PAPER-III

ECONOMICS
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S-01-13

Roll No.
(In figures as per admission card)

Roll No.________________________________
(In words)
[Maximum Marks : 150
Number of Questions in this Booklet : 75

1.
2. -
3. , -
-
, :
(i) - /
- /

(ii) -

/


-

-

(iii) OMR -

4. (A), (B), (C) (D)


:
(C)
5. OMR
OMR
,

6.
7. (Rough Work)
8. OMR ,
,
, ,
,

9. OMR


OMR
10. /
11. ()

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 firm operating in perfectly

competitive product and input
markets. Maximizes its total profit
when

4.

Match the items in List I with items

in List II :
List I
List II
a. Various
1. Indifference
combination that
Map
a consumer can
purchase
b. Various
2. Budget Line
combination of
two commodities
that give the
consumer equal
satisfaction
c. A set of
3. Consumer
indifference
Equilibrium
curves
d. Point of tangency 4. Indifference
of a budget line
Curves
and indifference
curve
Codes :
a
b
c
d
(A) 2
4
1
3
(B) 2
1
4
3
(C) 4
1
2
3
(D) 4
2
1
3

5.

Match the items in List I with items

in List II :
List I
List II
a. Residual
1. Nut. K.
Claimant
Wicksel
Theory
b. Loanable Funds 2. BergsonTheory
Samuelson
c. Compensation
3. Walker
Criteria
d. Social Welfare 4. KaldorFunction
Hicks
Codes :
a
b
c
d
(A) 3
1
4
2
(B) 3
2
1
4
(C) 2
1
3
4
(D) 2
3
4
1

(A) Px = MC and MC is rising

x

(B)

MPa MPb
Pa = Pb

(C)

MPa MPb
1
=
=
Pa
Pb
MC

(D)

MPa MPb
1
1
Pa = Pb = MC = Px
x

2.

Shadow price refers to

(A) change in the value of the
constraint per unit change in
the objective function.
(B)

change in the value of objective

function per unit change in any
one of the constraints.

(C)

the change in the value of the

primal solution per unit change
in the dual solution.

(D) all the above.

3.

In an economy of two individuals (A

& B) and two commodities (X and
Y) general equilibrium of exchange
is reached when
(A) MRTSXY = MRTSYX
(B)

MRSXY = PX / PY

(C)

(MRSXY)A = (MRSXY)B

(D) MRSXY = PY / PX
Paper-III

S-01-13


III
: (75) - (2)
1.

(A) Px = MC MC
x

4.

(B)

MPa MPb
Pa = Pb

(C)

MPa MPb
1
=
=
Pa
Pb
MC

(D)

MPa MPb
1
1
Pa = Pb = MC = Px
x

2.

3.

(A)


(B)


(C)


(D)

(A)
(B)
(C)
(D)
5.

(A B)
(X Y)

(A) MRTSXY = MRTSYX
(B)

MRSXY = PX / PY

(C)

(MRSXY)A = (MRSXY)B

a
2
2
4
4

b
4
1
1
2

c
1
4
2
1

d
3
3
3
3

I II
II
I
a.
1. .

b.
2.

c. 3.
d.
4. -

:
(A)
(B)
(C)
(D)

(D) MRSXY = PY / PX
S-01-13

I II

I
II
a. 1.

(Indifference)

b. 2.




c. 3.

d.
4.


:

a
3
3
2
2

b
1
2
1
3

c
4
1
3
4

d
2
4
4
1
Paper-III

6.

7.

8.

Assertion (A) : An Iso Cost Line is a

straight line.
Reason (R) : The market rate of
exchange between the two
inputs is constant.
Codes :
(A) Both (A) and (R) are true and
(R) is correct explanation of (A).
(B) Both (A) and (R) are true, but
(R) is not correct explanation
of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.

9.

In the long run, the autonomous

consumption will
(A) be infinity
(B)

remains unchanged

(C)

decline but will remain positive

(D) be zero

10.

