make short notes for the answer
27. Assertion (A) : In India, "Green 30. The fundamental cause for the Revolution' was also criticised collapse of the Bretton Woods as Wheat Revolution. System was Reason (R) : The productivity of (A) the liquidity problem wheat in India during the 1970's was one of the highest (B) the adjustment problem in the world. (C) the confidence problem Codes : (D) all of the above (A) Both (A) and (R) are true and (R) is the correct explanation of (A). 31. Hedging refers to (B) Both (A) and (R) are true, but (A) the acceptance of a foreign (R) is not the correct exchange risk explanation of (A). ) the covering of a foreign (C) (A) is true, but (R) is false. exchange risk (D) (A) is false, but (R) is true. (C) foreign exchange speculation 28. Assertion (A) : Agricultural income (D) foreign exchange arbitrage is taxed by the Union Government. 32. Members of the World Trade Reason (R) : Agriculture is a State Organization are required to subject. (A) eliminate all tariffs. Codes : (A) Both (A) and (R) are true and (B) allocate quotas on a first come (R) is the correct explanation of first basis. (A). (C) prevent their firms from (B) Both (A) and (R) are true and "dumping". (R) is not the correct (D) enforce patent rights for patent explanation of (A). holders from other countries. (C) (A) is true, but (R) is false. (D) (A) is false, but (R) is true. 33. Which of the following is not related with optimum currency area ? 29. Match items given in List - I with those in List - II : (A) Optimal geographical area for List - I List - II several currencies whose a. Green Revolution 1. Oilseeds exchange rates are relatively b. Yellow Revolution 2. Milk pegged. c. White Revolution 3. Fish (B) Single currency do not d. Blue Revolution 4. Wheat fluctuate vis-a-vis other Codes : currencies. (C) Single currency or the pegged (A) currencies fluctuate jointly vis- (B) a-vis other currencies. N (D) Optimal geographical area for a (D) N single currency.20. In which year, the Wildlife Board in 25. Assertion (A) : In the agricultural India was established ? lending mechanism of India. (A) 1952 (B) 1968 moneylenders despite their (C) 1986 (D) 1992 usurious rates of interest are still predominant. 21. Indian planning mechanism was Reason (R) : Most often the criticised by commercial banks could not (A) A.K. Sen meet the target of 18% of their (B) Jagdish Bhagwati total lending for the (C) L.K. Jha agricultural sector in the country. (D) Bimal Jalan Codes : 22. 'Aam Admi Bima Yojana' provides (A) Both (A) and (R) are true and social security to (R) is the correct explanation of (A) all labour in rural areas (A). (B) all landless labour living below poverty line in rural areas (B) Both (A) and (R) are true, but (R) is not the correct (C) all labour in urban areas explanation of (A). (D) all labour in both rural and urban areas (C) (A) is true and (R) is false. (D) (A) is false and (R) is true. 23. List - I List - II i. 1" Five a. Agriculture Year Plan 26. Which one of the following does not ii. 2" Five b. Heavy come under land reforms in India ? Year Plan industries iii. 5" Five C. Anti-poverty (a) Abolition of Intermediaries and Year Plan Programmes Tenancy Legislation d. Luxury items (b) Ceiling on Land Holding and Codes : Co-operating Farming (A) i-a, ii - b, iii - c (c) Tenancy Legislation and (B) i-d, ii - b, ili - c Technology Upgradation (C) i-d, ii - c, iii - a (d) Abolition of Intermediaries and (D) i-c, ii - a, iii - b Green Revolution 24. Which State in India has the lowest Codes : Infant Mortality Rate ? (A) (a) and (c) (A) Maharashtra (B) (a) and (d) (B) Goa (C) Gujarat (C) (a) and (b)12. Speculative demand for money is 16. The rational expectations hypothesis zero when market rate of interest is does not imply : (A) more than the 'critical rate'. (A) People do not make systematic (B) more than the market rate of errors. interest but less than the critical (B) On average the economy will rate (i.e. capital gains occur). be close to Long-run Average (C) less than the market rate of Supply (LAS) Curve interest. (C) Policy makers have better (D) lowest (i.e. in liquidity trap). information about the economy than other economic actors. 13. A positively sloped aggregate supply (D) Macroeconomic policy changes curve indicates that must came as a surprise in (A) an increase in aggregate demand order to have an impact on the will be associated with an real economy. increase in the price level and no change in equilibrium output. 