1. If for the year 2000-01, the GNP at factor cost at 1993-94 prices was Rs. 11,86,438 Cr,and the GOP at factor cost at 1993-94 prices was Rs. 11,98,592 Cr, the net factor income from abroad:

was negative


was positive


was nil


cannot be inferred


2. If we divide NNP in current prices by NNP in constant prices, keeping other factors same, what do we obtain

index of money


An index of price


index of quantity


An index of volume


3. William Nordhaus and James Tobin introduced the:


(A)Measure of Economic Welfare


(B)Measure of Social Welfare


(C)Measure of Total Welfare


Measure of Gross Welfare


4. National income is a in the nation.

(A)cost measure of all activities


(B)cost measure of economic activities


(C)value measure of all activities


welfare measure of economic activities


5. If amount of net indirect tax and consumption of fixed capital is deducted from GDP at market prices, what do we obtain?

(A)NNP at market prices


(B)NDP at factor cost


(C)GNP at market prices


GNP at factor cost


6. If I have sold my second hand car at Rs. 1,00,000 through a second hand car dealer who charged as the commission, while I had bought it at Rs. 1,50,000, the national income will

(A)Increase by Rs. 1,00,000


(B)Decrease by Rs. 50,000


(C)Increase by Rs. 5,000


Decrease by Rs. 45,000


7. In economic theory, the behavioral assumptions of consistent behavior and maximization of satisfaction or profit are applied to


(A)households, firms, and governments


(B)households and firms


(C)governments only


(D)households only


8. By convention, expenditure on TV and that on a kutcha house, both lasting for the period, are treated in the national income accoWlts in the following way:


(A)Both expenditure as investment


(B)Both expenditure as expenditure on consumer durable


(C)Expenditure on TV as investment, that on house as expenditure on a consumer durable


(D)Expenditure on TV as expenditure on a consumer durable and that on house as investment


9. Investment multiplier is equal to

(A)Marginal propensity to consume


(B)Marginal propensity to save


(C)1/Marginal propensity to conswne


(D)1/Marginal propensity to save


10. Which of the following is not a unilateral flow (transfer payment)

(A)Pocket money given by a parent to a child


(B)Fee concession given by a school


(C)Free mid-day meals


(D)Salary received by a government employee


11. Law of demand examines:

(A)the effect of demand on output


(B)the effect of price change on demand


(C)the effect of demand on price


A and B both


12. Transfer payments are included in


(A)Net National Product


(B)Gross National Product


(C)Personal Income


National Income


13. A statement saying 'price rose because of increase in demand' is suggesting:

(A)rightward shift of demand curve with no shift in supply curve


(B)rightward shift of both demand and supply curves


(C)movement of supply curve for a given demand curve


(D)leftward movement of supply curve for a given demand curve


14. While market demand may have elasticity less than unity, the demand curve faced by a competitive firm, is infinity because

(A)the firm has no control on elasticity


the firm has no control on price


(C)the firm has no control on quantity.


the firm has no control on buyers


15. Which one of the following is NOT true about economic development?

is known by structural changes in GDP


is a part of economic growth


includes economic growth


(D)Urbanization is the result of economic development


16. In the case of perfectly inelastic demand curve,average revenue is equal to price,but marginal revenue is equal to

(A)One


(B)Zero


(C)Infinity


Indefinite

17. Upward shift in demand curve is likely due to


(A)decrease in income


(B)increase in income


(C)decrease in price


increase in price


18. We all know use of bicycle as a mode of communication is non-polluting.If tastes change in its favour, this will mean:

(A)Shift in the demand curve for bicycles to the right


(B)Shift in the demand curve for bicycles to the left


movement along the curve


change in demand curve


19. Demand curve shows:

demand goes up, price goes up


demand goes down, price goes down


price goes down, demand goes down


price goes down, demand goes up

20. IdentitY the truthfulness of the following Statements

A monopoly market consists of a single seller facing many buyers.
Because the monopolist is the only seller of her product, she may sell any quantity that she chooses for any given price.


