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MH SET 2025: 15 June, Paper II, Economics

  • Date: 15 June 2025
  • Paper code: JUN-11225
  • Series: A
  • Language: Bilingual
  • 48 pages
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Test Booklet Code & Serial No.
                                                                                                                               A
                                                                             Paper-II
                                                                       ECONOMICS
       Signature and Name of Invigilator                                                          Seat No.
       1. (Signature) .........................................                                                      (In figures as in Admit Card)
             (Name) ................................................                      Seat No. ..............................................................
       2. (Signature) .........................................                                                (In words)

             (Name) ................................................                  OMR Sheet No.
       JUN - 11225                                                                                                 (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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       2.          This paper consists of 100 objective type questions. Each question
                   will carry two marks. All questions of Paper II will be compulsory.      2.
       3.          At the commencement of examination, the question booklet
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                   requested to open the booklet and compulsorily examine it as             3.
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                   the correct response against each item.
                   Example : where (B) is the correct response.                                              (B)

                                A                  C        D                                                        A              C       D
                   Following wrong methods should not be used as they are not                                                                 (Digitized)
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CORRECT METHOD                          WRONG METHODS
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        C      D        A B C D        A B C D         A B C D      A B C D
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JUN - 11225/II—A




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JUN - 11225/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.   Why does a firm under perfect
                                                 1.
     competition continue to operate in
     the long run despite earning only
     normal/zero profits ?
     (A) The firm operates at socially
                                                       (A)
         optimum level of output in the
         long run
     (B) The firm achieves maximum
                                                       (B)
         productive efficiency in the long
         run
     (C) The opportunity cost of the self-             (C)
         owned factors is already being
         recovered by the firm in the
         long run
     (D) All the firms are operating
                                                       (D)
         under identical cost conditions
         in the long run

                                             3                            [P.T.O.
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2.   What is the short run supply curve
                                                      2.
     of a firm in a perfectly competitive

     market ?

     (A) The part of the marginal cost                     (A)
          curve that lies above the

          average cost curve

     (B) The part of the marginal cost                     (B)
          curve that lies above the

          average fixed cost curve

     (C) The part of the marginal cost                     (C)
          curve that lies above the

          average variable cost curve

     (D) The part of the average variable                  (D)
          cost curve that lies above the

          marginal cost curve

3.   When the Total Product (TP) is                   3.

     maximum, the Average Product

     (AP) is ................. and the Marginal

     Product (MP) is ................... .                 (A)
     (A) maximum, minimum
                                                           (B)
     (B) minimum, maximum
                                                           (C)
     (C) Decreasing, zero

     (D) Zero, decreasing                                  (D)

                                                  4
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4.   According to Bergson-Samuelson                    4.
     social welfare function approach,
     social      welfare         is   maximized
     when ..................... .
     (A) The social indifference curve is
           tangent to the utility possibility
           curve
     (B) The social indifference curve
           intersects the utility possibility
           curve
     (C) The social indifference curve is
           tangent to the production
           possibility curve
     (D) The social indifference curve
           intersects          the    production
           possibility curve
5.   To maintain price leadership,
     a dominant firm must ensure
     that ...................... .
     (A) the small firms do not produce
           more or less than the level
           agreed upon market sharing
           agreement
     (B) it does not charge a price higher
           than the market price
     (C) the small firms do not improve
           the quality of the product
     (D) the small firms do not introduce
           innovations

                                                   5                  [P.T.O.
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6.   In   Chamberlin’s        alternative       6.

     approach, why does the excess

     capacity of a monopolistically

     competitive firm emerge ?
                                                     (A)
     (A) Absence     of   active    price

          competition despite free entry

          and exit                                   (B)

     (B) Active price competition and

          free entry and exit
                                                     (C)
     (C) Active price competition

     (D) Free entry and exit                         (D)


7.   Which of the following term is more        7.

     important in welfare economics and

     in designing government policy ?

     (A) Indifference curve                          (A)

     (B) Consumer surplus                            (B)

     (C) Equi-marginal utility                       (C)

     (D) Revealed preference                         (D)

                                            6
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8.   Which of the following is an example       8.

     of adverse selection ?

     (A) Buying a used car                           (A)

     (B) Buying health insurance                     (B)

     (C) Buying a high-quality product               (C)

     (D) Investing in capital market                 (D)


9.   Which of the theorems of welfare           9.

     economics considered that the

     general competitive equilibrium is

     Pareto Optimal ?
                                                     (A)
     (A) Only first theorem of welfare

         economics
                                                     (B)
     (B) Only second theorem of welfare

         economics
                                                     (C)
     (C) Both the first and second

         theorem of welfare economics

     (D) Neither the first nor second                (D)

         theorem of welfare economics

                                            7                        [P.T.O.
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10. Which of the following explains the          10.

    concept of risk ?
                                                       (A)
    (A) When the variability of possible
          outcomes is very high
    (B) When the variability of possible               (B)

          outcomes is very low
    (C) When the variability of possible               (C)
          outcomes is constant
    (D) When the variability of possible               (D)
          outcomes is highly accurate
11. Which of the following statement(s)          11.
    is/are true for the assumption of Pure
    Competition ?
    Select the correct answer from the
    codes given below :
    (i)   The firm in pure competition is              (i)
          a price taker
                                                       (ii)
    (ii) The         firms     produced
          homogeneous products                         (iii)
    (iii) This market includes a large
          number of firms
                                                       (iv)
    (iv) The firms produce heterogeneous
          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)

