economics:

34. Under a managed floating exchange 37. A sudden shift from import tariffs to rate system, the nation's monetary free trade may induce short term authorities intervene in foreign unemployment in exchange markets to (A) import competing industries (A) smooth out short-run and long- (B) industries that are only run fluctuations in exchange exporters rates (C) industries that sell domestically (B keep exchange rates fixed as well as export among a group of nations (D) industries that neither import (C) smooth out short-run nor export fluctuations in exchange rates 38. The immediate cause for the collapse (D) keep exchange rates flexible of the Bretton woods system was (A) the expectation that the U.S.A. 35. Euro currency market is a part of a would soon be forced to larger global market known as devalue the dollar Eurodollar market. B) the massive flight of liquid (A) Above statement is correct. capital from the U.S.A. (B) Above statement is not correct. (C) the attempt by three small (C) Above statement is partially European Central Banks to convert part of their dollar correct. holding into gold at the Federal (D Above statement is partially Reserve Bank. incorrect. (D) All of the above 36. Match the following : 39. A feasible effect of international List - I List - II trade is that (A) a monopoly in the home market WTO 1. Provide finance to becomes an oligopoly in the correct world market disequilibrium in BY an oligopoly in the home balance of market becomes a monopoly in payments. the world market b. IMF 2. Generally forbids (C) a purely competitive firm in the the use of home market becomes an quantitative oligopolist restrictions in (D) a purely competitive firm in the trade. home market becomes a c. SAARC 3. Sanction of soft monopolist loans 40. The European Union has achieved all d. IDA Promotes trade of the following, except among South (A) adopted a common fiscal Asian Countries policy for member nations Codes : (B) established a common system a b of agricultural price supports (A) (C) disbanded all tariffs between its (B) member countries (C) (D) levied common tariffs on (D) products imported from non-27. Assertion (A) : Solow model is a 31. Debt obligations of Government of major improvement over India (Government liabilities) Harrod-Domar Model. I. State Provident Funds Reason (R) : Solow built a model of II. Small Savings long run growth without the III. Reserve Funds and Deposits assumption of fixed proportion IV. Consolidated Fund of India in production. Codes : Codes : (A) (A) is correct, but (R) is not the (A) II and III are correct. correct reason of (A). (B) I. II and III are correct. (B) (A) is not correct, but (R) is correct. (C) II, III and IV are correct. (C) Both (A) and (R) are correct. (D) I. III and IV are correct. (D) Both (A) and (R) are not correct. 32. Identify the chronology of the 28. The concentrations effect explained following Committees on tax reforms Peacock-Wiseman hypothesis in India : implies 1. Committee on Taxation of (A) public expenditure does not Agricultural Income and increase in smooth and Wealth continuous manner II. Kaldor Proposal for Tax (B public expenditure increases the Reform in India necessity of increased revenue III Taskforces Direct and (C) the Central Government's Indirect Taxes economic activity to grow IV. Direct Taxes Administration faster than that of subnational Governments Enquiry Committee (D) absolute level of public Codes : expenditure increases (A) II, I, IV, III (B) II, IV. I, III (C) II, III, I, IV (D) I, III, IV, II 29. A tax imposed upon monopoly profits (A) can be shifted forward 33. Which of the following are the role (B) can be shifted backward of Finance Commissions in India ? (C) can be shifted both forward and I. To make recommendations on backward the distribution of tax proceeds (D) cannot be shifted between Centre and States. II. To make Recommendations on 30. The plan expenditure on Revenue levying, removing or Account of the Union Government restructuring of taxes. includes III. To recommend Grants-in-aid Economic Services Social and community services under Article 275 of the II. III. Grants-in-aid to States and Constitution Union Territories IV. To recommend plan