Which of the following statements is

not true in case of the balanced
budget multiplier ?

Assertion (A) : The rate of fall of

MR Curve is more than twice
the rate of fall of AR.
Reason (R) : The MR & AR Curves
are linear and negatively
sloped.
Codes :
(A) Both (A) and (R) are true and
(R) is correct explanation of (A).
(B) Both (A) and (R) are true, but
(R) is not a correct explanation
of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.

(A) The first round contractionary

effect of additional tax revenue
(b, T; b = MPC) is less than
the explanatory effect of
additional
Government
expenditure (= G).

Which of the following is true with

regard to peak-load pricing ?
(a) It is applicable only for
electrical public utilities.
(b) It leads to substitution in
consumption from the period of
peak demand to the period of
low demand.
(c) It leads to reduction in
consumer welfare.
(d) It leads to higher consumer
welfare during peak periods
when demand and marginal
costs are low.
Codes :
(A) (a) & (b) only.
(B) (a) & (c) only.
(C) (b) and (d) only.
(D) (b) & (c) only.

(D) None of the above

Paper-III

11.

(B)

The value of tax multiplier for

b
proportional taxes is 1 b + bt
(where b = MPC and t = tax rate).

(C)

The value of balanced budget

multiplier is unity when taxes
are lump sum taxes.

For a small economy in a flexible

exchange rate system that begins in
the long-run equilibrium point, a
higher rate of inflation in the shortrun will be followed by
(A) An increase in the exchange
rate and decline in net exports.
(B)

Decrease in the exchange rate

and an increase in net exports.

(C)

Contractionary
monetary
policy and real exchange rate
appreciation.

(D) Explanatory monetary policy and

real exchange rate depreciation.
4

S-01-13

6.

7.

8.

(A) :

(R) :

:
(A) (A) (R) (A)
(R)
(B) (A) (R) , (A)
(R)
(C) (A) , (R)
(D) (A) , (R)

9.

10.

(A) : ..
..

(R) : .. ..

:
(A) (A) (R) (A)
(R)
(B) (A) (R) , (A)
(R)
(C) (A) , (R)
(D) (A) , (R)

(A)

(B)

(C)

(D)

?
(A)

(b, T; b = MPC)
(= G)

(B)

-
b

1 b + bt ( b = MPC
t = )

?
(a)

(b)


(c)
(d)


:
(A) (a) (b)
(B) (a) (c)
(C) (b) (d)
(D) (b) (c)

S-01-13

11.

(C)

(D)

,

(A)

(B)

(C)

(D)

Paper-III

12.

Speculative demand for money is

zero when market rate of interest is
(A) more than the critical rate.
(B) more than the market rate of
interest but less than the critical
rate (i.e. capital gains occur).
(C) less than the market rate of
interest.
(D) lowest (i.e. in liquidity trap).

13.

A positively sloped aggregate supply

curve indicates that
(A) an increase in aggregate demand
will be associated with an
increase in the price level and no
change in equilibrium output.
(B) an increase in aggregate
demand will be associated with
an increase in both the price
level and equilibrium output.
(C) an increase in aggregate demand
will be associated with an
increase in equilibrium output
and no change in the price level.
(D) none of the above.

14.

The capacity creating aspect of

investment in growth theory was
emphasised by
(A) R.F. Harrod
(B) E.D. Domar
(C) R.M. Solow
(D) P.A. Samuelson

Which of the following is not an

interpretation of the golden rule of
accumulation ?
(A) Invest your profits, consume
your wages.
(B) The share of profit in output is
equal to the ratio of investment
to output.
(C) Saving ratio should be equal to
the elasticity of output with
respect to capital.
(D) None of the above.
Paper-III

16.

The rational expectations hypothesis

does not imply :
(A) People do not make systematic
errors.
(B) On average the economy will
be close to Long-run Average
Supply (LAS) Curve.
(C) Policy makers have better
information about the economy
than other economic actors.
(D) Macroeconomic policy changes
must came as a surprise in
order to have an impact on the
real economy.

