The proportionality between the velocity of price movement and the inflationary gap is:
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Indirect and irregular
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Direct and linear
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Irregular and direct
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If the percentage increase in quantity of a commodity demanded is its price, the coefficient of price elasticity of demand is:
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Greater than 1
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Equal to 1
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Less than 1
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Monopsony is a form of market organization in which there is a:
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Single buyer of an input
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Single seller of an output
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Single buyer of an output
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When average product is falling, it is
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Less than the marginal product
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Not measurable in this case
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Greater than the marginal product
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Which of the following cannot be used to justify efficiency wages
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Sticky price(menu cost) models
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Turnover costs
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Worker shirking
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New Keynesian economics differs from real business cycle economics in that
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Markets are perfectly competitive in new Keynesian models
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Business cycles are fluctuations in the natural rate of unemployment in new Keynesian models
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Wages and prices are perfectly flexible
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Agents maximize utility in the new Keynesian model
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In the real business cycle model, business cycles are
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Efficient and do not represent lost output
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Driven by technology shocks
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Occur when markets clear
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In case of Giffen goods, demand curve will slope:
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Vertical
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Horizontal
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Upward
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Consider a demand curve which takes the form of a straight line cutting both axes. Elasticity at the mid-point of the line would be:
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Zero
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One infinite
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infinite
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The interrelation between innovations and investment opportunity was first pointed out by:
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Schumpeter
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Samuelson
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T. R. Hicks
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