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Final Answer Key
1. In which production function elasticity of substitution is zero?
(A) Cobb-Douglas production function
(B) Leontief production function ✓
(C) Translog production function
(D) CES production function
2. The LM function shift to the right when the money supply is:
(A) Increased ✓
(B) Decreased
(C) Constant
(D) Zero
3. High powered money and money multiplier are :
(A) Inversely related
(B) Directly related
(C) No relation
(D) Indeterminate
(*Deleted)
4. In Keynesian consumption function
C = a+bY, b denotes:
(A) Autonomous consumption
(B) Marginal propensity to save
(C) Marginal propensity to consume ✓
(D) Average propensity to consum
5. According to Harrod, an economy would experience inflation if :
(A) Actual growth rate higher than the warranted growth rate ✓
(B) Actual growth rate less than the warranted growth rate
(C) Actual and warranted growth rates are equal
(D) Actual growth rate equal to the natural growth rate
6. In a perfectly symmetrical distribution, skewness is equal to:
(A) One
(B) Less than one
(C) Zero ✓
(D) Greater than one
7. The first blueprint of Indian Planning was given by:
(A) Jawaharlal Nehru
(B) P.C. Mahalanobis
(C) Dadabhai Naoroji
(D) M. Visvesvaraya ✓
8. Which among the following is not a quantitative credit control policy of the Central Bank of India?
(A) Bank rate
(B) Cash Reserve Ratio
(C) Margin Requirements ✓
(D) Open market Operations
9. Which of the following statement is / are correct about the Finance Commission of India?
(i) Provision for the constitution of Finance Commission has been made in Article 280 of the Constitution
(ii) N.K. Singh is the Chairman of 15th Finance commission
(iii) Aim is to recommend the sharing of taxes between Central and State governments
(iv) The first Finance Commission was set up in 1949
(A) (i), (ii) and (iv) only
(B) (i) and (iii) only
(C) (i), (ii) and (iii) only ✓
(D) All of the above ((i), (ii), (iii) and (iv))
10. Kerala Value Added Tax came into force on :
(A) 1st April 2006
(B) 1st April 2005 ✓
(C) 1st April 2004
(D) 1st April 2003
11. Which of the following is the group of economists who were the advocates of unbalanced growth theory?
(A) Rosanstein Rodan, A. Lewis, Ragnar Nurkse
(B) W.W Rostow, H.W. Singer, A.O. Hirschman ✓
(C) A. Young, Frederick List, R.R. Nelson
(D) H. Leibenstein, J. Schumpeter, R.F. Harrod
12. In a normal distribution :
(A) Mean > Median > Mode
(B) Mean = Median = Mode ✓
(C) Mean = Median < Mode
(D) Mean Median > Mode
13. Which among the following is the correct one related to the effects of the devaluation currency?
(A) Devaluation makes exports cheaper and imports costlier in terms of domestic currency ✓
(B) Devaluation makes exports costlier and imports cheaper in terms of domestic currency
(C) Both exports and imports are costlier in terms of domestic currency
(D) Both exports and imports are cheaper in terms of domestic currency
14. Which among the following is not a measure of economic development?
(A) Human Development Index
(B) Physical Quality of Life Index
(C) Gini co-efficient ratio ✓
(D) Per capita income
15. Inflation unemployment trade-off shows:
(i) Inverse relationship between the rate of unemployment and money wage
(ii) Direct relationship between the rate of unemployment and inflation
(iii) Inverse relationship between the rate of unemployment and inflation
(A) (i) only
(B) (i) and (iii) are correct ✓
(C) (iii) only
(D) (ii) only
16. Lerner's index of monopoly power is the base of:
(A) Ricardo's theory of distribution
(B) Kalecki's theory of distribution ✓
(C) Marxian theory of distribution
(D) Euler's theory of distribution
17. In the short run, the monopolistic maximises profit if:
(A) MC = MR, slope of MC > slope of MR✓
(B) MC= MR, slope of MC < slope of MR
(C) MC = AC, slope of MC < slope of MR
(D) MC < MR, slope of MC < slope of MR
18. In hypothesis testing Type I error means:
(A) Accept the null hypothesis when it is true
(B) Accept the null hypothesis when it is false
(C) Reject the null hypothesis when it is true ✓
(D) Reject the null hypothesis when it is false
19. Which of the following statement is true?
(A) Impact of a tax cannot be shifted while incidence of a tax can be shifted
(B) Impact of a tax can be shifted while incidence of a tax cannot be shifted ✓
(C) Both Impact and incidence of a tax cannot be shifted
(D) Both Impact and incidence of a tax can be shifted
20. A measure of dispersion free from unit of measurement is:
(A) Standard deviation
(B) Quartile deviation
(C) Range
(D) Coefficient of variation ✓
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