17.

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.
Codes :
(A) II and IV
(B) III and IV
(C) I, II and III
(D) I, II, III and IV

18.

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 foodgrains

19.

In India, Five Year Plan

formulated by
(A) C.S.O.
(B) Planning Commission
(C) Finance Commission
(D) Planning Ministry

15.

is

S-01-13

12.

(A)
(B)
( )

(C)
(D) ( )

13.

(A)


(B)


(C)


(D)

14.

15.

?
(A) ..
(B) ..
(C) ..
(D) ..

?
(A) ,

(B)

(C)

(D)

S-01-13

16.

:
(A)
(B)
(LAS)

(C)


(D) -

-

17.

?
I.


II.

III.

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

18.

..

(A)
(B)
(C)
(D)

19.

(A) ...
(B)
(C) -
(D)
Paper-III

20.

In which year, the Wildlife Board in

India was established ?
(A) 1952
(B) 1968
(C) 1986
(D) 1992

21.

Indian planning mechanism was

criticised by
(A) A.K. Sen
(B) Jagdish Bhagwati
(C) L.K. Jha
(D) Bimal Jalan

25.

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.
Codes :

22.

23.

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
List I
i. 1st Five
Year Plan
ii. 2nd Five
Year Plan
iii. 5th Five
Year Plan

(A) Both (A) and (R) are true and

(R) is the correct explanation of
(A).

26.
b. Heavy
industries
c. Anti-poverty
Programmes
d. Luxury items

(C)

(A) is true and (R) is false.

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
Technology Upgradation

(d)

Abolition of Intermediaries and

Green Revolution

and

Codes :

Which State in India has the lowest

Infant Mortality Rate ?
(A) Maharashtra
(B) Goa
(C) Gujarat
(D) Kerala

Paper-III

Both (A) and (R) are true, but

(R) is not the correct
explanation of (A).

(D) (A) is false and (R) is true.

List II
a. Agriculture

Codes :
(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
24.

(B)

(A) (a) and (c)

(B)

(a) and (d)

(C)

(a) and (b)

(D) (a), (b), (c) and (d)

8

S-01-13

20.

21.

22.

?
(A) 1952
(B) 1968
(C) 1986
(D) 1992

25.

(R) :
18%
,
,

?
(A) ..
(B)
(C) ..
(D)

:
(A) (A) (R)
(R)

(A)
(B)

(C)
(D)

23.
i.
ii.
iii.

a.

II

b.

c.

d.

26.

:
(A)
(B)
(C)
(D)

(A) :

i a, ii b, iii c
i d, ii b, iii c
i d, ii c, iii a
i c, ii a, iii b

(A)

(B)

(A) (R) , (A)

(R)

(C)

(A)

, (R)

(D) (A)

, (R)

?
(a)

(b)

(c)

(d)

:
24.

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

S-01-13

(A) (a)

(c)

(B)

(a)

(d)

(C)

(a)

(b)

(D) (a), (b), (c)

9

(d)
Paper-III

27.

28.

29.

Assertion (A) : In India, Green

Revolution was also criticised
as Wheat Revolution.
Reason (R) : The productivity of
wheat in India during the
1970s was one of the highest
in the world.
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.
Assertion (A) : Agricultural income
is taxed by the Union
Government.
Reason (R) : Agriculture is a State
subject.
Codes :
(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.
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
Codes :
a
b
c
d
(A) 4
1
2
3
(B) 4
2
1
3
(C) 2
1
3
4
(D) 2
4
3
1

Paper-III

30.

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

31.

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

32.

Members of the World Trade

Organization are required to
(A) eliminate all tariffs.
(B) allocate quotas on a first come
first basis.
(C) prevent their firms from
dumping.
(D) enforce patent rights for patent
holders from other countries.

33.

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--vis
other
currencies.
(C)

Single currency or the pegged

currencies fluctuate jointly vis-vis other currencies.
(D) Optimal geographical area for a
single currency.
10

S-01-13

27.

