1. The fundamental economic problem faced by all societies is: a. unemployment b. inequality c. poverty d. scarcity 2. "Capitalism" refers to: a.

the use of markets b. government ownership of capital goods c. private ownership of capital goods d. private ownership of homes & cars 3. There are three fundamental questions every society must answer. Which of the following is/are one of these questions? a. What goods and services are to be produced? b. How are the goods and services to be produced? c. Who will get the goods and services that are produced? d. All of the above 4. If you were working full-time now, you could earn $20,000 per year. Instead, you are working part-time while going to school. In your current part-time job, you earn $5,000 per year. At your school, the annual cost of tuition, books, and other fees is $2,000. The opportunity cost of completing your education is: a. $2,000 b. $5,000 c. $17,000 d. $20,000 e. $22,000 5. The bowed shape of the production possibilities curve illustrates: a. the law of increasing marginal cost b. that production is inefficient c. that production is unattainable d. the demand is relatively inelastic 6. You have taken this quiz and received a grade of 3 out of a possible 10 points (F). You are allowed to take a second version of this quiz. If you score 7 or more, you can raise your score to a 7 (C). You will need to study for the second version. In making a rational decision as to whether or not to retake the test, you should a. always retake the quiz b. consider only the marginal benefits from of retaking the quiz (four extra points) c. consider only the marginal opportunity costs from taking the quiz (the time spent studying and taking the quiz) d. consider both the marginal benefits and the marginal opportunity costs of retaking the quiz

7. The law of demand states that: a. as the quantity demanded rises, the price rises b. as the price rises, the quantity demanded rises c. as the price rises, the quantity demanded falls d. as supply rises, the demand rises

Economics 100 Quiz #1, Page 2 8. The price elasticity of demand is the: a. percentage change in quantity demanded divided by the percentage change in price b. percentage change in price divided by the percentage change in quantity demanded c. dollar change in quantity demanded divided by the dollar change in price d. percentage change in quantity demanded divided by the percentage change in quantity supplied 9. Community Colleges desired to increase revenues. They decided to raise fees paid by students with Bachelors degrees to $50 per unit because they believed this would result in greater revenues. But in reality, total revenues fell. Therefore, the demand for Community College courses by people with Bachelors degrees must have actually been: a. relatively inelastic b. unit elastic c. relatively elastic d. perfectly elastic 10. The demand for a product would be more inelastic: a. the greater is the time under consideration b. the greater is the number of substitutes available to buyers c. the less expensive is the product in relation to incomes d. all of the above Answers: D C D C A D C A C C

Economics 100 Quiz #3 Friday, September 22, 2000 1. In the case of agriculture, a. the demand has shifted to the right more than the supply has shifted to the right b. the demand has shifted to the right less than the supply has shifted to the right c. the demand has shifted to the left more than the supply has shifted to the left d. the demand has shifted to the left less than the supply has shifted to the left 2. The agricultural price support program is an example of a. a price ceiling b. a price floor

self. self b. gray markets d. first-served b. there will be a. In a pure market economy. society’s. society’s. II only c. provide information to sellers and buyers . self. equilibrium 4. a. The marginal physical product rises c. surpluses c. neither I nor II 8. In a market system. surpluses c. Total physical product begins to fall b. society’s c. shortages b. shortages b.c. rationing by first-come. society’s d. II. companies c. the government 7. The law of diminishing (marginal) returns states that as more of a variable factor is added to a certain amount of a fixed factor. sellers act in ____________ interest . I only b. provide incentives to sellers and buyers a. workers d. If there is a price floor. self 9. which of the following is a function of the price? I. there will be a. which of the following is NOT likely to occur? a. equilibrium pricing 3. The goal of a pure market economy is to best meet the desires of a. equilibrium 5. If there is a price ceiling. The average physical product falls . beyond some point: a. both I and II d. but this leads to behaviors in ____________ interest. black markets c. If there is a price ceiling. consumers b. sellers providing goods for free that were formerly not free 6. The marginal physical product falls d.