17. Which of the following are true of an increase in aggregate disguised unemployment ? demand will be associated with 1. It represents potential savings. an increase in both the price II. level and equilibrium output. The marginal productivity of labour is zero or extremely low. (C) an increase in aggregate demand will be associated with an III. It is due to the existence of increase in equilibrium output joint family system. and no change in the price level. IV. It is confined to the rural areas. (D) none of the above. Codes : (A) II and IV 14. The capacity creating aspect of ) III and IV investment in growth theory was (C) I, II and III emphasised by (D) I, II, III and IV (A) R.F. Harrod (B) E.D. Domat 18. According to A.K. Sen, famines (C) R.M. Solow occurred in India because of (D) P.A. Samuelson lack of proper distribution mechanism 15. Which of the following is not an (B) lack of demand interpretation of the golden rule of accumulation ? (C) lack of transportation (A) 'Invest your profits, consume (D) shortage of foodgrains your wages." (B) The share of profit in output is 19. In India, Five Year Plan is equal to the ratio of investment formulated by to output. (A) C.S.O. (C) Saving ratio should be equal to (B) Planning Commission the elasticity of output with (C) Finance Commission respect to capital. (D) Planning Ministry6. Assertion (A) : An Iso Cost Line is a In the long run, the autonomous straight line. consumption will Reason (R) : The market rate of exchange between the two (A) be infinity inputs is constant. Codes : (B) remains unchanged (A) Both (A) and (R) are true and (C) decline but will remain positive (R) is correct explanation of (A). (B) Both (A) and (R) are true, but (D) be zero (R) is not correct explanation of (A). (C) (A) is true, but (R) is false. 10. Which of the following statements is (D) (A) is false, but (R) is true. not true in case of the balanced budget multiplier ? 7. Assertion (A) : The rate of fall of (A) The first round contractionary MR Curve is more than twice effect of additional tax revenue the rate of fall of AR. (-b, AT; b = MPC) is less than Reason (R) : The MR & AR Curves the explanatory effect are linear and negatively additional Government sloped. expenditure (= AG). Codes : (A) Both (A) and (R) are true and (B) The value of tax multiplier for (R) is correct explanation of (A). - b (B) Both (A) and (R) are true, but proportional taxes is 1 - b + bt (R) is not a correct explanation (where b = MPC and t = tax rate). of (A). (A) is true, but (R) is false. (C) The value of balanced budget (C) (D) (A) is false, but (R) is true. multiplier is unity when taxes are lump sum taxes. 8. Which of the following is true with (D) None of the above regard to peak-load pricing ? (a) It is applicable only for electrical public utilities. 11. For a small economy in a flexible (b) It leads to substitution in exchange rate system that begins in consumption from the period of the long-run equilibrium point, a peak demand to the period of higher rate of inflation in the short- low demand. run will be followed by (c) It leads reduction in (A) An increase in the exchange consumer welfare. rate and decline in net exports. (d) It leads to higher consumer welfare during peak periods (B) Decrease in the exchange rate when demand and marginal and an increase in net exports. costs are low. (C) Contractionary monetary Codes : policy and real exchange rate (A) (a) & (b) only. appreciation. (B) (a) & (c) only. (C) (b) and (d) only. (D) Explanatory monetary policy and (D) (b) & (c) only. real exchange rate depreciation.1. A firm operating in perfectly 4. Match the items in List - I with items competitive product and input in List - II : markets. Maximizes its total profit List - I List - II when a. Various 1. Indifference combination that Map (A) P, = Mc, and Mc is rising a consumer can purchase MP MPb b. Various 2. Budget Line (B) P. = Pb combination of two commodities MP MPb that give the (C) PPL = Mc. consumer equal satisfaction C. A set of 3. Consumer MP MP indifference Equilibrium (D) P Pb = Mc, curves d. Point of tangency 4. Indifference of a budget line Curves and indifference 2. Shadow price refers to curve Codes : (A) change in the value of the constraint per unit change in (A) the objective function. (B) (B) change in the value of objective (C) function per unit change in any (D) 4 one of the constraints. 5. Match the items in List - I with items (C) the change in the value of the in List - II : primal solution per unit change List - I List - II in the dual solution. a. Residual 1. Nut. K. (D) all the above. Claimant Wicksel Theory b. Loanable Funds 2. Bergson- 3. In an economy of two individuals (A Theory Samuelson & B) and two commodities (X and C. Compensation 3. Walker Y) general equilibrium of exchange Criteria is reached when d. Social Welfare 4. Kaldor- Function Hicks (A) MRTSxy = MRTS yx Codes : (B) MRSxy = Px/ Py (A) (C) (MRSXY)A = (MRS xY)B (B) NN (D) MRSxy = Py/ Px (D)
