PAPER-III

ECONOMICS
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J-01-12 1 P.T.O.
 ECONOMICS
PAPER III
Note : This paper contains seventy five (75) objective type questions of two (2) marks
each. All questions are compulsory.

1. A solution of Walrasian general 3. The producer will substitute capital

equilibrium will exist if and only if, for labour till he reaches that point
of isoquant at which,
(A) Condition of fixed point (A) The price of the good he
theorem is satisfied. produces equals wage rate.
(B) Marginal rate of technical
(B) Paretos condition of
substitution equals interest
optimality is satisfied. rate.
(C) Hicks stability conditions are (C) Marginal rate of technical
satisfied. substitution equals marginal
revenue.
(D) The condition of Paretos law (D) Marginal rate of technical
of income distribution is substitution equals the ratio of
satisfied. marginal productivity of
labour and capital.
4. Match the items from the List I
2. Select the correct statement of with items in List II :
Adding up Theorem. List I List II
I. Sales maximization 1. Morris
(A) If income generated by the as the objective of
given output produced during the firm
the given period is distributed II. Growth 2. Baumol
according to average maximization as
objective of the
productivity of all factors, total firm
income will be exhausted. III. Managerial Utility 3. Williamson
Function Maximi-
(B) Total income derived from the
zation as objective
output will be exhausted if all of the firm
factors are paid according to IV. Sales, profit & 4. Kaldor
their marginal productivity. growth
maximization as
(C) Total income derived from the objective of the
output will be exhausted if all firm
factors are paid at the same Select the correct answer from the
following codes :
rate.
Codes :
(D) Total income will be exhausted I II III IV
if all factor rewards are (A) 2 1 3 None
proportional to commodity (B) 1 2 3 4
(C) 2 1 4 3
prices.
(D) 4 3 2 1
Paper-III 2 J-01-12

III
: (75) - (2)

1. 3.
:
:
(A) (A)

(B)
(B)
(C) (C)

(D)
(D)

4. -I -II
:
2. ( )
I II
:
I. 1.
(A)
()
II. 2.


, :
III. 3.

(B) :

IV. 4.
,

(C) :
:
I II III IV
(A) 2 1 3 None
(D)
(B) 1 2 3 4
, (C) 2 1 4 3
: (D) 4 3 2 1
J-01-12 3 Paper-III
5. Match the items in List I with 7. Assertion (A) : Non-collusive
items in List II : model of Chamberlin asserts
List I List II that a stable equilibrium can be
reached if each firm charges
I. Cardinal Utility 1. Hicks Monopoly price and equally
Theory of shares the market demand for
Demand their products.
II. Revealed 2. A. Marshall Reason (R) : Reasoning is that the
Preference firms recognize mutual
Theory of interdependence in terms of
Demand action and reaction with regard
III. Indifference 3. Neuman & to price decision with the
Preference Morgenstern objective of profit
Theory of maximization which will be
Demand realized if prices are
IV. Utility Index 4. Samuelson determined at a level which
under equals marginal cost.
uncertainty Codes :
Select the correct answer from the (A) Both (A) & (R) are correct and
following codes : (R) is the correct explanation
Codes : of (A).
I II III IV (B) (A) is correct, but (R) is not
(A) 1 2 3 4 correct.
(B) 4 3 2 1
(C) Both (A) & (R) are correct but
(C) 2 4 1 3
(R) is not the correct
(D) 4 1 3 2
explanation of (A).
6. Arrange the proponents of the (D) (R) is correct, but (A) is
marginal productivity theory of incorrect.
factor reward in chronological
order : 8. The revealed preference approach to
1. J.B. Clark the derivation of indifference curve
2. Marshall
(A) Assumes stability over time of
3. Walras
an observed persons tastes.
4. Jevons
Select the correct code for correct (B) Assumes that all people have
answer : identical tastes.
Codes : (C) Relies on repeated
(A) 1, 4, 2, 3 observations of the market
(B) 4, 3, 1, 2 behaviour of a single person.
(C) 1, 3, 4, 2 (D) Is correctly described by both
(D) 2, 1, 4, 3 (A) and (C).
Paper-III 4 J-01-12
5. I II 7. (A) :
: -/
I II
I. 1.

II. 2.

(R) :
III. 3.


