SEP-2020

Question Match List–I with List–II

Type multiple_choice
Option A-III, B-I, C-IV, D-II correct
Option A-IV, B-I, C-II, D-III incorrect
Option A-I, B-III, C-II, D-IV incorrect
Option A-III, B-I, C-II, D-IV incorrect
Solution
Marks 2 1

Question The number of districts initially selected from the states under the
Intensive Area Development Programme (1960)
Type multiple_choice
Option One district from each state incorrect
Option Three districts from three states incorrect
Option Five districts from five states incorrect
Option Seven districts from seven states correct
Solution
Marks 2 1
Question Arrange the following growth economists in chronological order of when
they proposed their theories
A. Harod
B. Schumpeter
C. Rostow
D. Solow
Type multiple_choice
Option BACD correct
Option CDBA incorrect
Option ACDB incorrect
Option DBAC incorrect
Solution
Marks 2 1

Question What is the maximum penalty to be imposed under the Negotiable

Instrument Act for bouncing of a cheque?
Type multiple_choice
Option 6months incorrect
Option 1 year incorrect
Option 2 years correct
Option 5 years incorrect
Solution
Marks 2 1
Question Given the total revenue function, TR=1400Q- 6Q2 and total cost function,
TC= 1500+80Q at Q=100 units (where Q is the amount of ouput), which
one of the following is correct?
A. MR>MC
B. MC=80
C. MR<MC
D. MR=MC
Type multiple_choice
Option A and B are true only correct
Option B and C are true only incorrect
Option B and D are true only incorrect
Option Can’t be defined incorrect
Solution
Marks 2 1

Question Account payee crossing is defined in which section of the Negotiable

Instruments (NI) Act?
Type multiple_choice
Option Section123 incorrect
Option Section 124 incorrect
Option Section 125 incorrect
Option Not defined in NI act correct
Solution
Marks 2 1
Question Assertion (A) : Compared to a certain point on the contract curve, a point
above the contract curve is efficient
Reason (R): The contract curve represent the locus of points where the
marginal rate of substitution between two goods is the same for both the
individuals
Type multiple_choice
Option Both A are R are correct, R is the correct explanation of incorrect
A
Option Both A are R are correct, R is not the correct explanation incorrect
of A
Option A is correct but R is not correct incorrect
Option A is not correct but R is correct correct
Solution
Marks 2 1

Question Growth rate of population is

Type multiple_choice
Option Rate at which population increases per 1000 annum correct
Option Rate at which birth rate increases per annum incorrect
Option Rate at which population increases per 10000 annum incorrect
Option Rate at which fertility increases per annum incorrect
Solution
Marks 2 1
Question For the production function Q= ALαKβ
A. The coefficient A shows managerial efficiency
B. If α+β > 1, then the production function exhibits increasing returns
to scale
C. Marginal rate of technical substitution of L for K is given by βk/ αL
D. The marginal product of capital is given by β Q/K
Type multiple_choice
Option A , B and C only incorrect
Option A, B and D only correct
Option A, C and D only incorrect
Option A, B, C and D only incorrect
Solution
Marks 2 1

Question Labour force participation rate is given by

Type multiple_choice
Option 𝐿𝑎𝑏𝑜𝑢𝑟𝑓𝑜𝑟𝑐𝑒 ÷ 𝑇𝑜𝑡𝑎𝑙 𝑝𝑜𝑝𝑢𝑙𝑎𝑡𝑖𝑜𝑛 ×100 incorrect
𝑁𝑜.𝑜𝑓 𝑙𝑎𝑏𝑜𝑢𝑟𝑠 𝑒𝑚𝑝𝑜𝑙𝑦𝑒𝑑 ÷ 𝑙𝑎𝑏𝑜𝑢𝑟𝑓𝑜𝑟𝑐𝑒
×100
Option incorrect

Option 𝐿𝑎𝑏𝑜𝑢𝑟𝑓𝑜𝑟𝑐𝑒 ÷𝐴𝑑𝑢𝑙𝑡 𝑝𝑜𝑝𝑢𝑙𝑎𝑡𝑖𝑜𝑛 ×100 correct

𝑁𝑜.𝑜𝑓 𝑙𝑎𝑏𝑜𝑢𝑟𝑠 𝑒𝑚𝑝𝑜𝑙𝑦𝑒𝑑 ÷ 𝐴𝑑𝑢𝑙𝑡
𝑝𝑜𝑝𝑢𝑙𝑎𝑡𝑖𝑜𝑛 ×100
Option incorrect

Solution
Marks 2 1
Question Banking cash transaction tax (BCTT) was introduced with effect from

