Exam Details
| Subject | ||
| Paper | ||
| Exam / Course | mains | |
| Department | ||
| Organization | Haryana Public Service Commission | |
| Position | economics | |
| Exam Date | 2014 | |
| City, State | haryana, |
Question Paper
Question Booklet Series
ECONOMICS CODE:-07
Time Allowed: Two Hours Marks: 100
IName: Roll No.
Read instructions given below before opening this booklet:
DO NOT OPEN THIS BOOKLET UNTIL YOU ARE TOLD TO DO SO
1.
Use only BLUE Ball Point Pen.
2.
In case of any defect -Misprint, Missing Question/s Get the booklet changed. No complaint shall be entertained after the examination.
3.
Before you mark the answer, read the instruction on the OMR Sheet (Answer Sheet) also before attempting the questions and fill the particulars in the ANSWER SHEET carefully and correctly.
4.
There are FOUR options to each question. Darken only one to which you think is the right answer. There will be no Negative Marking. .-J
«
5. Answer Sheets will be collected after the completion of examination and no w
candidate shall be allowed to leave the examination hall earlier.
6.
The candidates are to ensure that the Answer Sheet is handed over to the room invigilator only.
7.
Rough work, if any, can be done on space provided at the end of the Question Booklet itself. No extra sheet will be provided in any circumstances.
8.
Write the BOOKLET SERIES in the space provided in the answer sheet, by darkening the corresponding circles.
9.
Regarding incorrect questions or answers etc. Candidates kindly see NOTE at the last page of the Booklet.
KL-14/Eco Series-A
KL14IEco
1. Demand for a commodity refers to:
Need for the commodity
Desire for the commodity
Amount ofthe commodity demanded at a particular price and at a particular time
Quantity demanded ofthat commodity
2. Which among the following statement is INCORRECT?
On a linear demand curve, all the five forms of elasticity can be depicted.
If two curves are linear and intersecting each other then coefficient of elasticity would be same on different demand curves at the point of intersection.
Iftwo demand curves are linear, and parallel to each other then at a particular price the coefficient ofelasticity would be different on different demand curves.
The price elasticity ofdemand is expressed in terms ofrelative not absolute, changes in price and quantity demanded.
3. If the demand for a good is inelastic, an increase in its price will cause the total expenditureofthe consumers ofthe good to:
Increase Decrease
Remain the same Become zero
4. The horizontal demand curve parallel to x-axis implies that the elasticity ofdemand is:
Zero
Infinite
Equal to one
Greater than zero but less than infinity
5. An individual demand curve slopes downward to the right because ofthe:
Working ofthelaw ofdiminishingmarginalutility
Substitution effect of decrease in price
Income effect offall in price
All of the above
6. Incomeelasticity ofdemandisdefinedastheresponsivenessof:
Quantity demanded to a change in income
Quantity demanded to a change in price
Price to a change in income
Income to a change in quantity demanded
7. The supply of a good refers to:
Stock available for sale
Total stock in the warehouse
Actual production of the good
Quantity ofthe good"offered for sale at a particularprice per unit oftime
Series-A
8. In the short run, when the output ofa finn increases, its average fixed cost:
Remains constant Decreases
Increases First decreases and then rises
9. The cost of one thing in tenns of the alternative given up is called:
Real cost Production cost
Physical cost Opportunity cost
10. Assume that consumer's income and the number of sellers in the market for good X both falls. Based on this infonnation, we can conclude with certainty that the equilibrium:
Price will decrease Price will increase
Quantity will increase Quantity will decrease
11. The economist's objections to monopoly rest on which of the following grounds?
There is a transfer ofincome from consumers to the monopolist.
There is welfare loss as resources tend to be misallocated under monopoly.
Only A is correct.
Both A and B are correct.
12. Inwhich ofthefollowingmarketstructureisthedegree ofcontrolovertheprice ofits product by a finn very large?
Imperfect competition Perfect competition
Monopoly In A and B both
13. The offer curves introduced by Alfred Marshall, helps us to understand how the
established in international trade. m Tenns oftrade Equilibrium price ratio Exchange rate Satisfaction level
r
14. Demand for factors of production is:
Derived demand Joint demand
Composite demand None ofthe above
15. The producer's demand for a factor ofproduction is governed by the that factor.
Price Marginal productivity
Availability Profitability
16. Under conditions ofperfect competition in the product market:
MRP= VMP MRP VMP
VMP MRP None of the above
KLI41Eco Series-A 17. Which among the following statements is INCORRECT?
Coefficient ofcorrelation can be computed directly from the data without measuring deviation.
Measures ofDispersion are also called averages ofthe second order.
Standard deviation can be negative.
Mean deviation can never be negative.
