1. If individuals forecast future prices by examining the rates of inflation of the present and recent past, they are using:

adaptive expectations

rational expectations

inflationary expectations

structural expectations

2. Targeted Public Distribution System in India, that aims to supply subsidized food grains faces a limitation in terms of

Overly subsidizing food grains

making errors in selection of eligible beneficiaries

targeting only urban poor

targeting only women beneficiaries

3. To raise its long-run rate of economic growth, a country should

Encourage current consumption over saving

Encourage saving and investment

Increase the price level and profits

Decrease Population Rate

4. Which of the following assumption is violated if consumer preferences exhibit cyclicality?

Completeness

Reflexivity

Transitivity

Convexity

5. A risk averse individual is defined as

Utility of a lottery is less than the utility of expected value of lottery

Utility of a lottery is equal to the utility of expected value of lottery

Utility of a lottery is greater than the utility of expected value of lottery

None of the above

6. Which of the following market structures is Pareto efficient

Oligopoly

Cournot duopoly

Monopoly

None of the above

7. For the Binomial distribution with parameters n and the variance cannot exceed

n/p. where n is the number of trials and p is the probability of success

np. where n is the number of trials and p is the probability of success

n/2. where n is the number of trials

n/4. where n is the number oftrials

8. If all values of a variable are multiplied by a given non-zero number, which one of the following will not be affected?

Mean

Median

Range

Coefficient of Variation

9. The biggest problem before India's banking sector currently is

Farm debt waiver

excess man-power

Recapitalization of NPAs

To streamline branch expansion

10. A card is selected at random from an ordinary pack of52 cards. What is the probability that the card is a spade?

1/4

1/2

1/3

1

11. If the short-run aggregate supply curve is horizontal, then changes in aggregate demand affect:

level of output but not prices

prices but not level of output.

both prices and level of output

neither prices nor level of output

12. When the base year values are used as weights, the weighted average of relatives price index number is the same as the:

Laspeyre's index

Paasche's index

Simple aggregative index

Quantity index

13. According to the Agreement on Agriculture under WTO, subsidies that come under box belong to:

To be contained and reduced

To be maintained steady

Can be increased

None of the above

14. The tax multiplier is the change in output divided by the change in

Income

Taxes

Price

None

15. The unorganized sector that employs about 92 percent ofIndia's work force contributed ofGDP in 2015-16

46 percent

92 percent

32 percent

12 percent

16. Large inflow of foreign reserves, which may cause appreciation of exchange rate, can render most products of that country lose competitiveness in export market. Such phenomenon is known as:

Ratchet Effect

Dutch Decease

Duessenberg effect

Real Balance effect

17. Which of the following set is not finite?

The months of the year

The number of people living on the earth

The set R of real numbers

99,100}

18. Terms of trade refers to

Ratio of goods traded

Export Imports ratio

Ratio of values of traded

Ratio of prices of goods traded

19. Union Carbide company was asked to pay compensation to the victims of the well-known Bhopal Gas Tragedy by the Supreme Court, following .

Willingness to pay principle

Ability to pay principle

Polluter pay principle

Willingness to accept principle

20. In Groundwater exploitation through borewells can usually lead to depletion of water levels, with no one having incentive to conserve. This is an example of

Tragedy of Commons

Diminishing Returns

Limits of non-renewable resources

Rational Choice

21. According to the World Happiness Report 2016, which country tops the list

USA

India

Norway

Denmark

22. In the latest Human Development Index(HDI) report of March 2017 released by UNDP, India ranks:

(a)131

(b)127

(c)121



23. The general relationship among arithmetic mean geometric mean and harmonic mean is given by AM GM HM. But there can be a relationship of AM GM=HM if

The AM is decreasing in value, GM is remaining constant and HM is increasing in value

all the n observation values are equal

the variance of the variable tends to increase continuously

none of the above

24. Under MGNREGA, when government fails to show work after receiving a demand notice for employment from anyone, then under the Act

Government should provide unemployment allowance

Government is not liable to provide any allowance

Government needs to provide a bank loan to that person

Government has no obligation to provide any employment

25. Marginal cost of supplying a public good to an extra-user is

One

Zero

High

Infinite

26. Economy at the aggregate will be in equilibrium only when the actual expenditure equals

Planned expenditure

Actual output

Aggregate money supply

Aggregate wealth

27. if the nominal gross domestic product is Rs.8 trillion and the money supply IS Rs.2 trillion. the velocity of money is

