ECONOMICS- PAGE 3
1. Match the items in List-I and List-II and answer from the codes given below :
List – I List - II
(a) Standard Deviation (i) Positively skewed distribution
(b) Stratified Random Sampling (ii) Analysis of attributes
(c) Coefficient of Association (iii) Measure of dispersion
(d) Mean > Mode (iv) Probability based sampling
Codes :
(a) (b) (c) (d)
(1) (iv) (ii) (iii) (i)
(2) (i) (ii) (iii) (iv)
(3) (iv) (iii) (ii) (i)
(4) (iii) (iv) (ii) (i)
Ans: 4
2. A cartel aims at maximising
(1) individual profits (2) industry profits
(3) share of output of members (4) goodwill of the members
Ans: 2
3. The statement that, “no one can be made better off without making someone worse off” describes which of the following ?
(1) Pareto Optimum (2) Nash Equilibrium
(3) Low level Equilibrium Trap (4) Cournot’s Equilibrium
Ans: 1
4. Slutsky equation explains the
(1) Demand for durable goods.
(2) Supply of durable goods.
(3) Split between price, income and substitution effects.
(4) Demand for rare or non-reproducible goods
Ans: 3
5. L shaped average cost curve is witnessed in the large firms because
(1) Only the law of increasing returns operates.
(2) The law of constant returns to scale operates.
(3) Only the law of constant return operates.
(4) The operation of law of decreasing returns is continuously postponed.
Ans: 4
6. Consider the following statements regarding the long run equilibrium in the monopolistic market.
I. Firms are in no profit no loss situation.
II. There is no entry or exit of the firms.
Which among the above statements are true ? Answer from the code below :
Code :
(1) Only I is true. (2) Only II is true.
(3) Both I and II are true. (4) Neither I nor II are true.
Ans: 3
7. Which of the following is not a problem of Insurance Markets ?
(1) Adverse selection (2) Moral Hazard
(3) Asymmetric Information (4) Principal-agent problem
Ans: 4
8. In consumption, inferior goods have
(1) Negative income effect (2) Positive income effect
(3) Zero income effect (4) Infinite income effect
Ans: 1
9. Consider the following statements :
I. Inflation is advantageous to debtors.
II. Inflation is advantageous to the bond-holders.
Which of the statements given above is/are correct ?
Codes :
(1) I only (2) II only
(3) Both I and II (4) Neither I nor II
Ans: 1
10. ‘Near money’ is correctly defined as an
(1) asset which has 100% liquidity.
(2) asset which has no store of value function.
(3) asset which is a medium of exchange.
(4) asset which fulfils the store of value function and can be converted into a medium of exchange at a short notice.
Ans: 4
11. Match the following :
List – I List – II
(Multiplier)
A. MPC = 0.2 (i) K = 2
B. MPS = 0.5 (ii) K = 1.66
C. MPS = 0.75 (iii) K = 1.33
D. MPC = 0.4 (iv) K = 1.25
Select the correct answer from the codes given below :
Codes :
A B C D
(1) (i) (ii) (iii) (iv)
(2) (ii) (iv) (i) (iii)
(3) (iv) (i) (iii) (ii)
(4) (iii) (i) (iv) (ii)
Ans: 3
12. In the context of steady state growth in Solow’s model, the output growth rate overtime will be
(1) increasing (2) decreasing
(3) constant (4) fluctuating
Ans: 3
13. Who among the following economists assume dualism in the economy ?
I. Ranis and Fei II. D. Ricardo
III. Robert Solow IV. R. Harrod
Answer from the codes given below :
Codes :
(1) All the four above (2) Only I and II
(3) Only IV (4) I, II and III
Ans: 2
14. Who among the following, originally, formulated the ‘Turnpike Theorem’ ?
(1) Dorfman, Samuelson and Solow (2) Radner
(3) Koopmans (4) Von Neumann and Morgenstern
Ans: 1
15. Backward and forward linkages are relevant for which kind of growth strategy ?
(1) Unbalanced growth (2) Trickle down growth
(3) Balanced growth (4) Equilibrium growth
Ans: 1
16. ‘Reserve Army of labour’ term was used by who among the following economists ?
(1) J. Schumpeter (2) J.R. Hicks
(3) Karl Marx (4) T.R. Malthus
Ans: 3
17. Which production function admits both Harrod-neutral and Hicks-neutral technical progress ?
(1) Cobb-Douglas (2) C.E.S.
(3) V.E.S. (4) None of the above
Ans: 1
18. Match the following :
List – I List - II
(Plan Model) (Proposer)
A. Bombay Plan (i) Sriman Narayan
B. Gandhian Plan (ii) M.N. Roy
C. People’s Plan (iii) Jai Prakash Narain
D. Sarvodaya Approach (iv) Birla and Tata Group
Select the correct answer from the codes given below :
Codes :
A B C D
(1) (iv) (i) (ii) (iii)
(2) (i) (ii) (iii) (iv)
(3) (iii) (ii) (iv) (i)
(4) (i) (iv) (ii) (iii)
Ans: 1
19. Which among the following is not a criterion for declaring special category state ?
(1) Over population (2) Poor infrastructure
(3) Hilly and difficult terrain (4) Non-viable state finances
Ans: 1
20. For the testing of consistency and viability of a planning project, which of the prices are used ?
(1) Market Price (2) Shadow Price
(3) Administered Price (4) Controlled Price
Ans: 2
21. In which of the Five Year Plans in India, for the first time an extensive input-output model was used ?
(1) First Plan (2) Second Plan
(3) Third Plan (4) Seventh Plan
Ans: 3
22. Who among the following economists developed the Reinvestment-Criterion ?
(1) Walter Galenson and Harvey Leibenstein
(2) A. K. Sen
(3) Maurice Dobb
(4) None of the above
Ans: 1
23. Area approach to decentralised planning in India was advocated by who among the following ?
(1) D.R. Gadgil (2) K.N. Raj
(3) Raj Krishna (4) Pranav Mukherjee
Ans: 1
24. Which amongst the following is included in the Capital account of the Balance of payments ?
I. Foreign loans
II. Foreign Direct Investment
III. Private Remittances
Choose the correct answer from the codes below :
Codes :
(1) All the three. (2) I and III
(3) II and III (4) I and II
Ans: 4
25. Which amongst the following options is correct for a teaser loan ?
(1) It is an introductory rate of interest.
(2) This rate is permanent in nature.
(3) Both (1) and (2) are correct.
(4) Neither (1) nor (2) are correct.
