MP SET 2025: State Eligibility Test, Economics
Text of page 1
VIS
RyP/P/2025/II Question Booklet No.
Subject-ECONOMICS
SET A '519'T-W( )
Paper II (Optional) 250604181
Name Subject-Code-06
-W^il ^ 1^1
^ Candidate should write bis/her
Roll No. Roll No.in the given boxes.
■gf^ ^ TfeH/No. of Printed Pages : 38 ^ TT^/Total No. of Questions : 100
Tm : 3 ^^ srfti^JtiTT gjnf^/Maximum Marks : 200
Time Allowed: 3 Hours to complete both 1st and Ilnd question paper
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(N)S/06/2025/A
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VIS
Chl4
f
(SPACE FOR ROUGH WORK)
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51. Which one of the following statements 51. ^ ^
about the price effect is correct ?
(A) Price Effect = Income Effect (A) = arpi
+ Substitution Effect
(B) Price Effect = Income Effect (B) ^
- Substitution Effect - "RfrRSIFFT 31^
(C) Price Effect = Substitution Effect (C) "51^ = TrffPfSim
- Income Effect - SIFT
(D) None of the above (D) ^
52. The difference between total cost and 52. WTcT ^ oTO
total variable cost is : ^ i I
(A) Short Run Marginal Cost (A) vTFTW
(B) Long Run Marginal Cost (B) "^ftRRT elFra
(C) Total Fixed Cost (C) ^ WM
(D) Average Fixed Cost (D) sftocT WTd
53. Correct mathematical form of Cobb- 53. cFR-'Smqkh ^
Douglas production function is : t:
. (A) Q = AL^K^-^ (B) Q = AL^K^^^ (A) Q = AL''K^-'' (B) Q = AL''K^^^
(C) Q = A(LKy-'' (D) Q = A(LK)^ (C) Q = A(LKy-^ (D) Q = A(LK)''
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54. According to Daniel Bernoulli a rational
consumer under the situation of risk and
uncertainty takes decision on the basis ^t :
of:
(A) HcMiffia
(A) On Expected Monetary Value
(B) yrMlRtld ■'R
(B) On Expected Utility
(C) ycMif^id "R
(C) On Expected Inflation
(D) +^0^ ""R
(D) On Expected Production Value
55. Which of the following is the necessary 55. ipf Mfd^lPldl # sqRpfe
condition for firm's equilibrium in long ^ ^ aiPlcil4 PdHRrlRsid
run under the perfect competition ? ^ t ?
(A) Average Cost = Average Revenue (A) ate WTd = ate awT
(B) Price = Marginal Cost (B) ^te = #RRI
(C) Price = Average Cost (C) ^te = ate WKT
(D) Price == Marginal Cost = Minimum (D) cbl^d = TftRRT dl'ld =
Average Cost ate wm
56. The short-run earnings of a machine 56. ar^wd "4* 1te R#i TTIRT arm ^
minus the short run cost of keeping it in
running order is : ^ dMid ^ aRR ^ :
(A) Rent (B) Interest (A) ddid (B)
(C) Quasi-Rent (D) Profit
(C) ST^S-WTH (D)
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57. Which of the following equilibrium 57. PlMRrlRsld
approaches explains the multi-market
equilibrium ?
(A) 37ff^
(A) Partial
(B)
(B) General
(C) Stable (C) TaTBlt
(D) Both partial and stable (D) 3Tff^
58. Pareto optimum points are located on 58. PHMRrifed
which of the following curves ? ^ ^f ?
(A) On Contract Curve (A) -qR
(B) On Indifference Curve (B)
(C) On Utility Curve (C) wtelT ^ "qr
(D) On Transformation Curve (D) ^ -q^
59. Scitovsky's double criterion of welfare is 59. ^l^dlci^T ^ ^
an improvement upon the following : rdHPoiRsid ^^ f ?
(A) Pareto Optimality (A) 3l:J=t^cndH
(B) Bergson-Samuelson Social Functions (B) RTMfe WT
(C) Kaldor-Hicks Test (C)
(D) Samuelson Theorem (D) ^
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60. Nash Equilibrium is associated with the 60. PiHRnRsid "I" :
following :
(A)
(A) Monopoly
(B) mRihIPich
(B) Monopolistic Competition
(C) ^ "teRT
(C) Game Theory
(D) Perfect Competition (D) yldqlPidi
61. The difference between NNPpQ and 61. NNPpc ^ NNPmp ^
NNPj^ is due to : t:
(A) Depreciation (A)
(B) Net Indirect Tax (B) ^
(C) Corporate Tax (C) fm ^
(D) Net Factor income from abroad (D) ^ "SM ^ WET
62. One of the methods of eliminating the 62. ^ TRm "WTT ^
problem of double counting in the
wm\ ^ ^ t:
estimation of National Income is :
(A) By including the value of only (A) ^ ^
intermediate goods
(B) By not including non-market
(B) #1-"^ ^ ^ "3^
transactions
(C) arf^ ^ ^
(C) By including the value of only final
goods
(D) By including the imputed value of
goods and services
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'63. 'Which of the following is not true about 63. ^ "RfdfW teRT ^
PHHrdHsId ^ ^^ t ?
classical theory of employment ?
