AP (Advanced Placement) Macroeconomics: Questions 83 - 85 of 750

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Question 83

Appeared in Year: 2014 (NET)

Question

MCQ▾

Which of the following are the basic assumptions of cardinal utility analysis?

I. Utility is a measurable and quantifiable entity.

II. Marginal utility of money changes with changes in real income.

III. Utilities derived from various goods are inter-dependent.

IV. The use of introspective method in judging the behaviour of marginal utility. (June)

Choices

Choice (5)Response

a.

I and III are correct.

b.

I and IV are correct.

c.

I and II are correct.

d.

I, III and IV are correct.

e.

Question does not provide sufficient data or is vague

Question 84

Appeared in Year: 2013 (NET)

Question

Matching-Pair▾

Find the pair which does not match:

Choices

Choice (5)Response

a.

Simon Kuznets (December)

Asian Drama

b.

J. Robinson

Essays in the Theory of Economic Growth

c.

Karl Marx

Das Capital

d.

A. W. Lewis

Theory of Economic Growth

e.

None of the above

Question 85

Appeared in Year: 2014 (NET)

Question

Assertion-Reason▾

Assertion(Ꭺ)

The individual speculative demand for money is a discontinuous one. (June)

Reason(Ꭱ)

Because the aggregate speculative demand for money function is, smooth downward sloping with liquidity trap at extremely low interest rates.

Choices

Choice (5)Response

a.

Both Ꭺ and Ꭱ are true and Ꭱ is the correct explanation of Ꭺ

b.

Both Ꭺ and Ꭱ are true but Ꭱ is NOT the correct explanation of Ꭺ

c.

Ꭺ is true but Ꭱ is false

d.

Ꭺ is false but Ꭱ is true

e.

Both Ꭺ and Ꭱ are false

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