28/06/2016

CollegeLecturerExamEconomicsI

RajasthanPublicServiceCommission2016
Paper:EconomicsI

Ques:150
Time:3Hours

Ques#:1
Whatismeantbyexpansionindemand?
1) Shiftindemandcurve
2) Shiftinsupplycurve
3) Movementalongthedemandcurve
4) Increaseinincome

?
1)

2)

3)

4)

Ques#:2
WhohasgivenanewapproachtothetheoryofdemandintermsofBandwagonEffect,SnobEffectand
VeblenEffect?
1) P.H.Douglas
2) R.Triffin
3) J.T.Wenders
4) HarveyLeibentein

?
1) ..
2) .

3)
..

4)

Ques#:3
TheSnobEffectisrelatedtowhichcommodities?
1) Prestigeous
2) Exclusive
3) Necessities
4) BothPrestigeousandExclusive

?
1)
2)

3)

4)
Ques#:4
Thesituation,inwhichchangeinconsumptionoftwocommoditiesduetochangeintheirrelativeprices,the
totalutilityremainthesame,iscalled:
1) PriceEffect
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2) IncomeEffect
3) SubstitutionEffect
4) VeblenEffect

?
1)

2)

3)
4)

Ques#:5
InSlutsky'ssubstitutioneffect,wheredoesconsumermove?
1) Tohigherindifferencecurve
2) Tolowerindifferencecurve
3) Tosameindifferencecurve
4) Nomovement

?
1)

2)

3)
4)
Ques#:6
Thecrosselasticityofdemandforcomplementarygoodswouldbe:
1) Infinity
2) Positive
3) Zero
4) Negative

?

1)
2)
3)

4)
Ques#:7
Thesituation,inwhichpeopleareunwillingtomakebets,inspiteoftheirhigherwinningprospectswhenthey
betmoremoney,iscalled:
1) TheoryofSecondBest
2) Paretooptimality
3) St.PetersburgParadox
4) Noneofthese

?
1)

2)

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3)

4)

Ques#:8
Whichoneofthefollowingisnotassociatedwithbehaviouraltheory?
1) Firmsaimtoachievesatisfactorylevelofprofit
2) Searchactivitydoesnotinvolveanycost
3) Eachfirmhasanaspirationlevel
4) Ifaspirationlevelisunattainable,firmstartssearchactivity

?
1)

|
2)

3)

4)

|
Ques#:9
Whichoneofthefollowingistheformulaofelasticityoffactorsubstitution?
1)

2)

3)

4)

1)
2)
3)
4)

Ques#:10
Followingaretheeconomiesofscale:(1)Technicaleconomies(2)Laboureconomies(3)Economiesof
Concentration(4)Managerialeconomies.Whichoftheseareinternaleconomies?
1) 1&2
2) 3&4
3) 2&3
4) 1,2&4

(1)
(2)
(3)

(4)
|
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?
1) 1&2
2) 3&4
3) 2&3
4) 1,2&4
Ques#:11
Pain,fatigue,sacrifice,monotonyfeltbythefactorsofproductionduringrenderingtheirservicesiscalled?
1) Realcost
2) Opportunitycost
3) Implicitcost
4) Privatecost

,,

1)
2)
3)
4)
Ques#:12
Whohasclassifiedeconomiesofscaleintointernalandexternaleconomies?
1) Pigou
2) Keynes
3) Marshall
4) Pareto

?
1)
2)

3)

4)

Ques#:13
WhatisthevalueofelasticityofsubstitutionbetweentwofactorsforcobbDouglasproductionfunction?
1)
2) 1
3) 0
4) 1

1)
2) 1
3) 0
4) 1
Ques#:14
whichoneofthefollowingstatementisnotcorrectforCESfunction?
1) TheCESfunctionconsistoffourvariables
2) TheCESfunctionishomogenousofdegreeone
3) TheCESfunctioncanbeextendedtomorethantwoinputs
4) TheCESfunctioncoversconstant,increasinganddecreasingreturnstoscale
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(CES)

?
1)

|
2)

3)

4)
,

|
Ques#:15
WhichoneisincorrectforNashequilibrium?
1) Therearemorethantwoplayers.
2) Eachplayeradoptshisbeststrategy
3) Noplayerhasanincentivetodepartfromtheequilibrium.
4) Eachplayerplaysindependently

1)
()

2)

3)

4)

|
Ques#:16
Howanincreaseinthefixedcostofafirm,underperfectcompetition,wouldaffectpriceandoutputinthe
shortrun?
1) Outputrises,pricefalls
2) Outputfalls,pricerises
3) Outputandpricebothremainsame
4) Outputremainssame,pricerises

?
1)

2) ,

3)

4)
,

Ques#:17
Whenthemonopolistisabletoselleachseparateunitofoutputatadifferentprice,itiscalledtheprice
discriminationof:
1) Firstdegree
2) Seconddegree
3) Thirddegree
4) Noneofthese

,_____
1)

2)

3)

4)

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Ques#:18
Whenaverylargeordominantfirmestablishesitsleadershipbyfollowingaggressivepolicies,itiscalled
_____.
1) Barometricpriceleadership
2) Aggressivepriceleadership
3) Demonstrativepriceleadership
4) Exploitativepriceleadership

,
_____

|
1)

2)

3)

4)

Ques#:19
ThemarginalconditionforaParetooptimalcompositionofoutputrequiresthat_____betweenanytwo
commoditiesbeequaltothe_____betweenthesametwocommodities.
1) MRTS,MRTS
2) MRS,MRPT
3) MRTS,MRST
4) MRTS,MRS

_____

______
|

1)MRTS,MRTS
2)MRS,MRPT
3)MRTS,MRST
4)MRTS,MRS
Ques#:20
Thefinalmarginalconditionforawelfaremaximumisbasedon:
1) Marginalproduct
2) MarginalrateofTechnicalSubstitution
3) OptimumConditionsofproductsubstitution
4) Optimumincome

