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22. Fei-Ranis's theory of economic development is based on (1) dualistic approach to development (2) presence of disguised unemployment (3) importance of agricultural development (4) All of the above 23. Andre Gunder Frank, a major dependency theorist suggests that the following economic activities have contributed to underdevelopment (i) Replacing indigenous enterprises with technologically more advanced, global. subsidiary companies. (ii) Closing the economy to trade with, and investment from, developed countries. (iii) Workers migrating from villages to foreign dominated urban complexes. (iv) Forming an unskilled labour force to work in factories and mines and on plantations. Choose the correct answer from the codes given below : Codes : (1) (1), (iii) and (iv) (2) (i), (ii) and (iii) (3) (ii), (iii) and (iv) (4) (1), (ii), (iii) and (iv) 24. In a Harrodian economy, ICOR is 4.5 : 1, population growth is 2% per annum, and the investment rate is 27%. Hence the annual growth of per capita will be : (1) 2.5 % (2) 9%% (3) 6% (4) 4% 25. Which among the following is not correctly matched ? Author Book (1) M. Friedman Capitalism and Freedom (2) Amartya Sen Argumentative Indian (3) Joseph Stiglitz - In Defense of Globalization (4) Ruchir Sharma - The Rise and Fall of Nations 26. Which among the following statements is not true for the Golden Age equilibrium in the growth model of Mrs. Joan Robinson ? (1) Rate of profit tends to rising. (2) Level of real wages rise with output per worker. (3) Technical progress is neutral. (4) Population is growing at a steady rate.16. According to Robinson-Uzawa theorem, steady state growth is possible if the technical progress is : only Hicks neutral (2) only Harrod neutral (3) only Solow neutral (4) Both Hicks and Harrod neutral 17. Which one of the following is not an assumption of permanent income hypothesis ? (1) Transitory income can be both positive and negative. (2) Permanent income depends on human and non-human wealth. (3) Transitory consumption can be both positive and negative. (4) Average propensity to consume is greater than marginal propensity to consume. 18. The Accelerator model predicts that changes in investment are determined by the changes in (1) Interest (2) Output (3) Capital (4) Inventory 19. Which among the following statements are true for Schumpeter's theory of economic development ? I. Development is evolutionary. II. Development is financed by real savings. III. Capitalism keeps its character intact overtime. Of the above which statement(s) is/are true ? Answer from the code below : Codes : (1) Only I (2) Only I and II (3) All the above (4) None of the above 20. Who among the following has not given his model based on the concept of unlimited supply of labour (1) D.W. Jorgenson (2) Ranis-Fei (3) W.A. Lewis (4) Gunnar Myrdal 21. Which aspect of economic development did Gunnar Myrdal concentrate upon ? (1) Capital scarcity (2) Human resource scarcity (3) Regional inequalities (4) Population exploitation11. In the adjacent diagram, which of the following effects will alter the Aggregate Demand Curve AD ? Price level AD X Income Trade effect (2) Liquidity effect (3) Wealth effect (4) All of the above 12. Match List - I with List - II : List - I List - II a. Keynes 1. Interest is real phenomenon. b. Irving Fisher ii. Interest is non-monetary phenomenon. C. Wicksell iii. Interest is both monetary and non- monetary phenomenon. d. Classical Economist iv. Interest is monetary phenomenon. Select the correct answer from the codes given below : Codes : (1) iv ii (2) (3) iv (4) ii iv 13. 1973 oil crisis also triggered a wide spread economic crisis in USA and some European nations. In this context which statements are true ? (1) It led to disillusionment with established policies based on Keynesian economics. (2) There emerged a malady known as stagflation. (3) New classical economics emerged as a challenge to Keynesian economic ideas. (4) All of the above are true . 14. As per IS-LM framework, an increase in government expenditure will result in : (1) increase in income and interest rate both. (2) increase in income only. (3) decrease in investment and interest rate both. (4) decrease in income and interest rate both. 15. Which of the following can be considered as leakages in the force of the multiplier ? (1) Higher propensity to import (2) Higher marginal propensity to save (3) Both (1) and (2) above (4) Neither (1) nor (2) aboveLabour supply before Real immigration wage W Labour supply after immigration Employment The gain in profit income from an increase in immigration according to this diagram is : (1) the area BDLL (2) the area of WBDW (3) the areas WBFW and FDL'L together (4) the areas WBDW' and FDL'L together 7. The demand for rare paintings, and rare stamps etc. is explained by which among the following effect ? (1) Snob effect (2) Bandwagon effect (3) Veblen effect (4) None of the above 8. A market is said to be economically efficient if it maximises (1) consumer surplus (2) producer surplus (3) aggregate of consumer and producer surplus (4) None of the above 9. Who among the following economists are associated with the concept of Quasi rent ? I. A. Marshal II. J. Robinson III. D. Ricardo Answer from the code below : (1) Only I and III (2) I and II (3) All the three (4) Only III 10. In the adjoining diagram, which of the line represent law of returns ? Capital B -X D Iahour (1) OA (2) BC (3) DE (4) Both (2) and (3) above1. Which among the following is/are true for a Cartel ? I. It aims at maximising of individual firm's profit. II. It decides the total output in the industry to which Cartel represents . III. It does not fix the price at which members sell their output. Answer from the code below : (1) All are true. (2) I and II are true. (3) Only II is true. (4) Only I and III are true. 2. Why does demand curve have a negative slope ? I. Due to income effect only II. Due to substitution effect Answer from the code below : (1) Both I and II (2) Only 1 (3) Only II (4) Neither I nor II 3. In the entry prevention model of Bain, firms charge premium over (1) Long period competitive price (2) Short period competitive price (3) Lowest average cost (4) None of the above 4. Which among the following is not well matched ? Goods Nature (1) Fishing in the large lake Non-exclusive but rival (2) Air Non-exclusive and non-rival (3) Use of a light house Rival (4) Stock of washing machines Exclusive 5. The slope of the production possibility curve is the (1) marginal rate of exchange (2) marginal rate of substitution (3) average rate of transformation (4) marginal rate of transformation