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MH SET 2023: 26 March, Paper II, Economics

  • Date: 26 March 2023
  • Paper code: MAR-11223
  • Series: A
  • Language: Bilingual
  • 48 pages
MH SET 2023 question paper, 26 March 2023, Paper II, Economics, page 1 of 48
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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.
MAR - 11223                                                                                         (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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MAR - 11223/II—A




2
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MAR - 11223/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 or Y.          1.
     It is observed that when price of Y

     falls, the demand for X also falls.

     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) They are inferior goods                       (C)

     (D) They are giffen goods                         (D)

2.   In the third stage of production, the       2.

     total product is :

     (A) Rising                                        (A)

     (B) Constant                                      (B)

     (C) Maximum                                       (C)

     (D) Falling but positive                          (D)

                                             3                            [P.T.O.
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3.   According to Kenneth Arrow people         3.

     do not prefer :

     (A) Flight insurance                           (A)

     (B) Property insurance                         (B)
     (C) Life insurance                             (C)
     (D) Flood insurance                            (D)
4.   The basic objective of applying the       4.
     game theory is :

     (A) To maximise profits
                                                    (A)
     (B) To maximise sale
                                                    (B)
     (C) To arrive at the dominant

           strategy                                 (C)

     (D) To minimize marginal cost                  (D)

5.   Other things remaining constant, if       5.

     a competitor of commodity X carries

     out a successful advertisement

     campaign, the demand curve for X

     shall ................... .                    (A)

     (A) Shift to the left
                                                    (B)
     (B) Shift to the right
                                                    (C)
     (C) Become positively sloping

     (D) Become parallel to Y axis                  (D)

                                           4
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6.   The payment to the input is in fixed              6.

     supply in the short-run is called :

     (A) Economic rent                                      (A)

     (B) Quasi rent                                         (B)

     (C) Transfer earnings                                  (C)

     (D) Producer’s surplus                                 (D)

7.   A necessary (but not sufficient)                  7.

     condition for the existence of a

     general equilibrium is .................. .

     (A) Number of independent equations
                                                            (A)
          and number of unknowns must be

          the same
                                                            (B)
     (B) Prices of all goods should be

          equal

                                                            (C)
     (C) Supply of factors and prices of

          goods must be equal

     (D) Demand for factors and supply                      (D)

          of goods should be the same

                                                   5                        [P.T.O.
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8.   Walras argued that all .............. and       8.

     ..................... in all markets are

     determined simultaneously through

     their interaction with one another.

                                                          (A)
     (A) Prices, quantities


     (B) Demand, prices                                   (B)


     (C) Supply, prices                                   (C)


     (D) Prices, costs                                    (D)


9.   Suppose Anil and Sunil are at an                9.

     allocation bundle where their

     marginal rates of substitution are

     not equal, then ............... .


     (A) There are losses from exchange
                                                          (A)
     (B) There are gains from exchange

                                                          (B)
     (C) They are outside the Edgeworth

          box                                             (C)

     (D) They are at an equilibrium                       (D)

                                                 6
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10. Second fundamental theorem of                 10.

    welfare economics assumes that all

    consumers and producers are :

                                                        (A)
    (A) Price leaders

                                                        (B)
    (B) Price makers

                                                        (C)
    (C) Price takers

                                                        (D)
    (D) Price followers

                                                  11.
11. Arrow’s impossibility theorem argues

    that :                                              (A)

    (A) It is impossible to devise strong

         social ordering
                                                        (B)

    (B) It is possible to devise weak

         social ordering

                                                        (C)
    (C) It is impractical to find political

         solutions to economic problems


    (D) Social choice is always optimum                 (D)


                                              7                         [P.T.O.
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12. Recession means :                        12.

    (A) Period of increasing prices
                                                   (A)
    (B) Period during which aggregate

           output decreases                        (B)


    (C) Period of declining unemploy-              (C)
           ment
                                                   (D)
    (D) Period of increased trade

13. A cut in tax rate for reducing the       13.

    cost of capital and encouraging

    business investment is an example

    of ................. .

    (A) Expansionary demand side

           policy

    (B) Contractionary demand side                 (A)

           policy
                                                   (B)
    (C) Expansionary supply side

           policy                                  (C)

    (D) Contractionary supply side
                                                   (D)
           policy

                                         8
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14. Which of the following has a positive
                                                14.
    impact on investment ?


    (A) An increase in the nominal

         interest rate                                (A)


    (B) A higher capital stock
                                                      (B)

    (C) An expected decline in the

         demand for goods                             (C)


    (D) An    increase      in   expected
                                                      (D)

         inflation   with    unchanged

         nominal interest rate


15. The opportunity cost of holding             15.

    money is called as :
                                                      (A)
    (A) Nominal interest rate
                                                      (B)
    (B) Inflation

                                                      (C)
    (C) The real return on investment


    (D) Savings                                       (D)


                                            9                         [P.T.O.
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16. If the nominal money supply grows                  16.                        4

    by 4% per year, velocity is constant

    and the real GDP grows by 1% per                                         1

    year, inflation would be ................ .


