1. Marginal Revenue of a Monopoly firm is less than the price. Because

(A)Demand curve has a positive slope.

(B)Demand curve has a negative slope.

(C)Monopolist incurs losses.

(D)Monopolist is in equilibrium.



2. For an inferior goods, income consumption curve and Engles curves are

(A)Positively sloped

(B)Negatively sloped

(C)Are the same

(D)Income consumption curve positively sloped and the Engles curve is negatively sloped



3. The classical economists focussed on the role of money as

(A)medium of exchange

(B)medium of distribution

(C)wealth

(D)link between present and future



4. If the demand for money is perfectly interest inelastic, the LM schedule will be

(A)Upward sloping

(B)Downward sloping

(C)Horizontal line

(D)Vertical line



5. Harrod-Domar model of economic growth is based on the equilibrium between

(A)Income generation and productive capacity creation

(B)Equilibrium between income and consumption

(C)Equilibrium between savings and investment

(D)None of the above


6. In calculating the buoyancy of a tax, we consider

(A)Only discretionary changes

(B)Only automatic changes

(C)Both and

(D)Neither nor


7. Which of the following measures of the central tendency suits the data best if the objective is to assess the distribution of values

(A)Arithmetic mean

(B)Mode

(C)Median

(D)Kurtosis


8. Comparative cost advantage in Ricardo's international trade theory arises due to

(A)Labour cost differences

(B)Differences in factor endowment

(C)Factor abundance defined in terms of factor prices

(D)All of the above


9. In India, in 2004-05 the number of poor persons below poverty line was the highest in the State of

(A)Bihar

(B)Uttar Pradesh

(C)Madhya Pradesh

(D)Rajasthan


10. Which of the following is not a component of Bharat Nirman

(A)Rural housing

(B)Rural electrification

(C)Agro-based industries

(D)Rural telephony

11. A point of in the kinked demand curve indicates

I)Price rigidity
II)Quantity rigidity
III)Price flexibility
IV)Quantity flexibility

Codes

(A)I and II are correct.

(B)II and III are correct.

(C)III and IV are correct.

(D)I and IV are correct.


12. Improvement in the BOP deficit may be effected through

I)Import control
II)Export promotion
III)Foreign exchange control
IV)Devaluation

Codes and II are correct. II, III and IV are correct.

(C)II and III are correct. II and III are correct.


13. The problem relating to burden of public debt has been dealt by

I)A.P. Learner
II)E.D. Domar
III)A.C. Pigou
IV)A.H. Henson

Codes and II are correct.

(B)II and III are correct.

(C)I and IV are correct.

(D)II and III are correct.


14. Fiscal policy relates to the Government decision in respect of

I) Taxation
II)Government spending
III)Government borrowing
IV)Public Debt
Codes
(A)III and IV are correct. III and IV are correct.

(C)I and II are correct.

(D)All the above are correct.


15. HDI is entrusted with reference to

I)Life expectancy at birth
II)Real GDP/per capita
III)Infant mortality
IV)Morbidity


Codes

(A)I and II are correct.

(B)II and III are correct.

(C)III and IV are correct.

(D)All the above



16. The doctrine of unbalanced growth was propounded by

I)Hirschman
II)Robert Solow
III)Singer
IV)Ragnar Nurkse


Codes

(A)I and II are correct.

(B)II and III are correct.

(C)III and IV are correct.

(D)I and III are correct.



17. Harrod-Domar model of economic growth is based upon

I)Warranted growth rate
II)Investment growth rate
III)Productivity growth rate
IV)Natural growth rate


Codes

(A)I and II are correct.

(B)II and III are correct.

(C)III and IV are correct.

(D)I and IV are correct.



18. In Keynesian system speculative demand for money arises because of
I)Uncertainty of future interest rates
II)Unexpected expenditures
III)To bridge the gap between income and eventual expenditure
IV)Relationship between changes in the interest rates and bond prices


Codes

(A)I and III are correct.

(B)I and IV are correct.

(C)II and III are correct.

(D)III and IV are correct.



19. According to Milton Friedman Theory of permanent component of consumption-expenditure depends on
I)Transitory income alone
II)Transitory and permanent income
III)Permanent income alone
IV)Windfall gains


Codes

(A)I and II are correct.

