1. Which of the following are the basic assumptions of cardinal utility analysis
I. Utility is a measurable and
II. quantifiable entity. Marginal utility of changes with changes income. money in real
III. Utilities derived from various goods are inter-dependent.
IV. The use of introspective method in judging the behaviour of marginal utility.
Codes

I and II are correct.

I and III are correct.

I and IV are correct.

III and IV are correct.

2. Engel Curve denotes

various amounts of a good which a consumer would be willing to purchase at various price levels.

various amounts of a good which a consumer would be willing to purchase at various income levels.

various amounts of a good purchased when the price of its substitutes tend to rise.

the relationship between income effect and substitution effect.

3. A producer is said to be operating with excess capacity

when he produces an output greater than that given by the minimum Average Total Cost

when he produces an output greater than at given by the maximum Average Total Cost

When he produces an output equal to that given by the minimum Average Total Cost

When he produces an output smaller than that given by the Minimum Average Total Cost

4. Assertion

Harvey Leibenstein asserted that marginal conditions required for economic efficiency are not usually satisfied in practice.

Reason People are not fully motivated towards maximization or minimization. Codes

Both and are correct and is the correct explanation of

is correct, but is not correct.

Both and are correct, but is incorrect explanation of

is correct, but is incorrect.

5. A graphical illustration used to explain efficiency conditions and demonstrates how the allocations of some goods and resources can be improved through exchange is called

production possibility curves

social indifference curves

Edge worth box diagram

Phillips curve

6. Match the following

List I List II
a. A double 1. A. Bergson Kaldor-Hicks Test
b. Compensation 2. K.J. Arrow Principle
c. Social 3. T. Scitovsky Welfare function
d. Impossibility 4. Kaldortheorem Hicks
Codes
a b c d

4 1 3 2

3 4 1 2

3 4 2 1

4 3 2 1

7. The oligopoly model in which the cycle hypothesis be represented as businessman assumes that his competitors output are fixed and simultaneously decide how much to produce is

Cournot oligopoly model

Stackelberg oligopoly model

Chamberlin's oligopoly model

Bertrand oligopoly model

8. According to Game Theory, if increased advertising, raises costs more than revenues and the profits of both firms decline, we have a

Positive-sum game

Non zero-sum game

Zero-sum game

Negative-sum game

9. Arrows impossibility theorem implies

Any social decision rule should not violates the requirements of rational choice.

Any social decision rule must violate at least one of the requirements of rational choice.

Any social decision rule must violate all the requirements of rational choice.

It is impossible to violate social decision rules.

10. 'Bandwagon effect is found in

Relative Income hypothesis

Permanent Income hypothesis

Life cycle Hypothesis

Absolute Income hypothesis

11. Let the consumption function in life cycle hypothesis be represented as
<img src='./qimages/2110-11.jpg'><br><br>
where e number of post retirement years of living.
y average annual income during the working period

Then Marginal Propensity to Consume is represented by the equation

<img src='./qimages/2110-11.jpg'><br><br>

12. Complete the statements given in List I with there given in List II

List I List II
a. Instantaneous 1. MPC is adjustment of smaller income with investment spending occurs in
b. Consumption 2. increase in lags income by investment one period in expenditure is once-for all
c. Value of 3. state investment multiplier multiplier is zero when
d. Major portion 4. dynamic of multiplier is multiplier realized in fewer periods when
Codes
a b c d

3 4 1 2

3 4 2 1

4 3 1 2

2 3 1 4

13. Assertion

The individual speculative demand for money is a discontinuous one.

Reason Because the aggregate speculative demand for money function is smooth downward sloping with liquidity trap at extremely low interest rates. Codes

Both and are correct and is the correct explanation of

Both and are correct but is not the correct explanation of

is correct, but is incorrect.

is incorrect, but is correct.

14. Transaction Cost is also called

Shoe Leather Cost

Menu Cost

Opportunity Cost of holding cash

All of the above
15. Given the consumption function, C 0.8Y, and the investment function I 102 0.2i, then the IS-curve is

Y 500 10i

Y 450 i

Y 510 i

Y 505 2i
16. Match the premise given in List I
with that in List II
List I List II
a. Price expectations are static 1. Okun s law
b. Price expectations are adaptive 2. Phillips Curve
c. People do not make systematic errors 3. Natural Rate of unemployment hypothesis
d. Deviations of output from its natural rate is inversely related to the deviation of unemployment rate from its natural level 4. Rational expectations hypothesis
Codes
a b c d

2 3 4 1

4 3 2 1

1 3 4 2

4 2 1 3

17. Given that the increment in aggregate speculative demand for money demand per unit of time, is is a discontinuous one. given by the equation
<img src='./qimages/2110-17.jpg'><br><br>
and the increment in supply of output is represented by the equation extremely low interest rates.
<img src='./qimages/2110-17.jpg'><br><br>
Where MPC Marginal Propensity to Consume, d1/dt&dk/dt are change in investment capital stock respectively, per unit of time, then the capacity creating effect or Domar effect of investment following goods market equilibrium equals <img src='./qimages/2110-17.jpg'><br><br>

18. When the aggregate supply schedule is positively sloped, continuous increases in the nominal money supply, ceteris parilus, result in

No change in the price level and proportional increases in real output.

