A) Production possibility curves
B) Social indifference curves
C) Edgeworth box diagram
D) Philips curve
Ans) C
(2) Match the following :
List-I
a) A double Kaldor-Hicks test b) Compensation principle c) Social welfare function d) Impossibility theorem
List-II
1) A. Bergson 2) K.J. Arrow 3) T. Scitovsky 4) Kaldor-Hicks
Codes :
a b c d
A) 4 1 3 2
B) 3 4 1 2
C) 3 4 2 1
D) 4 3 2 1
Ans) B
(2) The oligopoly model in which the business man assumes that his competitor's output are fixed and simultaneously decide how much to produce is -
A) Cournot oligopoly model
B) Stackleburg oligopoly model
C) Chamberlin's oligopoly model
D) Bertrand oligopoly model
Ans) A
(3) According to Game Theory, if increased advertising, raises costs more than revenues and the profit of both firms decline, we have a-
A) Positive-sum game
B) Non zero-sum game
C) Zero-sum game
D) Negetive-sum game
Ans) D
(4) Arrows Impossibility theorem implies -
A) Any social decision rule should not violates the requirements of rational choice.
B) Any social decision rule must violate atleast one of the requirements of rational choice.
C) Any social decision rule must violate all the requirements of rational choice.
D) It is impossible to violate social decision rules.
Ans) B
(5) 'Bandwagon effect' is found in -
A) Relative income hypothesis
B) Permanent income hypothesis
C) Life cycle hypothesis
D) Absolute income hypothesis
Ans) A
(6) Transaction cost is also called -
A) Shoe leather cost
B) Menu cost
C) Opportunity cost of holding cash
D) All of the above
Ans) A
(7) Given the consumption function, C = 0.8Y, and the investment function I = 102 - 0.2i,. then the IS curve is -
A) Y = 500 - 10i
B) Y = 450 - i
C) Y = 510 - i
D) Y = 505 - 2i
Ans) C
(8) Match the premise given in List-I with that in List-II :
List-I
a) Price expectations are static b) Price expectations are adaptive c) People don't make systematic errors d) Deviations of output from its natural rate is inversely related to deviation of unemployment rate from its natural level
List-II
1) Okun's law 2) Philips curve 3) Natural rate of unemployment hypothesis 4) Rational expectations hypothesis
Codes :
a b c d
A) 2 3 4 1
B) 4 3 2 1
C) 1 3 4 2
D) 4 2 1 3
Ans) A
(9) When the aggregate supply schedule is positively sloped, continuous increase in the nominal money supply, ceteris paribus, result in -
A) No change in the price level and proportional increases in real output.
B) No change in real output and proportional increases in the price level.
C) An increase in the price level and real output.
D) An increase in the price level and a decrease in real output.
Ans) C
(10) 'Golden age' as per Mrs. Joan Robinson is (where ∆N/N is growth rate of population and ∆K/K is growth rate of capital) -
A) ∆N/N = ∆K/K
B) ∆N/N > ∆K/K
C) ∆N/N < ∆K/K
D) None of the above
Ans) A
(11) A technical change is neutral if MPK/MPL remains unchanged at constant K/L ratio :
A) Harrod
B) Hicks
C) Solow
D) Kaldor
Ans) B
(12) Concept of disembodied technical change is associated with
I) Abramovitz II) Kaldor III) Kendrick IV) Solow
A) I and II
B) III and IV
C) I, III and IV
D) II, III and IV
Ans) C
(13) Assertion (A) : To Marx, it is surplus labour that lead to capital accumulation.
Reason (R) : The difference between actual labour and subsistence labour that a labourer puts in for which he recieves nothing is surplus labour.
Codes :
A) (A) is correct, but (R) is not the correct reason for (A).
B) (A) is correct and (R) is incorrect.
C) Both (A) are correct.
D) Both (A) and (R) are incorrect.
Ans) C
(14) Arrange the 'Structural Development Process' in a sequential order :
I) Resource allocation process II) Accumulation process III) Distribution process IV) Demographic process
Codes :
A) I, IV, II, III
B) II, I, IV, III
C) III, II, I, IV
D) IV, III, I, II
Ans) B
(15) Match the items in List-I with List-II :
List-I
a) MPL is zero in overpopulated economies
b) Two gap model c) Critical growth rate
d) Backwash effects
List-II
1) Gunnar Myrdal 2) J.E. Mead 3) Arthur Lewis
4) Hollis Chebery & others
a b c d
A) 1 3 4 2
B) 3 4 2 1
C) 2 1 3 4
D) 4 2 1 3
Ans) B
(16) Match the items in List-I with List-II :
List-I
a) Learning by doing b) Biased technical process c) Coefficient of sensitivity of income distribution d) Theory of demographic transition : four stages of population growth
List-II
1) Kaldor 2) Karl Marx 3) K.J. Arrow 4) Joan Robinson
a b c d
A) 1 3 4 2
B) 3 4 2 1
C) 4 2 1 3
Ans) A
(17) Assertion (A) : Solow model is a major improvement over Harrod-Domar model.
Reason (R) : Solow built a model of long run growth without the assumption of fixed proportion in production.
Codes :
A) (A) is correct, but (R) is not the correct reason of (A).
B) (A) is not correct, but (R) is correct.
C) Both (A) and (R) are correct.
D) Both (A) and (R) are not correct.
Ans) C
(18) The concentration effect explained in Peacock-Wiseman hypothesis implies -
A) Public expenditure doesn't increase in smooth and continues manner
B) Public expenditure increases the necessity of increased revenue
C) The central government's economic activity to grow faster than of subnational governments
D) Absolute level of the public expenditure increases
Ans) C
(19) A tax imposed upon monopoly profits -
A) Can be shifted forward
B) Can be shifted backward
C) Can be shifted both forward and backward
D) Cannot be shifted
Ans) D
(20) The plan expenditure on Revenue Account of the Union Government includes -
I) Economic services II) Social and community services III) Grant-in-aides to States and Union Territories IV) Loans and advances to finance public enterprises
Codes :
A) I and II are correct.
B) I and III are correct.
C) I, II and IV are correct.
D) I, II, III and IV are correct.
Ans) B
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