Exam Details

Subject economics
Paper paper 2
Exam / Course ugc net national eligibility test
Department
Organization university grants commission
Position
Exam Date June, 2010
City, State ,


Question Paper

1. Marshallian Theory of consumer's behaviour is based on

Hypothesis of additive utilities.


Hypothesis of independent utilities.


Both and


Weak ordering.



2. Consider the following statements

Income effect is positive in case of normal goods.


Income effect is zero in the case of superior goods.


All Giffen goods are inferior goods, but not all inferior goods are Giffen goods.

Income effect is negative in case of inferior goods.

Which of the above is /are correct


only


only





and



3. A profit maximising firm will stop production in the short run if price is

less than the average variable cost


less than the marginal cost


less than the average total cost


equal to the average total cost



4. Consider the following statements

When MC curve is below the AC curve, then the AC curve must be rising.


When MC curve is above AC curve, then AC curve must be falling.


MC curve intersects AC curve at the point where AC is constant.
Which of the above statement(s) is/are correct
only
and
and
and


5. With which of the following is the doctrine of excess capacity in the long run not associated

Monopoly


Oligopoly


Monopolistic competition


Perfect competition



6. To derive the demand curve for a firm for one of the several variable factors, the following must be considered

The external effect of the change in the factor price


The internal effect of the change in factor price


Monopolistic exploitation


Monopsonistic exploitation



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7. In an Edgeworth production box, the only possible positions of equilibrium is

the isoquants are tangent to one another


the isoquants intersect each other


the marginal products of the inputs are equal


both and



8. In case of Keynes' Psychological Law of Consumption Function, which one of the following statements is incorrect

As disposal income increases, consumption also increases, but less than proportionately.


Marginal propensity to consume is positive but less than unity.


As disposable income increases, average propensity to consume falls, and vice versa.


Average propensity to consume equals marginal propensity to consume at all levels of income.



9. Which one of the following statements in case of balanced budget multiplier is incorrect

The value of balanced budget multiplier is unity in case of autonomous taxes.


The value of balanced budget multiplier is less than unity in case of proportional taxes.


The value of balanced budget multiplier is always unity no matter whether the taxes are autonomous or proportional.


The value of Government expenditure multiplier is more than the value of tax multiplier.



10. Consider following statements
1.
Credit creation varies inversely with Cash Reserve Ratio (CRR).

2.
Credit creation varies positively with Cash Reserve Ratio (CRR).

3.
Bond price and interest rate are inversely related.

4.
Bond price and interest rate are


positively related. Which of the above statements is correct

1 and 3 1 and 4


2 and 3 2 and 4



11. Given that C Currency with the public, DD Demand Deposits, TD Time Deposits and R Cash balances with the Commercial Banks, then high powered money is defined as

C+DD


C+R


C+TD


C+DD+TD



12. The premise that there exists inverse relationship between money wage inflation and unemployment was originally given by

A.W. Phillips


Milton Friedman


Philip Cagan


Robert Lucas



13. Based on accelerated-multiplier interaction, whose theory of trade cycles generates constrained cycles

Hicks Kaldor


Samuelson Baumol



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×.úŸ´ÖîÖÃßÆü

1 †Ö¸îü 3 1 †Ö¸îü 4


2 †Ö¸îü 3 2 †Ö¸îü 4



11. µÖÆü פü‹ ÆüÖê-Öê ¯Ö¸ü ×.ú C »ÖÖ.êÖÖë .ú ¯êÖÖÃÖ .ú¸êü-ÃÖß; DD ´ÖÖÑ.Ö TD ÃÖÖ¾Ö׬Ö.ú †Öî¸ü R ¾ÖÖ×.ÖÛ•µÖ.ú ²Ö.úïÖë .ú ¯êÖÖÃÖ -Ö.ú¤üß ¿ÖÂêÖ Æüî, ŸÖÖê ˆ""Ö ÃŸÖ¸üßµÖ (ÆüÖ‡Ô ¯ÖÖ¾Ö›üÔ) ´Ö¦ãüÖ .úß ¾µÖÖ.µÖÖ ‡ÃÖ ŸÖ¸üÆü ÃÖê .úß •ÖÖŸÖß Æüî:
C DD
C+R

