1. Who distinguished between value in use and value in exchange and gave the famous example of diamonds and water

Adam Smith

David Ricardo

Alfred Marshall

Karl Marx
2. In an economy of two individuals A and B and two commodities X and general equilibrium of production and exchange occurs when

<img src='./qimages/2110-2.jpg'><br><br>

3. When income effect becomes stronger than substitution effect, the labour supply curve will

Slope positively

Negatively sloped

Bend backward

Slope upwards
4. Assertion The concept of supply curve is meaningless for the monopolist.

Reason Monopolists are price setters; it does not make reuse to ask what output they will produce at various prices.
Codes
Both and are correct and is the correct explanation of

is correct, but is not correct.

Both and are correct, but is not the correct explanation of

is correct, but is incorrect.
5. Predatory pricing policy is designed to

drive competitors out of business

maximise profits

encourage entrants into the market

attain least cost output
6. Match items in List I with items in List II and select the correct answer from the

code given below
List I List II
a. The Screening Hypothesis 1. George A. Akerlof
b. Job Market Signalling 2. K.J. Arrow
c. The problem of moral hazard in the case of medical insurance 3. M. Spencer
d. The market for lemons 4. Paul W. Miller and Paul A. Volcker
Codes

a b c d
3 2 4 1

2 3 4 1

4 3 2 1

2 4 3 1
7. An industry whose long run supply curve is horizontal is called

Constant cost industry

Increasing Cost Industry

Decreasing Cost Industry

Efficient Industry

8. The practice of charging each consumer the reservation price is called

Peak load pricing

Inter-temporal priced is crimination

First degree price discrimination

Third degree price discrimination

9. Frictional unemployment is also known as

Disguised unemployment

Turnover unemployment

Cyclical unemployment

Structural unemployment

10. Arrange in ascending chronological order the following consumption hypotheses in which they appeared in the economics literature

Absolute increase hypothesis

Permanent increase hypothesis

Life cycle hypothesis

Relative increase hypothesis
Codes
2
3
2
4
11. Assume a model of income determination of the following type
C a b · Yd
Yd Y T
T T0 t1 · Y
I
G
Y C I G
Where C Consumption expenditure; Y income; Yd disposable income; T taxes; T0 Tan, when Y t1 marginal tax rate; I investment expenditure; G Government expenditure; and bar as the variable indicates that these autonomous variables. Then the tax multiples with respect to T0 is

11 b bt1

b1 b bt1

1 b1 b bt1

11 b bt1
12. Which of the following components of aggregate demand is self terminating and self-financing

Investment expenditure

Durable consumption expenditure

Non-durable consumption expenditure

Government expenditure

13. Arrange all the four concepts of money supply M1, M2, M3 and M4 in the ascending order in terms of their liquidity

M3, M2, M1 and M4

M1, M2, M3 and M4

M4, M2, M3 and M1

M4, M3, M2 and M1

14. Who amongst the following economists imparted money demand of a portfolio theory approach
J.M. Keynes
Baumol
James Tobin
Milton Friedman
Codes
2

4

3

4
15. Which of the following is not a characteristic feature of the Phillips curve

adaptive

money wage stabilises, is 5½ percent

The price expectations are static

there is a loop around Phillips curve
16. The crowding out effect is zero when

investment is perfectly interest inelastic

interest inelastic, or investment is perfectly interest elastic

curve is rising

None of the above

17. Meeting the needs of present generation without compromising the needs of future generation is

Economic Development

Social Development

Economic Growth

Economic Growth

18. The full capacity growth rate in Harrod-Domar Model is also known as
Actual growth rate

Warranted growth rate

Natural growth rate

Expected growth rate

19. Inventors of HDI are
I. Harris-Todaro
II. Megnad Desai
III. Robert Solow
IV. Amartya Sen
Codes

I and II are correct.

I and III are correct.

III and IV are correct.

II and IV are correct.
20. Components of PQLI
I. Morbidity
II. Infant mortality
III. Life expectancy at age one
IV. Basic literacy at age 15
Codes

III and IV are correct.

III, II and IV are correct.

II and III are correct.

IV, I and II are correct.

21. Assertion All historical events are the results of continuous economic struggle between different classes and groups in society.

Reason The main cause of this struggle is the conflict between the mode of production and the relations of production.
Codes

is correct, but is wrong.

is wrong, but is correct.

Both and are wrong.

Both and are correct.

22. Match the items given in List I with those in List II
List I List II
a. Swarm-likeclusters 1. Brundtland Report
b. Organic composition of capital 2. Ragner Nurkse
c. Sustainable Development 3. Schumpeter
d. Vicious circle of poverty 4. Karl Marx

Codes
a b c d
4 2 3 1

3 4 1 2

1 3 2 4

2 1 4 3
23. Match the items given in List I with those in List II
List I List II
a. Low level equilibrium trap 1. Simon Kuznets
b. Inverted shaped income distribution hypothesis 2. Nelson
c. Endogenous growth theory 3. Arthur Lewis
d. Unlimited supplies of labour 4. Robert Solow
Codes
a b c d

2 1 4 3

3 2 1 4

4 3 2 1

1 4 3 2
24. Which of the following is correct about the 'Hindu Growth Rate

of the Hindu population.

among different social groups in India.

performance of the Indian economy during 1950-80.