                                             8
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12. In the equation CP = kYP, k is                   12. CP = kYP                           k
    determined by .................. .
    (i)   Interest Rate                                    (i)
    (ii) The Proportion of Non-human                       (ii)
          Wealth to Human Wealth
    (iii) Desire to add to One’s Wealth                    (iii)

    (iv) Inflation Rate                                    (iv)

    (v) Permanent Income                                   (v)

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

    (B) (i) and (ii)                                       (B) (i)         (ii)

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

    (D) (iii), (iv) and (v)                                (D) (iii), (iv)            (v)

13. Which is the short run Keynesian                 13.
    consumption function ?

    (A) C = a + bY                                         (A) C = a + bY

    (B) C = a – bY                                         (B) C = a – bY

    (C) C = bY                                             (C) C = bY

    (D) C = abY                                            (D) C = abY

14. When income of individuals or                    14.
    households falls, their consumption
    expenditure does not fall to that
    extent. This is known as ............... .
                                                           (A)
    (A) Demonstration Effect
                                                           (B)
    (B) Income Effect
    (C) Ratchet Effect                                     (C)

    (D) Uprise Effect                                      (D)

                                                 9                                              [P.T.O.
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15. Choose the correct statement :              15.

    (A) Transfer Payments and Net
                                                      (A)
        Interest Payments on public

        debt are included as payment

        in Foreign Account in Social

        Accounting System

    (B) Transfer Payments and Net
                                                      (B)
        Interest Payments on public

        debt are included as payment

        in Consumption Account in

        Social Accounting System

    (C) Transfer Payments and Net
                                                      (C)
        Interest Payments on public

        debt are included as receipts

        in Capital Account in Social

        Accounting System

    (D) Transfer Payments and Net
                                                      (D)
        Interest Payments on public

        debt are included as receipts in

        Consumption Account in Social

        Accounting System

                                           10
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16. Which of the following statements                 16.
    is false ?
                                                            (A)
    (A) India experienced the dual
        exchange rate system                                (B)

    (B) Indian rupee was linked with
        Pound Sterling                                      (C)       IMF
    (C) India is the founding member
        of IMF
                                                            (D)
    (D) India is using flexible exchange
        rate system since independence
17. In the Keynesian range of the LM                  17. LM
    curve .................. .                              (A)
    (A) Monetary Policy is fully effective                  (B)
                                                            (C) (A)    (B)
    (B) Fiscal Policy is ineffective
    (C) Both (A) and (B) are true                           (D) (A)    (B)
    (D) Both (A) and (B) are false
18. Balanced Budget Multiplier (BBM)                  18.                       (BBM)
    states that, if government spending
    and taxes change in equal amount,
    then income will change by an
    amount       equal    to   change      in
    government expenditure and the
    value of multiplier will be ............ .
                                                            (A) 1
    (A) 1
                                                            (B) 0.5
    (B) 0.5
                                                            (C) 3.5
    (C) 3.5
                                                            (D) 3
    (D) 3

                                                 11                                     [P.T.O.
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19. The ratio of cumulative loss of GDP              19.
    (as a result of disinflation policy) to
    the reduction of inflation that is
    actually achieved is .................. .

    (A) Inflation-Unemployment Trade-
                                                           (A)
          off
                                                           (B)
    (B) Sacrifice Ratio

    (C) Growth-Inflation Trade-off                         (C)

    (D) Growth-Price Trade-off                             (D)

20. Which of the following are not the               20.
    classical principles ?

    (i)   Supply is equal to Demand                        (i)

    (ii) Money is used as a Store of                       (ii)
          Value

    (iii) Interest Rate is Flexible
                                                           (iii)
    (iv) Capitalist Economy is not self-
                                                           (iv)
          equilibrating

    (v) No government intervention in
                                                           (v)
          an economy
                                                           (A) (i)           (ii)
    (A) (i) and (ii)

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

    (C) Only (ii)                                          (C)        (ii)

    (D) (ii) and (iv)                                      (D) (ii)          (iv)

                                                12
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21. Liquidity preference curve is
                                                 21.
    downward sloping from left to right,
    because .................... .

    (A) When the rate of interest is low,              (A)
          the Central Bank reduces the
          supply of money

    (B) As rate of interest falls, the                 (B)
          opportunity cost of holding
          money does not change

    (C) As rate of interest rises, the                 (C)
          opportunity cost of holding
          money rises

    (D) As rate of interest rises, the                 (D)
          opportunity cost of holding
          money falls

22. The technological relationship               22.

    between the change in capital stock
    and the change in the level of output
    is defined as .................... .

    (A) The Output Coefficient                         (A)

    (B) The Multiplier Coefficient
                                                       (B)
    (C) Incremental Capital-Output
                                                       (C)
          Ratio

    (D) Investment Multiplier                          (D)

                                            13                         [P.T.O.
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23. People quickly form and revise their           23.

    expectations using all available

    information and intelligently predict

    the changes in prices and form their

    expectations on that basis. This

    statement relates to ................ .