18. One ofthe methods to find out Mode is:
Mode 3 Median 2 Mean Mode 3 Median Mean
Mode 2 Median Mean Mode 3 Median Mean
19. Which among the following statements is INCORRECT?
Index number is a relative measurement.
In fact all index numbers are weighted.
Theoretically the best average in construction ofindex numbers is Geometric mean.
It is not possible to shift the base ifit is the case offixed base index
20. Mean Deviation can be calculated from:
Mean Median
Mode Any ofthe above
21. Scatter diagram is used to study economic statistics.
Variability in the series Nature ofCorrelation in the two series
Regression Secular trend
22. Coefficient ofCorrelation is significant, if:
r 5 times Probable Error r 6 times Probable Error
r 6 times Probable Error r 6 times Probable Error
23. Which statistical measure helps in measuring the purchasing power ofmoney?
Arithmetic average Index numbers (CYH'annonic mean Time series
. ...
24. Fisher's ideal index number is:
Arithmetic mean ofLaspeyre's and Paasche's index
Harmonic mean ofLaspeyre's and Paasche's index
Geometric mean ofLaspeyre's and Paasche's index
None of the above
25. Which among the following is NOT a correct statement?
Welfare economics is based on value judgements.
Welfare economics is also called 'economics with a heart'.
Welfare economics focuses on questions about equity as well as efficiency.
The founder of Welfare economics was Alfred Marshall.
KLl4/Eco Series-A
26. Who is the 'lender ofthe last resort' in the banking structure ofIndia?
State Bank ofIndia Reserve Bank ofIndia
EXIM Bank ofIndia Union Bank ofIndia
27. the official minimum rate at which the Central Bank ofa country is prepared to rediscount approved bills held by the commercial banks.
Repo rate Bank rate
Prime lending rate Reverse·repo rate
28. In order to control credit, Reserve Bank ofIndia should:
Increase CRR and decrease Bank rate
Decrease CRR and reduce Bank rate
Increase CRR and increase Bank rate
Reduce CRR and increase Bank rate
29. Which among the following isa function ofthe Reserve Bank oflndia?
Bank issues the let!ers of credit to their customers certifying their creditability
Collecting and compilation ofstatistical information relating to banking other financial sectors
Banks underwrite the securities issued by public or private organizations
Accepting deposits from the public
30. Credit creation power ofthe commercial banks gets limited by which ofthe following?
Banking habits ofthe people Cash reserve ratio
Credit policy of the central bank All ofthe above
31. Number oftimes a unit ofmoney changes hands in the course ofa year is called
Supply of money Purchasing power of money
Velocity of money Value of money
32. the difference between total receipts and total expenditure.
Capital deficit Budget deficit
Fiscal deficit Revenue deficit
33. What is meant by Autarky in international trade?
Monopoly in international trade
Imposition ofrestrictions in international trade
Removal ofall restrictions from international trade
The idea ofself sufficiency and no international trade by a country
34. Find the tax which is direct tax among the following:
House tax Service tax
Entertainment tax Value Added tax
KL14IEco Series-A 35. Which among the following is a cause ofinflation?
Deficit financing
Rise in external loans
Unfavorable balance ofpayment
A hike in the CRR by the central bank ofthe country
36. Cost push inflation occurs because of:
Wage push
Profit push
Both A and B
Ineffective policies ofthe government
37. Which among the following is NOT correct?
During inflation lenders suffer and borrowers benefit out.
Rising inflation indicates rising demand and indicates comparatively lower supply and higher purchasing capacity among the consumers.
With rising inflation the currency ofthe economy depreciates provided it follows the flexible currency regime.
Inflation decreases the nominal (face) value ofthe wages while the real value increases.
38. The capital that is consumed by an economy or a firm in the production process is known as
Capital loss Production cost
Dead-weight loss Depreciation
39. Who propounded the Opportunity Cost Theory of international trade?
Ricardo Marshall
Heckscher& Ohlin Haberler
40. Which among the following is NOT correct?
Floating exchange rate system works on the market mechanism
Floating exchange rate breeds uncertainties and speculation
Economic and political factors and value judgments influence the choice ofthe exchange rate system
The system offloating exchange rate requires comprehensive government intervention
41. Which among below is NOT a correct statement?
Bretton Woods conference gave birth to two international organizations.
Theory ofAbsolute Advantage in international trade is given by Adam Smith.
Pure and perfect competition are the same market structures.
Mint par theory of exchange rate determination is applicable in countries under,gold standard.
KLl4/Eco Series-A
42. Terms oftrade that relate to the Real Ratio ofinternational exchange between commodities is called:
Real cost terms oftrade Commodity terms oftrade
Income terms oftrade Utility terms oftrade
43. Who among the following enunciated the concept of single factoral oftrade?
Jacob Viner G.S.Dorrens
Taussig J.S.Mill
44. 'infant industry argument' in international trade is given in support of:
Granting protection
Free trade
Encouragement to export oriented Small and tiny industries
None ofthe above
45. Which ofthe following is also known as International Bank for Reconstruction and Development?
Asian Development Bank World Bank
International Monetary Fund Reserve Bank ofIndia
46. Which among the following is NOT a function ofInternational Monetary Fund?
It serves a medium term and long term credit institution.
