# MA Economics Entrance Mock Tests

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### Mathematical Methods

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156

Time Allowed for this Test is 10 Minutes

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Combinations Test #1

3. The Paper has ten Questions
4. Time Allowed is 10 Minutes.
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1 / 10

In how many ways can 11 players be chosen out of 15 if a particular player is never chosen :

2 / 10

In how many ways can 11 players be chosen out of 15 if a particular player is always chosen :

3 / 10

A committee of 5 is to selected from among 6 boys and 5 girls. Determine the number of ways of selection if the committee is to consist of at least one boy and one girl?

4 / 10

A cricket team of 11 players is to be selected from 16 players including 5 bowlers and 2 wicket keepers. In how many ways can a team be selected so as to consist of exactly 3 bowlers and one wicket keeper?

5 / 10

A box contains two white balls, three black balls, and four red balls. In how many ways can three balls be drawn from the box if at least one black ball is to be included in the draw?

6 / 10

A candidate is required to answer 7 questions out of 12 questions which are divided into two groups of 6 questions each. He is not permitted to attempt more than 5 questions from either group. In how many ways can he choose 7 questions?

7 / 10

From a class of 25 students, 10 are to be chosen for an excursion. There are 3 students who decide that either all of them will join or none of them will join. In how many ways can they be chosen ?

8 / 10

A certain club consists of 5 men and 5 women. A 5-member committee consisting of 2 men and 3 women has to be constituted. Also, suppose that Mrs. F refuses to work with Mr. M.

How many ways are there of constituting a 5-member committee that ensures that both of them do not work together?

9 / 10

A certain club consists of 5 men and 5 women. A 5 member committee consisting of 2 men and 3 women has to be constituted. How many ways are there of constituting this committee?

10 / 10

A committee consisting of 3 men and 2 women is to be formed out of 6 men and 4 women. In how many ways this can be done if Mr. X and Mrs. Y are not to be included together?

The average score is 23%

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### Statistical Methods

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16

Time Allowed for this Test is 20 Minutes

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Probability Test #1

3. The Paper has twenty Questions
4. Time Allowed is 20 Minutes.
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1 / 20

What is the probability of 53 Sundays in a leap year

2 / 20

Tickets numbered 1 to 200 are mixed and a ticket is drawn at random from them. What is the probability that the ticket drawn is a multiple of 3

3 / 20

Two dice are thrown simultaneously. What is the probability of getting two numbers whose product is even?

4 / 20

What is the Probability of getting a sum 9 from two throws of a dice

5 / 20

Two dice are rolled simultaneously. The probability that total score is prime number is

6 / 20

Let A and B be two mutually exclusive events with positive probability each, defined on the same sample space. Find the correct answer:

7 / 20

An unbiased coin is tossed until a head appears. The expected number of tosses required is

8 / 20

A card is drawn at random from an ordinary deck of cards. If an ace is drawn you win Rs. 100; if a king is drawn you win Rs. 75; if a queen is drawn you win Rs. 50; and if a jack is drawn you win Rs. 25. What is the probability of winning at least Rs. 25? What would you expect to win on average?

9 / 20

Among 25 articles, 9 are defective, 6 have only minor defects and 3 have major defects. The probability that, if a selected article is defective, then the defect is major is

10 / 20

A student must choose one of the subjects - Physics, Chemistry or Mathematics for study. She is equally likely to choose Physics or Chemistry and twice as likely to choose Mathematics. The probability that student chooses Mathematics is

11 / 20

If A and B are independent events, P(A) = 0.5, P(A U B) = 0.7, then P(B) is

12 / 20

A car with six spark plugs is known to have two defective spark plugs. If two plugs are pulled at random, then the probability that both are defective is :

13 / 20

If E(XY) = 36, E(X) = 9, E(Y) = 4 then

14 / 20

Events A and B are equally likely and are independent. The probability of the event A and B is 0.36. The probability of A is :

15 / 20

If P(A) = P(B) = p, then P[A ∩ B]

16 / 20

Given P(A) = 0.5, P(B) = 0.4 if A and B are independent then P(A U B) is

17 / 20

If a fair coin is tossed twice, the probability of getting 'head' at least once is

18 / 20

If two fair dice are tossed, the probability that the sum of the points on the dice equals 7 is

19 / 20

If A and B are independent events then

20 / 20

Given P(A) = 0.4, P(A U B) = 0.7, and A and B are independent, P(B) is equal to

The average score is 58%

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0%
65

Time Allowed for this Test is 10 Minutes

Time Allowed for this test has Lapsed

Probability Test #5

3. The Paper has ten Questions
4. Time Allowed is 10 Minutes.
5. It is necessary to enter your valid Email id to attempt this test.

