Thursday, October 21, 2010

Women Empowerment in India

Let’s have a look at some of the headlines published in the newspapers of late: “Women Empowerment is necessary for the economic development of the country-PM”, “Women Empowerment Bill introduced in the Parliament”, “Court approves reservation for women in Panchayats”, “Give big boost to women empowerment: Information and Broadcasting Minister”, etc. Why is it that we have been talking too much about women empowerment recently?

To answer this question, we must, first, understand what exactly is meant by women empowerment, why there is any need to empower women and what possibly can be done to achieve this feat. Women Empowerment is the ability of women to exercise full control over their actions. This means control over material assets, intellectual resources and even over their ideologies. It involves, at the psychological level, women's ability to assert themselves which has, so far, been constricted by the 'gender roles' assigned to them especially in a culture like India which resists changes.

Gender inequality has been part and parcel of an accepted male-dominated Indian society throughout history. It was embedded within the social hierarchy and this affected how women and men were perceived in leadership roles. Women were expected to be bound to the house, while men went out and worked. This division of labour was one of the major reasons why certain evils like 'Sati Pratha', ‘PardahSystem', 'Child Marriage', 'Dowry System', etc. took birth in our society. The traditional Indian mentality assumes that the place of women is mainly concentrated to the household activities like kitchen work and upbringing of the children. They have been considered as the sex-object and inferior to men in every sphere of knowledge.

Even after 63 years of our independence, women are still one of the mostpowerless and marginalized sections of Indian society. The 2001 Census shows that the sex ratio for India is 933, which is among the lowest in the world. Percentage of female literacy is 54 per cent against male literacy of 75 per cent. Women's representation in Parliament and in the State Assemblies has never gone beyond 8 and 10 per cent respectively. Most of the working women remain outside the organized sector. Mere 2.5 per centwomen are administrators and managers. Violence and atrocities against women are on the rise. Gender discrimination is the major problem, which the Indian women face in the present day society.

One concurrent example of gender discrimination is glass-ceiling effect. The term “glass ceiling” is used to describe an invisible barrier where women are deprived of opportunities at all levels of employment and are discriminated only because they are women. No doubt women have the potential to achieve an equal footing with men. But, it is the social practices and male attitudes that are making an effective and invisible barrier preventing women from rising above a certain point. One consequence of sex stereotypes is that women's achievements tend to be devalued or attributed to luck or effort rather than ability or skill, and therefore this stereotype has the potential to reduce the organizational awards that they deserve to receive. Men are taught to apologize for their weaknesses but women for their strengths.

In fact, the emotional, sexual, and psychological stereotyping of females begins when the doctor says, "It's a girl." Even this stage is a favour to them as it indicates that they have survived the probable stage of foeticide. When a boy is born, friends and relatives exclaim congratulations. A son means insurance. He will inherit his father's property and get a job to help support the family. When a girl is born, the reaction is very different. Some women weep when they find out their baby is a girl because, to them, a daughter is just another expense.

This attitude has resulted in the widespread neglect of baby girls. In many communities, it's a regular practice to breastfeed girls for a shorter time than boys so that women can try to get pregnant again with a boy as soon as possible. As a result, girls miss out on life-giving nutrition during a crucial window of their development, which stunts their growth and weakens their resistance to diseases. The neglect continues as they grow up. Young girls receive less food, healthcare and fewer vaccinations than their male siblings. Tradition calls for women to eat last, their meal often reduced to the leftovers from the male members. A girl can't help but feel inferior when everything around her tells her that she is worth less than a boy. Her identity is forged as her family and society limit her opportunities and declare her to be second-rate.

Even after childhood, extreme poverty and deep biases against women create a remorseless cycle of discrimination that keeps girls from living up to their full potential. It also leaves them vulnerable to severe physical and emotional abuse. But the threat is more severe for girls and women who live in societies where women's rights mean practically nothing. Mothers who lack their own rights can offer little protection to their daughters from male relatives and other authority figures. The frequency of rape and violent attacks against women is alarming.

The government's policies for alleviating poverty have failed to produce any desirable results, as women do not receive appropriate wages for their labour. There is also significant amount of unpaid or non-marketed labour within the household. The increase in gender disparity in wages in the urban areas is also quite marked as it results from the employment of women in different and lower paying activities.

Now that we know the condition of women, the question arises as to how to empower them. The emancipation of women is not a simple matter. Women are the only oppressed group in our society that lives in intimate association with their oppressors. The thing women have yet to learn is nobody gives you power. You just take it. Empowering Women thus aims to inspire women with the courage to break free from the chains of limiting belief patterns and societal or religious conditioning that have traditionally kept women suppressed and unable to see their true beauty and power.It requires the attitudinal change of the husband, other family members and society as a whole to the women.

Empowerment of women could only be achieved if their economic and social status is improved. This could be possible only by adopting definite social and economic policies with a view of total development of women and to make them realize that they have the potential to be strong human beings.

The first and foremost priority should be given to the education of women, which is the grassroot problem. According to Mahatma Gandhi, “If you educate a man you educate an individual, but if you educate a woman you educate an entire family.” Our predominant patriarchal system doesn’t provide enough chances for women to have higher education even if they wish. Girls should be motivated to take up higher education. Universal education for all below 14 years should be strictly implemented. Gender sensitive curricula should be framed at all stages of primary education to address sex-stereotyping menace. It is also necessary to sensitize the other sex towards women. It is important to usher changes in the societal attitudes and perceptions with regard to the role of women in different spheres of life. The education and empowerment of women throughout the world cannot fail to result in a more caring, tolerant, just and peaceful life for all.

Women should be allowed to work and should be provided enough safety and support to work. Legislations such as Equal Remuneration Act, Factories Act, etc, Constitutional safeguards such as maternity relief, and other provisions should be strictly followed. Macroeconomic policies would help in this drive. Through economic empowerment women’s emancipation could be realized. They should be provided with proper wages and work at par with men so that their status can be elevated in society.

Political empowerment of women is necessary for their emancipation. In recent years many steps have been taken so as to increase the participation of women in the political system. The Women's reservation policy bill is however a very sad story as it is repeatedly being scuttled in parliament. Further, there is the Panchayati Raj System, where women have been given 50% representation as a sign of political empowerment.

Apart from these, strict implementation of programs and acts should be there to curb the mal-practices prevalent in the society. Strict measures should be taken for the implementation of Prenatal Diagnostic Techniques Act 1994, which prohibits any prenatal diagnostic techniques and sex selective abortions. Dowry prohibition acts and other legislations pertaining to woman emancipation must be implemented strictly.

The struggle for gender justice will be slow, strenuous and protracted, as the change cannot be brought about easily. It has to be fought at emotional, cognitive and action levels. Swami Vivekananda had said “That nation which doesn’t respect women will never become great now and nor will ever in future” and in pursuit of making India a great nation, let us work towards giving women their much deserved status.

Need for Education Reforms in India

The Macaulayan habits die hard – the clichés will be overworked and the stereotypes reinforced ad nauseam - the reformist fervour of the recent academic and pedagogical discourse has to calm down on the backburner, the cold feet are here to develop and stay- the school examination and admission season has set in. Following an eventful year of public debate on our education system in general and school examination paradigm in particular, these months are poised to have an air of banality, the moments of insipid reality check when the procedural demands of the entrenched system will take precedence over the substantive vision of reforms. It is in this context that the terms of discourse, and the resultant debate, on the education system need to be recast, preventing it from degenerating into a diatribe between ivory tower mandarins and ardent reformists.

The reconfiguring of the public discourse on the education system has in some limited sense captured the popular imagination, fuelled as it has been by an unlikely combination of catalysts- Yashpal Committee’s recommendations, HRD ministry’s proposed reforms and a celluloid product from the tinsel town. However, as the devil of any blueprint for reforms lies in details, the crusaders for reforms have opted to be angelic and serve as obfuscating pedants.
The glaring limitations of the school education system should not act as a red herring for ignoring the dismal state of the higher education system in India. The higher education system in India has a behemoth structure, almost representing a cumbersome monstrosity with 214 universities, 38 institutions ‘deemed-to-be universities,’ 11 institutes of national importance, 9,703 colleges, and 887 polytechnics. The government has gone through perfunctory rounds of critically reviewing the existing system and the diagnosis as well as prescription runs on predictable lines. Last year the final report of the Committee on ‘Renovation and Rejuvenation of Higher Education’ (Prof. Yashpal Committee Report) was another addition to it. Committing itself to implementation of the core of the recommendations, the HRD Ministry sought to blend the reformist orientation with the tenets of access, equity and excellence. However, beyond perfunctory lip service, the qualitative and logistical aspects of the reform need to be addressed with a blend of strong political will and pedagogical imagination.
The question of reforming an entrenched system of pedagogy and academic evaluation is a question concerning socio-economic and cultural milieu, epistemological outlook and the nature of professional classes as well as a question of a society’s quest for excellence, sense of intellectual inquiry and logistical feasibility. Diagnosis of the rut in the academic system has to be sympathetically understood in its historical context and the strange blend of objectives that it sought to achieve for the cross section of professional classes in India.

The Macaulayan minute on Indian educational system had the imprint of Benthamite utilitarianism, wedded to the condescending civlizational objectives of carrying “white man’s burden”. T he utilitarian objectives of equipping the British rule with English educated young men and modern professional classes not only served the British rule in good stead but also ushered in the first serious interface of the educated Indian class with the western science ,philosophy and literature . However, the success and survival of the Indian functionaries in the Government and the educated Indian professional classes was a product

Tuesday, October 19, 2010

APPSC GROUP-2 INDIAN ECONOMY QUESTIONS

1. Frequency density of a class is defined as—
(A) Frequency of the class/Interval of the class
(B) Frequency of the class/ Cumulative frequency for the class
(C) Cumulative frequency for the class/Frequency of the class
(D) Frequency of the class/ Frequency of the previous class

2. Which of the following is statistics?
(A) Profit of a firm has gone up
(B) The production of wheat has increased
(C) The temperature of Delhi is 5 degree more than the temperature of Mumbai
(D) The birth rate has declined in India

3. At end March 2009, India’s total foreign exchange reserves stood at?
(A) Approximately $ 150 billion
(B) Approximately $ 200 billion
(C) Approximately $ 250 billion
(D) Approximately $ 300 billion

4.A firm is called maximum efficient firm if it has?
(A) Minimum Total Cost
(B) Minimum Average Cost
(C) Minimum Variable Cost
(D) Minimum Marginal Cost

