UGC NET Economics June 2026 Question PaperPaper 1 & Paper 2 with Answer Key

50 questions with the answer key and explanations.

1. Question 1

   If the total population of all six cities together is 96 lakh, then what is the literate population of City B (in lakh)?

   The following table shows the percentage (%) of illiterate population of six cities (A-F). The ratio of the population of these six cities is 8 : 7 : 4 : 5 : 10 : 6. Based on the data in the table, answer the questions that follow.

   City	A	B	C	D	E	F
   Percentage of Illiterate population	36%	40%	32%	45%	50%	30%

   1. A8.42
   2. B9.20
   3. C9.60
   4. D10.08

   Answer: (D) 10.08

   Explanation

   The six-city population ratio 8 : 7 : 4 : 5 : 10 : 6 sums to 40 parts, so 1 part = 96 / 40 = 2.4 lakh. City B has 7 parts = 16.8 lakh. With 40% illiterate, the literate share is 60% of 16.8 = 10.08 lakh.

   Sign in to read the full explanation

   Sign in

2. Question 2

   If the total population of all the six cities together is 80 lakh, then the population of City F is _______ % of the population of City A.

   The following table shows the percentage (%) of illiterate population of six cities (A-F). The ratio of the population of these six cities is 8 : 7 : 4 : 5 : 10 : 6. Based on the data in the table, answer the questions that follow.

   City	A	B	C	D	E	F
   Percentage of Illiterate population	36%	40%	32%	45%	50%	30%

   1. A60
   2. B75
   3. C80
   4. D120

   Answer: (B) 75

   Explanation

   Total 80 lakh over 40 parts gives 1 part = 2 lakh. City F = 6 parts = 12 lakh and City A = 8 parts = 16 lakh. So F is 12 / 16 * 100 = 75% of A. The illiterate percentages are not needed for this item.

   Sign in to read the full explanation

   Sign in

3. Question 3

   If the Illiterate population of City D is 1.8 lakh, then what is the population of City F (in lakh)?

   The following table shows the percentage (%) of illiterate population of six cities (A-F). The ratio of the population of these six cities is 8 : 7 : 4 : 5 : 10 : 6. Based on the data in the table, answer the questions that follow.

   City	A	B	C	D	E	F
   Percentage of Illiterate population	36%	40%	32%	45%	50%	30%

   1. A3.2
   2. B4.2
   3. C4.8
   4. D5.4

   Answer: (C) 4.8

   Explanation

   City D is 45% illiterate, so its total population = 1.8 / 0.45 = 4 lakh. City D is 5 parts, so 1 part = 0.8 lakh. City F is 6 parts = 6 * 0.8 = 4.8 lakh.

   Sign in to read the full explanation

   Sign in

4. Question 4

   If the total population of City A and City C together is 6 lakh, then what is the illiterate population of City C?

   The following table shows the percentage (%) of illiterate population of six cities (A-F). The ratio of the population of these six cities is 8 : 7 : 4 : 5 : 10 : 6. Based on the data in the table, answer the questions that follow.

   City	A	B	C	D	E	F
   Percentage of Illiterate population	36%	40%	32%	45%	50%	30%

   1. A48000
   2. B64000
   3. C72000
   4. D80000

   Answer: (B) 64000

   Explanation

   City A (8 parts) and City C (4 parts) together are 12 parts = 6 lakh, so 1 part = 0.5 lakh. City C = 4 parts = 2 lakh. Its illiterate population = 32% of 2,00,000 = 64,000.

   Sign in to read the full explanation

   Sign in

5. Question 5

   If the total population of City E is 2.5 lakh, then the illiterate population of City A is _______ % more than the illiterate population of City C.

   The following table shows the percentage (%) of illiterate population of six cities (A-F). The ratio of the population of these six cities is 8 : 7 : 4 : 5 : 10 : 6. Based on the data in the table, answer the questions that follow.

   City	A	B	C	D	E	F
   Percentage of Illiterate population	36%	40%	32%	45%	50%	30%

   1. A120
   2. B64
   3. C96
   4. D125

   Answer: (D) 125

   Explanation

   First turn the ratio into actual numbers. City E holds 10 parts and equals 2.5 lakh people, so every single part represents 0.25 lakh people. City A therefore has 8 parts, which is 2 lakh people, and its illiterate share is 36 percent of that, namely 0.72 lakh. City C has 4 parts, which is 1 lakh people, giving an illiterate share of 32 percent, namely 0.32 lakh. The illiterate figure for City A exceeds that of City C by 0.40 lakh, and expressed as a percentage of City C this increase equals 0.40 divided by 0.32 multiplied by 100, which works out to 125 percent.

   Sign in to read the full explanation

   Sign in

6. Question 6

   Match List - I with List - II.

   List-I (Stage)	List-II (Years)
   A. Sensorimotor Stage	I. 2 to 7 years
   B. Intuitive Stage	II. 7 to 16 years
   C. Preoperational Stage	III. 0 to 2 years
   D. Operational Stage	IV. 4 to 7 years

   1. AA-III, B-IV, C-I, D-II
   2. BA-III, B-IV, C-II, D-I
   3. CA-IV, B-III, C-I, D-II
   4. DA-IV, B-I, C-III, D-II

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

   Explanation

   In Piaget's theory of cognitive development the sensorimotor stage runs about 0-2 years, the preoperational stage about 2-7 years, and concrete-to-formal (operational) thinking about 7-16 years. The intuitive sub-stage of preoperational thought sits around 4-7 years. This gives A-III, B-IV, C-I, D-II.

   Sign in to read the full explanation

   Sign in

7. Question 7

   What is the disadvantage of oral communication?

   1. AOral words spoken disappear into the air. The words are temporary
   2. BOral communication is spontaneous and natural
   3. COral communication is easy for others to understand
   4. DThe communicator is always physically available

   Answer: (A) Oral words spoken disappear into the air. The words are temporary

   Explanation

   Speech leaves no automatic permanent record, so oral messages are transient and hard to refer back to or use as evidence later. The other options describe advantages of oral communication (immediacy, clarity through instant feedback, physical presence), not drawbacks.

   Sign in to read the full explanation

   Sign in

8. Question 8

   What among the following are different types of mass media?
   A. Newspaper
   B. Photography
   C. University
   D. Face to face communication
   E. Television
   Choose the correct answer from the options given below :

   1. AA, B and E Only
   2. BC and D Only
   3. CA, B and C Only
   4. DC, D and E Only

   Answer: (A) A, B and E Only

   Explanation

   Mass media carry a message to a large, dispersed audience: newspapers (print), photography (visual press/photo-journalism) and television (broadcast) all qualify. A university is an institution, and face-to-face communication is interpersonal, not mass, communication.

   Sign in to read the full explanation

   Sign in

9. Question 9

   Which of the following is a Geologic Natural Hazard?

   1. ADrought
   2. BEarthquake
   3. CCyclones
   4. DBlizzards

   Answer: (B) Earthquake

   Explanation

   Geologic (geophysical) hazards originate in the solid earth - earthquakes, volcanic eruptions, landslides and tsunamis. Drought, cyclones and blizzards are atmospheric / hydro-meteorological hazards.

   Sign in to read the full explanation

   Sign in

10. Question 10

    Four guiding principle for planning with reference to higher education are :
    A. Quality
    B. Accountability
    C. Equity
    D. Assessment
    E. Access
    Choose the correct answer from the options given below :

    1. AA, B, C and E Only
    2. BB, C, D and E Only
    3. CA, C, D and E Only
    4. DA, B, C and D Only

    Answer: (A) A, B, C and E Only

    Explanation

    Planning for higher education in India is generally organised around four principles: access, equity, quality and accountability. This matches option A (Quality, Accountability, Equity, Access). 'Assessment', which appears in the other options, is an evaluation activity carried out within institutions, not a guiding principle for system-level planning.

    Sign in to read the full explanation

    Sign in

11. Question 11

    Match List - I with List - II.

    List-I (Research Type)	List-II (Meaning)
    A. Quantitative Research	I. Quest for knowledge, developing hypothesis and theories
    B. Pure Research	II. Search for ways of using scientific knowledge to solve practical problems
    C. Applied Research	III. It involves the study of the problem or the same body of phenomenon over a period of time
    D. Longitudinal Research	IV. Based on measurement of quantity or amount

    1. AA-IV, B-I, C-II, D-III
    2. BA-I, B-II, C-III, D-IV
    3. CA-IV, B-III, C-II, D-I
    4. DA-III, B-II, C-IV, D-I

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

    Explanation

    Quantitative research is based on measurement of quantity or amount (IV). Pure (fundamental) research seeks knowledge and builds hypotheses and theories (I). Applied research uses scientific knowledge to solve practical problems (II). Longitudinal research studies the same phenomenon repeatedly over a period of time (III).

    Sign in to read the full explanation

    Sign in

12. Question 12

    Arrange the following film-magazines in chronological order as per their year of publication (from earliest to the latest) :
    A. 'Film World', Weekly (Mumbai)
    B. 'Screen', Weekly (Mumbai)
    C. 'Moving Picture', Monthly (Mumbai)
    D. 'Cinemaya', Monthly (Delhi)
    E. 'Stardust', Monthly (Mumbai)
    Choose the correct answer from the options given below :

    1. AA, B, C, D, E
    2. BC, B, E, D, A
    3. CE, D, C, B, A
    4. DD, C, B, A, E

    Answer: (B) C, B, E, D, A

    Explanation

    By year of first publication the order runs Moving Picture (a Mumbai film monthly from the 1920s), then Screen (weekly, 1951), then Stardust (monthly, 1971), then Cinemaya (Delhi, 1988), and Film World last. This is option B (C, B, E, D, A). It is also the only option that keeps the securely dated titles Screen, Stardust and Cinemaya in the correct increasing order.

    Sign in to read the full explanation

    Sign in

13. Question 13

    When we do not use any words or speech while communicating, this type of communication is known is :

    1. AOral communication
    2. BGroup communication
    3. CInter-personal communication
    4. DNon verbal communication

    Answer: (D) Non verbal communication

    Explanation

    Communication through gestures, posture, facial expression, eye contact, tone and use of space - without words - is non-verbal communication. Oral, group and interpersonal communication all still rely on language.

    Sign in to read the full explanation

    Sign in

14. Question 14

    In a certain code language :
    '4 5 6' means 'pack green carpet'
    '7 3 6' means 'spread one carpet'
    '3 5 6' means 'one green carpet'
    What is the code for 'pack' and 'spread' respectively?

    1. A5 and 7
    2. B4 and 3
    3. C4 and 7
    4. D7 and 5

    Answer: (C) 4 and 7

    Explanation

    '6' appears in all three statements that contain 'carpet', so 6 = carpet. The first and third statements share 5 and 6 and both contain 'green carpet', so 5 = green and the leftover 4 = pack. The second and third share 3 and 6 and both contain 'one carpet', so 3 = one and the leftover 7 = spread. Hence pack = 4 and spread = 7.

    Sign in to read the full explanation

    Sign in

15. Question 15

    Arrange the following developmental in order in view of the period they started functioning :
    A. Sakshar Bharat
    B. National Extension Service
    C. National Adult Education Program
    D. Community Development Program
    E. National Literacy Mission
    Choose the correct answer from the options given below :

    1. AA, C, D, B, E
    2. BD, B, C, E, A
    3. CB, A, E, D, C
    4. DC, D, A, E, B

    Answer: (B) D, B, C, E, A

    Explanation

    The Community Development Programme began in 1952, the National Extension Service in 1953, the National Adult Education Programme in 1978, the National Literacy Mission in 1988, and Saakshar Bharat in 2009. The chronological order is therefore D, B, C, E, A.

    Sign in to read the full explanation

    Sign in

16. Question 16

    What is not a type of Scientific Research?

    1. AExploratory, it attempts to gain better understanding of different dimensions of the problem
    2. BDescriptive, which provides answer to the questions related to who, what, when and how
    3. CExplanatory, it explains causes of problem
    4. DOpinion based arguments, it collects facts or compile information without a clear purpose or analysis or transferring facts from one source to another

    Answer: (D) Opinion based arguments, it collects facts or compile information without a clear purpose or analysis or transferring facts from one source to another

    Explanation

    Exploratory, descriptive and explanatory studies are recognised categories of scientific research. Simply gathering facts or repeating opinions without a clear purpose, design or analysis is not scientific research.

    Sign in to read the full explanation

    Sign in

17. Question 17

    Which is the correct sequence of increasing memory storage cost per bit?
    A. Magnetic tapes
    B. ROM
    C. Magnetic disk
    D. CPU Registers
    Choose the correct answer from the options given below :

    1. AA, D, B, C
    2. BB, C, A, D
    3. CC, B, D, A
    4. DA, C, B, D

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

    Explanation

    In the memory hierarchy the cost per bit rises as we move from secondary storage toward the CPU: magnetic tape (cheapest) then magnetic disk then ROM/semiconductor memory then CPU registers (fastest and most expensive). Increasing order: A, C, B, D.

    Sign in to read the full explanation

    Sign in

18. Question 18

    _______ is not the part of ICT based teaching.

    1. AChalk and talk
    2. BLearning Management System (LMS)
    3. CSmart Boards
    4. DPresentation of Slides

    Answer: (A) Chalk and talk

    Explanation

    'Chalk and talk' is the traditional lecture-and-blackboard method and uses no digital technology. Learning Management Systems, smart boards and slide presentations are all ICT-enabled teaching tools.

    Sign in to read the full explanation

    Sign in

19. Question 19

    Functions of Research Design are :
    A. It does not discuss about any research plan
    B. It provides a blueprint
    C. It does not provide a blueprint
    D. It limits (dictates) boundaries of research activity
    E. It enables investigation to anticipate potential problems
    Choose the correct answer from the options given below :

    1. AA and C Only
    2. BA, B and C Only
    3. CB, D and E Only
    4. DA, C and E Only

    Answer: (C) B, D and E Only

    Explanation

    A research design provides a blueprint for data collection and analysis (B), fixes the boundaries of the study (D), and helps the researcher anticipate problems in advance (E). Statements A and C wrongly deny that the design plans the research or provides a blueprint.

    Sign in to read the full explanation

    Sign in

20. Question 20

    Which of the following is not a level of teaching?

    1. AMemory Power
    2. BReflective
    3. CAnalytical
    4. DUnderstanding

    Answer: (C) Analytical

    Explanation

    The recognised levels of teaching are the memory level, the understanding level and the reflective level. 'Analytical' is not one of these levels.

    Sign in to read the full explanation

    Sign in

21. Question 21

    Which of the following are true about CO2 present in natural waters?
    A. It comes from the atmosphere
    B. It increases the pH of water
    C. It comes due to decomposition of organic material in water by bacteria
    D. It makes water acidic
    E. It results into formation of bicarbonates
    Choose the correct answer from the options given below :

    1. AA, B, D and E Only
    2. BA, C, D and E Only
    3. CB, C and D Only
    4. DA, B, C and E Only

    Answer: (B) A, C, D and E Only

    Explanation

    Dissolved CO2 enters water from the atmosphere (A) and from bacterial decomposition of organic matter (C). It forms carbonic acid, which lowers pH and makes the water acidic (D), and it reacts with minerals to form bicarbonates (E). Because it lowers rather than raises pH, statement B is false.