C TD


C DD TD



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‹. ›ü²»Ö. ×±ú×»æÖ¯Ö


×´Ö»™ü-Ö ±Ïúß›ü´Ö-îÖ


×±ú×»Ö¯Ö .îú.Ö-êÖ


¸üÖò²Ö™Ôü »Ö.úæÖÃÖ



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×ÆüŒÃÖ .úÖ»›ü¸ü


ÃÖî´µÖã»ÃÖ-Ö ²ÖÖˆ´ÖÖ»òÖ



14. Which of the following statements is incorrect

Monetary Policy is relatively ineffective, when the interest elasticity of investment is low (IS curve is steep)


Monetary Policy is relatively ineffective, when the interest elasticity of demand for money is high (LM curve is flat)


Fiscal policy is relatively ineffective, when interest elasticity of demand for money is low (LM curve is steep)


Fiscal policy is ineffective, when interest rate elasticity of investment is low (IS curve is steep)



15. The practices of transfer pricing in the open economy is resorted to by

Mutual Funds


Institutional Investors


Multinational Corporations


Private Banks



16. The warranted rate of growth as defined in Harrod's Model is
S/y 1/k
S
y
1



k

none of the above


17. The Human Development Index was first developed by

UNDP IMF


UNICEF UNCTAD



18. Which one of the following is not an instrument of fiscal policy

Public Revenue


Public Expenditure


Public Borrowing


Cash Reserve Ratio



19. Who is Director General of WTO

Alan Greenspan


Lamy Pascal


William Diamond


Eugine Black



20. The role of the State under globalization is

zero maximum


minimum neutral



21. Which one of the following is the most important source of revenue of State Governments in India

Land Revenue


Sales Tax


Stamps and Registration Fees


State Excise Duties



22. Equity in Taxation can best be achieved by applying the principle of

Equal Absolute Sacrifice


Benefit


Equal Marginal Sacrifice


Equal Proportional Sacrifice



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15. .Öã»Öß †£Ö¾µÔÖ¾ÖãÖÖ ´Öë ÆüßÖÖÓŸÖ¸ü.Ö .úß´ÖŸÖ ×-Ö¬ÖÖÔ¸ü.Ö (™ÒÖÓÖ±ú¸ü ¯Ï‡ØÃ.) .úê .êüÖ¸üÖ Ö¾ÖüÖ¸ü ´Öë
üÃÖÖÖÖÖú«¾µÆ»ÖÖµÖÖ •ÖÖŸÖÖ Æüî:

´µÖ"µãÖ†»ãÖ ±ú›ÓüËÃÖ


ÃÖÓãÖÖ.ÖŸÖ ×-Ö¾Öê¿Ö.úŸÖÖÔ


²ÖÆãü¸üÖ™üÒßµÖ ×-Ö.Ö´Ö


×-Ö•Öß ²Öï.ú



16. ÃÖ¾ÓÖרéü .úß ¾ÖÖÓ×"ûŸÖ ¤ü¸ü .úÖ Æüî¸üÖê›ü ´ÖÖ›òü»Ö ÃÖ´Öß.ú¸ü.Ö, .êú «üÖ¸üÖ ×-Öºþ×¯ÖŸÖ ÆüÖêŸÖÖ Æîü S/y



1/k
S



y
1



k
ˆ¯ÖµÖ㌟ÔÖ ´Öë ÃÖê .úÖê‡Ô -ÖÆüà

17. ‹"Ö.›üß.†Ö‡Ô. ÃÖ"æÖ.úÖ.ú ÓÃÖ¾ÖÔ¯Ö£ÏÖ´Ö ×.úÃÖ-Öê ×¾Ö.ú×ÃÖŸÖ ×.úµÖÖ
UNDP
IMF

µÖæ×-ÖÃÖê±ú


†Ó.ú™üÖ›ü (UNCTAD)