5. Implicit cost may be considered as?
(A) Social cost
(B) Private cost
(C) Normal cost
(D) Variable cost

6 ‘The Mid-day Meal’ scheme is covered under the Ministry of?
(A) Human Resource Development
(B) Health and Family Welfare
(C) Social Justice and Empowerment
(D) Consumer Affairs, Food and Public Distribution
7. Which of the following associate bank has been taken over by the State Bank of India in 2008?
(A) State Bank of Travancore
(B) State Bank of Hyderabad
(C) State Bank of Mysore
(D) State Bank of Saurashtra

8. Which of the following demand curves is not a constant elasticity curve?
(A) Vertical
(B) Horizontal
(C) Linear
(D)Rectangular hyperbola

9. The following theory of profit has been given by J. A. Schumpeter?
(A) Risk theory of profit
(B) Uncertainty bearing theory of profit
(C) Innovation theory of profit
(D) Dynamic theory of profit

10. The formula for determination of number of class-interval for a frequency distribution is given by?
(A) Connor
(B) Spur
(C) Sturges
(D) Secrist

11. In the Union Budget, the term ‘Primary Deficit’ means?
(A) Revenue Deficit — Interest Payment
(B) Fiscal Deficit — Interest Payment
(C) Revenue Expenditure — Revenue Receipts
(D) Total Expenditure — Total Borrowing

12. As a measure to unearth black money, the demonetisation of Rupees 1000 currency notes in
India was done in the year?
(A)1968
(B) 1978
(C)1988
(D)1998

13. The Lead Bank scheme was launched in India on the recommendation of?
(A) M. Narasimhan
(B) F. K. F. Nariman
(C) D. T. Lakdawala
(D) V. M. Dandekar

14. Firms have chronic excess production capacity in?
(A) Duopoly
(B) Oligopoly
(C) Pure competition
(D) Monopolistic competition

15. In a two sector model when consumption is equal to 40 + 0.90 Y and investment is equal to 50, the equilibrium output will be equal to?
(A) 500
(B) 700
(C) 900
(D) 1100

16. The positional average is shown by ?
(A) Mean deviation
(B) Standard deviation
(C) Mean
(D) Median

17. The shutdown point is that level of output of a firm where?
(A) MC=AFC
(B) MC=AVC
(C) MC=TFC
(D) MC=TVC

18. Which of the following functions is not a component of Kaldor’s model of grow?
(A) Employment function
(B) Technical progress function
(C) Saving function
(D) Investment function
19. Walra’s Law states that the sum of the excess demand for money, bonds and current output must be?
(A) Less than zero
(B) Equal to zero
(C) Equalto one
(D) More than zero

20. For a unitary elastic demand curve, when price increases ,the amount spent by a consumer on a /good?
(A) Decreases
(B) Increases
(C) Remains unchanged
(D) Becomes zero

21. Correlation coefficient is significant if it is?
(A) Less than 6 times of pro able error
(B) More than 6 times of probable error
(C) Equal to probable error
(D) Equal to standard error

22. The term rainy day’ used by Keynes is related with?
(A) Effective demand
(B) Precautionary demand
(C) Investment multiplier
(D) Inflationary gap

23. Root mean square of all the deviations is known as?
(A) Mean deviation from median
(B) Mean deviation from mode
(C) Standard deviation
(D) Quartile deviation

24. If there is perfect correlation between two variables, then the regression lines are?
(A) Parallel
(B)Perpendicular
(C)Coincidental
(D)Intersectional

25. A producer’s surplus is equal to?
(A) AR—MC
(B) AR—AC
(C) AR-MR
(D) TR—TC

26. According to 2001 census, the total number of persons living in urban slums was approximately?
(A)1 crore
(B) 2 crore
(C)3crore
(D) 4 crore

27. The tax called CENVAT is related to?
(A) Central Sales Tax
(B) Union Excise Duty
(C) Corporate Tax
(D) Custom Duty

28. The price and quantity,both are indeterminate under?
(A) Pure competition
(B) Perfect competition
(C) Monopoly
(D) Bilateral monopoly

29. Which of the following is not an example of Internal Economies?
(A) Economies of superior technology
(B) Economies of division of labour
(C) Economies of competition
(D) Economies of management

30. Which of the following type of facts are not Considered under the study of statistics
(A) Quantitative facts
(B) Qualitative facts
(C) Comparative facts
(D) Relative facts

31. The statistical calculations in classified data are based on?
(A) The actual values of observations
(B) The upper class limits
(C) The lower class limits
(D) The mid-points of the classes

32. The concept of merit goods has been introduced by?
(A)Buchanan
(B) Musgrave
(C)Samuelson
(D) Tiebout

33. The Child Labour (Prohibition and Regulation) Act, 1986 prohibits the employment of Children below the age of?
(A) 10 years
(B) 12 years
(C) 14years
(D) 16years

34.The Prime Lending Rate of Commercial Banks are decided by?
(A)Positive
(B) Negative
(C)Zero
(D) Infinite

35. The cross elasticity of demand for substitute commodities is always?
(A)Positive
(B) Negative
(C)Zero
(D) Infinite

36. The K-factor analysis is related with?
(A)Economic growth rate
(B)Tends in foreign trade
(C)Causes of mortality
(D)Infrastructure facilities

37. The ‘knife-edge equilibrium’ in Harrod’s model is an equality between?

(A) G and Gw
(B) Gw and Gn
(C) G and Gn
(D) G,Gw and Gn

38.Stratified sampling is preferred, where?
(A) Population is homogeneous
(B) Population is heterogeneous
(C) Random sampling is not possible
(D) Small samples are required

39. Pure interest is?
(A) Equal to the gross interest
(B) Less than gross interest
(C) More than gross interest
(D) Not related to gross interest

40. Which of the following is totally different from logical multiplier?
(A) Instant multiplier
(B) Lagless multiplier
(C) Static multiplier
(D) Dynamic multiplier

41.Availability hypothesis explains a country’s
(A) Production capacity
(B) Natural resources availability
(C) Commodity composition of foreign trade
(D) Consumption pattern

42. For a Giffen good
(A) Income effect is positive and substitution effect is negative
(B) Income effect is negative and substitution effect is positive
(C) Income effect and substitution effect both are positive
(D)Income effect and substitution effect both are negative

43. To meet the objective of inflation control, the Central Bank should adopt following policy measures
(A) Increase in cash reserve ratio, along with purchase of securities under open market operations
(B) Increase in cash reserve ratio, along with sale of securities under open market operations
(C) Decrease in cash reserve ratio, alongwith purchase of securities under pen market operations
(D) Decrease in cash reserve ratio, alongwith.sale of securities under open market operations

44. The relative measures of dispersion are generally called?
(A) Dispersion coefficient
(B) Dispersion multiplier
(C) Dispersion accelerator
(D) Dispersion variable

45. Which of the following is not expressed by a transformation curve?
(A) Choice
(B) Scarcity
(C) Factor price
(D) Opportunity cost

46. The central theme of the World Development Report, 2009 pub lished by the World Bank is?
(A) Agriculture for development
(8) Development and next generation
(C) A better investment climate for every one
(D) Reshaping economic geography

47. Under the first degree of price discrimination in discriminating monopoly, the consumer’s surplus will be?
(A)Zero
(B) Maximum
(C) Minimum
(D) Indeterminate

48.A rational consumer moves to a higher indifference curve due to?
(A) Monotonic preference
(B) Polytonic preference
(C) Convex preference
(D) Concave preference

49. When was the concept of core sector introduced in Indian industries ?
(A)1970
(B) 1980
(C)1990
(D) 2000

50 .Which is the apex bank for micro finance in India?
(A) State Bank of India
(B) Industrial Development Bank of India
(C) Small Industries Development Bank of India
(D) National Bank for Agriculture and Rural Development

Answers:

1 A
2 C
3 C
4 B
5 B
6 A
7 D
8 C
9 C
10 C
11 B
12 B
13 B
14 D
15 C
16 D
17 B
18 B
19 B
20 C
21 B
22 B
23 C
24 C
25 B
26 D
27 B
28 D
29 C
30 B
31 D
32 B
33 C
34 B
35 A
36 C
37 D
38 B
39 D
40 D
41 B
42 B
43 B
44 A
45 C
46 B
47 A
48 C
49 A
50 D

APPSC GROUP-2 INDIAN ECONOMY QUESTIONS

1. When the given values of x form geometric series and values of y form arithmetic series, the relationship between The variables is given by
(A) Lemon function
(B) Lemon homogeneous function
(C) Binomial function
(D) Exponential function

2. Statistical distrusts are due to?
(A) Nature of statistics
( B)Limited scope of statistics
(C) insufficient tools of statistics
(D) Misuse of statistics

3. Circular test is satisfied by the following index
(A) Laspeyre’s index
(B) Pasche’s index
(C) Fisher’s index
(D) Kelly’s index

4.Which of the following is the largest component of India’s external debt?
(A) Commercial borrowings
(B) NRI deposits
(C) Multilateral debt
(D) Bilateral debt
5. Tobin tax is related with?
(A) Black money transactions
(B) Commodity transactions
(C) Service transactions
(D) Foreign exchange transactions

6. The terms Static’ and Dynamic’ in economics were first used by?
(A)Malthus
(B) Mill
(C)Marshall
(D) Walras

7. A metropolitan city is one which has a population size of more than?
(A)10 lakh
(B)15 lakh
(C) 20 lakh
(D) 25 lakh

8.According to fifth economic census, the highest number of industrial units in the country are
located in the State of?
(A) Maharashtra
(B) Gujarat
(C) Andhra Pradesh
(D) Tamil Nadu

9. Under perfect competition, the entrepreneur’s power of control over the price of the commodity
Is?
(A)Total
(B) Considerable
(C)Some
(D) None
10.Who has regarded the concept of ‘ideal output’ as an indicator of economic welfare?
(A)Hicks
(B) Pareto
(C)Pigou
(D) Kaldor

11. The technique of presenting data by pictogram was developed by?
(A) Croxton and Cowden
(B) Johnson and Jackson
(C) Otto Neurth
(D) Horace Secrist

12 The monetization of economy is measured by?
(A)M0/GDP
(B) M1/GDP
(C) M2/GDP
(D) M3/GDP

13. The shape of average selling cost curve is?
(A) Hyperbola shaped
(B) Rectangular Hyperbola shaped
(C) L-shaped
(D) U-shaped

14.The National Institute of Training for Standardization (NITS) is located at?
(A)Hyderabad
(B) Nagpur
(C)Chandigarh
(D) Noida
15. NABARD is a?
(A) Commercial Bank
(B) Lead Bank
(C) Refinance Bank
(D) Cooperative Bank
16. Cost-plus principle is related with?
(A)Production theory
(B) Value theory
(C) Marginal uti theory
(D) Distribution theory

17. Which one of the following is not a feature of Stagflation?
(A) High input cost
(B) Excess in aggregate demand
(C) High price level
(D) High unemployment level

