1.

Choose the correct alternative from the following

Unit I: Basic Issues in Economic Development

1. The intermediary landlordism which was abolished was known as
a. Tenants Reforms b. Zamindari System
c. Marwari System d.None of these
2. Globalization has increased the participation rate of
a.Male Workforce b. Female Workforce
c. Both a and b d. All of these
3. This farming is concentrated largely in the northern and western part of the country
a. Dairy Farming b .Pisciculture
c. Apiary d.Aviary
4. Population rises the size of the workforce also
a.increases b.decreases
c. remains constant d. none of these
5. The slowdown of Industrial Growth was observed in the decade of the
a. 1960 b.1970
c.1980 d. 1990
6. Savings is a stable and rising function of
a.Disposable Income b. Consumption
c.Government Expenditure d.Investment
7. The full form of ASI. This body is responsible for giving us employment on factory
sector
a. Annual Survey of Industries b. Anatomy Service Industries
c. Anthropological Survey of India d. None of these
8. The first report of the Economic Census 2013 is available on the website of
a. Ministry of IB b. MOSPI

Page 1 of 39

P.T.O
 c. Ministry of Defence d. DGE&T
9. Inflation makes
a. future rupees less valuable that present rupees b. future rupees more valuable that
present rupees present rupees
c. future rupees equal to present rupees d. None of these
10. Milton Friedman belongs to this School of Thought.
a. Harvard b. Chicago
c. MIT d. Princeton
11. Which one of the following is a function of money?
a. Medium of Exchange b. Transfer of value
c. Store of Value d. all the above
12. System where minimum gold reserve is fixed by law is called
a. proportional reserve system b. minimum gold reserve system
c. simple deposit system d. bonus deposit system
13. Scheduled Banks are those banks which are
a. based at foreign country b. nationalised
c. not nationalized d. included in the second schedule of RBI
14 SAARC,ASEAN are named of
a. Bilateral Agreements b. Bilateral Agreements
c. Regional Organisations d. Regional Organisations
15. Social Sector comprises of
a. education b. health
c. employment d. all the above
16. The works of the Labour Bureau
a. the working and living conditions of SC/ST b. living conditions of unorganized
workers
c. living conditions of contract labourer d. all the above
Page 2 of 39

P.T.O
17. The Phillips Curve is a trade of between unemployment and
a. inflation b. unemployment
c. Wage rate d. depression
18. Which of the following is a direct tax?
a. Corporate Tax b. Gift Tax
c. Wealth Tax d. All of these
19. The word budget is derived from
a. Greek b. Latin
c. French d. German
20 National income in India is estimated by
a. Planning Commission b. Finance Commission
c. Central Statistical Organisation d. ISI
21. The first public sector bank in India which obtained license for internet banking from
RBI’s
a. PNB b. Oriental Bank of Commerce
c. Corporation Bank d. SBI
22. The person selected for Forbes India Person of the Year Award for 2010.
a. Narendra Modi b. Nitish Kumar
c. Ratan Tata d. Mukesh Ambani
23. How much is India's share in the quota of the International Monetary Fund?

a. 1.5% b. 5%
c. 2.7% d. 4%
24. The First Five Year Plan was based on
a. Harrod Domar Model b. Lewis Model
c. Euler’s Theorem d. La Hospital Rule
25. The book ‘Planned Economy for India‘ was written by which of the following author?
Page 3 of 39

P.T.O
 a. Dr. Amarty Sen b. Jawaharlal Nehru
c. M Visvesvarya d.Indira Gandhi
26. The value of Balanced Budget Multiplier is
a. 3 b. 2
c. 1 d. 3.4
27. The government’s decision to increase tax rate leads to decrease in
a. autonomous consumption b. disposable income
c. savings. d. Government expenditure
28. India has highest foreign debt in the form of ...........
a. Non Resident Indian deposits b. Commercial borrowing
c. Loans taken from International Monetary Fund d. Foreign Exchange
29. What is meant by “Take off stage” in an economy?
a. It means steady growth begins. b. It means economy is stagnant
c. It means all controls are removed. d. It means economy is about to collapse.
Unit II: Policy Regimes
30. Who publish the Economy Survey of India?
a. Minister of Finance. b. Minister of External Affairs
c. Minister of Home Affairs d. Minister of Commerce and Industry
31. The most popular definition of sustainable development is given by
a. World Development Report b. UNDP Report
c. Brundtland d. IMF Report
32. As per the data of 2015, India has positive Balance of Payment (BOP) situation with
a. China b. USA
c. Japan d. Java
33. Inflation is measured with help of
a. Consumers’ Price Index b. Learning Curve