    (A) 1%                                                   (A) 1


    (B) 2%                                                   (B) 2


    (C) 3%                                                   (C) 3


    (D) 4%                                                   (D) 4


17. In the equation C = a + bY describing
                                                       17.                       C = a + bY
    the aggregate consumption function,
                                                                     a
    a stands for :


    (A) The amount of consumption
                                                             (A)
         when income is zero

                                                             (B)
    (B) Marginal propensity to consume


    (C) The amount of consumption                            (C)

         when the income is maximum

                                                             (D)
    (D) Marginal propensity to save

                                                  10
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18. Classical economists argued that                18.

    money is neutral because ............. .

    (A) Prices adjust to a monetary                       (A)

        expansion only in the long-run

    (B) Prices are slow to adjust to a                    (B)

        monetary expansion

    (C) Prices are fixed in the short-run                 (C)

    (D) Prices adjust quickly to a                        (D)

        monetary expansion

19. As Marginal Propensity to Save                  19.
    (MPS) increases, the value of

    multiplier would :

                                                          (A)
    (A) Increase

    (B) Increase or decrease depending                    (B)

        upon the size of change in

        investment

                                                          (C)
    (C) Remain constant

    (D) Fall                                              (D)

                                               11                         [P.T.O.
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20. What happens if the injections           20.

    are less than the leakages at

    full employment level of national

    income ?
                                                   (A)
    (A) Inflationary Gap

                                                   (B)
    (B) Equilibrium

                                                   (C)
    (C) Hyper-inflation


    (D) Deflationary Gap                           (D)


21. The price of money next year in          21.

    terms of money , this year is

    expressed as .................. .

                                                   (A) 1 +
    (A) 1 + real interest rate

                                                   (B) 1 +
    (B) 1 + nominal interest rate

                   1                                         1
    (C)                                            (C) 1
        1 + real interest rate

                   1                                         1
    (D) 1 + nominal interest rate                  (D) 1


                                        12
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22. If X1, X2, X3, .............., Xn is a random        22.         X1, X2, X3, .........., Xn       µ

     sample from a normally distributed                                2

     population with mean µ and
                                                                                                               X
     variance         2,        the   sampling

     distribution of X is :
                                                               (A)           µ                        2

     (A) Normal with mean µ and

           variance     2

                                                                                          2
                                                               (B)           µ                 / n2
     (B) Normal with mean µ and

                           2
           variance            / n2
                                                               (C)           µ             2
                                                                                               /n
     (C) Normal with mean µ and

           variance        2
                               /n

                                                               (D)
     (D) Cannot say

23. The logistic regression model is used                23.

     to analyze :

     (A) Discrete choice                                       (A)


     (B) Continuous choice                                     (B)


     (C) National income                                       (C)


     (D) Incorrectly measured data                             (D)

                                                    13                                                    [P.T.O.
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24. ARIMA (p, d, q) models are used to                      24. ARIMA (p, d, q)

    analyze :


    (A) cross-section data                                        (A)


    (B) discrete data                                             (B)


    (C) time series data                                          (C)


                                                                  (D)
    (D) unstable data


25. The estimate of b̂ in the following                     25.   Yi       Xi      ei

    regression model Yi                   Xi   ei is                       b̂

    given by :
                                                                      ˆ     (X i     X) (Yi         Y)
                                                                  (A) b                         2
                                                                                   (X i    X)
        ˆ       (X i     X) (Yi      Y)
    (A) b
                       (X i    X)2
                                                                  (B) bˆ   Y    ˆX
    (B) bˆ   Y     ˆX

                                                                      ˆ     (X i     X) (Yi         Y)
        ˆ       (X i     X) (Yi      Y)                           (C) b
    (C) b                                                                           (X i    X)
                        (X i    X)


                (X i     X)2                                          ˆ     (X i     X)2
        ˆ
    (D) b                                                         (D) b
                (Yi      Y)2                                                (Yi      Y)2


                                                       14
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26. In the following regression model                 26.       Yi          Xi     ei
       Yi          Xi     ei , under the usual
    assumptions, variance of b̂ is given                    b̂
    by :                                                    (A)      2

    (A)     2
                                                                            2
                                                            (B)
                   2
                                                                     (X i        X)2
    (B)
            (X i        X)2
                                                                     (X i        X)2
                          2                                 (C)
            (X i        X)                                                  2
    (C)            2


            (Yi        Y)2                                           (Yi        Y)2
    (D)                                                     (D)             2
                   2

27. For the following input-output table,             27.
    what would be the technology
    matrix ?                                                         A            B
Sector      A            B    Final Demand                  A        50          150           200
   A        50          150         200
                                                            B        100          75           100
   B        100          75         100
                                                                            1 / 8 6 / 11
                   1 / 8 6 / 11                             (A) M
    (A) M                                                                   1 / 4 3 / 11
                   1 / 4 3 / 11