and other IV. Loans and Advances to finance grants under Article 282 of the public enterprises Constitution Codes : Codes : (A) I and II are correct. (A) I and II are correct. (B) I, II and III are correct. (B) I and III are correct. (C) I, II and IV are correct. (C) I. III and IV are correct. (D) I, II, III and IV are correct. (D) All are correct.MPK 24. Arrange the "Structural Development 20. A technical change is neutral if MP Processes" in a sequential order : 1. Resource Allocation Processes 11. Accumulation Process remains unchanged at constant III. Distributional Processes IV. Demographic Processes ratio : Codes : (A) Harrod (B) Hicks (A) L IV, II, III (B) II, I, IV, III (C) Solow (D) Kaldor (C) III, II, I, IV (D) IV. III. I. II 25. Match the items in List - I with 21. Concept of disembodied technical List - II : change is associated with List - I List - II Gunnar I. a. MP, is zero in Abramovitz II. Kaldor Myrdal III. Kendrick overpopulated IV. Solow economies (A) I and II (B) III and IV b. Two gap model 2. J.E. Mead (C) I, III and IV (D) II, III and IV c. Critical growth 3. Arthur rate Lewis 22. Joan Robinson's growth model deals d. Backwash effects 4. Hollis Chenery & with others I. Desired growth rate Codes : II. Possible growth rate III. Natural growth rate (A) IV. Warranted growth rate (B) (C) 2 Codes : w t (D) (A) I and III (B) II and IV (D) III and IV 26. Match the items in List - I with (C) I and II List - II : List - I List - II 23. Assertion (A) : To Marx, it is a. Learning by doing 1. Kaldor surplus labour that lead to b. Biased Technical 2. Karl Sax capital accumulation. Progress Reason (R) : The difference between c. Co-efficient of 3. Kenneth actual labour and subsistence sensitivity of J. Arrow labour that a labourer puts in income distribution d. Theory of 4. Joan for which he receives nothing Demographic Robinson is surplus labour. Transition : Four Codes : stages of (A) (A) is correct, but (R) is not the Population growth correct reason for (A). Codes : (B) (A) is correct and (R) is incorrect. (A) (C) Both (A) and (R) are correct. (B) (C) (D) Both (A) and (R) are incorrect. (D)13. Assertion (A) : The individual 17. Given that the increment in aggregate speculative demand for money demand (Y) per unit of time, t, is is a discontinuous one. given by the equation Reason (R) : Because the aggregate [aY] 1 speculative demand for money function is smooth downward Lard =1 - MPC Lar sloping with liquidity trap at and the increment in supply of output extremely low interest rates. is represented by the equation Codes : aY ok (A) Both (A) and (R) are correct at =02 and (R) is the correct explanation of (A). Where MPC = Marginal Propensity (B) Both (A) and (R) are correct to Consume, al ok but (R) is not the correct at di are change in explanation of (A). investment & capital stock (C) (A) is correct, but (R) is incorrect. respectively, per unit of time, then (D) (A) is incorrect, but (R) is correct. the capacity creating effect or Domar 14. Transaction Cost is also called effect of investment following goods (A) Shoe Leather Cost market equilibrium equals (B) Menu Cost (C) Opportunity Cost of holding (A) G (1 -MPC) (B) G(1-MPC) cash (D) All of the above (C) - (1 -MPC) (D) 8. 1-MPC 15. Given the consumption function, C =0.8Y, and the investment function 18. When the aggregate supply schedule I = 102 - 0.2i, then the IS-curve is is positively sloped, continuous (A) Y = 500 - 101 (B) Y = 450- i increases in the nominal money (c) Y =510-1 (D) Y = 505 - 2 supply, ceteris parilus, result in (A) No change in the price level 16. Match the premise given in List - I and proportional increases in with that in List - II : real output. List - I List - II (B) No change in real output and a. Price expectations 1. Okun's law proportional increases in the are static price level. (C) b, Price expectations 2. Phillips An increase in the price level and real output. are adaptive Curve (D) An increase in the price level C. People do not 3. Natural Rate and a decrease in real output. make systematic of un- errors employment 19. "Golden Age" as per Mrs. Joan hypothesis AN d. Deviations of 4. Rational Robinson is (where N is growth output from its expectations AK natural