Paper Code No. M-08 Question Booklet No. .. ENTRANCE EXAMINATION- 2020 SET-C Jyh Candidate's Roll Nv Signature of the invigilator ‘Time: 1 HOUR 30 MINUTES Maximum Marks: 100 Instructions to Candidates Do not write your name or put any'other mark of identification anywhere in the OMR. Response Sheet. If ANY MARK OF IDENTIFICATION IS DISCOVERED ANYWHERE IN OMR RESPONSE SHEET, the OMR sheet will be cancelled and will not be evaluated. This Question Booklet contains the cover page and a total of 100 Multiple Choice Questions of 1 mark each. Space for rough work has been provided at the beginning and end. Available space on each page may also be used for rough work. There is negative marking in Multiple Choice Questions. For each wrong answer 0,25 marks will be deducted. USE/POSSESSION OF ELECTRONIC GADGETS LIKE MOBILE PHONE, iPhone, iPad, page ETC. is strictly PROHIBITED. Candidate should check the serial order of questions at the beginning of the test. If any question is found missing in the serial order, it should be immediately brought to the notice of the invigilator. No pages should be torn out from this question booklet. Answer must be marked in the OMR response sheet which is provided separately. OMR Response sheet must be handed over to the invigilator before you leave the seat. ‘The OMR response sheet should not be folder or writ Sheet will not be evaluated, led. The folded or wrinkled OMR/Response Write your Roll Number in the appropriate space (above) and on he OMR Response Sheet. Any other details, if asked for, should be written only in the space provided. There are four options to each question marked A, B, C and D. Select one of the most appropriate option and fill up the corresponding ovalicircle in the OMR Response Sheet provided to you. The correct procedure for filling up the OMR Response Sheet is mentioned below. CORRECT METHOD ©e@O0 WRONG METHOD OS® ODO GOO OFOeO OOO Dooce!1. Terms of trade refers to (a) Ratio of goods traded (b) Export-Import ratio (©) _ Ratio of values of traded (a) Ratio of prices of goods traded 2. The MRTP Act of 1969 has been 2 (@) replaced by Competition Act2002 (ido Staal (b) merged in Industrial Policy Act of 1978 (©) _ replaced by Trade Union (Amendment) Act 2001 (4) _ merged in Industrial Policy Act of 1991 3. The weather forecast says there is a 40% chance of rain today and 30% chance of rain tomorrow. What is the chance of rain on at least one day? @ 65% (b) 58% © 68% @ 12% 4. Given £4, = buoyancy of tax revenue to income, 7 = total tax k revenue and Y = income, the tax buoyancy is expressedas, 1b >, Ee. -AY r @ ) are y b b Ripe @ * @ “Yay “75 5. The transformation curve is derived from the (2) Consumption Curve (b) Utility Possiblity Curve (C) Social Welfare Function (4) Production Contract Curve gn M-08 (SET-c) @)According to A. K. Sen, famines occurred in India because of 6. (@)__ Lack of proper distribution mechanism (b) lack of demand (©) Leckorvansponstion EESIUTITETT Ta (d) Shortage of foodgrains . 7. Suppose that observations are available on the monthly bond prices of 100 companies for five years. What type of data are these? (b) Time Series (a) Cross Sectional (d) Qualitative (c) Panel Geometric mean of 2, 6 and x is equal to 6. What is the value of x? vb 8. i , (b) 18 or wal se (@ 2 () 9 (ad) 3 2 at 9. Who among the following is not associated with the compensation principle of welfare economics? (a) Kaldor (b) Hicks (©) Scitokosky (d) Pareto 10. The value of foreign trade multiplierwill be high under the condition when (a) marginal propensity to save is high (b) marginal propensity to import is high (c) There is increase in exports (d) _ marginal propensity toconsume is low M-08 (SET- o @00 of DD. 14, 3 1 3 Roses — ord aD, a Ces ae ‘When a consumer is in equilibrium, MRSxy is 2.5. Ifthe price of commadity Y is 16, then what will be the price of commodity X2 HP lg 7 (a) 40 (b) 6.4 n= oe :. © 22 (a) (24 eh 8S Which of the conditions support long run equilibrium in monopolisti¢ competition? (a) MR=MC,AR=AC (b) P=MC, AR=AC (©) MR=MC=AR=AC (d) AR=MC=ac Which of the following is not a part of current account? @)__ Dividends received on a foreign investment (b) Purchase of a plane ticket ona foreign airline ©) Shipment