?
1)
2)

3)

4)

Ques#:21
Externalitiesarealsoknownas:
1) Spillovers
2) Neighbourhoodeffects
3) Untradedinterdependency
4) Allofthese
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?
1)

2)

3)

4)

Ques#:22
Thetheoryofgameswasdevelopedby:
1) BertrandandMorgenstern
2) NeumannandMorgenstern
3) CournotandNeumann
4) Neumannalone

?
1)

2)

3)

4)

Ques#:23
Whichofthefollowingisthecompensationcriteria?
1) TheKaldorHickscriterion
2) Thescitovskycriterion
3) Thelittlecriterion
4) Allofthese

?
1)

2)

3)

4)

Ques#:24
WhilecriticizingSocialWelfareFunction,Robertsoncalledit:
1) Vast,partlycolouredMathematicalballon
2) Right,notveryuseful
3) Completelygeneral
4) Arbitraryandimaginary

:
1)

,
2) ,

3)

4)

Ques#:25

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Newwelfareeconomicsisalsoknownas:
1) Walarasiancriterion
2) Thecompensationcriterion
3) Socialwelfarecriterion
4) Marshalliancriterion

:
1)

2)

3)

4)

Ques#:26
ThetheoryofSecondBestappliesbecausealltheParetianoptimalityconditionsare_____.
1) fulfilled
2) notfulfilled
3) hypothetical
4) againstwelfare

_____

1)

2)

3)

4)

Ques#:27
Addingupproblemisassociatedwith:
1) Euler'sTheorem
2) Arrow'sTheorem
3) CobbDouglasTheorem
4) CoaseTheorem

(
)
:
1)

2)

3)

4)

Ques#:28
Bywhichmethod,monopolypowerismeasured?
1) ElasticityofDemand
2) CrossElasticityofDemand
3) Learner'sMethod
4) Allofthese

?
1)

2)

3)

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4)

Ques#:29
Whatisbilateralmonopoly?
1) Singlesellerandtwobuyers
2) Singlesellerandsinglebuyer
3) Twosellersandsinglebuyer
4) Twosellersandtwobuyers

?
1)

2)

3)

4)

Ques#:30
NNPatfactorcostisequalto:
1)
2)
3)
4)

1)

2)

3)
+

4)

+
Ques#:31
Whichoneofthefollowingisnotthecomponentofregrettablecost?
1) Expenditureonpolice
2) Expenditureonjudiciary
3) Expenditureondefence
4) Expenditureonentertainment

?
1)

2)

3)

4)

Ques#:32
WhichoneofthefollowingaccountisnotincludedinclassifiedaccountsofNationalIncomeaccounting?
1) Productionaccount
2) Consumptionaccount
3) Savingaccount
4) ForeignTransactionaccount
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?
1)
2)
3)

4)

Ques#:33
NationalIncomemeasurementisincompleteasitdoesnotinclude:
1) Transferpayments
2) Nonmarketablegoodsandservices
3) Capitalgains
4) Allofthese

|
1)

2)

3)

4)

Ques#:34
WhichoneisnotassociatedwithKeynes'sAbsoluteIncomeHypothesis?
1) APCincreasesasincomerises.
2) Itisbasedonknowledgeandhumannature
3) Alsocalledpsychologicallawofconsumption
4) MPCisgreaterthanzerobutlessthanone.

?
1)

|
2)
|

3)

4)

Ques#:35
WhichisincorrectregardingDuesenberry'sRelativeIncomeHypothesis?
1) Peopleimitatetheirrichneighbours
2) ArichpersonwillhavehigherAPC.
3) Consumer'spreferencesareinterdependent.
4) Differencesinrelativeincomesdetermineconsumptionexpenditure.

1)

|
2)

|
3)

4)

|
Ques#:36
WhichisnotlinkedwithFriedman'sPermanentIncomeHypothesis?
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1) TransitoryIncome
2) TransitoryConsumption
3) RelativeIncome
4) PermanentIncome

?
1)

2)

3)

4)
Ques#:37
Asperlifetimetheory,theaverageincomeofanindividualis_____atthebeginningofhislife.
1) RelativelyLow
2) RelativelyHigh
3) AbsolutelyLow
4) AbsolutelyHigh

____
|

1)

2)

3)

4)

Ques#:38
Inclassicaltheoryofoutputandemployment,theindependenceofrealvariables,fromchangesinmoney
supplyandnominalvariables,iscalled:
1) NonNeutralityofmoney
2) Sayslawofmarket
3) Classicaldichotomy
4) Noneofthese

:
1)

2)

3) ()
4)

Ques#:39
AccordingtoFriedmanandPhelps,whennaturalrateofunemploymentexistsinthelongrun,thePhilips
curvebecomes:
1) Kinkedshape
2) Verticalstraightline
3) Horizontal
4) Slopesdownwardfromlefttoright

:
1)

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2)

3)

4)

Ques#:40
ThemodifiedPhilipscurveissuggestedby:
1) Tobin
2) Boumol
3) JosephStiglitz
4) OliverBlanchard

1)
2)

3)

4)
Ques#:41
Tobinassumesthatexpectedvalueofcapitalgainsorlossesfromholdinginterestbearingassetsisalways:
1) Positive
2) Negative
3) Zero
4) Infinity

1)
2)
3)

4)
Ques#:42
Autonomousinvestmentdependsupon:
1) Populationgrowth
2) Technicalprogress
3) BothPopulationgrowthandTechnicalprogress
4) Noneofthese

?
1)

2)

3)

4)

Ques#:43

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Theacceleratormodelisbestappliedincaseof:
1) inventoryinvestment
2) businessfixedinvestment
3) residentialinvestment
4) capitalmarketinvestment

