1. Marginal rate of transformation between two goods X and Y is defined as MCX

MRTXY MCX/MCY

MRTXY MRSXY

MRTXY MRSXY PX/PY

None of the above

2. Consider the following statements regarding the expansion path of a firm

I. It shows least cost combination for producing different level of outputs.

II. The input prices remain constant.

Of the above which statement is/are true Answer from the codes given below Codes

Both I and II are true.

Only I is true.

Only II is true.

Neither I nor II is true.

3. The First Fundamental Theorem of Welfare Economics requires

producers and consumers to be price takers

that the economy operate at some point on the utility possibility curve

that there be an efficient market for every commodity

All of the above

4. Which among the following allocation/distribution corresponds to Rawlsian concept of equity

All members of the society receive equal amount of goods.

Maximise the utility of the least well off people.

Market outcomes are most equitable.

Maximise the total utility of all members of the society.

5. Under discriminating monopoly, if the elasticity of demand in market I is 2 and in market II, it is (elasticities being in absolute terms) then the price behaviour of the monopolist will be

To charge a higher price in market I

To charge a higher price in market II

To charge the same price in both the markets

In market charge double the price of that is charged in market II

6. Given the demand function Q 20/P where symbols have their usual meaning, at which price, the elasticity of demand would be unity

20

10

5

All of the above

7. The idea of indicative planning was first adopted in which Five year Plan of India

Second Plan

Fifth Plan

Seventh Plan

Eighth Plan

8. Consider the following statements about Rashtriya Swasthya Bima Yojana (RSBY)

Under RSBY the premium is shared on 85 15 basis by the centre and state governments.

In the case of the North-Eastern States and Jammu and Kashmir, under RSBY the premium is shared in a 90 10 ratio. Which of the statement(s) given above is/are correct

Only

Only

Both

Neither nor

9. Match the following from the lists given below

List I List II

a. National Rural Employment i. 2001 Programme (NREP)

b. Sukanya Samridhi Yojana ii. 1980

c. Food for Work Programme iii. 1983

d. Rural Landless Employment iv. 2015 Guarantee Programme (RLEGP) Select the correct codes

Codes a b c d

iv iii ii i

i ii iv iii

ii iv i iii

(4)iii ii iv i

10. Which of the following has the highest share in India's external debt at the end of March 2015

Rupee debt

NRI deposits

Commercial Borrowings

Export credit

11. R.B.I. can print currency notes upto the value of

RS 25,000

RS 10,000

RS 5,000

RS 1,000

12. Union Budget 2016-17 imposed a 15% surcharge on the income exceeding

RS 2 crore

RS 75 lakh

RS 10 lakh

RS 1 crore

13. 'Paramparagat Krishi Vikas Yojana' aims to boost

Drip Irrigation

Organic Farming

Horticulture Crops

Vegetable Production

14. Classical dichotomy refers to which one of the following

There are two sectors of the economy, namely, agriculture and industry.

Influence of money is not on the real variables like employment and output but on price level.

Savings come only from profits and not from the wages.

All of the above

15. The basic rationale of the theory of is based upon the idea of

size of population

external economies

internal economies

None of the above

16. "Central problem in the theory of economic development is to understand the process by which a community which was previously saving 4 to 5 per cent or less of its national income, converts itself into an economy where voluntary savings is running about 12 to 15 of national income or more." Who among the following economists is attributed with this view

Ragner Nurkse

P.N. Rogenstein-Rodan

Gunnar Myrdal

W. Arthur Lewis

17. In the Harrod-Domar equation g where v is defined as

The value of country's capital stock

Incremental capital output ratio

The change in country's capital stock

None of the above

18. Leibenstein in his critical minimum effort thesis treats population as a factor that is

investment inducing

income generating

market expanding

income depressing

19. Who among the following economists was not associated with the Dependency Theory of Development

Raul Prebisch

T.D. Santos

Andre Gunder Frank

Gunnar Myrdal

20. The saving function used in the neo-classical growth model is a

Classical saving function

Proportional saving function

Differential saving function

Constant saving function

21. Consider the following items in the balance of payment in India I. NRI deposits II. Remittances Which among the above is/are part of the capital account of balance of payments Answer from the codes below Codes

Only I above

Only II above

Both I and II above

Neither I nor II above

22. Which of the following pairs is not correctly matched

Taussig Barter Terms of Trade

Prebisch Deteriorating Terms of Trade

Marshal Offer Curves

Walras Dumping Conditions

23. Which among the following is correct for the discretionary fiscal action

Payment of Unemployment insurance.

Payment of Social Security to the retired individuals.

A managed change in level of Government spending and/or net tax revenues.

Automatic changes in net tax revenues that result from income tax structure.

24. Who among the following called trade as the 'hand maiden' of growth

J. Viner

Irwing B. Kravis

Anne Kruger

J. Bhagwati

25. For the import substitution policy of Latin American countries in 1950's which of the following is/are true

I. It resulted in overvalued exchange rate.

II. It treated development as a natural process. Answer from the codes below

Codes

Both I and II are true.