0.25

4

16

10

28. Consider three consumer goods:

13, and 100 units of each them arc purchased at a price or Rs.l in the base year. If the current year price of Good A is Rs3. Good is Rs.5, and Good Rs.l O. then the Consumer Price Index for the current year is:

100

300

500

600

29. According to the life-cycle theory of consumption, people tend to

consume more in the early phase of their life cycle

save more in their retirement years

consume more than they earn between their early working years and retirement

save the most during their working years

30. According to Keynes, during times of economic depression, people may hold back money instead or investing them into bonds because of

Precautionary motive

Savings motive

Insurance against unemployment

Speculative motive

31. Which of the following policies is most likely to encourage long-term economic growth in a country?

An embargo on high-technology imports

A decrease in the number of immigrants to the country

An increase in government transfer payments

An increase in the savings rate

32. According to Keynes. investment during depression in the economy depends on

Animal spirits of capitalists

Interest rates

Labour Supply

World trade

33. Wholesale Price Index is not considered to reflect well the cost of living or people because it contains prices of

Only wholesale traders goods

several producers goods in addition to consumer goods

consumers goods alone

no consumers' goods at all

34. National income at factor cost is calculated as

National income at market prices -(indirect taxes subsidies)

National income at market prices (indirect taxes subsidies)

National income at market prices direct taxes subsidies)

National income at market prices+ (direct taxes subsidies)

35. In Quantity Theory of money, MV PT, Money Supply is purported to influence the Price Level' This relation holds strictly true only under the assumptions that

Velocity of Money Circulation remains constant

Volume of transaction of output is independently determined

Money is neutral in its influence on output

All of the above

36. Given the income multiplier formula m lower the marginal propensity to consume

Higher will be the multiplier effect

Lower will be the multiplier effect

Multiplier will become infinite

Multiplier will become zero

37. IMF since 1970s actively encouraged countries to adopt

Fixed exchange rate system

Currency board

Floating exchange rate system

Pegged exchange rate system

38. When manufacturers export a product to another country at a price either below the home price or below its cost of production, it is referred as

Monopoly pricing

Collusive pricing

Administrative pricing

(d)Dumping

39. In the circular flow diagram of an economy, which of the following is true?

Firms pay wages, rent, interest, and profits to households in return for use of factors of production.

Firms purchase goods and services from households in return for money payments.

Households pay wages, rent, interest, and profits to firms in return for use of factors of production.

The relationship between households and firms exists only in a traditional society.

40. If a country exports 300 units of food and imports 200 units of food, then its index of intra-industry trade in food would be

0.2.

0.4.

0.5

0.8.

41. The infant industry argument is an important theoretical basis for

Neo-colonialist theory of international exploitation.

Import-substitution strategy of industrialization.

Export-led strategy of industrialization

East-Asian miracle.

42. How many British pounds would it cost to buy a pair ofAmerican designer trousers costing $60 if the exchange rate is 1.50 dollars per British pound?

10 British pounds

20 British pounds

40 British pounds

35 British pounds

43. The J-curve illustrates which of the following.

Effects of depreciation on the home country's economy

Increase in the current account surplus due to a currency depreciation

Gradual adjustment of home prices to a currency depreciation

Short-term effects of depreciation on the current account

44. World economic growth has slowed down since 2008 because of

Rising global oil prices

Electing of Donald Trump as President of USA

Post-Financial crisis recession in OECD

Countries are unable to compete with China.

45. 'One Belt One Road' initiative by China is a

Global infrastructural project linking 65 countries

Global manufacturing hub of China

Inter-linking of rivers across countries

Look East policy

46. Which of the following persons has won Nobel prize in economics:

John Maynard Keynes

Paul Krugman

Noam Chomsky

William Baumol

47. The famous book titled Capital in the Twenty-First Century is authored by:

Karl Marx

Max Weber

Thomas Piketty

Paul Krugman

48. When the elasticity of substitution in a Cobb-Douglas production is one, it means that distribution of income is

is determined by technology

dependent on capital-labour ratio

no possibiUty of factor substitution

none of the above

49. If in country A it takes 6 units of labour to produce one unit of cloth and 10 units of labour for one unit of wine, while country B takes 4 units 5 units of labour to produce one unit of cloth and one unit of wine respectively, then