:
1)
2)
3)

4)

Ques#:44
IftheqratioinTobin'sTheoryisgreaterthanone,itimpliesthat:
1) Stockmarketplaceshighervalueonfirm'sinstalledcapitalthanreplacementcost.
2) Stockmarketvaluesfirm'scapitalassetslessthanitsreplacementcost
3) Highcurrentprofitsearnedfrominstalledcapital
4) Highprofitsinfutureoninstalledcapital

1)

2)

3)

4)

Ques#:45
Highpoweredmoneycanbewritteninequationformas:
1) H=Cp+R
2) H=Cp+D
3)
4)

1)H=Cp+R
2)H=Cp+D
3)
4)
Ques#:46
WhichisnotincludedinmoneysupplybyReserveBankofIndia(RBI)?
1) CurrencywithPublic
2) AlldepositsofCommercialbanks
3) OtherdepositswithRBI
4) Postofficesavingdeposits

1)

2)

3)

4)

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Ques#:47
WhichisnotassociatedwithISandLMcurves?
1) Productivity
2) Equity
3) Thrift
4) Liquiditypreference

ISLM

?
1)
2)

3)

4)
Ques#:48
"ForeverythreepercentagepointsgrowthinrealGNP,unemploymentratedeclinesbyonepercentagepoint
everyyear."Whatisnameofthislaw?
1) Okun'sLaw
2) Hindurateofgrowth
3) LucasModel
4) Keynesiantheoryofemployment

"(GNP)

|"
?
1)

2)

3)

4)

Ques#:49
Whichtypeoftimelag,inmonetarypolicy,isgivenbyFriedman.
1) TheRecognitionlag
2) Theadministrativelag
3) Theoperationlag
4) Allofthese

?
1)
2)
3)
4)

Ques#:50
Whichistrueregardingeffectivenessofmonetaryandfiscalpolicy?(A)InKeynesianrange,fiscalpolicyis
veryeffective,(B)Inclassicalrange,fiscalpolicyisnoteffective(C)Monetarypolicyistotallyineffectivein
Keynesianrange.Whichstatementistrue?
1) OnlyAiscorrect
2) OnlyCiscorrect
3) A,B,Carecorrect
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4) A&Barecorrect

?(A)

(B)

(C)

|
?

1)
A
|
2)
C
|

3) A,B,C
|
4) AB
|
Ques#:51
WhichisnotassociatedwithHicks'theoryofbusinesscycles:
1) Explosivecycles
2) Constantrateofautonomousinvestment
3) Ceiling
4) Floor

?
1)
2)

3) ()

4)
()
Ques#:52
Kaldorhasusedwhichtypeofsavingandinvestmentfunction:(A)Exante(B)Expost(C)Arbitrary(D)
Shadow
1) A,B,Carecorrect
2) AandBarecorrect
3) CandDarecorrect
4) BandCarecorrect

?(A)
(B)
(C)

(D)
1) A,B,C
|
2) AB
|
3) CD
|
4) BC
|
Ques#:53

1)
2)

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

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

1)
2)
3)
4)

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

CollegeLecturerExamEconomicsI

Ques#:54
WhatisintertemporalsubstitutioninNeoclassicalmacroeconomics?
1) Substitutionoflabourforcapital
2) substitutionofconsumergoodsforcapitalgoods
3) Substitutionofcurrentleisureforfutureleisure
4) Substitutionofmoneyforbonds

?
1)

2)

3)

4)

Ques#:55
WhoenvolvedRealBusinessCycleTheory?
1) CambridgeSchool
2) AmericanNeoClassicalSchool
3) MathematicalSchool
4) ClassicalSchool

?
1)

2)
3)

4)

Ques#:56
AccordingtoRealBusinessCycletheory,theprimarycauseofbusinesscycleis:(A)ChangesinTechnology
(B)Realinterestrate(C)NeutralityofMoney(D)Intertemporalsubstitutionoflabour.Choosethecorrect
answer:
1) OnlyAiscorrect
2) OnlyCiscorrect
3) A,B,C,Dallarecorrect
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4) OnlyAandBarecorrect

:(A)

(B)

(C)
:
(D)
1)
A
|
2)
C
|

3) A,B,C,D
|
4)
AB
|
Ques#:57
WhichoneofthefollowingeconomistsisnotNewKeynesianeconomist?
1) JosephStiglitz
2) DavidRomer
3) RobertGordon
4) Samuelson

?
1)

2)

3)

4)

Ques#:58
AccordingtoNewKeynsianmacroeconomics,pricesarestickyinshortterm,because:
1) Adjustingpricesiscostly
2) Adjustingpricesisnotpossible
3) Thisishypotheticalsituation
4) Both,AdjustingpricesiscostlyandAdjustingpricesisnotpossible,arecorrect

1)

2)

3)
|

4)

Ques#:59

1)
2)
3)
4)

80and20
20and80
40and160
160and40

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1)

8020

2)

2080

3)

40160

4)

16040

Ques#:60
TheoutcomeofGreenaccountingmethodofGDPis:
1) SEEA(systemofEnvironmentalEconomicAccounting)
2) EDP(EnvironmentalDomesticProduct)
3) NNP(NetNaturalProduct)
4) NI(NaturalIncome)

?
1) SEEA(

)
2) EDP(

)
3) NNP(
)

4) NI(
)
Ques#:61
WhopropoundedRigidMoneyWageandFlexiblePriceModel?
1) J.M.Keynes
2) J.B.Say
3) Marshall
4) Friedman

1)
..
2)
..
3)

4)

Ques#:62
Whichisnotthesubjectivefactorswhichpromptspeopletosavesomepartoftheirincome?
1) Liquidity
2) RateofInterest
3) FinancialPrudence
4) Enterprise

?
1)
2)

3)

4)

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Ques#:63
"Theunderdevelopedcountriesshouldnotacceptourinheritedeconomytheoryuncriticallybutremoulditto
fittheirownproblemsandinterests."Whosaidthis?
1) J.A.Schumpeter
2) RagnarNurkse
3) G.Myrdal
4) U.Hicks

"

|"
?

