1. Consider a Cobb Douglas production function q AKa Lb which is homogeneous function of degree 4. Of what degree of homogeneity are its marginal products functions (mpl and mpk) i.e. dq/ dL dq /dK

4

3

2

1


2. Green Box subsidies under WTO are allowed because they are considered to be

(A)Minimally trade distorting.


(B)Higher among developed and relatively lower for developing countries.


(C)They are confined to agriculture sector.


(D)They are related to GATS provision.



3. Which of the following gives measures of price elasticity of demand
. QP . PP
xx xx

P Q. QQ
xx xx
. QQ. P
xx x

PP . Q
xx x

4. The rate at which the Central Bank discounts the bills of commercial banks is called

(A)Discount Rate


(B)Bill Rate


(C)Interest Rate


(D)Lending Rate



5. If the economy is in the liquidity trap, then

(A)Fiscal policy will be more effective


(B)Monetary policy will be more effective


(C)Crowding out effect will make fiscal and monetary policy effective


(D)None of the above



6. If the price consumption curve of a commodity is bending backwards, then the commodity must be

inferior commodity


perfectly elastic commodity


(C)Normal commodity


(D)Giffen goods



7. IS curve represents

(A)Goods Market Equilibrium


(B)Money Market Equilibrium


(C)Bond Market Equilibrium


(D)Labour Market Equilibrium



8. "Freedom as Development" book is written by

(A)Keynes


(B)Amartya Kumar Sen


(C)Mrs. Joan Robinson


(D)Gunnar Myrdal



9. The Chairman of 13th Finance Commission is

(A)Dr. Vijay Kelkar


(B)Dr. M. Govind Rao


(C)Dr. C. Rangarajan


(D)Dr. Atul Sarma

10. Human Development Index was formulated by

(A)World Bank


(B)International Monetary Fund


(C)UNTAD


(D)UNDP



11. In the Hekscher-Ohlin theory, the most important cause of the difference in relative commodity prices and trade between nations is a difference in

(A)Factor endowments


(B)Technology


(C)Tastes


(D)None of these



12. 'Inclusive Growth' objective is given in the plan document of

(A)Ninth Five Year Plan


(B)Tenth Five Year Plan


(C)Eleventh Five Year Plan


(D)Twelfth Five Year Plan



13. If X is distributed normally, then X2 follows

distribution


(B)Chi-square distribution


distribution


(D)The Poisson distribution



14. Critical minimum effort theory is given by

(A)Leibenstein


(B)Rosenstein Rodan


(C)Arther Lewis


(D)Marx



15. Economic development process is concerned with

rise in per capita income


rise in percentage GDP


(C)Changes in structure of economy


(D)None of these



16. In a regression r2 is the ratio between

(A)explained and total variation


(B)explained and unexplained variation


(C)unexplained and total variation


(D)none of the above



17. The mean absolute deviation is minimised when calculated from

(A)mean


(B)mode


(C)harmonic mean


(D)median



18. Main objective of public distribution system is

(A)Exports of food


(B)Import of food


(C)Food security


(D)Quality of food



19. Securities and Exchange Board of India (SEBI) has to monitor

(A)Companies coming for New Public issues


(B)Regulation of stock exchanges in India


(C)Regulation of insider trading and outsider trading


(D)All the above functions



20. Which committee recommended tax on agriculture holding in India

(A)Tandon Committee


(B)Raj Committee


(C)Kelkar Committee


(D)Dantwala Committee



Note Consider the following statements and select the correct answer from the codes given below for Questions 21 to 30. (Assertion and Reason type Questions)
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.



21.
Assertion Consumption is high when saving is high.

Reason Income is high when investment is high.


22.
Assertion In Keynesian theory, investment level depends upon rate of interest.

Reason Rate of interest is cost of production to the company.


23.
Assertion Disguised unemployment is present in India.

Reason Agricultural productivity at margin is close to zero.


24.
Assertion Removal of poverty remains a central concern of planning in India


Reason Development is not just about factories, dams and other infrastructure, it is basically about human beings.

25.
Assertion Devaluation will lead to improvement in balance of trade.

Reason Devaluation will lead to increase in price of exports.


26.
Assertion Rate of interest decreases during depression.

Reason People are pessimistic during depression.


27.
Assertion Reserve Bank of India raises money supply through purchase of securities in the money market.

Reason Increase in money supply may result in expansion of investment and employment.


28.
Assertion Skewness measures regression.

Reason Kurtosis measures flatness at the top of frequency curve.


29.
Assertion Sex ratio is below 1000 in India.

Reason Sex ratio is above 1000 in Kerala.


30.
Assertion Demand curve is vertical when elasticity of demand is zero.


Reason Marginal utility of a product is increasing.