Only I is true.

Only II is true.

Neither I nor II are true.

26. Consider the following concepts

I. Leontief paradox

II. Linder Hypothesis

Which among the following can be treated as exception to the conclusions of the Heckscher-Ohlin theory Answer from the codes below Codes

Both I and II are exception.

Neither I nor II are exception.

Only I is an exception.

Only II is an exception.

27. Which among the following statements are true for the proposed GST arrangements in India

I. Both Centre and State taxes will be collected at the point of sale.

II. The Centre and State GST will be charged on the manufacturing cost.
Of the above, which statement/s is/are true Answer from the code below Codes

Neither I nor II are true.

Only I is true.

Only II is true.

Both I and II are true.

28. Economists refer to an unanticipated inflation that reduces the real value of outstanding government debt as

Burden of inflation

unanticipated default

seigniorage

the inflation tax

29. A public good is

non-excludable in nature.

nonrival in consumption.

excludable in nature.

a good that public must possess.

Select the correct answer using the codes given below

Both and

Only

Both and

Only

30. A forward-shifted tax will affect

buyers more than sellers

sellers more than buyers

buyers and sellers equally

government revenues negatively

31. Assume B is social benefits, C is social costs, r is the social discount rate, t is the time and T is the life of the investment project. The Net Present Value of a project is Bt Ct Ct Bt T T S S

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32. With reference to the characteristics of 'non-excludability' and 'non-rivalry', "Law and Order" is a classic example of

a negative externality

a positive externality

increasing returns

a public good

33. In the trade cycle theory of J.R. Hicks, long run equilibrium growth is determined by

Technology

Population

Autonomous investment

Both and above

34. Which among the following is not a characteristic of stagflation

High inflation

High unemployment

Low growth

High employment

35. Consider the following statements regarding the consumption function fitted by Simon Kutznets to US economic data for the period 1869 to 1929

I. There appeared no constant terms in the linear consumption function so fitted.

II. The APC and MPC were not significantly different.

Which of the above statement/s is/are true Answer from the codes below

Codes

Both statements are not true.

Only I is true.

Only II is true.

Both statements I and II are true.

36. Which among the following theory/approach does not treat consumption to depend upon expected income

Keynes' approach

Friedman's approach

Life cycle approach

Both and above

37. In an economy, the saving and investment functions are given as
S 100 0.2 y
I 30 0.1 y
What will be equilibrium level of income

1000

900

600

700

38. For the set of observations 100, which one of the following is the most suitable average

Arithmetic Mean

Geometric Mean

Median

Harmonic Mean

39. Which is a random sampling method

Quota Sampling

Purposive Sampling

Systematic Sampling

Cluster Sampling

40. The area between 3s and 3s under standard normal curve is

1

0.9973

0.95

0.6826

41. For a symmetrical distribution skewness is

3

0

1

2

42. Given the following data

Number of observations 100

Arithmetic Mean 180

Variance 324

The coefficient of variation will be

32.4%

10%

18%

1.8%

43. Which of the following satisfies time reversal test but not factor reversal test

Lespeyres

Marshall-Edgeworth

Fisher

Paasche

44. For testing the association of attributes which of the following tests is suitable

t test

F test

x^2 test

Z test



45. Assertion and Reason type. Key to these questions is as follows

Both and are true and is the correct explanation of

Both and are true, but is not the correct explanation of

is true, but is false.

is false but is true.

Assertion In the long period and in perfect competition, a firm earns only normal profit. Reason There are no transport costs in the system.

46. Assertion and Reason type. Key to these questions is as follows

Both and are true and is the correct explanation of

Both and are true, but is not the correct explanation of

is true, but is false.

is false but is true.

Assertion Labour becomes ready to work overtime. Reason Industry pays its employees efficiency wage.

47. Assertion and Reason type. Key to these questions is as follows

Both and are true and is the correct explanation of

Both and are true, but is not the correct explanation of

is true, but is false.

is false but is true.

Assertion The principle of progressive taxation is a generally accepted state policy. Reason Progressive taxation does not affect distribution of income and wealth.

48. Assertion and Reason type. Key to these questions is as follows

Both and are true and is the correct explanation of

Both and are true, but is not the correct explanation of

is true, but is false.

is false but is true.

Assertion Stagflation can develop due to market imperfections. Reason Wage flexibility can cause stagflation.

49. Assertion and Reason type. Key to these questions is as follows

Both and are true and is the correct explanation of

Both and are true, but is not the correct explanation of

is true, but is false.

is false but is true.

Assertion Friedman treats money as a Luxury good. Reason It serves as a medium of exchange.

50. Assertion and Reason type. Key to these questions is as follows

Both and are true and is the correct explanation of

Both and are true, but is not the correct explanation of

is true, but is false.

is false but is true.

Assertion Moving average method is a method of trend estimation.

Reason Regression method is used to estimate fluctuations in time series.