PAPER-II

ECONOMICS
Signature and Name of Invigilator 1. (Signature) __________________________ (Name) ____________________________ 2. (Signature) __________________________ (Name) ____________________________ Roll No.
(In figures as per admission card)

OMR Sheet No. : ...............................................

(To be filled by the Candidate)

01
1

1 1

Roll No.________________________________ (In words) [Maximum Marks : 100 Number of Questions in this Booklet : 50

Time : 1 /4 hours] Number of Pages in this Booklet : 16

Instructions for the Candidates

1. Write your roll number in the space provided on the top of this page. 2. This paper consists of fifty multiple-choice type of questions. 3. At the commencement of examination, the question booklet will be given to you. In the first 5 minutes, you are requested to open the booklet and compulsorily examine it as below : (i) To have access to the Question Booklet, tear off the paper seal on the edge of this cover page. Do not accept a booklet without sticker-seal and do not accept an open booklet. (ii) Tally the number of pages and number of questions in the booklet with the information printed on the cover page. Faulty booklets due to pages/questions missing or duplicate or not in serial order or any other discrepancy should be got replaced immediately by a correct booklet from the invigilator within the period of 5 minutes. Afterwards, neither the Question Booklet will be replaced nor any extra time will be given. (iii) After this verification is over, the OMR Sheet Number should be entered on this Test Booklet. 4. Each item has four alternative responses marked (A), (B), (C) and (D). You have to darken the oval as indicated below on the correct response against each item. Example : B C A D where (C) is the correct response. 5. Your responses to the items are to be indicated in the Answer Sheet given inside the Paper I Booklet only. If you mark at any place other than in the ovals in the Answer Sheet, it will not be evaluated. 6. Read instructions given inside carefully. 7. Rough Work is to be done in the end of this booklet. 8. If you write your Name, Roll Number, Phone Number or put any mark on any part of the Answer Sheet, except for the space allotted for the relevant entries, which may disclose your identity, or use abusive language or employ any other unfair means, you will render yourself liable to disqualification. 9. You have to return the test question booklet and OMR Answer sheet to the invigilators at the end of the examination compulsorily and must not carry it with you outside the Examination Hall. 10. Use only Blue/Black Ball point pen. 11. Use of any calculator or log table etc., is prohibited. 12. There is no negative marks for incorrect answers.

1. 2. - 3. , - - , : (i) - - (ii) - / - - (iii) OMR - 4. (A), (B), (C) (D) B C A : D (C) 5. I - , 6. 7. (Rough Work) 8. - , , , , , 9. - OMR - 10. / 11. () 12. 1 P.T.O.

J-01-11

ECONOMICS Paper II Note : This paper contains fifty (50) objective type questions, each question carrying two (2) marks. Attempt all the questions. 1. Consider a Cobb Douglas production function : q = AK L which is homogeneous function of degree 4. Of what degree of homogeneity are its marginal products functions (mpl and mpk) q q i.e. , ? L K (A) 4 (B) 3 (C) 2 (D) 1 Green Box subsidies under WTO are allowed because they are considered to be (A) Minimally trade distorting. (B) Higher among developed and relatively lower for developing countries. (C) They are confined to agriculture sector. (D) They are related to GATS provision. Which of the following gives measures of price elasticity of demand ? Qx Px Px Px (A) Q (B) Px Qx Qx x (C) 4. Qx Qx Px Px (D) Px Qx 5. If the economy is in the liquidity trap, then (A) Fiscal policy will be more effective (B) Monetary policy will be more effective (C) Crowding out effect will make fiscal and monetary policy effective (D) None of the above If the price consumption curve of a commodity is bending backwards, then the commodity must be (A) An inferior commodity (B) A perfectly elastic commodity (C) Normal commodity (D) Giffen goods IS curve represents : (A) Goods Market Equilibrium (B) Money Market Equilibrium (C) Bond Market Equilibrium (D) Labour Market Equilibrium Freedom as Development book is written by (A) Keynes (B) Amartya Kumar Sen (C) Mrs. Joan Robinson (D) Gunnar Myrdal The Chairman of 13th Finance Commission is (A) Dr. Vijay Kelkar (B) Dr. M. Govind Rao (C) Dr. C. Rangarajan (D) Dr. Atul Sarma J-01-11

2.

6.

7.

3.

8.

The rate at which the Central Bank discounts the bills of commercial banks is called (A) Discount Rate (B) Bill Rate (C) Interest Rate (D) Lending Rate 2

9.

Paper-II

10.

Human Development Index was formulated by (A) World Bank (B) International Monetary Fund (C) UNTAD (D) UNDP In the Hekscher-Ohlin theory, the most important cause of the difference in relative commodity prices and trade between nations is a difference in (A) Factor endowments (B) Technology (C) Tastes (D) None of these Inclusive Growth objective is given in the plan document of (A) Ninth Five Year Plan (B) Tenth Five Year Plan (C) Eleventh Five Year Plan (D) Twelfth Five Year Plan If X is distributed normally, then X2 follows : (A) t distribution (B) Chi-square distribution (C) F distribution (D) The Poisson distribution Critical minimum effort theory is given by (A) Leibenstein (B) Rosenstein Rodan (C) Arther Lewis (D) Marx Economic development process is concerned with (A) A rise in per capita income (B) A rise in percentage GDP (C) Changes in structure of economy (D) None of these 4

16.

In a regression r2 is the ratio between (A) explained and total variation (B) (C) explained variation and unexplained

unexplained and total variation

11.

(D) none of the above 17. The mean absolute deviation is minimised when calculated from (A) mean (B) (C) mode harmonic mean

(D) median 18. Main objective of public distribution system is (A) Exports of food (B) (C) Import of food Food security

12.

13.

(D) Quality of food 19. Securities and Exchange Board of India (SEBI) has to monitor (A) Companies coming for New Public issues (B) (C) Regulation of stock exchanges in India Regulation of insider trading and outsider trading

14.

(D) All the above functions 20. Which committee recommended tax on agriculture holding in India ? (A) Tandon Committee (B) (C) Raj Committee Kelkar Committee

15.

(D) Dantwala Committee J-01-11

Paper-II

Note : Consider the following statements and select the correct answer from the codes given below for Questions 21 to 30. (Assertion and Reason type Questions) : Codes : (A) Both (A) and (R) are true, and (R) is the correct explanation of (A). (B) Both (A) and (R) are true, and (R) is not the correct explanation of (A). (C) (A) is true but (R) is false. (D) (A) is false but (R) is true. 21. Assertion (A) : Consumption is high when saving is high. Reason (R) : Income is high when investment is high. Assertion (A) : In Keynesian theory, investment level depends upon rate of interest. Reason (R) : Rate of interest is cost of production to the company. Assertion (A) : Disguised unemployment is present in India. Reason (R) : Agricultural productivity at margin is close to zero. Assertion (A) : Removal of poverty remains a central concern of planning in India Reason (R) : Development is not just about factories, dams and other infrastructure, it is basically about human beings. 6

25.

Assertion (A) : Devaluation will lead to improvement in balance of trade. Reason (R) : Devaluation will lead to increase in price of exports.

26.

Assertion (A) : Rate of interest decreases during depression. Reason (R) : People are pessimistic during depression.

27.

Assertion (A) : Reserve Bank of India raises money supply through purchase of securities in the money market. Reason (R) : Increase in money supply may result in expansion of investment and employment.

22.

28.

Assertion (A) : Skewness measures regression. Reason (R) : Kurtosis measures flatness at the top of frequency curve.

23.

29.

Assertion (A) : Sex ratio below 1000 in India. Reason (R) : Sex ratio above 1000 in Kerala.

is is

24.

30.

Assertion (A) : Demand curve is vertical when elasticity of demand is zero. Reason (R) : Marginal utility of a product is increasing. J-01-11

Paper-II

Note : Arrange the following in order in which they appeared. Use the code given below : 31. (i) An Enquiry in to the Nature and causes of Wealth of Nations. (ii) An Enquiry into the Nature and causes of Poverty of Nations. (iii) The General Theory of Employment, Interest and Money (iv) The Theory of Population. Codes : (A) (iv) (iii) (i) (ii) (B) (i) (iv) (iii) (ii) (C) (ii) (i) (iii) (iv) (D) (i) (iii) (iv) (ii) (i) (ii) International Monetary Fund International Finance Corporation (iii) World Trade Organization (iv) General Agreement on Tariffs and Trade Codes : (A) (iv) (i) (iii) (ii) (B) (i) (ii) (iv) (iii) (C) (i) (iv) (ii) (iii) (D) (ii) (iii) (i) (iv) (i) Imperialism (ii) Mercantalism (iii) Capitalism (iv) Feudalism Codes : (A) (ii) (iv) (iii) (i) (B) (iv) (iii) (ii) (i) (C) (iii) (iv) (ii) (i) (D) (iv) (ii) (i) (iii) 8

34.

Friedmans Quantity Theory of Money (ii) Fishers Equation of Exchange (iii) Cambridge Equation of Exchange (iv) Don Patinkins Theory of Money Codes : (A) (ii) (iii) (iv) (i) (B) (i) (ii) (iii) (iv) (C) (ii) (iii) (i) (iv) (D) (iii) (iv) (ii) (i) Governors of Reserve Bank of India (i) Dr. C. Rangarajan (ii) Dr. I.G. Patel (iii) Dr. D. Subba Rao (iv) Dr. Manmohan Singh Codes : (A) (iv) (ii) (iii) (i) (B) (ii) (iv) (i) (iii) (C) (iv) (i) (ii) (iii) (D) (ii) (i) (iv) (iii) In terms of the size of the economy (i) China (ii) India (iii) USA (iv) Japan Codes : (A) (i) (iv) (iii) (ii) (B) (ii) (i) (iv) (iii) (C) (iii) (i) (iv) (ii) (D) (iv) (iii) (i) (ii) Secular Deterioration Hypothesis (ii) Theory of comparative costs (iii) Factor Endowment Theory (iv) Factor-Price Equalization theorem Codes : (A) (i) (ii) (iii) (iv) (B) (iv) (iii) (ii) (i) (C) (ii) (iv) (iii) (i) (D) (ii) (iii) (iv) (i) J-01-11 (i)

(i)

35.

32.

36.

33.

37.

Paper-II

38.

(i)

Raj Committee on Taxation of Agricultural Wealth and Income. Chellaiahs Committee Tax Reform

(ii)

Note : Question Nos. : 41 46 are of matching type. The candidates are required to match List I against List II and select the correct answer code. 41. List I (a) Consumers Surplus List II (i) Supply decision

(iii) Taxation Enquiry Commission (iv) The Indirect Committee Codes : (A) (B) (C) (D) 39. (i) (ii) (i) (iii) (ii) (i) (iii) (iv) (iv) (i) (ii) (ii) Tax Enquiry

of (b) Utility theory (ii) Art Advertising (c) Cost Analysis (iii) Progressive taxation (iv) Welfare (d) Product economics differentiation Codes : (a) (b) (c) (i) (d) (ii) (i) (i) (ii) (A) (iv) (iii)

(iii) (iv) (ii) (i)

(iii) (iv)

Human Poverty Index Human Development Index

(iii) Physical Quality of Life Index (iv) Head Count Index (Calorie measure) Codes : (A) (B) (C) (D) 40. (i) (ii) (i) (ii) (ii) (i) (iii) (iv) (iii) (iv) (ii) (i) 42.

(B) (iv) (iii) (ii) (C) (iii) (iv) (ii) (D) (iii) (iv) (i)

(iv) (iii) (i) (ii)

List I (a) M1 (b) M2

List II (i) C + DD + OD + SD (ii) C + DD + OD (iii) C + DD + OD + TD + TD of post office (iv) C + DD + OD + TD

(iv) (iii)

Global Financial Crisis Globalisation

(c) M3 (d) M4 Codes : (a)

(iii) Great Depression (iv) Gold Standard Mechanism Codes : (A) (B) (C) (D) Paper-II (iii) (iv) (i) (ii) (i) (ii)

(b) (i) (i)

(c)

(d)

(A)

(i)

(ii) (iii) (iv) (iv) (iii) (i) (ii) (ii) (iii) J-01-11

(iv) (iii) (ii) (ii) (i) (i) 10

(B) (ii) (D) (iv)

(iii) (iv) (iv) (iii)

(C) (iii) (iv)

43.

List I List II (i) W.S. (a) Keynesian Javons theory of distribution (ii) J.M. (b) Time Keynes preference theory of interest (iii) N. Kaldor (c) Sun-Spot theory of trade cycle (iv) Bohm (d) Modern Bawerk theory of income determination Codes : (a) (b) (c) (d) (A) (ii) (i) (iv) (iii) (B) (ii) (iv) (i) (iii) (C) (iii) (iv) (i) (ii) (D) (iii) (i) (iv) (ii) List I (a) Fiscal Deficit List II (i) Revenue and interest receipts minus revenue expenditure (b) Revenue (ii) Revenue Deficit receipts and recovery of loans and other receipts minus total expenditure. (c) Budgetary (iii) Receipts minus Deficit disbursements in capital account (d) Capital (iv) Total receipts Deficit minus total disbursements Codes : (a) (b) (c) (d) (A) (i) (ii) (iii) (iv) (B) (ii) (i) (iv) (iii) (C) (iii) (ii) (iv) (i) (D) (iv) (iii) (i) (ii) 12

45.

List I

List II

(a) Adam Smith (i) Availability Theory (b) David Ricardo (c) Ohlin (ii) Endowment Theory (iii) Absolute Advantage Theory (iv) Comparative Advantage Theory (c) (d) (i) (i) (ii)

(d) I.B. Kravis

Codes : (a) (A) (i) (b) (ii) (iii) (iv)

(B) (iii) (iv) (ii) (C) (ii) (iv) (iii) (D) (iv) (iii) (i)

44.

46.

List I

List II

(a) Rejecting Ho (i) Simple random when it is true sampling (b) Population is (ii) Type I homogeneous error negatively (c) Mean is equal (iii) Skewed distribution to degree of freedom (d) Mean > Mode (iv) X2 distribution Codes : (a) (B) (ii) (D) (iv) (b) (i) (i) (c) (d) (i) (iii) (iii) J-01-11 (A) (ii) (iv) (iii) (C) (ii) (iv) (i) (ii)

(iv) (iii)

Paper-II

Note : Read the passage given below and answer questions from 47 to 50 based on your understanding of the passage : The birth of Bretton Woods institutions in the 1940s was a direct response to the dismal experience of the 1920s and 1930s. Many of those surveying the wreckage of the global economic system in the dreary days of the Second World War among them, John Maynard Keynes, the dominant economic thinker of that time came to a simple conclusion. The worlds economic system needed honest referees. It could not be left to the mercy of unilateral action by governments or to the unregulated workings of international markets. It needed unilateral institutions of economic governance to lay down some mutually agreed rules for all nations on the conduct of their affairs. Thus emerged the International Monetary Fund (IMF), the International Bank for Reconstruction and Development (IBRD), or the World Bank and, later, the General Agreement on Tariffs and Trade (GATT).

48.

Bretton Woods twins are (A) USA and UK (B) (C) IMF and World Bank ITO and WTO

(D) GATT and UNESCO

49.

The

honest

referee

during

the

Bretten Woods negotiations was (A) Adam Smith (B) (C) Amartya Kumar Sen J.R. Hicks

(D) J.M. Keynes

50.

The outcome of Bretten Woods negotiations was (A) Replacement Institutions institutions. (B) Replacement of Multilateral Institutions Institutions. (C) Replacement exchange of by Flexible Fixed by Unilateral of by Unilateral Multilateral

47.

Dismal performance of world economy during 1920s and 1930s gave rise to (A) World Trade Organisation (B) (C) United Nations IMF

rates

Exchange rates. (D) Replacement of International Trade Organisation by IBRD. 14 J-01-11

(D) European Economic Union Paper-II

PAPER-II ECONOMICS
Signature and Name of Invigilator 1. (Signature) __________________________ (Name) ____________________________ 2. (Signature) __________________________ (Name) ____________________________ Roll No.
(In figures as per admission card)

OMR Sheet No. : ...............................................

(To be filled by the Candidate)

01
1

1 0

Roll No.________________________________ (In words) [Maximum Marks : 100 Number of Questions in this Booklet : 50

Time : 1 /4 hours] Number of Pages in this Booklet : 16

Instructions for the Candidates

1. Write your roll number in the space provided on the top of this page. 2. This paper consists of fifty multiple-choice type of questions. 3. At the commencement of examination, the question booklet will be given to you. In the first 5 minutes, you are requested to open the booklet and compulsorily examine it as below : (i) To have access to the Question Booklet, tear off the paper seal on the edge of this cover page. Do not accept a booklet without sticker-seal and do not accept an open booklet. (ii) Tally the number of pages and number of questions in the booklet with the information printed on the cover page. Faulty booklets due to pages/questions missing or duplicate or not in serial order or any other discrepancy should be got replaced immediately by a correct booklet from the invigilator within the period of 5 minutes. Afterwards, neither the Question Booklet will be replaced nor any extra time will be given. (iii) After this verification is over, the OMR Sheet Number should be entered on this Test Booklet. 4. Each item has four alternative responses marked (A), (B), (C) and (D). You have to darken the oval as indicated below on the correct response against each item. B C A Example : D where (C) is the correct response. 5. Your responses to the items are to be indicated in the Answer Sheet given inside the Paper I Booklet only. If you mark at any place other than in the ovals in the Answer Sheet, it will not be evaluated. 6. Read instructions given inside carefully. 7. Rough Work is to be done in the end of this booklet. 8. If you write your name or put any mark on any part of the test booklet, except for the space allotted for the relevant entries, which may disclose your identity, you will render yourself liable to disqualification. 9. You have to return the test question booklet and OMR Answer sheet to the invigilators at the end of the examination compulsorily and must not carry it with you outside the Examination Hall. 10. Use only Blue/Black Ball point pen. 11. Use of any calculator or log table etc., is prohibited. 12. There is no negative marks for incorrect answers.

1. 2. - 3. , - - , : (i) - - (ii) - / - - (iii) OMR - 4. (A), (B), (C) (D) A B C : D (C) 5. I - , 6. 7. (Rough Work) 8. - , 9. - OMR - 10. / 11. () 12. 1 P.T.O.

D-01-10

ECONOMICS Paper II Note : This paper contains fifty (50) objective type questions, each question carrying two (2) marks. Attempt all the questions. 1. The revealed preference theory of consumers behaviour is based on (A) Consistency (B) Strong Ordering (C) Positive income elasticity of demand (D) All the above An individuals supply curve for labour will bend backwards when (A) The substitution effect of wage rate increase is higher than income effect. (B) The income effect of wage rate increase is negative and higher than the substitution effect. (C) Leisure is a Giffen good. (D) The substitution and income effect of wage rate increase reinforce each other. The short run supply curve of a firm under perfect competition is the same as the (A) marginal cost curve (B) marginal cost curve above the average variable cost curve (C) average variable cost curve (D) average total cost curve Match List-I with List-II and select the correct answer from the codes given below : List I List II (a) Quasi rent 1. Hicks (b) Elasticity of 2. Chamberlin substitution (c) Monopolistic 3. Neumann and competition Morgenstern (d) Theory of 4. Marshall Games Codes : (a) (b) (c) (d) (A) 4 1 3 2 (B) 2 1 4 3 (C) 2 1 3 4 (D) 4 1 2 3 2 5. The difference between the value of marginal product and the marginal revenue product arises only if (A) Average revenue is not equal to marginal revenue. (B) Average cost is not equal to marginal cost. (C) Total revenue is not equal to total cost. (D) Average cost is not equal to average revenue.

2.

3.

4.

Note : The following 5 (five) questions consist of two statements : one labelled as the Assertion (A) and the other as Reason (R). You are to examine these two statements carefully and select the answers to these items using the codes given below : 6. Assertion (A) : In the short run, a producer operates in only stage II of the law of diminishing returns where average product of the variable factor is declining. Reason (R) : In stage I and stage III the marginal products of the fixed and the variable factors respectively are negative. Codes : (A) (A) is true and (R) is false. (B) Both (A) and (R) are true and (R) is the correct explanation of (A). (C) Both (A) and (R) are true, but (R) is not the correct explanation of (A). (D) (A) is false and (R) is true. D-01-10

Paper-II

7.

Assertion (A) : In monopolistic competition, a firm earns only normal profit in the long run. Reason (R) : A firm in monopolistic competition produces a commodity which has no close substitutes. Codes : (A) Both (A) and (R) are true and (R) is the correct explanation of (A). (B) Both (A) and (R) are true, but (R) is not the correct explanation of (A). (C) (A) is true, but (R) is false. (D) (A) is false, but (R) is true. Assertion (A) : Devaluation in general is resorted to increase the exports. Reason (R) : It makes exports cheaper. Codes : (A) Both (A) and (R) are correct. (B) (A) is correct, but (R) is not correct. (C) Both (A) and (R) are incorrect. (D) (A) is incorrect, but (R) is correct. Assertion (A) : The role of monetary policy in a developing economy in general is to achieve growth with stability. Reason (R) : It makes availability of credit to public at cheaper rate of interest. Codes : (A) (A) is correct but (R) is not the explanation of (A). (B) Both (A) and (R) are incorrect. (C) (A) is incorrect but (R) is correct. (D) Both (A) and (R) are correct. 4

10.

Assertion (A) : The average and the spread of indirect taxes have been lowered in India over the past two decades. Reason (R) : Tax-GDP ratio in India has declined during this period. Codes : (A) Both (A) and (R) are true and (R) is the correct explanation of (A). (B) Both (A) and (R) are true, but (R) is not the correct explanation of (A). (C) (A) is true, but (R) is false. (D) (A) is false, but (R) is true. The classical analysis of determination of output and employment is characterised as a (A) Static Analysis (B) Comparative Static Analysis (C) Dynamic Analysis (D) All of the above Consumption is irreversible is implicit in which of the following hypothesis ? (A) Absolute Income Hypothesis (B) Relative Income Hypothesis (C) Life Cycle Hypothesis (D) Permanent Income Hypothesis Inventory-theoretic approach to transactions demand for money has been given by (A) J. M. Keynes (B) Milton Friedman (C) Don Patinkin (D) W.J. Baumol D-01-10

8.

11.

12.

9.

13.

Paper-II

14.

Liquidity trap is a situation when demand for money is (A) Zero elastic (B) Unit elastic (C) Relatively more elastic (D) Perfectly elastic Match List-I with List-II and select the answer from the codes given below : (a) (b) (c) (d) List I Equation of exchange Money wage rigidity Natural rate of unemployment Rational expectations (c) 1 2 1 3 List II 1. Milton Friedman 2. John Muth 3. J.M. Keynes 4. Irving Fischer (d) 2 1 2 2

17.

15.

Match the List-I with List-II and select the answers from the codes given below : List I List II (a) Life cycle 1. Franco hypothesis Modigliani (b) Liquidity trap 2. J. Duesenberry (c) Ratchet effect 3. A.C. Pigou (d) Real balance 4. J.M. Keynes effect Codes : (a) (b) (c) (d) (A) 1 4 3 2 (B) 1 2 3 4 (C) 4 1 2 3 (D) 1 4 2 3 The concept of sustainable development was first given by (A) Brudtland (B) Kindleberger (C) Raul Prebisch (D) Keynes In the Harrod-Domar equation of warranted rate of growth, i.e., s/y g = , the capital-output ratio is 1/k represented by
(A) g (C) s/y

18.

Codes : (a) (b) (A) 3 4 (B) 4 3 (C) 4 3 (D) 4 1 16.

19.

Which one of the following statements in case of Kaldor model of trade cycle is incorrect ? (A) Its foundation can be found in Keynes theory of income determination. (B) It assumes that both saving and investment function (or at least one of the two) are non-linear. (C) It makes use of investment multiplier interaction to generate trade cycles. (D) It is based on capital Stock Adjustment principle. 6

(B) 1/k (D) y/s

20.

Which of the following is not an indicator of Globalization ? (A) Opening of the economy for unrestricted imports and exports. (B) Allowing free capital movement among nations. (C) Free movement of technology among nations. (D) Achieving exchange rate stability. D-01-10

Paper-II

21.

Which one of the following is an indicator of poverty ? (A) Head-count index (B) (C) Poverty-gap ratio Poverty-square gap ratio

26.

Various trade reforms after 1991 in India were implemented by (A) Manmohan Singh (B) (C) C.N. Vakil P.R. Brahmananda

(D) All of the above 22. The unbalanced growth strategy was propounded by (A) Ragnar Nurkse (B) (C) H. Leibenstein A.O. Hirschman 27.

(D) Jagdish Bhagwati In 1971, collapse of Brettonwood system was largely due to (A) Fall of gold standard (B) (C) Rise in the value of gold Failure to manage international liquidity

(D) R. Rodan 23. Opportunity cost theory international trade is given by (A) Haberler (B) (C) Adam Smith Ricardo of 28.

(D) Surplus countries did not revalue and deficit countries did not devalue their currencies Purchasing power parity theory was given by (A) Haberler (B) (C) J.S. Mill J.E. Meade

(D) Heckschor-Ohlin 24. The concept of intra-industry trade is given by (A) Balassa (B) (C) Meade Jagdish Bhagwati 29.

(D) Gustav Cassell When was minimum reserve system of note issue adopted in India ? (A) 1947 (C) 30. 1956 (B) 1953 (D) 1960

(D) J.S. Mill 25. Which one of the following is considered as non-debt creating foreign investment inflow ? (A) External assistance (B) (C) Foreign direct investment Borrowing from I.M.F.

Which one of the following is not the objective of monetary policy in India ? (A) To accelerate development (B) (C) economic

To achieve price stability To regulate foreign trade

(D) Commercial borrowings Paper-II 8

(D) To stabilise exchange rate D-01-10

31.

The continuous deficit in the balance of payments of India is due to (A) Continued rise in imports (B) Slow rise in exports (C) Exchange rate volatility (D) All of the above Currency War during the present recession is concerned with (A) Under valuation of currency (B) Over valuation of currency (C) Neutral valuation of currency (D) None of the above Disguised unemployment in underdeveloped countries stands for marginal productivity of some persons is (A) zero (B) greater than zero (C) high (D) unity

35.

32.

33.

Match List-I with List-II and select the answer using the codes given below : List I List II (a) J.M. Keynes 1. Economics of imperfect competition (b) David 2. General theory Ricardo of employment, interest and money (c) Adam Smith 3. Principles of political economy (d) Mrs. Joan 4. Wealth of Robinson Nations Codes : (a) (b) (c) (d) (A) 2 3 4 1 (B) 3 4 1 2 (C) 4 1 2 3 (D) 1 2 3 4 Match List-I with List-II and select the answer using the codes given below : List I List II Institution Year of establishment (a) R.B.I. 1. 1935 (b) N.A.B.A.R.D. 2. 1982 (c) Planning 3. 1950 Commission (d) F.C.I. 4. 1964 Codes : (a) (b) (c) (d) (A) 1 3 4 2 (B) 3 4 2 1 (C) 4 2 1 3 (D) 2 1 3 4 D-01-10

36. 34. Match List-I with List-II and select the answer using the codes given below : List I List II (a) Open-general 1. Employment license (b) TRYSEM 2. External trade (c) Wholesale 3. Credit control price index (d) Cash-reserve 4. Inflation ratio Codes : (a) (b) (c) (d) (A) 2 1 4 3 (B) 2 4 3 1 (C) 4 3 2 1 (D) 3 2 1 4 10

Paper-II

37.

Which one of the following is not correctly matched in the case of India ? (A) Revenue Revenue receipts expenditure : + Revenue deficit (B) Primary deficit (C) Total receipts (D) Revenue receipts Revenue deficit : interest payments Revenue receipts : + capital receipts Tax revenue + : non-tax revenue

41.

Who is the Chairman of the Economic Advisory Council of the Prime Minister of India ? (A) Suresh Tendulkar (B) (C) Jagdish Bhagwati C. Rangarajan

(D) Vijay Kelkar 42. Match List-I with List-II and select the answer from the codes given below : List I List II 1. Square of standard deviation 2. Uses limited information 3. Relative measure of dispersion (a) Range

38.

The incidence of sales tax is on the seller when the demand curve (A) for the product is a rectangular hyperbola (B) (C) for the product is perfectly elastic for the product is perfectly inelastic

(b) Coefficient of variation (c) Variance

(D) for the product is moderately elastic 39. A progressive income tax implies that (A) the amount of tax falls with a rise in income (B) (C) the rate of tax rises with a rise in income both (A) and (B) 43.

(d) Inter-quartile 4. Smaller than range range Codes : (a) (b) (A) 4 (B) (C) 3 2 3 1 3 2 (c) 1 2 1 3 (d) 2 4 4 4

(D) 1

(D) the rate of tax decreases with a rise in income 40. Under which Article of the Constitution of India is the Finance Commission is appointed by President of India ? (A) 279 (C) Paper-II 281 (B) 280 (D) 282 12

The distribution for which mean and variance are equal is (A) Poisson (C) Normal (B) Binomial (D) Gamma distribution 0

44.

For a symmetric Skewness (1) is (A) 3 (C) 1 (B)

(D) 2 D-01-10

45.

The sum of the squares of deviations of the given set of observations is minimum when taken from (A) Mode (B) Median (C) Variance (D) Mean Factor reversal test is satisfied by (A) Laspayers Index (B) Fischers Index (C) Marshall-Edgworth Index (D) Pasches Index Type I error is defined as (A) Reject null-hypothesis when it is false. (B) Reject null-hypothesis when it is true. (C) Accept null-hypothesis when it is true. (D) Accept null-hypothesis when it is false.

46.

has to support. Areas with high population density, and that means areas that have experienced high rates of population growth for a long time, will have low landto-labour ratios and hence low wages. Also, if the economy is characterized by well-developed manufacturing and service sectors so that there is significant employment outside agriculture, then correspondingly there is less labour in agriculture. Consequently, the land-tolabour ratios in agriculture and hence wages are high. This is the key link between employment pattens and poverty. 48. An employer is willing to hire an extra worker (A) if the contribution of this worker is more than the wage rate (B) if the contribution of this worker is less than the wage rate (C) both (A) and (B) (D) none of the above Wage rate in agriculture sector depends upon (A) Productivity (B) Technology (C) Land-to-labour ratio (D) All of above Other things remaining the same, areas with well developed manufacturing and service sector will have higher wage rate in agricultural sector, because (A) of a relatively lower labour to land ratio (B) a relatively higher labour productivity (C) both (A) and (B) (D) None of the above D-01-10

47.

Note : Read the passage below and answer question nos. 48 50 : An employer is willing to hire an extra worker provided he or she will contribute a value that exceeds the wage and thus the contribution of the marginal worker is a good approximation of the wage. On a given plot of land, if you add more and more workers, each will contribute marginally less and thus the wages rise with productivity and with the land-to-labour ratio. Areas with high agricultural productivity and high land-tolabour ratios (for example Punjab, Haryana) have higher wages and vice versa (for example Bihar, Orissa). Productivity is determined by technology the seeds, irrigation, fertilizer, etc. Landto-labour ratio is determined by the size of the agricultural labour force that the land Paper-II 14

49.

50.

Signature and Name of Invigilator 1. (Signature) __________________________ (Name) ____________________________ 2. (Signature) __________________________ (Name) ____________________________

OMR Sheet No. : .........................................

(To be filled by the Candidate)

Roll No.
(In figures as per admission card)

Roll No.____________________________ (In words)

01

1 0

Test Booklet No.

