1. Consider market for a good in partial equilibrium analysis where supply is perfectly price inelastic and demand is perfectly price elastic. Market price isRs. 60 when no tax is levied. Ad valorem excise duty of 25 %is now levied. New market price,

goesupby 25%

goes up by 20%

remains unchanged

does not exist, as there is no market equilibrium


2. If propensity of people to hold money as currency goes up and all other factors (such as required reserve ratio) remain unchanged, the value of money multiplier will,

become smaller.

become larger.

remain the same.

may move either way.


3. A fair coin is tossed three times in succession. If at least one of the tosses has resulted in Heads, what is the probability that at least one of the tosses resulted in Tails?

4/7

4/8

6/7

6/8


4. Which out of the following is an example of a trade barrier?

Foreign investment

Delay or damage of goods

Tax on imports

None of these··



5. Which among the following currently has the highest production (in metric tonnes) in India?

Milk

Rice

Wheat

Sugar


6. Normally, if the income effect dominates the substitution effect in the labour supply decision, what happens when the wage increases?

It depends on their specific preferences

Workers work more

Workers work less

Workers work the same amount


7. If value added at different stages is sUlnnled-up, the total will:

Exceed the value of the final product

Equal the value of the final product

Misrepresent the value of the final product

Have· no relation with the value of the final product


8. Matrix X of order m x n is of full rank and m n. Let Y XT.X; and Z X.XT. Let denotes rank of any matrix S. Then,

Y and Z are of the same rank

Y and Z are of the same order

Y and Z are inverses of each other

Y and Z arc equal matrices

9. Regardless of her income or prices, Neha always spends 30 percent of her incolne on housing, 25 percent on food, 10 percent on clothing, 20 percent on transportation, and 15 percent on recreation. This behavior is consistent with which of the following?

All goods are perfect substitutes

demand for commodities do not change when price change

has' a Cobb-Douglas utility function

None of the above

10. As foreign exchange activity has grown:

central bank intervention has become more effective.

central bank intervention has become more frequent.

central bank intervention has become less effective.

central bank has stopped to intervene.


11. The share of Indian exports in world trade in 2012-13 was approximately

2%.

3%.

10%.

12. 5%.

12. The poverty ratio estimated by the Planning Commission of India for the year 2011-12 stands in the range of

35

30

25-30%

20

13. Assume there are 75 transactions a year in an economy with a money supply of Rs.300. If the average value of each transaction is Rs.20, then the velocity of money is

0. 5.

1. 0

5. 0

20. 0

14. Subsidized low housing is an example of

a social want.

a merit want.

a collective want.

none of the above.

15. How many distinct subsets can be formed from the set N

6.

64.

18144.

35.

16. Match each of the economists in the first row with theory of development he is associated with from the second row:
Economists:

1 A.O. Hirschman;
2 W. A. Lewis;
3 Rosenstein-Rodan;
4 W.W. Rostow Theories:

a. Big Push; b. Dual Sector; c. Stages of Growth; d. Unbalanced Growth

4-b.








17. In which of the following lllodeis of oligopoly, finns choose prices instead of quantities

Cournot Model

StackelbergModel

Bertrand Model

None of the above


18. An estimator is defined as

Sampling mean of a distribution

A specific observed value

Sample statistic to estimate a population parameter

None of the above


19. The Keynesian approach to macroeconomics assumes that

neither wages nor prices adjust quickly to balance quantities supplied and demanded in markets.

both wages and prices adjust quickly to balance quantities supplied and demanded in markets.

wages, but not prices, adjust quickly to balance quantities supplied and demanded in markets.

prices, but not wages, adjust quickly to balance quantities supplied and demanded in markets.


20. In a society of two persons, person A wants to sell a book for which his reservation price is Rs. 400; person B wants to buy this book for which his reservation price is Rs. 360. Then,

Mr. A will sell the book to Mr. B for Rs. 400.

Mr. A will sell the book to Mr. B for Rs. 360.