It provides a mechanism for improving short term ofpayments position.
It provides machinery for international consultations.
It provides a reservoir ofthe currencies of the member countries and enables
members to borrow one another's currency.
47. The new World Trade Organization which replaced the GAIT came into effect from
1st January 1991 1st January 1995
1st April 1994 1st May 1995
48. A change in fiscal policy affects the balance of payments through:
The current account only
The capital account only
Both, the current account and capital account
Neither current account nor capital account
49. Fiscal policy means:
Policy relating to money and banking in a country
Policy relating to non-banking financial institutions
Policy relating to government spending, taxation and borrowing
Policy relating to financial matters ofinternational trade
KL14IEco Series-A
6
J
KL14/Eco
SO. Whichone ofthefollowing isNOTtheobjective offiscal policy ofgovernmentof India?
Full employment Price stability
Regulation of inter-state trade Economic growth
51. Monetary policy is implemented by India.
The Ministry of Finance The Parliament
Planning Commission Reserve Bank ofIndia
52. Under the Industrial policy of 1991
The mandatory convertible clause is applicable to all term loans.
The mandatory convertible clause is applicable to term loans ofmore than 10 years.
The mandatory convertible clause is applicable to term loans ofless than 10 years.
The mandatory convertible clause is no longer applicable.
53. Balance ofPayment on capital account includes:
Balances of private direct investments
Private portfolio investments
Government loans to foreign governments
All of the above
54. Which country was the first to adopt a gold standard in the modern sense?
Italy France
Great Britain Portugal
55. To eradicate the problem of poverty, Twenty Point Economic Programme was launched for the first time in India on:
7th July, 1971 7th July, 1975
26th January, 1951 15 August,1983
56. may result when some workers are temporarily out ofwork while changing job.
Seasonal Disguised
Frictional Technical
57. Which among below is the economic effect ofpopulation pressure in India?
Higher burden of unproductive consumers on total population
Disintegration offamily
Overcrowding of cities
Ecological degradation
Series-A
58. Which among the following may be considered as a significant cause of low agr productivity in India?
Defective tenancy refonus
Lack ofenthusiasm among farmers
Conservative social systems
Absence of agricultural inputs to raise productivity
59. Whathavebeenthereasons ofdeficitinIndia'sBalance ofTradeinthepast?
Very large rise in imports
Modest growth of exports
High cost and low quality production
All ofthe above
60. A high average level ofreal income per head is always associated with a high proJ ofthe working population engaged in
Primary Secondary
Tertiary None ofthe above
61.
"Natural resources detenuine the course ofdevelopment and constitute the challenl which may not be accepted by the human mind."Who has said it? (A).W. Arthur Lewis J.I.Fisher Jan Tinbergen . W.W.Rostow
62.
The credit of developing the concept ofmpdem economic growth goes to:
Arthur Lewis Michael P. Todaro
Gunnar Myrdal Simon Kuznets
63.
The most simple and popular method of measuring economic development is to calc the trend ofgross national product at
Current prices Constant prices
Both ofthe above None ofthe above
64.
"Underdeveloped countries are the slums ofthe World Economy." This statement is I
RagnarNurkse A.N.Caimcross
Colin Clark JagdishBhagwati
65.
Which among the following is a characteristic ofunderdevelopment?
Vicious circle of poverty
Rising mass consumption
Growth of industries
High rate of urbanization
KLI4/Eco Series-A 66. According to W.W.Rostow, the stages ofeconomic growth are:
Two Three
Four Five
67. Most ofthe underdeveloped economies suffer from do not let the rate of growth go up from a lower level.
High population pressures
High infant mortality
Hugh monetary mismanagement
High level oftechnological unemployment
68. By rate ofan economy can be speeded up.
Investment in share market
Investment abroad
investment in human capital formation
investment in primary sector
69. When the population growth rate ofan economy becomes greater than the achievable economic growth rate, it is known as:
Population Explosion Population Trap
Population Crisis None ofthe above
70. 'Planning from below' is known as:
Centralized planning Decentnilized planning
Functional planning Structural planning
71. the highest priority during the first plan period in India.