Time : 1 1/4 hours] Number of Pages in this Booklet : 16

PAPER-II ECONOMICS

[Maximum Marks : 100 Number of Questions in this Booklet : 50

Instructions for the Candidates

1. Write your roll number in the space provided on the top of this page. 2. This paper consists of fifty multiple-choice type of questions. 3. At the commencement of examination, the question booklet will be given to you. In the first 5 minutes, you are requested to open the booklet and compulsorily examine it as below : (i) To have access to the Question Booklet, tear off the paper seal on the edge of this cover page. Do not accept a booklet without sticker-seal and do not accept an open booklet. (ii) Tally the number of pages and number of questions in the booklet with the information printed on the cover page. Faulty booklets due to pages/questions missing or duplicate or not in serial order or any other discrepancy should be got replaced immediately by a correct booklet from the invigilator within the period of 5 minutes. Afterwards, neither the Question Booklet will be replaced nor any extra time will be given. (iii) After this verification is over, the Test Booklet Number should be entered in the OMR Sheet and the OMR Sheet Number should be entered on this Test Booklet. 4. Each item has four alternative responses marked (A), (B), (C) and (D). You have to darken the oval as indicated below on the correct response against each item. B C A Example : D where (C) is the correct response. 5. Your responses to the items are to be indicated in the Answer Sheet given inside the Paper I Booklet only. If you mark at any place other than in the ovals in the Answer Sheet, it will not be evaluated. 6. Read instructions given inside carefully. 7. Rough Work is to be done in the end of this booklet. 8. If you write your name or put any mark on any part of the test booklet, except for the space allotted for the relevant entries, which may disclose your identity, you will render yourself liable to disqualification. 9. You have to return the test question booklet and OMR Answer sheet to the invigilators at the end of the examination compulsorily and must not carry it with you outside the Examination Hall. 10. Use only Blue/Black Ball point pen. 11. Use of any calculator or log table etc., is prohibited. 12. There is no negative marks for incorrect answers.

D-0109 J-01-10

1. 2. - 3. , - - : (i) - - (ii) - / - - (iii) - OMR OMR - 4. (A), (B), (C) (D) C B A D : (C) 5. I - , 6. 7. (Rough Work) 8. - , 9. - OMR - 10. / 11. () 12. 1 P.T.O.

ECONOMICS Paper II Note : This paper contains fifty (50) objective type questions, each question carrying two (2) marks. Attempt all the questions. 1. Marshallian Theory of consumers behaviour is based on (A) Hypothesis of additive utilities. (B) (C) Hypothesis utilities. of independent (ii) 4. Consider the following statements : (i) When MC curve is below the AC curve, then the AC curve must be rising. When MC curve is above AC curve, then AC curve must be falling.

Both (A) and (B).

(D) Weak ordering. 2. Consider the following statements : (i) (ii) Income effect is positive in case of normal goods. Income effect is zero in the case of superior goods.

(iii) MC curve intersects AC curve at the point where AC is constant. Which of the above statement(s) is/are correct ? (A) (iii) only (B) (C) (i) and (ii) (i), (ii) and (iii)

(iii) All Giffen goods are inferior goods, but not all inferior goods are Giffen goods. (iv) Income effect is negative in case of inferior goods. Which of the above is /are correct ? (A) (i) only (B) (C) (ii) only (iii) & (iv)

(D) (i) and (iii) 5. With which of the following is the doctrine of excess capacity in the long run not associated ? (A) Monopoly (B) (C) Oligopoly Monopolistic competition

(D) Perfect competition 6. To derive the demand curve for a firm for one of the several variable factors, the following must be considered : (A) The external effect of the change in the factor price (B) (C) The internal effect of the change in factor price Monopolistic exploitation

(D) (i), (iii) and (iv) 3. A profit maximising firm will stop production in the short run if price is (A) less than the average variable cost (B) (C) less than the marginal cost less than the average total cost

(D) equal to the average total cost Paper-II 2

(D) Monopsonistic exploitation J-0110

7.

In an Edgeworth production box, the only possible positions of equilibrium is (A) the isoquants are tangent to one another (B) the isoquants intersect each other (C) the marginal products of the inputs are equal (D) both (B) and (C) In case of Keynes Psychological Law of Consumption Function, which one of the following statements is incorrect ? (A) As disposal income increases, consumption also increases, but less than proportionately. (B) Marginal propensity to consume is positive but less than unity. (C) As disposable income increases, average propensity to consume falls, and vice versa. (D) Average propensity to consume equals marginal propensity to consume at all levels of income. Which one of the following statements in case of balanced budget multiplier is incorrect ? (A) The value of balanced budget multiplier is unity in case of autonomous taxes. (B) The value of balanced budget multiplier is less than unity in case of proportional taxes. (C) The value of balanced budget multiplier is always unity no matter whether the taxes are autonomous or proportional. (D) The value of Government expenditure multiplier is more than the value of tax multiplier. 4

10.

8.

Consider following statements : 1. Credit creation varies inversely with Cash Reserve Ratio (CRR). 2. Credit creation varies positively with Cash Reserve Ratio (CRR). 3. Bond price and interest rate are inversely related. 4. Bond price and interest rate are positively related. Which of the above statements is correct ? (A) 1 and 3 (B) 1 and 4 (C) 2 and 3 (D) 2 and 4 Given that C = Currency with the public, DD = Demand Deposits, TD = Time Deposits and R = Cash balances with the Commercial Banks, then high powered money is defined as (A) C + DD (B) C + R (C) C + TD (D) C + DD + TD The premise that there exists inverse relationship between money wage inflation and unemployment was originally given by (A) A.W. Phillips (B) Milton Friedman (C) Philip Cagan (D) Robert Lucas Based on accelerated-multiplier interaction, whose theory of trade cycles generates constrained cycles ? (A) Hicks (B) Kaldor (C) Samuelson (D) Baumol J-0110

11.

9.

12.

13.

Paper-II

14.

Which of the following statements is incorrect ? (A) Monetary Policy is relatively ineffective, when the interest elasticity of investment is low (IS curve is steep) (B) Monetary Policy is relatively ineffective, when the interest elasticity of demand for money is high (LM curve is flat) Fiscal policy is relatively ineffective, when interest elasticity of demand for money is low (LM curve is steep)

18.

Which one of the following is not an instrument of fiscal policy ? (A) Public Revenue (B) (C) Public Expenditure Public Borrowing

(D) Cash Reserve Ratio

(C)

19.

Who is Director General of WTO ? (A) Alan Greenspan (B) (C) Lamy Pascal William Diamond

(D) Fiscal policy is ineffective, when interest rate elasticity of investment is low (IS curve is steep) 20. 15. The practices of transfer pricing in the open economy is resorted to by (A) Mutual Funds (B) (C) Institutional Investors Multinational Corporations 21.

(D) Eugine Black

The role of globalization is (A) zero (C) minimum

the

State

under

(B)

maximum

(D) neutral

(D) Private Banks 16. The warranted rate of growth as defined in Harrods Model is (A) (B) (C) S/y 1/k S y 1 k

Which one of the following is the most important source of revenue of State Governments in India ? (A) Land Revenue (B) (C) Sales Tax Stamps and Registration Fees

(D) State Excise Duties

22.

(D) none of the above 17. The Human Development Index was first developed by (A) UNDP (C) Paper-II UNICEF (B) IMF (D) UNCTAD 6

Equity in Taxation can best be achieved by applying the principle of (A) Equal Absolute Sacrifice (B) (C) Benefit Equal Marginal Sacrifice

(D) Equal Proportional Sacrifice J-0110

23.

Which of the following is correct measurement of fiscal deficit in India ? (A) Excess of total revenue expenditure over total revenue receipts. (B) Excess of total expenditure over total revenue receipts plus non-debt capital receipts. Excess of total expenditure over total receipts.

(C)

(D) Excess of total expenditure over total interest payments. 24. Marginal cost of a pure public good is (A) zero or close to zero (B) (C) one (A) and (B) both

Note : In the following Question No. 27, there are two statements, one is Assertion (A) and the other Reason (R). You have to examine these carefully and select the answer from the codes given below : 27. Assertion (A) : Indirect taxes promote inequalities in the distribution of income. Reason (R) : The poor bear more burden of indirect taxes. Codes : (A) (A) is true but (R) is false. (B) Both (A) and (R) are true and (R) is the correct explanation of (A). (C) (A) is false but (R) is true. (D) Both (A) and (R) are false. 28. Factor Endowment Theory International Trade is given by (A) Heckscher-Ohlin (B) Haberler (C) Raul Prebisch (D) Jagdish Bhagwati of

(D) very high 25. Which of the following is not one of the objectives of the tax reforms in India ? (A) Reduction in multiplicity of custom duty rates (B) (C) Improving tax compliance Widening the tax-base 29.

(D) Suggesting ways to increase the share of indirect taxes in total tax revenue 26. An excise duty is fully borne by the buyers, when price elasticity of demand for the product is (A) (B) (C) 0 1

The concept of single factoral and double factoral terms of trade have been given by (A) Haberler (B) Jacob Viner (C) Snider (D) Scammel The equation of foreign multiplier is (A) Rupee Dollar Ratio (B) mpm + mps (C) Tax GDP Ratio 1 (D) mpm + mps trade

30.

(D) between 1 and Paper-II 8

J-0110

31.

Trade Policy Reforms in India include (A) disinvestment (B) (C) lowering of custom duties increasing SLR

35.

(D) reduction in direct and indirect taxes

32.

Which of the following countries is a member of the ASEAN Group ? (A) China (C) Sri Lanka (B) India

(D) Thailand

33.

The meeting of G-20 in 2009 was held at (A) London (B) (C) Paris Geneva 37. 36.

Match list I with list II and select the answer from the codes given below : List I List II (a) Total area 1. 1 = 0 under normal curve (b) Square of 2. 1 standard deviation (c) Symmetric 3. distribution (d) Co-efficient 4. variance of variation Codes : (a) (b) (c) (d) (A) 3 4 1 2 (B) 2 4 1 3 (C) 4 1 2 3 (D) 1 2 3 4 The area between 3 and +3 under standard normal curve is (A) 1 (B) 0.9973 (C) 0.95 (D) 0.6826 If the co-efficient of determination is 0.12 and one of the regression coefficients is 0.3 ; what is the value of the other regression co-efficient ? (A) 0.4 (B) 0.36 (C) 0.9 (D) 0.15 For a large sample, x = 2, rxy = 0.8 the standard error of bxy. (A) 1.1 (C) 1.2 (B) 2.1 (D) 1.6

(D) New Delhi

34.

From a bag containing 6 red, 4 green and 5 black balls, one ball is drawn at random, find the probability that it is either red or green. (A)
6C + 4C 1 1 15C 1

38.

(B) (C) (D) Paper-II

6 15 4 15
6C 1

39. 4C1 15C1 10

The mean and variance of a standard normal variate respectively (A) 0, 0 (B) 0, 1 (C) 1, 0 (D) 1, 2 J-0110

40.

The algebraic sum of deviations of a given set of observations from their arithmetic mean is (A) (C) 1 (B) 1 (D) 0

45.

41.

Unbalanced regional growth in India is due to (A) unequal budgetary support by Central Government to different States (B) (C) spatial distribution industries of 46.

New Agricultural strategy has (A) widened the gap between the rich and the poor farmers (B) increased production of only few crops (C) led to an increase in regional disparities (D) all of the above Match the list I with the list II and select the answer from the codes given below : List-I List-II (a) Theory of (I) Harvey big push Leibenstein (b) Unlimited (II) Lewis supply of labour (c) Trade as an (III) Emery engine of growth (d) The (IV) Kuznets concept of economic growth (a) (b) (c) (d) (A) IV III II I (B) I II III IV (C) II III IV I (D) III IV I II If the accommodating capital is zero in the balance of payments of a country, there will be (A) equilibrium in the balance of payments. (B) disequilibrium in the balance of payments. (C) deficit in the balance of payments. (D) surplus in the balance of payments. J-0110

inadequate development infrastructure in some States

(D) all of above 42. In HDI, which one of the following is not taken as an indicator ? (A) Life expectancy (B) (C) Literacy GDP per capita

(D) Per capita food consumption 43. The Union Budget is presented under which Article of the Constitution in India ? (A) 110 (C) 44. 112 (B) 111 47. (D) 122

Financial Sector reforms in India consist of (A) Lowering down of CRR and SLR (B) (C) Entry of private firms in insurance sector Deregulation of rate of interest

(D) All of the above Paper-II 12

Note : Read the passage given below and answer questions from 48 to 50, on the basis of the passage : The 1990s were the best years for India as far as GDP growth is concerned. This is evident from the data provided by the annual Economic Survey of the Government of India. For the decade up to 2001, real GDP at factor cost grew at 6.1 per cent and per capita GDP at 4 per cent. This is certainly an improvement over that obstinate 3.5 per cent Hindu rate of growth that dogged our fortunes right up to the end of the 1970s : for the period 1950-51 to 1980-81 the average rate of growth of GDP was 3.5 per cent and that of GDP per capita, hardly 1.5 per cent. In fact, for the decade up to 1981, per capita GDP grew at only 0.8 per cent. There is no doubt that in terms of growth, India is doing much better now than ever before. However, improved growth performance has not been accompanied by improved employment generation. On the contrary, the growth rate of employment fell sharply in the 1990s. Using National Sample Survey (NSS) data, while for the period 1983 to 1993-94, employment grew at 2.72 per cent per annum, the corresponding figure for the period 1993-94 to 1999-2000 was only 1.02. This sharp drop in employment growth led to an increase in unemployment from 20 million in 1993-94 to nearly 27 million in 1999-2000. Paper-II 14

48.

For the decade upto 1981, the average growth rate of GDP per capita was (A) 4.0 per cent (B) (C) 3.5 per cent 0.8 per cent

(D) 2.0 per cent

49.

The growth in real GDP at factor cost and per capita GDP, for the decade upto 2001, (A) was less than that for the decade upto 1981 (B) was less than that for the decade upto 1970 was more than that for the period between 1950-51 to 1980-81

(C)

(D) none of the above

50.

Employment growth rate for the period 1993-94 to 1999-2000 (A) did not reflect the higher GDP growth during this period (B) was lower than the employment growth for the period 1983 to 1993-94 (A) and (B) both

(C)

(D) none of the above J-0110

Signature and Name of Invigilator 1. (Signature) __________________________ (Name) ____________________________ 2. (Signature) __________________________ (Name) ____________________________

OMR Sheet No. : .........................................

(To be filled by the Candidate)

Roll No.
(In figures as per admission card)

Roll No.____________________________ (In words)

D-0109
Time : 1 1/4 hours] Number of Pages in this Booklet : 24

Test Booklet No.

PAPER-II

[Maximum Marks : 100 Number of Questions in this Booklet : 50

ECONOMICS
Instructions for the Candidates
1. Write your roll number in the space provided on the top of this page. 2. This paper consists of fifty multiple-choice type of questions. 3. At the commencement of examination, the question booklet will be given to you. In the first 5 minutes, you are requested to open the booklet and compulsorily examine it as below : (i) To have access to the Question Booklet, tear off the paper seal on the edge of this cover page. Do not accept a booklet without sticker-seal and do not accept an open booklet. (ii) Tally the number of pages and number of questions in the booklet with the information printed on the cover page. Faulty booklets due to pages/questions missing or duplicate or not in serial order or any other discrepancy should be got replaced immediately by a correct booklet from the invigilator within the period of 5 minutes. Afterwards, neither the Question Booklet will be replaced nor any extra time will be given. (iii) After this verification is over, the Test Booklet Number should be entered in the OMR Sheet and the OMR Sheet Number should be entered on this Test Booklet. 4. Each item has four alternative responses marked (A), (B), (C) and (D). You have to darken the oval as indicated below on the correct response against each item. Example : B C A D where (C) is the correct response. 5. Your responses to the items are to be indicated in the Answer Sheet given inside the Paper I Booklet only. If you mark at any place other than in the ovals in the Answer Sheet, it will not be evaluated. 6. Read instructions given inside carefully. 7. Rough Work is to be done in the end of this booklet. 8. If you write your name or put any mark on any part of the test booklet, except for the space allotted for the relevant entries, which may disclose your identity, you will render yourself liable to disqualification. 9. You have to return the test question booklet and OMR Answer sheet to the invigilators at the end of the examination compulsorily and must not carry it with you outside the Examination Hall. 10. Use only Blue/Black Ball point pen. 11. Use of any calculator or log table etc., is prohibited. 12. Negative Marking :- For each incorrect answer, 0.5 marks shall be deducted.

1. 2. - 3. , - - : (i) - - (ii) - / - - (iii) - OMR OMR - 4. (A), (B), (C) (D) B C A D : (C) 5. I - , 6. 7. (Rough Work) 8. - , 9. - OMR - 10. / 11. () 12. : 0.5 1 P.T.O.

D-0109 D-0109

ECONOMICS Paper II Note : This paper contains fifty (50) objectives type questions, each question carrying two (2) marks. Attempt all the questions. 1. The Law of Diminishing Returns to Scale holds true in the (A) Market - Period (B) Short - Period (C) Long - Period (D) Secular - Period The demand for labour by a firm is a derived demand because it depends upon (A) The demand for goods and services that labour helps to produce. (B) The degree of substitution between labour and other factors of production. (C) The elasticity of demand for labour. (D) The demand for other factors of production. Social Welfare Function is assumed (A) Theoretically (C) Hypothetically

2.

3.

(B) Axiomatically (D) Empirically

4.

In the classical theory, an increase in money supply leads to (A) Decrease in price level. (B) Increase in savings. (C) Decrease in investment. (D) Increase in price level. Shift in LM curve takes place due to (A) Increase in autonomous investment. (B) Increase in money supply. (C) Increase in consumption. (D) Increase in saving rate. The Phillips Curve shows the relation between (A) Income and consumption. (B) Income and price level. (C) Income and investment. (D) Inflation and unemployment. Rolling Plan Concept was propounded by (A) Gunnar Myrdal (B) J.K. Galbraith (C) Paul A. Samuelson (D) A.K. Sen The Incremental Capital-Output Ratio is symbolically written as (A) K / L (B) K / L (C) K / Y (D) K / Y 2 D-0109

5.

6.

7.

8.

Paper-II

9.

The doctrine of unbalanced growth has not been advocated by (A) H.W. Singer (C) A.O. Hirschman (B) W.A. Lewis (D) C.P. Kindleberger

10.

Which group represents the interests of the developing countries ? (A) G 7 (C) G 77 (B) G 10 (D) G 80

11.

Funds not belonging to the Government are called (A) Contingency Fund (C) Private Accounts (B) Consolidated Fund (D) Public Accounts

12.

The Deficit Budget in which the deficits are covered through taxes is called (A) Balanced Budget (C) Surplus Budget (B) Unbalanced Budget (D) Zero-base Budget

13.

Raul Prebischs argument is concerned with the effects of business cycles on (A) Terms of Trade (C) Output (B) Balance of Payments (D) Consumption

14.

The difference between the export and import of services is called (A) Balance of Trade. (B) (C) Balance of Invisibles. Balance of Current account.

(D) Balance of Capital account. 15. Public Enterprises in India have developed only in (A) Consumer goods industries (B) (C) Key and basic industries Service industries

(D) All types of industries 16. According to Economic Survey 2007-08, Indias Current Account balance as percent of GDP in 2006-07 stood at (A) 3.3 (C) Paper-II 1.1 (B) 2.1 (D) 0.4 4 D-0109

17.

The overall production of foodgrains in India in 2006-07 was (A) 207.3 million tonnes (C) 270.8 million tonnes (B) 217.3 million tonnes (D) 227.8 million tonnes

18.

On Current Daily Status (CDS) basis, the incidence of unemployment in India in 2004-05 was (A) 4.52% (C) 8.28% (B) 6.43% (D) 10.12%

19.

The statistical technique used to determine the degree of relationship between two variables is called (A) Dispersion (C) Association (B) Index Numbers (D) Correlation

20.

Which Index Number method has an upward bias ? (A) Laspeyres method (C) Bowleys method (B) Paasches method (D) Fishers method

Note : Consider the following statements and select the correct answer from the codes given below for questions 21 to 30. (Assertion and Reason type item) 21. Assertion (A) : The rate of fall of MR is more than that of AR in the event of their falling. Reason (R) (B) (C) : Both MR and AR curves are linear and negatively sloping. (A) Both (A) and (R) are true, but (R) is not the correct explanation of (A). Both (A) and (R) are true, and (R) is the correct explanation of (A). (A) is false, but (R) is true.

(D) (A) is true, but (R) is false. 22. Assertion (A) : Under monopolistic competition, the long-run average revenue (LAR) of a firm is tangent to the negatively sloping portion of the long-run average cost (LAC) curve. Reason (R) : The demand curve facing the firm under monopolistic competition is relatively more elastic.

(A) Both (A) and (R) are true, but (R) is the correct explanation of (A). (B) (C) (A) is true, but (R) is false. Both (A) and (R) are false.

(D) Both (A) and (R) are true, but (R) is not the correct explanation of (A). Paper-II 6 D-0109

23.

Assertion (A) : According to Milton Friedman, the slope of the long-run Phillips curve is vertical. Reason (R) : The expectations about future inflation are the basic cause of the nonexistence of the trade-off between inflation and unemployment in the long-run.

(A) Both (A) and (R) are true, but (R) is not the correct reason of (A). (B) (C) Both (A) and (R) are true, and (R) is the correct reason of (A). Both (A) and (R) are false.

(D) (A) is true, but (R) is false. 24. Assertion (A) : Life Cycle Hypothesis attempts to reconcile the short-run nonproportional and the long-run proportional consumption functions. Reason (R) : Short-run non-proportional consumption function implies that APC declines as income increases.

(A) (A) is true, but (R) is false. (B) (C) Both (A) and (R) are false. Both (A) and (R) are true, but (R) is not the correct reason of (A).

(D) Both (A) and (R) are true, and (R) is the correct reason of (A). 25. Assertion (A) : According to Gunnar Myrdal, there exists a circular and cumulative causation in under-developed countries. Reason (R) : There is a mutually reinforcing interaction between low living levels and low productivity.

(A) (A) is false, but (R) is true. (B) (C) Both (A) and (R) are false. Both (A) and (R) are true, but (R) is not the correct explanation of (A).

(D) Both (A) and (R) are true, and (R) is the correct explanation of (A). 26. Assertion (A) : Harrod-Domar model assumes fixed technological relationship between capital stock and income flows. Reason (R) : The model assumes flexible capital output ratio.

(A) Both (A) and (R) are true. (B) (C) Both (A) and (R) are true, but (R) is not the correct explanation of (A). Both (A) and (R) are false.

(D) (A) is true, but (R) is false. Paper-II 8 D-0109

27.

Assertion (A) : Over the years, the goal of self-reliance has proved to be elusive in the Indian economy. Reason (R) : Balance Of Payments (BOP) problems have been arising due to imports of POL.

(A) Both (A) and (R) are false. (B) (C) (A) is true, but (R) is false. Both (A) and (R) are true, but (R) is not the correct explanation of (A).

(D) Both (A) and (R) are true and (R) is the correct explanation of (A). 28. Assertion (A) : Laspeyres index has a upward bias. Reason (R) : Paasches index has a downward bias.

(A) Both (A) and (R) are true and (R) is the correct explanation of (A). (B) (C) Both (A) and (R) are true, but (R) is not the correct explanation of (A). (A) is true but (R) is false.

(D) (A) is false but (R) is true. 29. Assertion (A) : In a bell-shaped distributive curve, the value of Mean, Median and Mode would be identical. Reason (R) : There is no skewness in the series.

(A) Both (A) and (R) are true, but (R) is not the correct explanation of (A). (B) (C) (A) is true, but (R) is false. (A) is false, but (R) is true.

(D) Both (A) and (R) are true and (R) is the correct explanation of (A). 30. Assertion (A) : Colin Clark hypothesised that the safe upper limit of taxation is 25 percent of national income. Reason (R) : The excess burden of taxation will be very high if it goes beyond the 25 percent limit.

(A) (A) is true, but (R) is false. (B) (C) Both (A) and (R) are true. Both (A) and (R) are true and (R) is the correct explanation of (A).

(D) Both (A) and (R) are false. Paper-II 10 D-0109

Note : For Question Nos. 31 to 38, the candidates are required to tick () mark the option having the right chronological order. 31. (i) (ii) Value and Capital Principles of Political Economy and Taxation

(iii) A Revision of Demand Theory (iv) The General Theory of Employment, Interest and Money Codes : (A) (ii), (iv), (i), (iii) (B) (C) (iii), (i), (iv), (ii) (iv), (iii), (i), (ii)

(D) (i), (iv), (iii), (ii)

32.

(i) (ii)

Introduction of MODVAT Introduction of Fringe Benefit Tax

(iii) Introduction of Expenditure Tax (iv) Abolition of Estate Duty Codes : (A) (ii), (iii), (i), (iv) (B) (C) (iii), (iv), (i), (ii) (iv), (i), (iii), (ii)

(D) (i), (iv), (ii), (iii)

33.

(i) (ii)

Relative Income Hypothesis Life-cycle Hypothesis

(iii) Absolute Income Hypothesis (iv) Permanent Income Hypothesis Codes : (A) (iii), (i), (iv), (ii) (B) (C) (ii), (iv), (i), (iii) (i), (iii), (ii), (iv)

(D) (iv), (ii), (iii), (i) Paper-II 12 D-0109

34.

(i) Modernisation (ii) Rapid and non-inclusive growth (iii) Removal of poverty and self-reliance (iv) Rapid and large scale industrialisation Codes : (A) (i), (ii), (iv), (iii) (B) (ii), (iv), (i), (iii) (C) (iv), (ii), (iii), (i) (D) (iv), (iii), (i), (ii) (i) Formation of WTO (ii) Uruguay Round of GATT (iii) Formation of GATT (iv) Formation of UNCTAD Codes : (A) (i), (iii), (ii), (iv) (B) (iv), (iii), (ii), (i) (C) (iii), (iv), (ii), (i) (D) (ii), (iv), (i), (iii) (i) Pradhan Mantri Gramodaya Yojana (PMGY) (ii) Swarnjayanti Gram Swarozgar Yojana (SGSY) (iii) Jawahar Rozgar Yojana (JRY) (iv) Integrated Rural Development Programme (IRDP) Codes : (A) (iii), (iv), (ii), (i) (B) (ii), (iii), (iv), (i) (C) (i), (ii), (iii), (iv) (D) (iv), (iii), (ii), (i) (i) Creation of SDRs (ii) Formation of IMF (iii) Collapse of International Monetary System (iv) Introduction of Gold Standard Codes : (A) (ii), (iii), (i), (iv) (B) (iii), (iv), (i), (ii) (C) (ii), (iv), (iii), (i) (D) (iv), (ii), (i), (iii) 14 D-0109

35.

36.

37.

Paper-II

38.

Chairman of the Finance Commission (i) K.C. Pant (ii) K. Brahamananda Reddy (iii) A.M. Khusro (iv) K. Santhanam Codes : (A) (i), (iii), (ii), (iv) (B) (ii), (i), (iii), (iv) (C) (iv), (ii), (i), (iii) (D) (iii), (ii), (i), (iv)

Note : Matching item (Q. Nos. 39 to 46) : This consists of two lists of Events / Theories / Models / Statements, etc., and the other of authors/years. The candidates are required to match an item in one list with an item in the other and mark the correct matching option, given in the code. 39. (a) (b) (c) (d) List-I Degree of monopoly theory Double criterion Behavioural theory of firm Average cost pricing (a) (b) (c) (d) List-II T. Scitovsky Halland Hitch

(i) (ii)

(iii) M. Kalecki (iv) Herbert Simon

(A) (iii) (i) (iv) (ii) (B) (ii) (iii) (iv) (i) (C) (iv) (ii) (D) (iii) (ii) 40. (a) (b) (c) (d) (i) (iii) (iv) (i) List-II Williamson

List-I Compensation criterion Impossibility theorem Managerial discretion model Uncertainty theory of profits (c) (d) (iii) (ii) (ii) (iv)

(i)

(ii) F.H. Knight (iii) Kaldor-Hicks (iv) Kenneth Arrow

(a) (b) (A) (iv) (i) (B) (C) (ii)

(iii) (iv) (i) (iii) (i)

(D) (iii) (ii) Paper-II

(iv) (i) 16 D-0109

41. (a) (b) (c) (d)

List-I Absolute income hypothesis Rational expectation hypothesis Relative income hypothesis The New Keynesian model (a) (B) (C) (ii) (ii) (b) (i) (c) (d) (i) (i) (ii)

List-II N. Gregory Mankiw J.M. Keynes

(iii) Robert Lucas (iv) James Duesenberry

(A) (iv) (iii) (ii)

(iv) (iii) (i) List-I (iv) List-II (i) (ii) Bent Hansen Milton Friedman

(iii) (iv) (i)

(D) (iii) (ii) 42. (a) (b) (c) (d)

Stability of demand function for money Demand inflation theory Interest elasticity of transactions demand for cash Real balance effect (a) (b) (i) (c) (d) (iv) (iv) (iii) (i) (i)

(iii) Don Patinkin (iv) James Tobin

(A) (ii) (B) (C) (ii)

(iv) (iii)

(iii) (ii)

(D) (ii) 43. (a) (b) (c) (d)

(iii) (iv) (i) List-I List-II (i) (ii) P.R. Brahmananda Joseph Schumpeter

Steady rate of growth Golden age Wage goods model Circular flow of economic life (a) (b) (c) (ii) (d) (iv) (ii) (iii) (iv) (i) (ii) (iv) (iii)

(iii) R.M. Solow (iv) Mrs. Joan Robinson

(A) (ii) (B) (C) (i)

(iii) (i)

(D) (iii) (iv) (i) Paper-II

18

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44. (a) (b) (c) (d)

List-I Principle of absolute advantage Effects of factor endowment changes on trade Theory of reciprocal demand Factor price equalisation theorem (a) (B) (C) (b) (c) (i) (d) (iii) (i) (iv) (i) (iv) (ii) (ii) (iv) (i)

List-II Rybczynski Samuelson J.S. Mill

(iii) Adam Smith

(A) (iii) (ii) (iv) (ii) (iii) (i)

(D) (iii) (iv) (ii) 45. (a) (b) (c) (d) List-I

List-II (i) (ii) Peacock-Wiseman A.C. Pigou

Voluntary exchange approach Theory of local public goods Time-pattern of public expenditure growth Principle of least aggregate sacrifice (a) (b) (c) (d) (ii) (iv)

(iii) Wicksell-Lindahl (iv) Charles Tiebout

(A) (iii) (iv) (i) (B) (C) (iii) (i) (iii) (ii) (i)

(iv) (ii) (iii) (i) List-I List-II (a) (b) (c) (d) Spearman Yule Gulton Marshall-Edgeworth

(D) (iv) (ii) 46. (i) (ii)

Hybrid Index Number Association of Attributes

(iii) Rank Correlation (iv) Regression Codes : (A) (i, b), (ii, c), (iii, d), (iv, a) (B) (C) (i, d), (ii, b), (iii, a), (iv, c) (i, a), (ii, c) (iii, b), (iv, d)

(D) (i, d), (ii, b), (iii, c), (iv, a) Paper-II 20 D-0109

Read the passage below and answer questions from 47 to 50 on your understanding of the passage. The theory of economic integration refers to the commercial policy of discriminatively reducing or eliminating trade barriers only among the nations joining together. The degree of economic integration ranges from preferential trade arrangements to free trade areas, customs, unions, common markets, and economic unions. Preferential trade arrangements provide lower barriers on trade among participating nations than on trade with non-member nations. The best example of a preferential trade arrangement is the British Commonwealth Preference Scheme established in 1932. A free trade area is the form of economic integration wherein all barriers are removed on trade among members, but each nation retains its own barriers to trade with non-members. The best examples are the European Free Trade Association (EFTA) formed in 1960, the North American Free Trade Agreement (NAFTA) formed in 1993 and the Southern Common Market (MEROSUR) formed in 1991. A customs Union allows no tariff or other barrier on trade among members. The most famous example is the European Union (EU) or European Common Market, formed in 1957. A common market goes beyond a customs union by also allowing the free movement of labour and capital among member nations. An economic union goes still further by harmonizing or even unifying the monetary and fiscal policies of member state. This is the most advanced type of economic integration. 47. Which of the following is not a free trade area ? (A) The North American Free Trade Agreement. (B) Southern Common Market. (C) European Common Market. (D) European Free Trade Association. Which of the following allows free movement of labour and capital among member nations ? (A) Preferential trade arrangement (B) Customs union (C) Economic union (D) Common market An economic union is the most advanced type of economic integration. (A) It unifies the monetary and fiscal policies of member states. (B) It permits no tariff barriers on trade among members. (C) It allows free movement of capital and labour among member nations. (D) It allows no tariffs on trade among members and a common tariff policy towards the rest of the world is followed. The most advanced type of economic integration is (A) Economic union (B) Customs union (C) Common market (D) Free Trade Area ______________ 22 D-0109

48.

