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MH SET 2024: 7 April, Paper II, Economics

  • Date: 7 April 2024
  • Paper code: APR-11224
  • Series: A
  • Language: Bilingual
  • 48 pages
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Test Booklet Code & Serial No.
                                                                                                                     A
                                                               ECONOMICS
Signature and Name of Invigilator                                                         Seat No.
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                                                                                  Seat No. ..............................................................
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      (Name) ................................................                 OMR Sheet No.
APR - 11224                                                                                         (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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APR - 11224/II—A




2
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APR - 11224/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.   As per Pollution Haven Hypothesis,
                                                      1.
     Multinational Companies that

     choose to physically invest in foreign

     countries, tend to (re)locate to the

     countries with ..................... .
                                                            (A)
     (A) Greater availability of the

          labour
                                                            (B)
     (B) The       lowest      environmental

          standards or weakest enforcement

     (C) The highest environmental                          (C)

          standards or the most strict

          enforcement

     (D) Lower availability of the labour                   (D)

                                                  3                         [P.T.O.
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2.   Environmental Economics involves                 2.
     question of ...................
     (A) Excessive            production     of
                                                           (A)
           pollution by the market
     (B) Insufficient           protection   of            (B)
           natural world, due to market
           failure
                                                           (C)
     (C) Both of the above
                                                           (D)
     (D) Only (A) is true
3.   .................... method puts direct          3.
     question to individuals to determine
     how much they might willing to pay
     for environmental resources.
                                                           (A)
     (A) Contingent valuation method
     (B) Travel cost method                                (B)
     (C) Hedonic pricing method
                                                           (C)
     (D) Preventive                expenditure
           method                                          (D)

4.   How does the government intervene                4.
     in the supply and demand of
     demerit goods ?
                                                           (A)
     (A) By giving tax rebate
     (B) By applying the sales tax on                      (B)

           the goods                                       (C)
     (C) By increasing production
                                                           (D)
     (D) By increasing consumption

                                                  4
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5.   As part of National Climate Change             5.

     Policy, Indian government is                                 2030

     planning to raise the installed

     capacity of renewable energy by the

     year 2030 to :
                                                         (A) 175 GW
     (A) 175 GW
                                                         (B) 200 GW
     (B) 200 GW

                                                         (C) 250 GW
     (C) 250 GW


     (D) 350 GW                                          (D) 350 GW


6.   Significant factor pointing for                6.

     demographic dividend is ................


     (A) Low dependency ratio                            (A)

     (B) High dependency ratio
                                                         (B)

     (C) Medium dependency ratio
                                                         (C)
     (D) High and medium dependency
                                                         (D)
          ratio

                                                5                               [P.T.O.
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7.   Consider the following specific             7.                          2012
     stages of demographic transition
     associated          with   economic
     development (2012) :

     (1) Low birth rate with low death                (1)
         rate
                                                      (2)
     (2) High birth rate with high death
         rate                                         (3)

     (3) High birth rate with low death
         rate

     Select the correct order of the above
                                                      (A) (1), (2), (3)
     stages using the codes given below :

     (A) (1), (2), (3)                                (B) (2), (1), (3)

     (B) (2), (1), (3)
                                                      (C) (2), (3), (1)
     (C) (2), (3), (1)
                                                      (D) (3), (2), (1)
     (D) (3), (2), (1)
                                                 8.                           NAPCC
8.   Which of the following is not the
     mission under NAPCC ?
                                                      (A)
     (A) National Solar Mission
                                                      (B)
     (B) National Mission for Enhanced
         Energy Efficiency
                                                      (C)
     (C) National Mission on Air

     (D) National Water Mission                       (D)

                                             6
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9.   Only in ............. state sex ratio was        9.    2011


     favourable in 2011, there were 1084                                1000


     females per 1000 males.                                1084


     (A) Bihar                                              (A)


     (B) Punjab                                             (B)


     (C) Haryana                                            (C)


     (D) Kerala                                             (D)


10. Harris Todaro model describes the                 10.

     interrelationship between .............. .


     (A) Growth and migration
                                                            (A)


     (B) Unemployment and inflation
                                                            (B)


     (C) Growth and unemployment
                                                            (C)

     (D) Unemployment and migration
                                                            (D)

                                                  7                            [P.T.O.
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11. Match the following :                          11.

           Types of Goods

    (1) Public Goods
                                                         (1)
    (2) Club Goods
                                                         (2)
    (3) Common Resources

    (4) Private Goods                                    (3)

                Attributes                               (4)

    (i)   Excludability          and   Rival

          Consumption
                                                         (i)
    (ii) Excludability and Non-Rival

          Consumption                                    (ii)

    (iii) Non-Excludability and Non-
                                                         (iii)
          Rival Consumption
                                                         (iv)
    (iv) Non-Excludability and Rival

          Consumption                                            (1)   (2)     (3)    (4)

          (1)   (2)     (3)    (4)                       (A) (ii)      (iii)   (i)    (iv)

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

                                               8
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12. Match the following :                                12.


