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MH SET 2019: 23 June, Paper II, Economics

  • Date: 23 June 2019
  • Paper code: JUN-11219
  • Series: A
  • Language: Bilingual
  • 48 pages
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Test Booklet Code & Serial No.
                                                                                                                     A
                                                               ECONOMICS
Signature and Name of Invigilator                                                                 Seat No.
1. (Signature) .........................................                                                   (In figures as in Admit Card)
      (Name) ................................................                     Seat No. ..............................................................
2. (Signature) .........................................                                                    (In words)

      (Name) ................................................                       OMR Sheet No.
JUN - 11219                                                                                          (To be filled by the Candidate)
Time Allowed : 2 Hours]                                                                                [Maximum Marks : 200
Number of Pages in this Booklet : 48                                                    Number of Questions in this Booklet : 100
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           will carry two marks. All questions of Paper II will be compulsory.     2.
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JUN - 11219/II—A




2
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JUN - 11219/II—A
                                   Economics
                                     Paper II


                                                      II
Time Allowed : 120 Minutes]                          [Maximum Marks : 200
Note : This Paper contains Hundred (100) multiple choice questions. Each question
       carrying Two (2) marks. Attempt All questions.
                              (100)                                           (2)



1.   Consider the pair of goods X and Y.         1.
     It is observed that when price of Y
     falls the demand for X rises. Which
     one of the following options would
     you choose regarding the nature of
     these goods ?                                     (A)
     (A) They are complementary goods
                                                       (B)
     (B) They are substitute goods
                                                       (C)
     (C) They are giffen goods
     (D) They are inferior goods                       (D)
2.   Read the following statements and           2.
     find out if they are correct or
     incorrect :
                                                       (i)
     (i) When average total cost in the
          short run is at its minimum, the
          corresponding marginal cost is
          also minimum.                                (ii)
     (ii) The average fixed cost during
          the short run is U shaped curve.
                                                       (A)
     (A) Both are correct
                                                       (B) (i)     (ii)
     (B) (i) is correct, (ii) is incorrect
     (C) Both are incorrect                            (C)
     (D) (i) is incorrect, (ii) is correct             (D) (i)   (ii)

                                             3                             [P.T.O.
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3.   Uncertainty           influences        the       3.

     estimation of costs, revenues and
     hence the ...............

     (A) profits of the firm                                (A)

     (B) decisions of the firm                              (B)

     (C) investments of the firm                            (C)

     (D) insurance policy of the firm                       (D)

4.   A ........... game is one in which it is          4.

     not possible to commit to strategies.

     (A) Co-operative                                       (A)

     (B) Non-co-operative                                   (B)

     (C) Zero sum                                           (C)

     (D) Competitive                                        (D)

5.   Under Cournot duopoly model, the                  5.
     equilibrium price is ................

     (A) indeterminate                                      (A)

     (B) equal to competitive price                         (B)

     (C) equal to monopoly price                            (C)

     (D) more than competitive price                        (D)
          and less than monopoly price


                                                   4
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6.   The backward bend in the shape of                    6.

     supply curve of labour is caused

     by :

     (A) cost of labour                                        (A)

     (B) attitude of individuals towards                       (B)

            work and leisure

     (C) demand for labour                                     (C)

     (D) factor market                                         (D)

7.   According to Dorfman, Samuelson                      7.

     and Solow, general equilibrium

     analysis becomes .................... if it is

     not known whether an economic

     system can attain a general

     equilibrium.
                                                               (A)
     (A) Practically useless

                                                               (B)
     (B) Practically useful

                                                               (C)
     (C) Perfectly applicable

     (D) Impossible                                            (D)

                                                      5                        [P.T.O.
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8.   According to the Kaldor-Hicks                   8.
     compensation criterion, a change in
     economic policy leads to an
     improvement in social welfare if
     ...........
                                                          (A)
     (A) The losers do not oppose the
             change

     (B) The             gainers   can    just            (B)

             compensate the losers

     (C) The gainers can compensate the
                                                          (C)
             losers for their loss and still
             remain better-off themselves
             than before

     (D) The gainers and losers get
                                                          (D)
             compensation          from   the
             government

9.   Moral hazards are also a result                 9.
     of ...................

     (A) Symmetric information                            (A)

     (B) Lack of information                              (B)

     (C) Asymmetric information                           (C)

     (D) Perfect information                              (D)

                                                 6
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10. Social welfare function was first          10.
    introduced by :

    (A) Adam Smith                                   (A)

    (B) Joan Robinson                                (B)

    (C) Nicholas Kaldor                              (C)

    (D) Bergson                                      (D)

11. Which of the following is neither a        11.                       IS   LM
    determinant of the slope of IS curve
    nor of the LM curve ?

