Economics For UPSC IAS Prelims Exam
Economics Objective Solved papers
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
Ans. (a)
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
Ans. (a)
3. If an
Indian exporter exports to Bangladesh Rs. 50,000 worth of goods payable in
three months, the balance of payment for India
(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
Ans. (d)
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
(b)
J-curve effect
(c)
Money illusion effect
(d)
Backwash effect
Ans. (b)
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
Ans. (b)
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
Ans. (b)
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
Ans. (d)
8. The
inflationary impact of the inflow of foreign capital in
one of
the following methods?
(a)
Permitting outflow of foreign exchange
(b) Sale
(c)
Facilitating imports of essential commodities
(d)
Permitting depreciation of Indian rupee in the foreign exchange market
Ans. (b)
9. Which
one of the following is the correct sequence in the process of economic
integration between different countries?
(a)
Common market—Free trade area—Custom union— Economic union
(b) Free
trade area—Custom union—Common market— Economic union
(c) Free
trade area—Common market—Custom union— Economic union
(d)
Common market—Free trade area—Economic union— Custom union
Ans. (b)
10.
Under Gold Standard, how can a surplus in a country’s 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
Ans. {d)
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
Ans. (a)
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
Ans. (c)
13.
Special Drawing Rights (SDRs) introduced by the IMF are in which form?
(a) Gold
(b) Both
silver and gold
(c)
Paper currency
(d)
Book-keeping entry only
Ans. (d)
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
Ans. (d)
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
Ans. (c)
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
Ans. (d)
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
Ans. (b)
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
Ans (b)
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
Ans. (b)
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
Ans. (b)
21. With
which one of the following is backward bending supply curve usually associated.
(a) Land
(b)
Labour
(c)
Capital
(d)
Organisation
Ans. (b)
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
Ans. (a)
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
Ans. (c)
24.
Match List-I with List-II and select the correct answer by using the code given
below the lists:
List-I
List -II
(Model)
(Proposition)
A.
Marxist model of economic development 1.Give importance
to
non-economic
variables
B.
Harrod-Domar growth
model
2. Flexible capital-output ratio is assumed
C.
Solow’s growth
model
3. Productive capacity is equal to
aggregate
demand
D.
Kaldor’s growth
model
4. Structural Mal –adjustment in a
growing
economy
Code:
A B C D
(a) 4 2
3 1
(b) 1 3
2 4
(c) 4 3
2 1
(d) 1 2
3 4
Ans. (c)
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
Ans. (b)
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
Ans. (c)
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
Ans. (a)
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
Ans. (b)
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
Ans. (c)
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
Ans. (d)
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)
1—2—3—4—5—6
(b) 2—1—5—6—3—4
(c)
1—2—5—6—3-4
(d)
2—1—5–6—4—3
Ans. (b)
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
Ans. (b)
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
Ans. (a)
34. If
the Paasche’s index is 196 and Fishers’ index is 210, what is the value of the
Laspeyre’ index?
(a) 220
(b) 215
(c) 225
(d) 230
Ans. (c)
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
Ans. (c)
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
Ans. (d)
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
Ans (b)
38. What
is a cumulative percentage curve called?
(a)
Frequency density curve
(b)
Ogive curve
(c)
Lorenz curve
(d)
Frequency polygon
Ans. (b)
39.
Assertion (A) : Fisher’s index number is an ideal one.
Reason
(R) : In the Fisher’s index number, the upward bias of Laspeyre’s index and
downward bias of Paasche’s 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
-
Ans. (c)
40.
Match List-I with List-II and select the correct answer using the code
given below the lists:
List
–I
List-II
(Type of
Unemployment)
(Associated Fact)
A.
Frictional Unemployment
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
4. Population pressure on land
Code:
A B C D
(a) 4 2
1 3
(b) 1 3
4 2
(c) 4 3
1 2
(d) 1 2
4 3
Ans. (b)
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
Ans. (a)
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
Ans. (b)
43.
Which one of the following countries has the highest life expectancy at birth?
(a) Pakistan
(b) India
(c) Nepal
(d) Sri Lanka
Ans. (d)
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%
Ans. (c)
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
Ans. (a)
46.
Consider the following components of money supply in India
1.
Currency in circulation.
2.
Banker’s 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
Ans. (B)
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
Ans. (a)
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
Ans. (a)
49. In
which of the following y was the highest growth of general index of industrial
production in India
(a)
2001-02
(b)
2002-03
(c)
2003-04
(d)
2004-05
Ans. (d)
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
Ans. (b)
…………………………………………………….
Solved Question Papers of Micro Economics
Multiple Choice Questions for Economics
Multiple Choice Questions for Economics
1.
Assertion (A): An oligopolist faces demand curve which has a kink at the level
of the prevailing price.
Reason
(R): The segment of the demand curve above the prevailing price level or kink
is highly inelastic and the segment of the demand curve below the prevailing
price level is elastic.
Codes:
(a) Both
A and R are individually true and. R is the correct explanation of A
(b) Both
A and It 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
Ans. (c)
2.
Consider the following statements relating to marginal rate of technical
substitution (MRTS).
1. The
MRTS in case of an isoquant measures the rate at which one input is substituted
for the other.
2. The M
of input X for input Y at a point on an isoquant is equal to the positive slope
of the isoquant at that point.
3. The
MRTS equals to the ratio of the marginal product of input V to the marginal
product of input X.
Which of
the statements given above are correct?
(a) 1
and 2
(b) 2
and 3
(c) 1
and 3
(d) 1, 2
and 3
9. Which
one of the following statements is not correct?
(a)
Normal goods have a positive income elasticity of demand
(b)
Inferior goods have a negative income elasticity of demand
(c)
Necessity has an income elasticity of demand that is less than one
(d)
Luxury goods have an income elasticity of demand that is equal to one
Ans. (d)
10. A
firm has certain initial equilibrium price, when demand function QD = 50 — 3P
and supply function is 20 + 3P. If the firm’s demand function is shifted to C =
68 — 3P, what is the initial equilibrium price and the new equilibrium price,
respectively?
(a) 5
and 6
(b) 5
and 8
(c) 6and
8
(d) 8
and 5
Ans. (b)
11.Cournot
model assumes which of the following?
1. There
are two firms operating in the market.
2. The
firms face a kinked demand curve.
3. Each
firm acts on the assumption that their competitors
will not
react to her decision to change output.
Select
the correct answer by using the code given below
(a)
(b) 2
and 3
(c) l
and 3
(d)1, 2
and 3
Ans. (c)
12.
Which one of the following statements is correct?
The
Sweezy mode of oligopoly assumes that price elasticity of demand
(a) is
higher for a price increase than for a price decrease
(b) is
lower for a price increase than for a price decrease
(c)
cannot change for a price increase or price decrease
(d)
cannot change for a price decrease
Ans. (a)
13.
Which one of the following statements is correct?
(a)
Demand for factors of production is an independent demand
(b)
Demand for factors of production is a derived demand
(c)
Demand for factors of production is a reciprocal demand
(d)
Demand for factors of production is same as the demand for commodities
Ans. (b)
14. What
is the principle which is applied to redress the imbalance between distribution
and welfare, known as?
(a)
Principle of taxation
(b)
Compensation principle
(c)
Principle of effective demand
(d)
Principle of supply
Ans. (b)
15. The
inconsistency of which one of the following criteria is labelled as Scitovsky
Paradox?
(a)
Little Criterion
(b)
Pareto Criterion
(c)
Bergson Criterion
(d)
Kaldor Flicks Criterion
Ans. (d)
16.
consider the following statements
The
distribution of two commodities between two individuals is Pareto optimal if
1. one
individual cannot be made better off without making the other worse off.
2. the
individuals are on their consumption contract curve.
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
Ans. (c)
17. What
is maximizing the level of satisfaction with the given level of inputs and
technology, called?
(a)
Technical efficiency
(b)
Allocative efficiency
(c)
Economics of scale
(d) X-
efficiency
Ans. (d)
18.
Which one of the following statements is correct? An increase in money supply
in Keynesian framework results in
(a) a
higher level of income and a higher rate of interest
(b) a
lower level of income and a lower rate of interest
(c) a
higher level of income and a lower rate of interest
(d) a
lower level of income and a higher rate of interest
Ans. (c)
19.
Which one of the following statements is correct?
A fall
in the money supply results in the
(a)
rightward shift in the IS curve
(b)
rightward shift in the LM curve
(c)
leftward shift in both the LM curve and the IS curve
(d)
leftward shift in the LM curve only
Ans. (d)
20.
Which one of the following statements is correct?
The IS
function indicates the
(a)
locus of the money market equilibrium
(b)
locus of the commodity market equilibrium
(c)
locus of the labour market equilibrium
(d)
locus of both money and labour market equilibrium
Ans. (b)
21.
