RBI Grade B DEPR Practice Question Set - 1

  1. Find the slope of the following isoquant: \[{P_K}K + {P_L}L = E\]
    1. \(\frac{E}{{{P_K}}}\)

    2. \(\frac{{{P_L}}}{{{P_K}}}\)

    3. \( - \frac{E}{{{P_K}}}\)

    4. \( - \frac{{{P_L}}}{{{P_K}}}\)

  2. Find the intercept of the following isoquant: \[{P_K}K + {P_L}L = E\]
    1. \(\frac{E}{{{P_K}}}\)

    2. \(\frac{{{P_L}}}{{{P_K}}}\)

    3. \( - \frac{E}{{{P_K}}}\)

    4. \( - \frac{{{P_L}}}{{{P_K}}}\)

  3. Find the equilibrium quantity demanded and the equilibrium price for the following supply and demand function: \[\begin{array}{l}{Q_s} = - 5 + 3P\\{Q_d} = 10 - 2P\end{array}\]
    1. Q = 3 & P = 3

    2. Q = 4 & P = 4

    3. Q = 4 & P = 3

    4. Q = 3 & P = 4

  4. Suppose there is a simple two sector economy given as followes: \[\begin{array}{l}Y = C + I\\C = {C_o} + bY\\I = {I_o}\end{array}\] where,
    \({C_o} = 85\)
    \(b = 0.9\)
    \({I_o} = 55\)
    which of the following option is incorrect about the econonomy:
    1. Y = 1400

    2. MPC = 0.9

    3. MPS = 0.1

    4. C = 1400

  5. Consider the following two sector economy model: \[\begin{array}{l}Y = C + I\\{M_d} = {M_z} + {M_t}\\C = 48 + 0.8Y\\I = 98 - 75i\\{M_s} = 250\\{M_t} = 0.3Y\\{M_z} = 52 - 150i\end{array}\] Find the equilibrium interest rate:
    1. 0.8

    2. 0.08

    3. 8.8

    4. 8.08

  6. A person has ₹ 120 to spend on two goods (X,Y) whose respectiue prices are ₹ 3 and ₹ 5. What happens to the original budgel line if the budget falls by 25%?
    1. The budget line shifts parallel to the left

    2. The budget line shifts parallel to the right

    3. The budget line becomes steeper

    4. The budget line becomes flatter

  7. What happens to the budget line in the if the price of x doubles?
    1. The budget line shifts parallel to the right left

    2. The budget line shifts parallel to the right

    3. The budget line becomes steeper

    4. The budget line becomes flatter

  8. What happens to the budget line in the if the price of Y fall to 43
    1. The budget line shifts parallel to the right left

    2. The budget line shifts parallel to the right

    3. The budget line becomes steeper

    4. The budget line becomes flatter

  9. Find the equilibrium national income for the following model:
    10. \[\begin{array}{l}Y = C + I\\C = 100 + 0.6Y\\{I_0} = 40\end{array}\]
    1. 275

    2. 375

    3. 250

    4. 350

  10. Find the equilibrium national income for the following model:
    11. \[\begin{array}{*{20}{l}}{Y = C + I}\\{C = 100 + 0.6Y}\\{{I_0} = 40}\\{{Y_d} = Y - T}\\{T = 50}\end{array}\]
    1. 275

    2. 375

    3. 250

    4. 350

  11. Find the equilibrium national income aggregate demand from the following income determination model:
    12. \[\begin{array}{*{20}{l}}{Y = C + I}\\{C = 85 + 0.75{Y_d}}\\{{I_0} = 30}\\{{Y_d} = Y - T}\\{T = 20 + 0 \cdot 2Y}\end{array}\]
    1. 275

