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I. A locus of Points representing various contributions of two inputs is called

An indifference curve


Isoquant curve


Supply curve


Demand curve


2. Firms earn normal profit under perfect competition in the long run only when

AR AC


AR AC


AR AC


AR> MR


3. Giffen goods are

Luxuries


Normal necessities


Type of inferior goods


Durable use goods


4. In perfect competition a single firm

is a price maker


is a price taker


practices price discrimination


indulges in non-price competition


5. Innovation theory is associated with

F.H. Knight


Schumpeter


Taussing


C.P. Kindleberger


6. Under monopolistic competition the pertinent problem is

Excess capacity


Selling cost


Product differentiation


Reserve capacity


7. A rectangular hyperbola represents

Zero elasticity


Unit elasticity


Negative elasticity


Positive elasticity


BAC-34 2A

8. According to Euler's theorem, the physical output is exhausted by paying each factor according to its Marginal physical product
Average physical product Total physical product Gross national product
9. According to Marshall, the difference between the potential price and actual price is called
Consumer equilibrium Elasticity of demand Consumers' surplus Producers' surplus
10. Extension and contraction of demand involve movement
Along the same demand curve to a higher demand curve to a lower demand curve at different demand curve
11. Even when Gross National Product is the
market value of all final goods and services, it still suffers from the problem of double counting because it also includes the value of intermediate goods the amount of transfer payments the value by which the capital assets depreciate in the process ofproduction none of the above
12. Gross National Product exceeds Gross Domestic Product when net incomes from abroad are positive net incomes from abroad are negative
net incomes from abroad are zero net indirect taxes are negative
(Contd.)

13. In the classical model, the level of output and employment are detennined by

supply factors


demand factors


monetary factors


both demand and monetary factors


14. For equilibrium level ofincome to be stable at the point of intersection between saving and investment functions, the following condition should be satisfied

MPS MPC


MPC


MPS MPI


MPS> MPI [Note MPS marginal propensity to save; MPC marginal propensity to


consume; MPI marginal propensity to invest]
15. Consider the following diagram:
r 1M "A IS
o Given that yS money supply; Md

demand for money; aggregate supply; yd aggregate demand; and r rate of interest, in this diagram based on IS-LM framework, the situation at point represents




yd


Md; yd


Md;y. yd


BAC-34 3A
16. The 'Ratchet Effect' is implied in the following theory

Absolute Income Hypothesis


Relative Income Hypothesis


Permanent Income Hypothesis


None of the above


17. In an economy with taxes and no international trade, the formula for multiplier is

s+t-st

s+t+st




s-t-st
I
s-t+st
where s marginal propensity to save and t marginal tax rate
18. A change in money supply has a greater effect upon equilibrium income when

expenditure multiplier is small


private sector spending is less interest­sensitive


private sector spending is more interest-sensitive


money holdings are more interest sensitive


19. An individual's speculative demand for money function is

a smooth downward sloping one


a kinked (or discontinuous) one


parallel to x-axis


none of the above


(Contd.)


20. Assume a two. sector model when C Rs. 100 0'8yandI =Rs. 150-6i, and 0'20y -4i and M Rs. 150. The rate of interest at which both the money and commodity markets will simultaneously be in equilibrium is




10%


15%


20%


21. Which of the following is a dynamic function of money

a medium of exchange


a standard of future payment


a store of value


a loan medium


22. In the context of India, which of the following does not represent broad money supply

high powered money


aggregate monetary resources


narrow money supply time deposits


M3
23. Money is created whenever

a bank accepts a deposit of outside money


a bank loans out money deposited with it


a depositor writes a cheque against a bank account


a borrower spends money a bank has lent him


BAC-34 4J
24. The credit multiplier is lower when

required reserves ratio on demand deposits is lower


required reserves ratio on time deposits is lower


ratio of time to demand deposits is lower


ratio of time to demand deposits is higher


25. Variable reserve requirements influence money supply by changing

rate of interest


reserve base


money multiplier


none of the above


26. Open market operations influence

only the availability of credit


only the cost of credit


both the availability and cost ofcredit


the direction of credit


27. Who amongst the following is gainer from inflation?

those who have loaned money


those who have borrowed money


those who are working for fixed wage or salary


any business that has undertaken to


deliver goods or services in the future at fixed price
(eoold.)
28. Which of the following is not a feature of the Phillips' empirical inflation­unemployment trade-off

