Previous Year Solved Question Papers

Previous Year Solved Question Papers

MCQs on Economics -36

1. The components of the organized sector of the money market
I. Bill market
II. Stock market
III. Gift-edged market
IV. Bank loan market
(A) I and III are correct.
(B) I, III and IV are correct.
(C) I, II and IV are correct.
(D) I and IV are correct.

2. A type of unemployment in which workers are in-between jobs or are searching for new and better jobs is called _______ unemployment:
(A) frictional

(B) cyclical
(C) structural
(D) turnover

3. Which of the following is a "loser" from unexpected inflation?
(A) workers with COLAs    

(B) the middle class       
(C) people who own Treasury Bills(D) people who own homes and have fixed-rate mortgages

4. If the nominal interest rate on a checking account is 2% and the inflation rate is 3% this year, the real interest rate is:
(A) 5%
(B) 2%
(C) 2/3%
(B) –1%  

5. Which of the following would cause the demand curve for automobiles to shift to the left?
(A) an increase in the price of the automobiles
(B) an increase in the interest rate paid to borrow money to pay for the automobile
(C) an increase in buyers' incomes
(D) an increase in the cost of production of automobiles

6. Suppose it is announced that industry analysts are predicting that decreased oil supplies from Iraq will cause gasoline prices to rise, beginning next month.  In the current week, the announcement would:
(A) shift the supply of gasoline right    

(B) shift the demand for gasoline right      
(C) shift the demand for gasoline left(D) have no effect on the demand or supply of gasoline

7. Assume that the market for computers begins in equilibrium.  Then, there is a decrease in a price of Pentium processors used in the production of computers.  When the new equilibrium is reached,
(A) the price and quantity of computers will both have risen
(B) the price and quantity of computers will both have fallen
(C) the price of computers will have risen and the quantity will have fallen
(D) the price of computers will have fallen and the quantity will have risen

8.Rajiv gandhi Equity Savings scheme is designed for _____ ?
(A) high net worth individuals
(B) Individual retail investors
(C) Corporates
(D) Post offices

9. Which of the following is an example of "portfolio investment"?
(A) An American places funds in a savings account in Canada
(D) Tokyo Bank of Japan buys Union Bank of the United States
(C) Saturn Corp. (owned by General Motors) builds a new factory in Tennessee
(D) An American puts $10,000 into a money market fund

10.Which of the following are true with respect to the GIFT city?
1.International Financial services centre is going to be part of it
2.IFSC facilitates Indian companies to raise foreign funds in India, without going overseas
3.GIFT city is a multi specialty Special Economic Zone 
4.It is a joint venture between Government of India and state government of Gujarat

(A) 1, 2, 4
(B) 1, 2, 3
(C) 2, 3, 4
(D) All the above

11. Make out a correct combination from the following sets I & II in the context of the industrial economics:
Set – I                                                 Set – II
i. SCP Approach                     a. James Buchanan
ii. Transaction Cost Theory     b. Neoclassical Theory
iii. Public Choice Theory         c. Herfindahl-Hirschmann Index
iv. Industrial Concentration    d. Williamson
i           ii          iii         iv
(A)       b          d          a          c
(B)       c          d          b          c
(C)       a          c          d          b
(D)       d          b          a          c

12. Backward-bending supply curve of labour suggests that
(A) When wage rate increases, supply of labour declines.
(B) When wage rate declines, supply of labour increases.
(C) There is no relationship between wage rate and labour supply.
(D) When wage rate increases, initially labour supply increases and after some point with the increase in wage rate, labour supply decreases.

13. Who among the following is not associated with the collective bargaining by the labour with the management?
(A) R.G. Lipsey
(B) Neil W. Chamberlain
(C) Carl M. Stevens
(D) Bevars D. Mabry

14. The M1 definition of money is
(A) Currency outside banks and checking deposits
(B) Currency outside banks, checking deposits and travellers checks
(C) Currency outstanding and checking deposits
(D) Currency outstanding, checking deposits and money market deposit accounts

15. The biggest component of reserve money in India is
(A) Treasury bills
(B) Currency in circulation
(C) Bankers deposits with RBI
(D) Other deposits with RBI

MCQs on Economics -17

1. Which of the following is not related with optimum currency area?
(A) Optimal geographical area for several currencies whose exchange rates are relatively pegged.
(B) Single currency do not fluctuate vis-à-vis other currencies.
(C) Single currency or the pegged currencies fluctuate jointly visà-vis other currencies.
(D) Optimal geographical area for a single currency.

