UGC NET QUESTION PAPER (DECEMBER) 2018
1. The statement, “Too much money chasing too few goods” Is based on which of the theoretical concept?
1. Quantity Theory of Prices
2. Quantity Theory of Money✔
3. Real Balance Effect
4. Inventory theoretic approach to demand for money
2. If (K/L)A> (K/L)B then
1. Capital is dear in Country A.
2. Country A is heaving cheap labour.
3. Country A is Labour Abundant.
4. Country A is Capital Abundant.✔
3. What is not true for the Third Stage of Theory of Demographic Transition?
1. Birth Rate declines faster.
2. Death Rate declines but slowly
3. Population Growth becames zero.✔
4. Population growth Rate approxim-ately stabilises in a narrow range.
4. In an economy with linear homogeneous Cobb-Douglas production function, the shares of Capital and Labour in total output are, respectively, 40% and 60%. The capital stock and labour force are growing, respectively, at 8% and 3% per annum. If rate of growth of Output is recorded at 7% per annum, then the rate of growth of Total Factor Productivity will be
1. 11%
2. 10%
3. 4%
4. 2%✔
5. The National Rural Health Mission was launched in the year
1. 1998
2. 2009
3. 1991
4. 2005✔
6. An economic region of production consists of
1. The middle of all isoquants.
2. The negative slope portion of all Isoquants.✔
3. The highest point of all isoquants.
4. The positively slope portion of all isoquants.
7. An increase in the level of Government spending, other things being equal, will in IS-LM model
1. Increase interest rates, shifting the LM curve to left.
2. Increase the level of equilibrium income at all interestrates, shooting the IS cure to right.✔
3. Lower interest rate, shifting the LM curve to right
4. Always move the economy in full employment.
8. According to the cash-balance approach, the elasticity of demand for money
1. is less than one.
2. fluctuates with the changes in the phases of inflation.
3. is equal to one.✔
4. is more than one.
9. Which of the following act as an instrument to help in the borrowings by the government?
(i) Repo Rate (ii) Reverse Repo Rate (iii) CRR (iv) SLR Choose from the following correct options_
1. (iii) and (iv)
2. (i) and(iv)
3. (i) and (iv)
4. Only (iv)✔
10. In a hypothetical economy, the rate of growth of nominal GDP is 15% per annum, annual growth rate of GDP deflator is 5%. If the population is growing at the rate of growth of 2% per annum, what will be the annual growth rate of per capita real GDP?
1.10%
2. 3%
3. 7%
4. 8%✔
11. Who among the following economists treated nature to be niggardly?
(i) J.S. Mill (ii) David Ricardo (iii) Karl Marx (iv) Thomas Robert Malthus Choose the correct option from the codes given below.
1. (i), (ii) and (iii)
2. (ii) and (iv)✔
3. (ii) and (iii)
4. (iii) and (iv)
12. Development expenditure of the Central Government does not include
(i) Grant to states under Centrally Sponsored Scheme
(ii)Expenditure on social and community services
(iii) Expenditure on economic services
(iv) Defence Expenditure
Choose the correct option from the codes given below.
1. (ii) and (iii)
2. (iii) and (iv)
3. Only (iv)✔
4. (i) and (ii)
13. In the context of “Transformation of Aspirational Districts” programme, consider the following statements
(i) There are 115 districts in this programme.
(ii) The core strategy of this programme is convergence, collaboration and competition.
(iii) There are 49 key performance indicators to measure the progress of districts. Choose the correct option from the codes given below-
1. (i) and (iii)
2. (i) and (ii)
3. (i), (ii) and (iii)✔
4. (ii) and (iii)
14. Which of the following is/are true for Karl Marc’s Theory of Economic Development.
1. Relations in production change independently.
2. None of the above
3. Both above
4. Mode of production changes independently✔
15. Consider the following statements about the Average Fixed Cost of a Firm.
(i) It's slope is always negative.
(ii) It's slope is always greater than one.
(iii) It's slope is always equal to one.
(iv) Elasticity with respect to output is equal to one. Choose the correct answer from the codes given below-
1. (ii) and (iii)
2. (i) and (iv)✔
3. Only(i)
4. Only (iii)
16. T. W. Schultz has given the following ratios in relation to education for economic growth.
1. Education-labour ratio, education-income ratio and education-investment ratio.✔
2. Education-income ratio
3. Education-Capital and labour ratio
4. Education-labour ratio
17. Which of the following is not an objective of Marginal Cost of funds based Lending Rates (MCLR)?
1. To enable the RBI to achieve the inflation target.✔
2. To enable banks to be more competitive.
3. To improve the transmission of policy rates into the lending rates of banks.
4. To ensure availability of bank credit at interest rates which are fair to borrowers as well as banks.
18. Consider the following:
(i) Fridge Benefit Tax (ii) Capital Gains Tax (iii) Securities Transaction Tax Which of the following is/are Direct Tax/Taxes?
Choose the correct answer from the codes given below-
1. (i) and (iii) 2. (ii) and (iii) 3. (i), (ii) and (iii) ✔4. Only (i)
19. Which of the following is considered as the Third Stage in the Rostow’s Stages of Economic Growth Model?
1. High Mass Consumption
2. Traditional Society
3. Pre-condition for a Take-off
4. Take-off✔
20. Which of the following statements about Rational Expectations is false?
1. It implies that the expected change in demand have no effect on unemployment.
2. It assumes that people take account of all information.
3. It implies that unexpected changes in demand have long lasting effect on both unemployment and price level. ✔
4 It assumes that on an average the forecasts made by the public are correct.
21. As per SRS bulletin of Se 2017, the expected death rate of Kerala is 7.6, while for Bihar, it is 6. From these data which is the correct inference to draw?
1. Health condition of people in Bihar is better than that in Kerala.
2. Ageing of population in Kerala is faster than in Bihar.✔
3. Life expectancy in Bihar is higher than in Kerala.
4. Suicide rates in Kerala is very high.
22. The INADA conditions are applicable to
1. A well-behaved production function.✔
2. A well-behaved technical progress function.
3. A well behaved investment function.
4. A well-behaved consumption function.
23. The public expenditure in India is classified as capital and revenue. Which of the following is/are revenue expenditure?
(i) Subsidies (ii) Interest payment on public debt (iii) Wages and Salaries Choose from correct codes-
1. (i), (ii) and (iii)✔
2. (i) and (iii)
3. (i) and (ii)
4. (ii) and (iii)
24. consider the following statements:
(i) Minimum Support Prices (MSP) policy of India covers only wheat, paddy and coarse cereals.
(ii) Minimum Support Prices (MSP) for Grade-A paddy is always higher than that of the common paddy. Choose the correct answer from the codes given below-
1. Neither (i) nor (ii)
2. Only (ii)✔
3. Both (i) and (ii)
4. Only (i)
25. the presumption that costly new knowledge wuld be undersupplied by the private sector is based on the essential characteristics of new knowledge.
1. (A) Non-rivalous (B) Excludable
2 (A) Rivalous (B) Non-Excludable
3. (A) Non-rivalous (B) Non-Excludable✔
4. (A) Rivalous (B) Excludable
26. Technological dualism means
1. Prevalence of different production functions in the industrial sector in UDCs.
2. Prevalence of different technologies in agriculture sector in UDCs.
3. Prevalence of different production functions in domestic and export sectors of UDCs.
4. Prevalence of different production functions in the advance and traditional sectors in UDCs.✔
27. what is true for Neo-Classical growth model?