Type multiple_choice
Option 1st Jan 2015 incorrect
Option 1st June2005 correct
Option 1st Jan 2019 incorrect
Option 1st June 2009 incorrect
Solution
Marks 2 1

Question Maximum social welfare is guaranteed where a competitive firm exhibits

the following conditions (where MRPTxy is marginal rate of product
transformation of x for y)
Type multiple_choice
Option correct

Option incorrect

Option incorrect

Option incorrect

Solution
Marks 2 1
Question The cost of holding money by individuals
A. Loss of real value of money due to deflation
B. Foregone interest from savings
C. Utility forgone by not buying goods and services
D. Returns forgone by not holding other assets
Type multiple_choice
Option B C AND D correct
Option A B AND C incorrect
Option A B AND D incorrect
Option A C AND D incorrect
Solution
Marks 2 1

Question Match List–I with List–II

Type multiple_choice
Option A IV, B I, C III, D II correct
Option A IV, B I, C II, D III incorrect
Option A IV, B II, C III, D I incorrect
Option A I, B II, C III, D IV incorrect
Solution
Marks 2 1
Question A graph reflecting the relationship between a country’s per capita income
and its Inequality of income distribution is the
Type multiple_choice
Option Lorenz curve incorrect
Option Phillips curve incorrect
Option Laffer curve incorrect
Option Kuznets curve correct
Solution
Marks 2 1

Question Match List–I with List II

Type multiple_choice
Option A II, B III, C I, D IV correct
Option A IV, B III, C I, D II incorrect
Option A IV, B I, C III, B II incorrect
Option A II, B I, C III, D IV incorrect
Solution
Marks 2 1
Question Statement I: Industrialization strategy advocates trade and development
to overcome market failures through government policy
Statement II: It encourages technology transfer and export of
progressively more advanced products
Choose the correct answer:
Type multiple_choice
Option Both the statement are false incorrect
Option I is true II is false incorrect
Option I is false and II is true incorrect
Option Both are true correct
Solution
Marks 2 1

Question Assertion (A) : Marshall–Lerner condition should be fulfilled for the

success of devaluation
Reason (R): Devaluation makes exports costly and imports cheaper
Type multiple_choice
Option Both A are R are correct, R is the correct explanation of incorrect
A
Option Both A are R are correct, R is not the correct explanation incorrect
of A
Option A is correct but R is not correct correct
Option A is not correct but R is correct incorrect
Solution
Marks 2 1
Question Cross elasticity of demand of metro rides is 0.8 and total ridership per day
1.5 lakh. If price of bus ride rises by 5% the change in total metro rides will
be
Type multiple_choice
Option 4000 incorrect
Option 5000 incorrect
Option 6000 correct
Option 7500 incorrect
Solution
Marks 2 1

Question Match List–I with List–II

Type multiple_choice
Option A I, B III, C IV, D II incorrect
Option A II, B I, C III, D IV incorrect
Option A II, B I, C IV, D III incorrect
Option A I, B II, C IV, D III correct
Solution
Marks 2 1
Question Based on the order, state whether the first equation is identified?
Given the following structural model
Y1=3y2–3x1+x2+u1
Y2=y3+x3+u2
Y3=y1–y2–2x3+u3
Where y’s are the endogenous variables, x’s are predetermined variables
and u’s are random
Type multiple_choice
Option Over identified incorrect
Option Under identified incorrect
Option Exactly identified correct
Option Information not sufficient incorrect
Solution
Marks 2 1

Question Markowitz theory of portfolio management considers which of the

following assumptions?
A. Investors are pessimistic about start ups but optimistic about an
established business.
B. Investors have free access to fair and correct information on return
and risk.
C. Investors have a tendency to lean forwards a crypto currencies.
D. Investors are rational and maximize their utility with a given level
of income and money.
Choose the correct answer
Type multiple_choice
Option A AND B incorrect
Option B AND D correct
Option C AND D incorrect
Option A AND C incorrect
Solution
Marks 2 1
Question Which of the following statement is wrong

Type multiple_choice
Option 67% of Indian agriculturalists are marginal land holders incorrect
with less than 1 hector
Option 10% of agriculturalists have 10 hectors or more correct
Option In the rural sector, land is the principle source of income incorrect
Option Due to the high growth of population, the average size incorrect
of landholdings is small
Solution
Marks 2 1