18.. The Hayek theory of trade cycle is related with?
(A) Over-investment
(B) Price fluctuation
(C) Interaction of multiplier and accelerator
(D) Interaction of saving and investment

19. Which one of the following is a two-dimensional diagram?
(A) Pictogram
(B) Histogram
(C) Bar diagram
(D) Line diagram

20. A firm’s learning curve shows the following relationship between average cost of production and total output over time
(A) Decline in average cost with increase in total output
(B) Decline in average cost with decline in total output
(C) Increase in average cost with decline in total output
(D) Increase in average cost with increase in total output

21. Select the correct statement regarding Harrod’s accelerator and Domar’s accelerator and decide which one is true
(A) Harrod’s accelerator is psychological and Domar’s accelerator is technological
(B) Harrod’s accelerator is technological arid Domar’s accelerator is psychological
(C) Harrod’s accelerator is psychological and Domar’s accelerator is also psychological
(D) 1-larrod’s accelerator is technological and Domar’s accelerator is also technological

22. The transfer payment multiplier in the Keynesian system will be equal to?
(A) MPC/MPS
(B)MPS/MPC
(C)MPS/(1-MPC)
(D)MPC/(1—MPS)

23. The difference between Natural rate’ and ‘Market rate’ of interest has been done by?
(A)Robertson
(B) Keynes
(C)Fisher
(D) Wicksell

24. The quartile deviation for a normal distribution is always equal to?
(A) (2/3)σ
(B) (3/4)σ
(C) (4/5)σ
(D) (5/6)σ

25. Which of the following is not a ’shift factor of demand’?
(A)Income
(B) Price
(C)Fashion
(D) Taste

Answers:

1 D
2 D
3 D
4 A
5 A
6 B
7 A
8 D
9 D
10 C
11 C
12 B
13 D
14 B
15 C
16 D
17 B
18 A
19 B
20 A
21 D
22 A
23 D
24 A
25 B

APPSC GROUP-2 INDIAN ECONOMY QUESTIONS

1. Under monopolistic competition the cross elasticity of demand for the product of a firm will be?
(A) Perfectly elastic
(B) Perfectly inelastic
(C) Highly elastic
(D) Highly inelastic

2. Which of the following curves is not ‘U’ shaped?
(A) Average Cost Curve
(B) Average Variable Cost Curve
(C) Average Fixed Cost Curve
(D) Marginal Cost Curve

3.Loss of information occurs during?
(A) Collection of data
(B) Presentation of data
(C) Classification of data
(D) Interpretation of data
4. Which of the following indices is based on only base year quantities?

(A) Laspeyre’s index
(B) Fisher’s index
(C) Kelley’s index
(D) Pasche’s index

5. The first State in India- which published its State Human Development Report, is?
(A) Kerala
(B) Madhya Pradesh
(C) Gujarat
(D) Andhra Pradesh

6. The Utility Index Number has been developed by?
(A) Marshall and Edgeworth
(B) Hall and Hitch
(C) Neumann and Morgenstern
(D) Hicks and Hanson

7. The following theory is treated as ‘the third root of the logical theory of demand’?
(A) Diminishing marginal utility theory
(B) Equi-marginal utility theory
(C) Revealed preference theory
(D) Theory of consumer’s surplus

8. Employment elasticity of growth is measured as?
(A) Employment growth rate / GDP growth rate
(B) Employment growth rate/Population growth rate
(C) Employment growth rate/Unemployment growth rate
(D) Employment growth rate// Per capita income growth rate

9. The fundamental equation in Harrod’s growth model is defined?
(A) In terms of rate of growth of output
(8) In terms of rate of growth of technology
(C) In relation to the path of capital-labour ratio
(D) In terms of rate of change of capital-output ratio

10. The best average for the construction of index number is?
(A) Geometric mean
(B) Arithmetic mean
(C) Harmonic mean
(D) Weighted mean

11. The minimum price below which the seller will not sell the goods, is known as?
(A) Estimated price
(B) Administered price
(C) Reserve price
(D) Shadow price

12. In the equation C = C0 + alpha,Y, the behavioural coefficient is?
(A)C
(B) C0
(C)alpha
(D)Y

13. Automatic stabilizer is a tool of?
(A) Taxation policy
(B) Employment policy
(C) Population policy
(D) Export policy

14. The price of a commodity will increase if the increase in demand is?
(A) More than increase in supply
(B) Less than increase in supply
(C) Equal to the increase in supply
(D) Not related to the increase in supply,

15. Which of the following assumptions is not correct for the Lewis model of growth?
(A) The economy has two sectors
(B) Capitalists reinvest all theirprofits
(C) Rural wage is determined by marginal product of labour
(D) The supply of rural labour to modern sector is perfectly elastic
16. The Durbin-Watson test is used for?
(A) Autocorrelation
(B) Multiple correlation
(C) Partial correlation
(D) Simple correlation

17. The following Industrial Policy Resolution is known as the Economic Constitution of India?
(A) Industrial Policy, 1948
(B) Industrial Policy, 1956
(C) Industrial Policy, 1980
(D) Industrial Policy, 1991

18. If two regression lines are perpendicular to each other, the correlation coefficient will be?
(A)+1
(B) —1
(C)Zero
(D) Indetermined

19. Under the second degree of price discrimination in discriminating monopoly, the buyers are divided into?
(A) One single group only of all buyers
(B) Two groups only of all buyers
(C) Many groups of buyers according to their demand
(D) Number of groups which is equal to number of buyers

20.If an economy is purely competitive static economy, then the economic profit will be?
(A)Minimum
(B) Maximum
(C)Zero
(D) Negative

21.Who is known as the ‘Architect’ of Indian Planning?
(A) Dadabhai Naoroji
(B) M. Visvesaraia
(C) P. C. Mahalanobis
(D) Ardeshir Dalal

22. The entertainment tax in India was first introduced in the State of?
(A)Bengal
(B) Bihar
(C) Rajasthan
(D) Maharashtra

23. The Laffer curve shows the relationship between?
(A) Per capita income and environmental pollution
(B) Rate of unemployment and rate of inflation
(C) Tax rate and tax revenue
(D) Economic growth and income inequality

24. The shape of the indifference curve indicates?
(A) Income of the consume
(B) Taste of the consumer
(C) Prices of the commodities
(D) Quality of the commodities

25. Which of the following has highest quantitative value in a positively skewed distribution?
(A)Mean
(B) Median
(C)Mode
(D) First quartile

26. Which of the following is also known as mixed sample?
(A) Systematic sample
(B) Stratified sample
(C) Random sample
(D) Multi-stage sample

27.According to Harvey Leibenstein, two types of incentives work in under-developed countries?
(A) Positive-sum incentives and Negative-sum incentives
(B) Zero-sum incentives and negative-sum incentives
(C) Positive-sum incentives and Multiple-sum incentives
(D) Zero-sum intcentives and Positive-sum incentives

28. During recent past, the highest GDP growth rate has been
achieved in the year?
(A)2005-06
(B) 2006-07
(C)2007-08
(D) 2008-09

29 A factor of production is used by a producer at that stage where the marginal production of the factor is?
(A) Increasing, but positive
(B) Increasing, but negative
(C) Decreasing, but positive
(D) Decreasing, but negative

30. The doctrine of consumer’s surplus is based on?
(A) Indifference curve analysis
(B) Revealed preference analysis
(C) Law of substitution
(D) Law of diminishing marginal utility

31. Big-mac index is based on?
(A) Official exchange rate
(B) Real effective exchange rate
(C) Nominal effective exchange rate
(D) Purchasing power parity exchange rate

32. The New Tax Code which is pro posed to come into effect from April 1st, 2011 covers?
(A) Direct taxes only
(B) Indirect taxes only
(C) Both direct and indirect taxes
(D) State level taxes only

33. In the Union Budget 2009-10, total amount of interest payments is estimated?
(A) More than Rs. 1.0 lakh crore
(B) More than Rs. 1.5 lakh crore
(C) More than Rs. 2.0 lakh crore
(D) More than Rs. 2.5 Iakh crore

34. Which of the following is related with monopoly?
(A)Advertisement cost
(B) Selling cost
(C) Price discrimination
(D) Product differentiation

35.The modern money is not?
(A) Token money
(B) Fiat money
(C) Fiduciary money
(D) Full bodied money

36.The outcome budget is a?
(A) Pre-outlay instrument
(B) Post-outlay instrument
(C) Pre-expenditure instrument
(D) Post-expenditure instrument

37. In the theory of kinked demand curve, the lower segment of the demand curve is?
(A) Perfectly inelastic
(B) Perfectly elastic
(C) Highly elastic
(D) Less elastic

38. The catJse of difference between: GDP and NDP is?
(A) Net foreign income
(B) Depreciation
(C) Subsidies
(D) Net indirect tax

39. Arithmetic mean of deviation is always?
(A) A positive value
(B) A negative value
(C) Equal to zero
(D) Equal to one

40. Which one of the following is an item of current account of the balance of payments?
(A) Foreign investment
(B) External commercial borrowings
(C) Foreign grants
(D) Non-resident Indian deposits

41. Charlier’s check for accuracy is used for?
(A)Mean
(B)Median
(C)Correlation
(D) Standard deviation

42.The empirical study of economic theories is considered under?
(A) Aggregate economics
(B) Applied economics
(C) Social economics
(D) Welfare economics

43 Elinor Ostrom, the first woman to win the Nobel Prize in economics in 2009. has been awarded for her contribution in the field of?
(A) Resolving business conflicts
(B) Inflationary trends
(C) Management of common property
(D) Capital market analysis

44. The Kuznet’s curve shows the relationship between?
(A) Economic growth and income inequality
(B) Unemployment and inflation
(C) Tax rate and tax revenue
(D) Economic growth and inflation

45. Slutsky’s substitution effect is based on?
(A) Cost variation
(B) Cost difference
(C) Compensating variation
(D) Compensating difference

46. The correlation coefficient is independent of?
(A) Change of scale only
(B) Change of origin only
(C) Both the changes of scale and origin
(D) Neither the change of origin nor the change of scale

47. The data represented through arithmetic line graph help in understanding?
(A)Trend
(B) Randomness
(C) Cyclicity
(D) Seasonality

48. Select the correct statements regarding the Balanced Growth theory
Statements:
1 It is a static concept
2. It is a dynamic concept
3. It recognises the significance of economic independence
4. It recognises the significance of economic interdependence.
Code
(A) 1 and 4
(B) 2and 3
(C)1 and 3
(D) 2 and 4

49. For setting up new industrial parks and in established industrial parks, the Foreign Direct Investment under automatic route has been allowed?
(A) Upto 26percent
(B) Upto 49 per cent
(C) Upto 74 per cent
(D) Upto 100 per cent