Selfreliance
Growth with social justice
Development ofAgriculture including irrigation
Removal of unemployment
72. An expression coined by economists to describe an economy that is growing at such a slow pace that more jobs are being lost than are being added:
Stagflation Recession
Growth Recession Ritchet Inflation
73. Which five year plan in India gave emphasis on Co-operative Federalism?
Ninth five year plan Tenth five year plan
Eleventh five year plan Twelfth five year plan
74. Which Five year plan in India had 'poverty alleviation' as one of its objectives?
First five year plan Third five year plan
Fifth five year plan Seventh five year plan
KL14/Eco Series-A 75. Who has contributed the modem theory of interest rate determination?
Paul A.Samuelson Gunnar Myrdal
Knut Wicksell J.R.Hicks
76. Whose name is associated with the "Uncertainty-bearing theory ofprofit"?
J.Schumpeter F.H.Knight
J.B.Clark F.W.Walker
76. Who has sought to measure Consumer's Surplus with the help of indifference curve technique?
Alfred Marshall Edgeworth
J..R.Hicks Pareto
78. Who among the following has given the modem theory of distribution?
Nicholas Kaldor Wicksteed
David Ricardo Mrs. Joan Robinson
79. In a free enterprise economy, which among the following are the determinants of Investment?
Rate of interest Marginal efficiency ofcapital
Both A and B None ofthe above
determine the position and slope ofconsumption curve.
Objective Subjective
Both A and B None ofthe above
81.Keynes believed that the equality between savings and investment is brought about by:
Rate ofinterest Changes in income
Availability ofcapital Marginal efficiency ofinvestment
82.Which among the following is NOT an assumption ofPareto optimality?
Every consumer wishes to maximize his level ofsatisfaction.
All the factors ofproduction are used in the production of every commodity.
Conditions ofperfect competition exist making all the factors ofproduction perfectly mobile
The concept ofutility is cardinal and cardinalutility function ofevery consumer is given.
A stock A flow A store A payment
83."Money is a matter of functions four, a medium, a measure,a standard and .What is the fourth function ofmoney indicated in this popular phrase?
KL14/Eco Series-A
84.Whichofthe following measure ofthe high-power money supply has been used by RBI in India?
Currency held by the public Other deposits with the RBI
Cash reserves ofthe commercial banks+ Other deposits with the RBI
Currency held by the public+ Cash reserves ofthe commercial banks Other deposits with the RBI
Currency held by the public Cash reserves ofthe commercial banks Time deposits ofthe commercial banks Other deposits with the RBI
85.Broad Money constitutes currency with public plus demand deposits with banks
plus time deposits with banks plus
Other deposits with the RBI Post office deposits
Government deposits with RBI Bankers deposits with RBI
86.For measuring the changes in the price level ofthe country, which among the following index number is used?
Cost of living index number Production index number
Security Price index number Whole sale price index number
87. The Heckscher-Ohlin approach to international trade provides important insights, in theory, about the:
Gains from trade
Effect oftrade on production and consumption
(C)Effectoftrade ontheincomes ofproductionfactors
All of the above
88.Under free exchange markets the rate offoreign exchange is determined by:
Balance of Payments theory Purchasing power parity theory
Mint par theory None of the above
89.When National income is calculated with reference to a base year, it is called:
Nominal national income Real national income
Net national income Gross national income
90.Isoquants are right angled only when:
Factors are perfect substitutes Factors are perfect complements
Factors are neutral Factors are scarce
91. Which ofthe following is known as long run average cost curve?
Learning curve Equal product curve
Envelope curve Phillips curve
KL14/Eco Series-A 92.Identify which ofthe following is NOT a correct match?
World Bank provides loans for reconstruction and development ofeconomies
IMF helps in correcting balance of payments
RBI provides technical consultancy to Asian countries
WTO Generally forbids the use ofquantitative restrictions on trade
93.In a perfectly competitive market a firm in the long run will be in equilibrium when:
(B)AR=MR
MR=MC P=AR=MR=AC =MC
94.Which market structure symbolizes the existence of 'few sellers'?
Oligopoly Monopoly
Monopolistic competition Perfect competition
95.Which ofthefollowing isacharacteristic ofcapitalasafactor ofproduction?
It never depreciates It is fixed in supply
It is an active factor ofproduction It is a passive factor ofproduction
96.By Parallel economy is meant an economy:
Which runs side by side ofthe existing economy
Which has the same characteristics as the main economy
Which has variety of parallel businesses
Which has plentiful of black money
97.00 which law ofconsumption the concept ofconsumer's surplus is based?
Engel's law Law of demand
First law of Gossen Second law of Gossen
98. Which among the following has NOT been a measure adopted by the government to unearth black money in India?
Voluntary Disclosure Schemes Demonetization ofcurrency
Special Bearer Bond Scheme Creating Civic consciousness
99. Trace the mismatch between the policy and its year ofannouncement in the pairs given below:
National Water Policy 2002
New National Forest Policy 1988
New National Mineral Policy 2008
National Population Policy 2012
100. Which among the following are the factors that determine the national income ofa country?
Quantity and Quality of factors ofproduction
The state oftechnical knowledge
Economic and Political stability
All ofthe above
KL14/Eco Series-A
ECONOMICS CODE:-07
Time Allowed: Two Hours Marks: 100
IName: Roll No.
