Direction:
Read the passage given below and answer the questions that follow it:
Suppose
that for a particular economy for some time period, investment was equal to
100, government expenditure was equal to 75t, net taxes were fixed at 100 and
consumption (C) was given by the consumption function: C = 25 + 0.8 YD ,Where
YD is disposable income and Y is GDP.
(Questions
1-3)
Q.1. what is the value of tax
multiplier (∆Y/∆T)?
A.
-2
B.
-3
C. -4
D.
-5
Q.2.What is the value of
government expenditure multiplier (∆Y/∆G)?
A.3
B.4
C.5
D.6
Q.3. What is the level of
equilibrium income(Y)?
A.600
B.
700
C.
800
D.
850
Q.4. Which of the following
is an example of a public good ?
A.
Residential building
B. National defence
C.
Restaurant meals
D.
Swimming pool of a house
Q.5. The excess supply of a
commodity above the no-trade equilibrium price given one nation’s?
A.
Import demand for the commodity
B.
Export supply and import demand for the commodity
C. Export supply of the
commodity
D.
Import supply of the commodity
Q.6. As income falls,
consumption declines but proportionately less than the decrease in income
because the consumer desires to sustain previous standard of living. This is
called?
A. Ratchet effect
B.
Wealth effect
C.
Demonstration effect
D.
Income effect
Q.7.Which
one is NOT axioms of inequality measures?
A.
Principles of scale invariance
B. Principle of equity
C.
Principles of translation invariance
D.
Axiom of decomposability
Q.8.
Under non- cooperative games, it is :
A.
Essential to understand one’s opponent’s point of view
B.
Not essential to understand one’s opponent’s point of view
C. Essential to understand one’s
opponent’s point of view and to deduce the likely responses accordingly
D.
Essential to understand one’s opponent’s likely responses
Q.9.
Which of the following statements are true regarding Cobb-Douglus production
function?
a)
It is long period production function
b)
It is short period production function
c)
It is based on increasing returns to scale
d)
Output elasticities with respect to factors are constant
Select
the correct option:
A.
(a) & (c)
B. (a) & (d)
C.
(b) & (c)
D.
(c) & (d)
Q.10.
Which of the following methods of selecting strategies is consistent with risk
averting behavior?
A. If two strategies have the
same expected profit, select the one with smaller
standard deviation
B.
If two strategies have the same standard deviation; select the one with smaller
expected profit
C.
If two strategies have the same standard deviation; select the strategy with
larger coefficient of variation
D.
If two strategies have different expected profits, select the one with the
larger standard deviation
Q.11.
Match the following
List
– I
(a)
Various combinations that a consumer can
purchase
(b)
Various combinations of two commodities providing equal satisfaction to
consumer
(c)
A set of indifference curves
(d)
Point of tangency of a budget line on an indifference curve
List
–II
(i)
Indifference map
(ii)
Indifference curve
(iii)
Budget line
(iv)
Consumer’s equilibrium
Choose
the correct option from those given below:
A.
a-i, b-ii, c-iv, d-iii
B.
a-iv, b-iii, c-I, d-ii
C.
a-ii, b-iii, c-iv, d-i
D. a-iii, b-ii, c-i, d- iv
Questions. (12-14)
COMPREHENSION:
DIRECTION: Go through the following paragraph and diagram and answer the questions given below:
DIRECTION: Go through the following paragraph and diagram and answer the questions given below:
Monopoly
charges a price above marginal cost, not all consumers who value the good at
more than its cost, buy it. Thus, the quantity produced and sold by a monopoly
is below the socially efficient level. The deadweight loss is represented by
the area of the triangle between the demand curve and the marginal cost curve.
Q.12.
which of the socially efficient level of production?
A.
OX1
B. OX2
C.
AX1
D.
CX2
Q.13.
Deadweight loss is represented by the area of
A.
X1X2CA
B.
X1BCX2
C.
OX1AE
D. BAC
Q.14.
what price will be charged under monopoly?
A.
OF
B.
X2C
C. OE
D.
OG
Q.15.
the inconsistency of which one of the following criteria is labeled as
Scitovsky Paradox?