28.

29.

(A) :


(R) : 1970


:
(A) (A) (R) (A)
(R)
(B) (A) (R) , (A)
(R)
(C) (A) , (R)
(D) (A) , (R)
(A) :

(R) :

:
(A) (A) (R) (A)
(R)
(B) (A) (R) , (A)
(R)
(C) (A) , (R)
(D) (A) , (R)
I

I
a.
1.
b.
2.
c.
3.
d.
4.
:

(A)
(B)
(C)
(D)
S-01-13

a
4
4
2
2

b
1
2
1
4

c
2
1
3
3

II

II

d
3
3
4
1
11

30.

(A)
(B)
(C)
(D)

31.

(A)

(B)
(C)
(D)

32.

(A)
(B) ,

(C)
(D)

33.

?
(A)


(B)
-
(C)


(D)

Paper-III

34.

Which of the following issues did the

Uruguay Round not address ?
(A) Migration
(B) Intellectual Property Rights
(C) Services
(D) Tariff

35.

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.

36.

List I
a. Free trade
area

1.

b. Customs
union

2.

c. Common
market

3.

d. Economic
union

4.

Codes :
a
(A) 2
(B) 3
(C) 2
(D) 1
Paper-III

b
1
2
3
3

c
3
4
1
4

List II
No
restrictions on
trade
and
factor
movement
Trade is free
and
no
Customs
Duties
No Customs
Duties
but
duties on nonmembers
Advanced
stage of
integration
d
4
1
4
2
12

37.

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

38.

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.

39.

Match the items given in List I with

those in List II :
List I
List II
I. Third Finance 1. J.M. Shelat
Commission
II. Sixth Finance 2. A.K. Chanda
Commission
III. Seventh
3. K.C. Pant
Finance
Commission
IV. Tenth Finance 4. K. Brahmananda
Commission
Reddy
Codes :
I
II
III IV
(A) 4
1
3
2
(B) 3
4
1
2
(C) 2
3
4
1
(D) 2
4
1
3
S-01-13

34.

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

35.

1973
(A)

(B)

(C)

(D) -

36.

I
a.

b.

c.

d.

1.

2.
3.

4.

II





,
-

(A) ..

(B) ..

(C)

(D)

38.

II
?
(A)

(B)
(C)
,
(D)

39.

I

I
I.
1.
II.
2.
III. 3.
IV.
4.

II

II
..
..
..
.

:
a

(A)

(B)

(C)

(D)

S-01-13

37.

II

III

IV

(A)

(B)

(C)

(D)

13

Paper-III

40.

41.

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
Codes :
(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.

44.

(A) 9.0 percent

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

45.

15.0 percent

(C)

18.0 percent

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 20-25

percent of developed land in all
housing projects for the
economically weaker sections
and low income groups
category.

(D) Implementation of a sevenpoint charter for provisioning

of seven basic entitlements/
services.

Match different deficit indicators given

in List I with the value in List II for
the Union Budget 2013-14 :
List I
List II
i. Revenue deficit
a. 1.5
ii. Effective revenue
b. 1.8
deficit
iii. Fiscal deficit
c. 3.3
iv. Primary deficit
d. 4.8
Codes :
i
ii
iii
iv
(A) a
c
b
d
(B) b
c
d
a
(C) c
b
d
c
(D) a
d
c
b

Paper-III

(B)

(D) 23.0 percent

42. 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
43.

As per the revised estimate, the plan

expenditure of the budget estimate
for 2012-13 in India has been
lowered by

46.

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

14

S-01-13

40.

41.

?
I.

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


I.

( )
II.

III. ...... (MODVAT)

IV.

:
(A) III, II, IV, I
(C) III, IV, I, II

42.

43.

44.

45.

