ECONOMICS
2020
(Paper-II)
Subject code-03
Paper code- K
– 0320
Time: 2 Hours
Maximum marks: 200
Note: This paper contains hundred (100) objective-type
questions. Each question carries two (2) marks. All questions are compulsory.
1.
The conditions of equilibrium of a firm are
(A) AC=MC with negative slope of MC
(B)
AR=MC with a positive slope of MC
(C)
MR=MC with a positive slope of MC
(D)
MR=MC with negative slope of MC
2. The learning curve shows the relation between
(A)
Expenditure on education and output
(B)
Inputs and cumulative output
(C)
Variable cost and output
(D)
Total fixed cost and output
3.
The Average Revenue (AR) of a monopoly firm is
(A)
Always more than the Marginal Revenue (MR)
(B)
Always less than the MR
(C)
Equal to the MR
(D)
some times more and sometimes lesser than the MR
4.
The demand for labor from a firm in imperfectly competitive seller is
(A)
greater than that of a perfectly competitive seller
(B)
The same as that of a perfectly competitive seller
(C)
More elastic than that of a perfectly competitive seller
(D)
Less elastic than that of a perfectly competitive seller
5.
Asymmetric information between two parties means
(A)
Neither party is well informed
(B)
Both parties are equally well informed
(C)
One party is better informed than the other party
(D)
The government is better informed than both parties
6.
Which of the following statements is correct?
(A)
Adverse selection is a problem that arises due to hidden actions
(B)
Adverse selection is a problem involving principals and agents
(C)
Moral hazard is a problem that arises due to hidden qualities
(D)
Moral hazard is a problem involving hidden actions
7.
Which of the following is not an objective of fiscal policy in a developing country?
(A)
Accelerating the rate of capital function without inflation
(B)
Accelerating investment
(C)
Maintain full employment
(D)
Price stability
8.
As capital stock increases, the Marginal Efficiency of Capital (MEC)
(A)
Increases
(B)
Decreases
(C)
Increase in the beginning later start decreasing
(D)
remains constant
9.
Phillip’s wage inflation and unemployment trade-off is based on
(A)
Extrapolative expectation hypothesis
(B)
Static expectation hypothesis
(C)
Adaptive expectations hypothesis
(D)
None of these
10.
In the IS-LM model, an increase in savings leads to
(A) The upward shift in LM curve
(B) The downward shift in LM curve
(C) The upward shift in IS curve
(D) The downward shift in IS curve
11.
The Bretton Woods System was based on (A) Gold Standard
(B)
Gold Exchange Standard
(C)
Flexible Exchange Rate System
(D)
Floating Exchange Rate System
12.
A college student drives his motorcycle from his home to college at an average
speed of 30 km per hour. While returning the home he drives at an average speed
of 20 km per hour. What is his average speed over the entire journey?
(A)
25 km per hour
(B)
24 km per hour
(C)
20 km per hour
(D)
None of these
13.
Inferential Statistics deals with the
(A)
Inference about a population based on sample results
(B)
Inference about sample-based on population results
(C)
Sampling method
(D)
None of the above
14.
Which one of the following statistical technique could be used to assess the
impact of change in input use on crop yield?
(A)
Correlation coefficient
(B)
Standard deviation
(C)
Coefficient of variation
(D)
Regression
15.
A Regression function with four independent variables has been computed for 25
observations. What are the degrees of freedom for numerator and denominator in
F test process?
(A)
4 and 21 respectively
(B)
4 and 20 respectively
(C)
3 and 20 respectively
(D)
None of these
16.
In the presence of heteroscedasticity, the best linear unbiased estimators are
provided by the method of
(A)
Maximum likelihood estimator
(B)
OLS
(C)
Indirect least square
(D)
Weighted least square
17.
Two countries can gain from foreign trade if
(A)
Price Ratios are different
(B)
Tariff Rates are different
(C)
Cost Ratios are different
(D)
Both (A) and (C)
18.
The value of ‘x's for a singular matrix A=
is
(A)
3
(B)
4
(C)
5
(D)
6
19.
