1. Prebisch-Singer thesis enunciates which of the following?

1. International trade has been operating as a mechanism of international inequalities and has,
therefore, retarded the development of less developed countries.
2. The strategy of import substitution as a means to achieve self-sufficiency in industrial
production, has led to ma! allocation of resources and a very bad effect on industrial productivity.
Select the correct answer by using the code given below
(a) l only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

2. If the supply of a commodity is very inelastic in the exporting country and demand
for the same is fairly elastic in the importing country, the imposition of tariff will have
which one of the following?
(a) A very large protective effect
(b) No protective effect at all
(c) A very large revenue effect
(d) A very small protective effect

3. If an Indian exporter exports to Bangladesh Rs. 50,000 worth of goods payable in

three months, the balance of payment for India will show which one of the following?
(a) Current account credit goes up and capital account debit also goes up by Rs. 50,000 each
(b) Current account credit goes down and capital account debit goes up by Rs. 50,000 each
(c) Current account credit goes down and capital account debit also goes down by Rs. 50,000
each
(d) Current account credit goes up and capital account debit goes down by Rs. 50,000 each

4. Devaluation makes Balance of Payments worse in the short-run and then improves
it in the long-run. What is this phenomenon known as?
(a) Marshall -Lerner condition
(b) J-curve effect
(c) Money illusion effect
(d) Backwash effect

5. Which one of the following is considered as non-debt creating foreign investment

inflow?
(a) External assistance
(b) Foreign direct investment
(c) Borrowing from the IMF
(d) Commercial borrowings

6. Exchange rates are kept same in all the parts of market by using which one of the
following?
(a) SDRs
(b) Arbitrage
(c) Fledging
(d) Speculation

7. An over-valued currency in the foreign exchange market

will have which one of the following impacts in India?
(a) Make imports costlier and exports cheaper
(b) Will ha4e no effect on cost of imports
(c) Give protection to domestic industry against foreign competition
(d) Make imports cheaper and exports costlier

8. The inflationary impact of the inflow of foreign capital in India is neutralized by the
Reserve Bank of India by which one of the following methods?
(a) Permitting outflow of foreign exchange
(b) Sale of securities in the open market
(c) Facilitating imports of essential commodities
(d) Permitting depreciation of Indian rupee in the foreign exchange market

9. Which one of the following is the correct sequence in the process of economic
integration between different countries?
(a) Common marketFree trade areaCustom union Economic union
(b) Free trade areaCustom unionCommon market Economic union
(c) Free trade areaCommon marketCustom union Economic union

(d) Common marketFree trade areaEconomic union Custom union

10. Under Gold Standard, how can a surplus in a countrys balance of payments be
eliminated?
(a) By inflow of gold and a rise in general price level
(b) By outflow of gold and a rise in general price level
(c) By inflow of gold and a fall in general price level
(d) By outflow of gold and a fall in general price level

11. Which one of the following governs the theory which brings parity with respect to
convertibility of currency into gold content?
(a) Mint parity of exchange
(b) Special Drawing Rights
(c) Floating exchange rate
(d) Multiple exchange rate

12. In order to reduce the balance of payment deficits of the member countries, which
one of the following schemes was introduced by the World Bank in 1980?
(a) Buffer stock loans
(b) Supplementary loans
(c) Structural adjustment loans
(d) Gold loans

13. Special Drawing Rights (SDRs) introduced by the IMP are in which form?
(a) Gold
(b) Both silver and gold
(c) Paper currency
(d) Book-keeping entry only

14. Which one of the following does not constitute a part of the jurisdiction of WTO?
(a) Trade related tariff and non-tariff barriers
(b) Trade related intellectual property rights

(c) Agreement related to agriculture

(d) Regional trade agreements

15. Assertion (A) A balance of payments deficit is always and every where a monetary
phenomenon.
Reason (R): A balance of payments deficit cannot be corrected through changes in
money supply
Codes:
(a) Both A and R are individually true and R is the correct explanation of A
(b) Both A and R are individually 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

16. Which one of the following is not a component of foreign aid of a country?
(a) Bilateral grant
(b) Multilateral grant
(c) Loans from international financial institutions
(d) Commercial borrowing

17. What is the assumption that economic growth will percolate down to all sectors,
known as?
(a) Dispersal theory
(b) Trickle down theory
(c) Pump priming
(d) Decentralized growth theory

18. In plan models, which type of model is generally used to check consistency among
various sectors?
(a) Harrod -Domar model
(b) Input-output model
(c) Linear programming model
(d) Solow model