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1 / 10

Two patients share a hospital room for two days. Suppose that, on any given day, a person independently picks up an airborne infection with probability 1/4. An individual who is infected on the first day will certainly pass it to the other patient on the second day. Once contracted, the infection stays for at least two days. What is the probability that fewer than two patients have the infection by the end of the second day?

2 / 10

Suppose 1/10 of the population has a disease. If a person has the disease, then a test detects it with probability 8/10. If a person does not have the disease, then the test incorrectly shows the presence of the disease with probability 2/10. What is the probability that the person tested has the disease if the test indicates the presence of the disease?

3 / 10

There are 3 red and 5 black balls in an urn. You draw two balls in succession without replacing the first ball.
The probability that the second ball is red equals

4 / 10

An insurance policy-holder can submit up to 5 claims. The probability that the policyholder submits exactly n claims is pn, for n = 0, 1, 2, 3, 4, 5. It is known that
(a)  The difference between pn and pn + 1 is constant for n = 0, 1, 2, 3, 4, and

(b)  40% of the policyholders submit 0 or 1 claim.
What is the probability that a policy-holder submits 4 or 5 claims?

5 / 10

A tour operator has a bus that can accommodate 20 tourists. The operator knows that tourists may not show up, so he sells 21 tickets. The probability that an individual tourist will not show up is 0.02, independent of all other tourists. Each ticket costs 50, and is non-refundable if a tourist fails to show up. If a tourist shows up and a seat is not available, the tour operator has to pay 100 to that tourist. The expected revenue of the tour operator is

6 / 10

In a roll of two fair dice, X is the number on first die and Y is the number on second die. Which of the following statements is True

7 / 10

A family has two children, what is the probability that both are girls given that at least one child is girl?

8 / 10

A student is answering a multiple‐choice examination. Suppose a question has m possible answers. The student knows the correct answer with probability p. If the student knows the correct answer, then she picks that answer; otherwise, she picks randomly from the choices with probability 1/m each. Given that the student picked the correct answer, the probability that she knew the correct  answer is

9 / 10

Suppose two fair dice are tossed simultaneously. What is the probability that the total number of spots on the upper faces of the two dice is not divisible by 2, 3, or 5?

10 / 10

A coin toss has possible outcomes H and T with probabilities 3/4 and 1/4 respectively. A gambler observes a sequence of tosses of this coin until H occurs. Let the first H occur on the nth toss. If n is odd, then the gambler’s prize is −2n , and if n is even, then the gambler’s prize is 2n . What is the expected value of the gambler’s prize?

The average score is 28%

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### Micro Economics

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225

Time Allowed for this Test is 10 Minutes

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Utility Test #1

3. The Paper has ten Questions
4. Time Allowed is 10 Minutes.
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1 / 10

Which of the following is not a monotonic transformation

2 / 10

An Indirect Utility function

3 / 10

Suppose a consumers preferences over commodities 1 and 2 can be represented by utility function U(x1, x2) = min{x1, x2} where x1, x2 ≥ 0. The utility function of the consumer is

4 / 10

Which of the following represents the same preferences as U(x1, x2) = min{x1, x2} + max{x1, x2}

5 / 10

Which of the following represents the same preferences as U(x1, x2) = min{x1, x2} + max{x1, x2}

6 / 10

For a utility function representing strictly convex preferences, the marginal rate of substitution between two commodities must be

7 / 10

Suppose a consumer’s preference are given by the utility function u =4(x^0.5) + y . Suppose the consumer’s original equilibrium was x = 9, y = 10. If the consumption of x reduces to 4, how many units of y must he consume to remain on the same indifference curve?

8 / 10

Rohit consumes soft drink which is available in ½ litre and 1 litre bottles. He allows himself only half litre of soft drink at a time, so if he has a bottle of 1 litre he will throw ½ litre in the sink. Considering 1/2 litre bottle as good 1, what is his utility function

9 / 10

A consumer is indifferent between two hamburgers (good 1) and 3 Puri's (good 2) so his indifference curves are

10 / 10

A consumer is indifferent between two hamburgers (good 1) and 3 Puri's (good 2) so his utility function is

The average score is 37%

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1

Time Allowed for this Test is 20 Minutes

Time Allowed for this test has Lapsed

Demand Test #1

3. The Paper has Twenty Questions
4. Time Allowed is 20 Minutes.
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1 / 20

If the price of automobiles were to decrease substantially, the demand curve for automobiles would most likely