Optimization of a function with one constraint can be solved through
(A)
Linear programming
(B)
Integration method
(C)
Input-output model
(D)
Lagrangian method
20.
The elasticity of demand for the demand function, Q = 50 + 4P – 2P2
at P = 5 is
(A)
3
(B)
– 2
(C)
– 4
(D)
None of these
21.
If y = x2 + x5 , find the dy/dx
(A)
2x2 + 5x5
(B)
2x + 5x4
(C)
x7
(D)
x2+7
22.
The dominant objective of Monetary Policy is
(A)
Money Supply
(B)
Controlling Demand for Money
(C)
Achieving Price Stability
(D)
Promoting Foreign Trade
23.
Logrolling is a form of
(A)
Tax shifting
(B)
Expenditure shifting
(C)
Preference shifting
(D)
Vote trading
24.
If the price elasticity of demand for a product is perfectly inelastic, the
entire tax incidence will be on
(A)
The buyers
(B)
The sellers
(C)
Shared between the buyers and sellers
(D)
The government
25. The crowding act effect is stronger if
(A)
Investment is more interest elastic
(B)
Investment is less interest elastic
(C)
Investment is interest inelastic
(D)
Investment is zero interest elastic
26.
Countries that impose no tax or very low tax are called as
(A)
Tax exempting countries
(B)
Tax neutral countries
(C)
Tax evading countries
(D)
Tax havens
27.
Which of the following statements is correct with respect to Performance and
Programme Budgeting System (PPBS)?
(A)
It stresses on outcome only
(B)
It stresses on expenditure allocation only (C) It stresses less on outcome and
more on expenditure allocation
(D)
It stresses more on the outcome and less on expenditure allocation
28.
A rise in the median age of the population is known as
(A)
Demographic Transition
(B)
Demographic Ageing
(C)
Demographic Instability (
D)
Demographic Momentum
29.
Which age group is included to calculate the child sex ratio?
(A)
0 – 3 years
(B)
0 – 5 years
(C)
0 – 10 years
(D)
0 – 6 years
30.
In a population pyramid, each bar represents an age range of
(A)
5 years
(B)
10 years
(C)
15 years
(D)
20 years
31.
Given harvesting rate as H, and regeneration rate as R; the thumb rule for the
optimum use of renewable resources is
(A)
H < R
(B)
H = R
(C)
H > R
(D)
As per market requirement
32. A lone fisherman is fishing in the sea with one boat and a net without having to
pay any kind of fees. In that situation, the fish caught by him will have which
of the following?
(A)
Zero economic cost of production
(B) The negative economic cost of production
(C)
Positive cost of production
(D)
Infinite cost of production
33.
‘Hartwick Rule’ states that
(A)
Physical and natural capital is substitutable
(B)
Physical and natural capital is complementary
(C)
Natural capital is essential for the development
(D)
Physical capital is renewable
34.
Harrod-Domar Model was adopted in which Five Year Plan of the following in
India? (A) Ninth Five Year Plan
(B)
Third Five Year Plan
(C)
Second Five Year Plan
(D)
First Five Year Plan
35.
The share of Direct Taxes estimated in the Union Budget 2019 – 20 was
(A)
52%
(B)
54%
(C)
56%
(D)
58%
36.
The population base considered for the 15th Finance Commission Devolutions is
(A)
1981
(B)
1991
(C)
2001
(D)
2011
37.
According to the Economic Survey 2019–20, which of the following service
sectors received highest FDI equity inflows during 2018–19?
(A)
Computer Software and Hardware
(B)
Hotel and Tourism
(C)
Financial Business, Outsourcing, R and D, courier, Tech Testing and Analysis
(D)
Consultancy Services
38.
Which year Department of Disinvestment has been renamed as Department of
Investment and Public Asset Management?
(A)
2014
(B)
2016
(C)
1991
(D)
2011
39.
The Fifteenth Finance Commission of India makes recommendations for the five year
period starting from
(A)
April 2019
(B)
April 2020
(C)
April 2021
(D)
April 2022
40.
‘Residex’ is associated with
(A)
Share prices
(B)
Mutual fund prices
(C)
Product prices
(D)
House prices
41.