    (A) Elasticity of interest rates to
         investment                                  (A)
    (B) Elasticity of money demand to
                                                     (B)
         income

    (C) Elasticity of demand to interest
         rate                                        (C)
    (D) Elasticity     of   income   to
                                                     (D)
         investment

12. To achieve a rise in income of ` 500       12.         ` 500
    crores given that the marginal                                 0.2
    propensity to save (MPS) as 0.2, how
    much autonomous investments are
    needed in the Keynesian model ?
                                                     (A) ` 100
    (A) ` 100 crores
                                                     (B) ` 1000
    (B) ` 1000 crores
                                                     (C) ` 400
    (C) ` 400 crores

    (D) ` 500 crores                                 (D) ` 500

                                           7                                  [P.T.O.
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13. In an economy, high powered money          13.
    is equal to :

    (A) Monetary liabilities of central
                                                     (A)            +
        bank + government money

    (B) Monetary liabilities of central
        bank – government money                      (B)            –

    (C) Monetary liabilities of central
        bank + foreign exchange
                                                     (C)            +
        reserves

    (D) Monetary liabilities of central
                                                     (D)            –
        bank – foreign exchange
        reserves

14. According       to   the   Rational        14.
    Expectations Hypothesis, there is no
    trade off between inflation and
    unemployment because :
                                                     (A)
    (A) Wages are rigid downwards
                                                     (B)
    (B) Prices are rigid downwards
                                                     (C)
    (C) People anticipate changes in
        money supply and accordingly
        adjust the prices and wages

    (D) People make biased forecasts                 (D)
        about the future of economy
        based on available information

                                           8
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15. Gross National Product = Gross               15.               =

    Domestic Product + ..............                        +


    (A) Depreciation                                   (A)


    (B) Inflation                                      (B)


    (C) Net factor incomes from abroad                 (C)


    (D) Factor costs                                   (D)


16. The Non-Accelerating Inflation Rate          16.

    of Unemployment (NAIRU) is                         (NAIRU)

    defined as :
                                                       (A)

    (A) Inflation rate is always zero
                                                       (B)
    (B) Actual inflation rate exceeds the

         expected inflation rate

                                                       (C)
    (C) Actual inflation rate is less than

         the expected inflation rate


    (D) Actual inflation rate equals the               (D)

         expected inflation rate


                                             9                             [P.T.O.
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17. The total consumption divided by                   17.
     the total income is known as ..........

     (A) Average propensity to consume                       (A)
     (B) Marginal propensity to consume                      (B)
     (C) Marginal propensity to save                         (C)
     (D) Average propensity to save                          (D)
18. Stagflation is a period of ............            18.
     (A) High        inflation   and     high
          unemployment
                                                             (A)
     (B) High inflation
                                                             (B)
     (C) High unemployment
                                                             (C)
     (D) Low        inflation    and     high
          unemployment                                       (D)

19. If the economy is in expansaionary                 19.
     phase of business cycle, aggregate
     demand is likely to be ..............,
     unemployment is likely to be ............,
     inflation is likely to be ............ and
     the current account balance of
     payments likely to be moving
     towards ..............                                  (A)
     (A) rising, falling, rising, deficit
                                                             (B)
     (B) static, low, rising, deficit
                                                             (C)
     (C) falling, falling, falling, surplus

     (D) falling, rising, falling, surplus                   (D)

                                                  10
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20. The investment demand curve                  20.
    shows the relationship between the
    following two variables :
                                                       (A)
    (A) Investment and consumption
    (B) Consumption and interest rate                  (B)
    (C) Investment and interest rate
                                                       (C)
    (D) Investment and demand for
        goods                                          (D)
21. Logit and Probit models are used to          21.
    analyze data that are :
    (A) Binary
                                                       (A)
    (B) Continuous
                                                       (B)
    (C) Missing
                                                       (C)
    (D) Used to analyze business cycles
        exclusively                                    (D)
22. If X1, X2, .........., Xn is a random        22.         X1, X2, ............, Xn   µ
    sample from a normally distributed                  2
    population with mean µ and variance
      2 , then the following follows a
    standard normal distribution :
                                                                              (Standard normal)
          X        u
    (A)        2
                                                               X        u
                                                       (A)          2
                        2
          (X       u)
    (B)            2
                                                               (X       u)2
                                                       (B)              2
                   2
                                                                        2
    (C)
          (X       u)2                                 (C)
                                                               (X       u)2
          X        u                                           X        u
    (D)                                                (D)
              / n                                                  / n

