ECONOMICS- PAGE 9
1. For downward movement along the iso-quant, MRTS of Labour per unit of capital (MRTSL,K) is given by
(A) – dK/dL
(B) dK/dL
(C) dL/dK
(D) – dL/dK
Ans: A
2. Charging a different price in different markets is called
(A) price discrimination
(B) second degree price discrimination
(C) third degree price discrimination
(D) perfect price discrimination
Ans: C
3. Which of the following is the most significant in stabilization policy ?
(A) Private investment
(B) Inventory investment
(C) Autonomous investment
(D) Public investment
Ans: B
4. The concept of vicious circle of poverty is associated with
(A) Kindleberger
(B) Schumpeter
(C) Ragnar Frish
(D) Gunnar Myrdal
Ans: D
5. Solow built his model as an alternative to
(A) Kaldor’s model of growth
(B) Ranis-Fei model of growth
(C) Harrod-Domar model of growth
(D) Meade’s model of growth
Ans: C
6. If interest payments are subtracted from gross fiscal deficit, the remainder will be
(A) revenue deficit
(B) gross primary deficit
(C) capital deficit
(D) budgetary deficit
Ans: B
7. Which of the following measures of central tendency will be the most appropriate to use if the data relate to rates, proportions and ratios ?
(A) Arithmetic mean
(B) Median
(C) Harmonic mean
(D) Geometric mean
Ans: D
8. Opportunity cost version of comparative cost advantage doctrine was introduced by
(A) J.M. Keynes
(B) Kindleberger
(C) Haberler
(D) Karl Marx
Ans: C
9. The most popular definition of sustainable development is given by
(A) World Development Report
(B) UNDP Report
(C) Brundtland
(D) IMF Report
Ans: C
10. During the planning period, highest growth rate was achieved during
(A) eighth plan
(B) tenth plan
(C) ninth plan
(D) seventh plan
Ans: B
(A) – dK/dL
(B) dK/dL
(C) dL/dK
(D) – dL/dK
Ans: A
2. Charging a different price in different markets is called
(A) price discrimination
(B) second degree price discrimination
(C) third degree price discrimination
(D) perfect price discrimination
Ans: C
3. Which of the following is the most significant in stabilization policy ?
(A) Private investment
(B) Inventory investment
(C) Autonomous investment
(D) Public investment
Ans: B
4. The concept of vicious circle of poverty is associated with
(A) Kindleberger
(B) Schumpeter
(C) Ragnar Frish
(D) Gunnar Myrdal
Ans: D
5. Solow built his model as an alternative to
(A) Kaldor’s model of growth
(B) Ranis-Fei model of growth
(C) Harrod-Domar model of growth
(D) Meade’s model of growth
Ans: C
6. If interest payments are subtracted from gross fiscal deficit, the remainder will be
(A) revenue deficit
(B) gross primary deficit
(C) capital deficit
(D) budgetary deficit
Ans: B
7. Which of the following measures of central tendency will be the most appropriate to use if the data relate to rates, proportions and ratios ?
(A) Arithmetic mean
(B) Median
(C) Harmonic mean
(D) Geometric mean
Ans: D
8. Opportunity cost version of comparative cost advantage doctrine was introduced by
(A) J.M. Keynes
(B) Kindleberger
(C) Haberler
(D) Karl Marx
Ans: C
9. The most popular definition of sustainable development is given by
(A) World Development Report
(B) UNDP Report
(C) Brundtland
(D) IMF Report
Ans: C
10. During the planning period, highest growth rate was achieved during
(A) eighth plan
(B) tenth plan
(C) ninth plan
(D) seventh plan
Ans: B
11. Labour theory of value was propounded by
a. Adam Smith
b. David Ricardo
c. Ragnar Nurkse, Gunnar Myrdal, R.M. Solow
d. Fei-Rani’s, Ragnar Nurkse
Codes :
(A) a and b (B) a and c
(C) a, b, c (D) a, b, c, d
Ans: A
12. The features of the classical system are
a. Monetary factors determine output and employment.
b. Self adjusting mechanism of the economy.
c. State action to direct development.
d. Optimization through market in the absence of state control.
Codes :
(A) a and b (B) a, b, c
(C) b and d (D) a, b, d
Ans: C
13. Concepts of displacement and concentration effect in public expenditure are attributed to
a. A.C. Pigou and J.K. Mehta
b. Alan T. Peacock and Jack Wiseman
c. Kenneth Arrow and Paul A. Samuelson
d. A.R. Prest and I.M.D. Little
Codes :
(A) a and b (B) b
(C) a, b, c (D) a, b, c, d
Ans: B
14. Human Development Index (HDI) is constructed with reference to
a. Life expectancy at birth, real GDP per capita, gross enrolment ratio, adult literacy rate.
b. Life expectancy at birth, real GDP per capita, combined gross enrolment ratio, adult literacy rate.
c. Life expectancy, GDP per capita, infant mortality rate, literacy rate.
d. GDP per capita, infant mortality rate, literacy rate
Codes :
(A) a and b (B) a and c
(C) c (D) a, b, d
Ans: C
15. The unbalanced growth model was propounded first by
a. Albert O. Hirschman
b. H.S. Singer and Raul Prebisch
c. Kindelberger and Ragnar Nurkse
d. W.W. Rostow and Paul Streeten
Codes :
(A) a and b (B) a and c
(C) a and d (D) a
Ans: D
16. Harrod-Domar model of growth is based on the concepts of and their equality
a. Population and productivity growth.
b. Investment and average growth rate of income.
c. Actual, warranted and natural growth rate.
d. Productivity growth and investment growth.
Codes :
(A) a and c (B) a and d
(C) c (D) a, b, c
Ans: C
a. Adam Smith
b. David Ricardo
c. Ragnar Nurkse, Gunnar Myrdal, R.M. Solow
d. Fei-Rani’s, Ragnar Nurkse
Codes :
(A) a and b (B) a and c
(C) a, b, c (D) a, b, c, d
Ans: A
12. The features of the classical system are
a. Monetary factors determine output and employment.
b. Self adjusting mechanism of the economy.
c. State action to direct development.
d. Optimization through market in the absence of state control.
Codes :
(A) a and b (B) a, b, c
(C) b and d (D) a, b, d
Ans: C
13. Concepts of displacement and concentration effect in public expenditure are attributed to
a. A.C. Pigou and J.K. Mehta
b. Alan T. Peacock and Jack Wiseman
c. Kenneth Arrow and Paul A. Samuelson
d. A.R. Prest and I.M.D. Little
Codes :
(A) a and b (B) b
(C) a, b, c (D) a, b, c, d
Ans: B
14. Human Development Index (HDI) is constructed with reference to
a. Life expectancy at birth, real GDP per capita, gross enrolment ratio, adult literacy rate.
b. Life expectancy at birth, real GDP per capita, combined gross enrolment ratio, adult literacy rate.
c. Life expectancy, GDP per capita, infant mortality rate, literacy rate.
d. GDP per capita, infant mortality rate, literacy rate
Codes :
(A) a and b (B) a and c
(C) c (D) a, b, d
Ans: C
15. The unbalanced growth model was propounded first by
a. Albert O. Hirschman
b. H.S. Singer and Raul Prebisch
c. Kindelberger and Ragnar Nurkse
d. W.W. Rostow and Paul Streeten
Codes :
(A) a and b (B) a and c
(C) a and d (D) a
Ans: D
16. Harrod-Domar model of growth is based on the concepts of and their equality
a. Population and productivity growth.
b. Investment and average growth rate of income.
c. Actual, warranted and natural growth rate.
d. Productivity growth and investment growth.
