. Implicit Price Deflator (IPD)
   4. Per capita GNP

Permanent income is the income that household anticipates to _____.

1. 1. Expect to Receive
   2. Actually receive
   3. Lifetime income
   4. Only Inherent Income

Which of the following describes inverse relationship between unemployment and Inflation?

1. 1. Laffer Curve
   2. Offer Curve
   3. Edgeworth Box
   4. Phillips Curve

The total value of existing buildings & factories machines & equipments for production & _____ is called capital.

1. 1. Inventories
   2. Distribution
   3. Investment
   4. Capacity

According to Duesenberry, the short -run consumption function shows upward response to rising income but does not shift down with a decline in income. This situation is called as _____.

1. 1. Balance Effect
   2. Ratchet Effect
   3. Consumption Function
   4. Inflection

The theory which explains that the people choice is based on rational outlooks, available information and past experience is called _____.

1. 1. Relative Income Hypothesis
   2. Rational Expectations
   3. Life-Cycle Hypothesis
   4. Permanent Income Hypothesis