    (A) Classical Theory                                 (A)


    (B) Keynesian Theory                                 (B)


    (C) Adaptive Expectations Approach                   (C)


    (D) Rational Expectations Approach                   (D)


24. Which of the following is not an               24.

    example of negative externality ?


    (A) Air pollution                                    (A)


    (B) Vaccination                                      (B)


    (C) Contamination of water                           (C)

    (D) Crime                                            (D)

                                              14
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25. Which of the following statements              25.
    is true in case of the principle of
    equal marginal sacrifice ?

    (A) Each taxpayer bears the same                     (A)
          absolute loss of utility from
          taxation

    (B) Each taxpayer bears the tax                      (B)

          burden in such a way that the
          pre-tax marginal utility of
          income is the same for everyone

    (C) Each taxpayer bears tax burden                   (C)
          in such a way that the post-tax
          marginal utility of income is the
          same for everyone

    (D) Each taxpayer bears tax burden                   (D)
          in such a way that the marginal
          utility of all commodities is the
          same for everyone

26. In a closed economy, if the marginal           26.
    propensity to consume is 0.75 and                    0.75              30%
    the average tax rate is 30%, what
    would be the size or the value of
    the    government       expenditure
    multiplier ?
                                                         (A) 3.2
    (A) 3.2
                                                         (B) 2.1
    (B) 2.1

    (C) 4.25                                             (C) 4.25

    (D) 3.1                                              (D) 3.1

                                              15                              [P.T.O.
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27. According to the union budget                    27.                2023-24    2023-24
    2023-24, total transfers to the states
    and union territories are estimated
    to be ................... of total public
    expenditure for the financial year
    2023-24.
                                                           (A) 37.36%
    (A) 37.36%
                                                           (B) 41.36%
    (B) 41.36%
                                                           (C) 44.36%
    (C) 44.36%

    (D) 31.36%                                             (D) 31.36%

28. When individuals with unequal tax                28.
    paying ability are taxed unequally
    in order to equalise the sacrifice is
    called :
                                                           (A)
    (A) Horizontal equity
                                                           (B)
    (B) Vertical equity
                                                           (C)
    (C) Taxable capacity

    (D) Tax avoidance                                      (D)

29. Which of the following is an example             29.
    of built in flexibility ?

    (A) Welfare grants                                     (A)

    (B) Infrastructure spending                            (B)

    (C) Fiscal deficit                                     (C)

    (D) Unemployment insurance                             (D)

                                                16
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30. Balanced Budget Multiplier works               30.

    only if :

    (A) Transfer payments are zero                       (A)

    (B) Y/G is negative                                (B) Y/G

    (C) Taxes are regressive                             (C)

    (D) Tax base is small                                (D)

31. Arrange the following in descending            31. 2023-24

    order according to the extent of

    expenditure of Union Government in
                                                         (i)
    Budget 2023-24.
                                                         (ii)
    (i)   Central Sector Schemes
                                                         (iii)
    (ii) Interest Payments

    (iii) States’ share of taxes and duties
                                                         (iv)
    (iv) Centrally sponsored schemes

    Options :
                                                         (A) (i)     (ii)    (iii)   (iv)
    (A) (i)     (ii)    (iii)   (iv)

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


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

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

                                              17                                            [P.T.O.
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32. The         Kelkar        Committee             32.
    recommendations are related to :

    (A) Fiscal consolidation                              (A)

    (B) Guidelines for the privatization                  (B)
          of PSUs

    (C) Power sector reforms                              (C)

    (D) Tax incidence                                     (D)

33. Diffusion theory of tax incidence               33.
    states that :
                                                          (i)
    (i)   Tax burden is shifted and
          reshifted until it is spread
          throughout the society                          (ii)

    (ii) Possibility of diffusion of the tax
          burden is more in indirect taxes                (iii)

    (iii) New taxes are preferable than
          old taxes                                       (iv)
    (iv) Tax diffusion deals with tax
          incidence.

    Which of the above statement/
    statements is/are correct ?

    Options :
                                                          (A)        (iii)
    (A) Only (iii)

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

    (C) (ii) and (iii)                                    (C) (ii)           (iii)

    (D) Only (i)                                          (D)        (i)

                                               18
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34. According to Harrod model, the                   34.
    natural rate of the growth is
    determined by the current growth
    rate of the working population and
    current potential for ...................
    progress.                                              (A)
    (A) Economic
                                                           (B)
    (B) Social
                                                           (C)
    (C) Technical

    (D) Socio-economic                                     (D)

35. What is correct sequence of stages               35.
    in the Marxian theory of economic
    growth ?
                                                           (1)
    (1) Slavery
                                                           (2)
    (2) Capitalism
                                                           (3)
    (3) Primitive communism
                                                           (4)
    (4) Feudalism
                                                           (5)
    (5) Socialism
                                                           (6)
    (6) Communism

    (A) (1)–(2)–(3)–(4)–(5)–(6)                            (A) (1)–(2)–(3)–(4)–(5)–(6)

    (B) (1)–(4)–(5)–(2)–(3)–(6)                            (B) (1)–(4)–(5)–(2)–(3)–(6)

    (C) (3)–(1)–(4)–(6)–(2)–(5)                            (C) (3)–(1)–(4)–(6)–(2)–(5)

    (D) (3)–(1)–(4)–(2)–(5)–(6)                            (D) (3)–(1)–(4)–(2)–(5)–(6)

                                                19                                       [P.T.O.
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36. Which growth model inspired the            36.

    use of capital-output ratio for

    development planning ?

