1. Which among the following statements are true for the Revealed Preference Theory Choose the correct answer from the code given below

Statement

I. Income elasticity of demand should be positive.
II. Consumers Preferences satisfy strong ordering.

Codes

Both are true.

None are true.

Only I is true.

Only II is true.


2. Demand for foodstuff is income inelastic. This is explained by

Giffen's Paradox

Engel's Law

Gossen's Law

Ricardo's Law

3. Consider the following factors

I. Free entry
II. Advertising
III. Goal of satisfactory profits

Which of these are part of Chamberlin's Monopolistic Competition

Codes

All the three

Only I and II

Only II and III

Only III


4. Non-symmetric risk means

A risk that can be eliminated by diversifying.

A risk that cannot be eliminated by diversifying.

A risk that can be eliminated without diversifying

A risk that cannot be eliminated.


5. Who among the following economists developed the concept of 'Barriers to Entry' of firms

J.S. Bain

W.J. Baumol

Alfred Marshall

W.S. Jevons

6. Even as fixed average cost continues to fall, the average variable cost begins to rise because

returns to factors start diminishing

returns to factors start rising

input prices start rising

producers budget starts shrinking


7. Consider the following statements

I. The lowest point on the long run average cost curve is known as minimum efficient scale.
II. It is the output at which long run average cost curve stops falling.

Choose the correct option from the code given below

Codes

Both I and II are correct.

Both are wrong.

Only I is correct.

Only II is correct.


8. Which among the following is not a characteristic of Imperfect Competition

Perfect knowledge

Free transport

Free Entry of firms

Homogeneous product


9. Which among the following conditions are true for Golden Rule of Accumulation of Edmund Phelps for optimum capital accumulation Choose from the code below

I. Savings rate is unique.
II. Marginal productivity of capital be equal to capital depreciation.

Codes

Both are true.

None of these are true.

Only I is true.

Only II is true.


10. Which among the following were neglected by Keynes in his theory of employment

Role of expectations

Role of capital stock

Role of consumption

Role of government


11. Which of the propositions of the past income hypothesis of Duesenberry are correct

Choose from the code below

Statements

I. The current consumption is a function of not only current income, but also the past income.
II. There is asymmetrical relationship between income and consumption during contraction and expansion.
III. Consumption income relationship is irreversible.
IV. Consumption falls less than income during depression, but the rise in consumption is much more during expansion.

Codes

I and III

II and III

II and IV

All the above statements are true.


12. An increase in the quantity of money in the classical macro system will result in

I. Increase in price level
II. No change in price level
III. Level of output and employment do not change
IV. An increase in employment and output

Select the answer from the codes given below

Codes

IIand IV

Iand II

Iand IV

I&IIIonly


13. Given below is the well-known LM Curve and its range is marked in three parts. In which of the marked range Keynes effect does not operate

In the range AB

In the range BC

In the range CD

In the range AB and BC


14. The theoretical proposition of stable velocity of money is being weakened by the recent researchers. This has the effect of weakening the position of

Keynesians

Monetarists

New Classicals

Utopians

15. Which of the following is the correct assumption for the Lewis two sector model

High unemployment in urban sector

Rising real wages

High marginal productivity in the rural sector

Surplus labour in the rural sector


16. Which of the following is a major indivisibility of Rosenstein-Rodan Model of development

Services

Agriculture

Infrastructure

Supply


17. Which among the following statement is true for Marxian model of development

Change in Mode of production and Relations in production happen simultaneously.

Change in Mode of production follows change in Relations in production.

Change in Mode of production precedes the change in Relations in production.

Relations in production are not important.


18. Consider the following statements about the Kaldor's model of economic growth

I. Investment is a function of profit rate.
II. Capital is homogeneous.
III. Marginal propensity to save is same for wage earners and profit earners.

Of the above statements which are true Answer from the code below

Codes

(A)All the three statements above are correct.


and III are correct.


(C)Only I is correct.


and III are correct.


19. Which one of the following is true for disguised unemployment

has savings potential.


has investment potential.


is a source of expanding production.


is a source of social unrest.