Codes :
(A) a and c (B) a and d
(C) c (D) a, b, c
Ans: C
17. Factor endowment theory is also known as
a. Modern theory of international trade.
b. Classical theory of international trade.
c. Reciprocal demand theory.
d. Factor proportions theory of international trade.
Codes :
(A) a and b (B) b and c
(C) a and d (D) c and d
Ans: C
18. Most important theory of increasing public expenditure is associated with
a. Adolph Wagner’s hypothesis
b. Critical limit hypothesis
c. Administrative efficiency hypothesis
d. Stability of income hypothesis
Codes :
(A) a and b (B) a and c
(C) a (D) c and d
Ans: C
19. Under the Brettonwood system, the long term development assistance was to be provided by
a. IBRD
b. IDA
c. IMF
d. All the above
Codes :
(A) a and b (B) a, b, c
(C) b and c (D) d
Ans: A
20. The Planning Commission of India has recently announced the poverty line as
a. ` 42 per day per person for urban area.
b. ` 26 per person per day for rural areas.
c. ` 32 per person per day for urban areas.
d. ` 32 per day per person for rural areas.
Codes :
(A) a and b (B) a and c
(C) b and c (D) c and d
Ans: C
Q. Nos. 21-30 : Read the following questions and select the right combination of Assertion (A) and Reason (R) from the codes given
below :
21. Assertion (A) : There is a natural tendency to collude under oligopoly.
Reason (R) : Inter-dependence of firms in oligopolistic markets.
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 correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.
Ans: B
22. Assertion (A) : In short run, the marginal cost of output is the cost of additional labour and materials used in production.
Reason (R) : Materials and labour used in production alone vary in short run.
Codes :
(A) (A) is correct and (R) is incorrect.
(B) (A) is incorrect, but (R) is correct.
(C) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(D) Both (A) and (R) are incorrect.
Ans: C
23. Assertion (A) : Post reform liberal trade policies have stimulated India’s growth.
Reason (R) : Private enterprise got opportunities to contribute to growth of Indian manufacturing industries.
Codes :
(A) Both (A) and (R) are correct, and (R) is the correct explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
(C) Both (A) and (R) are incorrect.
(D) (A) is incorrect, but (R) is correct.
Ans: A
a. Modern theory of international trade.
b. Classical theory of international trade.
c. Reciprocal demand theory.
d. Factor proportions theory of international trade.
Codes :
(A) a and b (B) b and c
(C) a and d (D) c and d
Ans: C
18. Most important theory of increasing public expenditure is associated with
a. Adolph Wagner’s hypothesis
b. Critical limit hypothesis
c. Administrative efficiency hypothesis
d. Stability of income hypothesis
Codes :
(A) a and b (B) a and c
(C) a (D) c and d
Ans: C
19. Under the Brettonwood system, the long term development assistance was to be provided by
a. IBRD
b. IDA
c. IMF
d. All the above
Codes :
(A) a and b (B) a, b, c
(C) b and c (D) d
Ans: A
20. The Planning Commission of India has recently announced the poverty line as
a. ` 42 per day per person for urban area.
b. ` 26 per person per day for rural areas.
c. ` 32 per person per day for urban areas.
d. ` 32 per day per person for rural areas.
Codes :
(A) a and b (B) a and c
(C) b and c (D) c and d
Ans: C
Q. Nos. 21-30 : Read the following questions and select the right combination of Assertion (A) and Reason (R) from the codes given
below :
21. Assertion (A) : There is a natural tendency to collude under oligopoly.
Reason (R) : Inter-dependence of firms in oligopolistic markets.
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 correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.
Ans: B
22. Assertion (A) : In short run, the marginal cost of output is the cost of additional labour and materials used in production.
Reason (R) : Materials and labour used in production alone vary in short run.
Codes :
(A) (A) is correct and (R) is incorrect.
(B) (A) is incorrect, but (R) is correct.
(C) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(D) Both (A) and (R) are incorrect.
Ans: C
23. Assertion (A) : Post reform liberal trade policies have stimulated India’s growth.
Reason (R) : Private enterprise got opportunities to contribute to growth of Indian manufacturing industries.
Codes :
(A) Both (A) and (R) are correct, and (R) is the correct explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
(C) Both (A) and (R) are incorrect.
(D) (A) is incorrect, but (R) is correct.
Ans: A
24. Assertion (A) : Use of goods and services from which one can be excluded are pure private goods.
Reason (R) : Such goods and services are not provided free by the State.
Codes :
(A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.
Ans: A
25. Assertion (A) : ‘A country is poor because it is poor’.
Reason (R) : Income of a poor country is low, so its savings and investment are low. Low investment limits its productive capacity which leads to low output and income.
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 correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.
Ans: B
26. Assertion (A) : All historical events are the result of a continuous economic struggle between different classes and groups in a
society.
Reason (R) : This struggle is because of the conflict between the mode of production and the value attached to the roles of different agents of production.
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 correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.
Ans: B
27. Assertion (A) : K/L will adjust through time to the equilibrium value of the ratio.
Reason (R) : Technical coefficients of production are fixed.
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 correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.
Ans: A
28. Assertion (A) : Investment has a demand effect.
Reason (R) : Investment augments the productivity and income in the economy.
Codes :
(A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
(C) (A) is correct, and (R) is not correct.
(D) (A) is incorrect and (R) is correct.
Ans: A
29. Assertion (A) : Agriculture is the main source of livelihood of people in India.
Reason (R) : Measures for agricultural development should be undertaken.
Codes :
(A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(B) Both (A) and (R) are correct, but (R) is incorrect explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (A) is incorrect and (R) is correct.
Ans: B
Reason (R) : Such goods and services are not provided free by the State.
Codes :
(A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.
Ans: A
25. Assertion (A) : ‘A country is poor because it is poor’.
Reason (R) : Income of a poor country is low, so its savings and investment are low. Low investment limits its productive capacity which leads to low output and income.
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 correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.
Ans: B
26. Assertion (A) : All historical events are the result of a continuous economic struggle between different classes and groups in a
society.
Reason (R) : This struggle is because of the conflict between the mode of production and the value attached to the roles of different agents of production.
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 correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.
Ans: B
27. Assertion (A) : K/L will adjust through time to the equilibrium value of the ratio.
Reason (R) : Technical coefficients of production are fixed.
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 correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.
Ans: A
28. Assertion (A) : Investment has a demand effect.
Reason (R) : Investment augments the productivity and income in the economy.
Codes :
(A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
(C) (A) is correct, and (R) is not correct.