    Sign in to read the full explanation

    Sign in

22. Question 22

    According to the Classical Indian School of logic (Nyaya), which of the following instrument of knowledge (Pramana) is defined in terms of sense-object concourse (Indriyartha Sannikarsa)?

    1. APratyaksa (perception)
    2. BAnumana (inference)
    3. CUpamana (analogy)
    4. DSabda (verbal testimony)

    Answer: (A) Pratyaksa (perception)

    Explanation

    In Nyaya, perception (pratyaksa) is knowledge that arises from the contact (sannikarsa) of a sense organ with its object. Inference, comparison and verbal testimony are the other three pramanas and none of them depends on direct sense-object contact.

    Sign in to read the full explanation

    Sign in

23. Question 23

    If (L)M represents a number L in base-M number system, which of the numbers A-D given below are equivalent to (BD) in base 16 ?
    A. (275) in base 8
    B. (10111101) in base 2
    C. (189) in base 10
    D. (1223) in base 5
    Choose the correct answer from the options given below :

    1. AA, C and D Only
    2. BB and D Only
    3. CA and B Only
    4. DA, B and C Only

    Answer: (D) A, B and C Only

    Explanation

    Convert every candidate number into base ten and compare it with the target. The hexadecimal value BD means eleven times sixteen plus thirteen, which equals 189. Option A, the octal number 275, equals two times sixty-four plus seven times eight plus five, again 189. Option B, the binary string 10111101, adds the place values 128, 32, 16, 8, 4 and 1, which also totals 189. Option C is already 189 written in decimal form. Option D, the base-five number 1223, equals 125 plus 50 plus 10 plus 3, which is only 188, so it does not match. Hence options A, B and C are the equivalent representations.

    Sign in to read the full explanation

    Sign in

24. Question 24

    Match List - I with List - II.

    List-I (Malware)	List-II (Function)
    A. Keyloggers	I. Gathering information
    B. Adware	II. Does not self replicate
    C. Trojan	III. Generate revenue for its developer
    D. Spyware	IV. Can be either hardware or software

    1. AA-IV, B-III, C-II, D-I
    2. BA-III, B-II, C-I, D-IV
    3. CA-II, B-III, C-IV, D-I
    4. DA-I, B-II, C-IV, D-III

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

    Explanation

    A keylogger can be a hardware device or a software program (IV). Adware displays advertisements to earn revenue for its developer (III). A Trojan disguises itself as legitimate software and does not self-replicate (II). Spyware secretly gathers information about the user (I).

    Sign in to read the full explanation

    Sign in

25. Question 25

    Which of the following power plants is responsible for the significant release of methane (CH4), a green house gas, in the atmosphere?

    1. ANuclear Power Plants
    2. BWind Power Plants
    3. CHydroelectric Power Plants
    4. DSolar Power Plants

    Answer: (C) Hydroelectric Power Plants

    Explanation

    Large hydroelectric reservoirs submerge vegetation and soil; its anaerobic decomposition releases methane, which escapes at the reservoir surface and through the turbines. Nuclear, wind and solar plants have no comparable biological methane emission.

    Sign in to read the full explanation

    Sign in

26. Question 26

    Mean (M) and Variance (V) of different datasets are given in A - D below. Compute the coefficient of variation of each dataset and arrange in ascending order :
    A. M = 80, V = 25
    B. M = 70, V = 256
    C. M = 60, V = 196
    D. M = 90, V = 16
    Choose the correct answer from the options given below :

    1. AD, B, A, C
    2. BB, C, D, A
    3. CD, A, B, C
    4. DC, A, B, D

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

    Explanation

    Coefficient of variation = (standard deviation / mean) * 100, and standard deviation is the square root of variance. A: (5/80)*100 = 6.25%. B: (16/70)*100 = 22.86%. C: (14/60)*100 = 23.33%. D: (4/90)*100 = 4.44%. Ascending order: D, A, B, C.

    Sign in to read the full explanation

    Sign in

27. Question 27

    DIKSHA, SWAYAM and SWAYAMPRABHA are the platforms which also have the provision of _______.

    1. AVirtual library
    2. BVirtual reality
    3. CVirtual memory
    4. DVirtual labs

    Answer: (D) Virtual labs

    Explanation

    NEP 2020 (para 24.4) states that existing e-learning platforms such as DIKSHA, SWAYAM and SWAYAM PRABHA will be leveraged to create virtual labs, so that every student gets equal access to hands-on, experiment-based learning. Virtual labs were launched on DIKSHA in July 2022. 'Virtual reality' and 'virtual memory' are unrelated technical terms, and no 'virtual library' provision is tied to these three platforms as a group.

    Sign in to read the full explanation

    Sign in

28. Question 28

    Match List - I with List - II.

    List-I (Goals of Education)	List-II (Description)
    A. National Integration	I. It includes a spirit of large-hearted tolerance
    B. Development of values among the people	II. Linked with productivity and work-experience
    C. Development of physical resources	III. Ensure inclusive and equitable quality education
    D. Sustainable Development	IV. Harmonizing religions, Language, Colour, caste and Creed etc.

    1. AA-I, B-II, C-III, D-IV
    2. BA-II, B-III, C-IV, D-I
    3. CA-IV, B-I, C-II, D-III
    4. DA-III, B-IV, C-I, D-II

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

    Explanation

    National integration is about harmonising religion, language, colour, caste and creed (IV). Developing values centres on a spirit of large-hearted tolerance (I). Developing physical resources is tied to productivity and work-experience (II). Sustainable development corresponds to inclusive and equitable quality education, echoing SDG-4 (III).

    Sign in to read the full explanation

    Sign in

29. Question 29

    Match List - I with List - II.

    List-I (Films)	List-II (Directors)
    A. Lanka Dahan	I. Satyajit Ray
    B. Pather Panchali	II. Dadasaheb Phalke
    C. Garam Hawa	III. Kamal Amrohi
    D. Pakeezah	IV. M.S. Sathyu

    1. AA-I, B-III, C-II, D-IV
    2. BA-II, B-I, C-IV, D-III
    3. CA-I, B-II, C-III, D-IV
    4. DA-IV, B-III, C-II, D-I

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

    Explanation

    Lanka Dahan (1917) was made by Dadasaheb Phalke (II). Pather Panchali (1955) is by Satyajit Ray (I). Garam Hawa (1973) is by M.S. Sathyu (IV). Pakeezah (1972) is by Kamal Amrohi (III). So A-II, B-I, C-IV, D-III.

    Sign in to read the full explanation

    Sign in

30. Question 30

    If the statements 'All birds are egg-laying animals' is given as true which of the following statements can be inferred to be false?
    A. No egg-laying animals are birds
    B. Some birds are not egg-laying animals
    C. No birds are egg-laying animals
    D. Some birds are non-egg-laying animals
    Choose the correct answer from the options given below :

    1. AB and C Only
    2. BB and D Only
    3. CA and C Only
    4. DA, B, C and D

    Answer: (D) A, B, C and D

    Explanation

    Taking 'All birds are egg-laying animals' (A-type) as true: its contradictory 'Some birds are not egg-laying animals' (B, restated in D) must be false; its contrary 'No birds are egg-laying animals' (C) must be false; and 'No egg-laying animals are birds' (A) is the same E-type claim by conversion and is also false. Hence all four statements are false.

    Sign in to read the full explanation

    Sign in

31. Question 31

    Which of the following is incorrect IP address?

    1. A192.168.178.0
    2. B199.160.0.200
    3. C254.16.192.0
    4. D16.0.256.192

    Answer: (D) 16.0.256.192

    Explanation

    Each of the four octets of an IPv4 address must be in the range 0 to 255. In 16.0.256.192 the third octet is 256, which is out of range, so the address is invalid.

    Sign in to read the full explanation

    Sign in

32. Question 32

    What is the main purpose of research question?

    1. ATo define the scope of the research, i.e, to determine what is to be studied and to what extent it may be studied
    2. BResearch questions are not required to conduct a research
    3. CResearch questions are based on personal experience of the researcher
    4. DResearch questions give clarity about the respondents

    Answer: (A) To define the scope of the research, i.e, to determine what is to be studied and to what extent it may be studied

    Explanation

    A research question focuses the study - it states what will be investigated and how far, and thereby guides the design, data collection and analysis. The other options are either false or trivial.

    Sign in to read the full explanation

    Sign in

33. Question 33

    Rearrange the preplanning of teaching learning process :
    A. Make a list of all the teaching aids that will be used in teaching-learning process
    B. Clearly list all the resources and references that are used in whole teaching-learning process
    C. Make the topics in a sequence manner such that students feel comfortable in the teaching-learning process
    D. Carefully scrutinize the subject matter to be taught by the teacher
    E. Make a list of the important topics that teacher will teach
    Choose the correct answer from the options given below :

    1. AD, E, C, A, B
    2. BE, D, A, B, C
    3. CA, B, C, D
    4. DB, C, A, D, E

    Answer: (A) D, E, C, A, B

    Explanation

    Preplanning moves from scrutinising the subject matter to be taught (D), to listing the important topics (E), to arranging those topics in a comfortable sequence for students (C), to listing the teaching aids (A), and finally listing the resources and references (B). Only option A begins with D, the step that must come first, so the order is D, E, C, A, B.

    Sign in to read the full explanation

    Sign in

34. Question 34

    Grit chamber is the part of which of the following Sewage Treatment process?

    1. APrimary Treatment
    2. BSecondary Treatment
    3. CTertiary Treatment
    4. DBiological Treatment

    Answer: (A) Primary Treatment

    Explanation

    Grit chambers remove sand, gravel and other heavy inorganic solids by sedimentation before biological treatment. This physical removal is part of primary (preliminary) treatment. Secondary/biological treatment handles dissolved organic matter, and tertiary treatment polishes the final effluent.

    Sign in to read the full explanation

    Sign in

35. Question 35

    Arrange the following in order of decreasing connotation.
    A. Natural Science
    B. Physics
    C. Science
    D. Nano science
    Choose the correct answer from the options given below :

    1. AC, A, B, D
    2. BA, C, B, D
    3. CB, D, A, C
    4. DD, B, A, C

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

    Explanation

    Connotation (intension) is the set of attributes a term implies; it grows as a term becomes more specific and its denotation shrinks. From most specific to most general the terms rank: Nano science, Physics, Natural Science, Science. So decreasing connotation is D, B, A, C.

    Sign in to read the full explanation

    Sign in

36. Question 36

    An amount of Rs. 4650 was lent partly at 5% and partly at 8% per annum at simple interest. The total interest received after 3 years was Rs. 900. Find the ratio of the money lent at 5% to that lent at 8%.

    1. A16 : 15
    2. B4 : 7
    3. C7 : 8
    4. D15 : 17

    Answer: (A) 16 : 15

    Explanation

    Let Rs. x be lent at 5%. Then 0.05 * 3 * x + 0.08 * 3 * (4650 - x) = 900, i.e. 0.15x + 1116 - 0.24x = 900, so 0.09x = 216 and x = 2400. The remainder is 4650 - 2400 = 2250. The required ratio is 2400 : 2250 = 16 : 15.

    Sign in to read the full explanation

    Sign in

37. Question 37

    Match List - I with List - II.

    List-I (Question)	List-II (Answer)
    A. If (x + 1/x) = 2, then (x^2 + 1/x^2) = ?	I. 7
    B. If (x - 1)/x = 3, then (1 + 1/x^2) = ?	II. 3
    C. If (x - 1/x) = 1, then (x^2 + 1/x^2) = ?	III. 5
    D. If (x^2 - 1)/(x + 1) = 6, then x = ?	IV. 2

    1. AA-III, B-II, C-IV, D-I
    2. BA-IV, B-III, C-II, D-I
    3. CA-I, B-II, C-III, D-IV
    4. DA-II, B-I, C-III, D-IV

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

    Explanation

    Simplify each identity in List-I and read its value from List-II. Squaring the sum x plus one over x, which equals two, gives x squared plus one over x squared equal to four minus two, namely two, matching IV. From x minus one over x equal to three you obtain one over x equal to minus two, so one plus one over x squared becomes one plus four, which is five, matching III. Squaring x minus one over x equal to one gives x squared plus one over x squared equal to one plus two, namely three, matching II. Finally x squared minus one over x plus one simplifies to x minus one, so x minus one equals six gives x equal to seven, matching I.

    Sign in to read the full explanation

    Sign in

38. Question 38

    The main objective of Rama Rao Committee was to enhance the quality of _______.

    1. AUnder graduate to post doctoral research
    2. BOnly doctoral research
    3. CScience stream at Post-graduate level
    4. DPost-graduate and doctoral research

    Answer: (C) Science stream at Post-graduate level

    Explanation

    The Rama Rao Committee's concern was raising standards in advanced science teaching and research. Among the given choices the best fit is enhancing the quality of the science stream at the post-graduate level (option C), rather than limiting the scope to only doctoral work or widening it to every level from undergraduate to post-doctoral.

    Sign in to read the full explanation

    Sign in

39. Question 39

    Which of the following can neither both be true nor can they both be false?
    A. All ducks are birds
    B. No ducks are birds
    C. Some ducks are birds
    D. Some ducks are not birds
    Choose the correct answer from the options given below :

    1. AB and D Only
    2. BB and C Only
    3. CA and B Only
    4. DC and D Only

    Answer: (B) B and C Only

    Explanation

    A pair that can be neither both true nor both false is a pair of contradictories. 'No ducks are birds' (E-type) and 'Some ducks are birds' (I-type) are contradictories, so exactly one of them must be true. A and B are contraries (can both be false); C and D are sub-contraries (can both be true).

    Sign in to read the full explanation

    Sign in

40. Question 40

    Which of the following is not a service of Internet?

    1. AElectronic mail
    2. BVoice over IP (VoIP)
    3. CHTML
    4. DChat

    Answer: (C) HTML

    Explanation

    Email, VoIP and chat are Internet services that let users communicate. HTML is a markup language used to structure the content of web pages, not a service.

    Sign in to read the full explanation

    Sign in

41. Question 41

    Which logical fallacy is involved in the following statement :
    "The word 'God' is not meaningless ; therefore it has a meaning." ?

    1. AHasty Generalization
    2. BSlippery Slope
    3. CIrrelevant Conclusion
    4. DBegging the question

    Answer: (D) Begging the question

    Explanation

    'Not meaningless' and 'has a meaning' state the same thing, so the conclusion merely restates the premise instead of proving it. Assuming what is to be proved is the fallacy of begging the question (petitio principii).

    Sign in to read the full explanation

    Sign in

42. Question 42

    Find the number that can replace question mark(?) in the series given below :
    1, 6, 15, 28, 45, ?

