Question for KEA Assistant Professor (Economics) 2026 - Quiz / Questions / MCQ

Objective Questions

Latest KEA Assistant Professor Economics Exam Question (Objective Questions), MCQ in English

Subjects : Economics

Question Bank KEA Assistant Professor (Economics) Exam Paper IV - English

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Economics

Question 1Single Answer

The cost incurred by the firm in hiring labour is called as :

A
Explicit cost
B
Implicit Cost
C
Marginal Cost
D
Total Cost

Question 2Single Answer

The locus of Pareto optimality in production and consumption is given by :

A
The social Welfare Function
B
The Utility Possibility Curve
C
The Transformation Curve
D
The Grand Utility possibility Curve

Question 3Single Answer

Match items given in List-1 with those in List-II :
List-I                                      List_II
a. Tea and coffee         1. Veblen goods
b. Car and petrol            2. Substitutes
c. Gold and               3. Giffen goods
Diamonds
d. Ragi and Bajra       4. Complementary

A
Codes :
a b c d
2 1 3 4
B
2 4 1 3
C
4 1 2 3
D
4 3 1 2

Question 4Single Answer

Assertion (A) : In the short run under perfect competition, given the market demand and market supply the industry is in equilibrium at that price which clears the market.
Reason (R) : In the long run all the firms in the industry earn profit .

A
Codes :
Both (A) and (R) are true and (R) is the correct explanations of (A)
B
Both (A) and (R) are true , but (R) is not correct explanation of (A)
C
(A) is true , but (R) is false
D
(A) is false , but (R) is true

Question 5Single Answer

Put the following in chronological order on the basis of development :
I. Law of demand
II.Revealed Preference Analysis
III. IIndifference Curve Analysis
IV. Law of Diminishing Marginal Utility

A
I, II, III, IV
B
I, IV, III, II
C
I, II, IV,III
D
I, III, IV, II

Question 6Single Answer

If the monopolist incurs loss in the short run , then in the long run :
a. he will go out of business.
b. he will stay in business
c. he will break even
d. any of the above is possible

A
(A) and (B)
B
(A) and (C)
C
(A) only
D
(D) only

Question 7Single Answer

The condition of Pareto Optimality holds correct under.

A
Perfect Competition
B
Monopolistic Competition
C
Oligopoly
D
Monopoly

Question 8Single Answer

Assertion (A) : Compared to the individual supply curve is more elastic .
Reason (R) : There is the possibility of moving between being out of the labour force and being in the labour force.
Choose amongst the following the correct answer .

A
Codes :
(A) is correct , but (R) I not the correct explanation of (A)
B
(A) is correct and (R) is the correct explanation of (A)
C
(A) is correct , but (R) is incorrect
D
(A) is incorrect , but (R) Is correct

Question 9Single Answer

With reference to demand for money, match List-I with List-II :
List-I List-II
a. Demand for money 1. J.M. Keynes
is stable
b. Liquidity preference 2. W. Baumol
as behaviour towards
risk
c. Inventory Theoretic 3. James Tobin
Approach
d. No portfolio 4. Milton Friedman
diversification

A
Codes:
A b c d
4 3 1 2
B
3 4 1 2
C
2 1 3 1
D
4 3 2 1

Question 10Single Answer

The negative relationship between the gap between actual GDP and its trend value and the difference between actual unemployment rate and its equilibrium value is called :

A
The Aggregate supply curve
B
The Phillips curve
C
The Natural Rate of Unemployment Hypothesis
D
Okun’s Law

Question 11Single Answer

It is often true that as the economy begins to recover from a recession , the unemployment rate rises because :

A
As the economy initially recovers from a recession the demand for goods and services falls, so the demand for workers falls.
B
b. as the economy begins to recover from a recession , workers who were previously discouraged about their chance of finding a job begin to look for work again
C
as the economy begins to recover from a recession because of the errors in the way the data are collected.
D
as the economy initially recovers, from a recession, firms do not immediately increase the number of workers they hire. Firms wait to hire more individuals until they are convinced that the recovery is strong

Question 12Single Answer

When additional government expenditure is financed by selling government securities, then what will be the nature of crowding out effect , given in List-I in the context of the situation given in List-II ?
List-I                                                      List-II
Crowding out effect                                 Situations
a. Full                                        1. Keynesian Range
b. Partial 2. Classical Range
c. Nil 3. Intermediate Range

A
Codes :
a b c
2 3 1
B
3 1 2
C
1 3 2
D
1 2 3

Question 13Single Answer

Match items given in List-I with those in List-II :
List-I                                      List-II
a. Equation of               1. J.M. Keynes
exchange
b. Cash Balance            2. Irving Fisher
Approach
c. Regressive 3. W.J. Baumol
Expectation
Model of
Demand money
d. Square Root           4. A.c. Pigou and
Formula of                   Alfred Marshall
Demand for
Money

A
Codes:
a b c d
2 4 1 3
B
3 2 4 1
C
4 3 1 2
D
1 3 2 4

Question 14Single Answer

The premise, that benefit of economic growth will reach all sections of population is called :

A
Trickle up effect
B
Trickle down effect
C
Take-off effect
D
Backlash effect

Question 15Single Answer

In whose growth model, entrepreneur’s significance is pivotal ?

