42. Of the following, which sector 46. For any pair of variables X and Y, experienced maximum growth rate two regression equations-one at 2004-05 prices in India during regression of Y on X and other 2009-10? regression of X on Y exist because I. Tangent of the angle made by (A) Trade, hotels, transport and two regression equations with communication each other determines the (B) Manufacturing, construction, coefficient of correlation. electricity, gas and water II. Regression model does not supply help in the identification of dependent and independent (C) Financing, insurance, real variables of the equation. estate and business services III. Regression and correlation (D) Agriculture, forestry, fishing. coefficients represent the mining and quarrying co-variation of the two variables. 43. In which of the following years, IV. Regression equation represents domestic savings jointly the value of X and Y. gross as percentage of GDP was the highest ? Select the right code from the following as the answer to the (A) 2009 - 10 question : (B) 2008 - 09 Codes : (C) 2007 - 08 (A) I and II are correct. (D) 2006-07 (B) I and III are correct. (C) I and IV are correct. 44. Growth process resulting into broad (D) III and IV are correct. based benefits and providing equality of opportunity to all is referred to as 47. Which of the following are not (A) Faster growth associated with the Leontief's Static Model ? (B) Inclusive growth 1. Final demand is a stochastic (C) Exclusive growth vector. (D) Sustained growth II. Reciprocal of the Perron- Frobinius root is the maximum 45. Which of the following plans growth rate. witnessed the highest growth rate in III. Input coefficients are the fixed technological parameters. India ? IV. (1- A-RB)' WL =P (A) Ninth Plan Select the correct code from the (B) Eighth Plan following : (C) Tenth Plan (A) I, II, III (B) I, III, IV (D) Seventh Plan (C) I, III (D) I, II, IV36. A.W. Phillips' wage-inflation 39. During the Tenth Five Year Plan. unemployment trade off is based on some of the following things were (A) Static expectations hypothesis experienced : (B) Adaptive expectations hypothesis I. Services sector witnessed the highest growth rate (C) Extrapolation expectations hypothesis II. Agriculture experienced the lowest growth rate. (D) Rational expectations hypothesis III. Rate of growth in the industrial sector was negative. 37. Suppose the money supply and the Which of the aforesaid statements are price level are constant, and the correct ? demand for money is a function of (A) I, II and III are correct. income and interest rate. When the income level increases, there is (B) I and II are correct. (A) an increase in the quantity of (C) I and III are correct. money demanded and an (D) II and III are correct. increase in the rate of interest. (B) an increase in the quantity of 40. Assertion (A) : Employment growth money demanded and a in the organized sector (both decrease in the rate of interest. public and private combined) has increased during the period (C) a decrease in the quantity of 1994-2008. money demanded and a Reason (R) : There has been decrease in the rate of interest. relatively faster employment (D) a decrease in the quantity of growth in the private sector. money demanded and an Codes : increase in the rate of interest. (A) Both (A) and (R) are correct and (R) is the correct 38. Fiscal reform measures in India explanation of (A). included (B) Both (A) and (R) are correct I. Increasing Tax-GDP ratio but (R) is not the correct explanation of (A). Expenditure Management III. Managing revenue deficit and (C) (A) is correct but (R) is incorrect. fiscal deficit (D) (A) is incorrect but (R) is correct. IV. Increasing liquidity in the 41. According to the provisional figures for economy 2011 census, which of the following Find the correct combination from States has the lowest child sex ratio the given codes : both in rural and urban areas ? (A) I, II and III are correct. (A) Uttar Pradesh (B) I and IV are correct. (B) Kerala (C) II, III and IV are correct. (C) Jammu and Kashmir (D) III and IV are correct. (D) Haryana29. The most important characteristics of 32. According to which of the following a federation is hypotheses, consumption is (A) Center's Supremacy over irreversible ? States (A) Absolute Income Hypothesis (B) Relative Income Hypothesis (B) Non-correspondence between (C) Permanent Income Hypothesis the functions and resources of (D) Life Cycle Hypothesis the Center and State 33. Governments. Which of the following models of business cycle generates constrained (C) Perfect match between the cycles ? functions and resources of the (A) Samuelson's model Central and State Governments. (B Hick's model (D) None of the above (C) Kaldor's model (D All of the above 30. In the equation C = Co + C, Ya, where 34. Which of the following is not an C is planned consumption expenditure, assumption of Harrod's model of Ya is disposable income, Co is intercept growth ? or autonomous consumption (value of (A) The desired capital output ratio C when disposable income is zero), and is constant. C is marginal propensity to consume; (B) Savings are a constant proportion which of the following is the of real income in the economy. endogenous variable ? (C) The labour force grows at some (A) Co exogenously determined constant exponential rate. (B) C (D) Factor prices are flexible in the (C) CYd long run. (D) None of the above 35. Match the statements given in Group - A 31. Which of the following statement is false ? with their propounders in Group - B : Group - A Group - B (A) In dynamic multiplier, there is (Statements) (Propounders) lagged relationship between i. Velocity of money 1. Keynesians consumption and disposable is a stable function income. of its determinants (B) The dynamic multiplier process ii. Velocity of 2. Monetarists can be presented as a money is an unstable function decreasing geometric series of of its change in income in the determinants. following period. ili. Velocity of 3. Classicals (C) A major portion of the money is a multiplier effect is realized in constant, and fewer periods when the does not depend on income and marginal propensity to interest rate. consume is smaller. Choose the correct code : (D) A major portion of the Codes : multiplier effect is realized in fewer periods when the (A) marginal propensity to (B) consume is larger. (C) (D)25. Gross fiscal deficit of the State 27. Assertion (A) : During the financial Governments is financed by year 2011-12, the Central Market Borrowings Government is not likely to achieve the target of raising II. Printing of Currency 40,000 crores through III. Loans from the Central disinvestment policy. Government Reason (R) : Policy of increased IV. External Borrowings public borrowings to bridge the Find the correct answer from the fiscal gap is justified. given code : In the context of the above two Codes : statements, which one is correct from the given ? (A) I, II and III are correct. Codes : (B) II, III and IV are correct. (A) Both (A) and (R) are correct and (C) I and III are correct. (R) is the correct explanation of (D) II and IV are correct. (A). (B) Both (A) and (R) are correct but 26. Match the items of List - I with the (R) is not the correct explanation items of List - II from the given code : of (A). List - I List - II (C) (A) is correct but (R) is incorrect. Canons of 1. U.K. Hicks (D) (R) is correct but (A) is incorrect. Taxation ii. Canons of 2. Adam 28. Arrange the following Reports in Public Smith chronological order from the given Expenditure codes : iii. Effective 3. Findlay 1. Direct taxes Enquiry incidence of Shirras Committee Final Report Tax II. Final Report on Rationalizing iv. Benefits 4. Erik and Simplification of the Tax received Lindahl Structure approach of III. Indian Tax Reforms-Report of Public a Survey Expenditure IV. Taxation Enquiry Commission Codes : Codes : ii IV (A) IV, III, II, I (A) 2 3 (B) (B) I, II, III, IV 2 3 (C) 2 3 (C) III, I, IV, II (D) (D) II, III, I, IV16. Which of the following is an adverse 20. Match 'labour force' with the effect of Euro Currency Market ? appropriate item from amongst the (A) International Capital Market following : (B) Decrease in World's Nominal (A) Work force Money Supply (B) All educated (C) Integration of International Employed + Unemployed Capital Markets (D) All rural workers (D) Meeting BOP Deficit 21. There are four phases of a business 17. Employment Guarantee Scheme was cycle. Identify the correct sequence first introduced in of the occurrence of these phases : (A) Gujarat (A) Recovery, Recession, Expansion, (B) Madhya Pradesh Depression Maharashtra (B) Recovery, Expansion, Depression, (D) Tamil Nadu Recession (C) Depression, Expansion, Recession, 18. According to Weber's Theory of Recovery Location, the important factors (D) Recovery, Expansion, Recession, influencing location are Depression 1. Transport Cost 2. Land Cost 22. The production of 'finished steel' in 3. Labour Cost India, since independence, has increased over 4. Innovation Cost (A) 10 times Choose the correct code : (B) 20 times (A) 1 &2 (B) 2 &3 (C) 30 times (C) 1 &3 (D) 1 &4 (D) 50 times 19. Given below are two statements, one labelled as assertion (A) and the 23. The concept of 'Effective Revenue other labelled as Reason (R). Deficit' has been used for the first time in the Union Budget for Assertion (A) : India's Public sector helped in the development of a (A) 2009 - 10 sound industrial base. (B) 2010 - 11 Reason (R) : Public sector is under (C) 2011 - 12 State control. The role of State (D) 2008 - 09 in formulating appropriate policies and providing financial 24. Which tax is likely to contribute and other support has helped the maximum to the Central Government public sector. tax revenue during the year 2011 - 12 ? (A) (A) is correct, but (R) is wrong. (A) Central Excise Duty (B) Both (A) & (R) are correct. (B) Customs Duties (C) (A) is wrong but (R) is correct. (C) Income Tax (D) Both (A) and (R) are wrong. (D) Corporate Tax8. A general equilibrium is defined as a 12. Assertion (A) : Many developing state in which all economic units countries contend that labour maximize their respective objective standards constitute a barrier to functions, all prices are free trade. simultaneously in equilibrium and all Reason (R) : Their competitive markets are cleared. The statement is advantage in the global (A) Correct economy is cheap labour. (B) Not correct (A) Both (A) and (R) are correct (C) Perfectly correct but (R) is not the correct (D) None of the above explanation of (A). (B) Both (A) and (R) are true and 9. According to Mundell in an optimum (R) is the correct explanation of currency area, the achievement of (A). internal and external balance is (C) (A) is false but (R) is true. possible through (D) (A) is true but (R) is false. (A) Capital flows (B) Inflow of funds from abroad (C) Official development 13. Arrange in order the WTO assistance ministerials : (D) The mobility of factors I. Geneva II. Doha 10. An agreement between two countries III. Hong Kong to maintain a free trade area, a Seattle common external tariff, free mobility of capital and labour and degree of (A) II, IV, III, I (B) III, IV, I, II unification in government policies (C) IV, II, III, I (D) I, IV, II, III and monetary policy is called (A) Common market 14. What does Hedging mean ? (B) Free trade area (A) The acceptance of a foreign (C) Economic union exchange risk (D) Customs union (B) The covering of a foreign exchange risk. 11. The core principles of multi lateral (C) Foreign exchange speculation. trading system are : I. Non-Discrimination (D) Foreign exchange arbitrage. II. Reciprocity III. Protectionism 15. In which terms a unit of SDR was IV. Domestic Safeguards originally denominated ? Select the right code from the list (A) The world marked value of given below : U.S. Dollar (A) I, II and IV are correct. (B) The gold value equivalent of (B) II and III are correct. one US Dollar (C) II, III and IV are correct. (C) The Pound-Sterling (D) I and II are correct. (D) The German Mark1. A demand curve, which is parallel to 4. Which of the following is not the horizontal axis, showing quantity. relevant in case of Sweezy's has the price elasticity equal to oligopoly model ? (A) A price cut by a firm is (A) Zero followed by the price cut by the (B) Infinity rival firms. (C) Less than one (B) Price hike is not followed by the rival firms. (D) One (C) Firms do not react to price change made by one of the 2. Although a monopolist can charge firms. any price he likes, but does not Firms react to all kinds of price charge a higher price than his changes made by the rival. equilibrium price because 5. Quasi rent is the reward to a factor of (A) higher price means fall in total production which is revenue. (A) Economic rent in the short run (B) higher price can be charged but transfer earnings in the long only on that segment of firm's run. demand curve which is price (B) Transfer earnings in the short run. inelastic implying that the (C) Transfer earnings both in the marginal revenue will be short and long run. negative. (D) Economic rent both in the short and long run. (C) it is inconsistent with profit maximization goal under 6. According to the Loanable Funds monopoly. Theory, the rate of interest is a function of (D) marginal cost will be negative over the relevant range of (A) Investment (B) Desire to hoard money output. (C) Quantity of money (D) All the above 3. Which of the following conditions 7. specify the least cost-output While analyzing the marginal productivity theory of distribution, combination ? Clark gave more emphasis on. (A) P /P = MRTS (A) Demand for Labour (B) P /P = MP, /MP Supply of Labour (C) Both Demand as well as (C) MP /MP, = dL/dK Supply of Labour (D) All the above (D) Profit Maximization