Question Market failure is caused to the presence of

A. Poverty
B. Externalities
C. Market power
D. Private goods
Choose the correct answer
Type multiple_choice
Option A and B incorrect
Option B and C correct
Option B , C and D incorrect
Option B and C correct
Solution
Marks 2 1
Question GDP expresses in the terms of current price is called

Type multiple_choice
Option Real GDP incorrect
Option Net Domestic Product incorrect
Option Nominal GDP correct
Option Gross National Product incorrect
Solution
Marks 2 1

Question Statement I: The Rybczynski theorem postulates that at constant

commodity prices an increase in the endowment of one factor will
increase by a greater proportion the output of commodity, intensive in
that factor andwill reduce the output of the other country

Statement II: The Stolper-Samuelson theorem postulates that an increase

in the relative price of a commodity (for example as a result of a tariff)
decreases the return or earnings of the factor used intensively in the
production of the commodity.

Choose the correct answers

Type multiple_choice
Option Both are true incorrect
Option Both are false incorrect
Option I is true II is false correct
Option I is correct II is true incorrect
Solution
Marks 2 1
Question “The best system of taxation from the economic point of view is that
which has the best or the least bad economic effects“. Who said this?
Type multiple_choice
Option Musgrave incorrect
Option Marshall incorrect
Option HughDalton correct
Option Pigou incorrect
Solution
Marks 2 1

Question Overshooting model of exchange rate developed by economists Rudi

Dornbush, attempts to establish
Type multiple_choice
Option The fact why the foreign exchange market is never in incorrect
equilibrium
Option Relationship between sticky prices and volatile exchange correct
rates
Option The fact that forward rates of exchange are no good incorrect
predictors of future spot rates of exchange
Option No relationship between sticky prices and volatile incorrect
exchange rates
Solution
Marks 2 1
Question The concept of Good and Services Tax (GST) is originated in

Type multiple_choice
Option Canada correct
Option Britain incorrect
Option Germany incorrect
Option USA incorrect
Solution
Marks 2 1

Question Which one of the following response is true as a solution for simultaneous
equation bias?
A. OLS method
B. Principle Component Method
C. Two-stage Least Square Method ( 2 SLS method )
D. Full Information Maximum Likelihood method (FIML)
Choose the correct option
Type multiple_choice
Option A and B are true incorrect
Option B and C are true incorrect
Option C and D are true correct
Option A and D are true incorrect
Solution
Marks 2 1
Question The solution of the following game is given by

Type multiple_choice
Option Value of the game = 2. Best strategy for player A and B incorrect
are (A1, B1) respectively
Option Value of the game = 2. Best strategy for player A and B correct
are (A1, B1) or (A3, B1) or (A1, B3) respectively
Option Value of the game = 2. Best strategy for player A and B incorrect
are (A3, B1) respectively
Option Value of the game = 2. Best strategy for player A and B incorrect
are (A1, B3) respectively
Solution
Marks 2 1

Question Presence of a symmetric information in the market causes which of the

following?
A. Adverse selection
B. Marginal benefits of an additional unit of resources diminish with
an increasing number of unit of resources
C. Efficiency wages
D. Principal- agent problem
Choose the correct answer
Type multiple_choice
Option A B and D incorrect
Option B C and D incorrect
Option A and D correct
Option A and C incorrect
Solution
Marks 2 1

Question Seigniorage in banking means

A. The economic cost of providing a current within a given economy
 B. The difference between the face value of money and the cost of
providing it
C. The cost involved in running ATM’s
D. The cost of making debit/credit card in the economy
Choose the correct answers
Type multiple_choice
Option A and C only incorrect
Option B and C only incorrect
Option B and D only incorrect
Option A and B only correct
Solution
Marks 2 1

Question Statement I : Learning curve effect is related to a firm’s long run average
cost curve
Statement II : A swapped allocation is one that is Pareto efficient as well as
an equitable allocation
Choose the correct answers
Type multiple_choice
Option Both are true correct
Option Both are false incorrect
Option I is correct, II is false incorrect
Option I is false, II is true incorrect
Solution
Marks 2 1

Question The share of the service sector in the gross value added of India at current
 prices during 2018-2019 is between
Type multiple_choice
Option 45 to 47 percent incorrect
Option 50 to 52 percent incorrect
Option 53 to 55 percent correct
Option 60 to 62 percent incorrect
Solution
Marks 2 1