                   3 / 11 1 / 8                                             3 / 11 1 / 8
    (B) M                                                   (B) M
                   6 / 11 1 / 4                                             6 / 11 1 / 4

                   1/4 1/8                                                  1/4 1/8
    (C) M                                                   (C) M
                   3 / 11 6 / 11                                            3 / 11 6 / 11

                   6 / 11 1 / 8
    (D) M                                                                   6 / 11 1 / 8
                   3 / 11 1 / 4                             (D) M
                                                                            3 / 11 1 / 4

                                                 15                                                  [P.T.O.
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28. Suppose that the total cost of                     28.               x

    producing x units of a product is
                                                             c( x)       x3    6 x 2 15 x          x

    c( x)   x3    6 x 2 15 x .     Find     the
                                                                                                A(x)
    number of units for which the

    average cost A(x) is minimum.
                                                             (A) x = 5
    (A) x = 5
                                                             (B) x = 7
    (B) x = 7

                                                             (C) x = 1
    (C) x = 1

                                                             (D) x = 3
    (D) x = 3

29. For the demand function :                          29.


                 3x + 4y = 10

                                                                              3x + 4y = 10
    where y is the price per unit and x

    is the number of units, find total                               y                                     x

    revenue and marginal revenue.

    (A) 5 / 2 x 3 / 4 x2 ,       5 / 2 3 / 2x                (A) 5 / 2 x 3 / 4 x 2 ,        5 / 2 3 / 2x

    (B) 2 / 5 x 4 / 3 x2 ,       2 / 5 4 / 3x                (B) 2 / 5 x 4 / 3 x 2 ,        2 / 5 4 / 3x

    (C) 1 / 5 x 2 / 3 x2 ,       1 / 5 2 / 3x                (C) 1 / 5 x 2 / 3 x 2 ,        1 / 5 2 / 3x

    (D) 3 / 4 x 5 / 2 x2 ,       3 / 4 5 / 2x                (D) 3 / 4 x 5 / 2 x 2 ,        3 / 4 5 / 2x

                                                  16
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30. Agricultural production in India           30.                          2000

    increases in Arithmetic progression                              2004       2014
    beginning from 2000. If production                         68     88
    in 2004 and 2014 was 68 and 88 mn                         2017
    tonnes, then estimate production of

    2017.
                                                     (A) 98
    (A) 98
                                                     (B) 93
    (B) 93
                                                     (C) 91
    (C) 91
                                                     (D) 94
    (D) 94

31. Marginal cost function is obtained         31.

    by :

    (A) Integrating the total cost

           function                                  (A)

    (B) Differentiating the fixed cost
                                                     (B)
           function

    (C) Integrating total variable cost              (C)

           function
                                                     (D)
    (D) Differentiating total cost or

           variable cost function

                                          17                                  [P.T.O.
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32. The intersection of the offer curves                 32.
    of two nations shows :

    (A) The          equilibrium     relative
           commodity price at which trade                      (A)

           takes place between two nations

    (B) The          equilibrium     relative
                                                               (B)
           currency price at which trade
           takes place between two nations

    (C) The equilibrium relative factor
                                                               (C)
           price at which trade takes place
           between two nations

    (D) The          equilibrium     relative                  (D)
           technology price at which trade
           takes place between two nations

33. The International Development                        33.
    Agency (IDA) was established in
    ................. and it has its headquarters
    in .................. .
                                                               (A) 1960 —
    (A) 1960 — Geneva
                                                               (B) 1960 —
    (B) 1960 — Washington

    (C) 1955 — Rome                                            (C) 1955 —

    (D) 1960 — New York                                        (D) 1960 —

                                                    18
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34. Linder’s       spillover        theory    is         34.

    applicable to trade in .................... .

    (A) Agricultural goods                                     (A)

                                                               (B)
    (B) Manufactured goods
                                                               (C)
    (C) Services
                                                               (D)
    (D) Defence equipments

35. When a small nation imposes an                       35.
    import tariff .................. .

    (A) The domestic price of the
          importable commodity decreases                       (A)

          by the full amount of the tariff
          for consumers in the nation

    (B) The domestic price of the
          importable commodity rises by                        (B)
          the full amount of the tariff for
          consumers in the nation

    (C) The domestic price of the
          importable commodity remains                         (C)
          constant for consumers in the
          nation

    (D) The domestic prices of the                             (D)
          inputs of importable commodity
          rises by the full amount of the
          tariff for producers in the nation

                                                    19                         [P.T.O.
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36. China’s currency was included in the               36.