Read instructions given below before opening this booklet:
DO NOT OPEN THIS BOOKLET UNTIL YOU ARE TOLD TO DO SO
1.
Use only BLUE Ball Point Pen.
2.
In case of any defect -Misprint, Missing Question/s Get the booklet changed. No complaint shall be entertained after the examination.
3.
Before you mark the answer, read the instruction on the OMR Sheet (Answer Sheet) also before attempting the questions and fill the particulars in the ANSWER SHEET carefully and correctly.
4.
There are FOUR options to each question. Darken only one to which you think is the right answer. There will be no Negative Marking. .-J
«
5. Answer Sheets will be collected after the completion of examination and no w
candidate shall be allowed to leave the examination hall earlier.
6.
The candidates are to ensure that the Answer Sheet is handed over to the room invigilator only.
7.
Rough work, if any, can be done on space provided at the end of the Question Booklet itself. No extra sheet will be provided in any circumstances.
8.
Write the BOOKLET SERIES in the space provided in the answer sheet, by darkening the corresponding circles.
9.
Regarding incorrect questions or answers etc. Candidates kindly see NOTE at the last page of the Booklet.
KL-14/Eco Series-A
KL14IEco
1. Demand for a commodity refers to:
Need for the commodity
Desire for the commodity
Amount ofthe commodity demanded at a particular price and at a particular time
Quantity demanded ofthat commodity
2. Which among the following statement is INCORRECT?
On a linear demand curve, all the five forms of elasticity can be depicted.
If two curves are linear and intersecting each other then coefficient of elasticity would be same on different demand curves at the point of intersection.
Iftwo demand curves are linear, and parallel to each other then at a particular price the coefficient ofelasticity would be different on different demand curves.
The price elasticity ofdemand is expressed in terms ofrelative not absolute, changes in price and quantity demanded.
3. If the demand for a good is inelastic, an increase in its price will cause the total expenditureofthe consumers ofthe good to:
Increase Decrease
Remain the same Become zero
4. The horizontal demand curve parallel to x-axis implies that the elasticity ofdemand is:
Zero
Infinite
Equal to one
Greater than zero but less than infinity
5. An individual demand curve slopes downward to the right because ofthe:
Working ofthelaw ofdiminishingmarginalutility
Substitution effect of decrease in price
Income effect offall in price
All of the above
6. Incomeelasticity ofdemandisdefinedastheresponsivenessof:
Quantity demanded to a change in income
Quantity demanded to a change in price
Price to a change in income
Income to a change in quantity demanded
7. The supply of a good refers to:
Stock available for sale
Total stock in the warehouse
Actual production of the good
Quantity ofthe good"offered for sale at a particularprice per unit oftime
Series-A
8. In the short run, when the output ofa finn increases, its average fixed cost:
Remains constant Decreases
Increases First decreases and then rises
9. The cost of one thing in tenns of the alternative given up is called:
Real cost Production cost
Physical cost Opportunity cost
10. Assume that consumer's income and the number of sellers in the market for good X both falls. Based on this infonnation, we can conclude with certainty that the equilibrium:
Price will decrease Price will increase
Quantity will increase Quantity will decrease
11. The economist's objections to monopoly rest on which of the following grounds?
There is a transfer ofincome from consumers to the monopolist.
There is welfare loss as resources tend to be misallocated under monopoly.
Only A is correct.
Both A and B are correct.
12. Inwhich ofthefollowingmarketstructureisthedegree ofcontrolovertheprice ofits product by a finn very large?
Imperfect competition Perfect competition
Monopoly In A and B both
13. The offer curves introduced by Alfred Marshall, helps us to understand how the
established in international trade. m Tenns oftrade Equilibrium price ratio Exchange rate Satisfaction level
r
14. Demand for factors of production is:
Derived demand Joint demand
Composite demand None ofthe above
15. The producer's demand for a factor ofproduction is governed by the that factor.
Price Marginal productivity
Availability Profitability
16. Under conditions ofperfect competition in the product market:
MRP= VMP MRP VMP
VMP MRP None of the above
KLI41Eco Series-A 17. Which among the following statements is INCORRECT?
Coefficient ofcorrelation can be computed directly from the data without measuring deviation.
Measures ofDispersion are also called averages ofthe second order.
Standard deviation can be negative.
Mean deviation can never be negative.
18. One ofthe methods to find out Mode is:
Mode 3 Median 2 Mean Mode 3 Median Mean
Mode 2 Median Mean Mode 3 Median Mean
19. Which among the following statements is INCORRECT?
Index number is a relative measurement.