Which one of the following statements is correct? According to Keynes, fresh
investment would be possible only if
(a) the
marginal efficiency of capital exceeds the rate of interest
(b) the
marginal efficiency of capital is less than the rate of interest
(c) the
marginal efficiency of capital is positive
(d) the
marginal efficiency of capital is negative
Ans. (a)
22.
Which one of the following statements is correct?
Autonomous
investment is
(a)
functionally related to interest rate
(b)
functionally related to both income and interest rate
(c)
functionally related to income alone
(d)
independent of income and interest rate
Ans. (d)
23.
Consider the following statements
1. The
MPC is higher in a poor country and lower in a rich country.
2.
Higher the MPC, higher will be the value of multiplier.
3. Lower
the M lower will be the value of multiplier.
Which of
the statements given above are correct?
(a) 1
and 2
(b) 1
and 3
(c) 2
and 3
(d) 1 2
and 3
Ans. (a)
24.
Match List-I with List-II and select the correct answer by using the code given
below the lists
List –
I
List
-II
(Economist)
(Concept)
A. A. C.
Pigou
1. Liquidity Preference
B. J.M.
Key
2. Real Balance Effect
C. J.R.
Hicks-A.H.
Hansen
3. Ratchet Effect
D. J.S.
Duesenberry
4. IS-LM Analysis
Code:
A B C D
(b) 2
only
(c) 2
and 3
(d) 3
and 4
Ans. (c)
31.
Consider the following statements
1. The
equilibrium between the aggregate demand and aggregate supply may take place at
a point of less-than-full employment in an economy.
2. The
.size of deficient demand is inversely proportional to the deflationary gap.
Which of
the statements given above is/are correct?
(a) 1
only
(b)
2only
(c) Both
1 and 2
(d)
Neither 1 nor 2
Ans. (a)
32.
Assertion (A) : Gross National Product will always be more than the Gross
Domestic Product.
Reason
(R): To get Gross National Product, not factor income from abroad is added to
Gross Domestic product
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
Ans. (d)
33. what
is the empirically fitted relationship between the rate of change of money
wages and rate of unemployment, known as?
(a)
Baumal’s Hypothesis
(b)
Keynesian Model
(c)
Friedman’s Model
(d)
Phillip’s Curve
Ans. (d)
34. In
the simplified version of Friedman’s quantity theory of money, velocity of
circulation of money depends on which of the following?
(a) Rate
of interest and rate of price change
(b) Rate
of interest and rate of change of income
(c) Rate
of change of money supply and rate of change of consumption
(d) Rate
of change of price and rate of: change of investment
Ans. (b)
35.
Consider the following assets
1. Cash
held by public
2.
Equity shares of banks
3. Deposits
of banks
4. RBI
bonds
Which of
the above assets are considered as part of money supply?
(a) 1
and 2
(b) 1
and 3
(c) 2
and 3
(d) 1, 3
and 4
Ans. (b)
36.
which one of the following is stated by the quantity theory of money?
(a) An
increase in the nominal money supply causes a proportional increase in the
price level
(b) An
increase in the real money supply causes a proportional increase in the price
level
(c) An
increase in the nominal money supply causes a proportional increase in real GNP
(d) An increase
in the real money supply causes a proportional increase in real GNP
Ans. (a)
37.
Consider the following statements
1. Bond
price and interest rate are positively related.
2. Bond
price and interest rate are negatively related.
3.
Credit creation varies directly with Cash Reserve Ratio (CER).
4.
Credit creation varies inversely with Cash Reserve Ratio (CRR).
Which of
the statements given above are correct?
(a) 1
and 2
(b) 1
and 4
(c) 2
and 3
(d) 2
and 4
Ans. (d)
38.
Suppose, due to an open market purchase of government securities, reserves in
the commercial banks increase by Rs. 1,000. If the reserve ratio is 20 percent,
what will be the increase in money supply?
(a) Its.
5,000
(b) Rs.
4,000
(c) Rs.
2,000
(d) Rs.
1,000
Ans. (c)
39.
Which one of the following is not a component of demand-pull inflation?
(a) An
increase in government expenditure with no change in tax rate
(b) A
downward shift h savings function
(c) A
rise in the money wage rate
(d) An
upward shift of investment function
Ans. (c)
40. Assertion
(A) Indirect taxes promote inequality in the distribution of income.
Reason
(R): Poor bear more burden of indirect taxes.
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
Ans. (a)
41.
which one of the following statements is correct?
According
to Peacock and Wiseman, public expenditure grows
(a)
steadily over a period of time
(b) at
a. constant rate in relation to GNP
(c) in a
step by step manner
(d) at a
lower rate in relation to GNP
Ans. (c)
42. As
compared to traditional budgeting, in case of Performance and Programme
Budgeting System (PPBS), which one of the following statements is correct?
(a) It
stresses on outcome only
(b) It
stresses on expenditure allocation only
(c) It
stresses more on outcome and less on expenditure allocation
(d) It
stresses less on outcome and more on expenditure allocation
Ans. (c)
43.
Which one of the following statements is coned?
Zero-base
budgeting implies that
(a) it
emphasizes physical targets rather than financial targets
(b)
spending on all programmes is re-examined and justified each year rather than
following add-on every year
(c) it
is purely an evaluation of existing budget and there is nothing new in it
(d) it
focuses on centralization of expenditure
Ans. (b)
44.
Which one of the following statements is correct?
The
revenue from the imposition of an advolarem tax and that of a unit tax in a
perfectly competitive market which results in the same price rise, are
(a) more
for advolarem tax
(b) more
for unit tax
(c)
equal for both the taxes
(d) zero
for both the taxes
Ans. (c)
45. in
which one of the following groups of taxes, do impact and incidence of tax
coincide?
(a)
Income tax and corporation tax
(b)
Income tax and excise duties
(c)
Corporation tax and custom duties
(d)
Excise duties and sales tax
Ans. (a)
46. The
concept of optional taxation, based on whatever criteria, has to. cover decision-making
at which of the following levels?
1. The
aggregate amount of taxations and its division between direct and indirect
taxations.
2. The
composition and rate schedules of direct and indirect taxes.
3. The
composition and revenue schedules of indirect taxes.
4. The
composition and revenue schedules of direct taxes.
Select
the correct answer by using the code given below:
(a) 1
and 4
(b) 1
and 3
(c) 1
and 2
(d) 2, 3
and 4
Ans. (c)
47.
According to Cohn Clark, what is taxable capacity?
(a) 20
percent of National income
(b) 25
percent of National Income
(c) 30
percent of National Income
(d) 35
percent of National Income
Ans. (b)
48.
Which one of the following is not the Canon of taxation as stated by Adam
Smith?
(a)
Canon of equality
(c)
Canon of convenience
(b)
Canon of certainty
(d)
Canon of productivity
Ans. (d)
49.
Which curve shows that how much of its import commodity is required by a nation
in exchange for various quantities of its export commodity?
(a)
Offer curve
(b)
indifference curve
(c)
Demand curve
(d)
Production possibility curve
Ans. (a)
50.
Which of the following is/are correct in respect of opportunity cost theory?
1. A
straight line production possibility curve indicates constant opportunity cost.
2; The
production possibility curve under increasing cost would be concave to the
origin.
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
Ans. (c)
……………………………………………
Solved
paper UPSC 2008 Prelims Economics
2.
Consider the following statements:
A. The
number of firms is large both under perfect competition and monopolistic
competition.
B. There
is freedom of entry and exit in both perfect competition and monopolistic
competition.
C. In
both perfect competition and monopolistic competition, every firm is a price
taker and quantity adjuster.
Which of
the statements given above are correct?
(a) A, B
and C
(b) B
and C
(c) A
and C
(d) A
and B
Ans. (d)
3. Match
List I (Market Type) with List-II (Implication) and select the correct answer
using the codes given below the lists:
List-I
List-II
(Market
Type)
(Implication)
A.
Perfect
competition
1. Collusion of firms
B.
Monopoly
2. Excess capacity
C.
Monopolistic
competition
3. Uniform price
D. Oligopoly
4. Blocked entry
Code:
A B C D
(a) 2 4
3 1
(b) 3 1
2 4
(c) 2 1
3 4
(d) 3 4
2 1
Ans. (d)
4. In
the Kinked Demand Curve Model, suppose MC curve shifts upward in the
discontinuous range of MR curve.
Which
one of the following is correct? At equilibrium,
(a)
price rises but quantity remains the same
(b)
price and quantity both remain the same
(c)
quantify rises but price remains the same
(d)
price and quantity both rise
Ans. (b)
5.
Consider the following statements:
Short
run profit is maximum under perfect competition when
A.
second order condition is satisfied.
B. MC
curve cuts MR curve from below.
C. MC
curve cuts MR curve from above.
Which of
the statements given above is/are correct?
(a) A
and C
(b) A
and B
(c) A
only
(d) B
only
Ans. (b)
6. Which
of the following is not a necessary condition of perfect competition?
(a)
Large number of firms in the industry producing homogeneous products
(b) Free
entry and free exit of firms
(c) Need
for incurring selling costs to attract consumers
(d)
Absence of artificial restrictions by the government
Ans. (c)
7.
