1. The National Income is equal to

(A)Net National Product Taxes


(B)Net National Product Indirect Taxes Subsidies


(C)Net National Product Direct Taxes Subsidies


(D)Gross National Product — Subsidies Taxes


2. Y C I is

equation


An identity


formula


A function


3. Per Capita Income rises when

(A)GNP and Population increase at same rate


(B)GNP and Population decrease


(C)GNP increases faster than population


(D)GNP increases slower than population


4. Income elasticity of demand is expressed as

Change in quantity demanded Change in income


(B)Change in income Change in quantity demand


(C)Change in income 100 X change in quantity demanded


Change in price Change in quantity supplied


5. Elasticity expressed by the formula, 1 E 0 is

(A)Perfectly elastic


Relatively elastic


(C)Unitary elastic


Relatively inelastic


6. Which aggregates is the main concern of Macroeconomics

(A)Supply of money


Supply of cloth


(C)Supply of work


Supply of petroleum products


7. The difference between gross domestic product and net domestic product equals

(A)Transfer payments


Indirect taxes


(C)Subsidies


Depreciation cost


8. Which one of the following is a transfer income

(A)Rents from house property


(B)Dividends to company shareholders


(C)Unemployment allowances


(D)The salary of a Member of Parliament


9. National income is a

(A)Quasi stock concept


Stock concept


(C)Flow concept


Unsolved stock


10. Grant in aid is transfer of funds from government to

(A)Firms


Household


(C)State government


Central government


11. Currency drain is a phenomenon referred to when

(A)domestic currency is exported


(B)the holding of currency by foreigners in a country goes up


(C)the currency holding by a parallel economy increases


cash is drained into non-banking customers


12. In national income terms, the main determinant of the level of activity is, in national income terms

(A)The level of taxation


Realized investment


(C)Planned saving


Factor mobility


13. Disinvestment occurs when

(A)inventories expand


(B)the prices of investment goods rise


(C)the capital consumption allowance exceeds gross private domestic investment


(D)business sell machinery and equipment to domestic buyers


14. Smallest National Income accounting aggregate is usually

NNPFC


GDPMP


Personal income


Personal disposable income
15. Devaluation is restored to

(A)Belittle foreign currencies


Encourage exports


(C)Give more value to home currency


Tide over post-war difficulties


16. Budget 2011-12 introduced a new deficit, named "Effective Revenue Deficit". The budget estimate for this deficit for 2011-12, stand at