Ans: 1
List – I List - II
(a) Standard Deviation (i) Positively skewed distribution
(b) Stratified Random Sampling (ii) Analysis of attributes
(c) Coefficient of Association (iii) Measure of dispersion
(d) Mean > Mode (iv) Probability based sampling
Codes :
(a) (b) (c) (d)
(1) (iv) (ii) (iii) (i)
(2) (i) (ii) (iii) (iv)
(3) (iv) (iii) (ii) (i)
(4) (iii) (iv) (ii) (i)
Ans: 4
2. A cartel aims at maximising
(1) individual profits (2) industry profits
(3) share of output of members (4) goodwill of the members
Ans: 2
3. The statement that, “no one can be made better off without making someone worse off” describes which of the following ?
(1) Pareto Optimum (2) Nash Equilibrium
(3) Low level Equilibrium Trap (4) Cournot’s Equilibrium
Ans: 1
4. Slutsky equation explains the
(1) Demand for durable goods.
(2) Supply of durable goods.
(3) Split between price, income and substitution effects.
(4) Demand for rare or non-reproducible goods
Ans: 3
5. L shaped average cost curve is witnessed in the large firms because
(1) Only the law of increasing returns operates.
(2) The law of constant returns to scale operates.
(3) Only the law of constant return operates.
(4) The operation of law of decreasing returns is continuously postponed.
Ans: 4
6. Consider the following statements regarding the long run equilibrium in the monopolistic market.
I. Firms are in no profit no loss situation.
II. There is no entry or exit of the firms.
Which among the above statements are true ? Answer from the code below :
Code :
(1) Only I is true. (2) Only II is true.
(3) Both I and II are true. (4) Neither I nor II are true.
Ans: 3
7. Which of the following is not a problem of Insurance Markets ?
(1) Adverse selection (2) Moral Hazard
(3) Asymmetric Information (4) Principal-agent problem
Ans: 4
8. In consumption, inferior goods have
(1) Negative income effect (2) Positive income effect
(3) Zero income effect (4) Infinite income effect
Ans: 1
9. Consider the following statements :
I. Inflation is advantageous to debtors.
II. Inflation is advantageous to the bond-holders.
Which of the statements given above is/are correct ?
Codes :
(1) I only (2) II only
(3) Both I and II (4) Neither I nor II
Ans: 1
10. ‘Near money’ is correctly defined as an
(1) asset which has 100% liquidity.
(2) asset which has no store of value function.
(3) asset which is a medium of exchange.
(4) asset which fulfils the store of value function and can be converted into a medium of exchange at a short notice.
Ans: 4
11. Match the following :
List – I List – II
(Multiplier)
A. MPC = 0.2 (i) K = 2
B. MPS = 0.5 (ii) K = 1.66
C. MPS = 0.75 (iii) K = 1.33
D. MPC = 0.4 (iv) K = 1.25
Select the correct answer from the codes given below :
Codes :
A B C D
(1) (i) (ii) (iii) (iv)
(2) (ii) (iv) (i) (iii)
(3) (iv) (i) (iii) (ii)
(4) (iii) (i) (iv) (ii)
Ans: 3
12. In the context of steady state growth in Solow’s model, the output growth rate overtime will be
(1) increasing (2) decreasing
(3) constant (4) fluctuating
Ans: 3
13. Who among the following economists assume dualism in the economy ?
I. Ranis and Fei II. D. Ricardo
III. Robert Solow IV. R. Harrod
Answer from the codes given below :
Codes :
(1) All the four above (2) Only I and II
(3) Only IV (4) I, II and III
Ans: 2
14. Who among the following, originally, formulated the ‘Turnpike Theorem’ ?
(1) Dorfman, Samuelson and Solow (2) Radner
(3) Koopmans (4) Von Neumann and Morgenstern
Ans: 1
15. Backward and forward linkages are relevant for which kind of growth strategy ?
(1) Unbalanced growth (2) Trickle down growth
(3) Balanced growth (4) Equilibrium growth
Ans: 1
16. ‘Reserve Army of labour’ term was used by who among the following economists ?
(1) J. Schumpeter (2) J.R. Hicks
(3) Karl Marx (4) T.R. Malthus
Ans: 3
17. Which production function admits both Harrod-neutral and Hicks-neutral technical progress ?
(1) Cobb-Douglas (2) C.E.S.
(3) V.E.S. (4) None of the above
Ans: 1
18. Match the following :
List – I List - II
(Plan Model) (Proposer)
A. Bombay Plan (i) Sriman Narayan
B. Gandhian Plan (ii) M.N. Roy
C. People’s Plan (iii) Jai Prakash Narain
D. Sarvodaya Approach (iv) Birla and Tata Group
Select the correct answer from the codes given below :
Codes :
A B C D
(1) (iv) (i) (ii) (iii)
(2) (i) (ii) (iii) (iv)
(3) (iii) (ii) (iv) (i)
(4) (i) (iv) (ii) (iii)
Ans: 1
19. Which among the following is not a criterion for declaring special category state ?
(1) Over population (2) Poor infrastructure
(3) Hilly and difficult terrain (4) Non-viable state finances
Ans: 1
20. For the testing of consistency and viability of a planning project, which of the prices are used ?
(1) Market Price (2) Shadow Price
(3) Administered Price (4) Controlled Price
Ans: 2
21. In which of the Five Year Plans in India, for the first time an extensive input-output model was used ?
(1) First Plan (2) Second Plan
(3) Third Plan (4) Seventh Plan
Ans: 3
22. Who among the following economists developed the Reinvestment-Criterion ?
(1) Walter Galenson and Harvey Leibenstein
(2) A. K. Sen
(3) Maurice Dobb
(4) None of the above
Ans: 1
23. Area approach to decentralised planning in India was advocated by who among the following ?
(1) D.R. Gadgil (2) K.N. Raj
(3) Raj Krishna (4) Pranav Mukherjee
Ans: 1
24. Which amongst the following is included in the Capital account of the Balance of payments ?
I. Foreign loans
II. Foreign Direct Investment
III. Private Remittances
Choose the correct answer from the codes below :
Codes :
(1) All the three. (2) I and III
(3) II and III (4) I and II
Ans: 4
25. Which amongst the following options is correct for a teaser loan ?
(1) It is an introductory rate of interest.
(2) This rate is permanent in nature.
(3) Both (1) and (2) are correct.
(4) Neither (1) nor (2) are correct.
Ans: 1
26. The movement of free international trade is most likely to generate short-term unemployment in which of the following industries ?
(1) Industries in which there are neither imports nor exports.
(2) Import competing industries.
(3) Industries that sell to domestic and foreign buyers.
(4) Industries that sell to only foreign buyers.
Ans: 2
27. Which among the following will be classified as non-tariff barrier ?
I. Phyto-sanitary measures. II. Import and export licensing.
III. Countervailing duty IV. Environmental standards
Select the answer from the code given below.