Which among the below are the strategies used in game theory?
I.
Optimization
II.
Dominant
III.
Maximin
IV.
Minimax
Choose
among the codes below :
(A)
I, II, and III only
(B)
II, III, and IV only
(C)
I, III, and IV only
(D)
I, II, III, and IV
42.
When indifference curves are shaped as right angles?
I.
In the case of perfect complementary products
II.
When MRS is zero
III.
When MRS is infinite
IV.
When prices are declining
Codes
:
(A)
IV only
(B)
I and II
(C)
I, II, and III
(D)
I, II, III, and IV
43.
Competitive markets can be inefficient due to
I.
The presence of market power in input and output markets
II.
Incomplete knowledge to the consumers or producers
III.
The presence of externalities
IV.
Product differentiation
Select
the correct answer from the codes.
Codes
:
(A)
I, II, III and IV
(B)
I, II and IV
(C)
I, II and III
(D)
II and IV
44.
Which of the following are the ranges of the LM curve?
I.
Classical Range
II.
Keynesian Range
III.
Monetarist Range
IV.
Intermediate-Range
Codes
:
(A)
I, II and III
(B)
II, III and IV
(C)
I, III and IV
(D)
I, II and IV
45.
According to Keynes, the demand for money is positively related to
I.
Income level
II.
Interest level
III.
Price level
IV.
Investment level
Codes
:
(A)
I and II
(B)
II and III
(C)
I only
(D)
II and IV
46.
The components of “Reserve Money” includes
I.
Currency with the Public
II.
Demand Deposits with Banks
III.
Time Deposits with Banks
IV.
Bankers’ Reserves with Central Bank
Codes
:
(A)
I and II
(B)
II and III
(C)
I and IV
(D)
III and IV
47.
According to Rational Expectations theory, the expectations of inflation were
equal to what actually happened with some
I.
Minor errors
II.
Major errors
III.
Temporary errors
IV.
Permanent errors
Codes
:
(A)
I and II
(B)
II and III
(C)
III and IV
(D)
I and III
48.
Lorenz is more related to
1.
Inequality measurement
2.
Income and expenditure measurement
3.
Employment and Inflation Measurement
4.
Measurement of Balance of Payments
Codes
:
(A) 1 only
(B)
1 and 2 only
(C)
2 and 3 only
(D)
2 and 4 only
49.
Sustainable Development aims at
1.
Sustainable improvements in quality of life for all people
2.
Raising the standard of living
3.
Large scale industrialisation
4.
Resource Depletion
Codes
:
(A)
3 and 1
(B)
2 and 3
(C)
4 and 3
(D)
1 and 2
50.
The combination of reasons for a continuous decline in the average size of
holdings in India is
I.
Law of Inheritance
II.
Land Reforms
III.
Farm Mechanization
IV.
Desire to own land Select from the codes
below
:
(A)
I and II only
(B)
I and IV only
(C)
III and IV only
(D)
II and III only
51.
The scope of Land Reforms in India includes.
I.
Abolition of intermediaries
II.
Tenancy reforms
III.
Ceiling on land holdings
IV.
Consolidation of holdings
Codes
:
(A)
I and II
(B)
II and III
(C)
I, II and III
(D)
I, II, III and IV
52.
Comparative costs determine
1.
The Foreign trade
2.
What commodities will be bought and sold in foreign trade
3.
The domestic trade
4.
The GDP of the country
Codes
:
(A)
1 and 2
(B)
2 and 3
(C)
3 and 4
(D)
1 and 4
53.
According to the opportunity cost theory of International Trade, the PPC will be
a straight line and the PPC being concave to the origin indicates
1.
Constant opportunity cost
2.
Increasing opportunity cost
3.
Decreasing opportunity cost
4.
Both increasing and decreasing opportunity cost
Codes
:
(A)
2 and 3
(B)
1 and 2
(C)
2 and 4
(D)
4 and 1
54.
Infant Industry Argument is generally applicable to LDCs because
1.
LDCs have a potential comparative advantage in a particular commodity
2.