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ÃÖÖ¾ÖÔ•Ö×-Ö.ú †ÖµÖ


ÃÖÖ¾Ö•ÔÖ×-Ö.ú ¾µÖµÖ


ÃÖÖ¾ÖÔ•Ö×-Ö.ú Šú.Ö


-Ö.ú¤üß ×¸ü•Ö¾ÌÖÔ †-Ö¯ãÖÖŸÖ



19. ×¾Ö¿¾Ö ¾µÖÖ¯ÖÖ¸ü ÃÖÓ.Öšü-Ö .úÖ ›üÖµÖ¸üꌙü¸ü •Ö-Ö¸ü»Ö .úÖ-îÖ Æîü

‹»Öê-Ö .ÖÏß-ÖïÖÖ-Ö


»Öî´Öß ¯ÖÖÃ.ú»Ö


×¾Ö×»ÖµÖ´Ö ›üÖµÖ´Ö.›ü


µÖæוÖ-Ö ²»Ö.ú ê



20. ¾Ö¿¾Öß.ú¸üÖ êÓÖ.ŸÖ øü.úÖ¸ü .úß ³æÖ.úŒµÖÖî..ú†ŸÖÔÖÖ×´Ö ÆüÖêŸÖß Æüî?

¿Öæ-µÖ †×¬Ö.úŸÖ´Ö


´Ö¬µÖ´Ö



21. ³ÖÖ¸üŸÖ ´Öë ¸üÖ•µÖ ÃÖ¸ü.úÖ¸ü .úê¸üÖ•ÖÃ¾Ö .úÖ ÃÖ¾ÖÖ׬ÔÖ.ú ´ÖÆü¢¾ÖÖ.ÖÔÄÖÖÖ×-Ö´-ÖÓÖ ÖÃê.úÖ-ÖÃÖÆî?¯æêŸÖ×.úŸ´ëÖîÖü

³Öæ¸üÖ•ÖþÖ


×¾Ö.ÎúµÖ .ú¸ü


Ùîü´¯Ö ‹¾ÖÓ ¯ÖÓ•Öß.ú¸ü.Ö ±úßÃÖ


¸üÖ•µÖ ˆŸ¯ÖÖ¤ü ¿Öã


».ú

22. ×.úÃÖ ×ÃÖ¨üÖ-ŸÖ .úÖ †-Ö¯ãÖϵÖÖ.êÖ .ú¸ü-Öê ÃÖê .ú¸üÖ¸üÖê¯Ö.Ö ´Öë ÃÖ¾ÖÖÔ׬Ö.ú ÃÖ´ÖŸÖÖ ¯ÖÏÖ¯ŸÖ .úß •ÖÖ ÃÖ.úŸÖß Æîü

ÃÖ´Ö ×-Ö¸ü¯Ö.êÖ ŸµÖÖ.Ö


»ÖÖ³Ö


ÃÖ´ÖÖ-Ö ÃÖß´ÖÖ-ŸÖ ŸµÖÖ.Ö


ÃÖ´ÖÖ-Ö †Ö-Öã¯ÖÖןÖ.ú ŸµÖÖ.Ö



23. Which of the following is correct measurement of fiscal deficit in India

Excess of total revenue expenditure over total revenue receipts.


Excess of total expenditure over total revenue receipts plus non-debt capital receipts.


Excess of total expenditure over total receipts.


Excess of total expenditure over total interest payments.



24. Marginal cost of a pure public good is

zero or close to zero


one


and both


very high



25. Which of the following is not one of the objectives of the tax reforms in India

Reduction in multiplicity of custom duty rates


Improving tax compliance


Widening the tax-base


Suggesting ways to increase the share of indirect taxes in total tax revenue



26. An excise duty is fully borne by the buyers, when price elasticity of demand for the product is

.


0


1


between 1 and .



Note In the following Question No. 27, there are two statements, one is Assertion and the other Reason You have to examine these carefully and select the answer from the codes given below
27. Assertion Indirect taxes promote inequalities in the distribution of income.
Reason The poor bear more burden of indirect taxes.
Codes

is true but is false.


Both and are true and

is the correct explanation of


is false but is true.


Both and are false.