(A) -4* Tl^FTR
(A) Full employment equilibrium is a
normal condition in the economy.
WTRT 'm t- \ ^ - ■'
(B) Supply creates its own demand. (B) SPRt TM Wf 3cqR tI
(C) Over-production and unemployment (C) ^ ^
is a normal condition. t I
(D) Rate of interest, wage rate and (D) V:, 11^ ^
prices are perfectly flexible. f I
64. The point of effective demand is
determined, where : :
(A) Aggregate demand = Aggregate
(A) = ^
Supply
(B) Aggregate demand > Aggregate (B) > "^FTTT
Supply
(C) Aggregate demand < Aggregate (C) 'm <
Supply
(D) Aggregate, demand curve is
perfectly elastic. t
65. Which of the following is not true ? 65. rHHPdr^d ^ TO t ?
(A) MPC+MPS = 1 (A) MPC+MPS =1
® AY-^ AY AY AY
(C) APC+ APS =1 (C) APC + APS = 1
(D) §>1 (D) ^>1
AY
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66. In the equation C = 100 + 0.8Y, what 66. C = 100 + 0.8Y 0.8 ^
does 0.8 show ? ■R^ffRT t ?
(A) MPC (B) MPS (A) MPC (B) MPS
(C) APC (D) APS (C) APC (D) APS
67. Under the condition of liquidity trap, the 67. "dTOT ^^ ^ WT
speculative demand for money is : ^ t :
(A) Infinite elastic (A)
(B) Zero elastic (B)
(C) Unitary elastic (C)
(D) Perfectly inelastic (D)
68. In IS-LM model, what does LM curve 68. IS-LM LM ^ ^
show ? f ?
(A) Equality of saving and investment (A) sik Wkqkr ^ WTcn
(B) Equality of demand for and supply (B) "^^3^ ^ "ITFT 3^
of goods
(C) Equilibrium in goods market (C) fi MK
(D) Equality of demand for money and (D) "g^ ^ "HPT 3^ "g^ ^
supply of money
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69. Under Phillips curve analysis, when the 69. ^ ^ ^
rate of unemployment declines, what
change occurs in the rate of change in
monetary wage ? t?
(A) Remains stable (A) T?# t
(B) Decreases (B) Wt t
(C) Increases (C) t
(D) Decreases and becomes stable (D) ^^ t
70. Which one is not correct about Rational 70. TTtTO MRchrMHl ^
Expectation Hypothesis ? TO t ?
(A) Rational Expectation Hypothesis (A) iRtoTO ^
was first developed by J. R Muth. -521 -m frofw
(B) It is based on assumption of price- TO I
wage flexibility. (B) ^ ^
(C) The stabilization policies of the ■q^ sTT^nfcr t 1
government are effective in short (C) ^ ^crM=hld
run. t I
(D) Monetary and Fiscal policy cannot (D) a^k <Nchlq1q ^
influence real activity so long as f^qisff ^ "TO TT^ifqci TO
these economic policies are TO anfer ktfro
predictable. "qW t I
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71.
71. Autocorrelation is generally occurred
in
t I
(A) Cross Section Data (A)
(B) Time Series Data (B) M
(C) Pooled Data (C)
(D) Panel Data (D)
72. By which test is the presence 72. 3T#Tf!l r^NMPd^irddl ^ ^
of heteroscedasticity detected in
^ t ?
Econometrics ?
(A) ^
(A) Spearman's Rank Correlation Test
(B)
(B) Durbin Watson Test
(C) Fisher's Variance-Ratio Method (C) ^ Ml
(D) Yon-Neumann's Ratio Method (D) 375^
73. Using standard notation consider the 73. ^ IFihT ^iq rdHPdRsid
following equation system : 3pin^ Mr :
Yi = a© + ajY2+a3Y3+ a4Xi + a5X2+ Uj Yi = ag + aiY2+ a3Y3+ a4Xj+ ajXj+ U i
^2= Po Pl^3 p2^1 p3^2"^^2 ^2= Po + P1Y3 + P2Y1 + P3X2+ U2
According to order first equation is : shH\im "SfSFT iFTl^R^ t :
(A) Un-identified (A)
(B) Exactly identified (B)
(C) Over identified (C)
(D) None of the above (D) dq^dd ^^
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74. The formula for coefficient' of 74. ■ ^ t:
determination is
RSS RSS
RSS RSS (A) 1- TSS (B) 1-
ESS
(A) 1- (B) 1- ESS
TSS
TSS ESS
TSS
(D) 1-
ESS (C) i- (D) 1-
(C) 1- TSS
RSS TSS
RSS
75. Testing for cointegration is given by : 75. t
(A) Dickey-Fuller Test (A) m
(B) Engle-Grenger Test (B) wi
(C) Error Correction Mechanism (C) ife ^m
(D) F-test (D) m
76. The mean marks of 100 students were 76. 100 ^ albecT 40 s?T I ^
found to be 40. Later it was discovered
that a score of 74 was misread as 14. 74 ^ WT ^ 14 ^ I
True mean marks are : "511^ :
(A) 406.0 (A) 406.0
(B) 46.8 (B) 46.8
(C) 46.0 (C) 46.0
(D) 40.6 (D) 40.6
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n
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77. Karl Pearson's coefficient of correlation 77. X Y ^ ^
between vmables X and Y.is-0.75. Their — 0.75 ^ I
covariance is - 15. If variance of X is 25, - 15 t I X W ^ TROT 25 t,
the standard deviation ofY will be : ^ Y ^ TRPT fq-qeii :
(A) 5 (B) 25 (A) 5 (B) 25
(C) 16 (D) 4 (C) 16 (D) 4
78. What is the formula of circular test for
the adequacy of an ideal index number ? ^ ^ OT t ?
