1. A solution of Walrasian general equilibrium will exist if and only if,

(A)Condition of fixed point theorem is satisfied.

(B)Pareto's condition of optimality is satisfied.

stability conditions are satisfied.

(D)The condition of Pareto's law of income distribution is satisfied.



2. Select the correct statement of Adding up Theorem.

income generated by the given output produced during the given period is distributed according to average productivity of all factors, total income will be exhausted.

(B)Total income derived from the output will be exhausted if all factors are paid according to their marginal productivity.

(C)Total income derived from the output will be exhausted if all factors are paid at the same rate.

(D)Total income will be exhausted if all factor rewards are proportional to commodity prices.



3. The producer will substitute capital for labour till he reaches that point of isoquant at which,

(A)The price of the good he produces equals wage rate.

(B)Marginal rate of technical substitution equals interest rate.

(C)Marginal rate of technical substitution equals marginal revenue.

(D)Marginal rate of technical substitution equals the ratio of marginal productivity of labour and capital.


4. Match the items from the List I with items in List II
List I List II
Sales maximization as the objective of the firm Morris

II) Growth maximization as objective of the firm Baumol

III) Managerial Utility Function Maximi­zation as objective of the firm Williamson

IV) Sales, profit growth maximization as objective of the firm Kaldor


Select the correct answer from the following codes

Codes
I II III IV
2 1 3 None

1 2 3 4

2 1 4 3

4 3 2 1


5. Match the items in List I with items in List II
List I List II
I)Cardinal Utility Theory of Demand Hicks
II) Revealed Preference Theory of Demand A. Marshall
III) Indifference Preference Theory of Demand Neuman Morgenstern
IV) Utility Index under uncertainty Samuelson
Select the correct answer from the following codes


Codes
I II III IV
2 3 4

3 2 1

4 1 3

1 3 2



6. Arrange the proponents of the marginal productivity theory of factor reward in chronological order
1)J.B. Clark
2)Marshall
3)Walras
4)Jevons Select the correct code for correct answer

Codes

3

2

2

3



7. Assertion Non-collusive model of Chamberlin asserts that a stable equilibrium can be reached if each firm charges Monopoly price and equally shares the market demand for their products.
Reason Reasoning is that the firms recognize mutual interdependence in terms of action and reaction with regard to price decision with the objective of profit maximization which will be realized if prices are determined at a level which equals marginal cost.

Codes

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

is correct, but is not correct.

(C)Both are correct but is not the correct explanation of

is correct, but is incorrect.


8. The revealed preference approach to the derivation of indifference curve

(A)Assumes stability over time of an observed person's tastes.

(B)Assumes that all people have identical tastes.

(C)Relies on repeated observations of the market behaviour of a single person.

correctly described by both



9. Which of the following statements does not hold true in case of the Keynesian Economics

(A)Velocity of money is an unstable function of its determinants.

(B)Labour is subject to money illusion.

(C)Aggregate supply function tends to become flat at levels of output well below full employment and to become steeper as full capacity is reached.

(D)Aggregate supply schedule is vertical, and output and employment are completely supply determined.



10. Tobin's q-theory of investment indicates that firms add to their stock of capital when

(A)the replacement value of their real assets exceeds the market value of their financial assets.

(B)the market value of their financial assets exceeds the replacement value of their real assets.

(C)the market value of their real assets exceeds the book value of their financial assets.

(D)the market value of their financial assets exceeds the book value of their real assets.



11. When current income includes negative transitory component, relating consumption with current income will produce

average propensity to consume that is lower than the long run average propensity to consume.

average propensity to consume that is higher than the average long run propensity to consume.

average propensity to consume that equals the long run average propensity to consume.

(D)None of the above


12. Liquidity trap is a situation when

(A)all potential investors expect the rate of interest to rise in future

(B)all potential investors expect the rate of interest to fall in future

(C)natural rate of interest is above the critical rate of interest

(D)demand for money for speculative purpose is interest-inelastic


13. In Harrod's model of economic growth, if warranted rate is below the natural rate of growth then it is possible to maintain steady state growth at the warranted rate with

(A)continually increasing unemployment

constant rate of unemployment

(C)continually decreasing unemployment

(D)None of the above




14. Which of the following is not a feature of the A.W. Phillip's inflation-unemployment trade-off relation

non-linear inverse relationship between unemployment rate and the rate of exchange in wage rate.

(B)There is a loop in the anti­clockwise around the Phillip's curve.