28. Factor Endowment Theory of International Trade is given by

Heckscher-Ohlin


Haberler


Raul Prebisch


Jagdish Bhagwati



29. The concept of single factoral and double factoral terms of trade have been given by

Haberler


Jacob Viner


Snider


Scammel



30. The equation of foreign trade multiplier is

Rupee Dollar Ratio


mpm mps


Tax GDP Ratio
1





mpm mps

23. ³ÖÖ¸üŸÖ ´Öë ¸üÖ•Ö.úÖêÂÖßµÖ .úÖ ÃÖÆüß ´ÖÖ¯Ö ×-Ö´-ÖÖÓÖ ÖëÃê.úÖ-ÖÃÖ î?×.úŸ´ÖîÖÆü

.ú»ãÖ ¸üÖ•ÖÃ¾Ö ¯ÖÏÖÛ¯ŸÖµÖÖë .úß ŸÖã»Ö-ÖÖ ´Öë .ãú»Ö ¸üÖ•ÖÃ¾Ö ¾µÖµÖ .úÖ †Ö׬֌µÖ …


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†Ö׬֌µÖ …


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æÖ-µ.ú ×-.ú™
‹.ú

ŸÖ£ÖÖ ¤üÖê-ÖÖë


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Ö ´ë Ö¬êÖ×.úŸ´ë

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.úÖ-îÖ ÃÖÖ -ÖÆüà Æüî?

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ÖÖ¿».ú¤üë ÆãÖ.ú´


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26. •²Ö ×.úÃß ¾Ößã .êÖ´ÖÑÖ .úß .úß´Ÿ»Ö"êÖÖÖÖú×»‹Ö.ÖÖ Ö×-Ö´-ÖÖÓÖÆüêÖßÆ,ŸÖÖˆŸ¯Ö¤üÖ ÖãÖ¯æüÖ
×.úŸÖŸüîê Ö-¿».ú.úÖ¸³ÖÖ¸ü .ÎúŸêÖÖ ¾ÖÆü-Ö .ú¸üŸÖê

.


0


1


1 †Ö¸îü . .ú ²êÖß"Ö
×.úŸÖ¿-ÃÓÖ


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†Ö¸îü ‹.ú ŸÖ.Ôú פüµÖÖ Æüî… ‡ÃÖê ¬µÖÖ-Ö¯æÖÔ¯Öüß..Ö .ú¸üêÖß"Öפü‹ .úÖ›üÖë Ãê
Ö¾.ú ¸Ö.ú-ê êÖˆ¢Ö¸ü .úÖ .úßו֋
†×³Ö.ú£Ö-Ö †¯ÖŸµÏÖ.Ö .ú¸ü †ÖµÖ .úê×¾ÖŸÖ¸ü.Ö ´Öë †ÃÖ´ÖÖ-ÖŸÖÖ ²ÖœÍüÖŸÖê Æüï…
ŸÖ.Ô: †¯ÖŸµÖ.Ö .ú¸üÖ.úÖ ³ÖÖü
ú ¯Ö¸ü •µÖÖ¤üÖ ¯Ö›ÍüŸÖÖ Æîü …
.úÖ›êü

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†Öî¸ü ¤üÖê-ÖÖë ÃÖŸµÖ Æïü ŸÖ£ÖÖ

.úß ÃÖÆüß ¾µÖÖ.µÖÖ Æüî…


†ÃÖŸµÖ Æîü, ¯Ö¸ü-ŸÖã ÃÖŸµÖ Æîü …


†Ö¸îü ¤üÖ-êÖÖë †ÃÖŸµÖ Æüï…



28. †ŸÖ¸üÖ™ÒßµÖ ¾µÖÖÖÖ¸.úÖ îü¸ü­‹-Ö›üˆ´ëüÓÔü¯ü ±úŒ™ÖÖ™×ÃÖ¨üÖ-ŸÖ ×.úÃÖ-Öê ¯ÖÏן֯ÖÖפüŸÖ ×.úµÖÖ

ÆêüŒÃÖ"Ö¸ü­†ÖÆêËü×»Ö-Ö


Æîü²Ö¸ü»Ö¸ü


¸üÖò»Ö­¯ÖêÏײֿÖ


•Ö.Ö¤üß¿Ö ³Ö.Ö¾ÖŸÖß



29. ¾µÖÖ¯ÖÖ¸ü .úß ¿ÖŸÖÖí .úß ‹.ú»Ö .úÖ¸ü.ú ‹¾ÖÓ ×«ü.úÖ¸ü.ú
†¾Ö¬ÖÖ¸ü.ÖÖ‹Ñ ×.úÃÖ-Öê ¯ÖןÏÖ¯ÖÖפüŸÖ .úß