Country B has comparative advantage in wine and cloth

Country A has comparative advantage in cloth and country B in wine

Country A has a comparative advantage in "vine and country B in cloth

Country A has a comparative advantage in 'Nine and cloth

50. Which of following two countries have registered 9 percent growth rate for three successive decades

China and South Korea

China and India

South Korea and Taiwan

China and USA

51. Is it possible for all goods which a consumer purchases to be inferior goods

Yes

No

Need more information

Maybe

52. Technological efficiency occurs when the firm produces a given output

by using the maximum amount of inputs

at the greatest cost

at the least cost

by using the least amount of inputs

53. Natural monopoly is a market structure where

one firm can supply a given output at lower cost than more number of firms

Firm has no externalities compared to other firms

Firm sells to a single buyer, while competing among themselves

Firm sets price equal to marginal revenue, market shares arc competitively determined

54. An externality in a transaction is

Cost included in marginal cost

Cost included in the average cost

a cost or benefit that does not enter the price

cost but not a benefit

55. In economic models of public choice, maximize their utility by

politicians; accepting campaign contributions

bureaucrats; maximizing the budgets of their departments

politicians; debating government policies

voters; demanding a constant tax rate

56. To say that some goods are inferior means that the income elasticity of those goods

is definitely greater than 1

is negative

is positive but could be greater than or less than 1

is definitely between 0 and 1

57. Block pricing of water by Greater Hyderabad Municipal Corporation is an example of

First-Degree Price Discrimination

Second-Degree Price Discrimination

Third-Degree Price Discrimination

No Price Discrimination

58. For a Monopoly, in order to increase the sales from 100 units to 101 units, it must drop the price of all of its units fi'om Rs. 20 to Rs.19. What is the marginal revenue'?

20

19



-81

59. In Baumol's theory or oligopolistie market structure, the basic goal of the firm is

Profit maximisatio

Output maximization

Revenue maximization

Cost minimization

60. When the demand and supply curves both shift rightward, which of the following happens'?

The equilibrium quantity increases and change in the equilibrium price cannot be determined

The equilibrium price falls and change in the equilibrium quantity cannot be determined

The equilibrium price falls and the equilibrium quantity increases

The equilibrium price rises and the equilibrium quantity decreases

61. Examples of applications of range in real world includes

Weather forecasts

Quality control

Fluctuation in share prices

All of above

62. Developing countries' agricultural exports are adversely affected by

Falling agricultural production

High tariffs imposed by developed countries

Hidden subsidies given to farmers of developed countries

Hidden subsidies given to farmers of developing countries

63. A type II error is made when

The null hypothesis is rejected when it is true

The null hypothesis is accepted when it is false

The null hypothesis is accepted when it is true

The alternative hypothesis is accepted when it is false.

64. The elasticity of a good with a vertical demand curve is

infinite

unit

zero

varying

65. Log10 1









66. In a significant move, the 14th Finance Commission has increased the share of state governments in the Central tax revenues from:

32% to 42%

50% to 60%

32% to 50%

12% to 32%

67. As per the rules of the dummy variables, if a quantitative variable has M categories, we can introduce

Only M dummy variables

Only M 1 dummy variables

Only M dummy variables

Only MM dummy variables

68. The number of maternal deaths related to childbearing divided by the number of live births in that year is known as?

Maternal Mortality Index.

Gross Maternal Mortality.

Maternal Mortality Rate.

Maternal Mortality Variation.

69. Find out the value of the definite integral ydx to where y





1

1 and 2

70. One consumer has bought three commodities and his price and quantity vectors are given by P 2 and [10 20 50] respectively. Then, the total expenditure spent by the consumer can be calculated by using the formula

PQ





None of the above

71. The determinant value of the transpose of the following matrix is

9 6 3
8 5 2
7 4 1

103

15

Zero

-15

72. The concept of duality in a linear programming problem refers to the following property

the optimal solution values of choice variables are equal for both minimization and maximization programs

all constraints are satisfied with equality signs only

Optimal values of a linear programme and its dual program are equal, provided the optimal solutions do exist