(A) Pqi ^ Pi2 ^ ^23 ~ ^ (A) Pqi ^ P]2 ^ P23 ~ 1
(B) pQl ^ ^21 ^ ^32 ~ ^ (B) pQi X p2j X P22 = 1
(C) Pqj ^ Pi2 ^ P32 ~ 1 (C) Pqi X Pj2 X P32 = 1
Pqi ^ ?21 ^ P31 ~ ^ (B) Pqi ^ P21 ^ P31 ^ ^
79. While testing significance of the 79. ^ ^ 1?, ^ Tlf^ T7T¥2jlf
difference' of two sample means in case "*7^^ 5PtR =F)1" "^TT^
of small samples, the degrees of freedom ^ wid?q chlM ^ fen
is calculated by :
(A) «j + «2 + 2 (A) ?7, + /I2 + 2 OT
(B) «i + /J2 - 2 (B) + W2 - 2 -m
(C) - ?i2 + 2 (C) - «2 + 2 -gRT
(D) /jj - -2 (D) «j - rt2 - 2 OT
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I;
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80. In case of Normal distribution X ± 2ct 80. ^ X±2<t ^
covers the area under the normal curve :
(A) 68.27% (B) 90.45% (A) 68.27% (B) 90.45%
(C) 95.45% (D) 99.73% (C) 95.45% (D) 99.73%
81. Let Sj = {a, b, c, 2} and S2 = {1, 2, 3}, 81. Si = {a, b, c, 2} S2 = {1, 2, 3},
then what will be the product of Sj and ^ m Si S2 ^ -rpiHWT
$2 (Sj n S2) ? (Si n S2) ^ ?
(A) {0} (A) {0}
(B) {2} (B) {2}
(C) {a, b, c, 1, 2, 3} (C) {a, b, c, 1, 2, 3}
(D) {a, b, c, 1, 2, 2, 3} (D) {a, b, c, 1, 2, 2, 3}
82. Which particular series is used to explain 82. ipw
^ "SITTT feTRT ^ ^
the concept of multiplier in economics
and credit expansion of banks ?
t ?
(A) Geometric series
(A) "JphK M
(B) Arithmetic series
(B) W
(C) Exponential series
(C) "en#! M
(D) Simple series
(D) M
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83. A loan of Rs. 3,250 is to be repaid by 83. 3,250 ^
paying Rs. 20 in the first month, "51^ TfTW 20
increasing per month by Rs. 15 in "RfrT RIB" 15
subsequent months. How many months Wm TTf^ ^ ii
will it take to clear the loan ? ^ vFbn ?.
(A) 20 months (B) 22 months (A) 20 w (B) 22
(C) 24 months (D) 26 months (C) 24 W (D) 26 RTF
84. If price charged by a competitive firm is 84. RfF rMhI RR? OT RfF RitRF
Rs. 200 per unit and its total cost 200 'siiol ^ WIF
function is l/SQ^ - 7Q2 + HQ + 50, WT 1/3Q3 - 7Q2 + HQ + 50 f, ^
what will be its profit function ? RF vTTR RivTR ^RT fWt ?
(A) 1/3Q3 - 7Q2 + HQ + 50 - 200Q (A) 1/3Q3 - 7Q2 + HQ + 50 - 200Q
(B) 200Q - 1/3Q3 + 7Q2- HQ - 50 (B) 200Q - 1/3Q3 + 7Q2 - HQ - 50
(C) 200Q-Q2+ 14Q- 11 (C) 200Q-Q2+ 14Q- 11
(D) 200 -Q2+ 14Q- 11 (D) 200 - Q2 + 14Q - 11
85. Given demand function : 85. RIR HJcni :
Q = 30-4P-P2 Q = 30 - 4P - P2
What will be the elasticity of demand for '■f^ ^ R7 P = 3 Rit ^ Rfl
P =3?