                  Principles


    (1) Equal Absolute Sacrifice
                                                               (1)

    (2) Equal Proportional Sacrifice
                                                               (2)

    (3) Equal Marginal Sacrifice
                                                               (3)
                   Formulas

            dU Y T
    (i)                      same for all
             d Y T                                                     dU Y T
                                                               (i)
    (ii) U(Y) – U(Y – T) same for all                                   d Y T

            U(Y)    U(Y          T)                            (ii) U(Y) – U(Y – T)
    (iii)                             same for all
                   U(Y)
                                                                       U(Y)    U(Y          T)
                                                               (iii)
            (1)    (2)    (3)                                                 U(Y)


                                                                       (1)    (2)    (3)
    (A) (iii)      (ii)   (i)

                                                               (A) (iii)      (ii)   (i)
    (B) (ii)       (i)    (iii)

                                                               (B) (ii)       (i)    (iii)
    (C) (iii)      (i)    (ii)
                                                               (C) (iii)      (i)    (ii)

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

                                                     9                                           [P.T.O.
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13. According to recommendation of the             13.
    15th Finance Commission, various
    criteria and their weightages are
    suggested for horizontal devolution
    amongst states. Match the following
    criteria and weightages according
    to it :
                                                         (1)
                  Criteria
                                                         (2)
    (1) Population and Area (each)
                                                         (3)
    (2) Forest and Ecology

    (3) Income distance                                  (4)

    (4) Tax and fiscal efforts                           (5)

    (5) Demographic performance

                Weightages                               (i)   45%
    (i)   45%                                            (ii) 2.5%
    (ii) 2.5%
                                                         (iii) 12.5%
    (iii) 12.5%
                                                         (iv) 15%
    (iv) 15%
                                                         (v) 10%
    (v) 10%
                                                               (1)   (2)    (3)     (4)    (5)
          (1)   (2)    (3)     (4)    (5)
                                                         (A) (ii)    (i)    (iv)    (v)    (iii)
    (A) (ii)     (i)   (iv)    (v)    (iii)
                                                         (B) (iv)    (v)    (i)     (ii)   (iii)
    (B) (iv)    (v)    (i)     (ii)   (iii)

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

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

                                              10
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14. According to the budget estimates               14.              2023-24

    of union budget 2023-24, the fiscal                                        2023-24
    deficit for the financial year

    2023-24 is estimated to be .............

    of GDP.
                                                          (A) 6.9%
    (A) 6.9%
                                                          (B) 6.5%
    (B) 6.5%
                                                          (C) 5.5%
    (C) 5.5%
                                                          (D) 5.9%
    (D) 5.9%

15. According to Wiseman-Peacock                    15.

    hypothesis, what is Displacement

    Effect ?

    (A) The     movement       of   public                (A)

        expenditure from unproductive

        to productive level

    (B) Change in the source of public                    (B)

        revenue

    (C) Change in the structure of

         public debt                                      (C)

    (D) The     movement       of   public
                                                          (D)
         expenditure from old lower level

         to new higher level

                                               11                                  [P.T.O.
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16. Integration of discretion and              16.
    automation into a hybrid form of

    fiscal policy is called :

    (A) Built in flexibility                         (A)

    (B) Formula flexibility                          (B)

    (C) Expansionary policy                          (C)

    (D) Contractionary policy                        (D)

17. The zero base budgeting was first          17.

    adopted in :

    (A) India                                        (A)

    (B) Germany                                      (B)

    (C) USA                                          (C)

    (D) France                                       (D)

18. Which of the following is likely to        18.

    be the most inflationary in its

    effects ?
                                                     (A)
    (A) Repayment of public debt
                                                     (B)
    (B) Repayment of internal debt
                                                     (C)
    (C) Printing new currency to

         finance the deficit

    (D) Borrowing from the banks                     (D)

                                          12
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19. The     idea       of   ‘democratic         19.

    decentralization’ in India was

    popularized by :
                                                      (A)            1951
    (A) A.D. Gorwala Committee, 1951
                                                      (B)           1957
    (B) B.R. Mehta Committee, 1957
                                                      (C)           1978
    (C) Ashok Mehta Committee, 1978

    (D) Kelkar Committee, 2004                        (D)    2004

20. Which of the following taxes is most        20.

    likely to be regressive ?

    (A) Tax on inherited property                     (A)

    (B) Tax on income earned                          (B)

    (C) Corporate income tax                          (C)

    (D) Goods and Services Tax (GST)                  (D)

21. Who among the following advocated           21.
    and active fiscal policy to reduce

    unemployment ?

    (A) The classical                                 (A)

    (B) The Keynesian                                 (B)

    (C) Both classical and Keynesian                  (C)

    (D) Monetarist                                    (D)

                                           13                              [P.T.O.
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22. Theory of Money Supply makes                    22.                          H

    money supply a function of ........... .