(B) III, I, IV, II

(D) II, III, IV, I

1953
1985 ?
(A)
(B) -
(C) -
(D)
I
II 2013-14

I
II
i.
a. 1.5
ii.
b. 1.8
c. 3.3
iii.
iv.
d. 4.8
:

(A)
(B)
(C)
(D)
S-01-13

i
a
b
c
a

ii
c
c
b
d

iii
b
d
d
c

46.

iv
d
a
c
b
15

2012-13
?
(A)

9.0

(B)

15.0

(C)

18.0

(D)

23.0

(JNNURM)

(A)

(B)

(C)

/


20-25

(D)

,
/

?
(A)

2004-05

(B)

2007-08

(C)

2009-10

(D)

2011-12
Paper-III

47.

48.

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
Codes :
i
ii
iii
iv
(A) b
a
c
d
(B) a
c
d
b
(C) b
d
a
b
(D) d
b
c
a
What has been the monthly per capita
expenditure (Uniform Reference
Period) for urban population of India
(at 2004-05 prices) as per the 68th
Round of NSSO (2011-12) ?
(A) ` 707.24
(B) ` 1,359.75
(C) ` 1,785.81
(D) ` 2,401.68

49.

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)

50.

What is the formula for tax

devolution used by the Thirteenth
Finance Commission of India ?

Formula Population
(%)
(1971)

Area
(%)

Fiscal
capacity
distance
(%)

Fiscal
Discipline

(A)
25.0
(B)
10.0
(C)
25.0
(D)
17.5
Paper-III

17.5
25.0
10.0
10.0

10.0
47.5
47.5
25.0

47.5
17.5
17.5
47.5

51.

For a firm in long-run equilibrium

producing an allocatively 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 cover
costs.
(D) This situation also satisfies the
consumers.

52.

What will be the value of HerfindahlHirschmann Index of market

concentration for the following
industry ?

Share of
firms
Industry

(A)
(B)
(C)
(D)
53.

16

Firm
1
30

Firm
2
25

Firm
3
15

Firm
4
15

Firm
5
10

Firm
6
5

55
35
2100
None of the above

Make out a correct combination from

the following sets I & II in the
context of the industrial economics :
Set I
Set II
i. SCP
a. James
Approach
Buchanan
ii. Transaction
b. Neoclassical
Cost Theory
Theory
iii. Public Choice c. HerfindahlTheory
Hirschmann
Index
iv. Industrial
d. Williamson
Concentration
Codes :
i
ii
iii
iv
(A) b
d
a
c
(B) c
d
b
c
(C) a
c
d
b
(D) d
b
a
c
S-01-13

47.

I
II
(2004-05 )


I
II
i.
a. 5.5
b. 6.7
ii.
iii.
c. 7.5
iv.
d. 7.8
:
(A)
(B)
(C)
(D)

48.

49.

i
b
a
b
d

ii
a
c
d
b

iii
c
d
a
c

51.

iv
d
b
b
a

-
?

1
2
3
4
5
6

30 25 15 15 10 5

52.

(2004-05
)
( ) 68 ....
(2011-12) ?
(A) ` 707.24
(B) ` 1359.75
(C) ` 1785.81
(D) ` 2401.68

(A) 55
(B) 35
(C) 2100
(D)

?
(A)
(ILCS)
(B)
(C)
(D) (TSC)

53.

?

(%) (%)
(%)
(1971)

50.

(A)
(B)
(C)
(D)
S-01-13

25.0
10.0
25.0
17.5

17.5
25.0
10.0
10.0

10.0
47.5
47.5
25.0

, ,
?
(A)

(B)
(C)

(D)

I II


II
I
i. ...
a.
ii.
b.

iii. c.

iv. d.
:
(A)
(B)
(C)
(D)

47.5
17.5
17.5
47.5
17

i
b
c
a
d

ii
d
d
c
b

iii
a
b
d
a

iv
c
c
b
c
Paper-III

54.

Backward-bending supply curve of

labour suggests that

58.

The components of the organized

sector of the money market
I.
Bill market
II. Stock market
III. Gift-edged market
IV. Bank loan market
Codes :
(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.

59.

