Kerala-SET-2023

1. In Pasinetti’s model of growth the interplay among which of the variables is crucial?
A) Labour growth, Profit rate, Savings.
B) Propensity to save by the capitalists, rate of investment, and distribution of
income.
C) Interest rate, public investment and economic growth.
D) Savings of workers, Investment, technology and profit rate.
2. Match the following
List 1 (Managerial theories of firm ) List 2 ( contributors)
a. Managerial Discretion 1. William J Baumol
b. Behaviour model 2. R Marris
c. Sales Revenue Maximisation 3. O Williamson
d. Managerial Enterprise 4. Cyert and March
A) a-3, b-4, c-2, d-1 B) a-4, b-3, c-1, d-2
C) a-1, b-4, c-2, d-3 D) a-3, b-4, c-1, d-2
3. An increase in autonomous spending:
A) Shifts the IS curve upwards to the right
B) Shifts the IS curve backwards to the left
C) Shifts the LM curve upwards to the right
D) Shifts the LM curve backwards to the left
4. The characteristic features of the new classical economics are:
A) economic agents optimise
B) markets clear
C) expectations are formed rationally
D) All the above
5. Match the items in List-I and List-II
a. Standard Deviation 1. Positively skewed distribution
b. Stratified Random Sampling 2. Analysis of attributes
c. Coefficient of Association 3. Measure of dispersion
d. Mean > Mode 4. Probability based sampling
A) a-4, b-2, c-3, d-1 B) a-1, b-2, c-3, d-4
C) a-4, b-3, c-2, d-1 D) a-3, b-4, c-2, d-1
6. A researcher may likely to commit one or more of the specification errors while
developing an empirical model except,
A) Omission of relevant variable (s)
B) Exclusion of an unnecessary variable(s)
C) Adopting wrong functional form
D) Errors of Measurement

7. India’s FOEX reserve as on 1st August 2021 is approximately
A) 330 billion US $ B) 530 billion US $
C) 630 billion US $ D) 730 billion US $
8. Assertion (A) In the recent past there has been a significant increase in the foreign
exchange reserves of India.
Reason (R) The new economic policy has provided incentives for foreign direct
investment.
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.
9. Kaldor’s theory of distribution does not assume:
A) Full employment B) The MP remains constant
C) MP (profits) > MP (wages) D) Keynesian assumption of 2 sector model
10. When both the firms are followers of each other in Stackelberg’s model of duopoly,
final equilibrium results in:
A) Joint profit maximization B) Equal profit for both
C) Cournot solution D) Perfectly competitive solution
11. Who among the following suggested the concept ‘inside money and outside money’?
A) Milton Friedman B) J M Keynes
C) Gurley and Shaw D) James Duessenberry
12. Choose the correct statements related to Okun’s Law:
1. It was postulated by Arthur Okum in the early 1960s.
2. It look at the statistical relationship between a country’s unemployment and
economic growth rates.
3. It says that a country’s gross domestic product (GDP) must grow at about 1%
rate for one year to achieve a 4% reduction in the rate of unemployment.
A) 1 and 2 only
B) 1 and 3 only
C) 2 and 3 only
D) 1, 2 and 3
13. —— is an exception to Stolper Samuelson theorem:
A) Leontief paradox B) Metzler paradox
C) Rybczynski theorem D) All the above
14. The 15th
Finance Commission recommended —– weightage to demographic
performance in horizontal devolution.
A) 10% B) 12.5% C) 15% D) 25%