    Special Drawing Rights (SDR)
    composition in .................. .
                                                             (A) 2016
    (A) 2016
                                                             (B) 2010
    (B) 2010
                                                             (C) 1964
    (C) 1964

    (D) 2017                                                 (D) 2017

37. Increase in the supply of money in                 37.
    the economy leads to ................ .

    (A) Trade surplus                                        (A)

    (B) Trade equilibrium                                    (B)

    (C) Trade deficit                                        (C)

    (D) Rise in rate of interest                             (D)

38. According to the Product Cycle                     38.
    Hypothesis, innovation leads to
    ........................ for the innovating
    country.
                                                             (A)
    (A) Absolute monopoly
                                                             (B)
    (B) Relative monopoly

    (C) Temporary monopoly                                   (C)

    (D) Long-term monopoly                                   (D)

                                                  20
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39. Which concept of the terms of trade         39.
    attempts to capture productivity in
    export and import competing sectors
    of a country ?
                                                      (A)
    (A) Gross Barter Terms of Trade
                                                      (B)
    (B) Net Barter Terms of Trade
                                                      (C)
    (C) Income Terms of Trade

    (D) Double Factoral Terms of Trade                (D)

40. Statement 1 : Any change that               40.         1
    affects that IS, LM and BP curves
    can affect the nation’s aggregate
    demand curve.
                                                            2
    Statement 2 : Aggregate demand
    curve of the nation depends whether
    the nation operates under fixed or
    flexible exchange rate.                           (A)       1      2

    (A) Both the statements 1 and 2 are
        incorrect
                                                      (B)       1      2
    (B) Both the statements 1 and 2 are
        correct
                                                      (C)       1                 2
    (C) Statement 1 is correct but the
        statement 2 is incorrect

    (D) Statement 1 is incorrect but the              (D)       1             2

        statement 2 is correct

                                           21                                 [P.T.O.
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                                                        41.
41. The World Bank mainly finances

    ................. sector and it mostly gives
    .................... loans.
                                                              (A)
    (A) Agricultural — Short term
                                                              (B)
    (B) Industry — Long term
                                                              (C)
    (C) Energy — Medium + Long term

    (D) Transport — Long term                                 (D)

42. Which one of the following is a cause               42.
    of market failure ?

    (A) Consumption is rival                                  (A)

    (B) Exclusion is not feasible and                         (B)
           consumption is non-rival

    (C) Say’s law of market                                   (C)

    (D) Exclusion is feasible                                 (D)

43. Market functions on the principle                   43.
    of :
                                                              (A)
    (A) Equimarginal
                                                              (B)
    (B) Exclusion

    (C) Inclusion                                             (C)

    (D) Perfection                                            (D)

                                                   22
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44. The claim that market mechanism                     44.

     leads to efficient resource use is
     based on the condition of ............. .

     (A) Monopoly                                             (A)
     (B) Inclusion
                                                              (B)
     (C) Competitive factor and product
                                                              (C)
          market

     (D) Exclusion                                            (D)

45. The marginal cost of providing                      45.
     public goods to one additional person
     is equal to :

     (A) Zero                                                 (A)

     (B) Between one and zero                                 (B)

     (C) Between minus one and zero                           (C)

     (D) Between minus one and one                            (D)

46. Externality is defined as the ..............        46.
     by a non-consumer which is not
     included in the price of the
     commodity concerned.
                                                              (A)
     (A) Cost incurred
                                                              (B)
     (B) Benefit enjoyed
                                                              (C)
     (C) Cost incurred or benefit enjoyed

     (D) Cost of a commodity produced                         (D)

                                                   23                         [P.T.O.
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47. Efficiency in distribution requires            47.
    that :

    (A) Marginal rate of substitution
         between two goods are equal for                 (A)

         all consumers

    (B) Marginal rate of technical
                                                         (B)
         substitution are equal for all
         firms

    (C) Marginal rate of technical                       (C)
         substitution are unequal for all
         firms
                                                         (D)
    (D) Marginal rate of substitution
         are equal for all firms

48. If the budget surplus is to measure            48.
    public saving in the sense of reduction
    in aggregate demand, surplus should
    be defined as ................. .

    (A) The excess of total expenditure
         over tax revenue
                                                         (A)
    (B) The excess of tax revenue over
         total expenditure                               (B)
    (C) Equality         of   revenue   and
                                                         (C)
         expenditure

    (D) Equality of debt and revenue                     (D)

                                              24
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49. The central instrument of expendi-                    49.

     ture policy is ................. .
                                                                (A)
     (A) The cash reserve ratio
                                                                (B)
     (B) Special drawing rights
                                                                (C)
     (C) The budget

     (D) Statutory liquidity ratio                              (D)

50. Surplus finance generates ................            50.
     effect in the budget.

     (A) A contraction                                          (A)

     (B) Expansion                                              (B)

     (C) Stabilization                                          (C)

     (D) Monetization                                           (D)

51. When an expansionary fiscal policy                    51.
     is adopted .................. are lowered and
     .................... are increased.

