List of top Economics Questions on Economics and economic theories asked in IIT JAM EN

Consider a Solow model with the production function: \(Y=K^\alpha L^{1-\alpha}\), where \(Y\), \(K\), and \(L\) are output, capital, and labour, respectively. \(\alpha\) is a positive constant. The savings rate, depreciation rate, and labour growth rates are \(20\%\), \(7\%\), and \(3\%\), respectively. If \(\alpha=0.5\), then the steady-state capital-labour ratio is (in integer).

Let us consider an AK growth model where the growth rate of per-capita output, population growth rate, and depreciation rate are \(4\%\), \(2\%\), and \(4\%\), respectively. If productivity parameter \((A)\) is \(0.5\), then savings rate (in %) is (in integer).

Which one of the following statements regarding Romer’s Endogenous Growth model and Solow’s Growth model is CORRECT?

The present value of a perpetual cash flow of Rs.250 per year, discounted at the rate of 10% each year, is .........

An economy saves 25% of its national income and invests a sum of Rs.1000 each year. The economy starts with Rs.10,000 as its initial national income. Assume that the consumption in any year depends on the income of the previous year. The national income of the economy after 10 years is Rs. ........... (rounded off to two decimal places).

Suppose an economy produces 100 kg of rice in a year and sells that for Rs.100 per kg. If the quantity of money in the economy is Rs.500, then the velocity of money is ..............

Suppose the GDP growth rate is 8% and the rate of saving in the economy is 40%. The incremental capital output ratio (ICOR) is ............

The composition of the adult population in an economy is as follows: Employed: 140 million; Unemployed: 10 million; Not in labour force: 50 million. The rate of unemployment is .......... % (rounded off to two decimal places).

A monopolist produces a product and sells to two types of buyers: A and B. The inverse demand functions for A and B are given by \( P = 50 - 5Q \) and \( P = 100 - 10Q \), respectively. The monopolist’s cost function is given by \( C = 90 + 20Q \). The profit maximizing output of the monopolist for buyer B is .........

Which of the following reference period(s) is/are used by the National Sample Survey for measuring employment and unemployment?

A monopolist produces two commodities 1 and 2 in quantities \(x_1\) and \(x_2\) at a constant average cost of Rs.2.50 and Rs.3.00 per item, respectively. If \(p_1\) and \(p_2\) stand for the prices charged and the market demands are: \[ x_1 = 5(p_2 - p_1) \quad \text{and} \quad x_2 = 32 + 5p_1 - 10p_2 \] The price \(p_1\) for commodity 1 at which the monopolist's total profit is maximised is (rounded off to two decimal places).

Which of the following is/are CORRECT according to the classical macroeconomic school?

Which of the following statements is/are CORRECT for diseconomies of scale?

Market failure occur(s) in the presence of which of the following?

Which of the following is/are CORRECT in the case of a small open economy with floating exchange rate?

Which of the following statements describe(s) the relationship between \( R^2 \) and adjusted \( R^2 \) (denoted by \( \bar{R}^2 \))?

Which of the following is/are NOT the assumption(s) of Classical Linear Regression Model (CLRM)?

In the case of ‘liquidity trap’, ..........

Mid-day meal scheme for Indian school children was first introduced in ............

Tax buoyancy is defined as .............

Consider the statements I and II in a monopolistically competitive market scenario:
I. In the long-run equilibrium, the price of the good will be equal to the minimum of the average total cost.
II. In the short run, firms may earn a positive profit.
Which of the following options is CORRECT?

In a two-goods consumption framework, Engel curve shows the relationship between ..........

Theory of revealed preference is used to derive ............

According to the IS-LM model, if the central bank increases money supply, then the rate of interest will ........... and the income will ..............