50.The Euler’s theorem is satisfied only with?
(A) Homogeneous function
(B) Heterogeneous function
(C) Endogeneous function
(D) Exogeneous function

Answers:

1 C
2 C
3 A
4 A
5 A
6 C
7 C
8 A
9 D
10 A
11 C
12 C
13 A
14 A
15 C
16 A
17 B
18 C
19 C
20 C
21 B
22 A
23 C
24 B
25 A
26 B
27 A
28 B
29 C
30 D
31 D
32 A
33 C
34 C
35 D
36 A
37 D
38 B
39 C
40 C
41 A
42 D
43 C
44 A
45 B
46 C
47 A
48 D
49 D
50 A

APPSC GROUP-2 INDIAN ECONOMY QUESTIONS

1. The Laffer Curve explain the relationship between which of the following?
(a) Tax rates and tax revenue
(b) Tax rates and employment
(c) Tax rates and income
(d) Tax rates and government expenditure
Ans. (a)

2. What does an increase in the ratio of revenue deficit to gross fiscal deficit indicate?
(a) An increase in investment
(b) An increase in the utilization of borrowed funds for revenue purposes
(c) An increase in the utilization of borrowed funds for imports
(d) An increase in the utilization of borrowed funds for lending
Ans. (b)

3. If in a year, the gross fiscal deficit of government is Its. 3,00,000 crores, revenue deficit is Rs. 1,50,000 crores and interest payments are Rs. 80,000 crores, which is the primary deficit of the government in the year?
(a) Rs. 23,000 crores
(b) Rs. 45,000 crores
(c) Rs 70,000 crores
(d) Rs. 2, 20,000 crores
Ans. (d)

4. Which of the following may not be considered as a merit of the opportunity cost theory over the Ricardian theory of comparative cost?
(a) It takes into account two or more factors of production instead of labour theory of value
(b) It takes into account the possibilities of trade under all the laws of production, instead of constant costs only as in the Ricardian theory
(c) The theory provides a theoretical framework for general equilibrium approach
(d) The theory considers the welfare point of view neglected by the Ricardian theory
Ans. (b)

5. Which one of the following statements is correct?
The Heckscher-Ohlin theory states that the most important cause of trade is the difference in:
(a) preferences
(b) technology
(c) magnitude
(d) factor endowments
Ans. (d)

6. Which one of the following statements is correct? The Leontief Paradox makes
(a) a critical analysis of Haberler theory of opportunity cost
(b) an empirical study of factor-price equalization theory of Samuelson
(c) an empirical testing of Mills theory of reciprocal demand
(d) an empirical testing of Heckscher-Ohlin theory of international trade
Ans. (d)

7. What is the theory that opening a country to world markets gives an opportunity to utilize unemployed and underemployed resources known as?
(a) Ricardian theory
(b) Heckscher-Ohlin theory
(c) Vent-for surplus theory
(d) Strategic trade theory
Ans. (c)

8. Which of the following are the basic components of typical IMP stabilization programme?
A. Liberalization of foreign exchange.
B. Devaluation of the official exchange rate.
C. A comprehensive anti-inflation programme.
D. General opening-up of the economy to international commerce including foreign
investment.
Select the correct answer using the code given below:
(a) A and C
(b) B and D
(c) A, C and D
(d) A, B, C and D
Ans. (d)

9. Which one of the following best characterizes the Bretton Woods System of exchange rates?
(a) Adjustable fixed exchange rates
(b) Fixed e rates
(c) Adjustable pegged exchange rates
(d) Pegged, exchange rates
Ans. (b)

10. Which of the following is the highest form of economic integration among different nations?
(a) Custom Union
(b) Free Trade Area
(c) Economic Union
(d) Common Market
Ans. (c)

11. Which one of the following explains balance-of-payment adjustment mechanism under the gold standard?
(a) Devaluation
(b) Flexible exchange rates
(c) Income-adjustment mechanism
(d) Price-specie flow mechanism
Ans. (d)

12. Which one of the following statements is not correct?
(a) The distinction between expenditure switching and expen4iture changing was propounded by FL U. Johnson
(b) The Absorption Approach to BOP was developed by Sydney Alexander
(c) The Elasticity Approach to BOP was associated with Stolper – Samuelson
(d) Stability condition in the foreign exchange market is known as Marshall – Lerne condition
Ans. (c)

13. In the Balance-of-Payment Account, the transfer payments are included in which one of the following?
(a) Current account
(b) Service account
(c) Capital account
(d) Official reserves account
Ans. (a)

14. Which of the following is not a non-tariff barrier?
(a) Voluntary export restraint
(b) Health and product standards
(c) Environmental protection laws
(d) Ad-valorem duties
Ans. (d)

15. Which one of the following statements is correct?
The production possibility curve under increasing
opportunity cost is
(a) concave to the origin
(b) convex to the origin
(c) a straight line parallel to the x – axis
(d) a straight line parallel to the y – axis
Ans. (a)

16. Match List -I (Terms of Trade) with List- II (Explanation) and select the correct answer using the codes given below the lists:
List-I List-II
(Terms of Trade) (Explanation)
A. Gross barter terms of trade 1.The ratio between the quantity of a country’s
imports and exports
B. Income terms of trade 2. (Index of export prices)
x (export quantity)
Index of import prices

C. Single factoral terms of trade 3. Obtained by multiplying the commodity terms of
trade by an index of productivity
changes in domestic export industries
4. The ratio of a country’s export price index to its
import price index
Code:
A B C
(a) 3 4 1
(b) 1 2 3
(c) 3 2 1
(d) 1 4 3
Ans. (b)

17. Under which one of the following fundamental assumptions, Solow was able to show that steady state growth was possible and stable?
(a) Flexible JVL ratio
(b) Flexible S/Y ratio
(c) Constant growth-rate of population
(d) Constant rate of technical change
Ans. (a)

18. Match List -I (Concept) with List -II (Explanation) and select the correct answer using the codes given below the lists:
List-I List- II
(Concept) (Explanation)

A. Vicious circle of poverty 1. Massive increase in investment to initiate economic
development in LDC’s
B. Balanced growth 2. A stagnant low level of investment
C. Big push 3. Simultaneous investment in all inter-related industries
Code:
A B C
(a) 2 3 1
(b) 1 2 3
(c) 2 1 3
(d) 1 3 2
Ans. (a)

19. Who among the following developed the Wage-Goods model?
(a) M. Dobb
(b) A. K. Sen
(c) Vakil and Brahmananda
(d) P C. Mahalanobis
Ans. (c)

20. Using Flarrod-Domar growth equation. What is the rate of growth of a closed economy with C/Y = 3/4and AK / ÀY = 3 where, C = consumption, Y =output, K =

capital?
(a) 8.66%
(b) 8.50%
(c) 8.33%
(d) 7.50%
Ans. (c)

21. Match List -I (Economist) with List– II (Concept/Theory) and select the correct answer using the codes given below the lists:

List- I List-II
(Economist) (Concept/Theory)
A. Ragner Nurkse 1. Backwash effects
B. Paul N. Rosenstein Rodan 2. Theory of balanced growth
C. Gunnar Myrdal 3. The big push theory
D. A.O. Hirschxnan 4. Theory of unbalanced growth
Code:
A B C D
(a) 2 1 3 4
(b) 4 3 1 2
(c) 2 3 1 4
(d) 4 1 3 2
Ans. (c)

22. Match List I (Property of -a Plan) with List II (Model Used) and select the correct answer using the codes given below the lists:
List -I List -II
(Property of a Plan) (Model used)
A. Feasibility 1. Input-output model
B. Consistency 2. Linear programming
C. Optimality 3. Harrod- Domar type
Codes:
A B C
(a) 1 2 3
(b) 3 1 2
(c) 2 3 1
(d) 1 3 2
Ans. (b)

23. What is the technical progress that increases the productivity of labour (L) proportionately more than the productivity of capital (K) and results in an increase in L/K at constant relative factor prices, called?
(a) Labour saving technical progress
(b) Natural technical progress
(c) Wage saving technical progress
(d) Capital-saving technical progress
Ans. (d)

24. Match List I with List I and select the correct answer using the codes given below the lists:
List-I List -II
A. Aggregate Growth Model 1. Western models as applied to the
situation of developing countries
B. Multi-sector Growth Model 2. Analysis of growth in terms of inter-
dependence of sectors
C. Harrod-Domar Growth Model 3. Deals with the entire economy by
examining a set of important macro
variables
D. The False Paradigm Model 4. For a specific growth-rate and a given
capital output ratio, the required rate of
domestic investment is determined
Codes:
A B C D
(a) 4 2 3 1
(b) 3 1 2 4
(c) 3 2 4 1
(d) 4 3 1 2
Ans. (c)

25. Consider the following statements:
Lewis’ model of development with unlimited supplies of labour will fail to work to the full extent if:
A. there is no disguised unemployment in the traditional sector.
B. modem sector wages do not remain constant up to the point that surplus labour is exhausted.
C. investment in the modern sector is labour-saving.
Which of the statements given above is/are correct?
(a) A only
(b) A and B
(c) B and C
(d) A, B and C
Ans. (c)

26. Which one of the following models explains the paradox pertaining to the rural-urban migration in the context of rising urban employment?
(a) Lewis model
(b) Todano model
(c) Solow model
(d) Mahalanobis model
Ans. (b)

27. The Mahalanobis model was developed for which of the following plans?
(a) First Five Year Plan
(b) Second Five Year Plan
(c) Third Five Year Plan
(d) Fourth Five Year Plan
Ans. (b)

28- What is the correct sequence of the following approaches to development in terms of their chronological emergence?
A. Basic needs approach.
B Per capita income approach.
C. Human development index approach.
Select the correct answer using the codes given below:
(a) A, B, C
(b) B, A, C
(c) B, C, A
(d) A, C, B
Ans. (b)

29. On which of the following grounds is increasing inequality justified in initial stages of development?
(a) It puts greater incomes in the hands of those who have greater average propensity to consume
(b) It puts greater incomes in the hands of those who have greater average propensity to save
(c) It puts greater incomes in the hands of those who have greater marginal propensity to consume
(d) It puts greater incomes in the hands of those who have greater marginal propensity to save
Ans. (a)

30. Which of the following is meant by growth in the context of growth and development?
(a) Growth of gross national product in money terms
(b) Growth of per capita income in money terms
(c) Growth of gross national product in real terms
(d) Growth of per capita income in real terms
Ans. (c)

31. What is the ratio between the price of a country’s export goods and price of its import goods known as?
(a) Single factoral terms of trade
(b) Double factoral terms of trade
(c) Net barter terms of trade
(d) Income terms of trade
Ans. (c)

