PAPER-III

ECONOMICS
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J-01-14

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P.T.O.

ECONOMICS
Paper III
Note : This paper contains seventy five (75) objective type questions of two (2) marks each.
All questions are compulsory.
1.

Which of the following are the basic

assumptions of cardinal utility
analysis ?
I.
Utility is a measurable and
quantifiable entity.
II. Marginal utility of money
changes with changes in real
income.
III. Utilities derived from various
goods are inter-dependent.
IV. The use of introspective
method
in
judging
the
behaviour of marginal utility.
Codes :
(A) I and II are correct.
(B) I and III are correct.
(C) I and IV are correct.
(D) I, III and IV are correct.

2.

Engel Curve denotes

(A) various amounts of a good
which a consumer would be
willing to purchase at various
price levels.
(B) various amounts of a good
which a consumer would be
willing to purchase at various
income levels.
(C) various amounts of a good
purchased when the price of its
substitutes tend to rise.
(D) the
relationship
between
income effect and substitution
effect.

3.

A producer is said to be operating

with excess capacity
(A) when he produces an output
greater than that given by the
minimum Average Total Cost
(B) when he produces an output
greater than at given by the
maximum Average Total Cost
(C) When he produces an output
equal to that given by the
minimum Average Total Cost
(D) When he produces an output
smaller than that given by the
Minimum Average Total Cost

Paper-III

4.

Assertion (A) : Harvey Leibenstein

asserted
that
marginal
conditions
required
for
economic efficiency are not
usually satisfied in practice.
Reason (R) : People are not fully
motivated
towards
maximization or minimization.
Codes :
(A) Both (A) and (R) are correct
and (R) is the correct
explanation of (A).
(B) (A) is correct, but (R) is not
correct.
(C) Both (A) and (R) are correct,
but (R) is incorrect explanation
of (A).
(D) (R) is correct, but (A) is incorrect.

5.

A graphical illustration used to

explain efficiency conditions and
demonstrates how the allocations of
some goods and resources can be
improved through exchange is called
(A) production possibility curves
(B) social indifference curves
(C) Edgeworth box diagram
(D) Phillips curve

6.

Match the following :

List I
a. A double
1.
Kaldor-Hicks
Test
b. Compensation 2.
Principle
3.
c. Social
Welfare
function
d. Impossibility 4.
theorem
Codes :
a
b
c
(A) 4
1
3
(B)
3
4
1
(C)
3
4
2
(D) 4
3
2

List - II
A. Bergson
K.J. Arrow
T. Scitovsky
KaldorHicks
d
2
2
1
1
J-01-14


:
1.

2.

III
(75) - (2)

?
I.


II.


III.

IV.
:

:
(A) I II
(B) I III
(C) I IV
(D) I, III IV
?



(B)


(C)


(D)

4.

(A) :




(R) :


:
(A) (A) (R) , (R),
(A)
(B) (A) , (R)
(C) (A) (R) ,
(R), (A)
(D) (R) , (A)

5.

,



, ?
(A)
(B)
(C)
(D)

6.

:
I
II
a. 1. .

b. 2. ..
3. .
c.

d. 4. -
:

(A)

3.

(A)

(B)


(C)

(D)

J-01-14

(A)
(B)
(C)
(D)
3

a
4
3
3
4

b
1
4
4
3

c
3
1
2
2

d
2
2
1
1
Paper-III

7.

The oligopoly model in which the

businessman assumes that his
competitors output are fixed and
simultaneously decide how much to
produce is
(A) Cournot oligopoly model
(B) Stackelberg oligopoly model
(C) Chamberlins oligopoly model
(D) Bertrand oligopoly model

8.

According to Game Theory, if

increased advertising, raises costs
more than revenues and the profits of
both firms decline, we have a
(A) Positive-sum game
(B) Non zero-sum game
(C) Zero-sum game
(D) Negative-sum game

9.

Arrows
impossibility
theorem
implies
(A) Any social decision rule should
not violates the requirements of
rational choice.
(B) Any social decision rule must
violate atleast one of the
requirements of rational choice.
(C) Any social decision rule must
violate all the requirements of
rational choice.
(D) It is impossible to violate social
decision rules.

10.

Bandwagon effect is found in

(A) Relative Income hypothesis
(B) Permanent Income hypothesis
(C) Life cycle Hypothesis
(D) Absolute Income hypothesis

Paper-III

11.