2. Which of the following issues did the Uruguay Round not address?
(A) Migration
(B) Intellectual Property Right
(C) Services
(D) Tariff

3. The experience with managed exchange rates since 1973
(A) Strongly supports a fixed exchange rate system.
(B) Strongly supports a freely flexible exchange rate system.
(C) Mildly supports a flexible exchange rate system.
(D) Supports some restriction on exchange rate fluctuations.

4. List – I                  List – II
a. Free trade area         1. No restrictions on trade and factor movement
b. Customs union        2. Trade is free and no Customs Duties
c. Common market      3. No Customs Duties but duties on nonmembers
d. Economic union      4. Advanced stage of integration

a          b          c          d
(A)       2          1          3          4
(B)       3          2          4          1
(C)       2          3          1          4
(D)       1          3          4          2

5. An example of a Euro currency is
(A) A Dollar deposit outside the U.S.
(B) A Pound Sterling deposit outside the U.K.
(C) A Mark deposit outside Germany
(D) All of the above

6. Which one of the following tax is within the jurisdiction of the State Governments as enumerated in List – II of the Constitution of India?
(A) Taxes other than stamp duties on transactions in stock exchange and future markets.
(B) Taxes on Railway freights and fares.
(C) Taxes on mineral rights subject to any limitations imposed by the Parliament.
(D) Rate of stamp duty in respect of certain financial documents.

7. Match the items given in List – I with those in List – II:
List – I                                                List – II
I. Third Finance Commission              1. J.M. Shelat
II. Sixth Finance Commission            2. A.K. Chanda
III. Seventh Finance Commission      3. K.C. Pant
IV. Tenth Finance Commission          4. K. Brahmananda Reddy

I           II         III        IV
(A)       4          1          3          2
(B)       3          4          1          2
(C)       2          3          4          1
(D)       2          4          1          3

8. Which of the following are Government of India debt obligations?
I. State Provident Funds
II. Small Savings
III. Reserve Money
IV. Reserve Funds and Deposits

(A) I and II are correct.
(B) I, II and IV are correct.
(C) II and IV are correct.
(D) I, II and III are correct.

9. Arrange the following in chronological order:
I. Task Force on Direct and Indirect Taxes (Kelkar Committee)
II. Replacement of State Sales Taxby Value Added Tax
III. Introduction of MODVAT
IV. Fiscal Responsibility and Budget Management Act

(A) III, II, IV, I
(B) III, I, IV, II
(C) III, IV, I, II
(D) II, III, IV, I

10. Which of the following tax is introduced in India in 1953 and abolished in 1985?
(A) Estate Duty
(B) Expenditure Tax
(C) Gift Tax
(D) Agricultural Income-tax

11. Find out the items which are not in the scope of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM):
(A) Internal earmarking within local body budgets for basic services to the urban poor.
(B) Provide legal and financial support to metro/mono-rail projects in urban areas.
(C) Earmarking of at least 20-25percent of developed land in all housing projects for the economically weaker sections and low income groups category.
(D) Implementation of a seven point charter for provisioning of seven basic entitlements/services.

12. Which Economic Survey has introduced a new chapter on “Sustainable Development and Climate Change”?
(A) Economic Survey 2004-05
(B) Economic Survey 2007-08
(C) Economic Survey 2009-10
(D) Economic Survey 2011-12

13. Match the different Five Year Plans of India given in List – I with the annual growth rate of National Income (at 2004-05 prices) given in List – II:
List – I                        List – II
i. Eighth Plan              a. 5.5 percent
ii. Ninth Plan               b. 6.7 percent
iii. Tenth Plan              c. 7.5 percent
iv. Eleventh Plan         d. 7.8 percent

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

14. Which of the following programmes is not included in rural infrastructure development in India?
(A) Integrated Low Cost Sanitation Scheme (ILCS)
(B) Bharat Nirman
(C) Indira Awas Yojana (IAY)
(D) Total Sanitation Campaign (TSC)

15. For a firm in long-run equilibrium producing anallocatively efficient level of output where marginal cost is equal to demand, which of the following does not apply?
(A) Price is sufficient to cover the opportunity cost.
(B) Profit of the firm becomes zero.
(C) Price is sufficient to covercosts.
(D) This situation also satisfies the consumers.

