ECONOMICS- PAGE 12
1. Shadow price refers to
(A) Change in the value of the constraint per unit change in the objective function.
(B) Change in the value of objective function per unit change in any one of the constraints.
(C) The change in the value of the primal solution per unit change in the dual solution.
(D) All the above.
Ans: B
2. There are 12 white balls, 8 red balls and 5 green balls in a basket. What is the probability that a ball drawn is either red or white ?
(A) 12/25
(B) 8/25
(C) 20/25
(D) 15/25
Ans: C
3. If the mean and variance of a given distribution is 8 and 0.25, then the coefficient of variation will be
(A) 4 percent
(B) 8 percent
(C) 12 percent
(D) 16 percent
Ans: D
4. Match the items in List – I with items in List – II:
List – I List – II
a. Various combinations that a consumer can purchase 1. Indifference Map
b. Various combination of two commodities that give the consumer equal satisfaction 2. Budget Line
c. A set of indifference curves 3. Consumer Equilibrium
d. Point of tangency of a budget line and indifference curve 4. Indifference Curves
Codes:
a b c d
(A) 2 4 1 3
(B) 2 1 4 3
(C) 4 1 2 3
(D) 4 2 1 3
Ans: A
5. Match the items in List – I with items in List – II:
List – I List – II
a. Residual Claimant Theory 1. Nut. K. Wicksel
b. Loanable Funds Theory 2. Bergson-Samuelson
c. Compensation Criteria 3. Walker
d. Social Welfare Function 4. Kaldor- Hicks
Codes:
a b c d
(A) 3 1 4 2
(B) 3 2 1 4
(C) 2 1 3 4
(D) 2 3 4 1
Ans: A
6. Assertion (A): An Iso Cost Line is a straight line.
Reason (R): The market rate of exchange between the two inputs is constant.
Codes:
(A) Both (A) and (R) are true and (R) is correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
Ans: A
7. Assertion (A): The rate of fall of MR Curve is more than twice the rate of fall of AR.
Reason (R): The MR & AR Curves are linear and negatively sloped.
Codes:
(A) Both (A) and (R) are true and (R) is correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not a correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
Ans: D
8. Which of the following is true with regard to peak-load pricing?
(a) It is applicable only for electrical public utilities.
(b) It leads to substitution in consumption from the period of peak demand to the period of low demand.
(c) It leads to reduction in consumer welfare.
(d) It leads to higher consumer welfare during peak periods when demand and marginal costs are low.
Codes:
(A) (a) & (b) only.
(B) (a) & (c) only.
(C) (b) and (d) only.
(D) (b) & (c) only.
Ans: C
9. In the long run, the autonomous consumption will
(A) Be infinity
(B) Remains unchanged
(C) Decline but will remain positive
(D) Be zero
Ans: D
10. Which of the following statements is not true in case of the balanced budget multiplier?
(A) The first round contractionary effect of additional tax revenue (–b, ΔT; b = MPC) is less than the explanatory effect of additional Government expenditure (= ΔG).
(B) The value of tax multiplier for proportional taxes is – b / (1 – b + bt) (where b = MPC and t = tax rate).
(C) The value of balanced budget multiplier is unity when taxes are lump sum taxes.
(D) None of the above
Ans: D
11. For a small economy in a flexible exchange rate system that begins in the long-run equilibrium point, a higher rate of inflation in the short run will be followed by
(A) An increase in the exchange rate and decline in net exports.
(B) Decrease in the exchange rate and an increase in net exports.
(C) Contractionary monetary policy and real exchange rate appreciation.
(D) Explanatory monetary policy and real exchange rate depreciation.
Ans: C
12. Speculative demand for money is zero when market rate of interest is
(A) more than the ‘critical rate’.
(B) More than the market rate of interest but less than the critical rate (i.e. capital gains occur).
(C) less than the market rate of interest.
(D) Lowest (i.e. in liquidity trap).
Ans: A
13. A positively sloped aggregate supply curve indicates that
(A) An increase in aggregate demand will be associated with an increase in the price level and no change in equilibrium output.
(B) An increase in aggregate demand will be associated with an increase in both the price level and equilibrium output.
(C) An increase in aggregate demand will be associated with an increase in equilibrium output and no change in the price level.
(D) None of the above.
Ans: B
14. The capacity creating aspect of investment in growth theory was emphasised by
(A) R.F. Harrod
(B) E.D. Domar
(C) R.M. Solow
(D) P.A. Samuelson
Ans: B
15. Which of the following is not an interpretation of the golden rule of accumulation?
(A) ‘Invest your profits, consume your wages.’
(B) The share of profit in output is equal to the ratio of investment to output.
(C) Saving ratio should be equal to the elasticity of output with respect to capital.
(D) None of the above.
Ans: D
16. The rational expectations hypothesis does not imply:
(A) People do not make systematic errors.
(B) On average the economy will be close to Long-run Average Supply (LAS) Curve.
(C) Policy makers have better information about the economy than other economic actors.
(D) Macroeconomic policy changes must came as a surprise in order to have an impact on the real economy.
Ans: C
17. Which of the following are true of disguised unemployment?
I. It represents potential savings.
II. The marginal productivity of labour is zero or extremely low.
III. It is due to the existence of joint family system.
IV. It is confined to the rural areas.
Codes:
(A) II and IV
(B) III and IV
(C) I, II and III
(D) I, II, III and IV
Ans: D
18. According to A.K. Sen, famines occurred in India because of
(A) Lack of proper distribution mechanism
(B) Lack of demand
(C) Lack of transportation
(D) Shortage of foodgrains
Ans: A
19. In India, Five Year Plan is formulated by
(A) C.S.O.
(B) Planning Commission
(C) Finance Commission
(D) Planning Ministry
Ans: D
20. In which year, the Wildlife Board in India was established?
(A) 1952
(B) 1968
(C) 1986
(D) 1992
Ans: A
21. Indian planning mechanism was criticised by
(A) A.K. Sen
(B) Jagdish Bhagwati
(C) L.K. Jha
(D) Bimal Jalan
Ans: B
22. ‘Aam Admi Bima Yojana’ provides social security to
(A) All labour in rural areas
(B) All landless labour living below poverty line in rural areas
(C) All labour in urban areas
(D) All labour in both rural and urban areas
Ans: B
23. List – I List – II
i. 1st Five Year Plan a. Agriculture
ii. 2nd Five Year Plan b. Heavy industries
iii. 5th Five Year Plan c. Anti-poverty Programmes
d. Luxury items
Codes:
(A) i – a, ii – b, iii – c
(B) i – d, ii – b, iii – c
(C) i – d, ii – c, iii – a
(D) i – c, ii – a, iii – b
Ans: A
24. Which State in India has the lowest Infant Mortality Rate?
(A) Maharashtra
(B) Goa
(C) Gujarat
(D) Kerala
Ans: D
25. Assertion (A): In the agricultural lending mechanism of India, moneylenders despite their usurious rates of interest are still predominant.