    (i)   High-powered Money (H)                          (i)                      (H)

    (ii) Currency in Circulation                          (ii)

    (iii) Credit Money                                    (iii)

    (iv) Currency Deposit Ratio (c)                       (iv)                       (c)

    (v) Time Deposit Ratio (t)                            (v)                        (t)

    (vi) Reserve Deposit Ratio (r)                        (vi)                           (r)

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

    (B) (i), (iii), (iv) and (vi)                         (B) (i), (iii), (iv)             (vi)

    (C) (i), (iv) (v)                                     (C) (i), (iv) (v)

    (D) (i), (iv), (v) and (vi)                           (D) (i), (iv), (v)             (vi)

23. According to Okun’s law, 1 extra                23.

    point of unemployment costs .........

    percent of GDP.                                                           (GDP)

    (A) 2%                                                (A) 2

    (B) 6%                                                (B) 6

    (C) 1%                                                (C) 1

    (D) 3%                                                (D) 3

                                               14
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24. Match the following :                                  24.

    (a) Increase in Bank Rate                                    (a)
    (b) Purchase            of    Government                     (b)
          Securities by the Central Bank
                                                                 (c)
    (c) Reduction in CRR
                                                                 (d)
    (d) SLR

    (i)   Can be used as a qualitative                           (i)
          measure                                                (ii)
    (ii) Increases the cost of credit
                                                                 (iii)
    (iii) Induces more credit creation
                                                                 (iv)
    (iv) Increases the availability of
          money          supply          with   the
          commercial banks                                               (a)   (b)    (c)     (d)

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

25. Principles of Supply-side Economics                    25.

    focus on .................... .

    (A) Shifting AS curve to the right                           (A) AS

    (B) Shifting AD curve to the right                           (B) AD

    (C) Shifting AS curve to the left                            (C) AS

    (D) Shifting AD curve to the left                            (D) AD

                                                      15                                              [P.T.O.
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26. The Baumol’s theory of transaction          26.

    demand for money is definitely an

    improvement over the Keynesian

    theory which states that ...........

    (A) The transaction demand for
                                                      (A)
        money is interest elastic

    (B) The transaction of demand for
                                                      (B)
        money is interest inelastic

    (C) The transaction of demand for
                                                      (C)
        money is income inelastic

    (D) The transaction of demand for

        money is income and interest                  (D)

        elastic

27. Expansionary Monetary Policy ......         27.
    income level with ............... in

    equilibrium rate of interest.
                                                      (A)
    (A) increases, fall
                                                      (B)
    (B) decreases, fall

    (C) increases, increase                           (C)

    (D) decreases, increase                           (D)

                                           16
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28. As per Output Method of measuring                         28.
      National Income, value of output
      produced by each firm equals ...... .
      (A) Total Sales
                                                                    (A)
      (B) Total Wages
      (C) Total Sales + Change in                                   (B)

             Inventories                                            (C)              +
      (D) Total Inventories + Total
                                                                    (D)                      +
             Inputs

             Pi , t   Qi, o                                           i
                                                                          Pi , t   Qi, o
29.      i
                                 100          is   the        29.                             100
             Pi , o   Qi , o                                          i
                                                                          Pi , o   Qi , o
         i


      formula of ........................ .
      (A) Paasche Price Index                                       (A)
      (B) Laspeyre’s Price Index                                    (B)

      (C) Consumer Price Index                                      (C)

      (D) GDP Deflator                                              (D)

30. A balanced combination of safe and                        30.
      risky assets relates to ................ .
      (A) Keynes Liquidity Preference
             Theory
                                                                    (A)
      (B) Tobin’s Portfolio Approach to
                                                                    (B)
             Demand for Money
      (C) Baumol’s Inventory Theoretic
                                                                    (C)
             Approach
      (D) Friedman’s Asset Demand for                               (D)
             Money

                                                         17                                           [P.T.O.
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31. If consumption function is given by        31.                  C = 200 + 0.75Y

    C = 200 + 0.75 Y, then the value

    of multiplier will be ...........                (A) 3

    (A) 3
                                                     (B) 4
    (B) 4
                                                     (C) 5
    (C) 5
                                                     (D) 6
    (D) 6

32. If all the elements in a set X are         32.             X                  Y

    in a set Y, but all the elements of                                Y              X
                                                                           X
    Y are not in X, then X is :

    (A) Union set                                    (A)

    (B) Power set                                    (B)

    (C) Proper subset                                (C)

    (D) Empty set                                    (D)

33. If y is a function of x, find the          33.         y   x

    mathematical form from its inverse

    function :
                                                     (A) y = f(x)
    (A) y = f(x)
                                                     (B) y = f –1(x)
    (B) y = f –1(x)
                                                     (C) x = f –1(y)
    (C) x = f –1(y)

    (D) x = f(y)                                     (D) x = f(y)

                                          18
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34. Suppose the function you want to                    34.

    maximise            is          given    as                           1 2
                                                               ( q)         q   90 q   300
                                                                          2
                1 2
     ( q)         q   90 q    300 . Obtain q
                2                                              (q)                     q

    that maximises           (q).
                                                              (A) 90
    (A) 90

                                                              (B) 390
    (B) 390

                                                              (C) 300
    (C) 300

                                                              (D) 210
    (D) 210

                                                                                                   1
                                                        35.                                q   9     p
35. Suppose demand for the oranges is                                                              2
                                            1                                                        q'(p)
    given by the function q             9     p.
                                            2

    Find the differential coefficient q'(p).

