1. A firm operating in perfectly competitive product and input markets. Maximizes its total profit when

Px MCx and MCx is rising

MPa/Pa MPb/Pb

MPa/Pa MPb/Pb 1/MCx

MPa/Pa MPb/Pb 1/MCx 1/Px

2. Shadow price refers to

change in the value of the constraint per unit change in the objective function.

change in the value of objective function per unit change in any one of the constraints.

the change in the value of the primal solution per unit change in the dual solution.

all the above.



3. In an economy of two individuals and two commodities and general equilibrium of exchange is reached when

MRTSXY MRTSYX

MRSXY PX/ PY

(MRSXY)A (MRSXY)B

MRSXY PY/ PX



4. Match the items in List I with items in List II
List I List II
a. Various combination that a consumer can purchase 1.Indifference Map
b. Various combination of two commodities that
give the consumer equal satisfaction 2.Budget Line
c. A set of indifference curves 3.Consumer Equilibrium
d. Point of tangencyof a budget lineand indifference curve 4.Indifference Curves

Codes
a b c d
2 4 1 3

2 1 4 3

4 1 2 3

4 2 1 3


5. Match the items in List I with items in List II
List I List II
a. Residual Claimant Theory 1.Nut. K. Wicksel
b. Loanable Funds Theory 2.Bergson-Samuelson
c. Compensation Criteria 3.Walker
d. Social Welfare Function 4.Kaldor-Hicks

Codes
a b c d
3 1 4 2

3 2 1 4

2 1 3 4

2 3 4 1

6. Assertion An Iso Cost Line is a straight line.
Reason :The market rate of exchange between the two inputs is constant.
Codes

Both and are true and is correct explanation of

Both and are true, but is not correct explanation of

is true, but is false.

is false, but is true.



7. Assertion The rate of fall of MR Curve is more than twice the rate of fall of AR.
Reason :The MR AR Curves are linear and negatively sloped.
Codes

Both and are true and is correct explanation of

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

is true, but is false.

is false, but is true.


8. Which of the following is true with regard to peak-load pricing
It is applicable only for electrical public utilities.
It leads to substitution in consumption from the period of peak demand to the period of low demand.
It leads to reduction in consumer welfare.
It leads to higher consumer welfare during peak periods when demand and marginal costs are low.

Codes

only.

only.

only.

only.


9. In the long run, the autonomous consumption will

be infinity

remains unchanged

decline but will remain positive

be zero



10. Which of the following statements is not true in case of the balanced budget multiplier

The first round contractionary effect of additional tax revenue b MPC) is less than the explanatory effect of additional Government expenditure

The value of tax multiplier for proportional taxes is b bt (where b MPC and t tax rate).

The value of balanced budget multiplier is unity when taxes are lump sum taxes.

None of the above



11. For a small economy in a flexible exchange rate system that begins in the long-run equilibrium point, a higher rate of inflation in the short-run will be followed by

An increase in the exchange rate and decline in net exports.

Decrease in the exchange rate and an increase in net exports.

Contractionary monetary policy and real exchange rate appreciation.

Explanatory monetary policy and real exchange rate depreciation.



12. Speculative demand for money is zero when market rate of interest is

more than the 'critical rate'.

more than the market rate of interest but less than the critical rate (i.e. capital gains occur).

less than the market rate of interest.

lowest (i.e. in liquidity trap).



13. A positively sloped aggregate supply curve indicates that

an increase in aggregate demand will be associated with an increase in the price level and no change in equilibrium output.

an increase in aggregate demand will be associated with an increase in both the price level and equilibrium output.

an increase in aggregate demand will be associated with an increase in equilibrium output and no change in the price level.

none of the above.



14. The capacity creating aspect of investment in growth theory was emphasised by

R.F. Harrod

E.D. Domar

R.M. Solow

P.A. Samuelson



15. Which of the following is not an interpretation of the golden rule of accumulation

'Invest your profits, consume your wages.'

The share of profit in output is equal to the ratio of investment to output.

Saving ratio should be equal to the elasticity of output with respect to capital.

None of the above.



16. The rational expectations hypothesis does not imply

People do not make systematic errors.

On average the economy will be close to Long-run Average Supply Curve.

Policy makers have better information about the economy than other economic actors.

Macroeconomic policy changes must came as a surprise in order to have an impact on the real economy.