(i) Rate of interest and profit are flexible
(ii) Capital is heterogenous
(iii) Perfect competition prevails
(iv) capital and labour are substitutable Choose the correct answer from the code given below:
1. All of the above 3. (ii) and (iii)
2. (i), (ii) ✔(iv) 4. (i), (ii) and (iii)
28. Who among the following said that “Money is temporary abode of purchasing power?
1. Milton Friedman✔ 3. Irving Fisher
2. William J. Baumol 4. James Tobin
29. Which of the followingstatements about Pareto optimality is incorrect?
1. Consumers have cardinal utility functions.✔
2. consumers maximise their satisfaction.
3. All the factors are used in production of all the commodities.
4. There is perfect competition in the factors and commodity markets.
30. Consider the following statements in the context of New Trade Policy.
(i) It explains why countries trade in similar goods.
(ii) It assumes frree trade.
(iii) It assumes that trade takes place in monopolistic conditions.
(iv) it exploits the economies of scale in production. Which of the above statements are correct?
Choose the correct answer from the code given below:
1. (i) and (iii)
2. (i), (iii) and (iv)✔
3. (i) and (ii)
4. (ii) and (iv)
31. Which of the following correctly describe the Musgrave and Thin’s measure of tax progressivity? Where
Ga = Gini’s coefficient after tax, Gb= Gini’s coefficient before tax
1. M = Ga / Gb
2. M = (1- Gb) / (1- Ga)
3. M = Gb/ Ga
4. M = (1- Ga) / (1- Gb)✔
32. Devaluation will be more effective when
(i) International capital is freely mobile
(ii) International capital is not freely mobile
(iii) Marginal propensity to import is high Which of the above statements are correct?
Choose the correct answer from the code given below:
1. (i) and (iii)
2. Only (iii)✔
3. Only (ii)
4. (ii) and (iii)
33. What is required Capital Adequacy ratio for a new bank to apply for a licence, under the draft guidelines of RBI?
1. 10%
2. 12%✔
3. 9%
4. 11%
34. Who is the author of the book, ‘I do what I do’?
1. Jagdish N. Bhagwati
2. Arvind Panagariya
3. Amartya Sen
4. Raghuram G. Rajan✔
35. A rise in general price level may be caused by which amongst the following?
(i) An increase in the money supply
(ii) An increase in the aggregate level of output
(iii) An increase in the effective demand Choose the correct answer from the code given below:
1. Only (iii) 3. (i) and (ii)
2. (i) and (iii) ✔4. (i), (ii) and (iii)
36. Which of the following is the appropriate measure of openness of the economy?
1. Exports + Imports GDP✔
2. Exports – Imports
3. Exports Imports
4. Exports - Imports Population
37. Which of the following will result in the ‘crowding in’ effect in the economy?
(i) Public borrowings to finance spending on infrastructure
(ii) Public borrowings to finance spending on salaries and wages
(iii) Public borrowings to finance spending on health and education
(iv) Public borrowings to finance spending on skill development Choose the correct answer from the code given below:
1. (i) and (ii) 3. (iii) and (iv)
2. (i), (iii) ✔ (iv) 4. (i), (ii) and (iii)
38. Which of the following statements is true for Indian economy according to the World Bank figure for 2017?
1. None of the above
2. India is now thw world’s sixth biggest economy✔
3. Both above
4. India’s GDP amounted to $ 5 trillion at bthe end of 2017
39. According to Schumpter’s Theory of Development, which of the following statements is correct?
1. All the above are correct.
2. The expension of economic output is limited by the real savings of the economy.
3. None of the above are correct.✔
4. Democracy enhances the efficiency of an economic system.
40. Historically in terms of trade of the developing countries have been unfavourable due to the fact thta when income in developed countries rises, the demand for primary goods declines because
1. Income elasticity of demand for primary goods is zero.
2. Income elasticity of demand for primary goods is high.
3. Income elasticity of demand for primary goods is low.✔
4. Price elasticity of demand for primary goods is high.
41. Which amongst the following is/are correct for the Keynesian model?
1. It is supply determined.
2. It ignores the money market.
3. It assumes full employment of resources.
4. None of the above.✔
42. Which of the following is not a macro economic challange before Indian economy as of now?
1. Widening current account deficit
2. Depreciation of Indian rupee.
3. High imports of gold✔
4. Rising protectionism in the world.
43. Which among the following is not an instrument of Money Market?
1. Preference Shares✔
2. Certificate of Deposit
3. Treasury Bill
4. Commercial Paper
44. An income tax will be progressive if
1 Marginal rate of tax is equal to the average rate of tax.
2. Marginal rate of tax is greater than the average rate of tax.✔
3. Marginal rate of tax is less than the average ratre of tax.
4. Marginal rate of tax is zero.
45. ‘Round tripping’ in international trade is a method
1. To boost foreign direct investment.
2. Of financing start-ups.
3. To evade tax.✔
4. To increase exports.
46. To compute the ‘Index of Sustainable Economic Welfare’, which of the following corrections is/are made in the value of GDP?
1. Subtract the costs of environmental degradation.✔
2. Subtract the monetary value of loss due to floods and droughts. 3 Subtract the monetary value of expenditure on defence.
4. Subtract the monetary value of depreciation.
47. Which of the following Concept – Economists pairs is not correctively matched?
1. Turnpike Conjecture – Dorfman, Samuelson and Solow
2. Golden Rule of Accumulation – E.S. phelps
3. Super Multiplier – J.M. Keynes✔
4. Knife-edge Problem – Harrod Domar
48. Planning from below is known as
1. Functional Planning
2. decentralised Planning✔
3. Structural Planning
4. Centralised Planning
49. According to the Union Budget, which of the following Fiscal deficit targets for 2018-19 is correct?
1. 3.3% of the GDP✔
2. 5.3% of the GDP
3. 4.3% of the GDP
4. 4.5% of the GDP
50. Which of the following is not part of the Peacock – Wiseman Hypothsis?
1. Inspection Effect
2. Concentration Effect
3. Announcement Effect✔
4. Displacement Effect
51. In the year 2015-16, India has not been an importer of which of the following products?
(i) Apples (ii) Rice (iii) Pulses Choose the correct answer from the code given below:
1. (ii) and (iii)
2. (i) and (iii)
3. Only (ii) ✔
4. (i), (ii) and (iii)
52. Global Competitiveness Report is released by which of the following organisations?
1. World Trade Organisation
2. World Economic Forum✔
3. World Bank
4. European Union
53. Arrange the following events in chronological order regarding Indian Economy:
(i) First Phase of Nationalisation of Banks.
(ii) Establishment of Narasinhan Committee on the Banking System.
(iii) Enactment of FEMA At in India.
(iv) Establishment of EXIM Bank in India. Choose the correct answer from the code given below-
1. (i), (iv), (ii), (iii)✔
2. (i), (ii), (iii), (iv)
3. (i), (iii), (ii), (iv)
4. (i), (iii), (iv), (ii)
54. Opportunity cost theory assumes that
1. None of the above.✔
2. Labour is the only factor of production.
3. Labour is homogeneous.
4. Cost of commodity is equal to labour cost only.
55. Consider the following statements about the law of variable proportions:
(i) Input ratio remains unchanged.
(ii) Ultimately the marginal and average product of variable input becomes negative.