A
Keynes
B
Schumpeter
C
Harrod
D
Domer

Question 16Single Answer

The classical model of economic development emphasises :

A
Laissez-Faire Policy
B
Capital Accumulation
C
Both (A) and (B)
D
None of these

Question 17Single Answer

Which one of the following pairs is not correctly matched ?

A
Author Book
Simon Kuznets Asian Drama
B
J. Robinson Essays in the Theory
of Economic Growth
C
Karl Marx Das Capital
D
A.W. Lewis Theory of Economic Growth

Question 18Single Answer

What does change in economic growth ?

A
Structure of economy
B
Mindsets of people
C
National Income
D
None of These

Question 19Single Answer

Which States/U. Ts have been placed at first three places in Gender Development index List 2006 made by the Government of India ?

A
Kerala, Chandigarh, Goa
B
Kerala, Goa, Chandigarh
C
Chandigarh, Goa, Kerala
D
Goa, Kerala, Chandigarh

Question 20Single Answer

Assertion (A) : There is no incentive for a profit maximizing producer to supply the public goods.
Reason (R) : If he produce it he is unable to exclude people from consuming it and hence he cannot charge a price.

A
Codes :
(A) is true, but (R) is false
B
Both (A) and (R) are false
C
(A) is not correct, but (R) is correct
D
Both (A) and (R) are correct and (R) is the correct explanation of (A)

Question 21Single Answer

The distribution of the burden of paying a tax is called :

A
Sharing of tax burden
B
Shifting of the tax
C
Incidence of a tax
D
Tax capitalization

Question 22Single Answer

Which one of the following is short period debt meant to meet current needs, that is filling temporary gap in budgets ?

A
Funded debt
B
Unfunded debt
C
Redeemable debt
D
Irredeemable debt

Question 23Single Answer

Monestised deficit means :

A
Fiscal deficit less interest payments
B
Government expenditure which is financed through the sale of adhoctreasury bills.
C
Increase in RBI credit to Central Government
D
Fiscal deficit less loans and advances.

Question 24Single Answer

A proportionate increase in tax revenue to a proportionate increase in the tax base is called :

A
Elasticity of a tax
B
Buoyancy of a tax
C
Neutrality of a tax
D
None of the above

Question 25Single Answer

‘Vent for surplus approach ‘ is applicable to :

A
Rich countries
B
Underdeveloped countries
C
Oil exporting countries
D
None of the above

Question 26Single Answer

According to monetary approach, a revaluation of a nation’s currency :

A
increases the nation’s demand for money
B
increases the nation’s supply of money
C
reduces the nation’s demand for money
D
reduces the nation’s supply of money

Question 27Single Answer

The Bretton woods System was based on :

A
a gold standard
B
a flexible exchange rate system
C
a gold exchange standard
D
none of the above

Question 28Single Answer

The imposition of an import tariff by a large nation :

A
usually improves the nation’s terms of trade and increases the volume of trade .
B
Worsens the nation’s terms of trade but increases the volume of trade
C
worsens the nation’s terms of trade and reduces the volume of trade .
D
usually improves the nation’s terms of trade but reduces the volume of trades .

Question 29Single Answer

The value of foreign trade multiplier will be high under the condition when:

A
Marginal propensity to save is high
B
marginal propensity to import is high
C
there is increases in exports
D
marginal propensity to consume domestic good is high

Question 30Single Answer

Match the weight of different industry groups between List-I & List-II :
List-I List-II
a. Basic goods industries 1. 45.7
b. Capital goods industries 2. 8.8
c. Intermediate goods 3. 15.7
industries
d. Consumer goods 4. 29.8
industries

A
a b c d
1 2 3 4
B
2 4 3 1
C
3 2 1 4
D
1 3 4 2

Question 31Single Answer

Plant load factor of thermal power stations in india in recent years has been around :

A
50 percent
B
60 percent
C
70 percent
D
80 percent

Question 32Single Answer

Which of the following is not the part of national Telecom Policy (NTP) 2012 in India ?