(A)Both and are true


Both and are false


is true; is false


is false; is true


21. Which one of the following is NOTincluded while estimating national income through income method?


(A)Rental income


(B)Undistributed profits


(C)Mixed income


Pensions


22. List I includes some books and List II their author. Matching the two lists select the correct answer from the codes given below the lists

List I ListII

Problem of Capital Formation in Underdeveloped Countries 1. Gunnar Myrda1

(b)Das Kapital 2. W.A. Lewis


(c)AsianDrama 3. R. Nurkse


(d)Economic Development with unlimited Supply of Labour 4. Karl Marx


Codes:

3 1 2


1 4 2


4 1 2


4 3 2


23. The Central Bank of our country is


(A)Central Bank of India


(B)State Bank of India


(C)Reserve Bank of India


(D)Unit Trust of India


24. Reserve Bank of India is not:


(A)Banker to the Government


(B)Bankers Bank


(C)Commercial Bank


(D)Controller of Money Supply


25. M2 is M1 plus:

(A)Fixed deposits with post office


Recurring deposits with post office


(C)Savings deposits with post office


All deposits with post office


26. M3 is M1 plus:


(A)All deposits with banking system


Recurring deposits with banking system


(C)Fixed deposits with banking system


TIme deposits with banking system


27. According to Keynes three arc three motives for people 10 demand money. One of the following is not included in those three


(A)Transactions Motive


(B)Precautionary Motive


(C)Liquidity Motive


Speculative Motive


28. In the liquidity trap portion of demand for money, elasticity is

(A)perfectly inelastic


(B)uniquely inelastic


(C)perfectly elastic


(D)unitary in value


29. Bank rate is:


rate people can bank upon


rate of interest at which a bank lends to business


rate of interest at which the central bank lends to banks


rate of interest operating between commercial banks


30. Theory of Comparative Costs in international trade was propounded by:


(A)Richard Kahn


(B)Adam Smith


(C)David Ricardo


Joan Robinson


31. Balance of Payments does not consider:

(A)Import by a Resident Indian


(B)export by a Resident Indian


(C)Purchase in Washington by a Non-Resident Indian


(D)Money sent to his brother in India by a Non-Resident Indian


32. In the original Ricardian Theory, the costs are measured in terms of:

(A)wage units


(B)rent units


(C)capital units


(D)labour units


33. Current account balance will not include

(A)Balance of trade


(B)Receipt from services


(C)Loan repayments abroad


Private transfers


34. Capital account balance will not include:

(A)Direct foreign investment


(B)Private loans received


(C)Grants from foreign governments


Short term capital flow


35. Heekscher-ohlin theorem is about:

(A)Human endowment


(B)Capital endowment


(C)Natural resources endowment


Factor endowment


36. Foreign assistance is usually understood as

(A)Concessional grant and commercial loan


(B)Grant and commercial loan


grant but concessional loan


(D)Grant and concessional loan


37. Block development schemes in India arc part of:


(A)poverty alleviation programmes


(B)integrated nnaI development


(C)community development projects


national extension service


38. According to Stolper and Samuelson theorem, Trade leads to equalisation of:

(A)goods and services across countries


factors across countries


(C)factor prices across countries


goods prices across countries


39. Adam Smith's analysis of international trade is based on


(A)Absolute advantage


Comparative advantage


(C)Comparative cost


Opportunity cost


40. Terms of trade in the parlance of international trade refer to:

(A)Conditions laid down in agreement between importers and exporters


(B)Terms set by the governments for importers and exporters


(C)Ratio of export prices to import prices, expressed through indices


None of the above


41. What does the foreign exchange market do


(A)Transfer of purchasing power between countries


(B)Conversion of one currency into another


(C)Hedge the risk of those who hold foreign exchange


(D)Provision of short-term liquidity to exporters


42. Finance Commission is supposed to


(A)arbitrate between States and Union


(B)arbitrate between States


(C)recommend devolution of tax revenue between Union and States


(D)recommend devolution of tax revenue between Union and States and the State's share among States as well as grants from Union to the States


