PAPER-II ECONOMICS Signature and Name of Invigilator


1. The Opportunity Cost Curve assumes that

(A)Labour is the only factor of production


(B)the price or a cost of a commodity can be inferred from its labour content


(C)Labour is homogeneous


(D)None of the above



2. Hedging refers to

(A)the acceptance of a foreign exchange risk


(B)covering of a foreign exchange risk


(C)foreign exchange speculation


(D)foreign exchange arbitrage



3. An increase in the marginal propensity to import

(A)has the same effect upon the multiplier as an increase in the MPC


(B)has no effect upon the multiplier


(C)will increase the value of the multiplier


(D)will decrease the value of the multiplier



4. The price elasticity of demand is equal to one for a demand curve, which is

(A)horizontal line


(B)vertical line


(C)rectangular hyperbola


(D)downward moving line



5. The third moment around the mean is useful to measure

(A)central tendency


(B)dispersion


(C)peakedness


(D)symmetry



6. Forward and backward linkages were propounded by

(A)Gunnar Myrdal


(B)Hirschman


(C)Boeke


(D)Leibenstein



7. If sample statistics theta 1 is more efficient estimator than theta then it implies that

(A)var(theta1) var(theta2)


(B)theta 1 theta 2


(C)var(theta var(theta


(D)theta 1 theta 2



8. Golden Age hypothesis is concerned with


(A)natural rate of growth warranted rate of growth


(B)actual rate of growth warranted rate of growth


(C)warranted rate of growth natural rate of growth


(D)warranted rate of growth natural rate of growth



9. Which of the following can be evaluated with the help of Lorenz Curve

(A)The Allocative and technical efficiency of markets.


(B)The comparative advantage of trading partners and terms of trade.


(C)The degree of equity in income distribution.


(D)The equilibrium of market prices and quantities throughout the world.



10. Which of the following distribution function has equal mean and variance

(A)Normal


(B)Binomial


(C)Hypergeometric


(D)Poisson



11. Global 2008 financial crisis was created by

(A)Nationalised Banks


(B)Sub-prime Market lending


(C)Bond Market


(D)Interest rate mechanism



12. Dr. Y.V. Reddy was

(A)Chairman, UTI


(B)Chairman, IDBI


(C)Governor, RBI


(D)Chairman, LIC



13. A term financial liberalisation is concerned with


(A)Control by the RBI


(B)Decontrol and Deregulation of financial system in an economy


(C)Only decontrolling interest rate structure


(D)Asset-liability efficient management of nationalised banks



14. Fiscal deficit is identified as


(A)Budgetary deficit Government market borrowing and liabilities


(B)Total outlay income received


(C)Budget deficit public borrowing


(D)None of these



15. Which of the following economist developed the concept of "immiserzing growth"


(A)Jagdish Bhagwati


(B)Samuelson


(C)Mrs. Joan Robinson


(D)Harrod-Domer



16. Sustainable health management of people in India is concerned with


(A)Corporate efficient Hospital Management


(B)Cost-effective health services


(C)Government subsidy on health expenditure born by people


(D)Development of medical tourism



17. Sustainable energy growth depends upon

(A)Supply side management of energy resources


(B)Demand side management of energy resources


(C)Market driven structure of tariff of energy consumption at given supply of energy


(D)None of these





18. Which of the following is an ideal Index Number

(A)Lespeyre


(B)Bowley


(C)Fisher


(D)Marshall-Edgeworth



19. Laffer Curve measures


(A)Relation between tax rate and tax revenue


Aggregate Tax and Aggregate Non-Tax Revenue


Total tax burden and total payment burden


Total Income and total expenditure




20. According to Milton Friedman, Quantity Theory of Money deals with

(A)Prices


(B)Income


(C)Supply of Money


(D)Demand for Money



21. Consider the following statements and select the correct answer from the codes given below for Questions. (Assertions and Reason type Questions)

Assertion Devaluation can correct imbalance in the Balance of Payments.

Reason(R): Devaluation raises the price of imported goods and reduces the foreign price of exports of the devaluating country.

Codes

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


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


is true, but is false.


is false, but is true.


22. Consider the following statements and select the correct answer from the codes given below for Questions. (Assertions and Reason type Questions)

Assertion(A): Vent for Surplus Theory is applicable to underdeveloped countries.

Reason(R): Availability Theory is applicable to countries with rich natural resources.


Codes

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


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


is true, but is false.


is false, but is true.


23. Consider the following statements and select the correct answer from the codes given below for Questions. (Assertions and Reason type Questions)

Assertion(A) Geometric Mean is mathematical average.

Reason(R): Value of Geometric Mean is determined by each and every item.

Codes

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


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


is true, but is false.


is false, but is true.


24. Consider the following statements and select the correct answer from the codes given below for Questions. (Assertions and Reason type Questions)

Assertion(A) Inadequate forest cover leads to ecological imbalance.

Reason(R): Ecological imbalance will decrease population growth.

Codes

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


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


is true, but is false.


is false, but is true.


25. Consider the following statements and select the correct answer from the codes given below for Questions. (Assertions and Reason type Questions)

Assertion(A): Leontief Paradox contradicted Hecksher-Ohlin Theory.

Reason(R): USA exported labour intensive products.

Codes

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


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


is true, but is false.


is false, but is true.


26. Consider the following statements and select the correct answer from the codes given below for Questions. (Assertions and Reason type Questions)


Assertion(A): The imposition of Sales Tax does not affect the profits of the monopolist.