IV. 4. :


: I II III IV
: :
I II III IV
(A) (A) (R) , (R),
(A) 1 2 3 4
(A)
(B) 4 3 2 1
(C) 2 4 1 3 (B) (A) , (R)
(D) 4 1 3 2 (C) (A) (R) ,
6. (R), (A)
(D) (R) , (A)
:
1. . . 8.
2. :
3. (A)
4.
: (B)
:
(A) 1, 4, 2, 3
(C)
(B) 4, 3, 1, 2

(C) 1, 3, 4, 2 (D) (A) (C)
(D) 2, 1, 4, 3
J-01-12 5 Paper-III
9. Which of the following statements
does not hold true in case of the
Keynesian Economics ?
(A) Velocity of money is an
unstable function of its
determinants.
(B) Labour is subject to money
illusion.
(C) Aggregate supply function
tends to become flat at levels
of output well below full
employment and to become
steeper as full capacity is
reached.
(D) Aggregate supply schedule is
vertical, and output and
employment are completely
supply determined.
10. Tobins q-theory of investment
indicates that firms add to their stock
of capital when
(A) the replacement value of their
real assets exceeds the market
value of their financial assets.
(B) the market value of their
financial assets exceeds the
replacement value of their real
assets.
(C) the market value of their real
assets exceeds the book value
of their financial assets.
(D) the market value of their
financial assets exceeds the
book value of their real assets.
Paper-III
11. When current income includes
negative transitory component,
relating consumption with current
income will produce
(A) an average propensity to
consume that is lower than the
long run average propensity to
consume.
(B) an average propensity to
consume that is higher than the
average long run propensity to
consume.
(C) an average propensity to
consume that equals the long
run average propensity to
consume.
(D) None of the above
12. Liquidity trap is a situation when
(A) all potential investors expect
the rate of interest to rise in
future
(B) all potential investors expect
the rate of interest to fall in
future
(C) natural rate of interest is above
the critical rate of interest
(D) demand for money for
speculative purpose is interest-
inelastic
13. In Harrods model of economic
growth, if warranted rate is below
the natural rate of growth then it is
possible to maintain steady state
growth at the warranted rate with
(A) continually increasing
unemployment
(B) a constant rate of
unemployment
(C) continually decreasing
unemployment
(D) None of the above
6 J-01-12
9. 11.
() ,
?

(A) :
(A) (
)
(B) , ( )
(C)
() (B)


(C) (
)
(D)
, ()
(D)

12.
10. -
(A)

:

(A) (B)


(C)

(B) , (D)
-

(C) 13. ,



?
(A)
(D)
(B)

(C)

(D)
J-01-12 7 Paper-III
14. Which of the following is not a feature 17. Since March 2010, how many times
of the A.W. Phillips inflation- the Reserve Bank of India has
unemployment trade-off relation ? increased the repo rate ?
(A) A non-linear inverse (A) Eleven times
relationship between (B) Thirteen times
unemployment rate and the (C) Ten times
rate of exchange in wage rate. (D) Twelve times
(B) There is a loop in the anti-
clockwise around the Phillips 18. Which of the following Committees
curve. has been set up in India for
(C) The wage-inflation identification of BPL families in
unemployment relationship is urban areas ?
predictable. (A) Tendulkar Committee
(D) Philips curve shifts when (B) Saxena Committee
expected rate of inflation shifts (C) Lakdawala Committee
(D) Hashim Committee
15. Suppose there is full employment
and vertical aggregate supply 19. A major financial inclusion initiative
schedule. An increase in the nominal named Swabhiman was formally
money supply launched on
(A) reduces the rate of interest and (A) February 2010
changes the composition of (B) February 2011
output (C) February 2009
(B) causes a proportional increase (D) February 2008
in real output
(C) has no effect on the real money 20. Which of the Five Year Plans has
supply or the composition of laid emphasis on faster, sustainable
output and inclusive growth ?
(D) causes the real money supply (A) Eleventh Five Year Plan
to increase, which changes (B) Twelfth Five Year Plan
composition of output (C) Tenth Five Year Plan
(D) Ninth Five Year Plan
16. In the context of the Mundell-
Fleming model of open economy, 21. Under the revised Index of Industrial
consider the following variables that Production (IIP) series, with 2004-05
shift the IS function. as the base, the total number of items
covered has increased from 538 to
1. a rise in the exchange rate (A) 682 (B) 662
2. an increase in foreign income (C) 652 (D) 642
3. a cut in taxes
4. a fall in exchange rate 22. Which one of the following States
Which of the following had the highest per capita income in
combinations of these factors shift 2009-10 ?
the IS function upwards towards the (A) Punjab
right ? (B) Haryana
(A) 1, 2, 4 (B) 2, 3, 4 (C) Madhya Pradesh
(C) 1, 2, 3 (D) 3, 4, 1 (D) Delhi

Paper-III 8 J-01-12
14. . . - 17. 2010
- ? ?
(A) (A) (B)
(C) (D)

18. ...
(B)

?
(C) - (A)
(B)
(D) (C)
(D)

19.