(iii) Effect of technological change is visible on output. Choose the correct answer from the code given below:
1. (ii) and (iii) are correct.
2. (i) and (ii) are correct.
3. None of the above statements is correct✔.
4. Only (ii) is correct.
56. Balance of payments on capital account does not include
1. Foreign portfolio investment.
2. Balancing foreign direct investment.
3. Net income transfers.✔
4. Government loans to foreign governments.
57. The original interpretation of balanced growth relates to
1. Large scale expansion of activities to overcome divergence between private and social benefits✔
2. Equal amount to investment in all sectors.
3. All sectors growing at the same rate.
4. Absence of shortages or excessive.
58. Arrange the following states in descending order according to Maternal Mortality Ratio (MMR) as per the Special Bulletin of SRS, May 2018:
(i) Assam (ii) Bihar (iii) Madhya Pradesh (iv) Uttar Pradesh Choose the correct answer from the code given below:
1. (i), (iv), (iii), (ii)✔
2. (iv), (i), (ii), (iii)
3. (ii), (iv), (iii), (i)
4. (iii), (ii), (i), (iv)
59. Which of the following is not included in the category of Bio-fuels?
1. Compressed Natural Gas✔
2. Gobar Gas
3. Biodiesel
4. Bioethanol
60. Match List-I with List-II and choose the correct answer from the code given below:
LIST – I LIST – II
(a) Absorptive capacity of capital (i) M. Kalecki
(b) Technological dualism
(ii) A. O. Hirschman
(c) Physical Quality of Life Index (iii) d. Morris
(d) Permissive and compulsive sequences of expanding industries
(iv) B. Higgins
Options:
1. (a)-(i)(b)-(iv) (c)-(iii) (d)-(ii)✔
2. (a)-(ii) (b)-(iv) (c)-(iii) (d)-(i)
3. (a)-(i) (b)-(ii) (c)-(iii) (d)-(iv)
4. (a)-(iv) (b)-(iii) (c)-(ii) (d)-(i)
61. Who among the following has been awarded the Noble Prize in Economics “for analysis of markets with asymmetric information”?
1. George A. Akerlof✔
2. Robert A. Mundell
3. Richard Thaler
4. Paul Krugman
62. In the basic neo-classical growth model, where does the growth equilibrium occur?
1. Where investment per worker is equal to savings per worker.✔
2. Where capital per worker equals output per worker
3. Where investment per worker equals depreciation of the capital for worker.
4. Where investment per worker equals capital per worker.
63. According to Bent Hansen, Which amongst the following were treated as factors enhancing effective demand?
(i) Public expenditure
(ii) Rising population
(iii) Banking and financial system Choose the correct answer from the code given below:
1. (i) and (ii)✔
2. (i) and (iii)
3. (i), (ii) and (iii)
4. (ii) and (iii)
64. According to New Classical Economics, Real Business Cycles are the result of the following?
(i) Innovations (ii) Bad Weather (iii) Tax Policy (iv) Debt Policy Choose the correct answer from the code given below:
1. (iii) and (iv)
2. (i) and (iii)
3. (i) and (ii)✔
4. (ii) and (iv)
65. The problem of adverse selection arises due to
1. Wrong information
2. Asymmetric information✔
3. No information
4. Full information
66. Which of the following are the objectives of the Commission for Agriculture Prices (CACP)
(i) To ensurer meaningful real income levels to the farmers
(ii) to stabilise agricultural prices
(iii) To protect the interest of the consumers Choose the correct answer from the code given below:
1. All of the above✔
2. (i) and (iii)
3. (ii) and (iii)
4. (i) and (ii)
67. Intellectual Property Rights include
1. All of the above✔
2. Trademark
3. Parents
4. Copyrights
68. Which of the following statements is /are correct about normal profit?
1. It is earned in both the long period and the short period✔
2. It is earned in the long period only
3. It is earned in perfect competition
4. It is earned in the short period only.
69. Match List – I (Authors) with List – II (Books) and choose the correct answer from the code given below: LIST – I LIST – II (Author) (Books)
(a) Milton Friedman
(i) Das Kapital
(b) Joseph Schumpeter
(ii) Capitalism and Freedom
(c) Karl Marx
(iii) Capital in the 21st century
(d) Thomas Piketty
(iv) Capitalism, Socialism and Democracy Code:
1. (a)-(iii)(b)-(ii) (c)-(i) (d)-(iv)
2. (a)-(iv) (b)-(iii) (c)-(i) (d)-(ii)
3. (a)-(ii) (b)-(iv) (c)-(i) (d)-(iii)✔
4. (a)-(iii) (b)-(i) (c)-(iv) (d)-(ii)
70. GST which came into effect 1st July 2017 has four (04) tax slabsapplicable to the commodities and services in India. Which
of the following tax slabs are correct?
1. 5%, 12%, 18% and 28%✔
2. 5%, 8%, 12% and 18%
3. 8%, 12%, 18% and 28%
4. 8%, 12%, 15% and 18%
71. Match List – I with List – II and choose the correct answer from the code given below: LIST – I LIST – II
(a) n = Pk (i) A. C. Pigou
(b) M = PkT (ii) Keynes
(c) P = kR/M (iii) Alfred Marshall
(d) M = kPY (iv) D.H. Robertson Codes
1. (a)-(ii)(b)-(iv) (c)-(i) (d)-(iii)✔
2. (a)-(iii) (b)-(ii) (c)-(i) (d)-(iv)
3. (a)-(iv) (b)-(i) (c)-(ii) (d)-(iii)
4. (a)-(i) (b)-(ii) (c)-(iii) (d)-(iv)
72. On which of the following do Keynesians and Monetarists afree?
1. The demand for money is interest elastic.✔
2. The most important cause of demand shocks in changes in supply.
3. When there is recessionary gap, flexible wages will retrieve the labour market to equilibrium quickly
4. Output deviates at times from the potential output because of demand shocks.
73. The price elasticity of a linear supply curve through the origin is
1. Infinite
2. Less than Unity
3. Unity✔
4. Zero
74 The concept of Universal banking in India was recommended by which of the following committee?
1. S. Padmanabhan Committee.
2. R.H. Khan Committee.✔
3. Abid Hussain Committee.
4. Y. H. Malegam Committee.
75. Consider the following diagram and the statements:
(i) Saving is positively related to income.
(ii) Marginal propensity is save is positive, but less than 1 Choose the correct answer from the code given below-
1. Only (i)
2. Neither (i) nor (ii)
3. Only (ii)
4. Both (i) and (ii)✔
76. Arrange the following crop insurance schemes in the chronological order of their launch:
(i) Comprehensive Crop Insurance Scheme
(ii) National Agriculture Insurance Scheme
(iii) Modified National Agriculture Insurance Scheme
(iv) Pradhan Mantri Fasal Bima Yojana Choose the correct answer from the code given below:
1. (iii), (ii), (iv), (i) 3. (ii), (iii), (i), (iv)
2. (i), (ii), (iii), (iv) ✔4. (i), (iii), (ii), (iv)
77. The frequent farm loan waivers in India may give rise to the problem of
1. Risk Aversion
2. Adverse Selection
3. Moral Hazard✔
4. Debt Overhang
78. Why are indirect taxes called regressive?
1. Both above are correct
2. None of the above are correct
3. They are charged at higher rates than direct tax
4. They are charged at the same rate for all income groups.✔
79. If for the constant elasticity of substitution production function, the valve of the substitution parameter (ρ) is = -1, the elasticity of substitution will be
1. Zero
2. Infinity ✔
3. Indeterminate
4. Unity
80. Which of the following statements is/are correct about Uzawa’s theorem?
1. The production function is linear homogeneous.
2. The technical progress is ‘Harrod Neutral’ only.
3. Growth rate of output per worker, consumption per worker and capital per worker are equal and constant overtime
4. All of the above✔
81. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reasons (R). Read the statements and choose the correct answer using the code given below.