    (A) The Harrod-Domar model                       (A)

    (B) Solow’s model                                (B)

    (C) Kaldor’s model                               (C)

    (D) Feldman’s model                              (D)

37. How does neoliberalism affect              37.
    economic growth ?

    (A) Free     market   –   economic
                                                     (A)
        freedom – allocative efficiency

        – economic growth

    (B) Market regulation – fiscal
                                                     (B)
        intervention      –    market

        distortion – economic growth

    (C) Market       regulation      –

        displacement – social change –               (C)
        economic growth

    (D) Free market – social barriers –
                                                     (D)
        efficient society – economic

        growth

                                          20
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38. Kenya was the first country where                38.
    ................... model was implemented
    to control the high unemployment
    in their cities.
                                                           (A)
    (A) Lewis model
                                                           (B)
    (B) Harris–Todaro model
                                                           (C)
    (C) Cobb–Douglas production theory
                                                           (D)
    (D) Unbalanced growth theory
39. The Solow growth model describes :               39.

    (A) How output is determined at a
        point in time
                                                           (A)
    (B) How output is determined with
        fixed amount of labour and                         (B)
        capital
    (C) How saving, population growth
        and technological change affect                    (C)
        output over time
    (D) The static allocation, production
                                                           (D)
        and distribution of the economy’s
        output
40. According to Joan Robinson’s Golden              40.
    Age equilibrium model, national
    income is the sum of :
    (A) Total wage bill and total profit                   (A)
    (B) Total output and total demand                      (B)
    (C) Total capital and total labour                     (C)
    (D) Total rent and total inputs                        (D)

                                                21                         [P.T.O.
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41. Which of the following strategies             41.

    about unbalanced growth is right ?

    (A) Deliberate imbalance in favour
                                                        (A)
          of some sectors

    (B) Simultaneous investment in all
                                                        (B)
          sectors
                                                        (C)
    (C) Big push
                                                        (D)
    (D) Balanced regional development

42. In Solow’s model, the economy                 42.

    achieves steady state growth path

    because .................. .

                                                        (A)
    (A) capital-labour ratio adjusts

          through time to the equilibrium

          value of the ratio
                                                        (B)
    (B) the coefficients of production are

          fixed                                         (C)

    (C) population growth is constant
                                                        (D)
    (D) the technological change is

          labour saving

                                             22
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43. In endogenous growth models, which              43.
    of the following variables is considered
    endogenous ?
                                                          (i)
    (i)   Learning by doing
                                                          (ii)
    (ii) Technological advancement
                                                          (iii)
    (iii) Investment in human capital
                                                          (iv)
    (iv) Population growth
                                                          (A)     (ii)
    (A) Only (ii)
                                                          (B)     (i)          (iii)
    (B) Only (i) and (iii)
                                                          (C)     (i), (iii)            (iv)
    (C) Only (i), (iii) and (iv)

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

44. In case of Hirschman’s unbalanced               44.
    growth theory, which of the following
    statements is not true ?
                                                          (A)
    (A) The         unbalanced     growth
          strategy is especially applicable
          to underdeveloped nations                       (B)

    (B) Development occurs via excess
          capacity of social overhead
          capital
                                                          (C)
    (C) Development occurs via shortage
          of social overhead capital
                                                          (D)
    (D) Development occurs via equal
          simultaneous growth of social
          overhead capital and directly
          productive activity

                                               23                                              [P.T.O.
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45. According to Thomas Piketty, which                 45.
     of the following forces is the main
     driver of wealth inequality ?
     (A) rate of saving < rate of                            (A)   <
         investment                                          (B)   >
     (B) rate of saving > rate of
         investment                                          (C)                >

     (C) rate of return on capital > rate
         of economic growth
                                                             (D)                <
     (D) rate of return on capital < rate
         of economic growth
46. If the bank purchases more of                      46.
    foreign exchange than the selling of
    it, then it will have a ...................
    position.
                                                             (A)
     (A) Short
                                                             (B)
     (B) Long
                                                             (C)
     (C) Oversold
                                                             (D)
     (D) Squared
47. An economy with long history of                    47.
    extensive trade barriers, decides to
    switch to totally free trade. What
    is most likely to increase in the
    short-run ?
                                                             (A)
     (A) Government Revenue
     (B) Inflationary pressure                               (B)

     (C) Consumers’ surplus                                  (C)

     (D) Profits of all domestic companies                   (D)

                                                  24
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48. Which of the following is included           48.
    in the capital account of India’s
    Balance of Payment ?
                                                       (A)
    (A) Merchandise trade
                                                       (B)
    (B) Banks’ overseas deposits
                                                       (C)
    (C) Insurance payment
                                                       (D)
    (D) Services rendered to US citizens
        by Indian hotels
49. State which of the following                 49.
    statements are correct or incorrect ?

    (I) Mercantalists believe that a
                                                       (I)
        nation could gain in trade only
        at the expense of other nations,
        as trade is zero-sum game.

    (II) Mercantalism, though declining,
        is alive and well in the twenty-
                                                       (II)
        first century.