Reason(R): The monopolist shifts the burden of Sales Tax on the consumer.

Codes

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


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


is true, but is false.


is false, but is true.


27. Consider the following statements and select the correct answer from the codes given below for Questions. (Assertions and Reason type Questions)

Assertion(A): Skewness measure lack of symmetry.

Reason(R): Kurtosis measure correlation.

Codes

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


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


is true, but is false.


is false, but is true.


28. Consider the following statements and select the correct answer from the codes given below for Questions. (Assertions and Reason type Questions)

Assertion(A): More reliance should be placed on progressive income taxes.

Reason(R): It is in accordance with the principle of equity.

Codes

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


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


is true, but is false.


is false, but is true.


29. Consider the following statements and select the correct answer from the codes given below for Questions. (Assertions and Reason type Questions)

Assertion Indian agriculture still absorbs a major part of the work force.

Reason(R): Employment elasticity of agricultural production is high.

Codes

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


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


is true, but is false.


is false, but is true.


30. Consider the following statements and select the correct answer from the codes given below for Questions. (Assertions and Reason type Questions)

Assertion(A): National Income increases if investment is greater than savings.

Reason(R): Saving and investment are planned by same individual.

Codes

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


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


is true, but is false.


is false, but is true.



31. mark the option having the right chronological order

Says Law of Markets

Theory of Surplus Value

Theory of Absolute Advantage

Tableau Economique

Codes














32. mark the option having the right chronological order

Integrated Rural Development Programme

20-point Programme

Community Development Programme

National Rural Employment Guarantee Programme


Codes














33. mark the option having the right chronological order

Harrod-Domar Growth Model

Rostows Stages of Growth

Lewis Model

Romer Model


Codes













34. mark the option having the right chronological order

Uruguay Round

Kennedy Round

Tokyo Round

Dillon Round


Codes













35. mark the option having the right chronological order

Mahalanobis Planning Model

Introduction of Rolling Plan

Declaration of Plan Holiday

Inclusive Growth Strategy


Codes














36. mark the option having the right chronological order

Deputy Chairman of Planning Commission

(i)T.T. Krishnamachari

(ii)Pranab Mukherjee

P.N. Haksar

D.R. Gadgil


Codes














37. mark the option having the right chronological order

Introduction of Special Drawing Rights

Introduction of Euro

Introduction of Gold Standard Mechanism

Introduction of Multilateral Trading System


Codes














38. mark the option having the right chronological order

Chairman of the Finance Commission

(i)P.V. Rajmannar

(ii)K.C.Neogi

(iii)C.Rangarajan

(iv)K. Bramhananda Reddy


Codes














39. mark the option having the right chronological order

Principles of Political Economy and Taxation

An enquiry into the nature and causes of Wealth of Nations

An enquiry into the nature and causes of Poverty of Nations

Reflection on Human Development


Codes













40. mark the option having the right chronological order

Prebisch-Singer Hypothesis

Haberler's Opportunity Cost Theory

Leontief's Paradox

Heckscher-Ohlin Theorem


Codes














41. List I List II

Patents Brands

Copyright Inventions

Trademarks Scotch Whiskey

Geographic Indication Literary works

Codes















42. List I List II

K.B. Chandrasekhar UTI Functioning

Deepak Parekh Industrial Act

Hazari Venture Capital

Narasimham Banking Sector

Codes















43. List I List II

Absolute Income Hypothesis N. Gregory Mankiw

Rational Expectations Hypothesis J.M. Keynes

Relative Income Hypothesis Robert Lucas

The New Keynesian Model James Duesenberry

Codes














44. List I List II

To measure Tools

Population mean with known variance distribution

Population mean with unknown variance distribution

Comparison of variance c2- distribution

Goodness of a fit distribution

Codes














45. List I List II

Product differentiation Sraffa

Duopoly Analysis Modigliani

Production of commodities by means of commodities Courno

Life Cycle Hypothesis Chamberlin


Codes















46. List I List II

'Planning for an expanding economy' V.K.R.V. Rao

Industrial Evolution of India Dadabhai Naoroji

Drain Theory D.R. Gadgil

India's National Income Vakil and Bramhananda

Codes















47. Read the passage given below and answer questions based on your understanding of the passage

There are many successful strategies on the road to self-sustained economic growth. Britain, for example, became world economic leader in the 1800s by pioneering the Industrial Revolution, inventing steam engines and rail roads and emphasising free trade. Japan, by contrast, came to the economic growth race later. It made its mark by first imitating foreign technologies and protecting domestic industries from imports and then developing tremendous expertise in manufacturing and electronics. Even though their individual paths may differ, all rapidly growing countries share certain common traits. The same growth fundamentals that helped shape Britain and Japan are at work today in developing countries like China and India. Indeed, economists who have studied growth have found that the engine of economic progress must ride on same four wheels, no matter how rich or poor the country. These four wheels are Human Resources, Natural Resources, capital formation and technology.

Industrial Revolution includes

(A)inventing steam engine


(B)laying the rail roads


(C)promoting free trade


(D)all of the above



48. Industrial Revolution of 1800s was launched mainly in

(A)Japan and China


(B)United Kingdom


(C)Britain and USA


(D)China and India



49. Economic growth of a country depends on

(A)Four Wheels of Growth


(B)Technology and Labour


(C)Natural Resources and Human Resources


(D)Capital and Labour



50. What helped Britain and Japan to achieve economic growth earlier found to be relevant today in the case of

(A)U.S.A. and Russia


(B)China and Pakistan


(C)China and India


(D)China and Brazil