Page 4 of 39

P.T.O
 c. Cost Index Model d. Segmentation Model
34. The American Economy shows the characteristic of

a. Communist Economy b. Capitalistic Economy

c. Mixed Economy d. Socialistic Economy
35. The rate at which the Central Monetary Authority borrows money from commercial bank
is known as the
a. Repo Rate b. Ratio Analysis
c. Cash Reserve Ratio d. Reserve Repo Rate
36. Performance of Service Sector in India can be assessed
a. Sectorial Composition of GDP growth b. Employment contribution of Service
Sector
c. Productivity Growth in the Service Sector d. all of these
37. The measure for Inequality is known as
a. Converse Theorem b. Gini Coefficient
c. Euler Theorem d. none of these
38. The New Economic policy was enacted in
a. 1971 b. 1981
c. 1991 d. 2001
39. Good Governance has the following features
a. Accountable b. Transparent
c. Equitable d. all of these
40. The National Audit Authority is controlled by
a. Finance Secretary b. Information and Broadcasting Minister
c. Comptroller and Auditor General d. none of these
41. The Reports of Audit is discussed in the Parliament by
a. Reserve Bank of India b. Public Accounts Committee
Page 5 of 39

P.T.O
 c. Defence Ministry d. all of these
42. The Tragedy of Bhopal Gas Leak ocurred on
a. December 1984 b. March 1984
c. May 1984 d. February1984
43. The persistent rise in price level due to shocks generated within the demand system is
known as
a. Inflexion b. Inflation
c. Recession d. Stagflation
44. When G=T then the budget is called
a. surplus budget b. balanced budget
c. deficit budget d. None of these
45. The rate at which the commercial bank borrows money from Central Monetary Authority
is known as the
a. Repo Rate b. Ratio Analysis
c. Cash Reserve Ratio d. Reverve Repo Rate
46. The full form of EEC is known as
a. England Economy Country b. Engel Engel Curve
c. European Economic Community d. None of these
47. If C= 200+.67Y then mpc=
a. 68 b. 65
c. 67 d. 55
48. Birth rate is high as a consequence of
a. Wide spread illiteracy b. Early marriage
c. Absence of knowledge of family planning d. All of these
49. The Rational Expectation model was propounded by
a. Robert Lucas b. Milton Friedman
c. Martin King d. David Brown
Page 6 of 39

P.T.O
50. Monetary and Fiscal Policy is ineffective along the zone of
a. the liquidity trap. b. zone of equality
c. critical zone d. Phase region
51. When G>T then the budget is called
a. surplus budget b. balanced budget
c. deficit budget d. None of these
52. The persistent rise in price level due to shocks generated within the supply system is
known as
a. Demand Pull Inflation b. Cost Push Inflation
c. Segmentation Model d. Market rate of Interest
53. Investment and rate of interest are
a. Directly proportional b. Convex to the origin
c. Inversely proportional d. linear
54. When did demonetization take place in India?
a. 7th November 2018 b. 8th November 2016
c. 8th September 2016 d. 7th December 2017
55. Agricultural Revolution is termed as
a. White Revolution b. Red Revolution
c. Green Revolution d. Black Revolution
56. Indian Economy prior to the 1990’s was following the policy of
a. Import Management b. GST
c. Exim Policy d. Import Substitution
57. Demonitisation is an act of -------- the currency its status as legal tender.
a. stripping b. tearing
c. breaking d. reuse
58. Inflation has a trade off with
a. savings b. unemployment
Page 7 of 39

P.T.O
 c. speculative demand d. population
59. The Prime Minister of India during the Kargil War was
a. A B Vajpayee b. Tanseen
c. Narendra Modi d. Zakir Hussain
60. The author of the book “Wealth of Nations” is
a. Dr A. Sen b. Adam Smith
c. J. Keynes d. Michael Jordan
61. The main development of higher-yielding varieties of wheat, were developed by Indian
geneticist M. S. Swaminathan and American agronomist like
a. Tiger Woods b. Norman Borlaug
c. Joseph Minor d. Steve Hopkins
63. Investment and rate of interest are
a. Linear direct b. Parabolic
c. Linear inverse d. Elliptical
64. Price Stabilisation Fund is established by the Government to check the price fluctuations
of these crops.
a. tea, coffee b. tobacco, rubber
c. both (a) and (b) d. none of these
65. Money supply in India can be increased if
a. RBI puts out more paper money for circulation b. The commercial banks expand
their credit operations
c. Government of India borrows from RBI d. Both (a) and (c)
66. The RBI acts as a banker’s bank. This means
a. Other banks retain their deposits with RBI
b. RBI lends funds to the commercial banks in times of need.
c. RBI advices commercial banks on monetary policy
d. All of these