15. ?

(A) , 2010
:
(B) , 2011
(A)
(C) , 2009

(D) , 2008
(B) ()
20.
?
(C)
(A)
(B)
(D)
(C)
(D)
16. - 21.
, , 2004-05
.. : , 538
1. ?
2. (A) 682 (B) 662
3. (C) 652 (D) 642

4. 22. 2009-10
?
.. (A)
? (B)
(A) 1, 2, 4 (B) 2, 3, 4 (C)
(C) 1, 2, 3 (D) 3, 4, 1 (D)

J-01-12 9 Paper-III
23. Which one of the following States 27. Arrange the following Committees
had the highest number of branches in chronological order from the
of Regional Rural Branches (RRBs) given codes
in 2010 ? I. Khusro Committee
(A) Bihar II. Dantwala Committee
(B) Haryana III. Narasimham Committee
(C) Madhya Pradesh IV. Kelkar Committee
(D) Punjab Codes :
(A) I, II, III, IV
(B) II, IV, I, III
24. Growth of Indian agriculture has
(C) II, I, IV, III
been slowed down since the
(D) II, III, I, IV
adoption of new economic policy
due to 28. Assertion (A) : The working of
1. low increase in crop yield Regional Rural Banks (RRBs)
2. low or no public investment revealed that they eroded their
3. stagnant green revolution capital base.
technology Reason (R) : Many RRBs are non-
4. low retail market prices of viable and having high
agricultural produce operating costs.
Answer this question by selecting Of the above two statements, give
the correct combination of codes the correct answer from the given
given below : codes :
Codes : Codes :
(A) 1, 2, 3, 4 (A) Both (A) and (R) are correct
(B) 2, 3 and (R) is the correct
(C) 1, 2, 3 explanation of (A).
(B) Both (A) and (R) are correct,
(D) 1, 4
but (R) is not the correct
explanation of (A).
25. According to the monetarists, money
(C) (A) is true, but (R) is false.
supply constitutes
(D) (A) is false, but (R) is true.
(A) Currency + demand deposits
(B) Currency + demand deposits +
29. Which of the following institutions
time deposits
are regulated by the RBI as All India
(C) Currency + demand deposits +
Financial Institution ?
time deposits + equity shares
I. Export Import Bank of India
(D) Currency + all kinds of bank
II. National Housing Bank
deposits + deposits with other
III. State Bank of India
institutions + borrowing
IV. Small Industries Development
Bank of India
26. Which of the following is not a
Select the correct answer from the
specialized sub market of the money
given code :
market ?
Codes :
(A) Collateral loan market (A) I, II and IV
(B) Discount market (B) II, III, IV
(C) Bond market (C) I & II
(D) Acceptance market (D) III & IV
Paper-III 10 J-01-12
23. 2010 27.

? :
(A) I.
(B) II.
III.
(C)
IV.
(D)
:
24. (A) I, II, III, IV
(B) II, IV, I, III
: (C) II, I, IV, III
(D) II, III, I, IV
1.
2. 28. (A) :
3.
4. /
(R) : -
:

: ,
(A) 1, 2, 3, 4 :
(B) 2, 3 :
(C) 1, 2, 3 (A) (A) (R) , (R),
(D) 1, 4 (A)
(B) (A) (R) ,
25. , (R), (A)
: (C) (A) , (R)
(A) (D) (A) , (R)
(B) +
29.
(C) + +

