Professional Documents
Culture Documents
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
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
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
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
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
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
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)
aggregate demand
D. Kaldors growth model
growing economy
Code:
ABCD
(a) 4 2 3 1
(b) 1 3 2 4
(c) 4 3 2 1
(d) 1 2 3 4
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
30. What are the sufficient conditions for operation of stage theories of growth?
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
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
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
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
C. Seasonal Unemployment
D. Disguised Unemployment
Code:
ABCD
(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
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
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
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
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)