In LDCs initial production costs of the industry are very high due to small the initial level of production and lack of knowledge
3.
Only the LDCs have infant industries in a large number
4.
Developed countries have only infant industries
Codes
:
(A)
1 and 2
(B)
2 and 3
(C)
3 and 1
(D)
1 and 4
55.
Qd = 19 – 2P and Qs = 2P – 9 are the demand and supply
functions respectively. At market equilibrium, which of the following are
correct?
I. The equilibrium price is 2.5
II. The equilibrium quantity is 14
III. The equilibrium price is 7
IV. The equilibrium quantity is 11
Codes
:
(A)
I and II
(B)
I and IV
(C)
II and III
(D)
III and IV
56. The arithmetic mean and variance of a series reported being 200 and 256
respectively, given these values which of the following are correct? (σ =
Standard deviation, cv = Coefficient of Variation)
I.
σ = 65536
II.
cv = 32768
III.
σ = 16
IV.
cv = 8
Codes
:
(A)
I only
(B)
I and II only
(C)
III only
(D)
III and IV only
57.
Which of the following conditions are satisfied in the case of asymmetrical distribution?
I.
The value of mean, median and mode coincide
II.
The value of the mean, median, and mode do not coincide
III.
Data plotted on a graph gives a bell-shaped curve
IV.
Quartiles are equidistant from the median
Codes
:
(A)
I only
(B)
I and II only
(C)
I, III, and IV only
(D)
I, II, III, and IV
58.
Which of the following are true with respect to the relationship between R 2 and R2
?
I.
R 2 > R2
II.
R 2 < R2
III.
R 2 = R2
Codes
:
(A)
I only
(B)
II only
(C)
III only
(D)
II or III
59.
According to Friedman money supply at any moment of time is
1.
The number of dollars people carrying in their pockets
2.
The dollars people have in the form of bank deposits
3.
The dollars issued by the Central Bank
4.
The dollars in the account of the Central Bank
Codes
:
(A)
1 and 2
(B)
1 and 3
(C)
1 and 4
(D)
3 and 4
60.
Fiscal policy under inflationary conditions should
I.
Increase taxation
II.
Decrease public expenditure III. Reduce internal borrowing
Codes
:
A)
I only
(B)
I and II only
(C)
I, II, and III
(D)
III only
61.
Provisioning of public goods poses serious problems because
I.
they are non-rival in consumption
II.
They are subject to free-riding problem
III. A market mechanism for such goods is weak
Select
from codes below :
(A)
I and II only
(B)
I and III only
(C)
II and III only
(D)
I, II, and III
62.
Arrange the following taxes based on their declining progressivity.
I.
Personal income tax
II.
Pay-roll tax
III.
Sales tax
IV.
Corporate tax
Choose
from the codes below :
(A)
I, II, III, IV
(B)
IV, III, II, I
(C)
I, IV, III, II
(D)
IV, I, III, II
63.
Match List – I (Economists) with List-II (Concept) and indicate the correct
code given below the lists:
List
– I List – II
(Economist) (Concept)
1.
Kaldor a.
Technical change
2.
Nash b.
Externalities
3.
Pigou c. Duopoly
solution
4.
Hicks d. Compensation
criterion
Codes
:
1 2 3 4
(A)
d c b a
(B)
d a c b
(C)
a c b d
(D)
b c d a
64.
Match the Economists in List – I with the Concepts in List – II :
List
– I List – II
(Economists) (Concepts)
a.
F. Modigliani 1. Permanent
Income
b. J.M. Keynes 2.
Relative Income
c.
Milton Friedman 3. Life Cycle
Income
d. J. Duesenberry 4.
Absolute Income
Codes:
a b c d
(A)
1 2 3 4
(B)
2 3 4 1
(C)
4 3 2 1
(D)
3 4 1 2
65.
Match the functions in List – I with the Rules of differentiation in List – II
:
List
– I List – II
(Functions) (Rules of differentiation)
a.
Y = 2x2 + 3x8 1. Exponential function rule
b. Y = ex2 2. Product rule
c.
Y = (x3 + 3) (2x2 – 3x3) 3. Quotient rule
d.