3. of GDP


2.3% of GDP


1.8% of GDP


1.3% of GDP


17. 13th Finance Commission was constituted under the Chairmanship of

(A)Y.S.P. Thorat


Vijay L. Kelkar


(C)T.S. Vijayan


Laxmi Narayan


18. ICOR is defined as the ratio of the increment in

(A)capital and output


output and capital


(C)income and consumption


saving and consumption


19. What does an increase in ratio of revenue deficit to gross fiscal deficit indicate

increase in investment


increase in utilization of borrowed funds for revenue purposes


increase in utilization of borrowed funds for imports


increase in utilization of borrowed funds for lending


20. Aam Admi Bima Yojana provides social security to

(A)All labors in rural areas


(B)All landless labors living below poverty line in rural areas


(C)All labors in urban areas


(D)All labors in both rural as well as urban areas


21. Demographic dividend refers to a rise in population

(A)between age group of 1 to 14 years


(B)between age group of 15 to 64 years


(C)between age group of 65 to 74 years


(D)above 74 years


22. In union budget 2011-12, income tax surcharge on domestic companies has been

(A)Reduced to 10% from 12.5


Reduced to from 7.5%


(C)Raised to from 2.5%


Raised to 10% from 7.5%


23. The rate at which banks lend to RBI is known as

(A)Bank Rate


Repo Rate


(C)Reverse Rapo Rate


Interest Rate


24. 'Pure Banking, Nothing Else' is a slogan raised by

(A)ICICI Bank


HDFC Bank


(C)SBI


UTI Bank


25. The largest source of National Income in India is

(A)Service Sector


Agriculture


(C)Industry Sector


All are of equal importance


26. Which of the following is a better measure of economic development

(A)Employment


Size of exports


(C)Rural consumption


National Income


27. 'Smart Money' is a term used for

(A)Internet Banking


Credit Card


(C)Cash with Bank


Cash with Public


28. Interest Rate Policy is a part of

(A)Fiscal Policy


Industrial Policy


(C)Monetary Policy


Wage Policy


29. MRPT is related to

(A)Monopoly and trade restrictions


Inflation control


(C)Transport control


Foreign Exchange Regulations


30. What is stagflation

(A)Inflation with growth


Deflation with growth


(C)Inflation after deflation


Inflation with depression


31. Which plan was suspended one year before the time schedule

(A)First Plan (1951—56)


Third Plan (1966—71)


(C)Sixth Plan (1980—85)


Fifth Plan (1974—79)


32. The process of budget making after re-evaluating every item of expenditure in every financial year is known as

(A)Performance Budgeting


Deficit Budgeting


(C)Zero Based Budgeting


Fresh Budgeting


33. 'Focus Product' and 'Focus Market' are the two schemes introduced by India related to

(A)Industrial Diversification


Technology Upgradation


(C)Export Promotion


Control of Inflation



34. Multidimensional Poverty Index is a new index being to be included in

(A)World Human Report


Human Development Report


(C)World Development Report


India's Human Development Report


35. Which one of the following rates is not determined by Reserve Bank of India

(A)Bank Rate


CRR


(C)SLR


PLR


36. National Income Estimates in India are prepared by

(A)Planning Commission


RBI


(C)Financial Ministry


Central Statistical Organization


37. P/MC is same for all products at equilibrium level, then level of output may be known as

(A)ideal level


optimum level


(C)equilibrium level


profit maximization


38. Quasi-rent is

(A)Price—AVC


Price—AFC


(C)Price—(AVC+AFC)


Price—MC


39. Which of the following is not a necessary characteristic of money

is a unit of account


It is a store of value


is of intrinsic value


It is generally acceptable


40. Money is

(A)Neutral for production


Helpful for production


(C)Harmful for production


Distorts production


41. The Laffer Curve explains the relationship between which of the following

(A)Tax rates and employment


(B)Tax rates and tax revenue


(C)Tax rates and income


(D)Tax rates and government expenditure


42. A change from £ 1 to £ 1 means

(A)Depreciation of the dollar


Appreciation of the dollar


(C)Appreciation of the pound


Value of the pound unchanged


43. The difference between average total cost and average fixed cost shows

(A)Normal profits


Implicit costs


(C)Average Variable costs


Opportunity costs


44. Production function relates

(A)Cost to input


Wages to profits


(C)Cost to output


Inputs to output


45. The minimum reserves kept by the R.B.I. for issue of currency is

(A)100 percent gold


percent gold


(C)Rs. 115 crores worth of gold


(D)Rs. 115 crores worth of gold and Rs. 85 crores worth of foreign securities


46. Which of the following is not a non-tariff barrier

(A)Voluntary export restraint


(B)Health and product standards


(C)Environment protection laws


(D)Ad-valorem duties


47. Which of the following measures is not likely to help in improving India's balance of payments position

(A)Encouragement of import substitution


(B)Imposition of higher duty on exports


(C)Imposition of higher duty on imports


(D)Devaluation of the rupee


48. In which of the following years was the trade balance favourable to India

(A)1970-71 and 1974-75


1972-73 and 1976-77


(C)1972-73 and 1975-76


1971-72 and 1976-77


49. 'Interest is price paid for use of capital in any market.'This definition of interest was given by

(A)S.E. Harris


I. Fisher


(C)R.G. Lipsey


A. Marshall

50. Fiscal deficit in the Union Budget means

(A)The sum of budgetary deficit and net increase in internal and external borrowings


