List-I
a) Aggregate demand b) Consumption function c) Aggregate supply
d) Saving function
List-II
i) -a+by ii) C+I iii) a+by iv) C+S
Select the correct answer from the codes given below :
Codes :
a b c d
A) ii i iii iv
B) ii iv iii i
C) ii iv i iii
D) ii iii iv i
Ans) D
(2) Who is the author of the book, 'Capital in the Twenty First Century' ?
A) Thomas Piketty
B) Joseph Stigliz
C) A.K. Sen
D) Jagdish Bhagwati
Ans) A
(3) Match List-I and List-II.
List-I (Economic Idea)
a) Life Cycle Hypothesis b) Tableau Economique c) Cash Balance Approach
d) Organic Composition of Capital
List-II (Economist)
i) Karl Marx ii) Alfred Marshall
iii) Francois Quesnay iv) F. Modigliani
Select the correct answer from the codes given below :
Codes :
a b c d
A) i ii iii iv
B) iv iii ii i
C) iv iii i ii
D) ii iv i iii
Ans) B
(4) In the adjoining standard diagram to explain Hicks' trade cycle theory; which of the following are true, when the actual value of mpc and Accelerator fall in the region C ?
A) There will be oscillations (Cyclical fluctuations).
B) There will be explosive upward movement.
C) There will be steady growth.
D) Both B) and C) are possible.
Ans) A
(5) For the Harrod's model of growth, which among the following production functions best matches with the assumptions of the model ?
A) Leontief production function
B) Homogeneous production function
C) CES production function
D) Well-behaved production function
Ans) A
(6) New Keynesian economics challenges which among the following schools of thought regarding the full adaptability of a policy change on the part of economic agents ?
A) New classical economics
B) Neo Keynesians
C) Monetarists
D) Both A and B above
Ans) A
(7) Who among the following developed the 'Wage-goods model' of planning ?
A) A.K. Sen
B) P.C. Mahalanobis
C) R. Nurkse
D) C.N. Vakil and P.R. Brahmanand
Ans) D
(8) A key property of A.K. model is :
A) Absence of diminishing returns with respect to capital.
B) A sustained dose of autonomous investment.
C) A command economic system.
D) A high probability of the poorer economies to catch up with the developed economies.
Ans) A
(9) In Pasinetti's model of growth the interplay among which variables is crucial ?
A) Profit rate, economic growth, savings.
B) Profit rate, distribution of income and economic growth.
C) Profit rate, autonomous investment and economic growth.
D) Savings, investment and technology.
Ans) B
(10) Consider the following statements in relation to Karl Marx's theory of profit rate :
I. Profit rate depends directly on the value of organic composition of capital.
II. Profit rate depends directly on the value of rate of exploitation.
Which of the above statements are correct ? Answer from the codes below :
Codes :
A) Both I and II are true.
B) Neither I nor II are true.
C) Only I is correct.
D) Only II is correct.
Ans) D
(11) Which among the following is not correctly matched ?
Economist Theme
A) Adam Smith - Extent of market
B) J.B. Say - Balance of supply and demand
C) T.R. Malthus - State of over production
D) D. Ricardo - Modernization of agriculture
Ans) D
(12) Which of the following statements are true for the Triangle model ?
I. It is a model developed by New Keynesian Economists.
II. It includes built-in inflation in the analysis.
Which of the above statement(s) is/are ? Answer from the codes below :
Codes :
A) I and II
B) None
C) Only I
D) Only II
Ans) A
(13) Which among the following will constitute Foreign Direct Investment (FDI) ?
A) Buying a company in the target country.
B) Expanding operations of an existing business in that country.
C) Investing in the shares and stocks of companies in the capital market.
D) Both A and B.
Ans) D
(14) Which of the areas given below is/are mainly funded by the International Development Agency in the developing countries ?
I. Infrastructure II. Education
III. Environment friendly projects
IV. Health care
Select the correct answer using the codes given below :
Codes :
A) I, II and IV
B) I, II and III
C) I, III and IV
D) All of the above
Ans) A
(15) When two or countries enter into an agreement to eliminate import quota and tariffs and promote trade among themselves, such a group of countries are said to from a :
A) Free Trade Area
B) Custom Union
C) A Common Market
D) Both B and C
Ans) A
(16) Which among the following is/are true for Real Effective Exchange Rate of the currency of a country ?
A) It is weighted average of the value of traded currencies.
B) It is adjusted for inflation rate of prices.
C) It is not adjusted for inflation of prices.
D) Both A and B are true.
Ans) D
(17) Which of the following statement(s) is/are true for the gravity model to explain trade ?
I. It is used in the bilateral context.
II. It was developed by Jan Tinbergen in 1962.
III. It takes into account the distance among the trading nations.
Select the correct answer from the code below :
Codes :
A) II and III are true
B) Only I and III are true
C) Only II is true
D) All the three above are true
Ans) D
(18) If the offer curves of the trading countries have constant slop, the terms of trade among them will be :
A) Constant
B) Decreasing
C) Increasing
D) Indeterminate
Ans) D
(19) In the context of the Indian economy, which of the following options correctly describe the composition of the foreign exchange resources ?
A) Foreign currency + Loans from the World Bank + SDRs + Gold holdings of RBI
B) Foreign currency assets + Gold holdings of RBI + FDI
C) SDRs + Gold holdings of the RBl + Foreign currency assets
D) Remittances of NRIs + Export earnings in a year + Loans from the IMF
Ans) C
(20) Which among the following are true for excess demand function for an individual ?
A) Homogeneous of degree zero in all prices.
B) These obey Walras's law.
C) Both A and B are true.
D) Neither A nor B are true.
Ans) C
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