MA Economics Entrance Mock Tests

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

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

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?

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?

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?

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?

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 ?

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?

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?

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?

In the Lagrange multiplier method, the multiplier λ indicates the sensitivity of the optimal value to changes in the constraint.

The Lagrange multiplier method is only applicable to problems with linear constraints.

When using the Lagrange multiplier method, the method can find:

In the context of Lagrange multipliers, the value of the multiplier λ  represents:

The Lagrange multiplier method is primarily used for handling:

The Lagrange multiplier method can be extended to handle multiple constraints by introducing a Lagrange multiplier for each constraint.

After setting up the Lagrange function L(x, y, λ), the next step involves:

If λ = 0 in the solution of a Lagrange multiplier problem, the constraint has no impact on the optimal solution.

The Lagrange multiplier method is used to:

If there are multiple constraints, the Lagrange multiplier method can be extended by introducing:

For the solution obtained from the Lagrange multiplier method to be valid, the solution must:

For a function f(x, y, z) subject to two constraints g(x, y, z) = 0 and h(x, y, z) = 0, how many Lagrange multipliers are required?

In the Lagrange multiplier method, if the gradients of the objective function and the constraint are not parallel at a point, that point cannot be an optimum.

If you have an objective function f(x, y) and one constraint g(x, y) = 0, how many equations will you solve when using the Lagrange multiplier method?

In the method of Lagrange multipliers, if f(x, y) is the function to be optimized and g(x, y) = 0 is the constraint, the system of equations to be solved is given by:

In the context of the Lagrange multiplier method, a constraint is typically represented as:

In economics, the Lagrange multiplier λ is often interpreted as:

In the method of Lagrange multipliers, the critical points are found by:

Consider the problem of maximizing f(x, y) = x² + y² subject to the constraint x + y = 1. The Lagrange function L(x, y ,λ) is:

What is the probability of 53 Sundays in a leap year

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

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

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

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

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

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

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?

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

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

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

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 :

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

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 :

If P(A) = P(B) = p, then P[A ∩ B] 

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

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

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

If A and B are independent events then

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

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? 

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?

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

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

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 

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

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

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

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?

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 n^th 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 Wilcoxon signed-rank test is used to compare:

In which situation would you use the McNemar test?

Which non-parametric test is used to determine whether there is a significant association between two ordinal variables?

Which test is used to compare the central tendency of two paired samples when the data does not follow a normal distribution?

Which of the following tests is used to compare the ranks of three or more related groups?

The Chi-square test of independence is most appropriate for which type of data?

Which of the following non-parametric tests can be used to determine if there is a significant difference between the medians of two related samples?

The Kolmogorov-Smirnov test is used to determine:

When assumptions of normality are not met, which test can be used as an alternative to the paired t-test?

Which test is used to assess whether there is a significant difference between the ranks of two related groups?

Which non-parametric test would be most appropriate for testing the differences among more than two independent groups?

Which non-parametric test is used to assess the strength and direction of association between two ranked variables?

Which of the following is a non-parametric test for determining if two samples come from the same distribution?

Which of the following is a non-parametric test used to compare two independent groups?

What is the primary advantage of using non-parametric tests over parametric tests?

Which non-parametric test is appropriate for testing the equality of medians among more than two related groups?

Which non-parametric test is used as an alternative to the one-way ANOVA when the assumptions of ANOVA are not met?

Which non-parametric test is used to test the association between two categorical variables?

The Spearman rank correlation coefficient is used to measure the relationship between:

Which non-parametric test is used to evaluate the difference between the expected and observed frequencies in categorical data?

Which of the following is not a monotonic transformation

An Indirect Utility function

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

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

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

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

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?

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

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

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

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

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

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

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

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

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

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

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

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

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

The market demand for a product is found by

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?

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

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

The demand curve for a typical good has

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

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

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

The Demand Curve for Inferior Goods (Not Giffen) is

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

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

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

Demand curve shifts due to change in price of the good

Increase or decrease in demand causes shift in the demand curve

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

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

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

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

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

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

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

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

Composite Demand is same as Joint Demand

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

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

If the demand function of the commodity is

Q = 100 - 5P

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

If the demand function of the commodity is

Q = 100 - 5P

at Price of 20, the quantity demanded is

If the demand function of the commodity is

Q = 100 - 5P

at Price of 10, the quantity demanded is

The Demand Function

Q = 100 + 5P

Represents

The demand Function 

Q = 100 - 5P

Represents

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

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

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

Velocity of money is : 

Quantity theory of money implies that :

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

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

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.

The equation of exchange states that

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.