Inequality and Externality

Q.

(a) What causes disequilibrium in BOP?

(b) Why is flexible exchange rate better than fixed exchange rate system?

Q.

Which of the following is a positive externality?

1. Smoke detectors

2. Vaccines

3. Education

4. Global Warming

Q. The Gini coefficient is a measure of .

1. market efficiency
2. product preference
3. income inequality
4. market power

Q.

The impact of an externality is:

1. positive

2. negative

3. either positive or negative

4. neither positive nor negative

Q. Fill in the blanks with appropriate alternatives given in the brackets:

1. The demand for salt is _______________. (elasticity/ inelastic/ infinite elastic/ unitary elastic)

2. Income elasticity of demand for inferior goods is __________. (positive/ negative/ zero/ greater than one)

3. Perfectly elastic demand curve is _________________. (horizontal to OX axis / horizontal to OY axis/ flatter/ steeper)

4. Cross elasticity of demand is applicable to ____________ goods. (unrelated/ substitute/ inferior/ natural)

5. The slope of demand curve is _______________ in case of inelastic demand. (flatter/ steeper/ horizontal/ vertical)

Q.

The Gini coefficient is a measure of

1. Market efficiency

2. Product differentiation

3. Income inequality

4. Market power

Q.

The Gini coefficient measures

1. Unemployment

2. Economic growth

3. Inflation

4. Income inequality

Q. Give reasons or explain the following statements

1) Macro-Economics is the study of aggregates.
2) Macro-Economics is also known as income and employment theory.
3) The scope of Macro-Economics is wide.
4) Macro-Economics deals with whole economy.
5) Macro-Economics is different from Micro-Economics.

Q. What are the differnet phases in the Law of Variable Proportions in terms of Total Product? Give reasons behind each phase. Use diagram.

Q. Distinguish between :
Micro Variables and Macro Variables

Q. In order to measure the inequalities of income and wealth ______ index is used.

1. None
2. Dolor
3. NASDAQ
4. GINI

Q. Microeconomics is the study of aggregates.

1. True
2. False

Q.

If income is distributed evenly, the Gini co-efficient is:

1. 1

2. Zero

3. Undefined

4. 0.5

Q. GINI index represent ______ perfectly inequality in distribution of income.

1. 0
2. 1
3. 0.5
4. 0.25

Q. A relatively elastic demand curve has a steeper slope.

1. True
2. False

Q. GINI index is measure of __________.

1. degree of inequality in distribution of income and wealth
2. sectoral classification
3. increasing trend in national income
4. per capita income by person resident in India

Q. PPF is negative sloped due to ________.

1. scarcity of production resources
2. unlimited wants
3. improvement in technology
4. increasing opportunity cost

Q. Microeconomics deals with the study of aggregates.

1. True
2. False

Q. Gini index of ________ represents perfect inequality in the distribution of income.

1. 1
2. 0.5
3. 0
4. 0.25

Q. The GINI Index for India in 2007-2008 was ________.

1. 0.182
2. 0.297
3. 0.534
4. 0.245

Q. Define or explain elasticity of demand.

Q. Distinguish between the following

Slicing method and Lumping method

Q. Which of the following is a positive externality?

1. Smoke detectors
2. Vaccines
3. Education
4. Global warming
5. Cleanliness
6. Planting trees
7. Plastic bottles
8. Smoking
9. Pollution

Q.

Which of the following is a positive externality?

1. Smoke detectors

2. Vaccines

3. Education

4. Global Warming