Question According to economic survey 2019, the top 5 trading partners of India
continue to be USA, China and UAE and
A. Saudi Arabia
B. Hong Kong
C. Singapore
D. Sri Lanka
Choose the correct answer
Type multiple_choice
Option C and D only incorrect
Option B and C only incorrect
Option A and D only incorrect
Option A and B only correct
Solution
Marks 2 1
Question Which of the situations represents an economic investment in the national
income calculation?
A. Buying a newly constructed house for self occupation
B. Buying of new shares
C. Buying a new car by a publishing house for delivering books
D. Buying a new car by a household
Choose the correct answer
Type multiple_choice
Option A B and C incorrect
Option A B C and D incorrect
Option A C and D incorrect
Option A and D correct
Solution
Marks 2 1

Question Inadequacy or absence of KYC ( know your Customer) standards can

subject a bank to serious and counter party risks as follows
A. Reputation risk
B. Compliance risk
C. Legal risk
D. Bankruptcy risk
Choose the correct answer
Type multiple_choice
Option A B and D incorrect
Option A B and C correct
Option B C and D incorrect
Option A C and D incorrect
Solution
Marks 2 1

Question Assertion (A) : High powered money is the source of all other forms of
money that impact money supply
 Reason (R): Credit is created by commercial banks
Type multiple_choice
Option Both A are R are correct, R is the correct explanation of incorrect
A
Option Both A are R are correct, R is not the correct explanation correct
of A
Option A is correct but R is not correct incorrect
Option A is not correct but R is correct incorrect
Solution
Marks 2 1

Question For any two equally likely, exhaustive and independent events A and B,
P(AB) will be equal to
Type multiple_choice
Option 0 incorrect
Option 0.25 correct
Option 0.50 incorrect
Option 1 incorrect
Solution
Marks 2 1
Question A growth model in which there are diminishing returns on each factor of
production but constant returns to scale and exogenous technological
changes that generate long term economic growth is the
Type multiple_choice
Option Leibenstein model incorrect
Option A K Sen model incorrect
Option Kalecki model incorrect
Option Solow model correct
Solution
Marks 2 1

Question Time series under the condition (Ext) = µ and cov ( xt,xt+k ) = Y (K) is said to
be
Type multiple_choice
Option Strictly stationery incorrect
Option Non stationery incorrect
Option Weakly stationery correct
Option Can’t be defined incorrect
Solution
Marks 2 1
Question Which of the following are the three states, which secured the highest
percentage state-wise share of tax revenue among states, as per
recommendations of the 14th finance commission?
A. Uttar Pradesh
B. Bihar
C. Madhya Pradesh
D. Andhra Pradesh
Choose the most appropriate answer
Type multiple_choice
Option A B and D only incorrect
Option A C and D only incorrect
Option A B and C only correct
Option B C and D only incorrect
Solution
Marks 2 1

Question Assertion(A) : The main cause of commercial bank failure is because of

providing inappropriate loans to bank insiders
Reason (R) : Bank employees are provided loans at lower interest rates

Choose the appropriate answer

Type multiple_choice
Option Both A are R are correct, R is the correct explanation of incorrect
A
Option Both A are R are correct, R is not the correct explanation correct
of A
Option A is correct but R is not correct incorrect
Option A is not correct but R is correct incorrect
Solution
Marks 2 1
Question Arrange the following in chronological order
A. Rational expectation Doctrine
B. Keynesian economics
C. Monetarism
D. Classical economics
Choose the correct answer
Type multiple_choice
Option BDCA incorrect
Option ADCB incorrect
Option ABCD incorrect
Option DBCA correct
Solution
Marks 2 1

Question Match List–I with List–II

List–I List–II
A. Absolute advantage theory of I. Heckscher–Ohlin
international trade II. Marshall
B. Factor proportion theory of trade III. Adam Smith
C. Offer Curve IV. Haberler
D. Opportunity cost
Choose the correct option
Type multiple_choice
Option A I, B III, C II, D IV incorrect
Option A III, B I, C II, DIV correct
Option A I, B III, C IV, D II incorrect
Option A III, B I, C IV, D II incorrect
Solution
Marks 2 1
Question Statement I : The endogenous growth theorists suggest, investment in
human capital, innovation and knowledge leads to economic growth

Statement II : Investment in human capital, innovation and knowledge

reduces the diminishing returns on investment

Choose the most appropriate answer

Type multiple_choice
Option Both are true correct
Option Both are false incorrect
Option I is correct, II is false incorrect
Option I is false, II is true incorrect
Solution
Marks 2 1