Consider the following statements:
A. The
shape of a unitary elastic demand curve is a rectangular hyperbola.
B. The
shape of a perfectly elastic demand curve is a rectangular hyperbola.
C.
Perfectly inelastic demand curve is parallel to the price axis.
D.
Perfectly elastic demand curve is parallel to the quantity axis.
Which of
the statements given above are correct?
(a) A
and B
(b) A, C
and D
(c) B
and C
(d) B
and D
Ans (b)
8. Which
one of the following statements is correct?
A
straight line demand curve (cutting both the axis) is elastic
(a)
throughout the length of the demand curve
(b) at
the mid-point
(c)
below the mid-point towards the demand axis
(d)
above the mid-point towards the price axis
Ans. (d)
9. Under
perfect competition, supply curve is identified as which one of the following?
(a)
Rising portion of marginal cost curve
(b)
Rising portion of average total cost curve
(c)
Rising portion of average variable cost curve
(d)
Portion of marginal cost above the average variable cost curve
Ans. (d)
10.
Which one of the following is the correct sequence of magnitude of minima in
ascending order in marginal cost (MC) curve, average cost (AC) curve and
average variable cost (AVC) curve?
(a) MC,
AVC, AC
(b) AVC,
AC, MC
(c) MC,
AC. AVC
(d) AC,
MC, AVC
Ans. (a)
11.
Consider the following statements:
A. The
vertical distance from average cost (AC) curve to average variable cost
(%&VC) curve is average fixed cost (AEC).
B. AVC
curve, AC curve and marginal cost (MC) curve are ‘U shaped.
C. AFC
curve is horizontal to ‘X’ axis.
Which of
the statements given above are correct?
(a) 1
and 2
(b) 2
and 3
(c) 1
and 3
(d) 1, 2
and 3
Ans. (a)
12.
Short-run marginal cost of a firm does not contain any element of which of the
following?
(a)
Costs of raw materials
(b)
Salaries of the managerial staff
(c)
Wages of labour engaged on daily basis
(d) Cost
of fuel for operating machines engaged in production.
Ans. (c)
13.
Suppose a fisherman has a fishing net and a boat. He alone hunts fish in sea
for which he has to pay no license fee etc. Fish, caught by him, will have
which one of the following?
(a) Zero
economic cost of production as he makes no out-of-pocket payment to anybody and
is working of his own
(b)
Negative economic cost of production because he enjoys fishing and has to make
no payment
(c)
Positive cost of production due to his sacrificing the opportunity of working
elsewhere and renting out fishing net and boat etc
(d)
Infinite cost of production
Ans. (a)
14.
Income consumption line of the ‘Consumer Theory’ is analogous in ‘Production
Theory’ to which one of the following?
(a)
Expansion path
(b)
Isoquant line
(c)
Ridge line
(d)
Isocost line
Ans. (a)
15. Which
of the following is not correct in respect of Cobb-Douglas production function?
(a) It
was originally based on the empirical study of US manufacturing industry.
(b) It
is a linearly homogeneous production function, taking into account two factors,
labour and capital, for the entire output of the manufacturing industry.
(c) It
tells us that output depends upon labour and capital, and that part of output
which cannot be explained by labour and capital, is attributed to the residual.
(d) It
is based on the assumption of operation of law of diminishing returns.
Ans. (d)
16.
Which one of the following statements is correct? If the elasticity of
substitution between two factors X and Y be zero, then it implies that for a
given change in outputs,
(a) X
and Y will always change by the same proportion
(b)Y
changes but X remains the same
(c) X
changes but Y remains the same
(d) X
and Y both change necessarily by different proportion
Ans. (a)
17.
Consider the following statements:
According
to the law of variable proportions; total product is maximum when
A.
marginal product becomes zero.
B.
marginal product curve cuts average product curve from above.
C. slope
of marginal product curve is zero.
D.
tangent of the total product curve is parallel to the horizontal axis.
Which of
the statements given above are correct?
(a) A
and D
(b) C
and D
(c) A
and C
(d) B
and C
Ans. (c)
18.
Assertion (A): The monopolist never operates on the portion of the demand curve
which is inelastic. Reason (R) When elasticity of demand is less than unity MR
is negative.
Ans (a)
19.
Assertion (A): The Revealed Preference Hypothesis excludes the study of Giffin
Paradox
Reason
(R) Revealed Preference Hypothesis considers only negative income elasticity of
demand whereas Giffin Paradox relates to positive elasticity of demand.
Ans. (c)
20.
Assertion (A): Indifference curve for perfect substitute goods is a downward
sloping straight line. Reason (R): For perfect substitute goods, MRS is
falling.
Ans. (a)
21.
Assertion (A): There is no excess capacity under monopolistic competition in
the long run. Reason (R): The demand curve under monopolistic competition is
downward sloping.
Ans. (d)
22.
Assertion (A): M curve lies below the VMP curve under imperfect competition.
Reason
(R): Under imperfect competition MR < P.
Ans. (a)
23.
Which of the following statements about Pareto Optimum are correct?
A. It
changes with changes in the distribution of income.
B. At
the Pareto Optimum, MRS in consumption = MRT in production.
C. It is
not unique.
D. It is
obtained under imperfect competition.
Select
the correct answer using the codes given below:
(a) A
and B
(b) A, B
and C
(c) A, C
and D
(d) B
and C
Ans. (b)
24.
Match List- I (Economist) with List -II (Concept) and select the correct answer
using the codes given below the lists:
List-
I
List -II
(Economist)
(Concept)
A.
Pareto
1.
Compensation Principle
B.
Hicks-Kaldor
2.
Social Welfare Function
C.
Bergson
3.
Social Optimum
D.
Scitovsky
4. Double Criterion Compensation
Code:
A
B C D
(a) 3 1
2 4
(b) 2 4
3 1
(c) 3 4
2 1
(d) 2 1
3 4
Ans. (a)
25.
Which one of the following statements is correct?
In a
production process with two factors, land and labour, if the marginal
productivity of land is negative, then it is in
(a) the
stage I for land and stage II for labour
(b) the
stage II for land and labour
(c) the
stage I for land and stage III for labour
(d) the
stage I for labour and stage III for land
Ans. (b)
26.
Which one of the following statements is correct?
The
Engel Curve for Giffen goods is
(a)
positively sloped
In the
context of the figure above which of the following statements is/are correct?
A.
Investment is autonomous.
B.
Saving is autonomous.
C. Investment
is dependent on income.
D Saving
is dependent on income.
Select
the correct answer using the codes given below:
(a) B
and C
(b) A
and D
(c) B
only
(d) A
only
Ans. (b)
35.
consider the following consumption saving functions:
A. C =
200+0.8Y
B. S =
200+0.2Y
C. C =
150+0.8Y
D. S =
-150+0.2Y
Which of
the above are consistent pairs of functions?
(a) A
and B
(b) A
and D
(c) B
and C
(d) C
and D
Ans. (d)
36.
There are 2 assets A and B in which one can invest his savings of Rs. 1,000/.
Assume that there is no risk and interest rate is 10%.
Asset A
gives a return of Rs. 100/- in perpetuity
Asset B
gives Rs. 200/. at the end of year 1 and Rs. 900/- at-the end of the year 2.
Which
one of the following statements is correct?
(a)
Present value of A and B are the same.
(b)
Present value of B is higher than that of A.
(c)
Present value of A is higher than that of B.
(d)
Information is inadequate to determine the present value of A and B
Ans. (c)
37.
Which one of the following statements is correct?
Value of
output and value-added can be distinguished if we know
(a) the
value of intermediate inputs
(b) the
value of net indirect taxes
(c) the
value of imports
(d) the
value of consumption of fixed capital
Ans. (a)
38.
Given:
% Change
in nominal GNP = 1.8
% change
in population = 0.5
% change
in price level = 1.3
What is
the approximate percentage change in real per -capita GNP?
(a) Zero
(b) 0.5
(c) 1.0
(d) 1.3
Ans. (a)
39.
Match List- I (Concept) with List -II (Economist) and select the correct answer
using the codes given below the lists:
List
I
List
II
(Concept)
(Economist)
A.
Liquidity
trap
1. M. Friedman
B.
Demonstration effect
2. A.C. Pigou
C.
Permanent income hypothesis
3. J. Duesenberry
D.
Wealth
effect
4. J.M. Keynes
Code:
A B C D
(c) MP =
PT
(d) PV =
MT
Ans. (a)
47. If Y
is the total money income of the community M is the money supply and P is the
price level, than how is Vy (The income velocity of money) defined as?
(a) Vy =
M/Y
(b) Vy =
Y/M
(c) Vy =
Y/ (MP)
(d) Vy =
PY/M
Ans. (d)
48. When
shall an increase in money supply have a small effect on nominal Gross Domestic
Product?