A
strive to create One – Nation-One License across services and services areas
B
Achieve One Nation – Full Mobile number portability
C
To work towards ‘Right to Broadband’
D
Recognize telecom as basic goods industry

Question 33Single Answer

Percentage share of the manufacturing output of india in the world total is now :

A
2.2 percent
B
3.9 percent
C
6.2 percent
D
7.5 percent

Question 34Single Answer

India’s current account deficit in Balance of trade is mainly due to :
a. Increasing imports of oil and petroleum
b. Increasing imports of gold and silver
c. Increasing imports of food grains
d. Increasing imports of iron and steel

A
Codes :
(a), (b) and (c)
B
(a) and (c)
C
(a) and (b)
D
(a) and (d)

Question 35Single Answer

The MRTP Act of 1969 has been :

A
replaced by Competition Act 2002
B
merged in industrial Policy Act of 1978
C
replaced by Trade Union (Amendment) Act 2001
D
merged in industrial Policy Act of 1991

Question 36Single Answer

In the context of agricultural development the trickle down theory has been interpreted to suggest That :
a. Growth in agriculture output without radical institutional reforms will reduce the incidence of poverty
b. Growth in agricultural output with radical institutional reforms will reduce the incidence of poverty
c. Only radical institutional reforms can reduce the incidence of poverty .
d. Only growth in agricultural output will reduce incidence of poverty

A
Both (a) and (b)
B
Both (a) and (c)
C
(b) only
D
(d) only

Question 37Single Answer

As per the latest figures of the Ministry of Agricultural the per capita per day food grains availability is :

A
280 gm
B
440 gm
C
580 gm
D
900 gm

Question 38Single Answer

In which year the Kissan Credit Card system was introduced ?

A
1978
B
1998
C
1988
D
2008

Question 39Single Answer

Assertion (A) : PL-480 grants was used to import food grains .
Reason (R) : PL-480 grants facility was granted by Japan.

A
Codes :
Both (A) and (R) are true and (R) is the correct explanation of (A)
B
Both (A) and (R) are true and (R) is not the correct explanation of (A)
C
(A) is true, but (R) , is false .
D
(A) is false , but (R) is true .

Question 40Single Answer

Productive of groundnut is highest in :

A
U.S.A.
B
Mexico
C
Indian
D
China

Question 41Single Answer

NAFED is a :

A
Company
B
Non-Government Organisation
C
Government Body
D
Cooperative Organisation

Question 42Single Answer

Based on the SRS data for 2010 in India. Which of the following seems to be incorrect ?

A
TFR= 2.5
B
CDR =7.2
C
IMR=48.9
D
CBR=24.2

Question 43Single Answer

Upto which census, synchronous de facto method was adopted in India wherein the census was conducted throughout the country in a single night ?

A
1901
B
1931
C
1951
D
1971

Question 44Single Answer

Match the following :
Groups-I                              Groups-II
a. Type II error            1. P_1o x p₁₀ = 1
b. Mean > Mode        2. Probability of not
rejecting H₀ when it
was not true.
c. Population is 3. Positively skewed
         homogenous distribution
d. Time Reversal
          Test 4. Simple random
Sampling

A
Codes:
a b c d
2 3 4 1
B
3 1 2 4
C
4 2 3 1
D
1 2 3 4

Question 45Single Answer

Assertion (A) : For normal distribution mean = Median = Mode
Reason (R) : Normal distribution is mesokurtic.

A
Codes:
Both (A) and (R) are true and (R) is the correct explanations of (A).
B
Both (A) and (R) are correct but (R) is not the correct of (A)
C
(A) is correct, but (R) is incorrect.
D
(A) is incorrect , but (R) is correct

Question 46Single Answer

Which of the following satisfy time reversal test but not factor reversal test ?

A
Laspeyre’s Index No.
B
Fisher Index No.
C
Paasche’e Index No.
D
Marshall - Edgeworth Index No.

Question 47Single Answer

Which is a non-probability based sampling method ?

A
Systematic Sampling
B
Stratified Random Sampling
C
Quota Sampling
D
Simple Random Sampling

Question 48Single Answer

Which one of the following is not an assumption of linear programming ?