Assertion (A): Business-cycles according to new classical economics are monetary in nature. Reason (R): These are the result of the fall in real wage rates.
1. (A) is false, but (R) is true.✔
2. Both (A) and (R) are true and (R) is correct explanation of (A).
3. (A) is true, but (R) is false.
4. Both (A) and (R) are true, but (R) is not the correct explanation of (A).
82. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reasons (R). Read the statements and choose the correct answer using the code given below.
Assertion (A): A progressive income tax is based on equimarginal sacrifice.
Reason (R): Higher the income, lower will be the marginal utility of money for the tax payer.
1. (A) is false, but (R) is true.
2. Both (A) and (R) are true and (R) is correct explanation of (A).✔
3. (A) is true, but (R) is false.
4. Both (A) and (R) are true, but (R) is not the correct explanation of (A).
83. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reasons (R). Read the statements and choose the correct answer using the code given below.
Assertion (A): In the P.N. Rosenstein-Rodan’s model, the positive role of indivisibilities in production has been analysed. Reason (R): Removal of indivisibilities leads to constant returns to scales to scale in production.
1. (A) is true, but (R) is false.✔
2. (A) is false, but (R) is true.
3. Both (A) and (R) are true and (R) is correct explanation of (A).
4. Both (A) and (R) are true, but (R) is not the correct explanation of (A).
84. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reasons (R). Read the statements and choose the correct answer using the code given below. Assertion (A): In an oligopolistic market, there is price rigidity. Reason (R): Rival firms match price decrease but not price increase.
1. Both (A) and (R) are true and (R) is correct explanation of (A).✔
2. Both (A) and (R) are true, but (R) is not the correct explanation of (A).
3. (A) is false, but (R) is true.
4. (A) is true, but (R) is false.
85. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reasons (R). Read the statements and choose the correct answer using the code given below. Assertion (A): India is a service sector driven economy. Reason (R): Share of the service sector in total employment is highest.
1. (A) is true, but (R) is false.✔
2. Both (A) and (R) are true, but (R) is not the correct explanation of (A).
3. (A) is false, but (R) is true.
4. Both (A) and (R) are true and (R) is correct explanation of (A).
86. In the context of simultaneous equations econometric models, consider the following statements:
(i) Both order and rank conditions for identification are to be satisfied before estimation.
(ii) Order condition is a necessary but not a sufficient condition of identification.
(iii) Two-stage least squares method is suitable for over-identified equations. Which of the above statements is/are correct? Choose the correct answer from the code given below:
1. Only (ii) 2. Only (i) 3. (i), (ii) and (iii)✔ 4. (i) and (iii)
87. Match LIST – I with LIST – II and choose the correct answer from the code given below: LIST – I LIST – II
(a) Delphi Method (i) Stationary
(b) Dickey-Fuller Test (ii) Autocorrelation
(c) Durbin-Watson Test (iii) Testing significance of a regression coefficient
(d) Student’s t-Test (iv) Forecasting Codes
1. (a)-(iv) (b)-(ii) (c)-(i) (d)-(iii)
2. (a)-(iv) (b)-(i) (c)-(ii) (d)-(iii)✔
3. (a)-(i) (b)-(ii) (c)-(iii) (d)-(iv)
4. (a)-(i) (b)-(iv) (c)-(iii) (d)-(ii)
88. Consider the following statements about a time series of annual observations on sales of a firm for ten years:
(i) The series will have seasonal variations
(ii) the series will have a secular trend
(iii) The series will have cyclical variations Choose the correct answer from the code given below:
1. (i), (ii) and (iii) 3. (ii) and (iii)✔
2. (i) and (iii) 4. (i) and (ii)
89. Harrod’s Growth model is given as under: St= αYt 0 < α < 1 It = β [Yt – Yt-1] β > 0 St = It
where St = Savings, Yt = Income, It = Investment, t = time
In this model for economic growth, the condition for economic growth is
1. β / (β – α) < 0
2. β / (α – β) > 0
3. β / (β – α) > 1✔
4. β / α > 0
90. If demand for a consumer is given by the function p = 27 - 3x - x2 (where x = quantity demanded, p = price), the consumer’s
surplus at x = 3 is
1. 50.5
2. 49.5
3. 31.5✔
4. 32.5
91. A monopolist faces a linear demand curve p = 100 – 4q, while his cost function is C = 50 + 20q. The profit maximising output for this monopolist is
1. 5
2. 10✔
3. 20
4. 40
92. By autocorrelation we mean that
1. The square of the residuals of a regression model are not equally spread.
2. The variance of the residuals of a regression model is not constant for all observations.
3. The residuals of a regression model are related with one or more of the regressors.
4. The residuals of a regression model are not independent.✔
93. in a two-variable regression, the correlation coefficient between dependent and independent variables Y and X is 0.7. What is the percentage of variations in Y explained by X?
1. 70%
2. 7%
3. 0.7%
4. 49%✔
94. A series of index numbers is given as follows: Year : 2014 2015 2016 Index Number : 100 120 126 If the base year is shifted to year 2015, the value of index number in the year 2016, in the new series will be:
1. 95.2
2. 106
3. 151.2
4. 105✔
95. In Regression Analysis, if a quantitative variable has ‘m’ categories, one can introduce
1. Only 2 m variables
2. Only m dummy variables
3. Only m +1 dummy variables
4. Only m – 1 dummy variables✔
96. The price elasticity of demand for a good with the demand function q = kp-r (here p is price, q is quantity demanded and k
and r are positive constants) is
1. 1/r
2. Not constantly as the function is non-linear
3. r✔
4. 1
97. A box contains 10 bulbs, 4 of which are defective. If 3 of the balls are drawn randomly without replacement, what is the probability that all three bulbs are defective?
1. 3/4
2. 3/10
3. 1/30✔
4. 4/10
98. For the diagram given below, which of the following is correct in terms of derivatives?
1. dy / dx > 0, d2y / dx2 > 0
2. dy / dx < 0, d2y / dx2 < 0
3. dy / dx < 0, d2y / dx2 > 0
4. dy / dx > 0, d2y / dx2 < 0✔
99. Though two time series are individually non-stationary, their linear combination is stationary. This is an example of
1. Spurious regression
2. Trend stationarity
3. Cointegration✔
4. Random walk
100. Match List – I with List – II and choose the correct answer from the code given below: LIST – I LIST – II
(a) Hawkins-Simon Conditions
(i) Theory of Games
(b) Saddle Point
(ii) Non-Linear Programming
(c) Simplex Method
(iii) Input-Output Analysis
(d) Kuhn-Tucker Conditions
(iv) Linear Programming CODES
1. (a)-(iii) (b)-(i) (c)-(iv) (d)-(ii)✔
2. (a)-(i) (b)-(ii) (c)-(iv) (d)-(iii)
3. (a)-(iii) (b)-(ii) (c)-(i) (d)-(iv)
4. (a)-(ii) (b)-(i) (c)-(iii) (d)-(iv)