Mr. A will sell the book to Mr. B for Rs. 380.

no trade in this book will take place.

21. Imperfect information about the labour market leads to

structural unemployment

cyclical unemployment

frictional unemployment.

disguised unemployment

22. Let e x2 Derivative of with respect to x is equal to:

ex2

2x.ex2

x2.ex2

E2X

23. According to the law of variable proportions, marginal product of the variable input

first increases at a decreasing rate and then increases at an increasing rate.

first increases at an increasing rate and then increases at a decreasing rate.

first decreases at a decreasing rate and then decreases at an increasing rate.

first decreases at a decreasing rate and then decreases at an increasing rate.


24. The quantity theory of money implies that if the money stock were to double, the price level will

fall by one half the original.

rise, but only slightly from the originaL

increase to twice the original.

remain unchanged.


25. Let z X2). Let Ii be first order partial derivative of w.r.t. Xi and Fij be second order partial derivative of w.r.t. Xi and Xj. Suppose f1 12 at some point X2) and further let f11.f22 f122 at b). Consider the statements: The function attains its maximum if f11 0at b). The function attains its minimum if 122 at b).

Only is correct.

Only is correct.

both and are correct.

Neither nor is correct.

26. If the factor supply market is competitive, each firm will face a supply curve for labor that is

horizontal.

downward-sloping.

vertical.

upward-sloping.

27. If a given labour market is characterized by monopsony a company town in which there
is only one employer), how does the level of hiring compare to that in a competitive factor market?

It depends on the price of the output good.

The level of hiring is lower.

The level of hiring is higher.

The level of hiring is equal.


28. Consider an economy of at least 3 individuals with every individual having strictly monoton­ically increasing utility functions. Let state Y be Pareto superior to state X. Then,

Everyone is better off in state Y compared to being in state

There exists a state Z obtained from a re-cistribution of state Y such that everyone is better off in state Z compared to being in state X.

One person is better off in state Y compared to being in state X and everyone else is indifferent between states X and Y.

Everyone is better off in any re-distribution of state Y compared to being in state X.


29. Consider equation a.x3 b.x2 +C.x 0 with real coefficients and with distinct roots alpha, beta and y where alpha is a complex number. Then,

both beta and are real numbers

both beta and are complex numbers

both beta and are imaginary numbers

either beta is a real number or is a real number but not both beta and are real numbers

30. Let X and Y be random variables such that Y 4.X 12. Given that mean of Y is J..Ly 64 and its standard deviation is CTy 52, then,

mewx 16 and CTX 13.

mewx 64 and CTX 52.

mewx 13 and CTX 13.

mewx 13 and CTX 52.


31. An increase in the current account deficit will put pressure on the hOlne currency value: other things being equal. Give suitable answer to fill the blank above.

upward.

downward.

no.

upward or downward, depending on the size of deficit.

32. A major component of the current account is the:
balance of trade.

balance of capital market flows.

balance of money market flows.

unilateral transfers.

33. If the RBI wants to tighten the money supply, it should

buy government bonds in open market

raise the discount rate.

lower the reserve requirements

all of the above

34. If the annual income velocity of money is then the total real money stock in the economy IS:

Three times the real GDP

One third of real GNP

One third of nominal GNP

None of the above

35. High powered money consists of:

Currency with the public reserves with the banking system, and other deposits with the RBI

All liabilities of the banking sector

Currency with the public and other deposits with the RBI

Currency with the public, demand deposits with banks, and other deposits with the RBI

36. Which one of the following rates is NOT an instrument of monetary policy in India?

CRR

SLR

PLR

Repo Rate

37. Which among the following classes of transport currently ranks first in domestic goods trans­port?

Air cargo services

Railways goods transport services

Roadways goods transport services

Waterways goods transport services

38. Increase in net RBI credit to the central government represents:

Budget·deficit

Revenue deficit

Fiscal deficit

Monetized deficit

39. The utilization of disguised unemployment as a source of saving potential in underdeveloped countries has been suggested by:

W W Rostow
Arthur Lewis

Ragnar Nurske

A o Hirschman

40. Which of the following variable will come under Stock variable?

Gross domestic product

Money supply

Exports

Imports

41. Some individuals, when facing a lottery or other situation of uncertainty, prefer not to accept gambles that are better than fair (i.e., have a positive expected return), because of the negative utility they receive from uncertainty. What is the name for this behavior?