(B)The difference between current expenditure and current revenue


(C)The sum of monetized deficit and budgetary deficit


(D)Net increase in Union Government borrowings from the Reserve Bank of India


51. To know whether the rich are getting richer and the poor getting poorer, it is necessary to compare

(A)The wholesale price index over different periods of time for different regions


(B)The distribution of increase of an identical set of income recipients, in different periods of time


(C)The distribution of income of different sets of income recipients at a point of time


(D)The availability of food-grains among two sets of people, one rich and the other, over different periods of time


52. Who was the Chairman of the Tenth Finance Commission

(A)Pranab Mukherjee


Manmohan Singh


(C)Krishan Chandra Pant


Montek Singh Ahluwalia


53. Change in which of the following is the best indicator of the change in the standard of living of the people of a country

(A)Cost of living index


Index of industrial productivity


(C)Per capita income


Wholesale price index


54. The growth rate of the population is dependent upon

(A)Birth rate


Death rate


(C)Both birth rate and death rate


Neither birth rate nor death rate


55. Inflation can be controlled temporarily by

(A)Increase in subsidies


(B)Decreasing taxes


(C)Increasing prices


(D)Restraint on the growth of money supply


56. Which of the following taxes is a progressive tax

(A)Sales Tax


Income Tax


(C)Excise Tax


Customs Duty




57. Credit creation increases

(A)Real national income


Supply of money


(C)Real wealth of the community


Purchasing power of the currency


58. The multiplier is the factor by which

change in income changes saving


change in income changes investment


increase in investment lowers income


change in autonomous expenditure changes income


59. Which of the following cannot be regarded as capital

(A)Straw in a barn


(B)Straw in a hat factory


(C)Straw in a hat shop


(D)Straw in your room


60. Which of the following would be "fixed cost" to a manufacturing firm

(A)Plant and machinery


Raw materials


(C)Replacement of load


Wages


61. Each short-run average cost curve

(A)Has to touch the long-run cost curve


(B)Has to cross the long-run cost curve


(C)Has to lie above all points on the long-run cost curve


(D)Coincides with the long-run cost curve at a lower point


62. The difference between the average total cost and average variable cost as output increases

(A)Increases


Remains the same


(C)Diminishes


Any of above


63. The marginal cost curve intersects the average cost curve when average cost curve is

(A)Maximum


Minimum


(C)Rising


Falling


64. OPEC is an example of the type of producers' organization known as

(A)Marketing Board


Producers' Co-operative


(C)Trust


Cartel


65. Equilibrium is found between

(A)Buyers and sellers


Supply and demand


(C)Price and quantity


Quantity and quality


66. As a general rule, the marginal revenue productivity of a factor diminishes with the

(A)Decrease in the units of the factor


(B)Increase in the units of the factor


(C)Dividing the units of the factor


(D)Multiplying the units of the factor


67. Which of the following statements is correct or more nearly correct

commodity will have value only if it is wanted by somebody


commodity will have value only if it is scarce relative to demand


(C)The value of a commodity depends upon its price


(D)The value of a commodity is entirely dependent upon the demand for it


68. To maximize its profits during the short-run, a firm should produce the output that will

(A)Yield maximum total revenue


(B)Minimize marginal cost


(C)Maximize marginal revenue


(D)Equate marginal revenue with marginal cost


69. Given inelastic demand, an upward shift of supply curve will result in

(A)Lower price


Higher price


change in price


More being sold


70. When AR Rs. 8 and AC Rs. 10, the firm makes

(A)Normal profit


Net profit


(C)Gross profit


Loss


71. The slope of an indifference curve at any point denotes

(A)The marginal substitution of one good in terms of other


(B)The combination of the goods


(C)The maximum satisfaction


(D)The minimum satisfaction


72. Draw the price line or budget line of consumer. The budget line will be

(A)Parallel to X-axis


(B)Parallel to Y-axis


(C)Downward sloping straight line joining the two axis


(D)Originating at zero point


73. The consumer is in equilibrium

(A)Where the price line cuts the indifference curve


(B)Where the price line is parallel to the indifference curve


(C)Where the price line is a tangent to the indifference curve


(D)Where two indifference curves cut each other


74. The income effect of a rise in the price of a good is the

(A)Extent to which the incomes of suppliers increase


(B)Decrease in the purchasing power of a consumer income


(C)Increase in the money incomes of consumers