2 / 20

If the price of automobiles were to increase substantially, the demand curve for gasoline would most likely

3 / 20

As the price of a good increases, the change in the quantity demanded can be shown by

4 / 20

Holding all other factors constant, consumers demand more of a good the

5 / 20

According to the Law of Demand, the demand curve for a good will

6 / 20

The demand curve for a good connects points describing how much consumers

7 / 20

When two goods are substitutes, a shock that raises the price of one good causes the price of the other good to

8 / 20

If pizza and tacos are substitutes, a decrease in the price of tacos would lead to a

9 / 20

An increase in the demand curve for orange juice would be illustrated as a

10 / 20

If the price of automobiles were to decrease substantially, the demand curve for public transportation would most likely

11 / 20

The market demand for a product is found by

12 / 20

Bo Dacious buys 10 classical albums and 15 tubes of suntan lotion along with quantities of other goods. Suppose that the price of records rises by 90 cents per album and the price of suntan lotion falls by 60 cents per tube. Other prices and Bo’s income remain unchanged. What will Bo do?

13 / 20

If price rises, what happens to quantity demanded for a product?

14 / 20

If price rises, what happens to demand curve for a product?

15 / 20

The demand curve for a typical good has

16 / 20

all Giffen goods are essentially inferior but it is not necessary that all inferior goods are Giffen goods.

17 / 20

When Income of a consumer increases, the demand for Giffen goods will

18 / 20

When price of a good increases, the demand curve of its complimentary good

19 / 20

The Demand Curve for Inferior Goods (Not Giffen) is

20 / 20

If two commodities are complementary, then a rise in the price of one commodity will induce

The average score is 40%

0%

0%
3

Time Allowed for this Test is 20 Minutes

Time Allowed for this test has Lapsed

Demand Test #2

3. The Paper has Twenty Questions
4. Time Allowed is 20 Minutes.
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1 / 20

The fall in demand due to increase in the price of the good is called

2 / 20

Demand curve shifts due to change in the price of the related goods

3 / 20

Demand curve shifts due to change in price of the good

4 / 20

Increase or decrease in demand causes shift in the demand curve

5 / 20

Increase or Decrease in demand is also known as Movement along the same demand curve

6 / 20

The fall in demand due to decrease in the price of the substitute good is called

7 / 20

The rise in demand due to increase in the price of the substitute good is called

8 / 20

The fall in demand due to increase in the price of the complimentary good is called

9 / 20

The rise in demand due to decrease in the price of the complimentary good is called

10 / 20

The rise in demand due to decrease in the price of the good is called

11 / 20

When two or more than two goods are demanded together to satisfy a particular want, the demand is said to be

12 / 20

When a commodity can be put to several uses, it is said to possess

13 / 20

Composite Demand is same as Joint Demand

14 / 20

The rise in demand due to increase in the price of the substitute good is causes

15 / 20

The fall in demand due to decrease in the price of the substitute good is causes

16 / 20

If the demand function of the commodity is

Q = 100 - 5P

when Price changes from 10 to 20, the quantity demanded changes by

17 / 20

If the demand function of the commodity is

Q = 100 - 5P

at Price of 20, the quantity demanded is

18 / 20

If the demand function of the commodity is

Q = 100 - 5P

at Price of 10, the quantity demanded is

19 / 20

The Demand Function

Q = 100 + 5P

Represents

20 / 20

The demand Function

Q = 100 - 5P

Represents

The average score is 48%

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### Macro Economics

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42

Time Allowed for this Test is 10 Minutes

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Quantity Theory of Money Test #1

3. The Paper has ten Questions
4. Time Allowed is 10 Minutes.
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1 / 10

If the money supply is \$3 trillion and nominal GDP is \$12 trillion, the income velocity of money is :

2 / 10

If aggregate output is constant while the money supply and its velocity both double, the equation of exchange predicts that the price level will :

3 / 10

The Classical Quantity Theory of Money was based on assumptions that :

4 / 10

Velocity of money is :

5 / 10

Quantity theory of money implies that :

6 / 10

Given the following information :

Quantity of Money (M) = Rs. 4,800

Nominal GDP = Rs. 96,000

Real GDP = Rs. 48,000

What is the Velocity of money in this country

7 / 10

Given the following information :

Quantity of Money (M) = Rs. 4,800

Nominal GDP = Rs. 96,000

Real GDP = Rs. 48,000

What is the Price Level

8 / 10

Consider the following statements

A : Fisher’s view that velocity is fairly constant in the short run transforms the equation of exchange into the quantity theory money, which states that nominal income is determined solely by movements in the quantity of money.