(A) 3.4 (B) 4.4 (A) 3.4 (B) 4.4
(C) 3.3 (D) 4.3 (C) 3.3 (D) 4.3
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\
86. For two commodities A and B demand
86. ^ A^B Xg,
is Xji^ and jcg, prices are and and
the demand functions are given by Pa PB'^ ^
^a=Pa '/'b' ^b=PaV ^A=Pa -^Pb' ^ ^B=PA^Pt'
in this condition the two commodities A ^ A B fer wc
and B will be :
(A) Substitutes (A)
(B) Complementary (B) ^ •'
(C) Independent (C)
(D) Giffen Goods (D)
87. Matrix A is given as : 87. A t:
2 1 4 "2 1 4
A= 0 2 3 A= Q 2 3
0 0 2 0 0 2
Which of the following options is correct PjHlT4)d ^ 3Tlo^ A
for matrix A ? ^ i 1
(A) Identity matrix (A)
(B) Symmetric matrix (B) ^HHpHd 3TT5^
(C) Triangular matrix (C)
(D) Diagonal matrix (D) 311^
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Text of page 16
88. The demand and cost functions of a 88. hTm 41qh dMici
monopolist are given to be : 4)en :
P = 304 - 2Q and C = 500 + 4Q + 8Q2 P = 304 -2Q C = 500 + 4Q + 8Q2
At what level of output monopolist's
profit will be maximum ?
(A) 274 (B) 116 (A) 274 (B) 116
(C) 15 (D) 75 (C) 15 (D) 75
89. Who is known as the father of Input- 89. 3TmcT-1^ ^ fw
Output analysis ? 'mi t ?
(A) Hicks (A) 11^
(B) Paul A. Samuelson (B) W
(C) W. W. Leontief (C) RriqlpTd4>
(D) Milton Friedman (D) feq
90. For the differential equation given below, 90. PinRiRad fs4i^pA;iai^ ^
what will be the order and degree ? ("3)^1) -fenl phdHl ?
/ -) n2 ^ 2 n2 / 2
-18 £y +7 -18 +7
±]
dx' dx' dx dx' ^dx ^
(A) Order 1, degree 1 (A) 3Tf^ 1,^1
(B) Order 2, degree 3 (B) 3#^ 2, -ferit 3
(C) Order 3, degree 2 (C) 3#^ 3,Mt2
(D) Order 5, degree 5 (D) 311^ 5, -ferft 5
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Text of page 17
91. Who demonstrated the case of 91. rHHRrinsld "4* ^
factor-price equalization among the
following ?
(A) Samuelson and Lemer (A) erk
(B) Heckscher and Ohlin (B)
(C) Samuelson and Uzana (C) 13;^*
(D) None of the above (D) ^
92. Which of the following terms of trade 92. PlHl^Pdd oqiMK ^
takes into account the productivity ^ en^ tqqfd ^
changes both in the domestic export aiFiTcif "frqW t, ^
sector and foreign export sector <icqK<4)dl ^sinl
producing the coimtry's imports ? t:
(A) Single Factoral Terms of Trade (A) WTK ^ ^
(B) 3TFT ^nqR
(B) Income Terms of Trade
(C) Double Factoral Terms of Trade
(C) ^
(D) Commodity Terms of Trade
(D)^ WIR ^ "91^
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Text of page 18
93. Who assumed that it is the shape of 93. ^^ eTO
Production Possibility Curve (PPG)
^(PPQ ^ aTTTO,
under different cost conditions which
determines the basis and the gain from
t ?
trade ?
(A) Keynes (B) Haberler (A) (B)
(C) Ricardo (D) Ohlin (C) (D)
94. Which of the following conditions
94. PjHRiR^d ^
represents'Balanced Balance ofPayment'
^ t ?
> situation?
(A) B/Pb=R-P =0
(A) B/Pb=R-P =0
(B) B/Pf = R-P>0
(B) B/Pf=R-P>0
(C) B/Pb=R-P<0
(C) B/Pb=R-P<0
(D) B/Pf=R-P<0
(D) B/Pf=R-P<0
95. GATT ^ ^^ ^t :
95. GATT is also known as :
(A) WTO ^
(A) Successor of WTO
(B) WTO ^ ^
(B) ■ Enemy of WTO
(C) WTO ^
(C) Predecessor of WTO
(D) WTO ^ "Rfd^
(D) Competitor of WTO
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Text of page 19
96. The Vent for surplus theory was first 96. ^ ^ ^
explained by :
(A) Adam Smith (A) Si'tf
(B) Myint (B) eTRI
(C) Ricardo (C) OT
(D) Malthus (D) -mm OT
97. Simultaneous buying and selling of 97. it WT i
foreign currencies with an intention to
make profit from differences between the
prevailing exchange rates in the different
=b5eiidi "f :
markets at the same time is known as :
(A)
(A) Hedging
(B)
(B) Futures
(C)
(C) Options
(D) Arbitrage (D) snf^
98. How is "Optimum Tariff" rate 98. ^^^ to
expressed ? t ?
(A) (B) (A) (B)
l+ e 1 l+ e
(C) ■^/ = (C) ^-^ = {^0 (D) T/~
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Text of page 20
99. *J curve effect' occurs when : 99. 'J ^ t^ :
(A) Devaluation initially improves (A) WST ^
BoP but worsens it after some
t I
time.
(B) ^ wm
(B) Devaluation initially worsens BoP
WPR isiim f" ^
and then improves it.
