A) Capital scarcity
B) Human resource scarcity
C) Regional inequalities
D) Population explosion
Ans) C
(2) Fei-Ranis's theory of economic development is based on -
A) Dualistic approach to development
B) Presence of disguised unemployment
C) Importance of agricultural development
D) All of the above
Ans) D
(3) Andre Gunder Frank, a major dependency theorist suggests that the following economic activities have contributed to underdevelopment :
i. Replacing indegenous enterprises with technologically more advanced, global, subsidiary companies.
ii. Closing the economy to trade with, and investment from, developed countries.
iii. Workers migrating from villages to foreign dominated urban complexes.
iv. Forming an unskilled labour force to work in factories and mines and on plantations.
Choose the correct answer from the codes given below :
Codes :
A) i, iii and iv
B) i, ii and iii
C) ii, iii, and iv
D) i, ii, iii and iv
Ans) A
(4) In Harrodian economy, ICOR is 4.5:1, population growth is 2% per annum, and the investment rate is 27%. Hence the annual growth of per capita will be :
A) 2.5%
B) 9%
C) 6%
D) 4%
Ans) D
(5) Which among the following is not correctly matched ?
Author Book
A) M. Friedman - Capitalism and Freedom
B) Amartya Sen - Argumentative Indian
C) Joseph Stigliz - In Defence of Globalization
D) Ruchir Sharma - The Rise and Fall of Nations
Ans) C
(6) Which among the following statements is not true for the Global age equilibrium in the growth model of Mrs. Joan Robinson ?
A) Rate of profit tends to rising.
B) Level of real wages rise with output per worker.
C) Technical progress is neutral.
D) Population is growing at a steady rate.
Ans) A
(7) If in a year, the gross fiscal deficit of Government is ₹3,00,000 crores, revenue deficit is ₹1,50,000 crores and interest payments are ₹80,000 crores, which of the following is the primary deficit of the Government in a year ?
A) ₹70,000 crores
B) ₹23,000 crores
C) ₹2,20,000 crores
D) ₹1,50,000 crores
Ans) C
(8) Concepts of concentration and displacement effect in public expenditure are attributed to -
A) Allen T. Peacock and Jack Wiseman
B) A.R. Prest and I.M.D. Little
C) A.C. Pigou and J.K. Mehta
D) Kenneth Arrow and Paul A. Samuelson
Ans) A
(9) Which one of the following statements is true for the Verdoon's law ?
A) Long run productivity generally grows proportionally to the square root of output growth.
B) Short run productivity generally grows proportionally to the growth of output.
C) The value of Verdoon's coefficient is nearly equal to 1.
D) Verdoon's law is quite in consonance with Solow model's functioning.
Ans) A
(10) Which among the following can contribute to improvement in industrial climate of the region ?
A) Development banks
B) Trade unions
C) Natural resources
D) All of the above
Ans) A
(11) Researchers indicate that income velocity of money is falling overtime due to -
A) Income elasticity of demand for money is greater than unity.
B) Income elasticity of demand for money is less than unity.
C) Income elasticity of demand for money is equal to unity.
D) All of the above
Ans) A
(12) According to Monetarists, demand for money function is -
A) Stable and interest inelastic
B) Constant and interest elastic
C) Stable and interest elastic
D) Unstable and interest inelastic
Ans) A
(13) Arrange the following liquid assets in decreasing order -
a. Time deposits b. Saving deposits
c. Currency d. Demand deposits
Select the answer from the codes given below :
A) d, a, b, c
B) c, d, b, a
C) a, b, d, c
D) b, a, c, d
Ans) B
(14) Match the following :
List-I
a. Alfred Marshall b. Irving Fisher
c. Robertson d. Keynes
List-II
i. M=PKT ii. M=PKY
iii. N=PK iv. MV=PT
Select the correct codes given below :
Codes :
a b c d
A) iv iii ii i
B) ii iv i iii
C) i ii iii iv
D) iii i iv ii
Ans) B
(15) In the theory of money, James Tobin did not agree with which of the following inferences/assumptions of the demand for money for liquidity preference enunciated by Lord Keynes ?
I. Elasticity of expectations of future interest rates.
II. Individuals hold either money or bonds.
Of the above which are correct ? Answers from the codes below :
Codes :
A) Only I
B) Only II
C) Both I and II
D) Neither I nor II
Ans) C
(16) A population pyramid of a country shows the :
A) Age structure of male and female population
B) Age structure of male population
C) Age structure of female population
D) Age structure of rural and urban population
Ans) A
(17) If the actual unemployment rate is below the natural rate of unemployment, it would be expected that -
A) The rate of inflation would increase.
B) Wages would fall.
C) The Philips curve would shift to the right.
D) The natural rate of unemployment would fall.
Ans) A
(18) Demographic transition means :
A) Shift from the condition of low birth and high death rates to high birth and high death rates.
B) Shift from the condition of high birth and high death rates to low birth and low death rates.
C) Shift from the condition of high death and low birth rates to high death and high birth rates.
D) None of the above.
Ans) B
(19) In the context of international trade dumping refers to -
A) Free distribution of used products by developed countries in developing countries.
B) Selling a commodity cheaper in foreign market and costly in domestic market.
C) Sending cheap goods to developing countries by developed countries.
D) None of the above
Ans) B
(20) Match List-I with List-II and select correct answer from the codes given below :
List-I
a. International Monetary Fund
b. International Bank for Reconstruction and Development
c. International Development Association
d. International Finance Corporation
List-II
i. Lending to private sector
ii. Balance of Payments problems
iii. Soft Loan to poor countries
iv. Socio-economic infrastructure
Codes :
a b c d
A) ii i iii iv
B) i ii iv iii
C) iii iv i ii
D) ii iv iii i
Ans) D
0 Comments