1. Big-mac index is based on?
(A) Official exchange rate
(B) Real effective exchange rate
(C) Nominal effective exchange rate
(D) Purchasing power parity exchange rate

2. Which of the following statements is correct?
(A) Real GDP is the total market value of the final goods and services produced in America for sale in a year valued in the prices of 1992.
(B) Your buying stock in the stock market is an example of investment spending
(C) Potential Real GDP is always greater than Equilibrium Real GDP
(D) Social security and welfare are examples of spending on infrastructure.

3. The period of the business cycle in which real GDP is increasing is called the:
(A) expansion

(B) peak 
(C) recession
(D) stagflation

4. Which of the following is related with monopoly?
(A)Advertisement cost
(B) Selling cost
(C) Price discrimination
(D) Product differentiation

5.The modern money is not?
(A) Token money
(B) Fiat money
(C) Fiduciary money
(D) Full bodied money

6.The outcome budget is a?
(A) Pre-outlay instrument
(B) Post-outlay instrument
(C) Pre-expenditure instrument
(D) Post-expenditure instrument

7. In the theory of kinked demand curve, the lower segment of the demand curve is?
(A) Perfectly inelastic
(B) Perfectly elastic
(C) Highly elastic
(D) Less elastic

8. The difference between GDP and NDP is?
(A) Net foreign income
(B) Depreciation
(C) Subsidies
(D) Net indirect tax

9. Arithmetic mean of deviation is always?
(A) A positive value
(B) A negative value
(C) Equal to zero
(D) Equal to one

10. Which one of the following is an item of current account of the balance of payments?
(A) Foreign investment
(B) External commercial borrowings
(C) Foreign grants
(D) Non-resident Indian deposits

11. Charlier‟s check for accuracy is used for?
(D) Standard deviation

12.The empirical study of economic theories is considered under?
(A) Aggregate economics
(B) Applied economics
(C) Social economics
(D) Welfare economics

13 Elinor Ostrom, the first woman to win the Nobel Prize in economics in 2009. has been awarded for her contribution in the field of?
(A) Resolving business conflicts
(B) Inflationary trends
(C) Management of common property
(D) Capital market analysis

14. The Kuznet‟s curve shows the relationship between?
(A) Economic growth and income inequality
(B) Unemployment and inflation
(C) Tax rate and tax revenue
(D) Economic growth and inflation

15. Slutsky‟s substitution effect is based on?
(A) Cost variation
(B) Cost difference
(C) Compensating variation
(D) Compensating difference