questions

30. With reference to balance of payments, which of the following constitute(s) the current account ? I. Balance of trade II. Foreign assets III. SDRs IV. Trade in invisibles Select the correct answer from the codes below : Codes : (1) I only (2) II and III (3) I and IV (4) I, III and IV 31. Which one of the following is not correct about SEBI (Securities and Exchange Board of India) ? (1) It has the power to protect the interest of the investors in securities. (2) It has the power to convert private securities to public securities. (3) It has the power to promote development of capital market. (4) It has the power to regulate the working of stock exchange. 32. Which among the following countries (as on May 2016) are currently using the Quantitative easing as a measure to improve the inflationary expectations in the economy ? (1) Japan (2) Britain (3) USA (4) Australia 33. The base year of the newly introduced Consumer Price Index (CPI) in India has been shifted to the year : (1) 2009 (2) 2012 (3) 2011 (4) 2010 34. Which of the following is not a legal tender in India ? (1) One rupee coin (2) Fifty paise coin (3) F E B F (1) Share of labour is AB (2) Share of capital is OB (3) Share of capital is AB (4) Share of capital is ABCE 13. Given : I = 5+ 0.2y S=-15+0.3y G =5 Where I = Investment; S = Savings G = Government Expenditure Y = National Income What is the equilibrium level of income ? (1) 200 (2) 150 (3) 250 (4) 300 Paper-II J-01-165. Assuming that firm A increases its advertising and firm B responds by increasing its advertising. If profits of both firms increase, then firms A and B are engaged in (1) a zero-sum game (2) a positive-sum game (3) a negative-sum game (4) behaviour which cannot be understood in terms of games theory 6. Among the following the law of diminishing returns begins to operate when (1) Total product begins to rise (2) Total product begins to fall (3) Marginal product begins to rise (4) Average product begins to fall 7. Which among the following statements are correct regarding Edgeworth Duopoly model ? I. It takes as given the output decision of rival. II. It is adequate explanation of price rigidity. Ill. It takes as given the price decision of rival. Of these, the correct answer is (1) Only statement I is true (2) Both I & III are true (3) Both II and III are true (4) Only III is true 8. Identify the correct order of development of the theories given below : (a) Marshall's Theory of Demand (b) Indifference Curves (c) Revealed Preference Theory (d) Hicks' Revision of Demand Theory Codes : (1) (a), (b). (c). (d) (2) (d), (a). (c). (b) (3) (b). (a). (d), (c) (4) (c). (d). (a), (b) 9. Inflationary gap refers to excess of aggregate demand over aggregate supply at (1) full employment level (2) after full employment level (3) before full employment level (4) both (1) and (2) above 10. In a dynamic multiplier system, the relation between income and investment will be (1) AY,=KAI, (2) AY = KALLI (3) AYL, = KAI, (4) AY, = KALI Paper-II J-01-161. Who among the following is not associated with the compensation principle of welfare economics ? (1) Kaldor (2) Hicks (3) Scitokosky (4) Pareto 2. Substitution of leisure for income leads to (1) Backward sloping supply curve (2) Need for overtime payment (3) Both (1) and (2) (4) Neither (1) nor (2) 3. In the adjoining diagram, in the equilibrium which one of the following is true ? Revenue and Cost - AR .X Output (1) Price = Average Cost (2) Price = Average Cost = Marginal Cost (3) Marginal Cost = Average Revenue (4) There is no excess capacity. 4. Which of the following describes the Lemons problem in economies ? (1) Bad currency drives out the good currency. (2) Low-quality goods can drive high quality goods out of the market. (3) Low cost firms drive out high cost firms from the market. (4) Excess production of a horticulture crop. Paper-II J-01-16