Test Booklet Code & Serial No. A ECONOMICS

Transcription

1 Test Booklet Code & Serial No. A Signature and Name of Invigilator 1. (Signature)... (Name) (Signature)... (Name)... JAN ECONOMICS Seat No. (In figures as in Admit Card) Seat No.... (In words) OMR Sheet No. (To be filled by the Candidate) Time Allowed : 1¼ Hours] [Maximum Marks : 100 Number of Pages in this Booklet : 24 Number of Questions in this Booklet : 50 Instructions for the Candidates 1. Write your Seat No. and OMR Sheet No. in the space provided on the top of this page. 2. This paper consists of 50 objective type questions. Each question will carry two marks. All questions of Paper-II will be compulsory, covering entire syllabus (including all electives, without options). 3. At the commencement of examination, the question booklet will be given to the student. In the first 5 minutes, you are requested to open the booklet and compulsorily examine it as follows : (i) To have access to the Question Booklet, tear off the paper seal on the edge of this cover page. Do not accept a booklet without sticker-seal or open booklet. (ii) Tally the number of pages and number of questions in the booklet with the information printed on the cover page. Faulty booklets due to missing pages/ questions or questions repeated or not in serial order or any other discrepancy should not be accepted and correct booklet should be obtained from the invigilator within the period of 5 minutes. Afterwards, neither the Question Booklet will be replaced nor any extra time will be given. The same may please be noted. (iii) After this verification is over, the OMR Sheet Number should be entered on this Test Booklet. 4. Each question has four alternative responses marked,, and. You have to darken the circle as indicated below on the correct response against each item. Example : where is the correct response. A B D 5. Your responses to the items are to be indicated in the OMR Sheet given inside the Booklet only. If you mark at any place other than in the circle in the OMR Sheet, it will not be evaluated. 6. Read instructions given inside carefully. 7. Rough Work is to be done at the end of this booklet. 8. If you write your Name, Seat Number, Phone Number or put any mark on any part of the OMR Sheet, except for the space allotted for the relevant entries, which may disclose your identity, or use abusive language or employ any other unfair means, you will render yourself liable to disqualification. 9. You have to return original OMR Sheet to the invigilator at the end of the examination compulsorily and must not carry it with you outside the Examination Hall. You are, however, allowed to carry the Test Booklet and duplicate copy of OMR Sheet on conclusion of examination. 10. Use only Blue/Black Ball point pen. 11. Use of any calculator or log table, etc., is prohibited. 12. There is no negative marking for incorrect answers (i) (ii) (iii) 4.,, A B D

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3 Economics Paper II Time Allowed : 75 Minutes] [Maximum Marks : 100 Note : This paper contains Fifty (50) multiple choice questions, each question carrying Two (2) marks. Attempt All questions. (50) (2) II 1. Autonomous Demand indicates that.... Commodity is used both for the export and direct domestic consumption Commodity is used both for the direct domestic consumption and as an input to produce another commodity Commodity is needed for direct use but not as an input to produce another commodity Commodity is needed as an input to produce another commodity but not for the direct use 1. 3 [P.T.O.

4 2. Stay-out pricing approach.... Helps the firm to ascertain the maximum possible price it can charge from its consumers Helps the firm to ascertain the minimum possible price it can charge from its consumers Helps the firm to ascertain the maximum price it can pay to its vendors Helps the firm to ascertain the minimum price it can pay to its vendors 3. Profit maximising amount of inputs occurs when.... The slope of the Iso-profit line equals the slope of the production function The slope of the Iso-profit line exceeds the slope of the production function The slope of the production function exceeds the slope of the Iso-profit line The slope of the Iso-profit line exceeds the slope of the Isoquant

5 4. The producer shall not produce in 4. the third stage of production because in that stage.... The total product is negative The marginal product is negative The average product is stagnant The marginal product is falling 5. If the commodities are perfect 5. substitutes, the corresponding indifference curves would be.... Negatively sloping curves Positively sloping straight lines Negatively sloping straight lines L-shaped straight lines L 5 [P.T.O.

6 6. In the context of welfare economics, the social welfare function was put 6. forward by.... Hicks and Samuelson Pigou and Samuelson Robbins and Scitovszky Samuelson and Bergson 7. The average fixed cost (AFC) of 7. production curve is denoted by.... Rectangular hyperbola U-shaped curve L-shaped curve J-shaped curve 8. In the context of demand theory, the expression Choice reveals 8. preference is ascribed to... Paul Samuelson J.R. Hicks F. Machlup Robert Dorfman 6

7 9. Risk-return trade off plays an 9. important role in whose theory of money demand? Tobin s Portfolio Choice Friedman s restated quantity theory Baumol s inventory theoretic choice Cambridge money demand theory 10. Ratchet effect relates to : 10. Life-cycle hypothesis Permanent income hypothesis Relative income hypothesis Absolute income hypothesis 7 [P.T.O.