A.
Little criterion
B.
Pareto criterion
C.
Bergson criterion
D. Kaldor-Hicks criterion
Q.16.
General Equilibrium analysis determines
A.
Prices & quantities in all markets simultaneously
B. Prices & quantities in
all markets simultaneously and explicitly takes feedback effects into account
C.
Feedback effects
D.
Prices in all markets
Q.17.
The firms are competitive and profit maximizing the demand curve for labour is
determined by
A.
The opportunity cost of workers’ time
B. The value of marginal product
of labour
C.
Offsetting income and substitution effect
D.
The value of marginal product of capital
Q.18.
Pareto’s marginal condition for efficiency in composition of output (product-mix)
requires
A.
1
B.
2
C.3
D.4
Q.19.
Why do individuals act in riskier ways after being insured?
A.
Due to the problem of adverse selection
B.
Due to the problem of false confidence
C. Due to the problem of moral
hazard
D.
Due to the problem of screening costs
Q.20.
The concept of fiscal deficit implies which of the following?
A.
Revenue and interest receipts minus revenue expenditures
B. Revenue receipts and recovery
of loans and other receipts minus total expenditure
C.
Receipts minus disbursement in capital account
D.
Total receipts minus total expenditure
Q.21.
Liquidity approach is also known by the name
A.
Gurley – Shaw approach
B. Radcliffe approach
C.
Traditional approach
D.
Monetarist approach
Q.22.
Vertical equity in taxation means that
A.
People in different income groups should be taxed equally
B. People in different income
groups should be taxed differently
C.
People in different groups should be charged proportionately
D.
Unequal people should be treated equally
Q.23.
The commodity or Net Barter Terms of trade are represented by the formula
Correct - 4
Q.24.
The long term chronic unemployment arising from imbalance between the skills
and other charact eristics of workers in the market and the need of employers
is known as
A.
Cyclical unemployment
B.
Frictional unemployment
C. Structural unemployment
D.
Seasonal unemployment
Q.25.
According to Marshall – Lerner condition for the foreign exchange market to be
stable, the sum of the elasticities of demand for imports and the demand for
exports should be
A.
Less than 1
B.
Equal to zero
C.
Equal to 1
D. More than 1
Q.26.
In J. Robinson’s growth model, capital accumulation depends on
A.
Savings- income ratio
B. Profit-wage relation and
labour productivity
C.
Profit- income ratio and capital productivity
D.
Savings- investment ratio
Q.27.
Which of the following is NOT the method of debt redemption?
A.
Refunding
B. Repudiation
C.
Sinking fund
D.
Capital levy
Q.28.
A tax is said to be direct,when
A. Impact and incidence fall
upon the same person
B.
Only incidence falls upon the same person
C.
Impact is shifted to another person
D.
Person escapes from paying tax
Q.29.
In the Balance of Payment Account, the transfer payments are included in which
one of the following?
A.
Capital Account
B.
Service Account
C. Current Account
D.
Official Reserve Account
30.
Which one of the following items is included in the Capital Account of the
balance of payment of a country?
A.
Investment income
B.
Invisibilities
C. Commercial borrowings
D.
Private transfer
Q.31.
Which of the following factors is NOT the cause for ‘market failure’?
A.
Asymmetric information
B.
Public good
C.
Externality
D. Lack of demand
Q.32. ‘Immiserizing growth’ is the term given by
A.
Amartya Sen
B.
N Kaldor
C.
Paul Krugman
D. Jagdish Bhagwati .
Q.33.
In efficiency wage model, the real wage is set to
A.
Minimize the efficiency of worker per rupee of real wages received
B.
Clear the labour market
C.
Not to clear the labour market
D. Maximize the efficiency of
workers per rupee of real wages received
Q.34.
Which of the following is NOT the function of a capital market?
A.
Mobilizing savings into investment
B.
Channelizing funds from less profitable to more profitable
C.
Mobilizing funds from surplus units to deficit units
D. Providing better returns to
direct investors
Q.35.
Which one of the following growth models takes technology as exogenous variable?
A. Solow model
B.
Robinson model
C.
Lucas model
D.