1)
..

2)

3) .

4) .

Ques#:64
WhatisthethemeofUNDP'sHumanDevelopmentReport2015.
1) WorkforHumandevelopment
2) Towardshumanprogress
3) TheRealwealthofNations
4) RiseofSouth

(UNDP)
(HDR)2015
?

1)

2)

3)
4)
Ques#:65
AsperUNDP'sHumanDevelopmentReport,2015whatistherankofIndiainGenderDevelopmentIndex
(GDI)?
1) 128
2) 130
3) 135
4) 136

2015

(GDI)

1) 128
2) 130
3) 135
4) 136
Ques#:66
WhichisnotincludedinthedeprivationindicatorsofHumanPoveryIndexI(HPII)?
1) Deprivationmeasuredbypercentageofpeoplenotusingimprovedwatersource
2) Adultliteracy
3) Probabilityatbirthofnotsurvivingtoage60
4) Percentageofchildrenunderfivewhoareunderweight

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(HPI)I

1)

2)

3)
60

4)

Ques#:67
WhohasgiventheHumanCapabilityConcept?
1) Lucas
2) AmartyaSen
3) Samuelson
4) Kuznet

1)

2)

3)

4)

Ques#:68

1)
2)
3)
4)

(A)3,(B)2,(C)1
(A)1,(B)2,(C)3
(A)2,(B)3,(C)1
(A)1,(B)3,(C)2

1)
2)
3)
4)

(A)3,(B)2,(C)1
(A)1,(B)2,(C)3
(A)2,(B)3,(C)1
(A)1,(B)3,(C)2

Ques#:69
"Meetingtheneedsofthepresentgenerationwithoutcompromissingtheneedsoffuturegeneration."Who
hasgiventhisdefinitionofsustainabledevelopment?
1) KregLindberg
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2) UNDP(UnitedNationsDevelopmentProgramme)
3) BrundtlandReport
4) ChalesD.Kolstand

"

|"

?
1)

2)

3)

4)
.

Ques#:70
Thenotionthatnaturalcapitalstockshouldnotdecreaseiscalled:
1) Strongsustainability
2) Weaksustainability
3) Neutralsustainability
4) Noneofthese

1)

2)

3)

4)

Ques#:71
Whatisthecauseoftradeoffbetweengrowthanddistributioninunderdevelopedeconomies.
1) Structuralchanges
2) Coexistenceoftraditional&modernsector
3) Uneducatedandunskilledpopulation
4) Allofthese

?
1)

2)

3)

4)

Ques#:72
Lewismodelofdevelopmentisnotassociatedwith:
1) disguisedunemploymentinagriculture
2) existenceofmodernsector
3) limitedLaboursupply
4) subsistenceagriculture

1)

2)

3)

4)

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Ques#:73
IfthethirdphaseofFeiandRanismodel:
1) Farmworkersproducelessthantheinstitutionalwagestheyget
2) Farmworkersproducemorethantheinstitutionalwagestheyget
3) Migrationofworkersfromagriculturetoindustrialsectorcontinues.
4) Agriculturesectorbecomesinsignificant

:
1)

2)

|
3)

|
4)

Ques#:74
WhatdoesHarrodcallto"highestattainablegrowthrate."
1) NaturalRateofGrowth
2) GoldenrateofGrowth
3) IncrementalRateofGrowth
4) FeasibleRateofgrowth

"

"
?
1)

2)

3)

4)

Ques#:75
Domer'sIncomeEffectofInvestmentmaybeexpressedas:
1)
2)
3)
4)

:
1)
2)
3)
4)

Ques#:76
WhichoneistheGoldenAgeEquilibriumofHarrod'smodel?
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1) Gy=Gs=Gc
2) Gy=GI=Gs
3) Gy=GK=GI
4) Gy=Gw=Gn

1)Gy=Gs=Gc
2)Gy=GI=Gs
3)Gy=GK=GI
4)Gy=Gw=Gn
Ques#:77
WhichoneisexogenouslydeterminedfactorinSolow'smodel?
1) Labourstock
2) Technology
3) Capitalstock
4) PopulationGrowthrate

?
1)
2)

3)

4)

Ques#:78
InKaldor'smodel,technicalprogressdependsupon:
1) Rateofcapitalaccumulation
2) Rateofgrowthinincome
3) Rateofgrowthofsavings
4) Profits

?
1)

2)

3)

4)
Ques#:79
Whichoneisthesteadygrowthrateequationofendogenousgrowththeory?
1)
2)
3)
4)

?
1)
2)
3)
4)
Ques#:80
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InLucasmodelofgrowth,whichisthemajordeterminantofgrowth?
1) InvestmentinhumanCapital
2) InvestmentinCapital
3) InvestmentinInfrastructure
4) InvestmentinRealestate

1)

2)

3)

4)

Ques#:81
Thescopeof'LearningbyDoing'modelismore:
1) Whenlevelofcapitalinputisgreater
2) Whenleveloflabourinputisgreater
3) Whenleveloflabourandcapitalareequal
4) Noneofthese

'

'

:
1)

|
2) |

3)

|
4)

Ques#:82
Ingoldenagepath,allvariableschangeata:
1) decreasingproportionaterate
2) increasingproportionaterate
3) fluctuatingrate
4) constantproportionaterate

1)

2)

3)
4)

Ques#:83
NeutralTechnicalchangemeans:(A)CapitalSaving(B)LabourSaving(C)noCapitalSaving(D)NoLabour
SavingWhichiscorrect:
1) C&Darecorrect
2) A&Barecorrect
3) OnlyCiscorrect
4) OnlyDiscorrect