Note Arrange the following in order in which they appeared. Use the code given below
31. An Enquiry in to the Nature and causes of Wealth of Nations.
An Enquiry into the Nature and causes of Poverty of Nations.
The General Theory of Employment, Interest and Money
The Theory of Population.
Codes






32. International Monetary Fund
International Finance Corporation
World Trade Organization
General Agreement on Tariffs and Trade
Codes










(iii)



33. Imperialism
Mercantalism
Capitalism
Feudalism
Codes




(iii)









34. Friedman's Quantity Theory of Money
Fisher's Equation of Exchange
Cambridge Equation of Exchange
Don Patinkins Theory of Money
Codes

(iii)





(iii)






35. Governors of Reserve Bank of India

Dr. C. Rangarajan


Dr. I.G. Patel


Dr. D. Subba Rao
Dr. Manmohan Singh
Codes














36. In terms of the size of the economy

China


India


USA
Japan
Codes










(iii)



37. Secular Deterioration Hypothesis
Theory of comparative costs
Factor Endowment Theory
Factor-Price Equalization theorem
Codes




(iii)





(iii)


38. Raj Committee on Taxation of Agricultural Wealth and Income.
Chellaiah's Tax Reform Committee
Taxation Enquiry Commission
The Indirect Tax Enquiry Committee
Codes














39. Human Poverty Index
Human Development Index
Physical Quality of Life Index
Head Count Index (Calorie measure)
Codes







(iii)






40. Global Financial Crisis
Globalisation
Great Depression
Gold Standard Mechanism
Codes










(iii)



Note Question Nos. 41 46 are of matching type. The candidates are required to match List I against List II and select the correct answer code.
41. List I List II

(a)Consumer's Supply Surplus decision


(b)Utility theory Art of Advertising


(c)Cost Analysis Progressive taxation


(d)Product Welfare differentiation economics


Codes







42. List I List II

C DD OD+ SD


C DD OD


DD OD+ TD

TD of post office


C DD OD+ TD


1
2
3
4
Codes















43. List I List II

(a)Keynesian W.S. theory of Javons distribution


(b)Time J.M. preference Keynes theory of interest


(c)Sun-Spot N. Kaldor theory of trade cycle


(d)Modern Bohm theory of Bawerk income determination


Codes















44. List I List II

(a)Fiscal Revenue and

Deficit interest receipts minus revenue expenditure


(b)Revenue Revenue

Deficit receipts and recovery of loans and other receipts minus total expenditure.


(c)Budgetary Receipts minus

Deficit disbursements in capital account


(d)Capital Total receipts


Deficit minus total disbursements
Codes


(iii)












45. List I List II

(a)Adam Smith Availability Theory


(b)David Endowment Ricardo Theory


(c)Ohlin Absolute Advantage Theory


(d)I.B. Kravis Comparative Advantage Theory


Codes


(iii)





(iii)






46. List I List II

(a)Rejecting Ho Simple

when it is true random sampling


(b)Population is Type I

homogeneous error negatively


(c)Mean is equal Skewed to degree of distribution freedom


(d)Mean Mode X2 distribution


Codes


(iii)











Note Read the passage given below and answer questions from 47 to 50 based on your understanding of the passage
The birth of Bretton Woods institutions in the 1940s was a direct response to the dismal experience of the 1920s and 1930s. Many of those surveying the wreckage of the global economic system in the dreary days of the Second World War among them, John Maynard Keynes, the dominant economic thinker of that time came to a simple conclusion. The world's economic system needed honest referees. It could not be left to the mercy of unilateral action by governments or to the unregulated workings of international markets. It needed unilateral institutions of economic governance to lay down some mutually agreed rules for all nations on the conduct of their affairs. Thus emerged the International Monetary Fund the International Bank for Reconstruction and Development or the World Bank and, later, the General Agreement on Tariffs and Trade (GATT).
47. Dismal performance of world economy during 1920's and 1930's gave rise to

(A)World Trade Organisation


(B)United Nations


(C)IMF


(D)European Economic Union



48. Bretton Woods twins are

(A)USA and UK


(B)IMF and World Bank


(C)ITO and WTO


(D)GATT and UNESCO



49. The honest referee during the Bretten Woods negotiations was

(A)Adam Smith


(B)Amartya Kumar Sen


(C)J.R. Hicks


(D)J.M. Keynes



50. The outcome of Bretten Woods negotiations was

(A)Replacement of Unilateral Institutions by Multilateral institutions.


(B)Replacement of Multilateral Institutions by Unilateral Institutions.


(C)Replacement of Flexible exchange rates by Fixed Exchange rates.


(D)Replacement of International Trade Organisation by IBRD.