1 Consider the following statements
I. According to Keynes, as income rises, lower proportion of income is spent on consumption.
II. According Kuznets, as incomes rise, the average propensity to save remains fairly stable and constant. Of the above which statement(s) are correct.


Both I and II are true

Neither I nor II are correct

Only I is true

Only II is true

2 If Marginal Propensity to Consume is equal to Average Propensity to Consume for all levels of income the correct corresponding consumption function will be

C=a+bY

C b

C=bY

a Y

3 Transfer payments by the government are not included in the net domestic product because

These are gifts from the government to the recipients

They are not counted as commodities

No corresponding production of goods and services has taken place to match such payments

There may be leakages in such payments

4 Phillips curve sets up a relation between

Taxes and inflation

Inflation and unemployment

Money supply and aggregate demand

Price and cost of production

5 If economy is operating at potential GDP, an increase in money supply will lead to

Stagflation

Structural inflation

Demand-pull inflation

Cost-push inflation

6 In the long sum, the transitory consumption will

Be infinity

Remain unchanged

Decline but will remain positive

Be zero

7 According to Keynes, investment demand depends on which of the following two factors
Rate of interest
Income of the consumer
Marginal efficiency of capital
Marginal propensity to consume

Answer from the codes below

and

and

and

and

8 For the demand function and supply function the excess demand brings about market equilibrium in which of the following situations

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9 Which of these are appropriate examples of Nash equilibrium below

Only

Only

Both and Neither nor d

dp Answer from the code

10 In which of the following market situations/forms, firms are able to maximise profits

Price leadership

Cartel

At the kink point

Monopolistic competition

11 Consider the following factors in determination of wage
Demand for and supply of labour
MRP of labour=Marginal wage
MRP of labour=Average productivity of labour
MRP=Average wage Which of the above are true Answer from the code below

and

and

and

and

12 In the context of a straight line demand curve touching both the axes, which one of the following is correct The demand is elastic

below the mid-point

above the mid-point

at the mid-point of the curve

throughout the length of the demand curve

13 Slutsky equation deals with decomposition of

price effect into substitution and income effects

goods into superior and inferior goods

goods into necessities and luxuries

consumer and producer surplus

14 A discriminating monopolist will charge a higher price in the market in which the price elasticity of

demand is greater

supply is smaller

supply is greater

demand is smaller

15 Inclusive growth objective was given for the first time in which Plan of India

9th Five Year Plan

10th Five Year Plan

11th Five Year Plan

12th Five Year Plan

16 Match List I with List II and select the correct answer from the codes given below

List I List II

Backward and Forward linkages Von Neumann model
Turnpike theorem Unbalanced growth
Organic composition of capital Marxian model
A.K. Production Function Endogenous growth model

Codes










17 Which among the following variables/factors are used in Constructing Human Development Index of India Life expectancy at birth Real GDP per capita Morbidity Select the correct answer from the codes given below

All the three above

Both and

Both and

Both and

18 Which of the following is credited with introduction of LPG model of economic development in India Dr. C. Rangarajan Dr. Amartya Sen Dr. Montek Singh Ahluwalia Dr. Manmohan Singh

19 Which one of the following models explains the paradox pertaining to rural-urban migration in the context of rising urban employment

Solow model

Lewis model

Vakil and Brahmanand model

Todaro model

20 In Harrod model of growth, if warranted rate of growth is below the natural rate of growth then it is possible to maintain steady state growth with

Continuously increasing unemployment A constant rate of unemployment Continuously decreasing unemployment None of the above 2l Report of Task Force on the Implementation of Fiscal Responsibility and Budget Management Act, headed by Kelkar Committee suggests some points given below I Fiscal deficit to be abolished by 2008 09. II Revenue deficit should be 3 percent of GDP. Which of the above statements given above is/are correct Only I

Only II

Both I and II

Neither I nor II

22 Tobin tax is a tax on







transactions in the share market transactions in the money market transactions in the commodity market transactions in the foreign exchange market

23 Budget incidence refers to

The effect of both government expenditure and tax policies on the distribution of income.

The effect of government expenditure on the allocation of resources.

The effect of tax policies on the distribution of income and wealth in the private sector.