20. In the steady state growth situation in the Solow's model of growth, the upper limit to growth would be determined by the growth rate of

(A)Population (Labour supply)

Capital


(C)Output

Capital and output


21. Which one of the following pairs is not well matched Concept Economist

a. Learning by Doing I. B.S. Minhas


b. Disembodied Technical Progress II. Joan Robinson

c. Golden Age III. Kenneth Arrow

d. CES Production Function IV. R.M. Solow


Codes

a b c d


II III IV


I II III


III I II


(D)III IV II I


22. A tax is said to be progressive, when the marginal rate of tax is

(A)greater than the average rate

less than the average rate

(C)equal to the average rate

equal to the marginal sacrifice


23. Assertion Relatively few private goods are totally rival and excludable. Reason Most consumption (and production) has at least some shared aspects. Codes

(A)Both and are correct.


(B)Both and are not correct.

is correct, but is not the correct reason of


is correct and is the correct reason for


24. Methods of debt-redemption include

(A)Capital levy

Sinking fund


(C)Debt repudiation

All the above


25. Assertion For fiscal discipline, expenditure cap is quite desirable.

Reason A widening fiscal deficit adversely impacts finances of the Central Government.

Codes

(A)Both and are correct, but is not the correct explanation of


(B)Both and are correct and is the correct explanation of


is true, but is false.


is true, but is false.


26. Assertion The debt-GDP ratio of the State Governments witnessed a decline after
reaching the peak level in 2004.

Reason 'Debt swap' scheme was introduced and interest rates were reduced. Codes

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


is true, but is not the correct explanation of


is false, but is true.


is true, but is false.


27. Taxes in List I of the Union Government as per the Constitution of India include

I. Taxes on consumption and sale of electricity
II. Taxes on sale or purchase of newspapers and on advertisements published therein
III. Taxes on capital value of assets
IV. Duties in respect of succession to property

Codes

II and IV are correct.


II and III are correct.


III and IV are correct.


and III are correct.


28. Assertion There is automatic change in net tax revenue when level of output changes.

Reason Automatic stabilizers moderate aggregate spending in times of boom and slow down.

Codes

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


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


is true, but is false.


is false, but is true.


29. Match the following

List I List II

a. Sum of price elasticity of demand for exports 1. J-curve effect and imports greater than unity.


b. Balance of Payments is the difference between 2. Import quota systems National Income and expenditure

c. Empirical evidence showing lower short run 3. Marshall-Lerner condition price elasticities of exports and imports.

d. Method to cut down imports 4. Absorption approach Select correct code

Codes

a b c d

3 1 2


1 3 2


1 4 2


4 1 2


30. Which of the following is related with optimum currency area

(A)Optimal geographical area for a single currency.


(B)Optimal geographical area for several currencies whose exchange rates are relatively pegged.


(C)Single currency or the pegged currencies fluctuate jointly vis-à-vis other currencies.


(D)All the above.


31. Which one of the following is not included under WTO regulations

(A)Removal of industrial licenses.


(B)Removal of import tariffs.


(C)Removal of foreign portfolio investments.


(D)Removal of price controls.


32. Which of the following statements is true

(A)Asian financial crisis is generally considered to have started on July 1997 with the devaluation of the Thai Baht.


(B)Asian financial crisis is generally considered to have started on 2nd August, 1998 with the Russian's crisis.


(C)Brazil's 1999 crisis is generally considered to be the main cause of Asian financial crisis.


(D)All the above are true.




33. Match the following

List I List II

a. Banks that conduct trading in market for Euro 1. Euro currencies currencies

b. Deposits denominated and payable in dollars 2. SDRs and other foreign currencies in banks outside USA

c. Dollar deposits located in banks outside US 3. Euro banks

d. Currency baskets composed of five currencies 4. Euro dollars of IMF members

Codes
a b c d

4 1 2


1 4 2


4 2 1


3 4 2


34. Which of the following is true for European Union

(A)All member countries have the Euro currency.


(B)All member countries have the same defence policy.


(C)There are no tariffs between member countries.


(D)All member countries have the same taxation policy.


35. When a nation imposes an import tariffs, the nation's offer curve will

(A)shift away from the axis measuring exports


(B)move closer to the axis measuring exports


shift will take place


(D)None of the above


36. Market at which transaction will be consummated at some specified time in future is called

(A)Spot market

Current market

(C)Capital market

Forward market


37. Capital adequacy ratio of all commercial banks in India is

(A)below the required rate of 9


(B)equal to the required rate of 9


(C)well above the required rate of 9


(D)far below the required rate of 9

38. Which of the following are liabilities of commercial banks

I. Capital and reserves
II. Cash and balances with RBI
III. Investments
IV. Borrowings
Codes

(A)Iand III

Iand IV

II and III

II, III and IV


39. Assertion There was remarkable acceleration in deposit mobilisation of commercial banks after the nationalisation of 14 commercial banks in 1969.