:(A)

(D)
(B)(C)

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1) CD
|
2) AB
|
3)
C
|

4)
D
|
Ques#:84
Disembodiedtechnicalprogressmeans:
1) moreoutputwithmoreinputs
2) moreoutputwithlessinputs
3) moreoutputwithsameinputs
4) moreoutputwithnewtechnology

1)

2)

3)

4)
Ques#:85
Whichisnottheprincipleofenvironmentregulation?
1) Polluterpaysprinciple(PPP)
2) Precautionaryprinciple(PP)
3) Compulsoryprinciple(CP)
4) Userpaysprinciple(UP)

?
1)
(PPP)

2)
(PP)
3)

(CP)

4)

(UP)

Ques#:86
WhatismeantbyPigoviantax?
1) Taxonwastageofresources
2) Taxonemissionofpollutants
3) Taxonextrauseofwater
4) Taxonoverconsumptionofresources

?
1)

2)

3)

4)

Ques#:87
Whichonedoesnotspecifyneedforenvironmentalvaluation?
1) EnvironmentalLitigation
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2) Environmentalconservation
3) EnvironmentalDisputeResolution
4) EvaluatingproposedEnvironmentalProgrammes

1)

2)

3)

4)

Ques#:88
Whichoneisnotcontingentvaluationmethod?
1) TradeoffGameMethod
2) CostlessChoiceMethod
3) DelphiMethod
4) TravelCostMethod

1)

2)
3)

4)
Ques#:89
Whichschoolofthoughttalkaboutconservationandimprovementinnaturalcapitalassetsforsustainable
development.
1) LondonschoolofThought
2) Daly'soperationalPrinciples
3) HartwickSolowRule
4) SafeMinimumStandards

1)
2)
3)

4)

Ques#:90
Whichmodelmeasuresweaksustainabilityasameasureofsustainabledevelopment?
1) TheIndexofSustainableEconomicWelfare(ISEW)
2) PearceAtKinsonMeasure(PAM)
3) EnvironmentalSpaceMeasure(ESM)
4) EcologicalFootprintsMeasure(EFM)

?
1)

(ISEW)

2)

(PAM)
3)
(ESM)
4)

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(EFM)
Ques#:91
Sustainabledevelopmentprocessthroughformalinformaleducationprogrammeaforestation,management
ofparksiscalled:
1) Removingsubsidy
2) Marketbasedapproaches
3) Publicpartnership
4) Economicincentives

,,

?
1)

2)
3)

4)

Ques#:92
Deriveddemandmeans:
1) Moredemandbecauseofincreaseinincome.
2) Moredemandbecauseofmorewealth
3) Increaseindemandforgoods
4) Demandforfactorsofproduction

:
1)

2)

3)

4)

Ques#:93
Engelcurveshowsthequantitiesofagoodwhichtheconsumerwillpurchaseatvariouslevelsof:
1) Prices
2) Saving
3) Income
4) Preferences

:
1)

2)

3)

4)

Ques#:94
IncaseofGiffengoods:
1) Thepositiveincomeeffectisstrongerthannegativesubstitutioneffect
2) Thenegativeincomeeffectisstrongerthanpositivesubstitutioneffect
3) Thepositiveincomeeffectisstrongerthanpositivesubstitutioneffect
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4) Thepositiveincomeeffectisequaltonegativesubstitutioneffect

:

1)

2)

3)

4)

Ques#:95
InSlutsky'ssubstitutioneffect,incomeisreducedorincreasedby:
1) Costdifference
2) CompensatingVariation
3) EquivalentVariation
4) Compensatingdifference

:
1)
2)

3)

4)

Ques#:96
TheBandwagoneffectmakesthemarketdemandcurveforthecommodity:
1) Flatterormoreelastic
2) Steeperorlesselastic
3) Perfectlyelastic
4) Perfectlyinelastic

:
1)
2)
3)

4)

Ques#:97
MarkowitzHypothesisrelatesthemarginalutilityofincometochangesinthelevelof:
1) Absoluteincome
2) Presentincome
3) RelativeIncome
4) Pastincome

:
1)

2)

3)

4)

Ques#:98
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Thefirm'sshortrunsupplycurveofacommodityinperfectcompetitionis:
1) Risingportionoffirm'sMCcurvebelowAVCcurve
2) Risingportionoffirm'sMCcurveaboveAVCcurve
3) RisingportionofAveragetotalcostcurve
4) RisingportionofAveragevariablecostcurve

1) MCAVC

2) MCAVC

3)

4)

Ques#:99
Thecombinedconsumer'sandproducer'ssurplusisatamaximuminwhichofthefollowingmarketsituation?
1) Perfectcompetition
2) Monopoly
3) Monopolisticcompetition
4) Oligopoly

1)

2)

3)
4)
Ques#:100
Empiricalstudiesmadebyeconomistsfindtheshapeoflongrunaveragecostcurveduetotechnological
progressthattakesovertimetobe:
1) Risingupward
2) Ushaped
3) Lshaped
4) Saucertypeshape

:
1)

2) U

3) L

4)

Ques#:101
Inagametheory,asituationinwhichonefirmcangainonlywhatanotherfirmloosesiscalleda:
1) Cooperativenonconstantsumgame
2) Noncooperativenonconstantsumgame
3) Prisioner'sdilemma
4) Zerosumgame

1)

2)

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3)

4)

Ques#:102
Whichofthefollowingarepartsofeverygametheorymodel:A.StrategiesB.PlayersC.ConstraintsD.Pay
offsSelectthecorrectanswerusingthecodesgivenbelow:
1) A,BandC
2) B,CandD
3) A,BandD
4) Conly

:A.

B.C.D.