(D) (A) is incorrect and (R) is correct.
Ans: A
29. Assertion (A) : Agriculture is the main source of livelihood of people in India.
Reason (R) : Measures for agricultural development should be undertaken.
Codes :
(A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(B) Both (A) and (R) are correct, but (R) is incorrect explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (A) is incorrect and (R) is correct.
Ans: B
30. Assertion (A) : In the following regression equation Y = a + bX, 'a' shows the autonomous value of Y.
Reason (R) : If X = 0, Y = a holds. Hence, a is the minimum value of Y which is independent of any influence of X on Y.
Codes :
(A) Both (A) and (R) are correct and (R) is the true explanation of (A).
(B) (A) is correct, but (R) is not the correct explanation of (A).
(C) (A) is correct, but (R) is not correct.
(D) (A) is incorrect, but (R) is correct.
Ans: A
Q. Nos. 31-40 : Read the questions and select the correct sequence from the codes given below :
31. Identify the order of chronological development of the theory of demand.
a. Marshall’s theory of demand
b. Indifference curves
c. Revealed preference theory
d. Weak Preference ordering theory of demand.
Codes :
(A) a, c, d, b (B) d, b, a, c
(C) a, c, b, d (D) a, b, c, d
Ans: D
32. Identify the correct chronological order of the following theories :
a. Cambridge version of quantity theory of money.
b. Fisher’s version of quantity theory of money.
c. Tobin’s theory of demand for money.
d. Baumol’s theory of demand for inventory.
Codes :
(A) c, d, a, b (B) b, a, d, c
(C) d, a, b, c (D) a, b, c, d
Ans: B
33. Identify the correct chronological order of the following :
a. Keynes’ consumption function
b. Life Cycle hypothesis
c. Relative income hypothesis
d. Friedman’s permanent income hypothesis
Codes :
(A) d, b, a, c (B) b, a, c, d
(C) a, c, d, b (D) c, d, b, a
Ans: C
34. Identify the correct chronology of stages of Marxian model of economic development.
a. Capitalist crisis
b. Capital accumulation
c. Surplus value
d. Materialistic interpretation of history
Codes :
(A) b, a, c, d (B) c, d, b, a
(C) d, c, b, a (D) c, b, a, d
Ans: D
35. The sequencing process of Harrod’s model of development is
a. Natural growth rate
b. Warranted growth rate
c. Actual growth rate
d. Divergence
Codes :
(A) d, c, b, a (B) c, b, a, d
(C) b, a, d, c (D) a, d, c, b
Ans: B
36. Arrange the following summits of SAARC members in order in which these were organized :
a. New Delhi b. Bangalore
c. Islamabad d. Kathmandu
Codes :
(A) a, c, d, b (B) a, b, c, d
(C) b, d, c, a (D) c, b, a, d
Ans: C
37. Arrange the structure of balance of payments accounts in which these items appear :
a. Capital account
b. Errors and omissions
c. Current account
d. Official settlements account
Codes :
(A) a, b, c, d (B) c, a, d, b
(C) d, c, b, a (D) c, d, a, b
Ans: B
Reason (R) : If X = 0, Y = a holds. Hence, a is the minimum value of Y which is independent of any influence of X on Y.
Codes :
(A) Both (A) and (R) are correct and (R) is the true explanation of (A).
(B) (A) is correct, but (R) is not the correct explanation of (A).
(C) (A) is correct, but (R) is not correct.
(D) (A) is incorrect, but (R) is correct.
Ans: A
Q. Nos. 31-40 : Read the questions and select the correct sequence from the codes given below :
31. Identify the order of chronological development of the theory of demand.
a. Marshall’s theory of demand
b. Indifference curves
c. Revealed preference theory
d. Weak Preference ordering theory of demand.
Codes :
(A) a, c, d, b (B) d, b, a, c
(C) a, c, b, d (D) a, b, c, d
Ans: D
32. Identify the correct chronological order of the following theories :
a. Cambridge version of quantity theory of money.
b. Fisher’s version of quantity theory of money.
c. Tobin’s theory of demand for money.
d. Baumol’s theory of demand for inventory.
Codes :
(A) c, d, a, b (B) b, a, d, c
(C) d, a, b, c (D) a, b, c, d
Ans: B
33. Identify the correct chronological order of the following :
a. Keynes’ consumption function
b. Life Cycle hypothesis
c. Relative income hypothesis
d. Friedman’s permanent income hypothesis
Codes :
(A) d, b, a, c (B) b, a, c, d
(C) a, c, d, b (D) c, d, b, a
Ans: C
34. Identify the correct chronology of stages of Marxian model of economic development.
a. Capitalist crisis
b. Capital accumulation
c. Surplus value
d. Materialistic interpretation of history
Codes :
(A) b, a, c, d (B) c, d, b, a
(C) d, c, b, a (D) c, b, a, d
Ans: D
35. The sequencing process of Harrod’s model of development is
a. Natural growth rate
b. Warranted growth rate
c. Actual growth rate
d. Divergence
Codes :
(A) d, c, b, a (B) c, b, a, d
(C) b, a, d, c (D) a, d, c, b
Ans: B
36. Arrange the following summits of SAARC members in order in which these were organized :
a. New Delhi b. Bangalore
c. Islamabad d. Kathmandu
Codes :
(A) a, c, d, b (B) a, b, c, d
(C) b, d, c, a (D) c, b, a, d
Ans: C
37. Arrange the structure of balance of payments accounts in which these items appear :
a. Capital account
b. Errors and omissions
c. Current account
d. Official settlements account
Codes :
(A) a, b, c, d (B) c, a, d, b
(C) d, c, b, a (D) c, d, a, b
Ans: B
38. State the order of the appointment of the following as chairman of Finance Commission :
a. K.C. Neogy
b. K. Brahamanand Reddy
c. N.K.P. Salve
d. A.K. Chanda
Codes :
(A) a, c, b, d (B) a, d, b, c
(C) a, c, d, b (D) a, b, d, c
Ans: B
39. Indicate the sequence of the following in terms of the implementation.
a. Income Tax
b. Expenditure Tax
c. Value Added Tax
d. Fringe Benefits Tax
Codes :
(A) a, c, b, d (B) a, b, c, d
(C) b, c, d, a (D) c, d, a, b
Ans: B
40. Determine the order in which the following were developed
a. Fisher’s F test of significance of differences between the means of more than two samples.
b. Gosset’s t-test of difference between the means of two samples.
c. Pearson’s correlation coefficient.
d. Spearman’s rank correlation coefficient.