A
Constant output prices
B
Constant input prices
C
Increasing return to scale
D
Technologically fixed factor proportion

Question 49Single Answer

In the paul Sweezy Model of Oligopoly in the Kinked Demand Curve, the point of kink represents :

A
Quantity Rigidity
B
Price Rigidity
C
Both the price and Quantity Rigidity
D
Only Price Rigidity

Question 50Single Answer

Match List-I with List-II :
List-I List-II
Offer Curves 1. Public Revenue
Laffer Curve 2. Sticky Price
Lorenz Curve 3. Reciprocal demand
Kinked Demand Curve 4. Inequalities
Codes :

A
A b c d
3 1 4 2
B
1 3 2 4
C
3 4 1 2
D
4 1 2 3

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Economics

Question 51Single Answer

Mach the items in List-I with items in List-II
                List –I                                    List-II
Technical Monopoly              1. Gold and silver
Global Market                         2. Cartel
Legal Monopoly                      3. Coca Cola
Oligopoly 4. Patent Rights
Codes :

A
A b c d
3 1 4 2
B
3 2 1 4
C
4 3 1 2
D
4 1 2 3

Question 52Single Answer

Assertion (A) : Consumer surplus is the difference between the potential price and actual price and actual price
Reason (R) : There exists an inverse relationship between the price and consumer surplus
Codes :

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

Question 53Single Answer

Assertion (A) : The long run cost curve is L shaped rather than U shaped
Reason (R) : The new technique of production of large plants reduce the total cost per unit of output in the long run
Codes :

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 false , but (R) is true
D
(R) is false , but (A) is true

Question 54Single Answer

Which of the following is true ?
a. Indifference curve s slope downward from left to right
b. Indifference curves slope downward from right to left
c. Indifference Curves are convex to the point of origin of the twoaxes
d. Indifference curves never intersect each other

A
a b and are true
B
b c and are true
C
a c and d are true
D
a and d are true

Question 55Single Answer

A major portion of the multiplier effect is realized in fewer periods when marginal propensity to consume is :

A
unity
B
larger
C
smaller
D
none of the above

Question 56Single Answer

The optimum capital stock is achieved when the user cost of capital is equal to :

A
the interest rate
B
the depreciation rate
C
the marginal product of capital
D
Tobin’s Q

Question 57Single Answer

If the economy is operating at potential GDP, an increases in money supply will lead to :

A
Stagflation
B
Structural inflation
C
Demand – side inflation
D
Supply-side inflation

Question 58Single Answer

Which of the following is true in case of the orthodox (early) Keynesians ?
1. Interest elasticity of demand for money extremely high
2. Interest elasticity of demand for money is low
3. Changes in the quantity of money do not have important predictable effects on the level of economic activity
4. Demand for money in unstable

A
1, 2, 3
B
1, 3, 4
C
1, 2, 4
D
2, 3, 4

Question 59Single Answer

Which of the following statements is false ?

A
The IS curve is flatter , lower the value of the Keynesian multiplier and lower the interest resistiveness of investment
B
The IS curve is steeper lower the value of the Keynesian multiplier and lower the interest resistiveness of investment
C
The position of LM curve depends negatively on the price level and the resistiveness of the money demand to the change in income
D
the LM curve is flatter, the larger the interest resistiveness of the money demand and the lower the income resistiveness of the money demand

Question 60Single Answer

Which of the following statements are true ?
1. Increased government spending affects aggregate spending more quickly than does an increase inmoney supply
2. An increase in aggregate demand has no effect upon real output when aggregate supply is vertical
3. An increases in government spending always crowds out an equal amount of private sector interestsensitive spending
4. Increased government spending affects aggregate supply less quickly than does an increase inmoney supply
codes :

A
1 & 2
B
1 & 3
C
1 & 4
D
3 & 4

Question 61Single Answer

For downward movement along the isoquants , MRTS of labour per unit of capital (MRTS_L,K) is given by:

A
–dK/dL
B
dK/dL
C
dL/dK
D
-dL/dK

Question 62Single Answer

Which of the following is not instructional material ?

A
Over Head Projector
B
Audio Casset
C
Printed Material
D
Transparency

Question 63Single Answer

Which of the following is the most significant in stabilization policy ?

A
Private investment
B
Inventory investment
C
Autonomous investment
D
Public investment

Question 64Single Answer

The concept of vicious circle of poverty is associated with :

A
Kindleberger
B
Schumpeter
C
Ragnar Frish
D
Gunnar Myrdal

Question 65Single Answer

Solow built his model as an alternative to :

A
Kaldor’s model of growth
B
Ranis-Fei model of growth
C
Harrod-Domar model of growth
D
Meade’s model of growth

Question 66Single Answer

If interest payments are subtracted from gross fiscal deficit, the remainder will be :

A
Revenue deficit
B
gross primary deficit
C
Capital deficit
D
Budgetary deficit

Question 67Single Answer

Which of the following measures of central tendency will be the most appropriate to use if the data relate to rates , proportion and ratios

A
Arithmetic mean
B
Median
C
Geometric mean
D
Harmonic mean

Question 68Single Answer

Opportunity cost version of comparative cost advantage doctrine was introduced by :