Let the consumption function in life

cycle hypothesis be represented as
w
C=
y
w + e
where e = number of post retirement
years of living.

y = average annual income

during the working period
Then Marginal Propensity to
Consume (MPC) is represented by
the equation :
1
(A)
(y)
w+e

w y
(B) w + e

w y
(C) w + e y

(D) None of the above

12.

Complete the statements given in

List I with there given in List II :
List I
List II
a. Instantaneous 1. MPC is
adjustment of
smaller
income with
investment
spending
occurs in
b. Consumption 2. increase in
lags income by
investment
one period in
expenditure
is once-forall
c. Value
of 3. state
investment
multiplier
multiplier
is
zero when
d. Major portion 4. dynamic
of multiplier is
multiplier
realized
in
fewer periods
when
Codes :
a
b
c
d
(A) 3
4
1
2
(B)
3
4
2
1
(C)
4
3
1
2
(D) 2
3
1
4
J-01-14

7.

8.

, ?
(A)
(B)
(C)
(D)

11.

C = w + e y
w

(A)


(B)


(C)


(D)

10.

/
?
(A)
(B)
(C)
(D)

J-01-14

e=

y=

(MPC)
?

,

,
?
(A) -
(B) -
(C) -
(D) -

9.

(A)
(B)
(C)
(D)
12.

I II
:
I
II
1. MPC
a.


b.
2.




c. 3.

d. 4.

:
(A)
(B)
(C)
(D)

1
(y)
w+e

w y
w + e

w y
w + e y

a
3
3
4
2

b
4
4
3
3

c
1
2
1
1

d
2
1
2
4
Paper-III

13.

Assertion (A) : The individual

speculative demand for money
is a discontinuous one.
Reason (R) : Because the aggregate
speculative demand for money
function is smooth downward
sloping with liquidity trap at
extremely low interest rates.
Codes :
(A) Both (A) and (R) are correct
and (R) is the correct
explanation of (A).
(B) Both (A) and (R) are correct
but (R) is not the correct
explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.

14.

Transaction Cost is also called

(A) Shoe Leather Cost
(B) Menu Cost
(C) Opportunity Cost of holding
cash
(D) All of the above

15.

Given the consumption function,

C = 0.8Y, and the investment function
I = 102 0.2i, then the IS-curve is
(A) Y = 500 10i (B) Y = 450 i
(C) Y = 510 i (D) Y = 505 2i

16.

Match the premise given

with that in List II :
List I
a. Price expectations 1.
are static
b. Price expectations 2.
are adaptive
c. People do not
3.
make systematic
errors

d. Deviations of
output from its
natural rate is
inversely related
to the deviation of
unemployment
rate from its
natural level
Codes :
a
b
c
(A) 2
3
4
(B)
4
3
2
(C)
1
3
4
(D) 4
2
1
Paper-III

17.

Given that the increment in aggregate

demand (Y) per unit of time, t, is
given by the equation
1
Y
I
= 1 MPC
t d
t
and the increment in supply of output
is represented by the equation
k
Y
=
t
t s
Where MPC = Marginal Propensity
I k
to Consume,
&
are change in
t
t
investment
&
capital
stock
respectively, per unit of time, then
the capacity creating effect or Domar
effect of investment following goods
market equilibrium equals
1

(A) (1 MPC) (B) 1 MPC

1
1
1
(C)
(1 MPC) (D)

1 MPC

18.

When the aggregate supply schedule

is positively sloped, continuous
increases in the nominal money
supply, ceteris parilus, result in
(A) No change in the price level
and proportional increases in
real output.
(B) No change in real output and
proportional increases in the
price level.
(C) An increase in the price level
and real output.
(D) An increase in the price level
and a decrease in real output.

19.

Golden Age as per Mrs. Joan

N
Robinson is (where N is growth
K
rate of population and
is growth
K
rate of capital)
N K
(A) N = K
N K
(B) N > K
N K
(C) N < K
(D) None of the above

in List I
List II
Okuns law

Phillips
Curve
Natural Rate
of unemployment
hypothesis
4. Rational
expectations
hypothesis

d
1
1
2
3
6

J-01-14

13.

(A) :

(R) :



:
(A) (A) (R) (R),
(A)
(B) (A) (R) ,
(R), (A)
(C) (A) , (R)
(D) (A) , (R)

14.

