Economics 404
42. An over-valued currency will have which of the following effects : (1) Make exports and imports equally costly (2) Make exports and imports equally cheaper Make imports relatively more costly (4) Make imports relatively cheaper. 43. According to Pribisch-Singer thesis which of the following is true ? (a) International trade has increased international inequalities and has retarded the development of developing countries. (b) The strategy of import substitution has resulted in misallocation of resources within a developing country. Codes : (1) Both (a) and (b) are true. (2) Only (a) is true. (3) Only (b) is true (4) Both (a) and (b) are not true. 44. Assertion (A) : Marshall-Lerner condition should be fulfilled if devaluation is to be successful. Reason (R) Devaluation makes exports costly and imports cheaper. Codes : (1) Both (A) and (R) are correct (2) Both (A) and (R) are not correct (3) (A) is correct but (R) is not correct explaination of (A) (A) is correct and (R) is the correct reason of (A) 45. Productivity changes in domestic export industry are incorporated in which types of terms of trade ? (1) Income terms of trade (2) Single factoral terms of trade Gross barter terms of trade (4) None of the above. 46. The proposed GST bill will subsume : (1) Entertainment tax (2) Value-added tax (3) Union excise duty (4) All of the above. 47. Select the pair of economists, who first gave the canons of taxation and public expenditure : (1) R. N. Bhargav and R. A. Musgrave (2) Adam Smith and Findlay Shirras (3) A. C. Pigou and David Ricardo (4) A. R. Prest and Ursula K Hicks . Following are some of the effects of parallel economy in India : (a) Loss of revenue to the Government (b) Greater burden on honest tax-payers (c) Results in equitable distribution of wealth and income (d) Encouragement to non-essential items of conspicuous consumption. Find the correct combination from the codes given below : (1) (a), (b) and (c) (2) (a), (b) and (d) (3) (b), (c) and (d) (4) (a) and (d) J-0115 14 Paper-III35. Match List - I with List - II and select the correct answer : List - I List - II (a) Supply side of international trade (i) David Ricardo (b) Demand side of international trade (ii) Bastable and Alfred Marshall (c) Opportunity cost of international trade (iii) G. Haberler (d) Real cost theory of International trade (iv) Alfred Marshall and Edgeworth Codes : (a) (b) (d) (1) (i) (iv) (ii) (iii) (2) (i) (iv) (iii) (ii) (3 ) (iv) (i) (ii) (iii) (4) (iv) (i) (iii) (ii) 36. Justice in taxation is best ensured by applying the principle of : (1) Equal marginal sacrifice (2) Equal proportional sacrifice (3) Equal absolute sacrifice (4) None of the above. 37. All the funds which belong to Government go to : (1) Public Account (2) Consolidated fund (3) Contigency fund (4) Revenue Account 38. During the period 2004 and 2013, India's share in global exports increased from : (1) 0.8 percent to 1.7 percent 1.0 percent to 2.5 percent (3) 1.0 percent to 1.5 percent (4) 1.2 percent to 2.1 percent 39. 'Gender budgeting' means : (1) a seperate budget for women (2) a tool for gender empowerment (3) a tool for gender discrimination (4) a seperate budget for men and women. 40. Which sector in India has developed breaking the Colin Clark sequence of development ? (1) Export Sector (2) Primary Sector (3) Secondary Sector (4) Service Sector 41. Match List - I with List - II by selecting correct codes given below : List - I List - II (a) Liquidity trap (1) M. Friedman (b) Demonstration effect (ii) A. C. Pigou (c) Permanent Income Hypothesis (iii) J. Duesenberry (d) Wealth Effect (iv) J. M. Keynes Codes (a) (c) (d) (1) (iv) (i) (ii) (2) 13013 (iv) (iii) (iv) (1) (iii) (iv) (ii) J-0115 12 Paper-III28. Which among the following production function will exhibit both Hicks and Harrod technical progress ? Leontieff production functions (2) Cobb - Douglas production functions (3) ACMS production functions (4) None of the above 29. The concept of X-efficiency was formulated by : (1) H. Singer (2) H. Leibenstein (3) R. Rodan (4) C. Kindleberger 30. Which among the following items has the largest value of exports in India during 2013-15 ? Engineering goods (2) Garments (3) Gems and Jewellary (4) Agro-processing exports. 