A
J.M. Keynes
B
Kindleberger
C
Haberler
D
Karl Marx

Question 69Single Answer

The most popular definition of sustainable development is given by :

A
World Development Report
B
UNDP Report
C
Brundtland
D
IMF Report

Question 70Single Answer

During the planning period, highest growth rate was achieved during

A
eighth plan
B
tenth plan
C
ninth plan
D
seventh plan

Question 71Single Answer

The feature of the classical system are :
a. Monetary factors determine output and employment
b. Self adjusting mechanism of the economy
c. State action to direct development
d. Optimization through market in the absence of state control
Codes :

A
a and b
B
a, b, c
C
b and d
D
a b d

Question 72Single Answer

Concepts of displacement and concentration effect in public expenditure are attributed to :
a. A.C. Pigou and J.K. Mehta
b. Alan T. Peacock and Jack Wiseman
c. Kenneth Arrow and Paul A.
d. A.R. Prest and I.M.D. Little
Codes :

A
a and b
B
b
C
a b c
D
a b c d

Question 73Single Answer

Human Development Index (HDI) is constructed with reference to :
a. Life expectancy at birth, real GDP per capita, gross enrolment ration, adult literacy rate
b. Life expectancy at birth, real GDP per capita, combined gross enrolment ration, adult literacy rate
c. Life expectancy, GDP per capita, infant mortality rate, literacy rate
d. GDP per capital, infant mortality rate, literacy rate
Codes

A
a and b
B
a and c
C
c
D
a, b, c

Question 74Single Answer

The unbalanced growth model was propounded first by :
a. Albert O. Hirschman
b. H.S. Singer and Raul Prebisch
c. Kindelberger and Ragnar Nurkse
d. W.W Rostow and Paul Streeten
Codes

A
a and b
B
a and c
C
a and d
D
a

Question 75Single Answer

Factor endowment theory is also known as :
a. Modern theory of international trade
b. Classical theory of international trade
c. Reciprocal demand theory
d. Factor proportions theory of international trade
codes

A
a and b
B
b and c
C
a and d
D
c and d

Question 76Single Answer

Most important theory of increasing public expenditure is associated with :
a. Adolph Wagner’s hypothesis
b. Critical limit hypothesis
c. Administrative efficiency hypothesis
d. Stability of income hypothesis
Codes :

A
a and b
B
a and c
C
a
D
c and d

Question 77Single Answer

Under the Brettonwood system, the long term development assistance was to be provided by :
a. IBRD
b. IDA
c IMF
d. All the above
Codes :

A
a and b
B
a, b, c
C
a and c
D
d

Question 78Single Answer

he Planning Commission of India has recently announced the poverty line as :
a. 42/- per day person for urban areas
b. 26/- per day person for rural areas
c. 32/- per day person for urban areas
d 32/- per day person for rural areas
Codes :

A
a and b
B
a and c
C
b and c
D
c and d

Question 79Single Answer

Assertion (A) : There is a natural tendency to collude under oligopoly
Reason (R) : Inter – dependence of firms in oligopolistic markets
Codes :

A
Both (A) and (R) are correct , but (R) is not the correct explanation of (A)
B
Both (A) and (R) are correct , but (R) is the correct explanation of (A)
C
(A) is correct, but (R) is incorrect
D
(A) is incorrect, but (R) is correct

Question 80Single Answer

Assertion (A) : In short run, the marginal cost of output is the cost of additional labour and materials used in production
Reson (R) : Materials and labour used in production along vary in short run
Codes :

A
(A) is correct, but (R) is incorrect
B
(A) is incorrect, but (R) is correct
C
Both (A) and (R) are correct , but (R) is the correct explanation of (A)
D
Both (A) and (R) are incorrect

Question 81Single Answer

Assertion (A) : Post reform liberal trade policies have stimulated India’s growth
Reason (R) Private enterprises got opportunities to contribute to growth of Indian manufacturing Industries
Codes :

A
Both (A) and (R) are correct , but (R) is the correct explanation of (A)
B
Both (A) and (R) are correct , but (R) is not the correct explanation of (A)
C
(A) is correct, but (R) is incorrect
D
(A) is incorrect, but (R) is correct

Question 82Single Answer

Assertion (A) : Use of goods and services from which one can be excluded are pure private goods
Reason (R) Such goods and services are not provided free by the state
Codes :

A
Both (A) and (R) are correct , but (R) is the correct explanation of (A)
B
Both (A) and (R) are correct , but (R) is not the correct explanation of (A)
C
(A) is correct, but (R) is incorrect
D
(A) is incorrect, but (R) is correct

