I. It resulted in overvalued exchange rate.
II. It treated development as a natural process.
Answer from the codes below :
Codes :
A) Both I and II are true.
B) Only I is true.
C) Only II is true.
D) Neither I nor II are true.
Ans) B
(2) Consider the following concepts :
I. Leontief paradox
II. Linder Hypothesis
Which among the following can be treated as exception to the conclusions of the Hecksher-Ohlin theory ? Answer from the codes below :
Codes :
A) Both I and II are exception.
B) Neither I nor II are exception.
C) Only I is an exception.
D) Only II is an exception.
Ans) A
(3) Economists refer to an unanticipated inflation that reduces the real value of outstanding government debt as :
A) Burden of inflation
B) Unanticipated default
C) Seigniorage
D) The inflation tax
Ans) D
(4) A public good is
i. Non-excludable in nature.
ii. Non-rival in nature.
iii. Exudable in nature.
iv. A good that public must possess.
Select the correct answer using the codes given below :
A) Both i and ii
B) Only iii
C) Both iii and iv
D) Only IV
Ans) A
(5) A forward-shifted tax will affect -
A) Buyers more than sellers
B) Sellers more than buyers
C) Buyers and sellers equally
D) Government revenues negatively
Ans) A
(6) With reference to the characteristics of 'non-excludability' and 'non-rivalry', "Law and Order" is a classic example of -
A) A negative externality
B) A positive externality
C) Increasing returns
D) A public good
Ans) D
(7) In the trade cycle theory of J.R. Hicks, long-run equilibrium growth is determined by -
A) Technology
B) Population
C) Autonomous investment
D) Both A and B above
Ans) C
(8) Which among the following is not a characteristic of stagflation ?
A) High inflation
B) High unemployment
C) Low growth
D) High employment
Ans) D
(9) Consider the following statements regarding the consumption function fitted by Simon Kuznets to US economic data for the period 1869 to 1929 :
I. There appeared no constant terms in the linear consumption function so fitted.
II. The APC and MPC were not significantly different.
Which of the above statement/s is/are true ? Answer from the codes below :
Codes :
A) Both statements are not true.
B) Only I is true.
C) Only II is true.
D) Both statements I and II are true.
Ans) D
(10) Which among the following theory/approach does not treat consumption to depend upon expected income ?
A) Keynes' approach
B) Friedman's approach
C) Life cycle approach
D) Both B and C above
Ans) A
(11) In an economy, the saving and investment functions are given as :
S = -100+0.2y
I = -30+0.1y
What will be equilibrium level of income ?
A) 1000
B) 900
C) 600
D) 700
Ans) D
(12) For the set of observations : 0, 4, 5, 7, 100, which one of the following is the most suitable average ?
A) Arithmetic Mean
B) Geometric Mean
C) Median
D) Harmonic Mean
Ans) C
(13) For a symmetrical distribution skewness is -
A) 3
B) 0
C) 1
D) 2
Ans) C
(14) Given the following data :
Number of observations = 100
Arithmetic Mean = 180
Variance = 324
The coefficient of variation will be -
A) 32.4%
B) 10%
C) 18%
D) 1.8%
Ans) B
(15) Which of the following satisfies time reversal test but not factor reversal test ?
A) Lespeyres
B) Marshall-Edgeworth
C) Fisher
D) Paasche
Ans) B
(16) For testing the association of attributes which of the following tests is suitable ?
A) t-test
B) F test
C) Chi square test
D) Z test
Ans) C
(17) Assertion (A) : In the long period and in perfect competition, a firm earns only normal profit.
Reason (R) : There are no transport costs in the system.
A) Both A and R are true and R is the correct explanation of A.
B) Both A and R are 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) B
(18) Assertion (A) : Labour becomes ready to work overtime.
Reason (R) : Industry pays its employees efficiency wage.
A) Both A and R are true and R is the correct explanation of A.
B) Both A and R are 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) B
(19) Assertion (A) : The principle of progressive taxation is a generally accepted state policy.
Reason (R) : Progressive taxation deos not affect distribution of income and wealth.
A) Both A and R are true and R is the correct explanation of A.
B) Both A and R are 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) C
(20) Assertion (A) : Stagflation can develop due to market imperfections.
Reason (R) : Wage flexibility can cause stagflation.
A) Both A and R are true and R is the correct explanation of A.
B) Both A and R are 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) B
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