price equals marginal revenue c.10. In order to maximize profits. 3 d. low barriers to entry c. close substitute products d. Quantity Price Total Cost 1 $100 $ 60 2 95 130 3 90 210 4 85 300 5 80 400 This monopolist should produce: a. In pure monopoly. the price is greater than the marginal revenue b. Why is the law of diminishing marginal returns true? a. what is the relation between the price and the marginal revenue? a. spreading the average fixed cost c. perfect information 2. limited capital d. 5 . total revenue equals total cost 4. a monopoly company will produce that quantity at which the: a. marginal revenue equals average total cost b. 4 e. specialization and division of labor b. there is no relation d. one seller of the product b. they are equal 3. 2 c. Which of the following is a characteristic of pure monopoly? a. the price is less than the marginal revenue c. marginal revenue equals marginal cost d. all factors being variable in the long-run Answers: B B B A D A C B C C Economics 100 MW Quiz #3 1. 1 b.

In price discrimination. selling a certain product of given quality and cost per unit at different prices to different buyers 9. In order to practice price discrimination. all of the above 6. all of the above 10. which section of the market is charged the higher price? a. charge a higher price b. economies of scale b. the section with the most elastic demand Answers: A A C C D D B D D C Economics 100 Quiz #4. the market is very small d. Fall 2002 1. which of the following is needed? a. The profits of SDG&E are calculated as a percent of the value of the capital goods c. make a greater amount of economic profit d. All of the above 8. total revenue . a monopolist is more likely to: a. charging different prices based on cost-of-service differences d. a high proportion of the total cost is the cost of capital goods c. Which of the following concepts represents the extra revenue a firm receives from the services of an additional unit of a factor of production? a. Compared to the case of perfect competition. SDG&E has been allowed to earn very high economic profits b. some degree of monopoly power b. charging different prices on the basis of race b. an ability to prevent reselling d. Which of the following is true about the way by which SDG&E has been regulated by the PUC? a. an ability to separate the market c. all of the above 7. the section with the most inelastic demand d. the section with the richest people b. the price of electricity would also fall d. Which of the following is necessary for a natural monopoly? a. produce a lower quantity of the product c. When the demand for electricity would fall. Which of the following best defines price discrimination? a. the section with the oldest people c.5. charging different prices for goods with different costs of production c.

there are few substitutes for labor b. marginal revenue 2. marginal cost d. marginal revenue product b. Skills that can be transferred to other employers are called: a. 2 b. wage 4. 6 3. marginal revenus product d. the iron law of wages c. Workers Quantity Produced 1 15 2 28 3 39 4 48 5 55 6 60 This company is a profit-maximizing firm selling in a competitive product market and hiring in a competitive labor market. The demand for labor will be more elastic if: a. non-pecuniary skills . general skills b. The demand for labor slopes down and to the right because of a. 3 c. the law of diminishing marginal returns d. This company should employ ______ workers. 4 d. specific skills c. The demand for labor is the same as the a. It uses semi-skilled labor to produce dampers used in office building ventilation systems. there is a short time under consideration c. a.b. economies of scale 5. labor is a large percent of the total cost of production d. marginal physical product c. all of the above 6. marginal physical product c. the demand for the product is relatively inelastic e. 5 e. Assume that the current market price per damper is $50 and that the prevailing weekly salary per semi-skilled worker is $550. the law of demand b.

Promote or Maintain Competition . If worker A earns more in wages than worker B. Worker A uses more capital per worker than worker B c. 50% b. bought Chrysler. Create and Enforce the "Rules" B. 8% 2. Worker A has more natural ability than worker B d. the concentration ratio is: a. Experience skills 10. it could be because: a. Physical capital d. 100% d. Fall 2001 1. vertical c. human capital d. “Treating an individual as typical of a group” is the definition of a. The functions are the following: A. statistical discrimination c. The product made by worker A sells for a higher price than that made by worker B b. the merger was a. specific skills Answers: C B A C C A B D A B Economics 100 Quiz #5. Educational skills 8. All of the above 9. Skills that embodied in a person are called a. each selling 2% of the total sales. If there are 50 firms in a industry. maker of the Mercedes. Embodied skills c. all of the above 7. Human capital b. conglomerate Questions 3 through 10 involve the functions of the government in a world of laissez faire. General skills b. Which skills are most likely to be paid for by the employer? a. When Daimler Benz. horizontal b. pure discrimination b. Specific skills c. 2% € c.d.

