1. A demand curve, which is parallel to the horizontal axis, showing quantity, has the price elasticity equal
Zero

Infinity

Less than one

One


2. Although a monopolist can charge any price he likes, but does not charge a higher price than his equilibrium price because

higher price means fall in total revenue.

higher price can be charged only on that segment of firm's demand curve which is price inelastic implying that the marginal revenue will be negative.

it is inconsistent with profit maximization goal under monopoly.

marginal cost will be negative over the relevant range of output.


3. Which of the following conditions specify the least cost-output combination

PL/Pk MRTS

PL/Pk MPL/MPk

MPk/MPL dL/dK

All the above


4. Which of the following is not relevant in case of Sweezy's oligopoly model

A price cut by a firm is followed by the price cut by the rival firms.

Price hike is not followed by the rival firms.

Firms do not react to price change made by one of the firms.

Firms react to all kinds of price changes made by the rival.


5. Quasi rent is the reward to a factor of production which is

Economic rent in the short run but transfer earnings in the long run.

Transfer earnings in the short run.

Transfer earnings both in the short and long run.

Economic rent both in the short and long run.


6. According to the Loanable Funds Theory, the rate of interest is a function of

Investment

Desire to hoard money

Quantity of money

All the above


7. While analyzing the marginal productivity theory of distribution, Clark gave more emphasis on.

Demand for Labour

Supply of Labour

Both Demand as well as Supply of Labour

Profit Maximization

8. A general equilibrium is defined as a state in which all economic units maximize their respective objective functions, all prices are simultaneously in equilibrium and all markets are cleared. The statement is

Correct

Not correct

Perfectly correct

None of the above


9. According to Mundell in an optimum currency area, the achievement of internal and external balance is possible through

Capital flows

Inflow of funds from abroad

Official development assistance

The mobility of factors


10. An agreement between two countries to maintain a free trade area, a common external tariff, free mobility of capital and labour and degree of unification in government policies and monetary policy is called

Common market

Free trade area

Economic union

Customs union


11. The core principles of multi lateral trading system are I. Non-Discrimination II. Reciprocity III. Protectionism IV. Domestic Safeguards Select the right code from the list given below

II and IV are correct.

II and III are correct.

II, III and IV are correct.

I and II are correct.


12. Assertion Many developing countries contend that labour standards constitute a barrier to free trade.
Reason Their competitive advantage in the global economy is cheap labour.

Both and are correct but is not the correct explanation of

Both and are true and is the correct explanation of

is false but is true.

is true but is false.


13. Arrange in order the WTO ministerials

I. Geneva
II. Doha
III. Hong Kong
IV. Seattle

II, IV, III, I

III, IV, II

IV, II, III, I

IV, II, III


14. What does Hedging mean

The acceptance of a foreign exchange risk.

The covering of a foreign exchange risk.

Foreign exchange speculation.

Foreign exchange arbitrage.


15. In which terms a unit of SDR was originally denominated

The world marked value of U.S. Dollar

The gold value equivalent of one US Dollar

The Pound-Sterling

The German Mark


16. Which of the following is an adverse effect of Euro Currency Market

International Capital Market

Decrease in World's Nominal Money Supply

Integration of International Capital Markets

Meeting BOP Deficit


17. Employment Guarantee Scheme was first introduced in

Gujarat

Madhya Pradesh

Maharashtra

Tamil Nadu


18. According to Weber's Theory of Location, the important factors influencing location are
1. Transport Cost
2. Land Cost
3. Labour Cost
4. Innovation Cost Choose the correct code

1 2

2 3

1 3

1 4


19. Given below are two statements, one labelled as assertion and the other labelled as Reason

Assertion India's Public sector helped in the development of a sound industrial base.
Reason Public sector is under State control. The role of State in formulating appropriate policies and providing financial and other support has helped the public sector.

is correct, but is wrong.

Both are correct.

is wrong but is correct.

Both and are wrong.

