Ex Ante and Ex Post

Q.

Explain the Relationship Between TU and MU

Q.

In an economy, investment expenditure increases by Rs. 400 crores and marginal propensity to consume is 0.8. Calculate the increase in income and increase in savings.

Q.

Suppose marginal propensity to consume is 0.75 and there is a 20% proportional income tax. Find the change in equilibrium income for the following:

(i) Government purchases increase by 20

(ii) Transfers decrease by 20

Q.

In an economy income increases by 10, 000 as a result of a rise in investment expenditure by 1, 000. Calculate

(i) Investment multiplier.

(ii) Marginal propensity to consume.

Q.

What Is the Concept of Diminishing Marginal Utility?

Q. Why does marginal cost curve cut average cost curve only at its minimum point?

Q. From the following total cost revenue schedule of a film, find out the level of output, using marginal cost and marginal revenue approach, at which the firm would be in equilibrium. Given reasons for your answer.

Output (units)	Total Revenue (Rs.)	Total Cost (Rs.)
1	10	8
2	18	15
3	24	21
4	28	25
5	30	33

Q. Distinguish between marginal propensity to consume and average propensity to consume. Give a numerical example.

Q. Why marginal opportunity cost must rise as resources are shifted from Use-$1$ to Use-$2$, even when given resources are fully and efficiently utilised?

Q. What does an increase in the ratio of revenue deficit to gross fiscal deficit indicate?

1. An increase in investment
2. An increase in the utilisation of borrowed funds for imports
3. An increase in the utilisation of borrowed funds for revenue purposes
4. An increase in the utilisation of borrowed funds for lending

Q. The GDP of India in 2003 was ______ crores.

1. Rs. 210, 000
2. Rs 190, 000
3. Rs. 170, 000
4. Rs. 150, 000

Q. At which point does the SMC curve cut the SAC curve? Give reason in support of your answer.

Q. "GDP was expected to be 100 crores in the year 2015-2016". This statement is a/an statement.

1. ex ante
2. ex post
3. ceterus paribus
4. ante

Q. State two ways in which the government can promote economic development.

Q.

Statement A: GDP was expected to be 100 crores in a year.

Statement B: The actual GDP turns out to be 60 crores only.

Identify the right option.

1. Statement A: Ex Ante

   Statement B: Ex Post

2. Statement A: Ex Post

   Statement B: Ex Ante

3. Statement A: Ex Post

   Statement B: Ex Post

4. Statement A: Ex Ante

   Statement B: Ex Ante

Q. The actual value of the variables like consumption and investment is known as ex post measures.

1. True
2. False

Q.

1. True
2. False

Q. As long as average cost curve is rising ______________.

1. Marginal cost is more than average cost
2. Marginal cost is less than average cost
3. Marginal cost is equal to average cost
4. Marginal cost has no relation with average cost

Q. The statement "The actual GDP in 2015-2016 turned out to be 60 crores only" is an ex post statement.

1. True
2. False

Q. The National Development Council (NDC), in approving the Eleventh Plan, endorsed a target of ____ GDP growth for the country as a whole.

1. 7%
2. 8%
3. 9%
4. 10%

Q. The term ceteris paribus means 'with the view that'.

1. False
2. True

Q. Indifference curve always slopes:

1. Downwards to the right
2. Upwards to the right
3. Horizontal to X-axis
4. Vertical and parallel to Y-axis