India since 1980
25. Find out the incorrect statement about the success of economic reforms in India.

dividends

corporate sector in Gross Domestic Savings

account deficit

growth rate

26. Single out the activity that is not included in the Industrial Production Index of India
Manufacturing

Construction

Mining

Electricity
27. High growth of which industry provides a positive signal for industrial growth in future

Capital goods industries

Basic goods industries

Durable consumer goods industries

Intermediate goods industries
28. Identify the method not being used for unemployment estimation by the NSSO in India.

Current monthly status

Current daily status

Current weekly status

Usual principal and subsidiary status

29. The process of budget making after re evaluating every item of expenditure in every financial year is known as

Performance Budgeting

Fresh Budgeting

Debit Budgeting

Zero Based Budgeting
30. Rank the states in terms of ascending Human Development Index as per India Human Development Report 2011
I. Bihar
II. Gujarat
III. Odisha
IV. Tamil Nadu
Codes

II, III, IV

III, II, IV

III, IV, II

III, II, IV
31. A difference in relative commodity prices between two nations can be based upon a difference in

factor endowment

technology

tastes

All of the above

32. Which type of trade is not explained by the Heckscher-Ohlin model

Trade based on economies of scale

Intra industry trade

Trade based on imitation gaps and product cycles

All of the above

33. An example of a Euro currency is

a dollar deposit outside theU.S.

a pound sterling deposit withinUK

a mark deposit with Germany

All of the above
34. A deficit or surplus i the India's balance of payments is measured by the net balance of

the current account

the capital account

allocation of SDRs and the statistical discrepancy

All of the above

35. If the demand of the domestic consumers is infinitely elastic and the supply of the foreign producer is perfectly inelastic, then the whole of the tariff will

be paid by the domestic consumers

be paid by the foreign producer

be equally shared by the domestic consumers and the foreign producer

yield neither revenue nor protection to either of them

36. The RBI made Indian Rupee fully convertible in current account transactions related to goods and services in the year

1985

2002

1994

2011
37. According to the monetary approach, a revaluation of a nation's currency

for money

money

for money

money

38. Arrange the following in chronological order
I. Sarkar Award
II. Niemeyer Award
III. Deshmukh Award
IV. Meston Award
Codes

II, IV, III, I

IV, III, II, I

III, II, IV, I

IV, II, III
39. In which of the following, Zero Based Budgeting is difficult to introduce
I. Establishment charges
II. Public works
III. Irrigation Projects
IV. Federal fiscal transfers
Codes

III and IV are correct.

II, III and IV are correct.

I and IV are correct.

II and III are correct.

40. Match the items given in List I with those in List II
List I List II
a. Theory of Clubs 1. Anthony Downs
b. Impossibility theorem 2. Charles Tie bout
c. Political of Decision Making Model 3. James Buchanan
d. Optimum provision of local public goods 4. Kenneth Arrow
Codes
a b c d

3 1 2 4

3 4 2 1

2 3 4 1

3 4 1 2
41. Which of the following tax has announcement effect

Income tax

Property tax

Excise Duties

Capital gains taxation

42. Which of the following tax is within the jurisdiction of Union or Central Government as enumerated in List I of Schedule VII of the India Constitution

sale of electricity.

carried by road.

entertainments.

newspapers and on advertisement therein.
43. A tax imposed on a commodity according to its weight, size or measurement is called

Advalorem tax

Specific tax

Single tax

Double taxation
44. Which of the following is Musgrave s views on incidence of taxation

tax payer.

of taxation.

income for private use arising from changes in budget policy.

of a tax.

45. Given arithmetic mean 45, mode 48, then median

46

45

48

49
46. If two events A and B are mutually inclusive, then P(A or is








47. The analysis of variance is carried out by using

t-test

Z-test

x2-test

F-test
48. Systematic sampling implies that the first item is selected randomly and

lottery method

purposively

then every kth item is selected

the other items are selected at the will of the investigator

49. Given the following information match the item in List I with
List II List II
a. Rejecting H0, if it is true 1. beta error
b. Accepting H0, if it is false 2. Standard error
c. Probability of rejecting H0, when it is false 3. alpha error
d. Measuring sampling variability due to random force 4. 1 beta

error
Codes
a b c d

3 1 2 4

2 1 4 3

2 4 1 3

3 1 4 2
50. Assertion Geometric mean is theoretically considered as the best average to construct index numbers.

Reason Geometric mean is used if the range of observations is extremely large.
Codes

is the correct explanation of

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

is true, but is false.


is false, but is true.