Page 8 of 39

P.T.O
67. Which bank in India became the first bank to open its branch in China?
a. IDBI b. HDFC
c. SBI d. PNB
68. The Seventh five Year Plan covered the period from
a. 1987-1992 b. 1988-1994
c. 1985-1990 d. 1986-1991
69. The Central Monetary Authority of USA is
a. RBI b. Bank of Arabia
c. Bank of England d. Federal Reserve
70. The minimum reserve deposit ratio of the banking system is determined from time to
time by the
a. State Bank of India b. AXIS Bank Ltd
c. CBI d. Reserve Bank of India
71. For a monopolist to discriminate prices the condition that elasticities should differ across
prices in a condition that is
a. necessary b. sufficient
c. necessary and sufficient d. none of these.
72. What was the annual rate aimed in the Eighth Five Year Plan?
a. 5.6% b. 6.5%
c. 7% d. 6%
73. OPEC is a cartel which is the association of the countries mostly of
a. East Africa b. Latin America
c. South East Asia d. Middle East
74. Examples of some of the Cost Estimation Models are
a. Segmentation Model b. Learning Curve
c. Cost Index Model d. all the above
75. East Asian Crisis occurred in
Page 9 of 39

P.T.O
 a. 1789 b. 1256
c. 1997 d. 1788
76. John Keynes was a renowned economist from
a. Classical School b. Neo Modern School
c. Neo Classical School d. School of New Zealand
77. Micro environment relates to internal matters of business such as
a. Size of the business b. Policy relating to business
c. Product produced d. All the above
78. This refers to the size and behaviour of the population in a country
a. Demographic environment b. Geographical and ecological environment
c. Legal environment d. Technological environment
79. Fiscal policy Monetary policy and Foreign policy determines the
a. Economic environment b. Geographical and ecological environment
c. Legal environment d. Technological environment
80. An economy is one in which there exist both government and private economic systems
a. Mixed Economy b. Capitalist Economy
c. Socialist Economy d. Both b & c
81. An example of Cooperative Duopoly is
a. Tata Sky b. CESC (Calcutta Electric Supply Corporation
c. Indian Railway d. Coco Cola Pepsi
82. An example of a monopolistically competitive market is
a. fish market b. fruit market
c. automobile d. restaurant
83. “Collusion denotes a situation in which two or more firms jointly set
that prices or output, divide the market among them, or make other business decisions.”
a. Paul A. Samuelson b. Dorris Lessing

Page 10 of 39

P.T.O
 c. Adam Smith d. David Ricardo
84. The Stabilization Policies are effective along the zone of
a. Recovery b. Investment
c. Liquidity trap d. Repo rate
85. Brokers, Tourists are important component of the
a. Money Market b. Forex Market
c. Monopoly Market d. Commodity Market
86. The full form of FII is
a. Foreign Intent Invention b. Foreign Intent Invention
c. Foreign Institutional Investment d. Foreign Institutional Investment
87. Cost Push Inflation can be controlled with the help of
a. MRTP Act b. Contractionary Monetary Policy
c. Forex Policy d. None of these
88. Project Scheduling is a
a. Strategic b. Tactical
c. Operational d. instances of market failure
89. This phase provides guidelines for implementing all plans into practice.
a. Production control b. Action
c. Planning d. Investment
90. If C= 500+.57Y then a=
a.234 b.500
c.324 d.245
Unit III: Growth, Development and Structural Change
91. BOT example is
a. Calcutta Metro b. Pune Highway
c. Mumbai Metro d. Hyderabad Highway

Page 11 of 39

P.T.O
92. Ethics are important because
a. Suppliers prefer to deal with ethical companies b. Customers prefer to deal with
ethical companies
c. Employees prefer to deal with ethical companies d. All of these
93. Monetization refers to
a. increase in money supply b. decrease on money supply
c. minting of coin d. converting barter into monetary transaction
94. Some examples of service sector employment are
a. Financial Services b. Insurance and Banking
c. News and Media d. all of these
95. What is the full form of GATT?
a. General Agreement on Trade and Tariff b. General Agreement on Travel and Trade
c. General Agreement on Tax and Tariff d. General Agreement on Tuff and Tax
96. Balance of visible imports and exports in a country over a period is called?
a. Balance of Trade b. Balance of Tours
c. Balance of Payments d. Balance of tax
97. What is the total number of member countries in the World Trade Organisation till
date?
a. 164 b. 189
c. 200 d. 93
98. What is the full form of ASEAN?
a. Association of Southeast Asian Nations b. Association for Southeast African
Nations
c. Association of Southeast Arabian Nations d. None of the above
99. As per the data of financial year 2017, which Indian state has lowest State Gross
Domestic Product?
a. Chandigarh b. Tripura
Page 12 of 39