32. The two gaps in a two-gap model refer to which of the following?
A. Revenue expenditure gap
B. Saving investment gap
Select the correct answer using the codes given below:
(a) A only
(b) B only
(c) Both A and B
(d) Neither A nor B
Ans. (b)

33. Which of the following is not a characteristic of indicative planning?
(a) The government sets targets for all sectors of the economy including those dominated by private enterprises
(b) The emphasis is on consistency of the targets with each other
(c) Given the consistency of targets with each other, the government directs the private enterprises to attain those targets
(d) The government provides the right incentives to the private sector to attain the targets
Ans. (b)

34. If median and mode of a set of observations are 20.6 and 26 respectively, then what is the value of mean of the observation?
(a) 16
(b) 17.9
(c) 18.4
(d) 19
Ans. (b)

35. Lorenz curve enables one to study which of the following?
(a) Averages
(b) Dispersion
(c) Correlation
(d) Index numbers
Ans. (b)

36. Which one of the following is correct for a normal distribution?
(a) Standard deviation > Mean deviation> Quartile deviation
(b) Quartile deviation > Mean deviation > Standard deviation
(c) Mean deviation> Standard deviation > Quartile deviation
(d) Quartile deviation > Mean deviation > Standard deviation
Ans. (a)

37. Coefficient of correlation is independent of which of the following?
(a) Change of origin only
(b) Change of scale only
(c) Change of origin and scale
(d) None of the above
Ans. (c)

38. The Command Area Development Programme (CADP) has been renamed as which one of the following?
(a) Command Area Development and Water Management Programme
(b) Command Area Development and Forest Conservation Programme
(c) Command Area Development and Pollution Control Programme
(d) None of the above
Ans. (a)

39. Which one of the following indices satisfies both time reversal and factor reversal tests?
(a) Laspeyre’s index number
(b) Fischer’s index number
(c) Paasche’s index number
(d) Kelly index number
Ans. (b)

40. Which one of the following index numbers is based on geometric mean?
(a) Laspeyre’s index number
(b) Fischer’s index number
(c) Paasche’s index number
(d) Bowley’s index number
Ans. (b)

APPSC GROUP-2 INDIAN ECONOMY QUESTIONS

1. What does infant mortality rate refer to?
(a) The ratio of number of children who die before their fifth birthday out of every 1000 live births
(b) The ratio of number of children who die before their first birthday out of every 100 live births
(c) The ratio of number of children who die before their fifth birthday out of every 100 live births
(d) The ratio of number of children who die before their first birthday out of everyl000 live births
Ans. (d)

2. Which among the following is not a committed expenditure of the Government of India?
(a) Interest payments
(b) Pay and allowances
(c) Transfers to States and Union Territories
(d) Loans and advances to States and Union Territories
Ans. (d)

3. Consider the following statements:
A. Annual Survey of Industries (ASI) extends to the entire country
B. ASI covers all factories registered under Sections 2m (i) and 2m (ii) of the Factories Act 1948.
Which of the statements given above is/are correct?
(a) A only
(b) B only
(c) Both A and B
(d) Neither A nor B
Ans. (b)

4. Who was the Chairman of the committee appointed in 2006 for setting out a roadmap towards fuller capital account convertibility?
(a) S.S. Tarapore
(c) C. Rangarajan
(d) M. Narasimham
(d) O.P. Sodhani
Ans. (a)

5. In which of the following years, was the trade balance favorable to India?
(a) 1970-71 and 1974-75
(b) 1972-73 and 1976-77
(c) 1972-73 and 1975-76
(d) 1971-72 and 1976-77
Ans. (b)

6. Consider the following statements:
A. The Fifth Economic Census was conducted by CSO in the year 2007.
B. Intelligent Character Recognition (ICR) technology is being used for detailed processing of the data collected in the Fifth Economic Census.
Which of the statements given above is/are correct?
(a) A only
(b) B only
(c) Both A and B
(d) Neither A nor B
Ans. (b)

7. During which of the following years, average growth/rate (at constant prices) of agriculture and allied sectors negative?
(a) 2002-03
(b) 2003-04
(c) 2005-06
(d) 2006-07
Ans. (a)

8. Which of the following are the goals of Santa Shiksha Abhiyan (SSA)?
A. All children of 6-14 years age in school/EGS (Education Guarantee Scheme) Centre/bridge course by the year 2015.
B. Bridge all gender and social category gaps at primary stage by the year 2007 and at elementary education level by the year 2010.
C. Universal retention by the year 2020.
Select the correct answer using the codes given below:
(a) A and B
(b) B and C
(c) A and C
(d) A, B and C
Ans. (a)

9. Consider the following:
A. Kennedy Round of negotiations.
B. Uruguay Round of negotiations.
C. Tokyo Round of negotiations.
Which is the correct chronological sequence of the
above?
(a) A, B, C
(b) C, A, B
(c) A, C, B
(d) B, A, C
Ans. (a)

10. Why is demographic dividend likely to be manifested in India in future?
(a) Population in the age group between 8-15 years is likely to increase
(b) Population of children below 7 years is likely to increase
(c) Population in the age group of 15-64 years is likely to increase
(d) Population in the age group above 65 years is likely to increase
Ans. (c)

11. Which one of the following is not the target stipulated in the Tenth Five-Year Plan?
(a) Creating 50 million job opportunities
(b) Reduction in poverty ratio from 26 percent to 21 percent
(c) Reducing gender gaps in literacy and wages rates by 50 percent
(d) Doubling per capita income in 8 years
Ans. (d)

12. Consider the following items which are assigned weight in calculating wholesale price index in India
1. Primary articles
2. Fuel, power light and lubricants
3. Food products
4. Chemicals and chemical products
Which one of the following is the correct order of the above items in descending order in terms of their weight in the price index?
(a) 1-2-3-4
(b) 1-2-4-3
(c) 4-3-2-1
(d) 1-3-2-4
Ans. (b)

113. Consider the following components of financial saving of the household sector in India
1. Currency
2. Deposits
3. Shares and debentures
4. Insurance funds
Which one of the following is the correct order of the aforesaid items in descending order in terms of their contribution to the financial saving of the household sector in the year 2005-06?
(a) 1-2-3-4
(b) 2-1-3-4
(c) 2-4-1-3
(d) 4-2-l-3
Ans. (b)

14. What is the approximate share of SSIs in gross industrial value added in the Indian economy?
(a) 25%
(b) 30%
(c) 40%
(d) 45%
Ans. (d)

15.Consider the following sectors, contributing to India’s real GDP during the year 2005-06:
1. Agriculture and allied activities
2. Industry
3. Construction
4. Community social and personal services
Which one of the following is the correct descending order in respect of their contribution?
(a) 1-4-3-2 .
(b) 1-2-4-3
(c) 3-4-2-1
(d) 3-2-1-4
Ans. (c)

16. The 12th Finance Commission has recommended to bring down the revenue deficit of the centre and states to zero by which year?
(a) 2006- 07
(b) 2007- 08
(c) 2008- 09
(d) 2009 -10
Ans. (c)

17. In which of the following years, the share of FIL (net) flows into Indian economy was the highest?
(a) 1999-2000
(b) 2000-01
(c) 2003-04
(d) 2004-05
Ans. (d)

18. Among different items of import of capital goods to India during the year 2005-06, which one of the following was the highest in the value terms ?
(a) Machine tools
(b) Electronic goods including computer software
(c) Transport equipments
(d) Project goods
Ans. (a)

19. Among the items of export of agricultural and allied products from India during the year 2005-06, which one of the following was the highest in the value
(a) Tea
(b Coffee
(c) Rice
(d) Marine products
Ans. (c)

20. Consider the follow important sources of tax revenue for the Central Government
1. Corporation tax
2. Taxes on income other than corporation tax
3. Union excise duties
4. Service tax
Which one of the following is the correct order of the aforesaid taxes in descending order in terms of their yield as proposed in the Union Budget 2006-07?
(a) 1-2-3-4
(b) 1-3-2-4
(c) 2-3-1-4
(d) 4-2-3-1
Ans. (b)

21. The Twelfth Finance Commission has recommended States’ share in the divisible pool of taxes at what percentage?
(a) 26.5 percent
(b) 28.5 percent
(c) 29.5 percent
(d) 303 percent
Ans. (c)

22. Consider the following statements about the National Agricultural Insurance Scheme (NAIS):
1. The scheme has been implemented from Rabi 1999-2000 season.
2. The scheme is availab1a non-loanee farmers only.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(c Neither 1 nor 2
Ans. (a)

23. In the total deployment of gross bank credit, which one of the following sectors had the maximum share as in March, 2006?
(a) Agriculture and allied activities
(b) Services
(c) Personal loan
(d) Trade
Ans. (a)

24. As per use-based classification, which one of the following sectors had recorded highest growth in the year 2005-06?
(a) Basic goods
(b) Capital goods
(c) Consumer goods
(d) Intermediate goods
Ans. (b)

25. In which one of the following years, the National Food Processing Policy was formulated?
(a) 2003
(b) 2004
(c) 2005
(d) 2006
Ans. (c)

26. Consider the following statements:
Accelerated Irrigation Benefit Programme (AIBP) was modified in the year 2004 to provide
1. the central assistance in the form of 70 percent loan and 30 percent grant for non-special category states.
2. the central assistance in the form of 10 percent loan and 90 percent grant for special category states.
3. the central assistance in the form of conversion of the loan to grant if projects are completed on schedule.
Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 3
(c) 2 and 3
(d) 1, 2 and 3
Ans. (d)

27. The Command Area Development Programme (CADP) has been renamed as which one of the following?
(a) Command Area Development and Water Management Programme
(b) Command Area Development and Forest Conservation Programme
(c) Command Area Development and Pollution Control Programme
(d) None of the above
Ans. (a)

28. Consider the following statements:
A. The coverage of Integrated Child Development Programme is limited and often the youngest children in the 0-3 year age group get left out of its ambit.
B. According to ICMR, at any given time, 7-15% of Indian children suffer from mental disorder
Which of the statements given above is/are correct?
(a) A only
(b) B only
(c) Both A and B
(d) Neither A nor B
Ans. (b)

29. Which group of infrastructure industry has the highest gap in targets and achievements of production during the year 2006-07?
(a) Fished Steel
(b) Crude Petroleum
(c) Power
(d) Fertilizers
Ans. (a)

30. The National Horticulture Mission (NHM) has aimed at doubling the horticultural production. For this, the target year is
(a) 2010
(b) 2011
(c) 2012
(d) 2015
Ans. (c)

31 Consider the following agreements:
A. ISLFTA. (India -Sri Lanka Free Trade Agreement).
B. SAFTA (South Asia Free Trade Area).
C. CECA (Comprehensive Economic Co-operation Agreement between India and Singapore).
D. SAPTA (South Asia Preferential Trade Area).
Which one of the following is the correct chronological sequence of the above agreements?
(a) A, C, B, D
(b) D, A, B, C
(c) B, A, D, C
(d) A, B, C, D
Ans. (a)