000. Redistribute Income on the Basis of Need For each of the following. 7. the property tax d. 4. The government subsidizes the building of new stadiums and arenas. When my income was $100. The government provides anti-trust laws. The government makes the beach free for everyone 10. When my income became $200. I paid $10. 20% . choose the letter that best describes the function of government. 9. the personal income tax b. the social security tax c. My marginal tax rate is: a. The government has a program of social security to provide a pension for the elderly. The government requires people to have a smog control device in their cars. Answers: D A B F D H C E G A Economics 100 Quiz 6.000 in taxes. Provide Merit Goods H. The government provides for military defense. 10% b. Subsidize Positive Externalities (External Benefits) G. Reduce Negative Externalities (External Costs) through regulations or through taxes F. The largest source of tax revenue for the federal government is: a.C. 3. I paid $40. The government makes laws that determine certain behaviors that a corporation must engage in and other behaviors that a corporation cannot engage in. Fall 2002 1. the sales tax 2.000. The government requires that all gasoline stations post their prices in signs large enough to be seen by a reasonable person from the street. Provide Public Goods E. Provide Information D. 8. 5.000 in taxes. 6.

the Medicare tax 5. Productivity is the United States grew very slowly between 1973 and 1996 c. John lost his accounting job when Montgomery Wards closed its stores in San . she was paid $50. recovery d. unemployed c. Business Investment Spending occurs when individuals buy stock in the stock market b. employed b. the official unemployment rate is too high d. $900 e. The rest of the week. not in the labor force 10. $800 d. $1300 6. regressive c. In 1996. recession c. Martha spent one day cleaning a house. $900 e. Which of the following taxes is regressive? a. Martha would be classified as a. In 2002. we would expect to have a/an a.c. 40% 3. The tax is question #2 is: a. For this. $500 d. 30% d. the state income tax c. progressive b. The Nominal GDP for 2002 is: a. $500 c. the Real GDP for 2002 is: a. Using the numbers in question 5. “Full employment” occurs when there is no frictional unemployment 8. Which of the following statements is/are true? a. $400 b. Assume that there are two goods. Americans produced 20 units of A at a price of $20 and 30 units of B at a price of $30. Immediately after a trough. Americans produced 10 units of A at a price of $10 and 20 units of B at a price of $20. proportional 4. peak b. $400 c.300 7. the federal income tax b. another trough 9. the sales tax d. she spent looking for a job. Because of discouraged workers. Last week. $100 b. $1. A and B.

7. Define frictional unemployment Define cyclical unemployment Define structural unemployment Define “full employment” Economics 100 Quiz #7. Define indexation 4. Quantity Price A 10 $1 B 10 $4 In the current year. He looked for a similar job for ten months before finding an accounting job at Sears. he was a. Assume that there are only two goods: A and B In the base year. Define average tax rate Define marginal tax rate 2. During the month John was unemployed. Define progressive tax Define regressive tax Define proportional tax 3. seasonally unemployed c. structurally unemployed Answers: A C A C E C B C A D Economics 100 Makeup for Quiz 6 1. Define business investment spending 6. Quantity Price A 20 $ 5 B 25 $20 The Consumer Price Index (CPI) for the current year is: a. Fall 2002 1. 50 . frictionally unemployed b.Diego. Briefly explain how the official unemployment rate is calculated. cyclically unemployed d. Define Nominal Gross Domestic Product (GDP) Define Real Gross Domestic Product (GDP) 5.

