Economics

The unemployment rate is calculated as:

[ \text{Unemployment Rate} = \frac{\text{Unemployed}}{\text{Labor Force}} \times 100 ]

Labor force = Employed + Unemployed = 230,000 + 20,000 = 250,000

[ \text{Unemployment Rate} = \frac{20{,}000}{250{,}000} \times 100 = 8% ]

So the correct answer is (a) 8%.

Let original price = Rs 100 and original sales = 100 units, so original revenue = Rs 10,000.

New price = 100 − 30% = Rs 70. New sales = 100 + 20% = 120 units.

New revenue = 70 × 120 = Rs 8,400.

Change = (8,400 − 10,000)/10,000 × 100 = −16%, i.e. a 16% fall in revenue.

(a) 16% fall

(d) Sovereign debt

The Eurozone crisis that began in 2009-10 was a sovereign debt crisis. Countries such as Greece, Ireland, Portugal, Spain and Italy could not refinance their government debt, which also strained their banks. It had nothing to do with appreciation of the US dollar.

(b) 1973

After the Yom Kippur War of October 1973, Arab members of OPEC imposed an oil embargo on countries supporting Israel. Crude prices rose more than fourfold, from about $3 to over$12 per barrel, causing the first global oil crisis.

(c) Alfred Marshall

Welfare economics is credited to Alfred Marshall, who made human well-being central to economics in Principles of Economics (1890). A.C. Pigou later developed it in The Economics of Welfare. Adam Smith predates the field, Karl Marx is the critic of capitalism, and Robert Owen was a utopian socialist.

Decision Making

Amartya Sen won the Nobel Memorial Prize in Economic Sciences in 1998 for his contributions to welfare economics and social choice theory. His work dealt with decision-making in collective choice, including how individual preferences are aggregated into social decisions.

(c) 7%

Nepal Rastra Bank's monetary policy for fiscal year 2067/68 (2010/11) projected average inflation of about 7 percent.

(d) 5.5%

Nepal Rastra Bank's monetary policy for 2067/68 (2010/11) projected GDP growth of 5.5 percent.

(d) None of the above

Elinor Ostrom and Oliver E. Williamson won the Nobel Prize in Economics in 2009 (for her work on economic governance/commons and his on the theory of the firm). The 2010 prize went to Peter A. Diamond, Dale T. Mortensen and Christopher A. Pissarides for their analysis of markets with search frictions. Since none of them appears in the options, the correct choice is (d).