Codes :
(A) a, b, c, d (B) b, a, c, d
(C) c, b, a, d (D) d, a, b, c
Ans: C
Q. Nos. 41-50 : Read the following questions and match the correct pair from List – I and II. Use the codes given below for answering :
41. List – I List – II
a. Kinked demand curve hypothesis 1. William Baumol
b. Sales maximization model of oligopoly 2. Paul Sweezy
c. Social Welfare Criterion 3. Adam Smith
d. Law of Invisible hand 4. Bergson
Codes :
a b c d
(A) 4 3 1 2
(B) 2 1 4 3
(C) 2 3 1 4
(D) 1 4 3 2
Ans: B
42. List – I List – II
a. Psychological Law of Consumption 1. Irving Fisher
b. Time preference theory of interest 2. J.M. Keynes
c. Public Choice View 3. Mundell and Fleming
d. Open Economy IS-LM model 4. Gorden Tullock
Codes :
a b c d
(A) 3 2 4 1
(B) 4 1 3 2
(C) 2 1 4 3
(D) 1 3 4 2
Ans: C
43. List – I List – II
a. Mid-day meal scheme 1. 2006
b. Implementation of M-NREGA 2. 1995
c. Cash Reserve Ratio 3. Finance Commission
d. Divisible Taxes 4. Reserve Bank of India
Codes :
a b c d
(A) 1 2 3 4
(B) 2 1 4 3
(C) 4 2 3 1
(D) 3 4 1 2
Ans: B
44. List – I List – II
a. Monetary Policy 1. Tax Rate
b. Trade Policy 2. Margin Money
c. Credit Policy 3. Imports and Exports
d. Fiscal Policy 4. Bank Rate
Codes :
a b c d
(A) 4 3 2 1
(B) 4 2 3 1
(C) 3 2 1 4
(D) 2 1 4 3
Ans: A
a. K.C. Neogy
b. K. Brahamanand Reddy
c. N.K.P. Salve
d. A.K. Chanda
Codes :
(A) a, c, b, d (B) a, d, b, c
(C) a, c, d, b (D) a, b, d, c
Ans: B
39. Indicate the sequence of the following in terms of the implementation.
a. Income Tax
b. Expenditure Tax
c. Value Added Tax
d. Fringe Benefits Tax
Codes :
(A) a, c, b, d (B) a, b, c, d
(C) b, c, d, a (D) c, d, a, b
Ans: B
40. Determine the order in which the following were developed
a. Fisher’s F test of significance of differences between the means of more than two samples.
b. Gosset’s t-test of difference between the means of two samples.
c. Pearson’s correlation coefficient.
d. Spearman’s rank correlation coefficient.
Codes :
(A) a, b, c, d (B) b, a, c, d
(C) c, b, a, d (D) d, a, b, c
Ans: C
Q. Nos. 41-50 : Read the following questions and match the correct pair from List – I and II. Use the codes given below for answering :
41. List – I List – II
a. Kinked demand curve hypothesis 1. William Baumol
b. Sales maximization model of oligopoly 2. Paul Sweezy
c. Social Welfare Criterion 3. Adam Smith
d. Law of Invisible hand 4. Bergson
Codes :
a b c d
(A) 4 3 1 2
(B) 2 1 4 3
(C) 2 3 1 4
(D) 1 4 3 2
Ans: B
42. List – I List – II
a. Psychological Law of Consumption 1. Irving Fisher
b. Time preference theory of interest 2. J.M. Keynes
c. Public Choice View 3. Mundell and Fleming
d. Open Economy IS-LM model 4. Gorden Tullock
Codes :
a b c d
(A) 3 2 4 1
(B) 4 1 3 2
(C) 2 1 4 3
(D) 1 3 4 2
Ans: C
43. List – I List – II
a. Mid-day meal scheme 1. 2006
b. Implementation of M-NREGA 2. 1995
c. Cash Reserve Ratio 3. Finance Commission
d. Divisible Taxes 4. Reserve Bank of India
Codes :
a b c d
(A) 1 2 3 4
(B) 2 1 4 3
(C) 4 2 3 1
(D) 3 4 1 2
Ans: B
44. List – I List – II
a. Monetary Policy 1. Tax Rate
b. Trade Policy 2. Margin Money
c. Credit Policy 3. Imports and Exports
d. Fiscal Policy 4. Bank Rate
Codes :
a b c d
(A) 4 3 2 1
(B) 4 2 3 1
(C) 3 2 1 4
(D) 2 1 4 3
Ans: A
45. List – I List – II
a. J.M. Buchanan 1. Canons of Public Expenditure
b. Findlay Shirras 2. Functional Finance
c. R.N. Bhargava 3. Public-Choice Theory
d. A.P. Lerner 4. Federal Finance
Codes :
a b c d
(A) 3 2 1 4
(B) 3 1 4 2
(C) 2 3 1 4
(D) 1 4 3 2
Ans: B
46. List – I List – II
a. Organic Composition of Capital 1. Hirschman
b. Doctrine of Natural Law 2. Schumpeter
c. Innovation 3. Marx
d. Doctrine of Unbalanced Growth 4. Adam
Smith
Codes :
a b c d
(A) 3 4 2 1
(B) 4 3 1 2
(C) 2 1 3 4
(D) 1 2 4 3
Ans: A
47. List – I List – II
a. Low Income Equilibrium Trap 1. Karl Marx
b. Poverty Measurement 2. Adam Smith
c. Laissezfair 3. Nelson
d. Industrial Reserve Army 4. Suresh Tendulkar
Codes :
a b c d
(A) 1 2 4 3
(B) 3 4 2 1
(C) 4 3 1 2
(D) 2 1 3 4
Ans: B
48. List – I List – II
a. Law of Absolute Cost Advantage 1. Haberler
b. Doctrine of Comparative Cost Advantage 2. Hescher Ohlin
c. Modern Theory of International Trade 3. Adam Smith
d. Opportunity Cost Principle 4. Ricardo
Codes :
a b c d
(A) 4 2 1 3
(B) 3 4 2 1
(C) 2 3 4 1
(D) 1 4 3 2
Ans: B
49. List – I List – II
a. Monetarism 1. R.F. Kahn
b. Employment multiplier 2. T. Havelmo
c. Multiplier effect of balanced budget 3. John Muth
d. Rational expectation hypothesis 4. Milton Friedman
Codes :
a b c d
(A) 2 4 3 1
(B) 4 1 2 3
(C) 1 3 4 2
(D) 3 2 1 4
Ans: B
50. List – I List – II
a. Theory of Probability 1. Single value to represent distribution
b. Mean 2. Uncertain events
c. Normal Distribution 3. Mini replica of population
d. Sample 4. Symmetrical with almost total area with in M(mean) +–30(sig, ma)
Codes :
a b c d
(A) 1 2 3 4
(B) 4 3 2 1
(C) 2 1 4 3
(D) 4 1 2 3
Ans: C
a. J.M. Buchanan 1. Canons of Public Expenditure
b. Findlay Shirras 2. Functional Finance
c. R.N. Bhargava 3. Public-Choice Theory
d. A.P. Lerner 4. Federal Finance
Codes :
a b c d
(A) 3 2 1 4
(B) 3 1 4 2
(C) 2 3 1 4
(D) 1 4 3 2
Ans: B
46. List – I List – II
a. Organic Composition of Capital 1. Hirschman
b. Doctrine of Natural Law 2. Schumpeter
c. Innovation 3. Marx
d. Doctrine of Unbalanced Growth 4. Adam
Smith
Codes :
a b c d
(A) 3 4 2 1
(B) 4 3 1 2
(C) 2 1 3 4
(D) 1 2 4 3
Ans: A
47. List – I List – II
a. Low Income Equilibrium Trap 1. Karl Marx
b. Poverty Measurement 2. Adam Smith
c. Laissezfair 3. Nelson
d. Industrial Reserve Army 4. Suresh Tendulkar
Codes :
a b c d
(A) 1 2 4 3
(B) 3 4 2 1
(C) 4 3 1 2
(D) 2 1 3 4
Ans: B
48. List – I List – II
a. Law of Absolute Cost Advantage 1. Haberler
b. Doctrine of Comparative Cost Advantage 2. Hescher Ohlin
c. Modern Theory of International Trade 3. Adam Smith
d. Opportunity Cost Principle 4. Ricardo
Codes :
a b c d
(A) 4 2 1 3
(B) 3 4 2 1
(C) 2 3 4 1