     (A) Tax rates and government
          spendings                                             (A)

     (B) Government spendings and                               (B)
          interest rates
                                                                (C)
     (C) Subsidies and tax rates

     (D) Tax rates and surcharges                               (D)

                                                     25                         [P.T.O.
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52. The Laffer curve shows the relation-        52.
    ship between ............... .

    (A) Tax rate and tax revenue                      (A)

    (B) Tax base and tax rate                         (B)

    (C) Tax base and tax revenue                      (C)

    (D) Tax rate and fiscal deficit                   (D)

53. The reason why indirect taxes are           53.
    termed regressive is because :

    (A) Their rates are higher than
                                                      (A)
         direct tax rates
                                                      (B)
    (B) Their rates are different for
         different income groups
                                                      (C)
    (C) They are not charged for some
         income groups

    (D) Their rates are same for all                  (D)
         income groups

54. The number of times a unit of money         54.
    exchanges hands during a unit period
    of time. What is it known as :

    (A) Velocity of circulation of money
                                                      (A)
    (B) Speed of circulation of money
                                                      (B)
    (C) Momentum of circulation of
         money                                        (C)

    (D) Count of circulation of money                 (D)

                                           26
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55. In the terminology of economics and            55.

     money demand, the term M1 and M2                          M1    M2

     are also known as :
                                                         (A)
     (A) Short money
                                                         (B)
     (B) Long money

                                                         (C)
     (C) Broad money

                                                         (D)
     (D) Narrow money


56. If the interest rates on all bonds rise        56.

     from 5 to 6 percent over the course                       5       6

     of the year, which bond would you

     prefer to have been holding ?


     (A) A bond with one year maturity
                                                         (A)
     (B) A bond with five year maturity
                                                         (B)
     (C) A bond with ten year maturity

                                                         (C)
     (D) A bond with twenty year

         maturity                                        (D)


                                              27                              [P.T.O.
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57. If a bank chooses to purchase                     57.
    securities rather than extend loans
    with its excess reserves ............... .

    (A) The expansion of deposits in the
         banking       system       will    be
         dampened                                           (A)

    (B) The effect on deposits will be the
                                                            (B)
         same as if the bank had held
         back its excess reserves in vault
         cash

    (C) The effect on deposits will be the
         same as if the bank had                            (C)
         extended loans

    (D) The extension of deposits in the
         banking       system       will    be
                                                            (D)
         extended

58. If you expect the inflation rate to               58.
    be 4 percent next year and a one                                4
    year bond has a yield to maturity                       1
    of 7 percent, then the real interest                    7
    rate on this bond is .................. .

    (A) –3 percent                                          (A) –3

    (B) –2 percent                                          (B) –2

    (C) 3 percent                                           (C) 3

    (D) 7 percent                                           (D) 7

                                                 28
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59. The process by which RBI or any               59.

    central bank protects the economy
    against adverse economic shocks is
    known as ................... .

    (A) Protection                                      (A)

    (B) Liberalization                                  (B)

    (C) Stabilization                                   (C)

    (D) Sterilization                                   (D)

60. I.   All banks have to lend at least          60. I.
         40 percent of their net credit to                       40
         the priority sector.

    II. Foreign banks with less than 20
                                                        II. 2019-20
         branches will move to total
                                                                20
         priority sector target of 40
         percent by 2019-20.                                     40

         What do you have to say about
         the above statement ?
                                                        (A)      I             II
    (A) Statement I is correct and II is
         incorrect
                                                        (B)      I              II
    (B) Statement I is incorrect and II
         is correct

    (C) Statements I and II are correct                 (C)      I     II

    (D) Statements I and II are incorrect               (D)      I     II

                                             29                                 [P.T.O.
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61. What    does   the   term    ‘Gross        61.

    Investment’ mean while denoting a

    nation’s economy ?
                                                     (A)         =
    (A) Gross   Investment      =   Net
                                                           +
        Investment + Depreciation

    (B) Gross   Investment      =   Net              (B)         =

        Investment – Depreciation                          –

    (C) Gross      Investment         =
                                                     (C)         =      –
        Depreciation – Net Investment

    (D) Gross      Investment         =

        Depreciation + Savings                       (D)        =      +


62. What is Fedwire ?                          62.

    (A) is a financial news network                  (A)
        developed by the Federal
        Reserve Board
                                                     (B)
    (B) is used for interbank transfers
        by the Federal Reserve Bank

    (C) is used by the Federal Reserve
                                                     (C)
        Bank to make loans to member
        banks

    (D) None of the above                            (D)

                                          30
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63. A source of conflict between
                                                63.
   monetary and fiscal policy decision

   makers is that :

   I.   Fiscal policy decision makers                 I.
        place more emphasis on short-

        term objectives while monetary

        policy makers focus on long

        term objectives.

   II. It is easier, from a political
                                                      II.
        standpoint, to pay for increased

        government spending by tax

        expansion than by monetary

        expansion.

   What do you have to say about the

   above statements ?