In fact all index numbers are weighted.
Theoretically the best average in construction ofindex numbers is Geometric mean.
It is not possible to shift the base ifit is the case offixed base index
20. Mean Deviation can be calculated from:
Mean Median
Mode Any ofthe above
21. Scatter diagram is used to study economic statistics.
Variability in the series Nature ofCorrelation in the two series
Regression Secular trend
22. Coefficient ofCorrelation is significant, if:
r 5 times Probable Error r 6 times Probable Error
r 6 times Probable Error r 6 times Probable Error
23. Which statistical measure helps in measuring the purchasing power ofmoney?
Arithmetic average Index numbers (CYH'annonic mean Time series
. ...
24. Fisher's ideal index number is:
Arithmetic mean ofLaspeyre's and Paasche's index
Harmonic mean ofLaspeyre's and Paasche's index
Geometric mean ofLaspeyre's and Paasche's index
None of the above
25. Which among the following is NOT a correct statement?
Welfare economics is based on value judgements.
Welfare economics is also called 'economics with a heart'.
Welfare economics focuses on questions about equity as well as efficiency.
The founder of Welfare economics was Alfred Marshall.
KLl4/Eco Series-A
26. Who is the 'lender ofthe last resort' in the banking structure ofIndia?
State Bank ofIndia Reserve Bank ofIndia
EXIM Bank ofIndia Union Bank ofIndia
27. the official minimum rate at which the Central Bank ofa country is prepared to rediscount approved bills held by the commercial banks.
Repo rate Bank rate
Prime lending rate Reverse·repo rate
28. In order to control credit, Reserve Bank ofIndia should:
Increase CRR and decrease Bank rate
Decrease CRR and reduce Bank rate
Increase CRR and increase Bank rate
Reduce CRR and increase Bank rate
29. Which among the following isa function ofthe Reserve Bank oflndia?
Bank issues the let!ers of credit to their customers certifying their creditability
Collecting and compilation ofstatistical information relating to banking other financial sectors
Banks underwrite the securities issued by public or private organizations
Accepting deposits from the public
30. Credit creation power ofthe commercial banks gets limited by which ofthe following?
Banking habits ofthe people Cash reserve ratio
Credit policy of the central bank All ofthe above
31. Number oftimes a unit ofmoney changes hands in the course ofa year is called
Supply of money Purchasing power of money
Velocity of money Value of money
32. the difference between total receipts and total expenditure.
Capital deficit Budget deficit
Fiscal deficit Revenue deficit
33. What is meant by Autarky in international trade?
Monopoly in international trade
Imposition ofrestrictions in international trade
Removal ofall restrictions from international trade
The idea ofself sufficiency and no international trade by a country
34. Find the tax which is direct tax among the following:
House tax Service tax
Entertainment tax Value Added tax
KL14IEco Series-A 35. Which among the following is a cause ofinflation?
Deficit financing
Rise in external loans
Unfavorable balance ofpayment
A hike in the CRR by the central bank ofthe country
36. Cost push inflation occurs because of:
Wage push
Profit push
Both A and B
Ineffective policies ofthe government
37. Which among the following is NOT correct?
During inflation lenders suffer and borrowers benefit out.
Rising inflation indicates rising demand and indicates comparatively lower supply and higher purchasing capacity among the consumers.
With rising inflation the currency ofthe economy depreciates provided it follows the flexible currency regime.
Inflation decreases the nominal (face) value ofthe wages while the real value increases.
38. The capital that is consumed by an economy or a firm in the production process is known as
Capital loss Production cost
Dead-weight loss Depreciation
39. Who propounded the Opportunity Cost Theory of international trade?
Ricardo Marshall
Heckscher& Ohlin Haberler
40. Which among the following is NOT correct?
Floating exchange rate system works on the market mechanism
Floating exchange rate breeds uncertainties and speculation
Economic and political factors and value judgments influence the choice ofthe exchange rate system
The system offloating exchange rate requires comprehensive government intervention
41. Which among below is NOT a correct statement?
Bretton Woods conference gave birth to two international organizations.
Theory ofAbsolute Advantage in international trade is given by Adam Smith.
Pure and perfect competition are the same market structures.
Mint par theory of exchange rate determination is applicable in countries under,gold standard.
KLl4/Eco Series-A
42. Terms oftrade that relate to the Real Ratio ofinternational exchange between commodities is called:
Real cost terms oftrade Commodity terms oftrade
Income terms oftrade Utility terms oftrade
43. Who among the following enunciated the concept of single factoral oftrade?
Jacob Viner G.S.Dorrens
Taussig J.S.Mill
44. 'infant industry argument' in international trade is given in support of:
Granting protection
Free trade
Encouragement to export oriented Small and tiny industries
None ofthe above
45. Which ofthe following is also known as International Bank for Reconstruction and Development?
Asian Development Bank World Bank
International Monetary Fund Reserve Bank ofIndia
46. Which among the following is NOT a function ofInternational Monetary Fund?
It serves a medium term and long term credit institution.