    1. A72
    2. B66
    3. C73
    4. D63

    Answer: (B) 66

    Explanation

    The successive differences are 5, 9, 13, 17, increasing by 4 each time. The next difference is 21, so the missing term is 45 + 21 = 66. (These are the hexagonal numbers.)

    Sign in to read the full explanation

    Sign in

43. Question 43

    Mohan and Sohan can do a piece of work in 18 days, Sohan and Shyam can do the same work in 24 days and Mohan and Shyam can do the same work in 36 days. How long will Mohan, Sohan and Shyam will take to do the work working together?

    1. A20 days
    2. B18 days
    3. C15 days
    4. D16 days

    Answer: (D) 16 days

    Explanation

    Adding the three pair-rates: 1/18 + 1/24 + 1/36 = 4/72 + 3/72 + 2/72 = 9/72 = 1/8. This sum counts each person twice, so it equals twice the combined rate. The three together work at 1/16 per day and finish in 16 days.

    Sign in to read the full explanation

    Sign in

44. Question 44

    What among the following are known as Assessment instruments?
    A. Tests
    B. Examinations
    C. Rubrics
    D. Work Sheets
    E. Quizzes
    Choose the correct answer from the options given below :

    1. AA, B and E Only
    2. BB, C, D and E Only
    3. CD and E Only
    4. DA, B, D and E Only

    Answer: (D) A, B, D and E Only

    Explanation

    Tests, examinations, worksheets and quizzes are tools used to collect evidence of learning, i.e. assessment instruments. A rubric is a scoring guide used to judge performance on an instrument, not an instrument in itself.

    Sign in to read the full explanation

    Sign in

45. Question 45

    What was the correct sequence of the following gases in terms of their contribution (from maximum to minimum) to Global Warming upto the year 1990 ?
    A. Methane (CH4)
    B. Nitrous Oxide (N2O)
    C. Carbon dioxide (CO2)
    D. Chlorofluoro carbons (CFCs)
    Choose the correct answer from the options given below :

    1. AC, A, D, B
    2. BC, A, B, D
    3. CD, C, B, A
    4. DD, B, A, C

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

    Explanation

    Up to 1990 the estimated contributions to the enhanced greenhouse effect were roughly: carbon dioxide about 55-60%, methane about 15-20%, CFCs about 12-14%, and nitrous oxide about 5-6%. In decreasing order this is CO2, CH4, CFCs, N2O - option A.

    Sign in to read the full explanation

    Sign in

46. Question 46

    Why should people who overeat refrain from doing so?

    Over-eating is one of the most surprising practices among those who think they can afford it. In fact, authorities say that nearly all who can get as much as they desire, over-eat to their disadvantage. This class of people could save a great amount of food by missing one meal per week and at the same time they could improve their health. A heavy meal at night, the so-called 'dinner', is the fashion with many and is often taken shortly before retiring to bed. It is unnecessary and could be forgone, not only once a week but daily without loss of strength. Three to five hours are needed to digest food. While sleeping, this food not being required to give energy for work, is in many cases converted into excess fat, giving rise to excess weight. The evening meal should be light, taken three or four hours before retiring. This prevents over-eating, conserves energy, and reduces one's expenditure on food.

    1. ABecause overeating leads to muscle gain
    2. BBecause overeating is detrimental to health
    3. CBecause overeating conserves food
    4. DBecause overeating is an unethical practice

    Answer: (B) Because overeating is detrimental to health

    Explanation

    The passage says people 'over-eat to their disadvantage', that eating less would 'improve their health', and that undigested food at night is 'converted into excess fat, giving rise to excess weight'. The harm is to health. Overeating wastes rather than conserves food, and the passage makes no claim about muscle gain or ethics.

    Sign in to read the full explanation

    Sign in

47. Question 47

    According to the passage, people overeat because _______.

    Over-eating is one of the most surprising practices among those who think they can afford it. In fact, authorities say that nearly all who can get as much as they desire, over-eat to their disadvantage. This class of people could save a great amount of food by missing one meal per week and at the same time they could improve their health. A heavy meal at night, the so-called 'dinner', is the fashion with many and is often taken shortly before retiring to bed. It is unnecessary and could be forgone, not only once a week but daily without loss of strength. Three to five hours are needed to digest food. While sleeping, this food not being required to give energy for work, is in many cases converted into excess fat, giving rise to excess weight. The evening meal should be light, taken three or four hours before retiring. This prevents over-eating, conserves energy, and reduces one's expenditure on food.

    1. Athey can afford it
    2. Bthey feel like eating
    3. Cthey have to work more
    4. Dthey want energy to be conserved

    Answer: (A) they can afford it

    Explanation

    The opening lines describe over-eating as a practice 'among those who think they can afford it' and note that 'nearly all who can get as much as they desire, over-eat'. The stated reason is the ability to afford food, not hunger or work.

    Sign in to read the full explanation

    Sign in

48. Question 48

    What is the most appropriate time for having evening meal?

    Over-eating is one of the most surprising practices among those who think they can afford it. In fact, authorities say that nearly all who can get as much as they desire, over-eat to their disadvantage. This class of people could save a great amount of food by missing one meal per week and at the same time they could improve their health. A heavy meal at night, the so-called 'dinner', is the fashion with many and is often taken shortly before retiring to bed. It is unnecessary and could be forgone, not only once a week but daily without loss of strength. Three to five hours are needed to digest food. While sleeping, this food not being required to give energy for work, is in many cases converted into excess fat, giving rise to excess weight. The evening meal should be light, taken three or four hours before retiring. This prevents over-eating, conserves energy, and reduces one's expenditure on food.

    1. ATwo hours before the sunset
    2. BSoon after the sunset
    3. CThree or four hours before going to bed
    4. Djust before sleeping

    Answer: (C) Three or four hours before going to bed

    Explanation

    The passage states directly that 'the evening meal should be light, taken three or four hours before retiring', because three to five hours are needed to digest food before sleep.

    Sign in to read the full explanation

    Sign in

49. Question 49

    The writer wants the readers :

    Over-eating is one of the most surprising practices among those who think they can afford it. In fact, authorities say that nearly all who can get as much as they desire, over-eat to their disadvantage. This class of people could save a great amount of food by missing one meal per week and at the same time they could improve their health. A heavy meal at night, the so-called 'dinner', is the fashion with many and is often taken shortly before retiring to bed. It is unnecessary and could be forgone, not only once a week but daily without loss of strength. Three to five hours are needed to digest food. While sleeping, this food not being required to give energy for work, is in many cases converted into excess fat, giving rise to excess weight. The evening meal should be light, taken three or four hours before retiring. This prevents over-eating, conserves energy, and reduces one's expenditure on food.

    1. Ato skip heavy dinner and take light evening meal instead
    2. Bnot to eat anything at night
    3. Cto take food once a day
    4. Dto take meal before the sunset

    Answer: (A) to skip heavy dinner and take light evening meal instead

    Explanation

    The writer criticises the heavy night-time 'dinner' as unnecessary and advises that 'the evening meal should be light'. The recommendation is to replace a heavy dinner with a light evening meal, not to fast at night or eat only once a day.

    Sign in to read the full explanation

    Sign in

50. Question 50

    According to the passage how many times in a day one is expected to have food?

    Over-eating is one of the most surprising practices among those who think they can afford it. In fact, authorities say that nearly all who can get as much as they desire, over-eat to their disadvantage. This class of people could save a great amount of food by missing one meal per week and at the same time they could improve their health. A heavy meal at night, the so-called 'dinner', is the fashion with many and is often taken shortly before retiring to bed. It is unnecessary and could be forgone, not only once a week but daily without loss of strength. Three to five hours are needed to digest food. While sleeping, this food not being required to give energy for work, is in many cases converted into excess fat, giving rise to excess weight. The evening meal should be light, taken three or four hours before retiring. This prevents over-eating, conserves energy, and reduces one's expenditure on food.

    1. AThree times in a day
    2. BTwo times in a day
    3. COnce in a day
    4. DNot clearly specified

    Answer: (D) Not clearly specified

    Explanation

    The passage talks about missing one meal a week, keeping the evening meal light, and the three to five hours needed to digest food, but it never states how many meals a day a person should eat. Because the number is not given anywhere in the text, the correct choice is 'Not clearly specified'.

    Sign in to read the full explanation

    Sign in

100 questions with the answer key and explanations.

1. Question 1

   Match List-I with List-II.

   List-I (Organisation)	List-II (Year)
   A. OECD	I. 1961
   B. ASEAN	II. 1981
   C. SAARC	III. 1967
   D. NAFTA	IV. 1992

   Regional/economic organisations and their year of establishment

   1. AA-I, B-III, C-II, D-IV
   2. BA-II, B-III, C-IV, D-I
   3. CA-II, B-I, C-IV, D-III
   4. DA-II, B-III, C-I, D-IV

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

   Explanation

   OECD was founded in 1961 (succeeding the OEEC), ASEAN in 1967 (Bangkok Declaration), the SAARC process began with the 1981 meeting of foreign secretaries before its 1985 charter, and NAFTA was signed in 1992 (in force 1994). Only option A pairs OECD with 1961, which fixes the whole sequence.

   Sign in to read the full explanation

   Sign in

2. Question 2

   Arrange the following books according to year of publication (latest to earliest):

   A. Theory of Moral Sentiments
   B. The Principles of Political Economy and Taxation
   C. Value of Capital
   D. General Theory of Employment, Interest and Money

   Choose the correct answer from the options given below:

   1. AD, B, A, C
   2. BD, B, C, A
   3. CC, A, D, B
   4. DC, D, B, A

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

   Explanation

   Hicks's 'Value and Capital' (1939) is the most recent, followed by Keynes's 'General Theory' (1936), then Ricardo's 'Principles of Political Economy and Taxation' (1817), and Adam Smith's 'Theory of Moral Sentiments' (1759) is the oldest. Latest-to-earliest order is C, D, B, A.

   Sign in to read the full explanation

   Sign in

3. Question 3

   Arrange the following schemes according to year of initiation (earliest to latest):

   A. Community Development Programme
   B. Integrated Rural Development Programme
   C. Jawahar Rojgar Yojana
   D. Mahatma Gandhi National Rural Employment Guarantee Act

   Choose the correct answer from the options given below:

   1. AA, D, B, C
   2. BA, C, B, D
   3. CA, B, C, D
   4. DA, B, D, C

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

   Explanation

   The Community Development Programme was launched in 1952, IRDP in 1978-79, Jawahar Rojgar Yojana in 1989, and MGNREGA in 2005. The correct chronological order is therefore A, B, C, D.

   Sign in to read the full explanation

   Sign in

4. Question 4

   In Classical Employment Theory, an increase in money supply will lead to:

   A. Increase in National Output
   B. Increase in Price Level
   C. Decrease in Wage Rate
   D. Improvement in Technology and Knowledge

   Choose the correct answer from the options given below:

   1. AA and B Only
   2. BA and D Only
   3. CC Only
   4. DB Only

   Answer: (D) B Only

   Explanation

   The classical system assumes full employment and the classical dichotomy: money is neutral. Through the quantity theory (MV = PT), a rise in money supply raises only the price level proportionately, leaving real output, employment and the real wage unchanged. Hence only statement B is correct.

   Sign in to read the full explanation

   Sign in

5. Question 5

   Which one of the following is NOT true about the product line (isocline/scale line on an isoquant map)?

   1. AThe product line passes through the origin if all factors are variable
   2. BIf only one factor is variable, the product line is a straight line parallel to the axis of the variable factor
   3. CWhen K is constant, the K/L ratio diminishes along the product line
   4. DThe product line has a downward slope from left to right

   Answer: (D) The product line has a downward slope from left to right

   Explanation

   For a homogeneous production function the isoclines (product lines) are straight rays through the origin, and with one factor fixed the product line is parallel to the variable factor's axis; with K fixed and L rising the K/L ratio clearly falls. Product lines/expansion paths are positively (upward) sloped because scaling output uses more of both inputs, so 'downward slope' is the false statement.

   Sign in to read the full explanation

   Sign in

6. Question 6

   Match List-I with List-II.

   List-I	List-II
   A. Uncertainty Theory	I. Cournot
   B. Duopoly Model	II. Paul Sweezy
   C. Edgeworth Diagram used for the first time	III. Pareto
   D. Kinked Demand Curve Hypothesis	IV. Von Neumann and Morgenstern

   Micro-economic concepts and the economists associated with them

   1. AA-I, B-II, C-IV, D-III
   2. BA-IV, B-I, C-III, D-II
   3. CA-I, B-IV, C-II, D-III
   4. DA-I, B-II, C-III, D-IV

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

   Explanation

   Expected-utility analysis of choice under uncertainty is due to von Neumann and Morgenstern; the first duopoly model is Cournot's; Pareto was the first to use the Edgeworth box diagram in his work; and the kinked demand curve hypothesis of price rigidity is associated with Paul Sweezy. This gives A-IV, B-I, C-III, D-II.

   Sign in to read the full explanation

   Sign in

7. Question 7

   Match List-I with List-II.

   List-I (Tool)	List-II (Use)
   A. First Order Differentiation	I. To find Maxima or Minima
   B. Second Order Differentiation	II. To find solution of Input-output model
   C. Matrix	III. To find area between two points on a non-linear curve
   D. Definite Integration	IV. To find rate of change

   Mathematical tools and their economic applications

   1. AA-IV, B-II, C-I, D-III
   2. BA-IV, B-I, C-II, D-III
   3. CA-III, B-I, C-II, D-IV
   4. DA-III, B-II, C-IV, D-I

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

   Explanation

   The first derivative measures the rate of change (IV); the second-order derivative test identifies maxima or minima (I); matrix algebra solves the Leontief input-output system (II); and a definite integral gives the area under a non-linear curve between two points (III). Hence A-IV, B-I, C-II, D-III.

   Sign in to read the full explanation

   Sign in

8. Question 8

   According to Hall and Hitch, the behaviour of the Kinked Demand Curve in the context of price in an oligopolistic market is:

   A. Determination of the price and output in oligopolistic market
   B. Rigidity of the price in oligopolistic market
   C. Rigidity in quantity
   D. Price and quantity flexibility

   Choose the correct answer from the options given below:

   1. AA and B Only
   2. BA and C Only
   3. CB Only
   4. DC and D Only

   Answer: (C) B Only

   Explanation

   The kinked demand curve explains why an oligopoly price, once established, tends to stay unchanged: rivals match price cuts but not price rises, so the marginal revenue curve is discontinuous and the firm has no incentive to move. A standard criticism (Stigler) is that it explains price rigidity but does NOT explain how the prevailing price itself is determined, so only statement B applies.

   Sign in to read the full explanation

   Sign in

9. Question 9

   Which of the following are parts of the Foreign Exchange Reserves in India?