   (A) Statement I is correct and II is
                                                      (A)   I         II
        incorrect

   (B) Statement I is incorrect and II                (B)   I          II
        is correct
                                                      (C)   I    II
   (C) Statements I and II are incorrect

   (D) Statements I and II are correct                (D)   I    II


                                           31                               [P.T.O.
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64. Match the following :                    64.

    (a) Chakravarty Committee Report               (a)

    (b) Nationalization of RBI
                                                   (b)

    (c) Committee Report on Banking
                                                   (c)
          Sector Reforms
                                                   (d)
    (d) Nationalization of Commercial

          Banks                                    (i)   1998

    (i)   1998                                     (ii) 1969

    (ii) 1969
                                                   (iii) 1985

    (iii) 1985
                                                   (iv) 1949
    (iv) 1949

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


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

                                        32
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65. Put the following events in India in            65.
    the correct chronological order,
    starting from the oldest one :
                                                          (i)
    (i)   NABARD incorporated

    (ii) RBI nationalized                                 (ii)

    (iii) Fourteen commercial banks                       (iii)
          nationalized
                                                          (iv)
    (iv) Establishment of State Bank of
          India                                           (A) (ii), (iv), (iii), (i)

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

66. According to Adam Smith, profits                66.

    tend to decline, when ................ .

    (A) Prices fall
                                                          (A)
    (B) Rent increases
                                                          (B)
    (C) Competition increases among
          capitalists                                     (C)

    (D) Government intervenes
                                                          (D)

                                               33                                      [P.T.O.
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67. Which of the following is not a         67.
    criticism of classical theory of
    development ?
                                                  (A)
    (A) Ignores rich class
                                                  (B)
    (B) Ignores middle class
                                                  (C)
    (C) Unrealistic growth process
                                                  (D)
    (D) Neglects public sector

68. Match the following :                   68.
          Theories

    (a) Balanced growth                           (a)
    (b) Unbalanced growth                         (b)
    (c) Social dualism                            (c)
    (d) Geographic dualism                        (d)
          Propounder

    (i)   J. H. Boeke                             (i)
    (ii) Rosenstein Rodan                         (ii)
    (iii) Gunnar Myrdal                           (iii)

    (iv) A. O. Hirschman                          (iv)

    Codes :

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

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

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

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

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

                                       34
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69. Which of the following is not an                   69.
    assumption in Meade’s growth
    model ?
                                                             (A)
    (A) Closed economy
                                                             (B)
    (B) Labour and machine are the
          only form of capital
                                                             (C)
    (C) Laissez faire

    (D) Perfect competition                                  (D)

70. Kaldor in his model of economic                    70.
    growth follows the approaches given
    by ................... .

    (A) Harrod and Keynes                                    (A)

    (B) Harrod and Domar                                     (B)

    (C) Hirschman and Lewis                                  (C)

    (D) Nurkse and Rosenstein-Rodan                          (D)

71. An economy showing a contrast                      71.
    between economic and social
    organisation of the modern sector
    and traditional sector is called ........ .

    (A) Advanced economy                                     (A)

    (B) Dual economy                                         (B)

    (C) Undeveloped economy                                  (C)

    (D) Mixed economy                                        (D)

                                                  35                         [P.T.O.
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72. Harrod emphasised .................. aspect        72.

     of investment in his growth model.

     (A) Decreasing                                          (A)

     (B) Deepening                                           (B)

     (C) Widening                                            (C)

     (D) Increasing                                          (D)

73. The ‘Exogenous’ growth model is                    73.

     propounded by ................... .

     (A) R. Solow                                            (A)

     (B) J. Meade                                            (B)

     (C) Joan Robinson                                       (C)

     (D) Harrod and Domar                                    (D)

74. According to the World Bank, the                   74.
     ‘East Asian Miracle’ happened due

     to .................... .
                                                             (A)
     (A) Growing capital stock
                                                             (B)
     (B) Total factor productivity

     (C) Increasing labour stock                             (C)

     (D) Role of Government                                  (D)

                                                  36
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75. H. Uzawa’s model of growth is also            75.
    known as ................... .

    (A) One-sector model                                (A)

    (B) Agriculture sector model                        (B)

    (C) Industrial sector model                         (C)

    (D) Two-sector model of growth                      (D)

76. The Planning Commission has                   76.

    updated poverty lines and poverty                         2011-12

    ratios for 2011-12 based on the
    recommendations by ................. .

    (A) Dandekar and Rath Study                         (A)

    (B) P. D. Ojha Study                                (B)

    (C) A. Vaidyanathan Committee                       (C)

    (D) Tendulkar Committee                             (D)

77. Direct controls by the Central                77.
    Government include :

    (A) Price control and rationing
                                                        (A)
    (B) Price control and monetary
                                                        (B)
         policy
                                                        (C)
    (C) Monetary and Fiscal Policy

    (D) Price Control and Fiscal Policy                 (D)

                                             37                         [P.T.O.
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78. According to Solow’s neo-classical
                                                 78.
    model of growth, an increase in a
    country’s savings rate will cause
    an ................ .

