1. When the Engel curve is negatively sloped, the commodity is a/an:
A) Normal good B) Luxury good
C) Inferior good D) Necessity
2. Identify the correct statement related to the new approach to consumer theory:
a. The new approach to consumer theory was pioneered by Lancaster
b. A consumer demands a good because of the characteristics of the good
c. The new approach is superior to traditional consumer theory because substitute
goods are explained in terms of possessing some common characteristic

A) a and b only B) a and c only C) b and c only D) a, b and c
3. Identify the correct statements related to Arrow’s Impossibility Theorem:
a. It is a social-choice paradox illustrating the flaws of ranked voting systems
b. It is widely used for analyzing problems in welfare economics
c. It is also known as the general impossibility theorem

A) a and b only B) a and c only
C) b and c only D) a, b and c
4. Cobb-Douglas production function satisfies ——- theorem.
A) Euler’s B) Hawk’s C) Coase D) Arrow’s
5. The slope of an isoquant is called:
A) MRS B) MRTS
C) Price ratio D) Elasticity of substitution
6. Match the following
List I List II
a. Veblen effect 1. The desire to possess a unique commodity having a
prestige value
b. Bandwagon effect 2. Abnormal market behavior where consumers
purchase the higher-priced goods whereas similar
low-priced substitutes are available.
c. Snob effect 3. The behavior of individuals caused by observation
of the actions of others and their consequences
d. Demonstration effect 4. The desire or demand for a good by a person who
wants to be in style because possession of a good is
in fashion and therefore many others have it.

A) a – 3, b – 4, c- 1, d- 2 B) a – 4, b – 1, c- 2, d- 3
C) a – 2, b – 4, c- 1, d- 3 D) a – 2, b – 3, c- 4, d- 1

7. Assertion (A) : Cournot’s duopoly model leads to a stable equilibrium
   Reason (R) : The behavioral pattern of the firm is naive. A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
   B) Both (A) and (R) are correct but (R) is not the correct explanation of (A).
   C) (A) is correct, but (R) is incorrect.
   D) (A) is incorrect, but (R) is correct.
8. The scale of plant whose SAC curve forms the minimum point of the LAC curve is
   called:
   A) Shut down point B) Optimum scale of plant
   C) X-efficiency D) Break-even point
9. Assumptions of Baumol’s Dynamic Model include:
   A) The firm attempts to maximize the rate of growth of sales over its lifetime
   B) Profit is the main means of financing growth of sales
   C) Demand and costs curves have the traditional shape
   D) All the above
10. Identify the correct statement related MRTPLK :
    A) It refers to the amount of L that the firm can give up by increasing the amount
    of K used by one unit
    B) It is equal to MPL / MPK
    C) As the firm moves down an isoquant, the MRTPLK increases
    D) All the above
11. Modigliani’s model of limit pricing assumes that:
    A) Entry occurs with the minimum optimal plant size
    B) Technology is the same for all firms in the industry
    C) The price is set by the largest firm in the industry at such a level as to prevent
    entry
    D) All the above
12. In Bain’s theory, the premium accruing to the established firms in an industry from
    charging a price higher than the pure competitive price without attracting entry is:
    A) Limit price B) Monopoly price
    C) Mark up D) Condition of entry
13. Unemployment due to deficiency of effective demand is called—– unemployment.
    A) Frictional B) Structural C) Cyclical D) Disguised
14. Short run Philips curve is:
    A) Vertical as there is no trade off between inflation and unemployment
    B) Horizontal as unemployment rate stays more or less steady regardless of
    inflation rate
    C) Roughly L-shaped to reflect the initial inverse relationship between inflation
    and unemployment
    D) None of the above

