A) Suresh Tendulkar
B) C. Rangarajan
C) D.T. Lakadwala
D) Y.K. Alagh
Ans) B
(2) Segmented labour markets imply :
A) Labour discrimination.
B) Labour paid wage less than MRP.
C) MP theory of wage fails to determine market outcomes.
D) Equality of wages of different types of labour.
Which of the above is incorrect ?
Ans) D
(3) In India those farmers are called 'Marginal farmers' who hold land upto :
A) 1 hectare
B) 2 hectares
C) 3 hectares
D) 4 hectares
Ans) A
(4) Assertion (A) : Indian development programmes are oriented towards growth with social justice.
Reason (R) : Indian economy is afflicted with poverty and income inequalities.
Codes :
A) Both (A) and (R) true and (R) is the correct explanation of (A).
B) Both (A) and (R) true but (R) is not the correct explanation of (A).
C) (A) is true but (R) is false.
D) (A) is false but (R) is true.
Ans) A
(5) If the balance of payments deficit then in a floating exchange rate system :
A) The external value of the currency would tend to fall.
B) The external value of the currency would tend to rise.
C) The injections from trade are greater than the withdrawals.
D) Aggregate demand is increasing.
Ans) A
(6) Devaluation, will improve the balance of payment deficit, if sum of elasticity of exports and imports of the devaluing country is :
A) Greater than unity
B) Less than one
C) Equal to zero
D) Negative
Ans) A
(7) Examples of economic integration are :
a) Free Trade Area b) Customs Union c) Common Market d) Cartel
Select the correct answer from the given codes.
A) a) and b)
B) b) and c)
C) a), b) and d)
D) a), b) and c)
Ans) D
(8) New Trade Policy 2015-20 has introduced a new scheme which called :
A) Merchandise Export from India Scheme
B) Export from India Scheme
C) Merchandise Trade from India Scheme
D) Trade from India Scheme
Ans) A
(9) What does 'Price Scissors' refer to ?
A) Marshall's example of forces of supply and demand.
B) Exports of two strategic raw materials from a country.
C) A sharp fall in price of a major export item accompanied by a sharp rise in price of a major import.
D) Export basket of competitive local manufacturers.
Ans) C
(10) Hedging in the foreign exchange market refers to :
A) An act of devaluation.
B) Not covering a risk of foreign exchange in future.
C) Covering a risk of foreign exchange in future.
D) None of the above.
Ans) C
(11) For Real Effective Exchange Rate consider the following statements and select the correct answer from the codes given below :
a) It refers to average of value of county's currency in relation to an index of basket of values major country's currencies.
b) It refers to nominal ratio of a country's currency value to average value of a basket of currency.
Codes :
A) Only a) is true
B) Only b) is true
C) Both a) and b) are true
D) Neither a) nor b) are true
Ans) A
(12) Consider the following statements :
a) In the context of the classical model, loan finance may be a means of transferring the burden to the future generation.
b) Foreign borrowing permits financing public programmes without placing burden on the present generation.
c) Foreign borrowing is not burden some to the future generations even if the funds are used unproductively.
Which of the statement/s given above is/are correct ?
A) Only a)
B) a) and b)
C) b) and c)
D) a) and c)
Ans) B
(13) Tax incidence refers to :
A) Whether a tax is progressive, proportional or regressive.
B) How often a tax is collected.
C) The person or group who ends up paying a tax.
D) How a tax is collected.
Ans) C
(14) Assertion (A) : A progressive income tax is based on equi-marginal sacrifice.
Reason (R) : Higher the income, lower will be the marginal utility of money for the tax payers.
Codes :
A) Both (A) and (R) are true and (R) is the correct explanation of (A).
B) (A) is true, but (R) is not the correct explanation of (A).
C) (A) is true, but (R) is false.
D) (A) is false, but (R) is true.
Ans) A
(15) Which one of the following taxes is within the jurisdiction of the State Governments as enumerated in List-II of the Indian Constitution ?
A) Taxes other than stamp duties on transactions in stock exchanges and future markets.
B) Taxes on Railway freight and fares.
C) Taxes on mineral rights subject to any limitation imposed by the parliament.
D) Rate of stamp duty in respect of certain financial documents.
Ans) C
(16)
In the above diagram, the consumer surplus is represented by the area of :
A) ∆ PCE
B) ∆ APE
C) ∆ ACE
D) Rectangle OPEQ
Ans) B
(17) Simon-Hawkins conditions relate to which of the following ?
a) Static Leontief model b) Dynamic Leontief model c) These are necessary and sufficient conditions for the solution of the model.
Choose the correct answer from the codes given below :
Codes :
A) a) and b)
B) b) and c)
C) a), b) and c)
D) a) and c)
Ans) D
(18) Given the production function Q=2K⅓L⅔, find the output level when 8 units of capital and 27 of labour are used.
A) 36
B) 54
C) 18
D) 24
Ans) A
(19) If the OLS is supplied separately to each equation that is part of a simultaneous interdependent system, the resulting estimates will be :
A) Unbiased and consistent
B) Biased and consistent
C) Biased and inconsistent
D) It is impossible to apply OLS to the equations that are part of a simultaneous system
Ans) C
(20) Which of the following is not plausible remedy for multicollinearity ?
A) Use Principal components analysis
B) Drop one of the collinear variables
C) Use a longer-run of data
D) Take logarithm of each of the variables
Ans) D
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