No change in real output and proportional increases in the price level.

An increase in the price level and real output.

An increase in the price level and a decrease in real output.

19. "Golden Age" as per Mrs. Joan DN Robinson is (where is growth deltaN/N DK/K rate of population and is growth K rate of capital) DN DK

<img src='./qimages/2110-19.jpg'><br><br>

20. A technical change is neutral if MPK/MPL remains unchanged at constant K/L

Harrod

Hicks

Solow

Kaldor

21. Concept of disembodied technical change is associated with
I. Abramovitz
II. Kaldor
III. Kendrick
IV. Solow

I and II

III and IV

III and IV

II, III and IV

22. Joan Robinson's growth model deals with
I. Desired growth rate
II. Possible growth rate
III. Natural growth rate
IV. Warranted growth rate Codes

I and III

II and IV

I and II

III and IV

23. Assertion

To Marx, it is surplus labour that lead to capital accumulation. Reason The difference between actual labour and subsistence labour that a labourer puts in for which he receives nothing is surplus labour. Codes

is correct, but is not the correct reason for

is correct and is incorrect.

Both and are correct.

Both and are incorrect.

24. Arrange the "Structural Development Processes" in a sequential order
I. Resource Allocation Processes
II. Accumulation Process
III. Distributional Processes
IV. Demographic Processes Codes

IV, II, III

II, IV, III

III, II, IV

IV, III, II

25. Match the items in List I with List II

List I List II
a. MPL is zero in overpopulated economies 1. Gunnar Myrdal
b. Two gap model 2. J.E. Mead
c. Critical growth rate 3. Arthur Lewis
d. Backwash effects 4. Hollis Chenery others
Codes

a b c d

1 3 4 2

3 4 2 1

2 1 3 4

4 2 1 3

26. Match the items in List I with List II

List I List II
a. Learning by doing 1. Kaldor
b. Biased Technical 2. Karl Sax Progress
c. Co-efficient of 3. Kenneth sensitivity of J. Arrow income distribution
d. Theory of 4. Joan Demographic Robinson Transition Four stages of Population growth

Codes
a b c d

3 4 1 2

1 3 2 4

2 1 4 3

4 2 3 1 27.

Assertion Slow model is a major improvement over Harrod-Domar Model.

Reason Slow built a model of long run growth without the assumption of fixed proportion in production. Codes

is correct, but is not the correct reason of

is not correct, but is correct.

Both and are correct.

Both and are not correct.

28. The concentrations effect explained in Peacock-Wiseman hypothesis implies

public expenditure does not increase in smooth and continuous manner

public expenditure increases the necessity of increased revenue

the Central Government's economic activity to grow faster than that of sub national Governments

absolute level of public expenditure increases

29. A tax imposed upon monopoly profits

can be shifted forward

can be shifted backward

can be shifted both forward and backward

cannot be shifted

30. The plan expenditure on Revenue Account of the Union Government includes
I. Economic Services
II. Social and community services
III. Grants-in-aid to States and Union Territories
IV. Loans and Advances to finance public enterprises Codes

I and II are correct.

II and III are correct.

II and IV are correct.

II, III and IV are correct.

31. Debt obligations of Government of India (Government liabilities)
I. State Provident Funds
II. Small Savings
III. Reserve Funds and Deposits
IV. Consolidated Fund of India Codes

II and III are correct.

II and III are correct.

II, III and IV are correct.

III and IV are correct.

32. Identify the chronology of the following Committees on tax reforms in India
I. Committee on Taxation of Agricultural Income and Wealth
II. Kaldor Proposal for Tax Reform in India
III. Task forces on Direct and Indirect Taxes
IV. Direct Taxes Administration Enquiry Committee Codes

II, IV, III

II, IV, III

II, III, IV

III, IV, II

33. Which of the following are the role of Finance Commissions in India
I. To make recommendations on the distribution of tax proceeds between Centre and States.
II. To make Recommendations on levying, removing or restructuring of taxes.
III. To recommend Grants-in-aid under Article 275 of the Constitution
IV. To recommend plan and other grants under Article 282 of the Constitution Codes

I and II are correct.

I and III are correct.

III and IV are correct.

All are correct.