+
I.
(D) + + II.
+ III.
IV.
26. :
? :
(A) (A) I, II, IV
(B) (B) II, III, IV
(C) () (C) I II
(D) III IV
(D)
J-01-12 11 Paper-III
30. Core inflation is a measure of 35. A Kisan Credit Card (KCC) Scheme
inflation was introduced in the year
(A) that is based only on food and (A) 2001 (B) 2005
energy prices (C) 1998 (D) 1999
(B) that includes items that face
volatile price movements,
notably food and energy 36. Increase in agricultural production
(C) that excludes items that face and productivity is a pre-condition
volatile price movements, (A) to raise the share of agriculture
notably food and energy in GDP
(D) None of the above (B) to ensure national food
security
31. First Green Revolution was
primarily concerned with the (C) to provide livelihood and
production and productivity of nutritional security
(A) Pulses (D) All of the above
(B) Oilseeds
(C) Wheat 37. Select the year in which the gross
(D) Fruits & vegetables fiscal deficit, revenue deficit and
primary deficit of the Central
32. During the period from 2004-05 to
Government as percent of GDP were
2010-11, agricultural sector GDP
(A) witnessed a higher growth rate the highest ?
than the overall GDP (A) 2008-09 (B) 2006-07
(B) witnessed a lower growth rate (C) 2007-08 (D) 2005-06
than the overall GDP
(C) witnessed a stagnant growth 38. Which item is likely to be the most
rate as compared to the overall significant item of expenditure of the
growth rate
(D) witnessed a similar growth rate Central Government during
as that of the overall GDP. 2011-12 ?
(A) Subsidies
33. The main objectives of food (B) Defence
management are (C) Interest
(A) Procurement of food grains (D) Share of States in Central taxes
from farmers at remunerative
prices
(B) Distribution of food grains to 39. Items of social sector expenditure of
consumers at affordable prices. the State Governments include
(C) Maintenance of food buffers I. Education and sports
for food security and price II. Energy and transport
stability III. Medical and public health
(D) All of the above
IV. Water supply and sanitation
34. Which one of the following States Find correct answer from given
contributed maximum to the codes :
production of pulses in the year Codes :
2009-10 ? (A) I, II and III are correct.
(A) Uttar Pradesh (B) I, III and IV are correct.
(B) Madhya Pradesh
(C) Rajasthan (C) II, III and IV are correct.
(D) Punjab (D) I and III are correct.
Paper-III 12 J-01-12
30. 35. (KCC)
? ?
(A) (A) 2001
(B) 2005
(B) (C) 1998
(D) 1999

36.
(C) ?
(A)
,
(B)
(D)
(C)
31.
: : (D)
(A) (B)
(C) (D) 37.
, ,
32. 2001-05 2010-11
:
(A)
(A) 2008-09 (B) 2006-07
(C) 2007-08 (D) 2005-06
(B)
38. 2011-12
(C)
:
(D) (A)
(B)
(C)
33. : (D)
(A)
39.
(B) :
I.
(C) , II.
III.
IV.
(D) :
:
34. 2009-10 (A) I, II III
? (B) I, III IV
(A) (B) (C) II, III IV
(C) (D) (D) I III
J-01-12 13 Paper-III
40. Match the items of List I with 42. Arrange the following Reports in
items of List II from the given chronological order from the given
code : codes :
List I List II
I. Committee on Taxation of
I. Law of 1. R.N.
Agricultural wealth and
increasing Bhargava
income
State
activities II. Report of the task force on
II. Displacement 2. Adolph direct taxes.
effect Wagner
III. Thirteenth Finance
III. Federal 3. Weisman and
Commission : 2010-15
Finance Peacock
IV. Functional 4. A.P. Lerner IV. Indian Tax Reforms Report
Finance of a survey
Codes : Codes :
I II III IV
(A) III, II, IV, I
(A) 1 2 3 4
(B) 2 3 1 4 (B) IV, I, II, III
(C) 3 4 2 1 (C) II, III, I, IV
(D) 4 1 3 2
(D) I, IV, III, II

41. Assertion (A) : The Union Budget

for 2010-11 had begun the 43. In a competitive market, a tax on
process of fiscal consolidation wage income falls wholly on labour
with a partial withdrawal of if :
the stimulus measures.
Reason (R) : There was a clear (A) Labour supply is inelastic
evidence of economic recovery (B) Labour supply is elastic
in the economy.
In the context of the above two (C) Labour supply is highly elastic
statements, which one is correct (D) Demand for products has
from the given codes ? infinite elasticity
Codes :
(A) Both (A) and (R) are correct
and (R) is the correct 44. The apex financial institution
explanation of (A). responsible for the development of
(B) Both (A) and (R) are correct small and micro industries in India is
and (R) is not the correct
explanation of (A). (A) IDBI
(C) (A) is correct, but (R) is (B) SIDBI
incorrect.
(C) NABARD
(D) (R) is correct, but (A) is
incorrect. (D) None of the above
Paper-III 14 J-01-12
40. I II 42.
:
I II :
I. 1. . . I.