Risk loving.

Expected utility theory.

Risk aversion.

Risk neutrality.

42. The price elasticity of defiend faced by a firm in a perfectly competitive market is

less than one

equal to zero.

equal to infinite.

equal to one

43. Given a 3 x 3 matrix A <img src='./qimages/1677-43.jpg'><br><br> its inverse

1. Consider market for a good in partial equilibrium analysis where supply is perfectly price inelastic and demand is perfectly price elastic. Market price isRs. 60 when no tax is levied. Ad valorem excise duty of 25 %is now levied. New market price,
goesupby 25%

goes up by 20%

remains unchanged

does not exist, as there is no market equilibrium


2. If propensity of people to hold money as currency goes up and all other factors (such as required reserve ratio) remain unchanged, the value of money multiplier will,
become smaller.

become larger.

remain the same.

may move either way.


3. A fair coin is tossed three times in succession. If at least one of the tosses has resulted in Heads, what is the probability that at least one of the tosses resulted in Tails?
4/7

4/8

6/7

6/8


4. Which out of the following is an example of a trade barrier?
Foreign i.nvestment

Delay or damage of goods

Tax on imports

None of these··



5. Which among the following currently has the highest production (in metric tonnes) in India?
Milk
Rice


Wheat

Sugar


6. Normally, if the income effect dominates the substitution effect in the labour supply decision, what happens when the wage increases?
It depends on their specific preferences

Workers work more

Workers work less

Workers work the same amount


7. If value added at different stages is sUlnnled-up, the total will:
Exceed the vfl,lue of the final product

Equal the value of the final product

Misrepresent the value of the final product

Have· no relation with the value of the final product


8. Matrix X of order m x n is of full rank and m n. Let Y XT.X; and Z X.XT. Let denotes rank of any matrix S. Then,
Y and Z are of the same rank

Y and Z are of the same order


9. Regardless of her income or prices, Neha always spends 30 percent of her incolne on housing, 25 percent on food, 10 percent on clothing, 20 percent on transportation, and 15 percent on recreation. This behavior is consistent with which of the following?
All goods are perfect substitutes

for commodities do not change when price change

has' a Cobb-Douglas utility function

None of the above



10. As foreign exchange activity has grown:
central bank intervention has become more effective.

central bank intervention has become more frequent.

central bank intervention has become less effective.

central bank has stopped to intervene.


11. The share of Indian exports in world trade in 2012-13 was approximately
2%.

3%.

10%.

12. 5%.


12. The poverty ratio estimated by the Planning Commission of India for the year 2011-12 stands in the range of
35

30

25-30%

20


13. Assume there are 75 transactions a year in an economy with a money supply of Rs.300. If the average value of each transaction is Rs.20, then the velocity of money is
0. 5.

1. 0

5. 0

20. 0



14. Subsidized low housing is an example of
a social want.
a merit want.


a collective want.

none of the above.


15. How many distinct subsets can be formed from the set N
6.

64.

18144.

35.


16. Match each of the economists in the first row with theory of development he is associated with from the second row:
Economists:
1 A.O. Hirschman;
2 W. A. Lewis;
3 Rosenstein-Rodan;
4 W.W. Rostow Theories:

a. Big Push; b. Dual Sector; c. Stages of Growth; d. Unbalanced Growth

4-b.