:
(A)
(B)
(C)
(D)

15.

C = 0.8Y
I = 102 0.2i , IS
?

17.

a
2
4
1
4

b
3
3
3
2

c
4
2
4
1

1
Y
I
= 1 MPC
t d
t

Y
k
=
t
s

MPC = , t
k

t
: ,
,
?
(A) (1 MPC)
1

(B) 1 MPC

1
(C)
(1 MPC)

1
1
(D)

1 MPC
18.

I II
:
I
II
a.
1.

b.
2.

c. 3.



d.
4.

:

:

(A)
(B)
(C)
(D)
J-01-14

(Y)

(A) Y = 500 10i (B) Y = 450 i

(C) Y = 510 i (D) Y = 505 2i
16.

19.

,

?
(A)

(B)

(C)

(D)


(

N
N

K
K )
N K
(A) N = K
N K
(B) N > K
N K
(C) N < K
(D)

d
1
1
2
3
7

Paper-III

20.

A technical change is neutral if

MPK
MPL

remains unchanged at constant

ratio :
(A) Harrod
(C) Solow
21.

22.

23.

24.

Arrange the Structural Development

Processes in a sequential order :
I.
Resource Allocation Processes
II. Accumulation Process
III. Distributional Processes
IV. Demographic Processes
Codes :
(A) I, IV, II, III (B) II, I, IV, III
(C) III, II, I, IV (D) IV, III, I, II

25.

Match the items in

List II :
List I
a. MPL is zero in
overpopulated
economies
b. Two gap model
c. Critical growth
rate
d. Backwash effects

K
L

(B) Hicks
(D) Kaldor

Concept of disembodied technical

change is associated with
I.
Abramovitz II. Kaldor
III. Kendrick
IV. Solow
(A) I and II
(B) III and IV
(C) I, III and IV (D) II, III and IV
Joan Robinsons growth model deals
with
I.
Desired growth rate
II. Possible growth rate
III. Natural growth rate
IV. Warranted growth rate
Codes :
(A) I and III
(B) II and IV
(C) I and II
(D) III and IV

Codes :
a
(A) 1
(B)
3
(C)
2
(D) 4
26.

Assertion (A) : To Marx, it is

surplus labour that lead to
capital accumulation.
Reason (R) : The difference between
actual labour and subsistence
labour that a labourer puts in
for which he receives nothing
is surplus labour.
Codes :
(A) (A) is correct, but (R) is not the
correct reason for (A).
(B) (A) is correct and (R) is
incorrect.
(C) Both (A) and (R) are correct.
(D) Both (A) and (R) are incorrect.

Paper-III

b
3
4
1
2

c
4
2
3
1

List I with
List II
1. Gunnar
Myrdal
2. J.E. Mead
3. Arthur
Lewis
4. Hollis
Chenery &
others
d
2
1
4
3

Match the items in List

List II :
List I
a. Learning by doing 1.
b. Biased Technical
2.
Progress
3.
c. Co-efficient of
sensitivity of
income distribution
d. Theory of
4.
Demographic
Transition : Four
stages of
Population growth
Codes :
a
b
c
d
(A) 3
4
1
2
(B)
1
3
2
4
(C)
2
1
4
3
(D) 4
2
3
1

I with
List II
Kaldor
Karl Sax
Kenneth
J. Arrow
Joan
Robinson

J-01-14

20.

MPK
MPL

K
L

24.

(A)
(B)
(C)
(D)
21.

22.

23.

()
?
I.

II.
III.
IV.
(A) I II
(B) III IV
(C) I, III IV (D) II, III IV

:
I.

II.
III.
IV.
:
(A) I, IV, II, III
(C) III, II, I, IV

25.

?
I.

II.
III.
IV.
:
(A) I III
(B) II IV
(C) I II
(D) III IV

(B) II, I, IV, III

(D) IV, III, I, II

I
:
I
a.
1.

MPL
b. 2.
c.
3.
d.
4.

II

II

..

:
(A)
(B)
(C)
(D)
26.

(A) :

(R) :
,
,

:
(A) (A) , (R), (A)

(B) (A) (R)
(C) (A) (R)
(D) (A) (R)

J-01-14

b
3
4
1
2

c
4
2
3
1

d
2
1
4
3

I II
:
I
II
a. 1.
b.
2.

c.
3. .

d. 4.
:

:
(A)
(B)
(C)
(D)

a
1
3
2
4

a
3
1
2
4

b
4
3
1
2

c
1
2
4
3

d
2
4
3
1
Paper-III

27.