Y= x-1/ x+1 = 4. Addition rule
Codes:
a b c d
(A)
4 1 3 2
(B)
4 1 2 3
(C)
3 2 1 4
(D)
2 3 4 1
66.
Match the sampling methods in List – I with concepts in List – II :
List
– I List – II
(Sampling
method) (Concepts)
a.
Random sampling 1. Large Geographical Area
b.
Deliberate sampling 2. Fixed
intervals
c.
Systematic sampling 3. Lottery
system
d.
Multi-stage sampling 4. Specific purpose
Codes
:
a b c d
(A)
1 2 3 4
(B)
2 1 4 3
(C)
3 4 2 1
(D)
4 3 1 2
67.
Match List – I (Economists) with List-II (Concepts) and indicate the correct
code given below the lists :
List
– I List – II
(Economists) (Concepts)
a.
Adolph Wagner 1.Increase in
public expenditure follows a step-wise manner
b.
Peacock and 2.Critical limit for
Wisemen the share of public expenditure is 25%
c.
Colin Clark 3.Voluntary
exchange theory
d.
Lindahl 4.Public
expenditure increases with the growth of the economy
Codes
:
a b c d
(A) 2 3 4 1
(B)
1 2 4 3
(C)
3 2 1 4
(D)
4 1 2 3
68.
Match the category of population in List – I with the unemployment rates in
List – II as per PLFS Report for 2017–18.
List
– I List – II
(Category
of population) (Unemployment) Rate)
a.
Rural male 1. 10.8
b.
Rural female 2. 5.8
c.
Urban male 3. 7.1
d.
Urban female 4. 3.8
Codes
:
a b c d
(A)
1 2 3 4
(B)
2 4 3 1
(C)
3 2 1 4
(D)
4 3 2 1
69.
Match the two lists given below and indicate the correct option from given
codes.
List
– I List –
II
1.
Soil erosion a. air
pollution
2.
Eutrophication b. water
pollution
3.
Sea level rise c. deforestation
4.
Damage to d. global warming monuments
Codes
:
1 2 3 4
(A)
d c b a
(B)
b d a c
(C)
c b d a
(D)
a c d b
70.
Indicate the correct order of the following cost curves based on the level of
output at which they attain minimum level?
1.
Average Variable Cost (AVC) Curve
2.
Average Total Cost (ATC) Curve
3.
Marginal Cost (MC) Curve
Choose
among the codes below :
(A)
3, 2, 1
(B)
2, 1, 3
(C)
1, 2, 3
(D)
3, 1, 2
71.
Arrange the following Growth Models in chronological order as they appeared.
I.
Harrod Model
II.
Mahalanobis Model
III.
Robert Solow Model
IV.
Kaldor Model
Codes
:
(A)
I II IV III
(B)
I III II IV
(C) I II III IV
(D)
II I III IV
72.
Arrange the following in chronological order.
I.
Hicks’ theory of Trade Cycle
II.
Keynes’ theory of Trade Cycle
III.
Kaldor’s theory of Trade Cycle
Codes
:
(A)
I, II, III
(B)
II, III, I
(C)
III, I, II
(D)
I, III, II
73.
Arrange the following development indicators as evolved in order.
I.
National Income
II.
Human Development India
III.
Per Capita Income
IV.
Physical Quality of Life Index
Codes
:
(A)
I III IV II
(B)
I II III IV
(C)
IV III II I
(D)
I III II IV
74.
Arrange the following events in chronological order, starting from the
earliest to the latest.
I.
Passage of Factories Act
II.
Passage of MRTP Act
III.
Passage of Industrial Development and Regulation Act
IV.
Passage of MSMED Act Select from the
Codes
:
(A)
I, II, III, IV
(B)
I, III, II, IV
(C)
IV, II, III, I
(D) II, I, IV, III
75.
Arrange the following in sequential order of their year of establishment.
I.
NABARD
II.
RBI
III.
RRB
IV.
Imperial Bank of India
Codes
:
(A)
I II III IV
(B)
IV II III I
(C)
IV III II I
(D)
IV I III II
76.