17. In which of the following lllodeis of oligopoly, finns choose prices instead of quantities
Cournot Model

StackelbergModel

Bertrand Model

None of the above


18. An estimator is defined as
Sampling mean of a distribution

A specific observed value

Sample statistic to estimate a population parameter

None of the above


19. The Keynesian approach to macroeconomics assumes that
neither wages nor prices adjust quickly to balance quantities supplied and demanded in rnarkets.

both wages and prices adjust quickly to balance quantities supplied and demanded in markets.

wages, but not prices, adjust quickly to balance quantities supplied and demanded in markets.

prices, but not wages, adjust quickly to balance quantities supplied and demanded in markets.


20. In a society of two persons, person A wants to sell a book for which his reservation price is Rs. 400; person B wants to buy this book for which his reservation price is Rs. 360. Then,
Mr. A will sell the book to Mr. B for Rs. 400.

Mr. A will sell the book to Mr. B for Rs. 360.

Mr. A will sell the book to Mr. B for Rs. 380.

no trade in this book will take place.


21. Imperfect information about the labour market leads to
structural unemployment

cyclical unemployment

frictional unemployment.

disguised unemployment



22. Let e x2 Derivative of with respect to x is equal to:

ex2

2x.ex2

x2.ex2

E2X

23. According to the law of variable proportions, marginal product of the variable input
first increases at a decreasing rate and then increases at an increasing rate.

first increases at an increasing rate and then increases at a decreasing rate.

first decreases at a decreasing rate and then decreases at an increasing rate.

first decreases at a decreasing rate and then decreases at an increasing rate.


24. The quantity theory of money implies that if the money stock were to double, the price level will
fall by one half the original.

rise, but only slightly from the originaL

increase to twice the original.

remain unchanged.


25. Let z X2). Let Ii be first order partial derivative of w.r.t. Xi and Fij be second order partial derivative of w.r.t. Xi and Xj. Suppose f1 12 at some point X2) and further let f11.f22 f122 at b). Consider the statements: The function attains its maximum if f11 0at b). The function attains its minimum if 122 at b).
Only is correct.

Only is correct.

both and are correct.

Neither nor is correct.

26. If the factor supply market is competitive, each firm will face a supply curve for labor that is

horizontal.

downward-sloping.

vertical.

upward-sloping.

27. If a given labour market is characterized by monopsony a company town in which there
is only one employer), how does the level of hiring compare to that in a competitive factor market?

It depends on the price of the output good.

The level of hiring is lower.

The level of hiring is higher.

The level of hiring is equal.


28. Consider an economy of at least 3 individuals with every individual having strictly monoton­ically increasing utility functions. Let state Y be Pareto superior to state X. Then,

Everyone is better off in state Y compared to being in state

There exists a state Z obtained from a re-cistribution of state Y such that everyone is better off in state Z compared to being in state X.

One person is better off in state Y compared to being in state X and everyone else is indifferent between states X and Y.

Everyone is better off in any re-distribution of state Y compared to being in state X.


29. Consider equation a.x3 b.x2 +C.x 0 with real coefficients and with distinct roots alpha, beta and y where alpha is a complex number. Then,

both beta and are real numbers

both beta and are complex numbers

both beta and are imaginary numbers

either beta is a real number or is a real number but not both beta and are real numbers

30. Let X and Y be random variables such that Y 4.X 12. Given that mean of Y is J..Ly 64 and its standard deviation is CTy 52, then,

mewx 16 and CTX 13.

mewx 64 and CTX 52.

mewx 13 and CTX 13.

mewx 13 and CTX 52.


31. An increase in the current account deficit will put pressure on the hOlne currency value: other things being equal. Give suitable answer to fill the blank above.

upward.

downward.

no.

upward or downward, depending on the size of deficit.

32. A major component of the current account is the:
balance of trade.

balance of capital market flows.

balance of money market flows.

unilateral transfers.