P.T.O
 c. Manipur d. Lakshadweep
100. Minimum how many days of guarantee wage employment in a financial year does
MGNREGA aim to provide?
a) 100 days a)100 days
c) 75 days c) 75 days
101. Rural Urban Migration model are based on
a. Harris Todaro b. Lewis Model
c. Cost Index Model d. Segmentation Model
102. Value is the ratio of
a) Cost and benefit b) Benefit and cost
c) Both (a) & (b) d) None of these
103. Business ethics are based on well accepted
a) Moral values b) Social values
c) Ethical values d) Both (a) & (b)
104. Value stands for
a) Look of a thing b) Get up of a thing
c) Worth of a thing d) Appearance of a thing
105. The surplus generated by a business is called
a. Loss b. Break even
c. Profit d) None of these
106. Benefits derived from social responsibility includes
a. Enhanced organizational efficiency b) Producing better products
c) Both (a) & (c) d) Attracting people desiring to work for the firm
107. A leadership in which one organization declares the change in prices at first andassumes
that other organizations would accept it. The organization does not dominate others and need not
to be the leader in the industry
a. Barometric Price Leadership b. Dominant Price Leadership
Page 13 of 39

P.T.O
 c. Output Leadership d. Organizational Leadership
108. Who is First Nobel Prize winner in Economics?
a. John Nash b. Ragnar Frisch
c. A C Piguo d. David Camerron
109. Which sector got priority in the 1st five year plan?
a. Agricultural Sector b. Industry Sector
c. Service Sector d. All the above
110. Learning curve is an
a. experience curve b. turnpike curve
c. SR curve d. MR curve
111. How much is India's share in the quota of the International Monetary Fund?

a. 1.5% b. 5%
c. 2.7% d. 4%
112. Production Planning and Control has these phases
a. three b. one
c. two d. None of these
113. R and D planning is a -------------- decision.
a. Strategic b. Tactical
c. Operational d. Market rate of Interest

114. An example of Non -Cooperative Duopoly is

a. Tata Sky c. CESC (Calcutta Electric Supply Corporation
b. Indian Railway d. Coco Cola Pepsi
115. What was the annual rate aimed in the Tenth Five Year Plan?
a. 5.6% b. 6.5%
c. 7% d. 6%
Page 14 of 39

P.T.O
116. Globalization has decreased
a. job security b. Female Workforce
c. Both a and b d. All of these
117. This farming is concentrated on the cultivation of commercial fishing
a. Dairy Farming b. Pisciculture
c. Apiary d. Aviary
118. The money which is hoarded without paying any heed to the Income tax rules of the
country is called
a. Cold money b. black money
c. Hot money d. White money
119. As the consumer consumes more of a commodity, the utility of every additional
unit(MU) consumed diminishes. This isa
a. Law of diminishing marginal utility b. Equi-marginal utility
c. Indifference curve theory d. Revealed preference theory.
120. The net benefit or gain which a consumer enjoys by consuming one market basket instead
of another is known as
a. Consumers Surplus b. Producers Surplus
c. Equity d. Dividend
121. Inflation before full employment is reached is called
a. full inflation b. Partial inflation
c. Both a and b d. None of these
122. Inflation before full employment is reached is called
a. full inflation b. Partial inflation
c. Both a and b d. None of these
123. Inflation of above 50% per month is called
a. hyper inflation b. creeping inflation
c. galloping inflation d. None of these

Page 15 of 39

P.T.O
124. In India fiscal year ends on
a. 31st March b. 31st April
c. 1st April d. 1st March
125. Inflation adversely affects
a. profit earners b. fixed income earners
c. speculators d. None of these
126. Which country faced the problem of hyperinflation?
a. India b. Pakistan
c. Iran d. Brazil
127. Inflation after the end of war is an example of
a. hyper inflation b. deflation
C. suppressed inflation d. open inflation
Unit IV: Sectoral Trends and Issues
128. Production Planning and Control has these phases
a. three b. one
c. two d. None of these
129. FDI that involves operation in existing plant rather than the purchase of an existing plant
is known as
a. Green Field Investment b. Brown Field Investment
c. Government Expenditure d. Red Field Investment
130. Credit Policy is formulated by
a. RBI b. ASEAN
c. ISI d. PMO
131. Electricity power companies charge higher rates from industrial and commercial users
and lower rates from residential areas
a. second degree price discrimination b. first degree price discrimination
c. third degree price discrimination d. fourth degree price discrimination
Page 16 of 39