                                            11                                              [P.T.O.
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23. Suppose Yi =         + Xi + ei is a linear        23. Yi =      + Xi + ei
    regression model. Goldfeld-Quandt
    test is a test of :
    (A) Autocorrelation
                                                            (A)
    (B) Data mistakes
                                                            (B)
    (C) Heteroscedasticity
                                                            (C)
    (D) Correlation between X and Y
                                                            (D) X
24. The following is the formula for                  24.
    Pearson’s coefficient of correlation :
          Covariance(X, Y)                                        Covariance(X, Y)
    (A)
                    X   Y                                   (A)
                                                                               X       Y
          Covariance(X, Y)                                        Covariance(X, Y)
    (B)             2   2
                                                            (B)
                    X   Y                                                      2       2
                                                                               X       Y
             2
             X                                                      2
    (C)      2
                 Covariance(X, Y)                                   X
                                                                        Covariance(X, Y)
             Y                                              (C)     2
                                                                    Y
            2                            2
    (D)           Covariance(X, Y)                                  2                                 2
            X                            Y                  (D)     X        Covariance(X, Y)         Y
25. If Y1               Xi   ei   is a linear
                                                      25.               Y1                 Xi   ei
    regression model and there is serial
    correlation among the error terms,
    then :
                                                            (A) ˆ                  ˆ
    (A) OLS estimators are unbiased
          and efficient
    (B) OLS estimators are unbiased                                            ˆ
                                                            (B) ˆ
          but not efficient
    (C) OLS estimators are wrong
                                                            (C) ˆ                  ˆ
    (D) OLS estimators cannot be
                                                            (D) ˆ              ˆ
          calculated

                                                 12
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                 x3                                                               x3
26. Let y                    . What is the limit        26.           y                                y
             ( x2       1)                                                    (x2          1)

    of y as x           1 ?                                         x         1

    (A) 2                                                     (A) 2

    (B) 0                                                     (B) 0

    (C) 1                                                     (C) 1

    (D) 3                                                     (D) 3

             2      1                                                     2       1
27. If A =              , what would be the             27.         A=                 ,
             0      2                                                     0       2

    value of determinant A ?

    (A) 4                                                     (A) 4

    (B) 2                                                     (B) 2

    (C) 0                                                     (C) 0

    (D) 1                                                     (D) 1

28. In a static optimization problem                    28.
    with an equality constraint, the
    Lagrange multiplier,             is :
                                                              (A)
    (A) Always less than zero
                                                              (B)
    (B) Greater than zero
                                                              (C)
    (C) Always zero

    (D) All the above                                         (D)


                                                   13                                                [P.T.O.
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                          2   1   0                                                2    1   0

29. Suppose       A= 0        2   0   while        29.                     A= 0         2   0 ,

                          1   1   1                                                1    1   1

         2    0       1                                        2   0       1

    B= 0      0       1 . Then what would                B= 0      0       1           A – B
         0    1       1                                        0   1       1

   be A – B ?

         0        1       1                                    0       1       1

   (A)   0    2           1                              (A)   0   2           1

         1    0           0                                    1   0           0


         2    0       0                                        2   0       0

   (B)   1    1       1                                  (B)   1   1       1

         1    0       1                                        1   0       1


         2    1       1                                        2   1       1

   (C)   1    2       1                                  (C)   1   2       1

         1    0       0                                        1   0       0


         2    0       0                                        2   0       0
   (D)   0    1       0                                  (D)   0   1       0

         0    0       0                                        0   0       0


                                              14
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             2     1                                                2    1
30. If A =                                         30.         A=                    A
                       , the characteristic
                                                                             ,
             1     2                                                1    2
                                                                        (Characteristic roots)
    roots of A are :

    (A) (1, 1)
                                                         (A) (1, 1)
    (B) (1, 3)                                           (B) (1, 3)
    (C) (–1, –3)                                         (C) (–1, –3)

    (D) (–1, –1)                                         (D) (–1, –1)

31. Let y    K L be the Cobb-Douglas               31.         y    K L
    production function. Then,
    measures :
                                                         (A)
    (A) Elasticity of output with respect
         to labour                                       (B)

    (B) Elasticity of output w.r.t. capital

    (C) Marginal product of labour                       (C)

    (D) Marginal product of capital                      (D)

32. Identify the non-tariff barrier from           32.
    the following :

    (A) Ad valorem duty                                  (A)

    (B) Specific duty                                    (B)

    (C) Compound duty                                    (C)

    (D) Voluntary export restraint                       (D)

                                              15                                           [P.T.O.
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33. Dumping aims at flooding foreign             33.

    country with ................

    (A) High priced goods                              (A)

    (B) Low priced goods                               (B)

    (C) Specialized goods                              (C)

    (D) Monopoly goods                                 (D)

34. The managed float was formally               34.

    recognized in ...............