15. The relationship between unemployment and real GDP is explained by:
    A) Sacrifice ratio B) Okun’s Law
    C) Philips curve D) Quantity theory
    16 The inventory approach to demand for money is associated with:
    A) Keynes B) Friedman C) Baumol D) Tobin
16. In the Mundell- Fleming model, devaluation shifts LM curve:
    A) To the right, expands net exports and raises aggregate income
    B) To the right, reduces net exports and lowers aggregate income
    C) To the left, reduces net exports and lowers aggregate income
    D) Unchanged
17. According to Radcliffe Committee, it is ………….that influences total effective demand
    for goods and services rather than the supply of money:
    A) Liquidity B) Market prices
    C) Saving rate D) Bank rate
18. The rate at which the Reserve Bank of India borrows funds from the commercial banks
    in the country is known as:
    A) Cash Reserve Ratio B) Statutory Liquidity Ratio
    C) Repo Rate D) Reverse Repo Rate
19. The user cost of capital depends on:
    A) Real rate of interest, rate of depreciation and corporate income tax
    B) Real rate of interest, stock of money supply and MEC
    C) Rate of depreciation, velocity of circulation and CRR
    D) Corporate income tax, rate of saving and annual growth of GDP
20. Most important features of new Keynesian economics include:
    a. Sticky nominal wages b. Sticky nominal prices
    c. Sticky real wages d. Coordination failures A) a, b and c only B) a b and d only
    C) b, c and d only D) a, b, c and d
21. Identify the wrong conclusion about IS LM model:
    A) Expansionary fiscal policy shifts the IS curve to the right
    B) Fiscal policy has no direct effect on the LM curve
    C) Monetary policy has no effect on the IS curve
    D) The LM curve deals with flows, not stocks
22. The business sector’s desired stock of capital (k*) depends on:
    A) Expected output and user cost of capital
    B) MPC and user cost of capital
    C) User cost of capital and nominal wage rate
    D) MPC, expected output and user cost of capital

24. Lump-sum tax multiplier is represented by:
    A) k / h B) 1 / Ke b C) 1 /1 – c D) – c / 1- c
25. According to Keynes, the quantity theory of money is a truism because the theory states
    that:
    A) The supply of money is assumed as an exogenously determined constant
    B) Total quantity of money paid for goods and services must equal their value
    C) Velocity of circulation of legal tender money is constant
    D) Price is a passive factor in the equation of exchange
26. Choose the incorrect statement related to the shape of LM curve:
    A) It is flatter if the interest elasticity of the demand for money is high
    B) It is steep if the interest elasticity of the demand for money is high
    C) It shifts to the right when the stock of money supply is increased
    D) It shifts to the left if there is an increase in money demand function
    which raises the quantity of money demanded at the given interest rate and
    income level
27. According to the Permanent Income Hypothesis:
    A) Consumption expenditure is proportional to permanent income
    B) Observed values of aggregate income has two components such as permanent
    income and transitory income
    C) In the long run observed level of income is equal to permanent income
    D) All the above
28. The algebraic sum of the deviations of 12 observations measured from 14 is 24. Thus the
    mean is::
    A) 14 B) 16 C) 12 D) 22
29. Probability that X solves the problem is 0.4, probability that Y solves is 0.7. What is the
    probability that the problem is solved by at least one of them?
    A) 0.28 B) 0.90 C) 0.72 D) 0.55
30. Which of the following measures is least affected by extreme items:
    A) Range B) Standard deviation
    C) Mean deviation D) Quantile deviation
31. The measure of Kurtosis for a normal distribution is:
    A) 3 B) 1 C) 0 D) ∞
32. The Durbin Watson test is used to detect:
    A) Heteroscedasticity B) Autocorrelation
    C) Simultaneous Equation bias D) Multicollinearity
33. Mean, median and mode are equal in:
    A) Symmetrical distribution B) Positively skewed distribution
    C) Poisson distribution D) Negatively skewed distribution