15. As sample size increases:
A) The sampling error increases
B) The sampling error decreases
C) The sampling error remains constant
D) The relation cannot be predicted
16. The shape of Marginal Efficiency of Capital curve is:
A) U- shaped B) Inverted S shaped
C) Vertical straight line D) Slopes downward
17. Match the following
a. Property tax 1. Specific duty
b. Customs and Excise duties 2. advalorem
c. Value of the Property 3. direct tax
d. Weight of the commodity 4. indirect tax
A) a -3, b-1, c-4 ,d-2 B) a -3, b-4, c-2 d-1
C) a -2, b -3, c-4 d-1 D) a -3, b-4, c-1 d-2
18. Golden Age model of economic growth is associated with:
A) Joan Robinson B) J E Meade
C) R F khan D) Kaldor
19. In the opinion of Musgrave, the device of compensatory financing is adopted:
A) To increase the level of effective demand to fight depression and
unemployment
B) To reduce the level of inflation
C) To create a fund to meet emergencies including war expenditure
D) To provide loans to farmers and small scale producers at low rates of interest
20 Which among the following represents the highest degree of economic integration?
A) Common market B) Preferential trading area
C) Economic union D) Customs union
21. Choose the factors influencing the value of the rate of effective protection:
1. Nominal tariff rate on the important input
2. Nominal tariff rate on the final commodity
3. Ratio of the value of the imported input to the value of the final commodity
A) 1 & 2 only B) 1 & 3 only C) 2 & 3 only D) 1, 2 & 3
22. Match the following
a. Harvey Leibenstein 1. Big push theory
b. Rosenstein Rodan 2. Low level equilibrium trap
c. Hirschman 3. Critical minimum effort thesis
d. Nelson 4. Theory of unbalanced growth
A) a-3, b-1, c-4, d-2 B) a- 3, b-4, c-2, d-1
C) a-4, b-3, c-2, d-1 D) a-2, b-1, c-4, d-3

23. Identify the necessary conditions for price discrimination:
1. Existence of monopoly 2. Different elasticity of demand
3. Separation of markets 4. No contact between buyers
5. Different elasticity of supply
A) 1, 2 and 3 only B) 1, 3 and 5 only
C) 1, 2, 3 and 4 only D) 1, 3,4 and 5 only
24. According to Chamberlin, excess capacity is due to:
A) Price competition and selling cost
B) Non price competition and free entry
C) Non price competition and selling cost
D) Price competition, selling cost and free entry
25. According to Marx, the organic composition of capital is:
A) The ratio of constant to variable capital
B) The ratio of variable to constant capital
C) The ratio of surplus value to variable capital
D) The ratio of constant capital to surplus value
26. Select the pair wrongly matched
A) Breusch-Godfrey test – Autocorrelation
B) Goldfeld-Quandt test – Heteroscedasticity
C) Jarque-Bera test – Residual normality
D) Chow test – Multicollenearity
27. As there is no crowding out, fiscal policy is fully effective in:
A) Keynesian range of LM curve
B) Intermediate range of LM curve
C) Classical range of LM curve
D) All the above
28. Assume that value of ke = 5 and b =10. Then the slope of IS is:
A) 1.0 B) 0.5 C) 0.2 D) 0.1
29. —–.is a measure of monopoly power in an industry, which is given by the sum of the
squared values of the market sales shares of all the firms in the industry
A) Lerner Index B) Mark up
C) Pay off D) Herfindahl Index
30 The rate of optimum tariff can be calculated in terms of:
A) Double factoral terms of trade
B) Balance of payments
C) Foreign trade multiplier
D) Elasticity of the foreign offer curve

31 Hawkins Simon conditions for a 3 industry case state that:
Statement 1. : All diagonal elements of (I-A) are strictly positive
Statement 2. : All principal minors of (I-A) are negative
A) 1 only is correct B) 2 only is correct
C) 1 and 2 are correct D) 1 and 2 are incorrect
32. Personal Income equals:
A) National Income – Social security contributions -Transfer payments -Corporate
income taxes -Undistributed corporate profits
B) National income – Social security contributions – Corporate income taxes –
Undistributed corporate profits + Transfer payments
C) National income – Social security contributions – Undistributed corporate
profits + Transfer payments + Corporate income taxes
D) National income – Social security contributions + Transfer payments +
Corporate income taxes + Undistributed corporate profits
33. Which among the following canons was not suggested by Adam Smith?
A) The canon of equality B) The canon of economy
C) The canon of elasticity D) The canon of certainty
34. Choose the correct statement/s related to CHAMPIONS:
A) It was launched on 9th May, 2020 by the Government of India
B) CHAMPIONS stand for Creation and Harmonious Application of Modern
Processes for Increasing the Output and National Strength
C) It is a platform that facilitates a single window solution for all the needs of the
MSMEs
D) All the above
35. Choose the correct statement(s):
Statement 1. In the long run, there is no trade off between inflation and
enemployment.
Statement 2. New Keynesians explain the breakdown of the simple Philips curve in
terms of the Non-Accelerating Rate of Unemployment (NAIRU)
Statement 3. NAIRU is the rate of unemployment at which inflation will stabilise
A) 1 & 2 only B) 1 & 3 only
C) 2 & 3 only D) 1, 2 & 3
36. As per the Friedman –Savage hypothesis,
A) Marginal utility of money first increases then diminishes and increases again
B) Marginal utility of money first diminishes then increases and diminishes again
C) Marginal utility of money first increases and then diminishes
D) Marginal utility of money first diminishes and then increases.
37. One of the earliest linear expenditure models was suggested by
A) Nerlove B) Houthakker
C) Alfred Marshall D) R. Stone