Todaro model
Q.36.
Three pillars of the Asia –Pacific Economic Cooperation (APEC) are
(a)
Trade and investment liberalization
(b)
Business facilitation
(c)
Economic and technical cooperation
(d)
Military cooperation
Choose
the correct option:
A.
a,b,d
B. a,b,c
C.
a,c,d
D.
b,c,d
Q.37.
During recession which of the following measures is initiated?
A. Cutting taxes and boosting
government spending
B.
Increasing taxes and decreasing government spending
C.
Keeping tax rates constant and increasing government spending
D.
Increasing tax rates and keeping government spending constant
Q.38.
A toll tax is a tax based on which of the following?
A. The benefit principles
B.
Horizontal equity
C.
Vertical equity
D.
Tax progressively
Q.39.
Calculate the rate of effective protection by using the formula g=t-ai×ti/1-ai,here
g=0.3, ai = 0.8 and ti= 0, then the value of t is
A.
0.2
B.
0.3
C.
0.1 .
D.
0.4
Note- none of the above (Revised
answer None)
Q.40.
Match the following
List
– I
a)
Theory of big push
b)
Warranted rate of growth
c)
Social dualism
d)
Endogenous growth theory
List
– II
i)
J H Boeke
ii)
Paul Romer
iii)
Rosenstein Rodan
iv)
R F Harrod
Choose
the correct option
A.
a-ii, b-iii, c-iv, d-i
B.
a-iii, b-I, c-iv, d-ii
C. a-iii, b-iv, c-I, d-ii
D.
a-iv, b-ii, c-iii, d-i
Q.41.
By ‘financial crowding out’ economist mean
A.
Credit rationing
B.
What the government borrows cannot be used for private investment
C. Government borrowings drive
up interest rate
D.
Reserve bank of India controls on commercial bank lendings
Q.42.
Direct credit programmes introduced
A.
Security – oriented credit
B.
Development – oriented credit
C. Purpose- oriented credit
D.
Welfare- oriented credit
Q.43.
Which of the following is NOT part of Wiseman and Peacock hypothesis?
A.
Concentration effect
B.
Displacement effect
C.
Inspection effect
D. Taxation effect
Q.44.
Which consideration a commercial bank does NOT keep in mind to manage its assets
and liabilities?
A.
Liquidity
B.
Profitability
C.
Solvency
D. Equity
Q.45.
External drains leave which type of impact on commercial bank?
A. Lowers the reserves of
bank .
B.
Increase further deposits
C.
Increase credit creation
D.
Creates demand deposits
Q.46.
Assumes that an economy begins in macroeconomic equilibrium, then taxes are
significantly decreased. As a result of this change
A.
There is expansion and deflation in the economy
B.
There is recession and deflation in the economy
C. There is expansion and
deflation in the economy
D.
There is stagflation in the economy
Q.47.
An increase in money supply will increase the demand for goods and services by
A.
Reducing government spending
B. Lowering the interest rate so
that investment spending increases
C.
Raising interest rate so that investment spending reduces
D.
Increasing government spending on goods and services
Q.48.
The provision under the membership clause of the IMF is that any country can
become a member if
A.
The country is willing to be a member of the World bank and willing to pay
B.
The country is willing to be a member of the WTO and willing to pay all
subscriptions is glod
C. The country is willing to be
a member of the World bank and willing to pay subscription
D.
The country is willing to be a member of UNO and willing to pay subscription
Q.49.
Match the following
List-I
(a)
ICICI
(b)
IRBI
(c)
IFCI
(d)
IDBI
List
– II
(i)
1971
(ii)
1964
(iii)
1955
(iv)
1948
Choose
the correct option
A.
a-i, b-ii, c-iii, d-iv
B.
a-ii, b-iii, c-iv, d-i
C. a-iii, b-i, c-iv, d-ii.
D.
a-iii, b-ii, c-I, d-iv
Q.50.
An increase is fiscal spending leads to
A.
A shift of Phillips curve to the left
B.
A shift of Phillips curve to the right
C.
Movement along the Phillips curve such that unemployment rises inflation also
rises
D.no
option is available (Option not given by NTA)
ANS: Marks is to be allotted to
all appearing candidates
Q.51.
