(1) Which among the following statements are true for the Revealed Preference Theory ?
Choose the correct answer from the code given below :
Statement :
I) Income elasticity of demand should be positive. II) Consumer preferences satisfy strong ordering.
Codes :
A) Both are true.
B) None are true.
C) Only I is true.
D) Only II is true.
Ans) A
(2) Demand for foodstuff is income inelastic. This is explained by -
A) Giffen's paradox
B) Engel's law
C) Gossen's law
D) Ricardo's law
Ans) B
(3) Consider the following factors :
I) Free entry II) Advertising III) Goal of satisfactory profits
Which of these are part of Chamberlin's Monopolistic Competition ?
Codes :
A) All the three
B) Only I and II
C) Only II and III
D) Only III
Ans) B
(4) Who among the following economists developed the concept of 'Barriers to entry' of firms ?
A) J.S. Bain
B) W.J. Baumol
C) Alfred Marshall
D) W.S. Jevons
Ans) A
(5) Which of the following is the correct assumption for the Lewis two sector model ?
A) High unemployment in urban sector
B) Rising real wages
C) High marginal productivity in the rural sector
D) Surplus labour in the rural sector
Ans) D
(6) Which of a major indivisibility of Rosenstein Rodan model of development ?
A) Services
B) Agriculture
C) Infrastructure
D) Supply
Ans)C
(7) Methods of debt-redemption include -
A) Capital levy
B) Sinking fund
C) Debt repudiation
D) All the above
Ans) D
(8) Taxes in List-I of the Union Government as per the constitution of India include :
I) Taxes on consumption and sale of electricity.
II) Taxes on sale or purchase of newspapers. and advertisments published therein.
III) Taxes on capital value of assets. IV) Duties in respect of succession to property.
Codes:
A) I, II and IV are correct.
B) I, II and III are correct.
C) II, III and IV are correct.
D) II and III are correct.
Ans) C
(9) Match the following :
List-I
a) Sum of price elasticity of demand for exports and imports greater than unity.
b) Balance of payments is the difference between National income and expenditure.
c) Empirical evidence showing lower short run price elasticities of exports and imports.
d) Method to cut down imports.
List-II
1) J-curve effect 2) Import quota systems
3) Marshall-Leraner condition 4) Absorption approach
Codes :
a b c d
A) 4 3 1 2
B) 4 1 3 2
C) 3 1 4 2
D) 3 4 1 2
Ans) D
(10) Which of the following related with optimum currency area ?
A) Optimum geographical area for a single currency.
B) Optimal geographical area for several currencies whose exchange rates are relatively pegged.
C) Single currency or the pegged currencies fluctuate jointly vis-à-vis other currencies.
D) All the above
Ans) D
(11) Which of the following statements is true ?
A) Asian financial crisis is generally considered to have started on July 2, 1997 with the devaluation of the Thai Bhat.
B) Asian financial crisis is generally considered to have started on 2nd August, 1998 with the Russian crisis.
C) Brazil's 1999 crisis is generally considered to be the main cause of Asian financial crisis.
D) All the above are true.
Ans) A
(12) Match the following :
List-I
a) Banks that conduct trading in market for Euro currencies
b) Deposits denominated and payable in dollars and other foreign currencies in banks outside USA c) Dollar deposits located in banks outside USA d) Currency baskets composed of five currencies of IMF members
List-II
1) Euro currencies 2) SDRs 3) Euro banks 4) Euro dollars
Codes :
a b c d
A) 3 4 1 2
B) 3 1 4 2
C) 3 4 2 1
D) 1 3 4 2
Ans) B
(13) Which of the following is true for European Union ?
A) All member countries have the Euro currency.
B) All member countries have the same defence policy.
C) There are no tariffs between member countries.
D) All member countries have the same taxation policy.
Ans) C
(14) Market at which transaction will be consumed at some specified time in future is called -
A) Spot market
B) Current market
C) Capital market
D) Forward market
Ans) D
(15) Which of the following are liabilities of Commercial banks ?
I) Capital and reserves II) Cash and balances with RBI III) Investments IV) Borrowing
Codes :
A) I and III
B) I and IV
C) I, II and III
D) II, III and IV
Ans) B
(16) Assertion (A) : There was remarkable acceleration in deposit mobilisation of Commercial banks after the nationalisation of 14 commercial banks in 1969.
Reason (R) : There was tremendous branch expansion, rise in interest rates and introduction of myriad innovative deposit scheme.
Choose the correct answer from the codes given below :
Codes :
A) (A) is correct, but (R) is not correct.
B) Both (A) and (R) are not correct.
C) Both (A) and (R) are correct, but (R) is not the correct explanation.
D) Both (A) and (R) are correct and (R) is the correct explanation of (A).
Ans) D
(17) Which of the following are included in broad money (M3) in India ?
1) Currency with the public 2) Demand deposits with bank 3) Time deposits with banks 4) Other deposits with RBI
Codes :
A) 1, 2 and 3
B) 1 and 2
C) 3 and 4
D) 1, 2, 3 and 4
Ans) D
(18) Which option is true for population dividend to manifest ?
A) Population in the age group between 0-7 years is likely to increase.
B) Population in the age group between 8-15 years is likely to increase.
C) Population in the age group between 15-64 years is likely to increase.
D) Population in the age group above 65 years is likely to increase
Ans) C
(19) Which one of the following is the correct sequence of development of sectors in India post-independence ?
A) Agriculture, Industry, Service
B) Service, Agriculture, Industry
C) Industry, Agriculture, Service
D) Agriculture, Service, Industry
Ans) C
(20) The term HYVP stands for -
A) High Yielding Veriety Pesticides
B) High Yielding Volume Production
C) High Yielding Verieties Programme
D) High Yielding Volume Programme
Ans) C
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