Reason (R): Most often the commercial banks could not meet the target of 18% of their total lending for the agricultural sector in the country.
Codes:
(A) Both (A) and (R) are true and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(C) (A) is true and (R) is false.
(D) (A) is false and (R) is true.
Ans: A
26. Which one of the following does not come under land reforms in India?
(a) Abolition of Intermediaries and Tenancy Legislation
(b) Ceiling on Land Holding and Co-operating Farming
(c) Tenancy Legislation and Technology Upgradation
(d) Abolition of Intermediaries and Green Revolution
Codes:
(A) (a) and (c)
(B) (a) and (d)
(C) (a) and (b)
(D) (a), (b), (c) and (d)
Ans: C
27. Assertion (A): In India, ‘Green Revolution’ was also criticized as Wheat Revolution.
Reason (R): The productivity of wheat in India during the1970’s was one of the highest in the world.
Codes:
(A) Both (A) and (R) are true and(R) is the correct explanation of (A).
(B) Both (A) and (R) are true, but(R) is not the correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
Ans: A
28. Assertion (A): Agricultural income is taxed by the Union Government.
Reason (R): Agriculture is a State subject.
Codes:
(A) Both (A) and (R) are true and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true and (R) is not the correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
Ans: D
29. Match items given in List – I with those in List – II:
List – I List – II
a. Green Revolution 1. Oilseeds
b. Yellow Revolution 2. Milk
c. White Revolution 3. Fish
d. Blue Revolution 4. Wheat
Codes:
a b c d
(A) 4 1 2 3
(B) 4 2 1 3
(C) 2 1 3 4
(D) 2 4 3 1
Ans: A
30. The fundamental cause for the collapse of the Bretton Woods System was
(A) The liquidity problem
(B) The adjustment problem
(C) The confidence problem
(D) All of the above
Ans: D
31. Hedging refers to
(A) The acceptance of a foreign exchange risk
(B) The covering of a foreign exchange risk
(C) Foreign exchange speculation
(D) Foreign exchange arbitrage
Ans: B
32. Members of the World Trade Organization are required to
(A) Eliminate all tariffs.
(B) Allocate quotas on a first come first basis.
(C) Prevent their firms from “dumping”.
(D) Enforce patent rights for patent holders from other countries.
Ans: D
33. Which of the following is not related with optimum currency area?
(A) Optimal geographical area for several currencies whose exchange rates are relatively pegged.
(B) Single currency do not fluctuate vis-à-vis other currencies.
(C) Single currency or the pegged currencies fluctuate jointly visà-vis other currencies.
(D) Optimal geographical area for a single currency.
Ans: B
34. Which of the following issues did the Uruguay Round not address?
(A) Migration
(B) Intellectual Property Rights
(C) Services
(D) Tariff
Ans: A
35. The experience with managed exchange rates since 1973
(A) Strongly supports a fixed exchange rate system.
(B) Strongly supports a freely flexible exchange rate system.
(C) Mildly supports a flexible exchange rate system.
(D) Supports some restriction on exchange rate fluctuations.
Ans: D
36. List – I List – II
a. Free trade area 1. No restrictions on trade and factor movement
b. Customs union 2. Trade is free and no Customs Duties
c. Common market 3. No Customs Duties but duties on nonmembers
d. Economic union 4. Advanced stage of integration
Codes:
a b c d
(A) 2 1 3 4
(B) 3 2 4 1
(C) 2 3 1 4
(D) 1 3 4 2
Ans: C
37. An example of a Euro currency is
(A) A Dollar deposit outside the U.S.
(B) A Pound Sterling deposit outside the U.K.
(C) A Mark deposit outside Germany
(D) All of the above
Ans: D
38. Which one of the following tax is within the jurisdiction of the State Governments as enumerated in List – II of the Constitution of India?
(A) Taxes other than stamp duties on transactions in stock exchange and future markets.
(B) Taxes on Railway freights and fares.
(C) Taxes on mineral rights subject to any limitations imposed by the Parliament.
(D) Rate of stamp duty in respect of certain financial documents.
Ans: C
39. Match the items given in List – I with those in List – II:
List – I List – II
I. Third Finance Commission 1. J.M. Shelat
II. Sixth Finance Commission 2. A.K. Chanda
III. Seventh Finance Commission 3. K.C. Pant
IV. Tenth Finance Commission 4. K. Brahmananda Reddy
Codes:
I II III IV
(A) 4 1 3 2
(B) 3 4 1 2
(C) 2 3 4 1
(D) 2 4 1 3
Ans: D
40. Which of the following are Government of India debt obligations?
I. State Provident Funds
II. Small Savings
III. Reserve Money
IV. Reserve Funds and Deposits
Codes:
(A) I and II are correct.
(B) I, II and IV are correct.
(C) II and IV are correct.
(D) I, II and III are correct.
Ans: B
41. Arrange the following in chronological order:
I. Task Force on Direct and Indirect Taxes (Kelkar Committee)
II. Replacement of State Sales Taxby Value Added Tax
III. Introduction of MODVAT
IV. Fiscal Responsibility and Budget Management Act
Codes:
(A) III, II, IV, I
(B) III, I, IV, II
(C) III, IV, I, II
(D) II, III, IV, I
Ans: B
42. Which of the following tax is introduced in India in 1953 and abolished in 1985?
(A) Estate Duty
(B) Expenditure Tax
(C) Gift Tax
(D) Agricultural Income-tax
Ans: A
43. Match different deficit indicators given in List – I with the value in List – II for the Union Budget 2013-14:
List – I List – II
i. Revenue deficit a. 1.5
ii. Effective revenue deficit b. 1.8
iii. Fiscal deficit c. 3.3
iv. Primary deficit d. 4.8
Codes:
i ii iii iv
(A) a c b d
(B) b c d a
(C) c b d c
(D) a d c b
Ans: C
44. As per the revised estimate, the plan expenditure of the budget estimate for 2012-13 in India has been lowered by
(A) 9.0 percent
(B) 15.0 percent
(C) 18.0 percent
(D) 23.0 percent
Ans: C
45. Find out the items which are not in the scope of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM):
(A) Internal earmarking within local body budgets for basic services to the urban poor.
(B) Provide legal and financial support to metro/mono-rail projects in urban areas.
(C) Earmarking of at least 20-25percent of developed land in all housing projects for the economically weaker sections and low income groups category.
(D) Implementation of a seven point charter for provisioning of seven basic entitlements/services.