A foreign exchange risk involves the transaction exposure, the accounting exposure
and
A. The translation exposure
B.
The flexibility exposure
C.
The rigidity exposure
D.
The economic exposure
Q.52.
Which is NOT the main objective of credit control?
A.
Stabilization of general price level
B.
Promoting economic growth
C.
Ensuring adequate flow of credit to productive sectors
D. Promoting economic welfare
Q.53.
Match the following
List-I
a)
Accelerator and multiplier interaction
b)
Cambridge approach
c)
Life cycle hypothesis
d)
Efficiency wage model
List-II
i)
Modigliani, Ando and Brumberg
ii)
Akerlof and Yellen
iii)
Paul Samuelson
iv)
Alfred Marshal and A C pigou
Choose
the correct option
A.
a-i, b-iv, c-ii, d-iii
B. a-iii, b-iv, c-i, d-ii
C.
a-ii, b-i, c-iii, d-ii
D.
a-iv, b-iii, c-ii, d-i
Q.54.
According to Marxian analysis the surplus value depends upon
A. Surplus and necessary labour
time
B.
Necessary labour time only
C.
Surplus labour time only
D.
Nominal wage rate
Q.55.
The liquidity aggregates are classified as
A. L1,L2 and L3
B.
M1,M2 and M3
C.
NM3
D.
M1, M2, M3 and M4
Q.56.
During a depression which of the following policy instruments should be used?
A.
Taxes should be increased
B. Taxes are kept unchanged and
public expenditure is increased
C.
Public expenditure is reduced
D.
There should be a balanced budget
Q.57. Which one of the following does NOT
determine the amount of years of schooling demanded by an individual to qualify
for modern job?
A.
The wage or income differential
B.
The probability of success in finding modern sector employment
C.
Opportunity cost of schooling
D. Expansion of health care
infrastructure in urban sector
Q.58.
Who among the following is not associated with the endogenous growth theory?
A. Robert Solow
B.
Paul Romer
C.
Rebelo
D.
Robert Lucas
Q.59.
Under which system the central bank is authorized by law to issue a fixed
amount of notes against government securities and any excess is to be fully
backed by gold/silver?
A.
Maximum fiduciary system
B.
Minimum reserve system
C. Fixed Fiduciary system
D.
Maximum and minimum fiduciary system
Q.60.
The rational expectations hypothesis suggests that the for-casts that people make
concerning future inflation rates
A.
Consistently over estimates the actual rate of inflation in the future
B.
Are always correct
C.
Consistently under estimates the actual rate of inflation in the future
D. Are correct on an average but
are subject to errors that are distributed randomly
Direction: consider the following table that given the monthly per capita consumption expenditure (MPCE) of eight households and answer the question given below:
Question (61-63)
61. Estimate of head count ratio in state –A and state – B are
A. State A : 0.375 ; B: 0.375
B.
State A : 0.475 ; B: 0.375
C.
State A : 0.575 ; B: 0.575
D.
State A: 0.385; B: 0.425
Q.62.
From the table calculate the estimates of Square Poverty Gap Ratio (SPGR) and
then show that the SPGR in state A is
A.
Same as in state B
B.
Higher than that in state B
C. Lower than that in state B .
D.
Significantly different from zero
Q.63.
From the table calculate the estimate of Poverty Gap Ratio (PGR) for state A
and state B and select the correct option
A.
State A : 0.133 ; B: 0.0119
B.
State A : 0.153 ; B: 0.0135
C. State A: 0.0133 ; B: 0.119 .
D.
State A: 0.0153 ; B: 0.135
Q.64.
In an open economy input output model, the viability is examined by
A. Hawkins- Simon conditions
B.
Kuhn – Tucker conditions
C.
Dickey – fuller test
D.
Goldfeld Quandt test
Q.65.
When the null hypothesis is there as an equality the level of significance is
the probability of making
A.
Type –II error
B. Type – I error
C.
Type I & II errors
D.
Type I & III errors
Q.66.
In 2011 the proportion of urban population was more than 40% in the states of
A.