Codes :
(1) All the four above. (2) I and II
(3) I and IV (4) III and IV
Ans: 3
28. Who developed the use of trade indifference curves in the analysis of trade theory ?
(1) J.E. Meade (2) A. Marshall
(3) A.P. Lerner (4) B. Ohlin
Ans: 1
29. Which among the following is not the main areas of BASEL III norms ?
(1) Risk Coverage (2) Bank branch expansion
(3) Adequate capital provision (4) Adequate liquidity
Ans: 2
30. Which among the following is most volatile flow of foreign exchange ?
(1) Foreign Direct Investment (2) External Commercial borrowings
(3) Foreign Portfolio investment (4) Foreign aid by IMF and World Bank
Ans: 3
31. State Governments in India finance their Gross fiscal deficit by
I. Loans from the Central Government.
II. Market Borrowings.
III. External Borrowings.
Select the correct answer from the codes given below :
Codes :
(1) I and II (2) II and III
(3) II only (4) I only
Ans: 3
32. ‘Make in India’ campaign aimed at attracting industrialists to make India a Global Manufacturing Hub was launched on
(1) September 25, 2014 (2) March 20, 2015
(3) February 25, 2016 (4) December 30, 2015
Ans: 1
33. The Second Green Revolution in India is necessiated by
I. Productivity in agriculture is stagnating.
II. Diversification of agriculture has not progressed much.
III. Exports of agricultural commodities have declined.
Select the correct answer from the codes given below :
Codes :
(1) I and II (2) II and III
(3) I and III (4) I only
Ans: 1
34. Which among the following is not included in the Small Savings Scheme ?
(1) Unit Trust of India (2) National Savings Certificate
(3) Kisan Vikas Patra (4) Sukanya Samridhi Accounts Yojana
Ans: 1
35. In which of the following year, all tax revenues of Centre have become shareable among the Centre and States ?
(1) 2000 AD (2) 2003 AD
(3) 2007 AD (4) 1998 AD
Ans: 1
36. Which arrangement of following would show the correct sequence of demorgraphic transition as typically associated with economic development ?
I. High birth rate with high death rate.
II. High birth rate with low death rate.
III. Low birth rate with low death rate.
Select the correct answer from the codes given below :
Codes :
(1) I, II & III (2) II, I & III
(3) III, II & I (4) I, III & II
Ans: 1
37. If with the increase in income, the percentage of income collected as tax remains constant, tax will be called
(1) regressive (2) progressive
(3) proportional (4) neutral
Ans: 3
38. Consider the following liquid assets :
I. Demand deposits with the banks.
II. Time deposits with the banks.
III. Saving deposits with the banks.
IV. Currency
The correct sequence of these in the ascending order of liquidity is
Codes :
(1) IV, III, II, I (2) I, IV, III, II
(3) II, III, I, IV (4) IV, I, III, II
Ans: 3
39. Given the budgetary parameters including public expenditure remaining the same, then as a result of imposition of a tax, if the pattern of distribution of income changes, then such an incidence is called
(1) Effective incidence (2) Monetary incidence
(3) Relative incidence (4) Specific tax incidence
Ans: 4
40. Assertion (A) : The sale of T-bills is conducted through an auction.
Reason (R) : The method helps in price discovery.
Select the answer from the code below :
Codes :
(1) (A) is true, but (R) is false. (2) Both (A) and (R) are true.
(3) (A) is false, but (R) is true. (4) Both (A) and (R) are false.
Ans: 2
41. The social cost curve lies above the private cost curve for the producer in case of which of the following ?
(1) Positive externalities (2) Negative externalities
(3) Public goods (4) Near-public goods
Ans: 2
42. Which one of the following is true in case of Performance and Programme Budgeting System ?
(1) Its emphasis is on outcome only.
(2) Its emphasis is more on outcome and less on expenditure allocation.
(3) Its emphasis is on expenditure allocation only.
(4) Its emphasis is more on expenditure allocation and less on outcome.
Ans: 2
43. Who among the following has developed the concept of ‘Effective incidence’ of a tax ?
(1) Ursula K. Hicks (2) J.R. Hicks
(3) H. Dalton (4) A.C. Pigou
Ans: 1
44. Voting fails to generate the efficient quantity of a public good because
(1) Lobbying groups use bribes to change people’s votes.
(2) Public goods are not depleted by consumption.
(3) Public goods cannot be withheld from consumption.
(4) Voting does not accurately reflect the magnitude of benefits from public goods.
Ans: 4
45. Which of the following item of expenditure is not a part of the plan expenditure ?
(1) Agriculture (2) Defence
(3) Industry (4) Social Services
Ans: 2
46. The Time Series of production yielded following Trend equation :
Y = 136 e0.021 T.
Where Y = Production, T – Time.
From this equation it can be inferred that growth rate of Y in percent terms is
(1) 0.021 (2) 2.1
(3) 21 (4) 0.21
Ans: 2
47. Which is not a sampling distribution ?
(1) Student’s ‘t’ distribution (2) Fisher’s ‘F’ distribution
(3) Poisson distribution (4) χ2 (chi square) distribution
Ans: 3
48. Co-efficient of correlation is independent of which of the following ?
(1) Change of origin only (2) Change of scale only
(3) Change of origin and scale (4) None of these
Ans: 3
49. Which of the following is not satisfied for independence of two events A and B ?
(1) P (A/B) = P(A) (2) P (B/A) = P(B)
(3) P (A, B) = P(A) P(B) (4) P (A, B) = P(A) + P(B)
Ans: 4
(1) Industries in which there are neither imports nor exports.
(2) Import competing industries.
(3) Industries that sell to domestic and foreign buyers.
(4) Industries that sell to only foreign buyers.
Ans: 2
27. Which among the following will be classified as non-tariff barrier ?
I. Phyto-sanitary measures. II. Import and export licensing.
III. Countervailing duty IV. Environmental standards
Select the answer from the code given below.
