# Center for Development Studies (CDS) - Entrance Solutions (2012)

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1. #
2. C - Exogenous variable
3. D - Both A and B
4. B - Ratio of price levels in two countries
5. A - A situation of zero output growth and rising prices
6. C - Its sales minus its cost of intermediate inputs
7. B - Disposable personal income
8. C - $GDP \ deflator = \frac{Nominal \ GDP}{Real \ GDP}$
9. B - Depreciation

10. D - All of the above

11. C - The long run

12. D - Consumers' income

13. A - Consumer surplus is equal to zero
14. B - Larger at $P_{1}$ than at $P_{2}$
15. B - decreasing
16. C - Average variable cost
17. D - Perfectly elastic at market price
18. B - Substitution effect dominates the income effect

19. A - Labour intensive
20. C - Sunlight