Ans: B
46. Which Economic Survey has introduced a new chapter on “Sustainable Development and Climate Change”?
(A) Economic Survey 2004-05
(B) Economic Survey 2007-08
(C) Economic Survey 2009-10
(D) Economic Survey 2011-12
Ans: D
47. Match the different Five Year Plans of India given in List – I with the annual growth rate of National Income (at 2004-05 prices) given in List – II:
List – I List – II
i. Eighth Plan a. 5.5 percent
ii. Ninth Plan b. 6.7 percent
iii. Tenth Plan c. 7.5 percent
iv. Eleventh Plan d. 7.8 percent
Codes:
i ii iii iv
(A) b a c d
(B) a c d b
(C) b d a b
(D) d b c a
Ans: A
48. What has been the monthly per capita expenditure (Uniform Reference Period) for urban population of India (at 2004-05 prices) as per the 68th Round of NSSO (2011-12)?
(A) Rs. 707.24
(B) Rs.1,359.75
(C) Rs. 1,785.81
(D) Rs. 2,401.68
Ans: B
49. Which of the following programmes is not included in rural infrastructure development in India?
(A) Integrated Low Cost Sanitation Scheme (ILCS)
(B) Bharat Nirman
(C) Indira Awas Yojana (IAY)
(D) Total Sanitation Campaign (TSC)
Ans: A
50. For a firm in long-run equilibrium producing anallocatively efficient level of output where marginal cost is equal to demand, which of the following does not apply?
(A) Price is sufficient to cover the opportunity cost.
(B) Profit of the firm becomes zero.
(C) Price is sufficient to covercosts.
(D) This situation also satisfies the consumers.
Ans: B
(A) Change in the value of the constraint per unit change in the objective function.
(B) Change in the value of objective function per unit change in any one of the constraints.
(C) The change in the value of the primal solution per unit change in the dual solution.
(D) All the above.
Ans: B
2. There are 12 white balls, 8 red balls and 5 green balls in a basket. What is the probability that a ball drawn is either red or white ?
(A) 12/25
(B) 8/25
(C) 20/25
(D) 15/25
Ans: C
3. If the mean and variance of a given distribution is 8 and 0.25, then the coefficient of variation will be
(A) 4 percent
(B) 8 percent
(C) 12 percent
(D) 16 percent
Ans: D
4. Match the items in List – I with items in List – II:
List – I List – II
a. Various combinations that a consumer can purchase 1. Indifference Map
b. Various combination of two commodities that give the consumer equal satisfaction 2. Budget Line
c. A set of indifference curves 3. Consumer Equilibrium
d. Point of tangency of a budget line and indifference curve 4. Indifference Curves
Codes:
a b c d
(A) 2 4 1 3
(B) 2 1 4 3
(C) 4 1 2 3
(D) 4 2 1 3
Ans: A
5. Match the items in List – I with items in List – II:
List – I List – II
a. Residual Claimant Theory 1. Nut. K. Wicksel
b. Loanable Funds Theory 2. Bergson-Samuelson
c. Compensation Criteria 3. Walker
d. Social Welfare Function 4. Kaldor- Hicks
Codes:
a b c d
(A) 3 1 4 2
(B) 3 2 1 4
(C) 2 1 3 4
(D) 2 3 4 1
Ans: A
6. Assertion (A): An Iso Cost Line is a straight line.
Reason (R): The market rate of exchange between the two inputs is constant.
Codes:
(A) Both (A) and (R) are true and (R) is correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
Ans: A
7. Assertion (A): The rate of fall of MR Curve is more than twice the rate of fall of AR.
Reason (R): The MR & AR Curves are linear and negatively sloped.
Codes:
(A) Both (A) and (R) are true and (R) is correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not a correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
Ans: D
8. Which of the following is true with regard to peak-load pricing?
(a) It is applicable only for electrical public utilities.
(b) It leads to substitution in consumption from the period of peak demand to the period of low demand.
(c) It leads to reduction in consumer welfare.
(d) It leads to higher consumer welfare during peak periods when demand and marginal costs are low.
Codes:
(A) (a) & (b) only.
(B) (a) & (c) only.
(C) (b) and (d) only.
(D) (b) & (c) only.
Ans: C
9. In the long run, the autonomous consumption will
(A) Be infinity
(B) Remains unchanged
(C) Decline but will remain positive
(D) Be zero
Ans: D
10. Which of the following statements is not true in case of the balanced budget multiplier?
(A) The first round contractionary effect of additional tax revenue (–b, ΔT; b = MPC) is less than the explanatory effect of additional Government expenditure (= ΔG).
(B) The value of tax multiplier for proportional taxes is – b / (1 – b + bt) (where b = MPC and t = tax rate).
(C) The value of balanced budget multiplier is unity when taxes are lump sum taxes.
(D) None of the above
Ans: D
11. For a small economy in a flexible exchange rate system that begins in the long-run equilibrium point, a higher rate of inflation in the short run will be followed by
(A) An increase in the exchange rate and decline in net exports.
(B) Decrease in the exchange rate and an increase in net exports.
(C) Contractionary monetary policy and real exchange rate appreciation.
(D) Explanatory monetary policy and real exchange rate depreciation.
Ans: C
12. Speculative demand for money is zero when market rate of interest is
(A) more than the ‘critical rate’.
(B) More than the market rate of interest but less than the critical rate (i.e. capital gains occur).
(C) less than the market rate of interest.
(D) Lowest (i.e. in liquidity trap).
Ans: A
13. A positively sloped aggregate supply curve indicates that
(A) An increase in aggregate demand will be associated with an increase in the price level and no change in equilibrium output.
(B) An increase in aggregate demand will be associated with an increase in both the price level and equilibrium output.
(C) An increase in aggregate demand will be associated with an increase in equilibrium output and no change in the price level.
(D) None of the above.
Ans: B
14. The capacity creating aspect of investment in growth theory was emphasised by
(A) R.F. Harrod
(B) E.D. Domar
(C) R.M. Solow
(D) P.A. Samuelson
Ans: B
15. Which of the following is not an interpretation of the golden rule of accumulation?
(A) ‘Invest your profits, consume your wages.’
(B) The share of profit in output is equal to the ratio of investment to output.
(C) Saving ratio should be equal to the elasticity of output with respect to capital.
(D) None of the above.
Ans: D
16. The rational expectations hypothesis does not imply:
(A) People do not make systematic errors.
(B) On average the economy will be close to Long-run Average Supply (LAS) Curve.
(C) Policy makers have better information about the economy than other economic actors.
(D) Macroeconomic policy changes must came as a surprise in order to have an impact on the real economy.
Ans: C
17. Which of the following are true of disguised unemployment?
I. It represents potential savings.
II. The marginal productivity of labour is zero or extremely low.
III. It is due to the existence of joint family system.
IV. It is confined to the rural areas.
Codes:
(A) II and IV
(B) III and IV
(C) I, II and III
(D) I, II, III and IV
Ans: D
18. According to A.K. Sen, famines occurred in India because of
(A) Lack of proper distribution mechanism
(B) Lack of demand
(C) Lack of transportation
(D) Shortage of foodgrains
Ans: A
19. In India, Five Year Plan is formulated by
(A) C.S.O.