20. Match 'labour force' with the appropriate item from amongst the following

Work force

All educated

Employed Unemployed

All rural workers


21. There are four phases of a business cycle. Identify the correct sequence of the occurrence of these phases

Recovery, Recession, Expansion, Depression

Recovery, Expansion, Depression, Recession

Depression, Expansion, Recession, Recovery

Recovery, Expansion, Recession, Depression


22. The production of finished steel in India, since independence, has increased over

10 times

20 times

30 times

50 times


23. The concept of 'Effective Revenue Deficit' has been used for the first time in the Union Budget for

2009 10

2010 11

2011 12

2008 09


24. Which tax is likely to contribute maximum to the Central Government tax revenue during the year 2011 12

Central Excise Duty

Customs Duties

Income Tax

Corporate Tax


25. Gross fiscal deficit of the State Governments is financed by
I. Market Borrowings
II. Printing of Currency
III. Loans from the Central Government
IV. External Borrowings Find the correct answer from the given code Codes

II and III are correct.

II, III and IV are correct.

I and III are correct.

II and IV are correct.


26. Match the items of List I with the items of List II from the given code

List I List II
i. Canons of 1. U.K. Hicks Taxation
ii. Canons of 2. Adam Public Smith Expenditure
iii. Effective 3. Findlay incidence of Shirras Tax
iv. Benefits 4. Erik received Lindahl approach of Public Expenditure

Codes i ii iii iv

2 3 1 4

1 2 3 4

2 3 4 1

4 1 2 3


27. Assertion During the financial year 2011-12, the Central Government is not likely to achieve the target of raising 40,000 crores through disinvestment policy.

Reason Policy of increased public borrowings to bridge the fiscal gap is justified. In the context of the above two statements, which one is correct from the given Codes

Both and are correct and is the correct explanation of

Both and are correct but is not the correct explanation of

is correct but is incorrect.

is correct but is incorrect.

28. Arrange the following Reports in chronological order from the given codes

I. Direct taxes Enquiry Committee Final Report
II. Final Report on Rationalizing and Simplification of the Tax Structure
III. Indian Tax Reforms-Report of a Survey
IV. Taxation Enquiry Commission Codes

IV, III, II, I

II, III, IV

III, IV, II

II, III, IV

29. The most important characteristics of a federation is

Center's Supremacy over States

Non-correspondence between the functions and resources of the Center and State Governments.

Perfect match between the functions and resources of the Central and State Governments.

None of the above


30. In the equation C C0 C1 Yd, where C is planned consumption expenditure, Yd is disposable income, C0 is intercept or autonomous consumption (value of C when disposable income is zero), and C1 is marginal propensity to consume; which of the following is the endogenous variable

C0

C1

C1 Yd

None of the above
31. Which of the following statement is false

In dynamic multiplier, there is lagged relationship between consumption and disposable income.

The dynamic multiplier process can be presented as a decreasing geometric series of change in income in the following period.

A major portion of the multiplier effect is realized in fewer periods when the marginal propensity to consume is smaller.

A major portion of the multiplier effect is realized in fewer periods when the marginal propensity to consume is larger.


32. According to which of the following hypotheses, consumption is irreversible

Absolute Income Hypothesis

Relative Income Hypothesis

Permanent Income Hypothesis

Life Cycle Hypothesis


33. Which of the following models of business cycle generates constrained cycles

Samuelson's model

Hick's model

Kaldor's model

All of the above


34. Which of the following is not an assumption of Harrod's model of growth

The desired capital output ratio is constant.

Savings are a constant proportion of real income in the economy.

The labour force grows at some exogenously determined constant exponential rate.

Factor prices are flexible in the long run.


35. Match the statements given in Group A with their propounders in Group B

Group A (Statements) Group B (Propounders)
i. Velocity of money 1. Keynesiansis a stable function of its determinants.
ii. Velocity of 2. Monetarists money is anunstable function of its determinants.
iii. Velocity of 3. Classicals money is aconstant, and does not dependon income and interest rate.

Choose the correct code

Codes i ii iii

2 3 1

1 2 3

2 1 3

3 2 1


36. A.W. Phillips' wage-inflation unemployment trade off is based on

Static expectations hypothesis

Adaptive expectations hypothesis

Extrapolative expectations hypothesis

Rational expectations hypothesis


37. Suppose the money supply and the price level are constant, and the demand for money is a function of income and interest rate. When the income level increases, there is

an increase in the quantity of money demanded and an increase in the rate of interest.

an increase in the quantity of money demanded and a decrease in the rate of interest.

a decrease in the quantity of money demanded and a decrease in the rate of interest.

a decrease in the quantity of money demanded and an increase in the rate of interest.