Assertion (A) : The prices of

Government securities in giftedged market are not formed
freely.
Reason (R) : The Reserve Bank of
India has a monopoly dealer
position and the demand for
Government securities has a
captive nature.
Codes :
(A) (A) is true, but (R) is false.
(B) Both (A) and (R) are correct,
but (R) is not the correct
explanation of (A).
(C) (A) is not correct, but (R) is
correct.
(D) Both (A) and (R) are correct
and (R) is the correct
explanation of (A).

60.

Find out the correct answer from the

codes given below :
Credit Rating Agencies in India
I.
CRISIL
II. ICRA
III. TDICI
IV. CARE
Codes :
(A) I and II are correct.
(B) I, II and III are correct.
(C) I and IV are correct.
(D) I, II and IV are correct.

(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.
55.

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

56.

The M1 definition of money is

(A) Currency outside banks and
checking deposits
(B)

Currency
outside
checking
deposits
travellers checks

(C)

Currency outstanding
checking deposits

banks,
and
and

(D) Currency outstanding, checking

deposits and money market
deposit accounts
57.

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

Paper-III

18

S-01-13

54.

(A)

(B)

(C)

(D) ,

55.

?
(A) ..
(B) .
(C) .
(D) .

56.

M1
(A)
(B)
(C)
(D)

57.

,


,

(A)
(B)
(C) ...
(D) ...

S-01-13

19

58.

I.

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

59.

(A) :


(R) :



:
(A) (A) , (R)
(B) (A) (R) , (R),
(A)
(C) (A) , (R)
(D) (A) (R) (R),
(A)

60.

:
I.
(CRISIL)
II. (ICRA)
III. (TDICI)
IV. (CARE)
:
(A) I II
(B) I, II III
(C) I IV
(D) I, II IV
Paper-III

61.

Regression coefficient is independent

of change in
(A) origin but not of scale
(B) both origin and scale
(C) scale but not of origin
(D) none of these

62.

In a multiple regression with two

independent variables and 12
observations F value calculated is to
be tested. What will be degrees of
freedom
for
numerator
and
denominator in testing procedure ?
(A) 1 and 12
(B) 2 and 11
(C) 2 and 10
(D) 1 and 10

63.

For a viable input-output system

which conditions are postulated ?
(A) Hawkins-Simon conditions
(B) Kuhn-Tucker conditions
(C) Bhagwati-Eckaus conditions
(D) Von Neumann conditions

64.

Given that
function is
P = [L
List I

a.

b.
c.
d.
Codes :
a
(A) ii
(B) iii
(C) iv
(D) i
Paper-III

C.E.S.

production

+ (1 )K ]
List II
i. Distribution
parameter
ii. Substitution
parameter
iii. Returns to
parameter
iv. Efficiency
parameter

65.

Linear Programming Technique was

developed for the first time by
(A) Koopmans
(B) Dantzig
(C) Leontief
(D) Mahalanobis

66.

Given Harrods Growth Model as

under :
S(t) = Y(t)
I(t) = [Y(t) Y(t 1)]
S(t) = I(t)
, > 0.
In this model sustained growth is
indicated by satisfying the condition

(A)
>0

(B)
<0

(C)
>1

(D)
<1

67.

Cobb-Douglas production function

Q = AL K1 does not possess the
characteristics of
(A) Constant Returns to Scale
(B) Unit Elasticity of Substitution
(C) Variable
Elasticity
of
Substitution
(D) Linear homogeneity

68.

Estimate of Total Fertility Rate

(TFR) from the given Age-Specific
Fertility Rates (ASFR) :
Age Group
ASFR
15 19
19.6
20 24
147.3
25 29
132.9
30 34
56.2
35 39
18.1
40 44
3.8
45 49
1.0
(A) 1.56
(B) 1.86
(C) 2.39
(D) 2.62

b
iii
iv
i
ii

c
i
ii
ii
iii

scale

d
iv
i
iii
iv
20

S-01-13

61.

62.

63.

64.

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

65.

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

66.