(D) 1 4 3 2
Ans: B
49. List – I List – II
a. Monetarism 1. R.F. Kahn
b. Employment multiplier 2. T. Havelmo
c. Multiplier effect of balanced budget 3. John Muth
d. Rational expectation hypothesis 4. Milton Friedman
Codes :
a b c d
(A) 2 4 3 1
(B) 4 1 2 3
(C) 1 3 4 2
(D) 3 2 1 4
Ans: B
50. List – I List – II
a. Theory of Probability 1. Single value to represent distribution
b. Mean 2. Uncertain events
c. Normal Distribution 3. Mini replica of population
d. Sample 4. Symmetrical with almost total area with in M(mean) +–30(sig, ma)
Codes :
a b c d
(A) 1 2 3 4
(B) 4 3 2 1
(C) 2 1 4 3
(D) 4 1 2 3
Ans: C
51. Arrange the following in chronological order :
I. The Indirect Tax Enquiry Committee (Jha Committee)
II. Tax Reforms Committee (Chelliah Committee)
III. Taxation Enquiry Commission (Matthur Commission)
IV. The Direct Tax Enquiry Committee (Wanchoo Committee)
Codes :
(A) III, II, IV, I
(B) III, I, IV, II
(C) II, III, I, IV
(D) III, IV, I, II
Ans: B
52. Which of the following are relevant in Zero Base Budgeting ?
I. Each item of expenditure is challenged in pre-budget review.
II. No minimum level of expenditure is allowed to be taken as given.
III. Expenditure of each item is increased marginally.
IV. Most item of expenditure is taken for granted when budget is prepared for the next year.
Codes :
(A) I and III are correct.
(B) I, II and IV are correct.
(C) I and II are correct.
(D) I, III and IV are correct.
Ans: A
53. Match the items given in List – I with those in List – II :
List – I List – II
I. Optimal Income Taxation 1. Charles Tiebout
II. An Economic Theory of Politics 2. Peter A. Phyrr
III. Local Public Goods 3. F. Ramsey
IV. Zero Base Budgeting 4. Anthony Downs
Codes :
I II III IV
(A) 3 1 4 2
(B) 2 3 1 4
(C) 3 2 1 4
(D) 3 4 1 2
Ans: D
54. Which of the following is tantamount to absence of taxation ?
(A) Shifting of the tax
(B) Tax transformation
(C) Evasion of tax
(D) Tax capitalisation
Ans: C
55. Which of the following tax is within the jurisdiction of States as enumerated in List – II of the Schedule VII of the Constitution of
India ?
(A) Taxes on Railway freights and fares.
(B) Taxes on sale and purchase of newspapers and on advertisement therein.
(C) Rate of stamp duty in respect of certain financial documents.
(D) Taxes on luxuries, including entertainments, betting and gambling.
Ans: B
56. Cohin Clark has argued that for most countries of the world, the safe upper limit of taxation is
(A) 40 percent of national income
(B) 30 percent of national income
(C) 25 percent of national income
(D) 20 percent of national income
Ans: D
57. Which of the following tax can be shifted easily ?
(A) Lump-sum tax imposed on the monopolist
(B) Tax imposed on residential house
(C) Capital goods meant for sale
(D) Succession duty
Ans: A
58. In a binomial distribution, the sum of mean and variance is 15 and the product of mean and variance is 54, then the number of observations (n) is equal to
(A) 27 (B) 30
(C) 24 (D) 33
Ans: B
59. χ2 (chi-square) test is used to test
(A) analysis of variance
(B) association between the qualitative variables
(C) difference between means of two distributions drawn from the same population.
(D) difference between the means of two distributions drawn from different population.
Ans: C
60. Random sampling implies that
(A) the observations are selected purposively.
(B) the observations are selected in a systemic manner.
(C) the observations are selected in an adhoc manner.
(D) the observations are selected in clusters.
Ans: D
61. The exchange rate is kept the same in all parts of the market by
(A) exchange arbitrage
(B) interest arbitrage
(C) hedging
(D) speculation
Ans: B
62. Which are relevant conditions assumed by the factor price equalization theorem ?
I. The countries are characterised by different factor endowments.
II. The countries are characterised by different production functions.
III. The industries are characterised by different factor intensities.
IV. Each country will export the commodity which uses its abundant factor relatively intensively.
Codes :
(A) I, II, III, IV
(B) I, III, IV
(C) I, II, IV
(D) I, III, II
Ans: C
63. Which of the following is true with respect to the monetary approach to the balance of payments ?
(A) It views the balance of payments as an essentially monetary phenomenon.
(B) A balance of payments deficit results from an excess demand of money in the nation.
(C) A balance of payments surplus results from an excess supply of money.
(D) Balance of payments disequilibrium are not automatically corrected in the long run.
Ans: A
64. When a nation imposes an import tariff, the nation’s offer curve will
(A) shift away from the axis measuring its export commodity.
(B) shift away from the axis measuring its import commodity.
(C) not shift.
(D) any of the above is possible.
Ans: C
65. If the international terms of trade settle at a level that is between each country’s opportunity cost then
(A) there is no basis for gainful trade for either country.
(B) both countries gain from trade.
(C) only one country gains from trade.
(D) one country gains and the other country loses from trade.
Ans: C
66. Whose model of the following economists makes use of the stock adjustment principle to explain business cycles ?
(A) N. Kaldor
(B) J.R. Hicks
(C) P. Samuelson
(D) J.M. Keynes
Ans: C
67. The concept of vicious circle of poverty is associated with
(A) J.M. Keynes
(B) Ragner Nurkse
(C) Karl Marx
(D) J.S. Mill
Ans: B
68. Inverted ‘U’ shaped income distribution hypothesis is associated with
(A) J.B. Clark
(B) David Ricardo
(C) Simon Kuznets
(D) Adam Smith
Ans: B
69. Components of HDI are
I. Longevity
II. Infant mortality
III. Educational attainment
IV. Decent standard of living
Codes :
(A) I, II and III are correct.
(B) II, III and IV are correct.
(C) II, I, and IV are correct.
(D) I, III and IV are correct.