Question Given the total cost TC = Q3 – 10Q2 + 6Q, what will be the minimum
average cost? At what level of output will the minimum cost occur? (Q is
the level of output)
Type multiple_choice
Option Minimum average cost is ACmin = 35 at Q = 5 correct
Option Minimum average cost is ACmin = 175 at Q = 5 incorrect
Option Minimum average cost is ACmin = 170 at Q = 1 incorrect
Option Minimum average cost is ACmin = 45 at Q = 1 incorrect
Solution
Marks 2 1

Question Statement I : Mrs. Ursula K Hicks stated that, “Private finance whether of
firms of individuals, starts with a given income plan as a framework within
 which expenditure must be planned: public finance, on the contrary, starts
with a given expenditure plan and the authorities adjust their income by
means of taxes and resources to match the expenditure”

Statement II: Prof. Shiras pointed out that “public authorities differ from
private expenditure in that the former should balance income and should
not necessarily seek a profit in the manner that an individual would”

Choose the correct answer

Type multiple_choice
Option Both are true correct
Option Both are false incorrect
Option I is correct, II is false incorrect
Option I is false, II is true incorrect
Solution
Marks 2 1

Question Assertion (A): According to Walt W Rostow, the principle strategy of

development necessary for take-off was the mobilization of domestic and
foreign savings

Reason (R): mobilization of domestic and foreign savings is necessary to

generate sufficient investment to accelerate economic growth

Choose the correct answer

Type multiple_choice
Option Both A are R are correct, R is the correct explanation of correct
A
Option Both A are R are correct, R is not the correct explanation incorrect
of A
Option A is correct but R is not correct incorrect
Option A is not correct but R is correct incorrect
Solution
Marks 2 1
Question Given the sample size 400 with the sample mean 99, the population mean
100 and computed value of z statistic at 2.5, the value of population
standard deviation will be
Type multiple_choice
Option 59.17 incorrect
Option 123.46 incorrect
Option 8 correct
Option Cannot be determined incorrect
Solution
Marks 2 1

Question Based on the following Blacker’s stages of population growth diagram,

the portion between A, B and C implies

Type multiple_choice
Option Stages of low stationary incorrect
Option Population declining incorrect
Option Early expanding correct
Option Late expanding incorrect
Solution
Marks 2 1
Question According to the last census (2011), which Indian State has the minimum
sex ratio?
Type multiple_choice
Option Punjab incorrect
Option Delhi incorrect
Option Bihar incorrect
Option Haryana correct
Solution
Marks 2 1

Question For the given income consumption curve in the diagram, which one of the
following is correct

Type multiple_choice
Option Good x is inferior and good y is normal incorrect
Option Good y is inferior and good x is normal correct
Option Good x and good y are normal incorrect
Option Good x and good y are inferior incorrect
Solution
Marks 2 1
Question A decision free framework to identify a country’s most binding costraints
on economic growth is termed as
Type multiple_choice
Option Growth paradigm incorrect
Option Growth diagnostics correct
Option Growth stimulus incorrect
Option Growth paradox incorrect
Solution
Marks 2 1

Question Who said, “I believe that the objective for disinvestment should be to
benefit the public, the consumer and the investor at the same time to
improve competitiveness and eliminates monopoly?
Type multiple_choice
Option Manmohan singh incorrect
Option George Fernandes correct
Option Chidambaram incorrect
Option Yashwant Sinha incorrect
Solution
Marks 2 1
Question Match List–I with List–II
List–I List-II
A. Kerala I. Least urbanized
B. Punjab II. Highest percentage of S.C’s in
C. Himachal Pradesh their population
D. Madhya Pradesh III. Highest percentage of S.T’s in
their population
IV.Highest sex ratio
Type multiple_choice
Option A IV, B II, C I, D III correct
Option A I, B III, C II, DIV incorrect
Option A II, B I, C III, D IV incorrect
Option A IV, B I, C III, D II incorrect
Solution
Marks 2 1

Question Which one of the following price index numbers satisfies the factor revesal
test?
Type multiple_choice
Option Lapspeyres price index incorrect
Option Paasche’s price index incorrect
Option Walsh’s price index incorrect
Option Fisher’s price index correct
Solution
Marks 2 1

Question Assertion(A): If A is any Matrix given by A

 Then det A = 0, since all elements in column II are zero
Reason (R): Laplace expansion permits evaluation of a determinant along
any row or column
Type multiple_choice
Option Both A are R are correct, R is the correct explanation of correct
A
Option Both A are R are correct, R is not the correct explanation incorrect
of A
Option A is correct but R is not correct incorrect
Option A is not correct but R is correct incorrect
Solution
Marks 2 1