49.

50.

Paper-II

Signature and Name of Invigilator 1. (Signature) (Name) 2. (Signature) (Name)

OMR Sheet No. : ......................................................

(To be filled by the Candidate)

Roll No.
(In figures as per admission card)

Roll No.

(In words)

J0 1 0 9
Time : 1 hours] Number of Pages in this Booklet : 24

Test Booklet No.

ECONOMICS
1. 2.

PAPERII

[Maximum Marks : 100

Number of Questions in this Booklet : 50

Instructions for the Candidates

1. 2. 3. Write your roll number in the space provided on the top of this page. This paper consists of fifty multiple-choice type of questions. At the commencement of examination, the question booklet will be given to you. In the first 5 minutes, you are requested to open the booklet and compulsorily examine it as below : (i) To have access to the Question Booklet, tear off the paper seal on the edge of this cover page. Do not accept a booklet without sticker-seal and do not accept an open booklet. (ii) Tally the number of pages and number of questions in the booklet with the information printed on the cover page. Faulty booklets due to pages/questions missing or duplicate or not in serial order or any other discrepancy should be got replaced immediately by a correct booklet from the invigilator within the period of 5 minutes. Afterwards, neither the question booklet will be replaced nor any extra time will be given. (iii) After this verification is over, the Test Booklet Number should be entered in the OMR Sheet and the OMR Sheet Number should be entered on this Test Booklet. Each item has four alternative responses marked (A), (B), (C) and (D). You have to darken the oval as indicated below on the correct response against each item. Example :
A B C D

U
U DU U S U UU U - 3. U U U, -S U U U -S U (i) -S U U U U SUU-U S SU U (ii) U DU U U U -S DU U U U U U U S DU / U UU U U S SU U UUU S U U -S U U -S U UQ (iii) -S R OMR U U UU OMR R -S U U 4. U U (A), (B), (C) (D) U UU U U A B C D (C) U 5. U U I U U- U U U U S U U U , U 6. U U 7. (Rough Work) S DU U U 8. U-S U , U U U U 9. U # U -S OMR U- U UU U U # U U U 10. / U ZU S U 11. U (UU) U U 12. U U

4.

where (C) is the correct response. 5. Your responses to the items are to be indicated in the Answer Sheet given inside the Paper I booklet only. If you mark at any place other than in the ovals in the Answer Sheet, it will not be evaluated. 6. Read instructions given inside carefully. 7. Rough Work is to be done in the end of this booklet. 8. If you write your name or put any mark on any part of the test booklet, except for the space allotted for the relevant entries, which may disclose your identity, you will render yourself liable to disqualification. 9. You have to return the test question booklet and OMR Answer Sheet to the invigilators at the end of the examination compulsorily and must not carry it with you outside the Examination Hall. 10. Use only Blue/Black Ball point pen. 11. Use of any calculator or log table etc., is prohibited. 12. There is NO negative marking.

J0109

P.T.O.

ECONOMICS
PAPERII
Note : This paper contains fifty (50) multiple choice questions, each question carrying two (2) marks. Attempt all of them.

1.

Which one of the following is not the assumption of indifference curve analysis ? (A) (C) Weak ordering Perfect divisibility of goods (B) (D) Constant income Ordinal nature of utility

2.

The value of co-efficient of elasticity on a linear downward sloping demand curve varies because : (A) (C)

q varies p p varies q

(B) (D)

p varies q
both (A) and (B) varies

3.

Arrange the following economists in chronological order in the context of their contribution to the theory of oligopoly. (i) (iii) (A) (B) (C) (D) E. Stackelberg J. Bertrand (i) (ii) (iii) (iv) (ii) (iii) (i) (ii) (iii) (iv) (ii) (i) (iv) (i) (iv) (iii) (ii) (iv) A. Cournot P. Sweezy

Code :

4.

Assertion (A) : In case of giffen goods rise in price will lead to a rise in demand while a fall in price will decrease its demand. Reasoning (R) : Every price change can be broken into income effect and substitution effect. Answer : (A) (B) (C) (D) Both (A) and (R) are correct and (R) is the correct explanation of (A) Both (A) and (R) are correct and (R) is not the correct explanation (A) is true but (R) is false (A) is false but (R) is true 2

J0109

5.

Assertion (A) : Existence of public goods hinders achievement of pareto-optimality. Reasoning (R) : The evaluation of marginal benefits from a public good differs across individuals. (A) (B) (C) (D) Both (A) and (R) are true and (R) is the correct explanation of (A) Both (A) and (R) are true but (R) is not the correct explanation (A) is true but (R) is false (A) is false but (R) is true

6.

Under perfect competition equilibrium in the long run is achieved when : (A) (C) AR5MR MR5LAC (B) (D) LMC5MR Price5LMC

7.

Which one of the following ratios represents rate of profit in the Marxian Theory of Distribution ? (A)
C V

(B)

C C1V

(C)

S V

(D)

S C1V

8.

Assertion (A) : In an economy that is operating at less than full employment level, crowding out need not occur. Reasoning (R) : Monetary authorities can provide an accommodating monetary policy that avoids the rise in interest rates with output expansion. Select the correct answer using the code given below : (A) (B) (C) (D) Both (A) and (R) are true and (R) is the correct explanation. Both (A) and (R) are true but (R) is not the correct explanation (A) is true but (R) is false (A) is false but (R) is true

9.

The sequence of operation of the transmission of a change in monetary policy is : (i) (ii) (iii) (iv) Changes in real money supply Adjustment in output Adjustment in spending Changes in interest rates and asset prices

Select the correct answer according to the code. Code : (A) (B) (C) (D) J0109 (i) (i) (i) (i) (ii) (ii) (iv) (iii) (iv) (iii) (iii) (ii) (iii) (iv) (ii) (iv) 4

10.

In IS-LM model, under usual Keynesian assumption, an increase in government spending will cause : (A) (B) (C) (D) Both income and rate of interest to rise Income to rise and rate of interest to fall Income to remain unchanged and rate of interest to fall Income to rise and rate of interest to remain unchanged

11.

The original Phillips curve postulates relation between two of the following : (i) (ii) (iii) (iv) Rate of unemployment Level of unemployment Rate of increase in money wages Rate of increase in real wages

Choose the correct combination according to the code : Code : (A) (B) (C) (D) (ii) and (iii) (i) and (iv) (ii) and (iv) (i) and (iii)

12.

Assertion (A) : OKuns Law is a useful guide to macro economic policy. Reasoning (R) : OKuns Law indicates how a particular growth target will affect the unemployment rate over time. Select the correct answer according to the code : (A) (B) (C) (D) Both (A) and (R) are true and (R) is the correct explanation. Both (A) and (R) are true but (R) is not the correct explanation. (A) is true but (R) is false. (A) is false but (R) is true.

13.

When money supply increases, price level rises proportionately according to : (A) (C) Marshall Keynes (B) (D) 6 Fisher Cantillon

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14.

Investment demand in a Keynesian system is determined by : (i) (ii) (iii) (iv) (A) (B) (C) (D) Marginal efficiency of capital Tax rates Marginal efficiency of investment Stock of capital (i) and (ii) (i) and (iii) (ii) and (iii) (iii) and (iv)

Select the correct answer according to the code :

15.

Which one of the following is NOT a sign of economic development ? (A) (B) (C) (D) Changing structure of GDP in favour of industry Larger share of GDP coming from primary sector Larger capital inflows Institutional changes in an economy.

16.

Rate of real income growth in a country is annual percentage growth of : (A) (B) (C) (D) Rate of GDP growth at current price GDP growth at factor cost at current prices Rate of GDP growth at factor cost at constant prices Rate of GDP growth at market prices

17.

Consider the following statements : (i) (ii) (iii) (iv) Economic development which results in high level of GDP in present time. A pattern of development that seeks to meet the needs of present without compromising the ability of future. Development which ensures maximum welfare of present generation. Development which takes into account environmental degradation.

Of the above, sustainable development includes : Code : (A) (B) (C) (D) J0109 (ii) and (iv) only (ii) and (iii) only (i) (ii) and (iii) (i) (ii) (iii) and (iv) 8

18.

Assertion (A) : Cumulative causation is an explanation of backwardness of developing nation. It is a hypothesis of geographical dualism. Reasoning (R) : Expansion in a favoured region has a backwash effect on other regions causing regional disparities. Select the correct answer using the code : Code : (A) (B) (C) (D) Both (A) and (R) are true and (R) is the correct explanation of (A). Both (A) and (R) are true but (R) is not correct explanation of (A). (A) is true but (R) is false. (A) is false but (R) is true.

19.

Human Development Index prepared by UNDP is based on some of the following variables : (i) (ii) (iii) (iv) (A) (B) (C) (D) Life expectancy at birth Health facilities Per capita income adjusted by purchasing power Literacy and enrolment percentage (i), (ii) and (iii) are correct (ii), (iii) and (iv) are correct only (i) and (iii) are correct (i), (iii) and (iv) are correct

Of the above variables :

20.

Which of the following is not the assumption of Solows model of long run growth ? (A) (B) (C) (D) Saving ratio is constant Prices and wages are constant Production function is linear homogeneous Labour and output not growing at same rate

21.

The original interpretation of balanced growth relates to : (A) (B) (C) (D) all sectors growing at the same rate equal amount of investment in all sectors absence of shortages or excesses large expansion of economic activities in all the areas 10

J0109

22.

List-I includes names of some authors and List-II some theories/hypothesis related with these authors. Matching authors with their contribution select correct answer from the codes given below the lists : List-I (Authors) (a) (b) (c) (d) Rodan, R. Nelson, R. Hirschman, A Leibenstein, H (a) (A) (B) (C) (D) (iii) (iii) (iv) (ii) (b) (i) (i) (i) (iii) (c) (iv) (ii) (iii) (i) (d) (ii) (iv) (ii) (iv) (i) (ii) (iii) (iv) List-II (Contribution) Low level equilibrium trap Critical minimum effort Big push Unbalanced growth

Codes :

23.

In investment criteria shadow prices are the prices : (A) (B) (C) (D) In black market parallel to controlled prices Fixed by the government without a consideration of cost of production Which reveal true scarcity value of goods and factor inputs. At which goods and factors are not available

24.

A Progressive Tax is one in which : (A) (B) (C) (D) The tax payment as a percentage of income falls The tax payment as a percentage of income is constant The tax payment as a percentage of income increases There is no linkage between income and tax payment

25.

One of the necessary conditions for correcting fiscal imbalance is : (A) (B) (C) (D) The real interest rate on public debt is equal to GDP growth rate The real interest rate on public debt is greater than GDP growth rate The real interest rate on public debt is lower than GDP growth rate None of the above

26.

The 12th Finance Commission recommended, among other things, to raise the share of states in net proceeds of divisible pool of central tax to : (A) 25.1% (B) 28.9% 12 (C) 30.5% (D) 45.5%

J0109

27.

The Non plan grants by the central government to the state governments in India are made on the recommendations of : (A) (B) (C) (D) Ministry of Finance Finance Commission RBI Planning Commission

28.

A transfer payment is a payment : (A) (B) (C) (D) made by the government to its current workers. made to people who are needy. For in-kind services provided to the government. For which no services or goods are rendered.

29.

Which one of the following does not constitute a problem in Centre-State financial relations in India ? (A) (B) (C) (D) Problem of State Autonomy Neglect of Horizontal transfers Problem of Inter-State Disparities Suicide by farmers in certain States

30.

An act of devaluation of a currency, other things being equal, will : (A) (B) (C) (D) Increase the total quantum of the exports and reduce the total quantum of imports of the devaluing country Increase the total quantum of both exports and imports Decrease the total quantum of both imports and exports Decrease the total volume of exports and increase the total quantum of imports

31.

India, at present, has full convertibility of rupee on : (A) (B) (C) (D) Current Account Capital Account Both on Current and Capital Account None of the above

32.

The value of Special Drawing Right (SDR) at present is determined in the international market by : (A) (B) (C) (D) The price of gold

?? The value of US S
The average value of the basket of a set of convertible currencies Euro 14

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33.

The quantum of intra-regional trade among the countries of the world is explained by : (A) (B) (C) (D) Heckscher-Ohlin theory Comparative cost theory Both (A) and (B) Theories based on imperfect competition

34.

The income terms of trade of a country is defined by Dorrance as : (A) (B) (Px) (Pm) (Qx)

Pm 3100 Px Pm 3Q x Px
Px 3Q x Pm

(C) (D)

35.

Which of the following is not a full-fledged member of the ASEAN group at present (2006) ? (A) (B) (C) (D) Indonesia and Mynamar Phillippines and Thailand India and Pakistan South Vietnam and Singapore

36.

Match the years in the List-I with the events in List-II : List-I (a) (b) (c) (d) 1966 1969 1971 1995 (a) (A) (B) (C) (D) (iv) (iii) (i) (ii) (b) (ii) (i) (iii) (iv) (c) (i) (ii) (iv) (iii) (d) (iii) (iv) (ii) (i) 16 (i) (ii) (iii) (iv) List-II Creation of SDR Collapse of the Bretton Woods System Devaluation of the rupee during 60 S Creation of WTO

Codes :

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37.

Employment in the organised sector as a percentage of the total working force in 2003 accounted for : (A) (B) (C) (D) Below 10% but greater than 5% Below 15% but greater than 10% Below 20% but greater than 15% Below 25% but greater than 20%

38.

In respect of GDI, Indias rank in 2003 stood at : (A) 90 (B) 92 (C) 98 (D) 105

39.

Minimum support price in the agricultural sector is undertaken to : (A) (B) (C) (D) Prevent fall in the price in face of a glut in any given year Protect the interests of the farmers Provide incentive to farmers All of the above

40.

The New Social Security Scheme for unorganised sector in India was launched in : (A) 1991 (B) 1996 (C) 2001 (D) 2004

41.

As per the tenth plan projections the percentage of population below the poverty line in 2007 would be around : (A) 19.2 (B) 23.1 (C) 27.2 (D) 35.9

42.

As per the report of the third working group (1998) which of the following measure is used by R B I to measure the total money supply. (A) (B) (C) (D) M11M2 M11M3 M21M3 M11M21M31M4 Where M1, M2, M3 and M4 have the usual accepted meanings.

J0109

18

43.

For a Binomial distribution the following information is given : N560 P50.70 q50.30 Then the variance of the distribution is : (A) 12.6 (B) 8.6 (C) 7.6 (D) 6.6

44.

The geometric mean of the numbers 2, 4, 0, 16, 32 will be equal to : (A) 3.2 (B) 4.0 (C) 2.0 (D) zero

45.

If the regression lines of y on x and x on y are given by : y5a01a1x and x5b01b1x respectively, then the square of the co-efficient of (r2) is : (A) (B) (C) (D) a0 b 0 a1 b 1 a0 b 1 None of the above

46.

A ball is drawn at random from a box containing 6 red, 4 white and 5 blue balls, then probability of drawing not red ball is : (A) 1.0 (B) 1.2 (C)
3 5

(D)

47.

A weighted price index that uses the arithmetic average of the base period and given period quantities as weights is known as : (A) (B) (C) (D) Paasches Index Marshall-Edgeworth Index Fishers Ideal Index Laspeyres Index 20

J0109

48.

Which of the following test is used for examining the significance of the difference between two means of the population when variances are known and equal ? (A) (C) F test X2 (B) (D) Z test T test

49.

The sum of the numbers x1, x2, x3, .., xn from their arithmetic mean x is equal to : (A) (C) Unity zero (B) (D) 21.0 2.0

50.

If x and y are two independent variables, then their co-variance is : (A) (C) Unity 2.0 (B) (D) Zero 21.0

-oOo-

J0109

22

Signature and Name of Invigilator 1. (Signature) (Name) 2. (Signature) (Name)

OMR Sheet No. : ......................................................

(To be filled by the Candidate)

Roll No.
(In figures as per admission card)

Roll No.

(In words)

D0 1 0 8
Time : 1 hours] Number of Pages in this Booklet : 24

Test Booklet No.

ECONOMICS

PAPERII

[Maximum Marks : 100

Number of Questions in this Booklet : 50

Instructions for the Candidates

1. 2. 3. Write your roll number in the space provided on the top of this page. This paper consists of fifty multiple-choice type of questions. At the commencement of examination, the question booklet will be given to you. In the first 5 minutes, you are requested to open the booklet and compulsorily examine it as below : (i) To have access to the Question Booklet, tear off the paper seal on the edge of this cover page. Do not accept a booklet without sticker-seal and do not accept an open booklet. (ii) Tally the number of pages and number of questions in the booklet with the information printed on the cover page. Faulty booklets due to pages/questions missing or duplicate or not in serial order or any other discrepancy should be got replaced immediately by a correct booklet from the invigilator within the period of 5 minutes. Afterwards, neither the question booklet will be replaced nor any extra time will be given. (iii) After this verification is over, the Test Booklet Number should be entered in the OMR Sheet and the OMR Sheet Number should be entered on this Test Booklet. Each item has four alternative responses marked (A), (B), (C) and (D). You have to darken the oval as indicated below on the correct response against each item. Example :

U
1. U DU U S U UU U 2. - 3. U U U, -S U U U

-S U
(i)

-S U U U U SUU-U S SU U

(ii)

U DU U U U -S DU U U U U U U S DU / U UU U U S SU U UUU S U U -S U U -S U UQ
U

(iii) -S R OMR U U UU OMR R -S U 4. U U (A), (B), (C) (D)

4.

U UU U

(C) U
5. U U I U U- U

where (C) is the correct response. 5. Your responses to the items are to be indicated in the Answer Sheet given inside the Paper I booklet only. If you mark at any place other than in the ovals in the Answer Sheet, it will not be evaluated. 6. Read instructions given inside carefully. 7. Rough Work is to be done in the end of this booklet. 8. If you write your name or put any mark on any part of the test booklet, except for the space allotted for the relevant entries, which may disclose your identity, you will render yourself liable to disqualification. 9. You have to return the test question booklet to the invigilators at the end of the examination compulsorily and must not carry it with you outside the Examination Hall. 10. Use only Blue/Black Ball point pen. 11. Use of any calculator or log table etc., is prohibited. 12. There is NO negative marking.

U U U S U U U , U

6. U U 7. (Rough Work) S DU U U 8. U-S U

, U U U U
9. U # U U-S U UU

U U # U U U

/ U ZU S U 11. U (UU) U U 12. U U

10.

D0108

P.T.O.

ECONOMICS
PAPERII
Note : This paper contains fifty (50) multiple choice questions, each question carrying two (2) marks. Attempt all of them.

1.

The Cobb-Douglas Production Function assumes that the elasticity of substitution is : (A) One (B) Two (C) Three (D) Four A consumer attains his/her equilibrium at the point where : (A) Total Utility5Price (B) Marginal Utility > Price (C) Marginal Utility < Price (D) Marginal Utility5Price Pareto Optimality can take place at any point on : (A) Laffer Curve (B) Engel Curve (C) Contract Curve (D) Lorenz Curve According to Says Law, unemployment can be removed by : (A) Rise in wages (B) Fall in wages (C) Taxing wages (D) Subsidising wages Which of the following is generally referred to as a broader measure of money supply ? (B) M2 (C) M3 (D) M4 (A) M1 In case of proportional relation between consumption and income : (A) APC > MPC (B) APC5MPC (C) APC < MPC (D) APC5MPS Indicative Planning is : (A) Rigid (C) Autocratic The (A) (B) (C) (D)

2.

3.

4.

5.

6.

7.

(B) (D)

Comprehensive Flexible

8.

major difference between Harrod-Domar and Solow models of growth lies in : Substitutability between labour and capital Returns to Scale Returns to variable factor Growth of income

9.

In Nurksian formulation of the thesis of the vicious circle of poverty in the context of an underdeveloped country, the inducement to invest is limited by : (A) Lack of savings (B) Lack of investment opportunities (C) Size of the market (D) The policy of the government 2

D0108

10.

Taxes raised are credited into : (A) Consolidated Fund (C) Public Accounts

(B) (D)

Contingency Fund Private Accounts

11.

Items which are of recurring nature are covered under : (A) Capital Budget (B) Revenue Budget (C) Cash Budget (D) Unified Budget The difference between total revenue and total expenditure is called : (A) Capital deficit (B) Revenue deficit (C) Fiscal deficit (D) Budgetary deficit Borrowings from foreigners are known as : (A) Export of goods (B) (C) Capital receipts (D) Unrequited receipts Current receipts

12.

13.

14.

Quantitative restrictions on imports by a country will lead to : (A) Decreased demand for imported products (B) Increased demand for imported products (C) Increased supply of imported products (D) Decreased supply of imported products According to Economic Survey 2007-2008, Indias exports as per cent of GDP in 20062007 stood at : (A) 11.0 (B) 14.0 (C) 16.0 (D) 19.0 The fiscal deficit of the Central Government in India as percentage of GDP in 20062007 stood at : (A) 1.4 (B) 3.4 (C) 5.4 (D) 4.1 As per the UNDPs Global Human Development Report 2007, Indias relative ranking out of 177 countries in respect of HDI was : (A) 123 (B) 131 (C) 128 (D) 125 Gross Domestic Savings as percent of GDP at current market prices in India in 20062007 was : (A) 30.8 (B) 34.8 (C) 37.7 (D) 39.2 In a regression equation of X on Y, bxy is equal to : (A) byx (B)
r

15.

16.

17.

18.

19.

(C)

(D)

r2 by x

20.

Which of the following averages is known as root-mean square ? (A) Quadratic Mean (B) Harmonic Mean (C) Geometric Mean (D) Combined Mean 4

D0108

Consider the following statements and select the correct answer from the codes given below for questions 21 to 30 (Assertion and Reasoning type item). 21. Assertion (A) : Under oligopoly, all firms are aware of their inter-dependence. Reason (R) : Personal rivalries do not exist among firms under oligopoly. (A) Both (A) and (R) are false (B) Both (A) and (R) are true but (R) is not the explanation of (A) (C) (A) is true, but (R) is false (D) (A) is false, but (R) is true 22. Assertion (A) : Giffen goods have a positively sloped demand curve. Reason (R) : The positive substitution effect in their case is more than offset by negative income effect. (A) Both (A) and (R) are true and (R) is the correct explanation of (A) (B) (A) is true, but (R) is false (C) Both (A) and (R) are false (D) Both (A) and (R) are true, but (R) is not the correct explanation of (A) Assertion (A) : According to Hicks, trade cycle occurs due to the interaction between multiplier, and accelerator. Reason (R) : In Hicksian business cycle theory, accelerator is impotent in the depression phase. (A) Both (A) and (R) are true and (R) is the correct explanation of (A) (B) Both (A) and (R) are true, but (R) is not the correct explanation of (A) (C) Both (A) and (R) are false (D) (A) is true, but (R) is false Assertion (A) : Duesenberry hypothesised that consumption income relationship is irreversible. Reason (R) : Consumption depends not only on current income but also on previous peak income. (A) Both (A) and (R) are true, but (R) is not the correct explanation of (A) (B) Both (A) and (R) are true, and (R) is the correct explanation of (A) (C) (A) is true, but (R) is false (D) Both (A) and (R) are false Assertion (A) : Backwash effects imply an unfavourable situation arising in underdeveloped countries. Reason (R) : Undue emphasis on exports of raw-materials at the expense of the growth of domestic manufacturing. (A) (A) is true, but (R) is false (B) Both (A) and (R) are false (C) Both (A) and (R) are true and (R) is the correct explanation of (A) (D) Both (A) and (R) are true, but (R) is not the correct explanation of (A) 6

23.

24.

25.

D0108

26.

Assertion (A) : Low levels of labour productivity exist in underdeveloped countries. Reason (R) : (A) (B) (C) (D) It is due to the lack of physical capital. Both (A) and (R) are false (A) is true, but (R) is false Both (A) and (R) are true and (R) is the correct explanation of (A) Both (A) and (R) are true, but (R) is not the correct explanation of (A)

27.

Assertion (A) : In India, more and more farmers are getting pushed out of agriculture. Reason (R) : (A) (B) (C) (D) Their land base is becoming smaller. (A) is true, but (R) is false Both (A) and (R) are false Both (A) and (R) are true, and (R) is the correct explanation of (A) Both (A) and (R) are true, but (R) is not the correct explanation of (A)

28.

Assertion (A) : Jagdish Bhagwati stated that a country, in its growth process, would experience immiserizing growth and deterioration of terms of trade. Reason (R) : (A) (B) (C) (D) Income elasticity of demand for the countrys exports is high. Both (A) and (R) are true (A) is false, but (R) is true Both (A) and (R) are true and (R) is the correct explanation of (A) (A) is true, but (R) is false

29.

Assertion (A) : Coefficient of Concurrent Deviations is calculated between the direction of deviations and not their magnitudes. Reason (R) : (A) (B) (C) (D) If it is desired to study the correlation between two series in a very casual manner.

(A) is false, but (R) is true (A) is true, but (R) is false Both (A) and (R) are true, but (R) is not the correct explanation. Both (A) and (R) are true and (R) is the correct explanation.

30.

Assertion (A) : James Buchanan viewed that primary burden of public debt is shifted to posterity. Reason (R) : (A) (B) (C) (D) Public debt is paid by taxing the posterity. (A) is true, but (R) is false (A) is false, but (R) is true Both (A) and (R) are false Both (A) and (R) are true and (R) is the correct explanation of (A). 8

D0108

For questions No. 31 to 38, the candidates are required to tick (3) mark the option having the right chronological order. 31. (i) Theory of monopolistic competition (ii) Gurnots Theory of Duopoly (iii) Marshalls Theory of Quasi-rent. (iv) Sweezys kinked demand curve Analysis Codes : (A) (iv) (iii) (i) (ii) (B) (i) (iii) (ii) (iv) (C) (ii) (iii) (i) (iv) (D) (iii) (i) (iv) (ii) 32. (i) Peacock-Wiseman hypothesis (ii) Buchanans An Economic Theory of Clubs (iii) Wagner hypothesis (iv) Findlay Shirrass canons of public expenditure Codes : (A) (i) (iii) (ii) (iv) (B) (iii) (i) (iv) (ii) (C) (ii) (iv) (iii) (i) (D) (iii) (iv) (i) (ii) (i) Inventory Theoretic Approach (ii) Restatement of the Quantity Theory of Money (iii) Fishers Equation of Exchange (iv) Tableau Economique Codes : (A) (i) (iii) (ii) (iv) (B) (iii) (ii) (i) (iv) (C) (iv) (iii) (i) (ii) (D) (ii) (i) (iv) (iii) (i) Introduction of Rolling Plan (ii) The movement from Planning to Market mechanism (iii) Feldman-Mahalanobis Model (iv) Declaration of Plan holiday Codes : (A) (i) (iii) (iv) (ii) (B) (ii) (iv) (i) (iii) (C) (iii) (iv) (i) (ii) (D) (i) (iii) (ii) (iv) 10

33.

34.

D0108

35.

(i) Specific Target-group Oriented Programmes (ii) Introduction of Family Planning (iii) Direct Anti-poverty Programmes (iv) Minimum Needs Programme Codes : (A) (ii) (i) (iv) (iii) (B) (i) (iii) (ii) (iv) (C) (iv) (iii) (i) (ii) (D) (iii) (ii) (iv) (i) (i) WTO Ministerial Meeting at Cancun (ii) WTO Ministerial Meeting at Hong Kong (iii) WTO Ministerial Meeting at Singapore (iv) WTO Ministerial Meeting at Doha Codes : (A) (i) (iii) (ii) (iv) (B) (iii) (iv) (i) (ii) (C) (ii) (iii) (i) (iv) (D) (iv) (ii) (iii) (i) (i) National Rural Employment Guarantee Programme (N.R.E.G.P.) (ii) Sampooran Gramin Rozgar Yojana (S.G.R.Y.) (iii) Antyodaya Anna Yojana (A.A.Y.) (iv) Pradhan Mantri Gram Sadak Yojana (P.M.G.S.Y.) Codes : (A) (i) (iv) (iii) (ii) (B) (iii) (i) (ii) (iv) (C) (iv) (ii) (iii) (i) (D) (iii) (iv) (ii) (i) Chairman of the Finance Commission (i) N.K.P. Salve (ii) C. Rangarajan (iii) P.V. Rajmannar (iv) K.C. Niyogi Codes : (A) (i) (iv) (iii) (ii) (B) (iv) (iii) (i) (ii) (C) (iv) (i) (ii) (iii) (D) (iii) (i) (iv) (ii) 12

36.

37.

38.

D0108

Matching item (Questions No. 39 to 46) : This consists of two lists of Events / Theories / Models / Statements, etc. and the other of authors / years. The candidates are required to match an item in one list with an item in the other and mark the correct matching option, given in the code.

39. (a) (b) (c) (d)

List-I Limit pricing theory Selling Costs Sales maximisation model (i) (ii) (iii)

List-II E.H. Chamberlin Robin Marris J.S. Bain William Baumol

Growth maximising model of the firm (iv)

Code : (a) (A) (B) (C) (D) (iii) (ii) (ii) (iii) (b) (i) (iv) (i) (ii) (c) (iv) (i) (iv) (iv) (d) (ii) (iii) (iii) (i)

40. (a) (b) (c) (d)

List-I Increasing Returns to Scale Diminishing Returns to Scale Constant Returns to Scale Diminishing Returns to Factors (i) (ii) (iii) (iv)

List-II b1, b2 < 1 b11b2 > 1 b11b2 < 1 b11b251

Code : (a) (A) (B) (C) (D) D0108 (i) (iv) (ii) (ii) (b) (iv) (i) (iii) (iii) (c) (iii) (ii) (iv) (i) (d) (ii) (iii) (i) (iv) 14

41. (a) (b) (c) (d)

List-I Revealed Preference hypothesis Quasi rent Elasticity of substitution Social welfare function (a) (A) (B) (C) (D) (iii) (iv) (iv) (ii) (b) (i) (iii) (i) (iii) (c) (ii) (ii) (ii) (iv) (d) (iv) (i) (iii) (i) (i) (ii) (iii) (iv)

List-II A. Bergson B.S. Minhas A. Marshall P.A. Samuelson

Code :

42. (a) (b) (c) (d)

List-I Tableau Economique Life cycle hypothesis An open economy version of IS-LM model National income accounting (a) (A) (B) (C) (D) (ii) (iii) (iii) (iv) (b) (iii) (i) (iv) (iii) (c) (iv) (ii) (ii) (i) (d) (i) (iv) (i) (ii) Code : (iii) (iv) (i) (ii)

List-II Richard Stone Robert Mundell Francois Quesnay Franco Modigliani

43. (a) (b) (c) (d)

List-I Physical Quality of Life Index Organic Composition of Capital Warranted rate of growth Stages of growth theory (a) (A) (B) (C) (D) (iv) (iii) (ii) (iii) (b) (iii) (iv) (iii) (iv) (c) (i) (i) (i) (ii) (d) (ii) (ii) (iv) (i) 16 (i) (ii) (iii) (iv)

List-II W.W. Rostow R.F. Harrod Morris D. Morris Karl Marx

Code :

D0108

44.