(B) Planning Commission
(C) Finance Commission
(D) Planning Ministry
Ans: D
20. In which year, the Wildlife Board in India was established?
(A) 1952
(B) 1968
(C) 1986
(D) 1992
Ans: A
21. Indian planning mechanism was criticised by
(A) A.K. Sen
(B) Jagdish Bhagwati
(C) L.K. Jha
(D) Bimal Jalan
Ans: B
22. ‘Aam Admi Bima Yojana’ provides social security to
(A) All labour in rural areas
(B) All landless labour living below poverty line in rural areas
(C) All labour in urban areas
(D) All labour in both rural and urban areas
Ans: B
23. List – I List – II
i. 1st Five Year Plan a. Agriculture
ii. 2nd Five Year Plan b. Heavy industries
iii. 5th Five Year Plan c. Anti-poverty Programmes
d. Luxury items
Codes:
(A) i – a, ii – b, iii – c
(B) i – d, ii – b, iii – c
(C) i – d, ii – c, iii – a
(D) i – c, ii – a, iii – b
Ans: A
24. Which State in India has the lowest Infant Mortality Rate?
(A) Maharashtra
(B) Goa
(C) Gujarat
(D) Kerala
Ans: D
25. Assertion (A): In the agricultural lending mechanism of India, moneylenders despite their usurious rates of interest are still predominant.
Reason (R): Most often the commercial banks could not meet the target of 18% of their total lending for the agricultural sector in the country.
Codes:
(A) Both (A) and (R) are true and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(C) (A) is true and (R) is false.
(D) (A) is false and (R) is true.
Ans: A
26. Which one of the following does not come under land reforms in India?
(a) Abolition of Intermediaries and Tenancy Legislation
(b) Ceiling on Land Holding and Co-operating Farming
(c) Tenancy Legislation and Technology Upgradation
(d) Abolition of Intermediaries and Green Revolution
Codes:
(A) (a) and (c)
(B) (a) and (d)
(C) (a) and (b)
(D) (a), (b), (c) and (d)
Ans: C
27. Assertion (A): In India, ‘Green Revolution’ was also criticized as Wheat Revolution.
Reason (R): The productivity of wheat in India during the1970’s was one of the highest in the world.
Codes:
(A) Both (A) and (R) are true and(R) is the correct explanation of (A).
(B) Both (A) and (R) are true, but(R) is not the correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
Ans: A
28. Assertion (A): Agricultural income is taxed by the Union Government.
Reason (R): Agriculture is a State subject.
Codes:
(A) Both (A) and (R) are true and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true and (R) is not the correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
Ans: D
29. Match items given in List – I with those in List – II:
List – I List – II
a. Green Revolution 1. Oilseeds
b. Yellow Revolution 2. Milk
c. White Revolution 3. Fish
d. Blue Revolution 4. Wheat
Codes:
a b c d
(A) 4 1 2 3
(B) 4 2 1 3
(C) 2 1 3 4
(D) 2 4 3 1
Ans: A
30. The fundamental cause for the collapse of the Bretton Woods System was
(A) The liquidity problem
(B) The adjustment problem
(C) The confidence problem
(D) All of the above
Ans: D
31. Hedging refers to
(A) The acceptance of a foreign exchange risk
(B) The covering of a foreign exchange risk
(C) Foreign exchange speculation
(D) Foreign exchange arbitrage
Ans: B
32. Members of the World Trade Organization are required to
(A) Eliminate all tariffs.
(B) Allocate quotas on a first come first basis.
(C) Prevent their firms from “dumping”.
(D) Enforce patent rights for patent holders from other countries.
Ans: D
33. Which of the following is not related with optimum currency area?
(A) Optimal geographical area for several currencies whose exchange rates are relatively pegged.
(B) Single currency do not fluctuate vis-à-vis other currencies.
(C) Single currency or the pegged currencies fluctuate jointly visà-vis other currencies.
(D) Optimal geographical area for a single currency.
Ans: B
34. Which of the following issues did the Uruguay Round not address?
(A) Migration
(B) Intellectual Property Rights
(C) Services
(D) Tariff
Ans: A
35. The experience with managed exchange rates since 1973
(A) Strongly supports a fixed exchange rate system.
(B) Strongly supports a freely flexible exchange rate system.
(C) Mildly supports a flexible exchange rate system.
(D) Supports some restriction on exchange rate fluctuations.
Ans: D
36. List – I List – II
a. Free trade area 1. No restrictions on trade and factor movement
b. Customs union 2. Trade is free and no Customs Duties
c. Common market 3. No Customs Duties but duties on nonmembers
d. Economic union 4. Advanced stage of integration
Codes:
a b c d
(A) 2 1 3 4
(B) 3 2 4 1
(C) 2 3 1 4
(D) 1 3 4 2
Ans: C
37. An example of a Euro currency is
(A) A Dollar deposit outside the U.S.
(B) A Pound Sterling deposit outside the U.K.
(C) A Mark deposit outside Germany
(D) All of the above
Ans: D
38. Which one of the following tax is within the jurisdiction of the State Governments as enumerated in List – II of the Constitution of India?
(A) Taxes other than stamp duties on transactions in stock exchange and future markets.
(B) Taxes on Railway freights and fares.
(C) Taxes on mineral rights subject to any limitations imposed by the Parliament.
(D) Rate of stamp duty in respect of certain financial documents.
Ans: C
39. Match the items given in List – I with those in List – II:
List – I List – II
I. Third Finance Commission 1. J.M. Shelat
II. Sixth Finance Commission 2. A.K. Chanda
III. Seventh Finance Commission 3. K.C. Pant
IV. Tenth Finance Commission 4. K. Brahmananda Reddy
Codes:
I II III IV
(A) 4 1 3 2
(B) 3 4 1 2
(C) 2 3 4 1
(D) 2 4 1 3
Ans: D
40. Which of the following are Government of India debt obligations?
I. State Provident Funds
II. Small Savings
III. Reserve Money
IV. Reserve Funds and Deposits
Codes:
(A) I and II are correct.
(B) I, II and IV are correct.
(C) II and IV are correct.
(D) I, II and III are correct.
Ans: B
41. Arrange the following in chronological order:
I. Task Force on Direct and Indirect Taxes (Kelkar Committee)
II. Replacement of State Sales Taxby Value Added Tax
III. Introduction of MODVAT
IV. Fiscal Responsibility and Budget Management Act
Codes:
(A) III, II, IV, I
(B) III, I, IV, II
(C) III, IV, I, II
(D) II, III, IV, I
Ans: B
42. Which of the following tax is introduced in India in 1953 and abolished in 1985?
(A) Estate Duty
(B) Expenditure Tax
(C) Gift Tax
(D) Agricultural Income-tax
Ans: A
43. Match different deficit indicators given in List – I with the value in List – II for the Union Budget 2013-14:
List – I List – II
i. Revenue deficit a. 1.5
ii. Effective revenue deficit b. 1.8
iii. Fiscal deficit c. 3.3
iv. Primary deficit d. 4.8
Codes:
i ii iii iv
(A) a c b d
(B) b c d a
(C) c b d c
(D) a d c b
Ans: C
44. As per the revised estimate, the plan expenditure of the budget estimate for 2012-13 in India has been lowered by
(A) 9.0 percent
(B) 15.0 percent
(C) 18.0 percent
(D) 23.0 percent
Ans: C
45. Find out the items which are not in the scope of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM):
(A) Internal earmarking within local body budgets for basic services to the urban poor.