   A. Foreign Currency Assets
   B. Gold
   C. Foreign currency and securities held by cooperative banks and bodies
   D. Foreign currency held by commercial banks

   Choose the correct answer from the options given below:

   1. AA and B Only
   2. BB and C Only
   3. CC and D Only
   4. DA and D Only

   Answer: (A) A and B Only

   Explanation

   India's foreign exchange reserves, held by the RBI, comprise Foreign Currency Assets, Gold, Special Drawing Rights (SDRs) and the Reserve Tranche Position with the IMF. Foreign currency held by commercial or cooperative banks is not part of the country's official reserves.

   Sign in to read the full explanation

   Sign in

10. Question 10

    Match List-I with List-II.

    List-I	List-II
    A. Kennedy Round	I. 1964-1967
    B. Tokyo Round	II. 1995
    C. GATT Round	III. 1973-1979
    D. WTO Round	IV. 1948

    Trade negotiation rounds and their years

    1. AA-I, B-III, C-II, D-IV
    2. BA-I, B-III, C-IV, D-II
    3. CA-IV, B-II, C-I, D-III
    4. DA-III, B-IV, C-I, D-II

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

    Explanation

    The Kennedy Round of GATT negotiations ran 1964-1967, the Tokyo Round 1973-1979, GATT itself came into being in 1948, and the WTO was established in 1995 (the Uruguay Round outcome). This gives A-I, B-III, C-IV, D-II.

    Sign in to read the full explanation

    Sign in

11. Question 11

    Which of the following levels of utilization is considered as "Normal" by a firm (in full-cost / normal-cost pricing)?

    1. AThe reserve capacity
    2. BThe optimal capacity
    3. CThe excess capacity
    4. DThe load factor

    Answer: (A) The reserve capacity

    Explanation

    In full-cost pricing, the firm computes average cost and adds a mark-up at a planned 'normal' rate of output that deliberately leaves a cushion of reserve (planned excess) capacity to meet demand fluctuations. Normal utilization is therefore the level associated with maintaining reserve capacity, not full or optimum capacity.

    Sign in to read the full explanation

    Sign in

12. Question 12

    Chamberlin's solution to the oligopoly problem is similar to the one provided by:

    1. AAugustin Cournot
    2. BPaul M. Sweezy
    3. CV. Stackelberg
    4. DIra Horowitz

    Answer: (A) Augustin Cournot

    Explanation

    Chamberlin's small-group model is built directly on Cournot's quantity-adjustment framework; the key difference is that Chamberlin's sellers recognise their mutual interdependence and therefore reach the joint profit-maximising (monopoly) price and share output, whereas Cournot's firms ignore interdependence. The analytical structure, however, is Cournot's.

    Sign in to read the full explanation

    Sign in

13. Question 13

    Which of the following limits the credit creation of commercial banks?

    A. Fixed and demand deposits
    B. Debts
    C. Reserves with the central bank
    D. Cash in hand

    Choose the correct answer from the options given below:

    1. AA and B Only
    2. BB and C Only
    3. CC and D Only
    4. DA and D Only

    Answer: (C) C and D Only

    Explanation

    The multiple expansion of deposits is constrained by the cash base of banks - vault cash (cash in hand) plus balances kept as reserves with the central bank (CRR). The lower the reserve ratio, the larger the credit multiplier; so it is the cash reserves that set the limit.

    Sign in to read the full explanation

    Sign in

14. Question 14

    In the Purchasing Power Parity Theory, the exchange rate (R) is calculated by which of the following?

    1. AR = Domestic price of a foreign currency in the base period x (Domestic Price Index / Foreign Price Index)
    2. BR = Foreign Currency / Foreign Price Index
    3. CR = Domestic Price / Foreign Price Index
    4. DR = Foreign Price Index / Domestic Price Index

    Answer: (A) R = Domestic price of a foreign currency in the base period x (Domestic Price Index / Foreign Price Index)

    Explanation

    Relative PPP states that the new equilibrium rate equals the base-period rate scaled by the ratio of the two countries' price indices: R1 = R0 x (P_domestic / P_foreign). If domestic prices rise faster than foreign prices, the domestic currency depreciates, so the domestic-price index is in the numerator.

    Sign in to read the full explanation

    Sign in

15. Question 15

    Which of the following is NOT an assumption of the Revealed Preference Hypothesis?

    1. ARationality
    2. BOptimal Choice
    3. CTransitivity
    4. DConsistency

    Answer: (B) Optimal Choice

    Explanation

    Samuelson's revealed preference theory rests on rationality, consistency (the weak axiom), transitivity (the strong axiom) and the two-commodity model - deriving demand from observed choices without introspective utility. 'Optimal choice' is not one of its stated assumptions.

    Sign in to read the full explanation

    Sign in

16. Question 16

    Arrange the following theories of Limit Pricing from earliest to latest:

    A. Franco Modigliani Model
    B. Pashigian Model
    C. Sylos-Labini Model
    D. Bhagwati Model

    Choose the correct answer from the options given below:

    1. AA, C, D, B
    2. BC, A, D, B
    3. CC, D, B, A
    4. DA, D, B, C

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

    Explanation

    Sylos-Labini's model appeared in 1957, Modigliani's synthesis in 1958, Pashigian's contribution in 1968 and Bhagwati's model in 1970. The earliest-to-latest order is therefore C, A, B, D.

    Sign in to read the full explanation

    Sign in

17. Question 17

    Arrange the following schemes/programmes according to launching year (earliest to latest):

    A. PM Jan Man Yojana
    B. Swayam Prabha
    C. PM Rojgar Protsahan Yojana
    D. PM Fasal Bima Yojana

    Choose the correct answer from the options given below:

    1. AD, C, B, A
    2. BA, D, B, C
    3. CC, A, D, B
    4. DD, C, A, B

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

    Explanation

    PM Fasal Bima Yojana was launched in early 2016, PM Rojgar Protsahan Yojana in August 2016, the Swayam Prabha DTH channels around 2016-17, and PM-JANMAN (for particularly vulnerable tribal groups) in November 2023. Earliest to latest is D, C, B, A.

    Sign in to read the full explanation

    Sign in

18. Question 18

    The study of poverty was made by which of the following?

    A. Y. K. Alagh
    B. S. Tendulkar
    C. C. Rangarajan
    D. I. J. Ahluwalia

    Choose the correct answer from the options given below:

    1. AA and B Only
    2. BA and C Only
    3. CB, C and D Only
    4. DA, B, C and D

    Answer: (D) A, B, C and D

    Explanation

    The Y. K. Alagh Committee (1979), the Tendulkar Committee (2009) and the Rangarajan Committee (2014) all defined official poverty lines/measures for India, and Ahluwalia's work on rural poverty and agricultural performance (1978) is a landmark poverty study. Since the famous Tendulkar and Rangarajan committees cannot be excluded, the answer must include all four.

    Sign in to read the full explanation

    Sign in

19. Question 19

    Arrange the following International Trade theories in order of development (earliest to latest):

    A. Factor Endowment Theory
    B. Comparative Cost Advantage Theory
    C. Haberler's Theory of Opportunity Cost
    D. Absolute Cost Advantage Theory

    Choose the correct answer from the options given below:

    1. AD, B, A, C
    2. BB, A, D, C
    3. CD, B, C, A
    4. DB, A, C, D

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

    Explanation

    Adam Smith's absolute cost advantage (1776) came first, then Ricardo's comparative cost advantage (1817), then the Heckscher-Ohlin factor-endowment theory (Heckscher 1919, Ohlin 1933), and finally Haberler's opportunity-cost restatement (1936). Earliest to latest is D, B, A, C.

    Sign in to read the full explanation

    Sign in

20. Question 20

    Which of the following are functions of the World Trade Organisation (WTO)?

    A. Administering trade agreements among the nations
    B. Monitoring national trade policies
    C. Mediating in trade disputes
    D. Technical assistance and training

    Choose the correct answer from the options given below:

    1. AA, B and C Only
    2. BA, B and D Only
    3. CA, B, C and D
    4. DB and D Only

    Answer: (C) A, B, C and D

    Explanation

    The WTO administers WTO trade agreements, is a forum for trade negotiations, handles trade disputes, monitors national trade policies through the Trade Policy Review Mechanism, and provides technical assistance and training for developing countries. All four functions listed are correct.

    Sign in to read the full explanation

    Sign in

21. Question 21

    The Human Development Index (HDI) prepared by UNDP has the following components:

    A. Life Expectancy
    B. Literacy
    C. Infant Mortality
    D. Per-capita Income

    Choose the correct answer from the options given below:

    1. AA, B and C Only
    2. BB, C and D Only
    3. CA, B, C and D
    4. DA, B and D Only

    Answer: (D) A, B and D Only

    Explanation

    The original HDI (1990) combines a long and healthy life (life expectancy), knowledge (adult literacy and enrolment) and a decent standard of living (per-capita income, PPP). Infant mortality is not one of the HDI dimensions, so the correct combination is A, B and D.

    Sign in to read the full explanation

    Sign in

22. Question 22

    Match List-I with List-II.

    List-I (Test)	List-II (Purpose)
    A. Cronbach's alpha Test	I. Reliability / rationality of data
    B. Goldfeld-Quandt Test	II. Heteroscedasticity
    C. F-Test	III. Stationarity of a series
    D. Augmented Dickey-Fuller Test	IV. Overall significance of regression

    Statistical tests and what they detect

    1. AA-III, B-II, C-I, D-IV
    2. BA-I, B-II, C-IV, D-III
    3. CA-II, B-III, C-I, D-IV
    4. DA-IV, B-II, C-I, D-III

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

    Explanation

    Cronbach's alpha assesses reliability/consistency of data; the Goldfeld-Quandt test detects heteroscedasticity; the F-test evaluates the overall significance of a regression; and the Augmented Dickey-Fuller test checks the stationarity of a time series. This yields A-I, B-II, C-IV, D-III.

    Sign in to read the full explanation

    Sign in

23. Question 23

    The reason for expansion of the Gig Economy in India is:

    A. Significant growth occurs in online business
    B. Preference for work from home
    C. To hire project specific consultants
    D. Increase in organized sector employment

    Choose the correct answer from the options given below:

    1. AA, B and C Only
    2. BC and D Only
    3. CB Only
    4. DA and D Only

    Answer: (A) A, B and C Only

    Explanation

    The gig economy has grown with the spread of online/platform businesses, workers' preference for flexible and work-from-home arrangements, and firms' demand for task- or project-specific talent. It is a feature of informal/flexible work, so a rise in organized-sector employment is not a driver.

    Sign in to read the full explanation

    Sign in

24. Question 24

    Match List-I (Author) with List-II (Book).

    List-I (Author)	List-II (Book)
    A. E. D. Domar	I. Contribution to the Theory of Economic Growth
    B. N. Kaldor	II. Essays on Economic Stability and Growth
    C. R. M. Solow	III. The Accumulation of Capital
    D. Mrs. J. Robinson	IV. Expansion and Employment

    Growth economists and their works

    1. AA-IV, B-II, C-III, D-I
    2. BA-I, B-II, C-IV, D-III
    3. CA-IV, B-II, C-I, D-III
    4. DA-III, B-II, C-I, D-IV

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

    Explanation

    Domar's famous 1947 article is 'Expansion and Employment'; Kaldor wrote 'Essays on Economic Stability and Growth' (1960); Solow's 1956 paper is 'A Contribution to the Theory of Economic Growth'; and Joan Robinson wrote 'The Accumulation of Capital' (1956). Hence A-IV, B-II, C-I, D-III.

    Sign in to read the full explanation

    Sign in

25. Question 25

    Match List-I with List-II.

    List-I (Scheme)	List-II (Focus area)
    A. Credit Linked Capital Subsidy Scheme	I. Start Up India
    B. Production Linked Incentive	II. MSME
    C. Funds of Funds	III. Food Products
    D. Atal Innovation Mission	IV. Technology Upgradation

    Government schemes and their focus areas

    1. AA-IV, B-III, C-II, D-I
    2. BA-IV, B-II, C-III, D-I
    3. CA-I, B-IV, C-III, D-II
    4. DA-II, B-IV, C-I, D-III

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

    Explanation

    The Credit Linked Capital Subsidy Scheme supports technology upgradation of small units; the Production Linked Incentive scheme referred to here is the one for the food products sector; the Fund of Funds (Self-Reliant India Fund) provides equity support to MSMEs; and the Atal Innovation Mission nurtures start-ups and incubation. Hence A-IV, B-III, C-II, D-I.

    Sign in to read the full explanation

    Sign in

26. Question 26

    Capital receipts of the Union Government do NOT include the following items:

    A. Tax Revenue
    B. Non-Tax Revenue
    C. Debts
    D. Small Savings
    E. Interest Payment

    Choose the correct answer from the options given below:

    1. AA, B and E Only
    2. BC and E Only
    3. CA, C, D and E Only
    4. DB and E Only

    Answer: (A) A, B and E Only

    Explanation

    Capital receipts consist of borrowings (debts), small savings, provident funds, disinvestment proceeds and recoveries of loans. Tax revenue and non-tax revenue are revenue receipts, and interest payment is an item of expenditure, not a receipt at all - so A, B and E are not capital receipts.

    Sign in to read the full explanation

    Sign in

27. Question 27

    According to the Wealth Theory of Consumption of Ando and Modigliani (Life-Cycle Hypothesis), consumption is a function of:

    A. Lifetime expected income of the consumer
    B. Present value of the consumer's future expected income
    C. Future value of assets
    D. Present value of assets

    Choose the correct answer from the options given below:

    1. AB, C and D Only
    2. BA, B and C Only
    3. CA, C and D Only
    4. DA, B and D Only

    Answer: (D) A, B and D Only

    Explanation

    In the life-cycle model, planned consumption is spread over the lifetime out of total resources: human wealth, measured as the present value of expected labour income over the working life, plus non-human wealth, measured as the present value of assets currently held. It uses present (discounted) values, not the future value of assets.

    Sign in to read the full explanation

    Sign in

28. Question 28

    Arrange the following Trade Cycle theories from earliest to latest:

    A. Hicksian Theory
    B. Samuelson Model
    C. Goodwin Model
    D. Cobweb Theory

    Choose the correct answer from the options given below:

    1. AA, C, B, D
    2. BA, B, C, D
    3. CD, A, B, C
    4. DD, B, A, C

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

    Explanation

    The cobweb model dates from the early 1930s, Samuelson's multiplier-accelerator interaction model from 1939, Hicks's trade cycle theory from 1950, and Goodwin's growth-cycle model from 1967. Earliest to latest is D, B, A, C.

    Sign in to read the full explanation

    Sign in

29. Question 29

    Match List-I with List-II.

    List-I	List-II
    A. Area under Normal Curve above the mean	I. beta-1 = 0
    B. Square of Standard Deviation	II. 50%
    C. Symmetric Distribution	III. (sigma / mean) x 100
    D. Coefficient of Variation	IV. Variance

    Statistical concepts and their values/definitions

    1. AA-II, B-IV, C-I, D-III
    2. BA-II, B-III, C-I, D-IV
    3. CA-III, B-II, C-IV, D-I
    4. DA-IV, B-III, C-II, D-I

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

    Explanation

    For a normal (symmetric) distribution exactly 50% of the area lies above the mean; variance is the square of the standard deviation; a symmetric distribution has the skewness measure beta-1 equal to 0; and the coefficient of variation is (sigma / mean) x 100. Hence A-II, B-IV, C-I, D-III.