It provides a mechanism for improving short term ofpayments position.
It provides machinery for international consultations.
It provides a reservoir ofthe currencies of the member countries and enables
members to borrow one another's currency.
47. The new World Trade Organization which replaced the GAIT came into effect from
1st January 1991 1st January 1995
1st April 1994 1st May 1995
48. A change in fiscal policy affects the balance of payments through:
The current account only
The capital account only
Both, the current account and capital account
Neither current account nor capital account
49. Fiscal policy means:
Policy relating to money and banking in a country
Policy relating to non-banking financial institutions
Policy relating to government spending, taxation and borrowing
Policy relating to financial matters ofinternational trade
KL14IEco Series-A
6
J
KL14/Eco
SO. Whichone ofthefollowing isNOTtheobjective offiscal policy ofgovernmentof India?
Full employment Price stability
Regulation of inter-state trade Economic growth
51. Monetary policy is implemented by India.
The Ministry of Finance The Parliament
Planning Commission Reserve Bank ofIndia
52. Under the Industrial policy of 1991
The mandatory convertible clause is applicable to all term loans.
The mandatory convertible clause is applicable to term loans ofmore than 10 years.
The mandatory convertible clause is applicable to term loans ofless than 10 years.
The mandatory convertible clause is no longer applicable.
53. Balance ofPayment on capital account includes:
Balances of private direct investments
Private portfolio investments
Government loans to foreign governments
All of the above
54. Which country was the first to adopt a gold standard in the modern sense?
Italy France
Great Britain Portugal
55. To eradicate the problem of poverty, Twenty Point Economic Programme was launched for the first time in India on:
7th July, 1971 7th July, 1975
26th January, 1951 15 August,1983
56. may result when some workers are temporarily out ofwork while changing job.
Seasonal Disguised
Frictional Technical
57. Which among below is the economic effect ofpopulation pressure in India?
Higher burden of unproductive consumers on total population
Disintegration offamily
Overcrowding of cities
Ecological degradation
Series-A
58. Which among the following may be considered as a significant cause of low agr productivity in India?
Defective tenancy refonus
Lack ofenthusiasm among farmers
Conservative social systems
Absence of agricultural inputs to raise productivity
59. Whathavebeenthereasons ofdeficitinIndia'sBalance ofTradeinthepast?
Very large rise in imports
Modest growth of exports
High cost and low quality production
All ofthe above
60. A high average level ofreal income per head is always associated with a high proJ ofthe working population engaged in
Primary Secondary
Tertiary None ofthe above
61.
"Natural resources detenuine the course ofdevelopment and constitute the challenl which may not be accepted by the human mind."Who has said it? (A).W. Arthur Lewis J.I.Fisher Jan Tinbergen . W.W.Rostow
62.
The credit of developing the concept ofmpdem economic growth goes to:
Arthur Lewis Michael P. Todaro
Gunnar Myrdal Simon Kuznets
63.
The most simple and popular method of measuring economic development is to calc the trend ofgross national product at
Current prices Constant prices
Both ofthe above None ofthe above
64.
"Underdeveloped countries are the slums ofthe World Economy." This statement is I
RagnarNurkse A.N.Caimcross
Colin Clark JagdishBhagwati
65.
Which among the following is a characteristic ofunderdevelopment?
Vicious circle of poverty
Rising mass consumption
Growth of industries
High rate of urbanization
KLI4/Eco Series-A 66. According to W.W.Rostow, the stages ofeconomic growth are:
Two Three
Four Five
67. Most ofthe underdeveloped economies suffer from do not let the rate of growth go up from a lower level.
High population pressures
High infant mortality
Hugh monetary mismanagement
High level oftechnological unemployment
68. By rate ofan economy can be speeded up.
Investment in share market
Investment abroad
investment in human capital formation
investment in primary sector
69. When the population growth rate ofan economy becomes greater than the achievable economic growth rate, it is known as:
Population Explosion Population Trap
Population Crisis None ofthe above
70. 'Planning from below' is known as:
Centralized planning Decentnilized planning
Functional planning Structural planning
71. the highest priority during the first plan period in India.
Selfreliance
Growth with social justice
Development ofAgriculture including irrigation
Removal of unemployment
72. An expression coined by economists to describe an economy that is growing at such a slow pace that more jobs are being lost than are being added:
Stagflation Recession
Growth Recession Ritchet Inflation
73. Which five year plan in India gave emphasis on Co-operative Federalism?
Ninth five year plan Tenth five year plan
Eleventh five year plan Twelfth five year plan
74. Which Five year plan in India had 'poverty alleviation' as one of its objectives?
First five year plan Third five year plan
Fifth five year plan Seventh five year plan
KL14/Eco Series-A 75. Who has contributed the modem theory of interest rate determination?