43. Who was the Chairman of the Twelth Finance Commission?

(A)K.C. Pant


Rangarajan


(C)A.M. Khusro


N.K.P. Salve



44. Knife-cdge problem is associated with:


Solow-Swan Model of growth


Harrod-Domar Model of growth


Joan Robinson's Model of accumulation


Lewis' model of development


45. Sex Ratio of indian population in 2001 was

(A)930


(B)933


(C)927


(D)917


46. If value added at different stages are added. the total will:

(A)equal the value of the fina1 product


(B)overestimate the value of the final product


(C)underestimate the value of the final product


misrepresent the value of the firuiI product


47. If a certain number of hands can be withdrawn without diminution in output; they are said to have been:


(A)actually unemployed


(B)substantially unemployed


(C)marginally employed


(D)disguisedly unemployed


48. Vakil-Brahmananda model propounded at the time of formulation of the Second Five Year Plan is named as


(A)heavy investment model


(B)heavy savings model


(C)wage-goods model


capital good model


49. The strategy of the Second Five-Year Plan in India was based on

(A)the economic vision of Jawahar Lal Nehru


(B)the economic model of P.e. Maha1anobis


(C)the plan strategy of V.K.R.Y. Rao


(D)the findings ofPlanning Commission


50. A fall in the price of raw milk. used in the production of iceeream,will

(A)decrease the supply of icecream


(B)increase the quantity supplied of icecream


(C)have no effect on the supply of icecream


(D)decrease the price while increasing the quantity demanded of icecream


51. Poverty ratio for the country as a whole in 1999-2000 was

percent


percent


percent


percent


52. Schumpter is known for his contribution on


(A)role of savings


(B)role of technology


(C)role of innovations


(D)role of inventions


53. the demand for money in an economy is


(A)positively related to the level of income but negatively related to the rate of interest


(B)positively related to the rate of interest but negatively related to the level of income


(C)positively related to both the level of income and rate of interest


(0)negatively related to both the level of income and rate of interest


54. Mineral oil is actually

(A)Petroleum


(B)Any oil having mineral salts as mineral water does


(C)Oil found in coal mines


(D)oil found by mining rather than drilling


55. Sustainable development means

(A)Sustained growth rate


level of development that can be sustained across generations


(C)Stagnating growth rate


(D)Acceleration in growth rate that can be sustained


56. Take-off stage is a term in growth theory given by:

(A)J.S. Mill


(B)Simon Kuznets


(C)Colin Clark


W.W. Rostow


57. 'Limits to growth' was a study conducted by:

(A)Club of Rome


(B)Washington Consensus


(C)New York Club


Malthusian Society


58. Where is the phenomenon of disguised unemployment considered to be occurring?


(A)Private corporate factories


Wage employed farm sector


(C)Self-employed peasant farms


Multinational corporations


59. Dual economy denotes

(A)existence of agriculture sector and industry sector


(B)existence of domestic sector and foreign sector


(C)existence of rural sector and urban sector


(D)existence of modem capitalistic sector and traditional subsistence sector


60. Neoclassical growth models consider the possibility of:


(A)intersectoral substitution


(B)interfactoral substitution


(C)inter-process substitution


(D)inter-generational substitution


61. Identify which one is a non-renewable resource:


(A)Forests


(B)Animals


(C)Water


Gas


62. Human Development Index is an average of three indices which do not consider:

(A)Life Expectancy


(B)Literacy


(C)Real Per Capita Income


Infant Mortality


63. Literacy rate in Jammu Kashmir for 2001 was:

(A)Below 40 percent


(B)Between 40 percent and 50 percent


(C)Above 50 percent but below 60 percent


(D)Above 60 percent


64. Contribution of agriculture to our GDP is now:

(A)above 60 percent


between 50 percent and 60 percent


(C)between 30 percent and 40 percent


below 25 percent


65. GNP exceeds NNP by

(A)the amount of total taxes


(B)government expenditure


(C)transfer payments


(B)the difference between gross investment and net investment


66. Primary sector in India still employs about of all the workers.


percent


percent


percent


40 percent


67. "Money is anything which is widely accepted in payment for goods; or in discharge of the other kinds of business obligation." This definition of money was given by


(A)Robertson


(B)Marshall


(C)Mill


Keynes


68. In 1991 we faced a deep crisis which was mainly in terms of:

(A)low electricity generation


(B)great fall in agricultural production


(C)almost nil foreign exchange reserves


(D)private sector backing out support to government


69. Sex ratio in 0-6 age group decreased from 945 in 1991 to in 2001.

(A)927


(B)943


(C)900


915


70. What is known as demographic dividend?

(A)Having a young population with energy


(B)Having a youthful population with knowledge


(C)Having an old population with wisdom


(D)Having a large population


71. Total fertility rate of our country has come down to


(A)around 3.0


(B)around 4.0


(C)around 5.0


around 6.0


72. If the sum of the elasticities of the exports and imports is lessthan one,any devaluation will further aggravate the deficit in the balance of payments. The statement is associated ,with