Question Forward exchange rates are useful for those who wish is
A. Protect themselves from the risk that the exchange rate will change
before a transaction is completed
B. Gamble that a currency will rise in value
C. Gamble that a currency will false in value
D. Exchange currencies at a point in time in the future
Type multiple_choice
Option A B and C only incorrect
Option A and B only incorrect
Option A and C only incorrect
Option ABCD correct
Solution
Marks 2 1
Question Harrod–Domar considers a functional economic relationship in which the
growth rate of the gross domestic product depends
A. Directly on the national net savings rate
B. Inversely on the national capital–output ratio
C. Directly on industrial growth
D. Inversely on agricultural growth
Type multiple_choice
Option A and B correct
Option A and C incorrect
Option B and D incorrect
Option C and D incorrect
Solution
Marks 2 1

Question What type of relationship exists between two variables, if all points on the
scatter diagram appear to fall on a straight line going upward from left to
right?
Type multiple_choice
Option Positive correlation incorrect
Option Perfect positive correlation correct
Option Negative correlation incorrect
Option Perfect positive correlation incorrect
Solution
Marks 2 1
Question If no industry (sector) draws its own output as in put, then the principle
diagonal element in the technological coefficient matrix will be
Type multiple_choice
Option -1 incorrect
Option +1 incorrect
Option Zero correct
Option Infinity incorrect
Solution
Marks 2 1

Question The combined liabilities of Centre and states as a percentage of GDP

during the two years 2016-2017 and 2017-2018 consolidated is at
Type multiple_choice
Option 69percent incorrect
Option 67percent correct
Option 68percent incorrect
Option 66percent incorrect
Solution
Marks 2 1
Question Which one of the following is not the objective of IMF?

Type multiple_choice
Option To promote international monetary cooperation incorrect
Option To ensure balanced international trade incorrect
Option To ensure exchange rate stability incorrect
Option To provide loans to the private sector correct
Solution
Marks 2 1

Question What is the value of the equilibrium level of income for the data given
below for an economy?
C=50+0.8Yd
t=20%
I=100
G=30

Type multiple_choice
Option 400 incorrect
Option 300 incorrect
Option 500 correct
Option 600 incorrect
Solution
Marks 2 1
Question Given the production function Q = 10 L0.8 K0.2, the marginal product of
labour (MPL) and capital (MPk) respectively are given by
A. MPL= 8 (K/L)0.2
B. MPL= 8 (L/K)0.2
C. MPK= 2 (L/K)0.2
D. MPK= 2 (K/L)0.2
Type multiple_choice
Option A and D are true incorrect
Option A and C are true correct
Option B and C are true incorrect
Option B and D are true incorrect
Solution
Marks 2 1

Question In the study of international economics, we use the tool of

Type multiple_choice
Option Microeconomic theory only incorrect
Option Macroeconomic theory only incorrect
Option Neither micro nor macro economic theory incorrect
Option Both micro and macro economic theory but we all correct
extend, adapt and integrate them
Solution
Marks 2 1
Question Absolute income hypothesis explain

Type multiple_choice
Option Consumer behavior correct
Option Producer behavior incorrect
Option Inflation incorrect
Option Government expenditure incorrect
Solution
Marks 2 1

Question Changes in terms of trade typically put less developed countries at a

disadvantage, because
Type multiple_choice
Option They specialize and trade in agricultural goods rather correct
than manufactured goods
Option They have higher labour cost incorrect
Option They specialize and trade in services like tourism incorrect
Option Industrialized countries practice unfair trade with less incorrect
developed countries
Solution
Marks 2 1

Question Match List–I with List–II

List–I List–II
 A. Karl Marx theory of population growth 1. Staticinterpretation
B. Blacker’s theory of population growth 2. Threestages
C. Landry’s theory of population growth 3. Fourstages
D. Prof. Sidgwick’s optimum population 4. Fivestages
theory

Choose the correct answer

Type multiple_choice
Option A IV, B II, C I, D III incorrect
Option A I, B III, C II, D IV incorrect
Option A II, B I, C III, D IV correct
Option A IV, B I, C III, D II incorrect
Solution
Marks 2 1

Question A leftward shift in a labour demand curve is caused by

Type multiple_choice
Option Increase in wage rate incorrect
Option Decrease in wage rate incorrect
Option Increase in marginal productivity of labour incorrect
Option Decrease in marginal productivity of labour correct
Solution
Marks 2 1