P.T.O
132. To compute updated cast of a boiler of the same capacity in the power plant we use
a. per unit model b. segmenting model
c. cost index model d. none of these
133. Production is a transformation process that converts inputs into
a. raw products b. Steel and wrought iron
c. intermediate goods d. finished product
134. Revealed preference theory was developed by
a. Paul A. Samuelson b. Christian Lorenz Ernst
c. M K Singh d. MS Srivastav
135. Who publish the Economy Survey of India?
a. Minister of Finance. b. Minister of External Affairs
c. Minister of Home Affairs d. Minister of Commerce and Industry
136. FDI that involves construction of new plant rather than the purchase of an existing plant
is known as
a. Green Field Investment b. Brown Field Investment
c. Government Expenditure d. Red Field Investment
137. The full form of CRR is
a. Control Ratio Reserve b. Contractionary Reserve Ratio
c. Cash Reserve Ratio d. None of these
138. The author of the book Poor Economics are
a. VS Giri and B Chawla b. Abhijit Banerjee and Esther Duflo
c. CR Irani and S Sen d. Sam Benegal and N R Sribastav
139. Significant role and functions of the capital market includes
a. mobilisation of savings b. acceleration of capital formation
c. provision of investment avenue d. all the above
140. Notable Financiacial Scam in the decades of the 1990’s included
a. Harshad Mehta b. Ketan Parekh
Page 17 of 39

P.T.O
 c. Both a and c d. none of these
141. An instrument of demand management which seeks to influence the level of economic
activity through control of taxation and government expenditure
a. Liquidity trap b. Fiscal Policy
c. Monetary Policy d. None of these
142. The tax levied directly on the income of the people by the Central Government is known
as
a. Sales tax b. Income tax
c. Wealth tax d. all the above
143. An instrument of demand management which seeks to influence the level of economic
activity through control of money supply
a. Liquidity trap b. Fiscal Policy
c. Monetary Policy d.None of these
144. Tax levied by the government on the income and wealth received by the household and
business.
a. Direct tax b. Indirect tax
c. Wealth Tax d. Sales Tax
145. IF S= -257+.25Y then
a. C=556+.56Y b. C=132+.45Y
c. C=257+.75Y d. C=256+.35Y
146. Share of tax revenue in GDP are as follows
a. Central Tax b. State Tax
c. Total Tax return d. All the above
147. The flexible Monetary targeting approach was followed by
a. Chakroborty Committee b. Sarkar Committee
c. Mukherjee Committee d. Nag Committee
149. The man responsible for reconstructing the monetary policy of USA
a. David Lucas b. Malthus
Page 18 of 39

P.T.O
 c. Milton Friedman d. H S Bhilai
150. The development which is matched by maintaining a rapport between the present and
future
a. jobless growth b. ruthless growth
c. sustainable development d. none of the above

Unit I: Basic Issues in Economic Development

1. Choose the correct alternative from the following
1.
Death rate is high on account of
a. poverty b. primitive sanitation
c. poor diet d. all of these
2. The persistent rise in price level due to shocks generated within the supply system is
known as
a. Demand Pull Inflation b. Cost Push Inflation
c. Segmentation Model d. Market rate of Interest

3. Birth rate is high as a consequence of

a. Wide spread illiteracy b. Early marriage
c. Absence of knowledge of family planning d. All of these
4. When did demonetization take place in India?
a. 7th November 2018 b. 8th November 2016
c. 8th September 2016 d. 7th December 2017
5. Agricultural Revolution is termed as
a. White Revolution b. Red Revolution
c. Green Revolution d. Black Revolution
6. Consumption is a stable and rising function of

Page 19 of 39

P.T.O
 a. Disposable Income b. Savings
c. Government Expenditure d. Investment
7. The Stabilization Policies are ineffective along the zone of
a. Recovery b. Investment
c. Liquidity trap d. Repo rate
8. Brokers, Tourists are important component of the
a. Money Market b. Forex Market
c. Monopoly Market d. Commodity Market
9. Holdings of liquid assets which can be sold on encashed on short notice and often
removed from the country is known as
a. Cold money b. black money
c. Hot money d. White money
10. Credit Policy is formulated by
a. RBI b. ASEAN
c. ISI d. PMO
11. The flexible Monetary targeting approach was followed by
a. Chakroborty Committee b. Sarkar Committee
c. Mukherjee Committee d. Nag Committee
12. What was the annual rate aimed in the Eighth Five Year Plan?
a. 5.6% b. 6.5%
c. 7% d. 6%
13. Milton Friedman was a renowned economist from
a. Chicago School b. Neo Modern School
c. Neo Classical School d. School of New Zealand
14 According to the latest Census figures sex ratio in India is
a. declining b. stable
c. fluctuating d. Increasing
Page 20 of 39