38. Fiscal reform measures in India included

I. Increasing Tax-GDP ratio
II. Expenditure Management
III. Managing revenue deficit and fiscal deficit
IV. Increasing liquidity in the economy Find the correct combination from the given codes

II and III are correct.

I and IV are correct.

II, III and IV are correct.

III and IV are correct.


39. During the Tenth Five Year Plan, some of the following things were experienced I. Services sector witnessed the highest growth rate. II. Agriculture experienced the lowest growth rate. III. Rate of growth in the industrial sector was negative. Which of the aforesaid statements are correct

II and III are correct.
I and II are correct.
I and III are correct.
II and III are correct.


40. Assertion Employment growth in the organized sector (both public and private combined) has increased during the period 1994-2008.

Reason There has been relatively faster employment growth in the private sector.

Codes

Both and are correct and is the correct explanation of

Both and are correct but is not the correct explanation of

is correct but is incorrect.

is incorrect but is correct.


41. According to the provisional figures for 2011 census, which of the following States has the lowest child sex ratio both in rural and urban areas

Uttar Pradesh

Kerala

Jammu and Kashmir

Haryana


42. Of the following, which sector experienced maximum growth rate at 2004-05 prices in India during 2009-10

Trade, hotels, transport and communication

Manufacturing, construction, electricity, gas and water supply

Financing, insurance, real estate and business services

Agriculture, forestry, fishing, mining and quarrying


43. In which of the following years, gross domestic savings as a percentage of GDP was the highest

2009 10

2008 09

2007 08

2006 07


44. Growth process resulting into broad based benefits and providing equality of opportunity to all is referred to as

Faster growth

Inclusive growth

Exclusive growth

Sustained growth


45. Which of the following plans witnessed the highest growth rate in India

Ninth Plan

Eighth Plan

Tenth Plan

Seventh Plan


46. For any pair of variables X and two regression equations-one regression of Y on X and other regression of X on Y exist because

I. Tangent of the angle made by two regression equations with each other determines the coefficient of correlation. II. Regression model does not help in the identification of dependent and independent variables of the equation.
III. Regression and correlation coefficients represent the co-variation of the two variables.
IV. Regression equation represents jointly the value of X and Y. Select the right code from the following as the answer to the question

Codes

I and II are correct.

I and III are correct.

I and IV are correct.

III and IV are correct.


47. Which of the following are not associated with the Leontief's Static Model

I. Final demand is a stochastic vector.
II. Reciprocal of the Perron-Frobinius root is the maximum growth rate.
III. Input coefficients are the fixed technological parameters.
IV. A WL P Select the correct code from the following

II, III

III, IV

III

II, IV


48. If X1 P2) and X2 then the two commodities are substitutes if

(.X1/.P2) (.X2/.P1) 0

(.X1/.P2) (.X2/.P1) 0

(.X1/.P2) (.X2/.P1) 0

(.X1/.P2) (.X2/.P1) 0


49. In the context of simultaneous equations econometric models, consider the following statements

I. Identification is a problem to be dealt with before estimation.
II. Order condition is necessary but not a sufficient condition of identification.
III. Two stage least squares method of estimation gives consistent estimators if the equation is under identified.
IV. Under indirect least squares method, least squares method is applied to the reduced form equations. Use the following code to answer the question

I and II are correct but III and IV are incorrect.

II, III and IV are correct.

II and III are correct but IV is incorrect.

II and IV are correct but III is incorrect.


50. If rxy 0.3, match the items in list-I with the items in list-II

List I List II
i. to 1. 0.3
ii. Correlation 2. Limits of coefficient correlation
between coefficient and Y
iii. The Square of 3. 0.3 Correlation Coefficient
iv. Coefficient of 4. Coefficient of correlation Determination between and Codes


i ii iii iv

1 2 3 4

2 3 4 1

3 1 2 4

4 1 2 3
51. Match the following from list I and list II

List I List II
i. Durbin-Watson Statistics 1 Stationarity
ii. R2 2. Qualitative Effects
iii. Dickey- 3. Serial Correlation
Fuller test 4. Goodness of fit of regression function
iv. Dummy
Variable

Codes i ii iii iv

1 2 4 3

2 1 3 4

4 3 2 1

3 4 1 2




52. In CES production function 1 p Q M [..X-p .)X-p2 Where Q is output and X1 and X2 are labour and capital. Elasticity of substitution is given by







M

53. In Linear Programming problem involving two variables, multiple optimal solutions are obtained when one of the constraints is

the objective function should be parallel to a constraint that forms boundary of the feasible region.

the objective function should be perpendicular to a constraint that forms the boundary of the feasible region.

neither nor

two constraints should be parallel to each other.