%cR t I
(C) Devaluation continuously improves
BoP.
ii t I
(D) Devaluation continuously worsens
BoP. ^ ^RcIT t I
100. When a firm discriminates in favour of 100. "0^ ^ ^
some foreign buyers temporarily with the "q8j "^f "qRdt t
purpose of eliminating some competitors
and later raises the price after ^ ^ iwRl ^
competition is dead, it is called : t:
(A) Dumping (A) Xrf^TWT
(B) Predatory Dumping P) Tif^TWT
(C) Persistant Dumping (C) XTf^TWT
(D) Tariff (P)
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Text of page 21
101. What has been the impact on the role of
the state in Indian Planning by
encouraging private sector progressively
and increasing reliance on competition
^ "q^ t ?
and market forces ?
(A) The role of state has ended. (A) ^ \
(B) The role of state has remained (B) srqfW^ t I
unchanged.
(C) ^^ Mt I
(C) The role of state has changed.
(D) TF?q ^ ^
(D) The role of state has decreased in
terms of growth.
102. Who among the following economists 102. ^
has been a strong supporter of
^ "STTOt ^ TITO ^t ?
progressive tax system ?
(A) ^PdJlAd.
(A) Seligman
(B)
(B) McCulloch
(C)
(C) HarleyLutz"
(D) iAM "qr^
(D) Antonio Marco
N(3)S/06/2025/A 19 P.T.O.
Text of page 22
103. Which one of the following is not 103. -m 31^ ^
included in the 'principles of taxation' PinRrlRsld ^ ^ feRT ^rHPdd
t ?
given by Adam Smith ?
(A) Principle of Equity (A) ^ feRT
(B) Principle of Convenience (B) ^ feRT
(C) Principle of Certainty
(C) Pnr^-qddi ^ feRT
(D) Principle of Critical Minimum
Limit (D) ^^ feRT
104. Peacock-Wiseman Hypothesis is related 104. MP^chrMdl ^
to : t:
(A) Increase in Non-Tax Revenue (A) xnsR^
(B) Change in the pattern of growth of (B) ^l4^dPHd» ^^^^
public expenditure
(C) Increase in public expenditure in (C) dcMis ^ "4'
relation to Gross Domestic Product
(D) Fiscal Deficit (D) ^
105. The burden of tax will be borne by the 105. ^ ^ ^ ^ i^stidi
seller more than the buyer, if the srtoi" ^
elasticity of demand for the commodity
is :
(A) ^ srfw ^
(A) More than one
(B) Less than one (B) ^^^
(C) Equal to one (C) ^
(D) Zero (D)^ ^
N(3)S/06/2025/A 20
Text of page 23
106. What is meant by 'tax deferment' ? 106. ^ t ?
(A) Initial burden of tax (A) ^ mte w:
(B) Final tax burden (B), ^ 3ff^
(C) Shifting of tax burden from one (C) ^ ^^ ^
person to another ^WldRd
(D) Tax exemptions under state (D) ^^
regulations
107. What is the value of 'Balanced Budget 107. ^ TIH fePH
Multiplier' ? t ?
(A) Kb = I (B) Kb > I (A) Kb = 1 (B) Kb > 1
(C) Kg < I (D) KB = a (C) Kb < 1 (D) Kb = a
108. What is meant by 'Externalities' ? 108. ^ ^ tnM t ?
(A) Goods that are not manufactured in (A) ^ ^ Rife
that country. f I
(B) Natural Disasters. (B) yi^rddi
(C) Cost or Benefits that are not (C) ^ WTH "qr ^ "4'
reflected in prices. yPdRi'Rid ^f I
(D) Activities that are illegal. (D) ^ f I
N(3)S/06/2025/A 21 P.T.O.
Text of page 24
109. According to Musgrave (The Theory of 109. cqlft sffqi -qf^ ■cfn?^-1959)
Public Finance-1959) which of the
following is not a fiscal function ? ^ t ? .
(A) Currency Issue Function (A) "5^ fpfipT
(B) Allocation Function (B)
(C) Distribution Function (C) ^
(D) Stabilization Function (D) ^
110. 'Public Good' is such a good : 110. :
(A) To which the Principle of Exclusion (A) "tR
^ does not apply. "I I
(B) Which can be obtained from the (B) oqcj^i ^ fen «
m^ket system. t 1
(C) Which is produced on the basis of (C) ^
commercial efficiency. ""R f^RTT ^icll ^ I
(D) Which is perfectly divisible. (D) ^ ^ t I
111. Which of the following does not include 111. fe#Tfel ^^RIT ^ 37^!^RiJn
in M| concept of money ? Mj t ?
(A) Currency with the people
(A) ^ RTR
(B) ^ RRT W
(B) Demand Deposits with Banks
(C) ^ -qra 37^
(C) Other deposits with Reserve Bank
(D) ^ RIR afer -SITTT^
(D) time deposits with Banks
N{3)S/06/2025/A 22
Text of page 25
112. Who among the following was not a 112. PiHrdRsld ^^ 2023
member of Monetary Policy Committee
(MFC) in February, 2023 ?
(A) Dr. Shashank Bhide (A)
(B) Dr. Ashima Goyal (B) airfw
(C) Dr. Rajiv Ranjan (C)
(D) Dr. Vinod Paul (D) "TO
113. Which of the following is the formula to 113. fF#rfecr "gsr ipw (w) w
find money multiplier (m)?