people with large debts to pay for their homes and cars d. Inflation makes everyone poorer b. Inflation decreases savings in financial form 5. 5% d.000 on consumer goods. 3% c. the real interest rate is: a. 200 d. National Income is therefore $10. In order to avoid recessions and inflation (to have equilibrium). Inflation increases business investment spending d. National Income c.000. For which of the following reasons might inflation cause Real GDP to grow slower than it otherwise would? a. and spend $7.000. decreased the money supply c. Real GDP c. National Income Minus Taxes Plus Transfers 6. 2% b. National Income Minus Taxes b.b. Inflation reduces the value of consumer debt c. budget surplus of $1000 d. save $1. balanced budget b. Disposable Income is equal to: a. National Income Minus Taxes d. Of this. Which of the following groups is most hurt by unexpected inflation? a. consumers will pay $2. budget deficit of $1000 c. had a large increase in government spending . According to Keynes. budget deficit of $2000 7. 500 e. done nothing b. 7% e. 2 ½% 4. the government should have a: a. 600 2. 100 c.000 in taxes. people with large retirement savings held in savings accounts 3. workers with cost of living adjustments in their labor contracts b.000. If the nominal interest rate is 5% and the inflation rate is 2%. Business Investment spending is $2000. when the Great Depression started. homeowners c. the government should have: a. Assume that Potential Real GDP equals $10.

medium of exchange b. less than $10 billion c. stocks d. an increase in marginal tax rates lowers production c. Which of the following is a component of M-1? a.d. savings deposits b. Which of the following IS a function of money? a. spending on education c. more than $10 billion b. money market mutual funds c. a government budget deficit raises American exports and lowers American imports Answers: D D B D D C C A A C Economics 100 Quiz 8 1. checkable deposits 4. small time deposits b. store of value c. If the government lowers taxes by $10 billion. the Real GDP will rise by a. a government budget deficit raises interest rates and causes investment spending to fall d. unit of accounting d. Which of the following is a NOT component of M-2? a. gold 3. checkable deposits d. such as the Smoot-Hawley Tariff 8. its Board of Governors is elected by a vote of the people . Which of the following is true about the Federal Reserve System (Fed)? a. a government budget deficit lowers interest rates and causes investment spending to rise b. exactly $10 billion 9. unemployment benefits b. Which of the following is an automatic stabilizer? a. enacted high tariffs. net interest 10. “Crowding out” means that a. it is a system of 12 central banks b. defense spending d. all of the above 2. credit card c.

a 6 month CD c.000 9. An IOU of the Federal Reserve Bank of San Francisco to Bank of America is called: a. If the Federal Reserve wishes to increase the money supply. $1. buy Treasury securities in the open market d. fall c. The monetary base is composed of: a. reserves d. remain unchanged Answers: D C C A C A C D C B . it should: a. it accepts deposits from the public and makes loans to businesses e. gold and silver b. currency and reserves d. raise the reserve requirement b.000 and the reserve requirement is 10% (1/10). discounts b. currency and checkable deposits 8.000 c.000 d. its main policy-making body is the FDIC d. a home d. An increase in the money supply will cause interest rates to a. Which of the following is the most liquid? a.c. all of the above 5. rise b. currency only c. raise the discount rate c. all of the above 10. water 7. $10. $5. $100 b. federal funds c. If the monetary base is increased by $1. by how much will the money supply be increased? a. collateral 6. a savings account b.

000 5.000 (D) More than Rs.1.3.The concept of ‘costing margin’ in the pricing theory was introduced by? (A)Andrews (B) Baumol (C)Cournot (D) Williamson 2.4 (D) 2.The Keynesian theory of employment provides the solution of? (A) Frictional unemployment (B) Disguised unemployment (C) Cyclical unemployment (D) Seasonal unemployment 3. Capital expenditure Arrange the expenditure heads in descending order using the codes given below (A)2. 40. The terms ‘NEER’ and ‘REER’ are related with? . Four heads of expenditure of the Union Budget 2009-10 are given below— 1. Revenue expenditure 4.1. India’s foreign exchange rate system is? (A) Free float (B) Managed float (C) Fixed (D) Fixed target of band 7.000 (C) More than Rs. Plan expenditure 2. Mathematics was first used economic theory by? (A)Weiser (B) Walras (C)Cournot (D) Pigou 6.2.2. 50.1 (B) 3.4.000 (B) More than Rs.1.3 4. 20. In the year 2007-08 the per capita NNP at current prices was? (A) More than Rs.4. 30. Non-plan expenditure 3.4. 1 (C)3.