Codes :
(1) All the four above. (2) I and II
(3) I and IV (4) III and IV
Ans: 3
28. Who developed the use of trade indifference curves in the analysis of trade theory ?
(1) J.E. Meade (2) A. Marshall
(3) A.P. Lerner (4) B. Ohlin
Ans: 1
29. Which among the following is not the main areas of BASEL III norms ?
(1) Risk Coverage (2) Bank branch expansion
(3) Adequate capital provision (4) Adequate liquidity
Ans: 2
30. Which among the following is most volatile flow of foreign exchange ?
(1) Foreign Direct Investment (2) External Commercial borrowings
(3) Foreign Portfolio investment (4) Foreign aid by IMF and World Bank
Ans: 3
31. State Governments in India finance their Gross fiscal deficit by
I. Loans from the Central Government.
II. Market Borrowings.
III. External Borrowings.
Select the correct answer from the codes given below :
Codes :
(1) I and II (2) II and III
(3) II only (4) I only
Ans: 3
32. ‘Make in India’ campaign aimed at attracting industrialists to make India a Global Manufacturing Hub was launched on
(1) September 25, 2014 (2) March 20, 2015
(3) February 25, 2016 (4) December 30, 2015
Ans: 1
33. The Second Green Revolution in India is necessiated by
I. Productivity in agriculture is stagnating.
II. Diversification of agriculture has not progressed much.
III. Exports of agricultural commodities have declined.
Select the correct answer from the codes given below :
Codes :
(1) I and II (2) II and III
(3) I and III (4) I only
Ans: 1
34. Which among the following is not included in the Small Savings Scheme ?
(1) Unit Trust of India (2) National Savings Certificate
(3) Kisan Vikas Patra (4) Sukanya Samridhi Accounts Yojana
Ans: 1
35. In which of the following year, all tax revenues of Centre have become shareable among the Centre and States ?
(1) 2000 AD (2) 2003 AD
(3) 2007 AD (4) 1998 AD
Ans: 1
36. Which arrangement of following would show the correct sequence of demorgraphic transition as typically associated with economic development ?
I. High birth rate with high death rate.
II. High birth rate with low death rate.
III. Low birth rate with low death rate.
Select the correct answer from the codes given below :
Codes :
(1) I, II & III (2) II, I & III
(3) III, II & I (4) I, III & II
Ans: 1
37. If with the increase in income, the percentage of income collected as tax remains constant, tax will be called
(1) regressive (2) progressive
(3) proportional (4) neutral
Ans: 3
38. Consider the following liquid assets :
I. Demand deposits with the banks.
II. Time deposits with the banks.
III. Saving deposits with the banks.
IV. Currency
The correct sequence of these in the ascending order of liquidity is
Codes :
(1) IV, III, II, I (2) I, IV, III, II
(3) II, III, I, IV (4) IV, I, III, II
Ans: 3
39. Given the budgetary parameters including public expenditure remaining the same, then as a result of imposition of a tax, if the pattern of distribution of income changes, then such an incidence is called
(1) Effective incidence (2) Monetary incidence
(3) Relative incidence (4) Specific tax incidence
Ans: 4
40. Assertion (A) : The sale of T-bills is conducted through an auction.
Reason (R) : The method helps in price discovery.
Select the answer from the code below :
Codes :
(1) (A) is true, but (R) is false. (2) Both (A) and (R) are true.
(3) (A) is false, but (R) is true. (4) Both (A) and (R) are false.
Ans: 2
41. The social cost curve lies above the private cost curve for the producer in case of which of the following ?
(1) Positive externalities (2) Negative externalities
(3) Public goods (4) Near-public goods
Ans: 2
42. Which one of the following is true in case of Performance and Programme Budgeting System ?
(1) Its emphasis is on outcome only.
(2) Its emphasis is more on outcome and less on expenditure allocation.
(3) Its emphasis is on expenditure allocation only.
(4) Its emphasis is more on expenditure allocation and less on outcome.
Ans: 2
43. Who among the following has developed the concept of ‘Effective incidence’ of a tax ?
(1) Ursula K. Hicks (2) J.R. Hicks
(3) H. Dalton (4) A.C. Pigou
Ans: 1
44. Voting fails to generate the efficient quantity of a public good because
(1) Lobbying groups use bribes to change people’s votes.
(2) Public goods are not depleted by consumption.
(3) Public goods cannot be withheld from consumption.
(4) Voting does not accurately reflect the magnitude of benefits from public goods.
Ans: 4
45. Which of the following item of expenditure is not a part of the plan expenditure ?
(1) Agriculture (2) Defence
(3) Industry (4) Social Services
Ans: 2
46. The Time Series of production yielded following Trend equation :
Y = 136 e0.021 T.
Where Y = Production, T – Time.
From this equation it can be inferred that growth rate of Y in percent terms is
(1) 0.021 (2) 2.1
(3) 21 (4) 0.21
Ans: 2
47. Which is not a sampling distribution ?
(1) Student’s ‘t’ distribution (2) Fisher’s ‘F’ distribution
(3) Poisson distribution (4) χ2 (chi square) distribution
Ans: 3
48. Co-efficient of correlation is independent of which of the following ?
(1) Change of origin only (2) Change of scale only
(3) Change of origin and scale (4) None of these
Ans: 3
49. Which of the following is not satisfied for independence of two events A and B ?
(1) P (A/B) = P(A) (2) P (B/A) = P(B)
(3) P (A, B) = P(A) P(B) (4) P (A, B) = P(A) + P(B)
Ans: 4
50. Which one of the following schemes is not included in the Rashtriya Krishi Vikas Yojna (RKVY) ?
(1) National Mission for Protein Supplements
(2) Saffron Mission
(3) Accelerated Fodder Development Programme
(4) All of the above
Ans: 4
51. Assertion (A) : Agricultural Productivity is very low in India.
Reason (R) : Rate of growth of population is high in India.
Select the correct answer from the codes given below :
Codes :
(1) Both (A) and (R) are true and (R) is the correct explanation of (A).
(2) Both (A) and (R) are true, but (R) is not correct explanation of (A).
(3) (A) is true, but (R) is false.
(4) (A) is false, but (R) is true.
Ans: 2
52. The Agricultural Census is done at which one of the following intervals ?
(1) Every year (2) Once in 3 years
(3) Once in 5 years (4) Once in 10 years
Ans: 3
53. The share of food expenditure in total expenditure for Urban consumer and Rural consumer in India was 56% and 64% respectively in (1987-88) and which changed to 41% and 54% in (2009-10). This is appropriately explained by which of the following ?
(1) Decline in food production.
(2) Decline in purchasing power of consumers.
(3) Operation of Engel’s Law.
(4) Operation of law of diminishing marginal utility.
Ans: 3
54. Which of the following is true for an optimum solution of a linear programming problem ?
(1) Number of non-zero valued slack variables is equal to the number of constraints.
(2) Number of non-zero valued variables (including slack) is exactly equal to the number of constraints.
(3) Number of non-zero valued slack variables is equal to the number of binding constraints.
(4) Number of non-zero valued variables is equal to the number of non-binding constraints.
Ans: 2
55. If the targets for an economy are fixed in terms of final demand vector F, then the compatible levels of output vector X, in terms of input-output analysis will be determined according to which of the following ?
(1) A + F = X (2) AX – F = X
(3) (I – A)–1 F = X (4) (I – A) F = X
Ans: 3
56. In a two-variable regression, Y is dependent variable and X is independent variable. The correlation coefficient between Y and X is 0.8. For this, which of the following is correct ?