Assertion (A) : Solow model is a

major
improvement
over
Harrod-Domar Model.
Reason (R) : Solow built a model of
long run growth without the
assumption of fixed proportion
in production.
Codes :
(A) (A) is correct, but (R) is not the
correct reason of (A).
(B) (A) is not correct, but (R) is correct.
(C) Both (A) and (R) are correct.
(D) Both (A) and (R) are not correct.

28.

The concentrations effect explained

in Peacock-Wiseman hypothesis
implies
(A) public expenditure does not
increase in smooth and
continuous manner
(B) public expenditure increases the
necessity of increased revenue
(C) the Central Governments
economic activity to grow
faster than that of subnational
Governments
(D) absolute level of public
expenditure increases

29.

A tax imposed upon monopoly profits

(A) can be shifted forward
(B) can be shifted backward
(C) can be shifted both forward and
backward
(D) cannot be shifted

30.

The plan expenditure on Revenue

Account of the Union Government
includes
I.
Economic Services
II. Social and community services
III. Grants-in-aid to States and
Union Territories
IV. Loans and Advances to finance
public enterprises
Codes :
(A) I and II are correct.
(B) I, II and III are correct.
(C) I, II and IV are correct.
(D) I, II, III and IV are correct.

Paper-III

10

31.

Debt obligations of Government of

India (Government liabilities)
I.
State Provident Funds
II. Small Savings
III. Reserve Funds and Deposits
IV. Consolidated Fund of India
Codes :
(A) II and III are correct.
(B) I, II and III are correct.
(C) II, III and IV are correct.
(D) I, III and IV are correct.

32.

Identify the chronology of the

following Committees on tax reforms
in India :
I.
Committee on Taxation of
Agricultural
Income
and
Wealth
II. Kaldor Proposal for Tax
Reform in India
III. Taskforces on Direct and
Indirect Taxes
IV. Direct Taxes Administration
Enquiry Committee
Codes :
(A) II, I, IV, III (B) II, IV, I, III
(C) II, III, I, IV (D) I, III, IV, II

33.

Which of the following are the role

of Finance Commissions in India ?
I.
To make recommendations on
the distribution of tax proceeds
between Centre and States.
II. To make Recommendations on
levying,
removing
or
restructuring of taxes.
III. To recommend Grants-in-aid
under Article 275 of the
Constitution
IV. To recommend plan and other
grants under Article 282 of the
Constitution
Codes :
(A) I and II are correct.
(B) I and III are correct.
(C) I, III and IV are correct.
(D) All are correct.
J-01-14

27.

(A) : , -

(R) :


:
(A) (A) , (R), (A)

(B) (A) , (R)
(C) (A) (R)
(D) (A) (R)

28.

-

(A)

(B)

(C) -


(D)

29.

30.

(
)
I.

II.
III.
IV.
:
(A) II III
(B) I, II III
(C) II, III IV
(D) I, III IV

32.

:
I.

II.

III.
IV.
:
(A) II, I, IV, III
(C) II, III, I, IV

(A)
(B)
(C)

(D)

33.

I.

II.
III.
-
IV.

:
(A) I II
(B) I, II III
(C) I, II IV
(D) I, II, III IV

J-01-14

31.

11

(B) II, IV, I, III

(D) I, III, IV, II

?
I.


II. ,
:
III. 275
-
IV. 282


:
(A) I II
(B) I III
(C) I, III IV
(D)
Paper-III

34.

Under a managed floating exchange

rate system, the nations monetary
authorities intervene in foreign
exchange markets to
(A) smooth out short-run and longrun fluctuations in exchange
rates
(B) keep exchange rates fixed
among a group of nations
(C) smooth
out
short-run
fluctuations in exchange rates
(D) keep exchange rates flexible

35.

Euro currency market is a part of a

larger global market known as
Eurodollar market.
(A) Above statement is correct.
(B) Above statement is not correct.
(C) Above statement is partially
correct.
(D) Above statement is partially
incorrect.

36.