Question The government multiplier is given by (where c = MPC and t = tax rate)
Type multiple_choice
Option incorrect

Option incorrect

Option incorrect

Option correct

Solution
Marks 2 1

Question According to traditional neoclassical growth theory, output growth results

from
A. Increase in labour quantity and quality
B. Increase in capital
C. Increase in exports
D. Improvement in technology
Type multiple_choice
Option A B and C incorrect
Option A and B incorrect
Option B and C incorrect
Option A B and D correct
Solution
Marks 2 1

Question Match List–I with List–II

List–I List–II
Type multiple_choice
Option A III, B IV, C II, D I correct
Option A III, B II, C IV, D I incorrect
Option A III, B IV, C I, D II incorrect
Option A I, B III, C II, D IV incorrect
Solution
Marks 2 1

Question Match List–I with List–II

List–I List–II
A. Critical minimum effort theory I. C P Blacker
B. Neo classical growth theory II. W WRostow
C. Demographic transition theory III. R Solow
D. Age of high mass consumption IV. H Leibenstein
Type multiple_choice
Option A II, B I, C III, D IV incorrect
Option A III, B IV, C II, D I incorrect
Option A I, B II, C IV, D III incorrect
Option A IV, B III, C I, D II correct
Solution
Marks 2 1
Question Which of the following equations represent national income identity?
A. Y = C + I + X
B. Y = C + I + G + S
C. Y = C + I + G + (X-M)
D. Y = C + I + G + M
Choose the correct answer
Type multiple_choice
Option A only incorrect
Option C only correct
Option B C and D only incorrect
Option A B and D only incorrect
Solution
Marks 2 1

Question Which of the following committee’s has been constituted for doubling
farmer’s income by 2022?
Type multiple_choice
Option Ashok Mehta committee incorrect
Option Naresh Chandra committee incorrect
Option Rajeev Kumar committee incorrect
Option Ashok Dalwai committee correct
Solution
Marks 2 1
Question Given‘𝜎′as the standard deviation of a given series and if to each and
every observation of the series is added a constant ‘k’,
Type multiple_choice
Option incorrect
Option incorrect
Option correct
Option incorrect
Solution
Marks 2 1

Question Assertion (A): Chronic poverty is the main problem facing India
Reason (R): British colonial rule has caused unemployment in India
Type multiple_choice
Option Both A are R are correct, R is the correct explanation of incorrect
A
Option Both A are R are correct, R is not the correct explanation correct
of A
Option A is correct but R is not correct incorrect
Option A is not correct but R is correct incorrect
Solution
Marks 2 1
Question Match List–I with List–II
List–I List–II
A. Permanent income hypothesis I. F Modigliani
B. Relative income hypothesis II. J M Keynes
C. Absolute income hypothesis III. M Friedman
D. Life cycle hypothesis IV. J Dusenberry
Type multiple_choice
Option A II, B III, C IV, D I incorrect
Option A I, B IV, C III, D II incorrect
Option A III, B II, C I, D IV incorrect
Option A III, B IV, C II, D I correct
Solution
Marks 2 1

Question Which one of the following is a valid objective function as a linear

programming problem?
Type multiple_choice
Option Max Z = 5x2y incorrect
Option Max Z = 3x + 2y + 8xy incorrect
Option Max Z = 2x2+ 3y2 incorrect
Option Max Z = 5x + 2y correct
Solution
Marks 2 1

Question Population density refers to

Type multiple_choice
Option Number of male persons per square kilometers incorrect
Option Number of persons per cubic kilometers incorrect
Option Number of persons per square kilometers correct
Option Number of persons per 10 kilometers incorrect
Solution
Marks 2 1

Question Statement I: Growth in infrastructure is considered as an essential pre-

requisite for stepping up GDP growth

Statement II: It is vitally important to increase capital formation in India

Type multiple_choice
Option Both are not correct incorrect
Option I is correct, II is incorrect incorrect
Option Both are correct correct
Option I is incorrect, II is correct incorrect
Solution
Marks 2 1

Question If the disturbance term is heteroscedastic, which one of the responses

based on given statement is true?
 A. OLS estimators are biased
B. OLS estimators do not have the minimum variance property
C. Tests of significance based on OLS estimates will be inaccurate
D. OLS estimators are inconsistent
Type multiple_choice
Option A and B are true incorrect
Option A and C are true incorrect
Option B and C are true correct
Option A and D are true incorrect
Solution
Marks 2 1