of food aid toa poor country (a) Purchase of a foreign bond Let the regression results for the impact of per capita GNP (PGNP) and female literacy rate (FLR) on child mortality rate (CM) be as given below: CM" =0.40PGNP, —0.04FLR} Where starred variables indicate standardized variables.Can we say that, (a) PGNP has lower impact on CM as comapred to FLR (b) FLRhas lower impacton CM as comparedto PGNP (c) Cannot compare the coefficients directly (a) Impact depends on t value PTO. M-08 (SET-C) ©)‘The Cobb-Douglas production function is represented by 15. (a) %=B xh xe” (by ¥%=Bo + BXS Xe" (©) Y= BS XG? +e" (a) %=B x8 By 16. The classical theory of interest postulates that both savings and investments ar function of (a) the level of National income —_(b)__the level of employmentand output (c) monetary and fiscal policy __(d)_ rate of interest 17. Geometric mean of Laspeyre's and Paasche's indices provides (a) Marshall-Edgeworthindex _(b)_ Bowley'sIndex (c) Fisher's Index (d) Kelley'sIndex 18. Which one of the following denotes the power of the Test? [a is probability 0 Type I error and fi is probability of Type error] (a) —o @) B 2 () 1-% (a 1-8 19, Three coins are tossed simultaneously. What is the probability that they will fall heads and | tail? pues NS (a 12 (b) 1/4 = (c) 3/4 (d) 3/8 20, In the equation C= Cp + Cita, where Cis planned consumption expenditure, Ydit autonomous consumption (value of C wit CO is intercept or disposable income, ume, which © disposable income is zero and C1 is marginal propensityto cons ¢ endogenous variable? (b) Cl the following is th (a) CO (d) None of the above (c) CLYd M-08 (SET-C) ©21. are tyot 23. fall 2 Yd is when 24. ch of A discriminating monopolist will charge a higher price in the market in which the price clasity of, (a) Demand is greater (b) Supply is smaller (c) Supply is greater (d) Demand is smaller Harrod-Domar model of growth is based on the concepts of and their equality (a) Population and productivity growth. (b) Investment and average growth rate of income (c) Actual, warranted and natural growth rate. (d) Productivity growth and investment growth Which of the following does not form part of the foreign exchange reserves of India? (a) Gold (6) SDRs SShuscin ; acne (c) Foreign currency assets (d) corporate bodies. Foreign currency and securities held by the banks and Core inflation has been described as (a) Headline inflation — food inflation (b) Headline inflation — food inflation + fuel inflation (©) Headline inflation — fuel inflation (4) Food inflation + Fuel inflation PTO. M-08 (SET-C) Mmzs. 27. 28. 29. 7 If the Durban-Watson d-test statistics is found to be equal to 0, this means y first-order autocorrelation is (a) Perfectly positive (b) Perfectly negative (a) Imperfect negative correlation (c) Zero As per the IS-LM framework, an increase in government expenditure will result in (a) Increase in income and interest rate both Ve y (b) _ Increase in income only decrease in investment and interest rate both () (dd) Assumption of 'No multice and regressor is, » tow (a) High decrease in income and interest rate both ollinearity’ means the correlation between the regresan (©) Zero (d)_ Any of the above If in a year, the gross fiscal deficit of Government is Rs 3,00,000 crores, revent deficit is Rs 1,50,000 crores and interest payments are Rs 80,000 crores, which « the following is the primary deficit of the on 0 (b) Rs 23,000 crores ite government in the year? ee FD 739% (a) Rs 70,000 crores (©) If the Reserve Bank of Rs 2,20,000 crores (d) Rs 1,50,000 crores 07 India wishes to decrease the money supply, it should (b) buy treasury bills in the open market (a) _ riase statutory liquidity ratio (c) _ riase the discount rate (d) lower the reserve requirement (8) M-08 (SET-C)| el 30. 31. 32. ing 33, ption of transitive preferences implies that indifference curves must sum} The ass not cross one another (b) have positive slope ©) (@)_Be'L' shaped (@) be convex to the origin Ifthe market demand curve is D(p) = 100 — Sp, what is the inverse demand curve? . B pztoo - 956 (a) P(q)=200-2q (©) P(q) = 100 ~ 2q = \e7 0 5P 0. 