    2. 375

    3. 250

    4. 350

  12. Given the following set of simultaneous equations for two related markets, beef(B) and pork(p), Find the equilibrium quantities \(({Q_B}\,\,\& \,\,{Q_P})\) for each market:
    Beef Market: \[\begin{array}{l}{Q_{dB}} = 82 - 3{P_B} + {P_P}\\{Q_{sB}} = - 5 + 15{P_B}\end{array}\] Pork Market: \[\begin{array}{l}{Q_{dP}} = 92 - 2{P_B} + 4{P_P}\\{Q_{sB}} = - 6 + 32{P_P}\end{array}\]
    1. \({Q_B} = 70\,\,\& \,\,{Q_P} = 70\)

    2. \({Q_B} = 90\,\,\& \,\,{Q_P} = 90\)

    3. \({Q_B} = 90\,\,\& \,\,{Q_P} = 70\)

    4. \({Q_B} = 70\,\,\& \,\,{Q_P} = 90\)

  13. Find the equilibrium quantity for two complementory goods, slacks (s) and jackets (J) for the following model:
    Slack Market: \[\begin{array}{l}{Q_{ds}} = 410 - 5{P_s} - 2{P_J}\\{Q_{ss}} = - 60 + 3{P_s}\end{array}\] Jacket Market: \[\begin{array}{l}{Q_{dJ}} = 295 - {P_s} - 3{P_J}\\{Q_{sJ}} = - 120 + 2{P_J}\end{array}\]
    1. \({Q_S} = 60\,\,\,\& \,\,\,{Q_J} = 30\)

    2. \({Q_S} = 30\,\,\,\& \,\,\,{Q_J} = 60\)

    3. \({Q_S} = 30\,\,\,\& \,\,\,{Q_J} = 30\)

    4. \({Q_S} = 60\,\,\,\& \,\,\,{Q_J} = 60\)

  14. Find the equilibrium price for the following demand and supply function:
    Demand function: \[P + {Q^2} + 3Q - 20 = 0\] Supply function: \[P - 3{Q^2} + 10Q = 5\]
    1. 2

    2. 4

    3. 6

    4. 8

  15. Given: \[Y = C + I + G\]\[C = {C_0} + bY\]\[I = {I_0}\]\[G = {G_0}\]\[C = 135\]\[b = 0.8\]\[{I_0} = 75\]\[{G_0} = 30\] find the equilibrium consumption level:
    1. 1095

    2. 1295

    3. 1000

    4. 1200

  16. Given:
    Demand function: \[3P + {Q^2} + 5Q - 102 = 0\] Supply function: \[P - 2{Q^2} + 3Q + 71 = 0\] find the equilibrium price:
    1. 2

    2. 4

    3. 6

    4. 8

  17. Find the numerical value of the equilibrium national income for the following model where investment is also function of national income: \[Y = C + I\]\[C = {C_0} + bY\]\[I = {I_0} + aY\]\[{C_0} = 65\]\[{I_0} = 70\]\[b = 0.6\]\[a = 0.2\]
    1. 600

    2. 625

    3. 675

    4. 700

  18. Find the equilibrium level of national income for the following national income determination model in the foreign sector: \[Y = C + I + G + (X - Z)\]\[C = {C_0} + bY\]\[Z = {Z_0} + zY\]\[I = {I_0} = 90\]\[G = {G_0} = 65\]\[X = {X_0} = 80\]\[{C_0} = 70\]\[{Z_0} = 40\]\[b = 0.9\]\[z = 0.15\]
    1. 2060

    2. 2000

    3. 1060

    4. 1000

  19. Given \[C = 102 + 0.7Y\]\[I = 150 - 100i\]\[{M_s} = 300\]\[{M_t} = 0.25Y\]\[{M_z} = 124 - 200i\] find equilibrium level of interest rate:
    1. 0.04

    2. 0.08

    3. 0.16

    4. 0.12

  20. Find the equilibrium national income for the following IS-LM model: \[C = 89 + 0.6Y\]\[I = 120 - 150i\]\[{M_s} = 275\]\[{M_t} = 0.1Y\]\[{M_z} = 240 - 250i\]
    1. 500

    2. 525

    3. 575

    4. 600

















    \(({Q_B}\,\,\& \,\,{Q_P})\)
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