The correct ascending order of the following greenhouses gases by their respective
magnitude is.
I.
CO2
II.
CH4
III.
CFCs
IV.
N2 O
Select
from the codes below :
(A)
I, II, III, IV
(B)
IV, III, II, I
(C)
I, IV, II, III
(D)
IV, III, I, II
77.
Indicate the correct chronological sequence of the passage of the following Acts
in India. Choose from the codes given below:
I.
Wildlife Conservation Act
II.
Air (Prevention and Control of Pollution) Act
III.
Environmental Protection Act
IV.
Water (Prevention and Control of Pollution) Act
Codes
:
(A)
I, IV, II, III
(B)
IV, II, III, I
(C)
III, I, IV, II
(D)
II, III, I, IV
78.
Arrange the following in chronological order.
I.
National Career Service Project
II.
MGNREGA
III.
Code on Wages Act.
Codes
:
(A)
I, II, III
(B)
II, I, III
(C)
III, I, II
(D)
II, III, I
79.
Arrange the following lags in the effects of Macroeconomic policy in a
sequential order.
I. Recognition lag
II.
Implementation lag
III.
Impact lag
Codes:
(A)
II, I, III
(B)
I, II, III (
(C)
III, I, II
(D)
II, III, I
80.
Arrange the following Southern States in the decreasing order of sex ratio
according to the 2011 census.
I.
Andhra Pradesh
II.
Karnataka
III.
Kerala
IV.
Tamil Nadu
Codes
(A)
II, III, IV, I
(B)
II, IV, I, III
(C)
III, IV, I, II
(D)
III, I, IV, II
81.
Arrange the following theories in order in which they appeared.
1.
Leontief Paradox
2.
Absolute Cost Advantage Theory
3.
Factor Endowment Theory
4.
Comparative Cost Advantage Theory
Codes
:
(A)
1, 3, 2, 4
(B)
2, 3, 4, 1
(C)
2, 4, 3, 1
(D)
1, 4, 2, 3
82.
‘Given below are two statements, are labeled as Assertion (A) and the other
labeled as Reason (R).
Assertion
(A): When the price of x rises, the quantity demanded of y decreases.
Reason
(R): x and y are substitutes. In the context of the above statements which
of the following is true?
Codes
:
(A)
Both (A) and (R) are correct and (R) is the right 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 not correct
(D)
(R) is correct, but (A) is not correct
83.
Given below are two statements, one labeled as Assertion (A) and the other as
Reason (R).
Assertion
(A) : Deadweight loss is the net loss of consumer and producer surplus.
Reason
(R): Price controls result in Deadweight loss. In the context of the two
statements, which one of the following is correct?
Codes
:
(A)
Both (A) and (R) are true and (R) is the correct explanation of (A)
(B)
Both (A) and (R) are true and (R) is not the correct explanation of (A)
(C)
(A) is true, but (R) is false
(D)
(A) is false, but (R) is true
84.
Given below are two statements, one labeled as Assertion (A) and the other as
Reason (R).
Assertion
(A): Aggregate effective demand must be increased through reducing Public
expenditure to overcome the effects of depression.
Reason
(R): Decline in private expenditure is the basic cause for deficiency
in Aggregate effective demand. In the context of the above statements, which of
the following is true?
Codes :
(A)
Both (A) and (R) are correct and (R) is the correct explanation for (A)
(B)
Both (A) and (R) are correct, but (R) is not the correct explanation for (A)
(C)
(A) is correct, but (R) is not correct
(D)
(A) is not correct, but (R) is correct
85.
Given below are two statements, one labeled as Assertion (A) and the other as
Reason (R).
Assertion
(A): Marginal Efficiency of Capital (MEC) curve shows investment level at
different rates of interest.
Reason
(R): Technological innovation, which increases the productivity of Capital
Shift the MEC curve to the left. In the context of the above statements, which
of the following is true?
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 not correct
(D)
(A) is not correct, but (R) is correct
86.
Given below are two statements, one labeled as Assertion (A) and the other
labeled as Reason (R).
Assertion
(A): The Euro-Currency Market has contributed to the effective functioning
of the international economy.