17. Which of the following are true of disguised unemployment

I. It represents potential savings.
II. The marginal productivity of labour is zero or extremely low.
III. It is due to the existence of joint family system.
IV. It is confined to the rural areas.
Codes

II and IV

III and IV

II and III

II, III and IV



18. According to A.K. Sen, famines occurred in India because of

lack of proper distribution mechanism

lack of demand

lack of transportation

shortage of foodgrains



19. In India, Five Year Plan is formulated by

C.S.O.

Planning Commission

Finance Commission

Planning Ministry




20. In which year, the Wildlife Board in India was established

1952

1968

1986

1992



21. Indian planning mechanism was criticised by

A.K. Sen

Jagdish Bhagwati

L.K. Jha

Bimal Jalan



22. 'Aam Admi Bima Yojana' provides social security to

all labour in rural areas

all landless labour living below poverty line in rural areas

all labour in urban areas

all labour in both rural and urban areas



23. List I List II
i. 1st Five Year Plan a. Agriculture
ii. 2nd Five Year Plan b. Heavy industries
iii. 5th Five Year Plan c. Anti-poverty Programmes
d. Luxury items
Codes

i ii iii c

i ii iii c

i ii iii a

i ii iii b



24. Which State in India has the lowest Infant Mortality Rate

Maharashtra

Goa

Gujarat

Kerala



25. Assertion In the agricultural lending mechanism of India, moneylenders despite their usurious rates of interest are still predominant.
Reason Most often the commercial banks could not meet the target of 18% of their total lending for the agricultural sector in the country.
Codes

Both and are true and is the correct explanation of

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

is true and is false.

is false and is true.



26. Which one of the following does not come under land reforms in India

Abolition of Intermediaries and Tenancy Legislation
Ceiling on Land Holding and Co-operating Farming
Tenancy Legislation and Technology Upgradation
Abolition of Intermediaries and Green Revolution

Codes

and

and

and

and



27. Assertion In India, 'Green Revolution' was also criticised as Wheat Revolution.
Reason :The productivity of wheat in India during the 1970's was one of the highest in the world.
Codes

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.



28. Assertion Agricultural income is taxed by the Union Government.
Reason Agriculture is a State subject.
Codes

Both and are true and is the correct explanation of

Both and are true and is not the correct explanation of

is true, but is false.

is false, but is true.



29. Match items given in List I with those in List II
List I List II
a. Green Revolution 1. Oilseeds
b. Yellow Revolution 2. Milk
c. White Revolution 3. Fish
d. Blue Revolution 4. Wheat

Codes
a b c d
4 1 2 3

4 2 1 3

2 1 3 4

2 4 3 1


30. The fundamental cause for the collapse of the Bretton Woods System was

the liquidity problem

the adjustment problem

the confidence problem

all of the above



31. Hedging refers to

the acceptance of a foreign exchange risk

the covering of a foreign exchange risk

foreign exchange speculation

foreign exchange arbitrage



32. Members of the World Trade Organization are required to

eliminate all tariffs.

allocate quotas on a first come first basis.

prevent their firms from "dumping".

enforce patent rights for patent holders from other countries.



33. Which of the following is not related with optimum currency area

Optimal geographical area for several currencies whose exchange rates are relatively pegged.

Single currency do not fluctuate vis-à-vis other currencies.

Single currency or the pegged currencies fluctuate jointly vis-à-vis other currencies.

Optimal geographical area for a single currency.




34. Which of the following issues did the Uruguay Round not address

Migration

Intellectual Property Rights

Services

Tariff



35. The experience with managed exchange rates since 1973

strongly supports a fixed exchange rate system.

strongly supports a freely flexible exchange rate system.

mildly supports a flexible exchange rate system.

supports some restriction on exchange rate fluctuations.



36. List I List II
a. Free trade area 1. No restrictions on trade and factor movement
b. Customs union 2. Trade is free and no Customs Duties
c. Common market 3. No Customs Duties but duties on non­members
d. Economic union 4. Advancedstage of integration
Codes
a b c d
2 1 3 4

3 2 4 1

2 3 1 4

1 3 4 2



37. An example of a Euro currency is

a Dollar deposit outside the U.S.

a Pound Sterling deposit outside the U.K.

a Mark deposit outside Germany

All of the above



38. Which one of the following tax is within the jurisdiction of the State Governments as enumerated in List II of the Constitution of India

Taxes other than stamp duties on transactions in stock exchange and future markets.

Taxes on Railway freights and fares.

Taxes on mineral rights subject to any limitations imposed by the Parliament.