38. The classical economists are of the view that savings and investments are
A) Normally not equal
B) Always not equal
C) Always equal
D) Sometimes equal
39. Input output isoquant assumes
A) Zero Substitutability of K and L
B) Perfect substitutability of K and L
C) Limited substitutability of K and L
D) None of the above.
40. Firm A purchases raw materials worth Rs 150 and produce semi-finished goods and
sell it to firm C for Rs 250. C again make some modification to the goods and sell the
goods to final consumer for Rs 380. If there is a depreciation cost of Rs 50 in the
process, find the net value added.
A) Rs. 730 B) Rs. 230 C) Rs. 780 D) Rs. 180
41. Assume a consumption equation C = ` 50 +0.80Yd then consumption is:
A) ` 160 when disposable income is ` 200
B) ` 150 when disposable income is ` 100
C) ` 370 when disposable income is ` 400
D) ` 250 when disposable income is ` 300
42. Marginal propensity to consume implies
A) Ratio of change in consumption to a change in disposable income
B) Ratio of consumption to disposable income
C) Ratio of consumption to savings
D) Ratio of change in consumption to a change in money holdings
43. According to the classical economists which of the following make prolonged
depression and unemployment impossible?
A) Government intervention
B) Constant investment demand
C) Wage price flexibility
D) Growth in money supply