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

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

        (II) is correct

    (C) Statement (I) and (II) both are                (B)    (I)           (II)
        correct
                                                       (C)    (I)    (II)
    (D) Statement (I) and (II) both are
        incorrect                                      (D)    (I)   (II)

                                            25                                     [P.T.O.
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50. In the absence of trade, a nation’s            50.

    production possibility frontier is
    also its ................... .

    (A) Opportunity cost                                 (A)

    (B) Exchange frontier                                (B)

    (C) Consumption frontier                             (C)

    (D) Autarky frontier                                 (D)

51. (I) The volatility of the bond                 51. (I)
          market is in direct proportion to
          the monetary and economic
          policy of the country of the
          participant.

    (II) Bond market is a part of capital                (II)
          market, serving platform to
          raise funds for the public sector
          companies, govt., and corporates.

    (A) Statement (I) and (II) both are
          incorrect

    (B) Statement (I) is correct but (II)                (A)    (I)   (II)
          is incorrect
                                                         (B)    (I)           (II)
    (C) Statement (I) is incorrect and
          (II) is correct
                                                         (C)    (I)             (II)
    (D) Statement (I) and (II) both are
          correct                                        (D)    (I)    (II)

                                              26
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52. Match the following :                         52.

     (a) Absorption Approach                            (a)

     (b) Banking sector financial assets                (b)
           and liabilities

     (c) Propensity to inflation                        (c)

     (d) Inflation                                      (d)

     (i)   Relative PPP                                 (i)

     (ii) Capital Account                               (ii)

     (iii) Alexander 1952                               (iii)                 1952

     (iv) Magnifico 1971                                (iv)                  1971

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

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

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

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

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

53. Besides the static gains, which of the        53.
     following dynamic gains nations
     would receive after forming the
     customs union ?
                                                        (A)
     (A) Economics of scale
                                                        (B)
     (B) Administrative savings

     (C) Greater bargaining                             (C)

     (D) Trade creation                                 (D)

                                             27                                               [P.T.O.
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54. Which of the following is not an              54.
    assumption of the Heckscher Ohlin
    theory ?
                                                        (A)
    (A) The production functions are
        same for commodities and for
        countries
                                                        (B)
    (B) All production functions are
                                                               (returns to scale)
        constant returns to scale
                                                        (C)
    (C) There are differences in the
        factor intensities for two
        commodities
                                                        (D)
    (D) Labour and capital are perfectly
        immobile between countries

55. Intra-industry trade :                        55.

    (I) Widens the choices for consumers                (I)
        in each nation.

    (II) Reduces     the     degree     of
                                                        (II)
        competition              among
        manufacturers of the same class
        of product in each country.
                                                        (A)
    (A) Both the statements are true
                                                        (B) (I)                (II)
    (B) (I) is true and (II) is false

    (C) (I) is false and (II) is true                   (C) (I)                     (II)

    (D) Both the statements are false                   (D)

                                             28
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56. For   the   production   function          56. Q = 20K0.5L0.5

    Q = 20K0.5L0.5 derive K = f(L) when              Q = 100         K = f(L)

    the isoquant Q = 100.                            (A) 25K–1

    (A) 25K–1                                        (B) 25L–1

    (B) 25L–1                                        (C) 25K

    (C) 25K                                          (D) 25L

    (D) 25L                                              4      6   1
                                                                       
57. Find the determinant of matrix             57.   A  2      5   2
                                                                       
                                                         9     0   4 
        4      6   1
                      
    A  2      5   2
                      .
        9     0   4 
                                                     (A) 31
    (A) 31
                                                     (B) 63
    (B) 63
                                                     (C) 80
    (C) 80
                                                     (D) 95
    (D) 95

58. Derive the marginal revenue                58. q = 400 – 0.1p
    function for the demand function
    q = 400 – 0.1p.
                                                     (A) 4000 – 20q
    (A) 4000 – 20q
                                                     (B) 4000 + 20q
    (B) 4000 + 20q

    (C) 4000 – 20p                                   (C) 4000 – 20p

    (D) 4000 + 20p                                   (D) 4000 + 20p

                                          29                                    [P.T.O.
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59. What is the point elasticity when             59.              12     P = 60 – 3q

    price is 12 rupees for the demand
    function P = 60 – 3q.

    (A) 0.25                                            (A) 0.25

    (B) 0.5                                             (B) 0.5

    (C) – 0.25                                          (C) – 0.25

    (D) – 0.5                                           (D) – 0.5

60. What will be the status of average            60.
    variable cost (AVC) marginal cost
    (MC) is less than AVS ?

    (A) declining                                       (A)

    (B) increasing                                      (B)

    (C) constant                                        (C)

    (D) unpredictable                                   (D)

61. If the value of r (coefficient of             61.         r
    correlation) is less than the probable
    error, it means :

    (A) The value of r is not at all
                                                        (A) r
        significant

    (B) The value of r is significant                   (B) r
    (C) The value of r is moderately
        significant                                     (C) r

    (D) The value of r is very highly
                                                        (D) r
        significant

                                             30
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62. If we toss three coins, the possible        62.

    outcomes of appearing two heads can

    be written as :

    (A) 3C 3                                          (A) 3C 3

    (B) 3C 1                                          (B) 3C 1

    (C) 3C 2                                          (C) 3C 2

    (D) 3C0                                           (D) 3C0

63. The ‘Bernoulli Distribution’ is             63.
    associated with :
                                                      (A)
    (A) Multinominal Distribution
                                                      (B)
    (B) Binomial Distribution
                                                      (C)
    (C) Hypergeometric Distribution

    (D) Poisson Distribution                          (D)

64. Which of the following is not               64.

    described as a dependent variable ?