32. Which region of India has the lowest Thermal Plant Load Factor (PLF) for thermal power generation in the year 2006-207?
(a) Northern
(b) Western
(c) North-Eastern
(d) Southern
Ans. (c)

33. Consider the following statements:
A. Varsha Bima, the rainfall insurance scheme, is managed by the Agricultural Insurance Company of India Ltd. (ATCIL).
B. The scheme was introduced during the 2007 south-west monsoon period.
Which of the statements given above is/are correct?
(a) A only
(b) B only
(c) Both A and B
(d) Neither A nor B
Ans. (a)

34. Thx on Banking Cash Transactions (withdrawals) over a certain threshold in a single day w introduced in the Union Budget of which year?
(a) 2002-03
(b) 2004-05
(c) 2005-06
(d) 2006-07
Ans. (c)

35. Who among the following has suggested migration to accrual accounting system from cash based accounting system in India?
(a) I.V. Reddy
(b) R.H. Patil
(c) D.N. Ghosh
(d) C. Rangarajan
Ans. (c)

36. In which of the following years was the tax revenue as a percentage of GDP the lowest?
(a) 2002-03
(b) 2003-04
(c) 2004-05
(d) 2005-06
Ans. (a)

37. Which one of the following is the proportion of rain-fed agriculture to the net sown area in India?
(a) 40%
(b) 50%
(c) 60%
(d) 72%
Ans. (a)

38. Consider the following statements about industrial relations on the basis of Economic Survey:
A. There was a constant decline in the number of strikes and lockouts during 2000-OS in India.
B. The maximum number of strikes and lockouts in the year 2006 were experienced by Kerala, followed by Tamil Nadu and West Bengal.
Which of the statements given above is/are correct?
(a) A only
(b) B only
(c) Both A and B
(d) Neither A nor B
Ans. (a)

39. What is a strategy which makes an all-out effort to provide the masses of people in India access to basic facilities such as health, education, clean drinking water, etc., termed as?
(a) Inclusive growth strategy
(b) Exclusive growth strategy
(c) Rapid growth strategy
(d) Balanced growth strategy
Ans. (a)

40. Which of the following sectors has the largest percentage share in India’s total exports for the period April 2006 October 2007?
(a) Chemicals and related goods
(b) Engineering goods
(c) Gems and jewellery
(d) Textiles including readymade garments
Ans. (b)

41. It Which sector has attracted highest FDI inflows during the period from August 1991 to September2006 (in % share)?
(a) Services sector
(b) Electrical equipments
(c) Telecommunications
(d) Transportation industry
Ans. (b)

42. Which one of the following statements is correct?
(a) External Debt / GDP ratio has declined consistently after the year 2003
(b) External Debt / GDP ratio has fluctuated after the year 2003
(c) External Debt/GOP ratio has increased after the year 2003
(d) External Debt/GDP ratio has remained constant after the year 2003
Ans (a)

43. NSSO regularly collects rural retail prices on monthly basis from selected markets for compilation of Consumer Price Index Number. Which one of the following is the correct pair of samples collected for the purpose?
(a) 403 villages and 39 urban centers
(b) 503 villages and 49 urban centers
(c) 603 villages and 59 urban centers
(d) 703 villages and 69 urban centers
Ans. (c)

44. Which one of the following is not proposed in the approach paper to the 11th Five Year Plan as important new social interventions?
(a) Provide freedom and resources to select institutions so that they attain global standards by the year 2011-12.
(b) Grant old age pension to the widows, handicapped and deserted and separated women.
(c) Ensure adequate representation of women in• elected bodies, State Legislatures, and the Parliament.
(d) Provide emergency obstetrics care facilities within 2 hours travel from every habitat.
Ans. (d)

45. Which of th€ following statements pertaining to the strategy to raise agricultural output during the 11th Five Year Plan, are correct?
A. Double the rate of growth of irrigated area.
B. Improve water management, rain water harvesting and watershed development.
C. Provide easy access to credit at affordable rates.
Select the correct answer using the codes given below:
(a) A and B
(b) B and C
(c) A and C
(d) A, B and C
Ans. (a)

46.. With one area of infrastructure is not included in Bharat Nirman Scheme (2005-09)?
(a) Irrigation
(b) Rural roads
(c) Rural health
(d) Rural housing
Ans. (c)

47. Which of the following is/are not monitorable target(s) for the 11th Five Year Plan?
A. Accelerate growth rate of GDP to 10% by the end of the plan and then maintain it in the 12th Five Year Plan.
B. Double per capita income by 201647.
C. Create 20 million new work opportunities.
Select the correct answer using the codes given below:
(a) A only
(b) B only
(c) C only
(d) B and C
Ans. (c)

APPSC GROUP-2 INDIAN ECONOMY QUESTIONS

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

1. International trade has been operating as a mechanism of international inequalities and has, therefore, retarded the development of less developed countries.

2. The strategy of import substitution as a means to achieve self-sufficiency in industrial production, has led to ma! allocation of resources and a very bad effect on industrial productivity.

Select the correct answer by using the code given below

(a) l only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Ans. (a)

2. If the supply of a commodity is very inelastic in the exporting country and demand for the same is fairly elastic in the importing country, the imposition of tariff will have which one of the following?

(a) A very large protective effect

(b) No protective effect at all

(c) A very large revenue effect

(d) A very small protective effect

Ans. (a)

3. If an Indian exporter exports to Bangladesh Rs. 50,000 worth of goods payable in three months, the balance of payment for India will show which one of the following?

(a) Current account credit goes up and capital account debit also goes up by Rs. 50,000 each

(b) Current account credit goes down and capital account debit goes up by Rs. 50,000 each

(c) Current account credit goes down and capital account debit also goes down by Rs. 50,000 each

(d) Current account credit goes up and capital account debit goes down by Rs. 50,000 each

Ans. (d)

4. Devaluation makes Balance of Payments worse in the short-run and then improves it in the long-run. What is this phenomenon known as?

(a) Marshall -Lerner condition

(b) J-curve effect

(c) Money illusion effect

(d) Backwash effect

Ans. (b)

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

(a) External assistance

(b) Foreign direct investment

(c) Borrowing from the IMF

(d) Commercial borrowings

Ans. (b)

6. Exchange rates are kept same in all the parts of market by using which one of the following?

(a) SDRs

(b) Arbitrage

(c) Fledging

(d) Speculation

Ans. (b)

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

will have which one of the following impacts in India?

(a) Make imports costlier and exports cheaper

(b) Will ha4e no effect on cost of imports

(c) Give protection to domestic industry against foreign competition

(d) Make imports cheaper and exports costlier

Ans. (d)

8. The inflationary impact of the inflow of foreign capital in

India is neutralized by the Reserve Bank of India by which

one of the following methods?

(a) Permitting outflow of foreign exchange

(b) Sale of securities in the open market

(c) Facilitating imports of essential commodities

(d) Permitting depreciation of Indian rupee in the foreign exchange market

Ans. (b)

9. Which one of the following is the correct sequence in the process of economic integration between different countries?

(a) Common market—Free trade area—Custom union— Economic union

(b) Free trade area—Custom union—Common market— Economic union

(c) Free trade area—Common market—Custom union— Economic union

(d) Common market—Free trade area—Economic union— Custom union

Ans. (b)

10. Under Gold Standard, how can a surplus in a country’s balance of payments be eliminated?

(a) By inflow of gold and a rise in general price level

(b) By outflow of gold and a rise in general price level

(c) By inflow of gold and a fall in general price level

(d) By outflow of gold and a fall in general price level

Ans. {d)

11. Which one of the following governs the theory which brings parity with respect to convertibility of currency into gold content?

(a) Mint parity of exchange

(b) Special Drawing Rights

(c) Floating exchange rate

(d) Multiple exchange rate

Ans. (a)

12. In order to reduce the balance of payment deficits of the member countries, which one of the following schemes was introduced by the World Bank in 1980?

(a) Buffer stock loans

(b) Supplementary loans

(c) Structural adjustment loans

(d) Gold loans

Ans. (c)

13. Special Drawing Rights (SDRs) introduced by the IMP are in which form?

(a) Gold

(b) Both silver and gold

(c) Paper currency

(d) Book-keeping entry only

Ans. (d)

14. Which one of the following does not constitute a part of the jurisdiction of WTO?

(a) Trade related tariff and non-tariff barriers

(b) Trade related intellectual property rights

(c) Agreement related to agriculture

(d) Regional trade agreements

Ans. (d)

15. Assertion (A) A balance of payments deficit is always and every where a monetary phenomenon.

Reason (R): A balance of payments deficit cannot be corrected through changes in money supply

Codes:

(a) Both A and R are individually true and R is the correct explanation of A

(b) Both A and R are individually true but R is not the correct explanation of A

(c) A is true but R is false

(d) A is false but R is true

Ans. (c)

16. Which one of the following is not a component of foreign aid of a country?

(a) Bilateral grant

(b) Multilateral grant

(c) Loans from international financial institutions

(d) Commercial borrowing

Ans. (d)

17. What is the assumption that economic growth will percolate down to all sectors, known as?

(a) Dispersal theory

(b) Trickle down theory

(c) Pump priming

(d) Decentralized growth theory

Ans. (b)

18. In plan models, which type of model is generally used to check consistency among various sectors?

(a) Harrod -Domar model

(b) Input-output model

(c) Linear programming model

(d) Solow model

Ans (b)

19. Consider the following A dual economy implies

1. the existence of domestic and export markets.