List-I (a) Income effect of devaluations (b) Price effect of devaluation (c) A measure to correct disequilibrium in BOP (d) International liquidity Code : (a) (b) (c) (d) (A) (ii) (i) (iii) (iv) (B) (iv) (iii) (ii) (i) (C) (iv) (ii) (i) (iii) (D) (iii) (ii) (i) (iv) List-I (a) Regulation of Capital market (b) Selective credit control (c) Minimum support price (d) Plan transfers Code : (a) (b) (c) (d) (A) (iv) (i) (ii) (iii) (B) (iv) (iii) (ii) (i) (C) (ii) (iii) (iv) (i) (D) (iv) (iii) (i) (ii) List-I (a) (b) (c) (d) nc
r r

(i) (ii) (iii) (iv)

List-II Depreciation Elasticity approach S.D.Rs Absorption approach

45.

(i) (ii) (iii) (iv)

List-II CACP Gadgil formula RBI SEBI

46.

List-II (i) (ii) (iii) (iv)

np

nc X
r

np X
r

Code : (a) (A) (ii) (B) (iii) (C) (iv) (D) (iii) D0108

(b) (iii) (i) (ii) (iv)

(c) (iv) (ii) (i) (i)

(d) (i) (iv) (iii) (ii) 18

Read the following passage below and answer questions from 47 to 50 on your understanding of the passage : One argument for protection that stands up to close economic scrutiny is the infant - industry argument. It holds that a nation may have a potential comparative advantage in a commodity, but because of lack of know-how and the initial small level of output, the industry cannot successfully compete with more established foreign firms. The infant-industry argument for protection is correct but requires several important qualifications. First, such an argument is more justified for developing nations where capital markets may not function properly. Second, as experience has shown that protection, once given, is difficult to remove. Third, what trade protection in the form of an import tariff, can do an equivalent production subsidy to the infant industry can do better. The reason is that a purely domestic distortion such as this should be overcome with purely domestic policy such as direct production subsidy to the infant industry. A production subsidy is also a more direct form of aid and it is easier to remove than an import tariff. A better policy would be to provide a direct subsidy to the industry. Similarly, a direct tax would also be better than a tariff to discourage activities that give rise to external diseconomies because the tax does not distort relative prices and consumption.

47.

The obstacles for an industry to compete with more established foreign firms are due to : (A) (B) (C) (D) Lack of know-how and technology Lack of Capital and initial small level of output Lack of know-how and initial small level of output Lack of flexibility.

48.

Developing countries are characterised by : (A) (B) (C) (D) Improper functioning of money markets Absence of capital markets Absence of both money markets and capital markets Improper functioning of the capital market

D0108

20

49.

Which is appropriate form of trade protection ? (A) (B) (C) (D) Export tariff Import tariff Export subsidy Non-tariff barriers

50.

Which of the following is appropriate activity giving rise to external economics ? (A) (B) (C) (D) A direct tax Tariff Trade policies Production subsidy

-oOo-

D0108

22

Signature and Name of Invigilator 1. (Signature) (Name) 2. (Signature) (Name)

OMR Sheet No. : ......................................................

(To be filled by the Candidate)

Roll No.
(In figures as per admission card)

Roll No.

(In words)

J0 1 0 8
Time : 1 hours] Number of Pages in this Booklet : 24

Test Booklet No.

ECONOMICS

PAPERII

[Maximum Marks : 100

Number of Questions in this Booklet : 50

Instructions for the Candidates

1. 2. 3. Write your roll number in the space provided on the top of this page. This paper consists of fifty multiple-choice type of questions. At the commencement of examination, the question booklet will be given to you. In the first 5 minutes, you are requested to open the booklet and compulsorily examine it as below : (i) To have access to the Question Booklet, tear off the paper seal on the edge of this cover page. Do not accept a booklet without sticker-seal and do not accept an open booklet. (ii) Tally the number of pages and number of questions in the booklet with the information printed on the cover page. Faulty booklets due to pages/questions missing or duplicate or not in serial order or any other discrepancy should be got replaced immediately by a correct booklet from the invigilator within the period of 5 minutes. Afterwards, neither the question booklet will be replaced nor any extra time will be given. (iii) After this verification is over, the Test Booklet Number should be entered in the OMR Sheet and the OMR Sheet Number should be entered on this Test Booklet. Each item has four alternative responses marked (A), (B), (C) and (D). You have to darken the oval as indicated below on the correct response against each item. Example :

U
1. U DU U S U UU U 2. - 3. U U U, -S U U U

-S U
(i)

-S U U U U SUU-U S SU U

(ii)

U DU U U U -S DU U U U U U U S DU / U UU U U S SU U UUU S U U -S U U -S U UQ
U

(iii) -S R OMR U U UU OMR R -S U 4. U U (A), (B), (C) (D)

4.

U UU U

(C) U
5. U U I U U- U

where (C) is the correct response. 5. Your responses to the items are to be indicated in the Answer Sheet given inside the Paper I booklet only. If you mark at any place other than in the ovals in the Answer Sheet, it will not be evaluated. 6. Read instructions given inside carefully. 7. Rough Work is to be done in the end of this booklet. 8. If you write your name or put any mark on any part of the test booklet, except for the space allotted for the relevant entries, which may disclose your identity, you will render yourself liable to disqualification. 9. You have to return the test question booklet to the invigilators at the end of the examination compulsorily and must not carry it with you outside the Examination Hall. 10. Use only Blue/Black Ball point pen. 11. Use of any calculator or log table etc., is prohibited. 12. There is NO negative marking.

U U U S U U U , U

6. U U 7. (Rough Work) S DU U U 8. U-S U

, U U U U
9. U # U U-S U UU

U U # U U U

/ U ZU S U 11. U (UU) U U 12. U U

10.

J0108

P.T.O.

ECONOMICS
PAPERII
Note : This paper contains fifty (50) multiple choice questions, each question carrying two (2) marks. Attempt all of them.

1.

The concept of consumers surplus was coined by : (A) Ricardo (B) Fisher (C) Marshall

(D)

Pigou

2.

For complementary goods the indifference curve takes the shape of : (A) a straight line (B) a downward sloping line (C) a right angle (D) a negatively sloped curve PAUL M SWEEZY used kinked demand curve to explain : (A) Price determination in oligopoly (B) Price rigidity in oligopoly (C) Profit maximisation in oligopoly (D) Price output determination in oligopoly According to Phillips curve when rate of inflation increases, then rate of : (A) unemployment also increases (B) unemployment decreases (C) unemployment will remain constant (D) Full employment will prevail According to Milton Friedman quantity theory of money is the theory of : (A) Prices (B) Income (C) Demand for money (D) Supply of money As per the hypothesis of Rational expectations in guessing the future economic agents : (A) are always right (B) are always wrong (C) make systematic errors (D) make random errors According to Marx increase in the organic composition of capital leads to : (A) increase in the rate of growth of economy (B) increase in employment (C) decrease in the rate of profit (D) increase in the rate of profit Which of the following feature is not a universally observed in under developed countries ? (A) Low per capita income (B) High density of population (C) Higher share of agriculture in G.D.P. (D) Low literacy rate 2

3.

4.

5.

6.

7.

8.

J0108

9.

In which of the following growth models human capital plays an important role ? (A) Neo - Classical Model (B) Endogenous Growth Model (C) Marxian Model (D) Harrod - Domar Model For the first time in India zero base budgeting was implemented in the finance ministership of : (A) P. Chidambaram (B) Manmohan Singh (C) V. P. Singh (D) Jaswant Singh Gadgil formula is applicable to : (A) Grants given by planning commission (B) Grants given by Finance commission (C) Grants given by RBI (D) Grants given by Foreign Countries Excess burden of tax means : (A) The net welfare loss from a tax (B) Very heavy burden (C) Burden over and above the money burden (D) Money burden and Real burden Leontief Paradox on the factor composition of US imports and exports : (A) Supports Heckscher - Ohlin model (B) Refutes Heckscher - Ohlin model (C) Supports Prebish - Singer model (D) Refutes Prebish - Singer model To how many countries, India offered to supply the services such as - Legal, health, social and placement etc. ? (A) 30 countries (B) 27 countries (C) 49 countries (D) 5 countries One of the important factors in trade reforms is to : (A) increase export duties (B) reduce import duties (C) keep export duties constant (D) keep import duties constant As per the 61st NSS Round (2004 - 05), going by the mixed return period, the poverty ratio at the national level was : (A) 27.8% (B) 22.00% (C) 25% (D) 17% The share of Indias agricultural exports in the total exports in the year 2001 - 02 was : (A) 31.7% (B) 30.6% (C) 19.4% (D) 14% 4

10.

11.

12.

13.

14.

15.

16.

17.

J0108

18.

The probability distribution in which mean and variance are equal : (A) Poisson (B) Binomial (C) NORMAL (D) Chi-square (x2) To test H0 : m5m0, against H1 : m m0 in case of N (m, s2) where s2 is known, H0 is rejected if : (A) (C)
x2 m0 > x2 m0 za n /2 s t a (n 1) n /2

19.

(B) (D)

x2 m0 x2 m0 <

za n /2 s t a (n 1) n /2

20.

The (A) (B) (C) (D)

regression coefficient is independent of : change of origin and scale change of origin only change of scale only Neither change of origin nor change of scale

21.

Consider the following statements and select correct answer from the code given below for question nos. 21 to 30 : Assertion (A) : Long run Phillips curve is a vertical line at the NAIRU. Reason (R) : Non - accelerating inflation rate of unemployment, more or less, stands accepted. (A) Both (A) and (R) are false (B) Both (A) and (R) are true but (R) is not the reason (C) Both (A) and (R) are true and (R) is the explanation (D) (A) is true, (R) is false Assertion (A) : Factor price ratio is irrelevant in deciding the level of output. Reason (R) : Fixes coefficients production function prevails. (A) Both (A) and (R) are true but (R) is not the explanation (B) Both (A) and (R) are false (C) Both (A) and (R) are true and (R) is the explanation (D) (A) is true but (R) is false Assertion (A) : One brand of non neutral terminal progress is as good as the other, in the context of models of steady state growth. Reason (R) : The elasticity of substitution of production function equals one. (A) Both (A) and (R) are false (B) Both (A) and (R) are true (C) (A) is true, (R) is false (D) (A) is false, (R) is true 6

22.

23.

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24.

Assertion (A) : In the heydays of planning Amartya Sen advocated the adoption of capital intensive technique for Indian. Reason (R) : (A) (B) (C) (D) India was a relatively labour abundant country. Both (A) and (R) are true and (R) is the explanation. (A) is true but (R) is false Both (A) and (R) are true but (R) is not the correct explanation (A) is false but (R) is true

25.

Assertion (A) : India is a favoured destination for the Western Business process outsourcing. Reason (R) : (A) (B) (C) (D) India has a large pool of English speaking population. Both (A) and (R) are true and (R) is the explanation Both (A) and (R) are false (A) is false, (R) is true Both (A) and (R) are true but (R) is not the explanation

26.

Assertion (A) : Indian economy is on a higher growth trajectory in the post - Reforms era. Reason (R) : (A) (B) (C) (D) Trade is an engine of growth. (A) is true and (R) is false Both (A) and (R) are true but (R) is not the explanation Both (A) and (R) are true and (R) is the explanation Both (A) and (R) are true

27.

Assertion (A) : Business cycles are an experienced reality. Reason (R) : (A) (B) (C) (D) Innovations are an act of creative destruction. Both (A) and (R) false Both (A) and (R) correct but (R) need not be the explanation Both (A) and (R) are true and (R) is the explanation (A) is false (R) is true

28.

Assertion (A) : Neutral taxes are feasible. Reason (R) : (A) (B) (C) (D) Neutral taxes have no excess burden. Both (A) and (R) true and (R) is the explanation Both (A) and (R) are true but (R) is not the explanation (A) is false but (R) is true (A) is true but (R) is false 8

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29.

Assertion (A) : Z test is applied to test for mean of population for large sample. Reason (R) : (A) (B) (C) (D) All distributions obey central limit theorem. Both (A) and (R) are true and (R) is the correct explanation of (A) Both (A) and (R) are true, but (R) is not the correct explanation of (A) (A) is true, but (R) is false (A) is false, but (R) is true

30.

Assertion (A) : India needs to spend a lot on Health Care. Reason (R) : (A) (B) (C) (D) India has BIMARU states. Both (A) and (R) true (A) is true (R) is false Both (A) and (R) are true and (R) is the explanation Both (A) and (R) true but (R) is not the explanation Put the following in the sequential order of its

Sequencing Type (31-38) : development. 31. (i) (ii) (iii) (iv) (A) (B) (C) (D) 32. (i) (ii) (iii) (iv) (A) (B) (C) (D) J0108

Revealed Preference Theory Akerlof Lemons Market Ordinal Utility Analysis N. M. Utility Analysis (ii) (i) (iii) (iv) (i) (iv) (ii) (ii) (iii) (ii) (iv) (i) (iv) (iii) (i) (iii)

Codes :

Multiplier - Accelerator interaction and trade cycle Keynes theory of trade cycle Sunspot theory of trade cycle Hawtreys monetary theory of trade cycle (ii) (iii) (i) (iv) (iii) (iv) (ii) (ii) (iv) (ii) (iv) (i) (i) (i) (iii) (iii) 10

Codes :

33.

(i) Fei-Ranis Model (ii) Lewis Duel Economy Model (iii) Todaros Rural Urban Migration Model (iv) Jorgenson Testing of a Dualism Model Codes : (A) (iii) (i) (ii) (iv) (B) (i) (ii) (iii) (iv) (C) (ii) (i) (iv) (iii) (D) (iv) (ii) (i) (iii) (i) Intra - Industry Trade Model (ii) Comparative Cost Principle (iii) Leontief Paradox (iv) Heckscher - Ohlin Theorem Codes : (A) (ii) (iv) (iii) (i) (B) (i) (ii) (iii) (iv) (C) (iv) (iii) (ii) (i) (D) (iii) (ii) (i) (iv) (i) Planning Commission (ii) Mahalanobis Model (iii) Plan Holiday (iv) Rolling Plan Codes : (A) (ii) (iii) (i) (iv) (B) (iv) (ii) (iii) (i) (C) (i) (ii) (iii) (iv) (D) (iii) (i) (iv) (ii) (i) W.T.O. (ii) GATT (iii) HONGKONG SUMMIT (iv) DUNKLE DRAFT Codes : (A) (i) (ii) (iii) (iv) (B) (iv) (i) (iii) (ii) (C) (iii) (iv) (i) (ii) (D) (ii) (iii) (iv) (i) 12

34.

35.

36.

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37.

(i) (ii) (iii) (iv) (A) (B) (C) (D)

WALRAS WICKSELL J. S. MILL MARSHALL (iii) (i) (iv) (ii) (i) (ii) (iii) (iii) (iv) (iii) (ii) (i) (ii) (iv) (i) (iv)

Codes :

38.

(i) (ii) (iii) (iv) (A) (B) (C) (D)

Neutral Fiscal policy Functional Finance Balanced Budget Compensatory Fiscal policy (i) (ii) (iv) (i) (ii) (iii) (i) (iii) (iii) (i) (iii) (iv) (iv) (iv) (ii) (ii)

Codes :

Matching Item (Q. Nos. 39 to 46) : This consists of two lists of Events / Theories / Models / Statements etc. and the other of Authors / Years . The candidates are required to match an item in one list with an item in the other and mark the correct matching option, given in the code. 39. (a) (b) (c) (d) List I Un-balanced growth R and D and growth Human Capital and growth (i) (ii) (iii) List II Hirschman, A. O. Marx, K. Romer, P. R. Lucas

Surplus value and accumulation (iv) (a) (b) (ii) (iii) (iii) (iv) (c) (iii) (ii) (iv) (i) (d) (iv) (i) (ii) (iii) 14

Codes : (A) (B) (C) (D) J0108 (i) (iv) (i) (ii)

40. (a) (b) (c) (d)

List I Export Pessimism Un-equal exchange Critical Minimum Efforts thesis Innovations - Entrepreneurship (a) (A) (B) (C) (D) (i) (ii) (iii) (iv) List I (a) (b) (c) (d) Reserve Bank of India First Finance Commission Gadgil formula Planning Commission (a) (A) (B) (C) (D) (ii) (i) (iii) (iv) List I (a) (b) (c) (d) Investment Multiplier Employment Multiplier (b) (i) (ii) (iv) (iii) (c) (iv) (iii) (i) (ii) (d) (iii) (iv) (ii) (i) (i) (ii) (iii) (iv) (b) (ii) (i) (iv) (iii) (c) (iii) (iv) (ii) (i) (d) (iv) (iii) (i) (ii) (i) (ii) (iii) (iv)

List II Emmanuel, A. Prebisch, R. Schumpeter, J. H. Liebenstein

Codes :

41.

List II 1968 1950 1935 1952

Codes :

42.

List II (i) (ii) (iii) (iv) R.F. Kahn Milton Friedman A. Laffer J. M. Keynes

Restatement of Quantity theory of money Supply side economics (a) (b) (i) (ii) (iii) (iv) (c) (ii) (iii) (ii) (i) (d) (iii) (iv) (i) (iii) 16

Codes : (A) (B) (C) (D) J0108 (iv) (i) (iv) (ii)

43. (a) (b) (c) (d)

List I Marginalist Revolution Multiplier Accelerator model IS - LM curves Capitalism, Socialism and Democracy (a) (A) (B) (C) (D) (iv) (iii) (ii) (i) List I (a) (b) (c) (d) Product Differentiation Duopoly Analysis Production of commodities by means of commodities Life cycle Hypothesis (a) (A) (B) (C) (D) (iv) (iii) (ii) (i) List I (a) (b) (c) (d) H0 : m5m0, H1 : m$m0 Simple Hypothesis Consistency P013P1051 (a) (A) (B) (C) (D) (ii) (i) (iii) (iii) (b) (iii) (iv) (i) (iv) (c) (i) (ii) (ii) (ii) (d) (iv) (iii) (iv) (i) 18 (i) (ii) (iii) (iv) (b) (iii) (iv) (i) (ii) (c) (i) (ii) (iii) (iv) (d) (ii) (i) (iv) (iii) (i) (ii) (iii) (iv) (b) (i) (ii) (iii) (iv) (c) (ii) (iv) (i) (iii) (d) (iii) (i) (iv) (ii) (i) (ii) (iii) (iv)

List II Samuelson J. R. Hicks Schumpeter Jevons

Codes :

44.

List II Sraffa Modigliani Cournot Chamberlin

Codes :

45.

List II All Parameters of distribution are specified Point estimation One sided test Time Reversal test

Codes :

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46. (a) (b) (c) (d)

List I For independent events A and B For mutually exclusive events A and B
ACB

List II (i) (ii) (iii) (iv)

P (A B)5 0 P (A B)5 P (A). P (B)

Bayes theorem
P (B ) P (A )

Conditional Probability (a) (b) (iv) (i) (ii) (i) (c) (i) (iv) (iv) (ii) (d) (iii) (iii) (iii) (iii)

Codes : (A) (B) (C) (D) (ii) (ii) (i) (iv)

Read the passage given below and answer questions from 47 to 50 based on your understanding of the passage : The current situation reminds me of the world some seventy years ago. As the world plummeted into the Great Depression, advocates of the free market said, Not to worry; markets are self-regulating, and given time, economic prosperity will resume. Never mind the misery of those whose lives are destroyed waiting for this so-called eventuality. Keynes argued that markets were not self-correcting, or not at least in a relevant time frame. (As he famously put it, In the long run, we are all dead.) Unemployment could persist for years, and government intervention was required. Keynes was pilloried - attacked as a socialist, a critic of the market. Yet in a sense, Keynes was intensely conservative. He had a fundamental belief in the markets : if only government could correct this one failure, the economy would be able to function reasonably efficiently. He did not want a wholesale replacement of the market system; but he knew that unless these fundamental problems were addressed, there would be enormous popular pressures. And Keyness medicine worked : since World War II, countries like the United States, following Keynisian prescriptions, have had fewer and shorter-lived downturns, and longer expansions than previously. 47. During Great Depression, the advocates of free market argued that : (A) (B) (C) (D) J0108 Markets are prone to failure Markets are self regulating Government should intervene with the help of monetary policy Government should intervene with the help of fiscal policy 20

48.

During Great Depression, Keynes was : (A) (B) (C) (D) attacked as being an advocate of free market attacked as being an advocate of active monetary policy attacked as being a socialist attacked as being an advocate of passive monetary policy

49.

Keynes wanted : (A) (B) (C) (D) Wholesale replacement of the market system Socialistic system to be created for the world an unregulated market system did not want wholesale replacement of the market system

50.

By following the policy prescriptions of Keynes : (A) (B) (C) (D) The world economy has suffered from prolonged depression The world economy has suffered from high rates of inflation The United states had fewer and shorter downturns The United States had higher rates of unemployment in the post second world war era.

-oOo-

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22

Signature and Name of Invigilator 1. (Signature) (Name) 2. (Signature) (Name)

Answer Sheet No. : ......................................................

(To be filled by the Candidate)

Roll No.
(In figures as per admission card)

Roll No.

(In words)

D0 1 0 7
Time : 1 hours] Number of Pages in this Booklet : 24

Test Booklet No.

ECONOMICS

PAPERII

[Maximum Marks : 100

Number of Questions in this Booklet : 50

Instructions for the Candidates

1. 2. 3. Write your roll number in the space provided on the top of this page. This paper consists of fifty multiple-choice type of questions. At the commencement of examination, the question booklet will be given to you. In the first 5 minutes, you are requested to open the booklet and compulsorily examine it as below : (i) To have access to the Question Booklet, tear off the paper seal on the edge of this cover page. Do not accept a booklet without sticker-seal and do not accept an open booklet. Tally the number of pages and number of questions in the booklet with the information printed on the cover page. Faulty booklets due to pages/questions missing or duplicate or not in serial order or any other discrepancy should be got replaced immediately by a correct booklet from the invigilator within the period of 5 minutes. Afterwards, neither the question booklet will be replaced nor any extra time will be given. After this verification is over, the Serial No. of the booklet should be entered in the Answer-sheets and the Serial No. of Answer Sheet should be entered on this Booklet.

U
1. U DU U S U UU U 2. - 3. U U U, -S U U U

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4.

Each item has four alternative responses marked (A), (B), (C) and (D). You have to darken the oval as indicated below on the correct response against each item. Example :
A B C D

4. U U (A), (B), (C) (D)

U UU U

where (C) is the correct response. 5. Your responses to the items are to be indicated in the Answer Sheet given inside the Paper I booklet only. If you mark at any place other than in the ovals in the Answer Sheet, it will not be evaluated. Read instructions given inside carefully. Rough Work is to be done in the end of this booklet. If you write your name or put any mark on any part of the test booklet, except for the space allotted for the relevant entries, which may disclose your identity, you will render yourself liable to disqualification. You have to return the test question booklet to the invigilators at the end of the examination compulsorily and must not carry it with you outside the Examination Hall.

(C) U
5. U U I U U- U

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6. 7. 8.

6. U U 7. (Rough Work) S DU U U 8. U-S U

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10. Use only Blue/Black Ball point pen. 11. Use of any calculator or log table etc., is prohibited. 12. There is NO negative marking.

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10. 11.

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P.T.O.

ECONOMICS
PAPERII
Note : This paper contains fifty (50) object type questions, each question carrying two (2) marks. Attempt all the questions.

1.

Chamberlin introduced the concept of cost known as : (A) (C) Fixed cost Selling cost (B) (D) Floating cost Variable cost

2.

If commodities are perfect substitutes indifference curve becomes a : (A) (C) Downward sloping curve Right angle (B) (D) straight line with negative slope Rectangular hyperbola

3.

C E S Production function is associated with the name of one of the following : (A) (C) Joan Robinson Manmohan Singh (B) (D) B. S. Minhas A. K. Sen

4.

Psychological law of consumption is given by : (A) (C) Milton Friedman Tobin (B) (D) Pigou Keynes

5.

When interest elasticity of demand for money is zero the L - M curve is : (A) (C) Vertical Parallel to Y-axis Positive Sloping straight line (B) (D) Horizontal Parallel to X-axis Negative Sloping straight line

6.

Natural rate of unemployment is the rate of unemployment at which : (A) (C) Rate of inflation is stable Rate of inflation is falling (B) (D) Rate of inflation is unstable Rate of inflation is rising

7.

Knife - Edge Problem arises in : (A) (C) Solow model Joan Robinson model (B) (D) Kaldor Model Harrod - Domar Model

8.

Who has propounded the theory of Unbalanced growth ? (A) (C) E. Domar A. O. Hirshman (B) (D) 2 A. K. Sen W. A. Lewis

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9.

Social factors in under developed countries : (A) (C) Retard growth Maximise growth (B) (D) Promote growth Lead to low growth

10.

Exclusion principle is not applicable to : (A) (C) Merit goods Private goods (B) (D) Social goods All goods

11.

To avoid the excess burden of tax, we should have : (A) (C) Low marginal tax rate Moderate marginal tax rate (B) (D) Zero marginal tax rate Reasonable Marginal tax rate

12.

Redemption of Public Debt means : (A) (B) (C) (D) Repayment of Public Debt Refusal to pay Public debt Redefining of Public debt in terms of foreign currency Linking Public debt with inflation rate

13.

The stable exchange rate system prevailed in the world trading during the period : (A) (C) 1919 - 1939 1946 - 1971 (B) (D) 1919 - 1971 1971 onwards

14.

As per the WTO agreement, India should import food-grains out of its total imports to the extent of : (A) (C) 5% 15 % (B) (D) 10% 30 %

15.

The ongoing strengthening of rupee against U.S. dollar : (A) (B) (C) (D) Indian exports to America will increase Indian exports to America will decrease Imports from America to India will remain constant Indian exports to America will remain constant

16.

Industrial licencing policy enquiry committee was set up in 1967 under the Chairman-ship of : (A) (C) R.K. Hazari S. Dutt (B) (D) 4 P.C. Mahalanobis V.K.R.V. Rao

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17.

The term of Hindu rate of growth was coined by : (A) (C) Gadgil Bhagwati (B) (D) Chakravarty Raj Krishna

18.

If b2 > 3, the curve is called : (A) (C) Platykurtic Mesokurtic (B) (D) Leptokurtic None of the above

19.

The two regression coefficients are given by (2 0.45) and (20.8), then the coefficient of correlation : (A) (C) 0.6 20.6 (B) (D) 0.36 20.36

20.

Which of the following does satisfy Factor Reversal test ? (A) (C) Laspeynes index No. Fishers index No. (B) (D) Marshell - Edgeworth index No. Paaches index No.

Consider the following statements and select correct answer from the codes given below for questions 21 to 30. (Assertion and Reasoning type item) 21. Assertion (A) : An individual values mean return on investment, but dislikes variance. Reason (R) : (A) (B) (C) (D) 22. Individuals are generally averse to risk. Both (A) and (R) are true and (R) is the reason Both (A) and (R) are true but (R) is not the reason (A) is true, but (R) is false (A) is false but (R) is true

Assertion (A) : In competitive equilibrium entire output gets exhausted in factor payments. Reason (R) : (A) (B) (C) (D) In competitive conditions returns to scale are constant. Both (A) and (R) true, (R) is the explanation (A) is true, but (R) is false Both (A) and (R) are false Both (A) and (R) are true but (R) is not the reason 6

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23.

Assertion (A) : Neo-classical models of growth predict steady state growth. Reason (R) : (A) (B) (C) (D) Saving investment equality is assumed.

Both (A) and (R) are true and (R) is the reason Both (A) and (R) are false Both (A) and (R) are true but (R) is not the reason (A) is true but (R) is false

24.

Assertion (A) : Sens P-measure is preferred both to Head Count ratio and the poverty gap ratio. Reason (R) : (A) (B) (C) (D) Sen won the Noble prize.

Both (A) and (R) are true and (R) is the explanation Both (A) and (R) are true but (R) is not the explanation of (A) (A) is false, but (R) is true Both (A) and (R) are false

25.

Assertion (A) : Indifference curve are convex to origin. Reason (R) : (A) (B) (C) (D) The Law of diminishing marginal utility is excepted in the discipline of Economics.

Both (A) and (R) are true but (R) is not the explanation Both (A) and (R) are false Both (A) and (R) are true and (R) is the reason (A) is false, but (R) is true

26.

Assertion (A) : Global income inequality has shown an increase in trend. Reason (R) : (A) (B) (C) (D) PREBISCH-SINGER propounded a secular decline in the terms of trade for primary producers and exporters.

(A) is false, but (R) is true Both (A) and (R) are false Both (A) and (R) are true and (R) is the reason Both (A) and (R) are true but (R) is not the explanation 8

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27.

Assertion (A) : An Elongated s shaped supply curve of labour is observed for the professionals. Reason (R) : (A) (B) (C) (D) Work gives disutility, therefore income compensation is required.

(A) is false, but (R) is true Both (A) and (R) are true but (R) is not the explanation Both (A) and (R) are true and (R) is the explanation (A) is true, but (R) is false

28.

Assertion (A) : Price leadership is tacit. Reason (R) : (A) (B) (C) (D) Open collective agreements are illegal in most countries.

Both (A) and (R) are true but (R) is not the correct explanation Both (A) and (R) are true and (R) is the correct explanation (A) is true, but (R) is false (A) is false, but (R) is true

29.

Assertion (A) : For large sample size all distributions tend to normal distribution. Reason (R) : (A) (B) (C) (D) The basic assumption in all the exact sample tests the parent population from which samples are drawn is not normal.

Both (A) and (R) are true and (R) is the correct explanation Both (A) and (R) are true but (R) is the not the correct explanation (A) is true, but (R) is false (A) is false, but (R) is true

30.

Assertion (A) : Jharkhand, Chattisgarh, Orissa are poverty ridden states of India. Reason (R) : (A) (B) (C) (D) These states are rich in mineral resources.

(A) is false, but (R) is true Both (A) and (R) are true and (R) is the explanation Both (A) and (R) are true but (R) is not the correct explanation (A) is true and (R) is false 10

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For Questions No. 31 to 38. The Candidates are required to tick (P ) mark the option having the right chronological order. 31. (i) Commission on agricultural costs and prices (ii) The food grain enquiry committee (iii) State trading of food grain (iv) Food grain policy committee Codes : (A) (i), (ii), (iii), (iv) (B) (iv), (iii), (ii), (i) (C) (iii), (ii), (i), (iv) (D) (iv), (ii), (iii), (i) (i) General theory of employment, interest and money : (ii) Affluent society (iii) Wealth of Nations (iv) Principles of Economics Codes : (A) (iii), (iv), (i), (ii) (B) (iv), (iii), (ii), (i) (C) (i), (ii), (iii), (iv) (D) (ii), (i), (iv), (iii) (i) Von-Neumann (ii) Keneth Arrow (iii) Robert Lucas (iv) Robert Solow Codes : (A) (ii), (i), (iv), (iii) (C) (i), (iv), (ii), (iii) (i) Peacock - Wise man Hypothesis (ii) Voluntary Exchange Approach (iii) Laffer Curve (iv) Canons of Taxation Codes : (A) (i), (ii), (iii), (iv) (C) (iv), (iii), (ii), (i)

32.