(a) If
the velocity is decreasing
(b) If
the velocity is unchanged
(c) If
the velocity is increasing
(d) If
the Government spending is also increasing
Ans. (d)
49.
There are a number of banks in a market. The initial total primary deposit is
Rs. 1,000. Every bank is required to maintain a 10% reserve legally The
transactions are completely made through cheque and no transaction is made in
cash. W1{at will be the total credit creation in the market?
(a) Rs.
1,000
(b) Rs
5,000
(c) Rs.
10,000
(d) None
of these
Ans. (c)
50.
Which one of the following is a source of non-tax revenue for governments?
(a)
Import duty on cars
(b)
Octroi at cheek points on roads.
(c)
Entrance fee to museums,
(d)
Excise duty or beverages
Ans. (c)
Economics Objective Solved Questions for exams
1. The Laffer Curve explain the relationship between which of the following?
(a) Tax rates and tax revenue
(b) Tax rates and employment
(c) Tax rates and income
(d) Tax rates and government expenditure
Ans. (a)
2. What
does an increase in the ratio of revenue deficit to gross fiscal deficit
indicate?
(a) An increase in investment
(b) An increase in the utilization of borrowed funds for revenue purposes
(c) An increase in the utilization of borrowed funds for imports
(d) An increase in the utilization of borrowed funds for lending
Ans. (b)
(a) An increase in investment
(b) An increase in the utilization of borrowed funds for revenue purposes
(c) An increase in the utilization of borrowed funds for imports
(d) An increase in the utilization of borrowed funds for lending
Ans. (b)
3. If in
a year, the gross fiscal deficit of government is Its. 3,00,000 crores, revenue
deficit is Rs. 1,50,000 crores and interest payments are Rs. 80,000 crores,
which is the primary deficit of the government in the year?
(a) Rs. 23,000 crores
(b) Rs. 45,000 crores
(c) Rs 70,000 crores
(d) Rs. 2, 20,000 crores
Ans. (d)
(a) Rs. 23,000 crores
(b) Rs. 45,000 crores
(c) Rs 70,000 crores
(d) Rs. 2, 20,000 crores
Ans. (d)
4. Which
of the following may not be considered as a merit of the opportunity cost
theory over the Ricardian theory of comparative cost?
(a) It takes into account two or more factors of production instead of labour theory of value
(b) It takes into account the possibilities of trade under all the laws of production, instead of constant costs only as in the Ricardian theory
(c) The theory provides a theoretical framework for general equilibrium approach
(d) The theory considers the welfare point of view neglected by the Ricardian theory
Ans. (b)
(a) It takes into account two or more factors of production instead of labour theory of value
(b) It takes into account the possibilities of trade under all the laws of production, instead of constant costs only as in the Ricardian theory
(c) The theory provides a theoretical framework for general equilibrium approach
(d) The theory considers the welfare point of view neglected by the Ricardian theory
Ans. (b)
5. Which
one of the following statements is correct?
The Heckscher-Ohlin theory states that the most important cause of trade is the difference in:
(a) preferences
(b) technology
(c) magnitude
(d) factor endowments
Ans. (d)
The Heckscher-Ohlin theory states that the most important cause of trade is the difference in:
(a) preferences
(b) technology
(c) magnitude
(d) factor endowments
Ans. (d)
6. Which
one of the following statements is correct? The Leontief Paradox makes
(a) a critical analysis of Haberler theory of opportunity cost
(b) an empirical study of factor-price equalization theory of Samuelson
(c) an empirical testing of Mills theory of reciprocal demand
(d) an empirical testing of Heckscher-Ohlin theory of international trade
Ans. (d)
(a) a critical analysis of Haberler theory of opportunity cost
(b) an empirical study of factor-price equalization theory of Samuelson
(c) an empirical testing of Mills theory of reciprocal demand
(d) an empirical testing of Heckscher-Ohlin theory of international trade
Ans. (d)
7. What
is the theory that opening a country to world markets gives an opportunity to
utilize unemployed and underemployed resources known as?
(a) Ricardian theory
(b) Heckscher-Ohlin theory
(c) Vent-for surplus theory
(d) Strategic trade theory
Ans. (c)
(a) Ricardian theory
(b) Heckscher-Ohlin theory
(c) Vent-for surplus theory
(d) Strategic trade theory
Ans. (c)
8. Which
of the following are the basic components of typical IMP stabilization
programme?
A. Liberalization of foreign exchange.
B. Devaluation of the official exchange rate.
C. A comprehensive anti-inflation programme.
D. General opening-up of the economy to international commerce including foreign
investment.
Select the correct answer using the code given below:
(a) A and C
(b) B and D
(c) A, C and D
(d) A, B, C and D
Ans. (d)
A. Liberalization of foreign exchange.
B. Devaluation of the official exchange rate.
C. A comprehensive anti-inflation programme.
D. General opening-up of the economy to international commerce including foreign
investment.
Select the correct answer using the code given below:
(a) A and C
(b) B and D
(c) A, C and D
(d) A, B, C and D
Ans. (d)
9. Which
one of the following best characterizes the Bretton Woods System of exchange
rates?
(a) Adjustable fixed exchange rates
(b) Fixed e rates
(c) Adjustable pegged exchange rates
(d) Pegged, exchange rates
Ans. (b)
(a) Adjustable fixed exchange rates
(b) Fixed e rates
(c) Adjustable pegged exchange rates
(d) Pegged, exchange rates
Ans. (b)
10.
Which of the following is the highest form of economic integration among different
nations?
(a) Custom Union
(b) Free Trade Area
(c) Economic Union
(d) Common Market
Ans. (c)
(a) Custom Union
(b) Free Trade Area
(c) Economic Union
(d) Common Market
Ans. (c)
11.
Which one of the following explains balance-of-payment adjustment mechanism
under the gold standard?
(a) Devaluation
(b) Flexible exchange rates
(c) Income-adjustment mechanism
(d) Price-specie flow mechanism
Ans. (d)
(a) Devaluation
(b) Flexible exchange rates
(c) Income-adjustment mechanism
(d) Price-specie flow mechanism
Ans. (d)
12.
Which one of the following statements is not correct?
(a) The distinction between expenditure switching and expen4iture changing was propounded by FL U. Johnson
(b) The Absorption Approach to BOP was developed by Sydney Alexander
(c) The Elasticity Approach to BOP was associated with Stolper – Samuelson
(d) Stability condition in the foreign exchange market is known as Marshall – Lerne condition
Ans. (c)
(a) The distinction between expenditure switching and expen4iture changing was propounded by FL U. Johnson
(b) The Absorption Approach to BOP was developed by Sydney Alexander
(c) The Elasticity Approach to BOP was associated with Stolper – Samuelson
(d) Stability condition in the foreign exchange market is known as Marshall – Lerne condition
Ans. (c)
13. In
the Balance-of-Payment Account, the transfer payments are included in which one
of the following?
(a) Current account
(b) Service account
(c) Capital account
(d) Official reserves account
Ans. (a)
(a) Current account
(b) Service account
(c) Capital account
(d) Official reserves account
Ans. (a)
14.
Which of the following is not a non-tariff barrier?
(a) Voluntary export restraint
(b) Health and product standards
(c) Environmental protection laws
(d) Ad-valorem duties
Ans. (d)
(a) Voluntary export restraint
(b) Health and product standards
(c) Environmental protection laws
(d) Ad-valorem duties
Ans. (d)
15.
Which one of the following statements is correct?
The production possibility curve under increasing
opportunity cost is
(a) concave to the origin
(b) convex to the origin
(c) a straight line parallel to the x – axis
(d) a straight line parallel to the y – axis
Ans. (a)
The production possibility curve under increasing
opportunity cost is
(a) concave to the origin
(b) convex to the origin
(c) a straight line parallel to the x – axis
(d) a straight line parallel to the y – axis
Ans. (a)
16.
Match List -I (Terms of Trade) with List- II (Explanation) and select the
correct answer using the codes given below the lists:
List-I List-II
(Terms of Trade) (Explanation)
A. Gross barter terms of trade 1.The ratio between the quantity of a country’s
imports and exports
B. Income terms of trade 2. (Index of export prices)
x (export quantity)
Index of import prices
List-I List-II
(Terms of Trade) (Explanation)
A. Gross barter terms of trade 1.The ratio between the quantity of a country’s
imports and exports
B. Income terms of trade 2. (Index of export prices)
x (export quantity)
Index of import prices
C.
Single factoral terms of trade 3. Obtained by multiplying the commodity terms
of
trade by an index of productivity
changes in domestic export industries
4. The ratio of a country’s export price index to its
import price index
Code:
A B C
(a) 3 4 1
(b) 1 2 3
(c) 3 2 1
(d) 1 4 3
Ans. (b)
trade by an index of productivity
changes in domestic export industries
4. The ratio of a country’s export price index to its
import price index
Code:
A B C
(a) 3 4 1
(b) 1 2 3
(c) 3 2 1
(d) 1 4 3
Ans. (b)
17.
