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38. State the order of the appointment of 42. List - I List - II the following as chairman of Finance a. Psychological Law 1. Irving Commission : of Consumption Fisher a. K.C. Neogy 2. J.M. Keynes b. K. Brahamanand Reddy b. Time preference C. N.K.P. Salve theory of interest d. A.K. Chanda c. Public Choice 3. Mundell and Codes : View Fleming (A) a, c, b, d (B) a, d, b, c d. Open Economy 4. Gorden (C) a, c, d, b (D) a, b, d, c IS-LM model Tullock 39. Indicate the sequence of the Codes : following in terms of the implementation. a. Income Tax (A) 3 b. Expenditure Tax (B) 4 AW C. Value Added Tax () NW d. Fringe Benefits Tax Codes : (D) 1 3 (A) a, c, b, d (B) a, b, c, d (C) b, c, d, a (D) c, d, a, b 43. List - I List - II 40. Determine the order in which the a. Mid-day meal 1. 2006 following were developed scheme a. Fisher's F test of significance of b. Implementation 2. 1995 differences between the means of of M-NREGA more than two samples. b Gosset's t-test of difference c. Cash Reserve 3. Finance between the means of two Ratio Commission samples. d. Divisible Taxes 4. Reserve Bank Pearson's correlation coefficient. of India Spearman's rank correlation Codes : coefficient. Codes : (A) a, b. c. d (B) b, a, c, d (A) (C) c, b, a, d (D) d, a, b, c (B) 2 Q. Nos. 41-50 : Read the following (C) AN questions and match the correct pair (D) 3 N from List - I and II. Use the codes given below for answering : 41. List - 1 List - II 44. List - I List - II a. Kinked demand 1. William a. Monetary Policy 1. Tax Rate curve hypothesis Baumol b. Trade Policy 2. Margin Money b. Sales maximization 2. Paul model of oligopoly Sweezy c. Credit Policy 3. Imports and c. Social Welfare 3. Adam Exports Criterion Smith d. Fiscal Policy 4. Bank Rate d. Law of Invisible 4. Bergson Codes : hand Codes : (A) 4 NNWO (A) (B) 4 (B) NAWNA AW-WO -NNA (C) 3 w (D (D) 2 Paper-II 12 D-01-1230. Assertion (A) : In the following 33. Identify the correct chronological regression equation order of the following : Y = a + bX, 'a' shows the a. Keynes' consumption function autonomous value of Y. b. Life Cycle hypothesis Reason (R) : If X = 0, Y = a holds. C. Relative income hypothesis Hence, a is the minimum value of Friedman's permanent income Y which is independent of any hypothesis influence of X on Y. Codes : Codes : (A) d, b, a, c (B) b, a, c, d (A) Both (A) and (R) are correct and (C) a, c, d, b (D) c, d, b, a (R) is the true explanation of 34. Identify the correct chronology of (A). stages of Marxian model of (A) is correct, but (R) is not the economic development. correct explanation of (A). a. Capitalist crisis (A) is correct, but (R) is not b. Capital accumulation correct. C. Surplus value (D) (A) is incorrect, but (R) is d Materialistic interpretation of correct. history Q. Nos. 31-40 : Read the questions and Codes : select the correct sequence from (A) b, a, c, d (B) c, d, b, a the codes given below : C) d, c, b, a (D) c, b, a, d 35. The sequencing process of Harrod's 31. Identify the order of chronological model of development is development of the theory of a. Natural growth rate demand b. Warranted growth rate a. Marshall's theory of demand C. Actual growth rate b. Indifference curves d. Divergence C. Revealed preference theory Codes : d Weak Preference ordering (A) d, c, b, a (B) c, b, a, d theory of demand. (C) b, a, d, c (D) a, d, c, b Codes : 36. Arrange the following summits of (A) a, c, d, b (B) d, b, a, c SAARC members in order in which (C) a, c, b, d (D) a, b, c, d these were organized : a. New Delhi b. Bangalore 32. Identify the correct chronological C. Islamabad d. Kathmandu order of the following theories : Codes : (B) a, b, c, d a. Cambridge version of quantity (A) a, c, d, b )b, d, c, a (D) c, b, a, d theory of money. Fisher's version of quantity 37. Arrange the structure of balance of b. theory of money. payments accounts in which these Tobin's theory of demand for items appear : C. money. a. Capital account Baumol's theory of demand for b. d. Errors and omissions C. Current account inventory. d. Codes : Official settlements account (A) c, d, a, b (B) b, a, d, c Codes : (A) a, b, c, d (B) c, a, d, b (C) d, a, b, c (D) a, b, c, d (C) d, c, b, a (D) c, d, a, b Paper-II 10 D-01-1224. Assertion (A) : Use of goods and 27. Assertion (A) : K/L will adjust services from which one can be through time to the equilibrium excluded are pure private goods. value of the ratio. Reason (R) : Such goods and services are not provided free by the State. Reason (R) : Technical coefficients of Codes : production are fixed. (A) Both (A) and (R) are correct and Codes : (R) is the correct explanation of (A) Both (A) and (R) are correct, but (A). (R) is not the correct explanation (B) Both (A) and (R) are correct, but of (A). (R) is not the correct explanation of (A). (B) Both (A) and (R) are correct and (C) (A) is correct, but (R) is incorrect. (R) is the correct explanation of (D) (A) is incorrect, but (R) is correct. (A). 