For the calculation of percentile. According to the Planning Cornmission.The user cost of capital is? (A) The real rate of interest plus the rate of depreciation (B) The nominal rate of interest plus the rate of depreciation (C) The real rate of interest only . India’s first port-based Special Economic Zone named Inter national Container Transshipment Terminal (ICTI) is being set-up at? (A)Kandla (B) Kochi (C)Goa (D) Tuticorin 13. the data should be arranged in? (A) Ascending order (B) Descending order (C) Random order (D) Either random or descending order 9. the required investment is? (A) Approximately $ 250 billion (B) Approximately $ 500 billion (C) Approximately $ 750 billion (D) Approximately $ 1000 billion 12. The shape of a frequency curve cannot be? (A) U-shaped (B) V Shaped (C) J-shaped (D) S-shaped 11. for infrastructure development during Eleventh Five Year Plan. Which of the following is pure unitless number? (A) Mathematical average (B) Statistical average (C) Absolute measure of dispersion (D) Relative measure of dispersion 14. As per BASEL-II norms.(A) Foreign exchange rate (B) External economic resources: (C) National and regional economic equality (D) Environmental regulation 8. a bank’s capital to risk weighted assets ratio (CRAR) should be at least? (A) 8% (B) 10% (C) 12% (D) 14% 10.

If the covariance of two variables is equal to the product of the standard deviations of the variables. The number of items reserved for the exclusive manufacture by micro and small enterprises is currently? (A) Less than 25 (B) Less than 50 (C) Less than 75 (D) Less than 100 16. Which average is most affected by the extreme observations? (A) Arithmetic mean (B) Geometric mean (C) Median (D) Mode 21.(D) The nominal rate of interest only 15.Which one of the following is not a feature of current Indian Planning? (A) Structural Planning (B) Indicative Planning (C) Functional Planning (D) Decentralised Planning 18.The concept of disinvestment was introduced by? (A) Friedman (B) Kaldor (C)Keynes (D) Myrdal 19. Which of the following is average of second order? (A) Arithmetic mean (B) Geometric mean (C) Second quartile (D) Standard deviation 20.. then the correlation coefficient will be? (A) -1 (B)+1 (C) 0 (D) Between 0 and -1 22 The term ‘Animal Spirit’ was used by Keynes for? .A new housing price index RESIDEX has been launched by? (B) Planning Commission (C) Housing Development Finance Corporation (D) National Housing Bank (A) Central Statistical Organization 17.

The index of Financial Inclusion has been launched for the first time in 2008 by? (A) Confederation of Indian Industries (CII) (B) Federation of Indian Chamber of Commerce and Industry (FICCI) (C) National Council of Applied Economic Research (NCAER) (D) Indian Council for Research on International Economic Relations (ICRIER) 24. Which of the following is not an item of transfer payment? (A)Pension (B) Scholarship (C)Dividend (D) Subsidy 27 The United Nation’s Millennium Development Goals are to be reached by the year? (A) 2010 (B) 2015 (C) 2020 (D) 2025 28.The elasticity of factor substitution for constant elasticity substitution production function is always? (A) Zero (B) One (C) A positive value (D) A negative value 25.The Revealed Preference theory assumes? (A) Weak ordering (B) Strong ordering (C) Constant ordering (D) Multiple ordering 26.(A) Consumption (B) Investment (C) Income (D) Interest 23. Which of the following is not an effect of lump sum tax imposed on monopolist? (A) Output sold is unchanged (B) Price is unchanged (C) Profit reduces (D) Incidence of tax is wholly on buyer .The number of women entrepreneurs in small scale industrial region is highest in the state of? (A) Karnataka (B) Kerala (C) Maharashtra (D) Tamil Nadu 29.