P.T.O
15. India mortgaged its gold in 1990 with
a. The Bank of Sydney b. Federal Reserve
c. Bank of England d. Bank of Ethopia
16. Cost Push Inflation can be controlled with the help of
a. MRTP Act b. Contractionary Monetary Policy
c. Forex Policy d. None of these
17. Significant role and functions of the capital market includes
a. mobilisation of savings b. acceleration of capital formation
c. provision of investment avenue d. all the above
18. The Seventh five Year Plan covered the period from
a. 1987-1992 b. 1988-1994
c. 1985-1990 d. 1986-1991
19. The Central Monetary Authority of USA is
a. RBI b. Bank of Arabia
c. Bank of England d. Federal Reserve
20 The minimum reserve deposit ratio of the banking system is determined from time to
time by the
a. State Bank of India b. AXIS Bank Ltd
c. CBI d. Reserve Bank of India
Unit II: Basic Features of the Indian Economy at Independence
21. Which one of the following Five year Plans recognized human development as the core
of all development efforts?
a. The Third Five Year Plan b. The Fifth Five Year Plan
c. The Eighth Five Year Plan d. The Sixth Five Year Plan
22. What was the annual rate aimed in the Eighth Five Year Plan?
a. 5.6% b. 6.5%
c. 7% d. 6%
Page 21 of 39

P.T.O
23. How much is India's share in the quota of the International Monetary Fund?

e. 1.5% f. 5%
g. 2.7% h. 4%
24. The First Five Year Plan was based on
a. Harrod Domar Model b. Lewis Model
c. Euler’s Theorem d. La Hospital Rule
25. The book ‘Planned Economy for India‘was written by which of the following author?
a. Dr. Amarty Sen b. Jawaharlal Nehru
c. M Visvesvarya d. Indira Gandhi
26. The value of Balanced Budget Multiplier is
a. 3 b. 2
c. 1 d. 3.4
27. The government’s decision to increase tax rate leads to decrease in
a. autonomous consumption b. disposable income
c. savings. d. Government expenditure
28. Garibi Hatao was a slogan raised during the time of
a. Morarji Desai b. Rajib Gandhi
c. Indira Gandhi d. V P Singh
29. What is meant by “Take off stage” in an economy?
a. It means steady growth begins. b. it means economy is stagnant
c. It means all controls are removed. d. It means economy is about to collapse.
30. Who publish the Economy Survey of India?
a. Minister of Finance. b. Minister of External Affairs
c. Minister of Home Affairs d. Minister of Commerce and Industry
31. The most popular definition of sustainable development is given by

Page 22 of 39

P.T.O
 a. World Development Report b. UNDP Report
c. Brundtland d. IMF Report
32. As per the data of 2015, India has positive Balance of Payment (BOP) situation with
a. China b. USA
c. Japan d. Java
33. Cost Estimation is measured with help of
a. Consumers’ Price Index b. Learning Curve
c. Cost Index Model d. Segmentation Model
34. The Indian Economy shows the characteristic of

a. Communist Economy b. Capitalistic Economy

c. Mixed Economy d. Socialistic Economy
35. The rate at which the Central Monetary Authority borrows money from commercial bank
is known as the
a. Repo Rate b. Ratio Analysis
c. Cash Reserve Ratio d. Reserve Repo Rate
36. Indian Economy prior to the 1990’s was following the policy of

a. Import Management b. GST

c. Exim Policy d. Import Substitution
37. Demonitisation is an act of -------- the currency its status as legal tender.
a. stripping b. tearing
c. breaking d. reuse
38. Inflation has a trade off with
a. Savings b. unemployment
c. speculative demand d. population
39. The Prime Minister of India during the Kargil War was
Page 23 of 39

P.T.O
 a. A B Vajpayee b. Tanseen
c. Narendra Modi d. Zakir Hussain
40. The author of the book “Wealth of Nations” is
a. Dr A. Sen b. Adam Smith
c. J. Keynes d. Michael Jordan
41. The main development of higher-yielding varieties of wheat, were developed by Indian
geneticist M. S. Swaminathan and American agronomist like
a. Tiger Woods b. Norman Borlaug
c. Joseph Minor d. Steve Hopkins
42. Investment and rate of interest are
a. Linear direct b. Parabolic
c. Linear inverse d. Elliptical
43. The persistent rise in price level due to shocks generated within the demand system is
known as
a. Inflexion b. Inflation
c. Recession d. Stagflation
44. When G=T then the budget is called
a. surplus budget b. balanced budget
c. deficit budget d. None of these
45. The rate at which the commercial bank borrows money from Central Monetary Authority
is known as the
a. Repo Rate b. Ratio Analysis
c. Cash Reserve Ratio d. Reverve Repo Rate
46. The full form of EEC is known as
a. England Economy Country b. Engel Engel Curve
c. European Economic Community d.None of these
47. If C= 200+.67Y then mpc=