Question 83Single Answer

Assertion (A) : ‘A country is poor because it is poor’
Reason (R) : Income of a poor country is low, so its savings and investment are low lowinvestment limits its productive capacity which leads to low output and income
Codes

A
Both (A) and (R) are correct , but (R) is not the correct explanation of (A)
B
Both (A) and (R) are correct , but (R) is the correct explanation of (A)
C
(A) is correct, but (R) is incorrect
D
(A) is incorrect, but (R) is correct

Question 84Single Answer

Assertion (A) : All historical events are the result of a continuous economic struggle between different classes and groups in a society
Reason (R) This struggle is because of the conflict between the mode or production and thevalue attached to the roles of different agents of production
Codes :

A
Both (A) and (R) are correct , but (R) is not the correct explanation of (A)
B
Both (A) and (R) are correct , but (R) is the correct explanation of (A)
C
(A) is correct, but (R) is incorrect
D
(A) is incorrect, but (R) is correct

Question 85Single Answer

Assertion (A) : K/L will adjust through time to the equilibrium vale of the ratio
Reason (R) : Technical coefficients of production are fixed
Codes :

A
Both (A) and (R) are correct , but (R) is the correct explanation of (A
B
Both (A) and (R) are correct , but (R) is not the correct explanation of (A)
C
(A) is correct, but (R) is incorrect
D
(A) is incorrect, but (R) is correct

Question 86Single Answer

Assertion (A) Investment has a demand effect
Reason (R) Investment augments the productivity and income in the economy
Codes

A
Both (A) and (R) are correct , but (R) is the correct explanation of (A)
B
Both (A) and (R) are correct , but (R) is not the correct explanation of (A
C
(A) is correct, but (R) is incorrect
D
(A) is incorrect, but (R) is correct

Question 87Single Answer

Assertion (A) : Agricultural is the main source of livelihood of people in India
Reason (R) : Measure for agricultural development should be undertaken
Codes :

A
Both (A) and (R) are correct , but (R) is the correct explanation of (A)
B
Both (A) and (R) are correct , but (R) is not the correct explanation of (A)
C
(A) is correct, but (R) is incorrect
D
(A) is incorrect, but (R) is correct

Question 88Single Answer

Assertion (A) : In the following regression equation Y = a + bX, ‘x’ shows the autonomous value of Y
Reason (R) if X = 0, Y = a holds hence , a is the minimum value of Y which is independent of any influence of X on Y
Codes

A
Both (A) and (R) are correct , but (R) is the correct explanation of (A)
B
Both (A) and (R) are correct , but (R) is not the correct explanation of (A)
C
(A) is correct, but (R) is incorrect
D
(A) is incorrect, but (R) is correct

Question 89Single Answer

Identify the order of chronological development of the theory of demand of the theory of demand
a. Marshall’s theory of demand
b. Indifference curves
c. Revealed preference theory
d. Weak Preference ordering theory of demand
codes :

A
a, c, d, b
B
d, b, a, c
C
a, c, b, d
D
a, b, c, d

Question 90Single Answer

Identify the correct chronological order of the following theories :
a. Cambridge version of quantity theory of money
b. Fisher’s version of quantity theory of money
c. Tobin’s theory of demand for money
d. Baumol’s theory of demand for inventory
Codes :

A
c, d, a, b
B
b, a, d, c
C
d, a, b, c
D
a, b, c, d

Question 91Single Answer

Identify the correct chronological order of the following :
a. Keynes’s consumption function
b. Life Cycle hypothesis
c. Relative income hypothesis
d. Friedman’s permanent income hypothesis
Codes :

A
d, b, a, c
B
b, a, c, d
C
a, c, d, b
D
c, d, b, a

Question 92Single Answer

Identify the correct chronological of stages of marxian model of economic development
a. Capitalist crisis
b. Capital accumulation
c. Surplus value
d. Materialistic interpretation of history
Codes :

A
b, a, c, d
B
c, d, b, a
C
d, c, b, a
D
c, b, a, d

Question 93Single Answer

the sequencing process of Harrod’s model of development is :
a. Natural growth rate
b. Warranted growth rate
c. Actual growth rate
d. Divergence
Codes :

A
d, c, b, a
B
c, b, a, d
C
b, a, d, c
D
a, d, c, b

Question 94Single Answer

Arrange the following summits of SAARC members in order in which these were members in order these were organized :
a. New Delhi
b. Bangalore
c. Islamabad
d. Kathmandu
Codes :

A
a, c, d, b
B
a, b, c, d
C
b, d, c, a
D
a, b, a, d

Question 95Single Answer

Arrange the structure of balance of payment accounts in which these items appear :
a. Capital accounts
b. Errors and omissions
c. Current account
d. Official settlements accounts
Codes :