(B)I and III are correct.

(C)II and IV are correct.

(D)Only III is correct.



20. The Planning Commission of India has recently made announcement regarding Poverty Line
I) Rs 42 per capita per day in urban area
II) Rs 26 per capita per day in rural area
III) Rs 32 per capita per day in urban area
IV) Rs 32 per capita per day in rural area


Codes

(A)I and II are correct.

(B)I and III are correct.

(C)II and III are correct.

(D)III and IV are correct.

21. Assertion Giffin's paradox rarely occurs in the real world.
Reason Inferior goods are narrowly defined for which suitable substitutes are available.

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 incorrect, but is correct.


22. Assertion According to the Life Cycle Theory of consumption, an individual level of consumption depends not just on current income but also on long run expected earnings.
Reason Individuals are assumed to plan a pattern of expenditure based on expected earnings over life time.


Codes is true, but is false.

(B)Both and are false. is not correct, but is correct.

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

23. Assertion Effective demand can be increased by more equitable distribution of wealth.
Reason Thirty or forty entities with income averaging between 1 lakh and 5 lakhs would create much more effective demand than a single entity having income of 10 lakhs a year.

Codes

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

(B)Both and are correct and is the correct explanation of is correct, but is incorrect. is incorrect, but is correct.



24. Assertion During the period 2004-05 to 2007-08 fiscal consolidation process was witnessed in India.
Reason There was buoyancy in tax revenue during this period.


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 incorrect, but is correct.



25. Assertion K/L ratio will adjust through time in the direction of equilibrium ratio.
Reason Because the technical co­efficient of production are variable.

Codes

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

(B)Both and are correct and is the correct explanation of is correct, but is incorrect. is incorrect, but is correct.


26. Assertion Financial inclusion is desirable to help weaker sections of society in the country.
Reason Investment activity needs to be promoted to facilitate access to development benefits to masses.


Codes

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

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


27. Assertion Stationary state is the end of the process of capital formation.
Reason Scarcity of natural resources as also capital leads the economy to the stationary state.


Codes

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

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



28. Assertion Investment has also a supply effect.
Reason Because it raises capacity to produce.


Codes

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

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



29. Assertion Gold standard was finally given up after the Second World War.
Reason Countries had different rates of inflation.


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

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



30. Assertion Disguised unemployment is present in Indian agriculture.
Reason Marginal productivity of agriculture is close to zero.


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 not correct. is not correct, but is correct.



31. Arrange the following in chronological order :

I)CES production function.
II) Cobb-Douglas production function
III) Tronslog production function
IV) The law of variable proportions

Codes III, IV, II IV, II, III

(C) IV, II, III II, III, IV

32. Consider the following schemes EAS
II)TRYSEM
III) JRY
IV) RLEGP

The correct chronological sequence of the launching of these schemes are :

Codes II, IV, III IV, II, III, I

(C) IV, III, II II, IV, III, I

33. Arrange the origin of money in a sequential order

I) Cheque
II) Metallic money
III) Commodity money
IV) Paper money

Codes IV, III, II III, II, IV

(C) III, II, IV, I II, IV, III

34. Arrange the following theories in the chronological order Restatement of Quantity Theory
II) Income Theory
III) Quantity Theory
IV) Cash Balance Approach

Select the correct answer from the given codes :

Codes II, IV, III III, II, IV

(C) IV, III, II III, IV, II, I

35. Identify the correct chronological order of the following classical economists Adam Smith, Malthus, Ricardo,J.S. Mill

(B) Adam Smith, Ricardo, Malthus,J.S. Mill

(C) Adam Smith, J.S. Mill, Ricardo,Malthus

(D) Adam Smith, Malthus, J.S. Mill,Ricardo

36. The sequencing process of Schumpeter model of development is

(A) Swarm like Clusters, Innovation,Bank credit, Breaking circular flow

(B) Breaking circular flow,Innovation, Bank credit, Swarm like Clusters

(C) Innovation, Bank credit,Breaking circular flow, Swarm like Clusters

(D) Bank credit, Innovation, Swarm like Clusters, Breaking circular flow

37. Arrange the following theories in order in which they appeared Comparative Cost Advantage Theory
II) Absolute Cost Advantage Theory
III) Leontief Paradox
IV) Factor Endowment Theory