1. Quantity Theory of Prices
2. Quantity Theory of Money✔
3. Real Balance Effect
4. Inventory theoretic approach to demand for money
2. If (K/L)A> (K/L)B then
1. Capital is dear in Country A.
2. Country A is heaving cheap labour.
3. Country A is Labour Abundant.
4. Country A is Capital Abundant.✔
3. What is not true for the Third Stage of Theory of Demographic Transition?
1. Birth Rate declines faster.
2. Death Rate declines but slowly
3. Population Growth becames zero.✔
4. Population growth Rate approxim-ately stabilises in a narrow range.
4. In an economy with linear homogeneous Cobb-Douglas production function, the shares of Capital and Labour in total output are, respectively, 40% and 60%. The capital stock and labour force are growing, respectively, at 8% and 3% per annum. If rate of growth of Output is recorded at 7% per annum, then the rate of growth of Total Factor Productivity will be
1. 11%
2. 10%
3. 4%
4. 2%✔
5. The National Rural Health Mission was launched in the year
1. 1998
2. 2009
3. 1991
4. 2005✔
6. An economic region of production consists of
1. The middle of all isoquants.
2. The negative slope portion of all Isoquants.✔
3. The highest point of all isoquants.
4. The positively slope portion of all isoquants.
7. An increase in the level of Government spending, other things being equal, will in IS-LM model
1. Increase interest rates, shifting the LM curve to left.
2. Increase the level of equilibrium income at all interestrates, shooting the IS cure to right.✔
3. Lower interest rate, shifting the LM curve to right
4. Always move the economy in full employment.
8. According to the cash-balance approach, the elasticity of demand for money
1. is less than one.
2. fluctuates with the changes in the phases of inflation.
3. is equal to one.✔
4. is more than one.
9. Which of the following act as an instrument to help in the borrowings by the government?
(i) Repo Rate (ii) Reverse Repo Rate (iii) CRR (iv) SLR Choose from the following correct options_
1. (iii) and (iv)
2. (i) and(iv)
3. (i) and (iv)
4. Only (iv)✔
10. In a hypothetical economy, the rate of growth of nominal GDP is 15% per annum, annual growth rate of GDP deflator is 5%. If the population is growing at the rate of growth of 2% per annum, what will be the annual growth rate of per capita real GDP?
1.10%
2. 3%
3. 7%
4. 8%✔
11. Who among the following economists treated nature to be niggardly?
(i) J.S. Mill (ii) David Ricardo (iii) Karl Marx (iv) Thomas Robert Malthus Choose the correct option from the codes given below.
1. (i), (ii) and (iii)
2. (ii) and (iv)✔
3. (ii) and (iii)
4. (iii) and (iv)
12. Development expenditure of the Central Government does not include
(i) Grant to states under Centrally Sponsored Scheme
(ii)Expenditure on social and community services
(iii) Expenditure on economic services
(iv) Defence Expenditure
Choose the correct option from the codes given below.
1. (ii) and (iii)
2. (iii) and (iv)
3. Only (iv)✔
4. (i) and (ii)
13. In the context of “Transformation of Aspirational Districts” programme, consider the following statements
(i) There are 115 districts in this programme.
(ii) The core strategy of this programme is convergence, collaboration and competition.
(iii) There are 49 key performance indicators to measure the progress of districts. Choose the correct option from the codes given below-
1. (i) and (iii)
2. (i) and (ii)
3. (i), (ii) and (iii)✔
4. (ii) and (iii)
14. Which of the following is/are true for Karl Marc’s Theory of Economic Development.
1. Relations in production change independently.
2. None of the above
3. Both above
4. Mode of production changes independently✔
15. Consider the following statements about the Average Fixed Cost of a Firm.
(i) It's slope is always negative.
(ii) It's slope is always greater than one.
(iii) It's slope is always equal to one.
(iv) Elasticity with respect to output is equal to one. Choose the correct answer from the codes given below-
1. (ii) and (iii)
2. (i) and (iv)✔
3. Only(i)
4. Only (iii)
16. T. W. Schultz has given the following ratios in relation to education for economic growth.
1. Education-labour ratio, education-income ratio and education-investment ratio.✔
2. Education-income ratio
3. Education-Capital and labour ratio
4. Education-labour ratio
17. Which of the following is not an objective of Marginal Cost of funds based Lending Rates (MCLR)?
1. To enable the RBI to achieve the inflation target.✔
2. To enable banks to be more competitive.
3. To improve the transmission of policy rates into the lending rates of banks.
4. To ensure availability of bank credit at interest rates which are fair to borrowers as well as banks.
18. Consider the following:
(i) Fridge Benefit Tax (ii) Capital Gains Tax (iii) Securities Transaction Tax Which of the following is/are Direct Tax/Taxes?
Choose the correct answer from the codes given below-
1. (i) and (iii) 2. (ii) and (iii) 3. (i), (ii) and (iii) ✔4. Only (i)
19. Which of the following is considered as the Third Stage in the Rostow’s Stages of Economic Growth Model?
1. High Mass Consumption
2. Traditional Society
3. Pre-condition for a Take-off
4. Take-off✔
20. Which of the following statements about Rational Expectations is false?
1. It implies that the expected change in demand have no effect on unemployment.
2. It assumes that people take account of all information.
3. It implies that unexpected changes in demand have long lasting effect on both unemployment and price level. ✔
4 It assumes that on an average the forecasts made by the public are correct.
21. As per SRS bulletin of Se 2017, the expected death rate of Kerala is 7.6, while for Bihar, it is 6. From these data which is the correct inference to draw?
1. Health condition of people in Bihar is better than that in Kerala.
2. Ageing of population in Kerala is faster than in Bihar.✔
3. Life expectancy in Bihar is higher than in Kerala.
4. Suicide rates in Kerala is very high.
22. The INADA conditions are applicable to
1. A well-behaved production function.✔
2. A well-behaved technical progress function.
3. A well behaved investment function.
4. A well-behaved consumption function.
23. The public expenditure in India is classified as capital and revenue. Which of the following is/are revenue expenditure?
(i) Subsidies (ii) Interest payment on public debt (iii) Wages and Salaries Choose from correct codes-
1. (i), (ii) and (iii)✔
2. (i) and (iii)
3. (i) and (ii)
4. (ii) and (iii)
24. consider the following statements:
(i) Minimum Support Prices (MSP) policy of India covers only wheat, paddy and coarse cereals.
(ii) Minimum Support Prices (MSP) for Grade-A paddy is always higher than that of the common paddy. Choose the correct answer from the codes given below-
1. Neither (i) nor (ii)
2. Only (ii)✔
3. Both (i) and (ii)
4. Only (i)
25. the presumption that costly new knowledge wuld be undersupplied by the private sector is based on the essential characteristics of new knowledge.
1. (A) Non-rivalous (B) Excludable
2 (A) Rivalous (B) Non-Excludable
3. (A) Non-rivalous (B) Non-Excludable✔
4. (A) Rivalous (B) Excludable
26. Technological dualism means
1. Prevalence of different production functions in the industrial sector in UDCs.
2. Prevalence of different technologies in agriculture sector in UDCs.
3. Prevalence of different production functions in domestic and export sectors of UDCs.
4. Prevalence of different production functions in the advance and traditional sectors in UDCs.✔
27. what is true for Neo-Classical growth model?