2. modern industry and commercial agriculture co-existing with subsistence farming and traditional handicrafts.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Ans. (b)

20. Theory of linkages is most appropriate for which kind of development models?

(a) Balanced growth models

(b) Unbalanced growth models

(c) Population growth models

(d) One sector growth models

Ans. (b)

21. With which one of the following is backward bending supply curve usually associated.

(a) Land

(b) Labour

(c) Capital

(d) Organisation

Ans. (b)

22. Which one of the following is the correct expression for the actual rate of growth (g)?

(a) g = s/c

(b) g = s x c

(c) g = s + c

(d) g =

Where s = the ratio of saving to income

c = actual incremental capital- output ratio

Ans. (a)

23. Inverted-U hypothesis of Kuznets is associated with movement of which one of the following?

(a) Consumption inequality

(b) Wealth inequality

(c) Income inequality

(d) Tax inequality

Ans. (c)

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

List-I List -II

(Model) (Proposition)

A. Marxist model of economic development 1.Give importance to

non-economic variables

B. Harrod-Domar growth model 2. Flexible capital-output ratio is assumed

C. Solow’s growth model 3. Productive capacity is equal to

aggregate demand

D. Kaldor’s growth model 4. Structural Mal –adjustment in a

growing economy

Code:

A B C D

(a) 4 2 3 1

(b) 1 3 2 4

(c) 4 3 2 1

(d) 1 2 3 4

Ans. (c)

25. Which one of the following is a component of disequilibrium mentioned often in the context of trade and development?

(a) Revenue gap

(b) Savings-investment gap

(c) Income gap

(d) Expenditure gap

Ans. (b)

26. The Feldman – Mahalanobis growth model, which one of the following strategies is followed?

(a) Emphasize the consumer goods first and then the investment goods

(b) Emphasize the investment goods first and consumer goods later

(c) Emphasize both the above sectors simultaneously

(d) Put emphasis on foreign trade only

Ans. (c)

27. Consider the following sectors:

1. Electrical Equipments

2. Service Sector

3. Food Processing Industries

4. Metallurgical Industries

Which one of the following is the correct sequence in ascending order in terms of their share in attracting FDI inflows in India?

(a) 4-3-2-1

(b) 1-2-3-4

(c) 2-1-3-4

(d) 1-2-4-3

Ans. (a)

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

(a) Labour productivity depends on level of nutrition

(b) Labour productivity is independent of number of labourers -

(c) Capital productivity is maximum

(d) Capital and labour productivities are equal

Ans. (b)

29. How is ‘Path dependency defined as?

(a) A condition of the past affecting the past situation

(b) A comparatively fast path of progress of economy

(c) A condition on which the past conditions of an individual or economy affects future condition

(d) A slow path of progress of the economy

Ans. (c)

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

1. Well-integrated commodity and money markets.

2. Highly developed transport facilities

3. Well-trained workforce and an efficient bureaucracy

4. Existence of a federal structure.

Select the correct answer by using the codes given below

(a) 1, 2, and 4

(b) 2, 3, and 4

(c) 1, 3, and 4

(c) 1, 2, and 3

Ans. (d)

31. What is the correct sequence of the Marxian stage theory of growth?

1. Slavery

2. Primitive Communism

3. Socialism

4. Communism

5. Feudalism

6. Capitalism

Select the correct answer by using the codes given below

(a) 1—2—3—4—5—6

(b) 2—1—5—6—3—4

(c) 1—2—5—6—3-4

(d) 2—1—5–6—4—3

Ans. (b)

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

(a) Capital structure of a country

(b) Accelerated capital accumulation for development

(c) A capitalistic system of economy

(d) Growth of capital expenditure

Ans. (b)

33. To make meaningful international comparisons of income and living standards, which one of the following is most appropriate?

(a) A measure of purchasing power parity

(b) A measure of per capita income

(c) An index of poverty

(d) An index of infrastructure development

Ans. (a)

34. If the Paasche’s index is 196 and Fishers’ index is 210, what is the value of the Laspeyre’ index?

(a) 220

(b) 215

(c) 225

(d) 230

Ans. (c)

35. consider the following statements

The coefficient of correlation.

1. is not affected by a change of origin and scale.

2. lies between —a and + ct

3. is a relative measure of linear association between two or more variables.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 and 3

(c) l and 3

(d)1, 2 and 3

Ans. (c)

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

X = 45, Median = 48, Coefficient of skew ness = — 0.3.

What is the value of standard deviation?

(a) 20

(b) 25

(c) 28

(d) 30

Ans. (d)

37. The first quartile derived from set of observations is 27 and its quartile deviation is 17. What is its third quartile?

(a) 59

(b) 61

(c) 65

(d) 57

Ans (b)

38. What is a cumulative percentage curve called?

(a) Frequency density curve

(b) Ogive curve

(c) Lorenz curve

(d) Frequency polygon

Ans. (b)

39. Assertion (A) : Fisher’s index number is an ideal one.

Reason (R) : In the Fisher’s index number, the upward bias of Laspeyre’s index and downward bias of Paasche’s index are balanced to a great extent.

Codes:

(a) Both A and Rare individually true and R is the correct explanation of A

(b) Both A and R are individually true but R is not the correct explanation of A

(c) A is true but R is false

(d) A is false but R is true -

Ans. (c)

40. Match List-I with List-II and select the correct answer using the code given below the lists:

List –I List-II

(Type of Unemployment) (Associated Fact)

A. Frictional Unemployment 1.Non-availability of job

B. Structural Unemployment 2. Marginal productivity is zero

C. Seasonal Unemployment 3. Use of obsolete technology for production

D. Disguised Unemployment 4. Population pressure on land

Code:

A B C D

(a) 4 2 1 3

(b) 1 3 4 2

(c) 4 3 1 2

(d) 1 2 4 3

Ans. (b)

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

(a) Rural male

(c) Urban male

(b) Rural female

(d) Urban female

Ans. (a)

42. Which one of the following committees was set up to review the concept of poverty line?

(a) S. Chakravarty Committee

(b) D.T, Lakdawala Committee

(c) K.N. Wanchoo Committee

(d) R.C. Dust Committee

Ans. (b)

43. Which one of the following countries has the highest life expectancy at birth?

(a) Pakistan

(b) India

(c) Nepal

(d) Sri Lanka

Ans. (d)

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

(a) 23.3%

(b) 25.7%

(c) 27.8%

(d) 28.9%

Ans. (c)

45. Which category of the target groups is not included in the SHG bank linkage programme for micro-finance to agriculture?

(a) Unemployed non-agricultural labourers

(b) Agricultural and non-agricultural labourers

(c) Small and marginal farmers

(d) Artisans and craftsmen

Ans. (a)

46. Consider the following components of money supply in India

1. Currency in circulation.

2. Banker’s deposits with the RBI

3. Other deposits with the RBI

4. Demand deposits of banks

Which of the above are the components of Reserve Money?

(a) l and 3

(b) l, 2 and 3.

(c) 1, 2 and 4

(d) 2, 3 and 4

Ans. (B)

47. Consider the following statements for Indian Millennium Deposits (IMDs) scheme.

1. The scheme was launched by the Reserve Bank of India.

2. It was intended for NRIs and resident Indians both.

3. The tenure of IMDs was 5 years.

Which of the statements given above is/are correct?

(a) 3 only

(b) 2 only

(c) 1 and 2

(d) 2 and 3

Ans. (a)

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

1. This plan has specific monitorable targets in respect of poverty.

2. Decline in incremental capital-output ratio is to be achieved through creating new capacities.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both

(d) Neither 1 nor 2

Ans. (a)

49. In which of the following y was the highest growth of general index of industrial production in India registered?

(a) 2001-02

(b) 2002-03

(c) 2003-04

(d) 2004-05

Ans. (d)

50. Growth rate in NNP at factor cost (at constant prices) has been highest during which Five-Year Plan?

(a) Ninth Plan

(b) Eighth Plan

(c) Seventh Plan

(d) Fifth Plan

Ans. (b)

APPSC GROUP-2 INDIAN ECONOMY (MACRO ECONOMICS) QUESTIONS

1. Assertion (A): An oligopolist faces demand curve which has a kink at the level of the prevailing price.

Reason (R): The segment of the demand curve above the prevailing price level or kink is highly inelastic and the segment of the demand curve below the prevailing price level is elastic.

Codes:

(a) Both A and R are individually true and. R is the correct explanation of A

(b) Both A and It are individually true but R is not the correct explanation of A

(c) A is true but R is false

(d) A is false but R is true

Ans. (c)

2. Consider the following statements relating to marginal rate of technical substitution (MRTS).

1. The MRTS in case of an isoquant measures the rate at which one input is substituted for the other.

2. The M of input X for input Y at a point on an isoquant is equal to the positive slope of the isoquant at that point.

3. The MRTS equals to the ratio of the marginal product of input V to the marginal product of input X.

Which of the statements given above are correct?

(a) 1 and 2

(b) 2 and 3

(c) 1 and 3

(d) 1, 2 and 3

Ans. (c)

3. When is an isoquant L – shaped?

(a) When the two factors are complementary

(b) When the two factors are perfect substitutes

(c) When the two factors are used in fixed proportions

(d) When the two factors are imperfect substitutes

Ans. (c)

4. A firm’s average total cost is Its 60, its average variable cost is Rs. 55 and its output is 50 units. What is its total fixed cost?

(a) Less than Rs. 200

(b) Between Rs. 200 and Rs. 300

(c) More than Rs. 300

(d) Firm has no fixed cost

Ans. (c)

5. Under constant returns to scale, which one of the following is the nature of the long -run average cost curve?

(a) Parallel to output axis

(b) Upward rising

(c) Downward sloping

(d) Identical to short-run average cost curve

Ans. (a)

6. In the figure shown below, MN and QR are two straight line demand curves parallel to each other.

Consider the following statements

1. The slope and elasticity of demand is same on the demand curves MN and QR, at the price P0

2. The slopes are same but elasticity of demand is more on demand curve MN than demand curve QR, at price

3. Elasticities of demand are same but slope of demand curve MN is less than that of QR at the price P

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) 1 and 3

(d) 2 and 3

Ans. (b)

7. When the negative income effect is greater than substitution effect, it is the case of which one of the following?

(a) Giffen goods

(b) Inferior goods

(c) Luxury goods

(d) Normal goods

Ans. (d)

8. Which one of the following statements is correct?

Consumption possibility frontier is same as

(a) the indifference curve

(b) the budget line

(c) the production possibility frontier

(d) the demand curve

Ans. (b)

9. Which one of the following statements is not correct?

(a) Normal goods have a positive income elasticity of demand

(b) Inferior goods have a negative income elasticity of demand

(c) Necessity has an income elasticity of demand that is less than one

(d) Luxury goods have an income elasticity of demand that is equal to one

Ans. (d)

10. A firm has certain initial equilibrium price, when demand function QD = 50 — 3P and supply function is 20 + 3P. If the firm’s demand function is shifted to C = 68 — 3P, what is the initial equilibrium price and the new equilibrium price, respectively?

(a) 5 and 6

(b) 5 and 8

(c) 6and 8

(d) 8 and 5

Ans. (b)

11.Cournot model assumes which of the following?

1. There are two firms operating in the market.

2. The firms face a kinked demand curve.

3. Each firm acts on the assumption that their competitors

will not react to her decision to change output.