    (A) Geneva Accord                                  (A)

    (B) Jamaica Accord                                 (B)

    (C) Washington Accord                              (C)

    (D) London Accord                                  (D)

35. Tariff on agricultural and industrial        35.

    goods imposed by US during great

    depression is commonly known as :
                                                       (A)
    (A) The Smoot-Hawley Tariff
                                                       (B)
    (B) The Smith-Hawley Tariff
                                                       (C)
    (C) Herbert-Hoover Tariff
                                                       (D)
    (D) The Johnson-Hawley Tariff

                                            16
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36. Factor price equalization theorem          36.

    propounded by Heckscher states that

    factor prices in two countries get

    equalized in the long-term due

    to ..................


    (A) difference in opportunity cost               (A)

    (B) comparative advantage
                                                     (B)

    (C) free trade based on comapara-
                                                     (C)
           tive advantages


    (D) absolute advantage                           (D)


37. Mercantilism was based on the              37.

    ideology of ................


    (A) Rapid industrialization                      (A)


    (B) Economic nationalism                         (B)


    (C) Free trade                                   (C)


    (D) Economic expansionism                        (D)

                                          17                         [P.T.O.
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38. When a country can import more                       38.

    with a given quantity of exports, the
    terms of trade are said to be ...............

    (A) deteriorating terms of trade                           (A)

    (B) improving terms of trade                               (B)

    (C) income terms of trade                                  (C)

    (D) double factor terms of trade                           (D)

39. Converting your local financial                      39.
    assets into foreign financial assets
    at the market determined exchange
    rate is called ............

    (A) Reserve Account                                        (A)

    (B) American Depository Receipts                           (B)

    (C) Capital Account Convertibility                         (C)

    (D) Current Account Convertibility                         (D)

40. IMF’s changed outlook on putting                     40.
    back the controls on capital account
    came after :
                                                               (A)
    (A) The subprime crisis
                                                               (B)
    (B) Greece debt crisis

    (C) South-East Asian Crisis                                (C)

    (D) Oil crisis                                             (D)

                                                    18
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41. Edgeworth Box allows the study of                 41.

     the intersection of :


     (A) two individuals trading two
                                                            (A)

          different goods


     (B) two     individuals trading one
                                                            (B)
          good
                                                            (C)
     (C) one individual trading two

          different goods


     (D) two countries trading two sets                     (D)


          containing several goods


42. To service public debt .............. must        42.

     be paid.


     (A) fees                                               (A)


     (B) fine                                               (B)


     (C) interest                                           (C)


     (D) tax                                                (D)

                                                 19                         [P.T.O.
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                                                   43.
43. A domestically held public debt is

    the debt that ...............                        (A)

    (A) we owe to the World Bank
                                                         (B)
    (B) we owe to the Central Bank

    (C) we owe to Government                             (C)

    (D) we owe to ourselves                              (D)

44. Public debt accumulation may be so             44.

    drastic as to lead to ............

    (A) fiscal breakdown                                 (A)

    (B) loss of profit in the public sector              (B)

    (C) loss of revenue                                  (C)

    (D) break-even point                                 (D)

45. According to the principle of                  45.
    intergenerational equity, the burden

    of today’s public expenditures must
    be borne by ............
                                                         (A)
    (A) Present Generation
                                                         (B)
    (B) Government
                                                         (C)
    (C) Future Generation

    (D) Central Bank                                     (D)


                                              20
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46. Government needs to follow the                   46.
    ethical principle of .............. while
    resorting to public debt.
                                                           (A)
    (A) Frugality
                                                           (B)
    (B) Equality
                                                           (C)
    (C) Efficiency

    (D) Intergenerational equity                           (D)

47. Ideally public capital formation                 47.
    should be financed with the help
    of :
                                                           (A)
    (A) loan
                                                           (B)
    (B) borrowing from foreign markets

    (C) borrowing from IMF                                 (C)

    (D) Tax collected                                      (D)

48. Rising public expenditure leads to               48.
    increase in the rate of interest
    resulting in :
                                                           (A)
    (A) Crowding        out   of   private
           investment
                                                           (B)
    (B) Crowed in of private investment

    (C) Market failure                                     (C)

    (D) Government failure                                 (D)

                                                21                         [P.T.O.
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49. Which of the following is not a public              49.
     utility ?

     (A) Water supply                                         (A)

     (B) Electricity                                          (B)

     (C) Entertainment                                        (C)

     (D) Energy                                               (D)

50. The       counterpart           of   benefit        50.
     externalities is ...........
                                                              (A)
     (A) average costs
                                                              (B)
     (B) total costs

     (C) internal costs                                       (C)

     (D) external costs                                       (D)

51. Efficiency in production requires                   51.
     that :
                                                              (A)
     (A) marginal rates of substitution
          are unequal to all consumers

     (B) marginal rates of technical                          (B)
          substitution are unequal to all
          firms

     (C) marginal rates of substitution                       (C)
          are equal to all consumers

     (D) marginal rates of technical
                                                              (D)
          substitution are equal to all
          firms

                                                   22
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52. If the firm has both monopolistic
                                               52.
    power in the product market and

    monopolistic power in the input

    market then the factor is paid a

    price ..................