None of the above

24 In case of deficit budget, when the deficits are covered through taxes, that budget is called

unbalanced budget

surplus budget

balanced budget

None of these

25 Match the following

List I List II
Fiscal deficit Revenue and interest receipt minus revenue expenditure
Revenue deficit Revenue receipts and recovery of loans and other receipt minus total expenditure plus total borrowings
Budgets of deficit Receipts minus disbursement in capital account
Capital deficit Total receipts and total disbursements

Codes










26 Efficiency requires that the production of pure public goods be undertaken to the point where

the sum of the marginal private benefits is exactly equal to the marginal social cost of production.

the marginal private benefit is exactly equal to the marginal social cost of production.

the marginal social cost exceeds the sum of the marginal private benefits.

None of the above.

27 Which of the following pairs is not correctly matched

Rekhi Committee Simplification of export and import procedures

Nanmjundappa Committee Railway fare

Rangrajan Committee Balance of payments

Goiporia Committee Banking service improvements

28 Consider the following statements

I The Repo rate is the rate at which other banks borrow from the Reserve Bank of India.
II A value of 1 for Gini Coefficient in a country implies that there is perfectly equality in income distribution. Which among the above are correct

II only

I only

Both I and II

Neither I nor II

29 Retail Banking is to provide banking services

only to individual customers in an integrated manner

entirely to agriculture sector only

only to self-help group for their survival

None of the above

30 Labour market reforms aim at

Job security Labour market flexibility

Minimum wage Employment insurance 3l Jan -Dhan Yojna Concerns Credit

Bank deposit

Tax payment Insurance premium

32 Which of the following sets does not represent the features of Indian labour market

disguised unemployment lack of skills lack of mobility.

disguised unemployment perfect mobility lack of skills.

disguised unemployment migratory labour perfect mobility.

poverty illiteracy Homogeneity

33 The Geometric mean of four numbers 16, 32 is 8. What is the value of X

2

4

6

8

34 If mean=28 and mode=25, the value of median will be

27

29

24

25

35 If the probability of solving a statistical problem by A is and by B is when a problem is
1/2

7/12

1/12

2/3

36 Type I error is defined as

Reject Null-hypothesis when it is false.

Reject Null-hypothesis when it is true.

Accept Null-hypothesis when it is true.

Accept Null-hypothesis when it is false.

37 Given that 0.6 ay ax 30 and Y 140 the correct regression of Y on X is given by

Y=50+3X

Y=110+0.6X

Y=140+3X

Y=140-3X

38 Which one of the following is not a method of sampling

Systematic sampling

Quota sampling

Snowball sampling

Large sampling

39 Growth in software industry in India can be best explained by

Porter's approach

Ricardo's approach

Vernon's approach

Bella Balassa's approach

40 The form of multi commodity terms of trade is most closely related to

Laspeyre's index number

Paasche's index number

Edgworth -Marshall index number

Fisher's index number


41 If the foreign offer curve has an unitary elasticity, then the optimum tariff will be

unity

infinity

zero




42 An overvalued Indian rupee in the foreign exchange market will have which one of the following consequence

Make imports cheaper and exports costlier

Make imports costlier and exports cheaper

Give protection to domestic industry against foreign competition

Will improve balance of payments

43 Which of the following issues were not addressed in Urugvay Round

Migration

IPRs

Services

Tariff

44 The terms of trade refer to

The excess of import expenditure over export earnings

Trade agrument between two nations

The ratio between export and import prices

The terms and conditions on which a country is offered loan in the event of BOP difficulties

45 .Plan Holiday' in Indian planning is identified with the period

1966 -69

1979 -81

1985 -87

1991 -93


46

Assertion Pareto optimality criterion cannot be used alone to measure welfare level of the people. .

Reason The concept Pareto optimality fails in case of externalities, public goods and missing markets.

Both and are true and is the correct explanation of

Both and are true and is not the correct explanation of

is true, is false.

is true, is false.

47
Assertion APC can never be zero while it can be greater than 1.

.Reason Consumption expenditure is always positive even if income is zero.

Both and are true and is the correct explanation of

Both and are true and is not the correct explanation of

is true, is false.

is true, is false.

48 Assertion The endogenous growth theory examines production function that shows increasing returns.
Reason :There is specialization and investment in knowledge capital.

49 Assertion On a bell shaped curve the value of mean, median and mode would be identical.
.Reason There is no skewness in such a curve.
50 Assertion Competition Act of 2002 came into force and MRTP Act was repealed.

Reason MRTP Act was too restrictive and curtailed fair competition in the market.