(C)The wage-inflation unemployment relationship is predictable.

(D)Philip's curve shifts when expected rate of inflation shifts



15. Suppose there is full employment and vertical aggregate supply schedule. An increase in the nominal money supply

(A)reduces the rate of interest and changes the composition of output

(B)causes a proportional increase in real output

(C)has no effect on the real money supply or the composition of output

(D)causes the real money supply to increase, which changes composition of output



16. In the context of the Mundell-Fleming model of open economy, consider the following variables that shift the IS function.
1)a rise in the exchange rate
2)an increase in foreign income
3)a cut in taxes
4)a fall in exchange rate

Which of the following combinations of these factors shift the IS function upwards towards the right


4

4

3

1



17. Since March 2010, how many times the Reserve Bank of India has increased the repo rate

(A)Eleven times

(B)Thirteen times

(C)Ten times

(D)Twelve times



18. Which of the following Committees has been set up in India for identification of BPL families in urban areas

(A)Tendulkar Committee

(B)Saxena Committee

(C)Lakdawala Committee

(D)Hashim Committee



19. A major financial inclusion initiative named 'Swabhiman' was formally launched on

(A)February 2010

(B)February 2011

(C)February 2009

(D)February 2008



20. Which of the Five Year Plans has laid emphasis on 'faster, sustainable and inclusive growth'

(A)Eleventh Five Year Plan

(B)Twelfth Five Year Plan

(C)Tenth Five Year Plan

(D)Ninth Five Year Plan



21. Under the revised Index of Industrial Production series, with 2004-05 as the base, the total number of items covered has increased from 538 to

(A)682

662

(C)652

642



22. Which one of the following States had the highest per capita income in 2009-10

(A)Punjab

(B)Haryana

(C)Madhya Pradesh

(D)Delhi




23. Which one of the following States had the highest number of branches of Regional Rural Branches (RRBs) in 2010

(A)Bihar

(B)Haryana

(C)Madhya Pradesh

(D)Punjab



24. Growth of Indian agriculture has been slowed down since the adoption of new economic policy due to
1)low increase in crop yield
2)low or no public investment
3)stagnant green revolution technology
4)low retail market prices of agricultural produce

Answer this question by selecting the correct combination of codes given below

Codes

4

3

3

4



25. According to the monetarists, money supply constitutes

(A)Currency demand deposits

(B)Currency demand deposits time deposits

(C)Currency demand deposits time deposits equity shares

(D)Currency all kinds of bank deposits deposits with other institutions borrowing



26. Which of the following is not a specialized sub market of the money market

(A)Collateral loan market

(B)Discount market

(C)Bond market

(D)Acceptance market



27. Arrange the following Committees in chronological order from the given codes
I)Khusro Committee
II)Dantwala Committee
III)Narasimham Committee
IV)Kelkar Committee


Codes

II, III, IV

IV, III

IV, III

III, IV



28. Assertion The working of Regional Rural Banks (RRBs) revealed that they eroded their capital base. Reason Many RRBs are non­viable and having high operating costs.
Of the above two statements, give the correct answer from the given codes

Codes

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

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

is true, but is false.

is false, but is true.



29. Which of the following institutions are regulated by the RBI as All India Financial Institution
I) Export Import Bank of India
II)National Housing Bank
III)State Bank of India
IV)Small Industries Development

Bank of India Select the correct answer from the given code


Codes

II and IV

III, IV



(D)III&IV



30. Core inflation is a measure of inflation

(A)that is based only on food and energy prices

(B)that includes items that face volatile price movements, notably food and energy

(C)that excludes items that face volatile price movements, notably food and energy

(D)None of the above



31. First Green Revolution was primarily concerned with the production and productivity of

(A)Pulses

(B)Oilseeds

(C)Wheat

(D)Fruits vegetables



32. During the period from 2004-05 to 2010-11, agricultural sector GDP

(A)witnessed a higher growth rate than the overall GDP

(B)witnessed a lower growth rate than the overall GDP

(C)witnessed a stagnant growth rate as compared to the overall growth rate

(D)witnessed a similar growth rate as that of the overall GDP.



33. The main objectives of food management are

(A)Procurement of food grains from farmers at remunerative prices

(B)Distribution of food grains to consumers at affordable prices.