Reason There was tremendous branch expansion, rise in interest rates and introduction of myriad innovative deposit scheme.

Choose the correct answer from the codes given below

Codes

is correct, but is not correct.


(B)Both and are not correct.


(C)Both and are correct, but is not the correct explanation.


(D)Both and are correct and is the correct explanation of


40. Arrange in chronological order, the establishment of the following in India

I. Industrial Investment Bank of India
II. R.B.I. working group on Development Financial Institutions
III. Small Industrial Development Bank of India
IV. Insurance Regulatory and Development Authority (IRDA)

IV, III, II

III, IV, II

IV, II

IV, III, II


41. Which of the following are term lending institutions in India

I. Industrial Development Bank of India
II. EXIM Bank
III. Small Industrial Development Bank of India
IV. NABARD

Codes

(A)I&III

IIIand IV

and II

II and III



42. Which of the following are included in broad money in India

1. Currency with the public
2. Demand deposits with Bank
3. Time deposits with Banks
4. 'Other deposits' with RBI

Codes

2 3

1 2

4

3 4


43. Assertion The minimum rate at which the Central Bank is ready to lend is bank rate.

Reason The bank rate is determined by demand and supply of money. Codes

(A)Both and are individually true and is correct explanation of


(B)Both are individually true, but is not the correct explanation of


is true, but is false.


is false, but is true.


44. Assertion Delhi has very high density of population.

Reason People from rural areas are migrating to Delhi. Choose the correct answer from the code given below

Codes

(A)Both and are false.


(B)Both and are correct and is correct reason for


is true, but is false.


(D)Both and are true, but is not an adequate reason for


45. An stable population is characterised by

(A)Constant birth rate

Unchanging age structure

(C)None of the above are true

Both the above are true


46. Which of the following is true for Net Reproduction Rate

relates to average number of daughters born to a female.


relates to the life span of a female.


(C)Both and are true.


(D)None of or are true.


47. Which option is true for population dividend to manifest

(A)Population in the age group between 0-7 years is likely to increase.


(B)Population in the age group between 8-15 years is likely to increase.


(C)Population in the age group between 15-64 years is likely to increase.


(D)Population in the age group above 65 years is likely to increase.



48. Which one of the following is the correct sequence of development of sectors in India post-independence

(A)Agriculture, Industry, Service


(B)Service, Agriculture, Industry


(C)Industry, Agriculture, Service


(D)Agriculture, Service, Industry


49. The term HYVP in new agriculture strategy stands for

(A)High Yielding Variety Pesticides


(B)High Yielding Volume Production


(C)High Yielding Varieties Programme


(D)High Yielding Volume Programme


50. If more more capital and labour are applied to a fixed piece of land, the system of cultivation of farming is known as

(A)Intensive cultivation

Extensive cultivation


(C)Cooperative farming

Double cropping


51. Mention the crop where Green Revolution is the most successful one

(A)Tea Coffee

Wheat Rice

(C)Wheat Pulses

Jowar Oilseeds


52. Which of the following is not an item of social security of labour

(A)Wage

Maternity benefits

(C)Pensions

Industrial Injury Compensation


53. Which of the following is correct about the Contingent Valuation Method used in Environmental Economics

is used only for pollutants.


is used only for items with positive utilities.


is used for items under market failures.


is used only for natural resources.


54. Which among the following is not a cause of sickness of industrial units in India

(A)Obsolescent technology


(B)Lack of capital account convertibility


(C)Labour problems


(D)Faulty location


55. Assertion In India, the traditional small scale industries have greater employment potential than the modern small scale industries.

Reason The value of capital per worker in traditional small scale industries is small than the value of capital per worker in modern small scale industries.

Codes

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


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


is true, but is false.


is false, but is true.


56. For the year 2012-13 procurement of wheat has been largest in which of the following States

(A)Punjab and U.P.


(B)U.P. and M.P.


