(1) Choose the correct statements for economic development and answer from the code below :
Statements : I) Continuous process II) Short term process III) Long term process
Codes :
A) II only
B) I and III
C) III only
D) I and II
Ans) B
(2) Which of the following economists are proponents of dependency theory of development ?
I) Ragnar Nurkse II) Andre Gunther Frank
III) Paul Prebisch IV) John Kenneth Galbraith
Codes :
A) I, II and III are correct.
B) II and III are correct.
C) II, III and IV are correct.
D) III and IV are correct.
Ans) B
(3) What is true for neo-classical growth models ?
I) Rate of interest and profit are flexible.
II) Capital is heterogeneous. III) Perfect competition prevails. IV) Capital and labour are substitutable.
Choose the correct answer from the codes given below :
Codes :
A) Only I, II and III are true.
B) Only II and III are true.
C) Only I, III and IV are true.
D) All the above are true.
Ans) C
(4) Of the following, which combination of two deficits is most significant for the Indian economy ?
A) Fiscal deficit and Revenue deficit
B) Revenue deficit and Primary deficit
C) Budget deficit and Fiscal deficit
D) Current account deficit and Fiscal deficit
Ans) D
(5) Who has advocated the concept of PURA (Providing Urban Amenities in Rural Areas) for our country ?
A) A.P.J. Abdul Kalam
B) Manmohan Singh
C) Charan Singh
D) None of the above
Ans) A
(6) ECOMARC is a symbol related to -
A) Export goods
B) Import goods
C) Goods safe for environment
D) Best quality goods
Ans) C
(7) Techniques used to encourage the production and consumption of goods that generate positive externalities are reffered to as -
A) Tax incentives and vouchers
B) Fees and fines
C) Taxes and charges
D) Special assessment
Ans) A
(8) Which of the canons of taxations have been propounded by Adam Smith ?
A) Economy, Elasticity, Simplicity and Sufficiency
B) Equity, Certainly, Convenience and Economy
C) Certainty, Convenience, Economy and Elasticity
C) Economy, Convenience, Economy and Elasticity
D) Economy, Coordination, Convenience and Externality
Ans) B
(9) Displacement effect explained in Peacock-Wiseman hypothesis implies :
A) An upward displacement of public expenditure according to higher economic growth.
B) The movement from older level of public expenditure and taxation to a newer and higher level.
C) Public expenditure increases at steady rate and reaches higher level.
D) Government undertakes more and more newer activities and hence public expenditure rises steeply upwards.
Ans) B
(10) The most important characteristic of a federation is :
A) Perfect match between the functions and resources of the Central and State Governments.
B) Non-correspondence between the functions and resources of the Central and State Governments.
C) Centre's supremacy over the States.
D) None of the above.
Ans) B
(11) Fiscal consolidation at the Centre can be achieved by :
A) Rationalisation of major subsidies alone.
B) Reducing the defence expenditure only.
C) Raising the Tax-GDP ratio and rationalisation of subsidies.
D) Minimising the Central assistance to the States.
Ans) C
(12) Arrange the following Reports in chronological order :
I) Direct Taxes Enquiry Committee, Final Report
II) Final Report on Rationalising and Simplifications of the Tax Structure
III) Indian Tax Reforms - Report of a Survey
IV) Taxation Enquiry Commission
Choose the correct answer from the codes given below :
Codes :
A) IV, III, II, I
B) I, II, III, IV
C) III, I, IV, II
D) II, III, I, IV
Ans) A
(13) Geometric mean of Laspeyere's and Passche's indices provides :
A) Marshall-Edgeworth Index
B) Bowley's Index
C) Fisher's Index
D) Kelley's Index
Ans) C
(14) Assertion (A) : Moving averages method can be used to estimate trend in time series.
Reasoning (R) : Moving averages is a device to smoothen the fluctuations in time series.
Choose the correct answer from the codes given below :
Codes :
A) Both (A) and (R) correct and (R) is a correct explanation of (A).
B) Both (A) and (R) are correct, but (R) is not a correct explanation of (A).
C) (A) is correct, but (R) is incorrect.
D) (R) is correct, but (A) is incorrect.
Ans) A
(15) In a frequency distribution the standard deviation of which is 15.8, the value of median is more than mean by 4, what will be its coefficient of skewness ?
A) - 0.76
B) + 0.76
C) - 0.86
D) + 0.86
Ans) A
(16) Three coins are tossed simultaneously. What is the probability that they will fall 2 heads and 1 tail ?
A) 1/2
B) 1/4
C) 3/4
D) 3/8
Ans) D
(17) In a frequency distribution if each item is multiplied by 5, the coefficient of variation will remain -
A) Unchanged
B) Will be multiplied by 5
C) Will be multiplied by 25
D) Will be multiplied by 1/5
Ans) A
(18) The theoretical proposition of stable velocity of money is being weakened by the recent researchers. This has the effect of weakening the position of -
A) Keynesian
B) Monetarists
C) New Classicals
D) Utopians
Ans) B
(19) Which one of the following is true for disquised unemployment ?
A) It has saving potential.
B) It has investment potential.
C) It is a source of expanding production.
D) It is a source of social unrest.
Ans) A
(20) A tax is said to be progressive, when the marginal rate of tax is -
A) Greater than the average rate
B) Less than the average rate
C) Equal to the average rate
D) Equal to the marginal sacrifice
Ans) A
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