(B) Provide legal and financial support to metro/mono-rail projects in urban areas.
(C) Earmarking of at least 20-25percent of developed land in all housing projects for the economically weaker sections and low income groups category.
(D) Implementation of a seven point charter for provisioning of seven basic entitlements/services.
Ans: B
46. Which Economic Survey has introduced a new chapter on “Sustainable Development and Climate Change”?
(A) Economic Survey 2004-05
(B) Economic Survey 2007-08
(C) Economic Survey 2009-10
(D) Economic Survey 2011-12
Ans: D
47. Match the different Five Year Plans of India given in List – I with the annual growth rate of National Income (at 2004-05 prices) given in List – II:
List – I List – II
i. Eighth Plan a. 5.5 percent
ii. Ninth Plan b. 6.7 percent
iii. Tenth Plan c. 7.5 percent
iv. Eleventh Plan d. 7.8 percent
Codes:
i ii iii iv
(A) b a c d
(B) a c d b
(C) b d a b
(D) d b c a
Ans: A
48. What has been the monthly per capita expenditure (Uniform Reference Period) for urban population of India (at 2004-05 prices) as per the 68th Round of NSSO (2011-12)?
(A) Rs. 707.24
(B) Rs.1,359.75
(C) Rs. 1,785.81
(D) Rs. 2,401.68
Ans: B
49. Which of the following programmes is not included in rural infrastructure development in India?
(A) Integrated Low Cost Sanitation Scheme (ILCS)
(B) Bharat Nirman
(C) Indira Awas Yojana (IAY)
(D) Total Sanitation Campaign (TSC)
Ans: A
50. For a firm in long-run equilibrium producing anallocatively efficient level of output where marginal cost is equal to demand, which of the following does not apply?
(A) Price is sufficient to cover the opportunity cost.
(B) Profit of the firm becomes zero.
(C) Price is sufficient to covercosts.
(D) This situation also satisfies the consumers.
Ans: B
51. Assertion (A) : Fisher’s Index No. is ideal Index No.
Reason (R) : Fisher’s Index satisfies time reversal and factor reversal tests.
Codes :
(A) Both (A) and (R) are true and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
Ans: A
52. What will be the value of Herfindahl-Hirschmann Index of market concentration for the following industry?
Share of firms Firm-1 Firm-2 Firm-3 Firm-4 Firm-5 Firm-6
Industry 30 25 15 15 10 5
(A) 55
(B) 35
(C) 2100
(D) None of the above
Ans: C
53. Make out a correct combination from the following sets I & II in the context of the industrial economics:
Set – I Set – II
i. SCP Approach a. James Buchanan
ii. Transaction Cost Theory b. Neoclassical Theory
iii. Public Choice Theory c. Herfindahl-Hirschmann Index
iv. Industrial Concentration d. Williamson
Codes:
i ii iii iv
(A) b d a c
(B) c d b c
(C) a c d b
(D) d b a c
Ans: A
54. Backward-bending supply curve of labour suggests that
(A) When wage rate increases, supply of labour declines.
(B) When wage rate declines, supply of labour increases.
(C) There is no relationship between wage rate and labour supply.
(D) When wage rate increases, initially labour supply increases and after some point with the increase in wage rate, labour supply decreases.
Ans: D
55. Who among the following is not associated with the collective bargaining by the labour with the management?
(A) R.G. Lipsey
(B) Neil W. Chamberlain
(C) Carl M. Stevens
(D) Bevars D. Mabry
Ans: A
56. The M1 definition of money is
(A) Currency outside banks and checking deposits
(B) Currency outside banks, checking deposits and travellers checks
(C) Currency outstanding and checking deposits
(D) Currency outstanding, checking deposits and money market deposit accounts
Ans: B
57. The biggest component of reserve money in India is
(A) Treasury bills
(B) Currency in circulation
(C) Bankers deposits with RBI
(D) Other deposits with RBI
Ans: B
58. The components of the organized sector of the money market
I. Bill market
II. Stock market
III. Gift-edged market
IV. Bank loan market
Codes:
(A) I and III are correct.
(B) I, III and IV are correct.
(C) I, II and IV are correct.
(D) I and IV are correct.
Ans: D
59. Assertion (A): The prices of Government securities in gift-edged market are not formed freely.
Reason (R): The Reserve Bank of India has a monopoly dealer position and the demand for Government securities has a captive nature.
Codes:
(A) (A) is true, but (R) is false.
(B) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
(C) (A) is not correct, but (R) is correct.
(D) Both (A) and (R) are correct and (R) is the correct explanation of (A).
Ans: D
60. Find out the correct answer from the codes given below:
Credit Rating Agencies in India
I. CRISIL
II. ICRA
III. TDICI
IV. CARE
Codes:
(A) I and II are correct.
(B) I, II and III are correct.
(C) I and IV are correct.
(D) I, II and IV are correct.
Ans: D
61. Regression coefficient is independent of change in
(A) Origin but not of scale
(B) Both origin and scale
(C) Scale but not of origin
(D) None of these
Ans: A
62. In a multiple regression with two independent variables and 12 observations F value calculated is to be tested. What will be degrees of freedom for numerator and denominator in testing procedure?
(A) 1 and 12
(B) 2 and 11
(C) 2 and 10
(D) 1 and 10
Ans: C
63. For a viable input-output system which conditions are postulated?
(A) Hawkins-Simon conditions
(B) Kuhn-Tucker conditions
(C) Bhagwati-Eckaus conditions
(D) Von Neumann conditions
Ans: A
64. Given that C.E.S. production function is
P = γ [δL–ρ + (1 – δ)K–ρ] –μ/ρ
List – I List – II
a. γ i. Distribution parameter
b. δ ii. Substitution parameter
c. ρ iii. Returns to scale parameter
d. μ iv. Efficiency parameter
Codes:
a b c d
(A) ii iii i iv
(B) iii iv ii i
(C) iv i ii iii
(D) i ii iii iv
Ans: C
65. Linear Programming Technique was developed for the first time by
(A) Koopmans
(B) Dantzig
(C) Leontief
(D) Mahalanobis
Ans: B
66. Estimate of Total Fertility Rate (TFR) from the given Age-Specific Fertility Rates (ASFR):
Age Group ASFR
15 – 19 19.6
20 – 24 147.3
25 – 29 132.9
30 – 34 56.2
35 – 39 18.1
40 – 44 3.8
45 – 49 1.0
(A) 1.56
(B) 1.86
(C) 2.39
(D) 2.62
Ans: B
67. Endogenous technological change is not caused by
(A) FDI
(B) Population size
(C) Population density
(D) Educational level
Ans: A
68. Match Group – I with Group– II :
Group – I Group – II
a. Variance i. Sampling distribution
b. Mode ii. Normal distribution
c. χ2 distribution iii. Measure of dispersion
d. Mesokurtic distribution iv. Measure of central tendency
Codes :
a b c d
(A) i iii ii iv
(B) iii iv i ii
(C) ii iv iii i
(D) iv ii i iii
Ans: B
69. Which of the following is not correct about a population pyramid?
(A) On the right side of the pyramid women’s age structure is shown.