there is linear relationship between rate of change of money wage rate and the rate of unemployment


there is a non-linear relationship between the rate of change of money wage rate and the rate of unemployment


there is a loop around Phillips curve


the Phillips curve is stable over time


29. Which of the following is not a Monetarist way of controlling inflation?

check budget deficit by selling bonds


raise taxes or reduce public expenditure


restrain domestic credit expansion


direct price and incomes control


30. A low interest rate policy is known as

dear money policy


cheap money policy


investment policy


policy to curb speculative demand


31. Which one of the following is the correct statement? Central Sales Tax is an

indirect tax levied, collected and retained by central government


indirect tax levied, collected and retained by state government


indirect tax levied and collected by central government


indirect tax levied by central government but the state is authorised to collect and retain it


BAC-34 SA
32. Fiscal deficit equal

the difference between revenue expenditure and current revenues


the difference between total government expenditure and current revenues


the RBI credit to government


the difference between capital expenditure and current revenues


33. When state level Value Added Tax was introduced in 21 states from April 2005, some states 'expressed their reluctance to introduce immediately. They were
I. Gujarat
2.
Tamil Nadu

3.
Haryana

4.
Rajasthan Select the correct answer using the code given below



I,2and3


2,3and4


I,2and4


I,3and4


34. The commodity in which a nation has the least absolute disadvantage represents its area of

Comparative disadvantage


Comparative advantage


Absolute advantage


Cannot say without additional information


(Contd.)
35. With trade, specialisation in production is likely to be

Complete with increasing costs and incomplete with constant costs


Complete with constant costs and incomplete with increasing costs


Complete with constant and increasing costs


Incomplete with both constant and increasing costs


36. The modem theory of international trade predicts that as a result of trade, the difference in factor prices between nations

diminishes


increases


remains unchanged


any of the above is possible


37. If a nation gains from trade, its consumption point is

On its production possibilities frontier


Inside its PPF


Above its PPF


Any of the above


38. If a nation's terms of trade is its trade partner's terms of trade is

4


2



Y,
BAC-34 6A
39. The imposition of an import tariff by a nation

Usually improves the nation's terms of trade and increases the volume of trade


Worsens the nation's terms of trade but increases the volume of trade


Worsens the nation's terms of trade and reduces the volume of trade


Usually improves the nation's terms of trade but reduces the volume of trade


40. The cost of protection for society as a whole is measured by

Production cost of protection


Consumption cost of protection


Loss in consumer's surplus


and


41. Which of the following transactions is a debit in the current account

The export of merchandise


The export of services


A gi ft to foreigners


A gift from foreigners


42. The International Monetary Fund was established in

1944


1945


1947


1951


43. The fundamental cause for the collapse of the Bretton Woods System was

The liquidity problem


The adjustment problem


The confidence problem


All of the above


(eonld.)
44. Economic growth is associated with

a decline in the share of agricultural sector both in labour force and income


a rise In the service sector's share in the labour


a rise in the share of manufacturing sector more in income than in labour force


all the above


45. PQU is a composite index ofdevelopment which takes care of the following. variables: Per capita income, life expectancy
and literacy

Per capita income, life expectancy and infant mortality


Adult literacy, life expectancy and infant mortality


None of the above


46. Given the values of deflator indices in respect of per capita income, literacy and life expectancy as 0·6 and 0-4 respectively, what will be the value of HOI

0·2


0·4


0·6


0·8


47. Gini coefficient in the case of complete equality takes the value

one


less than one


greater than one


zero


BAC-34
48. The cause of income inequality is

the difference in opportunities


the law of inheritance


the system of private property


all the above


49. "An underdeveloped country is one in which the per capita real income is low when compared with the per capita income of USA, Canada, Australia and Western Europe." This definition ofUDC is given by

International Labour Organisation


World Bank


Economic and Social Commission for Asia


United Nations (U.N.)