Codes III, II, IV II, III, IV, I

(C) II, IV, III IV, II, III

38. Arrange the stages of economic growth in a sequential order The age of high mass consumption
II) The traditional society
III) The take-off stage
IV) The drive to maturity

Codes III, IV, II II, IV, III

(C) III, II, IV II, III, IV, I

39. Identify the sequence of implementation of the following taxes.

Select the correct answer from the given codes :

I)Land Revenue
II) Sales tax
III) MODVAT
IV)Service tax

Codes II, III, IV II, IV, III

(C) III, II, IV, I IV, II, III

40. Identify the correct chronology of the following :

I)Fisher's test of significance of differences between means of three or more samples.
II) Kendal's partial rank correlation.
III) Gossest's T test of significance between means of two samples.
IV) lamdA2 test of goodness of fit of the curve and randomness of the sample values.

Codes III, II, IV II, III, IV

(C) IV, III, II, I II, IV, III

41. List I List II
I) Behavioural theory of the firm J.B. Clark
II) Marginal productivity theory of distribution Cyert and Mark
III) Double criterion of welfare Kenneth Arrow
IV) Impossibility Theorem Scitovosky

Codes :

I II III IV
(A) 2 1 4 3

(B) 3 2 4 1

(C) 1 4 3 2

(D) 2 1 3 4

42. List I List II
I) New Classical Economics T.H. Haavelmo
II) Permanent Income Hypothesis Robert Lucas
III) Multiple effect of Balanced Budget N. Gregory Mankiw
IV) New Keynesian Economics Milton Friedman

Codes :

I II III IV
(A) 3 4 1 2

(B) 4 3 2 1

(C) 2 4 1 3

(D) 1 2 4 3

43. List I List II
I) Invisible Hand Karl Marx
II)Warrier Knight Adam Smith
III) PQLI Schumpeter
IV) Surplus Value 4)Morris D. Morris

Codes I II III IV

(A) 1 4 2 3

(B) 2 3 4 1

(C) 1 2 3 4

(D) 4 3 2 1

44. List I List II
I) Four Sector Model Rosestein-Rodan
II) Critical Minimum Effort Thesis Arthur Lewis
III) Big Push Theory Mahalanobis
IV) Theory of Unlimited Supply of Labour Leibeistein

Codes :

I II III IV
(A) 4 3 2 1

(B) 3 4 1 2

(C) 4 1 3 2

(D) 1 2 4 3

45. List I List II
I)Food-grains Production Industrial Sector
II) Level of Prices Revenue deficit
III) Industrial Growth Agricultural Sector
IV) Fiscal Indicators Wholesale Price Index

Codes :

I II III IV
(A) 4 2 1 3

(B) 3 4 2 1

(C) 3 4 1 2

(D) 2 3 4 1

46. List I List II
I) National Agricultural Policy 2004
II) Marine Fishing Policy 1978
III) New Foreign Trade Policy 2000
IV) Seventh Finance Commission 2004

Codes :

I II III IV
(A) 2 1 3 4

(B) 4 3 1 2

(C) 1 4 2 3

(D) 3 1 4 2

47. List I List II
I) GATT Managing balance of payments
II) IMF Developmental Finance
III) IBRD Free Trade
IV) UNO Maintenance of peace among nations

Codes :

I II III IV
(A) 2 1 4 3

(B) 3 1 2 4

(C) 2 3 1 4

(D) 4 1 3 2

48. List I List II
I) Adam Smith Availability doctrine
II) David Ricardo Factors endowment
III) Ohlin Absolute advantage
IV) I.B. Kravis Comparative advantage

Codes :

I II III IV

(A) 1 2 3 4

(B) 3 4 2 1

(C) 2 4 3 1

(D) 4 3 1 2

49. List I List II
I) Simple Random Sampling Equal probability of selection of an item in a trial
II) Random Sampling Equal probability of each item in all trials
III)Stratified Random Sampling Random selection of first and systematic of the rest
IV) Stratified Systematic Random Sampling Random choice of all items from each stratum

Codes :

I II III IV
(A) 1 2 3 4

(B) 3 1 4 2

(C) 4 3 1 2

(D) 2 1 4 3

50. List I List II
I) IS-LM Theory Franko Modigliani