A
a, b, c, d
B
a, a, d, b
C
d , c, b, a
D
c, d, a, b

Question 96Single Answer

State the order of the appointment of the following as chairman of Finance Commission :
a. K.C. Neogy
b. K. Brahamanand Reddy
c. N. K. P. Salve
d. A. K. Chanda
Codes :

A
a, c, b, d
B
a, d, b, c
C
a, c, d, b
D
a, b, d, c

Question 97Single Answer

Determine the order in which the following were developed :
a. Fisher’s F test of significance of differences between the mean of more than two samples
b. Gosset’s t-test of differences between the mean of more than two samples
c. Pearson ‘ s correlation coefficient
d. Spearman ‘s rank correlation coefficient
Codes :

A
a, b, c, d
B
b, a, c, d
C
c, b, a, d
D
a, a, b. c

Question 98Single Answer

List-I List-II
a. Kinked demand curve hypothesis i. William Baumol
b. Sales maximization model of ii. Paul Sweezy
oligopoly
c. Social Welfare Criterion iii. Adam Smith
d. Law of Invisible hand iv. Bergson
Codes :

A
A b c d
iv iii I ii
B
ii I iv iii
C
ii iii I iv
D
I iv iii ii

Question 99Single Answer

List-I List-II
a. Psychological Law of consumption i. Irving Fisher
b. Time Preference theory of interest ii. J.M. Keyne
c. Public Choice View iii. Mundell and Fleming
d. Open Economy IS-LM model iv. Gorden Tullock
Codes :

A
A b c d
iv ii iv i
B
iv I iii ii
C
ii I iv iii
D
I iii iv ii

Question 100Single Answer

List-I List-II
a. Mid-day meal scheme i. 2006
b. Implementation of M-NREGA ii. 1995
c. Cash-Reserve Ratio iii. Finance Commission
d. Division Taxes iv. Reserve Bank of India
codes:

A
A b c d
iv ii iv i
B
iv I iii ii
C
ii I iv iii
D
I iii iv ii

Question 101Single Answer

List-I                                      List-II
a. Monetary Policy                                   i. Tax Rate
b. Trade Policy                                            ii. Margin Money
c. Credit Policy                                            iii. Imports and exports
d. Fiscal Policy                                              iv. Bank Rate
codes:

A
A b c d
iv ii iv i
B
iv I iii ii
C
ii I iv iii
D
I iii iv ii

Question 102Single Answer

List-I                                      List-II
a. J.N. Buchanan                        i. Canons of public Expenditure
b. Findlay Shirras                        ii. Functional Finance
c. R.N. Bhargava                          iii. Public-Choice theory
d. A.P. Lerner                               iv. Federal Finance
codes:

A
A b c d
iv ii iv i
B
iv I iii ii
C
ii I iv iii
D
I iii iv ii

Question 103Single Answer

List-I List-II
a. Organic Composition of capital i. Hirshman
b. Doctrine of Natural law ii. Schumpeter
c. Innovation iii. Marx
d. Unbalanced Growth iv. Adam Smith
codes:

A
A b c d
iv ii iv i
B
iv I iii ii
C
ii I iv iii
D
I iii iv ii

Question 104Single Answer

List-I List-II
a. Law of Absolute cost advantage i. Haberler
b. Doctrine of Comparative ii. Hescher OhlinCost advantage
c. Modern Theory of International iii. Adam SmithTrade
d. Opportunity Cost iv. RicardoPrincipal
codes:

A
A b c d
iv ii iv i
B
iv I iii ii
C
ii I iv iii
D
I iii iv ii

Question 105Single Answer

List-I List-II
a. Monetarism i. R.F.Kahn
b. Employment multiplier ii. T. Havelmo
c. Multiplier effect of balanced iii. John MuthBudget
d. Rational expectation hypothesis iv. Milton Friedman
codes:

A
A b c d
iv ii iv i
B
iv I iii ii
C
ii I iv iii
D
I iii iv ii

Question 106Single Answer

List-I List-II
A. Theory of probability i. Single value to represent distribution
b. Mean ii. Uncertain events
c. Normal Distribution iii. Mini replica of population
d. Sample iv. Symmetrical with almost total area with in
M(mean) +-30(sig, ma)
codes:

A
A b c d
iv ii iv i
B
iv I iii ii
C
ii I iv iii
D
I iii iv ii

Question 107Single Answer

A demand curve, Which is parallel to the horizontal axis, showing quantity , has the price elasticity equal to

A
Zero
B
Infinity
C
Less than one
D
One

Question 108Single Answer

Although a monopolist can charge any price he likes, but does not charge a higher price than his equilibrium price because :

A
Higher price mean fall in total revenue
B
Higher price can be charged only on that segment of firm’s demand curve which is price inelasticimplaying that the marginal revenue will be negative
C
it is inconsistent with profit maximization goal under monopoly
D
marginal cost will be negative over the relevant range of output

Question 109Single Answer

Which of the following condition specify the least cost – output combination ?