8 11. The Samuelson-Hicks type business 11. cycle models will show stability as well as cyclical fluctuations only : Income movement equation shows complex roots whose magnitudes are less than one Income movement equation shows real roots whose magnitudes are less than one Income movement equation shows complex roots whose magnitudes are more than one Income movement equation shows real roots whose magnitudes are more than one 12. In simple Keynesian model of output determination, government expenditure will have a bigger impact if : 12. Marginal propensity to consume is lower Marginal propensity to consume is higher Marginal propensity to save is constant Marginal propensity to consume is zero 8

9 13. Match the following : 13. Statement 1 Statement (a) Inventory (i) Edmund (a) (i) approach to Phelps money demand (b) (ii) (b) Adaptive (ii) William expectation Baumol (c) Upper turning(iii) John Hicks (c) (iii) point (d) Permanent (iv) Milton (d) (iv) income Friedman Codes : (a) (b) (c) (d) : (a) (b) (c) (d) (i) (ii) (iii) (iv) (i) (ii) (iii) (iv) (ii) (iii) (i) (iv) (ii) (iii) (i) (iv) (ii) (i) (iii) (iv) (ii) (i) (iii) (iv) (ii) (i) (iv) (iii) (ii) (i) (iv) (iii) 9 [P.T.O.

10 14. According to Cambridge version of 14. demand for money, money demand will increase if : Velocity of money increases alone GDP in the economy decreases alone GDP in the economy and velocity increase at the same rate Velocity in the economy decreases alone 15. If investment becomes totally 15. interest insensitive, then : Fiscal policy is ineffective Fiscal policy is effective Monetary policy is effective Both fiscal and monetary policy are ineffective 10

11 16. Long-run Phillips curve will not be vertical if : 16. Price inflation partially takes into account expected price inflation Price inflation fully takes into account expected price inflation Price inflation does not take into account expected price inflation at all Expected price inflation is always zero 17. Prof. Mahalanobis developed... model in 1955 which was later used in Five Year Plans of India. 17. Four sector Two sector Single sector Three sector 18. World Bank has indicated GDP growth rate in India is 7.6 percent in 2016 and will be... in % 7.7% 7.9% 8.0% 18. GDP [P.T.O.

12 19. In which strategic sector of Indian Economy hundred percent Foreign Direct Investment (FDI) is allowed recently? Science and technology Space Defence sector Critical medicines 20. Which one of the following has propounded the modern theory of distribution? Nicholas Kaldor David Ricardo Mrs. Joan Robbinson J.S. Mill 21. Cost-Benefit Analysis was developed in USA for appraisal of investments in.... Agriculture and Health projects Health and Garden projects Irrigation and Transportation project Technology and Health project

13 22. Quaternary Sector involves.... Research and development Provision of services Industry and manufacturing Agricultural services 23. Match the following : Theory (a) Theory of stages of economic growth (b) Theory of unlimited supplies of labour (c) The Big Push Theory 22. (Quarternary) 23. (a) (b) (c) (d) (d) Theory of unbalanced growth Propounder (i) Arthur Lewis (ii) W.W. Rostow (iii) A.O. Hirschman (iv) Rosenstein Rodan Codes : (a) (b) (c) (d) (iv) (iii) (i) (ii) (iii) (iv) (ii) (i) (i) (ii) (iii) (iv) : (a) (b) (c) (d) (iv) (iii) (i) (ii) (iii) (iv) (ii) (i) (ii) (i) (iv) (iii) (ii) (i) (iv) (iii) (i) (ii) (iii) (iv) (i) (ii) (iii) (iv) 13 [P.T.O.

14 24. To ensure fiscal autonomy to states, th Finance Commission recommended to increase its share from : 32% to 42% 30% to 42% 30% to 40% 35% to 40% 32% 42% 30% 42% 30% 40% 35% 40% 25. An Integrated Goods and Services Tax (IGST) would be collected by: 25. State Governments Central Government Municipal Corporations Finance Commission 26. Who is not the member of 14th Finance Commission? Sushma Nath Sudipto Mundle M. Govind Rao C.H. Hanumanta Rao

15 27. Which one of the following is not a Non-Debt Capital Receipts? 27. Disintvestment receipts Dividend receipts Short-term borrowing Tax Revenue 28. A public good is.... A good that the public must pay for Non-rival in consumption More costly than a privategood Paid for by a government 29. Reduction in consumer s welfare as a result of tax is referred to : Equity in taxation Dead weight loss Efficiency in taxation Incidence of tax 30. Which one of the following is the major component of revenue expenditure of Central Government? Pensions Interest payments Defence expenditure Expenditure on education [P.T.O.