50. The stage in which the society effectively applies the range of modern technology to the bulk of its resources is known as

the take-off stage


the drive to maturity


the age of high mass consumption


the pre-condition for take-off


51. Which of the following is normally a dormant factor of production

capital


landlord


entrepreneur


worker


A (Conld.)
52. Foreign trade is no longer an engine of growth for developing countries because

the demand for goods and raw materials exports are not growing rapidly


the growth of GNP in developed countries slowed down


the demand for manufactured exports is not growing rapidly


all the above


53. Foreign aid depends on

the capacity of recipient country to repay


the availability of surplus funds with the developed countries


the absorptive capacity ofthe recipient country


all the above


54. The balanced growth theory was propounded by

Hirschman


Marx


Ragnar Nurkse


A.H. Hansen


55. The concept of unbalanced growth has been popularised by

Hirschman


Leibenstein


Richard Nelson


Rosenstein Rodan


BAC-34 SA
56. The sum of the deviation of individual observations is zero from

Mode


Arithmetic Mean


Hannonic Mean


Geometric Mean


57. The median of the marks 61, 33, 53, 51, 47, 41 obtained by six students in an examination is

51


47


49
52
58. The measure of variation that IS least affected by extreme observations

Range


Mean deviation


Standard deviation


Quartile deviation


59. Coefficient of quartile deviation is calculated by the fonnula

Q3
2



Q3 -Q1
2



Q3 -Q1
C Q3

(Contd.)
60. The co-efficient of correlation

has no limits


can be less than one


can be more than one


varies between ± I


61. The rank correlation co-efficient was developed by

Spearman


Karl Pearson


Bowley


Kelly


62. Fisher's ideal index is based on

Arithmetic mean


Geometric mean


Harmonic mean


Mode


63. Time reversal test is satisfied when

POI x P10 0


POI x P10 I


POI xPIO I


POI x P10 I


64. If with a rise of 10% in prices the wages are increased by the real wage increase is by
10%
More than 10%
Less than 10%
20%

BAC-34 9A
65. While drawing a scatter diagram, if all the points appear to form a straight line going down from left to right, then it is inferred that there is
. perfect positive correlation

perfect negative correlation


simple positive correlation


no correlation


66. Which one of the following is the correct ranking of India in the world

7th in terms of area and 2nd in terms of population


6th in terms of area and pt in terms of population


7th in terms of area and 3rd in terms of population


6th in terms of area and 4th in terms of population


67. Which one was not the objective of National Forest Policy of 1952

rational land use


afforestation


large scale tree planting


deforestation


68. The production of which of the following mineral is not in excess of their demand?

Iron-ore


Manganese


Copper


Mica


(Contd.)


69. Which of the following factors have been responsible for ecological imbalance?

Land and water mismanagement Deforestation


Destruction ofnatural living resources


All the above


70. Crude death rate in India presently stands at

Below 9 per cent


Between 9 to 10 per cent Between 10 to 11 per cent


Between II to 12 per cent


71. During the period 1991-2001, the percentage decadal growth was highest in

Uttar Pradesh


Nagaland


Tamil Nadu


Maharashtra


72.
As per population of 2001, Orissa's rank

73.
Which state ofindia had the lowest literacy rate in 2001


was
9th
10th
11 th
12th


Uttar Pradesh


Bihar


Madya Pradesh


Jharkhand


BAC-34 10
74. How many states and union territories are in India?

28 states and 7 union territories


27 states and 7 union territories


26 states and 8 union territories


30 states and 5 union territories


75. As per Census Figures of 2001, which union territory had the highest density of population

Delhi


Chandigarh


Pondichery


Lakshadweep


76. Which, among the following states, had lowest density of population in India, as per 200 I census

Himachal Pradesh


Madhya Pradesh


Rajasthan


Arunachal Pradesh


77. In which census year, sex ratio (females per 1000 males) has been lowest in India?

1971


1981


1991


2001


78. The scheme under which the Central Government tried to reduce the interest burden of the State Governments through gradual conversion of high cost debt into low cost debt is termed as

Debt consolidation


Debt swap scheme


Grants-in-aid


Debt-write off scheme


A (Contd.)
79. Which one of the following was not included under one-by-six scheme, before its abolition in the Union Budget 2006-07