(1) 8% variations in Y are explained by X.
(2) 64% variations in Y are explained by X.
(3) 0.8% variations in Y are explained by X.
(4) None of the above.
Ans: 2
57. If OLS is applied separately to each equation that is part of a simultaneous equation system, the resulting estimates will be
(1) Unbiased and consistent (2) Biased and consistent
(3) Biased and inconsistent (4) Unbiased and inconsistent
Ans: 2
58. Generalized Least Squares Method is suitable for estimation of parameters in a General Linear Model for dealing with problem of
(i) Measurement Errors (ii) Autocorrelated Disturbances
(iii) Multi collinearity (iv) Heteroscelasticity
Select the correct answer from codes given below :
Codes :
(1) (i), (ii), (iii), (iv) (2) (i), (iii), (iv)
(3) (ii), (iv) (4) (i), (iii)
Ans: 3
59. Match the following and select the correct answer from codes given below :
List – I List - II
a. Goldfield–Quandt Test (i) Errors in variables
b. Durbin-Watson Test (ii) Heteroscelasticity
c. Farrar-Glauber Test (iii) Autocorrelation
d. Wald-Bartlett Method (iv) Multicollinearity
Codes :
a b c d
(1) (iv) (ii) (iii) (i)
(2) (iii) (i) (ii) (iv)
(3) (i) (iii) (iv) (ii)
(4) (ii) (iii) (iv) (i)
Ans: 4
(1) National Mission for Protein Supplements
(2) Saffron Mission
(3) Accelerated Fodder Development Programme
(4) All of the above
Ans: 4
51. Assertion (A) : Agricultural Productivity is very low in India.
Reason (R) : Rate of growth of population is high in India.
Select the correct answer from the codes given below :
Codes :
(1) Both (A) and (R) are true and (R) is the correct explanation of (A).
(2) Both (A) and (R) are true, but (R) is not correct explanation of (A).
(3) (A) is true, but (R) is false.
(4) (A) is false, but (R) is true.
Ans: 2
52. The Agricultural Census is done at which one of the following intervals ?
(1) Every year (2) Once in 3 years
(3) Once in 5 years (4) Once in 10 years
Ans: 3
53. The share of food expenditure in total expenditure for Urban consumer and Rural consumer in India was 56% and 64% respectively in (1987-88) and which changed to 41% and 54% in (2009-10). This is appropriately explained by which of the following ?
(1) Decline in food production.
(2) Decline in purchasing power of consumers.
(3) Operation of Engel’s Law.
(4) Operation of law of diminishing marginal utility.
Ans: 3
54. Which of the following is true for an optimum solution of a linear programming problem ?
(1) Number of non-zero valued slack variables is equal to the number of constraints.
(2) Number of non-zero valued variables (including slack) is exactly equal to the number of constraints.
(3) Number of non-zero valued slack variables is equal to the number of binding constraints.
(4) Number of non-zero valued variables is equal to the number of non-binding constraints.
Ans: 2
55. If the targets for an economy are fixed in terms of final demand vector F, then the compatible levels of output vector X, in terms of input-output analysis will be determined according to which of the following ?
(1) A + F = X (2) AX – F = X
(3) (I – A)–1 F = X (4) (I – A) F = X
Ans: 3
56. In a two-variable regression, Y is dependent variable and X is independent variable. The correlation coefficient between Y and X is 0.8. For this, which of the following is correct ?
(1) 8% variations in Y are explained by X.
(2) 64% variations in Y are explained by X.
(3) 0.8% variations in Y are explained by X.
(4) None of the above.
Ans: 2
57. If OLS is applied separately to each equation that is part of a simultaneous equation system, the resulting estimates will be
(1) Unbiased and consistent (2) Biased and consistent
(3) Biased and inconsistent (4) Unbiased and inconsistent
Ans: 2
58. Generalized Least Squares Method is suitable for estimation of parameters in a General Linear Model for dealing with problem of
(i) Measurement Errors (ii) Autocorrelated Disturbances
(iii) Multi collinearity (iv) Heteroscelasticity
Select the correct answer from codes given below :
Codes :
(1) (i), (ii), (iii), (iv) (2) (i), (iii), (iv)
(3) (ii), (iv) (4) (i), (iii)
Ans: 3
59. Match the following and select the correct answer from codes given below :
List – I List - II
a. Goldfield–Quandt Test (i) Errors in variables
b. Durbin-Watson Test (ii) Heteroscelasticity
c. Farrar-Glauber Test (iii) Autocorrelation
d. Wald-Bartlett Method (iv) Multicollinearity
Codes :
a b c d
(1) (iv) (ii) (iii) (i)
(2) (iii) (i) (ii) (iv)
(3) (i) (iii) (iv) (ii)
(4) (ii) (iii) (iv) (i)
Ans: 4
60. On the basis of 10 parameters for the ‘ease of doing business’, World Bank’s latest report, during the period July 2013 to May 2014, India has come to which of the following position ?
(A) 138 (B) 142
(C) 144 (D) 146
Ans: B
61. Which is false in following ?
(A) The duration of Tenth Five Year Plan was 2002-2007.
(B) Ryotwari tenure has been the intermediary in Indian land system.
(C) Zamindari system was introduced by Lord Dalhousie.
(D) Mahalwari land tenure system was introduced in Agra and Oudh.
Ans: C
62. The Financial Sector Legislative Reforms Commission 2013 submitted its recommendations on the following aspects :
I. Legislative II. Non-legislative
III. Marketing IV. Advertising
Codes :
(A) I, II, IV (B) I, II, III
(C) II, III, IV (D) I, II
Ans: D
63. Which of the following States had the lowest women employment percentage under MNREGA programme during 2013-14 ?
(A) U.P. and Rajasthan (B) Odisha and M.P.
(C) U.P. and Odisha (D) Rajasthan and West Bengal
Ans: C
64. The base year for newly developed All India Consumer Price Index Number – Rural C.P.I and Urban C.P.I. is
(A) 2004 – 05 (B) 2006 – 07
(C) 2009 – 10 (D) 2010
Ans: D
65. Which of the following facts are correct about the Competition Commission of India ?
I. It was established in 2003.
II. It was established on the recommendations of Raghavan Committee.
Codes :
(A) Both I and II are true. (B) Both I and II are not true.
(C) Only I is true. (D) Only II is true.
Ans: A
66. For testing the significance of overall regression the test to be used is
(A) t Test (B) F Test
(C) χ2 Test (D) d Test
Ans: B
67. Including relevant lagged values of the dependent variable on the right hand side of a regression equation could lead to which one of the following ?