(C)Maintenance of food buffers for food security and price stability

(D)All of the above



34. Which one of the following States contributed maximum to the production of pulses in the year 2009-10

(A)Uttar Pradesh

(B)Madhya Pradesh

(C)Rajasthan

(D)Punjab



35. A Kisan Credit Card Scheme was introduced in the year

(A)2001

2005

(C)1998

1999



36. Increase in agricultural production and productivity is a pre-condition

raise the share of agriculture in GDP

ensure national food security

provide livelihood and nutritional security

(D)All of the above



37. Select the year in which the gross fiscal deficit, revenue deficit and primary deficit of the Central Government as percent of GDP were the highest

(A)2008-09

2006-07

(C)2007-08

2005-06



38. Which item is likely to be the most significant item of expenditure of the Central Government during 2011-12

(A)Subsidies

(B)Defence

(C)Interest

(D)Share of States in Central taxes



39. Items of social sector expenditure of the State Governments include

I)Education and sports
II)Energy and transport
III)Medical and public health
IV)Water supply and sanitation Find correct answer from given codes


Codes

II and III are correct.

III and IV are correct.

III and IV are correct.

and III are correct.



40. Match the items of List I with items of List II from the given code
List I List II
Law of increasing R.N. Bhargava State activities
II) Displacement Adolph effect Wagner
III) Federal 3)Weisman and Finance Peacock
IV) Functional A.P. Lerner Finance


Codes
I II III IV
2 3 4

3 1 4

4 2 1

1 3 2



41. Assertion The Union Budget for 2010-11 had begun the process of fiscal consolidation with a partial withdrawal of the stimulus measures.
Reason There was a clear evidence of economic recovery in the economy.
In the context of the above two statements, which one is correct from the given codes

Codes

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

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

is correct, but is incorrect.

is correct, but is incorrect.



42. Arrange the following Reports in chronological order from the given codes
I)Committee on Taxation of Agricultural wealth and income
II)Report of the task force on direct taxes.
III)Thirteenth Finance Commission 2010-15
IV)Indian Tax Reforms Report of a survey


Codes
II, IV, I

II, III

III, IV

IV, III, II



43. In a competitive market, a tax on wage income falls wholly on labour if

(A)Labour supply is inelastic

(B)Labour supply is elastic

(C)Labour supply is highly elastic

(D)Demand for products has infinite elasticity



44. The apex financial institution responsible for the development of small and micro industries in India is

(A)IDBI

(B)SIDBI

(C)NABARD

(D)None of the above




45. The general methods used to solve industrial disputes in India are

1)Collective bargaining
2)Compulsory arbitration
3)Adjudication
4)Decision by trade unions


Choose the correct combination of methods from this following

and 2

and 3

and 4

and 3



46. Given below are two statements, one labelled as Assertion and other labelled as Reason
Assertion Information Technology industry is a 'high knowledge" based industry that has developed rapidly, mainly on its own merits in India.
Reason Industry that is based on high knowledge does not need any significant support from the Government nor there is much scope for outside interference.
Choose the correct combination of codes given below

Codes

is correct, but is wrong.

(B)Both and are correct.

is wrong, but is correct.

(D)Both and are wrong.



47. Match with the appropriate item among the following

(A)Regulation of Money market

(B)Regulation of Capital market

(C)Regulation of Commodity market

(D)All the above



48. Given below are the various combinations giving the steps of industrial development. Select the correct sequential combination of steps.

(A)Monetary expansion; industrial development; fall of interest; investment is stimulated.

(B)Industrial development; fall of interest; monetary expansion; investment is stimulated.

(C)Monetary expansion; fall of interest; investment is stimulated; industrial development.

(D)Industrial development; fall of interest; monetary expansion; investment is stimulated.



49. Under the post 1991 economic policies, the Government of India supports

(A)Private manufacturing sector

(B)Export industries

(C)Small industries

(D)All the above



50. Which of the following is the condition(s) of economic viability and technological feasibility of Leontief's static model

(A)Perron Frobinius root

(B)Value of the objective function of the primal should equal the value of the objective function of the dual of the primal.

(C)Kuhn-Tucker conditions

(D)Hawkins-Simon conditions




51. Given the following production function, match the items in list I and II



Codes
I II III IV
1 2 4

2 4 3

1 3 2

3 4 1



52. Match the following

List I List II
I)Box-Jenkins Causality Method
II)Unit-root test Forecasting
III)Durbin- Stationarity Watson statistic
IV)Granger test Auto correlation


Codes
I II III IV
1 2 4

3 4 1

2 3 4

1 2 3



53. Which of the following hypotheses are tested by a regression function

(A)Inter-relation between two or more variables is significantly different from Zero.