34. Under a managed floating exchange rate system, the nation's monetary authorities intervene in foreign exchange markets to

smooth out short-run and long- run fluctuations in exchange rates

keep exchange rates fixed among a group of nations

smooth out short-run fluctuations in exchange rates

keep exchange rates flexible

35. Euro currency market is a part of a larger global market known as Eurodollar market.

Above statement is correct.

Above statement is not correct.

Above statement is partially correct.

Above statement is partially incorrect.

36. Match the following

List I List II
a. WTO 1. Provide finance to correct disequilibrium in balance of payments.
b. IMF 2. Generally forbids the use of quantitative restrictions in trade.
c. SAARC 3. Sanction of soft loans
d. IDA 4. Promotes trade among South Asian Countries

Codes

a b c d

1 2 3 4

2 3 4 1

2 1 4 3

3 2 4 1

37. A sudden shift from import tariffs to free trade may induce short term unemployment in

import competing industries

industries that are only exporters

industries that sell domestically As well as export

industries that neither import nor export

38. The immediate cause for the collapse of the Bretton woods system was

the expectation that the U.S.A. would soon be forced to devalue the dollar

the massive flight of liquid capital from the U.S.A.

the attempt by three small European Central Banks to convert part of their dollar holding into gold at the Federal Reserve Bank.

All of the above

39. A feasible effect of international trade is that

a monopoly in the home market becomes an oligopoly in the world market

an oligopoly in the home market becomes a monopoly in the world market

a purely competitive firm in the home market becomes an oligopolist

a purely competitive firm in the home market becomes a monopolist

40. The European Union has achieved all of the following, except

adopted a common fiscal policy for member nations

established a common system of agricultural price supports

disbanded all tariffs between its member countries

levied common tariffs on products imported from non members

41. A Foreign Trade Zone is

a regional area within which trade with foreign nations is allowed

a free trade agreement among several nations

designed to promote exports by deferring import duties on intermediate inputs and waving such duties if the final product is re-exported rather than sold domestically

designed to limit exports of manufactured goods by placing import taxes on goods made within the zone

42. The formula that shows the correct relationship between
I. The supply of high powered money
II. The currency
III. The money supply
IV. Required Reserves V. Excess Reserves V
I. Demand deposits is

<img src='./qimages/2110-42.jpg'><br><br>

43. Which of the following will act as the 'lender of intermediate resort'

RBI

NABARD

SBI

None of the above

44. According to Gurley and shaw, the various substitutes of currency and commercial bank demand deposits should be assigned different weights according to

their degree of replacement

their degree of substitutability

their share in the money market

their share in money supply

45. Assertion Primary financial markets deals in new financial claims.

Reason It mobilises savings and supplies new capital to the business units. Codes

Both and are correct and is the correct explanation of

Both and are correct and is not a correct explanation of

is true, but is false.

is false, but is true.

46. Margin requirement specified under which instruments of monetary policy

Variable Reserve Requirement

Statutory Liquidity Requirement

Selective Credit Controls

Open Market Operations

47. As per Micro, Small and Medium Enterprise Development Act, 2006, Medium Enterprises are defined as those with investments

25 lakhs

25 lakhs to 5 crores

5 crores to 10 crores

10 crores

48. Theory of Industrial Location is associated with the names of
I. Losch
II. Weber
III. Christaller
IV. Lerner Codes

I&II

I only

II and III

II, III and IV

49. The Committees related to industrial licensing policy are
I. Arjun Sengupta Committee
II. D.G. Karve Committee
III. Subimal Dutt Committee
IV. R.K. Hazari Committee Codes

I and II

II and III

III and IV

II and III

50. Which Industrial Policy Resolution gave the public sector a strategic role in the Indian Economy

1948

1956

1977

1980

51. Average industrial growth rate during Tenth Plan period was

5.3%

8.8%

10.2%

15.3%

52. Suggest the correct choices about the nature of the Environmental Economics
I. Nature of Market failure is similar to public goods under public finance.
II. Willingness to pay can be negative.
III. It deals for items which are not used.
IV. It deals for items which are used. Codes

II, III&IV

II&III

II, III IV

II&IV

53. Which of the following methods would be used for estimation of price change of a house due to either pollution or good environment like existence of park and scenic beauty

Hedonic Method

Contingent Valuation Method

Externality Effects

All of the above

54. In a life table which of the following does not fit

There are eight columns in a life table.

It tells the age-specific mortality rate.

Age-specific birth rate can be derived from a life table.

Age-specific life expectancy can be estimated

55. Optimum theory of population tells about the relationship between

Population and food supply

Population and overall resources

Dependent population and working population

Present population and growth rate of population

56. What is meant by population neutralism

Impact of population growth on economic growth is negligible.

Growth rate of population is hovering around stationary population.