(A) Biased but consistent coefficients’ estimates
(B) Biased and inconsistent coefficients’ estimates
(C) Unbiased and inconsistent coefficients’ estimates
(D) Unbiased and consistent coefficients’ estimates
Ans: A
68. For the year 2013-14 arrange in descending order, the contribution of following taxes as percentage of G.D.P. :
1. Income Tax 2. Service Tax
3. Corporation Tax 4. Excise Duty
Codes :
(A) 4, 2, 3, 1 (B) 3, 1, 4, 2
(C) 2, 3, 1, 4 (D) 1, 2, 3, 4
Ans: B
69. Match the following :
List – I List – II
a. Box-Jenkins i. Causality Method
b. Unit-root test ii. Forecasting
c. Durbin-Watson ‘d’ statistics iii. Stationarity
d. Granger Test iv. Auto-correlation
Codes :
a b c d
(A) iii i ii iv
(B) ii iii iv i
(C) i ii iii iv
(D) iv i ii iii
Ans: B
70. If OLS is used in the presence of auto-correlation, which of the following will be likely consequences ?
i. Coefficients estimates may be misleading.
ii. Hypothesis tests could reach the wrong conclusions.
iii. Forecasts made from the model could be biased.
iv. Standard errors may be inappropriate.
(A) ii and iv only (B) i and iii only
(C) i, ii and iii only (D) i, ii, iii and iv
Ans: A
71. In the context of simultaneous equations econometric models, consider the following statements :
i. Identification is a problem to be dealt with before estimation.
ii. Order condition is necessary but not a sufficient condition of identification.
iii. Two-stage least squares method of estimation gives consistent estimators if the equation is under-identified.
iv. Under indirect least squares method, least squares method is applied to reduced form equations.
Which of the following is correct ?
(A) i and ii (B) i, ii, iii and iv
(C) i, ii and iii (D) i, ii and iv
Ans: D
72. Simplex method is used for solving the problems of
(A) Linear Programming (B) Input Output Analysis
(C) Regression (D) Correlation
Ans: A
73.For the year 2012-13 procurement of wheat has been largest in which of the following States ?
(A) Punjab and U.P.
(B) U.P. and M.P.
(C) U.P. and Haryana
(D) Punjab and Haryana
Ans: D
74. Given that LM function is Y = 100 + 10i and the IS function is Y = 160 – 20i, find the correct value of equilibrium level of income and rate of interest from the given options.
(A) 120 and 2 (B) 90 and 3
(C) 150 and 2 (D) 120 and 3
75. Assertion (A) : In India, the traditional small scale industries have greater employment potential than the modern small scale industries.
Reason (R) : The value of capital per worker in traditional small scale industries is small than the value of capital per worker in modern small scale industries.
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
(A) 138 (B) 142
(C) 144 (D) 146
Ans: B
61. Which is false in following ?
(A) The duration of Tenth Five Year Plan was 2002-2007.
(B) Ryotwari tenure has been the intermediary in Indian land system.
(C) Zamindari system was introduced by Lord Dalhousie.
(D) Mahalwari land tenure system was introduced in Agra and Oudh.
Ans: C
62. The Financial Sector Legislative Reforms Commission 2013 submitted its recommendations on the following aspects :
I. Legislative II. Non-legislative
III. Marketing IV. Advertising
Codes :
(A) I, II, IV (B) I, II, III
(C) II, III, IV (D) I, II
Ans: D
63. Which of the following States had the lowest women employment percentage under MNREGA programme during 2013-14 ?
(A) U.P. and Rajasthan (B) Odisha and M.P.
(C) U.P. and Odisha (D) Rajasthan and West Bengal
Ans: C
64. The base year for newly developed All India Consumer Price Index Number – Rural C.P.I and Urban C.P.I. is
(A) 2004 – 05 (B) 2006 – 07
(C) 2009 – 10 (D) 2010
Ans: D
65. Which of the following facts are correct about the Competition Commission of India ?
I. It was established in 2003.
II. It was established on the recommendations of Raghavan Committee.
Codes :
(A) Both I and II are true. (B) Both I and II are not true.
(C) Only I is true. (D) Only II is true.
Ans: A
66. For testing the significance of overall regression the test to be used is
(A) t Test (B) F Test
(C) χ2 Test (D) d Test
Ans: B
67. Including relevant lagged values of the dependent variable on the right hand side of a regression equation could lead to which one of the following ?
(A) Biased but consistent coefficients’ estimates
(B) Biased and inconsistent coefficients’ estimates
(C) Unbiased and inconsistent coefficients’ estimates
(D) Unbiased and consistent coefficients’ estimates
Ans: A
68. For the year 2013-14 arrange in descending order, the contribution of following taxes as percentage of G.D.P. :
1. Income Tax 2. Service Tax
3. Corporation Tax 4. Excise Duty
Codes :
(A) 4, 2, 3, 1 (B) 3, 1, 4, 2
(C) 2, 3, 1, 4 (D) 1, 2, 3, 4
Ans: B
69. Match the following :
List – I List – II
a. Box-Jenkins i. Causality Method
b. Unit-root test ii. Forecasting
c. Durbin-Watson ‘d’ statistics iii. Stationarity
d. Granger Test iv. Auto-correlation
Codes :
a b c d
(A) iii i ii iv
(B) ii iii iv i
(C) i ii iii iv
(D) iv i ii iii
Ans: B
70. If OLS is used in the presence of auto-correlation, which of the following will be likely consequences ?
i. Coefficients estimates may be misleading.
ii. Hypothesis tests could reach the wrong conclusions.
iii. Forecasts made from the model could be biased.
iv. Standard errors may be inappropriate.
(A) ii and iv only (B) i and iii only
(C) i, ii and iii only (D) i, ii, iii and iv
Ans: A
71. In the context of simultaneous equations econometric models, consider the following statements :
i. Identification is a problem to be dealt with before estimation.
ii. Order condition is necessary but not a sufficient condition of identification.
iii. Two-stage least squares method of estimation gives consistent estimators if the equation is under-identified.
iv. Under indirect least squares method, least squares method is applied to reduced form equations.
Which of the following is correct ?
(A) i and ii (B) i, ii, iii and iv
(C) i, ii and iii (D) i, ii and iv
Ans: D
72. Simplex method is used for solving the problems of
(A) Linear Programming (B) Input Output Analysis
(C) Regression (D) Correlation
Ans: A
73.For the year 2012-13 procurement of wheat has been largest in which of the following States ?
(A) Punjab and U.P.
(B) U.P. and M.P.
(C) U.P. and Haryana
(D) Punjab and Haryana
Ans: D
74. Given that LM function is Y = 100 + 10i and the IS function is Y = 160 – 20i, find the correct value of equilibrium level of income and rate of interest from the given options.