II.
II. 2.
III. 13 : 2010-15
III. 3.
IV.
IV. 4. .. :
: (A) III, II, IV, I
I II III IV (B) IV, I, II, III
(A) 1 2 3 4
(C) II, III, I, IV
(B) 2 3 1 4
(D) I, IV, III, II
(C) 3 4 2 1
(D) 4 1 3 2
43. ,
41. (A) : , 2010-11 : :
(A)

(B)
(R) :
(C)
, (D)
?
: 44.
(A) (A) (R) (R), :
(A) (A) . . . .
(B) (A) (R) , (R),
(A) (B) . . . . .

(C) (A) , (R) (C)

(D) (R) , (A) (D)
J-01-12 15 Paper-III
45. The general methods used to solve
industrial disputes in India are
1. Collective bargaining
2. Compulsory arbitration
3. Adjudication
4. Decision by trade unions
Choose the correct combination of
methods from this following :
(A) 1 and 2
(B) 2 and 3
(C) 2 and 4
(D) 1 and 3
46. Given below are two statements, one
labelled as Assertion (A) and other
labelled as Reason (R) :
Assertion (A) : Information
Technology (IT) industry is a
high knowledge based
industry that has developed
rapidly, mainly on its own
merits in India.
Reason (R) : Industry that is based
on high knowledge does not
need any significant support
from the Government nor there
is much scope for outside
interference.
Choose the correct combination of
codes given below :
Codes :
(A) (A) is correct, but (R) is
wrong.
(B) Both (A) and (R) are correct.
(C) (A) is wrong, but (R) is
correct.
(D) Both (A) and (R) are wrong.
47. Match SEBI with the appropriate
item among the following :
(A) Regulation of Money market
(B) Regulation of Capital market
(C) Regulation of Commodity
market
(D) All the above
Paper-III
48. Given below are the various
combinations giving the steps of
industrial development. Select the
correct sequential combination of
steps.
(A) Monetary expansion; industrial
development; fall of interest;
investment is stimulated.
(B) Industrial development; fall of
interest; monetary expansion;
investment is stimulated.
(C) Monetary expansion; fall of
interest; investment is stimulated;
industrial development.
(D) Industrial development; fall of
interest; monetary expansion;
investment is stimulated.
49. Under the post 1991 economic
policies, the Government of India
supports
(A) Private manufacturing sector
(B) Export industries
(C) Small industries
(D) All the above
50. Which of the following is the
condition(s) of economic viability
and technological feasibility of
Leontiefs static model ?
(A) Perron Frobinius root
(B) Value of the objective function
of the primal should equal the
value of the objective function
of the dual of the primal.
(C) KuhnTucker conditions
(D) HawkinsSimon conditions
16 J-01-12
45. 48.
:
1. :
2.
(A) /,
3.
, ,
4.
:
: (B) , ,
(A) 1 2 ,
(B) 2 3
(C) , ,
(C) 2 4
,
(D) 1 3
(D) , ,
46. ,
,
(A) (R)
:
(A) : 49. 1991

: :

(A)
(R) : (B)
(C) ( )

(D)
:
:
50.
(A) A , R

(B) A R
?
(C) A , R
(D) A R (A)
47. SEBI (....) (B) ,
:
(A)
(B)
(C) -
(C)
(D) (D)
J-01-12 17 Paper-III
51. Given the following production 53. Which of the following hypotheses
function, match the items in list I are tested by a regression function ?
and II : (A) Inter-relation between two or
more variables is significantly
Y = A L K , > 0
different from Zero.
(B) The degree and direction of
List I List II inter relations between two or
I. Decreasing 1. +>1 more variables are non-zero
returns to and goodness of fit of the
scale regression function is
II. Increasing 2. satisfactory.
returns of (C) Degree of influence exercised
scale by systematic explanatory
III. Output 3. +<1 factors is greater/lesser/equal
elasticity with to the influence exercised by
respect to L random factors.
(D) All the above
IV. Output 4.
elasticity with
respect to K 54. In the presence of
Heteroscedasticity, which of the
Codes :
following is not a correct statement ?
I II III IV (A) Heteroscedasticity does not
(A) 3 1 2 4 alter the unbiasedness and
(B) 1 2 4 3 consistency properties of OLS
(C) 4 1 3 2 estimators.
(B) OLS estimators are of
(D) 2 3 4 1
minimum variance or efficient
(C) BLUE estimators are provided
52. Match the following : by the method of weighted
List I List II least squares.
I. Box-Jenkins 1. Causality (D) t and F tests based on
Method standard assumptions of
II. Unit-root test 2. Forecasting classical linear regression
III. Durbin- 3. Stationarity model may not be reliable.
Watson d
statistic 55. Correlation coefficient between X
IV. Granger test 4. Auto and Y is 0.3 and correlation
correlation coefficient between P and Q is 0.6,
Codes : then the strength of correlation
between P and Q is higher than
I II III IV
between X and Y by
(A) 3 1 2 4 (A) two times
(B) 2 3 4 1 (B) three times
(C) 1 2 3 4 (C) four times
(D) 4 1 2 3 (D) five times