(B) It shows age and sex distribution of a population.
(C) An expansive pyramid is narrow at the base but it expands as it moves up towards higher ages.
(D) Population pyramids can be used to find the economic dependents supported in a particular population.
Ans: C
70. The situation of people in villages and towns of strong emigration receiving high amount of remittances has been described as “private affluence and public squalor” by
(A) M. Todaro
(B) John K. Galbraith
(C) Arthur Lewis
(D) Gunar Myrdal
Ans: B
71. As per the latest SRS data, which of the following age-group has the lowest age-specific fertility rate in India ?
(A) 15-19
(B) 20-29
(C) 30-34
(D) 35-39
Ans: D
72. Suppose that observations are available on the monthly bond prices of 100 companies for five years. What type of data are these?
(A) Cross Sectional
(B) Time Series
(C) Panel
(D) Qualitative
Ans: C
73. What is the meaning of the term “heteroscedasticity”?
(A) The variance of errors is not constant.
(B) The variance of dependent variable is not constant.
(C) The errors are not linearly independent of one another.
(D) The errors have non-zero mean.
Ans: A
74. Which of the following estimation techniques are available for the estimation of over-identified systems of simultaneous equations?
(i) OLS
(ii) ILS
(iii) 2SLS
(iv) IV
Codes:
(A) (iii) only
(B) (iii) and (iv) only
(C) (ii), (iii) and (iv) only
(D) (i), (ii), (iii) and (iv)
Ans: B
75. Mercantilism was based on the ideology of
(A) Globalization
(B) Nationalism
(C) Regionalism
(D) Privatization and Globalisation
Ans: B
76. Policy of Protection will benefit
(A) Abundant factor of production
(B) Scarce factor of production
(C) Both (A) & (B) are correct
(D) None of the above
Ans: B
77. The Stolper-Samuelson Theorem postulates that the imposition of tariff by a nation causes the real income of the nation’s
(A) both and abundant factors to rise
(B) abundant factor to rise
(C) scarce factor to fall
(D) scarce factor to rise
Ans: D
78. Match the items of List – I and with items of List – II from the given codes :
List – I List – II
I. Adam Smith 1. Opportunity cost
II. David Ricardo 2. Factor endowment
III. Ohlin 3. Absolute advantage
IV. Haberler 4. Comparative advantage
Choose the correct code :
Codes :
I II III IV
(A) 3 4 2 1
(B) 4 2 1 3
(C) 2 3 4 1
(D) 1 2 3 4
Ans: A
79. Match List – I with List – II :
List – I List – II
I. Rybczynski Theorem a. The effect of tariffs on factor prices
II. Metzler Effect b. The effect of factor growth on production and growth
III. Stopler- Samuelson Theorem c. The effect of tariffs on domestic prices
IV. Immiserising growth d. The effect of growth on terms of trade
Codes :
I II III IV
(A) d c a b
(B) d a c b
(C) b a c d
(D) b c a d
Ans: D
80. Match items in List – I with the items in List – II :
List – I List – II
a. Rajiv Gandhi Udyami Mitra Yojana 1. Jointly set up by Government of India & SIDBI
b. Credit Guarantee Fund Trust of Medium and Small Enterprises 2. Lean Manufacturing
c. National Manufacturing Competitiveness Programme 3. Control of Cartels
d. National Competition Commission of India 4. Promotion of first generate entrepreneurs
Codes :
a b c d
(A) 4 1 2 3
(B) 4 2 1 3
(C) 4 3 1 2
(D) 3 4 1 2
Ans: A
81. Which of the following is not correct about the micro, small and medium enterprises in India ?
(A) It covers both registered and informal sectors.
(B) Its classification criteria is investment in plant and machinery.
(C) The fourth Census of the MSMEs is for the year 2009-10.
(D) According to the fourth Census of MSME, total registered MSME sector comprised 67.1 percent manufacturing units white 32.9 percent were service enterprises.
Ans: C
82. What is the ceiling on investment in plant and machinery for small enterprises in India ?
(A) Rs. 25 lakhs
(B) Rs. 5 crore
(C) Rs. 1 crore
(D) Rs. 10 crore
Ans: B
83. What is the weight of the manufacturing sector in the Industrial Production Index (2004-05 = 100) ?
(A) 69.0 percent
(B) 72.3 percent
(C) 75.5 percent
(D) 79.2 percent
Ans: C
84. Match items of List – I with items of List – II :
List – I List – II
a. Bharat Nirman Yojana 1. Rural Housing
b. National Food for Work Programme 2. Merged with SGSY
c. Indira Awas Yojana 3. Merged with SGRY
d. Supply of Improved Tool Kits to Rural Artisans 4. Rural Infrastructure
Codes :
a b c d
(A) 4 3 1 2
(B) 4 2 1 3
(C) 4 1 2 3
(D) 2 4 1 3
Ans: A
85. Which one of the following is not reserved for public sector ?
(A) Atomic energy
(B) Railways
(C) Insurance
(D) Port Trust of India
Ans: C
86. Assertion (A) : The public distribution system in India has close links with food security for the vulnerable segments of population.
Reason (R) : Public distribution system is failure in India.
Codes :
(A) Both (A) and (R) are true and (R) is correct explanation for (A).
(B) Both (A) and (R) are true and (R) is not correct explanation for (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