(D)Extent to which consumers of substitutes are better off


75. The price effect is

resultant of the income and substitution effects


resultant of the income effect


(C)not a resultant of the income effect


resultant of market conditions and subjective evaluation


76. In the case of Hicksian substitution effect in indifference analysis the consumer moves

different indifference curves


and down along the different indifference curve


(C)Along the same indifference curve


(D)From a point on an indifference curve to a point on a price line



77. Giffen goods are those goods

(A)for which demand increases as price increases


(B)which are in very short supply


(C)which have a high income elasticity of demand


(D)which give rise to a cobweb situation


78. When real income rather than money income is kept constant in drawing a consumer's demand curve for a commodity the demand curve is negatively sloped

(A)Always


Never


(C)Sometimes


Often


79. Elasticity of supply like elasticity of demand is

(A)The responsiveness of quantity supplied to a change in price


(B)The change in supply resulting from a change in techniques of production


(C)Not measurable


(D)Measurable only qualitatively


80. The Engel's curve for a Giffen good is

(A)Positively sloped


Negatively sloped


(C)Horizontal


Vertical


81. The market period supply curve for perishable commodities is

(A)Relatively inelastic


Perfectly inelastic


(C)Relatively elastic


Perfectly elastic


82. When the total supply of food grains increases, the total income of farmers falls. This shows that the demand curve for food grains is

(A)Elastic


Inelastic


unitary elasticity


Perfectly elastic


83. In general most of the production functions measure

(A)The productivity of factors of production


(B)The relations between the factors of production


(C)The economies of scale


(D)The relations between changes in physical inputs and physical outputs




84. Normally the Isoquants slope

(A)upwards from left to right


upwards from right of left


(C)downwards from left to right


backwards from left to right


85. An indifference curve cannot

(A)Slope downwards


Slope upwards


(C)Cut any other indifference curve


Be concave


86. Indifference curve is downward sloping from left to right since more X and less Y gives

(A)Less satisfaction


More satisfaction


(C)Maximum satisfaction


Same level of satisfaction


87. The incidence of tax refers to

(A)The level and rate of taxation


(B)Who ultimately pays the tax


(C)The growth of taxation


(D)The way in which a tax is collected


88. Which of the following is an instance of quasi-money

(A)Demand deposits


Coins


(C)Bills of exchange


Currency


89. The burden of a tax will tend, in general, to be greater for the consumer, than the producer in the case of a commodity for which

(A)Demand is elastic and supply is inelastic


(B)Demand is inelastic and supply is elastic


(C)Demand and supply are inelastic


(D)Demand and supply are elastic


90. Which of the following does not have a uniform elasticity of demand at all points

downward sloping demand curve


vertical demand curve


rectangular hyperbola


horizontal demand curve


91. Among the original canons of taxation propounded by Adam Smith was

tax should be levied on food


tax should be convenient to pay


tax should be impossible to evade


tax should fall on any imports


92. High powered money consists of

(A)Currency, reserves and other obligations of the Central Bank


(B)All loans of banks


(C)All loans and security of banks


(D)Rupees held as legal bank reserves


93. If a bank decides to "play it safe" it is

(A)Maximizing liquidity while sacrificing potential income


(B)Minimizing safety while maximizing liquidity


(C)Maximizing safety while minimizing liquidity


(D)Minimizing solvency while maximizing risk


94. Bank credit is a liability of

(A)Banking System


(B)Borrowing public


(C)Borrowing government


(D)Borrowing public as well as borrowing government


95. If you offered some securities as "security" for loan you made, you would be

(A)Buying on margins


Selling short


(C)Providing collateral


Carrying securities


96. Marginal utility is the utility derived from

(A)First unit of the commodity


Last unit of the commodity


(C)All units of the commodity


Second unit of the commodity


97. Which concept is acceptable

more equal distribution of national income increases economic welfare


more equal distribution of national income diminishes economic welfare


more equal distribution of national income leaves economic welfare un-effected


(D)National income can never be distributed


98. The idea of rational expectations was first put forth by

(A)Friedman


Keynes


(C)John Muth


Patinkin


99. Which one of the following statements correctly defines the term Natural Rate of Growth

is the minimum rate at which output can be increased with full employment of labour