                1                                                         1
    (A)                                                       (A)
                2                                                         2

            1                                                         1
    (B)                                                       (B)
            2                                                         2


    (C) 4                                                     (C) 4


    (D) 9                                                     (D) 9


                                                   19                                              [P.T.O.
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                            7    2    3                                      7   2    3
36. Suppose matrix A =      4    8    1          36.                  A =    4   8    1
                            5   12    4                                      5   12   4

    is multiplied by the identity matrix.
    What you will get ?

          7    2    3                                        7   2     3
    (A)   4    8    1                                        4   8    1
                                                       (A)
          5   12    4                                        5   12   4

          1    0   0                                         1   0    0
    (B)   0    1   0                                         0   1    0
                                                       (B)
          0    0   1                                         0   0    1

          0    0   0                                         0   0    0
    (C)   0    0   0                                         0   0    0
                                                       (C)
          0    0   0                                         0   0    0

          7    4   5                                         7   4     5
    (D)   2    8   12                                        2   8    12
                                                       (D)
          3    1    4                                        3   1    4

37. Which one of the following is not the        37.
    test of adequacy of index number ?

    (A) Time Reversal Test                             (A)

    (B) Factor Reversal Test                           (B)

    (C) Circular Test                                  (C)

    (D) Bowley Test
                                                       (D)

                                            20
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38. Which of the following is true in case        38.

     of geometric mean ?

     (i)   It is used to find the average
                                                        (i)
           percent increase in sales,

           production etc.

     (ii) Used in construction of index                 (ii)

           numbers
                                                        (iii)
     (iii) Most suitable when large

           weights have to be given to

           small item and small weights to

           large items                                  (A)        (i)

     (A) Only (i) is true
                                                        (B)        (i)        (iii)
     (B) Only (i) and (iii) are true
                                                        (C) (i), (ii)        (iii)
     (C) (i), (ii) and (iii) are false

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

39. The empirical relationship between            39.
     mean, median and mode can be

     expressed as follows :

     (A) Mode = 3 Median – 2 Mean                       (A)              3            2

     (B) Mode = 2 Median – 3 Mean                       (B)              2            3

                                                        (C)              3            3
     (C) Mode = 3 Median – 3 Mean

     (D) Mode = 6 Median – 5 Mean                       (D)              6            5

                                             21                                           [P.T.O.
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40. If three dice are thrown once, then         40.

    there will be how many exhaustive

    number of cases ?
                                                      (A) 18
    (A) 18
                                                      (B) 108
    (B) 108
                                                      (C) 216
    (C) 216

    (D) 72                                            (D) 72

41. Which of the following is not a non-        41.

    parametric sampling ?

    (A) Judgmental sampling                           (A)

    (B) Convenience sampling                          (B)

    (C) Stratified sampling                           (C)

    (D) Quota sampling                                (D)

42. Which of the following is not used          42.
    to test the stationarity ?

    (A) Dickey-Fuller Test                            (A)

    (B) Autocorrelation Function Test                 (B)

    (C) Engle-Granger Test                            (C)

    (D) Phillips-Perron Test                          (D)

                                           22
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43. For which of the following the 2SLS        43.                        2SLS
    method is most appropriate method
    of estimation ?
                                                     (A)
    (A) Under Identified Equation
                                                     (B)
    (B) Exactly Identified Equation
    (C) Exactly Unidentified Equation                (C)

    (D) Over Identified Equation                     (D)
44. Which of the formula is used for           44.
    testing significance of the sample

    correlation coefficient ?
                                                               r n 2
            r n 2                                    (A) t
    (A) t                                                       1 r2
             1 r2
                                                               r n 2
            r n 2                                    (B) t
    (B) t                                                       2 r2
             2 r2
                                                               r n 3
            r n 3                                    (C) t
    (C) t                                                       1 r2
             1 r2
                                                               r n 2
            r n 2                                    (D) t
    (D) t                                                       1 r2
             1 r2
45. If Y is dependent and X2 and X3 are        45.         Y              X2   X3
    independent variables, then r12.3                             r12.3
    measures the following :
    (A) Correlation between Y and X2
    (B) Correlation between X2 and X3                (A) Y       X2
    (C) Partial Correlation between Y                (B) X2       X3
        and X3
                                                     (C) Y       X3
    (D) Partial Correlation between Y
                                                     (D) Y       X2
        and X2
                                          23                                        [P.T.O.
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46. According to Ronald Coase, why do             46.

    firms exist ?

