Tribhuvan
University
Entrance
Exam - 2023
MA Economics
1. Market failure is a concept of
a) disequilibrium in control market
b) disequilibrium in free unregulated market
c) disequilibrium in regulated
market
d) disequilibrium in monopoly Market
2. GDP deflator is defined as the ratio
of:
a) nominal GDP to real
GDP
b) real GDP to nominal GDP
c) nominal GDP to money supply
d) real GDP to money supply
3. If Dx = 420-30p and Sx=
120+20p, what is the equilibrium Price?
a) Rs. 4
b) Rs. 7 c) Rs. 6 d) Rs. 3
4.
The second derivative of 2x5 is:
a) 40x3 b)
36x2 c) 72x4 d) none of the above
5. The value of correlation coefficient
always lies in between
a) 0 to 1
b) -1 to 0 c) -1 to +1 d) none of the above
6. If 
= 
, find the value of x
and y.
a) 6, 3
b) 3, 6 c) 3, -3
d) -3, 4
7. If |A| = 
, the value of
determinant |A| is,
a) 32
b) 40 c) 48 d) 60
8. If Q = ALaKb,
the operation of decreasing return to scale in production is,
a) a + b = 0 b) a + b = 1
c) a + b < 1 d) a + b > 1
9. The term 'liquidity Trap' is
associated with
a) Relatively elastic speculative money demand
b) Perfect inelastic
speculative money demand
c) Unitary elastic speculative money demand
d) Perfect elastic speculative money demand
10. What is the probability of getting
total value of 2 or 12 when two dice rolling at a time?
a) 0.1111
b) 0.0556 c) 0.2500 d) 9.2222
11. If the curve is negative skewed, the
relationship among mean, median and mode is
a) mean > median > mode b)
mean < median < mode
c) mean = median = mode d) (mean < median) = mode
12. In the context of fiscal federalism,
what is the primary purpose of government expenditure at the local level?
a) Reducing inflation b) promoting economic growth
c) Allocating resources
efficiently
d) Controling interest rate
13. How does fiscal federalism
contribute to the distribution of government expenditure among different levels
of government?
a) Centralized decision-making b) Equal distribution to all regions
c) Decentralized
decision-making d) Strict control by
local gov.
14. Which principle of allocation
ensures that resources are distributed based on the specific needs and
characteristics of local governments?
a) Equalization b)
Proportion representation
c) Centralized allocation d) Random distribution
15. How does government expenditure at
the local level impact the overall economy?
a) It has no effict on the ecomomy
b) Stimulates economic
activity at the local level
c) Only effects national economy indicators
d) Increase inflation without benefits
16. What does a government budget
primarily entail?
a) Private sector finaces b) Allocation of
public resources
c) Individual income management d) Corporate
financial planning
17. Which of the following is a typical
focus of the capital budget?
a) Day-to-day operational expenses
b) Long-term investment
projects
c) Short-term debt repayment
d) Routine administrative costs
18. What is the main purpose of
providing subsidies in a government budget?
a) General additional revenue b) Encourage competition
c) Support specific economic
activities d) Reduce inflation
rates
19. When a government faces a low
capacity of spending, what is likely to be affected?
a) Increased economic growth b) Inflation rates
c) Efficient resource utilization d) Public
infrastructure development
20. In the context of a government
budget, what does the term ''allocation'' refer to?
a) Total revenue generation
b) Distribution of resources
to various sectors
c) Tax collection methods
d) Public debt management
21. Managerial Economics is:
a) Dealing only micro aspects b) Only a normative science
c) Deals with practical aspects d) All of
the above
22. In the case of perfect elasticity,
the demand curve is:
a) Vertical
b) Horizontal c)
Flat d) Steep
23. The distinction between variable
cost and fixed cost is relevant only in:
a) Long period b) short period
c) Medium period d) Mixed period
24. The process of analyzing and
forecasting demand if know as:
a) Demand estimation b) Demand analysis
c) Demand function d)
Demand forecasting
25. Which of the following is not a
function of managerial economicsts:
a) Advice on trade and public relation b) Investment analysis
c) Economic analysis of agriculture d)
Supervision and control
26. Average revenue is the revenue per:
a) Unit commodity sold b)
Total commodity sold
c) Marginal commodity sold d) None of these
27. The opportunity cost of a given
activity is:
a) The value of next best
activity
b) The value of material used
c) The cost of input used
d) None of these
28. In a study concluding that subject
who drink caffeine are more likely to have high blood pressure, the independent
variable is:
a) The time of consuming caffeine b) The blood pressure
c) The consumtion of caffeine d)
The subjects
29. Economics if often blamed for not
adequately addressing the issue of economic inequality. Which economic concept
is criticized for exacerbating inequality?