34. Probability sampling does not include —– sampling.
    A) Cluster B) Quota C) Systematic D) Stratified
35. A—— is a type of inferential statistic used to determine if there is a significant
    difference between the means of two groups, which may be related in certain features
    A) t test B) F test
    C) Chi square test D) None of these
36. Arrange the following top 4 export destinations of India in the descending order of
    their percentage share (based on April-November, 2020 figures): China 2. Hong Kong 3. UAE 4. USA
    A) 4, 1, 3, 2 B) 1, 4, 3, 2 C) 4, 1, 2, 3 D) 3, 2, 4, 1
37. NITI Aayog’s activities can be divided into following main heads except:
    A) Design policy and programme framework
    B) Amendment and implementation of horizontal devolution criteria
    C) Foster cooperative federalism
    D) Think tank and knowledge and innovation hub
38. Match the following:
    List I List II Pradhan Mantri Fasal Bima Yojana – Provide a comprehensive risk solution at the Lowest uniform premium across the country for farmers. 2. Pradhan Mantri Kisan Samman Nidhi – Provide income support to all landholder farmer families across the country 3.Pradhan Mantri Kisan Maandhan Yojana – Provide high variety seeds for the small and marginal farmers of IndiaParamparagat 4.Krishi Vikas Yojana – Promote organic cultivation in India A) 1, 2 and 3 are correctly matched
    B) 1 3 and 4 are correctly matched
    C) 1, 2 and 4 are correctly matched
    D) 1, 2,3 and 4 are correctly matched
39. PMGKP insurance scheme was announced on 30th March 2020 for:
    A) Health workers fighting Covid-19
    B) Small and marginal farmers in North East region
    C) People working in the unorganized sector
    D) Self employed and old age people for their crop loss
40. ——–is a National Mission to improve learning outcomes at the elementary level
    through an Integrated Teacher Training Programme:
    A) DIKSHA B) NISHTHA
    C) MOOCs D) Padhna Likhna Abhiyan

41. Match the horizontal devolution criteria and weights of the Fifteenth Finance
    Commission:
    a. Population 1. 2.5 %
    b. Forest and ecology 2. 12. 5%
    c. Tax and fiscal efforts 3. 15 %
    d. Demographic performance 4. 10 %
    A) a – 3, b -4, c- 1, d- 2 B) a – 4, b -3, c- 2, d- 1
    C) a – 2, b -3, c- 1, d- 4 D) a – 3, b -4, c- 2, d- 1
42. The fiscal deficit and revenue deficits in Kerala are ———and ——–respectively as
    per 2020-21 BE:
    A) 2.99 % and 1.55 % B) 3.0% and 2.01%
    C) 2.5 % and 0.97% D) 1.55% and 2.23%
43. Arrange the following in the ascending order of their contribution to States Own Tax
    Revenue of Kerala during 2019-20: 1.Land revenue 2. Motor vehicle tax 3.Stamps and registration fees 4. State excise duties A) 1, 2, 4, 3 B) 4, 3, 2, 1 C) 1, 4, 3, 2 D) 4, 2, 1, 3
44. Match the rates announced by RBI on 7th April 2021:
    List I List II
    a. CRR 1. 4.25 %
    b. Bank Rate 2. 3.25%
    c. Repo Rate 3. 3.0%
    d. Reverse Repo Rate 4. 4.0% A) a – 3, b – 1, c –4, d – 2 B) a – 4, b – 3, c–2, d – 1
    C) a – 3, b – 4, c –1, d – 2 D) a – 2, b – 1, c –4, d – 3
45. The following are facts about the Fifteenth Finance Commission except:
    a. The report is entitled, ‘Finance Commission in Covid Times’
    b. Chairman of the Fifteenth Finance Commission is Dr. Y V Reddy
    c. The Fifteenth Finance Commission submitted its Report for the period 2021-22 to
    2025-26 A) a only B) b only C) a and b only D) b and c only
46. Adam Smith’s theory of economic development concludes all the following facts except:
    A) Progressive state is endless
    B) Progressive state ultimately leads to a stationary state
    C) Stationary state is dull and happens in a free market economy
    D) It is the scarcity of natural resources that finally stops growth