Match the following :

List I
List II
a. WTO
1. Provide finance to
correct
disequilibrium in
balance
of
payments.
b. IMF
2. Generally forbids
the
use
of
quantitative
restrictions
in
trade.
c. SAARC 3. Sanction of soft
loans
d. IDA
4. Promotes
trade
among
South
Asian Countries
Codes :
a
b
c
d
(A) 1
2
3
4
(B)
2
3
4
1
(C)
2
1
4
3
(D) 3
2
4
1

Paper-III

12

37.

A sudden shift from import tariffs to

free trade may induce short term
unemployment in
(A) import competing industries
(B) industries that are only
exporters
(C) industries that sell domestically
as well as export
(D) industries that neither import
nor export

38.

The immediate cause for the collapse

of the Bretton woods system was
(A) the expectation that the U.S.A.
would soon be forced to
devalue the dollar
(B) the massive flight of liquid
capital from the U.S.A.
(C) the attempt by three small
European Central Banks to
convert part of their dollar
holding into gold at the Federal
Reserve Bank.
(D) All of the above

39.

A feasible effect of international

trade is that
(A) a monopoly in the home market
becomes an oligopoly in the
world market
(B) an oligopoly in the home
market becomes a monopoly in
the world market
(C) a purely competitive firm in the
home market becomes an
oligopolist
(D) a purely competitive firm in the
home market becomes a
monopolist

40.

The European Union has achieved all

of the following, except
(A) adopted a common fiscal
policy for member nations
(B) established a common system
of agricultural price supports
(C) disbanded all tariffs between its
member countries
(D) levied common tariffs on
products imported from nonmembers
J-01-14

34.

,
?
(A)
-

(B)

(C)
(D)

35.

,

(A)
(B)
(C)
(D)

36.

I II :
I
II
a. ... 1.



b. ... 2.



c.
3.
d. ... 4.


:
(A)
(B)
(C)
(D)

J-01-14

a
1
2
2
3

b
2
3
1
2

c
3
4
4
4

d
4
1
3
1
13

37.

:
(A)
(B)
(C)

(D)

38.

(A) ...


(B)
...
(C)



(D)

39.

( )

(A)

(B)

(C)


(D)

40.

:
(A)

(B)

(C)

(D) -

Paper-III

41.

42.

43.

A Foreign Trade Zone (FTZ) is

(A) a regional area within which
trade with foreign nations is
allowed
(B) a free trade agreement among
several nations
(C) designed to promote exports by
deferring import duties on
intermediate inputs and waving
such duties if the final product
is re-exported rather than sold
domestically
(D) designed to limit exports of
manufactured goods by placing
import taxes on goods made
within the zone
The formula that shows the correct
relationship between
I.
The supply of high powered
money (H)
II. The currency (C)
III. The money supply (M)
IV. Required Reserves (RR)
V. Excess Reserves (ER)
VI. Demand deposits (D), is
M
D+C
(A) H = C + RR + ER
H
D+C
(B) M = C + RR + ER
M
C + RR + ER
(C) D + C =
H
H C + RR + ER
(D)
=
M
D
Which of the following will act as
the lender of intermediate resort ?
(A) RBI
(B) NABARD
(C) SBI
(D) None of the above

Paper-III

14

44.

According to Gurley and shaw, the

various substitutes of currency and
commercial bank demand deposits
should be assigned different weights
according to
(A) their degree of replacement
(B) their degree of substitutability
(C) their share in the money market
(D) their share in money supply

45.

Assertion (A) : Primary financial

markets deals in new financial
claims.
Reason (R) : It mobilises savings
and supplies new capital to the
business units.
Codes :
(A) Both (A) and (R) are correct
and (R) is the correct
explanation of (A).
(B) Both (A) and (R) are correct
and (R) is not a correct
explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.

46.

Margin requirement specified under

which instruments of monetary
policy ?
(A) Variable Reserve Requirement
(B) Statutory Liquidity Requirement
(C) Selective Credit Controls
(D) Open Market Operations

47.

As per Micro, Small and Medium

Enterprise Development Act, 2006,
Medium Enterprises are defined as
those with investments :
(A) < 25 lakhs
(B) 25 lakhs to 5 crores
(C) 5 crores to 10 crores
(D) > 10 crores
J-01-14

41.

42.

(...) ?
(A)

(B)

(C) ()


:
,

(D)




:
I.
(H)
II. (C)
III. (M)
IV. (RR)
V. (ER)
VI. (D)
M
D+C
=
H C + RR + ER
H
D+C
(B) M = C + RR + ER
M
C + RR + ER
(C) D + C =
H
H C + RR + ER
(D) M =
D

44.