2 “65 (© P@)=100-q @) Pq) = 100~ sq t a is. +8 Fiscal reform measures in India included ® @) Increasing Tax-GDP ratio () Expenditure Management a a) Managing revenue deficit and fiscal deficit CV) Increasing liquidity in the economy Find the correct combination from the given codes : @) 1, Wand Ill are correct (b) Land IV are correct (©) I, Wand IV are correct (a) Wand IV are correct Gilt-edged market means (@) Bullion Market (©) Market of pure metals © Market of government serurities(d) Market of commodities P.T.O. M08 (SET-c) (9)7 34, Let elasticity of demand for exports for a certain country be ex and clasiticity, demand for imports be em, Assume that the country devalues its currency, balance of payments will almost certainly show an improvement if’ (a) ex+em>1 (b) extem<1 (c) ext+em=1 (d) ex=em=1 35. Hedging refers to (a) The acceptance of a foreign exchange risk (b) The covering ofa foreign exchangerisk (c) Foreign exchange speculation (@ Foreign exchange arbitrage Ee 36. Which part of a perfect competitor's short-run marginal cost curve, SMC, is also short-run supply curve, SS? (a) | The whole of the SMC curve ‘ (b) The whole of the upward slopingpart of the SMC curve (c) The part of the SMC curve above its intersection with theAVC curve (d) The part of the SMC curve above its intersection with theSAC curve 37. Value of the marginal product (VMP) is: (a) MPP x MR (b) MPP x AR (c) APPxAR (d) APP x MR ta 38. Consider the production function /(*1%2)=4%?2 . This exhibits, (a) Increasing returns to scale (b) decreasing returns to scale (c) constant return to scale (d) none of the mae \ Yt lon M.-08 (SET-C) (10) 4 (wm ow AeSS ok ere MP,/ w, D, js producing where “> MP, /w,, what can it do to reduce costs but ra firm is 30 pe gain the same output? ne 7 Oe ain er we ma ne Be oh Increase the use of factor I and decrease the use of factor y ~ @ (b)__ Increase the use of factor 2 and decrease the use of factor | (c) _ Increase the use of factor 2 only z fo- ee 2 (d) decrease the use of factor 1 only A monopolist faces a demand curve given by D(p) = 100 — 2p. Its cost function is 40. _ noth c(y) = 2y. What is its optimum level of output and price? ger? 2P ur a1eP 6» (a) Y=50,p=25 (b) Y=48,p=26 i. 20?" g os 1 5O7 (©) ¥=40,p=24 (d) Y=46,p=28 ehpte 7508 R= 5? 41. Which one of the following committees recommended to establish the National Bank for Agriculture and Rural Development (NABARD) in India? (a) Narsimham Committee (b) Chakravarti Committee (c) Abhijit Sen Committee (d) Shivaraman Committee 42. Acollection of random variables ordered in time is knonw as (a) Stationary series (b) Stochastic processes ‘ i d) Non-stationary series (c) Spuriousvariables @ nto. ay M-08 (SET-C)43. 44. 4s. 46. rg 41 If te and B=|* °] then (A+B), will be equal to, 9 0 71 [3 ‘| 49 (a) [0 1 (by [I 0 [f "| 6 1 @ ot (a) [is ‘| In Microeconomics, the market is conceived primarily as an institution for (@) creating new resources equitably (6) allocating resources equitabley (d) allocating given resources Which of the following is relevant for test for equality of variances of populations? (a) zstatistic (6) t-statistic (c) x?-statistic (d) F-statistic When two regression lines (of Yon X and X on Y) coincide each other, then (a) _ there will be very low relations between X and Y (b) the correlation coefficient between Yand X is not perfect (c) _ the correlation coefficientbetween X and Y is perfect (d) We can not say anything on correlation coefficient between Y and X M-08 (SET-C) (12)ry of items is currently outsidethe Purview of GgT in India? tego! ich oo . . 7 s and tubes, office furnitures and cloth items Tyres @ . oa Agricultural equipments and musical 'ntrurnents, (b) Petroleum products, electricity and alcohol for human consumption () None of the above @ s. Giventhe function y= x4 +x, second order derivative of y with Tespect tox is: 48. 