33.

(B) (D)

(i), (ii), (iii), (iv) (iii), (ii), (i), (iv)

34.

(B) (D)

(iv), (ii), (i), (iii) (ii), (iii), (iv), (i)

35.

(i) Bi - metallic system (ii) Gold Exchange standard system (iii) Gold standard system (iv) Dollar standard System Codes : (A) (ii), (iv), (i), (iii) (B) (C) (iv), (i), (ii), (iii) (D) 12

(iii), (ii), (iv), (i) (i), (iii), (ii), (iv)

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36.

Explanations of Investment : (i) On rate of interest (ii) On level of profits (iii) Marginal efficiency of capital (iv) Level of savings Codes : (A) (i), (ii), (iii), (iv) (C) (iv), (i), (iii), (ii) (i) Milton Friedmans Approach (ii) Fishers Approach (iii) Stock Balance Approach (iv) Keynes Approach Codes : (A) (ii), (iii), (iv), (i) (C) (iii), (i), (ii), (iv)

(B) (D)

(iii), (iv), (i), (ii) (ii), (iii), (iv), (i)

37.

(B) (D)

(i), (ii), (iii), (iv) (iv), (iii), (i), (ii)

38.

(i) Permanent Land Revenue Settlement (ii) Integrated Rural Development Programme (iii) Grow More Food Campaign (iv) Green Revolution Codes : (A) (ii), (i), (iii), (iv) (B) (iv), (iii), (ii), (i) (C) (i), (iii), (iv), (ii) (D) (iii), (ii), (i), (iv) Matching Item (Q. No. 39 to 46) : This consists of two lists of Events / Theories / Models / Statements etc. and the other of authors / years. The candidates are required to match an item in one list with an item in the other and mark the correct matching option, given in the code.

39. (a) (b) (c) (d) (A) (B) (C) (D) D0107

List-I Learning by doing Division of Labour Stationary State as bliss Low level equilibrium trap (a) (b) (c) (d) (iv) (ii) (iii) (i) (i) (ii) (iii) (iv) (iv) (iii) (ii) (i) (ii) (iv) (iii) (i)

(i) (ii) (iii) (iv)

List-II R. R. Nelson John Stuart Mill Adam Smith K. J. Arrow

14

40. (a) (b) (c) (d) (A) (B) (C) (D) 41.

List-I Big Push Knife - edge Golden age Golden rule of accumulation (a) (i) (ii) (iv) (iii) (b) (ii) (iv) (iii) (iv) (c) (iii) (i) (ii) (i) (d) (iv) (iii) (i) (ii) (i) (ii) (iii) (iv)

List-II Joan Robinson R. Rodan Phelps, E. Harrod, R. F.

Match the following : Group-I (a) (b) (c) (d) (A) (B) (C) (D) Rejection of Ho when it is true Mean is equal to degrees of freedom Population is heterogeneous Mean > Mode (a) (ii) (i) (ii) (iv) (b) (iv) (ii) (iv) (i) (c) (iii) (iii) (i) (ii) (d) (i) (iv) (iii) (iii) (i) (ii) (iii) (iv) Group-II Stratified random sampling Type-I error Positively skewed distribution x2 distribution

42.

Match the following : Group-I (a) (b) (c) (d) Wealth of Nations Treatise on Money In defence of globalisation Principles of Political Economy and Taxation (a) (A) (B) (C) (D) (iii) (i) (iv) (ii) (b) (iv) (ii) (iii) (i) (c) (ii) (iii) (ii) (iv) (d) (i) (iv) (i) (iii) 16 (i) (ii) (iii) (iv) Group-II David Ricardo Jagdish Bhagwati Adam Smith Keynes

D0107

43.

Match the following : Group-I (a) (b) (c) (d) (A) (B) (C) (D) Planning for an expanding economy Industrial evolution of India Drain theory Indias National income (a) (iii) (i) (iv) (i) (b) (i) (ii) (iii) (iv) (c) (iv) (iii) (ii) (iii) (d) (ii) (iv) (i) (ii) (i) (ii) (iii) (iv) Group-II V.K.R.V. Rao Dadabhai Nauroji D. R. Gadgil Vakil and Brahmanand

44.

Match the following : Group-I (a) (b) (c) (d) (A) (B) (C) (D) General theory of employment interest and money (i) Economics of Imperfect competition Stages of Economic growth Specie flow mechanism (a) (iv) (i) (iii) (ii) (b) (iii) (ii) (i) (iv) (c) (ii) (iii) (iv) (i) (d) (i) (iv) (ii) (iii) (ii) (iii) (iv) Group-II David Hume W.W. Rostou Joan Robinson J. M. Keynes

45.

Match the following : Group-I (a) (b) (c) (d) (A) (B) (C) (D) Communist Manifesto Globalisation and its discontents Theory of optimum currency area Essays in Positive Economics (a) (ii) (i) (iii) (iii) (b) (i) (ii) (ii) (i) (c) (iii) (iii) (i) (iv) (d) (iv) (iv) (iv) (ii) 18 (i) (ii) (iii) (iv) Group-II Robert Mundell Joseph stiglitz Karl Marx and Angels Milton Friedman

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46.

Match the following : Group-I (a) (b) (c) (d) (A) (B) (C) (D) Trend Coefficient of Variation Mean5 np Symmetric distribution (a) (ii) (i) (iv) (iii) (b) (iv) (iii) (i) (i) (c) (i) (iv) (iii) (iv) (d) (ii) (ii) (ii) (ii) (i) (ii) (iii) (iv) Group-II ((S. D.)/Mean)3100 Normal Time Series Binomial

Read the passage given below and answer questions from 47 to 50 on your understanding of the passage : The more difficult task of ensuring global economic stability was assigned to the IMF. Those who convened Bretton Woods had the global depression of the 1930s very much on their minds. Almost three quarters of a century ago, capitalism faced the most severe crisis to date. The Great Depression enveloped the whole world and led to unprecedented increases in unemployment. At the worst point, a quarter of Americas workforce was unemployed. The British economist John Maynard Keynes, who would later be a key participant at Bretton Woods, put forward a simple explanation, and a corresponding simple set of prescriptions; lack of sufficient aggregate demand explained economic downturns; government policies could help stimulate aggregate demand. In cases where monetary policy is ineffective, governments could rely on fiscal policies, either by increasing expenditures or cutting taxes. While the models underlying Keynes analysis have subsequently been criticised and refined, bringing a deeper understanding of why market forces do not work quickly to adjust the economy to full employment, the basic lessons remain valid.

47.

The IMF was assigned : (A) (B) (C) (D) The task of accelerating economic growth of the world The task of controlling inflation in the world economy The task of ensuring economic stability in the world economy The task of removing imbalances from the U.S.A. 20

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48.

During the Great Depression : (A) (B) (C) (D) Unemployment rate in the World was 25% Unemployment rate in England was 20% Unemployment rate in the U.S.A. was 25% Unemployment rate in India was 20%

49.

According to Keynes, the cause for the unprecedented global depression of the 1930s was : (A) (B) (C) (D) High interest rate in the U.S.A. Low interest rate in the U.K. Break down of the gold standard Lack of sufficient aggregate demand

50.

Keynes prescription to fight global depression was that : (A) (B) (C) (D) The government should pursue active monetary policy The government should pursue a combination of fiscal policy and monetary policy The government should pursue fiscal policy where monetary policy is in`effective The government should have a policy of balanced budget -oOo-

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22

Signature and Name of Invigilator 1. (Signature) (Name) 2. (Signature) (Name)

Answer Sheet No. : ......................................................

Candidate) (To be filled by the

Roll No.
(In figures as per admission card)

Roll No.

(In words)

J0 1 0 7
Time : 1 hours] Number of Pages in this Booklet : 24

Test Booklet No.

ECONOMICS

PAPERII

[Maximum Marks : 100

Number of Questions in this Booklet : 50

Instructions for the Candidates

1. 2. 3. Write your roll number in the space provided on the top of this page. This paper consists of fifty multiple-choice type of questions. At the commencement of examination, the question booklet will be given to you. In the first 5 minutes, you are requested to open the booklet and compulsorily examine it as below : (i) To have access to the Question Booklet, tear off the paper seal on the edge of this cover page. Do not accept a booklet without sticker-seal and do not accept an open booklet. Tally the number of pages and number of questions in the booklet with the information printed on the cover page. Faulty booklets due to pages/questions missing or duplicate or not in serial order or any other discrepancy should be got replaced immediately by a correct booklet from the invigilator within the period of 5 minutes. Afterwards, neither the question booklet will be replaced nor any extra time will be given. After this verification is over, the Serial No. of the booklet should be entered in the Answer-sheets and the Serial No. of Answer Sheet should be entered on this Booklet.

U
1. U DU U S U UU U 2. - 3. U U U, -S U U U

-S U
(i)

-S U U U U SUU-U S SU U

(ii)

(ii)

U DU U U U -S DU U U U U U U S DU / U UU U U S SU U UUU S U U -S U U -S U UQ
U UU U- R -S U U

(iii)

(iii) -S R U- U

4.

Each item has four alternative responses marked (A), (B), (C) and (D). You have to darken the oval as indicated below on the correct response against each item. Example :
A B C D

4. U U (A), (B), (C) (D)

U UU U

where (C) is the correct response. 5. Your responses to the items are to be indicated in the Answer Sheet given inside the Paper I booklet only. If you mark at any place other than in the ovals in the Answer Sheet, it will not be evaluated. Read instructions given inside carefully. Rough Work is to be done in the end of this booklet. If you write your name or put any mark on any part of the test booklet, except for the space allotted for the relevant entries, which may disclose your identity, you will render yourself liable to disqualification. You have to return the test question booklet to the invigilators at the end of the examination compulsorily and must not carry it with you outside the Examination Hall.

(C) U
5. U U I U U- U

U U U S U U U , U

6. 7. 8.

6. U U 7. (Rough Work) S DU U U 8. U-S U

, U U U U
9. U # U U-S U UU

9.

U U # U U U

10. Use only Blue/Black Ball point pen. 11. Use of any calculator or log table etc., is prohibited. 12. There is NO negative marking.

/ U ZU S U U (UU) U U 12. U U
10. 11.

J0107

P.T.O.

ECONOMICS
PAPERII
Note : This paper contains fifty (50) multiple choice questions, each question carrying two (2) marks. Attempt all of them.

1.

Match the following : List - I (a) (b) (c) (d) Iso-Profit curve Sales Maximisation Principle Selling Costs Principles of Absolute Advantage (i) (ii) (iii) (iv) List - II Adam Smith E. V. Stackelberg W. Baumol Edward Chamberlin

Select correct answer from the code given below : Code : (a) (A) (B) (C) (D) (ii) (i) (iii) (iv) (b) (iii) (iv) (ii) (i) (c) (iv) (ii) (i) (iii) (d) (i) (iii) (iv) (ii)

2.

Assertion (A) : If the rise in demand is quite substantial and stays high for a fairly long time, the kink in the Oligopolists demand curve will get reversed. Reason (R) : The rivals are less worried about losses and are operating closer to their capacity.

Select the correct answer from the code given below : Code : (A) (B) (C) (D) J0107 Both (A) and (R) are true and (R) is correct explanation of (A) Both (A) and (R) are true, but (R) is not the correct explanation of (A) (A) is true, but (R) is false (A) is false, but (R) is true 2

3.

Revealed preference theory can be used : (A) (B) (C) (D) to prove convexity of an indifference curve to break price effect to prove basic proposition of law of demand all of the above

4.

In case of perfect substitutes indifference curve is (A) (C) right angled linear downward sloping (B) (D) linear upward sloping concave to origin

5.

A ridgeline is a locus of such points where marginal productivity of a factor input is : (A) (C) equal to zero negative (B) (D) greater than zero equal to one

6.

Which one of the following is not the assumption of Pareto Optimality ? (A) (C) Existence of perfect competition Cardinal nature of utility (B) (D) Absence of externalities Utility is ordinal

7.

When the negative income effect outweighs the substitution effect, the concerned good is : (A) (C) a Giffin good a normal good (B) (D) an inferior good none of the above

8.

Attempts to force inflation below non-accelerating inflation rate of unemployment (NAIRU) will cause : (A) (B) (C) (D) inflation to accelerate without any change in employment or output Inflation to decelerate with rising employment and output inflation to decelerate with employment and output remaining the same inflation to remain unchanged with fall in employment and output. 4

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9.

Square root formula for money demand was developed by some of the following : (i) (ii) (iii) (iv) Milton Friedman James Tobin A. C. Pigou William Baumol

Of the above, select correct answer from the code given below : Code : (A) (C) (i) and (ii) are correct (ii) and (iv) are correct (B) (D) (i) and (iii) are correct (ii) and (iii) are correct

10.

Consider some of the factors that do not affect output and employment in the classical model of employment : (i) (ii) (iii) (iv) Quantity of money Level of government spending Upward shift in production function Level of demand for investment goods

Of the above, select correct answer from the code given below : Code : (A) (C) (i), (ii) and (iv) are correct (i), (iii) and (iv) are correct (B) (D) (i), (ii) and (iii) are correct (ii), (iii) and (iv) are correct

11.

Consider some of the features relating to Simple Life Cycle model of consumption : (i) (ii) (iii) (iv) Consumption spending is financed by life time income Current consumption spending depends on life-time income and current wealth Consumption each year depends on individuals life expectancy Current consumption of an individual depends on his current income

Of the above, select correct answer from the code given below : Code : (A) (C) J0107 (i) and (ii) are correct (i) and (iii) are correct (B) (D) 6 (ii) and (iii) are correct (iii) and (iv) are correct

12.

Consider some of the hypotheses of consumption function : (i) (ii) (iii) (iv) Permanent-Income hypothesis Relative-Income hypothesis Life-cycle hypothesis Absolute-Income hypothesis

Arranging above in the chronological order of appearance, select the correct sequence from the following code : Code : (A) (C) (i), (iii), (iv) and (ii) (iv), (ii), (iii) and (i) (B) (D) (iv), (i), (iii) and (ii) (iii), (i), (iv) and (ii)

13.

According to Kaynes, interest is paid for : (A) (B) (C) (D) parting with liquidity holding money for transactions purposes holding money as an asset holding money to tide over uncertainty

14.

Disposable income in National Accounts is calculated as : (A) (B) (C) (D) GDP1Net income from abroad1Transfer Payments2Taxes2undistributed profit GNP1Net income from abroad1Transfer Payments2Taxes1undistributed profit GDP2Net income from abroad1Transfer Payments2Taxes1undistributed profit GNP2Net income from abroad1Transfer Payments2Taxes1undistributed profit

15.

Consider some of the factors related to economic growth : (i) (ii) (iii) (iv) Larger inputs leading to larger output Technical and institutional changes by which output is produced Level of efficiency and skill producing larger output Diversification of output

Of the above, economic growth includes (A) (C) J0107 (i), (iii) and (iv) (i), (ii) and (iii) (B) (D) 8 (i) and (iii) only (i), (ii), (iii) and (iv)

16.

The hypothesis of vicious circle of poverty points to inter-relation between : (A) (B) (C) (D) productivity and income income and population inflation and high consumption surplus labour and disguised unemployment

17.

Physical Quality of Life Index (PQLI) was calculated by : (A) (C) Mahboobul Haq Morris D. (B) (D) Meier G. M. None of the above

18.

Which one of the following is irrelevant in economic planning in a market-oriented economy ? (A) (B) (C) (D) Indicative planning Development of infrastructure Economic policy by a government Regulations and controls

19.

Which one of the following aspects was NOT emphasised by Hirschman in the theory of unbalanced growth ? (A) (B) (C) (D) Backward and forward linkages Direct productive activities Social overhead capital Equilibrium in different sectors

20.

Which one of the following is NOT an objective of fiscal policy ? (A) (B) (C) (D) Fixing statutory liquidity ratio Influencing consumption-saving ratio Checking inflation and depression Reducing disparities in distribution of income and wealth 10

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21.

Which one of the following is NOT a measure of globalisation ? (A) (B) (C) (D) Reducing peak rate of customs duty Size of inflows of foreign institutional investments in a country Disinvestment of public sector equity Larger foreign aid

22.

Which one of the following pairs is NOT correctly matched ? (A) (B) (C) (D) Indivisibilities in production funtion Critical minimum efforts Circular causation Long-run disequilibria Big push theory R. R. Nelson G. Myrdal Harrod model

23.

Burden of tax on commodity can be shifted totally to consumers if elasticity of demand is : (A) (C) equal to 1 equal to zero (B) (D) less than one but greater than zero greater than 1

24.

Which one of the following is NOT included in a capital budget ? (A) (B) (C) (D) Expenditure on asset formation Interest payments Money collected from public borrowing Small saving collection by the government

25.

The numerical value of balanced budget multiplier is : (A) (C) 1 more than 1 (B) (D) Less than 1 but more than zero zero 12

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26.

With which branch of public finance is Functional Finance related ? (A) (C) Allocation Stabilization (B) (D) Distribution All of the above

27.

If taxes are levied according to ability-to-pay theory it leads to : (A) (B) (C) (D) proportional taxes progressive taxes regressive taxes equal amount of tax on all the persons

28.

The Benefit Theory of allocation of tax burden was given by : (A) Dalton (B) Pigou (C) Seligman (D) Lindhal

29.

Which one of the following is NOT a merit good ? (A) (C) Postal Services Agricultural Products (B) (D) Telecom Services Railways

30.

Consider some of the provisions of the Union Budget 2006-07 : (i) (ii) (iii) (iv) Exemption limit from income tax for senior citizens was raised to Rs.1.50 lakh Rate of service tax was raised to 12 percent Standard deduction in income tax was abolished Rate of CENVAT was raised from 12 percent to 15 percent

Of the above, select correct answer from the code given below : Code : (A) (C) J0107 (ii) and (iii) are correct (ii), (iii) and (iv) are correct (B) (D) 14 (i), (ii) and (iii) are correct (i), (ii) and (iv) are correct

31.

Consider some of the factors taken into account by Planning Commission for estimating the number of persons below poverty line in India : (i) (ii) (iii) (iv) Per capita income Calory intake in rural and urban areas Family expenditure Per capita consumption

Of the above, select correct answer from the code given below : Code : (A) (C) (i), (ii) and (iii) are correct only (i) and (iv) are correct (B) (D) only (ii) and (iii) are correct (i), (iii) and (iv) are correct

32.

In Human Development Index prepared by UNDP, out of 177 countries, Indias rank in recent years has been between : (A) (C) 111 and 115 121 and 125 (B) (D) 116 and 120 126 and 130

33.

Consider some of the facts about National Rural Employment Guarantee Scheme launched in February 2006 in India : (i) (ii) (iii) (iv) It has been launched in 200 districts of the country It replaces National Rural Employment Programme A minimum employment of 100 days has been assured in the scheme The scheme is being implemented by State governments

Of the above, select correct answer from the code given below : Code : (A) (C) (ii), (iii) and (iv) are correct (i), (iii) and (iv) are correct (B) (D) (i), (ii) and (iii) are correct (i), (ii), (iii) and (iv) are correct

34.

The base year for estimating GDP in India at constant prices at present is : (A) 1993-94 (B) 1996-97 16 (C) 1999-2000 (D) 2001-02

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35.

Which one of the following measures is not adopted by Reserve Bank of India for controlling credit ? (A) (C) Capital adequacy ratio Statutory Liquidity ratio (B) (D) Cash reserve ratio Cash deposit ratio

36.

Consider some of the following Acts to regulate industries and foreign exchange in India : (i) (ii) (iii) (iv) Foreign Exchange Management Act Industrial Development and Regulation Act Monopolies and Restrictive Trade Practices Act Foreign Exchange and Regulation Act

Arranging the above Acts in chronological order, the correct sequence is : (A) (C) (iii), (ii), (iv) and (i) (ii), (iv), (iii) and (i) (B) (D) (ii), (iii), (iv) and (i) (i), (iv), (ii) and (iii)

37.

Which one of the following is NOT the assumption of Comparative Cost theory of international trade ? (A) (B) (C) (D) Labour theory of value Perfect competition Linear homogeneous production function Imperfect competition

38.

The balance of payments of a country will be in surplus if : (A) (B) (C) (D) accommodating capital is negative accommodating capital is positive accommodating capital is zero none of the above

39.

Which one of the following countries suffered the least in terms of depreciation of the currency in the East Asian currency crisis ? (A) (C) Thailand Indonesia (B) (D) 18 Singapore Philippines

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40.

Cancun conference of WTO took place in the year : (A) 2003 (B) 2004 (C) 2005 (D) 2006

41.

Which one of the following committees at first examined the capital account convertibility after 1991 ? (A) (C) Mehrotra Committee Tarapore Committee (B) (D) Rangarajan Committee Chelliah Committee

42.

Hedging in the foreign exchange market refers to : (A) (B) (C) (D) an act of devaluation not covering a risk of foreign exchange in future covering a risk of foreign exchange in future none of the above

43.

Single factoral terms of trade is given by : (A)

PX (QX ) PM

(B)

PX (ZX ) PM

(C)

PM ZX PX ZM

(D)

PX ZM PM ZX

where the symbols have the usual meaning.

44.

The mean and variance of a Binomial distribution is equal to : (A) (C)

np , npq

(B) (D)

n 2p ,

n.2p 2 q 2

npq , n 2 p 2

np, npq

45.

If the mean of a given distribution is 6.0 and the standard deviation 0.50, then the co-efficient of variation will be : (A) (C) 4.0 percent 16.0 percent (B) (D) 20 8.3 percent none of the above

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46.

A bag contains 7 red, 12 white and 4 green balls. One ball is drawn from the bag. What is the chance that it is white ? (A) 12/23 (B) 7/23 (C) 4/23 (D) 23/12

47.

Given the two regression lines Y on X and X on Y as follows : 3X+2Y = 26.0 6X+Y = 31.0 then their (r) will be equal to (A) 0.4 (B) 0.5 (C) 0.6 (D) 0.7

48.

In testing a given hypothesis the maximum P with which we would be willing to risk a type I error is known as : (A) (C) Null hypothesis Level of significance (B) (D) Point estimate Interval estimate

49.

Mesokurtotic distribution is also known as : (A) (C) Gamma distribution Beta distribution (B) (D) x2 distribution Normal distribution

50.

If E is the event of getting a total of 12 in throwing a dice twice, the probability of getting a total of less than 12 is : (A) 1/3 (B) 1/6 (C) 35/36 (D) 1/18

-oOo-

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22

Signature and Name of Invigilator 1. (Signature) (Name) 2. (Signature) (Name)

Answer Sheet No. : ...................................................... Roll No.

(In figures as per admission card)

(To be filled by the Candidate)

Roll No.

(In words)

D0 1 0 6
Time : 1 hours] Number of Pages in this Booklet : 24

Test Booklet No.

PAPERII

ECONOMICS
1. 2.

[Maximum Marks : 100

Number of Questions in this Booklet : 50

Instructions for the Candidates

1. 2. 3. Write your roll number in the space provided on the top of this page. This paper consists of fifty multiple-choice type of questions. At the commencement of examination, the question booklet will be given to you. In the first 5 minutes, you are requested to open the booklet and compulsorily examine it as below : (i) To have access to the Question Booklet, tear off the paper seal on the edge of this cover page. Do not accept a booklet without sticker-seal and do not accept an open booklet. Tally the number of pages and number of questions in the booklet with the information printed on the cover page. Faulty booklets due to pages/questions missing or duplicate or not in serial order or any other discrepancy should be got replaced immediately by a correct booklet from the invigilator within the period of 5 minutes. Afterwards, neither the question booklet will be replaced nor any extra time will be given. After this verification is over, the Serial No. of the booklet should be entered in the Answer-sheets and the Serial No. of Answer Sheet should be entered on this Booklet.

U
U DU U S U UU U - 3. U U U, -S U U U -S U (i) -S U U U U SUU-U S SU U (ii) U DU U U U -S DU U U U U U U S DU / U UU U U S SU U UUU S U U -S U U -S U UQ (iii) -S R U- U U UU U- R -S U U 4. U U (A), (B), (C) (D) U UU U U A B C D (C) U 5. U U I U U- U U U U S U U U , U 6. U U 7. (Rough Work) S DU U U 8. U-S U , U U U U 9. U # U U-S U UU U U # U U U 10. / U ZU S U 11. U (UU) U U 12. U U

(ii)

(iii)

4.

Each item has four alternative responses marked (A), (B), (C) and (D). You have to darken the oval as indicated below on the correct response against each item. Example :
A B C D

where (C) is the correct response. 5. Your responses to the items are to be indicated in the Answer Sheet given inside the Paper I booklet only. If you mark at any place other than in the ovals in the Answer Sheet, it will not be evaluated. Read instructions given inside carefully. Rough Work is to be done in the end of this booklet. If you write your name or put any mark on any part of the test booklet, except for the space allotted for the relevant entries, which may disclose your identity, you will render yourself liable to disqualification. You have to return the test question booklet to the invigilators at the end of the examination compulsorily and must not carry it with you outside the Examination Hall.

6. 7. 8.

9.

10. Use only Blue/Black Ball point pen. 11. Use of any calculator or log table etc., is prohibited. 12. There is NO negative marking.

D0106

P.T.O.

ECONOMICS
PAPERII
Note : This paper contains fifty (50) multiple choice questions, each question carrying two (2) marks. Attempt all of them.

1.

If two commodities are good substitutes, indifference curve will : (A) (C) be a straight line approach a straight line (B) (D) approach a right angle slope upwards

2.

The firms in the modern world, use reserve capacity to : (A) (B) (C) (D) ensure greater flexibility in operations reduce costs reduce wages reduce taxes

3.

If the firms are behaving on the basis of average cost principle, orderly coordination is often attained by : (A) (C) Price leadership High cost firm (B) (D) Price cutting None of the above

4.

For any given individual preferences, which are reflexive, transitive and complete, majority rule based social preferences are : (i) Reflexive (ii) Transitive (iii) Complete Select correct code : Code : (A) (B) (C) (D) All above are true Only (i) and (iii) are true Only (i) and (ii) are true Only (ii) and (iii) are true

5.

If demand curve assumes the shape of a rectangular hyperbola, price elasticity is equal to : (A) (C) zero greater than one (B) (D) 2 less than one one

D0106

6.

Let the consumption function be C=Rs. 30+0.80 and investment spending be I=Rs. 702 i, where i is the rate of interest. Then an increase in autonomous investment by Rs. 30 would shift the IS curve : (A) To the left by Rs. 150 (B) To the right by Rs. 150 (C) To the right by Rs. 30 (D) To the left by Rs. 30 According to Milton Friedman, quantity theory of Money deals with : (A) Prices (B) Income (C) Supply of money (D) Demand for money The concept of Multiplier was introduced for the first time by : (A) R.F. Kahn (B) J.M. Keynes (C) R.F. Harrod (D) V.K.R.V. Rao Sustainable development addresses to : (A) the needs of the present generation. (B) the needs of the future generation. (C) the needs of the present generation without compromising the needs of the future generations. (D) the needs of the future generations, without compromising on the needs of the present generation. Sens measure of poverty includes : (A) The Head Count ratio. (B) The Head Count ratio and the poverty-gap ratio. (C) The poverty-gap ratio and the distribution of income among the poor. (D) The Head Count ratio, the poverty-gap ratio, and the distribution of income among the poor. For a planner, in the context of choice of techniques, the propriety of a technique is dictated by : (A) The factor endowments (B) The level of development (C) The character of technical progress (D) The plan objectives Mode of production refers to : (A) Forces of production (B) Methods of production (C) Relations of production (D) The duality of Forces of Production and Relations of Production Unlimited supply of labour presumes : (A) Inelastic supply of labour (B) (C) Redundancy of labour (D) 4

7.

8.

9.

10.

11.

12.

13.

Infinitely elastic supply of labour Disguised unemployment

D0106

14.

Who among the following gave the law of increasing State Activities ? (A) (C) Musgrave Wagner (B) (D) Wiseman Peacock Dalton

15.

Which of the following is not a development expenditure of the State ? (A) (C) Medical and Health Debt Services (B) (D) Education Development of Agriculture

16.

According to Dalton, the total social advantage becomes maximum when taxation and expenditure are carried to a point where, : (A) (B) (C) (D) Marginal Social Sacrifice (MSS) > Marginal Social Benefit (MSB) Marginal Social Sacrifice (MSS) < Marginal Social Benefit (MSB) Marginal Social Sacrifice (MSS)=Marginal Social Benefit (MSB) None of the above

17.

Devaluation, will improve the balance of payment deficit, if sum of elasticity of exports and imports of the devaluing country is : (A) (C) greater than one equal to zero (B) (D) less than one negative

18.

From April 1999, Jawahar Rojgar Yojana has been renamed as : (A) (B) (C) (D) Jawahar Gram Samriddhi Yojana Jawahar Swarna Jayanthi Yojana Jawahar Samriddhi Yojana Jawahar Rural Development Yojana

19.

In the year 2000 - 2001 External Debt GDP ratio in India was : (A) 15.3% (B) 9.1% (C) 7.1% (D) 5.4%

20.

Which of the following is not a measure of dispersion ? (A) (C) Mean of deviations Range (B) (D) Variance Inter-quartile range

21.

GDP deflator is an index of type : (A) (C) Paasche index Fisher index (B) (D) 6 Laspyres index Divisia index

D0106

22.

There are 50 students in a class. Their mean weight, =55 kg and standard deviation, =17 kg. Two students from the class whose weights are 47 kg and 58 kg respectively leave the school and two new students with weights of 50 kg and 55 kg respectively join the class. Then the new mean weight 1 and s.d., 1 (in kgs) are : (A) (C) 1=55, 1=17 1 < 55, 1 > 17 (B) (D) 1=55, 1 < 17 1 > 55, 1=17

Read the passage given below and answer questions 23 - 25 based on your understanding of the passage : Given any segment of the demand curve, any change in price within that segment, will leave the total expenditure of the consumer unchanged, if and only if, the are elasticity is equal to unity. Further, any intermediate change in price will also leave the total expenditure of the consumer unchanged, if point elasticity is at each point of the demand curve is equal to unity.

23.

Which of the following stands for Arc elasticity ? (A)

sum of prices q . p sum of quantities q p1 p 2 . p q 1 +q 2

(B)

p p1 +p 2 . q q 1 +q 2 q p1 +p 2 . p q 1 q 2

(C)

(D)

24.

If elasticity of a non-linear demand curve remains constant throughout, the slope of the curve will : (A) (B) (C) (D) be positive remain unchanged vary from point to point none of the above

25.

If a change in price gives us different values of elasticity for a rise and fall in price, we are then using : (A) (B) (C) (D) Point method Arc method Total outlay method Expenditure method 8

D0106

26.

Starting with the earliest, arrange the following in the chronological order of development of general theory of equilibrium : (i) (ii) (iii) (iv) R. Cantillon F. Quesnay L. Walras W. Leontief

Code : (A) (C) (iv), (i), (ii), (iii) (i), (ii), (iii), (iv) (B) (D) (iii), (iv), (i), (ii) (ii), (iii), (iv), (i)

27.

Starting with the earliest, arrange the following authors in the chronological order of their contribution to welfare economics : (i) (ii) (iii) (iv) J. Bentham Y. Pareto M. Marshall J. Hicks

Code : (A) (C) (iii), (ii), (iv), (i) (iv), (i), (iii), (ii) (B) (D) (i), (iii), (ii), (iv) (ii), (iv), (i), (iii)

28.