25. Assertion (A) : 'A country is poor (C) (A) is correct, but (R) is because it is poor'. incorrect. Reason (R) : Income of a poor country (D) (A) is incorrect, but (R) is is low, so its savings and correct. investment are low. Low investment limits its productive 28. Assertion (A) : Investment has a capacity which leads to low output demand effect. and income. Codes : Reason (R) : Investment augments the (A) Both (A) and (R) are correct, but productivity and income in the (R) is not the correct explanation economy. of (A) Codes : (B) Both (A) and (R) are correct and (A) Both (A) and (R) are correct and (R) is the correct explanation of (R) is the correct explanation of (A). (C) (A) is correct, but (R) is (A). incorrect. (B) Both (A) and (R) are correct, but (D) (A) is incorrect, but (R) is (R) is not the correct explanation correct. of (A). 26. Assertion (A) : All historical events (C) (A) is correct, and (R) is not correct. are the result of a continuous (D) (A) is incorrect and (R) is correct. economic struggle between different classes and groups in a 29. Assertion (A) : Agriculture is the main society. source of livelihood of people in Reason (R) : This struggle is because India. of the conflict between the mode of Reason (R) : Measures for agricultural production and the value attached to the roles of different agents of development should be undertaken. production. Codes : Codes : (A) Both (A) and (R) are correct and (A) Both (A) and (R) are correct, but (R) is the correct explanation of (R) is not the correct explanation (A). of (A). (B) Both (A) and (R) are correct, but (B) Both (A) and (R) are correct and (R) is the correct explanation of (R) is incorrect explanation of (A). (A). (C) (A) is correct, but (R) is (C) (A) is correct, but (R) is incorrect. incorrect. (D) (A) is incorrect and (R) is (D) (A) is incorrect, but (R) is correct. correct. Paper-II D-01-1217. Factor endowment theory is also Q. Nos. 21-30 : Read the following known as questions and select the right a. Modern theory of international combination of Assertion (A) and trade. Reason (R) from the codes given below : b. Classical theory of 21. Assertion (A) : There is a natural international trade. tendency to collude under C. Reciprocal demand theory. oligopoly. Factor proportions theory of Reason (R) : Inter-dependence of international trade. firms in oligopolistic markets. Codes : Codes : (A) Both (A) and (R) are correct, but (A) a and b (B) band c (R) is not the correct explanation (C) a and d (D) c and d of (A). 18. Most important theory of increasing (B Both (A) and (R) are correct, and public expenditure is associated with (R) is the correct explanation of (A). a. Adolph Wagner's hypothesis (C) (A) is correct, but (R) is b. Critical limit hypothesis incorrect. C. Administrative efficiency (D) (A) is incorrect, but (R) is hypothesis correct. d. Stability of income hypothesis 22. Assertion (A) : In short run, the Codes : marginal cost of output is the cost (A) a and b (B) a and c of additional labour and materials (C) a (D) c and d used in production. Reason (R) : Materials and labour 19. Under the Brettonwood system, the used in production alone vary in long term development assistance short run. was to be provided by Codes : (A) (A) is correct and (R) is a. IBRD incorrect. b. IDA (B) (A) is incorrect, but (R) is C. IMF correct. d. All the above (C) Both (A) and (R) are correct Codes : and (R) is the correct (A) a and b (B) a, b, c explanation of (A). (C) b and c (D) d (D) Both (A) and (R) are incorrect. 20. The Planning Commission of India 23. Assertion (A) : Post reform liberal trade policies have stimulated has recently announced the poverty India's growth. line as Reason (R) : Private enterprise got a. 7 42 per day per person for opportunities to contribute to urban area. growth of Indian manufacturing b. 7 26 per person per day for industries. rural areas. Codes : (A) Both (A) and (R) are correct, and C.