    (A) Equal to its Marginal Revenue

           Product (MRP)                             (A)

    (B) Less than its Marginal Revenue

           Product (MRP)                             (B)

    (C) Greater than its Marginal

           Revenue Product (MRP)                     (C)

    (D) Equal to its Value of Marginal
                                                     (D)
           Product (VMP)

53. The concept of revenue neutral rate        53.
    of tax becomes relevant in the case

    of :
                                                     (A)
    (A) change in tax base
                                                     (B)
    (B) a new tax replacing an existing

           one

    (C) an old tax being discarded                   (C)

    (D) change in tax structure                      (D)

                                          23                         [P.T.O.
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54. All scheduled banks in India are                         54.
    included in the ................ schedule of
    the Reserve Bank Act and they are
    expected to keep cash reserves of
    equal to .............. percent of their
    deposit liabilities.
                                                                   (A)    , 3
    (A) Seventh, 3
                                                                   (B)   , 3
    (B) Second, 3
                                                                   (C)    , 2
    (C) Seventh, 2

    (D) Third, 5                                                   (D)    ,5

55. The Origin of Development Banks                          55.
    can be found in .......... in the year ..........

    (A) France, 1789                                               (A)   , 1789

    (B) U.S.A., 1776                                               (B)     , 1776

    (C) Germany, 1832                                              (C)   , 1832

    (D) Belgium, 1822                                              (D)     , 1822

56. Indian Monetary Policy based on                          56.
    monetary             targeting             was
    recommended by ............
                                                                   (A)
    (A) Rangarajan Committee

    (B) R. Gandhi Committee                                        (B)

    (C) Khusro Committee                                           (C)

    (D) Chakravarty Committee                                      (D)

                                                        24
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57. What was the major drawback of              57. 1965
    Credit   Authorization      Scheme
    practised by RBI in 1965 ?

    (A) It led to industrial monopolies               (A)
    (B) It resulted into more industrial
                                                      (B)
         sickness
                                                      (C)
    (C) It led to credit starvation
                                                      (D)
    (D) It led to huge administrative
         delays

58. One of the major differences between        58.
    Bills of Exchange and Promissory
    Note is that :

    (A) Bills of Exchange are for short-              (A)
         term while Promissory Note is
         for long-term

    (B) Bill of Exchange has three                    (B)

         parties while Promissory Note
         has only two parties

    (C) Bills of Exchange are issued by               (C)

         central bank while Promissory
         Notes are issued by commercial
         banks

    (D) Bills of Exchange are illegal                 (D)
         while Promissory Notes are
         legal in nature

                                           25                         [P.T.O.
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59. Which of the following is not a form        59.

    of mortgage ?
                                                      (A)
    (A) Simple mortgage
                                                      (B)
    (B) English mortgage
                                                      (C)
    (C) Partial mortgage

    (D) Anomalous mortgage                            (D)

60. The RBI appointed a committee               60.
    under the chairmanship of S.S.

    Tarapore to seek recommendations

    on which of the following ?
                                                      (A)
    (A) Restructuring of SBI
                                                      (B)
    (B) Recovery of NPAs

    (C) Convertibility of rupee                       (C)

    (D) Implementation of Basel norms                 (D)

61. Basel III conditions, as applied to         61.                   III

    Indian banks deal with :

    (A) Bank capital structure                        (A)

    (B) NPAs of banks                                 (B)

    (C) Profitability of banks                        (C)

    (D) Aggregate bank loans                          (D)

                                           26
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62. Identify the statement that is not         62.

    correct :
                                                     (A)                  1949
    (A) RBI was nationalized in 1949

    (B) C.D. Deshmukh was the first
                                                     (B)
        Indian to hold the post of

        Governor of RBI

    (C) RBI is the custodian of Foreign              (C)
        Exchange Reserves of India

    (D) Raghuram Rajan succeeded
                                                     (D)
        Urjit Patel as the Governor of

        RBI

63. SARFAESI Act (2002) in India deals         63. SARFAESI    (2002)

    with which of the following ?

    (A) Merger and acquisition of banks
                                                     (A)
    (B) Restructuring of cooperative
                                                     (B)
        banks

    (C) Bank Recapitalization                        (C)


    (D) Recovery of NPAs.                            (D)

                                          27                            [P.T.O.
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                                               64.
64. Which of the following statements

    about Reserve Bank of India is not

    true ?                                           (A)

    (A) RBI is the central bank of

        India
                                                     (B)
    (B) RBI moulds the monetary policy

        of India
                                                     (C)
    (C) RBI moulds the fiscal policy of

        India

    (D) RBI is both the bankers’ bank                (D)

        and Government’s bank

65. Which of the following is not among        65.
    the five associate banks that have

    been merged with State Bank of

    India ?

