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

The difference between Marginal Products and Marginal productivities is that the former represent certain quantities of output while the later are _____.

1. 1. Averages
   2. Rations
   3. Co-variances
   4. Correlations

Under Monopolistic competition, there can be freedom of entry only in the sense of a freedom to produce _____.

1. 1. Highest output
   2. Lowest output
   3. Same output
   4. Close substitute

When the current interest rate is low with high savings rate; so that keeping monetary policy ineffective is known as _____.

1. 1. Liquidity Trap
   2. Economic Growth
   3. Economic Development
   4. Ratchet Effect

Friedman Hypothesis state that the Marginal Propensity to Consume (MPC) out of transitory income is zero also has an interesting implication for _____.

1. 1. Monetary Policy
   2. Fiscal Policy
   3. Pricing Policy
   4. Tax Policy