  1. Any square matrix ‘A’ is said to be skew symmetric matrix if :
    A) A = At B) A = A1 C) A = A – 1 D) A = – A
    t
  2. What will be the marginal cost of firm A, if its total cost TC = x(x2
    – 2)?
    A) (x – 2) B) 3×2
    – 2 C) 3×2 D) 3x – 2
  3. A random variable x is said to be discrete if it can assume:
    A) Any values in its possible range of values
    B) Only specified values in its possible range of values
    C) Only non-negative values in its possible range of values
    D) Random variables cannot be a discrete variable
  1. Which of the following is not a property of normal distribution?
    A) The normal distribution is bell shaped
    B) The height of normal curve is at its maximum at the median
    C) The normal curve is uni-model
    D) The normal curve is platy-kurtic
  2. Economic development is a broader term which is measured by:
    A) Quantitative indicators only
    B) Qualitative indicators only
    C) Both quantitative and qualitative indicators
    D) Development cannot be measured
  3. ‘Shocks’ and ‘stimulants’ are relevant for which of the following growth strategy?
    A) Unbalanced growth B) Critical minimum effort theory
    C) Balanced growth D) Big push theory
  4. ‘Inverted U’ hypothesis, which states that inequalities of income first increase with
    development and then decrease with further development has been put forward by
    A) Simon Kuznets B) Ursula Hicks
    C) Ragnar Frisch D) RagnarNurkse
  5. The concept of Vicious Circle of Poverty was associated with:
    A) Ragnar Frisch B) Ragnar Nurkse
    C) Milton Friedman D) J K Galbraith
  6. The theory of social dualism was propounded by:
    A) Feldman B) J E Meade
    C) J H Boeke D) Gunner Myrdal
  7. Match the following
    a. Rekhi committee 1. Indian monetary system
    b Sukhomoychakravarty committee 2. indirect taxes
    c. Sengupta committee 3. Disinvestment
    d. Rengarajan committee 4. Public Enterprises
    A) a-2, b-3, c-4, d-1 B) a-2, b-1, c-4, d-3
    C) a-1, b-3, c-4, d-2 D) a-3, b-2, c-4, d-1
  8. Which amongst the following statements are true in relation to Goods and Services
    Tax Network (GSTN)?
  1. GSTN is a Non-profit non-government company, which will provide shared
    IT infrastructure and service
  2. The Frontend services of registration, Returns and payments to all taxpayers
    will be provided by GSTN.
  3. It will be the interface between the government and the taxpayers.
  4. GSTN SPV to be the exclusive national agency responsible for delivering
    integrated direct tax related services.
    A) 1, 2 and 3 only B) 2, 3, and 4 only
    C) 1, 2 and 4 only D) 1, 2, 3 and 4
  1. Agriculture price commission was constituted in;
    A) 1960 B) 1965 C) 1980 D) 1970
    56 Expansion of SARFAESI Act:
    A) The Securitisation and Reconstruction of Financial Act and Enforcement of
    Securities Interest Act
    B) The Securitisation and Reconstruction of Financial Assets and Enforcement of
    Securities Interest Act
    C) The Securities and Reconstruction of Financial Assets and Enforcement of
    Securities Interest Act
    D) The Securitisation and Recovery of Financial Assets and Enforcement of
    Securities Interest Act
  2. Which among the following statement is / are true with reference to BASEL III
    norms?
  3. Basel III is an international regulatory accord that introduced a set of reforms
    designed to improve the regulation, supervision, and risk management within
    the banking sector.
    2 Basel III is an iterative step in the ongoing effort to enhance the banking
    regulatory framework.
  4. A consortium of central banks from 28 countries published Basil III in 2009
    4 Basel III is an iterative step in the ongoing effort to enhance the bank branch
    expansion
    A) 1,3 & 4 only B) 2, 3 & 4 only C) 1, 2 & 3 only D) 1,2, 3 & 4
  5. Assertion A): Repo rate is the rate at which Reserve Bank of India lends money to
    commercial banks in the event of any shortfall of funds.
    Reason (R): Repo rate is used by monetary authorities to control inflation.
    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.
  6. Which of the following is not a component of M1 (narrow money)?
    A) Currency with the Public
    B) Current Deposits with the Banking System
    C) Demand Liabilities Portion of Savings Deposits with the Banking System
    D) Savings Deposits with the Banking System
    60 The traders reduce the risk of loss in secondary market through:
    A) Speculations B) Arbitrage
    C) Hedging D) None of the above
  7. The ridge lines (Upper and Lower) are the locus of points of isoquants where the
    Marginal products (MP) of factors (K and L) are:
    A) constant. B) increasing
    C) Zero D) decreasing
  1. ———- refer to gains accruing to all the firms in an industry due to the growth of that
    industry.
    A) Economies of continuation
    B) Economies of linked products
    C) Economies of increased dimensions
    D) Economies of Concentration
  2. In game theory, Nash equilibrium means a set of strategies for players where:
    A) Any participant can gain by a unilateral change of strategy
    B) Any player can improve his / her payoff given the other player’s strategy
    C) No player can improve his / her payoff given the other player’s strategy
    D) All the above
  3. Keynesian revolution was the outcome of :
    A) Capitalist instability with frictional unemployment
    B) Capitalist instability with voluntary unemployment
    C) Capitalist instability with involuntary unemployment
    D) all of the above
  4. What will be the final change in income due to an autonomous investment equal to
    2000cr when MPC is 0.60?
    A) 2000cr B) 2.5 cr C) 2500cr D) 5000cr
  5. The life cycle hypothesis is based on
    A) Household saving maximising behaviour
    B) Paradox of thrift
    C) Household utility maximising behaviour
    D) All of the above
  6. Identify the correct statements:
  7. Type I error is committed by rejecting null hypothesis when it is true
  8. Type I error is committed by accepting null hypothesis when it is false
  9. Type II error is committed by rejecting null hypothesis when it is false
  10. Type II error is committed by accepting null hypothesis when it is false
    A) 1 & 4 only B) 1, 2 & 3only C) 2 & 4 only D) 1, 2, 3 & 4
  11. The value of correlation coefficient is between:
    A) 0 and 1 B) -1 and 0 C) -1 and 1 D) 0 and ∞
  12. Which one of the following statistical measure is not affected by extremely large or
    small values?
    A) Arithmetic mean B) Standard deviation
    C) Harmonic mean D) Median
  13. The coefficient of determination is used as a measure of:
    A) Coefficient of correlation
    B) The overall goodness of fit of the regression model
    C) The residual sum of squares as a proportion of total sum of squares
    D) X variables on the basis of independent Y variables