    (A) Endogenous                                    (A)

    (B) Regressand                                    (B)

    (C) Controlled Variable                           (C)

    (D) Stimulus                                      (D)

                                           31                              [P.T.O.
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65. When the variance of financial time          65.
    series varies over time, which of the
    following models is more suitable ?
                                                       (A) AR
    (A) AR
                                                       (B) MA
    (B) MA
                                                       (C) ARMA
    (C) ARMA
                                                       (D) ARCH   GARCH
    (D) ARCH and GARCH
                                                 66.                OLS
66. The direct application of OLS method
    for Simultaneous Equations leads
    to :
    (A) Consistent     and     Unbiased                (A)
        Estimation
    (B) Unbiased and Inconsistent                      (B)
        Estimation
    (C) Consistent       and     Biased                (C)
        Estimation
    (D) Biased and        Inconsistent                 (D)
        estimation
67. Type one error refers to :                   67.

    (A) The probability of rejecting the
        false hypothesis                               (A)

    (B) The probability of rejecting the
        true hypothesis                                (B)

    (C) The probability of accepting the
        false hypothesis                               (C)

    (D) The probability of accepting the
                                                       (D)
        true hypothesis

                                            32
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68. Which of the following is a Dorbish               68.
    and Bowley’s method of constructing

    an index, where L is Laspeyres and
                                                            L                     P
    P is Paasche’s index ?

    (A) L + P
                                                            (A) L + P
    (B) L × P
                                                            (B) L × P
          L
    (C)                                                           L
          P                                                 (C)
                                                                  P
          L+P                                                     L+P
    (D)                                                     (D)
           2                                                       2

69. Which of the following is correctly               69.
    defined              as   coefficient   of

    determination ?
                                                                        uˆ i2
                                                            (A) 1 
                uˆ i2                                                  yi2
    (A) 1 
                yi2
                                                                        xˆ i2
              xˆ i2                                        (B) 1 
          1                                                            yi2
    (B)
              yi2

                                                                        uˆ i2
                uˆ i2                                      (C) 1 
    (C) 1                                                              xi2
                xi2


           uˆ i2                                                  uˆ i2
                                                            (D)
    (D)
           yi2                                                    yi2


                                                 33                                        [P.T.O.
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70. The term demographic dividend is                    70.

    conceptualized by :

    (A) Warren Thompson
                                                              (A)
    (B) Landry
                                                              (B)
    (C) C.P. Blacker
                                                              (C)
    (D) David         Bloom          and   David

          Canning                                             (D)


71. The first stage of demographic
                                                        71.
    transition is not so harmful

    because .................... .

    (A) Birth rate high and death rates
                                                              (A)
          are low

    (B) Birth rate and death rates are

          medium
                                                              (B)
    (C) Birth rate and death rates are

          low                                                 (C)

    (D) Birth rate and death rates are
                                                              (D)
          high

                                                   34
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72. Choose the correct statement for the         72.
    Positive Externality :
                                                       (a)
    (a) People living nearby area and
         the factory workers suffer from
         the deteriorating air quality

    (b) Real estate price would likely to              (b)
         increase because of construction
         of metro
                                                       (c)
    (c) Research and development
         creates benefits that helps
         society as a whole                            (d)

    (d) People living near airport suffer
         from high noise levels
                                                       (A) (a)         (b)
    (A) (a) and (b)
                                                       (B) (b)         (c)
    (B) (b) and (c)
                                                       (C) (a)         (d)
    (C) (a) and (d)
                                                       (D)       (a)
    (D) Only (a)

73. Which of the following is the largest        73.
    source of water pollution in major
    rivers of India ?

    (A) Untreated sewage                               (A)

    (B) Agricultural Development                       (B)
    (C) Unregulated       small    scale
                                                       (C)
         industries

    (D) Religious practices                            (D)

                                            35                                         [P.T.O.
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74. Kyoto Protocol assigned ...................        74.

     responsibilities for developed and

     developing nations.

     (A) higher

     (B) common but differentiated

     (C) equal

     (D) narrow

75. Which one of the following is the

     correct sequence with reference to

     the density of population of the

     states according to census 2011 ?

