1. Which is called Gossen's second law

(A)Law of Equi-marginal Utility

(B)Law of Diminishing Marginal Utility

(C)Revealed Preference Theory

(D)Indifference Curve Approach

2. When a consumer is in equilibrium, MRSXY is 2.5. If the price of commodity Y is 16, then what will be the price of commodity X



6.4

(C)23.2

24

3. Which of the conditions support long run equilibrium in monopolistic competition

MC, AR AC

MC, AR AC

MC AR AC

MC AC

4. Who explained importance of time element in price determination, for the first time

(A)Chamberlin

Stigler

(C)Mrs. Joan Robinson

Marshall

5. Law of diminishing returns begins to operate when

(A)Total product begins to rise.

(B)Total product begins to fall.

(C)Marginal product begins to rise.

(D)Marginal product begins to fall.


6. Consider the following statements regarding Edgeworth Duopoly model

I. It takes as given output decision of rival.
II. It takes as given price decision of rival.
III. It is an explanation of price rigidity.Of these, the correct answer is

(A)Only Statement I is true.

Both I II are true.

(C)Both II III are true.

Only III is true.


7. Public goods are characterised by

1. Collective consumption
2. Divisibility
3. Non-exclusion
4. Rival consumption

Select the correct answer from the code given below

Codes
2 are correct.

1 3 are correct.

4 are correct.

2 4 are correct.


8. Among the following what causes market failure

1.Externality

2.Asymmetry of information

3.Perfect competition

Choose the correct answer from the code given below

Codes

2 3 are correct.

Only 1 is correct.

2 are correct.

2 3 are correct.


9. Assuming wage-price flexibility, the classical economists asserted that a decline in money wages and price would lead to

(A)Unemployment

(B)Deflation

(C)High level of employment and output

(D)Unemployment and decline in output

10. The classical theory of interest postulates that both savings and investments are a function of

(A)the level of National income

(B)the level of employment and output

(C)monetary and fiscal policy

(D)rate of interest


11. The relative income hypothesis of Duesenberry suggests that as income increases, consumption function curve shifts above and therefore,
(A)Average propensity to consume rises.

(B)Average propensity to consume falls.

(C)Average propensity to consume remains constant.

(D)Average propensity to consume is equal to 1.


12. Who among the following said, "Inflation is everywhere and always a monetary phenomenon"

(A)James Tobin

John M. Keynes

(C)Milton Friedman

Anna J. Schwartz


13. Accelerator is most closely related to

(A)interest rate

inventories

(C)idle capacity

induced investment


14. Match List I and List II and select the correct answer from the codes given below

List I List II Concept Economist

a.Liquidity trap 1. Milton Friedman

b.Demonstration Effect 2. A.C. Pigou

c.Permanent Income Hypothesis 3. J. Duesenberry

d.Wealth Effect4. J.M. Keynes


Codes

a b c d

3 1 2

2 4 3

2 1 3

3 4 2



15. Which one of the following would be inconsistent with the Keynesian view about the effectiveness of monetary policy

(A)Velocity of money is relatively stable.

(B)The demand for money is unstable.

(C)The demand for money is interest sensitive.

(D)Investment demand is unstable.


16. Which of the following statement is true

(A)Sporadic dumping is selling of goods at a low price in the foreign market to get rid of the inventory stocks.

(B)Predatory dumping is destroying of competitors even at a loss initially and then, after eliminating of competitors, selling product at a high price.

(C)Persistent dumping is selling a product at a lower price in foreign markets due to differences in elasticity of demand at home and in the foreign market.

(D)All the above.


17. According to Comparative Advantage Theory, International Trade will not take place if

(A)one country is efficient in the production of both the products.

(B)one country is inefficient in the production of both the products.

(C)opportunity costs of the two products are same in both the countries.

(D)None of the above.


18. Imposition of tariff will lead to

(A)Deterioration in terms of trade

Improvement in terms of trade

effect on terms of trade

None of the above


19. Under a freely exchange rate system, a deficit in a Nation's Balance of Payments Account is automatically corrected by

depreciation of its currency

appreciation of its currency

(C)domestic inflation

(D)deflation and rise in National income

20. Maastricht Treaty led to the creation of which one of the following


(A)European Parliament

Euro

(C)European Court of Justice

European Union


21. Assertion According to Mundell, "Imbalances in the balance of payments is caused by initial differences in unit factor costs."

Reason Free movement of goods will correct the imbalance in the balance of payments of two countries.

In the context of the two statements, which one of the following is correct

Codes
(A)Both and are true and is the correct explanation of

(B)Both and are true and is not the correct explanation of

is true, but is false.

is false, but is true.


22. The Stolper-Samuelson theorem postulates that the imposition of a tariff by a nation causes the real income of the nation's

(A)abundant factor to rise

scarce factor to rise

(C)scarce factor to fall

both are possible


23. What is perspective planning

(A)Overall appraisal of planning.

(B)Review of planning in different fields.

(C)Taking up past experience and reviewing the future in that light.

(D)Planning for future so as to meet the long term requirement of development in the country.


24. Who formulated the 'People's Plan' for India in 1944

(A)J.L. Nehru

M.N. Roy

(C)Subhas Chandra Bose

Mahatma Gandhi


25. "Trickle down" strategy implies

(A)growing GNP taking care of poverty.

(B)reduction in the income of the upper class by deliberate redistribution.

(C)direct achievement of better nourishment, health, education, etc. instead of growth of GNP first.

target a particular sector of economy for betterment.