47. Solow model shows that ——– can bring equality between warranted growth rate and
    natural growth rate:
    A) Increasing saving ratio
    B) Flexible prices and wages
    C) Substitutability between capital and labour
    D) Increasing availability of capital stock
48. The rupee-denominated bonds issued by Indian entities in the overseas market to raise
    funds are known as:
    A) Sovereign gold bonds B) Options
    C) Masala bonds D) Preference shares
    
49. Identify the correctly matched stage of demographic transition given by C P Blacker:
    a. Stage I – Early expanding stage
    b. Stage II – Late expanding stage
    c. Stage III – High stationary stage
    d. Stage IV – Low stationary stage
    e. Stage V – Declining stage A) a and e only B) d and e only
    C) a, c and e only D) c, d and e only
50. Which among the following indicators are common for measuring PQLI and HDI?
    A) Standard of living and infant mortality rate
    B) Per capita income and life expectancy
    C) Infant mortality rate and maternal mortality rate
    D) Life expectancy and literacy rate
51. Who termed the difference between the marginal productivity of labour and the
    capitalist wage as capitalist surplus?
    A) Karl Marx B) W. W. Rostow
    C) Arthur Lewis D) Adam Smith
52. Rostow’s take off stage is followed by:
    A) Traditional society B) Pre-condition to take off
    C) Drive to maturity D) Stage of high mass consumption
53. —— is a revealed preference method of economic valuation used in cost–benefit analysis
    to calculate the value of something that cannot be obtained through market prices:
    A) Hedonic pricing method B) Preventive expenditure method
    C) Property value method D) Clawson method
54. Consider the statements related to Solid Waste Management (SWM) Rules, 2016:
    Statement I: It replaced the Municipal Solid Waste (Management and Handling)
    Rules, 2000
    Statement II: It included the informal sector into the waste management process for
    the first time
    A) I only is correct B) II only is correct
    C) I and II are correct D) I and II are incorrect

55. Arrange the following countries in the descending order of their HDI value based on
    UNDP report 2020:
    A) India – Sri Lanka – Bangladesh – Pakistan
    B) Sri Lanka – India – Pakistan – Bangladesh
    C) Sri Lanka – India – Bangladesh – Pakistan
    D) Pakistan – Bangladesh – India – Sri Lanka
56. Identify the correct statements related to Warranted Growth Rate (Gw):
    a. Gw is determined by capital output ratio and capital labour ratio
    b. Gw represents full employment growth rate
    c. Gw represents that rate of growth which will make the entrepreneurs satisfied
    with the actual investment
    A) a and b only B) b and c only C) a and c only D) a, b and c
57. Who among the following drafted Peoples Plan?
    A) M N Roy B) K N Raj
    C) M Visvesvaraya D) Amarthya Sen
58. Choose the correct statements related to Kuznets hypothesis:
    a. Kuznets hypothesis is known as Inverted U shaped hypothesis of income
    distribution
    b. Kuznets considered data from India, Ceylon, Puerto Rica, UK and US
    A) a only B) b only
    C) Both a and b D) Neither a nor b
59. According to Myrdal, the main reason of regional inequalities is the:
    A) Strong backwash effects and the weak spread effects in underdeveloped
    countries
    B) Weak backwash effects and the strong spread effects in underdeveloped
    countries
    C) Weak backwash effects and the weak spread effects in underdeveloped
    countries
    D) Strong backwash effects and the strong spread effects in underdeveloped
    countries
60. The report entitled, “Making Peace With Nature: A Scientific Blueprint to Tackle the
    Climate, Biodiversity and Pollution Emergencies” was released in 2021 by:
    A) UNESCO B) UNEP C) ILO D) NPCB
    61 Which among the following can be included in the capital account of BoP?
    A) Investment incomes
    B) Trade in services
    C) Foreign investment and loans
    D) Net transfer
61. The shiftability theory of bank liquidity was propounded by:
    A) H G Moulton B) H V Prochnow
    C) M Friedman D) J M Keynes