(A)Marshall and Lerner


(B)Prebisch and Singer


(C)Solow and Swan


(D)Heckscher and Ohlin


73. Which one of the following is NOT a characteristic of the modem economic growth explanation as given by Kuznets

(A)Migration of workers


(B)High rate of structura1 transformation


(C)Rise in productivity


Outward expansion of developed countries


74. What is 'Laissez-faire'

(A)non-interference of government in economic affairs


(B)mixed economy


(C)partial interference of government


(D)controlled economy


75. Consider some of the following factors

1. Deforestation, a forestation
2. Per capita income and high GOP growth
3. Social discount rate
4. Environmental values

Of the above, sustainable development is related with


(A)Only3 and4


(B)Only2 and4


and4


(D)1,3and4


76. Current literacy rate in,India is about:

half


(B)two-thirds


(C)three-fourths


four-fifths


77. We prefer foreign direct investment because


are short of foreign exchange


(B)they bring foreign experts


(C)these add into domestic investment


(D)they have pressurised us to permit them to come


78. WTO came into being on:

(A)1st January, 1994


(B)1st April,1994


(C)1st January,1995


(D)1st April, 1995


79. Intellectual properties do not consist in

Goodwill


Patents


Copyright


Industrial DeSign


80. Foreign exchange reserves do not consist of:

(A)SDRs


(B)Gold


(C)Foreign Currency Assets


Diamond


81. Estimates of national income in India are made by:


(A)National Accounts Services


(B)National Sample Survey Organization


(C)Planning Commission


Central Statistical Organization


82. Revenue expenditure is defined as

(A)Current expenditure


Non-recurring type of expenditure


(C)Expenditure on creating of assets


Development expenditure


83. Service tax was introduced in

(A)1994-95


(B)2001-02


(C)2004-05


none of the above years


84. Fertilizer subsidy is finally shared between the farmers and the industry, according to NIPFP studies, in the proportion of:


:40


60


50


75


85. The Physical Quality ofLife Index was prepared for the first time by

(A)Morris D. Morris


Higgins


Lewis


(D)Michael P. Todaro


86. According to the Twelth Finance Commission,share of States in the net proceeds of shareable Central taxes has been fixed at


(A)28.5 percent


(B)29.5 percent


(C)30.5 percent


31.5 percent


87. Major item of our imports is:


(A)Electronic goods


Gold


(C)Gems and Stones


Petroleum products


88. Our three major trading partners in foreign trade are now:

UAE and China


U.K. and China


Switzerland and China


U.S., U.K. and Belgium


89. India has recently adopted a policy of costly external loans.


(A)non-payment


pre-payment


(C)post-payment


deferred payment


90. Quota on textiles and clothings have been done away with


(A)since 1st January, 1995


(B)since 1st January, 2000


(C)since 1st January, 2005


(D)since 1st April, 2005


91. Indians introduced new patents regime from:

(A)1st January, 2005


(B)1st January, 2000


(C)1st January, 1994


1st April, 2005


92. The long-term objective of Population Policy 2000 is to achieve stable population by:

(A)2020


(B)2030


(C)2035


(D)2045


93. Which one of the following explains 'Personal income'

(A)Private income -corporate taxes -undistributed corporate profits


(B)Net national income +undistributed profit +foreign income -imports


(C)NNP-depreciation +transfer earnings -taxes


(D)NNP -payment for imports


94. In national income terms, which one of the following plays an important role in the whole economic activity


(A)Level of taxation


(B)Realized investment


(C)Planned saving


(D)Factor mobility


95. The life cycle hypothesis of Albert Ando and Franco Modigliani explains the difference between:

(A)cyclical and long run investment function


(B)current income and current saving


(C)short-run and long run consumption function


(D)current income and current investment


96. the production possibility curve is based on


(A)principle of marginal utility


(B)principle of diminishing returns or increasing cost


(C)downward sloping demand curve


(D)equilibrium position


97. In case of two or more goods a consumer will get maximum satisfaction when:

(A)price is equal to marginal utility of money


marginal utility of goods is equal to price


(C)ratio of marginal utility of goods to price is equal to marginal utility of money