Arrange the following in descending order of their share in Global FDI receipts in 2002 : (i) (ii) (iii) (iv) Hong - Kong China India Korea

Code : (A) (C) D0106 (ii), (i), (iii), (iv) (iii), (iv), (ii), (i) (B) (D) 10 (iv), (ii), (i), (iii) (i), (iii), (iv), (ii)

29.

Arrange the following in descending order of their share in world exports in 2004 : (i) (ii) (iii) (iv) China Hong - Kong Indonesia Malaysia

Code : (A) (C) (iii), (iv), (ii), (i) (iv), (i), (iii), (ii) (B) (D) (i), (ii), (iv), (iii) (ii), (iii), (i), (iv)

30.

Starting with the earliest, arrange the following authors chronologically in the context of development of theory of Oligopoly : (i) (ii) (iii) (iv) E. Stackelberg P. Sweezy J. Bertrand A. Cournot

Code : (A) (C) (ii), (i), (iii), (iv) (i), (ii), (iv), (iii) (B) (D) (iv), (iii), (ii), (i) (iii), (iv), (i), (ii)

31.

Arrange the following States in the descending order of state-wise literacy rates in India, 2001 : (i) (ii) (iii) (iv) Kerala Mizoram Lakshadweep Goa

Code : (A) (C) D0106 (iv), (iii), (i), (ii) (ii), (i), (iv), (iii) (B) (D) 12 (i), (ii), (iii), (iv) (iii), (iv), (ii), (i)

32.

In the context of the development of theory of consumer behaviour, arrange the following chronologically, starting with the earliest : (i) (ii) (iii) (iv) Revision of demand theory Revealed preference theory Indifference curves analysis Marshallian theory of consumer behaviour

Code : (A) (C) (iii), (iv), (i), (ii) (ii), (i), (iv), (iii) (B) (D) (i), (ii), (iii), (iv) (iv), (iii), (ii), (i)

33.

Starting with the earliest, arrange the following schemes chronologically : (i) (ii) (iii) (iv) Prime Ministers Rozgar Yojana Rural Employment Generation Programme Sampoorna Grameena Rozgar Yojana National Food for Work Programme

Code : (A) (C) (i), (ii), (iii), (iv) (iii), (iv), (ii), (i) (B) (D) (iv), (ii), (iii), (i) (i), (iii), (ii), (iv)

34.

Match the following : (a) (b) (c) (d) J.R. Hicks Karl Marx Francis Quesmay David Ricardo (i) (ii) (iii) (iv) (v) Code : (a) (A) (B) (C) (D) (i) (ii) (iii) (v) (b) (iv) (iii) (v) (ii) (c) (ii) (iv) (i) (iii) (d) (iii) (i) (ii) (iv) 14 Differential Rent Four measures of consumer surplus Mode of production Tableau Economique Transfer earnings

D0106

35.

Match the following : (a) Adam Smith (b) Heckscher-Ohlin (c) E. Von Stackelberg (d) D. Patinkin Code : (a) (A) (i) (B) (ii) (C) (D) (iv) (iii)

(i) (ii) (iii) (iv) (v)

Real Balance effect Consumers Surplus Division of labour Factor Endowment theory of trade Iso-profit curve

(b) (iii) (iv) (v) (iv)

(c) (iv) (iii) (ii) (v)

(d) (ii) (i) (iii) (i)

36.

Match the following : (a) Selling costs (b) Kinky Demand Curve (c) Substitution effect (d) Perfect Knowledge Code : (a) (A) (v) (B) (ii) (C) (D) (iii) (i)

(i) (ii) (iii) (iv) (v)

J.R. Hicks Perfect competition E. Chamberlin Oligopoly Absolute Advantage

(b) (i) (iii) (iv) (ii)

(c) (iii) (v) (i) (iv)

(d) (iv) (i) (ii) (v)

37.

Match the following : (a) General theory of Employment Interest and Money (b) Surplus value (c) Revealed Preference theory (d) General equilibrium Code : (a) (A) (i) (B) (C) (D) (ii) (iv) (iii)

(i) (ii) (iii) (iv) (v)

P. Samuelson J.M. Keynes Walras Harsen Karl Marx

(b) (ii) (v) (i) (iv)

(c) (iii) (i) (ii) (v)

(d) (iv) (iii) (v) (i) 16

D0106

38.

Match the following : (a) (b) (c) (d) Inverted U-shaped curve Knife edge problem Golden Age Strong ordering (i) (ii) (iii) (iv) (v) Code : (a) (A) (B) (C) (D) (ii) (i) (iv) (iii) (b) (i) (ii) (iii) (iv) (c) (iii) (iv) (i) (ii) (d) (iv) (iii) (v) (i) Joan Robinson R.G.D. Allen Harrod-Domer S. Kuznets P. Samuelson

39.

Match the following : (a) (b) (c) (d) Public goods Innovations Uncertainty theory of profit Input-output Analysis (i) (ii) (iii) (iv) (v) Code : (a) (A) (B) (C) (D) (ii) (v) (i) (iii) (b) (iii) (i) (ii) (iv) (c) (i) (iv) (iii) (v) (d) (iv) (ii) (v) (i) J.A. Schumpeter W. Leontieff W.W. Rostow F. Knight Musgrave

40.

Match the following : (a) (b) (c) (d) Romer, Paul M. Lucas, Robert E. Jr. Arrow, Kenneth J. Solow, Robert M. (i) (ii) (iii) (iv) (v) Code : (a) (A) (B) (C) (D) (ii) (iii) (iv) (i) (b) (iii) (iv) (ii) (v) (c) (i) (ii) (iii) (iv) (d) (v) (i) (v) (ii) 18 Leaving by doing Research and Development Human Capital Innovations Exogenous technical progress

D0106

41.

Match the following : (a) (b) (c) (d) Foreign Trade Policy Industrial Policy Agricultural Policy Fiscal Policy (i) (ii) (iii) (iv) (v) Code : (a) (A) (B) (C) (D) (ii) (v) (i) (iii) (b) (i) (iv) (ii) (iv) (c) (iii) (i) (v) (ii) (d) (iv) (ii) (iii) (i) Minimum Support Prices Balanced Budget Marginal Utility FEMA Exim Policy

42.

Match the following : (a) (b) (c) (d) Cournot Model of Duopoly Pareto-Optimality New Welfare School Bains Model (i) (ii) (iii) (iv) (v) Code : (a) (A) (B) (C) (D) (i) (iv) (iii) (ii) (b) (v) (iii) (i) (v) (c) (iv) (i) (v) (iii) (d) (iii) (ii) (iv) (i) Hypothetical Compensation Limit Pricing Limited application Sub-optimal solution Unlimited application

Note :

The remaining questions in this paper are of Assertion and Reasoning Type. The correct code is to be selected from the four options given below for each of these questions :

Code : (A) (B) (C) (D) 43. Both (A) and (R) are true and (R) is the correct explanation of (A). Both (A) and (R) are true but (R) is not correct explanation of (A). (A) is true but (R) is false. (A) is false but (R) is true.

Assertion (A) : Price elasticity on a downward sloping demand curve varies from point to point. Reasoning (R) : The elasticity does not depend upon the slope of demand curve.

D0106

20

44.

Assertion (A) : Stratified random sampling is often used for socio-economic surveys. Reasoning (R) : Social stratification is a social reality.

45.

Assertion (A) : In an open economy with a fixed exchange rate system and constant internal prices and interest rates, we have : (i) (ii) S=Id=Rs. 100 and X=M=Rs. 300 at YE=Rs. 1000, Id and X are autonomous and MPS=MPM=0.25.

If X increases by Rs. 100 permanently, then income would increase by Rs. 200. Reasoning (R) : Multiplier is
1 1 = . 2 MPS 2 MPM

46.

Assertion (A) : As per the recent Indian experience, a fall in the rate of employment generation is associated with a fall in the rate of economic growth. Reasoning (R) : Working of the Okuns Law.

47.

Assertion (A) : When the IS curve is not vertical, monetary policy cannot change the level of aggregate demand. Reasoning (R) : Monetary policy depends on the existence of some interest-sensitive spending for its success.

48.

Assertion (A) : According to Kaldor, steady state equilibrium would always exist. Reasoning (R) : Wage-price flexibility would ensure that savings passively respond to pre-determined investment via change in distribution.

49.

Assertion (A) : In a linear programming problem, one or the other corner-point would always be associated with the optimal solution. Reasoning (R) : Optimal solution cannot be an interior solution.

50.

Assertion (A) : Cobb-Douglas production function Yt =A t K t L t Hicks and Harrod neutrality. Reasoning (R) : It is homogenous of degree one. -oOo-

admits of both

D0106

22

Signature and Name of Invigilator 1. (Signature) (Name) 2. (Signature) (Name)

Answer Sheet No. : ......................................................

(To be filled by the Candidate)

Roll No.
(In figures as per admission card)

Roll No.

(In words)

J0 1 0 6
Time : 1 hours] Number of Pages in this Booklet : 16

Test Booklet No.

ECONOMICS

PAPERII

[Maximum Marks : 100

Number of Questions in this Booklet : 50

Instructions for the Candidates

1. 2. 3. Write your roll number in the space provided on the top of this page. This paper consists of fifty multiple-choice type of questions. At the commencement of examination, the question booklet will be given to you. In the first 5 minutes, you are requested to open the booklet and compulsorily examine it as below : (i) To have access to the Question Booklet, tear off the paper seal on the edge of this cover page. Do not accept a booklet without sticker-seal and do not accept an open booklet. Tally the number of pages and number of questions in the booklet with the information printed on the cover page. Faulty booklets due to pages/questions missing or duplicate or not in serial order or any other discrepancy should be got replaced immediately by a correct booklet from the invigilator within the period of 5 minutes. Afterwards, neither the question booklet will be replaced nor any extra time will be given. After this verification is over, the Serial No. of the booklet should be entered in the Answer-sheets and the Serial No. of Answer Sheet should be entered on this Booklet.

U
1. U DU U S U UU U 2. - 3. U U U, -S U U U

-S U
(i)

-S U U U U SUU-U S SU U

(ii)

(ii)

U DU U U U -S DU U U U U U U S DU / U UU U U S SU U UUU S U U -S U U -S U UQ
U UU U- R -S U U

(iii)

(iii) -S R U- U

4.

Each item has four alternative responses marked (A), (B), (C) and (D). You have to darken the oval as indicated below on the correct response against each item. Example :
A B C D

4. U U (A), (B), (C) (D)

U UU U

where (C) is the correct response. 5. Your responses to the items are to be indicated in the Answer Sheet given inside the Paper I booklet only. If you mark at any place other than in the ovals in the Answer Sheet, it will not be evaluated. Read instructions given inside carefully. Rough Work is to be done in the end of this booklet. If you write your name or put any mark on any part of the test booklet, except for the space allotted for the relevant entries, which may disclose your identity, you will render yourself liable to disqualification. You have to return the test question booklet to the invigilators at the end of the examination compulsorily and must not carry it with you outside the Examination Hall.

(C) U
5. U U I U U- U

U U U S U U U , U

6. 7. 8.

6. U U 7. (Rough Work) S DU U U 8. U-S U

, U U U U
9. U # U U-S U UU

9.

U U # U U U

10. Use only Blue/Black Ball point pen. 11. Use of any calculator or log table etc., is prohibited. 12. There is NO negative marking.

/ U ZU S U U (UU) U U 12. U U
10. 11.

J0106

P.T.O.

ECONOMICS
PAPERII
Note : This paper contains fifty (50) multiple choice questions, each question carrying two (2) marks. Attempt all of them.

1.

In case of public goods market demand is derived by vertical summation because public goods are : (A) Free goods (B) Unlimited in supply (C) Non-rival in consumption (D) Owned by public sector Match the following : List I (a) Four consumer surpluses (b) Differential rent (c) Entry preventing price (d) Strong ordering Code (a) (i) (ii) (iii) (iv) : (b) (ii) (i) (iv) (iii)

2.

(i) (ii) (iii) (iv) (v)

List II David Ricardo J.R. Hicks P.A. Samuelson J.S. Bain R.Malthus

(A) (B) (C) (D) 3.

(c) (iii) (iv) (i) (ii)

(d) (iv) (iii) (ii) (v)

Marshallian demand curve can be derived with the use of revealed preference theory if one of the following is ignored : (A) Price effect (B) Income effect (C) Substitution effect (D) Demand effect If the two goods are bad substitutes, indifference curve will : (A) be a straight line (B) approach a straight line (C) approach a right angle (D) slope upwards A given total outlay on factor inputs available at given prices is reflected by : (A) iso-revenue line (B) iso-cost line (C) iso-quant (D) production possibility curve In Stackelbergs model of duopoly, if both sellers act as followers, we then have : (A) Cournot solution (B) A price war between sellers (C) A situation of disequilibrium (D) Collusion between sellers 2

4.

5.

6.

J0106

7.

The merit of revealed preference theory over earlier theories is that it explain consumer behaviour without reference to : (A) (C) Utility Consumers preferences (B) (D) Consumers income Rationality assumption

8.

Utility function for a consumer is monotonically increasing in the quantities consumed of a single available commodity. Such a utility function is always : (A) (C) a concave function a strictly concave function (B) (D) a strictly quasi-concave function a linear function

9.

Re-statement of quantity theory of money is a : (A) (C) theory of interest rate theory of demand for money (B) (D) theory of income determination theory of consumption demand

10.

Which among the following does not constitute a source of growth in potential output? (A) (C) Capital expansion Improvements in technology (B) (D) Labour expansion Improvements in the monetary system

11.

It follows from the assumption of rational expectation hypothesis that : (A) (B) (C) (D) most unemployment is voluntary monetary policy can work in the short-run fiscal policy can work in the short-run all policies that are predictable are ineffective

12.

A person who is no longer looking for a job is considered : (A) (C) structurally unemployed under - employed (B) (D) frictionally unemployed none of the above

13.

Commercial banks are the largest category of financial intermediaries; others include : (A) (C) life-insurance companies savings and loan institutions (B) (D) pension funds all of the above

14.

An increase in reserve requirements : (A) (B) (C) (D) raises the cost of financial intermediation raises the profit from financial intermediation raises the volume of financial intermediation all of the above 4

J0106

15.

If there are no demand or supply shocks : (A) actual inflation will decline to near zero (B) actual inflation will decline below the expected rate (C) actual inflation will rise above expected rate (D) actual inflation will be equal to the expected rate Grass root planning refers to : (A) Panchayat Raj (B) Land Revenue System (C) Community Development Programme (D) Prominence to Sectoral Priorities According to Solow, the long-run rate of growth in an advanced economy equals Harrods. (A) Natural Rate of Growth (B) Warranted Rate of Growth (C) Actual Rate of growth (D) Warranted Rate of Technical Progress The (A) (B) (C) (D) most important feature of tied-aid is that : it can be used only in the private sector it is to be shared equally between the public and private sectors it can be used only in the public sector it can be used only for the purpose for which it has been extended and to be used in procuring resources from the specified sources

16.

17.

18.

19.

Balanced growth means : (A) equal increase in resources allocated in all sectors of the economy (B) equal percentage growth in output in all sectors of economy (C) balanced development of different sectors of economy (D) equal development of different sectors of economy Capital per person decreases if investment per person : (A) is less than the population growth rate (B) exceeds the population growth rate (C) exceeds savings per person (D) is less than savings per person In the neo-classical growth model, an increase in the marginal propensity to save : (A) increases steady-state output per person (B) increases the steady-state growth rate of output (C) increases steady-state capital per person (D) both (A) and (C) 6

20.

21.

J0106

22.

The (A) (B) (C) (D)

per-worker production function assumes : constant returns to scale and increasing marginal returns constant returns to scale and diminishing marginal returns increasing returns to scale and diminishing marginal returns decreasing returns to scale and diminishing marginal returns

23.

Which of the following tax systems promotes more equitable distribution of income : (A) progressive (B) regressive (C) proportional (D) indirect Laffer curve studies the relationship between : (A) tax rate and tax revenue (B) tax rate and expenditure (C) tax rate and consumption (D) tax rate and welfare Tax on in herited property is an example of : (A) Sales tax (B) Income tax (C) Wealth tax

24.

25.

(D)

VAT

26.

The percentage of total income which the government takes away in the form of income tax is known as : (A) total tax (B) average tax rate (C) marginal tax (D) marginal tax rate In the face of a stagnant economy, a government should : (A) spend more, tax less and/ or pursue an contractionary monetary policy (B) spend less, tax less and/ or pursue an expansionary monetary policy (C) spend more, tax less and/ or pursue an expansionary monetary policy (D) tax more, spend less and/ or pursue an expansionary monetary policy The chairman of the 12th Finance Commission is : (A) V.R. Panchamukhi (B) C. Ranga Rajan (C) Bimal Jalan (D) A.M. Khusro The expansion of the government debt could result in : (A) a decline in savings (B) an increase in interest rates (C) a decline in investment (D) all of the above The economist who said that international trade was based on the principle of absolute advantage is : (A) J.S. Mill (B) Adam Smith (C) Bertil Ohlin (D) David Ricardo 8

27.

28.

29.

30.

J0106

31.

Protectionist tariffs and quotas often : (A) to little to stem the tide of cheap foreign imports (B) reduce the real incomes of the protected workers and consumers (C) lead to complete economic isolation of a nation (D) result in increased world-wide production efficiency The simple theory of two good, two country comparative adventages in itself will not enable us to determine. (A) The upper and lower limits of the price ratio at which the goods exchange after trade (B) The exact price ratio at which the goods must exchange after trade (C) The pattern of geographical specialisation (D) Which country exports which good If one of two countries has an absolute advantage in the production of every commodity, then : (A) there is no comparative advantag and therefore no trade (B) trade would benefit efficient country but not the inefficient one (C) trade would benefit inefficient country, but not the efficient one (D) none of the above Under the banner of comparative advantages the free trade of specialised goods between two countries will result in : (A) A reduction in over-all economic efficiency (B) A reduction in the real wage level in one of the two countries (C) An increase in the real wage levels in both countries (D) An increase in the real wage level in only one of the two countries Bretton woods system : (A) Established fixed par values for countries (B) Was to be a system of adjustable pegs (C) Expected countries with persistent surplus to devalue their currencies (D) Was created to slow down inflation after world war II The (A) (B) (C) (D) five year plans in India are finalised after the approval of : The President and the Prime Minister The Rajya Sabha National Development Council The Lok Sabha

32.

33.

34.

35.

36.

37.

According to the latest data available the service sector in India contributes about : (A) 30 percent of GDP (B) 40 percent of GDP (C) 50 percent of GDP (D) 60 percent of GDP 10

J0106

38.

In India national income is estimated by : (A) (C) Finance Commission Planning Commission (B) (D) Central Statistical Organisation Finance Ministry

39.

Which of the following taxes was introduced in India under the long term fiscal policy (A) MODVAT (B) VAT (C) Profit Tax (D) Succession Tax

40.

Debt relief to farmers is a part of : (A) (C) Plan expenditure Development Expenditure (B) (D) Non-plan expenditure Defence expenditure

41.

Poverty line for rural areas in India is determined on the basis of minimum average daily consumption of calories which is : (A) 2000 (B) 2700 (C) 2500 (D) 2400

42.

Indian Planning Commission is a : (A) (C) A parliamentary body Non-statutory body (B) (D) Ad hoc body constitutional body

43.

Which state in India has the highest HDI? (A) (C) Andhra Pradesh Kerala (B) (D) Delhi Uttar Pradesh

44.

B xy and B yx are slopes in regressions of x on y and of y on x respectively. Then, the correlation coefficient, r between x and y is.

(A) (B) (C) (D) 45.

equal to

B xy . B yx

equal to (B xy + B yx )/2 equal to B xy /B yx

not related to regression of x on y or regression of y on x

A one rupee coin and a five rupee coin are tossed simultaneously. If one of the coins has turned up heads, then the probability that both coins turn up heads is : (A)
1 2

(B)

1 3

(C) 12

1 4

(D)

2 3

J0106

46.

Let x1, x2, ........., xn be a randomly selected sample from a population and let (xmin 1xmax)/2 and x be two estimators (called 1 and 2 respectively) for population mean. Then, (A) (B) (C) (D)
1 is biased but 2 is unbiased 1 is unbiased but 2 is biased both 1 and 2 are unbiased but only 1 is BLUE both 1 and 2 are unbiased but only 2 is BLUE

47.

Which among the following is a sampling distribution ? (A) Poisson (B) Binomial (C) Standard normal

(D)

Uniform

48.

Select the correct code : Assertion (A) : In moving average method, the number of periods included must be as large as possible. Reasoning (R) : Including more periods in moving average achieves greater smoothing of data. (A) (B) (C) (D) Both (A) and (R) are true and (R) is the correct explanation of (A) Both (A) and (R) are true, but (R) is not the correct explanation of (A) (A) is true, but (R) is false (A) is false, but (R) is true

49.

Fishers formula for constructing index numbers is termed as ideal because : (A) it takes into account both the current as well as the base year prices and quantities (B) it satisfies both the time reversal and factor reversal tests (C) it is based on geometric mean, which is suitable for studing the rates of variation between two periods (D) all of the above The statement that (a,b) is a 99% confidence interval for population mean, m implies, that : (a) 99% of population lies between a and b (b) there is 99% chance that m lies between a and b (c) 99% of intervals such as (a,b) contain m. Select the correct code : (A) (a), (b) and (c) are true (B) only (c) is true (C) only (b) is true (D) both (a) and (b) are true -oOo-

50.

J0106

14

Signature and Name of Invigilator 1. (Signature) (Name) 2. (Signature) (Name)

Answer Sheet No. : ................................................ Roll No.

(To be filled by the Candidate)

(In figures as per admission card)

Roll No.

(In words)

D0 1 0 5
Time : 1 hours] Number of Pages in this Booklet : 16

Test Booklet No.

ECONOMICS

PAPERII

[Maximum Marks : 100

Number of Questions in this Booklet : 50

Instructions for the Candidates

1. 2. 3. Write your roll number in the space provided on the top of this page. This paper consists of fifty multiple-choice type of questions. At the commencement of examination, the question booklet will be given to you. In the first 5 minutes, you are requested to open the booklet and compulsorily examine it as below : (i) To have access to the Question Booklet, tear off the paper seal on the edge of this cover page. Do not accept a booklet without sticker-seal and do not accept an open booklet. Tally the number of pages and number of questions in the booklet with the information printed on the cover page. Faulty booklets due to pages/questions missing or duplicate or not in serial order or any other discrepancy should be got replaced immediately by a correct booklet from the invigilator within the period of 5 minutes. Afterwards, neither the question booklet will be replaced nor any extra time will be given. After this verification is over, the Serial No. of the booklet should be entered in the Answer-sheets and the Serial No. of Answer Sheet should be entered on this Booklet.

U
1. U DU U S U UU U 2. - 3. U U U, -S U U U

-S U
(i)

-S U U U U SUU-U S SU U

(ii)

(ii)

U DU U U U -S DU U U U U U U S DU / U UU U U S SU U UUU S U U -S U U -S U UQ
U UU U- R -S U U

(iii)

(iii) -S R U- U

4.

Each item has four alternative responses marked (A), (B), (C) and (D). You have to darken the oval as indicated below on the correct response against each item. Example :
A B C D

4. U U (A), (B), (C) (D)

U UU U

where (C) is the correct response. 5. Your responses to the items are to be indicated in the Answer Sheet given inside the Paper I booklet only. If you mark at any place other than in the ovals in the Answer Sheet, it will not be evaluated. Read instructions given inside carefully. Rough Work is to be done in the end of this booklet. If you write your name or put any mark on any part of the test booklet, except for the space allotted for the relevant entries, which may disclose your identity, you will render yourself liable to disqualification. You have to return the test question booklet to the invigilators at the end of the examination compulsorily and must not carry it with you outside the Examination Hall.

(C) U
5. U U I U U- U

U U U S U U U , U

6. 7. 8.

6. U U 7. (Rough Work) S DU U U 8. U-S U

, U U U U
9. U # U U-S U UU

9.

U U # U U U

10. Use only Blue/Black Ball point pen. 11. Use of any calculator or log table etc., is prohibited. 12. There is NO negative marking.

/ U ZU S U U (UU) U U 12. U U
10. 11.

D0105

P.T.O.

ECONOMICS
PAPERII
Note : This paper contains fifty (50) multiple-choice questions, each question carrying two (2) marks. Attempt all of them.

1.

Match the following : List I (a) Revealed Preference Theory (b) Surplus Value (c) Kinked Demand Curve (d) Point of Constrained Bliss Code (a) (i) (iv) (v) (iii) : (b) (iv) (i) (ii) (i)

(i) (ii) (iii) (iv) (v)

List II Karl Marx Paul Sweezy P.A. Samuelson Adam Smith A. Bergson

(A) (B) (C) (D) 2.

(c) (iii) (ii) (iv) (ii)

(d) (ii) (iii) (i) (v)

The goods which are non-rival in consumption are called : (A) Private goods (B) Free goods (C) Public goods (D) Non-economic goods A competitive firm achieves long-run equilibrium in the product market when : (A) AR 5 MR (B) MR 5 AC (C) MR 5 MC (D) Price 5 AR In the Sweezy model of Oligopoly, an increase in demand will make upper portion of the demand curve : (A) More elastic (B) Less elastic (C) Unitary elastic (D) None of the above The statement that the compensation principle of welfare economics is capable of giving contradictory results is associated with the name of : (A) T. Scitovsky (B) A. Pareto (C) A. Bergson (D) P.A. Samuelson Which of the following factors does not stall the entry of other firms in an Oligopolistic industry : (A) huge advertising expenditure incurred by existing firms (B) economies of scale (C) technology (D) increase in demand 2

3.

4.

5.

6.

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7.

A rational consumer choosing between uncertain events will make a choice on the basis of : (A) expected monetary benefits (B) expected utility (C) expected prices (D) expected incomes in future Which of the following is not an element of selling cost : (A) salary of the salesmen (B) expenses incurred in advertising (C) transportation cost (D) costs incurred on window displays The most comprehensive measure of the aggregate price level is the : (A) consumer price index (B) producer price index (C) GNP deflator (D) wholesale price index Keynesian economics lays more emphasis on : (A) monetary policy (B) fiscal policy (C) interest-rate determination (D) free market mechanism High-powered money is produced by : (A) Commercial banks (B) (C) Ministry of Finance (D)

8.

9.

10.

11.

Co-operative banks Reserve Bank of India

12.

A person who left the job to find another job would be classified as : (A) fractionally unemployed (B) structurally unemployed (C) cyclically unemployed (D) no longer in the labour force Which of the following statements would Milton Friedman disagree with ? (A) Monetary policy has few short-run effects on the real economy (B) In the long-run, changes in the money supply primarily affect the price level (C) There is little scope for using monetary policy actively to smooth out business cycles (D) The Reserve Bank can not be relied on to effectively smooth out business cycles The money multiplier is the multiplicative inverse of the required reserve ratio as long as : (A) currency leakages into circulation and/or foreign markets do not occur (B) banks do not maintain excess reserves (C) the required reserve ratio is far in excess of the reserves that banks think are prudent given the deposits that they hold (D) all the above 4

13.

14.

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15.

The (A) (B) (C) (D)

trade-off between inflation and unemployment remains stable only : during periods of stagflation when the inertial rate of inflation remain unchanged during the periods of slack demand in the long-run

16.

Vicious Circle of Poverty was proposed by : (A) A. Marshall (B) J.M. Keynes (C) Ragner Nurkse (D) M. Friedman Second Five Year plan was based on a model developed by : (A) C.H. Hanumantha Rao (B) P.C. Mahalanobis (C) A.K. Sen (D) K.N. Raj The theory of unlimited supply of labour was proposed by : (A) J.M. Keynes (B) Robert Solo (C) A. Lewis (D) Roy Harrod In Harrod-Domar model, if the growth rate of income is 5% and capital-output ratio is 3, then saving rate must be : (A) 5% (B) 3% (C) 8% (D) 15% Capital per person decreases if net investment per person : (A) is less than the population growth rate (B) exceeds the population growth rate (C) exceeds savings per person (D) is less than savings per person In the neo-classical growth model, an increase in the marginal propensity to save : (A) increases steady-state output per person (B) increases the steady-state growth rate of output (C) increases steady-state capital per person (D) both (A) and (C) The Tenth Five Year Plan aims at reducing poverty by : (A) 2% (B) 5% (C) 8% Union Excise Duties are a part of Central Governments : (A) Non-tax Revenue (B) Tax revenue (C) Capital receipts (D) None of the above 6

17.

18.

19.

20.

21.

22.

(D)

9%

23.

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24.

Pump priming should be resorted to at a time of : (A) (C) Inflation Reflation (B) (D) Deflation None of the above

25.

VAT is imposed : (A) (B) (C) (D) on final stage of production on first stage of production directly on consumers at every stage between production and consumption

26.

A temporary increase in marginal tax rate will : (A) (C) increase employment raise the deficit (B) (D) increase output lower output

27.

Tax on inherited property is an example of : (A) Sales Tax (B) Income Tax (C) Wealth Tax (D) VAT

28.

When government expenditure exceeds total government receipts, the budget deficit is : (A) positive (B) negative (C) zero (D) indeterminate

29.

The Laffer curve demonstrates the relationship between : (A) (B) (C) (D) inflation and the nominal interest rate tax rate and total tax revenues the real interest rate and investment demand none of the above

30.

If the Rupees per US Dollar exchange rate changes from Rs. 44 to Rs. 46 in a year by the market forces, it implies : (A) (B) (C) (D) Appreciation of the Rupee Depreciation of the Rupee Devaluation of the Rupee Exchange rate remains more or less the same 8

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31.

Match the following : List I (a) Infant Industry Argument (b) Factor price equalization theorem (c) Opportunity Cost Theory (d) Asolute cost advantage Code (a) (i) (ii) (iii) (iv) : (b) (v) (i) (iv) (ii)

(i) (ii) (iii) (iv) (v)

List II Adam Smith G. Von Haberler Fredriek List Heckscher Ohlin D. Ricardo

(A) (B) (C) (D) 32.

(c) (iii) (v) (ii) (i)

(d) (ii) (iv) (i) (iii)

Devaluation, other things remaining the same, will make the balance of payments of a country worse if the elasticity of exports and elasticity of imports of a developing country will be : (A) greater than 1 (B) less than 1 (C) equal to 1 (D) none of the above The secular deterioration of terms of trade hypothesis initially was advanced by : (A) Raul Previsch (B) J.M. Keynes (C) Adam Smith (D) J.S. Mill The Bretton-woods system finally collapsed at the global level in the year : (A) 1970 (B) 1971 (C) 1972 (D) 1973 Heckscher Ohlin theory of international trade explains the emergence of trade, among the partners based on : (A) Intra-regional trade (B) Imperfect competition (C) Inter-regional trade (D) Changes in tastes and technology According to Planning Commission estimates of poverty ratio in India in (1999-2000) was : (A) 30 percent (B) 40 percent (C) 26.9 percent (D) 28.9 percent New Agricultural Strategy (Green Revolution) was introduced in India in the year : (A) 1969 (B) 1966 (C) 1970 (D) 1960 Which among the following heads has the highest allocation in the Xth plan outlay ? (A) Energy (B) Transport (C) Rural Development (D) Social Services 10

33.

34.

35.

36.

37.

38.

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39.

New Economic Policy in India was introduced in : (A) 1981 (B) 1971 (C) 1991 (D) 2001

40.