    (A) State Bank of Bikaner and                    (A)

        Jaipur
                                                     (B)
    (B) State Bank of Hyderabad
                                                     (C)
    (C) State Bank of Punjab

    (D) State Bank of Mysore                         (D)

                                          28
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66. Match the following :                    66.


          Nobel Prize Winner

    (a) Amartya Sen                                (a)


    (b) Richard Thaler                             (b)

    (c) Paul Krugman                               (c)

    (d) Robert Lucas                               (d)

                Field/Area

    (i)   Behavioural Economics                    (i)

    (ii) Development Economics                     (ii)

    (iii) Welfare Economics                        (iii)

    (iv) International Trade                       (iv)

    Codes :

          (a)   (b)     (c)     (d)                        (a)   (b)     (c)     (d)

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

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

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

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

                                        29                                               [P.T.O.
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67. According to Leibenstein, the               67.

   favourable conditions in the path of

   Economic Development are known

   as :                                               (A)

   (A) Positive factors
                                                      (B)

   (B) Incentives
                                                      (C)
   (C) Capital

                                                      (D)
   (D) Growth agents

68. According to Hicks, a neutral               68.

   invention is when :

   (A) It increases savings and invest-
                                                      (A)
          ment in same proportions

   (B) It raises marginal productivities

          of labour and capital in the                (B)

          same proportion

   (C) It develops agriculture and
                                                      (C)
          industrial   sector   simul-

          taneously

   (D) It does not affect the economy                 (D)

                                           30
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69. Which of the following can be said                69.
    as a major difference between
    Harrod      and     Domar       growth
    models ?                                                (A)
    (A) Both          have        different
                                                            (B)
         assumptions

    (B) Harrod stresses on knife-edge
         equilibrium while Domar does
                                                            (C)
         not

    (C) Harrod’s model is for advanced
         countries while Domar model
         focuses on backward countries
                                                            (D)
    (D) Both use different notations for
         marginal propensity to consume

70. The capital-turnover criterion of                 70.
    investment is associated with ............
    these economists.

    (A) Joan Robinson and W.W.                              (A)
         Rostow
                                                            (B)
    (B) J.J. Polak and N.S. Buchanon

    (C) K. Kaldor and Rosenstein-                           (C)
         Rodan
                                                            (D)
    (D) Ragnar Nurkse and Hirschman
                                                 31                         [P.T.O.
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71. Theory of Big Push describes                  71.

    different kinds of .............


    (A) Stimulants and shocks
                                                        (A)

    (B) External         economies     and
                                                        (B)
         indivisibilities

                                                        (C)
    (C) Equilibrium traps

                                                        (D)
    (D) Growth agents


72. The way income is distributed across          72.

    individuals and households is


    referred to as :
                                                        (A)
    (A) Absolute inequality

                                                        (B)
    (B) Relative inequality


    (C) Vertical inequality                             (C)


    (D) Horizontal inequality                           (D)


                                             32
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73. According to Hirschman .............               73.
    industry is having highest combined
    linkage score ?
                                                             (A)
    (A) Textiles
                                                             (B)
    (B) Iron and Steel

    (C) Energy                                               (C)

    (D) Agro-based industries                                (D)

74. Who has developed the theory of                    74.

    technological dualism ?

    (A) J.H. Boeke                                           (A)

    (B) Benjamin Higgins                                     (B)

    (C) R.P. Nelson                                          (C)

    (D) Charles Kindleberger                                 (D)

75. According to Rostow’s growth model                 75.
    ............... stage is a watershed in the

    life of a society ?

    (A) Traditional society                                  (A)

    (B) Drive to maturity                                    (B)

    (C) Take-off                                             (C)

    (D) Age of high mass consumption
                                                             (D)

                                                  33                         [P.T.O.
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76. Which of the following economists             76.

    have developed New Growth

    Theory ?
                                                        (A)
    (A) Romer, Lucas and Arrow
                                                        (B)
    (B) Romer, Robinson and Kaldor

                                                        (C)
    (C) Marx, Schumpeter and Keynes


    (D) Romer, Schumpeter and Meade                     (D)


77. The basic needs approach to                   77.

    economic development consists of

    ..........


    (A) Basic income and consumption                    (A)


    (B) Provision of Minimum Wage
                                                        (B)

    (C) Provision of health services,
                                                        (C)
            education, housing sanitation,

            water supply and adequate

            nutrition
                                                        (D)
    (D) Public distribution scheme

                                             34
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78. In    which    year     the   World         78.
    Development Report had the theme
    of ‘Challenge of Development’ ?
                                                      (A) 1990
    (A) 1990
                                                      (B) 1991
    (B) 1991
                                                      (C) 1999
    (C) 1999

    (D) 2000                                          (D) 2000

79. Which of the following says that the        79.
    per capita income is maximum at a
    particular level of population ?