Ans: C
87. What is the share of agriculture sector in India’s National Income at present ?
(A) 5%
(B) 15%
(C) 25%
(D) 27%
Ans: B
88. The Service Area Approach was implemented under the purview of
(A) Lead Bank Scheme
(B) Integrated Rural Development Programme
(C) Training the Rural Youth for Self-employment
(D) Mahatma Gandhi National Rural Employment Guarantee Scheme
Ans: A
89. During the British Raj, the Mahalwari System in Indian Agriculture was introduced by
(A) Cornwallis
(B) Curzon
(C) Johnson
(D) W. Bentinck
Ans: D
90. Technology Mission on oilseeds was started in India in the year
(A) 1975
(B) 1980
(C) 1986
(D) 1992
Ans: C
91. High Yielding Varieties Programme in India does not include
(A) Wheat
(B) Pulses
(C) Jowar
(D) Maize
Ans: B
92. What will be the probable error, if number of items is 100 and r = + 0.802 ?
(a) 0.0141 (b) 0.0241 (c) 0.0341 (d) 0.0441
Ans: B
93. The farther the two regression lines from each other, the degree of correlation will be :
(a) Zero (b) Lesser (c) Greater (d) Does not matter
Ans: B
94. There will be only one regression line in case of two variables, if correlation is :
(a) High (b) Zero (c) Perfect (d) None of the above
Ans: C
95. An index number is ideal if it satisfies :
(a) Time reversal test only (b) Factor reversal test only (c) Both (a) and (b) (d) None of the above
Ans: C
96. The change in a variable over the period of time is measured by :
(a) mean (b) correlation (c) index number (d) dispersion
Ans: C
97. Values which divide the data into four, equal parts is known as :
(a) Percentile (b) Deciles (c) Quartiles (d) None of the above
Ans: C
98. If the rate of inflation is greater than the rate of interest, then the real rate of interest will be :
(a) Negative (b) Positive (c) Zero (d) None of the above
Ans: A
99. ‘Ogive Curve’ is drawn with the help of :
(a) Median (b) Cumulative Frequency Distribution (c) Mode (d) None of the above
Ans: B
100. In a chronological classification data are classified on the basis of following :
(a) Location (b) Time (c) Class-Interval (d) Attributes
Ans: B
Reason (R) : Fisher’s Index satisfies time reversal and factor reversal tests.
Codes :
(A) Both (A) and (R) are true and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
Ans: A
52. What will be the value of Herfindahl-Hirschmann Index of market concentration for the following industry?
Share of firms Firm-1 Firm-2 Firm-3 Firm-4 Firm-5 Firm-6
Industry 30 25 15 15 10 5
(A) 55
(B) 35
(C) 2100
(D) None of the above
Ans: C
53. Make out a correct combination from the following sets I & II in the context of the industrial economics:
Set – I Set – II
i. SCP Approach a. James Buchanan
ii. Transaction Cost Theory b. Neoclassical Theory
iii. Public Choice Theory c. Herfindahl-Hirschmann Index
iv. Industrial Concentration d. Williamson
Codes:
i ii iii iv
(A) b d a c
(B) c d b c
(C) a c d b
(D) d b a c
Ans: A
54. Backward-bending supply curve of labour suggests that
(A) When wage rate increases, supply of labour declines.
(B) When wage rate declines, supply of labour increases.
(C) There is no relationship between wage rate and labour supply.
(D) When wage rate increases, initially labour supply increases and after some point with the increase in wage rate, labour supply decreases.
Ans: D
55. Who among the following is not associated with the collective bargaining by the labour with the management?
(A) R.G. Lipsey
(B) Neil W. Chamberlain
(C) Carl M. Stevens
(D) Bevars D. Mabry
Ans: A
56. The M1 definition of money is
(A) Currency outside banks and checking deposits
(B) Currency outside banks, checking deposits and travellers checks
(C) Currency outstanding and checking deposits
(D) Currency outstanding, checking deposits and money market deposit accounts
Ans: B
57. The biggest component of reserve money in India is
(A) Treasury bills
(B) Currency in circulation
(C) Bankers deposits with RBI
(D) Other deposits with RBI
Ans: B
58. The components of the organized sector of the money market
I. Bill market
II. Stock market
III. Gift-edged market
IV. Bank loan market
Codes:
(A) I and III are correct.
(B) I, III and IV are correct.
(C) I, II and IV are correct.
(D) I and IV are correct.
Ans: D
59. Assertion (A): The prices of Government securities in gift-edged market are not formed freely.
Reason (R): The Reserve Bank of India has a monopoly dealer position and the demand for Government securities has a captive nature.
Codes:
(A) (A) is true, but (R) is false.
(B) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
(C) (A) is not correct, but (R) is correct.
(D) Both (A) and (R) are correct and (R) is the correct explanation of (A).
Ans: D
60. Find out the correct answer from the codes given below:
Credit Rating Agencies in India
I. CRISIL
II. ICRA
III. TDICI
IV. CARE
Codes:
(A) I and II are correct.
(B) I, II and III are correct.
(C) I and IV are correct.
(D) I, II and IV are correct.
Ans: D
61. Regression coefficient is independent of change in
(A) Origin but not of scale
(B) Both origin and scale
(C) Scale but not of origin
(D) None of these
Ans: A
62. In a multiple regression with two independent variables and 12 observations F value calculated is to be tested. What will be degrees of freedom for numerator and denominator in testing procedure?
(A) 1 and 12
(B) 2 and 11
(C) 2 and 10
(D) 1 and 10
Ans: C
63. For a viable input-output system which conditions are postulated?
(A) Hawkins-Simon conditions
(B) Kuhn-Tucker conditions
(C) Bhagwati-Eckaus conditions
(D) Von Neumann conditions
Ans: A
64. Given that C.E.S. production function is
P = γ [δL–ρ + (1 – δ)K–ρ] –μ/ρ
List – I List – II
a. γ i. Distribution parameter
b. δ ii. Substitution parameter
c. ρ iii. Returns to scale parameter
d. μ iv. Efficiency parameter
Codes:
a b c d
(A) ii iii i iv
(B) iii iv ii i
(C) iv i ii iii
(D) i ii iii iv
Ans: C
65. Linear Programming Technique was developed for the first time by
(A) Koopmans
(B) Dantzig
(C) Leontief
(D) Mahalanobis
Ans: B
66. Estimate of Total Fertility Rate (TFR) from the given Age-Specific Fertility Rates (ASFR):
Age Group ASFR
15 – 19 19.6
20 – 24 147.3
25 – 29 132.9
30 – 34 56.2
35 – 39 18.1
40 – 44 3.8
45 – 49 1.0
(A) 1.56
(B) 1.86
(C) 2.39
(D) 2.62
Ans: B
67. Endogenous technological change is not caused by
(A) FDI
(B) Population size
(C) Population density
(D) Educational level
Ans: A
68. Match Group – I with Group– II :
Group – I Group – II
a. Variance i. Sampling distribution
b. Mode ii. Normal distribution
c. χ2 distribution iii. Measure of dispersion
d. Mesokurtic distribution iv. Measure of central tendency
Codes :
a b c d
(A) i iii ii iv
(B) iii iv i ii
(C) ii iv iii i
(D) iv ii i iii
Ans: B
69. Which of the following is not correct about a population pyramid?
(A) On the right side of the pyramid women’s age structure is shown.
(B) It shows age and sex distribution of a population.
(C) An expansive pyramid is narrow at the base but it expands as it moves up towards higher ages.
(D) Population pyramids can be used to find the economic dependents supported in a particular population.
Ans: C
70. The situation of people in villages and towns of strong emigration receiving high amount of remittances has been described as “private affluence and public squalor” by
(A) M. Todaro
(B) John K. Galbraith
(C) Arthur Lewis
(D) Gunar Myrdal
Ans: B
71. As per the latest SRS data, which of the following age-group has the lowest age-specific fertility rate in India ?
(A) 15-19
(B) 20-29
(C) 30-34
(D) 35-39
Ans: D
72. Suppose that observations are available on the monthly bond prices of 100 companies for five years. What type of data are these?
