1. The Bretton – Woods system
(A) set up a code of rules for nations to
follow their conduct of international trade
(B) set up borrowing facilities for
nation’s temporary balance of payments problems
(C) Evolved over the years in several
important ways
(D) All of the above
2. Full employment and balance of
payments equilibrium will be automatically achieved in an optimum currency area
(A) if exchange rates are flexible
(B) foreign capital flows into the country
(C) if labour and capital move freely
(D) if trade is liberalized
3. Examples of economic integration
I. Free trade area
II. Customs union
III. Common market
IV. Cartel
(A) I and II are correct
(B) II and III are correct
(C) I, II and IV are correct
(D) I, II and III are correct
4. Maximum rate of tariff India
can levy on edible oil under WTO Agreement on Agriculture is
(A) 100%
(B) 150%
(C) 200%
(D) 300%
5. WTO Agreement on Agriculture consists
of
I. Domestic support
II. Export subsidies
III. Market access
IV. Input subsidies
(A) I and IV are correct.
(B) II and IV are correct.
(C) I, II and III are correct.
(D) I, II and IV are correct.
6. In Harrod’s growth model, neutral
technical progress implies technical progress as
(A) Capital augmenting
(B) Labour augmenting
(C) Both labour and capital augmenting
(D) Productivity increasing
7. Which are the two gaps affecting
growth process of an economic system in the two gap model of growth ?
(A) Saving gap and investment gap
(B) Income gap and consumption gap
(C) Foreign exchange gap and domestic
saving gap
(D) Export gap and import gap
8. The ‘Golden Age’ model was developed
by
(A) Nicholas Kaldor
(B) Joan Robinson
(C) J.R. Hicks
(D) R.F. Harrod
9. Terms of Trade of the developing
countries are unfavourable due to the fact that whenever income in developed
countries increases the demand for primary goods reduces because
(A) Income elasticity of demand for primary
goods is high.
(B) Income elasticity of demand for
primary goods is low.
(C) Income elasticity of demand is
neutral towards primary goods.
(D) None of the above
10. T.W. Schultz has given the following
ratios in relation to education for economic growth:
(A) Education capital and labour ratio
(B) Education labour ratio
(C) Education-income ratio
(D) Education labour ratio, education
income ratio and education investment ratio
11. The cost
incurred by the firm in hiring labour is called as
(A) Explicit Cost
(B) Implicit Cost
(C) Marginal Cost
(D) Total Cost
12. The locus of
Pareto Optimality in Production and Consumption is given by
(A) The Social
Welfare Function
(B) The Utility
Possibility Curve
(C) The Transformation
Curve
(D) The Grand
Utility Possibility Curve
13. List –
I List – II
a. Tea and
Coffee 1. Veblen goods
b. Car and
Petrol 2. Substitutes
c. Gold and
Diamonds 3.
Giffen goods
d. Ragi and
Bajra 4. Complementary
Codes:
a b c d
(A) 2 1 3 4
(B) 2 4 1 3
(C) 4 1 2 3
(D) 4 3 1 2
14. Assertion
(A): In the short run under perfect competition, given the market demand and
market supply the industry is in equilibrium at that price which clears the
market.
Reason (R): In
the long run all the firms in the industry earn profit.
Codes:
(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.
15. Put the
following in chronological order on the basis of development:
i. Law of Demand
ii. Revealed
Preference Analysis
iii. Indifference
Curve Analysis
iv. Law of
Diminishing Marginal Utility
(A) i iii ii iv
(B) i iv iii ii
(C) i ii iv iii
(D) i iii iv ii
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