is the natural rate at which output can be increased with full employment of labour


is the maximum rate at which output can be increased with full employment of labour


is the actual rate at which output can be increased with full employment of labour


100. The Reserve Bank of India issues notes under which of the following methods of note issues

(A)Fixed fiduciary system


Maximum fiduciary system


(C)Proportional reserve system


Minimum reserve system


101. Flat money is that which is

(A)Accepted by Overseas Banks only


(B)Decreed as money by the Government


(C)Accepted temporarily in lieu of gold


(D)Backed by gold and silver


102. Which of the following is not a liability of commercial banks

Time deposits


Borrowing from the Central Bank



Reserve Demand deposits


Security holding
103. A banking system where all operations are confined to a single office is called

(A)Chain Banking


Group Banking


(C)Unit Banking


Branch Banking


104. Credit created is equal to

Actual deposit ×100 /Ratio of Cash Reserve











105. A Five Year Plan is a

Medium Term Plan


Short Term Plan


Perspective Plan


Long Term Plan
106. The sex ratio is the highest in

Punjab


Kerala


(B)Haryana


Karnataka
107. The Statutory Liquidity Ratio is


(A)Amount of cash kept by a bank with the RBI


(B)Amount of gold and securities that it keeps with itself


(C)Amount of deposits with the other banks minus deposits of the other banks with the bank


(D)Amount of cash, gold, unencumbered approved


108. The Ex-officio Chairman of the Planning Commission of India is the

(A)Planning Minister


(B)Finance Minister


(C)Prime Minister


(D)Government of Reserve Bank of India


109. What is the approximate density of population in India

(A)516


416


(C)382


316


110. The supply of money consists of

(A)Notes and coins


(B)Notes, coins and demand deposits


(C)Notes, coins and time deposits


(D)Notes, coins, demand deposits and time deposits


111. Inequalities in income distribution in the rural sector are

(A)Increasing


Decreasing


(C)Constant


Nothing can be said



112. Among all the States and Union Territories in India, per capita income is highest in

(A)Punjab


Delhi


(C)Maharashtra


Goa


113. Which one of the following pairs is correct

(A)IDBI Short term lending


(B)NABARD Industrial financing


(C)RBI Long term financing


(D)RRB Dispensing Rural Credit


114. Since 1950-51, the percent contribution of the tertiary sector to India's national income has been

(A)Stagnant


Increasing


(C)Declining


None of the above


115. Investment wise the biggest public sector enterprise in India is

(A)National Thermal Power Corporation of India


(B)Coal India Ltd.


(C)Steel Authority of India Ltd.


(D)Oil and Natural Gas Commission


116. Which of the following is not covered under the minimum needs programme

(A)Rural water supply


Social forestry


(C)Elementary education


Improvement of urban slum


117. Open unemployment refers to people

(A)Who are not willing to work


(B)Who are willing but do not get work


(C)Who leave their jobs in search of better ones


(D)Who have been dismissed because of incorrect practices


118. The One Rupee currency note bears the signature of the

(A)Governor of Reserve Bank of India


(B)The Minister for Finance


(C)Chairman, State Bank of India


(D)None of the above


119. The one rupee currency notes are issued by the

(A)State Bank of India


(B)Reserve Bank of India


(C)Ministry of Finance


(D)Ministry of Home


120. All currency notes except have the signature of the Governor of the Reserve Bank of India.

Rupee note


Rupee note


Rupee note


Rupee note