Page 24 of 39

P.T.O
 a. 68 b. 65
c. 67 d .55
48. If C= 200+.67Y then a=
a. 234 b. 200
c. 324 d. 245
49. The Rational Expectation model was propounded by
a. Robert Lucas b. Milton Friedman
c. Martin King d. David Brown
50. Monetary and Fiscal Policy is ineffective along the zone of
a. the liquidity trap. b. zone of equality
c. critical zone d. Phase region
51. The intermediary landlordism which was abolished was known as
a. Tenants Reforms b. Zamindari System
c. Marwari System d.None of these
52. Globalization has increased the participation rate of
a. Male Workforce b. Female Workforce
c. Both a and b d. All of these
53. This farming is concentrated largely in the northern and western part of the country
a. Dairy Farming b. Pisciculture
c. Apiary d. Aviary
54. Population rises the size of the workforce also
a. increases b. decreases
c. remains constant d. none of these
55. The slowdown of Industrial Growth was observed in the decade of the
a. 1960 b. 1970
c.1980 d. 1990

Page 25 of 39

P.T.O
56. The full form of NAS
a. New Accounts Survey b. National Accounts Statistics
c. New Audit Scheme d. none of these
57. Primary sector comprises of
a. Agriculture and fishing b. entertainment
c. Transport d. Service
58. Service Sector involves
a. Entertainment b. Hotel Industry
c. Transport Industry d. all of these
59. When a country is in a state of underdevelopment the sector which has the largest
contribution is
a. Primary Sector b. Secondary Sector
c. Tertiary Sector d. all of these
60. Some examples of service sector employment are
a. Financial Services b. Insurance and Banking
c. News and Media d. all of these
Unit III: Policy Regimes
61. Performance of Service Sector in India can be assessed
a. Sectorial Composition of GDP growth b. Employment contribution of Service
Sector
c. Productivity Growth in the Service Sector d. all of these
62. The measure for Inequality is known as
a. Converse Theorem b. Gini Coefficient
c. Euler Theorem d. none of these
63. The New Economic policy was enacted in
a. 1971 b. 1981
c. 1991 d. 2001
Page 26 of 39

P.T.O
64. Good Governance has the following features
a. Accountable b. Transparent
c. Equitable d. all of these
65. The National Audit Authority is controlled by
a. Finance Secretary b. Information and Broadcasting Minister
c. Comptroller and Auditor General d. none of these
66. The Reports of Audit is discussed in the Parliament by
a. Reserve Bank of India b. Public Accounts Committee
c. Defence Ministry d. all of these
67. The Tragedy of Bhopal Gas Leak ocurred on
a. December 1984 b. March 1984
c. May 1984 d. February1984
68. Which of the following is a direct tax?
a. Corporate Tax b. Gift Tax
c. Wealth Tax d. All of these
69. The word budget is derived from
a. Greek b. Latin
c. French d. German
70. National income in India is estimated by
a. Planning Commission b. Finance Commission
c. Central Statistical Organisation d. ISI
71. The first public sector bank in India which obtained license for internet banking from
RBI’s
a. PNB b. Oriental Bank of Commerce
c. Corporation Bank d. SBI
72. The person selected for Forbes India Person of the Year Award for 2010.
a. Narendra Modi b. Nitish Kumar
Page 27 of 39

P.T.O
 c. Ratan Tata d. Mukesh Ambani
73. Monetization refers to
a. increase in money supply b. decrease on money supply
c. minting of coin d. converting barter into monetary transaction
74. Inflation before full employment is reached is called
a. full inflation b. Partial inflation
c. Both a and b d. None of these
75. Inflation before full employment is reached is called
a. full inflation b. Partial inflation
c. Both a and b d. None of these
76. Inflation of above 50% per month is called
a. hyper inflation b. creeping inflation
c. galloping inflation d. None of these
77. In India fiscal year ends on
a. 31st March b. 31st April
c. 1st April d. 1st March
78. Inflation adversely affects
a. profit earners b. fixed income earners
c. speculators d. None of these
79. Which country faced the problem of hyperinflation?
a. India b. Pakistan
c. Iran d. Brazil
80. Inflation after the end of war is an example of
a. hyper inflation b. deflation
C. suppressed inflation d. open inflation
81. Production Planning and Control has these phases