    (A) Malthusian Theory of Population
                                                      (A)
    (B) Theory of Optimum Population
                                                      (B)
    (C) Theory        of   Demographic
         Transition                                   (C)

    (D) Harris-Todaro Model                           (D)

80. Name the state with the lowest death        80. 2011

    rate according to Census 2011.

    (A) West Bengal                                   (A)

    (B) Haryana                                       (B)

    (C) Bihar                                         (C)

    (D) Kerala                                        (D)

                                           35                              [P.T.O.
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81. Which of the following establishes           81.

    the principle that energy can neither
    be created nor destroyed ?
                                                       (A)
    (A) Pigouvian Tax
                                                       (B)
    (B) Coase theorem
                                                       (C)
    (C) Tradeable permits
                                                       (D)
    (D) First law of thermodynamics

82. What    is    the   Environmental            82.

    Economics ?
                                                       (A)
    (A) The branch of Economics that

        studies how environmental and

        natural resources are developed

        and managed

    (B) The branch of Economics that
                                                       (B)
        shows how to exploit natural

        resources as quickly as possible

    (C) The psychological study of

        relationships between humans
                                                       (C)
        and natural resources

    (D) The relationship between

        Economics and trade
                                                       (D)

                                            36
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83. Which of the following is a
                                               83.

   transboundry externality ?

                                                     (A)
   (A) Pollution has an identifiable

       source


   (B) Pollution emissions in one
                                                     (B)

       country or several countries

       affect other countries without

       pollution problems


   (C) Pollution which emitted from                  (C)

       many     sources   and   it   is

       extremely difficult to identify

       and monitor


   (D) Pollution which can take the                  (D)

       form of chemical substances or

       energy such as noise, heat or

       light

                                          37                         [P.T.O.
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84. (i)   The Population Policy 2000 had          84. (i)    2015
          a   long-term    objective    of                     2000
          achieving a stable population by
          2015.
                                                      (ii)
    (ii) The Population Policy 2000
          aimed at achieving universal
          immunization      of   children                    2000

          against all vaccine preventable
          diseases.

    What can you say about the above
    statements ?
                                                      (A)      (i)               (ii)
    (A) Statement (i) is correct but (ii)
          is incorrect
                                                      (B)      (ii)              (i)
    (B) Statement (ii) is correct but (i)
          is incorrect

    (C) Both (i) and (ii) are correct                 (C)      (i)    (ii)

    (D) Both (i) and (ii) are incorrect               (D)      (i)    (ii)

85. The abbreviation PPM stands for :             85. PPM

    (A) Parts per million
                                                      (A)
    (B) Production per million
                                                      (B)
    (C) Parts per metric ton
                                                      (C)
    (D) Production per metric ton
                                                      (D)

                                             38
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86. Why do large business corporations            86.

    voluntarily reduce their pollution ?

    (A) Some consumers are willing to                   (A)

        pay more for Green Products

    (B) Green investors may prefer to                   (B)

        invest with socially responsible

        firms

    (C) Industries try to act first before              (C)

        government passes tougher

        environmental laws

    (D) All the above statements                        (D)

87. As per census 2011 data which state           87.         2011

    in India has the maximum sex

    ratio ?
                                                        (A)
    (A) Chhattisgarh
                                                        (B)
    (B) Karnataka
                                                        (C)
    (C) Kerala
                                                        (D)
    (D) Odisha

                                             39                                [P.T.O.
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88. Which of the following is a non-            88.
    renewable natural resource ?

    (A) Fish and livestock                            (A)

    (B) Petroleum                                     (B)

    (C) Human Resources                               (C)

    (D) Teakwood plantations                          (D)

89. Demographic dividend refers to arise        89.
    in population between the age group
    of ................ years.
                                                      (A) 14   59
    (A) 14 to 59
                                                      (B) 15   59
    (B) 15 to 59
                                                      (C) 15   64
    (C) 15 to 64

    (D) 14 to 64                                      (D) 14   64

90. Which of the following ministries
                                                90.
    implements the Mid-day Meal
    Scheme (MMS) ?

    (A) Ministry of Women and Child
                                                      (A)
          Development

    (B) Department of Food and Public                 (B)
          Distribution
                                                      (C)
    (C) Planning Commission

    (D) Ministry of Human Resource
                                                      (D)
          Development

                                           40
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91. Which of the following criteria is           91.               2011

    used to define an urban area as per

    the census 2011 ?
                                                               ?

    (i)   A minimum population of 5000.
                                                       (i)                    5000

    (ii) A density of population of at
                                                       (ii)                           400
          least 400 persons per sq.km.