Gross Capital Formation percentage of Gross Domestic Products as per Economic Survey in 1995-98 was : (A) (C) 21 percent 24 percent (B) (D) 30 percent 28.7 percent

41.

The target of Disinvestment in Public Sector undertakings in India during the 20022003 was : (A) (C) Rs. 16,000 Crores Rs. 12,000 Crores (B) (D) Rs. 20,000 Crores Rs. 15,000 Crores

42.

Domestic Savings Rate during the IX plan period was : (A) 23.31% (B) 30.31% (C) 25.31% (D) 26.41%

43.

Money supply in terms of broad money (M3) in India increased during 2001-02 by : (A) 6.8% (B) 5.6% (C) 14.2% (D) 19.3% Based on a sample of 100 observations, the correlation coefficient between x and y is found to be nearly zero. Then, (A) (B) (C) (D) x and y are definitely unrelated x and y are linearly related to each other x and y may be non-linearly related to each other there is spurious correlation between x and y

44.

45.

Under simple random sampling, as the size of sample is increased : (A) (B) (C) (D) systematic errors increase but sampling errors decrease systematic errors decrease but sampling errors increase both systematic and sampling errors decrease both systematic and sampling errors increase

46.

Implicit GDP deflator is a : (A) (B) (C) (D) current year weighted index base year weighted index arithmetic mean of (A) and (B) geometric mean of (A) and (B) 12

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47.

Events A and B are mutually exclusive consider the following : (a) P(A B) 5 P(A) 1 P(B) (b) P(A B) 5 P(A) 3 P(B) (c) P(A B) 5 0 (d) (A) (B) (C) (D) A and B are independent events. Choose the correct code : only (a) and (b) are true only (b) and (c) are true only (c) and (d) are true only (a) and (c) are true

48.

Random variable is : (A) an independent variable (B) an endogenous variable (C) a randomly choosen value (D) a function of states of nature Consider the following distributions : (a) z-distribution (b) t-distribution (c) binomial distribution (d) F-distribution Which among the above are not sampling distribution ? (A) only (a) (B) only (c) (C) both (a) and (c) (D) both (a) and (d) Match the following : List I To test for these (a) population mean with known variance (b) population mean with unknown variance (c) comparison of variances (d) goodness of a fit Code : (a) (b) (c) (d) (A) (i) (ii) (iii) (iv) (B) (ii) (i) (iv) (iii) (C) (iv) (i) (ii) (iii) (D) (iii) (i) (ii) (iv)

49.

50.

(i) (ii) (iii) (iv)

List II We use the following : t-distribution F-distribution X2 distribution z-distribution

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-o0o14

Signature and Name of Invigilator 1. (Signature) (Name) 2. (Signature) (Name)

Answer Sheet No. : ......................................................

(To be filled by the Candidate)

Roll No.
(In figures as per admission card)

Roll No.

(In words)

J0 1 0 5
Time : 1 hours] Number of Pages in this Booklet : 16 Instructions for the Candidates
1. 2. 3.

Test Booklet No.

ECONOMICS

PAPERII

[Maximum Marks : 100

Number of Questions in this Booklet : 50

U
1. U DU U S U UU U 2. - 3. U U U, -S U U U

4.

Write your roll number in the space provided on the top of this page. This paper consists of fifty multiple-choice type of questions. At the commencement of examination, the question booklet will be given to you. In the first 5 minutes, you are requested to open the booklet and compulsorily examine it as below : (i) To have access to the Question Booklet, tear off the paper seal on the edge of this cover page. Do not accept a booklet without sticker-seal and do not accept an open booklet. (ii) Tally the number of pages and number of questions in the booklet with the information printed on the cover page. Faulty booklets due to pages/questions missing or duplicate or not in serial order or any other discrepancy should be got replaced immediately by a correct booklet from the invigilator within the period of 5 minutes. Afterwards, neither the question booklet will be replaced nor any extra time will be given. (iii) After this verification is over, the Serial No. of the booklet should be entered in the Answer-sheets and the Serial No. of Answer Sheet should be entered on this Booklet. Each item has four alternative responses marked (A), (B), (C) and (D). You have to darken the oval as indicated below on the correct response against each item. Example :
A B C D

-S U
(i)

-S U U U U SUU-U S SU U

(ii)

U DU U U U -S DU U U U U U U S DU / U UU U U S SU U UUU S U U -S U U -S U UQ
U UU U- R -S U U

(iii) -S R U- U

4. U U (A), (B), (C) (D)

U UU U

(C) U
5. U U I U U- U

where (C) is the correct response. Your responses to the items are to be indicated in the Answer Sheet given inside the Paper I booklet only. If you mark at any place other than in the ovals in the Answer Sheet, it will not be evaluated. 6. Read instructions given inside carefully. 7. Rough Work is to be done in the end of this booklet. 8. If you write your name or put any mark on any part of the Answer Sheet, except for the space allotted for the relevant entries, which may disclose your identity, you will render yourself liable to disqualification. 9. You have to return the test question booklet to the invigilators at the end of the examination compulsorily and must not carry it with you outside the Examination Hall. 10. Use only Blue/Black Ball point pen. 11. Use of any calculator or log table etc., is prohibited. 12. There is NO negative marking. 5.

U U U S U U U , U

6. U U 7. (Rough Work) S DU U U 8. U-S U

, U U U U
9. U # U U-S U UU

U U # U U U

/ U ZU S U U (UU) U U 12. U U
10. 11.

J0105

P.T.O.

ECONOMICS PAPERII
Note :
1.

This paper contains fifty (50) objective type questions, each question carrying two (2) marks. Attempt all of them.

If, in a set of items, each item has a definite place of its own, then we are using : (A) Weak ordering (B) Strong ordering (C) Both (A) and (B) (D) None of the above Barometric price leadership implies leadership of : (A) Low cost firm (B) High cost firm (C) Most experienced firm (D) Least experienced firm In Sylos model of limit pricing, demand is : (A) Unitary elastic (C) Perfectly elastic (B) (D) Perfectly inelastic Unstable

2.

3.

4. 5.

The Ridge line is the locus of points where marginal productivity of relevant factor is : (A) Equal to one (B) Equal to zero (C) Greater than one (D) Less than one Psychological Law of consumption is associated with the name of : (A) J.M. Keynes (B) Milton Friedman (C) J.R. Duessen berry (D) F.Modigliani According to Keynes, level of employment depends on : (A) Aggregate demand (B) Aggregate supply (C) Demand and supply equilibrium (D) Effective demand If the money supply equals M and the demand for money is given by ky2hi, then the equation of the LM in terms of the rate of interest (i) would be : (A)

6.

7.

k M i 5 y2 h h

(B)

k M i 5 y1 h h

(C)

i 5ky 1 M

(D)

i 5ky 2 M

8.

Interaction between Multiplier and Accelerator leads to generation of continuous cyclical fluctuation, is stated by : (A) Harrod - Domer (B) Kaldor - Mirrlis (C) Samuelson - Hicks (D) Joan Robinsion - Saraffa Currently, the HDI is being measured in the : (A) Freedom perspective (B) (C) Attainment perspective (D) Idealistic perspective Deprivational perspective Co - generic (D) Co - terminus

9.

10. 11.

For radicals, development and underdevelopment are : (A) Sequential (B) Co - existent (C) IRR is that rate of discount which makes : (A) PVC5PVB (B) PVC > PVB (C)

PVC < PVB

(D) PVB PVC > 1

12.

Which of the following is inconsistent with steady state growth ? (A) Harrod neutrality (B) Hicks neutrality (C) Harrod non-neutrality (D) Hicks non-neutrality Proper knife-edge problem refers to : gn gw (A) (C) Instability of gn and gw (B) (D) Independence of gw and gn Inherent instability of gw itself

13.

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14. 15.

Under whose chairmanship was the first Finance Commission of India appointed ? (A) K.C. Niyogi (B) K. Santhanam (C) A.K. Chanda (D) C. Rangarajan Which one of the following is not source of income in central finance sanctioned by the Constitution of India ? (A) Corporation tax (B) Custom duty (C) Income tax (D) Land Revenue Which of the following canon is associated with Adam Smith ? (A) Canon of elasticity (B) Canon of productivity (C) Canon of certainty (D) Canon of expediency Automatic adjustment in the balance of payments, under the gold standard, is brought about through changes in : (A) general level of prices (B) rates of exchange (C) general level of prices and rates of exchange (D) income The main thrust of New Industrial Policy is to invite greater participation of : (A) Public sector (B) Stock holders (C) Private sector (D) Banks

16.

17.

18. 19. 20.

Which of the following States was largest producer of wheat in India during the year 2003-04 ? (A) Punjab (B) Haryana (C) Uttar Pradesh (D) Madhya Pradesh If correlation co-efficient between two variables is equal to 21, then these variables are : (A) Uncorrelated (B) Moderately correlated (C) Highly correlated (D) Perfect correlated Which of the following is a type of probability sampling ? (A) Convenience sampling (B) Purposive sampling (C) Systematic sampling (D) Quota sampling Read the passage given below and answer questions 22 to 26 based on your understanding of the passage : Real GDP in the United States of America grew at an average of 3% per year over the past 40 years. What explains this growth ? A technique called growth accounting that divides the growth in output into three different sources; increase in capital, increase in labour and advances in technology has been developed. For that, let us write the production function as : Y5A.F (K, L), where A is a measure of the current level of technology, called total factor productivity, output now increases not only because of increases in capital and labour but also because of increase in total factor productivity. Our equation accounting for economic growth becomes :

21.

productivity. where ; is capitals share and (12;) is labours share in output. Because total factor productivity is not observable directly, it is measured indirectly. We can compute the growth in total factor productivity to make sure that everything adds up.

DY DK DL DA 5 ;. 1 (1 2 ) ; 1 A L K Y Rate of Growth in output5Contribution of capital1Contribution of labour1Growth in Total factor

sometimes called the Solow residual, after Robert Solow, who first showed how to compute it.

DA DA is the change in output that cannot be explained by changes in inputs. The entity is A A

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The total factor productivity can change for many reasons. Changes most often arise because of increased knowledge about production methods and the Solow residual is often used as a measure of technological progress. Yet other factors, such as education and government regulation, can affect total factor productivity as well. 22. A is a measure of : (A) change in technology (C) change in labour productivity (B) (D) change in capital productivity total factor productivity

23.

If A increased by 1%, with inputs remaining unchanged, then output would increase by : (A) one percent (B) more than 1 percent (C) less than 1 percent (D) an unspecified percentage Solow residual is given by : (A) A (B)

24.

DA A
(B) (D)

(C)

;.

DK K

(D)

(1 2 ) ;

DL L

25.

Solow residual is a measure of : (A) total factor productivity (C) degree of ignorance

technical progress none of the above

26.

Essentially the thrust of new growth theory is on : (A) (B) (C) (D) Deciphering the sources of

Discounting the neo-Keynesian growth theory Explaining convengence Explaining divergence

DA A

27.

Starting with the earliest, arrange the following in the chronological order in the development of theory of investment-output : (i) The Keynesian theory (ii) Theory of Accelerator (iii) Flexible theory of Accelerator (iv) Q theory of Tobin Codes : (A) (iv) (i) (ii) (iii) (B) (ii) (iii) (iv) (i) (C) (i) (ii) (iii) (iv) (D) (iii) (iv) (i) (ii) Starting with the earliest, arrange the following concepts to study the Indian Budget chronologically : (i) Revenue deficit (ii) Budgetary deficit (iii) Fiscal deficit (iv) Primary deficit Code : (A) (i) (ii) (iii) (iv) (B) (iv) (iii) (ii) (i) (C) (ii) (iv) (i) (iii) (D) (iii) (i) (iv) (ii) Starting with the earliest, arrange the following in the chronological order in the theory of regional groups : (i) Economic union (ii) Common market (iii) Customs union (iv) Free trade areas Code : (A) (iii) (iv) (i) (ii) (B) (ii) (i) (iv) (iii) (C) (i) (ii) (iii) (iv) (D) (iv) (iii) (ii) (i)

28.

29.

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30.

Starting with the earliest, arrange the following in the chronological order in the development of theory of demand for money : (i) Transaction demand and precautionary demand for money (ii) Speculative demand for money (iii) Total asset demand for money (iv) Friedmans demand for money Code : (A) (i) (ii) (iii) (iv) (B) (iv) (iii) (i) (ii) (C) (ii) (iv) (iii) (i) (D) (iii) (i) (ii) (iv) Arrange the following states in descending order of population as per the population census of 2001. (i) Maharashtra (ii) West Bengal (iii) Uttar Pradesh (iv) Bihar Code : (A) (i) (iii) (ii) (iv) (B) (iv) (ii) (i) (iii) (C) (iii) (i) (iv) (ii) (D) (ii) (iv) (iii) (i) Starting with the earliest, arrange the following in the chronological order in theory of balance of payments : (i) Elasticity approach (ii) Absorption approach (iii) LM and IS approach (iv) Monetary approach Code : (A) (i) (ii) (iii) (iv) (B) (ii) (iii) (iv) (i) (C) (iv) (i) (ii) (iii) (D) (iii) (iv) (i) (ii) Starting with the earliest, arrange the following in the chronological order : (i) (AAY) Antyodaya Anna Yojana (ii) (SJSRY) Swarna Jayanthi Shahari Rozgar Yojana (iii) (VAMBAY) Valmiki Ambedkar Awas Yojana (iv) (IAY) Rural Housing - Indira Awaas Yojana Code : (A) (ii) (iv) (i) (iii) (B) (i) (ii) (iii) (iv) (C) (iv) (iii) (ii) (i) (D) (iii) (i) (iv) (ii) Assuming strictly convex and monotone preferences over bundles of two commodities, it is known that the consumer is indifferent between bundles (10, 18) and (6, 30). Consider the following bundles : (i) (10, 18); (ii) (8, 24); (iii) (6, 29); (iv) (5, 18). Arrange these bundles from the least preferred to the most preferred Code : (A) (iv) (iii) (i) (ii) (B) (iv) (i) (ii) (iii) (C) (iii) (iv) (i) (ii) (D) (iv) (i) (iii) (ii)

31.

32.

33.

34.

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35.

Match the following : (a) W.W. Rostow (b) Ragnar Nurkse (c) J.R. Hicks (d) J.M. Keynes Code : (A) (B) (C) (D) (a) (i) (v) (iv) (iii) (b) (ii) (i) (iii) (v) (c) (iii) (iv) (ii) (i)

(i) (ii) (iii) (iv) (v) (d) (v) (ii) (i) (iv)

Effective Demand Weak ordering Balanced growth Stages of growth Protectionism

36.

Match the following : (a) W.J. Baumol (b) B.Ohlin (c) Gunnar Myrdal (d) A.K. Sen Code : (A) (B) (C) (D) (a) (i) (v) (iii) (ii) (b) (iii) (ii) (i) (v) (c) (v) (iv) (ii) (i)

(i) (ii) (iii) (iv) (v) (d) (ii) (i) (iv) (iv)

Ethics of Economics Inter-Regional and International trade An Enquiry into Nature and causes of wealth of Nations Asian Drama Economic theory and Operations Analysis

37.

Match the following : (a) Canon of Taxation (b) Protectionism (c) Differential incidence (d) Elasticity of demand Code : (A) (B) (C) (D) (a) (i) (iii) (ii) (v) (b) (ii) (iv) (i) (iv) (c) (iv) (v) (iii) (ii)

(i) (ii) (iii) (iv) (v) (d) (iii) (ii) (v) (i)

Alfred Marshall Musgrave A. Cantillon Mercantilism Adam Smith

38.

Match the following : (a) Relative Income hypothesis (b) Permanent Income hypothesis (c) Marginal efficiency of capital (d) Comparative cost advantage Code : (A) (B) (C) (D) (a) (iv) (v) (i) (ii) (b) (i) (ii) (iii) (iv) (c) (ii) (iii) (iv) (i) (d) (iii) (iv) (v) (ii)

(i) (ii) (iii) (iv) (v)

Milton Freidman J.M. Keynes D. Ricardo J.S. Duesenberry R. Cantillon

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10

39.

Match the following : (a) Marginal productivity theory of Distribution (b) Comparative cost theory (c) Indifference curve Analysis (d) Monopolistic competition Code : (A) (B) (C) (D) (a) (v) (i) (iii) (iv) (b) (ii) (iii) (iv) (i) (c) (iii) (ii) (v) (ii) (d) (i) (v) (ii) (iii)

(i) (ii) (iii) (iv) (v)

Labour theory of value Assumption of non-satiety Product differentiation Perfect competition Liquidity preference

40.

Match the following : (a) Perfect competition (b) Bernoulis theorem (c) Classical theory of employment (d) Ricardian theory of rent Code : (A) (B) (C) (D) (a) (i) (iv) (iii) (ii) (b) (ii) (v) (i) (iii) (c) (iii) (ii) (ii) (iv) (d) (iv) (iii) (v) (i)

(i) (ii) (iii) (iv) (v)

Diminishing marginal utility of money Flexibility of wage rate Perfect mobility of resources Flexibility exchange rate Diminishing marginal returns

41.

Match the following : (a) Tobin, James and Nordhaus, William (b) Sen, Amartya K. (c) Goulet. D. (d) Mehbub-Ul-Haq Code : (A) (B) (C) (D) (a) (ii) (i) (v) (iv) (b) (iv) (ii) (i) (iii) (c) (i) (iii) (ii) (v) (d) (iii) (v) (iv) (i)

(i) (ii) (iii) (iv) (v)

Authentic development Measure of Economic well-being Human Development Reports Development as Freedom Selective egalitarianism

42.

Match the following : (a) Diminishing marginal rate of substitution (b) Marginal productivity of Labour [ 0 (c) Disproportionality and under consumption (d) Universal diminishing marginal returns Code : (A) (B) (C) (D) (a) (v) (i) (iv) (iii) (b) (ii) (iii) (i) (iv) (c) (iii) (iv) (ii) (i) (d) (i) (v) (iii) (ii)

(i) (ii) (iii) (iv) (v)

Dual economy models Marxian theory of capitalistic crisis Ricardian stationary state Indifference curves analysis Circular flow

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12

NOTE :

Code : (A) Both (A) and (R) are true and (R) is the correct explanation of (A) (B) Both (A) and (R) are true but (R) is not correct explanation of (A) (C) (A) is true but (R) is false (D) (A) is false but (R) is true 43. Assertion (A) Reasoning (R) 44. Assertion (A) Reasoning (R) 45. Assertion (A) Reasoning (R) Assertion (A) Reasoning (R) : : : : : : : :

The remining questions in this paper are of Assertion and Reasoning Type. The correct code is to be selected from the four options given below for each of these questions :

Though X and Xmin for a sample are both unbiased estimators of population mean, X is the preferred estimator.
X is more efficient compared to Xmin.

We need to increase our spending on the social sector for increasing human capital. Wagners law of increasing state activity demands so. These days the producers of knowledge are at a premium. Augmented Kuznets curve holds. Farmers are committing sucides because of the increasing burden of debt. If the production function is homogeneous of degree one then

46.

F (K, L)5
47. Assertion (A) Reasoning (R) Assertion (A) Reasoning (R) 49. Assertion (A) Reasoning (R) : : : : : :

F F K1 L K L

Off-Take from the PDS in India has declined. Poverty in India, as per official estimates has declined. Devaluation, other things being equal, helps in reducing the deficit in the balance of payments of a country. It lowers down the prices of exports and increasse the prices of imports. A developing economy, with a thrust on present consumption, would opt for labour-intensive techniques. An economy opts for more intensive use of its relatively abundant factor of production to keep its costs low. Global per capita incomes are showing divergence. The saving ratios and rates of population growth differ across the nations.

48.

50.

Assertion (A) Reasoning (R)

: :

** *** **

J0105

14

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Answer Sheet No. : ......................................................

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D0104
Time : 1 hours] Number of Pages in this Booklet : 16 Instructions for the Candidates
1. 2. 3.

Test Booklet No.

ECONOMICS

PAPERII

[Maximum Marks : 100

Number of Questions in this Booklet : 50

U
1. U DU U S U S U U

4.

Write your roll number in the space provided on the top of this page and also on the Answer Sheet given inside this booklet. This paper consists of fifty multiple-choice type of questions. At the commencement of examination, the question booklet will be given to you. In the first 5 minutes, you are requested to open the booklet and compulsorily examine it as below : (i) To have access to the Question Booklet, tear off the paper seal on the edge of this cover page. Do not accept a booklet without sticker-seal and do not accept an open booklet. (ii) Tally the number of pages and number of questions in the booklet with the information printed on the cover page. Faulty booklets due to pages/questions missing or duplicate or not in serial order or any other discrepancy should be got replaced immediately by a correct booklet from the invigilator within the period of 5 minutes. Afterwards, neither the question booklet will be replaced nor any extra time will be given. (iii) After this verification is over, the Serial No. of the booklet should be entered in the Answer-sheets and the Serial No. of Answer Sheet should be entered on this Booklet. Each item has four alternative responses marked (A), (B), (C) and (D). You have to darken the oval as indicated below on the correct response against each item. Example :
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U UU U
2. - 3. U U U, -S U U U

-S U
(i)

-S U U U U SUU-U S SU U

(ii)

U DU U U U -S DU U U U U U U S DU / U UU U U S SU U UUU S U U -S U U -S U UQ
U UU U- R -S U U

(iii) -S R U- U

4. U U (A), (B), (C) (D)

U UU U

(C) U
5. U U I U U- U

where (C) is the correct response. Your responses to the items are to be indicated in the Answer Sheet given inside the Paper I booklet only. If you mark at any place other than in the ovals in the Answer Sheet, it will not be evaluated. 6. Read instructions given inside carefully. 7. Rough Work is to be done in the end of this booklet. 8. If you write your name or put any mark on any part of the test booklet, except for the space allotted for the relevant entries, which may disclose your identity, you will render yourself liable to disqualification. 9. You have to return the test question booklet to the invigilators at the end of the examination compulsorily and must not carry it with you outside the Examination Hall. 10. Use only Blue/Black Ball point pen. 11. Use of any calculator or log table etc., is prohibited. 12. There is NO negative marking. 5.

U U U S U U U , U

6. U U 7. (Rough Work) S DU U U 8. U-S U

, U U U U
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10. 11.

D0104

P.T.O.

ECONOMICS PAPERII
Note : This paper contains fifty (50) multiple-choice questions, each question carrying two (2) marks. Attempt all of them.

1.

The laws of returns to scale assume : (A) Technique of production is unchanged (C) Returns are measured in physical terms

(B) (D)

All units of factors are homogenious All of the above

2.

Payment of interest as a factor reward is explained by : (A) Productivity Theory (B) Abstinence Theory (C) Time Preference theory (D) All of the above In the light of the Revealed Preference Theory, consider the following axioms, and select the right answer from the code given below : (a) Rationality (b) Consistency (c) Transitivity (d) Non - satiation Code : (A) (a) and (b) are correct (B) All the four axioms are correct (C) (a) and (c) are correct (D) (a), (b), and (c) are correct Match the items in group - I with those of Group - II and select the correct answer form the code given below : Group - I Group - II (a) Kinked Demand curve (i) Baumol (b) Full cost pricing (ii) Bain (c) Sales maximisation (iii) Sweezy (d) Limit pricing model (iv) Hall & Hitch (v) Modigliani Codes : (a) (b) (c) (d) (A) (iii) (i) (iv) (ii) (B) (ii) (i) (v) (iii) (C) (iii) (iv) (i) (ii) (D) (iv) (v) (ii) (iii) Starting from the earliest, arrange the following concepts in terms of their development in Demand Theory : (i) Revealed Preference (ii) Neumann and Morgenstern utility Theory (iii) Ordinal utility (iv) Cardinal utility Codes : (A) (iii) (i) (iv) (ii) (B) (iv) (iii) (ii) (i) (C) (i) (ii) (iii) (iv) (D) (iv) (iii) (i) (ii) The notion of production function implies : (A) Economic Efficiency (C) Allocative Efficiency (B) (D) Technical Efficiency All of the above

3.

4.

5.

6.

D0104

7.

The core of an economy contains : (A) All Pareto optimal allocations (B) All Competitive allocations (C) All Pareto improving allocations of the initial endowments (D) All the feasible allocations Demand for consumer durables and human capital forms part of the consumption demand model developed by which economist ? (A) Friedman (B) Tobin (C) Rosenstein Rodan (D) Baumol Money multiplier determines : (A) Total supply of money in the economy (C) Components of money supply (B) (D) High powered money Employment and output in the economy

8.

9.

10.

Match the items in Group - I with those of Group - II and select the correct answer from the codes given below : Group - I Group - II (a) MV5PT (i) Marshall (b) (c) (d) MV5k PY MV5f (r, y,w)
Md P

(ii) (iii) (iv) (v)

Friedman Fisher Baumol Ando (d) (i) (iv) (iii) (iv)

1 2

2bT r

Codes : (A) (B) (C) (D) 11. (a) (iv) (i) (ii) (iii) (b) (iii) (ii) (iv) (i) (c) (ii) (iii) (i) (ii)

According to Friedman, the consumption of a household depends on : (A) Transitory Income (B) Permanent Income (C) Both permanent and transitory Incomes (D) Relative Income Consider the following statements and select the right answer from the code given below : Assertion (A) : At lower rate of interest, there is greater inducement to invest, according to Keynes Reasoning (R) : At lower rate of interest, supply price of capital is low Codes : (A) Both (A) and (R) are true and (R) is the correct explanation of (A) (B) Both (A) and (R) are true, but (R) is not the correct explanation of (A) (C) (A) is true, but (R) is false (D) (A) is false, but (R) is true. What is the shape of the long - run Phillips curve ? (A) Horizontal Straight line (B) Vertical Straight line (C) Upward Sloping (D) Downward Sloping Which of the following does NOT affect the volume of money supply in the economy : (A) Household cash - holdings (B) Banks deposits with the Central Bank (C) Banks cash Holdings (D) The cash - reserve ratio

12.

13.

14.

D0104

15.

Match the following and select the correct answer from the codes given below : Group - I (a) (b) (c) (d) Asian Drama Choice of technique Stages of Economic Growth Strategy of Economic Development (i) (ii) (iii) (iv) (v) Codes : (a) (A) (B) (C) (D) (i) (iii) (i) (v) (b) (ii) (i) (ii) (iii) (c) (iv) (ii) (iii) (ii) (d) (iii) (iv) (iv) (i) Group - II A.K. Sen W.W. Rostow Gunnar Myrdal A.O. Hirschman Leibenstein

16.

Point - out the correct order in which the following measures of development were introduced : (A) (C) Per-capita Income, HDI, PQLI HDI, Per-capita Income, PQLI (B) (D) PQLI, HDI, Per-capita Income Per-capita Income, PQLI, HDI

17.

Which of the following equation satisfies the condition of stable growth in Harrod-Domar model : (A) (B) (C) (D) Actual growth rate5Warranted rate of growth Actual growth rate5Natural rate of growth Warranted rate of growth5Natural rate of growth Actual rate of growth5Warranted rate of growth5Natural rate of growth

18.

Which is NOT a correct explanation for the need of social cost - benefit approach : (A) (B) (C) (D) There is a divergence between private benefits and public benefit There is a divergence between private cost and social cost Market prices do not reflect opportunity cost of factors Both public and private sectors coexist in the economy.

19.

Consumption sub - model was introduced in Indian Planning for the first time in preparing which plan : (A) Third Plan (B) Fourth Plan (C) Fifth Plan (D) Sixth Plan

20.

Consider the following statements and select correct answer from the code given below: Assertion (A) : Free trade among nations will increase world output and income Reason (R) : Less developed countries do not share equally in the gains from trade. Code : (A) (B) (C) (D) Both (A) and (R) are correct and (R) is the reason for (A) Both (A) and (R) are correct but (R) is not the reason for (A) Statement (A) is correct but (R) is wrong Statement (R) is correct but (A) is wrong

D0104

21.

Match the following and select the correct answer from the codes given below : Group - I Group - II (a) Increase in potential GNP (i) X - inefficiency (b) Output per unit of input (ii) Balanced growth (c) Production at a point inside (iii) Economic growth production possibility frontier (d) Development through expansion (iv) Allocative inefficiency of all sectors of the economy (v) Productivity Codes : (a) (b) (c) (d) (A) (ii) (iii) (iv) (v) (B) (iii) (v) (i) (ii) (C) (i) (iii) (iv) (ii) (D) (iii) (i) (iv) (v) The following is a list of activities in an economy : (i) Allocation (ii) Production (iii) Distribution (iv) Stabilization Which one of the above falls in the domain of government according to Musgrave : (A) (i) and (ii) (B) (i), (ii) and (iii) (C) (i), (iii) and (iv) (D) The shape of Laffer Curve is : (A) U-shaped (B) Inverted U-shaped (B) (D) (C) L-shaped (D)

22.

All the four J-shaped

23. 24.

Public good is NOT characterised by : (A) Non-rivalness (C) Contestability

Non-excludability Free-riding

Consider the following statements and select the correct answer from the codes given below : 25. Assertion (A) : National defence is a public good Reason (R) : People want to be defended against external aggression Codes : (A) Both (A) and (R) are true and (R) is the correct explanation of (A) (B) Both (A) and (R) are true but (R) is not the correct explanation of (A) (C) (A) is true but (R) is false (D) (A) is false but (R) is true Match the following and select correct answer from the codes given below : Group - I Group - II (a) Revenue deficit (i) Government Borrowing from the RBI (b) Fiscal deficit (ii) Revenue expenditure minus Revenue receipts (c) Primary deficit (iii) Fiscal deficit minus interest payments (d) Monetized deficit (iv) Total expenditure minus non-debt receipts. Codes : (a) (b) (c) (d) (A) (ii) (iv) (iii) (i) (B) (i) (ii) (iv) (iii) (C) (ii) (iii) (iv) (i) (D) (iii) (i) (ii) (iv)

26.

D0104

27.

If the elasticity of demand for a good is greater than elasticity of supply for the good, then : (A) The burden of tax on buyers would be higher than that on sellers (B) The burden of tax on buyers would be lower than that on sellers (C) The burden of tax on buyers would be equal to that on sellers (D) Incidence cannot be shifted When Marginal propensity to consume is 0.75, the value of the balanced budget multiplier is : (A) 1 (B) 2 (C) 3 (D) 4 Consider the following statements and select the correct code : Assertion (A) : A rise in income terms of trade only indicates that the country can obtain a larger volume of imports from the sale of exports. Reason (R) : A change in income terms of trade index cannot be interpreted as a measure of gain from trade. Codes : (A) Both (A) and (R) are true, and (R) is the correct explanation of (A) (B) Both (A) and (R) are true, but (R) is not the correct explanation of (A) (C) Statement (A) is true but (R) is false (D) Statement (A) is false, but (R) is true According to Leontiefs study : (A) USAs exports consisted of capital intensive goods (B) USAs exports consisted of labour intensive goods (C) USAs imports consisted of labour intensive goods (D) None of the above Consider the following statements and select the correct code : According to the theory of Optimum tariff : (i) The higher a countrys share of foreign trade, the larger is the scope for its optimal tariffs. (ii) Larger the charge in relative prices on demand and supply, lower the country should set its optimal tariff (iii) If second countrys price elasticity is high, the first country will not gain much by changing its tariff (iv) As long as the foreign countrys offer curve elasticity is less than or equal to unity, the home country can improve or increase tariff Codes : (A) (i) and (ii) are correct (B) (i), (ii) and (iii) are correct (C) (i), (iii) and (iv) are correct (D) All the four are correct Match the following and select the correct code : Group - I (a) Centre - periphery thesis (i) (b) Factor proportion theorem (ii) (c) Reciprocal demand (iii) (d) Vent for surplus theory (iv) (v) Codes : (a) (b) (c) (d) (A) (iii) (ii) (i) (v) (B) (i) (ii) (iv) (v) (C) (ii) (i) (iii) (iv) (D) (v) (iv) (iii) (ii) Group - II Marshall Heckscher-Ohlin Raul Prebisch Ellsework J. Viner

28. 29.