31. Which among the following is not correctly matched ? (1) Golden age Mrs. Joan Robinson (2) Golden rule of accumulation Edmund Phelfs (3) Steady state growth Robert Solow (4) Low income equillibrium trap T. R. Malthus 32. Who among the following economists is not associated with the Dependency Theory ? (1) S. Amin (2) P. Baron (3) Raul Prebisch ) A. G. Frank 33. Which one of the following is not a feature of neoclassical economics ? (1) Flexible wages and interest rates (2) Capital in physical and financial form (3) Perfect Competetion (4) Neutrality of money 34. Renewed focus to control increasing population is required from the viewpoint of women because : Family planning programme needs to be reoriented keeping in view the reproductive health rights of women. (2) Increased budget needed to provide quality services to women. (3) Increased number of women councellers needed for health and youth friendly services. ( 4) All of the above. J-0115 10 Paper-III22. Match List - I with List - II and select the correct answer from the codes given below : List - 1 List - II (a) C=40+0.7y (i) LM function (b) 1=90-6 i (ii) IS function (c) 0.3y -20i-160=0 (iii) Consumption function (d) 0.3y + 20i-150 =0 (iv) Investment function Codes : (a) (b) (c) (d) (1) (iii) (iv) (1) (2) (iv) (iii) (ii) (1 (iv) (i (ii) (ii) (4) (iii) (iv) (ii) 23. In a linear programming problem, an optimum solution will be : (1) One of the basic solutions (2) One of the feasible solutions (3) One of the basic feasible solutions (4) One of the non-basic solutions 24. Human capital formation can be accelerated by : (1) Promoting skill development programmes (2) Providing medical and health facilities in both rural and urban areas. (3) Strengthening hardware and software industry. (4) (1) and (2) above. 25. What is the correct sequence for the evolution of society according to Karl Marx ? (a) Socialism (b) Slavery (c) Feudalism (d) Capitalism Codes : (1) (a), (b), (c) and (d) (2) (d). (c). (b) and (a) (3) (b). (c). (d) and (a) (4) (c). (d), (b) and (a) 26. The unbalanced growth strategy is based on : (1) External and Internal economies (2) Spread and backwash effects (3) Increasing and constant returns to scale (4) Backward and forward linkages 27. Financial dualism theory was developed by : (1) B. Higgins (2) H. Myint (3) W. A. Lewis (4) R. Nurkse J-0115 Paper-III17. Which of the following is an inferior good ? (1) Kerosine (2) Cooking gas (3) Electricity (4) Chemical fertilizers 18. Pareto optimality in production is gained in which of the following conditions ? (1) MRTS X LK = MRTS LK (2) MRS = MRS XY K MPL _ MPK (3) MRS = MRT L XY XY (4) PL PK 19. Match List - 1 (consumer behaviour approach) with List - II (Economist with whom it is associated) and select the correct answer using the codes given below : List - I List - II (a) Cardinal Approach (i) Von Newman Morgenstein ( b ) Indifference curve (ii) Alfred Marshell (c) Revealed Preference Approach (iii) J. K. Hicks (d) Neo-utility theory of risky choices (iv) P. A. Samuelson Codes : (a) (b) (c) (d) (ii) (iii) (i) (iv) 121 (iii) (ii) (i) (iv) (3) (ii) (iii) (iv) (i) (4) (iii) (ii) (iv) (1) 20. Which one of the following is the correct concept of Natural rating unemployment ? (1) Frictionally and structurally unemployed (2) Frictionally and cyclically unemployed (3) Structurally and cyclically unemployed (4) Frictionally, cyclically and structurally unemployed 21. Consider the following statements : (a) Points to the left of the IS curve indicate excess supply of goods. (b ) Points to the right of the LM curve indicate excess demand for money. (c) Points to the right of the IS curve indicate excess supply of money. (d) Points to the right of the IS curve indicate excess supply of goods. Of these statements : (1) (b) and (d) are correct (2) (a) and (c) are correct (3) (b) and (c) are correct (4) (c) and (d) are correct J-0115 Paper-III7. Monetary expansion can still be effective in getting out of liquidity trap if it's combined with : (1) Restrictions on bank loans (2) Increased taxes (3) Contractionary fiscal policy (4) Expansionary fiscal policy 8. If a linear consumption function passes through the origin it means : )APC > MPC (2) APC