S(t) = Y(t)
I(t) = [Y(t) Y(t 1)]
S(t) = I(t)
, > 0

12
F

?
(A) 1 12
(B) 2 11
(C) 2 10
(D) 1 10

,
,
(A)
(B)

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

(C)
(D)

i.

b.

iii.
iv.

c.
d.

15 19
20 24
25 29
30 34
35 39
40 44
45 49
(A) 1.56
(C) 2.39

:
a

(A) ii

iii

iv

(B) iii

iv

ii

(C) iv

ii

iii

(D)

ii

iii

iv

S-01-13

21

<1

- (ASFR)

-
....

II

ii.

>1

68.

<0

- Q = AL K1
?
(A)
(B)
(C)
(D)

P = [L + (1 )K]

a.

>0

67.

CES :

19.6
147.3
132.9
56.2
18.1
3.8
1.0
(B) 1.86
(D) 2.62
Paper-III

69.

70.

71.

Which of the following is not correct

about a population pyramid ?
(A) On the right side of the
pyramid womens age structure
is shown.
(B) It shows age and sex
distribution of a population.
(C) An expansive pyramid is
narrow at the base but it
expands as it moves up towards
higher ages.
(D) Population pyramids can be
used to find the economic
dependents supported in a
particular population.
The situation of people in villages
and towns of strong emigration
receiving high amount of remittances
has been described as private
affluence and public squalor by
(A) M. Todaro
(B) John K. Galbraith
(C) Arthur Lewis
(D) Gunar Myrdal

72.

Suppose that observations are

available on the monthly bond prices
of 100 companies for five years.
What type of data are these ?
(A) Cross Sectional
(B) Time Series
(C) Panel
(D) Qualitative

73.

What is the meaning of the term

heteroscedasticity ?
(A) The variance of errors is not
constant.
(B) The variance of dependent
variable is not constant.
(C) The errors are not linearly
independent of one another.
(D) The errors have non-zero mean.

74.

Which of the following estimation

techniques are available for the
estimation of over-identified systems
of simultaneous equations ?
(i) OLS
(ii) ILS
(iii) 2SLS
(iv) IV
Codes :
(A) (iii) only
(B) (iii) and (iv) only
(C) (ii), (iii) and (iv) only
(D) (i), (ii), (iii) and (iv)

75.

The order condition is

(A) a necessary and sufficient
condition for identification.
(B) a necessary but not sufficient
condition for identification.
(C) a sufficient but not necessary
condition for identification.
(D) a condition that is neither
necessary nor sufficient for
identification.

Which of the following models can

be estimated using OLS following
suitable transformation, if necessary ?
Here e denotes the exponential.
(i)

yt = + t + ut

(ii)

yt = + ext + ut

(iii) yt = +

2
xt

+ ut

(iv) ln (yt) = + ln(xt) + ut

Codes :
(A) (i) only
(B) (i) and (iii) only
(C) (i), (iii) and (iv) only
(D) (i), (ii), (iii) and (iv)
Paper-III

22

S-01-13

69.

70.

71.

?
(A)

(B)

(C)


(D)



,
,
,

?
(A) .
(B) .
(C)
(D)

72.

100


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

73.

(Heteroscedasticity)
?
(A)
(B)
(C)

(D)

74.

?
(i) ... (OLS)
(ii) ... (ILS)
(iii) 2 SLS
(iv) IV
:
(A) (iii)
(B) (iii) (iv)
(C) (ii), (iii) (iv)
(D) (i), (ii), (iii) (iv)

75.

:
(A)

(B)

(C)

(D)

...
, ,
? e

(i)

yt = + t + ut

(ii)

yt = + ext + ut

(iii) yt = +

2
xt

+ ut

(iv) ln (yt) = + ln(xt) + ut

:
(A) (i)
(B) (i) (iii)
(C) (i), (iii) (iv)
(D) (i), (ii), (iii) (iv)
S-01-13

23

Paper-III

Space For Rough Work

Paper-III

24

S-01-13