Paul A.Samuelson Gunnar Myrdal
Knut Wicksell J.R.Hicks
76. Whose name is associated with the "Uncertainty-bearing theory ofprofit"?
J.Schumpeter F.H.Knight
J.B.Clark F.W.Walker
76. Who has sought to measure Consumer's Surplus with the help of indifference curve technique?
Alfred Marshall Edgeworth
J..R.Hicks Pareto
78. Who among the following has given the modem theory of distribution?
Nicholas Kaldor Wicksteed
David Ricardo Mrs. Joan Robinson
79. In a free enterprise economy, which among the following are the determinants of Investment?
Rate of interest Marginal efficiency ofcapital
Both A and B None ofthe above
determine the position and slope ofconsumption curve.
Objective Subjective
Both A and B None ofthe above
81.Keynes believed that the equality between savings and investment is brought about by:
Rate ofinterest Changes in income
Availability ofcapital Marginal efficiency ofinvestment
82.Which among the following is NOT an assumption ofPareto optimality?
Every consumer wishes to maximize his level ofsatisfaction.
All the factors ofproduction are used in the production of every commodity.
Conditions ofperfect competition exist making all the factors ofproduction perfectly mobile
The concept ofutility is cardinal and cardinalutility function ofevery consumer is given.
A stock A flow A store A payment
83."Money is a matter of functions four, a medium, a measure,a standard and .What is the fourth function ofmoney indicated in this popular phrase?
KL14/Eco Series-A
84.Whichofthe following measure ofthe high-power money supply has been used by RBI in India?
Currency held by the public Other deposits with the RBI
Cash reserves ofthe commercial banks+ Other deposits with the RBI
Currency held by the public+ Cash reserves ofthe commercial banks Other deposits with the RBI
Currency held by the public Cash reserves ofthe commercial banks Time deposits ofthe commercial banks Other deposits with the RBI
85.Broad Money constitutes currency with public plus demand deposits with banks
plus time deposits with banks plus
Other deposits with the RBI Post office deposits
Government deposits with RBI Bankers deposits with RBI
86.For measuring the changes in the price level ofthe country, which among the following index number is used?
Cost of living index number Production index number
Security Price index number Whole sale price index number
87. The Heckscher-Ohlin approach to international trade provides important insights, in theory, about the:
Gains from trade
Effect oftrade on production and consumption
(C)Effectoftrade ontheincomes ofproductionfactors
All of the above
88.Under free exchange markets the rate offoreign exchange is determined by:
Balance of Payments theory Purchasing power parity theory
Mint par theory None of the above
89.When National income is calculated with reference to a base year, it is called:
Nominal national income Real national income
Net national income Gross national income
90.Isoquants are right angled only when:
Factors are perfect substitutes Factors are perfect complements
Factors are neutral Factors are scarce
91. Which ofthe following is known as long run average cost curve?
Learning curve Equal product curve
Envelope curve Phillips curve
KL14/Eco Series-A 92.Identify which ofthe following is NOT a correct match?
World Bank provides loans for reconstruction and development ofeconomies
IMF helps in correcting balance of payments
RBI provides technical consultancy to Asian countries
WTO Generally forbids the use ofquantitative restrictions on trade
93.In a perfectly competitive market a firm in the long run will be in equilibrium when:
(B)AR=MR
MR=MC P=AR=MR=AC =MC
94.Which market structure symbolizes the existence of 'few sellers'?
Oligopoly Monopoly
Monopolistic competition Perfect competition
95.Which ofthefollowing isacharacteristic ofcapitalasafactor ofproduction?
It never depreciates It is fixed in supply
It is an active factor ofproduction It is a passive factor ofproduction
96.By Parallel economy is meant an economy:
Which runs side by side ofthe existing economy
Which has the same characteristics as the main economy
Which has variety of parallel businesses
Which has plentiful of black money
97.00 which law ofconsumption the concept ofconsumer's surplus is based?
Engel's law Law of demand
First law of Gossen Second law of Gossen
98. Which among the following has NOT been a measure adopted by the government to unearth black money in India?
Voluntary Disclosure Schemes Demonetization ofcurrency
Special Bearer Bond Scheme Creating Civic consciousness
99. Trace the mismatch between the policy and its year ofannouncement in the pairs given below:
National Water Policy 2002
New National Forest Policy 1988
New National Mineral Policy 2008
National Population Policy 2012
100. Which among the following are the factors that determine the national income ofa country?
Quantity and Quality of factors ofproduction
The state oftechnical knowledge
Economic and Political stability
All ofthe above
KL14/Eco Series-A