(A)
(A) ^=^
(B) m =~
(B) w = —
(0) w - M X H
(C) /« = M X H
(D) m = U + U (D) w - M + H
(Here M = total supply of money and
H = high power money) H ="3^
N(3)S/06/2025/A 23 P.T.O.
Text of page 26
114. Which of the following is a quantitative 114. ^
measure of credit control ?
(A) Selective Credit Control (A) 31^
(B) Rationing of Credit (B) ^
(C) Moral Persuasion and Publicity (C)
(D) Bank Rate (D) ^
115. Which of the following is not an 115. RHPcHRdd ^ ^^
objective of monetary policy ? ^t ?
(A) Full Employment (A) ^ itwwi
(B) Price Stability (B)
(C)* Economic Growth (C)
(D) Social Justice (D) "RFTTfe- ^
116. Which of the following measures is not 116. RHRrir^ci ^ ^
associated with expansionary monetary ^ PiWKciiO ^
policy to cure recession ? ^t ?
(A) Increase in Bank Rate (A) % ^ ^
■ (B) Decrease in Bank Rate
(B)
(C) Decrease in Cash Reserve Ratio
(C) ^
(D) Decrease in Statutory Liquidity
(D)
Ratio
lM(3)S/06/2025/A 24
Text of page 27
117. ^
117. Example of non-banking financial
institutions is :
t:
(A)
(A) Insurance firms
(B) Venture capitalists (B)
(C) HDFCBank (C)
(D) Both (A) and (B) (D) #if (A) (B)
118. ^
118. Which personality appointed as SEBI
Chief recently by Government will take
2 2026 WIR Wn
charge from March 2, 2026 ?
?
(A) AjayTyagi (A) 31^ r^Fft
(B) Tuhin Kanta Pandey (B) ^
(C) Madhvi Purl Buch (C)
(D) Y. V. Reddy (D)
119. Which of the following is the full form 119. rdHpriRsid (C.I.R.P.)
of CJ.R.P. ?
(A) Corporate Involimtary Resolution ^IIR ^ ^'
Processes
(A) ^T4Rd yPsb^lil
(B) Corporate Insolvency Resolution
Processes
(B) P^clHlMH ypsti^lit
(C) Corporate Individual Resolution
Processes (C) chTyRd Mpsh'41i|
(D) Corporate Investment Resolution
Processes
(D) "SfgRTR
N(3)S/06/2025/A 25 P.T.O.
A
Text of page 28
120. In which year did Bombay Stock 120. ^ W.T=h ^
Exchange receive 'Digital Innovation
Award' for the Social Media Analytics
Project by Net Magic ? "W ?
(A) 2018 (A) 2018
(B) 2017 (B) 2017
(C) 2016 (C) 2016
(D) 2015 (D) 2015
121. Which one among the following 121. PinRriRdd ^ ^
alternatives is not true about Economic
Development ?
(A) aufc
(A) Economic development is a
t I
continuous process.
(B) arrfe ferrn w:
(B) Economic development occurs due
to the spontaneous economic and
social elements.
t I
(C) Economic development is originally (C) 3TTfe pcicbi^ ^
dynamic in nature. ^t I
(D) Economic development is related (D) Pilfer ^
with the increase in real National
^ t I
Income.
N(3)S/06/2025/A 26
Text of page 29
122. Who among the following has stated 122. rHHPdRsid ^ ^
development process under capitalism as
'creative destruction' ? f ?
(A) Karl Marx (A)^
(B) Thomas Malthus (B) «TFRT
(C) Gunnar Myrdal (C)
(D) Joseph Schumpeter (D)
123. Which of.the following is not included 123. irm di(r4iui ^
in Physical Quality of Life Index (PQLI)
that is prepared to make comparison of
human welfare at international level ? ^r^Pdd f ?
(A) Infant Mortality Rate (A) ^
(B) Literacy Rate (B) ^
(C) Per Capita Income (C) aiFI
(D) Life Expectancy (D)
N(3)S/06/2025/A 27 P.T.O.
Text of page 30
124. Which of the following economists has 124. rHMRdfed ^^
not supported the ^Balance Growth' ? ^ ferr ?
(A) Rosenstein Rodan (A)
(B) A. 0. Hirschman (B) "q.
(C) Harvey Leibenstein (C) ^
(D) W. W. Rostow (D)
125. Which of the follovsdng.is not a measure 125. PHHrdRsId i)' 3TBT ^
of income inequality ? ^ RTTO t ?
(A) Per Capita Income
(A) "S# 37PT
(B) Lorenz Curve
(B)
(C) Gini Index
(C) flpft
(D) All of the above
(D)
126. In Harrod growth model if actual growth
126. HTstn qit^ilqch
rate is less than warranted growth rate ^ 31^^ ^ ^^ (Gn < G^),
(Gj^ < G^), then the economy will have : ^ 378|oq^^ ii :
(A) Chronic depression (A) 31^^ #TT
(B) Chronic condition of inflation (B) Otl^lcrlln
(C) Get condition of stable growth rate (C) iM
(D) Have fluctuations (D) in
N(3)S/06/2025/A 28
Text of page 31
VIS
127. The concept of 'Backwash Effect' and 127. ^
'Spread Effect' was given by whom out
^ ^ "rpfl f ?
of the following ?