26. What is the correct sequence of the following approaches to development in terms of their chronological emergency

1.Basic needs approach

2.Per capita income approach

3.Human Development Index approach

Choose the correct answer from the codes given below

Codes

3

3

1

2


27. Choose the correct statements for economic development and answer from the code below Statements:

I. Continuous process
II. Short-term process
III. Long-term process

Codes

only

I and III

(C)III only

I and II


28. Which of the following economists are proponents of dependency theory of development Choose from the code below

I. Ragnar Nurkse
II. Andre Gunther Frank
III. Raul Prebisch
IV. John Kenneth Galbraith

Codes

II and III are correct.

II and III are correct.

III and IV are correct.

III and IV are correct.


29. What is true for neo-classical growth models

I. Rate of interest and profit are flexible.
II. Capital is heterogeneous.
III. Perfect competition prevails.
IV. Capital and labour are substitutable.

Choose the correct answer from the codes given below

Codes
(A)Only II and III are true.

(B)Only II and III are true.

(C)Only III and IV are true.

(D)All the above are true.


30. Choose the top three trading partners of India in 2013-14

I. UAE
II. Korea
III. China
IV. USA

Choose the correct answer from codes given below


Codes

II, III

II, III, IV

III, IV

II, IV


31. Of the following, which combination of two deficits is most significant for the Indian economy

(A)Fiscal deficit and Revenue deficit

(B)Revenue deficit and Primary deficit

(C)Budget deficit and Fiscal deficit

(D)Current Account deficit and Fiscal deficit


32. Of the following, which sector witnessed the highest growth rate in year 2013-14

(A)Agriculture, forestry and fishery

(B)Mining and quarrying

(C)Manufacturing

(D)Construction


33. Who has advocated the concept of PURA (Providing Urban Amenities in Rural Areas) for our country

(A)A.P.J. Abdul Kalam

Manmohan Singh

(C)Charan Singh

None of the above


34. ECOMARC is a symbol related to

(A)Export Goods

Import Goods

(C)Goods Safe for Environment

Best Quality Goods


35. Arrange following countries as per their HDI rank in the descending order (on the basis of 2013, UNDP Report on Human Development)

1. Vietnam
2. China
3. India
4. Sri Lanka

Choose the correct answer from the codes given below

Codes

3

3

1

4


36. Consider the following export groups from India for the year 2013-14

1.Agri. and allied products

2.Engineering goods

3.Gems and Jewellery

4.Textile and Readymade Garments

Arrange them in descending order of magnitude as a percent to total exports.

3

4

3

1


37. Techniques used to encourage the production and consumption of goods that generate positive externalities are referred to as

(A)Tax incentives and vouchers

Fees and fines

(C)Taxes and charges

Special assessment


38. Which of the canons of taxations have been propounded by Adam Smith

(A)Economy, Elasticity, Simplicity and Sufficiency

(B)Equity, Certainty, Convenience and Economy

(C)Certainty, Convenience, Economy and Elasticity

(D)Economy, Coordination, Convenience and Expediency


39. Displacement effect explained in Peacock-Wiseman hypothesis implies

upward displacement of public expenditure according to higher economic growth

(B)The movement from older level of public expenditure and taxation to a newer and higher level

(C)Public expenditure increases at steady rate and reaches higher level

(D)Government undertakes more and more newer activities and hence public expenditure rises steeply upwards


40. The most important characteristic of a federation is

Perfect match between the functions and resources of the Central and State Governments

Non-correspondence between the functions and resources of the Central and State Governments

Centre's supremacy over the States

None of the above


41. Fiscal consolidation at the Centre can be achieved by

(A)Rationalization of major subsidies alone

(B)Reducing the defence expenditure only

(C)Raising the tax-GDP ratio and rationalisation of subsidies

(D)Minimising the Central assistance to the States


42. Arrange the following Reports in chronological order

I. Direct Taxes Enquiry Committee, Final Report
II. Final Report on Rationalising and Simplifications of the Tax Structure
III. Indian Tax Reforms Report of a Survey
IV. Taxation Enquiry Commission
Choose the correct answer from the codes given below

Codes

III, II, I

II, III, IV

IV, II

II, III, IV


43. Identify correctly the taxes in State List (List II) of the Constitution of India

I. Taxes on mineral rights
II. Taxes on luxuries
III. Rates of stamp duty in respect of bills of exchange, cheques and promissory notes
IV. Excise duties on tobacco
Choose the right answer from the codes given below


Codes
and III are correct.

I and II are correct.

III and IV are correct.

II, III and IV are correct.


44. Lump sum grant means
grant whose amount is sufficient to meet the expenditure.

matching and conditional grant.

(C)Grant given for a special purpose and it can be utilised only for that purpose.

grant whose amount is not dependent on any matching effort of the recipient.


45. Geometric mean of Laspeyre's and Paasche's indices provides

(A)Marshall-Edgeworth Index

Bowley's Index

(C)Fisher's Index

Kelley's Index


46. Assertion Moving averages method can be used to estimate trend in time series.

Reasoning Moving averages is a device to smoothen the fluctuations in time series.

Choose the correct answer from the codes given below

Codes
(A)Both and are correct and is a correct explanation of

(B)Both and are correct, but is not a correct explanation of

is correct, but is incorrect.

is correct, but is incorrect.


47. Which one of the following denotes the power of the Test is probability of Type I error and ß is probability of Type II error]



ß

a

1 ß


48. In a frequency distribution the standard deviation of which is 15.8, the value of median is more than mean by what will be its coefficient of skewness

0.76

0.76

0.86

0.86


49. Three coins are tossed simultaneously. What is the probability that they will fall 2 heads and 1 tail
11

24
33

50. In a frequency distribution if each item is multiplied by the coefficient of variation will remain

(A)unchanged

will be multiplied by 5

(C)will be multiplied by 25

will be multiplied by 1/5