Ans: C
70. Arrange the proponents of classical theory of development in a sequential order :
I. David Ricardo
II. Adam Smith
III. J.S. Mill
IV. Robert Malthus
Codes :
(A) II IV III I
(B) IV III I II
(C) III II IV I
(D) I II III IV
Ans: A
71. Assertion (A) : In Marxian scheme of things, M → C → M', where M' > M and M' – M is surplus value.
Reason (R) : The main cause of this surplus value is raw materials, machines, etc.
Codes :
(A) (A) is wrong but (R) is correct.
(B) (A) is correct but (R) is wrong.
(C) Both (A) and (R) are correct.
(D) Both (A) and (R) are wrong.
Ans: D
72. Match the items in the List – I with items in List – II :
List – I List – II
I. Structural view of Underdevelopment 1. Classical Economists
II. Laissez-faire Policy 2. Hollis Chenery
III. Departmental Scheme of Expanded Reproduction 3. Steady State Growth
IV. Golden Age of Accumulation 4. Karl Marx
Codes :
I II III IV
(A) 2 1 4 3
(B) 4 2 3 1
(C) 1 4 2 3
(D) 3 4 1 2
Ans: C
73. Match the items in the List – I with items in List – II :
List – I List – II
I. Critical Minimum Effort Thesis 1. R.F. Kahn
II. Knife-edge Equilibrium 2. Rosentein Rodan
III. Bastard Golden Age 3. Leibenstein
IV. Big Push Theory 4. Harrod
Codes :
I II III IV
(A) 3 4 1 2
(B) 1 3 4 2
(C) 2 1 3 4
(D) 4 2 1 3
Ans: C
74. Which years in India have been the best and the worst in terms of growth rate of national income ?
(A) 2007-08 and 1997-98
(B) 2006-07 and 1966-67
(C) 1988-89 and 1979-80
(D) 2003-04 and 1957-58
Ans: B
75. Rank the States in ascending order of the crude birth rate in the recent years :
I. Andhra Pradesh
II. Karnataka
III. Madhya Pradesh
IV. Uttar Pradesh
Codes :
(A) I, II, III, IV
(B) II, III, I, IV
(C) I, II, IV, III
(D) II, I, IV, III
Ans: C
76. Which five year plan of India has recorded the largest gap in terms of growth rate between the services sector and the industrial sector?
(A) Seventh Plan
(B) Eighth Plan
(C) Ninth Plan
(D) Tenth Plan
Ans: B
77. Provide the correct answer about the desired growth target of the manufacturing sector in the medium term as per the National
Manufacturing Policy of India.
(A) 6 – 8 percent
(B) 8 – 10 percent
(C) 10 – 12 percent
(D) 12 – 14 percent
Ans: B
78. Which of the following countries have better Human Development Index (HDI) as per the HDR 2011 ?
I. Sri Lanka
II. Pakistan
III. Kenya
IV. Egypt
Codes :
(A) Sri Lanka and Egypt
(B) Sri Lanka and Kenya
(C) Pakistan and Sri Lanka
(D) Pakistan and Kenya
Ans: D
79. What was the amount of outlay under MGNREGA in 2011-12 by the Government of India ?
(A) Rs. 25,000 crore
(B) Rs. 30,000 crore
(C) Rs. 40,000 crore
(D) Rs. 55,000 crore
Ans: A
80. Provide correct answer about the share of India in the world merchandize exports in 2010 :
(A) 0.5 percent
(B) 0.9 percent
(C) 1.1 percent
(D) 1.5 percent
Ans: D
81. If the cost of transporting a goods between two nations exceeds the pretrade difference for the goods between two nations, then trade in that goods is
(A) possible (B) impossible
(C) reversal (D) cannot say
Ans: A
82. According to the Rybczynski theorem, the growth of only one factor at constant relative commodity prices, leads to an absolute expansion in the output of
(A) both commodities
(B) the commodity using the growing factor intensively
(C) the commodity using the non growing factor intensively
(D) any of the above
Ans: C
83. When the rate of tax decreases as the tax base increases, then these taxes are called
(a) Progressive tax
(b) Regressive tax
(c) Proportional tax
(d) Degressive tax
Answer: Option B
84. Who gains during the period of rising prices ?
(a) Debtors
(b) Creditors
(c) Both (a) & (b)
(d) None of these
Answer: Option A
I. The Indirect Tax Enquiry Committee (Jha Committee)
II. Tax Reforms Committee (Chelliah Committee)
III. Taxation Enquiry Commission (Matthur Commission)
IV. The Direct Tax Enquiry Committee (Wanchoo Committee)
Codes :
(A) III, II, IV, I
(B) III, I, IV, II
(C) II, III, I, IV
(D) III, IV, I, II
Ans: B
52. Which of the following are relevant in Zero Base Budgeting ?
I. Each item of expenditure is challenged in pre-budget review.
II. No minimum level of expenditure is allowed to be taken as given.
III. Expenditure of each item is increased marginally.
IV. Most item of expenditure is taken for granted when budget is prepared for the next year.
Codes :
(A) I and III are correct.
(B) I, II and IV are correct.
(C) I and II are correct.
(D) I, III and IV are correct.
Ans: A
53. Match the items given in List – I with those in List – II :
List – I List – II
I. Optimal Income Taxation 1. Charles Tiebout
II. An Economic Theory of Politics 2. Peter A. Phyrr
III. Local Public Goods 3. F. Ramsey
IV. Zero Base Budgeting 4. Anthony Downs
Codes :
I II III IV
(A) 3 1 4 2
(B) 2 3 1 4
(C) 3 2 1 4
(D) 3 4 1 2
Ans: D
54. Which of the following is tantamount to absence of taxation ?
(A) Shifting of the tax
(B) Tax transformation
(C) Evasion of tax
(D) Tax capitalisation
Ans: C
55. Which of the following tax is within the jurisdiction of States as enumerated in List – II of the Schedule VII of the Constitution of
India ?
(A) Taxes on Railway freights and fares.
(B) Taxes on sale and purchase of newspapers and on advertisement therein.
(C) Rate of stamp duty in respect of certain financial documents.
(D) Taxes on luxuries, including entertainments, betting and gambling.
Ans: B
56. Cohin Clark has argued that for most countries of the world, the safe upper limit of taxation is
(A) 40 percent of national income
(B) 30 percent of national income
(C) 25 percent of national income
(D) 20 percent of national income
Ans: D
57. Which of the following tax can be shifted easily ?
(A) Lump-sum tax imposed on the monopolist
(B) Tax imposed on residential house
(C) Capital goods meant for sale
(D) Succession duty
Ans: A
58. In a binomial distribution, the sum of mean and variance is 15 and the product of mean and variance is 54, then the number of observations (n) is equal to
(A) 27 (B) 30
(C) 24 (D) 33
Ans: B
59. χ2 (chi-square) test is used to test
(A) analysis of variance
(B) association between the qualitative variables
(C) difference between means of two distributions drawn from the same population.
(D) difference between the means of two distributions drawn from different population.
Ans: C
60. Random sampling implies that
(A) the observations are selected purposively.
(B) the observations are selected in a systemic manner.
(C) the observations are selected in an adhoc manner.
(D) the observations are selected in clusters.