,


?
(A)
(B)
(C)
(D)

45.

(A) :

(R) :


:
(A) (A) (R) (R),
(A)
(B) (A) (R) (R),
(A)
(C) (A) , (R)
(D) (A) , (R)

46.

( )

?
(A)
(B)
(C)
(D)

47.

,
, 2006 ,

?
(A) < 25
(B) 25 5
(C) 5 10
(D) > 10

(A)

43.

?
(A) ...
(B)
(C) ...
(D)

J-01-14

15

Paper-III

48.

52.

Theory of Industrial Location is

associated with the names of
I.

Losch

Suggest the correct choices about the

nature
of
the
Environmental
Economics :

II.

Weber

I.

III.

Christaller

Nature of Market failure is

similar to public goods under
public finance.

IV.

Lerner

II.

Willingness to pay can be

negative.

III.

It deals for items which are not

used.

IV.

It deals for items which are

used.

Codes :
(A) I & II
(B)

I only

(C)

I, II and III

(D) I, II, III and IV

Codes :
(A) I, II, III & IV

49.

The Committees related to industrial

licensing policy are

(B)

I, II & III

(C)

II, III & IV

I.

Arjun Sengupta Committee

(D) II & IV

II.

D.G. Karve Committee

III.

Subimal Dutt Committee

IV.

R.K. Hazari Committee

53.

(A) I and II

Which of the following methods

would be used for estimation of price
change of a house due to either
pollution or good environment like
existence of park and scenic beauty ?

(B)

II and III

(A) Hedonic Method

(C)

III and IV

(B)

Contingent Valuation Method

(C)

Externality Effects

Codes :

(D) I, II and III

(D) All of the above

50.

51.

Which Industrial Policy Resolution

gave the public sector a strategic role
in the Indian Economy ?
(A) 1948

(B)

(C)

(D) 1980

1977

54.

In a life table which of the following

does not fit ?
(A) There are eight columns in a
life table.

1956

(B)

It tells the
mortality rate.

Average industrial growth rate during

Tenth Plan period was

(C)

Age-specific birth rate can be

derived from a life table.

(A) 5.3%

(B)

(C)

(D) 15.3%

(D) Age-specific life expectancy

can be estimated

Paper-III

10.2%

8.8%

16

age-specific

J-01-14

48.

?
I.

II.
III.
IV.
:
(A) I II
(B) I
(C) I, II III
(D) I, II, III IV

49.

I.

II. ..
III.
IV. ..
:
(A) I II
(B) II III
(C) III IV
(D) I, II III

50.

51.

?
(A) 1948
(B) 1956
(C) 1977
(D) 1980


(A) 5.3%

(C)
J-01-14

10.2%

(B)

8.8%

(D) 15.3%
17

52.

:
I.



II.

III. ,

IV. ,

:
(A) I, II, III IV
(B) I, II III
(C) II, III IV
(D) II IV

53.

()


?
(A)
(B)
(C)
(D)

54.

?
(A)
(B) -
(C) -

(D) -

Paper-III

55.

Optimum theory of population tells

about the relationship between

58.

Match the highest crop production

states given in List I with List II
from the given code :
List I
List II
(States)
(Highest crop
production)
a. West Bengal 1. Total course
cereals
b. Uttar Pradesh 2. Rice
c. Maharashtra 3. Potato
d. Gujarat
4. Groundnut
Codes :
a
b
c
d
(A) 2
3
1
4
(B)
3
2
1
4
(C)
4
2
3
1
(D) 1
3
4
2

59.

About minimum support price, find

out the correct combinations :
I.
If market price is higher,
farmers will sell to the
government.
II. It ensures minimum assured
price for the produce of the
farmers.
III. It helps in food security
mission.
IV. This is highly rewarding to
farmers because they earn huge
profits on their produce.
Codes :
(A) I, II & IV
(B) II, III & IV
(C) II & III
(D) II & IV

60.

Which of the followings have been

important in growth of rice and wheat
output in India after initiating green
revolution programme ?
I.
Changes in cropping pattern
II. Improved yields
III. Crop insurance
IV. Increased area under cultivation
Codes :
(A) II, III & IV (B) I, II & IV
(C) I, II & III
(D) I, III & IV

(A) Population and food supply

(B)

Population
resources

and

overall

(C)

Dependent population
working population

and

(D) Present population and growth

rate of population
56.