     (A) Karnataka < Maharashtra <

          Bihar < Uttar Pradesh

     (B) Maharashtra < Karnataka <

          Bihar < Uttar Pradesh

     (C) Karnataka < Maharashtra <

          Uttar Pradesh < Bihar

     (D) Maharashtra < Karnataka <

          Uttar Pradesh < Bihar

                                                  36
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76. Population explosion happened in             76.
    India because of ................. .
    (a) a high birth rate
                                                       (a)
    (b) a relatively low death rate
                                                       (b)
    (c) Immigration
                                                       (c)
    (d) a relatively moderate birth and
        death rate                                     (d)
    Choose correct option :
    (A) (a) and (b)                                    (A) (a)             (b)
    (B) (a) and (c)                                    (B) (a)             (c)
    (C) (b) and (c)                                    (C) (b)             (c)
    (D) (a) and (d)                                    (D) (a)             (d)
77. Consider the following lists and             77.
    choose the correct code given below :
           Religion Group
    (a) Hindus                                         (a)
    (b) Muslims                                        (b)
    (c) Sikhs                                          (c)
    (d) Christians
                                                       (d)
          Population Growth
                                                                                       2001-2011
            Rate 2001-2011
                                                       (i)   15.5%
    (i)   15.5%
                                                       (ii) 16.8%
    (ii) 16.8%
                                                       (iii) 24.6%
    (iii) 24.6%
                                                       (iv) 8.4%
    (iv) 8.4%
    Codes :
          (a)   (b)     (c)     (d)                          (a)   (b)           (c)    (d)
    (A) (i)     (ii)    (iii)   (iv)                   (A) (i)     (ii)      (iii)      (iv)
    (B) (ii)    (iii)   (iv)    (i)                    (B) (ii)    (iii)     (iv)       (i)
    (C) (iii)   (ii)    (iv)    (i)                    (C) (iii)   (ii)      (iv)       (i)
    (D) (ii)    (iii)   (i)     (iv)                   (D) (ii)    (iii)         (i)    (iv)

                                            37                                                 [P.T.O.
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78. Adolescent population is the                78.

    population falling in the age

    group ..................... .
                                                      (A) 1    15
    (A) 1 to 15
                                                      (B) 1    10
    (B) 1 to 10

                                                      (C) 10    19
    (C) 10 to 19

                                                      (D) 10    25
    (D) 10 to 25


79. Who identified industrialization,           79.

    urbanization and modernization as

    the causal mechanism in bringing

    decline in mortality and fertility ?
                                                      (A)
    (A) Frank Notestein

                                                      (B)
    (B) Malthus


    (C) Marks                                         (C)


    (D) Coal and Hoover                               (D)

                                           38
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80. Match the following :                        80.

                     List I                                                    I

                 (Economists)

    (a) J. H. Boeke                                    (a)

    (b) Benjamin Higgins                               (b)
    (c) H. Myint                                       (c)
    (d) Simon Kuznets                                  (d)
                    List II
                                                                              II
          (Name of the books)

    (i)   Economics and economic policy
                                                       (i)
          of dual societies

    (ii) Economic development
                                                       (ii)
    (iii) The economics of the developing
                                                       (iii)
          countries
                                                       (iv)
    (iv) Modern economic growth

    Codes :
                                                               (a)   (b)    (c)     (d)
           (a)    (b)    (c)     (d)
                                                       (A) (i)       (ii)   (iii)   (iv)
    (A) (i)       (ii)   (iii)   (iv)
                                                       (B) (ii)      (i)    (iii)   (iv)
    (B) (ii)      (i)    (iii)   (iv)

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

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

                                            39                                              [P.T.O.
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81. The ‘Technological Dualism’ in                   81.
    underdeveloped countries could be
    broken through ................. .

    (A) a gradualist approach of                           (A)
         development
                                                           (B)
    (B) family planning

    (C) planning          for     increased                (C)
         productivity in rural sector

    (D) focusing        on      Information
                                                           (D)
         Technology sector

82. ‘Digit ALL : Innovation and                      82.
    Technology for Gender Equality’ was
    the theme for International Women’s                                   UN
    Day in the year ................... by UN
                                                                      (Theme)
    Women.
                                                           (A) 2020
    (A) 2020
                                                           (B) 2021
    (B) 2021
                                                           (C) 2022
    (C) 2022

    (D) 2023                                               (D) 2023

83. In 1947, C.P. Blacker attempted to               83. 1947
    identify the ................ phases of
    demographic transition.

    (A) Three                                              (A)

    (B) Four                                               (B)

    (C) Five                                               (C)
    (D) Six                                                (D)

                                                40
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84. With reference to the ‘Banks Board                84.
    Bureau (BBB)’, which of the following
    statements are correct ?

    (1) The Governor of RBI is the
         Chairman of BBB.

    (2) BBB recommends for the
         selection of heads for Public
         Sector Banks.

    (3) BBB helps the Public Sector
         Banks in developing strategies
         and capital raising plans.

    Select the correct answer using the
    codes given below :

    (A) (1) and (2) only

    (B) (2) and (3) only

    (C) (1) and (3) only

    (D) (1), (2) and (3)

85. ‘Rapid Financing Instrument’ and
    ‘Rapid Credit Facility’ are related to
    the provisions of lending by ........... .

    (A) Asian Development Bank

    (B) International Monetary Fund

    (C) United Nations Environment
         Programme Finance Initiative

    (D) World Bank

                                                 41                   [P.T.O.
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86. Match the following in context to         86. G20
    G20 Engagement Groups :
                   Group
    (a) B20
                                                    (a) B20
    (b) C20
                                                    (b) C20
    (c) L20
                                                    (c) L20
    (d) T20
                                                    (d) T20
              Working Area
    (i)   Energy, Climate and Resource
          Efficiency                                (i)
    (ii) Climate policy and finance                 (ii)
    (iii) Sustainability (Energy and                (iii)
          Climate)
                                                    (iv)
    (iv) Interests of Workers
    Codes :
                                                            (a)   (b)     (c)     (d)
          (a)   (b)     (c)     (d)
                                                    (A) (i)       (ii)    (iii)   (iv)
    (A) (i)     (ii)    (iii)   (iv)
                                                    (B) (i)       (iv)    (iii)   (ii)
    (B) (i)     (iv)    (iii)   (ii)
    (C) (i)     (iii)   (iv)    (ii)                (C) (i)       (iii)   (iv)    (ii)