(A)
(A) H. W. Singer
(B)
(B) W. A. Lewis
(C)^
(C) Ragnar Nurkse
(D) Gunnar Myrdal (D) IPR
128. In the Development Economics the 128. 1^^ "HFlto-WkT ^^
prices observed in the market adjusted to
feft-vTO ^ ■^TEI*5PT WRT
take account of these differences between
^ 'Jiiai "t :
social-cost benefits and private-cost
benefits is called : (A)
(A) Production Prices
(B) WTT
(B) Shadow Prices
(C) EPT
(C) Demand Prices
(D) 03^^ .
(D) Derived Prices
N(3)S/06/2025/A 29 P.T.O.
Text of page 32
129. Human Poverty Index (HPI-1) is not 129. (HPI-1) rHMfdRsld
based on which one of the following
measure of deprivation ?
t ?
(A) Inequality of Income
(A) 37PT ^
(B) Adult Illiteracy Rate
(B) ^
(C) Probability at birth of not surviving
(C) ^ ^ WT 40 ^ ^ ^ ^
to age 40 years
(D) Lack of a decent standard of
living (D) ^ Si'm
130. The theory of 'Technological Dualism' 130. ^
has been advocated by : t:
(A) G Myrdal (A)
(B) J. H. Boeke (B)
(C) Benjamin Higgins (C) "fefTRT
(D) J. K. Gailbraith
(D) ^KT
N(3)S/06/2025/A 30
Text of page 33
131. What is the primary implication of Pareto 131. (siTftsTTfM)
Optimality ? frffdisi ^ t ?
(A) Equality and Fairness (A)
(B) Allocating resources to all (B) ^
(C) Without affecting others making (C)
one person better off
5
/
(D) Maximizing total benefits of all (D) ^ ^^
\
individuals in efficient manner
132. Which of the following represents a 132. rHMPdRdd ^
positive externality ? t ?
(A) A fish hatchery plant cleans up its (A) H59(rt1 HMM ^
own waste. 3FTfw BTt I
(B) A gardener invests in the (B) TTBT iTTBTt "gRT STpft ^
BTTBT I.
beautification of its own property.
(C) A paper mill causing pollution in a (C) Mk ^ ^
ctxil I
river.
(D) A factory producing harmful (D) "SRI eiPi'=hK^
<ir4l<At 1
chemicals.
N(3)S/06/2025/A 31 P.T.O.
Text of page 34
IVOS
\
133. In the given figure, if assimilative 133. ^ ^^
capacity is zero or insignificant, the 8TOT (1^ ^ fer)
broken horizontal line will : t fit ^ ^ ^:
yv=nx,t) w=f(x,t)
Assimilative yi«t>rd«b ^
capacity ofthe
natural environment
X = Economic Activity x=3TTfe
t ~ Technology Improvement / = ddjHHI
(A) move closer to X-axis (A) X-31^ ^
(B) move farther from the X-axis ■ (B) X-3T^ ^^
(C) remain in the same position (C) ^ fMIr
(D) move closer to Y-axis (D) Y-3T^
134. Which of the following determines the 134. 31^ ^
optimal level of pollution ?
(A) Marginal Social Cost (A) Tte TTFTTf^ WRT
(B) Marginal Social Benefit (B) Tftrrm TTMfer
(C) Government Regulations (C) TTWRt
(D) Marginal Social Cost and Marginal (D) TiWcT wnto cTTO Tj;^*
Social Benefits write
N(3)S/06/2025/A 32
Text of page 35
135. What is the primary mechanism behind 135. WT ^ Tft# TITSTfe
the first demographic dividend ? ^^ t ?
(A) Increased fertility rates (A) ^ ^
(B) Decreased labour force participation (B) m ^
(C) Expansion of the working age
population
(D) Rise in elderly dependency ratio (D) ife
136. The Paris Agreement is : 136. TRfftdl ^ t ?
1. Legally binding international treaty 1. MRcicfn -qr ^
on climate change.
2. Entered into force on 4th Nov.,2016. 2. 4 2016 ^^137T I
3. An accord between Europe and USA. 3. ■'jjW sSk USA ^ ^ I
4. Agreement for economic growth
and public goods. v
Options :
(A) 1, 2 options are correct
(A) 1, 2 f
(B) 1, 3 and 4 options are correct
■ (B) 1, 3 4 t
(C) 1, 2 StR 3 t
(C) 1, 2 and 3 options are correct
(D) "^q^ ^^ t
(D) None of the above options is correct
N(3)S/06/2025/A 33 P.T.O.
Text of page 36
137. What is the 'dismal doctrine' associated 137. ^^ ^
with Malthus ? t ?
(A) The decline of agricultural
(A) ^irMK=hcil
productivity.
(B) Positive check on population (B) ^
growth. Mm
(C) The need for moral restraints on (C) ^
population.