    (A) They exist to specialize in                     (A)

        production

    (B) They exist to make division of                  (B)
        labour feasible

    (C) They exist to diversity the                     (C)
        production

    (D) They exist to economize on                      (D)
        transaction costs

47. Why is the production possibility             47.
    curve concave ?
                                                        (A)
    (A) There is a difference in the cost

        of production of the two goods

    (B) There is a difference in the price
                                                        (B)
        of the two goods

    (C) There is a difference in the
                                                        (C)
        income of the two consumers

    (D) Resources are not completely                    (D)

        adaptable to alternative uses

        because of the specificity of the

        resources

                                             24
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48. Why does the marginal rate of                  48.

    substitution of one good for another

    diminish ?
                                                         (i)
    (i)   Satiability for a particular good

    (ii) Goods are imperfect substitutes                 (ii)
          of each other
                                                         (iii)
    (iii) The income of the consumer is

          fixed                                          (iv)

    (iv) Diminishing marginal utility of
                                                         (A)     (iii)
          goods

    (A) Only (iii)                                       (B)     (i), (ii)       (iii)

    (B) Only (i), (ii) and (iii)
                                                         (C)     (i), (ii)       (iv)
    (C) Only (i), (ii) and (iv)
                                                         (D)     (ii), (iii)       (iv)
    (D) Only (ii), (iii) and (iv)

49. In case of Giffen goods, the negative          49.

    income effect is ............... the

    substitution effect.
                                                         (A)
    (A) equal to
                                                         (B)
    (B) greater than
                                                         (C)
    (C) lower than

    (D) the same as                                      (D)

                                              25                                          [P.T.O.
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50. If one person can be made better off             50.
    without making any other person
    worse off, it is called ............... .
    (A) Maximum social welfare                             (A)
    (B) Pareto efficiency
                                                           (B)
    (C) Pareto improvement
                                                           (C)
    (D) Interpersonal comparison of
          utility                                          (D)

51. What is meant by economic cost ?                 51.
    (A) Opportunity cost of the self-                      (A)
          owned factors
                                                           (B)
    (B) Accounting cost + Opportunity
          cost of the self-owned factors
                                                           (C)
    (C) Explicit cost
    (D) Minimization of cost                               (D)

52. Which of the following statements                52.
    is/are true about the Kaldor-Hicks
    criterion ?
                                                           (i)
    (i)   Hicks has given his criterion
          from the losers’ point of view
                                                           (ii)
    (ii) Kaldor has given his criterion
          from the gainers’ point of view
    (A) Only (i) is true                                   (A)       (i)

    (B) Only (ii) is true                                  (B)       (ii)
    (C) Both (i) and (ii) are true                         (C) (i)          (ii)
    (D) Neither (i) nor (ii) is true
                                                           (D) (i)         (ii)

                                                26
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53. Assume that there are two firms in           53.

    the industry. Firm I have to choose
    among five strategies and Firm II
    can react by adopting any one of six
    open strategies. Similarly, both
    firms have counter strategies. Thus,
    find how many total payoffs will be
    available for both the firms.
                                                       (A) 6
    (A) 6
                                                       (B) 11
    (B) 11
                                                       (C) 22
    (C) 22

    (D) 30                                             (D) 30

54. In what situation, profit maximises :        54.

    (A) When the difference between                    (A)
         total revenue and total cost is
         highest

    (B) When the difference between                    (B)

         total revenue and total cost is
         lowest
                                                       (C)
    (C) When total revenue is less than
         total cost

    (D) When total revenue and total                   (D)

         cost curve both are the same

                                            27                            [P.T.O.
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55. Which of the following is shown by               55.
    the Grand Utility Possibility
    Frontier ?
    Select the correct answer from the
    codes given below :                                    (i)
    (i)   The distribution of welfare
                                                           (ii)
          between individuals
    (ii) The Pareto-efficient outputs of                   (iii)

          two products
    (iii) Pareto-efficient allocation of
                                                           (iv)
          factors into two products
    (iv) The Pareto-efficient outputs of
          more than two products                           (A) (i), (iii)           (iv)

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

56. What is the reason to used                       56.
    stockpilling policy by entrepreneur ?
    (A) To    decrease        the   cost   of
          production                                       (A)
    (B) To    increase        the   cost   of
                                                           (B)
          production
    (C) To increase the consumer                           (C)
          surplus
                                                           (D)
    (D) To increase the taxation

                                                28
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57. .............. refers to the action taken by          57.

     central bank of the country to cancel
     the impact of its foreign exchange
     market intervention on money
     supply.                                                    (A)
     (A) Sterilization
                                                                (B)
     (B) Capital outflow
                                                                (C)
     (C) Acceleration
     (D) Multiplier                                             (D)

58. The basket of goods included in the                   58.
     GDP deflator includes ..................
     (A) Only Domestically Produced
          Goods                                                 (A)
     (B) Domestic Goods as well as
                                                                (B)
          imported goods
                                                                (C)
     (C) Only capital goods
     (D) Only Consumer Goods                                    (D)

59. For narrow measure of money, which                    59.
     of   the      following     options        is
     incorrect ?
     (A) Note in circulation                                    (A)
     (B) Deposits of institution such as
                                                                (B) UTI, IDBI, IFCI
          UTI, IDBI, IFCI
     (C) Cash reserves on hands with all
          banks
                                                                (C)
     (D) Deposits held by a bank in other
          banks                                                 (D)

                                                     29                                 [P.T.O.
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60. What distinguishes a bank from a              60.
     non-bank financial institution ?
     (A) Accepting time deposits as a                   (A)
           courtesy
                                                        (B)
     (B) Accepting demand deposits
                                                        (C)
     (C) Lending
     (D) Accepting loans and borrowings                 (D)

61. .................   are     financial         61.
     intermediaries that pool the
     resources of many small investors by
     selling them shares and using the
     proceeds to buy securities.
                                                        (A)
     (A) Derivatives
                                                        (B)
     (B) Insurance
     (C) Mutual funds                                   (C)

     (D) Provident funds                                (D)

62. Which of the statements gives an              62.
     accurate picture of the effect of the
     increase in the repo rate ?
     (A) The money supply in the                        (A)
           country will decrease
     (B) The money supply in the                        (B)

           country will increase
                                                        (C)
     (C) The money supply in the
           country will increase initially
           and then decrease
                                                        (D)
     (D) There is no effect on the money
           supply in the country

                                             30
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63. Capital market deals in lending and              63.
     borrowing of .................