(i) Rate of interest and profit are flexible
(ii) Capital is heterogenous
(iii) Perfect competition prevails
(iv) capital and labour are substitutable Choose the correct answer from the code given below:
1. All of the above 3. (ii) and (iii)
2. (i), (ii) ✔(iv) 4. (i), (ii) and (iii)
28. Who among the following said that “Money is temporary abode of purchasing power?
1. Milton Friedman✔ 3. Irving Fisher
2. William J. Baumol 4. James Tobin
29. Which of the followingstatements about Pareto optimality is incorrect?
1. Consumers have cardinal utility functions.✔
2. consumers maximise their satisfaction.
3. All the factors are used in production of all the commodities.
4. There is perfect competition in the factors and commodity markets.
30. Consider the following statements in the context of New Trade Policy.
(i) It explains why countries trade in similar goods.
(ii) It assumes frree trade.
(iii) It assumes that trade takes place in monopolistic conditions.
(iv) it exploits the economies of scale in production. Which of the above statements are correct?
Choose the correct answer from the code given below:
1. (i) and (iii)
2. (i), (iii) and (iv)✔
3. (i) and (ii)
4. (ii) and (iv)
31. Which of the following correctly describe the Musgrave and Thin’s measure of tax progressivity? Where
Ga = Gini’s coefficient after tax, Gb= Gini’s coefficient before tax
1. M = Ga / Gb
2. M = (1- Gb) / (1- Ga)
3. M = Gb/ Ga
4. M = (1- Ga) / (1- Gb)✔
32. Devaluation will be more effective when
(i) International capital is freely mobile
(ii) International capital is not freely mobile
(iii) Marginal propensity to import is high Which of the above statements are correct?
Choose the correct answer from the code given below:
1. (i) and (iii)
2. Only (iii)✔
3. Only (ii)
4. (ii) and (iii)
33. What is required Capital Adequacy ratio for a new bank to apply for a licence, under the draft guidelines of RBI?
1. 10%
2. 12%✔
3. 9%
4. 11%
34. Who is the author of the book, ‘I do what I do’?
1. Jagdish N. Bhagwati
2. Arvind Panagariya
3. Amartya Sen
4. Raghuram G. Rajan✔
35. A rise in general price level may be caused by which amongst the following?
(i) An increase in the money supply
(ii) An increase in the aggregate level of output
(iii) An increase in the effective demand Choose the correct answer from the code given below:
1. Only (iii) 3. (i) and (ii)
2. (i) and (iii) ✔4. (i), (ii) and (iii)
36. Which of the following is the appropriate measure of openness of the economy?
1. Exports + Imports GDP✔
2. Exports – Imports
3. Exports Imports
4. Exports - Imports Population
37. Which of the following will result in the ‘crowding in’ effect in the economy?
(i) Public borrowings to finance spending on infrastructure
(ii) Public borrowings to finance spending on salaries and wages
(iii) Public borrowings to finance spending on health and education
(iv) Public borrowings to finance spending on skill development Choose the correct answer from the code given below:
1. (i) and (ii) 3. (iii) and (iv)
2. (i), (iii) ✔ (iv) 4. (i), (ii) and (iii)
38. Which of the following statements is true for Indian economy according to the World Bank figure for 2017?
1. None of the above
2. India is now thw world’s sixth biggest economy✔
3. Both above
4. India’s GDP amounted to $ 5 trillion at bthe end of 2017
39. According to Schumpter’s Theory of Development, which of the following statements is correct?
1. All the above are correct.
2. The expension of economic output is limited by the real savings of the economy.
3. None of the above are correct.✔
4. Democracy enhances the efficiency of an economic system.
40. Historically in terms of trade of the developing countries have been unfavourable due to the fact thta when income in developed countries rises, the demand for primary goods declines because
1. Income elasticity of demand for primary goods is zero.
2. Income elasticity of demand for primary goods is high.
3. Income elasticity of demand for primary goods is low.✔
4. Price elasticity of demand for primary goods is high.
41. Which amongst the following is/are correct for the Keynesian model?
1. It is supply determined.
2. It ignores the money market.
3. It assumes full employment of resources.
4. None of the above.✔
42. Which of the following is not a macro economic challange before Indian economy as of now?
1. Widening current account deficit
2. Depreciation of Indian rupee.
3. High imports of gold✔
4. Rising protectionism in the world.
43. Which among the following is not an instrument of Money Market?
1. Preference Shares✔
2. Certificate of Deposit
3. Treasury Bill
4. Commercial Paper
44. An income tax will be progressive if
1 Marginal rate of tax is equal to the average rate of tax.
2. Marginal rate of tax is greater than the average rate of tax.✔
3. Marginal rate of tax is less than the average ratre of tax.
4. Marginal rate of tax is zero.
45. ‘Round tripping’ in international trade is a method
1. To boost foreign direct investment.
2. Of financing start-ups.
3. To evade tax.✔
4. To increase exports.
46. To compute the ‘Index of Sustainable Economic Welfare’, which of the following corrections is/are made in the value of GDP?
1. Subtract the costs of environmental degradation.✔
2. Subtract the monetary value of loss due to floods and droughts. 3 Subtract the monetary value of expenditure on defence.
4. Subtract the monetary value of depreciation.
47. Which of the following Concept – Economists pairs is not correctively matched?
1. Turnpike Conjecture – Dorfman, Samuelson and Solow
2. Golden Rule of Accumulation – E.S. phelps
3. Super Multiplier – J.M. Keynes✔
4. Knife-edge Problem – Harrod Domar
48. Planning from below is known as
1. Functional Planning
2. decentralised Planning✔
3. Structural Planning
4. Centralised Planning
49. According to the Union Budget, which of the following Fiscal deficit targets for 2018-19 is correct?
1. 3.3% of the GDP✔
2. 5.3% of the GDP
3. 4.3% of the GDP
4. 4.5% of the GDP
50. Which of the following is not part of the Peacock – Wiseman Hypothsis?
1. Inspection Effect
2. Concentration Effect
3. Announcement Effect✔
4. Displacement Effect
51. In the year 2015-16, India has not been an importer of which of the following products?
(i) Apples (ii) Rice (iii) Pulses Choose the correct answer from the code given below:
1. (ii) and (iii)
2. (i) and (iii)
3. Only (ii) ✔
4. (i), (ii) and (iii)
52. Global Competitiveness Report is released by which of the following organisations?
1. World Trade Organisation
2. World Economic Forum✔
3. World Bank
4. European Union
53. Arrange the following events in chronological order regarding Indian Economy:
(i) First Phase of Nationalisation of Banks.
(ii) Establishment of Narasinhan Committee on the Banking System.
(iii) Enactment of FEMA At in India.
(iv) Establishment of EXIM Bank in India. Choose the correct answer from the code given below-
1. (i), (iv), (ii), (iii)✔
2. (i), (ii), (iii), (iv)
3. (i), (iii), (ii), (iv)
4. (i), (iii), (iv), (ii)
54. Opportunity cost theory assumes that
1. None of the above.✔
2. Labour is the only factor of production.
3. Labour is homogeneous.
4. Cost of commodity is equal to labour cost only.
55. Consider the following statements about the law of variable proportions:
(i) Input ratio remains unchanged.
(ii) Ultimately the marginal and average product of variable input becomes negative.