30.

31.

32.

D0104

10

33.

If M.P.C. is 0.8, and marginal propensity to import is 0.3, an autonomous increase in exports of Rs 100 will lead to an increase in national income by : (A) Rs. 100 (B) Rs. 200 (C) Rs. 300 (D) Rs. 400 In Mundell model, a country should : (A) Use monetary policy to achieve external balance (B) Use monetary policy to achieve internal balance (C) Use fiscal policy to achieve external balance (D) Should use exchange control and not monetary or fiscal policy The budget 2002-03 has brought down the peak level of customs duties to : (A) 20% (B) 25% (C) 30% The share of the services sector in GDP in India is : (A) Around 40% (B) Around 45% (C) Around 50% (D) (D) 35% Around 55%

34.

35. 36. 37.

Which of the following statements about Green Revolution is correct ? (A) Green Revolution was due to land reforms (B) Green Revolution was due to the introduction of HYV seeds (C) Green Revolution was due to increased use of fertiliser (D) All of the above Consider the following statements and select the correct answer from among the codes given : Assertion (A) : Inter-state disparities have increased in India in post-reform period. Reason (R) : Industrial Licensing which restricted concentration of industries in richer states has been abolished. Codes : (A) Both (A) and (R) are correct, and (R) is the correct explanation of (A) (B) Both (A) and (R) are correct, but (R) is not the correct explanation of (A) (C) (A) is correct but (R) is wrong (D) (R) is correct, but (A) is wrong Match the following and select the correct answer from the code given : Set - I Set - II (a) Rangarajan Committee (i) Tax Reforms (b) Narasimhan Committee (ii) Insurance Reforms (c) Kelkar Committee (iii) Disinvestment (d) Malhotra Committee (iv) Financial sector reforms Codes : (a) (b) (c) (d) (A) (iii) (iv) (i) (ii) (B) (i) (iii) (ii) (iv) (C) (i) (ii) (iii) (iv) (D) (ii) (i) (iv) (iii) In which of the following years did India have a surplus on current account (BOP) ? (A) 1998-1999 (B) 1999-2000 (C) 2000-2001 (D) None of the above With which of the following countries did India have trade surplus during the last three years ? (a) USA (b) Russia (c) U.K. (d) Japan Code : (A) a and b (B) a and c (C) b and c (D) c and d What is the current share of direct taxes in total tax revenue of the Central Government ? (A) Around 17% (B) Around 27% (C) Around 33% (D) Around 37%

38.

39.

40. 41.

42.

D0104

12

43. 44.

Interest payment as percent of revenue expenditure of Central Government is currently : (A) Around 15% (B) Around 25% (C) Around 30% (D) Around 35% When the fluctuations of two time-series are negatively correlated, then : (A) The trends may be in the same direction (B) The trends may be in the opposite direction (C) There is no trend at all (D) It is difficult to estimate a meaningful trend Select the correct code : Assertion (A) : For large samples, mean can be tested using standard normal distribution. Reasoning (R) : When original population has normal distribution, mean of a sample from this population has t-distribution. Codes (A) Both (A) and (R) true and (R) is the correct explanation (B) Both (A) and (R) are true but (R) is not the correct explanation (C) (A) is true but (R) is false (D) (A) is false but (R) is true Two alternatives X and Y have equal expected value but Y has higher variance than X. A person choosing Y over X is a : (A) Risk-lover (B) Risk-averse (C) Risk-neutral (D) Speculator Which among the following is NOT a sampling distribution : (A) Standard Normal Distribution (B) Poisson Distribution (C) t-distribution (D) Y2 distribution For two events A and B, P(A or B)5P (A)1P(B), when : (A) A and B are independent events (B) (C) A and B are mutually exclusive events (D) A and B can occur simultaneously None of the above

45.

46.

47.

48.

49.

Match the items in group I with those of group II and select the right answer from the codes given below : Group - I Group - II (a) Means test with small sample (i) chi-square statistic (b) Means test with large sample (ii) t-statistic (c) Test of independence (iii) F-statistic (d) Test comparing variances (iv) z-statistic Codes : (a) (b) (c) (d) (A) (iii) (iv) (ii) (i) (B) (iii) (ii) (i) (iv) (C) (ii) (iv) (i) (iii) (D) (i) (ii) (iii) (iv) Lines of regression of Y on X and of X on Y intersect : (A) at origin (B) at X , Y (C) -oOoat X - axis (D) at Y - axis

50.

D0104

14

Roll No.
1.

Signature of Invigilators (Write Roll Number from left side exactly a s in Admit Card)
2.

PAPER - I1

Test Booklet No. Test Booklet Series :-

ECONOMICS
Time : IT Hours Instructions for the Candidates
1

G 9

Maximum Marks : 100

Write your roll number in the space provided on the top of this page and roll number with subject code on the OMR Sheet attached with this booklet. This paper consists of flfty multiple choice type of questions. Answer all the questions. Each question carries two marks. Each question has four alternative responses marked (A),(B), (C) and (D). You have to select only one correct response and mark it in the OMR Sheet with blue ink ball pen. Example :

Here (C) is the correct response. Your responses to the questions are to be indicated only in the OMR Sheet pinned with this booklet. If the marking is put at any other place than in the OMR sheet, it will not be evaluated. Two sheets are attached at the end of the booklet for rough work.
If you write your name or put any special mark on any part of the test booklet or OMR Sheet

which may disclose in any way your identity, you will render yourself liable to disqualification. Do not tamper or fold the OMR Sheet in anyway. If you do so your OMR Sheet will not be evaluated. You should return the OMR Sheet along with this test booklet to the invigilator at the end of the examination and should not carry any paper with you outside the examination hall.
If the OMR sheet is not returned along with the test booklet, you will be disqualified.

No candidate shall be allowed to leave his/her seat or the examination hall/room till the end of the examination without the permission of the invigilator.
[ P.T.O.

ECONOMICS
Paper
1.
-

I1

If a straight line demand curve is tangent to a curvilinear demand curve, the elasticity of the two demand curves a t the point of tangency is
(A)

the same different can be the same or different dependent on the location of the points of tangency.

(B) (C) (D)

2.

The law of downward-sloping demand can be explained in terms of

(A)

the substitution effect the income effect both the substitution and income effects neither the substitution nor income effect.

(B) (C) (D)

3.

Which of the following does not cause an increase in demand ?

(A)
An increase in consumers' incomes

(B) (C)
(D)
4.

An increase in consumers' preference for the commodity

A reduction in the commodity's price A reduction in the price of a complementary good.

The demand curve faced by a perfectly competitive firm is

(A)

negatively sloped positively sloped horizonal any of these.

(B)

(C) (D)
5.

In general, if the average revenue curve is a straight line, the marginal revenue curve will be
(A)

U-shaped a straight line C-shaped bell-shaped.

[ P.T.O.

(B)

(C)
(D)

07 10-11

6.

When the law of diminishing returns begins to operate, the TVC curve begins to
(A)

fall a t an increasing rate rise a t a decreasing rate fall a t a decreasing rate rise at an increasing rate.

(B)

(C) (D)
7.

MC is given by
(A)

the slope of the TFC curve the slope of the TVC curve but not by the slope of the TC curve the slope of the TC curve but not by the slope of the TVC curve either the slope of the TVC curve or the slope of the TC curve.

(B) (C) (D)

8.

Economic rent is earned by a factor when its

(A]

supply i s perfectly elastic supply is inelastic supply is more than its demand demand is less than its supply.

(B) (C) (D) 9.

The slope of the iso-cost line measures

(A)

the marginal rate of technical substitution the marginal rate of substitution the ratio of input prices optional combination of inputs.

(B)

(C) (D)
10.

Demand for a factor is 'derived demand' because

(A)

it is derived from the entrepreneur's need for profit it emerges from the demand for the final product it stems from government policy relating to labour it is derived from long period expectation.

(B) (C) (D)

11 .

In the short run, the monopolist

(A3

breaks even incurs a loss makes a profit any of these.

(B) (C)
(D)

5
12.

The short-run supply curve of the monopolist is

(A)

the rising portion of the MC curve the rising portion of the MC curve above AVC The rising portion of the MC curve above AC none of these.

(B) (C) (D)

13.

In economics, the term 'opportunity cost' refers to

(A)

the monetary cost of a good or service the money cost of hiring a n economic resource the value of a good or service foregone the money cost of providing a good or service.

(B) (C) (D)

14.

Which of the following most closely approximates a n oligopoly ?

(A)

The cigarette industry The barber shops in a city The gasoline stations in a city Wheat farmers in the village.

(B) (C) (D)

15. With reference to the Cournot's model, determine which one of the following statements is false :
(A)

The solution is stable Each duopolist assumes the other will keep its price constant The duopolists do not recognise their interdependence Each duopolist assumes the other will keep its quantity constant.

(B) (C) (D)

16. The Indian economist with whom the CES production function is associated is
(A)

B. S. Minhas
A. K. Sen

(B) (C) (D)

17.

T. N. Srinivasan
V. K. R. V. Rao.

Equilibrium of a monopolist will never be below the middle point of the average revenue curve because below the middle point
(A)

elasticity of demand is less than unity MR is negative both (a) and (b) market laws cease to operate.
[ P.T.O.

(B)
(C)

(D)

18. A given economic state is Pareto-optimum if a policy change can

(A)

make everyone better off make someone better off and someone worse off make someone better off and none worse off not make anyone better off without making someone worse off.

(B) (C) (D) 19.

Net national product equals

(A)

national income plus indirect business taxes national income less depreciation national income plus depreciation gross domestic product less indirect business taxes.

(B) (C) (D) 20.

A positive GDP gap exists when

(A)

nominal GDP is greater than real GDP real GDP is greater than potential GDP potential GDP is greater than real GDP economic activity is at its full-employment level.

(B) (C) (D) 2 1.

In a n open economy, domestic interest rate is pegged to the fixed global interest rates. Then the L curve will be M
(A)

a horizontal straight line a vertical straight line a n upward sloping straight line parallel to the I S curve.

(B) (C) (D) 22.

When the MPC is 0-80 and the APC is 0.95, the MPS is
(A)

0-20 and the APS is 0.05 0-05 and the APS is 0.20 0.20 and the APS is 0-20 0-05 and the APS is 0.05.

(B) (C) (D) 23.

In the Harrod growth model, there will be stable equilibrium if

(A)

natural rate of growth is equal to warranted rate of growth natural rate of growth exceeds warranted rate of growth natural rate of growth equals actual rate of growth natural rate of growth equals warranted rate of growth which equals actual growth rate.

(B) (C) (D)

7
24.

07 10-11

The devaluation of currency, according to Marshall-Lerner conditions, will not be helpful if the sum of elasticities of exports and imports is
(A)

equal to unity less than unity greater than unity greater than 4.

(B) (C) (D)

25.

The Phillips curve shows that

(4 high unemployment rates are associated with low inflation rates

(B) (C) (D)
26.

high unemployment rates are associated with high inflation rates high unemployment rates are associated with a large increase in the nominal wage high inflation rates are associated with a small increase in the nominal wage.

Which one of the following is not an example of near money ?

(A)

Treasury bills of the Government of India Equity shares of Dr. Reddy's laboratories Bill of exchange Bonds and Debentures.

(B)
(C)

(D)
27.

Under fixed exchange rate system, following a contractionary fiscal policy

(A)

exchange rate rises, but income level falls exchange rate falls, but income level rises income level falls along with constant exchange rate income level rises along with constant exchange rate.

(B) (C)
(D)
28.

A profit maximising firm will stop production in the short-run if price is

(A)

lower than average cost lower than marginal cost lower than average variable cost equal to average cost.

(B)
(C)

(D)
29.

Transaction demand for money is proportional to

(A)

rate of interest income money supply investment.

(B)
(C)

(D)

07 10-11

30.

Right-angled isoquants represent

(A)

a variable proportion production function a fixed proportion production function a homogeneous production function none of these.

(B) (C) (D)

3 1.

In any economy inflation rate is 4%, income growth rate is 6%. The economy seeks to ensure stable exchange rate. Then under monetary approach money growth rate must be
(A)

2%
4%

(B)
(C)

10% 16%.

(D) 32.

The imposition of a tariff by a country A on imports from country B

(A)

always benefits A could benefit both countries, provided B retaliates always benefits B may benefit A if B does not retaliate,

(B) (C) (D)

depending on the shape of the reciprocal demand curves.

33. The H - 0 theory postulates that a s a result of trade the difference in factor prices between nations
(A)

diminishes increases remains unchanged any of these is possible.

(B) (C) (D) 34.

X-efficiency concept was formulated by

(A)

Ragnar Nurnse Rosenstein Rodan Hans Singer

H. Leibenstein.

(B) (C) (D)

35.

Human Development Index was formulated by

(A)

UNCTAD UNICEF UNDP IBRD. services industry subsistence agriculture none of these. starts the development process completes the development process comes before the take-off follows the take-off.

(B) (C) (D) 36.

(A)

Disguised unemployment is a characteristic of (B)

(C)

(D) 37.
(A)

In Rostow's stage theory, the drive to maturity stage (B) (C) (D)

38.

Liberalization process started in India in the year

(A)

1978 1986 1991 1996.

(B)

(C) (D) 39.

The idea of inclusive growth was introduced during the

(A)

2nd Plan 4th Plan

10th Plan

(B) (C) (D) 40.

1 1th Plan.

The GDP in the Indian economy in 20 10- 1 1 is widely expected (a)

(b)

to grow a t around 6% to grow a t around 8.5% to surpass that of Japan to surpass that of China.

(c) (d)

Codes :
(A)

only (b) (a) and (c) (b) and (dl only (a).
[ P.T.O.

(B) (C) (Dl

07 10-11
4 1.

10

When two variables are correlated (a) (b) (c) (d) Codes :
(A)

they move together in the same direction they move together but in opposite directions when one moves the other remains fixed and vice versa when one moves in a random way the other can have any behaviour

All of these (a) and (b) (c) (dl

(B) (C) (Dl

42.

(a), (b) and (c).

When two variables are highly correlated we expect the coefficient of regression of one on the other (a) (b) (c) (d) Codes :
(A)

to be unity and statistically significant to be highly statistically significant to be zero and statistically insignificant to be insignificant.

only (a) (a) or (c) only (b) (b) or (c).

(B) (C) (Dl

43.

Coefficient of variation (a) (b) (c) (d) Codes :

(A)

measures the variability of the distribution on the two sides of the mean variability of the distribution relative to the mean is unity for a symmetric distribution is zero for a constant.

only (a) (a) & (c)

(B)

(C) only (b)

ID) (b) 8r ( 4 .

11
44.

X and Yare two independent random variables. Then

A ( )

var(X+Y)>var(X-Y) var(X+Y) < var(X-Y) v a r ( X +Y ) = 2 var(X-Y) var(X+Y) =var(X-Y).

(B) (C) (D)

45.

The probability distribution of X is a s follows : X

1

f(XI
0.1 0.1 0.2 0-2 0.1

3
4 5

0.3

H e r e P [ X I 2 ] + P [ 2 < X I 4 ] + P [ X 2equals 5]
(A)

0.7
1

(B)

(C) 0.8
(D)
46.

0.9.
the LM curve to the right the IS curve to the left the LM curve to the left the I S curve to the right.

An increase in money supply shifts

(A)

(B) (C)
(D)

47. Select the correct match from the following by using the codes given below :
a)
b)

Inflation-Unemployment trade-off 1. Real balance effect Neoclassical Growth Model Knife-edge instability
2.

Don Patinkin Robert Solow Harrod, R.F. NAIRU.

c) d)

3.
4.

Codes : a
(A)

c
1 2

d
4

2
4

3
1

(B) (C) (Dl

3
1

3
2

4
1

07 10-11
48.

12

Whenever personal income is taxed, investment multiplier

(A)

falls rises does not change either falls or rises.

(B)

(C)
(D)
49.

Select the correct match from the following by using the codes given below : a) b) c) d) Govt. budget Central bank Public goods Commercial bank 1. 2.
3.
4.

Non-rivalry in consumption Monetary policy Allocation, distribution and stabilization function Credit creation.

Codes :

a
(A)

b
4

2
2
1

(B) (C) ID)

50.

1 2
3

3
4 1

3
2

4.

A multivariate regression analysis is one with

(A)

only one X variable two or more X variables number of X variables do not matter depicts quadratic relationship between Y and X variables.

(B) (C) (D)

#7) ++

'%101/+%5
2CRGT ++ ++
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+H : CPF ; CTG RGTHGEV UWDUVKVWVGU CPF 2:  2; VJGP VJG 'PIGN EWTXG FGRKEVKPI VJG TGNCVKQPUJKR DGVYGGP



; 2:  2; :

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++ FKHHGTGPV CV FKHHGTGPV RQKPVU KP ECUG QH CNN PQP NKPGCT FGOCPF EWTXGU # + KU EQTTGEV DWV PQV ++ $ ++ KU EQTTGEV DWV PQV + % $QVJ + CPF ++ CTG EQTTGEV & $QVJ + CPF ++ CTG YTQPI  %QPUKFGT C RQKPV YJGTG UVTCKIJV NKPG HTQO VJG QTKIKP KU VCPIGPV VQ VJG VQVCN EQUV EWTXG 9JKEJ QPG QH VJG HQNNQYKPI KU VTWG ! # /CTIKPCN EQUV KU OKPKOWO $ #XGTCIG XCTKCDNG OKPKOWO EQUV KU

# $ % & 

% #XGTCIG VQVCN EQUV KU OKPKOWO & #XGTCIG HKZGF EQUV KU OKPKOWO  +H VJGTG CTG EQPUVCPV TGVWTPU VQ UECNG VJGP VJG VCPIGPE[ RQKPVU DGVYGGP VJG UJQTV TWP CXGTCIG EQUV EWTXGU CPF NQPI TWP CXGTCIG EQUV EWTXGU CTG CV  # VJG HCNNKPI RQTVKQPU QH 5#%U $ VJG TKUKPI RQTVKQPU QH 5#%U % KPKVKCNN[ CV HCNNKPI RQTVKQPU CPF VJGP CV TKUKPI RQTVKQPU QH 5#%U & OKPKOWO RQKPVU QH 5#%U 

# $ %

&

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& /4  /% CPF GSWKNKDTKWO FQGU PQV GZKUV  +P %QWTPQV OQFGN QH FWQRQN[  + 'CEJ HKTO OCZKOK\GU RTQHKVU 

++ ,QKPV RTQHKVU CTG OCZKOWO # 5VCVGOGPV + KU EQTTGEV DWV PQV ++ $ 5VCVGOGPV ++ KU EQTTGEV DWV PQV + % $QVJ 5VCVGOGPVU + CPF ++ CTG EQTTGEV & $QVJ 5VCVGOGPVU + CPF ++ CTG YTQPI  6JGTG KU PQ KFGCN YC[ VQ CIITGICVG KPFKXKFWCN RTGHGTGPEGU KPVQ UQEKCN RTGHGTGPEGU KU  # 5GEQPF 9GNHCTG 6JGQTGO $ #TTQYU +ORQUUKDKNKV[ 6JGQTGO % 5COWGNUQPU 6JGQTGO & 9CNTCUKCP 6JGQTGO  +ORQUUKDKNKV[ & =261 +ORQUUKDKNKV[ # $ %  ++ # $ % & + ++ + + ++ ++ ++ +

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#7) ++  9KVJ VJG GZRGEVCVKQPU VJCV VJG DQPF RTKEG YKNN HCNN KP HWVWTG RGQRNG YKNN JQNF  # .GUU COQWPV QH OQPG[ $ /QTG COQWPV QH OQPG[ % 5COG COQWPV QH OQPG[ & /QPG[ KPFGRGPFGPV QH DQPF RTKEG  +H VJG OQPG[ UWRRN[ /   CPF VJG OQPG[ OWNVKRNKGT   VJGP VJG XCNWG QH JKIJ RQYGTGF OQPG[ YKNN DG  #  $  %  &   $WUKPGUU E[ENG QEEWTU KP 5COWGNUQPU OQFGN FGRGPFKPI QP  # QPN[ XCNWG QH OWNVKRNKGT $ QPN[ XCNWG QH CEEGNGTCVQT % DQVJ VJG XCNWGU QH OWNVKRNKGT CPF CEEGNGTCVQT & KTTGURGEVKXG QH XCNWGU QH  & # $ %  # $ %       /   # $ % & 

& 

OWNVKRNKGT CPF CEEGNGTCVQT =261

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RTQFWEVU FWG VQ  # *KIJ KPEQOG GNCUVKEKVKGU QH FGOCPF HQT RTKOCT[ RTQFWEVU $ &GXGNQROGPV QH U[PVJGVKE UWDUVKVWVGU HQT RTKOCT[ RTQFWEVU % %QORGVKVKXG U[PVJGVKE IQQFU & *KIJGT NGXGN QH JWOCP ECRKVCN FGXGNQROGPV  & OCTMGVU HQT % #

#7) ++  +PEQOG KU VTCPUHGTTGF HTQO UQOG JQWUGJQNFU DGNQY VJG RQXGTV[ NKPG VQ VJQUG LWUV CDQXG VJG NKPG +P VJKU EQPVGZV YJKEJ QH VJG HQNNQYKPI UVCVGOGPVU KU VTWG ! # 6JG JGCF EQWPV TCVKQ KPETGCUGU DWV PQV VJG RQXGTV[ ICR TCVKQ $ $ 6JG RQXGTV[ ICR TCVKQ KPETGCUGU DWV PQV VJG JGCF EQWPV TCVKQ % $QVJ VJG JGCF EQWPV CPF VJG RQXGTV[ ICR TCVKQU KPETGCUG & 0GKVJGT VJG JGCF EQWPV PQT VJG RQXGTV[ ICR TCVKQ KPETGCUGU  6JG UQEKCNKUV OQFGN GORNQ[GF HQT ECRKVCN CEEWOWNCVKQP KP VJG  & % # 

GTUVYJKNG 5QXKGV 7PKQP KPXQNXGF OQXGOGPV QH VGTOU QH VTCFG CICKPUV  # 6JG CITKEWNVWTCN UGEVQT $ $ 6JG KPFWUVTKCN UGEVQT % % 6JG HQTGKIP UGEVQT & & 6JG UGTXKEGU UGEVQT  =261 #

#7) ++  6JG OCZKOK\CVKQP QH VJG TCVG QH ETGCVKQP QH KPXGUVKDNG UWTRNWU ETKVGTKQP QH )CNGPUQP CPF 

.GKDGPUVGKP KPXQNXGU  # /CZKOK\CVKQP QH TGCN PCVKQPCN KPEQOG KP VJG EWTTGPV RGTKQF $ /CZKOK\CVKQP QH RGT ECRKVC TGCN $ KPEQOG KP VJG EWTTGPV RGTKQF % /CZKOK\CVKQP QH TGCN PCVKQPCN KPEQOG CV C HWVWTG RQKPV QH VKOG & /CZKOK\CVKQP QH RGT ECRKVC KPEQOG CV C HWVWTG RQKPV QH VKOG  # 4KECTFKCP GEQPQO[ GPVGTU VJG UVCVKQPCT[ UVCVG FWG VQ  # %QPUVCPV NQPI TWP YCIG TCVG $ (CNNKPI UJCTG QH TGPV KP VQVCN QWVRWV % 4KUKPI TCVG QH RTQHKV & (CNNKPI RQRWNCVKQP ITQYVJ # $ % &   & % #

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

&  

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

#7) ++  'WTQEWTTGPE[ KU  # %QOOGTEKCN DCPM FGRQUKVU KP C PCVKQP FGPQOKPCVGF KP C HQTGKIP EWTTGPE[ $ %WTTGPE[ WUGF D[ VJG 'WTQRGCP 7PKQP % %WTTGPE[ WUGF D[ VJG 'WTQRGCP 7PKQP VQ IKXG NQCPU VQ VJG QVJGT EQWPVTKGU & %QOOGTEKCN DCPM FGRQUKVU KP VJG 75  5RGEKCN &TCYKPI 4KIJVU JCXG DGGP ETGCVGF D[  # #UKCP #&$ $ +PVGTPCVKQPCN 4GEQPUVTWEVKQP $CPM QH CPF $ % 70%6#& & +PVGTPCVKQPCN /QPGVCT[ (WPF +/(  6JG )QNF 5VCPFCTF YCU QRGTCVKPI HTQO  # #DQWV  VQ  $ #DQWV  VQ  % #DQWV  VQ  & #DQWV  VQ    #  $  %  &      & +/( +$4& &GXGNQROGPV $CPM # #&$  & 5&4 % $ # 

&GXGNQROGPV 9QTNF $CPM % 70%6#&

#7) ++  +ORQTV UWDUVKVWVKQP +PFWUVTKCNK \CVKQP KU  # 'PEQWTCIKPI +ORQTVU OCPWHCEVWTGF IQQFU QH # $ 

$ 4GRNCEGOGPV QH KORQTVU QH KPFWUVTKCN IQQFU YKVJ FQOGUVKECNN[ RTQFWEGF IQQFU % 4GRNCEGOGPV QH 'ZRQTVU YKVJ +ORQTVU & 'PEQWTCIKPI +ORQTVU GUUGPVKCN IQQFU QH

% &

 6JG EQPEGRV QH +OOKUGTKUKPI ITQYVJ YCU RQUVWNCVGF D[  # ,CICFKUJ $JCICYCVK $ #XKPCUJ &KZKV % 2CWN -TWIOCP & /GNV\GT  1RVKOWO VCTKHH KU  # 6CTKHH VJCV KPETGCUGU VJG GZRQTVU $ 6CTKHH VJCV FGETGCUGU VJG GZRQTVU % 6CTKHH VJCV JGNRU VQ KORTQXG VJG EQWPVT[U DCNCPEG QH RC[OGPVU & 6JG TCVG QH VCTKHH VJCV OCZKOKUGU VJG DGPGHKV TGUWNVKPI HTQO KORTQXGOGPV KP VJG EQWPVT[U VGTOU QH VTCFG CICKPUV VJG PGICVKXG GHHGEV TGUWNVKPI HTQO TGFWEVKQP KP VJG XQNWOG QH VTCFG 

 # $ % &  # $ %

&

=261

#7) ++  #P GZCORNG QH %WUVQOU 7PKQP KU  # 5##4% $ '7 % 0#61 & $QVJ 5##4% CPF 0#61  9JKEJ QH VJG HQNNQYKPI UVCVGOGPVU CDQWV 961 KU PQV VTWG !  +V UGGMU VQ OCMG KPVGTPCVKQPCN VTCFG HTGG D[ GUVCDNKUJKPI RTGFKEVCDNG CPF VTCPURCTGPV ITQWPF TWNGU +V RTQOQVGU ECRKVCN HNQY HTQO FGXGNQRGF EQWPVTKGU VQ FGXGNQRKPI EQWPVTKGU +V RTQXKFGU OGEJCPKUO HQT VTCFG PGIQVKCVKQPU +V YQTMU CU C PQFCN CIGPE[ HQT UGVVNGOGPV QH VTCFG FKURWVGU   $ % & 5##4% 0#61  # 5##4% '7 0#61

 

 

# 5VCVGOGPV  $ 5VCVGOGPV  % 5VCVGOGPV  & 5VCVGOGPV   6JG )GPGTCNK\GF 5[UVGO QH 2TGHGTGPEGU  YCU KPVTQFWEGF WPFGT VJG CGIKU QH  # +/( $ +$4& % 70%6#& & 961  

# $ % &

    

# +/( $ +$4& % 70%6#& & 961

#7) ++  5VCVGOGPV +  %QORCTGF VQ VJG VJ (KPCPEG %QOOKUUKQP VJG VJ (KPCPEG %QOOKUUKQP JCU JKIJGT   + 

TGEQOOGPFGF CDQWV 

COQWPV VQYCTFU ITCPVU KP CKF VTCPUHGTU 5VCVGOGPV ++  #U EQORCTGF VQ VJG VJ (KPCPEG %QOOKUUKQP VJG RGTEGPVCIG UJCTG QH ITCPVU KP CKF VTCPUHGTU TGEQOOGPFGF D[ VJ (KPCPEG %QOOKUUKQP JCU HCNNGP # $QVJ VJG UVCVGOGPVU CTG KPEQTTGEV $ $ 5VCVGOGPV + KU EQTTGEV DWV VJG UVCVGOGPV ++ KU KPEQTTGEV % 5VCVGOGPV + KU KPEQTTGEV DWV VJG UVCVGOGPV ++ KU EQTTGEV ++ & $QVJ VJG UVCVGOGPVU CTG EQTTGEV  & =261 % ++ + # ++ 

#7) ++  +P TGURGEV QH (KUECN 4GURQPUKDKNKV[ CPF $WFIGV /CPCIGOGPV #EV VJG HQNNQYKPI UVCVGOGPVU CTG OCFG   +V NC[U FQYP NKOKVU HQT TGXGPWG FGHKEKV CPF HKUECN FGHKEKV CU C RGTEGPVCIG QH )&2 +V KU CRRNKECDNG VQ EGPVTCN CU YGNN CU 5VCVG )QXGTPOGPVU +V FQGU PQV RGTOKV VJG %GPVTCN )QXGTPOGPV VQ IKXG IWCTCPVGG VQ NQCPU TCKUGF D[ 257U CPF 5VCVG )QXGTPOGPVU DG[QPF  QH )&2 +V TGEQOOGPFU CP WRRGT NKOKV HQT VJG NKCDKNKVKGU QH VJG )QXGTPOGPV 

 



9JKEJ QH VJGUG UVCVGOGPVU CTG VTWG ! # $ % &  CPF  QPN[   CPF    CPF   CPF  QPN[ # $ % &            

 *QY OWEJ RGTEGPVCIG UJCTG QH UVCVGU KU TGEQOOGPFGF D[ VJ (KPCPEG %QOOKUUKQP QP VJG DCUKU QH RQRWNCVKQP ETKVGTKQP ! #  $  %  &  

#  $  %  & 

#7) ++  2GTVCKPKPI VQ 0CVKQPCN #ITKEWNVWTCN 2QNKE[  YJKEJ QH VJG HQNNQYKPI UVCVGOGPVU CTG VTWG !  +V CKOU CV RTQOQVKPI    

UWUVCKPCDNG CITKEWNVWTG  +V GORJCUK\GU VJG FGXGNQROGPV QH CPKOCN JWUDCPFT[ RQWNVT[ FCKT[KPI CPF CSWCEWNVWTG  +V TGEQOOGPFU VJG KORQUKVKQP QH VCZ QP HCTO KPEQOGU  +V TGEQIPKUGU YQOGPU TKIJVU KP NCPF # $ % &  CPF    CPF   CPF    CPF   # $ % &            

 # EQORCP[ KU ENCUUKHKGF CU UKEM YJGP VJG CEEWOWNCVGF NQUU CV VJG GPF QH CP[ HKPCPEKCN [GCT NGCFU VQ JQY OWEJ RGTEGPVCIG GTQUKQP QH KVU PGVYQTMU 

# #  $ $  % %  &  

  

&  =261

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:
: 0 : 

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0 :

#
:  

: : 0 : 
:

:   :   0 0 0

$
:   0 0 0 0  :   0

% & 

0 :   0
:  0

:

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