Reason
(R): The Euro-Currency Market does not enable the movement of capital quickly
and easily when needed. In the context of the above statements, which of the
following is true?
Codes:
(A)
Both (A) and (R) are correct and (R) is the right explanation of (A)
(B)
(A) is correct, (R) is not the right explanation of (A)
(C)
(A) is correct, but (R) is not correct
(D)
(A) is not correct, but (R) is correct
87.
Given below are two sentences, one labeled as Assertion (A) and the other
labeled as Reason (R).
Assertion
(A): The opening up of trade between the two countries will benefit the
both.
Reason
(R): The possible barter terms of trade are set by the domestic exchange
ratios established by the relative efficiency of the factors of production. In
the context of the above statements, which of the following is true?
Codes:
(A)
Both (A) and (R) are individually true and (R) is the correct explanation of
(A)
(B)
(A) is correct, (R) is not the right explanation of (A)
(C)
(A) is correct, but (R) is not correct
(D)
(A) is not correct, but (R) is correct
88.
Given below are two statements, one labeled as Assertion (A) and the other
labeled as Reason (R).
Assertion
(A): According to Gurley and Shaw, NBFIs perform the intermediary role of
purchasing primary securities.
Reason
(R): The savings, deposits of NBFI’s resemble the Demand Deposits of
Commercial Banks. In the context of the above statements, which of the
following is true?
Codes
:
(A)
Both (A) and (R) are correct and (R) is the right explanation of (A)
(B)
(A) is correct, (R) is not the right explanation of (A)
(C)
(A) is correct, but (R) is not correct
(D)
(A) is not correct, but (R) is correct
89.
Given below are two statements, one labeled as Assertion (A) and the other
labeled as Reason (R).
Assertion
(A): Absolute poverty is the number of people who do not have income enough
to satisfy their basic needs.
Reason
(R): Poverty exists because of illiteracy only. In the context of the above
statements, which of the following is true?
Codes:
(A)
Both (A) and (R) are correct and (R) is the right explanation of (A)
(B) (A) is correct, (R) is not the right
explanation of (A)
(C)
(A) is correct, but (R) is not correct
(D)
(A) is not correct, but (R) correct
90.
Given below are two statements, one labeled as Assertion (A) and the other
labeled as Reason (R).
Assertion
(A): According to Karl Marx introduction of new technology is mainly a
labor-saving device resulting in the creation of surplus manpower.
Reason
(R): Industrial Revolution results in new technology.
In
the context of the above statements, which of the following is true?
Codes:
(A)
Both (A) and (R) are individually true, and (R) is the correct explanation of
(A)
(B)
Both (A) and (R) are individually true, but (R) is not the correct explanation
of (A)
(C)
(A) is true, (R) is false
(D)
(A) is false (R) is true
91.
Given below are two statements, one labeled as Assertion (A) and the other
labeled as Reason (R).
Assertion
(A): Encouragement to private participation in the development process is the the approach of the Government of India.
Reason
(R): Disinvestment of Central Public Sector Enterprises encourages greater
participation of the private sector in the development process. In the context of
the above statements, which of the following is true?
Codes:
(A)
Both (A) and (R) are true and (R) is the correct explanation of (A)
(B)
Both (A) and (R) are true, but (R) is not the correct explanation for (A)
(C)
(A) is true, but (R) is false
(D)
(A) is false, but (R) is true
92.
Given below are two statements, one labeled as Assertion (A) and the other as
Reason (R).
Assertion
(A): The ceiling of land holdings was never implemented properly in India.
Reason
(R): The State Governments in India have accepted the ceiling programs
officially, but they have rejected them in practice. In the context of the
above statements, which of the following is true?
Codes:
(A)
Both (A) and (R) are correct and (R) is the correct explanation for (A)
(B)
Both (A) and (R) are correct, but (R) is not the correct explanation for (A)
(C)
(A) is correct, but (R) is not correct
(D)
(A) is not correct, but (R) is correct
93.
Given below are two statements, one labeled as Assertion (A) and the other
labeled as Reason (R).