(A) Cross Sectional
(B) Time Series
(C) Panel
(D) Qualitative
Ans: C
73. What is the meaning of the term “heteroscedasticity”?
(A) The variance of errors is not constant.
(B) The variance of dependent variable is not constant.
(C) The errors are not linearly independent of one another.
(D) The errors have non-zero mean.
Ans: A
74. Which of the following estimation techniques are available for the estimation of over-identified systems of simultaneous equations?
(i) OLS
(ii) ILS
(iii) 2SLS
(iv) IV
Codes:
(A) (iii) only
(B) (iii) and (iv) only
(C) (ii), (iii) and (iv) only
(D) (i), (ii), (iii) and (iv)
Ans: B
75. Mercantilism was based on the ideology of
(A) Globalization
(B) Nationalism
(C) Regionalism
(D) Privatization and Globalisation
Ans: B
76. Policy of Protection will benefit
(A) Abundant factor of production
(B) Scarce factor of production
(C) Both (A) & (B) are correct
(D) None of the above
Ans: B
77. The Stolper-Samuelson Theorem postulates that the imposition of tariff by a nation causes the real income of the nation’s
(A) both and abundant factors to rise
(B) abundant factor to rise
(C) scarce factor to fall
(D) scarce factor to rise
Ans: D
78. Match the items of List – I and with items of List – II from the given codes :
List – I List – II
I. Adam Smith 1. Opportunity cost
II. David Ricardo 2. Factor endowment
III. Ohlin 3. Absolute advantage
IV. Haberler 4. Comparative advantage
Choose the correct code :
Codes :
I II III IV
(A) 3 4 2 1
(B) 4 2 1 3
(C) 2 3 4 1
(D) 1 2 3 4
Ans: A
79. Match List – I with List – II :
List – I List – II
I. Rybczynski Theorem a. The effect of tariffs on factor prices
II. Metzler Effect b. The effect of factor growth on production and growth
III. Stopler- Samuelson Theorem c. The effect of tariffs on domestic prices
IV. Immiserising growth d. The effect of growth on terms of trade
Codes :
I II III IV
(A) d c a b
(B) d a c b
(C) b a c d
(D) b c a d
Ans: D
80. Match items in List – I with the items in List – II :
List – I List – II
a. Rajiv Gandhi Udyami Mitra Yojana 1. Jointly set up by Government of India & SIDBI
b. Credit Guarantee Fund Trust of Medium and Small Enterprises 2. Lean Manufacturing
c. National Manufacturing Competitiveness Programme 3. Control of Cartels
d. National Competition Commission of India 4. Promotion of first generate entrepreneurs
Codes :
a b c d
(A) 4 1 2 3
(B) 4 2 1 3
(C) 4 3 1 2
(D) 3 4 1 2
Ans: A
81. Which of the following is not correct about the micro, small and medium enterprises in India ?
(A) It covers both registered and informal sectors.
(B) Its classification criteria is investment in plant and machinery.
(C) The fourth Census of the MSMEs is for the year 2009-10.
(D) According to the fourth Census of MSME, total registered MSME sector comprised 67.1 percent manufacturing units white 32.9 percent were service enterprises.
Ans: C
82. What is the ceiling on investment in plant and machinery for small enterprises in India ?
(A) Rs. 25 lakhs
(B) Rs. 5 crore
(C) Rs. 1 crore
(D) Rs. 10 crore
Ans: B
83. What is the weight of the manufacturing sector in the Industrial Production Index (2004-05 = 100) ?
(A) 69.0 percent
(B) 72.3 percent
(C) 75.5 percent
(D) 79.2 percent
Ans: C
84. Match items of List – I with items of List – II :
List – I List – II
a. Bharat Nirman Yojana 1. Rural Housing
b. National Food for Work Programme 2. Merged with SGSY
c. Indira Awas Yojana 3. Merged with SGRY
d. Supply of Improved Tool Kits to Rural Artisans 4. Rural Infrastructure
Codes :
a b c d
(A) 4 3 1 2
(B) 4 2 1 3
(C) 4 1 2 3
(D) 2 4 1 3
Ans: A
85. Which one of the following is not reserved for public sector ?
(A) Atomic energy
(B) Railways
(C) Insurance
(D) Port Trust of India
Ans: C
86. Assertion (A) : The public distribution system in India has close links with food security for the vulnerable segments of population.
Reason (R) : Public distribution system is failure in India.
Codes :
(A) Both (A) and (R) are true and (R) is correct explanation for (A).
(B) Both (A) and (R) are true and (R) is not correct explanation for (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
Ans: C
87. What is the share of agriculture sector in India’s National Income at present ?
(A) 5%
(B) 15%
(C) 25%
(D) 27%
Ans: B
88. The Service Area Approach was implemented under the purview of
(A) Lead Bank Scheme
(B) Integrated Rural Development Programme
(C) Training the Rural Youth for Self-employment
(D) Mahatma Gandhi National Rural Employment Guarantee Scheme
Ans: A
89. During the British Raj, the Mahalwari System in Indian Agriculture was introduced by
(A) Cornwallis
(B) Curzon
(C) Johnson
(D) W. Bentinck
Ans: D
90. Technology Mission on oilseeds was started in India in the year
(A) 1975
(B) 1980
(C) 1986
(D) 1992
Ans: C
91. High Yielding Varieties Programme in India does not include
(A) Wheat
(B) Pulses
(C) Jowar
(D) Maize
Ans: B
92. What will be the probable error, if number of items is 100 and r = + 0.802 ?
(a) 0.0141 (b) 0.0241 (c) 0.0341 (d) 0.0441
Ans: B
93. The farther the two regression lines from each other, the degree of correlation will be :
(a) Zero (b) Lesser (c) Greater (d) Does not matter
Ans: B
94. There will be only one regression line in case of two variables, if correlation is :
(a) High (b) Zero (c) Perfect (d) None of the above
Ans: C
95. An index number is ideal if it satisfies :
(a) Time reversal test only (b) Factor reversal test only (c) Both (a) and (b) (d) None of the above
Ans: C
96. The change in a variable over the period of time is measured by :
(a) mean (b) correlation (c) index number (d) dispersion
Ans: C
97. Values which divide the data into four, equal parts is known as :
(a) Percentile (b) Deciles (c) Quartiles (d) None of the above
Ans: C
98. If the rate of inflation is greater than the rate of interest, then the real rate of interest will be :
(a) Negative (b) Positive (c) Zero (d) None of the above
Ans: A
99. ‘Ogive Curve’ is drawn with the help of :
(a) Median (b) Cumulative Frequency Distribution (c) Mode (d) None of the above
Ans: B
100. In a chronological classification data are classified on the basis of following :
(a) Location (b) Time (c) Class-Interval (d) Attributes
Ans: B