(A) 120 and 2 (B) 90 and 3
(C) 150 and 2 (D) 120 and 3
75. Assertion (A) : In India, the traditional small scale industries have greater employment potential than the modern small scale industries.
Reason (R) : The value of capital per worker in traditional small scale industries is small than the value of capital per worker in modern small scale industries.
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
76. Which among the following statements are true for the Revealed Preference Theory ?
Choose the correct answer from the code given below :
Statement :
I. Income elasticity of demand should be positive.
II. Consumers Preferences satisfy strong ordering.
Codes :
(A) Both are true. (B) None are true.
(C) Only I is true. (D) Only II is true.
Ans: A
77. Demand for foodstuff is income inelastic. This is explained by
(A) Giffen’s Paradox (B) Engel’s Law
(C) Gossen’s Law (D) Ricardo’s Law
Ans: B
78. Consider the following factors :
I. Free entry
II. Advertising
III. Goal of satisfactory profits
Which of these are part of Chamberlin’s Monopolistic Competition ?
Codes :
(A) All the three (B) Only I and II
(C) Only II and III (D) Only III
Ans: B
79. Non-symmetric risk means :
(A) A risk that can be eliminated by diversifying.
(B) A risk that cannot be eliminated by diversifying.
(C) A risk that can be eliminated without diversifying.
(D) A risk that cannot be eliminated.
Ans: A
80. Who among the following economists developed the concept of ‘Barriers to Entry’ of firms ?
(A) J.S. Bain (B) W.J. Baumol
(C) Alfred Marshall (D) W.S. Jevons
Ans: A
81. Even as fixed average cost continues to fall, the average variable cost begins to rise because
(A) returns to factors start diminishing
(B) returns to factors start rising
(C) input prices start rising
(D) producers budget starts shrinking
Ans: D
82. Consider the following statements :
I. The lowest point on the long run average cost curve is known as minimum efficient scale.
II. It is the output at which long run average cost curve stops falling.
Choose the correct option from the code given below :
Codes :
(A) Both I and II are correct. (B) Both are wrong.
(C) Only I is correct. (D) Only II is correct.
Ans: A
83. Which among the following is not a characteristic of Imperfect Competition ?
(A) Perfect knowledge
(B) Free transport
(C) Free Entry of firms
(D) Homogeneous product
Ans: A
84. Which among the following conditions are true for Golden Rule of Accumulation of Edmund Phelps for optimum capital accumulation ? Choose from the code below :
I. Savings rate is unique.
II. Marginal productivity of capital be equal to capital depreciation.
Codes :
(A) Both are true.
(B) None of these are true.
(C) Only I is true.
(D) Only II is true.
Ans: A
85. Which among the following were neglected by Keynes in his theory of employment ?
(A) Role of expectations (B) Role of capital stock
(C) Role of consumption (D) Role of government
Ans: B
86. Which of the propositions of the past income hypothesis of Duesenberry are correct ?
Choose from the code below :
Statements :
I. The current consumption is a function of not only current income, but also the past income.
II. There is asymmetrical relationship between income and consumption during contraction and expansion.
III. Consumption income relationship is irreversible.
IV. Consumption falls less than income during depression, but the rise in consumption is much more during expansion.
Codes :
(A) I and III (B) I, II and III
(C) I, II and IV (D) All the above statements are true.
Ans: D
87. An increase in the quantity of money in the classical macro system will result in :
I. Increase in price level
II. No change in price level
III. Level of output and employment do not change
IV. An increase in employment and output
Select the answer from the codes given below :
Codes :
(A) II and IV (B) I and II
(C) I and IV (D) I & III only
Ans: D
88. The theoretical proposition of stable velocity of money is being weakened by the recent researchers. This has the effect of weakening the position of
(A) Keynesians (B) Monetarists
(C) New Classicals (D) Utopians
Ans: B
89. Which of the following is the correct assumption for the Lewis two sector model ?
(A) High unemployment in urban sector
(B) Rising real wages
(C) High marginal productivity in the rural sector
(D) Surplus labour in the rural sector
Ans: D
90. Which of the following is a major indivisibility of Rosenstein-Rodan Model of development ?
(A) Services (B) Agriculture
(C) Infrastructure (D) Supply
Ans: D
91. Which among the following statement is true for Marxian model of development ?
(A) Change in Mode of production and Relations in production happen simultaneously.
(B) Change in Mode of production follows change in Relations in production.
(C) Change in Mode of production precedes the change in Relations in production.
(D) Relations in production are not important.
Ans: C
92. Consider the following statements about the Kaldor’s model of economic growth :
I. Investment is a function of profit rate.
II. Capital is homogeneous.
III. Marginal propensity to save is same for wage earners and profit earners.
Of the above statements which are true ? Answer from the code below :
Codes :
(A) All the three statements above are correct.
(B) II and III are correct.
(C) Only I is correct.
(D) I and III are correct.
Ans: C
93. Which one of the following is true for disguised unemployment ?
(A) It has savings potential.
(B) It has investment potential.
(C) It is a source of expanding production.
(D) It is a source of social unrest.
Ans: A
94. In the steady state growth situation in the Solow’s model of growth, the upper limit to growth would be determined by the growth rate of
(A) Population (Labour supply) (B) Capital
(C) Output (D) Capital and output
Ans: A
95. A tax is said to be progressive, when the marginal rate of tax is
(A) greater than the average rate (B) less than the average rate
(C) equal to the average rate (D) equal to the marginal sacrifice
Ans: A
96. Assertion (A) : Relatively few private goods are totally rival and excludable.
Reason (R) : Most consumption (and production) has at least some shared aspects.
Codes :
(A) Both (A) and (R) are correct.
(B) Both (A) and (R) are not correct.
(C) (A) is correct, but (R) is not the correct reason of (A).
(D) (A) is correct and (R) is the correct reason for (A).
Ans: A
97. Methods of debt-redemption include
(A) Capital levy (B) Sinking fund
(C) Debt repudiation (D) All the above
Ans: D
98. Reason (R) : A widening fiscal deficit adversely impacts finances of the Central Government.
Codes :
(A) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
(B) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (R) is true, but (A) is false.
Ans: A
99. Assertion (A) : The debt-GDP ratio of the State Governments witnessed a decline after reaching the peak level in 2004.
Reason (R) : ‘Debt swap’ scheme was introduced and interest rates were reduced.
Codes :
(A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(B) (A) is true, but (R) is not the correct explanation of (A).
(C) (A) is false, but (R) is true.
(D) (R) is true, but (A) is false.
Ans: A
100. Taxes in List – I of the Union Government as per the Constitution of India include :
I. Taxes on consumption and sale of electricity
II. Taxes on sale or purchase of newspapers and on advertisements published therein
III. Taxes on capital value of assets
IV. Duties in respect of succession to property
Codes :
(A) I, II and IV are correct.