63. ——— postulates that trade will lead to the elimination of or reduction in the pre- trade
    difference in relative and absolute factor prices between nations:
    A) The factor price equalization theorem
    B) The theory of absolute advantage
    C) The theory of comparative advantage
    D) All the above
64. Devaluation:
    A) Raises the domestic price of imports and reduces the foreign price of exports
    of a country devaluating its currency in relation to the currency of another country
    B) Raises the domestic price of exports and reduces the foreign price of imports of a
    country devaluating its currency in relation to the currency of another country
    C) Raises the domestic price of imports and raises the foreign price of exports of a
    country devaluating its currency in relation to the currency of another country
    D) Reduces the domestic price of imports and reduces the foreign price of exports
    of a country devaluating its currency in relation to the currency of another country
65. Haberler’s opportunity cost theory overcomes the limitations of Ricardo’s theory and
    explains the doctrine of comparative cost in terms of:
    A) Substitution curve B) Transformation curve
    C) Production frontier D) All the above
66. Choose the correct statements related to Asian Development Bank (ADB):
    Statement I: ADB was set up in 1966 with its headquarters at Manila
    Statement II: Membership of ADB is open only to members of the ECAFE
    Statement III: ADB provides 3 types of loans such as project loans, sector loans and
    programme loans
    A) I and II only B) I and III only C) II and III only D) I, II and III
67. Adolf Wagner divided public expenditure into two categories such as:
    A) Expenditure for internal security and welfare
    B) Expenditure for internal and external security and expenditure for production
    of the government services
    C) Expenditure for internal and external security and expenditure for culture and
    welfare
    D) Expenditure for maintaining law and order and expenditure for military operations
68. Choose the features of public goods from the following:
    a. Indivisible b. Divisible c. Non-rival d. Exclusion principle A) a and c only B) b and c only
    C) a, c and d only D) b, c and d only
69. If the spot rate is higher that the forward rate, it is called:
    A) Depreciation B) BoP surplus
    C) Forward premium D) Forward discount

70. Trade results from differences in factor endowments in different countries according to:
    A) David Ricardo B) Adam Smith
    C) G Haberler D) Hecksher- Ohlin
71. The purchasing power parity theory of exchange rate was developed by:
    A) Kindleberger B) Haberler
    C) Gustav Cassel D) David Ricardo
72. Match the following:
    List I List II
    a. Wild Life (Protection) Act 1. 1991
    b. Forest (Conservation) Act 2. 1980
    c. Public Liability Insurance Act 3. 2002
    d. Biological Diversity Act 4. 1972 A) a – 4, b – 2, c – 1, d – 3 B) a – 4, b – 3, c – 2, d – 1
    C) a – 3, b – 4, c – 1, d – 2 D) a – 2, b – 3, c – 4, d – 1
73. By imposing a lump sum tax, the government can:
    A) Reduce or eliminate the monopolist’s profits by raising the commodity price
    B) Reduce or eliminate the monopolist’s profits by lowering the quantity of the
    output
    C) Reduce or eliminate the monopolist’s profits by lowering both commodity
    price and output
    D) Reduce or eliminate the monopolist’s profits without affecting either the
    commodity price or output
74. Two goods for which the MRS is infinite; the indifference curves are shaped as right
    angles
    A) Perfect substitutes B)) Prefect complements
    C) Both A and Bb D) None of these
75. Match the following:
    List I List II
    a. Substitution Effect 1. Quantity demanded may move in the same direction as price
    change
    b. Income Effect 2. Increase in the price of one good leads to a decrease in the
    quantity demanded of the other
    c. Giffen Good 3. Price remains constant while satisfaction changes
    d. Complements 4. Satisfaction remains constant while price changes
    A) a-4, b-3, c- 1, d-2 B) a-4, b-3, c- 2, d-1
    C) a-4, b-2, c- 1, d-3 D) a-3, b-2, c-4, d-1
76. Find the Marginal Revenue function for the demand function Q = 18 – 2P and
    evaluate them at Q = 2 and Q = 5
    A) Q = 2, MR =11; Q = 5, MR =9
    B) Q = 2, MR =7; Q = 5, MR =2
    C) Q = 2, MR =7; Q = 5, MR =4
    D) Q = 2, MR =9; Q = 5, MR = 7