Rate of stamp duty in respect of certain financial documents.



39. Match the items given in List I with those in List II
List I List II
I. Third Finance Commission 1. J.M. Shelat
II. Sixth Finance Commission 2. A.K. Chanda
III. Seventh Commission 3. K.C. Pant Finance Commission
IV. Tenth Finance Commission 4. K.Brahmananda Reddy
Codes
I II III IV
4 1 3 2

3 4 1 2

2 3 4 1

2 4 1 3


40. Which of the following are Government of India debt obligations
I. State Provident Funds
II. Small Savings
III. Reserve Money
IV. Reserve Funds and Deposits
Codes

I and II are correct.

II and IV are correct.

II and IV are correct.

II and III are correct.



41. Arrange the following in chronological order
I. Task Force on Direct and Indirect Taxes (Kelkar Committee)
II. Replacement of State Sales Tax by Value Added Tax
III. Introduction of MODVAT
IV. Fiscal Responsibility and Budget Management Act
Codes

III, II, IV, I

III, IV, II

III, IV, II

II, III, IV, I


42. Which of the following tax is introduced in India in 1953 and abolished in 1985

Estate Duty

Expenditure Tax

Gift Tax

Agricultural Income-tax



43. Match different deficit indicators given in List I with the value in List II for the Union Budget 2013-14
List I List II
i. Revenue deficit a. 1.5
ii. Effective revenue deficit b. 1.8
iii. Fiscal deficit c. 3.3
iv. Primary deficit d. 4.8
Codes
i ii iii iv
a c b d

b c d a

c b d a

a d c b


44. As per the revised estimate, the plan expenditure of the budget estimate for 2012-13 in India has been lowered by

9.0 percent

15.0 percent

18.0 percent

23.0 percent



45. Find out the items which are not in the scope of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM)

Internal earmarking within local body budgets for basic services to the urban poor.

Provide legal and financial support to metro/mono-rail projects in urban areas.

Earmarking of at least 20-25 percent of developed land in all housing projects for the economically weaker sections and low income groups category.

Implementation of a seven-point charter for provisioning of seven basic entitlements/ services.



46. Which Economic Survey has introduced a new chapter on "Sustainable Development and Climate Change"

Economic Survey 2004-05

Economic Survey 2007-08

Economic Survey 2009-10

Economic Survey 2011-12





47. Match the different Five Year Plans of India given in List I with the annual growth rate of National Income (at 2004-05 prices) given in List II

List I List II
i. Eighth Plan a. 5.5 percent
ii. Ninth Plan b. 6.7 percent
iii. Tenth Plan c. 7.5 percent
iv. Eleventh Plan d. 7.8 percent

Codes
i ii iii iv
b a c d

a c d b

b d a b

d b c a


48. What has been the monthly per capita expenditure (Uniform Reference Period) for urban population of India (at 2004-05 prices) as per the 68th Round of NSSO (2011-12)

707.24

1,359.75

1,785.81

2,401.68



49. Which of the following programmes is not included in rural infrastructure development in India

Integrated Low Cost Sanitation Scheme (ILCS)

Bharat Nirman

Indira Awas Yojana

Total Sanitation Campaign


50. What is the formula for tax devolution used by the Thirteenth Finance Commission of India
<img src='./qimages/2-50.jpg'>

51. For a firm in long-run equilibrium producing an allocatively efficient level of output where marginal cost is equal to demand, which of the following does not apply
Price is sufficient to cover the opportunity cost.

Profit of the firm becomes zero.

Price is sufficient to cover costs.

This situation also satisfies the consumers.



52. What will be the value of Herfindahl-Hirschmann Index of market concentration for the following industry
Share of firms Firm 1 Firm 2 Firm 3 Firm 4 Firm 5 Firm 6
Industry 30 25 15 15 10 5

55

35

2100

None of the above



53. Make out a correct combination from the following sets I II in the context of the industrial economics
Set I Set II
i. SCP a. James Approach Buchanan
ii. Transaction b. Neoclassical Cost Theory Theory
iii. Public Choice c. Herfindahl-
Theory Hirschmann Index
iv. Industrial d. Williamson Concentration
Codes
i ii iii iv
b d a c

c d b c

a c d b

d b a c





54. Backward-bending supply curve of labour suggests that
when wage rate increases, supply of labour declines.

when wage rate declines, supply of labour increases.

there is no relationship between wage rate and labour supply.

when wage rate increases, initially labour supply increases and after some point with the increase in wage rate, labour supply decreases.