19. Consider the following A dual economy implies

1. the existence of domestic and export markets.
2. modern industry and commercial agriculture co-existing with subsistence farming
and traditional handicrafts.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

20. Theory of linkages is most appropriate for which kind of development models?
(a) Balanced growth models
(b) Unbalanced growth models
(c) Population growth models
(d) One sector growth models

21. With which one of the following is backward bending supply curve usually
associated.
(a) Land
(b) Labour
(c) Capital
(d) Organisation

22. Which one of the following is the correct expression for the actual rate of growth
(g)?
(a) g = s/c
(b) g = s x c
(c) g = s + c
(d) g =
Where s = the ratio of saving to income
c = actual incremental capital- output ratio

23. Inverted-U hypothesis of Kuznets is associated with movement of which one of the
following?
(a) Consumption inequality
(b) Wealth inequality
(c) Income inequality
(d) Tax inequality

24. Match List-I with List-II and select the correct answer by using the code given
below the lists:
List-I
(Model)

List -II
(Proposition)

A. Marxist model of economic development

variables

1.Give importance to non-economic

B. Harrod-Domar growth model

assumed

2. Flexible capital-output ratio is

C. Solows growth model

3. Productive capacity is equal to

aggregate demand
D. Kaldors growth model

4. Structural Mal adjustment in a

growing economy
Code:
ABCD
(a) 4 2 3 1
(b) 1 3 2 4
(c) 4 3 2 1
(d) 1 2 3 4

25. Which one of the following is a component of disequilibrium mentioned often in

the context of trade and development?
(a) Revenue gap
(b) Savings-investment gap
(c) Income gap
(d) Expenditure gap

26. The Feldman Mahalanobis growth model, which one of the following strategies is
followed?
(a) Emphasize the consumer goods first and then the investment goods
(b) Emphasize the investment goods first and consumer goods later
(c) Emphasize both the above sectors simultaneously
(d) Put emphasis on foreign trade only

27. Consider the following sectors:

1. Electrical Equipments
2. Service Sector
3. Food Processing Industries
4. Metallurgical Industries
Which one of the following is the correct sequence in ascending order in terms of their
share in attracting FDI inflows in India?
(a) 4-3-2-1
(b) 1-2-3-4
(c) 2-1-3-4
(d) 1-2-4-3

28. What is the major underlying assumption of efficiency wage models?

(a) Labour productivity depends on level of nutrition
(b) Labour productivity is independent of number of labourers (c) Capital productivity is maximum
(d) Capital and labour productivities are equal

29. How is Path dependency defined as?

(a) A condition of the past affecting the past situation
(b) A comparatively fast path of progress of economy
(c) A condition on which the past conditions of an individual or economy affects future condition
(d) A slow path of progress of the economy

30. What are the sufficient conditions for operation of stage theories of growth?

1. Well-integrated commodity and money markets.

2. Highly developed transport facilities
3. Well-trained workforce and an efficient bureaucracy
4. Existence of a federal structure.
Select the correct answer by using the codes given below
(a) 1, 2, and 4
(b) 2, 3, and 4
(c) 1, 3, and 4
(c) 1, 2, and 3

31. What is the correct sequence of the Marxian stage theory of growth?
1. Slavery
2. Primitive Communism
3. Socialism
4. Communism
5. Feudalism
6. Capitalism
Select the correct answer by using the codes given below
(a) 123456
(b) 215634
(c) 12563-4
(d) 215643

32. Capital fundamentalism refers to which one of the following?

(a) Capital structure of a country
(b) Accelerated capital accumulation for development
(c) A capitalistic system of economy
(d) Growth of capital expenditure

33. To make meaningful international comparisons of income and living standards,

which one of the following is most appropriate?

(a) A measure of purchasing power parity

(b) A measure of per capita income
(c) An index of poverty
(d) An index of infrastructure development

34. If the Paasches index is 196 and Fishers index is 210, what is the value of the
Laspeyre index?
(a) 220
(b) 215
(c) 225
(d) 230

35. consider the following statements

The coefficient of correlation.
1. is not affected by a change of origin and scale.
2. lies between a and + ct
3. is a relative measure of linear association between two or more variables.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 and 3
(c) l and 3
(d)1, 2 and 3

36. In a certain distribution, the following results were obtained

X = 45, Median = 48, Coefficient of skew ness = 0.3.
What is the value of standard deviation?
(a) 20
(b) 25
(c) 28
(d) 30

37. The first quartile derived from set of observations is 27 and its quartile deviation
is 17. What is its third quartile?
(a) 59
(b) 61
(c) 65
(d) 57