Under which one of the following fundamental assumptions, Solow was able to
show that steady state growth was possible and stable?
(a) Flexible JVL ratio
(b) Flexible S/Y ratio
(c) Constant growth-rate of population
(d) Constant rate of technical change
Ans. (a)
(a) Flexible JVL ratio
(b) Flexible S/Y ratio
(c) Constant growth-rate of population
(d) Constant rate of technical change
Ans. (a)
18.
Match List -I (Concept) with List -II (Explanation) and select the correct
answer using the codes given below the lists:
List-I List- II
(Concept) (Explanation)
List-I List- II
(Concept) (Explanation)
A.
Vicious circle of poverty 1. Massive increase in investment to initiate
economic
development in LDC’s
B. Balanced growth 2. A stagnant low level of investment
C. Big push 3. Simultaneous investment in all inter-related industries
Code:
A B C
(a) 2 3 1
(b) 1 2 3
(c) 2 1 3
(d) 1 3 2
Ans. (a)
development in LDC’s
B. Balanced growth 2. A stagnant low level of investment
C. Big push 3. Simultaneous investment in all inter-related industries
Code:
A B C
(a) 2 3 1
(b) 1 2 3
(c) 2 1 3
(d) 1 3 2
Ans. (a)
19. Who
among the following developed the Wage-Goods model?
(a) M. Dobb
(b) A. K. Sen
(c) Vakil and Brahmananda
(d) P C. Mahalanobis
Ans. (c)
(a) M. Dobb
(b) A. K. Sen
(c) Vakil and Brahmananda
(d) P C. Mahalanobis
Ans. (c)
20.
Using Harrod-Domar growth equation. What is the rate of growth of a closed
economy with C/Y = 3/4and AK / ÀY = 3 where, C = consumption, Y =output, K =
capital?
(a) 8.66%
(b) 8.50%
(c) 8.33%
(d) 7.50%
Ans. (c)
(a) 8.66%
(b) 8.50%
(c) 8.33%
(d) 7.50%
Ans. (c)
21.
Match List -I (Economist) with List– II (Concept/Theory) and select the correct
answer using the codes given below the lists:
List- I
List-II
(Economist) (Concept/Theory)
A. Ragner Nurkse 1. Backwash effects
B. Paul N. Rosenstein Rodan 2. Theory of balanced growth
C. Gunnar Myrdal 3. The big push theory
D. A.O. Hirschman 4. Theory of unbalanced growth
Code:
A B C D
(a) 2 1 3 4
(b) 4 3 1 2
(c) 2 3 1 4
(d) 4 1 3 2
Ans. (c)
(Economist) (Concept/Theory)
A. Ragner Nurkse 1. Backwash effects
B. Paul N. Rosenstein Rodan 2. Theory of balanced growth
C. Gunnar Myrdal 3. The big push theory
D. A.O. Hirschman 4. Theory of unbalanced growth
Code:
A B C D
(a) 2 1 3 4
(b) 4 3 1 2
(c) 2 3 1 4
(d) 4 1 3 2
Ans. (c)
22.
Match List I (Property of -a Plan) with List II (Model Used) and select the
correct answer using the codes given below the lists:
List -I List -II
(Property of a Plan) (Model used)
A. Feasibility 1. Input-output model
B. Consistency 2. Linear programming
C. Optimality 3. Harrod- Domar type
Codes:
A B C
(a) 1 2 3
(b) 3 1 2
(c) 2 3 1
(d) 1 3 2
Ans. (b)
List -I List -II
(Property of a Plan) (Model used)
A. Feasibility 1. Input-output model
B. Consistency 2. Linear programming
C. Optimality 3. Harrod- Domar type
Codes:
A B C
(a) 1 2 3
(b) 3 1 2
(c) 2 3 1
(d) 1 3 2
Ans. (b)
23. What
is the technical progress that increases the productivity of labour (L)
proportionately more than the productivity of capital (K) and results in an
increase in L/K at constant relative factor prices, called?
(a) Labour saving technical progress
(b) Natural technical progress
(c) Wage saving technical progress
(d) Capital-saving technical progress
Ans. (d)
(a) Labour saving technical progress
(b) Natural technical progress
(c) Wage saving technical progress
(d) Capital-saving technical progress
Ans. (d)
24.
Match List I with List I and select the correct answer using the codes given
below the lists:
List-I List -II
A. Aggregate Growth Model 1. Western models as applied to the
situation of developing countries
B. Multi-sector Growth Model 2. Analysis of growth in terms of inter-
dependence of sectors
C. Harrod-Domar Growth Model 3. Deals with the entire economy by
examining a set of important macro
variables
D. The False Paradigm Model 4. For a specific growth-rate and a given
capital output ratio, the required rate of
domestic investment is determined
Codes:
A B C D
(a) 4 2 3 1
(b) 3 1 2 4
(c) 3 2 4 1
(d) 4 3 1 2
Ans. (c)
List-I List -II
A. Aggregate Growth Model 1. Western models as applied to the
situation of developing countries
B. Multi-sector Growth Model 2. Analysis of growth in terms of inter-
dependence of sectors
C. Harrod-Domar Growth Model 3. Deals with the entire economy by
examining a set of important macro
variables
D. The False Paradigm Model 4. For a specific growth-rate and a given
capital output ratio, the required rate of
domestic investment is determined
Codes:
A B C D
(a) 4 2 3 1
(b) 3 1 2 4
(c) 3 2 4 1
(d) 4 3 1 2
Ans. (c)
25.
Consider the following statements:
Lewis’ model of development with unlimited supplies of labour will fail to work to the full extent if:
A. there is no disguised unemployment in the traditional sector.
B. modem sector wages do not remain constant up to the point that surplus labour is exhausted.
C. investment in the modern sector is labour-saving.
Which of the statements given above is/are correct?
(a) A only
(b) A and B
(c) B and C
(d) A, B and C
Ans. (c)
Lewis’ model of development with unlimited supplies of labour will fail to work to the full extent if:
A. there is no disguised unemployment in the traditional sector.
B. modem sector wages do not remain constant up to the point that surplus labour is exhausted.
C. investment in the modern sector is labour-saving.
Which of the statements given above is/are correct?
(a) A only
(b) A and B
(c) B and C
(d) A, B and C
Ans. (c)
26.
Which one of the following models explains the paradox pertaining to the
rural-urban migration in the context of rising urban employment?
(a) Lewis model
(b) Todano model
(c) Solow model
(d) Mahalanobis model
Ans. (b)
(a) Lewis model
(b) Todano model
(c) Solow model
(d) Mahalanobis model
Ans. (b)
27. The
Mahalanobis model was developed for which of the following plans?
(a) First Five Year Plan
(b) Second Five Year Plan
(c) Third Five Year Plan
(d) Fourth Five Year Plan
Ans. (b)
(a) First Five Year Plan
(b) Second Five Year Plan
(c) Third Five Year Plan
(d) Fourth Five Year Plan
Ans. (b)
28- What
is the correct sequence of the following approaches to development in terms of
their chronological emergence?
A. Basic needs approach.
B Per capita income approach.
C. Human development index approach.
Select the correct answer using the codes given below:
(a) A, B, C
(b) B, A, C
(c) B, C, A
(d) A, C, B
Ans. (b)
A. Basic needs approach.
B Per capita income approach.
C. Human development index approach.
Select the correct answer using the codes given below:
(a) A, B, C
(b) B, A, C
(c) B, C, A
(d) A, C, B
Ans. (b)
29. On
which of the following grounds is increasing inequality justified in initial
stages of development?
(a) It puts greater incomes in the hands of those who have greater average propensity to consume
(b) It puts greater incomes in the hands of those who have greater average propensity to save
(c) It puts greater incomes in the hands of those who have greater marginal propensity to consume
(d) It puts greater incomes in the hands of those who have greater marginal propensity to save
Ans. (a)
(a) It puts greater incomes in the hands of those who have greater average propensity to consume
(b) It puts greater incomes in the hands of those who have greater average propensity to save
(c) It puts greater incomes in the hands of those who have greater marginal propensity to consume
(d) It puts greater incomes in the hands of those who have greater marginal propensity to save
Ans. (a)
30.
Which of the following is meant by growth in the context of growth and
development?
(a) Growth of gross national product in money terms
(b) Growth of per capita income in money terms
(c) Growth of gross national product in real terms
(d) Growth of per capita income in real terms
Ans. (c)
(a) Growth of gross national product in money terms
(b) Growth of per capita income in money terms
(c) Growth of gross national product in real terms
(d) Growth of per capita income in real terms
Ans. (c)
31. What
is the ratio between the price of a country’s export goods and price of its
import goods known as?
(a) Single factoral terms of trade
(b) Double factoral terms of trade
(c) Net barter terms of trade
(d) Income terms of trade
Ans. (c)
(a) Single factoral terms of trade
(b) Double factoral terms of trade
(c) Net barter terms of trade
(d) Income terms of trade
Ans. (c)
32. The two
gaps in a two-gap model refer to which of the following?