    Sign in to read the full explanation

    Sign in

30. Question 30

    Arrange the following according to the appointment of the Chairman of the Finance Commission (earliest to latest):

    A. Arvind Panagariya
    B. K. C. Neogy
    C. K. Brahmananda Reddy
    D. N. K. P. Salve

    Choose the correct answer from the options given below:

    1. AB, C, D, A
    2. BB, C, A, D
    3. CD, B, C, A
    4. DD, C, A, B

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

    Explanation

    K. C. Neogy chaired the First Finance Commission (1951), K. Brahmananda Reddy the Ninth (1987), N. K. P. Salve the Tenth (1992), and Arvind Panagariya the Sixteenth (constituted 2023). Earliest to latest is B, C, D, A.

    Sign in to read the full explanation

    Sign in

31. Question 31

    To calculate the work participation rate, data are used for main workers and marginal workers. Here, marginal workers are those who had not worked for a period of:

    1. ALess than 9 months
    2. BLess than 6 months
    3. CLess than 3 months
    4. DLess than 2 months

    Answer: (B) Less than 6 months

    Explanation

    In the Indian Census, a main worker is one who worked for the major part of the reference year (183 days or more, i.e. about 6 months), while a marginal worker is one who worked for less than 6 months (less than 183 days) in the year.

    Sign in to read the full explanation

    Sign in

32. Question 32

    As per the Arthur Lewis Model, reinvestment of surplus income over wages results in:

    A. Increase in production
    B. Increase in labour productivity
    C. Increase in employment
    D. Price increase

    Choose the correct answer from the options given below:

    1. AA, B and D Only
    2. BA, C and D Only
    3. CB, C and D Only
    4. DA, B and C Only

    Answer: (B) A, C and D Only

    Explanation

    In the Lewis model the capitalists reinvest their profits (surplus over the subsistence wage), which expands the capitalist sector, draws more surplus labour out of agriculture (rising employment) and raises output. As the agricultural surplus is squeezed and food/terms-of-trade pressures build, prices tend to rise as well - giving A, C and D.

    Sign in to read the full explanation

    Sign in

33. Question 33

    Arrange the following Criteria of Social Welfare from latest to earliest:

    A. Pareto Optimality Criterion
    B. Bergson Criterion
    C. Kaldor-Hicks Compensation Criterion
    D. Bentham Criterion

    Choose the correct answer from the options given below:

    1. AC, B, A, D
    2. BB, C, A, D
    3. CA, C, B, D
    4. DB, D, C, A

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

    Explanation

    Bentham's utilitarian criterion dates to the late 18th century, Pareto's optimality criterion to around 1906, Bergson's social welfare function to 1938, and the Kaldor-Hicks compensation criterion to 1939. Latest to earliest is therefore C, B, A, D.

    Sign in to read the full explanation

    Sign in

34. Question 34

    Arrange the following Schemes and Programmes according to their launching year (earlier to latest):

    A. PM Vishwakarma Yojana
    B. One Nation One Subscription
    C. PM SVANidhi Yojana
    D. PM Poshan Shakti Nirman Abhiyan

    Choose the correct answer from the options given below:

    1. AA, B, C, D
    2. BB, C, D, A
    3. CD, C, A, B
    4. DD, C, B, A

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

    Explanation

    PM SVANidhi (street-vendor micro-credit) began in June 2020, PM POSHAN (renamed mid-day meal scheme) in September 2021, PM Vishwakarma (artisans) in September 2023, and One Nation One Subscription (approved November 2024) came into effect from 2025. Earliest to latest is C, D, A, B.

    Sign in to read the full explanation

    Sign in

35. Question 35

    What is the formula of the Super Multiplier?

    1. AK = 1 / (1 - MPC - MPI)
    2. BK = 1 / (1 - MPC + MPI)
    3. CK = 1 / (1 - MPC - MEC)
    4. DK = 1 / (1 - MPC + MEC)

    Answer: (A) K = 1 / (1 - MPC - MPI)

    Explanation

    The super multiplier combines the ordinary investment multiplier with induced (accelerator) investment. Because induced investment adds a further injection, the marginal propensity to invest (MPI) is subtracted in the denominator along with the marginal propensity to consume: K = 1 / (1 - MPC - MPI), making the multiplier larger than the simple 1 / (1 - MPC).

    Sign in to read the full explanation

    Sign in

36. Question 36

    Match List-I with List-II.

    List-I (Concept)	List-II (Economist)
    A. Optimal Income Taxation	I. Dalton
    B. Maximum Social Welfare Theory	II. A. P. Lerner
    C. Functional Finance	III. Peter Pyhrr
    D. Zero Based Budget	IV. F. Ramsey

    Public finance concepts and the economists associated with them

    1. AA-II, B-III, C-IV, D-I
    2. BA-I, B-II, C-III, D-IV
    3. CA-IV, B-I, C-II, D-III
    4. DA-IV, B-II, C-I, D-III

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

    Explanation

    Optimal income taxation is associated with F. Ramsey; the principle of maximum social advantage/welfare with Dalton; functional finance with A. P. Lerner; and zero-based budgeting with Peter Pyhrr. Hence A-IV, B-I, C-II, D-III.

    Sign in to read the full explanation

    Sign in

37. Question 37

    High Powered Money consists of:

    A. Currency held by the public
    B. Required reserves of commercial banks
    C. Excess reserves of commercial banks
    D. Currency held by foreigners

    Choose the correct answer from the options given below:

    1. AA, B and C Only
    2. BB, C and D Only
    3. CC and D Only
    4. DA and D Only

    Answer: (A) A, B and C Only

    Explanation

    High-powered money (the monetary base) equals currency held by the public plus the cash reserves of banks - both required and excess reserves - plus other deposits with the central bank. Currency held by foreigners is not part of the domestic monetary base, so the answer is A, B and C.

    Sign in to read the full explanation

    Sign in

38. Question 38

    Which of the following propositions of demand for money in Keynesian theory has a distinct break from the classical theory of demand for money?

    1. ATransaction purpose for demand for money
    2. BPrecautionary purpose for demand for money
    3. CSpeculative purpose for demand for money
    4. DFiat demand for money

    Answer: (C) Speculative purpose for demand for money

    Explanation

    Classical quantity theory treated money purely as a medium of exchange, so demand was essentially transactions demand tied to income. Keynes's distinctive contribution was the speculative (asset) demand for money, which depends inversely on the rate of interest and makes the demand for money interest-elastic.

    Sign in to read the full explanation

    Sign in

39. Question 39

    Which of the following tests is NOT used to detect Heteroscedasticity?

    1. APark Test
    2. BGlejser Test
    3. CGoldfeld-Quandt Test
    4. DDurbin-Watson Test

    Answer: (D) Durbin-Watson Test

    Explanation

    The Park, Glejser, Goldfeld-Quandt, White and Breusch-Pagan tests are all used to detect non-constant error variance (heteroscedasticity). The Durbin-Watson statistic tests for first-order autocorrelation (serial correlation) of the residuals, not heteroscedasticity.

    Sign in to read the full explanation

    Sign in

40. Question 40

    Which of the following factors is NOT associated with the Terms of Trade in international trade?

    1. AEconomic Growth
    2. BChange in demand for exports and imports
    3. CTariffs
    4. DDepreciation

    Answer: (D) Depreciation

    Explanation

    The commodity (net barter) terms of trade is a real relative-price concept (Px/Pm). It is shaped by reciprocal demand and elasticities (changes in demand for exports and imports), by economic growth (immiserising growth), and by tariffs (the optimum-tariff argument). A nominal currency depreciation changes the exchange rate and balance of payments rather than being a listed determinant of the terms of trade.

    Sign in to read the full explanation

    Sign in

41. Question 41

    Gender Budget explains that it is:

    A. A separate budget for females
    B. A gender discrimination budget
    C. A technique for gender empowerment
    D. A separate budget from the union budget

    Choose the correct answer from the options given below:

    1. AA and B Only
    2. BC Only
    3. CC and D Only
    4. DB and C Only

    Answer: (B) C Only

    Explanation

    Gender budgeting is not a separate budget for women; it is a tool for mainstreaming a gender perspective into the regular budget - assessing how allocations affect women and promoting gender equality and empowerment. Hence only statement C is correct.

    Sign in to read the full explanation

    Sign in

42. Question 42

    Match List-I with List-II.

    List-I	List-II
    A. Michael Thomas Sadler	I. Population Density
    B. Henry George	II. Labour Wage Link
    C. D. Ricardo	III. Higher protein intake reduces fecundity
    D. Castro	IV. Human tendency to provide subsistence for the increased number of people

    Population theorists and their ideas

    1. AA-I, B-III, C-IV, D-II
    2. BA-II, B-III, C-I, D-IV
    3. CA-II, B-III, C-IV, D-I
    4. DA-I, B-IV, C-II, D-III

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

    Explanation

    Sadler's law of population holds that human fecundity varies inversely with population density; Henry George argued that mankind can raise subsistence for growing numbers; Ricardo linked wages to population through the subsistence-wage (labour-wage) mechanism; and Josue de Castro's theory holds that higher protein intake reduces fecundity. Hence A-I, B-IV, C-II, D-III.

    Sign in to read the full explanation

    Sign in

43. Question 43

    Application of Indifference Curves is generally NOT used in which of the following?

    1. AExplaining changes in tastes and preferences
    2. BExplaining the effects of taxes, transfer payments and subsidies
    3. CExplaining the theory of Index Numbers
    4. DExplaining the Business Cycles

    Answer: (D) Explaining the Business Cycles

    Explanation

    Indifference-curve analysis is applied to consumer equilibrium, income/price/substitution effects, the comparison of direct versus indirect taxes and subsidies, cost-of-living index numbers, rationing and the leisure-income choice. Business cycles are a macro-dynamic phenomenon that indifference curves are not used to explain.

    Sign in to read the full explanation

    Sign in

44. Question 44

    In a simultaneous equation model, OLS can be applied if:

    1. AIt is a recursive model
    2. BThe order condition is satisfied
    3. CThe rank condition is satisfied
    4. DBoth order and rank conditions are satisfied

    Answer: (A) It is a recursive model

    Explanation

    In a recursive (triangular) system each equation can be estimated by OLS because the explanatory endogenous variable in any equation is predetermined with respect to that equation's error, so OLS is consistent. The order and rank conditions concern identification, not the applicability of OLS.

    Sign in to read the full explanation

    Sign in

45. Question 45

    Which of the following is NOT true about the superiority of Baumol's Inventory-Theoretic approach over the Keynesian approach?

    1. ABaumol analyses the transaction demand for real balances, thereby emphasising the absence of money illusion
    2. BIt integrates the transaction demand for money with the capital theory approach by taking assets and their interest and non-interest costs into account
    3. CIt retains a dichotomy between transaction and speculative demand for money
    4. DIt demonstrates the interest elasticity of the transactions demand for money

    Answer: (C) It retains a dichotomy between transaction and speculative demand for money

    Explanation

    Baumol's inventory model treats cash management like inventory management, shows that even transactions balances respond to the interest rate, and works with real balances (no money illusion). Its advance over Keynes is precisely that it removes the sharp dichotomy between transactions and speculative demand, so 'retains a dichotomy' is the false statement.

    Sign in to read the full explanation

    Sign in

46. Question 46

    Key assumptions of the Coase theorem are:

    A. Zero transaction costs and two agents to each bargain
    B. Competitive market for legal entitlements and perfect knowledge about the utility function
    C. Profit-maximizing producers and expected-utility-maximizing consumers
    D. No wealth effects

    Choose the correct answer from the options given below:

    1. AA, B, C and D
    2. BA, B and C Only
    3. CC and D Only
    4. DD Only

    Answer: (A) A, B, C and D

    Explanation

    The Coase theorem holds only under a demanding set of conditions: zero transaction (bargaining) costs with a small number of parties, well-defined and tradable property rights in a competitive setting with full information, rational maximizing agents, and no income/wealth effects. All four statements describe these assumptions.

    Sign in to read the full explanation

    Sign in

47. Question 47

    Which of the following statements is/are true?

    A. The Fiscal Responsibility and Budget Management Act relates to foreign trade
    B. Make in India was launched by the Government of India to manufacture its products in India
    C. Start-up India and Stand-up India aim to build a strong ecosystem for nurturing innovation and sustainable economic growth
    D. Pradhan Mantri Kisan Samman Nidhi provides support of Rs. 6000 per year to the farmers

    Choose the correct answer from the options given below:

    1. AB, C and D Only
    2. BA, B and C Only
    3. CA and C Only
    4. DC and D Only

    Answer: (A) B, C and D Only

    Explanation

    The FRBM Act (2003) concerns fiscal discipline - targets for fiscal and revenue deficits and debt - not foreign trade, so statement A is false. Make in India (2014), Start-up/Stand-up India, and PM-KISAN (Rs. 6000 per year in three instalments) are correctly described, so B, C and D are true.

    Sign in to read the full explanation

    Sign in

48. Question 48

    What is the necessary condition for the complete absence of factor intensity reversal in international trade?

    1. AThe elasticities of substitution for both production functions are the same
    2. BThe elasticities of substitution for both production functions are different
    3. CThe price of factors for both production functions is the same
    4. DThe quantity ratio for both production functions is different

    Answer: (A) The elasticities of substitution for both production functions are the same

    Explanation

    Factor intensity reversal cannot occur if the two industries' production functions have identical elasticities of substitution (for example, both Cobb-Douglas with the same sigma), so that relative factor intensities never cross as factor prices change. Different elasticities of substitution are exactly what make reversal possible (Minhas).

    Sign in to read the full explanation

    Sign in

49. Question 49

    Match List-I with List-II.

    List-I (Theory)	List-II (Economist)
    A. Full Cost Pricing Theory	I. A. W. Flux
    B. Limit Pricing Theory	II. Clark and Wicksteed
    C. Marginal Productivity Theory	III. Hall and Hitch
    D. Product Exhaustion Theorem	IV. Joe S. Bain

    Micro-economic theories and their originators

    1. AA-III, B-IV, C-II, D-I
    2. BA-III, B-II, C-I, D-IV
    3. CA-II, B-I, C-III, D-IV
    4. DA-IV, B-III, C-II, D-I

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

    Explanation

    Full-cost pricing is associated with Hall and Hitch; the limit-pricing theory of entry deterrence with Joe S. Bain; the marginal productivity theory of distribution with J. B. Clark and Wicksteed; and the product exhaustion theorem (adding-up problem) with A. W. Flux. Hence A-III, B-IV, C-II, D-I.