     (A) Short term credit                                 (A)

     (B) Medium term credit                                (B)
     (C) Long term credit                                  (C)
     (D) Both medium term credit and                       (D)
          long-term credit

64. Which of the following services, is              64.
     not provided by the capital market ?

     (A) Provision of Underwriting
                                                           (A)
          facilities

     (B) Participation in equity market                    (B)

     (C) Expert advice on management                       (C)
          of investment in industrial
          securities
                                                           (D)
     (D) Capital tax calculation and
          consultancy based on that

65. First step in the field of mutual fund           65.
     industry happened with the setup of
     ................. by Government of India
     and the Reserve Bank.
                                                           (A)
     (A) LIC
                                                           (B)
     (B) GIC
                                                           (C)
     (C) UTI

     (D) IDBI                                              (D)

                                                31                         [P.T.O.
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66. Which of the following is not                         66.
    included in the supply of money

    measure ?

    (A) Inter-bank deposits                                     (A)

    (B) Demand deposits with financial                          (B)
         institutions on a net basis

    (C) Currency          and     coins        are

         available       to     the   general                   (C)

         population

    (D) Deposits with the Reserve Bank
                                                                (D)
         of India (RBI) in addition to the
                                                                      (RBI)
         above

67. Covered interest parity theorem                       67.

    takes .................... into account.

    (A) Spot and forward rates plus
                                                                (A)
         interest rates in two countries

    (B) Spot and forward rates plus call
                                                                (B)
         money rate

    (C) Forward rate and call money

         rate                                                   (C)

    (D) Spot rate and interest rates in
                                                                (D)
         two countries
                                                     32
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68. (i)   India adopted LERMS in 1992.                  68. (i)     1992                  LERMS
    (ii) In 1993, dual exchange rate

          system was replaced by a

          unified floating exchange rate                      (ii) 1993
          in India.

    Identify the correct statements :

    (A) Statement (i) is correct, (ii) is

          incorrect

    (B) Statement (i) is incorrect, (ii) is
                                                              (A)          (i)     (ii)
          correct

    (C) Statements (i) and (ii) both are                      (B)          (i)            (ii)

          correct
                                                              (C)          (i)    (ii)
    (D) Statements (i) and (ii) both are

          incorrect                                           (D)          (i)   (ii)

69. Devaluation        of   the    domestic             69.
    currency will help to eliminate the
    trade deficit, if goods are ............. in
    nature.

    (A) Less elastic                                          (A)

    (B) More elastic                                          (B)

    (C) Completely inelastic                                  (C)

    (D) Less inelastic                                        (D)
                                                   33                                            [P.T.O.
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70. British Bankers Association comes          70.
    up with the benchmark rates for all
    different securities of different
    maturities. It is commonly known
    as ....................... .
                                                     (A)
    (A) Mumbai Interbank offered rate

    (B) London Interbank offered rate                (B)

    (C) Securities Exchange offered
                                                     (C)
           rate

    (D) Covered Interest offered rate                (D)

71. Which of the following is not              71.
    included in the current account of
    the Balance of Payment ?
                                                     (A)
    (A) Insurance Payment
                                                     (B)
    (B) Govt. not elsewhere considered
                                                     (C)
    (C) Transfers

    (D) Bank’s overseas deposits                     (D)

72. Different prices of any homogenous         72.
    commodity in two different markets,
    leads to ..................

    (A) Speculation                                  (A)

    (B) Hedging                                      (B)

    (C) Arbitrage                                    (C)

    (D) Dumping                                      (D)
                                          34
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73. (i)   Offer          curve     incorporates          73. (i)
          elements of both demand and
          supply.
                                                               (ii)
    (ii) The offer curve of a nation can
          be derived from the nation’s
          production              frontier,   its
          indifference map and various
          hypothetical relative commodity
          prices at which trade could take
                                                               (A)
          place.
    (A) Both the statements are true                           (B) (i)               (ii)
    (B) (i) is true (ii) is false
                                                               (C) (i)                      (ii)
    (C) (i) is false and (ii) is true
                                                               (D)
    (D) Both the statements are false
74. Match the following :                                74.
    (a) Inter-industry trade                                   (a)
    (b) Intra-industry trade                                   (b)
    (c) Product life cycle                                     (c)
    (d) Factor price equalization                              (d)
    (i)   Vernon                                               (i)
    (ii) Samuelson                                             (ii)
    (iii) Acquired comparative advantage                       (iii)
    (iv) Different factor endowment                            (iv)
          (a)      (b)     (c)     (d)                                 (a)   (b)        (c)        (d)
    (A) (iv) (iii)         (i)     (ii)                        (A) (iv) (iii)           (i)        (ii)
    (B) (i)     (iii)      (iv)    (ii)                        (B) (i)       (iii)     (iv)        (ii)
    (C) (iii)      (i)     (ii)    (iv)                        (C) (iii)     (i)       (ii)        (iv)