16 31. All transactions of... nature are included in the current account of Balance of Payments. 31. Stock Volatile Flow Fluctuating 32. The commodity in which a nation has the least absolute disadvantage represents its area of : 32. Comparative disadvantage Comparative advantage Absolute advantage Cannot say without additional information 33. Ricardo s theory of comparative advantage is based on : 33. The opportunity cost theory The labour theory of value The law of diminishing returns The psychological law of consumption 16

17 34. We can best understand Smith s views on trade if we regard them as 34. a reaction to : The law of comparative advantage The mercantilist view on trade Ricardo s views on trade The law of absolute advantage 35. Uniformity in exchange rate occurs due to : 35. Foreign exchange arbitrage Devaluation Hedging Speculation 36. If a country can produce 10 units 36. of good x or 4 units of good y, the opportunity cost of 1 y is : 1 x 0.4 x 2.5 x 10 x 17 [P.T.O.

18 37. Match the following : (a) Infant industry argument (b) Import substituting industrialization (c) Reduction in the rates of protection for manufacturing by developing countries (d) Industrialization of high performance Asian economies (i) Domestic industries are established under the protection of tariffs or import quotas (ii) New industries need a temporary period of protection (iii) Not via import substitution but via export of manufactured goods (iv) Rapid growth of trade Codes : (a) (b) (c) (d) (iii) (i) (iv) (ii) (iv) (i) (ii) (iii) 37. : (a) (b) (c) (d) (i) (ii) (iii) (iv) : (a) (b) (iii) (i) (iv) (i) (c) (d) (iv) (ii) (ii) (iii) (iii) (iv) (i) (ii) (iii) (iv) (i) (ii) (ii) (i) (iv) (iii) (ii) (i) (iv) (iii) 18

19 38. What can you say about the following statements pertaining to Foreign Direct Investment in India? (i) FDI through automatic route does not require prior govt. approval. (ii) FDI through government route requires approval of the government through Foreign Investment Promotion Board. Both statement (i) and statement (ii) are incorrect Statement (i) is incorrect and statement (ii) is correct Both statement (i) and statement (ii) are correct Statement (i) is correct and statement (ii) is incorrect 39. Which of the following is not a tool used by RBI for regulating money supply in India? (i) Open market operations (ii) Repo rate (iii) Statutory Liquidity Ratio (iv) Disinvestment (iv) (i) (iii) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (iii) (iv) (iv) (i) (iii) (ii) 19 [P.T.O.

20 40. Which of the following are examples of a direct tax in India? 40. (i) Excise duty (ii) Service tax (iii) Income tax (i), (ii), (iii) (i) (ii) (iii) (i), (ii), (iii) Only (iii) (iii) (i) and (iii) (ii) and (iii) 41. In the year 1966, the exchange value of rupee against American dollar was devalued by % 65% 48% 57% 42. The All India Rural Credit Survey Committee, 1954 was chaired by : D.R. Gadgil V.K.R.V. Rao A.D. Gorawala Vaikunthlal Mehta (i) (iii) (ii) (iii) 75% 65% 48% 57% 20

21 43. Among top fifteen fastest growing service sector countries... share of services in its total GDP is less than 50 percentage. France Germany China Australia 44. Which is the correct descending order of India s software export destination in recent times? (i) Asia Pacific, North America, Europe (ii) Europe, Asia Pacific, North America (iii) Europe, North America, Asia Pacific (iv) North America, Europe, Asia Pacific (iv) (iii) (i) (ii) GDP (i) (ii) (iii) (iv) (iv) (iii) (i) (ii) 21 [P.T.O.

22 45. The abbreviation ICOR suggests : International Credit Output Ratio Incremental Capital Output Ratio Incremental Capital Output Range Indian Capital Output Rules 46. Statistic is a numerical quantity which is calculated from : Population Sample Universe Hypothesis 47. Which of the following is used in chain indices? 45. ICOR p n p0 100 p n p0 100 p n pn p n pn p n p p n p p q p q n n pnqn p0q

23 48. The most suitable average for qualitative measurements is.... Arithmetic mean Median Correlation coefficient Geometric mean The strength (degree) of the relationship between a set of independent variable x and dependent variable y is measured by: Coefficient of correlation Coefficient of determination Standard Error of estimate All of the above 50. Consumer Price Index number is 49. (x) (y) 50. also known as : Wholesale Price Index number Cost of Living Index Sensitive Composite 23 [P.T.O.

24 ROUGH WORK 24