Æîü²Ö¸ü»Ö¸ü •Ö.úîÖê²Ö ¾ÖÖ‡-Ö¸ü


Ã-ÖÖ‡›ü¸ü Ã.êú´Ö»Ö




30. ×¾Ö¤üê¿Öß ¾µÖÖ¯ÖÖ¸ü .Öã.Ö.ú .úÖ ÃÖ´Öß.ú¸ü.Ö Æîü

¹ý¯ÖµÖÖ ›üÖò»Ö¸ü †-Öã¯ÖÖŸÖ


mpm mps


.ú¸ü ÃÖ.ú»Ö 'Ö¸êü»Öæ ˆŸ¯ÖÖ¤ü †-Öã¯ÖÖŸÖ


1
mpm mps

31. Trade Policy Reforms in India include

disinvestment


lowering of custom duties


increasing SLR


reduction in direct and indirect taxes



32. Which of the following countries is a member of the ASEAN Group

China India


Sri Lanka Thailand



33. The meeting of G-20 in 2009 was held at

London


Paris


Geneva


New Delhi



34. From a bag containing 6 red, 4 green and 5 black balls, one ball is drawn at random, find the probability that it is either red or green.
6C +4C
1 1

15C1
6



15
4



15 6C×4C×15C

1 1

1

35. Match list I with list II and select the answer from the codes given below
List- I List- II
Total area 1. ß=0
1 under
normal curve

Square of 2. 1 standard deviation


Symmetric 3. distribution


Co-efficient 4. variance of variation





Codes


3 4 1 2


2 4 1 3


4 1 2 3


1 2 3 4



36. The area between and under standard normal curve is

1 0.9973


0.95 0.6826



37. If the co-efficient of determination is
0.12 and one of the regression co­efficients is 0.3 what is the value of the other regression co-efficient

0.4 0.36


0.9 0.15



38. For a large sample, s x rxy 0.8 the standard error of b .
xy

1.1 2.1


1.2 1.6



39. The mean and variance of a standard normal variate respectively

0,0 0,1


1,0 1,2



31. ³ÖÖ¸üŸÖ ´Öë ¾µÖÖ¯ÖÖ¸ü -Öß×ŸÖ ÃÖ´²Ö-¬Öß ÃÖã¬ÖÖ¸üÖë ´Öë ÃÖ´ÖÖ×¾Ö™ü Æüî

×¾Ö×-Ö¾Ö¿êÖ


Ãß´Ö Öãë.úÖ.ú´.ú¸ü-Ö

ÖÖ¿».úÖê Ö Ö


‹ÃÖ.‹»Ö.†Ö¸ü. (ÃÖÖ×¾ÓÖ׬Ö.ú ŸÖ¸ü»ÖŸÖÖ

†-Öã¯ÖÖŸÖ) ´Öë ¾Öéרü


¯ÖŸµÏÖ.Ö ‹¾ÖÓ †¯ÖŸµÏÖ.Ö .ú¸üÖë ´Öë .ú´Öß



32. ×-Ö´-ÖÖÓÖ ´ë Öê .úîÖ ÖÖ ü¿Ö Ö×ÃÖÖ-Ö
×.úŸÖÃÖ-äê†Öµ(ASEAN) ÃÖ´ÖæÆü .úÖ ÃÖ¤üÃµÖ Æîü

³ÖÖ¸üŸÖ


ÁÖß»Ö.úÓÖ £ÖÖ‡»Öï›ü



33. G­20 .úÖ 2009 .úÖ ÃÖ´´Ö»êÖ-Ö .úÆüÖÑ †ÖµÖÖוêÖŸÖ ×.úµÖÖ .ÖµÖÖ

¯Öê׸üÃÖ


•Ö-êÖ¾êÖÖ -Ö‡Ô ×¤ü»»Öß



34. 6 »ÖÖ»Ö, 4 Æü¸üß †Ö¸îü 5 .úÖ»Öß .Öë¤üÖë ÃÖê ³Ö¸êü £Ö»îÖê ´Öë ÃÖê ‹.ú .Ö¤ëü µÖÖ¥üÛ""û.ú œüÓ.Ö ÃÖê ×-Ö.úÖ»Öß •ÖÖŸÖß Æîü … µÖÆü .Ö¤ëü »ÖÖ»Ö µÖÖ Æü¸üß Æîü ‡ÃÖ ŸÖ£µÖ .úß ¯ÖÖÏ×µÖ.úŸÖÖ .úßו֋ …
6C+4C
1 1