What is meant
neutralism ?

by

population

(A) Impact of population growth on

economic growth is negligible.
(B)

Growth rate of population is

hovering around stationary
population.

(C)

Impact of population growth on

food supply is neutral.

(D) Due to population growth,

change in age structure is
almost neutral.
57.

What is the essence of wage goods

model explained by Professor P.R.
Brahmananda in the Indian economy
context ?
(A) It tells about low wage rate in
the agriculture.
(B)

It tells about low wage rate for

labour in the economy.

(C)

It tells about shift of labour

from agriculture to industry.

(D) It tells about the impact of the

shortage of food items on the
wage rate and growth rate of
the economy.
Paper-III

18

J-01-14

55.

56.

?
(A)
(B)

(C)

(D)

(A)

57.

58.

(A)
(B)
(C)
(D)

(B)

(C)

(D)

(B)

(C)

(D)

J-01-14

19

a
2
3
4
1

b
3
2
2
3

c
1
1
3
4

d
4
4
1
2

59.

,
:
I.
,

II.

III.

IV.


:
(A) I, II IV
(B) II, III IV
(C) II III
(D) II IV

60.

?
I.

II.
III.
IV.
:
(A) II, III IV (B) I, II IV
(C) I, II III (D) I, III IV

, . ..
-
?
(A)

I
II :
II
I
(
()
)
a. 1.
b.
2.
c.
3.
d.
4.
:

Paper-III

61.

Green agriculture involves

(A) organic farming and emphasis
on horticulture
(B) avoiding pesticides, chemical
fertilizers while focussing on
horticulture and floriculture
(C) integrated pest management,
integrated nutrient supply and
integrated natural resource
management
(D) emphasis on food crops,
horticulture and floriculture

62.

The average cost function is given as

1
AC = 3 x2 10x + 9. The level of
output at which average cost is equal
to marginal cost is :
(A) 18
(B) 12
(C) 15
(D) 21

63.

65.

The estimated regression equation of

a firm producing scooter tyres is :
ln y = 3.56 + 0.31 ln X1 0.05 ln
X2 + 0.53 ln X3 + 0.37 ln X4,

R2 = 0.89 (Y = output and X1 to X4

are factor inputs).
Assuming that all the estimated
parameters
are
statistically
significant from zero, the firm has
(A) constant returns to scale
(B) decreasing returns to scale
(C) increasing returns to scale
(D) neutral returns to scale

66.

The test statistic used to test the

significance
of
the
adjusted
coefficient of multiple determination

(R2) is :
(A) ttest
(B) Ztest
2
(C) test
(D) Ftest

67.

Given that the CES production

function as :

The demand and supply functions are

given as : P = 30 5x and Ps = 3x 10

A[L

respectively (x = quantity). The

consumer surplus is
(A) 125
(B) 62.5
(C) 62.5
(D) 125
64.

The linear programming problem

specified as
Max : Z = 3x1 + 5x2 + 10x3
Sub to: x1 + x2 + x3 100
9x1 + x2 + 8x3 95
x1 + 8x2 + 3x3 60
2x1 + 7x2 + x3 150

68.

and x1 0, x2 < 0 and x3 > 0 has

(A)
(B)
(C)
(D)
Paper-III

a feasible solution
an optimal solution
multiple solutions
no solutions
20

K ]

Y=
+ (1 )
Match List I with List II and
select the answer from the codes
given below :
List I
List II
a. A
1. Factor intensity
b.
2. Elasticity of
substitution
c.
3. Factor
homogeneity
d.
4. Efficiency
parameter
Codes :
a
b
c
d
(A) 1
4
2
3
(B)
2
4
1
3
(C)
1
2
3
4
(D) 1
4
3
2
The technique used to estimate the
over-identified
system
of
simultaneous equations is
(A) ordinary least squares
(B) maximum likelihood
(C) limited information maximum
likelihood
(D) two stage least squares
J-01-14

61.

(A)
(B)

(C)

(D)

62.

,


,

: AC

65.

ln y = 3.56 + 0.31 ln X1 0.05 ln

X2 + 0.53 ln X3 + 0.37 ln X4

R2 = 0.89 ( Y = X1
X4 )

(A)
(B)
(C)
(D)

1
= 3 x2

66.