Assertion
(A): The slope of the LM curve is upward from left to right.
Reason
(R): For a given supply of money, an increase in the level of income,
increases demand money leading to a high rate of interest.
In
the context of the above statements, which of the following is true?
Codes:
(A)
Both (A) and (R) are correct and (R) is the right explanation of (A)
(B)
(A) is correct, (R) is not the right explanation of (A)
(C)
(A) is correct, but (R) is not correct
(D)
(A) is not correct, but (R) is correct
94.
Given below are two statements, one labeled as Assertion (A) and the other
labeled as Reason (R).
Assertion
(A): Environmental goods and services are overused and under-priced.
Reason
(R): Environment is a public good. In the context of the above statements,
which of the following is true?
Codes:
(A)
Both (A) and (R) are true and (R) is the correct explanation of (A)
(B)
Both (A) and (R) are true, but (R) is not the correct explanation of (A)
(C)
(A) is true, but (R) is false
(D)
(A) is false, but (R) is true
95.
Given below are two statements, one labeled as Assertion (A) and the other
labeled as Reason (R).
Assertion
(A): Indirect taxes promote inequality in the distribution of income.
Reason
(R): Poor bear more burdens of indirect taxes. In the context of the above
statements, which of the following is true?
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 not correct
(D)
(A) is not correct, but (R) is correct
Read
the following paragraph carefully and answer the questions from 96 to 100.
Economic
freedom enhances wealth creation by enabling efficient allocation of
entrepreneurial resources and energy to productive activities, thereby
promoting economic dynamism. The cross-country correlation of the index of
economic freedom with the density of new business registration, number of patents
applied and patents granted and innovation index shows that economic
freedom affects several aspects of wealth creation significantly. It is argued
that there is no need for government intervention when markets are functioning
properly. When markets are functioning well, government intervention leads to an adverse impact on economic freedom. Government can affect markets either
through direct participation as buyer and seller of goods and services or
indirectly through regulation, taxation, subsidy, or other ways. Any direct
intervention influences the dynamic interaction of supply and demand in the
market and thereby the equilibrium market price. For example, when the price is
too high, there is an excessive amount of the product for sale compared to what
people want. When the price is too low, it causes consumers to want more of the
product than producers have available. In both cases, serious wealth loss
results because not enough of the good is sold. The wasted chance to create
wealth both producer and consumer welfare from such sales leads to ‘deadweight
loss’ income that is lost forever. In addition to creating deadweight loss, an
artificially high price transfers profits from consumers to producers and
creates an opportunity for rent-seeking and an artificially low price leads to the transfer of profits from producers to consumers and leads to a low incentive to
invest further and aggravates the scarcity of the product.
96.
What could be an appropriate title for the above paragraph?
(A)
Strategies for Economic Development
(B)
Association between Economic Freedom and Welfare
(C)
Analysis of Policy Instruments
(D)
Measuring the impact of Economic Freedom
97.
Based on the above paragraph identify how government can affect markets
I.
Participating as buyer
II.
Participating as seller
III.
Through regulation
IV.
Through partnership
Codes:
(A)
I, II and IV
(B)
II, III and IV
(C)
I, II, and III
(D)
I, III and IV
98.
Which of the following are true according to the paragraph?
I.
With excess government intervention welfare loss results as not enough goods
are sold
II. The excess intervention leads to ‘deadweight losses
III.
Higher prices transfer profits from consumers to producers
IV.
Govt. intervention is necessary for the welfare of the weaker sections
Codes:
(A)
I, II, III and IV
(B)
I, II and IV
(C)
I, II and III
(D)
I, III and IV
99.
As per the argument presented in the above paragraph, scarcity of goods is due
to
(A)
Low incentive to invest
(B)
Scarcity of resources
(C)
Disturbances in the economy due to external factors
(D)
Natural calamities
100.
As per the paragraph presented above which of the following is not true?
(A)
Economic freedom and index of Innovation are positively associated
(B)
Government intervention is recommended under market failure
(C)
Economic freedom and political freedom are associated
(D) Government intervention is likely to
create opportunities for rent-seeking behaviour
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