Question Transportation cost of trade effects

A. Pattern of trade
B. Boundaries between tradable and non–tradable goods
C. Global supply chain
D. Boundaries of non-tradable goods
Choose the correct option
Type multiple_choice
Option A and B only incorrect
Option A B and C only correct
Option ABCD incorrect
Option D only incorrect
Solution
Marks 2 1

Question IS and LM curve analysis explain

A. Product market equilibrium
 B. Money market equilibrium
C. Capital market equilibrium
D. Foreign trade equilibrium
Choose the correct answers
Type multiple_choice
Option A and C only incorrect
Option A and D only incorrect
Option A and B only correct
Option C and D only incorrect
Solution
Marks 2 1

Question Which of the following are Hawkins Simon conditions?

A. Determinant A should be positive
B. Determinant (I-A) should be positive
C. Determinant (I-A) should be negative
D. Principal diagonal elements of Matrix (I-A) should be positive
Choose the correct answers
Type multiple_choice
Option A and C only incorrect
Option A and D only incorrect
Option B and D only correct
Option C and D only incorrect
Solution
Marks 2 1

Question Which of the following are forms of government borrowing?

A. Drawing from treasury
 B. Printing of currency notes
C. Borrowings from non bank public institutions
D. Borrowings from banking system
Choose the correct answer
Type multiple_choice
Option A B and C incorrect
Option A B and D incorrect
Option ABCD correct
Option A and D incorrect
Solution
Marks 2 1

Question White revolution refers to boost in the production of

Type multiple_choice
Option Rice incorrect
Option Milk correct
Option Egg incorrect
Option Honey incorrect
Solution
Marks 2 1

Question Offset of emissions are used

A. To reduce emissions
B. To provide green image
 C. For emission addition
D. To satisfy consumer preferences
Choose the correct options:
Type multiple_choice
Option ABC incorrect
Option ACB incorrect
Option ABD correct
Option BCD incorrect
Solution
Marks 2 1

Question Green electricity means

Type multiple_choice
Option Electricity produced from renewable sources of energy correct
Option Electricity from thermal plants incorrect
Option Electricity from gas powered plants incorrect
Option Hydro power incorrect
Solution
Marks 2 1

Question Impurepublicgoodsare

Type multiple_choice
Option Private goods incorrect
Option Public goods incorrect
Option A package of public and private goods correct
Option Harmful goods for the society incorrect
Solution
Marks 2 1

Question The way in which consumers can produce a green product from a brown
product
Type multiple_choice
Option Monopoly incorrect
Option Retail offsets correct
Option Price discrimination incorrect
Option Fiscal deficit incorrect
Solution
Marks 2 1

Question An example of green good is

A. White paper
B. Wind power
C. Forest products
 D. Solar energy
Choose the correct answer
Type multiple_choice
Option A and B incorrect
Option B and C incorrect
Option C and D incorrect
Option Band D correct
Solution
Marks 2 1

Question The externalities of government intervention in the economy can be found

in terms of
A. Market development
B. Money supply
C. Storage and price support in agriculture
D. Irrigation
Choose the correct answers
Type multiple_choice
Option ACD correct
Option ABD incorrect
Option ABC incorrect
Option AD incorrect
Solution
Marks 2 1

Question The statement “ dispute arises when the state expands to areas beyond
the realm of boundaries of the protective or tax-transfer state” was given
by
Type multiple_choice
Option Musgrave incorrect
Option Keynes incorrect
Option Dalton incorrect
Option Buchanan correct
Solution
Marks 2 1

Question Which one of the following objectives of public finance is not correct?

Type multiple_choice
Option Ensure macroeconomic stability incorrect
Option Ensure reduction of adverse balance of payments correct
Option Accelerate growth and development incorrect
Option Desired state of distribution incorrect
Solution
Marks 2 1

Question Which one of the following statements is true?

A. An expansion of the public sector has been a necessary and
constructive development and a strong public sector is needed
along with the capitalist market
B. There are several reasons for the state to embrace a much larger
 role
C. In India, state intervention through public finance policy has to play
an important role
D. Keynesian economics states that the state has to ensure full
employment
Choose the correct answer
Type multiple_choice
Option A and B incorrect
Option A B and C incorrect
Option AC correct
Option ABCD incorrect
Solution
Marks 2 1

Question Which one of the following does NOT fall in the category of government
transfers?
Type multiple_choice
Option National housing incorrect
Option Swachchh Bharat Abhiyan incorrect
Option Periodic Loan Weivers incorrect
Option Education correct
Solution
Marks 2 1