    (iii) At least 75 percent of the male
                                                       (iii)                         75
          working population engaged in

          non-agricultural pursuits.


    Which of the following is correct

    answer using the codes given below :


    (A) (i) and (ii) only                              (A)          (i)     (ii)


    (B) (ii) and (iii) only                            (B)          (ii)     (iii)


    (C) (i) and (iii) only                             (C)          (i)     (iii)


    (D) (i), (ii) and (iii)                            (D) (i), (ii)       (iii)


                                            41                                            [P.T.O.
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92. Which one of the following is not an        92.

    indicator of the multidimensional


    Poverty Index ?
                                                      (A)

    (A) Health
                                                      (B)
    (B) Education

                                                      (C)
    (C) Living Standard

                                                      (D)
    (D) Maternal Mortality


93. Deposit Insurance and Credit                93.                             (DICGC)


    Guarantee Corporation (DICGC)


    was established on .............
                                                      (A) 1    , 1978
    (A) July 1, 1978

                                                      (B) 15    , 1978
    (B) July 15, 1978


    (C) August 15, 1978                               (C) 15      , 1978


    (D) October 2, 1978                               (D) 2       , 1978


                                           42
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94. Who recommended to establish the               94.
     ‘Insurance Regulation Authority’ ?

     (A) Dandekar Committee                              (A)

     (B) Malhotra Committee                              (B)

     (C) Khusro Committee                                (C)

     (D) Rangarajan Committee                            (D)

95. Cryptocurrency refers to ..............        95.

     (A) Plastic money                                   (A)

     (B) Digital/Virtual currency                        (B)

     (C) Digital payments                                (C)

     (D) Both (A) and (B)                                (D) (A)          (B)

96. Arrange the names of the chairmen              96.
     of the Finance Commission of India
     in the chronological order :
                                                         (i)
     (i)   K.C. Pant
                                                         (ii)
     (ii) K. Brahmananda Reddy
                                                         (iii)
     (iii) A.M. Khusro
                                                         (iv)
     (iv) K. Santhanam
                                                         (A) (i), (ii), (iii), (iv)
     (A) (i), (ii), (iii), (iv)

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

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

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

                                              43                                        [P.T.O.
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97. Arrange the following Urban             97.

   Development Programmes by the

   year of their implementation

   starting from the earliest to the

   latest :
                                                  (i)

   (i)   Integrated Development of
                                                          (IDSMT)
         Small and Medium Towns
                                                  (ii)
         (IDSMT)


   (ii) JNNURM
                                                  (iii)
   (iii) Mega Cities Programme

                                                  (iv)
   (iv) Smart Cities Mission

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

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

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

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

                                       44
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98. Match the following :                     98.

                        Year

    (a) 1981                                        (a) 1981

    (b) 1991                                        (b) 1991

    (c) 2001                                        (c)   2001

    (d) 2011                                        (d) 2011

    Total Work Participation

          Rate in India (%)

    (i)   37.5                                      (i)   37.5

    (ii) 36.8                                       (ii) 36.8

    (iii) 39.8                                      (iii) 39.8

    (iv) 39.1                                       (iv) 39.1

    Codes :

          (a)    (b)      (c)    (d)                      (a)    (b)    (c)     (d)

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


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


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


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


                                         45                                             [P.T.O.
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99. Match the following :                    99.

                      State

    (a) Gujarat                                    (a)

    (b) Karnataka                                  (b)

    (c) Maharashtra                                (c)

    (d) Tamil Nadu                                 (d)

   Poverty estimates (2011-12)                                                 (2011-12)

    (i)   11.3 percent                             (i)   11.3

    (ii) 16.6 percent                              (ii) 16.6

    (iii) 17.4 percent                             (iii) 17.4

    (iv) 20.9 percent                              (iv) 20.9

    Codes :

          (a)   (b)     (c)     (d)                      (a)    (b)     (c)      (d)

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

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

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

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

                                        46
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100. Match the following :                   100.

                Committees

    (a) Alagh Committee                             (a)

    (b) Tendulkar Committee                         (b)

    (c) Lakdawala Committee                         (c)

    (d) Rangarajan Committee                        (d)

                    Years

    (i)   2012                                      (i)   2012

    (ii) 2009                                       (ii) 2009

    (iii) 1993                                      (iii) 1993

    (iv) 1979                                       (iv) 1979

    Codes :

          (a)    (b)    (c)     (d)                       (a)    (b)    (c)     (d)

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

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

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

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

                                        47                                              [P.T.O.
MH SET 2019 question paper, 23 June 2019, Paper II, Economics, page 48 of 48
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JUN - 11219/II—A

ROUGH WORK




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Source: Savitribai Phule Pune University. Question paper published by Savitribai Phule Pune University.