Please explain in details
27. Assertion (A) : Over the years, the goal of self-reliance has proved to be elusive in the Indian economy. Reason (R) : Balance Of Payments (BOP) problems have been arising due to imports of POL. (A) Both (A) and (R) are false. (B) (A) is true, but (R) is false. (C) Both (A) and (R) are true, but (R) is not the correct explanation of (A). (D) Both (A) and (R) are true and (R) is the correct explanation of (A). 28. Assertion (A) : Laspeyre's index has a upward bias. Reason (R) : Paasche's index has a downward bias. (A) Both (A) and (R) are true and (R) is the correct explanation of (A). (B) Both (A) and (R) are true, but (R) is not the correct explanation of (A). (C) (A) is true but (R) is false. (D) (A) is false but (R) is true. 29. Assertion (A) : In a bell-shaped distributive curve, the value of Mean, Median and Mode would be identical. Reason (R) : There is no skewness in the series. (A) Both (A) and (R) are true, but (R) is not the correct explanation of (A). (B) (A) is true, but (R) is false. (C) (A) is false, but (R) is true. (D) Both (A) and (R) are true and (R) is the correct explanation of (A). 30. Assertion (A) : Colin Clark hypothesised that the safe upper limit of taxation is 25 percent of national income. Reason (R) : The excess burden of taxation will be very high if it goes beyond the 25 percent limit. (A) (A) is true, but (R) is false. (B) Both (A) and (R) are true.23. Assertion (A) : According to Milton Friedman, the slope of the long-run Phillips curve is vertical. Reason (R) : The expectations about future inflation are the basic cause of the non- existence of the trade-off between inflation and unemployment in the long-run. (A) Both (A) and (R) are true, but (R) is not the correct reason of (A). (B) Both (A) and (R) are true, and (R) is the correct reason of (A). (C) Both (A) and (R) are false. (D) (A) is true, but (R) is false. 24. Assertion (A) : Life Cycle Hypothesis attempts to reconcile the short-run non- proportional and the long-run proportional consumption functions. Reason (R) : Short-run non-proportional consumption function implies that APC declines as income increases. (A) (A) is true, but (R) is false. (B) Both (A) and (R) are false. (C) Both (A) and (R) are true. but (R) is not the correct reason of (A). (D) Both (A) and (R) are true, and (R) is the correct reason of (A). 25. Assertion (A) : According to Gunnar Myrdal, there exists a circular and cumulative causation in under-developed countries. Reason (R) : There is a mutually reinforcing interaction between low living levels and low productivity. (A) (A) is false, but (R) is true. (B) Both (A) and (R) are false. (C) Both (A) and (R) are true, but (R) is not the correct explanation of (A). (D) Both (A) and (R) are true, and (R) is the correct explanation of (A). 26. Assertion (A) : Harrod-Domar model assumes fixed technological relationship between capital stock and income flows. Reason (R) : The model assumes flexible capital output ratio. (A) Both (A) and (R) are true. (B) Both (A) and (R) are true, but (R) is not the correct explanation of (A). (C) Both (A) and (R) are false. (D) (A) is true, but (R) is false.17. The overall production of foodgrains in India in 2006-07 was (A) 207.3 million tonnes (B) 217.3 million tonnes (C) 270.8 million tonnes (D) 227.8 million tonnes 18. On Current Daily Status (CDS) basis, the incidence of unemployment in India in 2004-05 was (A) 4.52% (B) 6.43% (C) 8.28% (D) 10.12% 19. The statistical technique used to determine the degree of relationship between two variables is called (A) Dispersion (B) Index Numbers (C) Association (D) Correlation 20. Which Index Number method has an upward bias ? (A) Laspeyre's method (B) Paasche's method (C) Bowley's method (D) Fisher's method Note : Consider the following statements and select the correct answer from the codes given below for questions 21 to 30. (Assertion and Reason type item) 21. Assertion (A) : The rate of fall of MR is more than that of AR in the event of their falling. Reason (R) : Both MR and AR curves are linear and negatively sloping. (A) Both (A) and (R) are true, but (R) is not the correct explanation of (A). (B) Both (A) and (R) are true, and (R) is the correct explanation of (A). (C) (A) is false, but (R) is true. (D) (A) is true, but (R) is false. 22. Assertion (A) : Under monopolistic competition, the long-run average revenue (LAR) of a firm is tangent to the negatively sloping portion of the long-run average cost (LAC) curve. Reason (R) : The demand curve facing the firm under monopolistic competition is relatively more elastic. (A) Both (A) and (R) are true, but (R) is the correct explanation of (A). (B) (A) is true, but (R) is false. (C) Both (A) and (R) are false. (D) Both (A) and (R) are true, but (R) is not the correct explanation of (A).9. The doctrine of unbalanced growth has not been advocated by (A) H.W. Singer (B) W.A. Lewis (C) A.O. Hirschman (D) C.P. Kindleberger 10. Which group represents the interests of the developing countries ? (A) G-7 (B) G- 10 (C) G-77 (D) G-80 11. Funds not belonging to the Government are called (A) Contingency Fund (B) Consolidated Fund (C) Private Accounts (D) Public Accounts 12. The Deficit Budget in which the deficits are covered through taxes is called (A) Balanced Budget B) Unbalanced Budget (C) Surplus Budget (D) Zero-base Budget 13. Raul Prebisch's argument is concerned with the effects of business cycles on (A) Terms of Trade (B) Balance of Payments (C) Output (D) Consumption 14. The difference between the export and import of services is called (A) Balance of Trade. (B) Balance of Invisibles. (C) Balance of Current account. (D) Balance of Capital account. 15. Public Enterprises in India have developed only in (A) Consumer goods industries (B) Key and basic industries (C) Service industries (D) All types of industries 16. According to Economic Survey 2007-08, India's Current Account balance as percent of GDP in 2006-07 stood at (A) -3.3 (B) -2.1 (C) -1.1 (D) -0.41. The Law of Diminishing Returns to Scale holds true in the (A) Market - Period (B) Short - Period (C) Long - Period (D) Secular - Period 2. The demand for labour by a firm is a derived demand because it depends upon (A) The demand for goods and services that labour helps to produce. (B) The degree of substitution between labour and other factors of production. (C) The elasticity of demand for labour. (D) The demand for other factors of production. 3. Social Welfare Function is assumed (A) Theoretically (B) Axiomatically (C) Hypothetically (D) Empirically 4. In the classical theory, an increase in money supply leads to (A) Decrease in price level. (B) Increase in savings. (C) Decrease in investment. (D) Increase in price level. 5. Shift in LM curve takes place due to (A) Increase in autonomous investment. (B) Increase in money supply. (C) Increase in consumption. (D) Increase in saving rate. 6. The Phillips Curve shows the relation between (A) Income and consumption. (B) Income and price level. (C) Income and investment. (D) Inflation and unemployment. 7. Rolling Plan Concept was propounded by (A) Gunnar Myrdal (B) J.K. Galbraith (C) Paul A. Samuelson (D) A.K. Sen 8. The 'Incremental Capital-Output Ratio' is symbolically written as (A) K/L (B) AK/ AL
