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(1) Who distinguished between value in use and value in exchange and gave the famous example of diamond and water?
A) Adam Smith
B) David Ricardo
C) Alfred Marshall
D) Karl Marx
Ans) A
(2) In an economy of two individuals A and B and two commodities X and Y, general equilibrium of production and exchange occurs when -
A) MRTxy = (Px/Py)
B) MRSxy for A and B = (Px/Py)
C) MRSxyA = MRSxyB
D) MRTxy = MRSxyA = MRSxyB
Ans) D
(3) When income effect is stronger than substitution effect, the labour supply curve will -
A) Slpoe positively
B) Negetively sloped
C) Bend backward
D) Slpoe upwards
Ans) C
(4) Assertion (A) : The concept of supply curve is meaning less for the monopolist.
Reason (R) : Monopolist are price setters; it doesn't make re-use to ask what output they will produce at various prices.
Codes :
A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
B) (A) is correct, but (R) is not correct.
C) Both (A) and (R) are correct but a is not the correct explanation of (A).
C) (R) is correct, but (A) is incorrect.
Ans) A
(5) Predatory pricing policy is designed to -
A) drive competitors out of the business
B) maximise profits
C) encourage entrants into the market
D) attain least cost output
Ans) A
(6) An industry whose long run supply curve is horizontal is called -
A) Constant cost industry
B) Increasing cost industry
C) Decreasing cost industry
D) Efficient industry
Ans) A
(7) The practice of charging each consumer the reservation price is called -
A) Peak load pricing
B) Intertemporal price discrimination
C) First degree price discrimination
D) Third degree price discrimination
Ans) C
(8) Frictional unemployment is also known as -
A) Disguised unemployment
B) Turnover unemployment
C) Cyclical unemployment
D) Structural unemployment
Ans) B
(9) Arrange in ascending chronological order the following consumption hypothesis in which they appeared in the economics literature -
1) Absolute income hypothesis
2) Permanent income hypothesis
3) Life cycle hypothesis
4) Relative income hypothesis
Codes :
A) 1,3,4,2
B) 1,2,4,3
C) 1,4,3,2
D) 1,3,2,4
Ans) C
(10) Arrange all the four concepts of money supply M1, M2, M3 and M4 in ascending order in terms of their liquidity:
A) M3, M2, M1 and M4
B) M1, M2, M3 and M4
C) M4, M2, M3 and M1
D) M4, M3, M2 and M1
Ans) D
(11) Who amongst the following economists imparted money demand of a portfolio theory approach?
1) J.M Keynes 2) Baumol 3) James Tobin
4) Milton Friedman
Codes :
A) 1, 2
B) 3, 4
C) 1, 2, 3
D) 2, 3, 4
Ans) B
(12) Meeting the needs of present generation without compromising the needs of future generations is -
A) Economic development
B) Social development
C) Sustainable development
D) Economic growth
Ans) C
(13) The full capacity growth rate in Harrod-Domar model is known as -
A) Actual growth rate
B) Warranted growth rate
C) Natural growth rate
D) Expected growth rate
Ans) B
(14) Inventors of HDI are -
I) Harris-Todaro II) Megnad Desai
III) Robert Solow IV) Amartya Sen
Codes :
A) I and II are correct.
B) I and III are correct.
C) III and IV are correct.
D) II and IV are correct.
Ans) D
(15) Components of PQLI
I) Morbidity II) Infant mortality
III) Life expectancy at age one
IV) Basic literacy at age 15
Codes:
A) I, III and IV are correct.
B) III, II and IV are correct.
C) I, II and III are correct.
D) IV, I and II are correct.
Ans) B
(16) Assertion (A) : All historical events are the results of continuous economic struggle between different classes and groups in society.
Reason (R) : The main cause of this struggle is the conflict between the 'mode of production' and the 'relations of production'.
Codes :
A) (A) is correct, but (R) is wrong.
B) (A) is wrong, but (R) is correct.
C) Both (A) and (R) are wrong.
D) Both (A) and (R) are correct.
Ans) D
(17) Match the items given in list - I with those in list II :
List-I
a) Swarn-like-clusters b) Organic composition of capital c) Sustainable development d) Vicious circle of poverty
List-II
1) Bruntdtland report 2) Ragnar Nurkse 3) Schumpeter 4) Karl Marx
Codes :
a b c d
A) 4 2 3 1
B) 3 4 1 2
C) 1 3 2 4
D) 2 1 4 3
Ans) B
(18) Match the items given in the list -I with those in list-II :
List-I
a) Low level equilibrium trap b) Inverted 'U' shaped income distribution hypothesis
c) Endogenous growth theory d) Unlimited supplies of labour
List-II
1) Simon Kuznets 2) Nelson 3) Arthur Lewis
4) Robert Solow
Codes :
a b c d
A) 2 1 4 3
B) 3 2 1 4
C) 4 3 2 1
D) 1 4 3 2
Ans) A
(19) Which of the following is correct about the 'Hindu Growth Rate'?
A) This is about economic growth of Hindu population.
B) Shows economic disparities among different social groups in India.
C) Reflects low growth performance of the Indian economy during 1950-80.
D) Hints at accelerated growth in India since 1980.
Ans) C
(20) Single out the activity that is not included in the Industrial Production Index of India:
A) Manufacturing
B) Construction
C) Mining
D) Electricity
Ans) B
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