short-run production capabilities in capital goods industry (D) Limited long-run production capabilities in capital goods industry 31. A’s index NASDAQ-100? (A)Infosys (B)Tata Motors (C) ICICI Bank . The New Exploration License Policy (NELP) of the Government of India is related with? (A) Coal and Lignite (B)Uranium and Thorium (C) Diamond and Precious Stones (D) Oil and Gas 36. The nature of classical unemployment is? (A) Disguised (B) Frictional (C)Open (D) Structural 34. The concept of Adjusted Net Saving has been given by? (A)Hamilton (B) Friedman (C)Keynes (D) Pigou 32.30. Which one of the following properties shows the high degree of dispersion? (A) Homogeneity (B) Consistency (C) Uniformity (D) Variability 35.Full employment is a situation when? (A) Cyclical unemployment is zero (B) Frictional unemployment is zero (C) Seasonal unemployment is zero (D) Disguised unemployment is zero 37.Which Indian Company has been included for the first time in U. The product of regression coefficients is always? (A) Positive (B) Negative (C) Zero (D) A complex number 33. A distributed lag for net investment may be due to? (A) A decrease in the capital output ratio (B) An increase in the capital output ratio (C) Limited.S.

The Divergence Indicator is related with? (A) Wage rate of workers (B) Exchange rate of currencies (C) Profit of firms (D) Market price of shares 43. The coefficient of alienation is known as? (A) Against correlation (B) Against variance (C) Against association (D) Against determination 42.Which one of the following taxes has not been abolished in recent Union Budgets? (A) Banking Cash Transaction (B) Commodity Transaction Tax (C) Fringe Benefit Tax (D) Securities Transaction Tax 44.The natural rate of unemploy ment is the sum of? (A) Frictional unemployment and Structural unemployment (B) Frictional unemployment and Cyclical unemployment (C) Structural unemployment and Cyclical unemployment (D) Structural unemployment and Seasonal unemployment 39.(D) Videsh Sanchar Nigam Limited 38. Mean deviation is always? (A) Equal to the standard deviation than the standard (B) Less than the standard deviation (C) More than the standard deviation (D) Twice of the standard deviation 41. The most liquid asset among the following is? (A) Gold (B) Share (C)Cash .The nature of statistical inference is? (A) Inductive (B) Deductive (C) Descriptive (D) Objective 40.The Samuelson-Holt formula provides a measure of? (A) Consumer’s equilibrium (B) Consumer’s surplus (C) Elasticity of demand (D) Marginal utility 45.

Density test is used for? (A) Median (B) Mean (C) Mode (D) Quartile . The ‘Swiss Formula’ of World Trade Organisation is related with? (A) Patent of drugs (B) Agricultural subsidy (C) Transboundary services (D) Non-agricultural tariff 48. more saving 47. Which of the following results in an increase in inventory sales ratio? (A) A decrease in the cost of holding inventory (B) An increase in probability delivery delays for materials (C) A decrease in the probability delivery delays for materials (D) An increase in the cost of: holding inventory 51. The Securities and Exchange Board of India has recently made the rating of Initial Public offerings mandatory. Harris-Todaro model is related with? (A) Growth and unemployment (B) Growth and migration (C) Unemployment and migration (D) Unemployment and inflation 52. Ricardian Equivalence’ is related with? (A) Low deficit. he would have maximized his total pleasure from it only if the satisfaction gained from the last item of each commodity bought was the same for the each commodity.” The above statement is related to? (A) Gossen’s First Law (B) Gossen’s Second Law (C) Gossen’s Third Law (D) Gossen’s Fourth Law 50. more saving (C) High deficit.(D) Land 46. The total number of such grades are? (A)Three (B) Four (C)Five (D) Six 49. Consider the following statement— “Once a person has spent his entire income. less saving (D) High deficit. less saving (B) Low deficit.

In any set of numbers. In the Keynesian saving function.For n consecutive natural numbers. a financial aid of $ I million over a period of three years has recently been tied up with? (A) International Monetary Fund (B) International Development Agency (C) Asian Development Bank (D) International Finance Corporation 56. If correlation coefficient is equal to zero.For implementing a comprehensive Khadi Reform Programme. the parameter is ? (A) Disposable income (B) Total saving (C) Marginal propensity to save (D) Autonomous saving 54.The current level of maternal morality rate in India is approximately? (A) 150 per one lac live births (B) 250 per one làc live births (C) 350 per one lac live births (D) 450 per one lac live births 59. then variables will be? (A)Associated (B)Correlated (C)Independent . the following relationship is correct? (A) Mode = Mean (B) Mean = Median (C) Mode > Median (D) Mode < Mean 57. A simple correlation can defined as the tendency of? (A) Independent variation (B) Dependent variation (C) Simultaneous variation (D) Instantaneous variation 55. the geometric mean exists only when all numbers are? (A) Positive (B) Negative (C) Zero (D) Positive. The measure of the degree of association between the values of two random variables is called? (A) Correlation (B) Association (C) Regression (D) Co-variance 58.53. zero or negative 60.