Tamil Nadu, Punjab, Andra Pradesh, Gujarat
B.
Tamil Nadu, Haryana, Gurajat, Maharastra
C.
Tamil Nadu, Kerala, Andra Pradesh, West Bengal
D. Tamil Nadu, Kerala,
Maharastra, Gujarat
Q.67.
A Linear programming problem can be solved by using
A.
ARIMA techniques
B. Simplex method
C.
Unit root method
D.
None of the above
Q.68.
Which age structure is important for demographic dividend?
A.
0-14
B. 15-59
C.
60 and above
D.
0-14 and 60 and above
Q.69.
The correct relationship among Arithmetic Mean (AM), Geometric Mean (GM) and
Harmonic Mean (HM) is
A.
GM = AM + HM
B.
AM < HM
C. (GM)2= HM* AM
D.
AM = GM-HM
Q.70.
In a two variable (X and Y ) regression analysis, the regression coefficient
are bxy= 0.6 and byx= 0.8. If y is dependent variable and x is independent
variable, what is the percentage of variations in Y explained by X?
A.
47%
B. 48%
C.
49%
D.
36%
Q.71.
The RBI made Indian rupee fully convertible in current account transactions
related to goods and services in the year
A.
1985
B.
2002
C. 1994
D.
2011
Q.72.
Standard Error (SE) of sample mean in random sampling from an infinite population
or in random sampling with replacement is given by
A.
1
B.
2
C.3
D.4
Q.73.
The IRR is the discount rate that equates the project NPV to ____ and benefit-
cost ratio to ____
A.
1,0
B. 0,1
C.
0,0
D.
1,1
Q.74.
Difference equation is concerned with
A. Discrete changes
B.
Continuous changes
C.
Both of the above
D.
None of the above
Q.75.
Multiplicative Decomposition model is used to
A. Deseasonalise the time series data
B.
Build cost of living index
C.
Test a hypothesis
D.
Estimate probability
Q.76.
Match the following
Type
–I
a)
Thomas Doubleday
b)
Thomas Sadler
c)
Leibenstein
d)
Herbert Spencer
Type
–II
i)
Destiny theory
ii)
Biological theory
iii)
Diet theory
iv)
Motivation theory of population growth
Choose
the correct option
A.
a-i, b-ii, c-iii, d-iv
B. a-iii, b-I, c-iv, d-ii
C.
a-iv, b-iii, c-ii, d-i
D.
a-iv, b-ii, c-I, d-iii
Q.77.
“Education as investment in human resources plays an important role among the
factors which contribute to economic growth”. This statement was given by
A.
New Education policy, 1985
B. Education Commission, 1966
C.
NCERT
D.
Supreme Court of India
Q.78.
Under TRIPS protection for copyrights is for
A.
20 years after the death of the author
B.
30 years after the death of the author
C.
40 years after the death of the author
D. 50 years after the death of
the author
Q.79.
Second National Commission on labour has recommended a three tier system
including
A.
Lok adalats, labour courts and labour commissions
B. Lok adalats, labour courts
and labour relations commissions
C.
Lok adalats, labour courts and judicial courts
D.
Lok adalats, labour courts and labour inspectors
Q.80.
The ‘Hedonic Price’ method measures the value of environmental assets through
A.
Using ‘existence’ of an environmental asset
B. Using linkages between
variations of In house
prices
C.
Using WTP to value of environmental assets
D.
Using WTA TO value of envionmental assets
Q.81.
Assertion (A): The share of the non-commodity sector in the national income
has been increasing in India
Reason
(R): Industry and agriculture have been growing at a relatively slower pace
in India
A. Both (A) and (R) are true and
R explains (A)
B.
Both (A) and (R) are true but R does not explain (A)
C.
(A) is true but (R) is false
D.
(A) is false but (R) is true
Q.82.
Market failure occurs in case of most of the environmental goods, because
A.
Environmental goods are rival products
B.
Environmental goods are excludable products
C.
Environmental goods are non rival in production
D. Environmental goods are non
rival and non excludable in consumption
Q.83.
Which of the following is NOT an instrument of capital market with special
reference to India
A.
Equity share
B.