10x + 9

(A) 18
(C) 15
63.

64.

(B) 12
(D) 21
67.

:
P = 30 5x Ps = 3x 10 ,
x = :
(A) 125
(C) 62.5

( R 2)

?
(A) t-
(B) Z-
2
(C) -
(D) F-
... :
Y=

A[L

+ (1 )

K ]

I II

:
I
II
a. A
1.
b.
2.
c.
3.
d.
4.
:

(B) 62.5
(D) 125

:
Max :Z = 3x1 + 5x2 + 10x3

: x1 + x2 + x3 100
9x1 + x2 + 8x3 95

(A)
(B)
(C)
(D)

x1 + 8x2 + 3x3 60
2x1 + 7x2 + x3 150
68.

x1 0, x2 < 0 x3 > 0
(A)
(B)
(C)
(D)
J-01-14

21

a
1
2
1
1

b
4
4
2
4

c
2
1
3
3

d
3
3
4
2

(A)
(B)
(C)
(D)
Paper-III

69.

72.

Which of the following assumptions

are required to show the consistency,
unbiasedness and efficiency of the
OLS estimates
I.
E (t) = 0
II.

Var (t) = 2

cov (t, t j) = 0 for all values

of j 0
IV. t ~ N(0, 2)
Codes :
(A) II and IV only.
(B) I and III only.
(C) I, II and III only.
(D) All the above four
III.

70.

71.

I.

Kaldors approach

II.
III.

NIPFP method
O.P. Chopras method

IV.

Arjun Sengupta

Codes :
(A) I, II & III
(B)

II, III & IV

(C)

I, III & IV

(D) I & II

The sources of auto correlation

among the following are :
I.
Omitted explanatory variables
II. Interpolation in the statistical
observation
III. Mis-specification of the true
random term
IV. Economic variables to move
together over time
Codes :
(A) I and II only
(B) I, II and III only
(C) I, III and IV only
(D) All of the above

73.

74.

Arrange the following sub-sectors of

the services sector of the Indian
economy in ascending order of their
contributions to the GDP in recent
years :
I.
Trade, hotels and restaurants
II. Transport,
storage
and
communication
III. Financing, insurance, real
estate and business services
IV. Community,
social
and
personal services
Codes :
(A) I, II, III, IV
(B) II, IV, III, I
(C) II, I, III, IV
(D) I, III, IV, II

Paper-III

Which of the following can be linked

with those providing method for
estimating black money in India ?

What is the share of single

lane/intermediate lane in the total
length of National Highways ?
(A) 12 percent

(B)

(C)

(D) 29 percent

22 percent

15 percent

During which year, gross domestic

savings of the public sector turned
negative in the Indian economy ?
I.

1990 91

II.
III.

1995 96
1999 2000

IV.

2002 2003

Codes :

75.

II and III

(A) I and II

(B)

(C)

(D) I and IV

III and IV

What has been the projected

investment ratio for the infrastructure
development for the Eleventh Five
Year Plan of India ?
(A) 5.43 percent
(B)

6.53 percent

(C)

7.60 percent

(D) 9.34 percent

22

J-01-14

69.

,
()

?

OLS

I.

E (t) = 0

II.

Var (t) = 2

III.

cov (t, t

j)

= 0

72.

?
I.

II. .....
III. ..
IV.
:
(A) I, II III
(B) II, III IV
(C) I, III IV
(D) I II

73.

/ ?
(A) 12
(B) 15
(C) 22
(D) 29

74.

j 0
IV.

t ~ N(0, 2)

:
(A)
(B)
(C)
(D)
70.

71.

II IV
I III
I, II III

: :
I.

II.
III.
-
IV.
:
(A) I II
(B) I, II III
(C) I, III IV
(D)

I.
II.
III.
IV.

,
...
:
I.
,
II. ,
III. , ,

IV. ,

:
(A) I, II, III IV
(B) II, IV, III I
(C) II, I, III IV
(D) I, III, IV II

J-01-14

199091
199596
19992000
20022003

75.

23

II
III IV

(A) I

(B)

(C)

(D)

III
I IV
II

?
(A) 5.43
(B) 6.53
(C) 7.60
(D) 9.34
Paper-III

Space For Rough Work

Paper-III

24

J-01-14