( D) Dependent Answers: 1B 2C 3C 4B 5A 6B 7A 8A 9C 10 D 11 B 12 B 13 D 14 A 15 A 16 D 17 C 18 C 19 D 20 A 21 B 22 D 23 D 24 C 25 B 26 C 27 B 28 D 29 D 30 B 31 A 32 A 33 C 34 D 35 D 36 A 37 A 38 A 39 B 40 B 41 D 42 B 43 D 44 C .

(b) 4. 2. Creating and updating database on slums. 3. Select the correct answer using the code given below (a)1. (b) 3.2 and 4 Ans. 46 lakh crore Ans. 30 lakh crore (b) Rs. 40 lakh crore (d) Rs. State and Union Territories) is estimated at about: (a)Rs. Demographic divide refers to a rise in population (a) between the age group of I to 14 years (b) between the age group of 15 to 64 years (c) between the age group of 65 to 74 years (d) above 74 years Ans. 4. Asking slum dwellers to apply for house loan from government. (d) 2.45 C 46 D 47 D 48 C 49 B 50 D 51 C 52 C 53 A 54 B 55 C 56 B 57 A 58 B 59 A 60 C . Granting tenure security to slum dwellers. The total public sector outlay in the Eleventh Five Year Plan (Central. 36 lakh crore (c)Rs.2 and 3 (b)1 and 2 (c)2 and 4 (d)1.Small and Medium Enterprises . Using land as a resources for housing and shelter development for slum dwellers. Which of the following are the measures of Integrated Slum Development Programme adopted in India in the 11 Five Year Plan? 1. Which one of the following is the prescribed investment limit for medium enterprises in the manufacturing sector as per the Micro.

The effect of trade with different production possibilities curves and identical indifference curves is to make a country. Which one of the following statements regarding Aam Admi Bima Yojana (AABY) is not correct? (a) It was launched in the year 2007 (b) The contribution of the Central Government and State Governments in the premium is in the ratio of 75 : 25 (c) The scheme is applicable to rural landless households (d) It provides insurance against natural death as well as accidental death Ans. (a) more specialized in consumption and less specialized in production (b) more specialized in production and less specialized in consumption (c) less specialized both in consumption and in production (d) more specialized both in consumption and in production Ans. 2006? (a) More than Rs. 10 crore Ans. 2 crore (b) More than Rs. 2 crore and less than Rs. consider the following statements: When factor intensity reversal occurs 1.Development Act. 10 lakh and less than Rs. (d) 5. services and financial claims Ans. (c) 8. Under which one of the following conditions is the gain from international trade . Heckscher-Ohlin trade model fads. 10 crore (d) More than Rs. Which of the statements given above is/are correct? (a)1 only (b) 2 only (c)1 and3 (d) 1. 3. (d) 10. (b) 6. 5 crore (c) More than Rs.With which one of the following does the Prebisch-Singer hypothesis deal? (a) Terms of trade of less developed countries (b) Terms of trade of developed countries (c) Balance of payments of less developed countries (d) Balance of payments of developed countries Ans. factor price equalization theorem fails.2 and 3 Ans. and services (b) nation’s net exports of financial claims (c) nation’s net exports of international official reserve assets (d) nation’s sum of net exports of goods.(d) 9. (a) 7. elasticity of substitution of one factor for the other is much higher in the production of a commodity. 2. 5 crore and less than Rs. Balance on capital account refers to the (a) nation’s net exports of goods.