3 -. an yr @ 44x? (b) 12x areal ve «@ 4°41 (d) 12x? 49. (a) Plus, gross Private domestic investment, minus government Spending, and plus net exports (b) Plus, gross Private domestic investment, plus government spending, and minus net exports (©) Plus, gross Private domestic investment, plus government spending, and plus net exports (@) Minus &ross private domestic investment, plus government spending, and plus net exports P.T.O. 108 (SET-c) (13)53 Permanent income hypothesis assumes positive correlation between which of following pairs of variables? Prssr ARAN) (a) Permanent income and transitory income (b) Permanent income and transitory consumption Permanent income and permanent consumption © (4) Transitory income and transitory consumption Small and Medium Ente! prises Development Act, 2006, mi As per the Micro, ith investments of: enterprises are those wi (b) Rs. 25 lakhs to Rs. 5 crores (a) RS- 10 crores Which one of the following is true for population dividend to manifest? (a) Population in the age group between 0-7 years is likely to increase: ge group between 8-15 years is likely to increase. oup between 15-64 years is Ii ove 65 years is likely to increase. ‘rm uses to the quantity of output it (b) Population in the a (c) Population in the age 8° kely to increase. (@ Population in the age grouP ab lates the quantity of inputs a fi which of the following ‘An isoquant re ssumptions about the f produce. In drawing an isoquant, is made? (a) It is.a profit-maximizing firm (b) Itisa technically efficient firm () _ Itis an economically efficient firm (d) _ Ithas at least one fixed input M-08 (SET-C) 4)54, 55. 56. 37; 58. 59, yw = pd “ . i miei. R= 1D(p) = 12- 2p, what price will MXimize revenyey Pet 024, MER ) 4 (b) 5 fr 6~ 2, Ras 0 - > 7 3 @ 6 aaa Given y= +x, find dx / dy, ott i 1 1 yor we —— ne @ sx*41 %) Sy t we zn" on Bel @ ot (@) 4x J ame In the monopolistic competitiy, ive model of Chamberlin, which of the following features is not a Part ofit, (@) Product differentiation nae (b) Group quilibrium 25 rer (©) Price stickness () Setting costs oH i. G a Coase theorem is concermed with a \ @ Equity (©) Efficiency Oe Er (©) Externalities (4) None of the above A * The Production Possiblity curve under decreasing pPortunity cost jg KO (a) Concave to the origin - N — \ (b) Convex to the origin on (©) Straight line Parallel to the x-axis @ a Straight line parallel to the y-axis In the presence of heteroscadasticity, the best linear unbiased estimators are Provided by the method of b) Indirect Least Squares (a) Ordinary Least Squares ( 7 tal Variables (©) Weighted Least Squares (4) Instrumental Var P.T.O. 15) M-08 (SET-c) cTo test the stationarity of the series in time series analysis, a the following test yi 4 60. used . (a) Unit Root Test Gleadaosaaill (b) Random Walk Test (c) | Cochrane-Orcutt Iterative Procedure Test (@ _ Durbin-Watson Statistic Test 61. Which of the following is relevant for Wagner's Law of Increasing State Activitie (a) Public expenditure doesnot increase in a smooth and continuous manner, (b) Public expenditure increases in step like fashion. (©) There are inherent tendencies for the activities of the Government to incre both intensively and extensively. (4) Economy grows faster than the governmental sector. 62. _ Identifty sources of agricultural credit in India from the code given below. 1. Commercial Banks 2. Money Lender 3. Regional Rural Bank 4. Small Indusries Development Bank of India Codes : (a) 1,2and3 (b) 2,3and4 © 3,4and1 (d) 1,2,3and4 M-08 (SET-c) (16)ing to Hotelling rule about the exhaustible Natural Tesources, whi, pccordi for price variation of the exhaust; ee oF the , “sims used Stible Natural Tesources - fell Rote of interest (b) Labour cost : @ ind royalities of mines (qy Producti, . venta - "Cost and Toyalty Of mines he derivative of y= Vx, , find d | Te Me “ 1, (b) @ 2 ~ en the user Cost of Capital is equal to (othe interest rate (b) the depreciation rate (©) the marginal producto¢ Capital (q) Tobin's Q : tii i i i &, ihe economy is operating at potentia SDP, an increase in money supply will lead to : " (2) Stagflation (®) Structural inflation (©) Demand-side inflation Meo wt (d) Supply-side Inflation — 67. Which is the better measure of Welfare? CE (@) National Income (b) Per Capita Income © Per Capita disposable Income (4) Gross National Product 68, Minimum Support prices for Agricult ‘ural Commodities are fixed after taking into ’ccount the recommend: lations of which of. ‘the following bodies? 