    Sign in to read the full explanation

    Sign in

50. Question 50

    Arrange the following according to year of enactment (latest to earliest):

    A. MRTP Act
    B. FERA
    C. FEMA
    D. Competition Act

    Choose the correct answer from the options given below:

    1. AA, C, B, D
    2. BA, B, C, D
    3. CD, B, C, A
    4. DD, C, B, A

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

    Explanation

    The MRTP Act came first in 1969 to curb concentration of economic power, then FERA in 1973 to conserve scarce foreign exchange, then FEMA in 1999 which replaced FERA as the economy liberalised, and finally the Competition Act in 2002 which replaced MRTP with a modern competition framework. Since the question asks latest to earliest, the order is Competition Act, FEMA, FERA, MRTP, i.e. D, C, B, A.

    Sign in to read the full explanation

    Sign in

51. Question 51

    The fiscal deficit of a state government in India is financed by which of the following?

    A. Market Borrowing
    B. External Borrowing
    C. Loans from Regional Rural Banks
    D. Loans from the Union Government

    Choose the correct answer from the options given below:

    1. AA and D Only
    2. BA and C Only
    3. CD Only
    4. DB and C Only

    Answer: (A) A and D Only

    Explanation

    States finance their fiscal deficit mainly through market borrowings (State Development Loans), loans and advances from the Centre, and small savings/provident fund balances. Under the Constitution a state cannot borrow abroad directly, and Regional Rural Banks do not lend to state governments.

    Sign in to read the full explanation

    Sign in

52. Question 52

    In the estimation of National Income in India, the following economic activities are included:

    A. Agriculture and Allied Activities
    B. Mining
    C. Registered Manufacturing
    D. Unregistered Manufacturing

    Choose the correct answer from the options given below:

    1. AB, C and D Only
    2. BA, B, C and D
    3. CA and B Only
    4. DA, C and D Only

    Answer: (B) A, B, C and D

    Explanation

    India's national income accounts cover the entire economy: agriculture and allied activities, mining and quarrying, both registered (organised) and unregistered (unorganised) manufacturing, and services. All four activities are included.

    Sign in to read the full explanation

    Sign in

53. Question 53

    The Harrod model of economic growth has the following assumptions:

    A. Diminishing returns to scale
    B. The level of ex-ante aggregate saving is a constant proportion of aggregate income
    C. The overall effect of technical progress is neutral
    D. The capital-output and labour-output ratios are flexible

    Choose the correct answer from the options given below:

    1. AA and B Only
    2. BC and D Only
    3. CB and C Only
    4. DA, B, C and D

    Answer: (C) B and C Only

    Explanation

    Harrod assumes constant returns to scale (not diminishing), a fixed capital-output ratio and fixed factor proportions (not flexible), saving as a constant fraction of income, and either no technical progress or neutral technical progress. Only statements B and C are correct.

    Sign in to read the full explanation

    Sign in

54. Question 54

    Devaluation of currency has the following effects:

    A. Changes relative domestic prices
    B. Increases the tax value of domestic currency
    C. Increases the competitiveness of exports in foreign markets
    D. Corrects the balance of trade, on the condition that domestic demand is elastic

    Choose the correct answer from the options given below:

    1. AA, B and D Only
    2. BB, C and D Only
    3. CB and C Only
    4. DA and C Only

    Answer: (D) A and C Only

    Explanation

    Devaluation raises the domestic-currency price of tradables (changing relative prices) and makes exports cheaper abroad, improving competitiveness. Statement B ('tax value of domestic currency') is meaningless and wrong, and it appears in every option except D, so the correct choice is A and C.

    Sign in to read the full explanation

    Sign in

55. Question 55

    Which type of deficit affects the amount of government borrowing?

    1. AFiscal Deficit
    2. BRevenue Deficit
    3. CPrimary Deficit
    4. DMonetary Deficit

    Answer: (A) Fiscal Deficit

    Explanation

    The fiscal deficit is total expenditure minus total receipts excluding borrowings; by definition it equals the government's total borrowing requirement for the year. The revenue and primary deficits are components/derivatives that do not directly measure borrowing.

    Sign in to read the full explanation

    Sign in

56. Question 56

    Which of the following is/are correct?

    A. Steady State Growth approach given by Robert Solow
    B. Golden Age Concept given by Mrs. Joan Robinson
    C. Golden Rule of Accumulation given by Edmund Phelps
    D. Location Theory given by Ricardo

    Choose the correct answer from the options given below:

    1. AA and B Only
    2. BA, B and C Only
    3. CD Only
    4. DA and D Only

    Answer: (B) A, B and C Only

    Explanation

    Steady-state growth is central to Solow's model, the term 'Golden Age' was coined by Joan Robinson, and the Golden Rule of capital accumulation is due to Edmund Phelps. Location theory is associated with von Thunen, Weber and Losch; Ricardo is linked with the theory of rent, so statement D is wrong.

    Sign in to read the full explanation

    Sign in

57. Question 57

    The range of the price elasticity of demand is:

    1. A0 <= e_p <= 1
    2. B0 <= e_p <= infinity
    3. C-1 <= e_p <= +1
    4. D1 <= e_p <= infinity

    Answer: (B) 0 <= e_p <= infinity

    Explanation

    In absolute terms the price elasticity of demand ranges from 0 (perfectly inelastic, a vertical demand curve) to infinity (perfectly elastic, a horizontal demand curve), passing through unit elasticity. Values below 1 are inelastic and above 1 are elastic.

    Sign in to read the full explanation

    Sign in

58. Question 58

    In the Cobb-Douglas production function Q = A * x1^alpha * x2^beta * u, A denotes:

    1. ALabour Elasticity
    2. BCapital Elasticity
    3. CRandom Disturbance
    4. DEfficiency Parameter

    Answer: (D) Efficiency Parameter

    Explanation

    In this specification A is the efficiency (scale) parameter representing the state of technology or total factor productivity. The exponents alpha and beta are the output elasticities of the two inputs, and u is the random disturbance term.

    Sign in to read the full explanation

    Sign in

59. Question 59

    If Mode is 11, Mean is 8, the difference of the two quartiles is 8 and the sum of the two quartiles is 22, then the Coefficient of Skewness will be:

    A. +0.5
    B. -0.5
    C. +0.25
    D. -0.25

    Choose the correct answer from the options given below:

    1. AA and B Only
    2. BA Only
    3. CB and C Only
    4. DC Only

    Answer: (B) A Only

    Explanation

    Using the empirical relation Mode = 3Median - 2Mean gives 11 = 3Median - 16, so Median = 9. Bowley's coefficient of skewness = (Q3 + Q1 - 2Median) / (Q3 - Q1) = (22 - 18) / 8 = +0.5. Hence only value A is correct.

    Sign in to read the full explanation

    Sign in

60. Question 60

    Given A = [[1, 3], [2, 8], [4, 0]] and B = [[5], [9]], then A x B will be:

    1. A[[32], [82], [20]]
    2. B[[42], [80], [24]]
    3. C[[32], [82], [10]]
    4. D[[82], [32], [44]]

    Answer: (A) [[32], [82], [20]]

    Explanation

    A is a 3x2 matrix and B is a 2x1 vector, so the product A x B is a 3x1 vector where each entry is the dot product of a row of A with B. Row 1 gives 1(5) + 3(9) = 32, row 2 gives 2(5) + 8(9) = 82, and row 3 gives 4(5) + 0(9) = 20, hence the column vector [32, 82, 20]. Option 3 differs only in the last entry (10 instead of 20), which comes from wrongly computing 4(5) + 0(9).

    Sign in to read the full explanation

    Sign in

61. Question 61

    A tariff has the following effects:

    A. Increase in domestic prices
    B. Decline in consumption
    C. Increase in imports
    D. Increase in productivity

    Choose the correct answer from the options given below:

    1. AA and B Only
    2. BA, B and D Only
    3. CB and C Only
    4. DA, B and C Only

    Answer: (A) A and B Only

    Explanation

    An import tariff raises the domestic price of the good (price effect) and reduces domestic consumption (consumption effect); it also lowers imports and raises domestic production (protective effect). It does not increase imports, and protection typically lowers rather than raises efficiency/productivity, so only A and B apply.

    Sign in to read the full explanation

    Sign in

62. Question 62

    When a product tax is imposed as a percentage of price, it is referred to as:

    1. AUnit Tax
    2. BAd Valorem Tax
    3. CProfit Tax
    4. DSpecific Tax

    Answer: (B) Ad Valorem Tax

    Explanation

    An ad valorem tax is levied as a percentage of the value or price of the good (for example, GST at 18%). A specific or unit tax is a fixed amount per physical unit regardless of price.

    Sign in to read the full explanation

    Sign in

63. Question 63

    "Only that much labour should be used with capital as will reduce the marginal productivity of labour to zero." This statement is given by which of the following economists?

    1. AW. A. Lewis
    2. BLeibenstein
    3. CSchumpeter
    4. DDavid Ricardo

    Answer: (A) W. A. Lewis

    Explanation

    This is W. Arthur Lewis's characterisation of surplus labour / disguised unemployment in the subsistence sector: labour is so abundant relative to co-operant factors that its marginal product is zero (or near zero), so it can be withdrawn for the modern sector without loss of output.

    Sign in to read the full explanation

    Sign in

64. Question 64

    Which of the following is the focal point of the Unnat Bharat Abhiyan (UBA)?

    1. ATo cater to rural local needs
    2. BTo cater to the MSME sector
    3. CTax reform
    4. DTo promote export of electronic goods

    Answer: (A) To cater to rural local needs

    Explanation

    Unnat Bharat Abhiyan links higher educational institutions (such as IITs and NITs) with clusters of villages so that their knowledge and technology help address local rural development needs. Its focal point is meeting rural local needs.

    Sign in to read the full explanation

    Sign in

65. Question 65

    In test statistics, the "P" value is known as:

    1. AExact probability of committing a Type I Error
    2. BExact probability of committing a Type II Error
    3. CThe lowest significance level at which the null hypothesis can be rejected
    4. DThe lowest significance level at which the null hypothesis can be accepted

    Answer: (C) The lowest significance level at which the null hypothesis can be rejected

    Explanation

    The p-value is the observed (exact) level of significance: the smallest significance level at which the null hypothesis would be rejected given the sample. If the p-value is less than the chosen alpha, the null is rejected.

    Sign in to read the full explanation

    Sign in

66. Question 66

    Match List-I with List-II.

    List-I (Theory)	List-II (Economist)
    A. Cobweb Theorem	I. Schultz
    B. Over Investment Theory	II. Pigou
    C. Multiplier-Accelerator Theory of Business Cycle	III. Hayek
    D. Psychological Theory	IV. Samuelson

    Business-cycle theories and their economists

    1. AA-IV, B-II, C-III, D-I
    2. BA-I, B-III, C-IV, D-II
    3. CA-I, B-III, C-II, D-IV
    4. DA-II, B-III, C-I, D-IV

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

    Explanation

    The cobweb theorem, which explains price oscillations in agricultural markets from lagged supply response, is associated with Henry Schultz; the monetary over-investment theory of the cycle is Hayek's; the multiplier-accelerator interaction model of the business cycle is Samuelson's (1939); and the psychological theory, stressing waves of optimism and pessimism among businessmen, is Pigou's. Hence A-I, B-III, C-IV, D-II, and the common trap is swapping Samuelson and Pigou.

    Sign in to read the full explanation

    Sign in

67. Question 67

    If AR = 15 - Q, then the value of Marginal Revenue (MR) will be:

    1. A-20Q
    2. B15Q
    3. C15 - 2Q
    4. D-20/Q

    Answer: (C) 15 - 2Q

    Explanation

    Total Revenue = AR x Q = (15 - Q)Q = 15Q - Q^2. Marginal Revenue = d(TR)/dQ = 15 - 2Q. For a linear demand curve the MR curve has the same intercept and twice the slope.

    Sign in to read the full explanation

    Sign in

68. Question 68

    If the Investment-Saving (IS) curve is less elastic, then:

    1. AMonetary policy will be less effective
    2. BMonetary policy will be more effective
    3. CTaxation policy will be less effective
    4. DTaxation policy will be more effective

    Answer: (A) Monetary policy will be less effective

    Explanation

    A less elastic (steeper) IS curve means investment responds weakly to the interest rate. A shift in the LM curve from monetary policy then produces only a small change in income, so monetary policy is less effective; fiscal (taxation) policy, which shifts the IS curve, becomes correspondingly more effective because crowding out is small.

    Sign in to read the full explanation

    Sign in

69. Question 69

    Arrange the following steps of Econometric Methodology (first to last):

    A. Statement of Theory
    B. Obtaining the data
    C. Hypothesis testing
    D. Specification of the statistical/econometric model
    E. Specification of the mathematical model

    Choose the correct answer from the options given below:

    1. AA, D, E, C, B
    2. BB, A, C, E, D
    3. CB, C, A, E, D
    4. DA, E, D, B, C

    Answer: (D) A, E, D, B, C

    Explanation

    Gujarati's sequence is: state the theory/hypothesis, specify the mathematical model, specify the econometric (statistical) model, obtain the data, estimate the parameters, test the hypothesis, then forecast and use for policy. So the order among these steps is A, E, D, B, C.

    Sign in to read the full explanation

    Sign in

70. Question 70

    The Comparative Cost Advantage theory of International Trade was propounded by:

    1. AJ. S. Mill
    2. BAdam Smith
    3. CHeckscher and Ohlin
    4. DDavid Ricardo

    Answer: (D) David Ricardo

    Explanation

    David Ricardo (1817) developed the theory of comparative advantage, showing that mutually beneficial trade is possible even when one country has an absolute disadvantage in producing both goods, as long as opportunity costs differ. J. S. Mill later added reciprocal demand to determine the terms of trade.

    Sign in to read the full explanation

    Sign in

71. Question 71

    What will be the third derivative of the following rational function?

    Y = g(x) = x / (1 + x); (x is not equal to -1)

    1. A-2(1 + x)^(-3)
    2. B6(1 + x)^(-4)
    3. C-24(1 + x)^(-5)
    4. D(1 + x)^(-2)

    Answer: (B) 6(1 + x)^(-4)

    Explanation

    Rewrite the rational function by polynomial division as Y = x/(1+x) = 1 - (1+x)^(-1), which is easy to differentiate repeatedly using the power/chain rule. Then Y' = (1+x)^(-2), Y'' = -2(1+x)^(-3), and the third derivative is Y''' = 6(1+x)^(-4). Option 3, -24(1+x)^(-5), is actually the fourth derivative, so it is the tempting wrong choice.

    Sign in to read the full explanation

    Sign in

72. Question 72

    Match List-I with List-II.

    List-I (Approach)	List-II (Economist)
    A. Restatement of Quantity Theory of Money	I. Baumol
    B. Cash Balance Approach	II. Tobin
    C. Inventory Theorem	III. Friedman
    D. Portfolio Optimization Theory	IV. Marshall

    Monetary theories and their economists

    1. AA-III, B-IV, C-II, D-I
    2. BA-IV, B-II, C-III, D-I
    3. CA-III, B-I, C-IV, D-II
    4. DA-III, B-IV, C-I, D-II

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

    Explanation

    The restatement of the quantity theory of money is Friedman's; the cash-balance approach is the Cambridge (Marshall) version; the inventory-theoretic model of money demand is Baumol's; and the portfolio-optimisation (liquidity preference as behaviour towards risk) approach is Tobin's. Hence A-III, B-IV, C-I, D-II.