(B)The degree and direction of inter relations between two or more variables are non-zero and goodness of fit of the regression function is satisfactory.

(C)Degree of influence exercised by systematic explanatory factors is greater/lesser/equal to the influence exercised by random factors.

(D)All the above


54. In the presence of Heteroscedasticity, which of the following is not a correct statement

(A)Heteroscedasticity does not alter the unbiasedness and consistency properties of OLS estimators.

(B)OLS estimators are of minimum variance or efficient

(C)BLUE estimators are provided by the method of weighted least squares.

and tests based on standard assumptions of classical linear regression model may not be reliable.


55. Correlation coefficient between X and Y is 0.3 and correlation coefficient between P and Q is 0.6, then the strength of correlation between P and Q is higher than between X and Y by

(A)two times

(B)three times

(C)four times

(D)five times




56. Which of the following are conditions of consumer's equilibrium in a two commodity case where U utility and P1 and P2 are
prices of two goods

0

(B)dU1/dU2 0

(C)d2U/dX2 0

(D)None of the above



57. The production function is homogeneous of degree

(A)zero

one

(C)Infinity

a



58. Given the total cost function is

100

200

85

96



59. Match the following

List I List II
I)Acceptance of H0 when it is false Simple random sampling

II) Mean is equal to degrees of freedom Type II error

III) Population is homogeneous Positively skewed distribution

IV)Mean Mode lamda2 Distribution

Codes
I II III IV
4 3 1

2 3 4

4 1 3

1 2 3



60. For the regression model given below Y ß ßX U



(A)4.609

0.217

(C)4.34

0.33



61. For the regression model ßX+ ßX+….+ ßX+e The degrees of freedom of test
statistic t with n observations is

k

k 1

k 1

k 1



62. The act of simultaneously buying a currency in one market and selling in another market is called

(A)Speculation

(B)Spotting

(C)Forwarding

(D)Arbitrage



63. All internationally traded services are covered under which of the following WTO agreements

(A)GATS

TRIPS

(C)TRIMS

PTA



64. The Bretton Woods system

(A)set up a code of rules for nations to follow their conduct of international trade

(B)set up borrowing facilities for nation's temporary balance of payments problems

(C)Evolved over the years in several important ways

(D)All of the above



65. Full employment and balance of payments equilibrium will be automatically achieved in an optimum currency area

exchange rates are flexible

(B)foreign capital flows into the country

labour and capital move freely

trade is liberalized





66. Examples of economic integration
I) Free trade area
II)Customs union
III)Common market
IV)Cartel

and II are correct

and III are correct

II and IV are correct

II and III are correct



67. Arrange the order of WTO ministerial
I)Seattle
II) Cancun
III)Singapore
IV)Doha

III, IV

III, II, IV

IV, II

II, III, IV



68. Maximum rate of tariff India can levy on edible oil under WTO Agreement on Agriculture is



150%



300%



69. WTO Agreement on Agriculture consists of

I)Domestic support
II)Export subsidies
III)Market access
IV)Input subsidies

and IV are correct.

and IV are correct.

II and III are correct.

II and IV are correct.



70. In Harrod's growth model, neutral technical progress implies technical progress as

(A)Capital augmenting

(B)Labour augmenting

(C)Both labour and capital augmenting

(D)Productivity increasing



71. Which are the two gaps affecting growth process of an economic system in the two gap model of growth

(A)Saving gap and investment gap

(B)Income gap and consumption gap

(C)Foreign exchange gap and domestic saving gap

(D)Export gap and import gap



72. Assertion The new endogeneous growth theory examines production function that shows increasing returns.
Reason Because of specialization and investment in knowledge capital.

is true, but is false.

is true, but is false.

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

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



73. The 'Golden Age' model was developed by

(A)Nicholas Kaldor

(B)Joan Robinson

(C)J.R. Hicks

(D)R.F. Harrod



74. Terms of Trade of the developing countries are unfavourable due to the fact that whenever income in developed countries increases the demand for primary goods reduces because

(A)Income elasticity of demand for primary goods is high.

(B)Income elasticity of demand for primary goods is low.

(C)Income elasticity of demand is neutral towards primary goods.

(D)None of the above



75. T.W. Schultz has given the following ratios in relation to education for economic growth

(A)Education capital and labour ratio

(B)Education labour ratio

(C)Education-income ratio

(D)Education labour ratio, education income ratio and education investment ratio