EconGlow Institute

A newspaper conducted a survey of its readers and asked everyone to fill out a survey form and send it in. Almost 50% of readers responded. This type of sample is called : (A) A cluster sample (B) A simple random sample (C) A self-selected sample  (D) A stratified random sample

Find the probability of a ‘4’ turning up at least once in two tosses of a fair dice (with six faces marked 1 to 6). (A) 1/36 (B) 1/18 (C) 11/36  (D) 1/3

Informal lender extends credit to the poor more than formal lenders because : (A) Relative to commercial banks, informal lenders can more easily circumvent informational asymmetries.  (B) Relative to commercial banks, informal lenders are less risk averse and charge lower interest rates. (C) Informal lenders do not face transaction costs and therefore they can lend at more affordable rates of interest. (D) None of the above Answer:A

Which of the following statements is false ? (A) Gini coefficient satisfies all four principles of measures of inequality. (B) The Pigou-Dalton principle states that a progressive transfer from a richer to a poorer person must make the resulting distribution more unequal.  (C) Cross country evidence supports the Kuznets curve hypothesis. (D) If Lorentz curves cross, Gini and coefficient of variation may give different rankings of inequality. Answer:B

The conjecture that inequality first increases with development, then decreases with further development, has been : (A) Strongly supported by most studies (B) Supported by cross sectional studies, not time-series studies  (C) Supported by time series studies, not cross sectional studies (D) Generally not supported by empirical studies Answer:B

According to the Ranis-Fei-Lewis model, in order for the turning point to be reached : (A) Wage in agriculture sector must rise in response to a food shortage (B) Wage in agriculture sector must remain at subsistence (C) Wage in industrial sector must decrease (D) None of the above  Answer:D👇👇

According to the big push theory of economic development, low income traps exist due to : (A) Moral hazard (B) Decreasing returns (C) Coordination failures  (D) Population pressure Answer;C

Which of the following will cause total revenue earned by cell phone producers to rise ? (A) Demand is reduced because consumers learn of new hazards of cell phone use (B) The demand is price elastic and the price falls (C) The price falls and the demand is inelastic (D) None of the above

Suppose the government imposes a profit tax on a monopoly so that the after-tax profit becomes (1 - α)π, where p is the before tax profit. After the imposition of the tax : (A) The quantity sold remains the same (B) The quantity sold decreases (C) The price increases (D) None of the above happens

Suppose demand for labour is given by L = - 50w + 450 and supply is L = 100w, where L is the number of labour and w is the wage rate per hour. Suppose the government wishes to raise the equilibrium wage to 4 by offering a subsidy to employers for each person hired. A. What will be the new equilibrium level of employment ? B. How much total subsidy will be paid ? (A) A 500 B 1000 (B) A 400 B 1200  (C) A 300 B 4 (D) None of the above

Suppose that 10 people live in a street and that each of them is willing to pay 2 for an extra streetlight. Let the cost of providing x streetlights be c(x) = x2. What is the Pareto-efficient number of streetlights ? (A) 1 (B) 10 (C) 5 (D) None of the above Answer:B