:
1) A,BC
2) B,CD
3) A,BD
4)
C
Ques#:103
Blisspointiswhere:
1) Theutilityfrontiercurveistangenttothewelfarecurve
2) Indifferencecurveistangenttopriceline
3) Isoquantcurveistangenttoisocostline
4) Tangencyofvariousindifferencecurveoftwoindividuals

:
1)

2)

3)

4)

Ques#:104
MainobstaclestoattainingParetooptimalityandmaximumsocialwelfareis:
1) Existenceofimperfectcompetition
2) Presenceofexternalities
3) Consumptionofpublicgoods
4) Allofthese

1)

2)

3)

4)

Ques#:105

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1)
2)
3)
4)

Aii,Bi,Civ,Diii
Ai,Bii,Ciii,Div
Aiii,Bii,Ci,Div
Aiv,Bi,Ciii,Dii

1)
2)
3)
4)

Aii,Bi,Civ,Diii
Ai,Bii,Ciii,Div
Aiii,Bii,Ci,Div
Aiv,Bi,Ciii,Dii

Ques#:106
TheincorrectstatementofHighPoweredMoneyis:
1) HighPoweredmoneyisbasisofexpansionofbankdepositandmoneysupply
2) Itiscomposedofcurrencyheldbypublicandcommercialbankreserves
3) Thedemandforhighpoweredmoneyisrelatedinverslytomoneysupply
4) Anincreaseinsupplyofhighpoweredmoneyleadstodecreaseinmoneysupply

1)

2)

|
3)

4)

Ques#:107
Themoneymultipliershowstherelationshipbetween:
1) CurrencywithPublicandreserveswithBanks
2) Excessreservesandtotalreserves
3) Highpoweredmoneyandmoneysupply
4) Requiredreservesandtotalreserves

1)

2)

3)

4)

Ques#:108
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Assertion(A):HighPoweredmoneyiscurrencyheldbypublicandthecommercialbankreserves.Reason(R)
:IfdemandofHighpoweredmoneyremainsconstant,anincreaseinitssupplysetsmultiplierintooperation
andcausesresultantincreaseinsupplyofmoney
1) BothAandRareindividuallytrueandRiscorrectexplanationofA
2) BothAandRareindividuallytrueandRisnotcorrectexplanationofA
3) AistruebutRisfalse
4) AisfalsebutRistrue

(A):

|(R)

|
1) AR
'R','A'

2) AR
'R','A'

3) A

R
4) A

R
Ques#:109

1)
2)
3)
4)

Aii,Bi,Civ,Diii
Ai,Bii,Ciii,Div
Aii,Biii,Ci,Div
Aiv,Biii,Cii,Di

1)
2)
3)
4)

Aii,Bi,Civ,Diii
Ai,Bii,Ciii,Div
Aii,Biii,Ci,Div
Aiv,Biii,Cii,Di

Ques#:110
Insimpleclassicalmodelontheassumptionofflexiblemoneywagetheaggregatesupplycurveatfull
employmentlevelofincomeis:
1) Perfectlyinelastic
2) Perfectlyelastic
3) Relativelyelastic
4) Relativelyinelastic

:
1)

2)

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3)

4)

Ques#:111
ThetwoimportantassumptiononwhichPigoueffectisbasedare:
1) FlexiblewagesandPricelevel
2) Priceexpectationsareconsidered
3) Stablestockofmoney
4) Itisadynamicanalysis

1)

2)

3)

4)

Ques#:112

1)
2)
3)
4)

Cyclelesspath
Constantamplitudecycle
Explosivecycleorantidamped
Cyclelessexplosiveupwardpath

1)

2)

3)
4)
Ques#:113
AccordingtoDussenberryastheincomedecreases,theconsumptiondoesnotdecreasewithsamerateis
refferedas:
1) RatchetEffect
2) VeblenEffect
3) DemonstrationEffect
4) SnobEffect

1)

2)

3)

4)

Ques#:114
Assertion(A):Whennationalincomeincreasestheneconomicwelfarealsoincreases.Reason(R):Economic
welfarenotonlydependsonquantityofincomebutalsodependsonthewayincomeisearnedandthewayitis
_

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spend.
1) BothAandRareindividuallytrueandRiscorrectexplanationofA
2) BothAandRareindividuallytrueandRisnotcorrectexplanationofA
3) AistruebutRisfalse
4) AisfalsebutRistrue

(A):

|(R):

|
1) AR
'R','A'

2) AR
'R','A'

3) A

R
4) A

R
Ques#:115
TheindicatorstoconstructPhysicalQualityoflifeIndexbyDMorrisare:A.LifeexpectancyindicatorB.
InfantMartalityindicatorC.BasicLiteracyindicatorD.Standardoflivingindicator.Selectthecorrect
answerbyusingthecodesgivenbelows:Codes:
1) A,BandC
2) B,CandD
3) A,BandD
4) BandD

:A.

B.

C.

D.

:
1) A,BC
2) B,CD
3) A,BD
4) BD

Ques#:116
Toavoidvaluejudgements,theeconomistandUNorganisationusewhichofthefollowingmeasureof
economicdevelopment:
1) Lifeexpectancyatbirth
2) Caloriesupplyperhead
3) GNPpercapita
4) Literacysignifyingprimaryschoolenrolmentaspercentofpopulation

.
.