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

87. Which of the following is not a           87.                                  MUDRA
    scheme offered by MUDRA Bank ?
    (A) Shishu                                      (A)

    (B) Kishor                                      (B)
    (C) Tarun                                       (C)
    (D) Nari                                        (D)

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88. National Health Policy 2017 has                  88.                         2017   2025
    recommended an increase in the                                                      GDP
    Government’s health expenditure
    upto .................. percent of GDP by
    2025.
                                                           (A) 2.0
     (A) 2.0
                                                           (B) 2.5
     (B) 2.5
                                                           (C) 3.0
     (C) 3.0
                                                           (D) 3.5
     (D) 3.5
89. Which of the following sequence is               89.
    correct about share capital in
    Regional Rural Banks ?
                                                           (A)          >                   >
     (A) Central Government > Sponsor
         Bank > State Government
     (B) Sponsor Bank >            Central                 (B)               >              >
         Government   >              State
         Government
                                                           (C)          >               >
     (C) State Government > Central
         Government > Sponsor Bank
                                                           (D)          >               >
     (D) Central Government > State
         Government > Sponsor Bank
90. Atmanirbhar Bharat Abhiyan was                   90.
    announced on .................. by Prime
    Minister Narendra Modi.
                                                           (A) 12     2020
     (A) March 12, 2020
     (B) April 12, 2020                                    (B) 12      2020

     (C) May 12, 2020                                      (C) 12    2020

     (D) June 12, 2020                                     (D) 12     2020

                                                43                                          [P.T.O.
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91. India’s own Target to Achieve Net        91.
    Zero Carbon emissions is by the
    year .................... .
                                                   (A) 2050
    (A) 2050
                                                   (B) 2040
    (B) 2040
                                                   (C) 2060
    (C) 2060
                                                   (D) 2070
    (D) 2070
                                             92.
92. Match the following :
                                                                           I
                    List I
          (Finance Commission)
                                                   (a) 12
    (a) 12th Finance Commission
                                                   (b) 13
    (b) 13th Finance Commission
                                                   (c) 14
    (c) 14th Finance Commission
                                                   (d) 15
    (d) 15th Finance Commission
                                                                          II
                   List II
                 (Chairman)
    (i)    Dr. Vijay Kelkar                        (i)

    (ii) Dr. C. Rangarajan                         (ii)

    (iii) N. K. Singh                              (iii)

    (iv) Y. V. Reddy                               (iv)

    Codes :
           (a)   (b)    (c)     (d)                        (a)   (b)    (c)     (d)

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

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

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

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

                                        44
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93. The Non-Scheduled Banks are those               93.
    which have not been included in the                          1934
    .............. Schedule of RBI Act 1934.

    (A) First                                             (A)

    (B) Fifth                                             (B)

    (C) Third                                             (C)

    (D) Second                                            (D)

94. Mutual Funds in India have to be                94.
    formed as .................. .

    (A) Trusts                                            (A)

    (B) A Joint Stock Company                             (B)

    (C) A Non-Bank Financial Company                      (C)

    (D) An Agency                                         (D)

95. The Tarapore Committee appointed                95. 1997
    in 1997 was for which of the
    following purposes ?
                                                          (A)
    (A) To work on Current Account
         Convertibility of Rupee

    (B) To work on Capital Account                        (B)
         Convertibility of Rupee

    (C) To work on Current and                            (C)
         Capital Account Convertibility
         of Rupee
                                                          (D)
    (D) To work on Partial Convertibility
         of Rupee

                                               45                         [P.T.O.
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96. The Prevention of Money Laundering                96.

    Act was passed in the year ............. .


    (A) 2002                                                (A) 2002


    (B) 2003                                                (B) 2003


    (C) 2004                                                (C) 2004


    (D) 2005                                                (D) 2005


97. Which of the following is established             97.

    for resolution of the Non-Performing

    Assets in India ?


    (A) National Non-Performing Asset                       (A)

         Company Ltd.


    (B) National Performing Asset                           (B)

         Company Ltd.


    (C) National Reconstruction Capital                     (C)

         Company Ltd.


    (D) National Asset Reconstruction                       (D)

         Company Ltd.

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98. Which of the following is a Refinance        98.
    Institution in India ?

    (A) National Housing Bank
                                                        (A)
    (B) Exim Bank
                                                        (B)
    (C) General Insurance Corporation
                                                        (C)
    (D) Tourism Finance Corporation
                                                        (D)
          of India

99. The National Stock Exchange was              99.

    setup in .................. .

    (A) 1990                                            (A) 1990

    (B) 1991                                            (B) 1991

    (C) 1992                                            (C) 1992

    (D) 1993                                            (D) 1993

100. The reserve money in India is also          100.

    known as ................ .

    (A) Low powered money                               (A)

    (B) High powered money                              (B)

    (C) Secondary money                                 (C)

    (D) Advanced money                                  (D)

                                            47                               [P.T.O.
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ROUGH WORK




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