    Sign in to read the full explanation

    Sign in

73. Question 73

    If TC = Q^3 - 12Q^2 + 60Q, then what will be the quantity where AC and MC are equal?

    1. A4
    2. B6
    3. C8
    4. D10

    Answer: (B) 6

    Explanation

    Average cost is AC = TC/Q = Q^2 - 12Q + 60, and marginal cost is MC = d(TC)/dQ = 3Q^2 - 24Q + 60. AC and MC intersect where AC is at its minimum, so set AC = MC: Q^2 - 12Q + 60 = 3Q^2 - 24Q + 60, which simplifies to 2Q^2 - 12Q = 0, hence 2Q(Q - 6) = 0. The economically meaningful root is Q = 6.

    Sign in to read the full explanation

    Sign in

74. Question 74

    Which of the following is NOT a probability sampling method?

    1. AMultistage Sampling
    2. BSpot Sampling
    3. CDouble Sampling
    4. DArea Sampling

    Answer: (B) Spot Sampling

    Explanation

    Multistage, double (two-phase) and area sampling all give every unit a known, non-zero probability of selection, so they are probability sampling methods. Spot (accidental/convenience) sampling picks whoever is available and is a non-probability method.

    Sign in to read the full explanation

    Sign in

75. Question 75

    Which of the following statements relates to the Classical Theory of Employment?

    1. AMoney wages and real wages are indirectly related
    2. BThe Ratchet Effect relates to Keynes
    3. CMoney wages and real wages are directly related and proportional
    4. DThe concept of transitory income relates to the relative income hypothesis

    Answer: (C) Money wages and real wages are directly related and proportional

    Explanation

    In the classical model the price level is fixed by the quantity of money, so a change in money wages produces a proportional change in real wages - they move together. The ratchet effect belongs to Duesenberry's relative income hypothesis, and transitory income belongs to Friedman's permanent income hypothesis, so statements B and D are wrong.

    Sign in to read the full explanation

    Sign in

76. Question 76

    Arrange the following steps in the process of hypothesis testing (in order):

    A. Select the level of significance
    B. Draw conclusion
    C. Set up the null and alternate hypothesis
    D. Select the test statistic

    Choose the correct answer from the options given below:

    1. AC, A, D, B
    2. BC, A, B, D
    3. CC, B, A, D
    4. DA, B, C, D

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

    Explanation

    Hypothesis testing proceeds as: state the null and alternative hypotheses, choose the level of significance, select the appropriate test statistic and its distribution, compute it and compare with the critical value, and finally draw the conclusion. Hence C, A, D, B.

    Sign in to read the full explanation

    Sign in

77. Question 77

    Which of the following is NOT a cause of Structural Inflation?

    1. AWage Increase
    2. BImport Substitution
    3. CNature of the Tax System
    4. DExport Promotion

    Answer: (D) Export Promotion

    Explanation

    Structuralist inflation in developing economies stems from bottlenecks: inelastic food supply, the fiscal/resource gap (an inelastic tax system forcing deficit financing), the foreign-exchange constraint that pushes costly import substitution, and infrastructure gaps, often with wage-price spirals. Export promotion earns foreign exchange and relaxes these constraints, so it is not a structural cause of inflation.

    Sign in to read the full explanation

    Sign in

78. Question 78

    Which of the following statements is/are true?

    A. Schumpeter's development theory is based on three economic factors like circular flow, innovation and crises
    B. The doctrine of Balanced Growth requires balance in demand, supply and sectoral balance
    C. The actual growth rate in the Harrod model is determined by two factors, that is, the saving-income ratio and the capital-output ratio
    D. The Big Push approach is given by Ricardo

    Choose the correct answer from the options given below:

    1. AA, B, C and D
    2. BB, C and D Only
    3. CA, B and C Only
    4. DD Only

    Answer: (C) A, B and C Only

    Explanation

    Schumpeter's theory builds on the circular flow, innovation by the entrepreneur, and the disturbances/crises that follow; Nurkse's balanced growth needs balance between demand and supply and across sectors; and Harrod's actual growth rate equals the saving ratio divided by the capital-output ratio (G = s/C). The Big Push approach is due to Rosenstein-Rodan, not Ricardo, so D is false.

    Sign in to read the full explanation

    Sign in

79. Question 79

    Arrange the following states in descending order of population size as per the 2011 Census of India:

    A. Arunachal Pradesh
    B. Uttarakhand
    C. Goa
    D. Meghalaya

    Choose the correct answer from the options given below:

    1. AB, C, A, D
    2. BB, D, C, A
    3. CA, B, C, D
    4. DD, C, B, A

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

    Explanation

    As per Census 2011, Uttarakhand had about 10.09 million people, Meghalaya about 2.97 million, Goa about 1.46 million and Arunachal Pradesh about 1.38 million. Descending order is B, D, C, A.

    Sign in to read the full explanation

    Sign in

80. Question 80

    The payment made to an input which is in fixed supply in the short run is called:

    1. AEconomic Rent
    2. BQuasi Rent
    3. CNormal Rent
    4. DLocation Rent

    Answer: (B) Quasi Rent

    Explanation

    Marshall's quasi-rent is the surplus earned by a factor (such as machinery or equipment) that is fixed in supply only in the short run; it disappears in the long run when supply becomes variable. Pure economic rent accrues to a factor whose supply is permanently fixed, like land.

    Sign in to read the full explanation

    Sign in

81. Question 81

    Who is the propounder of the following propositions of the growth model?

    A. Capital formation depends on the income distribution.
    B. The rate at which labour is utilized depends upon the supply of capital and that of labour.

    Choose the correct answer from the options given below:

    1. AMrs. Joan Robinson
    2. BSchultz
    3. CRobert M. Solow
    4. DL. L. Pasinetti

    Answer: (A) Mrs. Joan Robinson

    Explanation

    In Joan Robinson's model of accumulation, the division of income between wages and profits governs the aggregate saving ratio and hence capital formation, and the degree to which the available labour force is utilised is set by the relation between the stocks of capital and labour. These Cambridge growth propositions are Robinson's.

    Sign in to read the full explanation

    Sign in

82. Question 82

    If the demand function is Q = 100 - 2P, when P = 25, then the elasticity of demand will be:

    1. A-1
    2. B-1.5
    3. C-2
    4. D-2.5

    Answer: (A) -1

    Explanation

    Point price elasticity is (dQ/dP) x (P/Q). From Q = 100 - 2P the slope dQ/dP = -2, and at P = 25 the quantity is Q = 100 - 2(25) = 50. Therefore elasticity = -2 x (25/50) = -1, which is unit elastic; this is exactly the midpoint of a linear demand curve. Choosing -2 is the common error of stopping at the slope dQ/dP without multiplying by P/Q.

    Sign in to read the full explanation

    Sign in

83. Question 83

    The National Food Security Act (NFSA) was enacted by Parliament in which year?

    1. A2010
    2. B2011
    3. C2012
    4. D2013

    Answer: (D) 2013

    Explanation

    The National Food Security Act was passed in 2013. It provides subsidised foodgrains through the Public Distribution System to about two-thirds of the population (up to 75% rural and 50% urban) and gives a legal entitlement to food.

    Sign in to read the full explanation

    Sign in

84. Question 84

    Arrange the following organisations in chronological order according to year of establishment (earlier to latest):

    A. ASEAN
    B. EU
    C. SAARC
    D. NAFTA

    Choose the correct answer from the options given below:

    1. AB, C, A, D
    2. BA, C, B, D
    3. CA, B, D, C
    4. DB, A, C, D

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

    Explanation

    ASEAN was formed in 1967, SAARC in 1985, the European Union came into being with the Maastricht Treaty in 1993, and NAFTA entered into force in 1994. Earliest to latest is A, C, B, D.

    Sign in to read the full explanation

    Sign in

85. Question 85

    Match List-I with List-II.

    List-I (Concept)	List-II (Economist)
    A. Life Cycle Hypothesis	I. Milton Friedman
    B. Drift Theory	II. Franco Modigliani
    C. Ratchet Effect	III. Arthur Smithies and Tobin
    D. Permanent Income Hypothesis	IV. Duesenberry

    Consumption hypotheses and their economists

    1. AA-I, B-II, C-III, D-IV
    2. BA-IV, B-II, C-I, D-III
    3. CA-II, B-III, C-IV, D-I
    4. DA-II, B-III, C-I, D-IV

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

    Explanation

    The Life-Cycle Hypothesis, where households smooth consumption over the lifetime, is Franco Modigliani's (with Ando and Brumberg); the Drift theory, explaining the observed upward drift of the long-run consumption function, is associated with Arthur Smithies and Tobin; the Ratchet effect, where consumption does not fall back easily when income falls, is Duesenberry's; and the Permanent Income Hypothesis is Milton Friedman's. Hence A-II, B-III, C-IV, D-I.

    Sign in to read the full explanation

    Sign in

86. Question 86

    Which of the following assumptions is NOT similar in the Harrod and Domar models?

    1. ABoth models are based on the Keynesian investment-saving equality as a condition of steady growth
    2. BThe knife-edge equilibrium is necessary in both models
    3. CBoth accept the income rise Y = S / Cr
    4. DBoth models are based on the principle of the accelerator

    Answer: (D) Both models are based on the principle of the accelerator

    Explanation

    Both models are Keynesian, use a fixed saving ratio and a fixed capital-output ratio, and share the knife-edge instability property. The key difference is that Harrod uses the acceleration principle (induced investment), whereas Domar stresses the dual demand-creating and capacity-creating role of investment without an accelerator.

    Sign in to read the full explanation

    Sign in

87. Question 87

    Match List-I with List-II.

    List-I	List-II
    A. Nash Equilibrium	I. 1952
    B. Cournot Model	II. 1897
    C. Edgeworth Solution	III. 1981
    D. Stackelberg Model	IV. 1838

    Game-theory / oligopoly models and years

    1. AA-III, B-IV, C-II, D-I
    2. BA-III, B-IV, C-I, D-II
    3. CA-II, B-III, C-I, D-IV
    4. DA-IV, B-III, C-II, D-I

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

    Explanation

    Cournot's duopoly model is from 1838 and Edgeworth's monopoly analysis from 1897; these two fix the answer, since only one option pairs Cournot with 1838 and Edgeworth with 1897. On that key, Nash equilibrium is paired with 1981 and the Stackelberg model with 1952.

    Sign in to read the full explanation

    Sign in

88. Question 88

    Which of the following is NOT an assumption of Monopolistic Competition?

    1. ALarge number of sellers and buyers in the group
    2. BThere is free entry and exit of firms in the group
    3. CPrices of factors and technology are given
    4. DProducts of sellers are not differentiated

    Answer: (D) Products of sellers are not differentiated

    Explanation

    Chamberlin's monopolistic competition assumes many sellers and buyers, free entry and exit, and given factor prices and technology - but its defining feature is PRODUCT DIFFERENTIATION. 'Products are not differentiated' contradicts the model, so it is the odd one out.

    Sign in to read the full explanation

    Sign in

89. Question 89

    The appropriate statistic to examine the goodness of fit of a two-variable regression model is:

    A. F-statistic
    B. t-statistic
    C. Chi-square statistic
    D. z-statistic

    Choose the correct answer from the options given below:

    1. AA, B and D Only
    2. BB and C Only
    3. CA and C Only
    4. DA and B Only

    Answer: (D) A and B Only

    Explanation

    Overall goodness of fit / significance of the regression is judged by the F-statistic (testing whether R-squared is significantly different from zero). In a two-variable model there is a single slope coefficient, and testing it with the t-statistic is equivalent (F = t-squared), so A and B both apply.

    Sign in to read the full explanation

    Sign in

90. Question 90

    Arrange the following Committees on Banking Reforms in chronological order:

    A. Verma Committee
    B. Raghuram Rajan Committee
    C. P. J. Nayak Committee
    D. R. H. Khan Committee

    Choose the correct answer from the options given below:

    1. AA, B, C, D
    2. BA, D, B, C
    3. CA, D, C, B
    4. DD, A, C, B

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

    Explanation

    The R. H. Khan Committee on harmonising the roles of development finance institutions and banks reported in 1997-98, the M. S. Verma Committee on restructuring weak public sector banks in 1999, the Raghuram Rajan Committee on financial sector reforms in 2007-08, and the P. J. Nayak Committee on bank board governance in 2014. The intended chronological arrangement here is D, A, C, B.

    Sign in to read the full explanation

    Sign in

91. Question 91

    What was the average global growth rate between 2012 and 2019?

    According to the IMF, between 2012 and 2019, after the global economic crisis and the waning of the impact of the immediate stimulus measures taken by the affected countries in its wake, global economic growth at constant prices averaged 3.4 percent. The growth rate was similar in the five-year period between 2014 and 2019. Between 2023 and 2028, the Fund's projected growth for the world economy is around 3.1 percent. Further, data from the World Trade Organization (WTO) show that, in value terms, world trade barely grew in either period (2012-19 or 2014-19). In volume terms, the growth rate averaged 2.4 percent. Despite this insipid backdrop for global economic growth and trade growth, between 2014 and 2019, the compounded annual growth rate of the Indian economy at constant price was 7.4%. In other words, these data demonstrate the internal strengths of the Indian economy, which bestow on it the ability to grow notwithstanding unfavourable global economic conditions. Therefore, it is eminently possible for the Indian economy to grow in the coming years at a rate above 7 percent on the strength of the financial sector and other recent and future structural reforms. Only the elevated risk of geopolitical conflicts is an area of concern. Priority areas for future reforms include skilling, learning outcomes, health, energy security, reduction in compliance burden for MSMEs, and gender balancing in the labor force. Furthermore, under a reasonable set of assumptions with respect to the inflation differentials and the exchange rate, India can aspire to become a USD 7 trillion economy in the next six to seven years (by 2030). This will be a significant milestone in the journey to delivering a quality of life and standard of living that match and exceed the aspirations of the Indian people.

    1. A2.4%
    2. B3.1%
    3. C3.4%
    4. D7.4%

    Answer: (C) 3.4%

    Explanation

    The passage states that, according to the IMF, between 2012 and 2019 global economic growth at constant prices averaged 3.4 percent, and that the rate was similar in the 2014-2019 sub-period. The 2.4% figure is world trade volume growth and 7.4% is India's CAGR.

    Sign in to read the full explanation

    Sign in

92. Question 92

    Which of the following is responsible for attaining a 7% growth rate for the Indian economy in the coming years?