A. Revenue expenditure gap
B. Saving investment gap
Select the correct answer using the codes given below:
(a) A only
(b) B only
(c) Both A and B
(d) Neither A nor B
Ans. (b)
A. Revenue expenditure gap
B. Saving investment gap
Select the correct answer using the codes given below:
(a) A only
(b) B only
(c) Both A and B
(d) Neither A nor B
Ans. (b)
33.
Which of the following is not a characteristic of indicative planning?
(a) The government sets targets for all sectors of the economy including those dominated by private enterprises
(b) The emphasis is on consistency of the targets with each other
(c) Given the consistency of targets with each other, the government directs the private enterprises to attain those targets
(d) The government provides the right incentives to the private sector to attain the targets
Ans. (b)
(a) The government sets targets for all sectors of the economy including those dominated by private enterprises
(b) The emphasis is on consistency of the targets with each other
(c) Given the consistency of targets with each other, the government directs the private enterprises to attain those targets
(d) The government provides the right incentives to the private sector to attain the targets
Ans. (b)
34. If
median and mode of a set of observations are 20.6 and 26 respectively, then
what is the value of mean of the observation?
(a) 16
(b) 17.9
(c) 18.4
(d) 19
Ans. (b)
(a) 16
(b) 17.9
(c) 18.4
(d) 19
Ans. (b)
35.
Lorenz curve enables one to study which of the following?
(a) Averages
(b) Dispersion
(c) Correlation
(d) Index numbers
Ans. (b)
(a) Averages
(b) Dispersion
(c) Correlation
(d) Index numbers
Ans. (b)
36. Which
one of the following is correct for a normal distribution?
(a) Standard deviation > Mean deviation> Quartile deviation
(b) Quartile deviation > Mean deviation > Standard deviation
(c) Mean deviation> Standard deviation > Quartile deviation
(d) Quartile deviation > Mean deviation > Standard deviation
Ans. (a)
(a) Standard deviation > Mean deviation> Quartile deviation
(b) Quartile deviation > Mean deviation > Standard deviation
(c) Mean deviation> Standard deviation > Quartile deviation
(d) Quartile deviation > Mean deviation > Standard deviation
Ans. (a)
37.
Coefficient of correlation is independent of which of the following?
(a) Change of origin only
(b) Change of scale only
(c) Change of origin and scale
(d) None of the above
Ans. (c)
(a) Change of origin only
(b) Change of scale only
(c) Change of origin and scale
(d) None of the above
Ans. (c)
38. The
Command Area Development Programme (CADP) has been renamed as which one of the
following?
(a) Command Area Development and Water Management Programme
(b) Command Area Development and Forest Conservation Programme
(c) Command Area Development and Pollution Control Programme
(d) None of the above
Ans. (a)
(a) Command Area Development and Water Management Programme
(b) Command Area Development and Forest Conservation Programme
(c) Command Area Development and Pollution Control Programme
(d) None of the above
Ans. (a)
39.
Which one of the following indices satisfies both time reversal and factor
reversal tests?
(a) Laspeyre’s index number
(b) Fischer’s index number
(c) Paasche’s index number
(d) Kelly index number
Ans. (b)
(a) Laspeyre’s index number
(b) Fischer’s index number
(c) Paasche’s index number
(d) Kelly index number
Ans. (b)
40.
Which one of the following index numbers is based on geometric mean?
(a) Laspeyre’s index number
(b) Fischer’s index number
(c) Paasche’s index number
(d) Bowley’s index number
Ans. (b)
(a) Laspeyre’s index number
(b) Fischer’s index number
(c) Paasche’s index number
(d) Bowley’s index number
Ans. (b)
……………………………………………………..
UPSC Economics MCQ Quiz
1. What does infant mortality rate refer to?
(a) The ratio of number of children who die before their fifth birthday out of every 1000 live births
(b) The ratio of number of children who die before their first birthday out of every 100 live births
(c) The ratio of number of children who die before their fifth birthday out of every 100 live births
(d) The ratio of number of children who die before their first birthday out of everyl000 live births
Ans. (d)
1. What does infant mortality rate refer to?
(a) The ratio of number of children who die before their fifth birthday out of every 1000 live births
(b) The ratio of number of children who die before their first birthday out of every 100 live births
(c) The ratio of number of children who die before their fifth birthday out of every 100 live births
(d) The ratio of number of children who die before their first birthday out of everyl000 live births
Ans. (d)
2. Which
among the following is not a committed expenditure of the Government of India?
(a) Interest payments
(b) Pay and allowances
(c) Transfers to States andUnion Territories
(d) Loans and advances to States andUnion
Territories
Ans. (d)
(a) Interest payments
(b) Pay and allowances
(c) Transfers to States and
(d) Loans and advances to States and
Ans. (d)
3.
Consider the following statements:
A. Annual Survey of Industries (ASI) extends to the entire country
B. ASI covers all factories registered under Sections 2m (i) and 2m (ii) of the Factories Act 1948.
Which of the statements given above is/are correct?
(a) A only (b) B only (c) Both A and B (d) Neither A nor B
Ans. (b)
A. Annual Survey of Industries (ASI) extends to the entire country
B. ASI covers all factories registered under Sections 2m (i) and 2m (ii) of the Factories Act 1948.
Which of the statements given above is/are correct?
(a) A only (b) B only (c) Both A and B (d) Neither A nor B
Ans. (b)
4. Who
was the Chairman of the committee appointed in 2006 for setting out a roadmap
towards fuller capital account convertibility?
(a) S.S. Tarapore
(c) C. Rangarajan
(d) M. Narasimham
(d) O.P. Sodhani
Ans. (a)
(a) S.S. Tarapore
(c) C. Rangarajan
(d) M. Narasimham
(d) O.P. Sodhani
Ans. (a)
5. In
which of the following years, was the trade balance favorable to India
(a) 1970-71 and 1974-75
(b) 1972-73 and 1976-77
(c) 1972-73 and 1975-76
(d) 1971-72 and 1976-77
Ans. (b)
(a) 1970-71 and 1974-75
(b) 1972-73 and 1976-77
(c) 1972-73 and 1975-76
(d) 1971-72 and 1976-77
Ans. (b)
6.
Consider the following statements:
A. The Fifth Economic Census was conducted by CSO in the year 2007.
B. Intelligent Character Recognition (ICR) technology is being used for detailed processing of the data collected in the Fifth Economic Census.
Which of the statements given above is/are correct?
(a) A only (b) B only (c) Both A and B (d) Neither A nor B
Ans. (b)
A. The Fifth Economic Census was conducted by CSO in the year 2007.
B. Intelligent Character Recognition (ICR) technology is being used for detailed processing of the data collected in the Fifth Economic Census.
Which of the statements given above is/are correct?
(a) A only (b) B only (c) Both A and B (d) Neither A nor B
Ans. (b)
7.
During which of the following years, average growth/rate (at constant prices)
of agriculture and allied sectors negative?
(a) 2002-03
(b) 2003-04
(c) 2005-06
(d) 2006-07
Ans. (a)
(a) 2002-03
(b) 2003-04
(c) 2005-06
(d) 2006-07
Ans. (a)
8. Which
of the following are the goals of Santa Shiksha Abhiyan (SSA)?
A. All children of 6-14 years age in school/EGS (Education Guarantee Scheme) Centre/bridge course by the year 2015.
B. Bridge all gender and social category gaps at primary stage by the year 2007 and at elementary education level by the year 2010.
C. Universal retention by the year 2020.
Select the correct answer using the codes given below:
(a) A and B (b) B and C (c) A and C (d) A, B and C
Ans. (a)
A. All children of 6-14 years age in school/EGS (Education Guarantee Scheme) Centre/bridge course by the year 2015.
B. Bridge all gender and social category gaps at primary stage by the year 2007 and at elementary education level by the year 2010.
C. Universal retention by the year 2020.
Select the correct answer using the codes given below:
(a) A and B (b) B and C (c) A and C (d) A, B and C
Ans. (a)
9.
Consider the following:
A. Kennedy Round of negotiations.
B. Uruguay Round of negotiations.
C. Tokyo Round of negotiations.
Which is the correct chronological sequence of the
above?
(a) A, B, C
(b) C, A, B
(c) A, C, B
(d) B, A, C
Ans. (a)
A. Kennedy Round of negotiations.
B. Uruguay Round of negotiations.
C. Tokyo Round of negotiations.
Which is the correct chronological sequence of the
above?
(a) A, B, C
(b) C, A, B
(c) A, C, B
(d) B, A, C
Ans. (a)
10. Why
is demographic dividend likely to be manifested in India
(a) Population in the age group between 8-15 years is likely to increase
(b) Population of children below 7 years is likely to increase
(c) Population in the age group of 15-64 years is likely to increase
(d) Population in the age group above 65 years is likely to increase
Ans. (c)
(a) Population in the age group between 8-15 years is likely to increase
(b) Population of children below 7 years is likely to increase
(c) Population in the age group of 15-64 years is likely to increase
(d) Population in the age group above 65 years is likely to increase
Ans. (c)
11.