1) Ministry of Agriculture (b) Ministry of Food Processing, © nim AAYOG ® Commision for Agricultural costs & Prices (CACP) PTO. M Sere) a7)69. Newton's law of gravity is an example for (a) _ Statistical relationship (b) Deterministic relationship (© Comparing economiesto science (@ _ Stochastic relationship | SSFIAMIAMILLIAISLAMIA | 70. In correlation analysis we measure the (a) Regression between the two variables (b) Degree of linear association between two variables (©) Degree of causation between two variables (@ _ Predictability of the two variables 71. Foodgrains in india are canalized by (a) ONGC () OL (©) FCI @ wre 72. A spot Foreign Exchange Transaction refers to (a) _ the purchase or sale very wi es of foreign exchan; i ge for delive ithin i two busin (0) The sale of foreign exchan, fe igi ‘ange for delivery (© The pureh; ase of foreign exch; lange for delivey Ty @) hone Of the above M08, (SET-c) (18)"Most Favoured Nation’ (M.E.N.) clay, asding es Se. Find out y a Ie guarantees special privilege to the co he @ ) oO Mtracting par It guarantees only equal treatment © Partie The unconditional M.F.N. Clause gg conditional one ditional MLF.N. Claus joni @ The condit @use Confers Significant rights on th party. © contracting in =A + B2Xj + uj 5 uy; inh (®) Represents the missing values of Y : (b) Acts as proxy for all the omitted Variables (@ Represents measurement errors 75, Grants from the Centre to the States under the Fecommendations of Finance Commission are knownas: (a) Plan grants (©) Developmentassistance (c) Statutory grants (d) Discretionary grants | 76 Calculate the mean and standard deviation ofthe followingsample -1,4,5,0 a “Ey are | @ Mean = 2, std dev = 2.54 (©) Mean=2,stddev=2.94 4, aeiete | (©) Mean = 2, std dev = 3.54 (d) Mean = 2, std dev = 3.94 re 7. ; . mee What would be the consequences for the OLS estimator if heteroscedasticity i Present in a regression model but ignored? @ (c) It will be biased (b) It will be inconsistent ill be true It will be inefficient (d) All A,B andC wil Mtg SEr.cy (19)89. High powered money is: (a) Banks’ reserves at Central Bank (b) Money held by the Banks (c) Allloans and advances of Banks (d) Currency held by Public and cash reserves of the Banks 90. Suppose there are two factors, capital and land, and that the United States jg relatively capital abundant while Canada is relatively land abundant. According to ae Un coat cad ae ene vd (@) Canadian landowners should support Canada-U.S. free trade. the HO model (b) Canadian capitalists should oppose Canada-U.S. free trade. (©) US. capitalists shouldsupport Canada-US. free trade. (@)_ Allof the above 91. Ina hypothesis test the p value is 0.043. This means that we can find statistical significance at: (a) both the 0.05 and 0.01 levels (b) the 0.05 but not at the 0.01 level (c) the 0.01 but not at the 0.05 level (d) _ neither the 0.05 or 0.01 lelvels 92. Indicate the year in which National Food Security Mission (NFSM) was launched (a) 2001-02 (b) 2004-05 (©) 2010-11 (a) 2007-08 M-08 (SET-C) (22)93. 94. 3. 96. 97. in India? which of | the following is broad money (M3) in Indi: cl fa 5 ak Currency with public + demand deposits in the bal a) 5 with RBI (b) Currency + demand deposits + other deposit: (©) Currency + demand deposits + time deposits deposits with RBI (a) Currency + demand deposits + time deposits + other the confidence interval is constructed as: Under one tail test, () (100-@)% (@ 100(1-a)% (1-@)% @ «@% ©) = By + ByX; +u, both ¥ and X are standardized variables, If in ¥ term will be z (=) postive © regaive (c) between -1 and +1 (d)_ equal to zero the intercept When comparing r7 of two regression models, themodels should have the same (a) X variables (b)¥ variables Caer = (©) | Errorterm (d) Beta coefficient ne In classical linear regression model, Cov(u;,u;)=0,i# j refers to the assumption of (w-8) (4-9) (a) Zero mean value of disturbance term Ay (b) Homoscedasticity you Sz (©) No autocorrelation (d) Nomulticollinearity PLO; M.08 (SET-C) (23)98. Which of the following utility function(s) have the expected utility property Tie =, Bat (a2) Me.¢2.71,42) = a(7q +2) (ob) M(e,¢2,7 1,72) = mE, + 72 3 (©) U(C,,€2,71,7) = mIn cy + Zz Incy +17) (d) AndC 99. 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-offeffect (4) Backlash effect 100. 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 (a) Tax capitalization SSF JAMIA MI M-08 (SET-C) (24)