MCQs on Economics -34

1. Which of the following are true of disguised unemployment?
I. It represents potential savings.
II. The marginal productivity of labour is zero or extremely low.
III. It is due to the existence of joint family system.
IV. It is confined to the rural areas.
(A) II and IV
(B) III and IV
(C) I, II and III
(D) I, II, III and IV

2. According to A.K. Sen, famines occurred in India because of
(A) Lack of proper distribution mechanism
(B) Lack of demand
(C) Lack of transportation
(D) Shortage of food grains

3. In India, Five Year Plan is formulated by
(A) C.S.O.
(B) Planning Commission
(C) Finance Commission
(D) Planning Ministry

4. In which year, the Wildlife Board in India was established?
(A) 1952
(B) 1968
(C) 1986
(D) 1992

5. Indian planning mechanism was criticised by
(A) A.K. Sen
(B) Jagdish Bhagwati
(C) L.K. Jha
(D) Bimal Jalan

6. ‘Aam Admi Bima Yojana’ provides social security to
(A) All labour in rural areas
(B) All landless labour living below poverty line in rural areas
(C) All labour in urban areas
(D) All labour in both rural and urban areas

7. List – I                              List – II
i. 1st Five Year Plan                a. Agriculture
ii. 2nd Five Year Plan             b. Heavy industries
iii. 5th Five Year Plan             c. Anti-poverty Programmes
d. Luxury items
(A) i – a, ii – b, iii – c
(B) i – d, ii – b, iii – c
(C) i – d, ii – c, iii – a
(D) i – c, ii – a, iii – b

8. Which State in India has the lowest Infant Mortality Rate?
(A) Maharashtra
(B) Goa
(C) Gujarat
(D) Kerala

9. Assertion (A): In the agricultural lending mechanism of India, moneylenders despite their usurious rates of interest are still predominant.
Reason (R): Most often the commercial banks could not meet the target of 18% of their total lending for the agricultural sector in the country.
(A) Both (A) and (R) are true and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(C) (A) is true and (R) is false.
(D) (A) is false and (R) is true.

10. Which one of the following does not come under land reforms in India?
(a) Abolition of Intermediaries and Tenancy Legislation
(b) Ceiling on Land Holding and Co-operating Farming
(c) Tenancy Legislation and Technology Upgradation
(d) Abolition of Intermediaries and Green Revolution
(A) (a) and (c)
(B) (a) and (d)
(C) (a) and (b)
(D) (a), (b), (c) and (d)

11. Assertion (A): In India, ‘Green Revolution’ was also criticized as Wheat Revolution.
Reason (R): The productivity of wheat in India during the1970’s was one of the highest in the world.
(A) Both (A) and (R) are true and(R) is the correct explanation of (A).
(B) Both (A) and (R) are true, but(R) is not the correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.

12. Assertion (A): Agricultural income is taxed by the Union Government.
Reason (R): Agriculture is a State subject.
(A) Both (A) and (R) are true and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true and (R) is not the correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.

13. Match items given in List – I with those in List – II:
List – I                                    List – II
a. Green Revolution                1. Oilseeds
b. Yellow Revolution              2. Milk
c. White Revolution                3. Fish
d. Blue Revolution                  4. Wheat

a          b          c          d
(A)       4          1          2          3
(B)       4          2          1          3
(C)       2          1          3          4
(D)       2          4          3          1

14. The fundamental cause for the collapse of the Bretton Woods System was
(A) The liquidity problem
(B) The adjustment problem
(C) The confidence problem
(D) All of the above

15. Hedging refers to
(A) The acceptance of a foreign exchange risk
(B) The covering of a foreign exchange risk
(C) Foreign exchange speculation
(D) Foreign exchange arbitrage