Which one of the following is not the target stipulated in the Tenth Five-Year
Plan?
(a) Creating 50 million job opportunities
(b) Reduction in poverty ratio from 26 percent to 21 percent
(c) Reducing gender gaps in literacy and wages rates by 50 percent
(d) Doubling per capita income in 8 years
Ans. (d)
(a) Creating 50 million job opportunities
(b) Reduction in poverty ratio from 26 percent to 21 percent
(c) Reducing gender gaps in literacy and wages rates by 50 percent
(d) Doubling per capita income in 8 years
Ans. (d)
12.
Consider the following items which are assigned weight in calculating wholesale
price index in India
1. Primary articles
2. Fuel, power light and lubricants
3. Food products
4. Chemicals and chemical products
Which one of the following is the correct order of the above items in descending order in terms of their weight in the price index?
(a) 1-2-3-4
(b) 1-2-4-3
(c) 4-3-2-1
(d) 1-3-2-4
Ans. (b)
1. Primary articles
2. Fuel, power light and lubricants
3. Food products
4. Chemicals and chemical products
Which one of the following is the correct order of the above items in descending order in terms of their weight in the price index?
(a) 1-2-3-4
(b) 1-2-4-3
(c) 4-3-2-1
(d) 1-3-2-4
Ans. (b)
113. Consider
the following components of financial saving of the household sector in India
1. Currency
2. Deposits
3. Shares and debentures
4. Insurance funds
Which one of the following is the correct order of the aforesaid items in descending order in terms of their contribution to the financial saving of the household sector in the year 2005-06?
(a) 1-2-3-4
(b) 2-1-3-4
(c) 2-4-1-3
(d) 4-2-l-3
Ans. (b)
1. Currency
2. Deposits
3. Shares and debentures
4. Insurance funds
Which one of the following is the correct order of the aforesaid items in descending order in terms of their contribution to the financial saving of the household sector in the year 2005-06?
(a) 1-2-3-4
(b) 2-1-3-4
(c) 2-4-1-3
(d) 4-2-l-3
Ans. (b)
14. What
is the approximate share of SSIs in gross industrial value added in the Indian
economy?
(a) 25% (b) 30% (c) 40% (d) 45%
Ans. (d)
(a) 25% (b) 30% (c) 40% (d) 45%
Ans. (d)
15.Consider
the following sectors, contributing to India
1. Agriculture and allied activities
2. Industry
3. Construction
4. Community social and personal services
Which one of the following is the correct descending order in respect of their contribution?
(a) 1-4-3-2 .
(b) 1-2-4-3
(c) 3-4-2-1
(d) 3-2-1-4
Ans. (c)
1. Agriculture and allied activities
2. Industry
3. Construction
4. Community social and personal services
Which one of the following is the correct descending order in respect of their contribution?
(a) 1-4-3-2 .
(b) 1-2-4-3
(c) 3-4-2-1
(d) 3-2-1-4
Ans. (c)
16. The
12th Finance Commission has recommended to bring down the revenue deficit of
the centre and states to zero by which year?
(a) 2006- 07
(b) 2007- 08
(c) 2008- 09
(d) 2009 -10
Ans. (c)
(a) 2006- 07
(b) 2007- 08
(c) 2008- 09
(d) 2009 -10
Ans. (c)
17. In
which of the following years, the share of FIL (net) flows into Indian economy
was the highest?
(a) 1999-2000
(b) 2000-01
(c) 2003-04
(d) 2004-05
Ans. (d)
(a) 1999-2000
(b) 2000-01
(c) 2003-04
(d) 2004-05
Ans. (d)
18.
Among different items of import of capital goods to India during the year
2005-06, which one of the following was the highest in the value terms ?
(a) Machine tools
(b) Electronic goods including computer software
(c) Transport equipments
(d) Project goods
Ans. (a)
(a) Machine tools
(b) Electronic goods including computer software
(c) Transport equipments
(d) Project goods
Ans. (a)
19.
Among the items of export of agricultural and allied products from India during
the year 2005-06, which one of the following was the highest in the value
(a) Tea
(b Coffee
(c) Rice
(d) Marine products
Ans. (c)
(a) Tea
(b Coffee
(c) Rice
(d) Marine products
Ans. (c)
20.
Consider the follow important sources of tax revenue for the Central Government
1. Corporation tax
2. Taxes on income other than corporation tax
3. Union excise duties
4. Service tax
Which one of the following is the correct order of the aforesaid taxes in descending order in terms of their yield as proposed in the Union Budget 2006-07?
(a) 1-2-3-4
(b) 1-3-2-4
(c) 2-3-1-4
(d) 4-2-3-1
Ans. (b)
1. Corporation tax
2. Taxes on income other than corporation tax
3. Union excise duties
4. Service tax
Which one of the following is the correct order of the aforesaid taxes in descending order in terms of their yield as proposed in the Union Budget 2006-07?
(a) 1-2-3-4
(b) 1-3-2-4
(c) 2-3-1-4
(d) 4-2-3-1
Ans. (b)
21. The
Twelfth Finance Commission has recommended States’ share in the divisible pool
of taxes at what percentage?
(a) 26.5 percent
(b) 28.5 percent
(c) 29.5 percent
(d) 303 percent
Ans. (c)
(a) 26.5 percent
(b) 28.5 percent
(c) 29.5 percent
(d) 303 percent
Ans. (c)
22.
Consider the following statements about the National Agricultural Insurance
Scheme (NAIS):
1. The scheme has been implemented from Rabi 1999-2000 season.
2. The scheme is availab1a non-loanee farmers only.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(c Neither 1 nor 2
Ans. (a)
1. The scheme has been implemented from Rabi 1999-2000 season.
2. The scheme is availab1a non-loanee farmers only.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(c Neither 1 nor 2
Ans. (a)
23. In
the total deployment of gross bank credit, which one of the following sectors
had the maximum share as in March, 2006?
(a) Agriculture and allied activities
(b) Services
(c) Personal loan
(d) Trade
Ans. (a)
(a) Agriculture and allied activities
(b) Services
(c) Personal loan
(d) Trade
Ans. (a)
24. As
per use-based classification, which one of the following sectors had recorded
highest growth in the year 2005-06?
(a) Basic goods
(b) Capital goods
(c) Consumer goods
(d) Intermediate goods
Ans. (b)
(a) Basic goods
(b) Capital goods
(c) Consumer goods
(d) Intermediate goods
Ans. (b)
25. In
which one of the following years, the National Food Processing Policy was
formulated?
(a) 2003
(b) 2004
(c) 2005
(d) 2006
Ans. (c)
(a) 2003
(b) 2004
(c) 2005
(d) 2006
Ans. (c)
26.
Consider the following statements:
Accelerated Irrigation Benefit Programme (AIBP) was modified in the year 2004 to provide
1. the central assistance in the form of 70 percent loan and 30 percent grant for non-special category states.
2. the central assistance in the form of 10 percent loan and 90 percent grant for special category states.
3. the central assistance in the form of conversion of the loan to grant if projects are completed on schedule.
Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 3
(c) 2 and 3
(d) 1, 2 and 3
Ans. (d)
Accelerated Irrigation Benefit Programme (AIBP) was modified in the year 2004 to provide
1. the central assistance in the form of 70 percent loan and 30 percent grant for non-special category states.
2. the central assistance in the form of 10 percent loan and 90 percent grant for special category states.
3. the central assistance in the form of conversion of the loan to grant if projects are completed on schedule.
Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 3
(c) 2 and 3
(d) 1, 2 and 3
Ans. (d)
27. The
Command Area Development Programme (CADP) has been renamed as which one of the
following?
(a) Command Area Development and Water Management Programme
(b) Command Area Development and Forest Conservation Programme
(c) Command Area Development and Pollution Control Programme
(d) None of the above
Ans. (a)
(a) Command Area Development and Water Management Programme
(b) Command Area Development and Forest Conservation Programme
(c) Command Area Development and Pollution Control Programme
(d) None of the above
Ans. (a)
28.
Consider the following statements:
A. The coverage of Integrated Child Development Programme is limited and often the youngest children in the 0-3 year age group get left out of its ambit.
B. According to ICMR, at any given time, 7-15% of Indian children suffer from mental disorder
Which of the statements given above is/are correct?
(a) A only
(b) B only
(c) Both A and B
(d) Neither A nor B
Ans. (b)
A. The coverage of Integrated Child Development Programme is limited and often the youngest children in the 0-3 year age group get left out of its ambit.
B. According to ICMR, at any given time, 7-15% of Indian children suffer from mental disorder
Which of the statements given above is/are correct?
(a) A only
(b) B only
(c) Both A and B
(d) Neither A nor B
Ans. (b)
29.
Which group of infrastructure industry has the highest gap in targets and
achievements of production during the year 2006-07?