A
P_L/P_K = MRTS
B
P_L/P_K= MP_L/MP_K
C
MP_K/ML_L =dL/dk
D
All the above

Question 110Single Answer

Which of the following is not relevant in case of Sweezy’s oligopoly model ?

A
A price cut by a firm is followed by the price cut by the rival firms
B
Price hike is not followed by the rival firms
C
Firms do not react to price change made by one of the firms
D
Firms react to all kinds of price changes made by the rival

Question 111Single Answer

According to the loanable Funds Theory the rate of interest in a function of :

A
Investment
B
Desire to hard money
C
Quantity of money
D
All the above

Question 112Single Answer

While analyzing the marginal productivity theory of distribution clark gave more emphasis on :

A
Demand for labour
B
supply of labour
C
Both demand as well as supply of labour
D
Profit Maximumization

Question 113Single Answer

A general equilibrium is defined as a state in which all economic units maximize their respectiveobjective functions, all prices are simultaneously in equilibrium and all markets are cleared . the
statements is :

A
Correct
B
not correct
C
Perfectly correct
D
None of them

Question 114Single Answer

According to Mundell in an optimum currency area, the achievement of internal and external balance is possible through :

A
Capital flows
B
Inflow of funds from abroad
C
Official development assistance
D
The mobility of factors

Question 115Single Answer

An agreement between two countries to maintain a free area a common external tariff , freemobility of capital and labour and degree of unification in government policies and monetary policy is called :

A
Common market
B
Free trade area
C
Economic union
D
Customs union

Question 116Single Answer

The core principles of multi lateral trading system are :
I. Non – Discrimination
II. Reciprocity
III. Protectionism
IV. Domestic Safegaurds
Codes :

A
I, II and IV are correct
B
II and III are correct
C
II, III and IV are correct
D
I and II are correct

Question 117Single Answer

Assertion (A) : Many development countries contend that labour standards constitute a barrier tofree trade
Reason (R) :Their competitive advantage in the global economy is cheap labour

A
Both (A) and (R) are correct but (R) is not the correct explanation of (A)
B
Both (A) and (R) are true and (R) is the correct explanation of (A)
C
(A) is false but (R) is true
D
(A) is true but (R) is false

Question 118Single Answer

Arrange in order the WTO ministerial :
I. Geneva II. Doha
III. Hong Kong IV. Seattle

A
II IV III I
B
III IV I II
C
IV II III I
D
I IV II III

Question 119Single Answer

What does Hedging mean ?

A
The acceptance of a foreign exchange risk
B
The covering of a foreign exchange risk
C
of a foreign exchange speculation
D
of a foreign exchange arbitrage

Question 120Single Answer

In which terms a unit of SDR was originally denominated ?

A
The world marked value of US Dollar
B
The gold value equivalent of one US Dollar
C
The proud- Sterling
D
The german mark

Question 121Single Answer

Which of the following is an adverse effect of Euro Currency Market ?

A
International Capital Market
B
Decrease in World’s g Nominal Money Supply
C
Integration of International Capital Markets
D
Meeting BOP Deficit

Question 122Single Answer

Employment Guarantee Scheme was first introduced in :

A
Gujarat
B
Madhya Pradesh
C
Maharashtra
D
Tamil Naidu

Question 123Single Answer

According to Weber’s Theory of Location the important factors influencing location are
1. Transport Cost 2. Land Cost
3. Labour Cost 4. Innovation Cost
Codes :

A
1 & 2
B
2 & 3
C
1 & 3
D
1 & 4

Question 124Single Answer

Given Below are two Statements one labelled as Reason (R) :
Assertion (A) : India’s public sector helped in the development of a sound industrial base
Reason (R) :public Sector is under state control The role of state in formulating appropriate policies and providing financial and other support has helped the public sector

A
(A) is correct but (R) is wrong
B
Both (A) & (R) are correct
C
(A) is wrong but (R) is correct
D
Both (A) and (R) are wrong

Question 125Single Answer

Match ‘labur force ‘ with the appropriate item from amongst the following :

A
Work force Recovery
B
All educated Recession
C
Employed+Unemployed Depression
D
All rural workers Expansion

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