15C1
6





15
4
15 6C× 4C× 15C

1 1

1

35. ÃÖ"æÖß­I .úÖ ÃÖæ"Öß­II ÃÖê ×´Ö»ÖÖ-Ö .úßו֋ ŸÖ£ÖÖ -Öß"Öê פü‹ .úÖ›êüÖë ÃÖê ˆ¢Ö¸ü .úÖ .úßו֋
ÃÖæ ÃÖ"Öß­II
"Öß­I æ

ÃÖÖ´ÖÖ-µÖ ¾Ö.Îú .úê


1. ß1=0
†ÓŸÖ.ÖÔŸÖ .ãú»Ö .Ö¡êÖ

¯ÖÏ´ÖÖ¯Ö ×¾Ö"Ö»Ö-Ö .úÖ ¾Ö.ÖÔ 2. 1


ÃÖÛ´´ÖŸÖ ×¾ÖŸÖ¸ü.Ö 3.



×¾Ö"Ö»Ö-Ö .Öã.ÖÖ.ú Ó4. ¯ÖÃÏÖ¸ü.Ö

.úÖ›êü


3 4 1 2


2 4 1 3


4 1 2 3


1 2 3 4



36. ¾ÖÎêÓÖ.ŸÖ Öîü Ö.úÃÖ.ú.ú†ŸÖÔ3 †¸.ú ²êÖß"Ö .Öê¡Ö Æîü

1 0.9973


0.95 0.6826



37. µÖפü ×-Ö¬ÖÖ¸Ôü.Ö .Öã.ÖÖ.ú Ó0.12 Æîü †Öî¸ü ‹.ú ¯ÖÏŸÖ߯Ö.Ö´Ö-Ö .Ö.ãÖ.ú 0.3 Æüî, ŸÖÖê ¤üæÃÖ¸êü ¯ÖŸÏÖ߯Ö.Ö´Ö-Ö .Ö.ãÖ.ú .úÖ ´Ö»µæÖ ŒµÖÖ Æîü

0.4 0.36


0.9 0.15



38. ‹.ú ²Ö›üÍê¯ÖןÏÖ¤ü¿ÖÔ ´Öë s x rxy 0.8 Æîü, ŸÖÖê b xy .úß ´ÖÖ-Ö.ú ¡Öã×™ü ÆüÖê.Öß

1.1 2.1


1.2 1.6




39. ´ÖÖ-Ö.ú ¯ÖÃÏÖÖ´ÖÖ-µÖ "Ö¸ü .úê´ÖÖ¬µÖ †Ö¸îü ¯ÖÃÏÖ¸ü.Ö
.ú´ÎÖ¿Ö: Æüï

0 1


0 2



40. The algebraic sum of deviations of a given set of observations from their arithmetic mean is

8 1


0



41. Unbalanced regional growth in India is due to

unequal budgetary support by Central Government to different States


spatial distribution of industries


inadequate development infrastructure in some States


all of above



42. In HDI, which one of the following is not taken as an indicator

Life expectancy


Literacy


GDP per capita


Per capita food consumption



43. The Union Budget is presented under which Article of the Constitution in India

110 111


112 122



44. Financial Sector reforms in India consist of

Lowering down of CRR and SLR


Entry of private firms in insurance sector


Deregulation of rate of interest


All of the above



45. New Agricultural strategy has

widened the gap between the rich and the poor farmers


increased production of only few crops


led to an increase in regional disparities


all of the above



46. Match the list I with the list II and select the answer from the codes given below
List-I List-II

Theory of Harvey big push Leibenstein


Unlimited Lewis supply of labour


Trade as an (III) Emery engine of growth


The Kuznets concept of economic growth





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