Cellular phone


Foreign travel


Occupation of immovable property


Ownership of vehicle


80. Presently the income tax exemption limit is maximum for

individual taxpayers


women taxpayers


corporate taxpayers


senior citizens


81. Among the food articles,· which one experienced the highest inflation rate (on year to year basis) during 2005·06

wheat


rice


pulses


vegetables


82. Which item dominated the inflation outcome during 2005-06

primary food articles


cotton prices


oilseed prices


fuel prices


83. Name the Chairman ofthe Committee on Pricing and Taxation ofPetroleum products.

C. Rangarajan


Y.V. Reddy


Abid Hussain


M.S. Ahluwalia


BAC-34 lIA
84. Average consumer price index (year-to­year basis) during 2005-2006 increased maximum in respect of

industrial workers


agricultural labourers


urban non-manual employees


rural workers


85. Which one of the following had the highest share in financing Gross Fiscal Deficit of State Governments during 2005-06

Market borrowings


Loans from the Centre


Loans against securities issued to NSSF


State Provident Funds


86. The Twelfth Finance Commission has fixed the target of Fiscal Deficit to be reduced to 3 per cent for the State Governments by the year

2007-08


2008-09


2009-10


2010-11


87. In financing Gross Fiscal Deficit of the centre, which of the following source is likely to have maximum share during 2006-07

Market borrowings


Securities against small savings


External Assistance


Deposits and Advances


(eonld.)
88. During 2005-06, growth rate in exports was highest in the case of

Agriculture and allied products


Engineering goods


Textiles and textile products


Petroleum products


89. Which was the most important item of India's imports during 2005-06

Petroleum products and related material


Iron and Steel


Electronic goods including computer software


Gold and Silver


90. At the end of March 2006, the highest share in India's long-term debt was that of

Commercial borrowing


Multilateral debt


Bilateral debt


International Monetary Fund


91. What proportion of population formed the labour force in rural and urban areas respectively in India during 2004

47 percent and 37 percent


55 percent and 32 percent


56 percent and 16 percent


43 percent and 68 percent


92. What was the proportion of the public and private sector employment respectively in India's organized sector during 2003

65 percent and 35 percent


69 percent and 31 percent


62 percent and 38 percent


60 percent and 40 percent


BAC-34 12,
93. What was the estimated per capita income in India during 2004-05 at constant (1999­2000) prices Rs. 19,649 Rs. 18,517 Rs. 17,281
Rs. 16,910
94. What was the annual average growth. rate of national income in India during 2005-06 at (1999-2000) prices? 7·5 percent 8·0 percent 8·5 percent 7·0 percent
95. What was the contribution of the primary, secondary and tertiary sectors respectively in the net domestic product of India during 2004-05
26·7 percent; 24·3 percent; 49·0 percent 26·1 percent; 24·9 percent; 49·0 percent 23·0 percent; 24·0 percent; 53·0 percent
23·0 percent; 23-8 percent; 53'2 percent
96. Among the following which is the poorest in terms of per capita Net Domestic Product at current prices? Himachal Pradesh Jammu and Kashmir Kerala
Orissa
97. What is the total work force participation rate in India 40·3 percent 39·2 percent 27·6 percent
33·8 percent
.. (Contd.)

98. What was the unemployment rate in India during 1999-2000

8·34 percent


7·32 percent


9·20 percent


4-48 percent


99. What is the Tenth Plan target for poverty reduction from 26·1 percent in 1999-2000, to?

22·5 percent


24·3 percent


19·3 percent


12·2 percent


100. Which state in India produced the largest quantity of foodgrains during 2004-05

West Bengal


Uttar Pradesh


Punjab


Kamataka


10 I. What was the average annual growth rate of the Indian economy during the Ninth Plan (1997-2002)

6·5 percent


5·5 percent


5·0 percent


6·0 percent


102. Which of the following most pertinently represents the basic objectives of economic planning in India

Attaining higher agricultural ouptut; attaining full employment; maximizing foreign exchange


Attaining higher rate of economic growth; reduction of economic inequalities, achieving full employment


Attaining food security; social security for workers; exchange rate stability


Attaining full employment; maximizing returns on investment; higher growth of industrial output


BAC-34
103. What is the growth target of the Tenth Five Year Plan?