77. Match the following:
    List I List II
    a. Normal Good 1. Two goods for which an increase in the price of one
    leads to an increase in the demand for the other
    b. Inferior Good 2. Two goods for which an increase in the price of one
    leads to a decrease in the demand for the other
    c. Substitutes 3. A good for which, other things equal, an increase in
    income leads to decrease in demand
    d. Complements 4. A good for which, other things equal, an increase in
    income leads to increase in demand A) a-4, b-3, c-1, d-2 B) a-3, b-4, c-1, d-2
    C) a-4, b-3, c-2, d-1 D) a-3, b-1, c-4, d-2

78. Given the production function Y = √KN What will be the production if K=20 and N=45 and another production function where K=40 and N=90, on comparing the results above,the relation of production in two cases exhibits
    A) Increasing Returns to scale B) Decreasing Returns to scale
    C) Constant Returns to scale D) Data inadequate
79. Which of the following statements about monopolistic competition is correct?
    a. In a monopolistic market, firms have some monopoly power
    b. They have some flexibility to set their own prices
    c. The price is set with a mark-up on marginal cost
    d. Firms are demand constrained A) a and b only B) b and c only C) a, b and c only D) a, b, c and d
80. —— arises when products of different qualities are sold at a single price because buyers
    and sellers are not sufficiently informed to determine the true quality at the time of
    purchase
    A) Asymmetric information B) Adverse selection
    C) Moral hazard D) None of these
81. Good whose demand curve slopes upward because the positive income effect is larger
    than negative substitution effect
    A) Inferior good B) Giffen good
    C) Normal good D) None of these
82. Real interest is (approximately) equal to the nominal interest minus inflation
    A) Keynes Equation B) Fisher Equation
    C) Both A and B D) Robin’s Equation

83. Which of the following statements are correct?
    a. Theories of money demand that emphasize the role of money as a store of value
    are called portfolio theories
    b. Portfolio theories predict that the demand for money should depend on the risk and
    return offered by money and by the various assets households can hold instead of
    money
    A) a only B) b only C) Both a and b D) Neither a nor b
84. Quantity theory of money explains
    A) An increase in the real money supply causes a proportional increase in the
    price level, ceteris paribus
    B) An increase in the nominal money supply causes a proportional increase in the
    price level, ceteris paribus
    C) Both A and B
    D) Neither A nor B
85. Suppose in an economy, there is an increase in investment by 250 crores, which led
    to increase in national income by 500crores. Calculate MPC
    A) 0.75 B) 0.5 C) 0.25 D) 0.15
86. The underlying idea behind Ricardian equivalence is that:
    a. There is no difference between taxes and the accumulation of debt
    b. Debt is thought to be the same as future taxes A) a is correct B) b is correct
    C) Both a and b are correct D) Both a and b are incorrect
87. Rejecting true null hypothesis is:
    A) Type I error B) Type II error
    C) Sampling Error D) Non-sampling error
88. Linear relationship among the independent variables in a regression model is termed as:
    A) Multicollinearity B) Homoscedasticity
    C) Autocorrelation D) Heteroscedasticity
89. Gauss Markov theorem states that:
    A) The ordinary least square estimators are unbiased
    B) The ordinary least square estimators are linear
    C) The ordinary least square have minimum variance
    D) All the above
90. Find the second central moment of the set 4, 6, 14, 12, 3, 1, 2
    A) 17 B) 22 C) 21 D) 13

