CS/BBA(H)BIRM/BSCM/SEM-2/BBA-204/2013
2013
ECONOMICS-II
Time Allotted : 3 Hours Full Marks : 70
The figures in the margin indicate full marks.
Candidates are required to give their answers in their own words
as far as practicable.
GROUP – A
( Multiple Choice Type Questions )
1. Choose the correct alternatives for the following :
10x1 = 10
i) If central bank increases the repo rate, then
a) inflation can be controlled
b) inflation cannot be controlled
c) inflation will remain unchanged
d) none of these.
ii) Devaluation makes exports ............. in foreign
markets and imports ..................... in domestic
market.
a) cheaper, dearer b) cheaper, cheaper
c) dearer, dearer d) dearer, cheaper.
iii) With a regressive tax, as income
a) increases, tax rate remains the same
b) decreases, tax rate decreases
c) increases, tax rate increases
d) increases, tax rate decreases.
iv) Suppose that a Japanese automaker produces trucks in
the United States using all Japanese components and
labour. The trucks produced are included in
a) neither U.S. GNP nor U.S. GDP
b) U.S. GDP but not U.S. GNP
c) both U.S. GNP and U.S. GDP
d) U.S. GNP but not U.S. GDP.
v) If marginal propensity to consume ( mpc ) of a
consumer is 0.8, what is the marginal propensity to
save ( mps ) ?
a) 0.3 b) 0.2
c) 0.6 d) cannot be determined.