B : For the classical economists, the quantity theory of money provided an explanation of movements in the price level.

9 / 10

The equation of exchange states that

10 / 10

You are given the following data on an economy in 2001 and 2007:
2001              2007

Money Supply                      200                300

Real GDP                               100                 150

Price Level                             10                     ?

The velocity of circulation is the same in both years.

According to the quantity theory of money what would be the value of the price level in 2007?

The average score is 42%

0%

0%
15

Time Allowed for this Test is 10 Minutes

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LM Curve Test #1

3. The Paper has ten Questions
4. Time Allowed is 10 Minutes.
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1 / 10

In the standard IS LM framework if you introduce endogenous money supply such that money supply depends positively on the nominal rate of interest, the corresponding rate of interest

2 / 10

Which of the following would make the LM curve flatter in the (Y, r) space?

3 / 10

Which of the following would make the LM curve flatter?

4 / 10

The LM curve slopes upward to the right because

5 / 10

The LM curve will shift to the

6 / 10

When LM curve is almost horizontal, a ________ change in the interest rate must be accompanied by a _________ change in the level of income in order to maintain money market equilibrium.

7 / 10

If demand for money is highly sensitive to the interest rate, then

8 / 10

If demand for money is relatively insensitive to the interest rate, then

9 / 10

The LM curve would be steeper

10 / 10

The LM curve would be steeper

The average score is 51%

0%

0%
103

Time Allowed for this Test is 10 Minutes

Time Allowed for this test has Lapsed

Solow Model Test #1

3. The Paper has ten Questions
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1 / 10

Investment increases proportionately with the increase in capital stock implies that, for a given rate of saving _______

2 / 10

In the Solow Model, The production function becomes __________ as k increases indicating that it gives _____________ marginal product of capital

3 / 10

The aggregate production function for the Solow growth model assumes (A) ___________ returns to scale and (B) _____________marginal productivity of labour and capital.

4 / 10

In the Solow Model, the point where investment is equal to depreciation is known as the ______________.

5 / 10

According to the Solow Model, _____________________ is a function of capital.

6 / 10

Consider an economy described by the following production function :

F(K, L) = K0.5L0.5

Assume that the rate of depreciation is 10% per year and rate of saving is 30%. Find the steady state level of Investment of Solow’s model.

7 / 10

Consider an economy described by the following production function :

F(K, L) = K0.5L0.5

Assume that the rate of depreciation is 10% per year and rate of saving is 30%. Find the steady state capital stock per worker of Solow’s model.

8 / 10

In the Solow Model, the change in saving rate produces

9 / 10

In the Solow Model, the economy which is not at steady state

10 / 10

In the Solow Model, at the steady state we have

The average score is 40%

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### International Economics

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33

Time Allowed for this Test is 10 Minutes

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Ricardian Theory Test #1

3. This Test has ten Questions
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1 / 10

Malaysia has 200 units of labor, while there are 400 units of labor in Indonesia. When they produce, the countries have the following unit labor requirements.

Malaysia     Indonesia

Cameras             10                  20

Rugs                    10                  40

For which product does Malaysia have comparative advantage?

2 / 10

Malaysia has 200 units of labor, while there are 400 units of labor in Indonesia. When they produce, the countries have the following unit labor requirements.

Malaysia     Indonesia

Cameras             10                  20

Rugs                    10                  40

What is the relative price of rugs to cameras in Indonesia if there is no trade?

3 / 10

Suppose that a worker in Freedonia can produce either 6 units of corn or 2 units of wheat per year, and a worker in Sylvania can produce either 2 units of com or 6 units of wheat per year. Each nation has 10 workers. Without trade, Freedonia produces and consumes 30 units of corn and 10 units of wheat per year. Sylvania produces and consumes 10 units of corn and 30 units of wheat. Suppose that trade is then initiated between the two countries, and Freedonia sends 30 units of corn to Sylvania in exchange for 30 units of wheat. Sylvania will now be able to consume a maximum of

4 / 10

The before-trade price of fish in Denmark is \$10.00 per pound. The world price of fish is \$6.00 per pound. Denmark is a price-taker in the fish market. If Denmark begins to allow trade in fish, its consumers of fish will become:

5 / 10

Suppose that a worker in Freedonia can produce either 6 units of corn or 2 units of wheat per year, and a worker in Sylvania can produce either 2 units of com or 6 units of wheat per year. Each nation has 10 workers. Without trade, Freedonia produces and consumes 30 units of corn and 10 units of wheat per year. Sylvania produces and consumes 10 units of corn and 30 units of wheat. Suppose that trade is then initiated between the two countries, and Freedonia sends 30 units of corn to Sylvania in exchange for 30 units of wheat. Sylvania will now be able to consume a maximum of