Ans: D
61. The exchange rate is kept the same in all parts of the market by
(A) exchange arbitrage
(B) interest arbitrage
(C) hedging
(D) speculation
Ans: B
62. Which are relevant conditions assumed by the factor price equalization theorem ?
I. The countries are characterised by different factor endowments.
II. The countries are characterised by different production functions.
III. The industries are characterised by different factor intensities.
IV. Each country will export the commodity which uses its abundant factor relatively intensively.
Codes :
(A) I, II, III, IV
(B) I, III, IV
(C) I, II, IV
(D) I, III, II
Ans: C
63. Which of the following is true with respect to the monetary approach to the balance of payments ?
(A) It views the balance of payments as an essentially monetary phenomenon.
(B) A balance of payments deficit results from an excess demand of money in the nation.
(C) A balance of payments surplus results from an excess supply of money.
(D) Balance of payments disequilibrium are not automatically corrected in the long run.
Ans: A
64. When a nation imposes an import tariff, the nation’s offer curve will
(A) shift away from the axis measuring its export commodity.
(B) shift away from the axis measuring its import commodity.
(C) not shift.
(D) any of the above is possible.
Ans: C
65. If the international terms of trade settle at a level that is between each country’s opportunity cost then
(A) there is no basis for gainful trade for either country.
(B) both countries gain from trade.
(C) only one country gains from trade.
(D) one country gains and the other country loses from trade.
Ans: C
66. Whose model of the following economists makes use of the stock adjustment principle to explain business cycles ?
(A) N. Kaldor
(B) J.R. Hicks
(C) P. Samuelson
(D) J.M. Keynes
Ans: C
67. The concept of vicious circle of poverty is associated with
(A) J.M. Keynes
(B) Ragner Nurkse
(C) Karl Marx
(D) J.S. Mill
Ans: B
68. Inverted ‘U’ shaped income distribution hypothesis is associated with
(A) J.B. Clark
(B) David Ricardo
(C) Simon Kuznets
(D) Adam Smith
Ans: B
69. Components of HDI are
I. Longevity
II. Infant mortality
III. Educational attainment
IV. Decent standard of living
Codes :
(A) I, II and III are correct.
(B) II, III and IV are correct.
(C) II, I, and IV are correct.
(D) I, III and IV are correct.
Ans: C
70. Arrange the proponents of classical theory of development in a sequential order :
I. David Ricardo
II. Adam Smith
III. J.S. Mill
IV. Robert Malthus
Codes :
(A) II IV III I
(B) IV III I II
(C) III II IV I
(D) I II III IV
Ans: A
71. Assertion (A) : In Marxian scheme of things, M → C → M', where M' > M and M' – M is surplus value.
Reason (R) : The main cause of this surplus value is raw materials, machines, etc.
Codes :
(A) (A) is wrong but (R) is correct.
(B) (A) is correct but (R) is wrong.
(C) Both (A) and (R) are correct.
(D) Both (A) and (R) are wrong.
Ans: D
72. Match the items in the List – I with items in List – II :
List – I List – II
I. Structural view of Underdevelopment 1. Classical Economists
II. Laissez-faire Policy 2. Hollis Chenery
III. Departmental Scheme of Expanded Reproduction 3. Steady State Growth
IV. Golden Age of Accumulation 4. Karl Marx
Codes :
I II III IV
(A) 2 1 4 3
(B) 4 2 3 1
(C) 1 4 2 3
(D) 3 4 1 2
Ans: C
73. Match the items in the List – I with items in List – II :
List – I List – II
I. Critical Minimum Effort Thesis 1. R.F. Kahn
II. Knife-edge Equilibrium 2. Rosentein Rodan
III. Bastard Golden Age 3. Leibenstein
IV. Big Push Theory 4. Harrod
Codes :
I II III IV
(A) 3 4 1 2
(B) 1 3 4 2
(C) 2 1 3 4
(D) 4 2 1 3
Ans: C
74. Which years in India have been the best and the worst in terms of growth rate of national income ?
(A) 2007-08 and 1997-98
(B) 2006-07 and 1966-67
(C) 1988-89 and 1979-80
(D) 2003-04 and 1957-58
Ans: B
75. Rank the States in ascending order of the crude birth rate in the recent years :
I. Andhra Pradesh
II. Karnataka
III. Madhya Pradesh
IV. Uttar Pradesh
Codes :
(A) I, II, III, IV
(B) II, III, I, IV
(C) I, II, IV, III
(D) II, I, IV, III
Ans: C
76. Which five year plan of India has recorded the largest gap in terms of growth rate between the services sector and the industrial sector?
(A) Seventh Plan
(B) Eighth Plan
(C) Ninth Plan
(D) Tenth Plan
Ans: B
77. Provide the correct answer about the desired growth target of the manufacturing sector in the medium term as per the National
Manufacturing Policy of India.
(A) 6 – 8 percent
(B) 8 – 10 percent
(C) 10 – 12 percent
(D) 12 – 14 percent
Ans: B
78. Which of the following countries have better Human Development Index (HDI) as per the HDR 2011 ?
I. Sri Lanka
II. Pakistan
III. Kenya
IV. Egypt
Codes :
(A) Sri Lanka and Egypt
(B) Sri Lanka and Kenya
(C) Pakistan and Sri Lanka
(D) Pakistan and Kenya
Ans: D
79. What was the amount of outlay under MGNREGA in 2011-12 by the Government of India ?
(A) Rs. 25,000 crore
(B) Rs. 30,000 crore
(C) Rs. 40,000 crore
(D) Rs. 55,000 crore
Ans: A
80. Provide correct answer about the share of India in the world merchandize exports in 2010 :
(A) 0.5 percent
(B) 0.9 percent
(C) 1.1 percent
(D) 1.5 percent
Ans: D
81. If the cost of transporting a goods between two nations exceeds the pretrade difference for the goods between two nations, then trade in that goods is
(A) possible (B) impossible
(C) reversal (D) cannot say
Ans: A
82. According to the Rybczynski theorem, the growth of only one factor at constant relative commodity prices, leads to an absolute expansion in the output of