(a) Fished Steel
(b) Crude Petroleum
(c) Power
(d) Fertilizers
Ans. (a)
(a) Fished Steel
(b) Crude Petroleum
(c) Power
(d) Fertilizers
Ans. (a)
30. The
National Horticulture Mission
(a) 2010
(b) 2011
(c) 2012
(d) 2015
Ans. (c)
(a) 2010
(b) 2011
(c) 2012
(d) 2015
Ans. (c)
31
Consider the following agreements:
A. ISLFTA. (India -Sri Lanka Free Trade Agreement).
B. SAFTA (South Asia Free Trade Area).
C. CECA (Comprehensive Economic Co-operation Agreement betweenIndia and Singapore
D. SAPTA (South Asia Preferential Trade Area).
Which one of the following is the correct chronological sequence of the above agreements?
(a) A, C, B, D
(b) D, A, B, C
(c) B, A, D, C
(d) A, B, C, D
Ans. (a)
A. ISLFTA. (India -Sri Lanka Free Trade Agreement).
B. SAFTA (
C. CECA (Comprehensive Economic Co-operation Agreement between
D. SAPTA (
Which one of the following is the correct chronological sequence of the above agreements?
(a) A, C, B, D
(b) D, A, B, C
(c) B, A, D, C
(d) A, B, C, D
Ans. (a)
32.
Which region of India
(a) Northern
(b) Western
(c) North-Eastern
(d) Southern
Ans. (c)
(a) Northern
(b) Western
(c) North-Eastern
(d) Southern
Ans. (c)
33.
Consider the following statements:
A. Varsha Bima, the rainfall insurance scheme, is managed by the Agricultural Insurance Company of India Ltd. (ATCIL).
B. The scheme was introduced during the 2007 south-west monsoon period.
Which of the statements given above is/are correct?
(a) A only
(b) B only
(c) Both A and B
(d) Neither A nor B
Ans. (a)
A. Varsha Bima, the rainfall insurance scheme, is managed by the Agricultural Insurance Company of India Ltd. (ATCIL).
B. The scheme was introduced during the 2007 south-west monsoon period.
Which of the statements given above is/are correct?
(a) A only
(b) B only
(c) Both A and B
(d) Neither A nor B
Ans. (a)
34. Thx
on Banking Cash Transactions (withdrawals) over a certain threshold in a single
day w introduced in the Union Budget of which year?
(a) 2002-03
(b) 2004-05
(c) 2005-06
(d) 2006-07
Ans. (c)
(a) 2002-03
(b) 2004-05
(c) 2005-06
(d) 2006-07
Ans. (c)
35. Who
among the following has suggested migration to accrual accounting system from
cash based accounting system in India
(a) I.V. Reddy
(b) R.H. Patil
(c) D.N. Ghosh
(d) C. Rangarajan
Ans. (c)
(a) I.V. Reddy
(b) R.H. Patil
(c) D.N. Ghosh
(d) C. Rangarajan
Ans. (c)
36. In
which of the following years was the tax revenue as a percentage of GDP the
lowest?
(a) 2002-03
(b) 2003-04
(c) 2004-05
(d) 2005-06
Ans. (a)
(a) 2002-03
(b) 2003-04
(c) 2004-05
(d) 2005-06
Ans. (a)
37.
Which one of the following is the proportion of rain-fed agriculture to the net
sown area in India
(a) 40%
(b) 50%
(c) 60%
(d) 72%
Ans. (a)
(a) 40%
(b) 50%
(c) 60%
(d) 72%
Ans. (a)
38.
Consider the following statements about industrial relations on the basis of
Economic Survey:
A. There was a constant decline in the number of strikes and lockouts during 2000-OS inIndia
B. The maximum number of strikes and lockouts in the year 2006 were experienced by Kerala, followed by Tamil Nadu andWest Bengal .
Which of the statements given above is/are correct?
(a) A only
(b) B only
(c) Both A and B
(d) Neither A nor B
Ans. (a)
A. There was a constant decline in the number of strikes and lockouts during 2000-OS in
B. The maximum number of strikes and lockouts in the year 2006 were experienced by Kerala, followed by Tamil Nadu and
Which of the statements given above is/are correct?
(a) A only
(b) B only
(c) Both A and B
(d) Neither A nor B
Ans. (a)
39. What
is a strategy which makes an all-out effort to provide the masses of people in India
(a) Inclusive growth strategy
(b) Exclusive growth strategy
(c) Rapid growth strategy
(d) Balanced growth strategy
Ans. (a)
(a) Inclusive growth strategy
(b) Exclusive growth strategy
(c) Rapid growth strategy
(d) Balanced growth strategy
Ans. (a)
40.
Which of the following sectors has the largest percentage share in India
(a) Chemicals and related goods
(b) Engineering goods
(c) Gems and jewellery
(d) Textiles including readymade garments
Ans. (b)
(a) Chemicals and related goods
(b) Engineering goods
(c) Gems and jewellery
(d) Textiles including readymade garments
Ans. (b)
41. It
Which sector has attracted highest FDI inflows during the period from August
1991 to September2006 (in % share)?
(a) Services sector
(b) Electrical equipments
(c) Telecommunications
(d) Transportation industry
Ans. (b)
(a) Services sector
(b) Electrical equipments
(c) Telecommunications
(d) Transportation industry
Ans. (b)
42.
Which one of the following statements is correct?
(a) External Debt / GDP ratio has declined consistently after the year 2003
(b) External Debt / GDP ratio has fluctuated after the year 2003
(c) External Debt/GOP ratio has increased after the year 2003
(d) External Debt/GDP ratio has remained constant after the year 2003
Ans (a)
(a) External Debt / GDP ratio has declined consistently after the year 2003
(b) External Debt / GDP ratio has fluctuated after the year 2003
(c) External Debt/GOP ratio has increased after the year 2003
(d) External Debt/GDP ratio has remained constant after the year 2003
Ans (a)
43. NSSO
regularly collects rural retail prices on monthly basis from selected markets
for compilation of Consumer Price Index Number. Which one of the following is
the correct pair of samples collected for the purpose?
(a) 403 villages and 39 urban centers
(b) 503 villages and 49 urban centers
(c) 603 villages and 59 urban centers
(d) 703 villages and 69 urban centers
Ans. (c)
(a) 403 villages and 39 urban centers
(b) 503 villages and 49 urban centers
(c) 603 villages and 59 urban centers
(d) 703 villages and 69 urban centers
Ans. (c)
44.
Which one of the following is not proposed in the approach paper to the 11th
Five Year Plan as important new social interventions?
(a) Provide freedom and resources to select institutions so that they attain global standards by the year 2011-12.
(b) Grant old age pension to the widows, handicapped and deserted and separated women.
(c) Ensure adequate representation of women in• elected bodies, State Legislatures, and the Parliament.
(d) Provide emergency obstetrics care facilities within 2 hours travel from every habitat.
Ans. (d)
(a) Provide freedom and resources to select institutions so that they attain global standards by the year 2011-12.
(b) Grant old age pension to the widows, handicapped and deserted and separated women.
(c) Ensure adequate representation of women in• elected bodies, State Legislatures, and the Parliament.
(d) Provide emergency obstetrics care facilities within 2 hours travel from every habitat.
Ans. (d)
45.
Which of th€ following statements pertaining to the strategy to raise
agricultural output during the 11th Five Year Plan, are correct?
A. Double the rate of growth of irrigated area.
B. Improve water management, rain water harvesting and watershed development.
C. Provide easy access to credit at affordable rates.
Select the correct answer using the codes given below:
(a) A and B
(b) B and C
(c) A and C
(d) A, B and C
Ans. (a)
A. Double the rate of growth of irrigated area.
B. Improve water management, rain water harvesting and watershed development.
C. Provide easy access to credit at affordable rates.
Select the correct answer using the codes given below:
(a) A and B
(b) B and C
(c) A and C
(d) A, B and C
Ans. (a)
46..
With one area of infrastructure is not included in Bharat Nirman Scheme
(2005-09)?
(a) Irrigation
(b) Rural roads
(c) Rural health
(d) Rural housing
Ans. (c)
(a) Irrigation
(b) Rural roads
(c) Rural health
(d) Rural housing
Ans. (c)
47.
Which of the following is/are not monitorable target(s) for the 11th Five Year
Plan?
A. Accelerate growth rate of GDP to 10% by the end of the plan and then maintain it in the 12th Five Year Plan.
B. Double per capita income by 201647.
C. Create 20 million new work opportunities.
Select the correct answer using the codes given below:
(a) A only
(b) B only
(c) C only
(d) B and C
Ans. (c)
A. Accelerate growth rate of GDP to 10% by the end of the plan and then maintain it in the 12th Five Year Plan.
B. Double per capita income by 201647.
C. Create 20 million new work opportunities.
Select the correct answer using the codes given below:
(a) A only
(b) B only
(c) C only
(d) B and C
Ans. (c)
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