Debenture
C.
Gold ETF
D. Commercial paper
Q.84.
Match the following
List
– I
a)
Gauss – Markov
b)
Coefficient of determination
c)
H0 : B2 = 0, H1: B2= 70
d)
Heteroscedasticity
List-II
i)
R^2
ii)
One sided test
iii)
Goldfeld – Quandt test
iv)
BLUE
Choose
the correct option
A. a-iv, b-i, c-ii, d-iii
B.
a-I, b-ii, c-iv, d-iii
C.
a-ii, b-iii, c-i, d-iv
D.
a-iii, b-I, c-ii, d-iv
Q.85.
Which of the following items completes the life table?
A.1
B.2
C.3
D.4
Q.86.
What is the equation of corrected birthrate?
A.1
B.2
C.3
D.4
Q.87.
Match the following
List
–I
a)
Skewness
b)
Variance
c)
Earthquake
d)
F –test
List
– II
i)
Dispersion
ii)
Random Variations
iii)
Ratio of variances
iv)
Lack of symmetry
Choose
the correct option
A.
a-iii, b-iv, c-i, d-ii
B. a-iv, b-I, c-ii, d-iii
C.
a-i, b-iii, c-iv, d-ii
D.
a-ii, b-I, c-iv, d-iii
Q.88.
If AR = 15 MR= 5, the price elasticity of demand is
A.
2.3
B. 1.5
C.
1.75
D.
1
Q.89.
In a binomial distribution, the probability of x successes in n trials in any
order is given
A.1
B.2
C.3
D.4
Q.90.
The cost function of a monopolist is C = 40+ 12X. Write the demand function as
P = 60- 3X. What is his profit maximizing output level?
A.
12
B.
11
C. 8
D.
9
Q.91.
“Under some conditions, it makes no difference to efficiency whether the polluter
has a right to pollute or the victim has a right to clean air”. This statement
is related to the work of:
A.
G Hardin
B. R Coase
C.
N Kaldor
D.
Julian Simon
Q.92.
Applying OLS to simultaneous equations results in the parameters being
A.
Inefficient
B.
Inconsistent
C.
Biased
D. Biased and Inconsistent
Q.93.
Match the following
List
–I
a)
World environment day
b)
World wildlife day
c)
World water day
d)
World population day
List
–II
i)
11th July
ii)
5th June
iii)
3rd March
iv)
22nd March
Choose
the correct option
A.
a- i, b-ii, c-iii, d- iv
B.
a-iii, b-i, c-iv, d-ii
C.
a-iv, b-iii, c-ii, d-i
D. a-ii, b-iii, c-iv, d-i
Q.94
A. 15
A. 15
B.
16
C. 27
D.
20
Q.95.
Which of the following is NOT correct with reference to the service sector of
Indian economy?
A.
Service sector has the largest share in the GDP
B. Service sector has the
largest share in employment
C.
Service sector’s growth has been higher than growth of agriculture sector
D.
Productivity per worker in service sector is highest
Q.96.
A simultaneous equation model is exactly identified, if
A. Unique numerical values of
structural parameters can be obtained
B.
More than one numerical value can be obtained for some of the parameters of the
structural equation
C.
Unique solution of all structural coefficients is not possible
D.
Structural coefficient cannot be estimated
Q.97.
National Food Security law covers
A.
65% of rural population
B.
70% of rural population
C. 75% of rural population
D.
80% of rural population
Q.98.
Which of the following is NOT part of the “PM Kisan Samman Nidhi” scheme as
announced on 1-02-2019?
A.
All farmers having land holdings up to 2 hectares are eligible under the scheme
B. The scheme will be applicable
from 1st April, 2019
C.
The government will transfers Rs. 6000 per annum in to the bank account of
eligible beneficiaries
D.
The money will be given in three equal installments of Rs. 2000 each
Q.99.
For a moderately skewed distribution, the value of mode is 10 and value of the median
is 20. Then the mean is
A.
15
B.
30
C. 25
D.
35
Q.100.Who
propounded optimum theory of the population?
A.
Robbins
B.
Dalton
C. Cannan
D.
Carr Saunders
