A) Zero
B) 0.5
C) 1
D) Infinity
Ans) A
(2) Which of the following has not been identified as a potential consequence of global warming ?
A) A fall in agricultural yields
B) The spread of disease
C) The use of nuclear energy
D) A rise in sea levels
Ans) C
(3) Concept of 'surplus value' is developed by who among the following economists ?
A) J. Schumpeter
B) Karl Marx
C) J.R. Hicks
D) R.A. Fisher
Ans) B
(4) Monetary policy is most effective when investment spending is :
A) Interest elastic and demand for money is also Interest elastic.
B) Interest inelastic and demand for money is also interest inelastic.
C) Interest inelastic and demand for money is interest elastic.
D) Interest elastic and the demand for money is interest inelastic.
Ans) D
(5) Slop of the LM curve depends upon which of the following ?
A) Interest elasticity of investment
B) Interest elasticity of income
C) Interest elasticity of demand for money
D) None of the above
Ans) C
(6) In a closed economy and three sector model which of the following is true ?
A) Household savings equal net investment.
B) Household savings equal gross investment.
C) Household savings plus depreciation equals gross gross investment plus government spending.
D) Household savings plus taxes plus depreciation equals gross investment plus government spending.
Ans) D
(7) According to Keynes, the marginal efficiency of capital is the expected :
A) Rate of return on financial assets
B) Profit from real investment
C) Profit from financial investment
D) Rate of return on real investment
Ans) D
(8) In the classical macro system, money determines :
A) Employment
B) Real output
C) Both A) and B)
D) Neither A) and B)
Ans) D
(9) Consider the following statements about Philips curve :
i) There is inverse relationship between rate of inflation and rate of unemployment.
ii) Economic behaviour is a function of nominal returns.
iii) Economic behaviour is a function of real returns.
Of these statements which are true from the Monetarist's point of view ?
A) All of the above are true
B) Only i) and ii) are true
C) Only ii) is true
D) Only iii) is true
Ans) B
(10) n interest rate risk means :
A) When borrowers fail to fulfil the terms of the loan contract.
B) A rise in interest rate will mean a fall in the value of security in the secondary market.
C) A rise in interest rate will raise the value financial security in the secondary market.
D) When unintended inflation arises.
Ans) B
(11) In the classical macro system money determines which of the following ?
A) Output and prices
B) Employment and prices
C) Output and employment
D) Prices
Ans) D
(12) When Nominal GDP is ₹11,000 crores and Real GDP is ₹10,000 crores, GDP Deflator is :
A) 9.09
B) 90.91
C) 1.11
D) 110
Ans) D
(13) Assertion (A) : India has a big potential demographic divided.
Reason (R) : India's population growth rate is declining.
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 (R) is not the correct explanation of (A).
D) (R) is correct but (A) is incorrect.
Ans) C
(14) Who is the originator of 'Buddhist Economics' ?
A) Lee Kuan Yew
B) Dalai Lama
C) E.F. Schumacher
D) Shinzo And
Ans) C
(15) Which of the following is not a credit rating agency ?
A) Moody
B) Standard and Poor
C) Fitch
D) Nasdaq
Ans) D
(16) Which of the following is not used to measure inflation ?
A) Wholesale Price Index Number
B) Consumer Price Index Number
C) Purchasing Power Parity Prices
D) GDP Deflator
Ans) C
(17) Which one of the following pairs is not correctly matched ?
A) Similarly placed persons should be taxed similarly - Horizontal equity
B) Interest payments are deducted from fiscal deficit - Primary deficit
C) Goods which are divisible and principle of exclusion applies in full measure - Pure private goods
D) Tax on goods and services is levied according to item's value - State excise duties
Ans) D
(18) Rostow distinguishes five different stages of economic growth which are :
i) Pre-conditions for take-off
ii) Drive to maturity iii) Stage of high mass consumption iv) Traditional society
v) Take-off
Which one of the following is the correct sequence of stages of growth ?
A) i, ii, iii, iv, v
B) ii, i, iii, iv, v
C) iv, i, ii, iii, v
D) iv, i, v, ii, iii
Ans) D
(19) The saving function underlying Cambridge growth model is :
A) Proportional saving function
B) Classical saving function
C) Differential saving function
D) Absolute saving function
Ans) C
(20) According to Keynesians, creeping inflation will help in :
A) Minimising unemployment
B) Maximising real output
C) None of A) or B) above
D) Both A) and B) above
Ans) D
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