91. Which of the following is true?
    A) The coefficient of determination is negative if the coefficient of the correlation is
    negative
    B) The coefficient of determination is negative if the coefficient of the correlation is
    positive
    C) The coefficient of determination is positive always
    D) The coefficient of determination is the square root of the coefficient of correlation
92. If two variables have the linear relationship X + Y = 150, the correlation will be:
    A) + 1 B) – 1 C) 0.75 D) 0.25
93. For a binomial distribution mean is 3 and variance 2. Then the parameter n will be:
    A) 6 B) 18 C) 9 D) 8
94. Which of the following is a unit free number?
    A) Variance B) Mean deviation
    C) Standard deviation D) Coefficient of variation
95. A square matrix whose square equals that matrix is called —–.
    A) Nilpotent matrix B) Idempotent matrix
    C) Involuntary matrix D) Scalar matrix
96. The average revenue and price elasticity accounted for a firm for its output is given by
    Rs 30 and 2 units respectively. Find the marginal revenue.
    A) 5 B) 10 C) 15 D) 20
97. There is no reasonable relationship between the variables, but the regression results
    exhibits a significant relation. This is the case of—-.
    A) Non linear regression B) Spurious regression
    C) Linear regression D) Curvelinear regression
98. The demand function is y = 85− 4X− X2
    , y is price, x is quantity demanded. Find the
    consumers surplus for y = 64
    A) Rs 36 B) Rs 34 C) Rs 38 D) Rs 32
99. Public Sector Asset Rehabilitation Agency (PARA) has been set up to
    a. Solve the NPA problem of PSBs
    b. It is expected to be a Special Purpose Vehicle (SPV) that will raise money
    c. It can issue government bonds to buy big bad loans of PSUs
    A) a and b only are correct B) b and c only are correct
    C) a, b and c are correct D) a and c only are correct
100. SARFAESI Act has been enacted in the year:
     A) 2001 B) 2000 C) 2002 D) 2005

101. Match the following
     List I List II
     a. NORKA 1. Providing financial assistance to NRKs (returnees)
     b. Santhwana 2. Scheme to address those NRKs jailed abroad
     c. Swapna Saphalyam 3. Department Project for return Emigrants
     A) a-3, b-1, c-2 B) a-2, b-3, c-1 C) a-1, b-2, c-3 D) a-3, b-2, c-1
102. From the data given below calculate I- Revenue Deficit II- Fiscal Deficit and
     III- Primary Deficit
     Items $ (dollars)
     Revenue Receipts 400
     Revenue Expenditure 500
     Capital receipts 360
     Capital expenditure 250
     Recovery of loans and other receipts 100
     Borrowings 300
     Interest Payments 200
     A) I = $100, II = $250 and III. = $50
     B) I = $100, II = $550 and III = $350
     C) I = $200, II = $250 and III = $50
     D) I = $100, II = $250 and III = $150
103. If a borrower does not pay dues for 90 days, the loan becomes an NPA and it is termed
     as —–.
     A) Special Mention Account B) ReStressed assetsverse Repo rate
     C) Strategic Debt D) Strategic Assets
104. Which of the following statements are correct?
     a. MGNREGA scheme is applicable only in rural areas
     b. ‘Haritha Keralam Mission’ converges MGNREGA scheme activities in the state
     A) a only B) b only
     C) Both a and b D) Neither a nor b
105. Pradhan Mantri Mudra Yojana is a scheme to extend
     a. collateral free loans for enterprises in agricultural and non agricultural sector
     b. to expand micro business activities and generate self employment
     c. it acts as a refinance scheme to support micro enterprise sector
     A) a and b only are correct B) b and c only are correct
     C) a, b and c are correct D) a and c only are correct

