All India Management Association (AIMA) 2007 M.B.A Marketing Management Business Economics – II - Question Paper
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ques. Paper
Business Economics – II (MB1B4): October 2007
ans all 77 ques..
Marks are indicated against every ques..
Total Marks : 100
1. Other things remaining constant, if there is an increase in the cost of producing output, it outcomes in
(a) Increase in the price level and reduce in real output
(b) Increase in the price level and real output
(c) Increase in the price level and no effect upon real output
(d) reduce in the price level and increase in real output
(e) reduce in the price level and no change in the real output. ( one mark)
2. A forest worker, who is out of work in recession, because of low demand for wood, is stated to be
(a) Frictionally unemployed
(b) Cyclically unemployed
(c) Structurally unemployed
(d) Disguised unemployed
(e) Underemployed. ( one mark)
3. If the multiplier is four and the government wants to increase the level of income by Rs.30 billion, it should increase government
spending by
(a) Rs. 4.0 billion
(b) Rs. 5.0 billion
(c) Rs. 7.5 billion
(d) Rs. 30.0 billion
(e) Rs.120.0 billion. ( one mark)
4. Which of the subsequent policies would a Keynesian economist favor to generate the largest increase in national income?
(a) A reduce in tax rate
(b) An increase in the tax rate
(c) An increase in transfer payments
(d) An increase in government spending
(e) An increase in money supply. ( one mark)
5. Money deposited for a term is not left in bank vaults but is loaned out by the banks (subject to minimum cash reserve requirements).
This means that a dollar on deposit can flow back into the banking system 1 or more times and that dollar can expand the money
supply. This is best defined by
(a) The Investment multiplier
(b) The money multiplier
(c) needed reserve ratio
(d) Open market operations
(e) Moral suasion. ( one mark)
6. The difference ranging from Gross National Product and Gross Domestic Product is
(a) The value of inventories accumulated during the year
(b) Depreciation
(c) Net factor income from abroad
(d) Indirect taxes
(e) Direct taxes. ( one mark)
7. GDP of a country is 8,500 MUC. Value of output produced in the economy by foreign factors of production is 200 MUC and value of
the output produced by domestic factors of production in foreign countries is 100 MUC. GNP of the country is
(a) 8,600 MUC
| Earning: Approval pending. |