75 The chairman of the fifteenth finance commission:
A) N K Singh B) Y V Reddy
C) C Rengarajan D) Dr Rajiv Kumar

  1. The slogan ‘Garibi Hatao’ (removal of poverty) was given in which Five Year Plan?
    A) First Five year plan B) Third Five year plan
    C) Fourth Five year plan D) Fifth Five year plan
  2. Major objectives of “Atma Nirbhar Bharat Abhiyan” is: 1) Make the nation self-reliant with more focus on local manufacturers 2) Strengthen the economy, 3)Improve the standard of living 4 )Most importantly improve the trade deficit
    A) 1, 3 and 4 only B) 1, 2 and 3 only
    C) 2, 3 and 4 only D) 1, 2 ,3 & 4
  3. Primary deficit is:
    A) The difference between the fiscal deficit of the current year and the interest
    paid by the government.
    B) The difference between total revenue and total expenditure of the government
    C) The difference between total revenue and total expenditure of the government
    plus interest payments
    D) The difference between total revenue and total expenditure of the government
    plus net borrowings of the government
  4. ———- is the weighted average of a country’s currency in relation to an index or
    basket of other major currencies.
    A) Real Effective Exchange Rate
    B) Nominal Effective Exchange Rate
    C) Purchasing Power Parity Exchange rate
    D) None of the above
  1. Each producer supplies one third of the market at a common price which is lower than
    the monopoly price, is the stable solution attained in
    A) Cournot’s duopoly model
    B) Betrand’s duopoly model
    C) Stackelberg’s duopoly model
    D) Chamberlin’s duopoly model
  2. Paretian efficiency criterions are held well under which of the market situation
    A) Monopsony
    B) Monopolistic Competition
    C) Perfect Competition
    D) Bilateral Monopoly
  3. Which of the following statement is not true?
    A) The Q ratio was popularized by Nobel Laureate James Tobin and invented by
    Nicholas Kaldor.
    B) The Q ratio, also known as Tobin’s Q, measures whether a firm or an
    aggregate market is relatively over- or undervalued.
    C) The Q ratio relies on the concepts of market value and replacement value.
    D) The simplified Q ratio is the equity market value divided by expected value.