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

                                                    35                                                     [P.T.O.
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75. International Economic Theory                75.
    examines :

    (A) The reasons for and the effects                (A)

        of trade policy and trade
        restrictions
                                                       (B)
    (B) The basis for and the gains from
        trade                                          (C)       (B)
    (C) Only (B)
                                                       (D) (A)    (B)
    (D) Both (A) and (B)

76. In Autarky, a nation’s production            76.
    possibility frontier is also its :

    (A) Opportunity cost                               (A)

    (B) Exchange option/frontier                       (B)

    (C) Consumption frontier                           (C)

    (D) Revenue frontier                               (D)

77. Converting your local financial              77.
    assets into foreign financial assets
    and vice-versa at the market
    determined exchange rate is .........

    (A) Reserve Account
                                                       (A)
    (B) American Depository Receipts
                                                       (B)
        (ADRs)

    (C) Capital Account Convertibility                 (C)

    (D) Current Account Convertibility                 (D)

                                            36
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78. Which of the following are the                78.
    limitations of head count index of
    measurement of poverty ?
                                                        (i)
    (i)   It doesn’t take into account the
          intensity of poverty                          (ii)

    (ii) It doesn’t indicate how poor the
          poor are                                      (iii)
    (iii) It doesn’t estimate poverty by
          individuals but by households
                                                        (A)        (i)
    (A) Only (i)
                                                        (B)        (ii)     (iii)
    (B) Both (ii) and (iii)

    (C) Only (iv)                                       (C)       (iv)

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

79. If the production function exhibits           79.
    decreasing returns to scale in the
    steady state, an increase in the rate
    of population would lead to :
                                                        (A)
    (A) Growth in total output and
          growth in output per worker
                                                        (B)
    (B) Growth in total output but no
          growth in output per worker

    (C) Growth in total output but a                    (C)

          decrease in output per worker

    (D) No growth in total output or in                 (D)
          output per worker

                                             37                                     [P.T.O.
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80. Which of the following options is
                                                     80.
    correct when we only accomplish two
    out of three pillars of sustainable
    development ?

    (A) Economic + Environmental
          Sustainability = Viable
                                                           (A)       +                            =
    (B) Social      +       Environmental
          Sustainability = Bearable                        (B)           +                        =
    (C) Social          +            Economic
          Sustainability = Equitable                       (C)           +                            =

    (D) Political           +        Economic
                                                           (D)           +                        =
          Sustainability = Workable

81. Which of the following theories are              81.
    associated with the dependency
    theory ?
                                                           (i)
    (i)   Development           of     under-
                                                           (ii)
          development
                                                           (iii)
    (ii) World-systems theory
                                                           (iv)
    (iii) Critical minimum effort

    (iv) Theory of unequal exchange                        (A)     (i)           (iii)

    (A) Only (i) and (iii)                                 (B)     (i), (ii)             (iii)
    (B) Only (i), (ii) and (iii)
                                                           (C)     (i), (ii)             (iv)
    (C) Only (i), (ii) and (iv)
                                                           (D)     (ii), (iii)             (iv)
    (D) Only (ii), (iii) and (iv)
                                                38
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82. The output elasticity of labour is :          82.
    (A) equal to one at the level of
                                                        (A)
         output where average product
         is at a maximum

    (B) the percentage change in labour                 (B)
         required to produce one more
         unit of output
                                                        (C)
    (C) equal to the ratio of total
         product to the quantity of
         labour employed

    (D) a measure of the percentage
                                                        (D)
         change in output that can result
         when the quantity of labour is
         changing

83. If the investment rate of an economy          83.                         24%

    is 24%, capital-output ratio is 4 and                                 4
    the growth rate of population is 1.5%,                         1.5%
    what would be the growth rate of
    per capita income ?
                                                        (A) 4.5%
    (A) 4.5%

    (B) 5.5%                                            (B) 5.5%

    (C) 6.5%                                            (C) 6.5%

    (D) 3.5%                                            (D) 3.5%

                                             39                                [P.T.O.
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84. According to Adam Smith, there is            84.
    a mutual dependence between .......

    (A) division of labour and the
                                                       (A)
        extent/size of the market

    (B) invisible hand and business                    (B)

        cycles
                                                       (C)
    (C) capital   accumulation and
        general price level
                                                       (D)
    (D) division of labour and industrial
        integration

85. What is Palma ratio ?                        85.
                                                       (A)                1%
    (A) Share of richest 1% population
        in GNI/Share of poorest 99%                             99%
        population in GNI
                                                       (B)               10%
    (B) Share of richest 10% population
        in GNI/Share of poorest 10%                             10%
        population in GNI
                                                       (C)                1%
    (C) Share of richest 1% population
        in GNI/Share of poorest 10%                             10%
        population in GNI

    (D) Share of richest 10% population                (D)               10%

        in GNI/Share of poorest 40%
                                                                40%
        population in GNI

                                            40
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86. In case of Schumpeter’s model of                  86.
    economic growth, which of the
    following statements is true ?