106. Match the following:
     List I List II
     a. Vaghul Committee 1. For Banking Supervision
     b. Urjit Patel Committee 2. For tax structure reforms
     c. Kelkar Committee 3. To examine the current monetary policy
     framework
     d. Basel Committee 4. For money market in India A) a- 3, b-4,c-2, d- 1 B) a- 4, b-3, c-2, d- 1
     C) a- 4, b-3, c-1, d-2 D) a-1, b-3, c-2, d- 4
107. Match the following:
     List I List II
     a. K N Raj Committee 1. Direct Taxation Enquiry Committee
     b. L K Jha Committee 2. Taxation of Agricultural wealth and income
     c. Wanchoo Committee 3. Wealth Tax
     d. Chelliah Committee 4. Indirect Taxation Enquiry Committee
     A) a-3, b-4, c-2, d-1 B) a-4, b-3, c-2, d-1
     C) a-3, b-4, c-1, d-2 D) a-2, b- 4, c-1, d-3
108. In the solow model, the level of capital that maximizes steady state consumption is
     called:
     A) Golden Rule level B) Steady state growth
     C) Optional Capital stock D) None of these
109. Match the following
     List I List II
     a. Financial Dualism 1. B.Higgins
     b. Technological Dualism 2. Boeke
     c. Social Dualism 3. Myint
     A) a- 3, b- 1, c-2 B) a- 2, b- 1, c-3
     C) a- 2, b- 3, c-1 D) a-1, b- 2, c-3
110. Labour force constitute
     A) Employed workers only
     B) Unemployed workers only
     C) Employed and unemployed workers taken together
     D) Employed, unemployed and discouraged workers
111. Which of the following statements about Asian Development Bank is/ are correct?
     a. Its vision –inclusive growth, environmentally sustainable growth and regional
     integration among member countries
     b. Reduce poverty and improve the quality of life of their people in member countries
     c. The ADB was modeled on the World Bank and has a similar weighted voting system
     A) a and b only B) b and c only C) a and c only D) a, b and c
     
112. The first line of defense against economic down turns is
     A) Monetary Policy B) Fiscal Policy
     C) Income Policy D) Both A and C
113. Which of the following is/are techniques of deficit financing?2. 1.Borrowing from central bank 2.Running down of accumulated cash balances by the government 3.Issuing new currency 4.Borrowing from external sources A) 1 and 2 only B) 2 and 3 only
     C) 1, 2 and 3 only D) 1, 2, 3 and 4
114. The highest form of economic integration is called—-.
     A) Customs union B) Economic union
     C) Common market D) None of these
115. Twin Deficit challenge refers to:
     A) Fiscal deficit and capital account deficit together
     B) Fiscal deficit and current account deficit together
     C) Capital account and current account deficit together
     D) Both A and C
116. Import-restricting policies that do not operate directly through the price mechanism is—-.
     A) Tariff barriers B) Non tariff barriers
     C) Both A or B D) Neither A nor B
117. The economist who stated the general principle of taxation or rules of taxation
     A) Adam Smith B) Ricardo C) Taylor D) Robins
118. Match the following
     List I List II
     a. The proportionate growth in trade is less than 1. ultra pro trade biased growth
     the proportionate increase in income
     b. Growth results in an absolute decrease in trade 2. pro trade biased growth
     c. The proportionate growth in trade is greater than 3. ultra anti trade bias
     the proportionate increase in income
     d. Increase in trade is greater than increase 4. anti trade bias
     in income A) a-4, b-3, c-2, d-1 B) a-4, b-3, c-1, d-2
     C) a-3, b-4, c-2, d-1 D) a-3, b-4, c-1, d-2
119. Marshall Lerner condition states that the sum of the price elasticites of import and export
     did must be ——-for net exports to fall with an appreciation of the real exchange rate
     A) Higher than one B) Lower than one
     C) Equal to one D) None of these

120. IMF decides on the quota of each country on the basis of:
     a. member country’s GDP b. its economic openness
     c. its ‘economic variability’ d. international reserves
     A) a and b only B) b and d only
     C) b and c only D) All of these

answers