84. Identify the Correct statements

  1. Expectations augmented Philips curve would shift in such a way that in the
    long run a higher rate of inflation would result in changes in unemployment.
  2. Natural rate of unemployment is that rate of unemployment which is
    consistent with labour market equilibrium and at which the price level could
    be stable
  3. The Natural rate of unemployment is determined by the real factors which
    affect the amount of frictional and structural unemployment in the economy
    A) 1 only B) 2 and 3 only
    C) 1 and 2 only D) 1, 2 and 3
  1. Given the consumption function, C = 0.60 Y and the investment function,
    I = 200 − 0.40 i, then the equation of the IS function will be:
    A) Y= 200 − 0.60 i B) Y = 500 – i
    C) Y= 540 − 0.40 i D) Y = 200 − 0.40 i
  1. Assertion (A) “Okun’s Law is intended to tell us how much of a country’s gross
    domestic product (GDP) may be lost when the unemployment rate is
    above its natural rate.”
    Reasons (R) An economy experiences a 2 percentage point increase in
    unemployment for every 2 percentage point decrease GDP from its
    long-run level (also called potential GDP).
    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.
  2. One tailed tests can be used to test hypothesis about regression coefficients when
    A) A larger significance level than 5% is to be used
    B) The estimated coefficient has a sign predicted by theory
    C) The estimated coefficient does not have a sign predicted by theory
    D) The sample size is large enough to use the normal approximation to the
    students‘t’ distribution
  1. The ‘F’ test can test a verity of hypothesis such as whether 1)An individual regression coefficient is statistically significant 2)All partial slope coefficients are zero 3 )Two or more coefficients are statistically equal 4)The coefficients satisfy some linear restrictions
    A) 1, 2 and 3 only are correct B) 2, 3 and 4 only are correct
    C) 1, 3 and 4 only are correct D) 1, 2, 3 and 4 are correct
  1. If Multicollinearity is prefect, the regression coefficients of x variables are:
    A) Indeterminate and their standard errors are infinite
    B) Indeterminate but their standard errors are large
    C) Determinate and their standard errors are infinite
    D) Determinate and their standard errors are large
  2. Which one of the following is not a method to detect Heteroscedasticity
    A) Graphical method
    B) Klien’s rule of thumb
    C) Spearman’s rank Correlation test
    D) Park test
  1. Identify the components in assessing Sen’s capability approach 1)The importance of real freedoms in the assessment of a person’s advantage 2)Individual differences in the ability to transform resources into valuable
    activities 3)The bi-variate nature of activities giving rise to happiness 4)A balance of materialistic and non-materialistic factors in evaluating human
    welfare
    A) 1,2 and 3 only B) 2,3and 4 only
    C) 1, 2 and 4 only D) 1,2,3 and 4
  1. As per the Harrod – Domar growth model, if the actual growth rate is greater than the
    warranted growth rate
    A) The economy will experience deflation
    B) The economy will experience inflation
    C) There will be steady economic growth
    D) The economy will not be affected
  2. Which of the following is not an assumption of Solow’s growth model?
    A) Linear homogeneous production function
    B) Saving is the constant fraction of the level of output
    C) The growth rate of labour force is endogenously determined
    D) Labour and capital are substitutable for each other
  1. Assertion A) Dependency theory propose that the poverty and backwardness of poor
    countries are caused by their peripheral position
    Reason (R): Since the capitalist world system evolved, the distinction between the
    central and the peripheral nations has grown and diverged.
    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.
  2. The Company which won the sale bid of India’s national carrier – AIR INDIA
    A) Tata Motors B) Talace Pvt Ltd
    C) Tata Air D) Air Asia
  3. Which among the following committees suggested to establish “Insurance Regulatory
    Authority in India”?
    A) Dandekar Committee B) Malhotra Committee
    C) Rangrajan Committee D) Dutt committee
  4. Which country has adopted “Gross National Happiness” in order to define the index
    of well-being of its citizens?
    A) Australia B) Norway C) Sri Lanka D) Bhutan
  5. Comparative advantage theory is based on:
    A) Labour theory of value B) Price differences in trading countries
    C) Value of products D) The law of diminishing returns
  6. As per the Stolper – Samuelson theorem, the imposition of a tariff by a nation causes
    the real income of the nation’s:
    A) Abundant factor to rise B) Scarce factor to rise
    C) Scarce factor to fall D) Scarce and abundant factors to rise
  7. Intra-industry trade refers to trade in:
    A) Differentiated products
    B) Homogenous products
    C) Trade based on economies of scale
    D) Heterogeneous product
  1. Marshal-Lerner condition states that the sum of the elasticities of demand for a
    country’s exports and its demand for imports has to be:
    A) less than unity if devaluation is to have a beneficial effect on a country’s trade
    balance.
    B) greater than unity if devaluation is to have a beneficial effect on a country’s
    trade balance.
    C) equal to unity if devaluation is to have a beneficial effect on a country’s trade
    balance.
    D) Such elasticises are not at all relevant for devaluation
  2. Assertion (A): Market collapse starts with consumers who want to buy goods from an
    unfamiliar market who are willing to pay the price of an average
    quality good available.
    Reason (R): Participants with key information might participate selectively in
    trades at the expense of other parties who do not have the same
    information.
    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.
  3. The lemons problem refers to issues that arise regarding the value of an investment or
    product due to
    A) Full information B) Asymmetric information
    C) Rational Information D) All the above
  1. Identify the correct statements 1)Rational expectation hypothesis states that individuals base their decisions on human rationality, information available to them, and their past experiences 2)Adaptive expectation hypothesis states people adjust their expectations on what the future will be based on experiences and events of the recent past

A) 1 only B) 2 only
C) Both 1 and 2 D) Neither 1 Nor 2

  1. Which of the following don’t act as an automatic stabilizer during economic
    fluctuations?
    A) Gross business savings B) Induced investments
    C) Personal income tax D) Transfer payments
  2. Liquidity trap is a situation in which
  1. Monetary policy becomes ineffective at a very low interest rate
  2. Households prefer to hold cash rather than invest in bonds
  3. Bond price expects to rise further