8 percent


10 percent


7 percent


6·5 percent


104. Which of the following pertinently characterize the main focus of the Tenth Five Year Plan

High growth and poverty reduction


Reduction of mortality rate and increasing literacy rate


Controlling pollution and increasing sustained access ofpopulation to clean drinking water


Reduction of population growth and compulsory education for children.


105. A planned economy is different from open market economy because

A planned economy is a centrally directed economy based on extensive controls for optimum utlization of resources


A planned economy is a democracy based on people's participation in economic activity


A planned economy is governed by indication of the global markets for optimum production


A planned economy promotes individual initiatives for maximizing the rate of return on investment and for allocating resources


(eoold.)
106. What was the average rate of growth of the agricultural sector in India during the Ninth Plan as against the targeted rate of 3·9 percent

percent


percent


-0·9 percent


7·6 percent


107. What was the actual average growth rate ofthe manufacturing sector in India during the Ninth Plan against the targeted rate of 8·2 percent?

2·22 percent


5·28 percent


9·33 percent


5·54 percent


108. How do governments regulate industrial markets?

Through infrastructural policies


Through monetary and fiscal policies


Through income and expenditure policies


Through population control policies


109. Privatisation of the industrial sector implies

Introducing measures to protect small and medium enterprises against large industries


Introducing measures to eliminate the sickness of industry


Introducing private ownership in publicly owned enterprises


Introducing contractual system of production in the industrial sector


BAC-34 14
110. What was the extent of disinvestments in public sector undertakings in India during 2003-04

Rs. 14,500 crare


Rs. 15,547 crore


Rs. 13,348 crore



Rs. 12,000 crare
III. What is the estimated proportion of tax revenue to GDP in India during 2005-06

6·8 percent


7·5 percent


7·2 percent


7·7 percent


112. What is the estimated proportion of fiscal deficit to India's GDP during 2005-06

4·5 percent


4·3 percent


4·1 percent


4·4 percent


113. Total non-performing assets of the scheduled commercial banks in India during 2004-05 amounted to

Rs. 68,717 crore


Rs. 64,786 crore


Rs. 58,298 crore


Rs. 47,325 crore


114. What is the average population per bank office in India during 2005
13993
14993
15993
16993

A (Contd.)
115. What is the index of industrial production in India (Base 1993-94 100) during 2004-05

204·8


189·8


176·2


167-9


116. What is the average growth rate of the
industrial sector in India during 2004-05 10-4 percent

8·6 percent


3·7 percent


19·2 percent


117. Which of the following most closely represents the objectives of India's fiscal policy?

To mobilize adequate resources for financing development programmes; to stimulate the rate of savings and investment for accelerating capital formation; to provide fiscal incentives for the growth of private sector


To bring about exchange rate stability; to control money supply in the economy; to regulate consumption of the rich


To promote foreign trade; to effect progressive cropping pattern in agriculture; to promote industrial diversification


To bring about interest rate flexibility; to control the equity prices; to provide impetus for infrastructural and services sector development


BAC-34 I:


118. Which ofthe following represents the most
significant constraints on the growth of industries in India

Labour unrest; rising prices; state controls


Poor capital formation; lack of infrastructural facilities; poor performance of the agricultural sector


Lack of appropriate skills; trade restrictions; political instability


Lack of industrial diversification; regional imbalances; inefficient public sector


119. Why was there a perceptible industrial retrogression during the first phase of economic reforms i.e. during 1991-97

New industries were being commissioned; labour unrest; political instability


Adverse licensing policy; infrastructural shortages; shortage offoreign exchange


Sharply dwindling exports; tight money policy; unused industrial capacity


Inflation; influx ofMNCs; technological backwardness


120. Food security implies

Fair distribution of food; food availability at low prices; adequate food stocks


Mid-day meal for school children; sustainable production of food; dispensing with food imports


Food self-sufficiency; supply of uncontaminated food to people; proper public distribution system of food


Access to food; adequate purchasing power ofpeople to buy food; sustainable supply of nutritional food


•

5A