Paper-III 18 J-01-12
51. : 53.
Y = A L K , > 0 ?
-I -II (A) :
:
(B) :

I II
I. 1. + > 1
(C)
II. 2.

III. L 3. + < 1 ()
(D)
IV. K 4.

54.
: ?
I II III IV (A) OLS (...)
(A) 3 1 2 4
(B) 1 2 4 3
(C) 4 1 3 2 (B) OLS (
(D) 2 3 4 1 )
(C) BLUE
52. :

I II
(D)
I. - 1.
( ) t
II. - 2. F

III. - 3.

55. X Y 0.3
() P Q 0.6
IV. 4. : , P Q
: X Y
?
I II III IV
(A)
(A) 3 1 2 4
(B) 2 3 4 1 (B)
(C) 1 2 3 4 (C)
(D) 4 1 2 3 (D)
J-01-12 19 Paper-III
56. Which of the following are 61. For the regression model
conditions of consumers Y = 0 + 1X1 + 2X2 + . + kXk + e
equilibrium in a two commodity case
The degrees of freedom of test
where U = utility and P1 and P2 are
statistic | t |, with n observations is
prices of two goods ? (A) n k
(A) U/X = 0 (B) n k + 1
(B) U1/U2 = 0
(C) n k 1
(C) 2U/X2 < 0 (D) n + k 1
(D) None of the above
57. The production function 62. The act of simultaneously buying a
Q = A [K a
+ L ] a 1/a
is currency in one market and selling in
homogeneous of degree another market is called
(A) zero (B) one (A) Speculation
(C) Infinity (D) a (B) Spotting
58. Given the total cost function (C) Forwarding
(D) Arbitrage
C = 7Q2 + 26Q + 5, MC at Q = ` 5 is
(A) ` 100 (B) ` 200
(C) ` 85 (D) ` 96 63. All internationally traded services
are covered under which of the
59. Match the following :
following WTO agreements ?
List I List II
I. Acceptance 1. Simple random (A) GATS (B) TRIPS
of H0 when it sampling (C) TRIMS (D) PTA
is false
II. Mean is equal 2. Type II error 64. The Bretton Woods system
to degrees of (A) set up a code of rules for
freedom nations to follow their conduct
III. Population is 3. Positively of international trade
homogeneous skewed (B) set up borrowing facilities for
distribution nations temporary balance of
IV. Mean > Mode 4. 2 Distribution payments problems
Codes : (C) Evolved over the years in
I II III IV several important ways
(A) 2 4 3 1 (D) All of the above
(B) 1 2 3 4
(C) 2 4 1 3
(D) 4 1 2 3 65. Full employment and balance of
60. For the regression model given below payments equilibrium will be
Y = 0 + 1X + U automatically achieved in an
Y = 20 + 2X optimum currency area
SE : 0.46 (A) if exchange rates are flexible
To test H0 : 1 = 2.1 against H1 : 1 (B) foreign capital flows into the
2.1 (not equal to 2.1), test statistic country
| t | is equal to (C) if labour and capital move
(A) 4.609 (B) 0.217 freely
(C) 4.34 (D) 0.33 (D) if trade is liberalized
Paper-III 20 J-01-12
56. , U = 61. :
P1, P2 , Y = 0 + 1X1 + 2X2 + . + kXk + e
n
? / t
(A) U/X = 0 :
(B) U1/U2 = 0 (A) nk
2
(C) U/X < 0 2 (B) nk+1
(C) nk1
(D)
(D) n+k1
57. Q = A [Ka + La]1/a
? 62.
(A) (B)
(C) (D) a ?
58. : C = 7Q2 + 26Q + 5, (A)
Q = ` 5 MC : (B) ()
(A) ` 100 (B) ` 200 (C) ( )
(C) ` 85 (D) ` 96 (D)
59. : 63.
I II ...
I. H0 1. ?
(A) ( )
II. 2. II (B) ( )
(C) ( )
(D) ...
III. 3.
64. :
IV. > 4. 2 (A)
:
I II III IV
(A) 2 4 3 1 (B)
(B) 1 2 3 4
(C) 2 4 1 3
(D) 4 1 2 3 (C)
60.
Y = 0 + 1X + U (D)
Y = 20 + 2X 65.
SE : 0.46
H0 : 1 = 2.1 H1 : 1 2.1 :
(A)
(B)
| t | :
(C)
(A) 4.609 (B) 0.217