:
1)

2)

3)

4)

Ques#:117
InvertedUshapedHypothesisofincomedistributiongivenbyProf.Kuznetsstatesthatinearlystagesof
economicgrowth:
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1) relativeincomeinequalitydecreases,stabilisesfortimeandthenincreasesinlaterstages
2) relativeincomeinequalityincreases,stabilisesfortimeandthendeclineinlaterstages
3) relativeincomeinequalitydecreasesandthenstabilises
4) relativeincomeinequalityincreasesandthendecreasesinlaterstage

:
1)

2)

3)

4)

Ques#:118
IfthevalueofGinniCoefficientisonethenthereis:
1) Completeinequalityofincome
2) Completeequalityofincome
3) Greaterinequalityofincome
4) Greaterequalityofincome

1)

2)

3)

4)

Ques#:119
Agraphicalrepresentationshowingthedegreeofinequalityofincomeiscalledas:
1) LafferCurve
2) LearningCurve
3) LorenzCurve
4) EngelCurve

:
1)

2)

3)

4)

Ques#:120
Thenumericalvalueofrelationbetweenanincreaseinincomeandresultingincreaseininvestmentiscalledas
:
1) Ginnicoefficient
2) Multiplier
3) GDPdeflator
4) Accelerator

1)

2)

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3) ...
4)

Ques#:121
TheincorrectassumptionofFeiandRanistheoryofeconomicdevelopmentis:
1) Landisfixedinsupply
2) Populationgrowthistakenasexogenousphenomenon
3) Workersineithersectorconsumeonlyagriculturalproducts
4) Agricultureactivityischaracterisedbyincreasingreturnstoscale

:
1)

2)

3)

4)

Ques#:122
GreenFinancemostlyreferstofinancialinvestmentsflowingtowards:
1) Agriculturaldevelopmentprojects
2) Industrialdevelopmentprojects
3) Dairydevelopmentprojects
4) Sustainabledevelopmentprojects

:
1)

2)

3)

4)

Ques#:123
InJoanRobinson'smodelofcapitalaccumulation"agoldenage"ischaracterizedbywhichofthefollowing
features:A.TechnicalProgressisneutralB.PopulationgrowsatsteadyrateC.Therateofprofittendstobe
variableD.LevelofrealwagesriseswithoutputperMAN.Selectthecorrectanswerusingthecodesgiven
below:
1) A,BandC
2) B,CandD
3) A,BandD
4) OnlyC

"

A.

"

B.

C.

D.

:
1) A,BC
2) B,CD
3) A,BD
4)
C
Ques#:124
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Solowbuildsamodeloflongrungrowthonthebasisofwhichofthefollowingassumptions:A.Labourand
CapitalaresubsitutableforeachotherB.ThereisneutraltechnicalprogressC.PricesandwagesarerigidD.
ProductionfunctionishomoqenousofthefirstdegreeSelectthecorrectanswerusingthecodesgivenbelow:
1) A,BandD
2) B,CandD
3) CandD
4) OnlyD

:A.

B.
C.

D.

:
1) A,BD
2) B,CD
3) CD
4)
D

Ques#:125
Kaldorpostulatesthreefunctionsfortheoperationofmodelofgrowthinconstantworkingpopulationthey
are:A.ConsumptionfunctionB.TechnicalprogressfunctionC.SavingfunctionD.InvestmentfunctionSelect
thecorrectanswerusingthecodesgivenbelow:
1) A,BandC
2) B,CandD
3) A,CandD
4) AandB

:A.B.C.D.

:
1) A,BC
2) B,CD
3) A,CD
4) AB
Ques#:126
AccordingtoHicks,atechincalchangeisneutralif:
1) Theratioofsavingandinvestmentremainsunchangedatconstantmarginalpropensitytosave
2) Theratioofmarginalproductofcapitaltothatoflabourremainsunchangedataconstantcapitallabourratio
3) Theratioofinputtooutputremainsconstant
4) Theproductivityofcapitalisequaltoproductivityoflabour

1)

2)

3)

4)

Ques#:127
WhichisincorrectstatementofimplicationsofHarrodneutralityis:
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1) Itisapplicabletodynamicsituation
2) Itisbasedonrelationshipbetweencapitalandoutputwithnodirectreferencetolabour
3) Theshareofcapitalandlabourinnationaloutputarevariableifthecapitaloutputratioandrateofprofitare
constant
4) Constantcapitaloutputratioimpliesthatcapitalstockandlabourforcegrowatsamerate

:
1)

2)

3)

4)

Ques#:128
TheconceptofGoldenRuleofaccumulationwasgivenby:
1) Kendrick
2) Denison
3) EdmundPhelps
4) Jorgenson

'

'
:
1)

2)

3)

4)

Ques#:129
Theendogenousgrowthmodelsemphasisethatthetechnicalprogressresultfrom:A.RateofinvestmentB.
SizeofthecapitalstockC.StockofhumancapitalD.RateofconsumptionSelectthecorrectanswerusingthe
codesgivenbelow:
1) A,BandD
2) A,BandC
3) B,CandD
4) CandD

A.
B.

C.

D.

:
1) A,BD
2) A,BC
3) B,CD
4) CD
Ques#:130
AccordingtoLucasthefactorwhichplaysacrucialdeterminantingrowthprocessis:
1) Investmentineducation
2) Investmentininfrastructure
3) Investmentinnewmachines
4) Investmentinagriculture
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,
:

1)

2)

3)

4)

Ques#:131
TravelCostmethod(TCM)ismainlyappliedfordetermeningthe:
1) Economicvaluesofsitesthatareusedforrecreations
2) Economicvaluesofsitesthatareusedforminning
3) Economicvaluesoflandusedforagriculture
4) Economicvaluesofsitesusedforindustriesestablishment

(TCM)
,

:
:
1)

2)

3)

4)

Ques#:132
Thefirsteconomisttointroducetheconceptof'learningbydoing'was:
1) KennethJ.Arrow
2) JoanRobinson
3) PaulM.Romer
4) RobertE.Lucas

'

'
:

1)

.
2)

3) .

4)
.