rate is hypothesis rate of population and y is growth inversely related to the deviation of rate of capital) unemployment AK rate from its (A) K natural level AN AK Codes : (B) K . . (A AN (B) (C) AK N K (C) (D) None of the above7. The oligopoly model in which the . Let the consumption function in life businessman assumes that his cycle hypothesis be represented as competitors output are fixed and C= Wey simultaneously decide how much to produce is where e = number of post retirement years of living. (A) Cournot oligopoly model (B) Stackelberg oligopoly model y = average annual income during the working period (C) Chamberlin's oligopoly model Then Marginal Propensity (D) Bertrand oligopoly model Consume (MPC) is represented by the equation : 8. According to Game Theory, if (A) wte (Zy) increased advertising, raises costs more than revenues and the profits of (B) (w te) lay both firms decline, we have a (A) Positive-sum game (C) (wte) (B) Non zero-sum game (D) None of the above (C) Zero-sum game (D) Negative-sum game 12. Complete the statements given in List - I with there given in List - II : List - I List - II 9. Arrows impossibility theorem a. Instantaneous 1. MPC is implies adjustment of smaller income with (A) Any social decision rule should investment not violates the requirements of spending rational choice. occurs in (B) Any social decision rule must b. Consumption 2. increase in lags income by investment violate atleast one of the one period in expenditure requirements of rational choice. is once-for- all (C) Any social decision rule must C. Value of 3. state violate all the requirements of investment multiplier rational choice. multiplier is (D) It is impossible to violate social zero when d. Major portion 4. dynamic decision rules. of multiplier is multiplier realized in fewer periods 10. 'Bandwagon effect" is found in when (A) Relative Income hypothesis Codes : (B) Permanent Income hypothesis (C) Life cycle Hypothesis (B) (D) Absolute Income hypothesis (C) (D)1. Which of the following are the basic 4. Assertion (A) : Harvey Leibenstein assumptions of cardinal utility asserted that marginal analysis ? conditions required for Utility is a measurable and economic efficiency are not quantifiable entity. usually satisfied in practice. II. Marginal utility of money Reason (R) : People are not fully changes with changes in real motivated towards income. III. maximization or minimization. Utilities derived from various Codes : goods are inter-dependent. IV. The use of introspective (A) Both (A) and (R) are correct correct method and (R) is the in judging the behaviour of marginal utility. explanation of (A). Codes : (B) (A) is correct, but (R) is not (A) I and II are correct. correct. (B) I and III are correct. (C) Both (A) and (R) are correct. (C) I and IV are correct. but (R) is incorrect explanation (D) I, III and IV are correct. of (A). (R) is correct, but (A) is incorrect. 2. Engel Curve denotes (A) various amounts of a good 5. A graphical illustration used to which a consumer would be explain efficiency conditions and willing to purchase at various demonstrates how the allocations of price levels. some goods and resources can be (B) various amounts of a good improved through exchange is called which a consumer would be (A) production possibility curves willing to purchase at various (B) social indifference curves income levels. (C) Edgeworth box diagram (C) various amounts of a good (D) Phillips curve purchased when the price of its substitutes tend to rise. 6. Match the following : (D) the relationship between List - 1 List - II income effect and substitution . A double 1. A. Bergson effect. Kaldor-Hicks Test 3. A producer is said to be operating b. Compensation 2. K.J. Arrow with excess capacity (A) when he produces an output Principle greater than that given by the C. Social 3. T. Scitovsky minimum Average Total Cost Welfare (B) when he produces an output function greater than at given by the d. Impossibility 4. Kaldor- maximum Average Total Cost theorem Hicks (C) When he produces an output Codes : equal to that given by the minimum Average Total Cost (A) (D) When he produces an output (B) smaller than that given by the (C) Minimum Average Total Cost (D)