Given C=120+0. 3. G=56 (Where C =Consumption.67 (b) 460. (b) 12. (c) 13. Dominance of agricultural activity. 2.2and3 (c) 1. Which of the following are the characteristics of the Traditional Society in Rostow’s Stage theory? 1. I=100. which one of the following is the value of equilibrium income? (a) 366. Select the correct answer using the code given below (a) 1. The Lorenz curve shows the relationship between (a) asset creation and income generation (b) population groups and their respective income shares (c) unemployment and inflation (d) wages.00 (c) 310.3and4 (d) 2. (b) 14. labour hours and leisure Ans.maximised? (a) Marginal rate of transformation (MRT) in production is equal to the marginal rate of substitution (MRS) in consumption (b) MRT in production is greater than MRS in consumption (c) MRT in production is less than MRS in consumption (d) MRT in production and MRS in consumption are equal to international price ratio Ans. consumption is related to which one of the following? (a) Current income (b) Past peak level income .3 ánd4 Ans. (a) 11. No government intervention.4Y. G =Government Expenditure and Y = Income). I = Investment. Which one of the following is the difference between value at market prices and value at factor cost for a national aggregate? (a) Value of consumption of fixed capital (b) Value of indirect taxes net of subsidies (c) Value of net factor income earned abroad (d) Value of subsidies net of indirect taxes Ans. 4.67 Ans:b 15. Pre-Newtonian science and technology.2and4 (b) 1. According to Life Cycle Hypothesis.00 (d) 266. Limited production function.

Non availability of data about income of small producers or household enterprises. 2. Output of non-monetized sector. (b) 18.2and3 (c) 2 and 3 (d) 1 and 4 Ans. Which of the following are the limitations of national income estimation in India? 1. The costs of factors of production. equal to its value of marginal product.Which one of the following taxes/cess is levied by States in India? (a) Tax on motor vehicles (c) Educational cess (b) Tax on hotels . 4. Keynes states that the aggregate demand function is: (a) an increasing function of the level of employment (b) a decreasing function of the level of employment (c) a constant function of the level of employment (d) not related to the level of employment Ans. Inflation. (c) 16.2. (a) 17. Which one of The following is shown by the Phillips Curve? (a) Inverse relationship between real and nominal wages (b) Inverse relationship between the rate of inflation and rate of unemployment (c) Positive relationship between nominal wages and the rate of employment (d) Positive relationship between rate of inflation and nominal wages Ans.(c) Life time expected income (d) Price expectations over one’s life time Ans. then which one of the following does it earn? (a) Positive supernormal profit (b) Zero supernormal profit (c) Negative supernormal profit (d) Monopoly profit Ans. (b) 19. 3. supplied by the entrepreneur himself are known as (a) implicit costs (b) explicit costs (c) fixed costs (d) variable costs Ans. (b) 20. Unreported legal income. Select the correct answer using the code given below (a) 1. If a producer pays the price for each of the inputs that it uses. (b) 21.3and4 (b) 1.

(a) 24.(d) Tax on wealth Ans.2and 3 Ans. Gini coefficient for the post-tax distribution of income should be less than that of pretax distribution.2. Which one of the following is capital receipt in government budget? (a) Interest receipts o loans given by the Government to other parties (b) Dividends and profits from public sector undertakings (c) Borrowing of the Government from public (d) Property tax receipts Ans. 3. Which of the statements given above is/are correct? (a) 1 only (b) 1 and 2 (c) 2and3 (d) 1. Marginal tax rate should be increasing. (a) 23. Which of the following are the characteristics of progressive tax? I. Marginal tax rate should be more than average tax rate. (b) 25. 2. Free trade protects domestic industries. 2. Free trade leads to maximization of output. Marshall-Lerner condition states that the foreign exchange market would be stable if the sum of the price elasticities of the demand for imports and the demand for exports is: (a)greater than one (b) less than one (c)equal to one (d) equal to zero Ans. 4.3and4 (b) 1. (a) 22. Consider the following statements regarding argument for free trade: 1. 3. Select the correct answer using the code given below (a) 1. Free trade prevents monopoly. (c) . Tax amount should be lump sum in nature.2and3 (c) 1 and 4 (d)2 and 3 Ans. income and employment.

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