A) 1, 2 and 3 are correct B) 1 and 2 only are correct
C) 2 and 3 only are correct D) 1 and 3 only are correct

  1. The Ricardo – Barro effect suggests that when a government tries to stimulate an
    economy by increasing debt-financed government spending:
    A) The aggregate demand shifts downwards
    B) The aggregate demand remains unchanged
    C) The aggregate demand shits upwards
    D) None of the above
  2. Fundamental research is also known as:
    A) Basic research B) Pure research
    C) Applied research D) Both A and B
  3. The frequency distribution of a research data which is symmetrical in shape similar to
    a normal distribution but centre peak is much higher, is
    A) Skewed B) Mesokurtic
    C) Leptokurtic D) Platykurtic
  4. The concept of X efficiency was introduced by:
    A) Leibenstein B) A Lewis
    C) Rosenstein Rodan D) H W singer
  5. The concept of balanced growth means:
    A) More attention to be given to metro cities
    B) More investment should be diverted to key and strategic sectors
    C) Different sectors of the economy grow in a harmonious manner
    D) Capital goods industries should be developed in the first stage
  6. The environment (protection) act was enacted in:
    A) 1985 B) 1988 C) 1987 D) 1986
  7. Which of the following is a positive externality?
    A) Congestion in the roads B) Air pollution from a factory
    C) Vaccination D) Deforestation
  8. As per the budget document, Govt of Kerala, the fiscal deficit in 2021-22 is estimated
    to be
    A) 4.25 % of GSDP B) 3.5% of GSDP
    C) 5.5% of GSDP D) 4% of GSDP
  9. Which of the following is not a feature of the Kerala Model of Development?
    A) High literacy and life expectancy rates,
    B) Highly improved access to healthcare
    C) Very high birth rates
    D) Low infant mortality
  10. “Capital in the Twenty First Century” was written by:
    A) Thomas Piketty B) Krugman
    C) A.K. Sen D) JagdishBhagwati
  11. Which of the following item of expenditure is not a part of the plan expenditure?
    A) Agriculture B) Public education
    C) Industry D) Public enterprises
  1. Ad Valorem Tariff is a:
    A) Tariff on the units of goods imported
    B) Tariff on the value of goods imported
    C) A specific tariff
    D) Both A and B
  2. The Nobel Prize for economics 2021 was awarded to:
    A) David Card, Joshua D. Angrist and Maria Ressa
    B) Maria Ressa, David Card and Dmitry Andreyevich Muratov
    C) David Card and Dmitry Andreyevich Muratov and Joshua D. Angrist
    D) David Card, Joshua D. Angrist and Guido W. Imbens
  3. The Engel curve for a Giffen good is:
    A) Positively sloped B) vertical straight line
    C) Negatively sloped D) Horizontal

Qn.NoKeyQn.NoKeyQn.NoKeyQn.NoKeyQn.NoKeyQn.NoKey
1   B   21   D   41   C   61   C   81   A   101   B   
2   D   22   A   42   A   62   D   82   C   102   A   
3   A   23   C   43   C   63   C   83   D   103   B   
4   D   24   B   44   D   64   C   84   B   104   C   
5   D   25   A   45   B   65   D   85   B   105   B   
6   B   26   D   46   B   66   C   86   C   106   B   
7   C   27   A   47   D   67   A   87   B   107   B   
8   A   28   C   48   C   68   C   88   D   108   D   
9   C   29   D   49   B   69   D   89   A   109   C   
10   C   30   D   50   A   70   B   90   B   110   A   
11   C   31   A   51   B   71   B   91   C   111   C   
12   A   32   B   52   C   72   A   92   B   112   D   
13   B   33   C   53   B   73   C   93   C   113   C   
14   B   34   D   54   A   74   B   94   A   114   B   
15   B   35   D   55   B   75   A   95   B   115   C   
16   D   36   B   56   B   76   D   96   B   116   A   
17   B   37   D   57   C   77   D   97   D   117   B   
18   A   38   C   58   B   78   A   98   A   118   B   
19   A   39   A   59   D   79   A   99   B   119   D   
20   C   40   D   60   C   80   C   100   A   120   C   

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