54. In an open economy model of input output analysis, if A is the input coefficients matrix and is technology matrix, the following is the viability condition to be satisfied

I A . 0

I A 0

I A 0

All principal minors of the matrix must be positive.


55. For the Cobb-Douglas Production function Q A L. K1 .. The elasticity of substitution is

Zero

Infinity

One

A


56. Coefficient of determination of a regression model

1. Explains the proportion of total variation in the values of the dependent variable.
2. It can be used to derive the estimate of the extent of variation in the value of Y that is explained by the random factors.
3. Direction of inter-relation between the dependent and independent variables.
4. It explains the influence of the intercept on the dependent variable.

Select the correct code from the list given below

1 2 3 4

1 2

2 4 3

4 1


57. The input coefficients/elements of which of the following matrices are interpreted as inputs required directly and indirectly per unit of final demand.

A





All of the above


58. Total food grains production target for the year 2010-11 has been placed at

250 million tonnes

240 million tonnes

244 million tonnes

234 million tonnes


59. Indicate the year in which National Food Security Mission (NFSM) was launched

2001 -02

2004 05

2010 11

2007 08


60. Identify sources of agricultural credit in India from the code given below

1. Commercial Banks
2. Money Lender
3. Regional Rural Bank
4. Small Industries Development Bank of India

Codes

2 and 3

3 and 4

4 and 1

3 and 4


61. Low productivity for agriculture in India is attributed to

Poor irrigation facilities

Heavy dependence on monsoon

Absence of new technology

All the above


62. Quantum of food subsidy was highest in the year

2009 10

2008 09

2004 05

2001 02


63. Productivity of Indian agriculture can be enhanced by

1. Increased public investment
2. Increased irrigation facilities
3. Higher support price to the farmers
4. Shifting workers from industry

to agriculture Select the correct answer from the given codes Codes

2 and 4

2 and 3

3 and 4

4 and 1


64. High powered money comprises

Currency held by the public Cash reserves of banks

Currency held by the public Demand and time deposits Cash reserves of banks

Currency held by the public Cash reserves of banks Other deposits of RBI

Currency held by the public other deposits of RBI


65. Capital to risk-weighted asset ratio of all scheduled commercial banks in India under the Basel I framework is stipulated at the minimum of





12%

14%


66. Which of the following financial institutions are operating in the money market

1. Non-banking financial institutions
2. Acceptance Houses
3. Central Bank
4. Stock Exchanges

Select the correct answer from the given codes Codes

2 and 3

1 and 3

2 and 4

2 and 3



67. Assertion The capital base of regional rural banks (RRBs) is found to be weak.

Reason Deposit mobilization of RRBs has been inadequate. From the above two statements, select the correct answer from the given codes. Codes

Both and are correct and is the correct explanation of

Both and are correct but is not the correct explanation of

is false but is true.

is true but is false.


68. Which of the following is broad money in India

Currency with public demand deposits in the banks

Currency demand deposits other deposits with RBI

Currency demand deposits time deposits

Currency demand deposits time deposits other deposits with RBI


69. Which of the following did not contribute significantly to inflationary pressure in Indian economy in 2010-11

Food prices

Prices of manufactured prices

Fuel prices

Metal and mineral prices


70. In Joan Robinson's growth model, capital accumulation depends on

Saving-income ratio

Profit-wage relation and labour productivity

Profit-income ratio and capital productivity

Saving-investment ratio


71. In Hicks' neutral technical progress, the technical progress is

Capital augmenting

Labour augmenting

Both Labour and Capital augmenting

Change in the efficiency and productivity of labour


72. In dual gap model, the gap can be filled up by

Raising the level of saving

Export promotion

Steady rate of growth

Foreign aid


73. The concept of 'learning by doing' was given by

J.R. Hicks

Kenneth Arrow

Joan Robinson

Nicholas Kaldor


74. Which of the following represents the concept of human capital

Total human resources

Total population

Human resources gainfully employed in productive activities

All of the above


75. Which of the following is disadvantageous to developing countries' international trade

Protection

Free trade

Exports of primary and import of manufactured goods

None of the above