33. If the RBI wants to tighten the money supply, it should

buy government bonds in open market

raise the discount rate.

lower the reserve requirements

all of the above

34. If the annual income velocity of money is then the total real money stock in the economy IS:

Three times the real GDP

One third of real GNP

One third of nominal GNP

None of the above

35. High powered money consists of:

Currency with the public reserves with the banking system, and other deposits with the RBI

All liabilities of the banking sector

Currency with the public and other deposits with the RBI

Currency with the public, demand deposits with banks, and other deposits with the RBI

36. Which one of the following rates is NOT an instrument of monetary policy in India?

CRR

SLR

PLR

Repo Rate

37. Which among the following classes of transport currently ranks first in domestic goods trans­port?

Air cargo services

Railways goods transport services

Roadways goods transport services

Waterways goods transport services

38. Increase in net RBI credit to the central government represents:

Budget·deficit

Revenue deficit

Fiscal deficit

Monetized deficit

39. The utilization of disguised unemployment as a source of saving potential in underdeveloped countries has been suggested by:

W W Rostow
Arthur Lewis

Ragnar Nurske

A o Hirschman

40. Which of the following variable will come under Stock variable?

Gross domestic product

Money supply

Exports

Imports

41. Some individuals, when facing a lottery or other situation of uncertainty, prefer not to accept gambles that are better than fair (i.e., have a positive expected return), because of the negative utility they receive from uncertainty. What is the name for this behavior?

Risk loving.

Expected utility theory.

Risk aversion.

Risk neutrality.

42. The price elasticity of defiend faced by a firm in a perfectly competitive market is

less than one

equal to zero.

equal to infinite.

equal to one

43. Given a 3 x 3 matrix A <img src='./qimages/1677-43.jpg'><br><br> its inverse

<img src='./qimages/1677-43.jpg'><br><br>

does not exist.

can not be determined, since A does not have a unique inverse.

is <img src='./qimages/1677-43.jpg'><br><br>


44. Regression analysis

necessarily implies causation.

always analyses the cause-effect scenario.

irnplie8 correlation effects.

does not necessarily imply causation.


45. The real balance effect suggested to bridge the classical dichotomy, was given by:

Alvin Hansen

A C Pigou

Don Patinkin

Knut Wicksell


46. The most volatile component of GDP over the business cycle is

consumption

net exports

investment

government purchases

47. Assume you have the option to choose between receiving a given amount of money M 5 years
from now or 10 years from now, and the discount rate is positive. Which option has the higher present value?

It depends on the level of the interest rate.

. Receive the money 5 years from now.

Receive the money 10 years from now.

Receiving M always has the same present value, independent of the timing.

48. What is an example of sunk costs for someone opening a law practice?

Rent on office space.

The cost of office supplies.

The cost of a law school education.

Wages for paralegals.


49. The supply-determined nature of output and employment is the most crucial feature of

the Keynesian theory

the classical syatem

monetarism

the rational expectations school


50. In the liquidity trap case where the LM schedule i.s nearly horizon'J.l,

both monetary and fiscal policy are highly effective.

monetary and fiscal policy are ineffective.

monetary policy is ineffective and fiscal policy is effective.

fiscal policy is ineffective and monetary policy is effective.


51. In a perfectly flexible exchange rate regime, an expansionary Indian monetary policy will cause

a rise in the value of rupee relative to foreign currencies.

a fail in the value of rupee relative to foreign currencies.

no change in. the value of rupee relative to foreign currencies.

a Change in the value of rupee relative to foreign currencies but the direction of the change is uncertain.



52. There are two batteries in a UPS connected in series both must be working for the UPS to be able to function. Probability that a battery will fail on a given day is 0.1 and battery failures are independent events. Probability that UPS functions without failure on a given day is:

0. 99

0. 91

0. 88

0. 81


53. In correlation analysis we measure the

Degree of causation between two variables

Predictability of the two variables

Regression between the two variables

Degree of linear association between two variables


54. Which one of the following is an appropriate sampling technique if the study population is heterogeneous?

Stratified Random Sampling

Simple Random Sampling

Cluster Sampling

Convenience Sampling


55. From 1944 to 1971, the exchange rate between any two currencies was typically:

fixed within narrow boundaries.

floating, but subject to central bank intervention.

floating, and not subject to central bank intervention.

nonexist.ent; that is currencies were not exchanged, but gold was used to pay for all foreign transactions.