all of the above

73. During the colonial rule in India, which of the following sources contributed largest to the tax revenues:

Customs tariffs

Income Tax

Sales Tax

Land Tax

74. Number of family members in different families in a town is an example of

Qualitative variable

Continuous variable

Dependent variable

Discrete variable

75. When supply of a commodity is more elastic than the demand, the tax incidence is likely to fall more on

Sellers

Buyers

Both

None

76. The monetary innovation that Mughal administrators did in the 1ill century was introduction of:

Gold coins

Silver Coins

Paper currency

Leather currency

77. Abolition of Intermediaries in Indian land tenure systems in 1950s contributed to agricultural growth by augmenting:

Land under cultivation

Yield

Labour

Technical progress

78. Which is the largest source of direct tax revenues for India currently

Wealth Tax

Customs Revenues

Income Tax

Corporate Tax

79. By 1966, Indian industrial growth reached lowest rates of growth largely because:

Fall in public investment

Infrastructural constraints

Wars and successive droughts in sixties

All of the above

80. For a consumer having the total utility function U X2) =X1^0.5 X2^0.5 ,with P1 and P2 being prices of commodities X1 and X2, and a given income of 100, the quantities of demand for commodity X2 and X1 are given by:

X2 50 and Xl

X2 25 and Xl 10

X2 10 and X1 25

X2 2 and X1 5

81. India achieved total food grain self-sufficiency by

1966-67

1976-77

(c)1986-87

(d)1996-97

82. Land Reforms in India, in terms of implementation of Land Ceilings Act, largely failed in India because:

Landless are not interested in agriculture

Compensation for land was fixed less than market price

Implementation of land reforms are harmful to agricultural production

Lack of surplus land in the country

83. According to the World Bank, a major cause of poverty is lack of access to credit markets for not having collateral. The microfinance model is said to have overcome this limitation by

Government providing collateral

By integrating moneylenders into the model

By compelling banks to lend to small borrowers

By implementing joint-liability on the group

84. Virat's score in the first five T-20 cricket matches are: 95, 88,97,82,91. He needs to have a mean score of at least 90 in his six matches. What is the minimum score Virat needs to get in his last match?

87

89

91

93

85. Tenant farmers are not able to receive crop loans from banks because of

Oral nature of prevailing tenancy contracts

Ineligibility of tenants for crop loans

Tenants are unwilling to take bank loans

Moneylenders are offering loans to tenants

86. Which is the second largest source of employment in India after agriculture

Steel,industry

Cement industry

IT industry

Textile sector

87. India's economic growth is largely led by the growth in .

Agricultural sector

Industrial sector

Service sector

Export sector

88. Make in India initiative aims to raise the share of manufacturing output in India's GDP to

18 percent

25 percent

50 percent

35 percent

89. According to Karl Marx, the real producers of production and value in the society are:

Entrepreneurs

Managers

Workers

All of them

90. According to the theory of demographic transition, eventually rate of population growth is likely come down in the course of development as

Death rate exceed the birth rate

Net Birth Rate declines

Birth rate gets frozen

Death Rate accelerates

91. HDI is calculated by considering

Life Expectancy, Education and Per Capita Income

Fertility Rate, Education and Per Capita Income

Life Expectancy, Nutrition and Per Capita Income

Life Expectancy, Education and Gross National Income

92. The demographic dividend in economic development for countries like India is resulting from

Achieving population stabilization

Completing third stage of demographic tranSItIon

A decline of mortality and fertility and subsequent change in the age structure of the population.

Negative population growth

93. The theory of Big Push in development economics was put forwarded by

Walt Whitman Rostow

Robert W. Vishny

Paul Rosenstein-Rodan

Albert O. Hirschman

94. In the Lewis model of development, the transition of surplus labour from the subsistence sector to the modem sector will occur till

Marginal product of capital becomes equal in both the sectors. .

Marginal product of labour becomes equal in both the sectors.

Share of Wages and profit becomes equal in the modem sector

Marginal product of labour in subsistence sector becomes greater than the marginal product of labour in the modem sector

95. The Coal Block allocation under UPA 2 government became controversial for following

Auction system

E-Auction

First-come First-served basis

Lottery system

96. According to Laffer curve if the tax rate is 100% the revenue would be

Infinity

Zero

50%

100%

97. Which of the following policy measures proved critical in adopting HYV technology in India

Encouraging dryland farming

Developing fruits and vegetables

Encouraging agricultural exports

Rural branch expansion by banks

98. A tax is said to be buoyant if tax revenues increase more than proportionately in response to a unit rise in

Tax rate

Tax base

National income

Personal Income

99. Which of the following types of tax that does not distinguish between commodities and serVices

Central Exercise Tax

Sales tax

MODVAT

Goods and Services Tax

100. It is not ideal to tax a service like education because education is an example of

Public Good

Private Good

Merit Good

Luxury Good