Economics.
Briefly explain
34. If the central prediction of the growth model of Solow is valid then : (1) Per capita real GDP difference among nations will increase (2) Per capita real GDP difference among the nations will diminish (3) Economic freedom as measured by Heritage Foundation Index will decrease (4) Population growth rate in rich countries will increase 35. Given the consumption function, C=0.75 Y and the investment function, I= 110-0.25 i, then the equation of the IS function will be : (1) Y= 110-0.75 i (2) Y=440-1 (3) Y=500 - 0.25 i (4) Y = 400 -0.75 i 36. In which of the following sectors, the employment elasticity has been estimated to be greater than one during the period (2004 - 05 to 2009 - 10) : (1) Agriculture (2) Construction (3) Manufacturing (4) Mining and Quarrying 37. Arrange the following in the chronological order : (a) Mahalnobis model (b) Introduction of rolling plan (c) Declaration of plan holiday (d) Inclusive growth strategy Select the answer from the code below : (1) (b), (a), (c), (d) (2) (a), (c), (b), (d) (3) (c), (a), (b), (d) (4) (a), (c), (d), (b) 38. Which amongst the following statements are true in relation to Indian economy during the period 2014-16 ? (1) Exports have been buoyant (2) Private capital investment happened at brisk pace (3) Both (1) and (2) are true Neither (1) nor (2) is true 39. The code used under GST for classification of goods is called : (1) NIC (2) HSN (3) GSTN (4) ITC N-00117 14 Paper-II 40. If CPI based inflation rate in a country is given as : Year 2017 2016 2015 2014 2013 Inflation rate (%) : 2 5 7 This trends will be described as : (1) Disinflation (2) Deflation (3) Creeping inflation (4) Stagflation27. The ability - to - pay principle of taxation is logically most consistent with the normative notion of : (1) tax neutrality (2) horizontal equity (3) value - added taxation (4) vertical equity 28. Principle of maximum social advantage is concerned with : Taxation only (2) Public expenditure only Public debt only (4) Both taxation and public expenditure 29. Consider the following statements about optimal tariff : (a) The beneficiary country is a large country in the world market for a particular good. (b) A deviation from optimal tariff will lead to fall in welfare. Of the above, which statement is correct ? Choose the answer from the code below : (1) Both (a) and (b) are correct (2) Neither (a) nor (b) is correct (3) Only (a) is correct (4) Only (b) is correct N-00117 10 Paper-II 30. Which of the following is a distinctive implication of the New Trade Theory developed by Melitz as different from the New Trade Theory ? (1) Trade increases the average productivity as more productive firms expand (2) Helpful state intervention (3) Trade encourage R & D and lead to new products (4) A country may both export and import the goods from the same industry 31. The conjecture that inequalities of income first increase with development and then decrease with further development also known as 'Inverted U' hypothesis has been : (1) Supported by all empirical studies (2) Supported mainly by cross section studies and not by time series studies (3) Supported by time series and not by cross section studies Generally repudiated by empirical studies 32. The ultimate effect of the "invisible hand' of Adam Smith is that in a competitive economy everyone : (1) benefits if each acts in his/her own interest (2) will increase their profits in a free market (3) should act to maximise economic growth (4) should act to promote the public interest 33. Match List - I with List - II and select the correct answers from the code given below : List - I List - II (investment criteria) (economists) The time series criterion (i) Otto Eckstein (b) The social marginal productivity ) A.K. Sen criterion (c) The marginal growth contribution (iii) A.E. Kahn criterion (d) The marginal ner canita reinvestment (iv) Galenstein - Leihenstein19. Which amongst the following economists can be classified as strong advocate of protectionist policy of trade ? (1) F. List and A. Hamilton (2) Adam Smith and David Ricardo (3) J.S. Mill and P. Krugman (4) A. Hamilton and J.S. Mill 20. An increase in which of the following would be most likely to increase Long - run growth in developing countries ? (1) Tariffs on imported capital goods (2) Subsidies to business for purchases of capital goods Unemployment compensations (4) Pension payments 21. What is Baran's explanation for under development in Asia, Africa and Latin America ? (1) Monopolistic business from abroad (2 ) Conservative ruling coalitions Weak domestic middle class (4) All of the above 22. The Benefit Theory of allocation of tax burden was given by : (1) Seligman (2) Lindhal (3) Dalton (4) Pigou 23. Consider the following : (a) Oligopolistic market structure (b) Economics of scale of the above, which are the essential feature of Rosenstein Rodan's approach to development ? Answer from the code below : (1) Both (a) and (b) above (2) Neither (a) nor (b) above (3) Only (a) (4) Only (b) N-00117 8 Paper-II 24. If marginal propensity to consume (m.p.c) = average propensity to consume (a.p.c) for all levels of income (Y) then the corresponding consumption function will be : (1) C=a+bY (2) C=bY (3) C=by2 (4) C=a+ by2 25. Which of the following goods is covered under GST as on 1st July, 2017 ? (1) Electricity (2) Liquified Petroleum Gas (3) High Speed Diesel (4) Petroleum Crude 26. The greater the elasticity of supply, the greater is : (1) Incidence of tax on buyers (2) Incidence of tax on sellers (3) Impact of tax on sellers (4) Impact of tax on buyers 27. The ability - to - wav principle of taxation is logically most consistent with the normative = O1. Consider the following diagram with two parallel demand curves AB and CD : Price Quantity The price elasticity of demand at : (1) points R and S is equal (2) point R is greater than that at point S (3) point R is less than that at point S (4) points R and S is infinity 2. In 2016, the Nobel prize in Economics was awarded for : (1) analysis of trade pattern and location of economic activity (2) analysis of asset prices analysis of globalization contributions to contract theory 3. Which of the following is not true for perfect competition ? (1) Price = LAC (2) Market demand curve for a commodity is horizontal to X-axis (3) Firms earn normal profits (4) In the long run firms operate at the minimum point of average cost 4. Which amongst the following statements is correct ? (1) The minimum point of AVC and MC are at the same level of output (2) Minimum of AVC is at lesser output than the minimum of MC (3) Minimum of AVC is at larger output than the minimum of MC (4) Any of the above is possible depending upon operating of the law of returns 5. A firm in monopolistic competition advertises in order to : (1) make its product more similar to its competitors' shift the demand curve for its product to the left CON make the demand for its product less price elastic reduce the industry's price N-00117 2 Paper-II 6. For an increase in the effective minimum wage to have less of an impact on employment, which of the following is correct ? (a) The demand for labour is relatively inelastic (b) The demand for labour is relatively elastic (c) The demand for labour is a derived demand Choose the correct answer from the code given below : (1) (a) only (2) (c) only (3) (a) and (b) (4) (a) and (c) 7. Assume that people like onions on their hamburgers. If the supply of hamburgers decreases, the demand for onions will most likely : (1) remain unchanged because hamburgers and onions are different goods (2) increase because hamburgers and onions are substitutes (3) increase because hamburgers and onions are complements (4) decrease because hamburgers and onions are complements 8. In the shortrun, which of the following costs must continuously decrease as output increases ? (1) Total variable cost (2) Total fixed cost (3) Average variable cost (4) Average fixed cost