Select the correct answer by using the code given below

(a)

(b) 2 and 3

(c) l and 3

(d)1, 2 and 3

Ans. (c)

12. Which one of the following statements is correct?

The Sweezy mode of oligopoly assumes that price elasticity of demand

(a) is higher for a price increase than for a price decrease

(b) is lower for a price increase than for a price decrease

(c) cannot change for a price increase or price decrease

(d) cannot change for a price decrease

Ans. (a)

13. Which one of the following statements is correct?

(a) Demand for factors of production is an independent demand

(b) Demand for factors of production is a derived demand

(c) Demand for factors of production is a reciprocal demand

(d) Demand for factors of production is same as the demand for commodities

Ans. (b)

14. What is the principle which is applied to redress the imbalance between distribution and welfare, known as?

(a) Principle of taxation

(b) Compensation principle

(c) Principle of effective demand

(d) Principle of supply

Ans. (b)

15. The inconsistency of which one of the following criteria is labelled as Scitovsky Paradox?

(a) Little Criterion

(b) Pareto Criterion

(c) Bergson Criterion

(d) Kaldor Flicks Criterion

Ans. (d)

16. consider the following statements

The distribution of two commodities between two individuals is Pareto optimal if

1. one individual cannot be made better off without making the other worse off.

2. the individuals are on their consumption contract curve.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Ans. (c)

17. What is maximizing the level of satisfaction with the given level of inputs and technology, called?

(a) Technical efficiency

(b) Allocative efficiency

(c) Economics of scale

(d) X- efficiency

Ans. (d)

18. Which one of the following statements is correct? An increase in money supply in Keynesian framework results in

(a) a higher level of income and a higher rate of interest

(b) a lower level of income and a lower rate of interest

(c) a higher level of income and a lower rate of interest

(d) a lower level of income and a higher rate of interest

Ans. (c)

19. Which one of the following statements is correct?

A fall in the money supply results in the

(a) rightward shift in the IS curve

(b) rightward shift in the LM curve

(c) leftward shift in both the LM curve and the IS curve

(d) leftward shift in the LM curve only

Ans. (d)

20. Which one of the following statements is correct?

The IS function indicates the

(a) locus of the money market equilibrium

(b) locus of the commodity market equilibrium

(c) locus of the labour market equilibrium

(d) locus of both money and labour market equilibrium

Ans. (b)

21. Which one of the following statements is correct? According to Keynes, fresh investment would be possible only if

(a) the marginal efficiency of capital exceeds the rate of interest

(b) the marginal efficiency of capital is less than the rate of interest

(c) the marginal efficiency of capital is positive

(d) the marginal efficiency of capital is negative

Ans. (a)

22. Which one of the following statements is correct?

Autonomous investment is

(a) functionally related to interest rate

(b) functionally related to both income and interest rate

(c) functionally related to income alone

(d) independent of income and interest rate

Ans. (d)

23. Consider the following statements

1. The MPC is higher in a poor country and lower in a rich country.

2. Higher the MPC, higher will be the value of multiplier.

3. Lower the M lower will be the value of multiplier.

Which of the statements given above are correct?

(a) 1 and 2

(b) 1 and 3

(c) 2 and 3

(d) 1 2 and 3

Ans. (a)

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

List – I List -II

(Economist) (Concept)

A. A. C. Pigou 1. Liquidity Preference

B. J.M. Key 2. Real Balance Effect

C. J.R. Hicks-A.H. Hansen 3. Ratchet Effect

D. J.S. Duesenberry 4. IS-LM Analysis

Code:

A B C D

(a) 2 1 4 3

(b) 4 3 2 1

(c) 2 3 4 1

(d) 4 1 2 3

Ans. (a)

25.

In the diagram given above, which one of the following is indicated by the point A lying below the IS curve?

(a) Excess demand in the commodity market

(b) Excess supply in the money market

(c) Excess supply in the commodity market

(d) Equilibrium income and interest

Ans (a)

26. In the. permanent income hypothesis of consumption, components ‘of which one pair has a proportional relationship?

(a) Permanent income and transitory income

(b) Permanent income and transitory consumption

(c) Permanent income and permanent consumption

(d) Transitory income and transitory consumption

Ans (c)

27. Which one of the following statements is correct? Crowding our in an economy can be avoided if

(a) government finances its expenditure by new money supply

(b) government finances its expenditure by taxes

(c) government finances its expenditure by buying outstanding bonds

(d) government finances its expenditure by raising cash reserve ratio

Ans. (c)

28. Which one of the following statement is correct?

According to Say’s law of market.

(a) demand creates its own supply

(b) supply creates its own demand

(c) demand and supply are always equal

(d) demand and supply are never equal

Ans. (b)

29. Which one of the following statements in respect of the National Income Accounting is correct?

(a) Budget deficit is equal to savings-invest gap

(b) Budget deficit is more than savings-investment gap

(c) Budget deficit is less than savings-investment gap

(d) Budget deficit is always zero

Ans. (d)

30. Which of the following is/are included in National Income Accounting?

1. Purchase of shares and bonds.

2. Value of residential investment.

3. Value of production for self consumption.

4. Value of intermediate goods.

Select the correct answer by using the codes given below:

(a) l and 2

(b) 2 only

(c) 2 and 3

(d) 3 and 4

Ans. (c)

31. Consider the following statements

1. The equilibrium between the aggregate demand and aggregate supply may take place at a point of less-than-full employment in an economy.

2. The .size of deficient demand is inversely proportional to the deflationary gap.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2only

(c) Both 1 and 2

(d) Neither 1 nor 2

Ans. (a)

32. Assertion (A) : Gross National Product will always be more than the Gross Domestic Product.

Reason (R): To get Gross National Product, not factor income from abroad is added to Gross Domestic product

Codes:

(a) Both A and R are individually true and R is the correct explanation of A

(b) Both A and R are individually true but R is not the correct explanation of A

(c) A is true but R is false

(d) A is false but R is true

Ans. (d)

33. what is the empirically fitted relationship between the rate of change of money wages and rate of unemployment, known as?

(a) Baumal’s Hypothesis

(b) Keynesian Model

(c) Friedman’s Model

(d) Phillip’s Curve

Ans. (d)

34. In the simplified version of Friedman’s quantity theory of money, velocity of circulation of money depends on which of the following?

(a) Rate of interest and rate of price change

(b) Rate of interest and rate of change of income

(c) Rate of change of money supply and rate of change of consumption

(d) Rate of change of price and rate of: change of investment

Ans. (b)

35. Consider the following assets

1. Cash held by public

2. Equity shares of banks

3. Deposits of banks

4. RBI bonds

Which of the above assets are considered as part of money supply?

(a) 1 and 2

(b) 1 and 3

(c) 2 and 3

(d) 1, 3 and 4

Ans. (b)

36. which one of the following is stated by the quantity theory of money?

(a) An increase in the nominal money supply causes a proportional increase in the price level

(b) An increase in the real money supply causes a proportional increase in the price level

(c) An increase in the nominal money supply causes a proportional increase in real GNP

(d) An increase in the real money supply causes a proportional increase in real GNP

Ans. (a)

37. Consider the following statements

1. Bond price and interest rate are positively related.

2. Bond price and interest rate are negatively related.

3. Credit creation varies directly with Cash Reserve Ratio (CER).

4. Credit creation varies inversely with Cash Reserve Ratio (CRR).

Which of the statements given above are correct?

(a) 1 and 2

(b) 1 and 4

(c) 2 and 3

(d) 2 and 4

Ans. (d)

38. Suppose, due to an open market purchase of government securities, reserves in the commercial banks increase by Rs. 1,000. If the reserve ratio is 20 percent, what will be the increase in money supply?

(a) Its. 5,000

(b) Rs. 4,000

(c) Rs. 2,000

(d) Rs. 1,000

Ans. (c)

39. Which one of the following is not a component of demand-pull inflation?

(a) An increase in government expenditure with no change in tax rate

(b) A downward shift h savings function

(c) A rise in the money wage rate

(d) An upward shift of investment function

Ans. (c)

40. Assertion (A) Indirect taxes promote inequality in the distribution of income.

Reason (R): Poor bear more burden of indirect taxes.

Codes:

(a) Both A and Rare individually true and R is the correct explanation of A

(b) Both A and R are individually true but R is not the correct explanation of A

(c) A is true but R is false

(d) A is false but R is true

Ans. (a)

41. which one of the following statements is correct?

According to Peacock and Wiseman, public expenditure grows

(a) steadily over a period of time

(b) at a. constant rate in relation to GNP

(c) in a step by step manner

(d) at a lower rate in relation to GNP

Ans. (c)

42. As compared to traditional budgeting, in case of Performance and Programme Budgeting System (PPBS), which one of the following statements is correct?

(a) It stresses on outcome only

(b) It stresses on expenditure allocation only

(c) It stresses more on outcome and less on expenditure allocation

(d) It stresses less on outcome and more on expenditure allocation

Ans. (c)

43. Which one of the following statements is coned?

Zero-base budgeting implies that

(a) it emphasizes physical targets rather than financial targets

(b) spending on all programmes is re-examined and justified each year rather than following add-on every year

(c) it is purely an evaluation of existing budget and there is nothing new in it

(d) it focuses on centralization of expenditure

Ans. (b)

44. Which one of the following statements is correct?

The revenue from the imposition of an advolarem tax and that of a unit tax in a perfectly competitive market which results in the same price rise, are

(a) more for advolarem tax

(b) more for unit tax

(c) equal for both the taxes

(d) zero for both the taxes

Ans. (c)

45. in which one of the following groups of taxes, do impact and incidence of tax coincide?

(a) Income tax and corporation tax

(b) Income tax and excise duties

(c) Corporation tax and custom duties

(d) Excise duties and sales tax

Ans. (a)

46. The concept of optional taxation, based on whatever criteria, has to. cover decision-making at which of the following levels?

1. The aggregate amount of taxations and its division between direct and indirect taxations.

2. The composition and rate schedules of direct and indirect taxes.

3. The composition and revenue schedules of indirect taxes.

4. The composition and revenue schedules of direct taxes.

Select the correct answer by using the code given below:

(a) 1 and 4

(b) 1 and 3

(c) 1 and 2

(d) 2, 3 and 4

Ans. (c)

47. According to Cohn Clark, what is taxable capacity?

(a) 20 percent of National income

(b) 25 percent of National Income

(c) 30 percent of National Income

(d) 35 percent of National Income

Ans. (b)

48. Which one of the following is not the Canon of taxation as stated by Adam Smith?

(a) Canon of equality

(c) Canon of convenience

(b) Canon of certainty

(d) Canon of productivity

Ans. (d)

49. Which curve shows that how much of its import commodity is required by a nation in exchange for various quantities of its export commodity?

(a) Offer curve

(b) indifference curve

(c) Demand curve

(d) Production possibility curve

Ans. (a)

50. Which of the following is/are correct in respect of opportunity cost theory?

1. A straight line production possibility curve indicates constant opportunity cost.

2; The production possibility curve under increasing cost would be concave to the origin.

Select the correct answer by using the code given below:

(a) l only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Ans. (c)