(B) I, II and III are correct.
(C) II, III and IV are correct.
(D) II and III are correct.
Ans: C
Choose the correct answer from the code given below :
Statement :
I. Income elasticity of demand should be positive.
II. Consumers Preferences satisfy strong ordering.
Codes :
(A) Both are true. (B) None are true.
(C) Only I is true. (D) Only II is true.
Ans: A
77. Demand for foodstuff is income inelastic. This is explained by
(A) Giffen’s Paradox (B) Engel’s Law
(C) Gossen’s Law (D) Ricardo’s Law
Ans: B
78. Consider the following factors :
I. Free entry
II. Advertising
III. Goal of satisfactory profits
Which of these are part of Chamberlin’s Monopolistic Competition ?
Codes :
(A) All the three (B) Only I and II
(C) Only II and III (D) Only III
Ans: B
79. Non-symmetric risk means :
(A) A risk that can be eliminated by diversifying.
(B) A risk that cannot be eliminated by diversifying.
(C) A risk that can be eliminated without diversifying.
(D) A risk that cannot be eliminated.
Ans: A
80. Who among the following economists developed the concept of ‘Barriers to Entry’ of firms ?
(A) J.S. Bain (B) W.J. Baumol
(C) Alfred Marshall (D) W.S. Jevons
Ans: A
81. Even as fixed average cost continues to fall, the average variable cost begins to rise because
(A) returns to factors start diminishing
(B) returns to factors start rising
(C) input prices start rising
(D) producers budget starts shrinking
Ans: D
82. Consider the following statements :
I. The lowest point on the long run average cost curve is known as minimum efficient scale.
II. It is the output at which long run average cost curve stops falling.
Choose the correct option from the code given below :
Codes :
(A) Both I and II are correct. (B) Both are wrong.
(C) Only I is correct. (D) Only II is correct.
Ans: A
83. Which among the following is not a characteristic of Imperfect Competition ?
(A) Perfect knowledge
(B) Free transport
(C) Free Entry of firms
(D) Homogeneous product
Ans: A
84. Which among the following conditions are true for Golden Rule of Accumulation of Edmund Phelps for optimum capital accumulation ? Choose from the code below :
I. Savings rate is unique.
II. Marginal productivity of capital be equal to capital depreciation.
Codes :
(A) Both are true.
(B) None of these are true.
(C) Only I is true.
(D) Only II is true.
Ans: A
85. Which among the following were neglected by Keynes in his theory of employment ?
(A) Role of expectations (B) Role of capital stock
(C) Role of consumption (D) Role of government
Ans: B
86. Which of the propositions of the past income hypothesis of Duesenberry are correct ?
Choose from the code below :
Statements :
I. The current consumption is a function of not only current income, but also the past income.
II. There is asymmetrical relationship between income and consumption during contraction and expansion.
III. Consumption income relationship is irreversible.
IV. Consumption falls less than income during depression, but the rise in consumption is much more during expansion.
Codes :
(A) I and III (B) I, II and III
(C) I, II and IV (D) All the above statements are true.
Ans: D
87. An increase in the quantity of money in the classical macro system will result in :
I. Increase in price level
II. No change in price level
III. Level of output and employment do not change
IV. An increase in employment and output
Select the answer from the codes given below :
Codes :
(A) II and IV (B) I and II
(C) I and IV (D) I & III only
Ans: D
88. The theoretical proposition of stable velocity of money is being weakened by the recent researchers. This has the effect of weakening the position of
(A) Keynesians (B) Monetarists
(C) New Classicals (D) Utopians
Ans: B
89. Which of the following is the correct assumption for the Lewis two sector model ?
(A) High unemployment in urban sector
(B) Rising real wages
(C) High marginal productivity in the rural sector
(D) Surplus labour in the rural sector
Ans: D
90. Which of the following is a major indivisibility of Rosenstein-Rodan Model of development ?
(A) Services (B) Agriculture
(C) Infrastructure (D) Supply
Ans: D
91. Which among the following statement is true for Marxian model of development ?
(A) Change in Mode of production and Relations in production happen simultaneously.
(B) Change in Mode of production follows change in Relations in production.
(C) Change in Mode of production precedes the change in Relations in production.
(D) Relations in production are not important.
Ans: C
92. Consider the following statements about the Kaldor’s model of economic growth :
I. Investment is a function of profit rate.
II. Capital is homogeneous.
III. Marginal propensity to save is same for wage earners and profit earners.
Of the above statements which are true ? Answer from the code below :
Codes :
(A) All the three statements above are correct.
(B) II and III are correct.
(C) Only I is correct.
(D) I and III are correct.
Ans: C
93. Which one of the following is true for disguised unemployment ?
(A) It has savings potential.
(B) It has investment potential.
(C) It is a source of expanding production.
(D) It is a source of social unrest.
Ans: A
94. In the steady state growth situation in the Solow’s model of growth, the upper limit to growth would be determined by the growth rate of
(A) Population (Labour supply) (B) Capital
(C) Output (D) Capital and output
Ans: A
95. A tax is said to be progressive, when the marginal rate of tax is
(A) greater than the average rate (B) less than the average rate
(C) equal to the average rate (D) equal to the marginal sacrifice
Ans: A
96. Assertion (A) : Relatively few private goods are totally rival and excludable.
Reason (R) : Most consumption (and production) has at least some shared aspects.
Codes :
(A) Both (A) and (R) are correct.
(B) Both (A) and (R) are not correct.
(C) (A) is correct, but (R) is not the correct reason of (A).
(D) (A) is correct and (R) is the correct reason for (A).
Ans: A
97. Methods of debt-redemption include
(A) Capital levy (B) Sinking fund
(C) Debt repudiation (D) All the above
Ans: D
98. Reason (R) : A widening fiscal deficit adversely impacts finances of the Central Government.
Codes :
(A) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
(B) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (R) is true, but (A) is false.
Ans: A
99. Assertion (A) : The debt-GDP ratio of the State Governments witnessed a decline after reaching the peak level in 2004.
Reason (R) : ‘Debt swap’ scheme was introduced and interest rates were reduced.
Codes :
(A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(B) (A) is true, but (R) is not the correct explanation of (A).
(C) (A) is false, but (R) is true.
(D) (R) is true, but (A) is false.
Ans: A
100. Taxes in List – I of the Union Government as per the Constitution of India include :
I. Taxes on consumption and sale of electricity
II. Taxes on sale or purchase of newspapers and on advertisements published therein
III. Taxes on capital value of assets
IV. Duties in respect of succession to property
Codes :
(A) I, II and IV are correct.
(B) I, II and III are correct.
(C) II, III and IV are correct.
(D) II and III are correct.
Ans: C