Impact of population growth on food supply is neutral.

Due to population growth, change in age structure is almost neutral.

57. What is the essence of wage goods model explained by Professor P.R. Brahmananda in the Indian economy context

It tells about low wage rate in the agriculture.

It tells about low wage rate for labour in the economy.

It tells about shift of labour from agriculture to industry.

It tells about the impact of the shortage of food items on the wage rate and growth rate of the economy.

58. Match the highest crop production states given in List I with List II from the given code

List I (States)List II (Highest crop production)
a. West Bengal 1. Total course cereals
b. Uttar Pradesh 2. Rice
c. Maharashtra 3. Potato
d. Gujarat 4. Groundnut Codes ab cd

2 3 1 4

3 2 1 4

4 2 3 1

1 3 4 2

59. About minimum support price, find out the correct combinations
I. If market price is higher, farmers will sell to the government.
II. It ensures minimum assured price for the produce of the farmers.
III. It helps in food security mission.
IV. This is highly rewarding to farmers because they earn huge profits on their produce. Codes

II&IV

II,III&IV

II&III

II&IV

60. Which of the followings have been important in growth of rice and wheat output in India after initiating green revolution programme
I. Changes in cropping pattern
II. Improved yields
III. Crop insurance
IV. Increased area under cultivation Codes

II,III&IV

II&IV

II&III

III&IV

61. Green agriculture involves

on horticulture

fertilizers while focussing on horticulture and flori culture

integrated nutrient supply and integrated natural resource management

horticulture and flori culture

62. The average cost function is given as AC 1 3 x2 10x 9. The level of output at which average cost is equal to marginal cost is



15

21

63. The demand and supply functions are given as Pa 30 5x and Ps 3x 10 respectively quantity). The consumer surplus is



62.5

-125

64. The linear programming problem specified as
Max Z 3x 1 5x 2 10x 3

Sub to: x 1 x 2 x 3 100
9x 1 x 2 8x 3 95
x 1 8x 2 3x 3
2x 1 7x 2 x 3
and x x 2 0 and x 3 0 has

a feasible solution

an optimal solution

multiple solutions

no solutions

65. The estimated regression equation of a firm producing scooter tyres is
ln y 3.56 0.31 ln X1 0.05 ln
X2 0.53 ln X3 0.37 ln X4,ü
2 0.89 output and X1 to X4 are factor inputs). Assuming that all the estimated parameters are statistically significant from zero, the firm has

constant returns to scale

decreasing returns to scale

increasing returns to scale

neutral returns to scale

66. The test statistic used to test the significance of the adjusted coefficient of multiple determination is

(A)t-test

Z-test

c2-test

F-test

67. Given that the CES production function as Y A[aL-b g b Match List I with List II and select the answer from the codes given below

List I List II
a. A 1. Factor intensity
b. a 2. Elasticity of substitution
c. b 3. Factor homogeneity
d. g 4. Efficiency parameter

Codes a b c d

1 4 2 3

2 4 1 3

1 2 3 4

1 4 3 2

68. The technique used to estimate the over-identified system of simultaneous equations is

ordinary least squares

maximum likelihood

likelihood

two stage least squares

69. Which of the following assumptions are required to show the consistency, un biasedness and efficiency of the OLS estimates
I. E 0 t
II. Var s2 t
III. cov 0 for all values tt-jof j ¹ 0
IV. n s2) t Codes

II and IV only.

I and III only.

II and III only.

All the above four

70. The sources of auto correlation among the following are
I. Omitted explanatory variables
II. Interpolation in the statistical observation
III. Mis-specification of the true random term
IV. Economic variables to move together over time Codes

I and II only

II and III only

III and IV only

All of the above

71. Arrange the following sub-sectors of the services sector of the Indian economy in ascending order of their contributions to the GDP in recent years
I. Trade, hotels and restaurants
II. Transport, storage and communication
III. Financing, insurance, real estate and business services
IV. Community, social and personal services Codes

II, III, IV

II, IV, III, I

II, III, IV

III, IV, II

72. Which of the following can be linked with those providing method for estimating black money in India
I. Kaldor's approach
II. NIPFP method
III. O.P. Chopra's method
IV. Arjun Sengupta Codes

II&III

II, III IV

III&IV

I&II

73. What is the share of single lane/intermediate lane in the total length of National Highways

12 percent

15 percent

22 percent

29 percent

74. During which year, gross domestic savings of the public sector turned negative in the Indian economy
I. 1990 91
II. 1995 96
III. 1999 2000
IV. 2002 2003 Codes

I and II

II and ü III

III and IV

I and IV

75. What has been the projected investment ratio for the infrastructure development for the Eleventh Five Year Plan of India

5.43 percent

6.53 percent

7.60 percent

9.34 percent