6 / 10

The Ricardian Theory of comparative advantage states that a country has a comparative advantage in widgets if

7 / 10

The production possibilities of two countries, Homeland and Foreign, capable of producing two goods, cloth and wheat, are given as follows:

Output per labour year

Country         Cloth          Wheat

Homeland      250             200

Foreign           300             400

Homeland and Foreign would be willing to trade with each other if the relative price of cloth is set at

8 / 10

The production possibilities of two countries, Homeland and Foreign, capable of producing two goods, cloth and wheat, are given as follows:

Output per labour year

Country         Cloth          Wheat

Homeland      250             200

Foreign           300             400

Then each country can benefit if

9 / 10

The theory of Comparative Advantage in a two country, two commodity world can only work if

10 / 10

The fixed labour requirements per unit of wine and clothing production before trade for England and Portugal are given below :
Wine         Clothing

England          6                    10

Portugal         3                      5

If trade opens up between England and Portugal, what will be the pattern of trade according to comparative advantage?

The average score is 31%

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### Logic & Reasoning

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14

Time Allowed for this Test is 10 Minutes

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Logic & Reasoning Test #1

3. The Paper has ten Questions
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1 / 10

(i) Four students, named P, Q, R and S all opted for different subjects -  Economics, History, Physics and Chemistry

(ii) Q opted neither for Physics nor for History.

(iii) S opted neither for Physics nor for Chemistry.

(iv) If Q did not opt for Chemistry, then R did not opt for Physics.

(v) P opted neither for Physics nor for History.

Determine, Economics was opted by which student

2 / 10

(i) Four students, named P, Q, R and S all opted for different subjects -  Economics, History, Physics and Chemistry

(ii) Q opted neither for Physics nor for History.

(iii) S opted neither for Physics nor for Chemistry.

(iv) If Q did not opt for Chemistry, then R did not opt for Physics.

(v) P opted neither for Physics nor for History.

Determine, Q opted which subjected

3 / 10

Only one of the following three statements regarding the number of balls in an urn is true :

(i) There are at least 100 balls in the urn

(ii) There are less than 100 balls in the urn

(iii) There is at least one balls in the urn

How many balls are there in the urn

4 / 10

Three trucks, A, B and C are used for transporting wheat and rice. The following information is given:

(i) If A carried wheat, then B carried rice

(ii) If A carried rice, then C carried wheat

(i) If B carried wheat, then C carried rice

Which truck always carried the same thing?

5 / 10

Linda is 31 years old, single, outspoken, and very bright. She studied in philosophy. As a student, she was deeply concerned with issues of discrimination and social justice, and also participated in anti-nuclear demonstrations. Consider the following two situations :

(i) Linda is a bank teller.

(ii) Linda is a bank teller and is active in the feminist movement.

Which of the following claims must be correct?

6 / 10

Two men, starting at the same point, walk in opposite directions for 4 meters, turn left and walk another 3 meters. what is the distance between them.

7 / 10

Which number comes next in the following series of numbers?

2, 3, 5, 7, 11, 13

8 / 10

Continue the following number series with the group of numbers below which best continues the series

1, 10, 3, 9, 5, 8, 7, 7, 9, 6

9 / 10

Three sportspersons A, B and C each made two statements given below :

A's Statements :

(i) I do not belong to the Hockey team

(ii) Mr. D is on the Soccer team.

B's Statements :

(i) I do not belong to the Soccer team

(ii) Mr. D is on the Cricket team.

C's Statements :

(i) I do not belong to the Cricket team

(ii) Mr. D is on the Hockey team.

Both statements made by the person who belongs to the hockey team are true;

Both statements made by the person who belongs to the Soccer team are false; and

the person who belong to the Cricket team made one true statement and one false statement.

Determine, The person who belongs to Cricket Team

10 / 10

Three sportspersons A, B and C each made two statements given below :

A's Statements :

(i) I do not belong to the Hockey team

(ii) Mr. D is on the Soccer team.

B's Statements :

(i) I do not belong to the Soccer team

(ii) Mr. D is on the Cricket team.

C's Statements :

(i) I do not belong to the Cricket team

(ii) Mr. D is on the Hockey team.

Both statements made by the person who belongs to the hockey team are true;

Both statements made by the person who belongs to the Soccer team are false; and

the person who belong to the Cricket team made one true statement and one false statement.

Determine, Mr. D is on the