Ques#:133
LearningCurveshows:
1) Declineinaverageinputcostofproductionwithrisingcumulativetotaloutputoffirmovertime
2) Declineintotalinputcostofproductionwithdecliningtotaloutputoffirmovertime
3) Declineinmarginalinputcostofproductionwithriseintotaloutputoffirmovertime
4) Increaseinaverageinputcostofproductionwithrisingcumulativetotaloutputoffirmovertime

:
1)

2)

3)

4)

Ques#:134
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LimitPricingrefersto:
1) Settingofpriceequaltoaveragevariablecost
2) Existingfirmschargingasufficientlylowpricetodiscourageentryofotherfirmsintotheindustry
3) Settingofpriceequaltoaveragefixedcost
4) Existingfirmschargingasufficientlyhighpricetodiscourageentryofotherfirmsintotheindustry

:
1)

2)

3)

4)

Ques#:135
Dominantstrategyis:
1) Theoptimalchoiceofaplayernomatterwhattheopponentdoes.
2) Theoptimalchoiceofaplayerconsideringwhattheopponentdoes
3) Allthefirmsfollowthepricedeterminedbybarometricfirm
4) Priceleadershipbyadominantfirm

1)

2)

,
3)

4)

Ques#:136
'TitforTat'strategyisbestforthe:
1) Zerosumgame
2) Nonzerosumgame
3) Repeatedgames
4) Sequentialgame

'

'
:

1)

2)

3)

4)

Ques#:137
Thefirstandsimplestgeneralequilibriummodelwasintroducedin1874bytheeconomist:
1) VilfredoPareto
2) N.Koldor
3) LeonWalras
4) K.JArrow

1874
:
1)

2) .

3)
4)

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.
.
Ques#:138
TheGDPdeflatoriscalculatedasfollows:
1) (NominalGDP/RealGDP)X100
2) (RealGDP/NominalGDP)X100
3) NominalGDP/RealGDP
4) RealGDP/NominalGDP

...(GDP)

:
1) (.../...)X100
2) (.../...)X100
3) .../...
4) .../...
Ques#:139
Thestatisticalmethodsusedtoavoiddoublecountingincalculationofnationalincomeare:A.Valueadded
methodB.AggregatemethodC.TransactionMethodD.FinalProductmethodSelectthecorrectanswerusing
thecodesgivenbelow:
1) AandB
2) BandC
3) AandD
4) CandD

:
A.

D.

B.C.

:
1) AB
2) BC
3) AD
4) CD
Ques#:140
InordertoderivePersonalincomefromnationalincome,wehavetodeductwhichofthefollowingamounts:
A.CorporateIncomeTaxB.TransferPaymentC.UndistributedcorporateProfitD.SocialSecurity
ContributionSelectthecorrectanswerusingthecodesgivenbelow:
1) A,BandD
2) A,CandD
3) B,CandD
4) BandD

:A.

B.

C.D.

:
1) A,BD
2) A,CD
3) B,CD
4) BD

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Ques#:141
Theshortrunfactorswhichaffectsthemarginalefficiencyofcapitalinaprivateenterpriseeconomyare:
1) Agriculturedevelopment
2) Stateofbusinessconfidence
3) RateofGrowthofpupolation
4) IndustrialDevelopment

:
1)

2)

3)

4)
Ques#:142
W.J.BaumolTheoryofthedemandformoneystatesthattherelationshipbetweentransactiondemandfor
cashandrateofinterestis:
1) Directproportional
2) Linear
3) Direct
4) Inverse

1)

2)

3)

4)
Ques#:143
Tobins'approachtothedemandformoneyassumesthat:
1) Eachinvestorholdonlyoneasset
2) Diversifieshistotalwealthbyputtingpartlyinbondsandpartlyincash
3) TheelementofuncertainityinfuencestheportfoliodecisionsofInvestors
4) Holdingentireincomeinformofcashinvolvesriskofcapitalloss

1)

2)

3)

4)

Ques#:144
Firm'sinvestmentdecisionsdependonthefollowingratio,calledTobin'sqisas:
1) q=marketvalueofinputs/marketvalueofcommodities
2) q=marketvalueofcapitalstock/replacementcostofcapital
3) q=marketvalueofcommodities/marketvalueofinputs
4) q=replacementcostofcapital/marketvalueofcapitalstock

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(Tobin'sq)
:

1) q=

2) q=

3) q=

4) q=

Ques#:145
'HedonicPrice'methodofevaluatingenvironmentalassetsis:
1) UsingLinkagesbetweenvariationsinhousepricesandgeographicalproximitytoanenviornmentasset
2) Usingtravelcosttoestimatevalueofenviornmentalasset
3) Usingshadowpricestoestimatevalueofenvironmentalasset
4) Usingnominalpricestovalueanenvironmentalasset

(Hedonic)
:

1)

2) ,

3) ,

4)

Ques#:146
Upperportionofkinkeddemandcurvewillbe:
1) Inelastic
2) Elastic
3) Perfectlyinelastic
4) Perfectlyelastic

1)

2)

3)

4)

Ques#:147
Multiplierwithouttimelagbetweenthereceiptofincomeanditsdisposalintheformofconsumptionisknown
as:
1) Instantaneousmultiplier
2) Staticmultiplier
3) Comparativestaticmultiplier
4) Dynamicmultiplier

:
1)

2)

3)

4)

Ques#:148

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1)
2)
3)
4)

Explosivecycle
Dampedcycle
Regularcycle
Everincreasingcycle

1)

2)
3)
4)

Ques#:149
WhichofthefollowingisnotaassumptionofMundelFlamingmodel?
1) Taxesandsavingsincreaseswithincome
2) Thebalanceoftradedependsonlyonincomeandtheexchangerate
3) Supplyofdomesticoutputisperfectlyelastic
4) Existingexchangeratesareexpectedtopersistindefinately.

1)

2)

3)

4)

Ques#:150
Whichofthefollowinisnotapropertyofsteadystategrowth?
1) Substitutionbetweencapitalandlabourisnotpossible
2) Labourforcegrowsatexponentialrate
3) Thereisnotechnicalprogress
4) Capitaloutputratioisgiven

?
1)

2)

3)

4)

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