(iii) Effect of technological change is visible on output. Choose the correct answer from the code given below:
1. (ii) and (iii) are correct.
2. (i) and (ii) are correct.
3. None of the above statements is correct✔.
4. Only (ii) is correct.
56. Balance of payments on capital account does not include
1. Foreign portfolio investment.
2. Balancing foreign direct investment.
3. Net income transfers.✔
4. Government loans to foreign governments.
57. The original interpretation of balanced growth relates to
1. Large scale expansion of activities to overcome divergence between private and social benefits✔
2. Equal amount to investment in all sectors.
3. All sectors growing at the same rate.
4. Absence of shortages or excessive.
58. Arrange the following states in descending order according to Maternal Mortality Ratio (MMR) as per the Special Bulletin of SRS, May 2018:
(i) Assam (ii) Bihar (iii) Madhya Pradesh (iv) Uttar Pradesh Choose the correct answer from the code given below:
1. (i), (iv), (iii), (ii)✔
2. (iv), (i), (ii), (iii)
3. (ii), (iv), (iii), (i)
4. (iii), (ii), (i), (iv)
59. Which of the following is not included in the category of Bio-fuels?
1. Compressed Natural Gas✔
2. Gobar Gas
3. Biodiesel
4. Bioethanol
60. Match List-I with List-II and choose the correct answer from the code given below:
LIST – I LIST – II
(a) Absorptive capacity of capital (i) M. Kalecki
(b) Technological dualism
(ii) A. O. Hirschman
(c) Physical Quality of Life Index (iii) d. Morris
(d) Permissive and compulsive sequences of expanding industries
(iv) B. Higgins
Options:
1. (a)-(i)(b)-(iv) (c)-(iii) (d)-(ii)✔
2. (a)-(ii) (b)-(iv) (c)-(iii) (d)-(i)
3. (a)-(i) (b)-(ii) (c)-(iii) (d)-(iv)
4. (a)-(iv) (b)-(iii) (c)-(ii) (d)-(i)
61. Who among the following has been awarded the Noble Prize in Economics “for analysis of markets with asymmetric information”?
1. George A. Akerlof✔
2. Robert A. Mundell
3. Richard Thaler
4. Paul Krugman
62. In the basic neo-classical growth model, where does the growth equilibrium occur?
1. Where investment per worker is equal to savings per worker.✔
2. Where capital per worker equals output per worker
3. Where investment per worker equals depreciation of the capital for worker.
4. Where investment per worker equals capital per worker.
63. According to Bent Hansen, Which amongst the following were treated as factors enhancing effective demand?
(i) Public expenditure
(ii) Rising population
(iii) Banking and financial system Choose the correct answer from the code given below:
1. (i) and (ii)✔
2. (i) and (iii)
3. (i), (ii) and (iii)
4. (ii) and (iii)
64. According to New Classical Economics, Real Business Cycles are the result of the following?
(i) Innovations (ii) Bad Weather (iii) Tax Policy (iv) Debt Policy Choose the correct answer from the code given below:
1. (iii) and (iv)
2. (i) and (iii)
3. (i) and (ii)✔
4. (ii) and (iv)
65. The problem of adverse selection arises due to
1. Wrong information
2. Asymmetric information✔
3. No information
4. Full information
66. Which of the following are the objectives of the Commission for Agriculture Prices (CACP)
(i) To ensurer meaningful real income levels to the farmers
(ii) to stabilise agricultural prices
(iii) To protect the interest of the consumers Choose the correct answer from the code given below:
1. All of the above✔
2. (i) and (iii)
3. (ii) and (iii)
4. (i) and (ii)
67. Intellectual Property Rights include
1. All of the above✔
2. Trademark
3. Parents
4. Copyrights
68. Which of the following statements is /are correct about normal profit?
1. It is earned in both the long period and the short period✔
2. It is earned in the long period only
3. It is earned in perfect competition
4. It is earned in the short period only.
69. Match List – I (Authors) with List – II (Books) and choose the correct answer from the code given below: LIST – I LIST – II (Author) (Books)
(a) Milton Friedman
(i) Das Kapital
(b) Joseph Schumpeter
(ii) Capitalism and Freedom
(c) Karl Marx
(iii) Capital in the 21st century
(d) Thomas Piketty
(iv) Capitalism, Socialism and Democracy Code:
1. (a)-(iii)(b)-(ii) (c)-(i) (d)-(iv)
2. (a)-(iv) (b)-(iii) (c)-(i) (d)-(ii)
3. (a)-(ii) (b)-(iv) (c)-(i) (d)-(iii)✔
4. (a)-(iii) (b)-(i) (c)-(iv) (d)-(ii)
70. GST which came into effect 1st July 2017 has four (04) tax slabsapplicable to the commodities and services in India. Which
of the following tax slabs are correct?
1. 5%, 12%, 18% and 28%✔
2. 5%, 8%, 12% and 18%
3. 8%, 12%, 18% and 28%
4. 8%, 12%, 15% and 18%
71. Match List – I with List – II and choose the correct answer from the code given below: LIST – I LIST – II
(a) n = Pk (i) A. C. Pigou
(b) M = PkT (ii) Keynes
(c) P = kR/M (iii) Alfred Marshall
(d) M = kPY (iv) D.H. Robertson Codes
1. (a)-(ii)(b)-(iv) (c)-(i) (d)-(iii)✔
2. (a)-(iii) (b)-(ii) (c)-(i) (d)-(iv)
3. (a)-(iv) (b)-(i) (c)-(ii) (d)-(iii)
4. (a)-(i) (b)-(ii) (c)-(iii) (d)-(iv)
72. On which of the following do Keynesians and Monetarists afree?
1. The demand for money is interest elastic.✔
2. The most important cause of demand shocks in changes in supply.
3. When there is recessionary gap, flexible wages will retrieve the labour market to equilibrium quickly
4. Output deviates at times from the potential output because of demand shocks.
73. The price elasticity of a linear supply curve through the origin is
1. Infinite
2. Less than Unity
3. Unity✔
4. Zero
74 The concept of Universal banking in India was recommended by which of the following committee?
1. S. Padmanabhan Committee.
2. R.H. Khan Committee.✔
3. Abid Hussain Committee.
4. Y. H. Malegam Committee.
75. Consider the following diagram and the statements:
(ii) Marginal propensity is save is positive, but less than 1 Choose the correct answer from the code given below-
1. Only (i)
2. Neither (i) nor (ii)
3. Only (ii)
4. Both (i) and (ii)✔
76. Arrange the following crop insurance schemes in the chronological order of their launch:
(i) Comprehensive Crop Insurance Scheme
(ii) National Agriculture Insurance Scheme
(iii) Modified National Agriculture Insurance Scheme
(iv) Pradhan Mantri Fasal Bima Yojana Choose the correct answer from the code given below:
1. (iii), (ii), (iv), (i) 3. (ii), (iii), (i), (iv)
2. (i), (ii), (iii), (iv) ✔4. (i), (iii), (ii), (iv)
77. The frequent farm loan waivers in India may give rise to the problem of
1. Risk Aversion
2. Adverse Selection
3. Moral Hazard✔
4. Debt Overhang
78. Why are indirect taxes called regressive?
1. Both above are correct
2. None of the above are correct
3. They are charged at higher rates than direct tax
4. They are charged at the same rate for all income groups.✔
79. If for the constant elasticity of substitution production function, the valve of the substitution parameter (ρ) is = -1, the elasticity of substitution will be
1. Zero
2. Infinity ✔
3. Indeterminate
4. Unity
80. Which of the following statements is/are correct about Uzawa’s theorem?
1. The production function is linear homogeneous.
2. The technical progress is ‘Harrod Neutral’ only.
3. Growth rate of output per worker, consumption per worker and capital per worker are equal and constant overtime
4. All of the above✔
81. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reasons (R). Read the statements and choose the correct answer using the code given below.