    (A) Increase in the level of income
                                                       (A)
          per head in the short run but
          not in the long run

    (B) Increase in the rate of growth
                                                       (B)
          in the short run but not in the
          long run

    (C) Increase in both income per
                                                       (C)
          head levels and growth rates in
          the long run

    (D) Increase in neither income per                 (D)
          head levels nor growth rates in
          the long run

79. Which of the following is a concise          79.
    way of examining the mortality
    changes in the social security
    population over time ?
                                                       (A)
    (A) A life table
                                                       (B)
    (B) Social security measure

    (C) Infant mortality rate                          (C)

    (D) Death rates                                    (D)

                                            38
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80. Permits create a market price for            80.
    pollution and therefore can be traded
    between firms. To have low
    transaction cost for these permits,
    they must be .................. .

    (A) Homogenous, not divisible and
                                                       (A)
         exchangeable
                                                       (B)
    (B) Homogenous, perfectly divisible
         and exchangeable

    (C) Homogenous, non-rival and                      (C)
         excludable

    (D) Homogenous, non-divisible and
         excludable                                    (D)

81. Which year is considered a great             81.
    demographic divide in India ?

    (A) 1911                                           (A) 1911

    (B) 1921                                           (B) 1921

    (C) 1931                                           (C) 1931

    (D) 1941                                           (D) 1941

82. Name the agreement that was                  82.
    signed to fix the greenhouse gas
    emissions :
                                                       (A)
    (A) Montreal Protocol
                                                       (B)
    (B) Kyoto Protocol
                                                       (C)
    (C) Greenhouse Gas Protocol

    (D) Paris Protocol                                 (D)

                                            39                              [P.T.O.
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83. The first census in India was              83.
    conducted by :

    (A) Lord Ripon                                   (A)

    (B) Lord Lytton                                  (B)

    (C) Lord Minto                                   (C)

    (D) Lord Mayo                                    (D)

84. In 1987, the United Nations                84. 1987
    convened a meeting in Canada to
    address the problem of ozone
    depletion. What is the name of
    agreement that was transacted at
    that meeting ?

    (A) Chemical Responsibility Program              (A)

    (B) Montreal Protocol
                                                     (B)
    (C) Kyoto Protocol
                                                     (C)
    (D) The European Union Emissions
        Trading Scheme (EU-ETS)                      (D)

85. Which of the following is not the          85.
    cause of migration in India ?

    (A) Environment                                  (A)
    (B) Employment                                   (B)
    (C) Education                                    (C)

    (D) Having a permanent govt. job                 (D)

                                          40
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86. If production of a product causes           86.
    pollution and the government does

    not intervene, what is the social

    outcome of the producer’s decision ?
                                                      (A)
    (A) The decision will result in

        social-economic equity

    (B) The decision will result in                   (B)

        social-economic efficiency

    (C) The decision will result in
                                                      (C)
        social-economic inefficiency

    (D) The decision will result in the
                                                      (D)
        underproduction of product from

        a society’s perspective

87. As per 2011 census, the largest             87. 2011

    urban agglomeration in India is :

    (A) Mumbai                                        (A)

    (B) Delhi                                         (B)

    (C) Kolkata                                       (C)

    (D) Chennai                                       (D)

                                           41                         [P.T.O.
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88. Goods such as Hamburgers and                     88.

    French fries are examples of :

    (A) Rival goods                                        (A)

    (B) Non-rival goods                                    (B)

    (C) Public goods                                       (C)

    (D) Non-exclusive goods                                (D)

89. Economic growth in India is some-                89.

    times known as ‘Jobless growth’. The

    appropriate reasons of Jobless

    growth are :
                                                           (i)
    (i)   Use of capital intensive technology
                                                           (ii)
    (ii) Job loss during transition period
                                                           (iii)
    (iii) Increase in labour productivity
                                                           (iv)
    (iv) Climate changes

    Select the correct code :

                                                           (A) (i), (ii)          (iii)
    (A) (i), (ii) and (iii)

    (B) (ii) and (iv)                                      (B) (ii)        (iv)


    (C) (iv) and (i)                                       (C) (iv)        (i)

    (D) (iii) and (iv)                                     (D) (iii)       (iv)