a) Progressive taxation b) Trickle-down economics
c) Universal basic income d) Social Safety nets
30. ………… is a gift of natur.
a) Land b)
Labour c) Capital d) Organisation
31. Income minus saving is equal to:
a) Consumption b)
Production c) Investment d) Demand
32. ……… means absence of competition.
a) Monopoly b)
Perfect c) Imperfect d) Oligopoly
33. In thress sector economy, Y equals:
a) C+I b) C+I+G c) C+I+G+(X-M) d) None of these
34. Under the keynesian model, aggregate
expenditure is measured along:
a) Vertical axis b)
Horizontal axis
c) Vertical Intercept d) 45 degree line
35. Which of the fillowing is not a
topic studied in macroeconomic?
a) GDP b) The
unemployment rates
c) The inflation rate d)
The perice of Dell computers
36. Critics argue that economics fails
to address market failure adequately. What is an example of a market failure?
a) Efficient resource allocation b) Pefect information
c) Externalities d)
Price stability
37. Unemployment means that:
a) There is excess demand in the labour market
b) There are some people who will not work at the
going wage rate.
c) At the going wage rate,
there are people who want to wark but can't find work.
d) People are not willing to work at the going wage
rate.
38. According to the classical
economists, the economy ……
a) It self-correcting b)
Will never be at full employment
c) Has sticky prices in many industries
d) Requires fine-tuning to reach full employment.
39. Economics is sometimes criticized
for its emphasis on economic growth as the primary indicator of prosperity.
What is a potential downside associated with this focus?
a) Job creation b) Environmental degradation
c) Income equality c) Technological
advancement
40. Multiple counting during National
Income accounting can be avoided by:
a) Including transfers in their calculation
b) Counting both intermediate and finak goods
c) Only counting final goods
d) Only counting intermediate goods
41. GDP data are criticized as being
inaccurate measure of economic welfare because:
a) They do not take into account changes in the
amount of leisure
b) They do not take into account all changes in
product quality
c) They do not take into account the adverse effects
of economic activity on the environment.
d) All of the above
considerations.
42. Gross investment is a:
a) Flow, as is depreciation b)
Flow, as is capital
c) Stock, whereas depreciation is a flow d) Stock, whereas capital is a flow
43. In a private closed economy, when
aggregate expenditure equal GDP:
a) Consumption equals investment
b) Consumption equals aggregate expenditure
c) Planned investment equals
saving
d) Disposable income equals consumption minus saving
44. During the COVID-19 pandemic, which
economic sector was most significantly impacted globally?
a) Technology
b) Healthcare c) Tourism & hospitality d) Manufacturing
45. What indicators are typically
included in the calculation of the Human Development Index (HDI)?
a) Income, life expectancy and
education
b) GDP, Inflation rate and literacy rate
c) Unemployment rate, healthcare access and poverty
rate
d) Stock market performance, infrastructure
development and cultural diversity
46. What is the currency of Japan?
a) Won
b) Yen c) Baht d) Ringgit
47. Why do investors often consider
investing in land?
a) Guaranteed high return b) Quick liquidity
c) Potential for capital
appreciation d) Low risk
48. What was the primary contribution of
Milton Friedman, a nobel laureate in economics?
a) Behavioral economics b)
Monetary policy & quantity theory of money
c) Development economics d) Game theory
49. The concept of 'Trickle-down
economics' is often debated. What does it suggest?
a) Economic inequality benefits society
b) Economic benefits for the
wealth will eventually benefit everyone
c) Redistribution of wealth is unnecessary
d) Government intervention harms economic growth
50. What is a common criticism directed
towards economic models?
a) Lack of mathematical rigor
b) Overemphasis on empirical evidence
c) Inability to predict market trends
d) Inflexibility in adapting
to real-world complexities
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