Assertion (A): Business-cycles according to new classical economics are monetary in nature. Reason (R): These are the result of the fall in real wage rates.
1. (A) is false, but (R) is true.✔
2. Both (A) and (R) are true and (R) is correct explanation of (A).
3. (A) is true, but (R) is false.
4. Both (A) and (R) are true, but (R) is not the correct explanation of (A).
82. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reasons (R). Read the statements and choose the correct answer using the code given below.
Assertion (A): A progressive income tax is based on equimarginal sacrifice.
Reason (R): Higher the income, lower will be the marginal utility of money for the tax payer.
1. (A) is false, but (R) is true.
2. Both (A) and (R) are true and (R) is correct explanation of (A).✔
3. (A) is true, but (R) is false.
4. Both (A) and (R) are true, but (R) is not the correct explanation of (A).
83. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reasons (R). Read the statements and choose the correct answer using the code given below.
Assertion (A): In the P.N. Rosenstein-Rodan’s model, the positive role of indivisibilities in production has been analysed. Reason (R): Removal of indivisibilities leads to constant returns to scales to scale in production.
1. (A) is true, but (R) is false.✔
2. (A) is false, but (R) is true.
3. Both (A) and (R) are true and (R) is correct explanation of (A).
4. Both (A) and (R) are true, but (R) is not the correct explanation of (A).
84. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reasons (R). Read the statements and choose the correct answer using the code given below. Assertion (A): In an oligopolistic market, there is price rigidity. Reason (R): Rival firms match price decrease but not price increase.
1. Both (A) and (R) are true and (R) is correct explanation of (A).✔
2. Both (A) and (R) are true, but (R) is not the correct explanation of (A).
3. (A) is false, but (R) is true.
4. (A) is true, but (R) is false.
85. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reasons (R). Read the statements and choose the correct answer using the code given below. Assertion (A): India is a service sector driven economy. Reason (R): Share of the service sector in total employment is highest.
1. (A) is true, but (R) is false.✔
2. Both (A) and (R) are true, but (R) is not the correct explanation of (A).
3. (A) is false, but (R) is true.
4. Both (A) and (R) are true and (R) is correct explanation of (A).
86. In the context of simultaneous equations econometric models, consider the following statements:
(i) Both order and rank conditions for identification are to be satisfied before estimation.
(ii) Order condition is a necessary but not a sufficient condition of identification.
(iii) Two-stage least squares method is suitable for over-identified equations. Which of the above statements is/are correct? Choose the correct answer from the code given below:
1. Only (ii) 2. Only (i) 3. (i), (ii) and (iii)✔ 4. (i) and (iii)
87. Match LIST – I with LIST – II and choose the correct answer from the code given below: LIST – I LIST – II
(a) Delphi Method (i) Stationary
(b) Dickey-Fuller Test (ii) Autocorrelation
(c) Durbin-Watson Test (iii) Testing significance of a regression coefficient
(d) Student’s t-Test (iv) Forecasting Codes
1. (a)-(iv) (b)-(ii) (c)-(i) (d)-(iii)
2. (a)-(iv) (b)-(i) (c)-(ii) (d)-(iii)✔
3. (a)-(i) (b)-(ii) (c)-(iii) (d)-(iv)
4. (a)-(i) (b)-(iv) (c)-(iii) (d)-(ii)
88. Consider the following statements about a time series of annual observations on sales of a firm for ten years:
(i) The series will have seasonal variations
(ii) the series will have a secular trend
(iii) The series will have cyclical variations Choose the correct answer from the code given below:
1. (i), (ii) and (iii) 3. (ii) and (iii)✔
2. (i) and (iii) 4. (i) and (ii)
89. Harrod’s Growth model is given as under: St= αYt 0 < α < 1 It = β [Yt – Yt-1] β > 0 St = It
where St = Savings, Yt = Income, It = Investment, t = time
In this model for economic growth, the condition for economic growth is
1. β / (β – α) < 0
2. β / (α – β) > 0
3. β / (β – α) > 1✔
4. β / α > 0
90. If demand for a consumer is given by the function p = 27 - 3x - x2 (where x = quantity demanded, p = price), the consumer’s
surplus at x = 3 is
1. 50.5
2. 49.5
3. 31.5✔
4. 32.5
91. A monopolist faces a linear demand curve p = 100 – 4q, while his cost function is C = 50 + 20q. The profit maximising output for this monopolist is
1. 5
2. 10✔
3. 20
4. 40
92. By autocorrelation we mean that
1. The square of the residuals of a regression model are not equally spread.
2. The variance of the residuals of a regression model is not constant for all observations.
3. The residuals of a regression model are related with one or more of the regressors.
4. The residuals of a regression model are not independent.✔
93. in a two-variable regression, the correlation coefficient between dependent and independent variables Y and X is 0.7. What is the percentage of variations in Y explained by X?
1. 70%
2. 7%
3. 0.7%
4. 49%✔
94. A series of index numbers is given as follows: Year : 2014 2015 2016 Index Number : 100 120 126 If the base year is shifted to year 2015, the value of index number in the year 2016, in the new series will be:
1. 95.2
2. 106
3. 151.2
4. 105✔
95. In Regression Analysis, if a quantitative variable has ‘m’ categories, one can introduce
1. Only 2 m variables
2. Only m dummy variables
3. Only m +1 dummy variables
4. Only m – 1 dummy variables✔
96. The price elasticity of demand for a good with the demand function q = kp-r (here p is price, q is quantity demanded and k
and r are positive constants) is
1. 1/r
2. Not constantly as the function is non-linear
3. r✔
4. 1
97. A box contains 10 bulbs, 4 of which are defective. If 3 of the balls are drawn randomly without replacement, what is the probability that all three bulbs are defective?
1. 3/4
2. 3/10
3. 1/30✔
4. 4/10
98. For the diagram given below, which of the following is correct in terms of derivatives?
2. dy / dx < 0, d2y / dx2 < 0
3. dy / dx < 0, d2y / dx2 > 0
4. dy / dx > 0, d2y / dx2 < 0✔
99. Though two time series are individually non-stationary, their linear combination is stationary. This is an example of
1. Spurious regression
2. Trend stationarity
3. Cointegration✔
4. Random walk
100. Match List – I with List – II and choose the correct answer from the code given below: LIST – I LIST – II
(a) Hawkins-Simon Conditions
(i) Theory of Games
(b) Saddle Point
(ii) Non-Linear Programming
(c) Simplex Method
(iii) Input-Output Analysis
(d) Kuhn-Tucker Conditions
(iv) Linear Programming CODES
1. (a)-(iii) (b)-(i) (c)-(iv) (d)-(ii)✔
2. (a)-(i) (b)-(ii) (c)-(iv) (d)-(iii)
3. (a)-(iii) (b)-(ii) (c)-(i) (d)-(iv)
4. (a)-(ii) (b)-(i) (c)-(iii) (d)-(iv)
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