(A) both commodities
(B) the commodity using the growing factor intensively
(C) the commodity using the non growing factor intensively
(D) any of the above
Ans: C
83. When the rate of tax decreases as the tax base increases, then these taxes are called
(a) Progressive tax
(b) Regressive tax
(c) Proportional tax
(d) Degressive tax
Answer: Option B
84. Who gains during the period of rising prices ?
(a) Debtors
(b) Creditors
(c) Both (a) & (b)
(d) None of these
Answer: Option A
85. Low productivity for agriculture in India is attributed to
(A) Poor irrigation facilities
(B) Heavy dependence on monsoon
(C) Absence of new technology
(D) All the above
Ans: D
86. Quantum of food subsidy was highest in the year
(A) 2009 – 10 (B) 2008 – 09
(C) 2004 – 05 (D) 2001 – 02
Ans: A
87. Productivity of Indian agriculture can be enhanced by
1. Increased public investment
2. Increased irrigation facilities
3. Higher support price to the farmers
4. Shifting workers from industry to agriculture
Select the correct answer from the given codes :
Codes :
(A) 1, 2 and 4
(B) 1, 2 and 3
(C) 2, 3 and 4
(D) 3, 4 and 1
Ans: B
88. High powered money comprises
(A) Currency held by the public + Cash reserves of banks
(B) Currency held by the public + Demand and time deposits + Cash reserves of banks
(C) Currency held by the public + Cash reserves of banks + Other deposits of RBI
(D) Currency held by the public + other deposits of RBI
Ans: C
89. Capital to risk-weighted asset ratio of all scheduled commercial banks in India under the Basel – I framework is stipulated at the minimum of
(A) 7%
(B) 9%
(C) 12%
(D) 14%
Ans: B
90. Which of the following financial institutions are operating in the money market ?
1. Non-banking financial institutions
2. Acceptance Houses
3. Central Bank
4. Stock Exchanges
Select the correct answer from the given codes :
Codes :
(A) 2 and 3
(B) 1 and 3
(C) 1, 2 and 4
(D) 1, 2 and 3
Ans: D
91. Assertion (A) : The capital base of regional rural banks (RRBs) is found to be weak.
Reason (R) : Deposit mobilization of RRBs has been inadequate.
From the above two statements, select the correct answer from the given codes.
Codes :
(A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(B) Both (A) and (R) are correct but (R) is not the correct explanation of (A).
(C) (A) is false but (R) is true.
(D) (A) is true but (R) is false.
Ans: B
92. Which of the following is broad money (M3 ) in India ?
(A) Currency with public + demand deposits in the banks
(B) Currency + demand deposits + other deposits with RBI
(C) Currency + demand deposits + time deposits
(D) Currency + demand deposits + time deposits + other deposits with RBI
Ans: D
93. Which of the following did not contribute significantly to inflationary pressure in Indian economy in 2010-11 ?
(A) Food prices
(B) Prices of manufactured prices
(C) Fuel prices
(D) Metal and mineral prices
Ans: B
94. In Joan Robinson’s growth model, capital accumulation depends on
(A) Saving-income ratio
(B) Profit-wage relation and labour productivity
(C) Profit-income ratio and capital productivity
(D) Saving-investment ratio
Ans: B
95. In Hicks’ neutral technical progress, the technical progress is
(A) Capital augmenting
(B) Labour augmenting
(C) Both Labour and Capital augmenting
(D) Change in the efficiency and productivity of labour
Ans: C
96. In dual gap model, the gap can be filled up by
(A) Raising the level of saving
(B) Export promotion
(C) Steady rate of growth
(D) Foreign aid
Ans: D
97. The concept of ‘learning by doing’ was given by
(A) J.R. Hicks
(B) Kenneth Arrow
(C) Joan Robinson
(D) Nicholas Kaldor
Ans: B
98. Which of the following represents the concept of human capital ?
(A) Total human resources
(B) Total population
(C) Human resources gainfully employed in productive activities
(D) All of the above
Ans: C
99. Which of the following is disadvantageous to developing countries’ international trade ?
(A) Protection
(B) Free trade
(C) Exports of primary and import of manufactured goods
(D) None of the above
Ans: C
100. A demand curve, which is parallel to the horizontal axis, showing quantity, has the price elasticity equal to
(A) Zero
(B) Infinity
(C) Less than one
(D) One
Ans: B
(A) Poor irrigation facilities
(B) Heavy dependence on monsoon
(C) Absence of new technology
(D) All the above
Ans: D
86. Quantum of food subsidy was highest in the year
(A) 2009 – 10 (B) 2008 – 09
(C) 2004 – 05 (D) 2001 – 02
Ans: A
87. Productivity of Indian agriculture can be enhanced by
1. Increased public investment
2. Increased irrigation facilities
3. Higher support price to the farmers
4. Shifting workers from industry to agriculture
Select the correct answer from the given codes :
Codes :
(A) 1, 2 and 4
(B) 1, 2 and 3
(C) 2, 3 and 4
(D) 3, 4 and 1
Ans: B
88. High powered money comprises
(A) Currency held by the public + Cash reserves of banks
(B) Currency held by the public + Demand and time deposits + Cash reserves of banks
(C) Currency held by the public + Cash reserves of banks + Other deposits of RBI
(D) Currency held by the public + other deposits of RBI
Ans: C
89. Capital to risk-weighted asset ratio of all scheduled commercial banks in India under the Basel – I framework is stipulated at the minimum of
(A) 7%
(B) 9%
(C) 12%
(D) 14%
Ans: B
90. Which of the following financial institutions are operating in the money market ?
1. Non-banking financial institutions
2. Acceptance Houses
3. Central Bank
4. Stock Exchanges
Select the correct answer from the given codes :
Codes :
(A) 2 and 3
(B) 1 and 3
(C) 1, 2 and 4
(D) 1, 2 and 3
Ans: D
91. Assertion (A) : The capital base of regional rural banks (RRBs) is found to be weak.
Reason (R) : Deposit mobilization of RRBs has been inadequate.
From the above two statements, select the correct answer from the given codes.
Codes :
(A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(B) Both (A) and (R) are correct but (R) is not the correct explanation of (A).
(C) (A) is false but (R) is true.
(D) (A) is true but (R) is false.
Ans: B
92. Which of the following is broad money (M3 ) in India ?
(A) Currency with public + demand deposits in the banks
(B) Currency + demand deposits + other deposits with RBI
(C) Currency + demand deposits + time deposits
(D) Currency + demand deposits + time deposits + other deposits with RBI
Ans: D
93. Which of the following did not contribute significantly to inflationary pressure in Indian economy in 2010-11 ?
(A) Food prices
(B) Prices of manufactured prices
(C) Fuel prices
(D) Metal and mineral prices
Ans: B
94. In Joan Robinson’s growth model, capital accumulation depends on
(A) Saving-income ratio
(B) Profit-wage relation and labour productivity
(C) Profit-income ratio and capital productivity
(D) Saving-investment ratio
Ans: B
95. In Hicks’ neutral technical progress, the technical progress is
(A) Capital augmenting
(B) Labour augmenting
(C) Both Labour and Capital augmenting
(D) Change in the efficiency and productivity of labour
Ans: C
96. In dual gap model, the gap can be filled up by
(A) Raising the level of saving
(B) Export promotion
(C) Steady rate of growth
(D) Foreign aid
Ans: D
97. The concept of ‘learning by doing’ was given by
(A) J.R. Hicks
(B) Kenneth Arrow
(C) Joan Robinson
(D) Nicholas Kaldor
Ans: B
98. Which of the following represents the concept of human capital ?
(A) Total human resources
(B) Total population
(C) Human resources gainfully employed in productive activities
(D) All of the above
Ans: C
99. Which of the following is disadvantageous to developing countries’ international trade ?
(A) Protection
(B) Free trade
(C) Exports of primary and import of manufactured goods
(D) None of the above
Ans: C
100. A demand curve, which is parallel to the horizontal axis, showing quantity, has the price elasticity equal to
(A) Zero
(B) Infinity
(C) Less than one
(D) One
Ans: B