38. What is a cumulative percentage curve called?

(a) Frequency density curve
(b) Ogive curve
(c) Lorenz curve
(d) Frequency polygon

39. Assertion (A) : Fishers index number is an ideal one.

Reason (R) : In the Fishers index number, the upward bias of Laspeyres index and
downward bias of Paasches index are balanced to a great extent.
Codes:
(a) Both A and Rare individually true and R is the correct explanation of A
(b) Both A and R are individually 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

40. Match List-I with List-II and select the correct answer using the code given below
the lists:
List I
(Type of Unemployment)
A. Frictional Unemployment

List-II
(Associated Fact)
1.Non-availability of job

B. Structural Unemployment

2. Marginal productivity is zero

C. Seasonal Unemployment

3. Use of obsolete technology for production

D. Disguised Unemployment
Code:
ABCD

4. Population pressure on land

(a) 4 2 1 3
(b) 1 3 4 2
(c) 4 3 1 2
(d) 1 2 4 3

41. According to the 60th Round of NSSO Survey on Employment and Unemployment,
unemployment rate on current daily status basis (number of person days per 1000
person days) was highest for which one of the following categories?
(a) Rural male
(c) Urban male
(b) Rural female
(d) Urban female

42. Which one of the following committees was set up to review the concept of
poverty line?
(a) S. Chakravarty Committee
(b) D.T, Lakdawala Committee
(c) K.N. Wanchoo Committee
(d) R.C. Dust Committee

43. Which one of the following countries has the highest life expectancy at birth?
(a) Pakistan
(b) India
(c) Nepal
(d) Sri Lanka

44. According to Census-2001 data, what is the urban population as percentage of

total population of India?
(a) 23.3%
(b) 25.7%
(c) 27.8%
(d) 28.9%

45. Which category of the target groups is not included in the SHG bank linkage
programme for micro-finance to agriculture?
(a) Unemployed non-agricultural labourers
(b) Agricultural and non-agricultural labourers
(c) Small and marginal farmers
(d) Artisans and craftsmen

46. Consider the following components of money supply in India

1. Currency in circulation.
2. Bankers deposits with the RBI
3. Other deposits with the RBI
4. Demand deposits of banks
Which of the above are the components of Reserve Money?
(a) l and 3
(b) l, 2 and 3.
(c) 1, 2 and 4
(d) 2, 3 and 4

47. Consider the following statements for Indian Millennium Deposits (IMDs) scheme.
1. The scheme was launched by the Reserve Bank of India.
2. It was intended for NRIs and resident Indians both.
3. The tenure of IMDs was 5 years.
Which of the statements given above is/are correct?
(a) 3 only
(b) 2 only
(c) 1 and 2
(d) 2 and 3

48. Consider the following statements in respect of the Tenth Plan

1. This plan has specific monitorable targets in respect of poverty.
2. Decline in incremental capital-output ratio is to be achieved through creating new
capacities.

Which of the statements given above is/are correct?

(a) 1 only
(b) 2 only
(c) Both
(d) Neither 1 nor 2

49. In which of the following y was the highest growth of general index of industrial
production in India registered?
(a) 2001-02
(b) 2002-03
(c) 2003-04
(d) 2004-05

50. Growth rate in NNP at factor cost (at constant prices) has been highest during
which Five-Year Plan?
(a) Ninth Plan
(b) Eighth Plan
(c) Seventh Plan
(d) Fifth Plan

ANSWERS:1- Ans. (a)

2- Ans. (a)
3- Ans. (d)
4- Ans. (b)
5- Ans. (b)
6- Ans. (b)
7- Ans. (d)
8- Ans. (b)
9- Ans. (b)
10 - Ans. {d)
11- Ans. (a)
12.Ans. (c)
13. Ans. (d)
14.Ans. (d)
15.Ans. (c)
16. ans. (d)

17.Ans. (b)
18. Ans (b)
19.Ans. (b)
20. Ans. (b)
21.Ans. (b)
22.Ans. (a)
23.Ans. (c)
24. Ans. (c)
25. Ans. (b)
26. Ans. (c)
27. ans. (a)
28. Ans. (b)
29. ans. (c)
30. Ans. (d)
31. Ans. (b)
32. Ans. (b)
33. Ans. (a)
34. Ans. (c)
35. Ans. (c)
36.Ans. (d)
37. Ans (b)
38. Ans. (b)
39. Ans. (c)
40.Ans. (b)
41. Ans. (a)
42. Ans. (b)
43. Ans. (d)
44. Ans. (c)
45. Ans. (a)
46. Ans. (B)
47. Ans. (a)

48.Ans. (a)
49.Ans. (d)
50. Ans. (b)