55. Who among the following is not associated with the collective bargaining by the labour with the management

R.G. Lipsey

Neil W. Chamberlain

Carl M. Stevens

Bevars D. Mabry



56. The M1 definition of money is
Currency outside banks and checking deposits

Currency outside banks, checking deposits and travellers checks

Currency outstanding and checking deposits

Currency outstanding, checking deposits and money market deposit accounts



57. The biggest component of reserve money in India is
Treasury bills

Currency in circulation

Bankers deposits with RBI

Other deposits with RBI



58. The components of the organized sector of the money market
I. Bill market
II. Stock market
III. Gift-edged market
IV. Bank loan market
Codes
I and III are correct.

III and IV are correct.

II and IV are correct.

I and IV are correct.



59. Assertion The prices of Government securities in gift-edged market are not formed freely.
Reason The Reserve Bank of India has a monopoly dealer position and the demand for Government securities has a captive nature.
Codes
is true, but is false.

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

is not correct, but is correct.

Both and are correct and is the correct explanation of



60. Find out the correct answer from the
codes given below Credit Rating Agencies in India
I. CRISIL II. ICRA
III. TDICI IV. CARE
Codes
I and II are correct.

II and III are correct.

I and IV are correct.

II and IV are correct.



61. Regression coefficient is independent of change in
origin but not of scale

both origin and scale

scale but not of origin

none of these



62. In a multiple regression with two independent variables and 12 observations F value calculated is to be tested. What will be degrees of freedom for numerator and denominator in testing procedure
1 and 12 2 and 11

2 and 10 1 and 10



63. For a viable input-output system which conditions are postulated

Hawkins-Simon conditions

Kuhn-Tucker conditions

Bhagwati-Eckaus conditions

Von Neumann conditions



64. Given that C.E.S. production function is
µ

.
P .
List I List II
i. Distribution
a. . parameter
b.
d ii. Substitution parameter

c.
. iii. Returns to scale parameter

d.
µ iv. Efficiency parameter


Codes
a b c d
ii iii i iv

iii iv ii i

iv i ii iii

i ii iii iv



65. Linear Programming Technique was developed for the first time by
Koopmans

Dantzig

Leontief

Mahalanobis



66. Given Harrod's Growth Model as under Y(t ß 0. In this model sustained growth is indicated by satisfying the condition
ß ßa 0

ß ßa 0

ß ßa 1

ß ßa 1



67. Cobb-Douglas production function
Q ALa K1-a does not possess the characteristics of
Constant Returns to Scale

Unit Elasticity of Substitution

Variable Elasticity of Substitution

Linear homogeneity



68. Estimate of Total Fertility Rate from the given Age-Specific Fertility Rates (ASFR) Age Group ASFR 15 19 19.6 20 24 147.3 25 29 132.9 30 34 56.2 35 39 18.1 40 44 3.8 45 49 1.0
1.56 1.86

2.39 2.62


69. Which of the following is not correct about a population pyramid
On the right side of the pyramid women's age structure is shown.

It shows age and sex distribution of a population.

An expansive pyramid is narrow at the base but it expands as it moves up towards higher ages.

Population pyramids can be used to find the economic dependents supported in a particular population.



70. The situation of people in villages and towns of strong emigration receiving high amount of remittances has been described as "private affluence and public squalor" by
M. Todaro

John K. Galbraith

Arthur Lewis

Gunar Myrdal



71. Which of the following models can be estimated using OLS following suitable transformation, if necessary Here e denotes the exponential.

yt a ß× t ut


yt a ß ext ut


yt a ß x 2 ut
t
ln a ß ln(xt) ut
Codes
only

and only

and only

and



72. Suppose that observations are available on the monthly bond prices of 100 companies for five years. What type of data are these

Cross Sectional

Time Series

Panel

Qualitative



73. What is the meaning of the term "heteroscedasticity"
The variance of errors is not constant.

The variance of dependent variable is not constant.

The errors are not linearly independent of one another.

The errors have non-zero mean.



74. Which of the following estimation techniques are available for the estimation of over-identified systems of simultaneous equations
OLS ILS
2SLS IV
Codes
only

and only

and only

and



75. The order condition is
a necessary and sufficient condition for identification.

a necessary but not sufficient condition for identification.

a sufficient but not necessary condition for identification.

a condition that is neither necessary nor sufficient for identification.