(C) 4.34 (D) 0.33 (D)
J-01-12 21 Paper-III
66. Examples of economic integration 72. Assertion (A) : The new
I. Free trade area endogeneous growth theory
II. Customs union examines production function
III. Common market that shows increasing returns.
IV. Cartel Reason (R) : Because of
(A) I and II are correct specialization and investment
(B) II and III are correct in knowledge capital.
(C) I, II and IV are correct (A) (A) is true, but (R) is false.
(D) I, II and III are correct (B) (R) is true, but (A) is false.
67. Arrange the order of WTO (C) Both (A) and (R) are correct,
ministerial but (R) is not the correct
I. Seattle II. Cancun explanation of (A).
III. Singapore IV. Doha (D) Both (A) and (R) are correct
(A) II, I, III, IV (B) III, II, I, IV and (R) is the correct
(C) III, I, IV, II (D) II, III, I, IV explanation of (A).
68. Maximum rate of tariff India can
levy on edible oil under WTO 73. The Golden Age model was
Agreement on Agriculture is developed by
(A) 100% (B) 150% (A) Nicholas Kaldor
(C) 200% (D) 300% (B) Joan Robinson
69. WTO Agreement on Agriculture (C) J.R. Hicks
consists of (D) R.F. Harrod
I. Domestic support
II. Export subsidies 74. Terms of Trade of the developing
III. Market access countries are unfavourable due to the
IV. Input subsidies fact that whenever income in
(A) I and IV are correct. developed countries increases the
(B) II and IV are correct. demand for primary goods reduces
(C) I, II and III are correct. because
(D) I, II and IV are correct. (A) Income elasticity of demand
70. In Harrods growth model, neutral for primary goods is high.
technical progress implies technical (B) Income elasticity of demand
progress as for primary goods is low.
(A) Capital augmenting (C) Income elasticity of demand is
(B) Labour augmenting neutral towards primary goods.
(C) Both labour and capital (D) None of the above
augmenting
(D) Productivity increasing 75. T.W. Schultz has given the
71. Which are the two gaps affecting following ratios in relation to
growth process of an economic education for economic growth :
system in the two gap model of (A) Education capital and labour
growth ? ratio
(A) Saving gap and investment gap (B) Education labour ratio
(B) Income gap and consumption (C) Education-income ratio
gap (D) Education labour ratio,
(C) Foreign exchange gap and education income ratio and
domestic saving gap education investment ratio
(D) Export gap and import gap
Paper-III 22 J-01-12
66. : 72. (A) :
I.
II.
III.
IV. ( ) (R) :
(A) I II
(B) II III (A) (A) , (R)
(C) I, II IV
(D) I, II III (B) (R) , (A)
(C) (A) (R) , (R)
67.
: (A)
I. II. (D) (A) (R) , (R),
III. IV. (A)
(A) II, I, III, IV (B) III, II, I, IV
(C) III, I, IV, II (D) II, III, I, IV
68. 73. ?
(A)
? (B)
(A) 100% (B) 150%
(C) 200% (D) 300% (C) . .
69. (D) . .
:
I. / 74.
II.
III.
IV. ()
:
(A) I IV (A)
(B) II IV
(C) I, II III
(D) I, II IV (B)
70.
: (C)
(A)

(B)
(C) (D)
(D)
75. . .
71. () :

() ? (A) ,
(A) (B)
(B) (C)
(C)
(D) ,

(D)
J-01-12 23 Paper-III
 Space For Rough Work

Paper-III 24 J-01-12