(C)U.P. and Haryana


(D)Punjab and Haryana


57. For the year 2013-14 arrange in descending order, the contribution of following taxes as percentage of G.D.P.

1. Income Tax
2. Service Tax
3. Corporation Tax
4. Excise Duty

Codes

1

2

4

4


58. Which of the following facts are correct about the Competition Commission of India

I. It was established in 2003.
II. It was established on the recommendations of Raghavan Committee.

Codes

(A)Both I and II are true.

Both I and II are not true.

(C)Only I is true.

Only II is true.


59. The base year for newly developed All India Consumer Price Index Number Rural C.P.I and Urban C.P.I. is

(A)2004 05

2006 07

(C)2009 10

2010


60. On the basis of 10 parameters for the 'ease of doing business', World Bank's latest report, during the period July 2013 to May 2014, India has come to which of the following position

(A)138

142

(C)144

146


61. Which is false in following

(A)The duration of Tenth Five Year Plan was 2002-2007.


(B)Ryotwari tenure has been the intermediary in Indian land system.


(C)Zamindari system was introduced by Lord Dalhousie.


(D)Mahalwari land tenure system was introduced in Agra and Oudh.


62. The Financial Sector Legislative Reforms Commission 2013 submitted its recommendations on the following aspects

I. Legislative
II. Non-legislative
III. Marketing
IV. Advertising

Codes

II, IV

II, III

III, IV

II


63. Which of the following States had the lowest women employment percentage under MNREGA programme during 2013-14

(A)U.P. and Rajasthan

Odisha and M.P.

(C)U.P. and Odisha

Rajasthan and West Bengal


64. In a growth model given below

St alfa Yt 0 alfa 1

It beta[Yt beta 0

St It

Growth requires the condition


b
b a
0
b
b a
0

a
b a
0
a
b a
0


aß a
65. Given total cost function C 5Q2 20Q at price 5 marginal cost is

(A)100 200


70


66. For testing the significance of overall regression the test to be used is

Test F Test
.2



Test d Test


67. Including relevant lagged values of the dependent variable on the right hand side of a regression equation could lead to which one of the following

(A)Biased but consistent coefficients' estimates


(B)Biased and inconsistent coefficients' estimates


(C)Unbiased and inconsistent coefficients' estimates


(D)Unbiased and consistent coefficients' estimates


68. In the production function Q ALaKb match the following List I List II
a.
a b 1 i. a

b.
Elasticity of substitution ii. b

c.
Labour elasticity of output iii. Constant Returns to Scale

d.
Capital elasticity of output iv. One


Codes
ab cd

ii iii iv


iii ii iv


(C)iii iv i ii


iii iv i


69. Match the following List I List II
a.
Box-Jenkins i. Causality Method

b.
Unit-root test ii. Forecasting

c.
Durbin-Watson statistics iii. Stationarity

d.
Granger Test iv. Auto-correlation


Codes
ab cd

(A)iii i ii iv


iii iv i


ii iii iv


i ii iii


70. If OLS is used in the presence of auto-correlation, which of the following will be likely consequences
i. Coefficients estimates may be misleading.
ii. Hypothesis tests could reach the wrong conclusions.
iii. Forecasts made from the model could be biased.
iv. Standard errors may be inappropriate.

and iv only i and iii only


ii and iii only ii, iii and iv


71. In the context of simultaneous equations econometric models, consider the following statements
i. Identification is a problem to be dealt with before estimation.
ii. Order condition is necessary but not a sufficient condition of identification.
iii. Two-stage least squares method of estimation gives consistent estimators if the equation is under-identified.
iv. Under indirect least squares method, least squares method is applied to reduced form
equations.
Which of the following is correct


and ii

ii, iii and iv


ii and iii

ii and iv


72. Simplex method is used for solving the problems of

(A)Linear Programming

Input Output Analysis


(C)Regression

Correlation


73. Which statement is false in following

(A)t-distribution was given by W. Gosset.


(B)Tippet's Tables are used for random sampling.


(C)Binomial distribution is symmetrical if p q.


s
x


y
74. Given that LM function is Y 100 10i and the IS function is Y 160 20i, find the correct value of equilibrium level of income and rate of interest from the given options.

(A)120 and 2

90 and 3


(C)150 and 2

120 and 3


75. In a two industry case, for the Simon Hawkins viability condition which statement is correct i 2 and