                                                42
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90. According to Global wage report             90.                                2018-19
    2018-19, Gender Wage Gap in India
    was .................... percentage.
    (A) 33.0                                          (A) 33.0
    (B) 33.5                                          (B) 33.5
    (C) 34.0                                          (C) 34.0
    (D) 34.5                                          (D) 34.5
91. Match the following :                       91.
                         State
    (a) Andhra Pradesh                                (a)
    (b) Karnataka                                     (b)
    (c) Tamil Nadu                                    (c)
    (d) Maharashtra                                   (d)
          Female Literacy Rate
                 (Census 2011)                                                2011
    (i)    68.1                                       (i)   68.1
    (ii) 59.1                                         (ii) 59.1
    (iii) 75.9                                        (iii) 75.9
    (iv) 73.4                                         (iv) 73.4
    Codes :
           (a)     (b)     (c)     (d)                      (a)    (b)     (c)     (d)
    (A) (i)       (iii)    (ii)    (iv)               (A) (i)      (iii)   (ii)    (iv)
    (B) (i)        (ii)    (iii)   (iv)               (B) (i)      (ii)    (iii)   (iv)
    (C) (ii)       (i)     (iv)    (iii)              (C) (ii)     (i)     (iv)    (iii)
    (D) (iv)       (i)     (iii)   (ii)               (D) (iv)     (i)     (iii)   (ii)

                                           43                                              [P.T.O.
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92. Arrange the following programmes               92.

    in     chronological         order   of

    introducing :
                                                         (i)   DPAP
    (i)   DPAP
                                                         (ii) JRY
    (ii) JRY
                                                         (iii) IRDP
    (iii) IRDP
                                                         (iv) MNP
    (iv) MNP
                                                         (A) (i), (ii), (iii), (iv)
    (A) (i), (ii), (iii), (iv)

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

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

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


93. Shankarlal Guru Committee was                  93.

    associated with :

    (A) Agricultural Production                          (A)


    (B) Agricultural Product Pricing                     (B)

    (C) Agricultural Marketing                           (C)

    (D) Public Distribution System                       (D)

                                              44
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94. Which Act was framed specially to        94.                         (NPAs)
    deal with Non-Performing Assets
    (NPAs) ?
                                                   (A)                              1949
    (A) Banking Regulation Act, 1949
                                                   (B)           1999
    (B) FEMA-1999

    (C) Industrial Disputes Act, 1947              (C)                                  1947

    (D) SARFAESI Act, 2002                         (D) SARFAESI                     2002

95. Match the following :                    95.
                Committee

    (a) Goswami Committee                          (a)
    (b) Bhandari Committee                         (b)
    (c) Rangrajan Committee                        (c)
    (d) Gupta Committee                            (d)
                       Area

    (i)   Unemployment                             (i)
    (ii) Industrial Sickness                       (ii)
    (iii) Balance of Payments                      (iii)
    (iv) Restructuring of Rural Banks              (iv)
    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)    (iv)    (iii)   (i)                (C) (ii)      (iv)    (iii)   (i)
    (D) (i)     (iii)    (iv)   (ii)               (D) (i)       (iii)   (iv)    (ii)

                                        45                                                 [P.T.O.
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96. SAFTA is related to ................... .         96. SAFTA

     (A) Education                                          (A)

     (B) Trade                                              (B)

     (C) Security                                           (C)

     (D) Environment                                        (D)

97. Wholesale Price Index (WPI) in                    97.                            (WPI)
     India is released periodically

     by ................ .
                                                            (A)
     (A) Office of Economic Advisor
                                                            (B)
     (B) Central Statistics Office
                                                            (C)
     (C) National Sample Survey Office

     (D) Reserve Bank of India                              (D)


98. New series with base year 2011-12                 98.               2011-12

     has removed the concept of ............ .

     (A) GDPMP                                              (A) GDPMP

     (B) GDPFC                                              (B) GDPFC

     (C) NDPMP                                              (C) NDPMP


     (D) NDPFC                                              (D) NDPFC

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99. Match the following :                            99.

                  Revolution
                                                            (a)
     (a) Yellow revolution
                                                            (b)
     (b) Blue revolution
                                                            (c)
     (c) Red revolution
                                                            (d)
     (d) Pink revolution
           Father of Revolution
                                                            (i)
     (i)    Vishal Tewari
                                                            (ii)
     (ii) Durgesh Patel
                                                            (iii)
     (iii) Dr. Arun Krishnan
                                                            (iv)
     (iv) Sam Pitroda
     Codes :
                                                                    (a)   (b)    (c)     (d)
            (a)   (b)    (c)     (d)
                                                            (A) (i)       (ii)   (iii)   (iv)
     (A) (i)      (ii)   (iii)   (iv)
                                                            (B) (iv)      (i)    (iii)   (ii)
     (B) (iv)     (i)    (iii)   (ii)
                                                            (C) (iv) (iii)       (ii)    (i)
     (C) (iv) (iii)      (ii)    (i)
                                                            (D) (iv) (iii)       (i)     (ii)
     (D) (iv) (iii)      (i)     (ii)
100. In agriculture, marketable surplus              100.
     can be defined as .................... .
     (A) Current production + Stock
     (B) Current production – Marketed                      (A)                   +
         Surplus
                                                            (B)                   –
     (C) Current production – Current
         Consumption                                        (C)                   –
     (D) Current production – Stock –
         Current Consumption                                (D)                   –        –

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ROUGH WORK




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Page 1 of 48

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