56. Which of the following are examples of currency controls?

import restrictions.

prohibition of remittance of funds.

ceilings on granting credit to foreign firms.

all of the above.


57. The tariff which maxiInizes a country's welfare is called:

Optimum tariff

Discretionary tariff

Protective tariff

None of the" above is true

58. In India, which of the following revenues are not shared by the Centre with the States?

Income tax

Central Sales tax

Excise duty

Customs duty

59. During second half of 2014 (July-December), inflation showed,

increasing trend

decreasing trend

stable at a low (below 3 yoy) level

stable at a high (above 10 yoy) level

60. Which of the following is the major source of accretion to foreign exchange reserve in India at present?

ADR and GDR

External assistance

Banking capital

Portfolio investment

61. Trickle down theory suggests that

tax benefits to the rich lead to an increase in the income and well-being of all.

an increase in per capita income leads to an increase in the income and the well-being of all.

an increase in exports leads to an increase in the income and the well-being of all.

au increase in government expenditure leads to an increase in the income and the well­being of all.

62: Assume that you purchased a Rs.1,OOO perpetual bond that pays a market interest rate of 7 percent. If you attempted to sell this bond today subsequent to an increased market rate of interest of 8.5 percent, then you

could only sell this bond at a capital loss.

could sell this bond at a capital gain.

would not be able to sell this bond.

could exchange your bond yielding 5 percent for a bond yielding 7.5 percent on an even exchange basis.

63. Which of the following variables shifts the classical aggregate demand curve right?

An increase in government spending

A decrease in taxes

An increase in autonomous investment expenditures

An increase in the money stock

64. Who stated that savings and investment are equal but they are not always in equilibrium?

Alfred Marshall

J M Keynes

D H Robertson

M Friedman

65. Consider system of equations: 3x 3y 2x and x -2y -2. Then,





y=3

Solution does not exist.

66. You are given annual growth rates for 7 consecutive years. To find annual rate of growth, the suitable method involves use of:

geometric mean

arithmetic mean

harmonic mean

none of the above

67. Standard error is defined as

sampling mean distribution

standard deviation of sample

standard deviation of a statistic

type I error

68. An increase in the price of a commodity when demand is inelastic causes the total expenditures of consumers of the commodity to

Increase

Decrease

Remain unchanged

Decrease for small price changes and increase for large price changes

69. What happens to a consumer when the price of a good she consumes increases, or her income decreases?

She is unambiguously better off.

She is better off if a goods price increases, but worse off if her inCOlne decreases.

She is unambiguously worse off.

She may be better off or worse off, depending on her preferences.


70. If the income elasticity of demand is greater than the commodity is

A necessity
A luxury

An inferior good

A nonrelated good

71. Fishers index number is:

The arithmetic mean of Laspeyres and Paasche index numbers
The geometric mean of Laspeyres and Paasche index numbers

The harmonic mean of Laspeyres and Paasche index numbers

The geometric mean Laspeyres and Divisia index numbers

72. Presently, the Indian rupee is

Fully convertible on current account but not on capital account transactions

Fully convertible on capital account but not on current account transactions

Fully convertible on both the accounts

Not convertible on either type of accounts

73. Pilgrims tax is levied by the

the union government

state governments

local bodies

all of them

74. The gross fiscal deficit for India as a percentage of India for the year 2013-14 was in the of

4. 0-5.0 percent

5. 0-5.5 percent

6. 0-6.5 percent

7. 0-8.0 percent


75. Assume a two-country world: Country A and Country B. Which of the following is correct about purchasing power parity as related to these two countries?

If Country inflation rate exceeds Country inflation rate, Country currency will weaken.

If Country interest rate exceed8 Country inflation rate, Country currency will weaken.

If Country interest rate exceeds Country inflation rate, Country currency will strengthen.