(D) The eventual downfall of living
standards due to unchecked (D) ^ ^ wr
population growth.
138. Social Cost Benefit Analysis includes : 138. m\\k^ w
■^TlfTT^ t 7
(A) Direct and Indirect costs of a
project to the society.
(A) ^ ^
3lk Wlcl I
(B) Direct and Indirect benefits to the
(B) WSf ^
society.
^ i
(C) Enumeration and evaluation of all
(C) ^ ^ WTT alk
costs and benefits. I
(D) None of the above (D) ^ ^
139. What is the primary purpose of a 'life 139. dlPei^l' ^
table* ? wiW ^ t ?
(A) Calculate total fertility rate (A) ^ WTT ^
(B) To know population migration (B) ^ITOe^TT "qcim ^
(C) To know mortality and survival (C) ^ ^
patterns of a population
(D) To know average family size (D) sStecl aTOR ^M
N(3)S/06/2025/A 34
Text of page 37
140. To achieve zero carbon emission coal, 140.^ ^^
Ministry ofPorts, Shipping and Waterways
has launched which guidelines ? ^ ^ t ?
(A) 'Harit Sagar' the Green Port (A) wr' ^
Guidelines 2023 2023
(B) 'Green Sagar'' the Green Port (B) 'jftH wr' iti
Guidelines 2023 2023
(C) 'No to Carbon' the Green Port (C) \
Guidelines 2023
2023
(D)- 'Shrey Scheme' the Green Port (D)
Guidelines 2023
2023
141. In India at present what is the limit of 141.
investment in 'Micro Enterprises' ? ^^^ t ?
(A) up to ? 1 crore (A) f 1 W
(B) up to ? 5 crores (B) ^ 5
(C) up to ? 7.5 crores (C) ? 7.5 ^
(D) up to t 2.5 crores (D) ^ 2.5 ^
N(3)S/06/2025/A 35 P.T.O.
Text of page 38
142. In the year 1982 'NABARD' was 142. 1982 (NABARD) ^
established for the development of which
sector ? ■TFit ?
(A) Urban Sector (A) ^
(B) Rural Sector (B) tiftWt ^
(C) Service Sector (C) ^ ^
(D) Industrial Sector (D) sMto ^
143. Which amendment in the constitution of 143. 6-14 ^ ^ ^ ^
India made free and compulsory
education to all children of 6-14 years of ^ "4'
age a Fundamental Right ? "W ?
(A) 93rd Amendment (A) 93^
(B) 83rd Amendment (B) 83^
(C) 86th Amendment (C) 86^
■(D) 103rd Amendment (D) 103^
144. 'SAGAR MALA' project is related with 144. 'WR fer
which sector ? t ?
(A) National Highways (A) WTpf
(B) Waterways and Coastline (B) -JiclHMf
(C) Airways and Airports (C)
(D) Railways (D)
N(3)S/06/2025/A 36
Text of page 39
\
145. IRDA was established for reforms in 145. (IRDA) ^ VWn ^
which sector ?
(A) Banking Sector (A) ^
(B) Education Sector (B) ^
(C) Insurance Sector (C) ^ ^
(D) Transport Sector (D)
146. Who is the chairman of Fifteenth 146. ^^ ^ ^
Finance Commission of India ? t ?
(A) S. K. Singh (A) RH. "fri?"
(B) N. K. Singh (B) "OTT.
(C) C. Rangarajan (C) <'KHH
(D) Arvind Pangariya (D) wrf^
147. Which of the following is the objective 147. PlHrdHsId
of Foreign Trade Policy-2023 ? ■^-2023 ^ ^3^ f ?
(A) To boost services export (A) ^ ^ ^
(B) To improve infrastructure (B) ^
(C) To have regular meetings with (C) "qfW ^ Pi^PHd
export promotion coimcil
(D) All of the above (D) ^
I\I|3)S/06/2025/A 37 P.T.O.
Text of page 40
148. Who started the Bhoodan movement in 148. w fen
India ? «TT ?
(A) Swami Vivekananda (A)
(B) Subhash Chandra Bose (B) ^^
(C) Achaiya Vinoba Bhave (C)
(D) Bal Gangadhar Tilak (D)^ WR
149. As per estimates of ^Dandekar and Rath' 149. W '"hM fer' ^ TRR ^
regarding standard of 'Poverty Line' in
India, what was considered as minimum
level of nutrition ?
(A) 3250 Calories (A) 3250
(B) 4250 Calories (B) 4250
(C) 2250 Calories (C) 2250
(D) 1250 Calories (D) 1250
150. In which year did the 'Second Tarapore 150. TR
Committee' submit its report on "Capital RfRfd' ami ^ TRp ^
Account Convertibility" ? 8ft ?
(A) 2006 (B) 2008 (A) 2006 (B) 2008
(C) 2009 (D) 2010 (C) 2009 (D) 2010
N(3)S/06/2025/A 38
A
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i^is .51 )•:
cRT^ ^ '
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Source: Madhya Pradesh Public Service Commission. Question paper published by Madhya Pradesh Public Service Commission.