1. If an Indian exporter exports to Bangladesh Rs. 50,000 worth of goods payable in three months, the balance of payment for India will show which one of the following?
(a) Current account credit goes up and capital account debit also goes up by Rs. 50,000 each
(b) Current account credit goes down and capital account debit goes up by Rs. 50,000 each
(c) Current account credit goes down and capital account debit also goes down by Rs. 50,000 each
(d) Current account credit goes up and capital account debit goes down by Rs. 50,000 each
Ans. (d)
2. Exchange rates are kept same in all the parts of market by using which one of the following?
(a) SDRs
(b) Arbitrage
(c) Fledging
(d) Speculation
Ans. (b)
3. Which one of the following is the correct sequence in the process of economic integration between different countries?
(a) Common market—Free trade area—Custom union— Economic union
(b) Free trade area—Custom union—Common market— Economic union
(c) Free trade area—Common market—Custom union— Economic union
(d) Common market—Free trade area—Economic union— Custom union
Ans. (b)
4. Which one of the following governs the theory which brings parity with respect to convertibility of currency into gold content?
(a) Mint parity of exchange
(b) Special Drawing Rights
(c) Floating exchange rate
(d) Multiple exchange rate
Ans. (a)
5. Special Drawing Rights (SDRs) introduced by the IMP are in which form?
(a) Gold
(b) Both silver and gold
(c) Paper currency
(d) Book-keeping entry only
Ans. (d)
6. In plan models, which type of model is generally used to check consistency among various sectors?
(a) Harrod -Domar model
(b) Input-output model
(c) Linear programming model
(d) Solow model
Ans (b)
7. Which one of the following is not a component of foreign aid of a country?
(a) Bilateral grant
(b) Multilateral grant
(c) Loans from international financial institutions
(d) Commercial borrowing
Ans. (d)
8. Match List-I with List-II and select the correct answer by using the code given below the lists:
List-I List -II
(Model) (Proposition)
A. Marxist model of economic development 1.Give importance to
non-economic variables
B. Harrod-Domar growth model 2. Flexible capital-output ratio is assumed
C. Solow’s growth model 3. Productive capacity is equal to
aggregate demand
D. Kaldor’s growth model 4. Structural Mal –adjustment in a
growing economy
Code:
A B C D
(a) 4 2 3 1
(b) 1 3 2 4
(c) 4 3 2 1
(d) 1 2 3 4
Ans. (c)
9. What is the major underlying assumption of efficiency wage models?
(a) Labour productivity depends on level of nutrition
(b) Labour productivity is independent of number of labourers -
(c) Capital productivity is maximum
(d) Capital and labour productivities are equal
Ans. (b)
10. The Feldman – Mahalanobis growth model, which one of the following strategies is followed?
(a) Emphasize the consumer goods first and then the investment goods
(b) Emphasize the investment goods first and consumer goods later
(c) Emphasize both the above sectors simultaneously
(d) Put emphasis on foreign trade only
Ans. (c)
11. What is the correct sequence of the Marxian stage theory of growth?
1. Slavery
2. Primitive Communism
3. Socialism
4. Communism
5. Feudalism
6. Capitalism
Select the correct answer by using the codes given below
(a) 1—2—3—4—5—6
(b) 2—1—5—6—3—4
(c) 1—2—5—6—3-4
(d) 2—1—5–6—4—3
Ans. (b)
12. Capital fundamentalism refers to which one of the following?
(a) Capital structure of a country
(b) Accelerated capital accumulation for development
(c) A capitalistic system of economy
(d) Growth of capital expenditure
Ans. (b)
13. To make meaningful international comparisons of income and living standards, which one of the following is most appropriate?
(a) A measure of purchasing power parity
(b) A measure of per capita income
(c) An index of poverty
(d) An index of infrastructure development
Ans. (a)
14. An over-valued currency in the foreign exchange market will have which one of the following impacts in India?
(a) Make imports costlier and exports cheaper
(b) Will ha4e no effect on cost of imports
(c) Give protection to domestic industry against foreign competition
(d) Make imports cheaper and exports costlier
Ans. (d)
15. If the Paasche’s index is 196 and Fishers’ index is 210, what is the value of the Laspeyre’ index?
(a) 220
(b) 215
(c) 225
(d) 230
Ans. (c)