If Country inflation rate exceeds Country inflation rate, Country currency will weaken.


76. Stagflation is a period of

High inflation

Low inflation

Low inflation and High unemployment

High inflation and high unemployment


77. Chi-square test is used for

Association between attributes.

Significance of single mean

Slope of regression line

Equality between two means


78. When an import tariff is imposed on a good that is ilnported by a given country, which of the following quantities decreases?

Consumer surplus alone.

Consumer surplus and social welfare.

Producer surplus alone.

Social welfare.

79. Four persons namely, David, Anwar, Nazma and Rita are to be seated in a row such that David and Anwar must sit next to each other and Rita and Nazma must sit next to each other. There are four seats in this row. How many distinct arrangements are possible?

2.

4.

6.

8.


80. A General AgTeement on Tariffs and Trade (GATT) accord in 1993 called for:

increased trade restrictions outside of North America.

lower trade restrictions around the world.

uniform environmental standards around the world.

uniform worker health laws.

81. Under which article of the constitution of India,the finance commission is appointed by the president

281

280

282

275

82. According to the 2001 Census, the number of females per 1000 males is:

939

933

959

927

83. In the Solows model of economic growth, the output per capita is a function of

Labour-capital ratio

Change of capital-output ratio

Technical progress

Capital-output ratio

84. Who is the Chairperson of the newly created NITI Aayog:

Arvind Panagaria

Arvind Subramanian

Bibek Debroy

Narendra Modi


85. The marginal cost of a pure public good is

One

Zero

very high

cannot be determined

86. In a class of 50 students, 33 are Telugu speaking, 15 are Urdu speaking and 9 speak neither Telugu nor Urdu. How many students are both Telugu speaking as well as Urdu speaking?

15

9

6

7

87. When planned saving is greater than planned investment

output should increase

output should decrease

output should not change

any of the above may happen


88. The Engle curve for a Giffen good is

Negatively sloped

Positively sloped

Vertical

Horizontal

89. The Consumption basket of a consumer has two goods, X and Y. If he spends the entire income on these two goods, he can buy 4. units of X and 6 units of or he can buy 12 units ofXand 2units of Y. If he spends his entire income on X alone, what is the number of units
of X that he can buy?

7

8

16


15

90. Given that the excise duty on a product is fully borne by the buyers, then the magnitude of the price elasticity of demand of that product is

infinity

zero

ONE

very high

91. The most commonly used measure of changes in the cost of living for households is

the real GDP

the CPI

te nominal GDP

the GDP deflator


92. Name the state which has not yet implemented the FRBM Act

Uttara Pradesh

Madhya Pradesh

Andhra Pradesh

Sikkim


93. Krugman's theory of international trade is based on

Comparative advantage

Specific factors

Monopolistic competition and economies of scale

Inter industry trade


94. Which of the following names is associated with theory of entrepreneurship?

Alfred Chandler

Frank Knight

Joseph Schumpeter

Graham Pyatt


95. Ali likes classical music but is irritated by western music Which of the following utility functions would best represent Ali's utility from classical and western type of music?

u W O.5.C o.5





U=C.W

96. Fill in the blanks in the following sentence: According to the National Food Security Act, the .population coverage under this Act is to be percent of rural households and percent of the urban
households respectively.

50,75

50,50

75,50

75,75

97. To study the performance of various states across India, the data on state domestic product
is collected for all states for the period 1990 to 2010. Such a data set represents


Cross-sectional data

Pooled data

Panel data

Time series data

98. When price deflation takes place (i.e. price level falls), then,

both the borrowers and the lenders gain.
the borrowers loose and the lenders gain.

the borrowers gain and the lenders loose.

both the borrowers and the lenders loose.

99. The difference between M3 and M1 is

time deposits

saving deposits

demand deposits

post office saving deposits


100. Under perfect competition, the shut-down condition holds, when,

price is below average total cost, but greater than average variable cost.

price is greater than average variable cost.

price is greater than average total cost.

price is below average variable cost.