    (A) The        capitalist       economy
                                                            (A)
         ultimately reaches stationary
         state

    (B) The profit rate tends to become
                                                            (B)
         equal to zero at the end of the
         development process

    (C) Cyclical swings are the cost of
         economic development under                         (C)

         capitalism

    (D) The      process      of   economic
         development is not a cyclical                      (D)
         process but is a structural
         process

87. According to Harrod, a technical                  87.

    change is neutral if ................. .

    (A) MP K /MP L = capital-labour                         (A)
         ratio                                                    =
    (B) at a constant rate of profit,                       (B)
         capital-output         ratio     also
         remains constant
                                                            (C)
    (C) it is labour or capital saving
                                                            (D)
    (D) MPK/MPL = wage rate-interest
         rate ratio                                               =

                                                 41                             [P.T.O.
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88. Which of the following banks were        88. 2019


    merged with Bank of Baroda in

    2019 ?                                         (i)

    (i)   Union Bank of India                      (ii)

    (ii) Dena Bank
                                                   (iii)

    (iii) Indian Bank
                                                   (iv)
    (iv) Vijaya Bank
                                                   (A) (i)    (ii)
    (A) (i) and (ii)
                                                   (B) (ii)   (iii)
    (B) (ii) and (iii)

                                                   (C) (ii)   (iv)
    (C) (ii) and (iv)

    (D) (i) and (iii)                              (D) (i)    (iii)


89. Kisan Credit Card Scheme was             89.

    introduced by :

    (A) NABARD                                     (A)

                                                   (B)
    (B) Reserve Bank of India

                                                   (C)
    (C) Co-operative Banks

                                                   (D)
    (D) Regional Rural Banks

                                        42
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90. Which Article in the Constitution of         90.

    India deals with the Annual

    Financial Statement ?
                                                       (A)         111
    (A) Article 111
                                                       (B)         112
    (B) Article 112
                                                       (C)         113
    (C) Article 113
                                                       (D)         114
    (D) Article 114

91. Which of the following are the main          91.

    objectives of Agriculture Census in

    India ?
                                                       (i)
    (i)   To describe the structure and

          characteristics of agriculture

          sector                                       (ii)

    (ii) To provide benchmark data
                                                       (iii)
          upto village level

    (iii) To provide statistical frame of

          operational holding                          (A) (i)         (ii)

    (A) (i) and (ii) only
                                                       (B) (i)         (iii)
    (B) (i) and (iii) only
                                                       (C) (ii)        (iii)
    (C) (ii) and (iii) only

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

                                            43                                           [P.T.O.
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92. What is the main objective of                 92.

    Ayushman Bharat-Pradhan Mantri

    Jan Arogya Yojana ?
                                                        (A)
    (A) To provide financial protection

           to poor and vulnerable families

           for their health expenditure

    (B) To promote the growth of the                    (B)

           healthcare industry

    (C) To provide subsidies to private
                                                        (C)
           hospitals
                                                        (D)
    (D) To create a separate healthcare

           system for the poor

93. India’s first ‘National Investment            93.

    and Manufacturing Zone’ is situated

    in :

    (A) Andhra Pradesh                                  (A)

    (B) Gujarat                                         (B)

    (C) Maharashtra                                     (C)

    (D) Uttar Pradesh                                   (D)

                                             44
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97. Which of the following statements             97.
    is false ?
                                                        (A) MGNREG
    (A) MGNREGS is implemented

         through an Act

    (B) MGNREGS provides some                           (B) MGNREG
         reservation to women

    (C) The wage rate of Rs. 100 per
                                                        (C) MGNREG
         day     is    provided    through

         MGNREGS                                              100

    (D) MGNREGS does not provide
                                                        (D) MGNREG
         wage         employment    where

         unskilled manual work is

         involved

98. Which of the following is the correct         98.

    formula to calculate National Multi-

    Dimensional Poverty Index in
                                                        (A) MPI = H*I
    India ?

    (A) MPI = H*I                                       (B) MPI = H*A

    (B) MPI = H*A
                                                        (C) MPI = H*P
    (C) MPI = H*P
                                                        (D) MPI = P*A
    (D) MPI = P*A

                                             46
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                                                 99.
99. India’s market capitalisation in the

    year 2023 was ..............                        (A)

    (A) Half the GDP of India
                                                        (B)      10
    (B) 10th largest in the world                       (C)

    (C) Nearby GDP of India                             (D)

    (D) 1/4th of the GDP of India

100. Which of the following statements           100.

    is true ?
                                                        (A)   2022
    (A) India had the largest road

         network in the world in the year

         2022
                                                        (B)   2022
    (B) India had the second largest

         road network in the world in the

         year 2022

    (C) India had the largest railway                   (C)   2022

         network in the world in the year

         2022

    (D) India had the second largest                    (D)   2022

         railway network in the world in

         the year 2022

                                            47                                  [P.T.O.
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ROUGH WORK




    48
Page 1 of 48

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