(D)none of the above


98. Principle of maximum satisfaction is also called

(A)law of constant marginal utility of money


(D)law of diminishing returns


(C)law of equi-marginal utility


none of above


99. Concept of diminishing marginal rate of substitution is associated with:

A. Marshal


J.R. Hicks


E.E. Slutsky


J.M. Keynes

100. External economies or diseconomies are outside the control of the firm and these


(A)affect the cost of the firm


do not affect the cost of the firm


(C)increase output


none of the above

101. Monopolistic competition has features of:

(A)monopoly but not competition


(B)monopoly and competition, with features of competition pre-dominating


(C)monopoly and competition with features of monopoly pre-dominating


(D)none of the above


102. As per provisions of the Union Budget 2010-11 consider the following rates of tax:

1. Service tax 10 percent
2. CENVAT 8 percent
3. Peak rate of custom 10 percent
4.Surcharge on corporation tax 7.5 per cent
Of the above:


(A)Only 1 and 3 are correct


(B)Only 3 and 4 are correct


and 3 an: correct


3 and 4 are correct


103. Gresham's law states that:

good money drives bad money out of circulation


bad money drives good money out of circulation


(C)good money promotes good money in the system


(D)bad money promotes good money in the system


104. If there is a balance of payments deficit then in a floating exchange rate system:

(A)the external value of the currency would tend to fall


(B)the external value of the currency would tend to rise


(C)the injections from trade are greater than the withdrawals


(D)aggregate demand is increasing


105. To prevent the external value of the currency from falling, the government might:

(A)reduce interest rates


(B)sell its own currency


(C)buy its own currency with foreign reserves


(D)increase its own spending


106. Consider some of the indicators which were taken into account while calculating PQLI
1. Life expectancy
2. Infant mortality
3. Per capita income
4. Literacy

Of the above:


2 and 4 are correct


3 and 4 arc correct


3 and 4 are correct


All are correct


107. Consider the following:

1. Accumulation of tangible wealth

2. Accumulation of intangible wealth

3. Higher skill and efficiency

4. Higher saving-income ratio

Of the above,

human capital formation includes:



and4


(B)1,2and3


(C)2and3only


(D)3and4 only


108. Which one of the following is NOT included in Human Development Index prepared by the UNDP?

(A)Life expectancy at birth


Educational and health facilities


(C)Adjusted per capita income


Literacy and enrolment percentage

109. Which one of the following is the greatest obstacle to growth and development?

(A)Lack of natural resources I


Large population


(C)Lack of capital


Poor entrepreneurship


110. Which one of the following is NOTa measure of distribution of income

(A)Absolute poverty


Relative poverty


(C)Lorenz curve


Gini coefficient


111. Incidence of poverty in India is estimated on the basis of data provided by:

(A)Planning Commission


National Sample Survey Organization


(C)Central Statistical Organization


National Statistical institute


112. Which one of the following is wrong/irrelevant with public sector in India?


(A)Now only 8 industries arc reserved for public sector


(B)Memorandum ofUnderstanding


(C)Policy of'Navratnas'


(D)Disinvestment of shares


113. which one of the following is NOT correct about Sensex in India?


(A)The term stands for sensitive index


is based on shares one leading companies


deals only in primary capital market


is an indicator of Bombay Stock Exchange


114. In the new series of national income in India the base year is


1999-2000


2000-2001


2001-2002


2002-2003


115. EconomislS make all of the following assumptions about business firms except:


(A)firms are the principal owners of factors of production


(B)firms generally make consistent decisions


(C)firms seek to maximize profits


(D)firms employ factors of production to produce commodities


116. Economic planning in India is:

Physical planning only


Financial planning only


Both and


Totalitarian planning


117. In India, Special Economic Zones (SEZs) are the latest version of!he earlier


(A)Regional Development Zones


Export Processing Zones


(C)Economic Development Zones


Special Category States


118. Minimum support prices of agricultural products are announced by the Government to:

(A)assure reasonable prices to farmers


(B)protect interest of consumers


(C)check inflation


(D)provide cheap food grains to persons below poverty line


119. Green revolution is concerned with

(A)making the country green


increase forest area


increase agricultural production/productivity


mechanise agriculture


120. Which one of the following is NOT relevant with the policy of privatisation?


(A)Disinvestment


(B)Foreign Direct Investment


(C)Public private partnership in infrastructure


(D)Foreign aid