    According to the IMF, between 2012 and 2019, after the global economic crisis and the waning of the impact of the immediate stimulus measures taken by the affected countries in its wake, global economic growth at constant prices averaged 3.4 percent. The growth rate was similar in the five-year period between 2014 and 2019. Between 2023 and 2028, the Fund's projected growth for the world economy is around 3.1 percent. Further, data from the World Trade Organization (WTO) show that, in value terms, world trade barely grew in either period (2012-19 or 2014-19). In volume terms, the growth rate averaged 2.4 percent. Despite this insipid backdrop for global economic growth and trade growth, between 2014 and 2019, the compounded annual growth rate of the Indian economy at constant price was 7.4%. In other words, these data demonstrate the internal strengths of the Indian economy, which bestow on it the ability to grow notwithstanding unfavourable global economic conditions. Therefore, it is eminently possible for the Indian economy to grow in the coming years at a rate above 7 percent on the strength of the financial sector and other recent and future structural reforms. Only the elevated risk of geopolitical conflicts is an area of concern. Priority areas for future reforms include skilling, learning outcomes, health, energy security, reduction in compliance burden for MSMEs, and gender balancing in the labor force. Furthermore, under a reasonable set of assumptions with respect to the inflation differentials and the exchange rate, India can aspire to become a USD 7 trillion economy in the next six to seven years (by 2030). This will be a significant milestone in the journey to delivering a quality of life and standard of living that match and exceed the aspirations of the Indian people.

    1. ARecent financial sector and other structural reforms
    2. BSupport of the WTO (World Trade Organisation)
    3. CDemographic Dividend
    4. DGrowth of the Manufacturing Sector

    Answer: (A) Recent financial sector and other structural reforms

    Explanation

    The passage says it is possible for the Indian economy to grow above 7 percent 'on the strength of the financial sector and other recent and future structural reforms'. The WTO, demographic dividend and manufacturing are not cited there as the basis for the 7% projection.

    Sign in to read the full explanation

    Sign in

93. Question 93

    What was the Compounded Annual Growth Rate (CAGR) of the Indian economy at constant prices between 2014 and 2019?

    According to the IMF, between 2012 and 2019, after the global economic crisis and the waning of the impact of the immediate stimulus measures taken by the affected countries in its wake, global economic growth at constant prices averaged 3.4 percent. The growth rate was similar in the five-year period between 2014 and 2019. Between 2023 and 2028, the Fund's projected growth for the world economy is around 3.1 percent. Further, data from the World Trade Organization (WTO) show that, in value terms, world trade barely grew in either period (2012-19 or 2014-19). In volume terms, the growth rate averaged 2.4 percent. Despite this insipid backdrop for global economic growth and trade growth, between 2014 and 2019, the compounded annual growth rate of the Indian economy at constant price was 7.4%. In other words, these data demonstrate the internal strengths of the Indian economy, which bestow on it the ability to grow notwithstanding unfavourable global economic conditions. Therefore, it is eminently possible for the Indian economy to grow in the coming years at a rate above 7 percent on the strength of the financial sector and other recent and future structural reforms. Only the elevated risk of geopolitical conflicts is an area of concern. Priority areas for future reforms include skilling, learning outcomes, health, energy security, reduction in compliance burden for MSMEs, and gender balancing in the labor force. Furthermore, under a reasonable set of assumptions with respect to the inflation differentials and the exchange rate, India can aspire to become a USD 7 trillion economy in the next six to seven years (by 2030). This will be a significant milestone in the journey to delivering a quality of life and standard of living that match and exceed the aspirations of the Indian people.

    1. A7.4%
    2. B3.4%
    3. C2.4%
    4. D3.1%

    Answer: (A) 7.4%

    Explanation

    The passage explicitly states that 'between 2014 and 2019, the compounded annual growth rate of the Indian economy at constant price was 7.4%', which it contrasts with the weak global backdrop of 3.4% growth and 2.4% trade-volume growth.

    Sign in to read the full explanation

    Sign in

94. Question 94

    Which of the following may hamper the growth rate of India in the coming years?

    According to the IMF, between 2012 and 2019, after the global economic crisis and the waning of the impact of the immediate stimulus measures taken by the affected countries in its wake, global economic growth at constant prices averaged 3.4 percent. The growth rate was similar in the five-year period between 2014 and 2019. Between 2023 and 2028, the Fund's projected growth for the world economy is around 3.1 percent. Further, data from the World Trade Organization (WTO) show that, in value terms, world trade barely grew in either period (2012-19 or 2014-19). In volume terms, the growth rate averaged 2.4 percent. Despite this insipid backdrop for global economic growth and trade growth, between 2014 and 2019, the compounded annual growth rate of the Indian economy at constant price was 7.4%. In other words, these data demonstrate the internal strengths of the Indian economy, which bestow on it the ability to grow notwithstanding unfavourable global economic conditions. Therefore, it is eminently possible for the Indian economy to grow in the coming years at a rate above 7 percent on the strength of the financial sector and other recent and future structural reforms. Only the elevated risk of geopolitical conflicts is an area of concern. Priority areas for future reforms include skilling, learning outcomes, health, energy security, reduction in compliance burden for MSMEs, and gender balancing in the labor force. Furthermore, under a reasonable set of assumptions with respect to the inflation differentials and the exchange rate, India can aspire to become a USD 7 trillion economy in the next six to seven years (by 2030). This will be a significant milestone in the journey to delivering a quality of life and standard of living that match and exceed the aspirations of the Indian people.

    1. AEnvironmental Issues
    2. BUnfavourable global economic conditions
    3. CGlobal Geopolitical Conflicts
    4. DIncreasing dependency on imports

    Answer: (C) Global Geopolitical Conflicts

    Explanation

    The passage says India can grow despite unfavourable global conditions and that 'only the elevated risk of geopolitical conflicts is an area of concern'. So global geopolitical conflict is the single risk it identifies to India's growth.

    Sign in to read the full explanation

    Sign in

95. Question 95

    Which of the following is NOT a priority area for future reforms in India?

    According to the IMF, between 2012 and 2019, after the global economic crisis and the waning of the impact of the immediate stimulus measures taken by the affected countries in its wake, global economic growth at constant prices averaged 3.4 percent. The growth rate was similar in the five-year period between 2014 and 2019. Between 2023 and 2028, the Fund's projected growth for the world economy is around 3.1 percent. Further, data from the World Trade Organization (WTO) show that, in value terms, world trade barely grew in either period (2012-19 or 2014-19). In volume terms, the growth rate averaged 2.4 percent. Despite this insipid backdrop for global economic growth and trade growth, between 2014 and 2019, the compounded annual growth rate of the Indian economy at constant price was 7.4%. In other words, these data demonstrate the internal strengths of the Indian economy, which bestow on it the ability to grow notwithstanding unfavourable global economic conditions. Therefore, it is eminently possible for the Indian economy to grow in the coming years at a rate above 7 percent on the strength of the financial sector and other recent and future structural reforms. Only the elevated risk of geopolitical conflicts is an area of concern. Priority areas for future reforms include skilling, learning outcomes, health, energy security, reduction in compliance burden for MSMEs, and gender balancing in the labor force. Furthermore, under a reasonable set of assumptions with respect to the inflation differentials and the exchange rate, India can aspire to become a USD 7 trillion economy in the next six to seven years (by 2030). This will be a significant milestone in the journey to delivering a quality of life and standard of living that match and exceed the aspirations of the Indian people.

    1. ASkilling and gender balancing in the labour force
    2. BReduction in compliance burden for MSMEs
    3. CEnergy Security
    4. DFiscal Reforms

    Answer: (D) Fiscal Reforms

    Explanation

    The passage lists the priority areas as skilling, learning outcomes, health, energy security, reduction in compliance burden for MSMEs, and gender balancing in the labour force. Fiscal reforms are not mentioned, so that is the exception.

    Sign in to read the full explanation

    Sign in

96. Question 96

    With the fall in fertility rate, which of the following will NOT decline?

    Over the one hundred years from 1950 to 2050, the world population was growing faster in the period 1962-1965, when it was increasing on average by 2.1 percent per year. The first billion in world population was achieved in 1804; by 1928, another billion was added; the third billion was added by 1960; the fourth by 1974; and the fifth by 1988. In 2000, the population had passed the 6 billion marks. By 2011, world had added another billion to the population. The dramatic change in the rate of growth is obvious. In 2020, for the first time since 1950, the rate of population growth declined below 1 percent annually. As per the estimates of UN, world prospectus report 2022, the world's two most populous regions in 2022 are Eastern and South-East Asia with 2.3 billion population (forming 29% of the world's population) and Central and South Asia with 2.1 billion population (forming 26% of the world's population). Sub-Saharan Africa will account for most of the growth of the world's population over the coming decades (the annual growth rate of the population of sub-Saharan Africa peaked at 3% in 1978 and remained above 2.8% during the 1980s), while several other regions will begin to experience decreasing population numbers. Whereas Europe and Northern America have reached a growth rate close to zero in 2020 and 2021.

    1. ARate of Population Growth
    2. BMortality Rate
    3. CLife Expectancy
    4. DMorbidity Rate

    Answer: (C) Life Expectancy

    Explanation

    A fall in fertility slows the rate of population growth and, in the demographic transition, generally accompanies falling mortality and morbidity as health conditions improve. Life expectancy, however, rises with development and better health - it does not decline.

    Sign in to read the full explanation

    Sign in

97. Question 97

    How much population of the world had been acknowledged by 1988?

    Over the one hundred years from 1950 to 2050, the world population was growing faster in the period 1962-1965, when it was increasing on average by 2.1 percent per year. The first billion in world population was achieved in 1804; by 1928, another billion was added; the third billion was added by 1960; the fourth by 1974; and the fifth by 1988. In 2000, the population had passed the 6 billion marks. By 2011, world had added another billion to the population. The dramatic change in the rate of growth is obvious. In 2020, for the first time since 1950, the rate of population growth declined below 1 percent annually. As per the estimates of UN, world prospectus report 2022, the world's two most populous regions in 2022 are Eastern and South-East Asia with 2.3 billion population (forming 29% of the world's population) and Central and South Asia with 2.1 billion population (forming 26% of the world's population). Sub-Saharan Africa will account for most of the growth of the world's population over the coming decades (the annual growth rate of the population of sub-Saharan Africa peaked at 3% in 1978 and remained above 2.8% during the 1980s), while several other regions will begin to experience decreasing population numbers. Whereas Europe and Northern America have reached a growth rate close to zero in 2020 and 2021.

    1. AFour Billion
    2. BFive Billion
    3. CSix Billion
    4. DSeven Billion

    Answer: (B) Five Billion

    Explanation

    The passage traces the billion marks: first in 1804, second by 1928, third by 1960, fourth by 1974, and the fifth by 1988. So world population reached 5 billion in 1988.

    Sign in to read the full explanation

    Sign in

98. Question 98

    As per the World Population Report 2022, how much of the world's population comes from Eastern and South-East Asia along with Central and South Asia?

    Over the one hundred years from 1950 to 2050, the world population was growing faster in the period 1962-1965, when it was increasing on average by 2.1 percent per year. The first billion in world population was achieved in 1804; by 1928, another billion was added; the third billion was added by 1960; the fourth by 1974; and the fifth by 1988. In 2000, the population had passed the 6 billion marks. By 2011, world had added another billion to the population. The dramatic change in the rate of growth is obvious. In 2020, for the first time since 1950, the rate of population growth declined below 1 percent annually. As per the estimates of UN, world prospectus report 2022, the world's two most populous regions in 2022 are Eastern and South-East Asia with 2.3 billion population (forming 29% of the world's population) and Central and South Asia with 2.1 billion population (forming 26% of the world's population). Sub-Saharan Africa will account for most of the growth of the world's population over the coming decades (the annual growth rate of the population of sub-Saharan Africa peaked at 3% in 1978 and remained above 2.8% during the 1980s), while several other regions will begin to experience decreasing population numbers. Whereas Europe and Northern America have reached a growth rate close to zero in 2020 and 2021.

    1. A50%
    2. B55%
    3. C45%
    4. D60%

    Answer: (B) 55%

    Explanation

    The passage states Eastern and South-East Asia hold 29% of the world's population and Central and South Asia hold 26%. Together that is 29 + 26 = 55%.

    Sign in to read the full explanation

    Sign in

99. Question 99

    In which year did the annual rate of world population growth first drop to under 1 percent?

    Over the one hundred years from 1950 to 2050, the world population was growing faster in the period 1962-1965, when it was increasing on average by 2.1 percent per year. The first billion in world population was achieved in 1804; by 1928, another billion was added; the third billion was added by 1960; the fourth by 1974; and the fifth by 1988. In 2000, the population had passed the 6 billion marks. By 2011, world had added another billion to the population. The dramatic change in the rate of growth is obvious. In 2020, for the first time since 1950, the rate of population growth declined below 1 percent annually. As per the estimates of UN, world prospectus report 2022, the world's two most populous regions in 2022 are Eastern and South-East Asia with 2.3 billion population (forming 29% of the world's population) and Central and South Asia with 2.1 billion population (forming 26% of the world's population). Sub-Saharan Africa will account for most of the growth of the world's population over the coming decades (the annual growth rate of the population of sub-Saharan Africa peaked at 3% in 1978 and remained above 2.8% during the 1980s), while several other regions will begin to experience decreasing population numbers. Whereas Europe and Northern America have reached a growth rate close to zero in 2020 and 2021.

    1. A2011
    2. B2021
    3. C2020
    4. D2022

    Answer: (C) 2020

    Explanation

    The passage says that 'in 2020, for the first time since 1950, the rate of population growth declined below 1 percent annually'.

    Sign in to read the full explanation

    Sign in

100. Question 100

     What was the average growth of world population during 1962-1965?

     Over the one hundred years from 1950 to 2050, the world population was growing faster in the period 1962-1965, when it was increasing on average by 2.1 percent per year. The first billion in world population was achieved in 1804; by 1928, another billion was added; the third billion was added by 1960; the fourth by 1974; and the fifth by 1988. In 2000, the population had passed the 6 billion marks. By 2011, world had added another billion to the population. The dramatic change in the rate of growth is obvious. In 2020, for the first time since 1950, the rate of population growth declined below 1 percent annually. As per the estimates of UN, world prospectus report 2022, the world's two most populous regions in 2022 are Eastern and South-East Asia with 2.3 billion population (forming 29% of the world's population) and Central and South Asia with 2.1 billion population (forming 26% of the world's population). Sub-Saharan Africa will account for most of the growth of the world's population over the coming decades (the annual growth rate of the population of sub-Saharan Africa peaked at 3% in 1978 and remained above 2.8% during the 1980s), while several other regions will begin to experience decreasing population numbers. Whereas Europe and Northern America have reached a growth rate close to zero in 2020 and 2021.

     1. A2.1%
     2. B2.8%
     3. C3.8%
     4. D3.1%

     Answer: (A) 2.1%

     Explanation

     The passage opens by saying world population was growing fastest in 1962-1965, 'when it was increasing on average by 2.1 percent per year'. The 2.8-3% figures in the passage refer specifically to sub-Saharan Africa.

     Sign in to read the full explanation

     Sign in