Page 28 of 39

P.T.O
 a. three b.one
c. two d. None of these
82. R and D planning is a -------------- decision.
a. Strategic b. Tactical
c. Operational d. Market rate of Interest
83. Public Sector projects shows
a. obeys the market mechanism b. instances of market failure
c. shows externalities in production d. all the above
84. Supply Finds its own demand is the
a. Okun’s Law b. Eullers’ Theorem
c. L Hospital Rule d. Marshalls’ Law
85. The following types of unemployment are observed in the agricultural sector
a. Disguised b. Both a and c
c. Seasonal d. Cyclical
86. The full form of WTO is
a. World Trade Organisation b. World Tour Operator
c. World Travel Owner d. None of these
87. He is the founder of the Dabbawallas of Mumbai
a. Mahadeo Havaji Bacche b. Yogendra Purushottam
c. CM Birla d. Prakash Padukon
88. SAARC, ASEAN are named of
a. Bilateral Agreements b. NAM Movements
c. Regional Organisations d. All the above
89. The full form of FII is
a. Foreign Intent Invention b. Forced Foreign Intention
c. Foreign Institutional Investment d.None of these

Page 29 of 39

P.T.O
90. Notable Financiacial Scam in the decades of the 1990’s included
a. Harshad Mehta b. Ketan Parekh
c. Both a and c d. none of these
91. If C= 234+.67Y then a=
a. 234 b. 200
c. 324 d. 245
92. Benefits derived from social responsibility includes
a) Enhanced organizational efficiency b) Producing better products
c) Both (a) & (c) d) Attracting people desiring to work for the firm
93. The money which is hoarded without paying any heed to the Income tax rules of the
country is called
a. Cold money b. black money
c. Hot money d. White money
94. The author of the book Poor Economics are
a. VS Giri and B Chawla b. Abhijit Banerjee and Esther Duflo
c. CR Irani and S Sen d. Sam Benegal and N R Sribastav
95. The first public sector bank in India which obtained license for internet banking from
RBI’s
a. PNB b. Oriental Bank of Commerce
c. Corporation Bank d. SBI
96 There are four phases of a business cycle. Identify the correct sequence of the occurrence
of these phases:
a. Recovery, Recession, Expansion, Depression b. Recovery, Expansion, Depression,
Recession
c. Depression, Expansion, Recession, Recovery d. Recovery, Expansion, Recession,
Depression
97 IF S= -137+.25Y then
a. C=456+.56Y b. C=134+.75Y

Page 30 of 39

P.T.O
 c. C=137+.75Y d. C=256+.35Y
98. The East Asian Crisis occurred in
a. 1980 b. 1997
c. 1879 d. 1768
99. The following types of unemployment are observed in the industrial sector
a. Disguised b. Both a and c
c. Seasonal d. Cyclical
100. The full form of EEC is
a. Euro Economic Complex b. European Economic Community
c. Essential Economic Convex d. None of these
101. The person selected for Forbes India Person of the Year Award for 2010.
a. Narendra Modi b. Nitish Kumar
c. Ratan Tata d. Mukesh Ambani
102. OPEC is a cartel which is the association of the countries of
a. East Africa b. Latin America
c. South East Asia d. Middle East
103. Inflation is measured with help of
a. Consumers’ Price Index b. Learning Curve
c. Cost Index Model d. Segmentation Model
104. The Following countries are the members of OPEC
a. Brazil b. Venezuela
c. Oman d. all the above
105. Rural Urban Migration model are based on
a. Harris Todaro b. Lewis Model
c. Cost Index Model d. Segmentation Model
Unit IV: Growth, Development and Structural Change

Page 31 of 39

P.T.O
106. Tax levied by the government on the income and wealth received by the household and
business.
a. Direct tax b. Indirect tax
c. Wealth Tax d. Sales Tax
107. Minimum how many days of guarantee wage employment in a financial year does
MGNREGA aim to provide?
a) 100 days a)100 days
c) 75 days c) 75 days
108. Inflation makes
a. future rupees less valuable that present rupees b. future rupees more valuable that
present rupees
c. future rupees equal to present rupees d. None of these
109. The shape of the decision node is a decision tree is
a. square b. Oval
c. triangle d. circular
110. The Phillips Curve is a trade of between unemployment and
a. inflation b. unemployment
c. Wage rate d. depression
111. If C= 300+.65Y then mpc=
a. 68 b. 65
c. 67 d. 55
112. Share of tax revenue in GDP are as follows
a. Central Tax b. State Tax
c. Total Tax return d. All the above
113. The best example of BOOT
a. Rajiv Gandhi Internation Airport b. Delhi Metro
c. Kolkata Metro d. all the above
Page 32 of 39

P.T.O
114. Household Sector Government Sector, Business Sector and Foreign Sectors are important
component of the
a. Money Market b. Forex Market
c. Commodity market d. None of these
115. India has highest foreign debt in the form of ...........
a. Non Resident Indian deposits b. Commercial borrowing
c. Loans taken from International Monetary Fund d. Foreign Exchange
116. Speculative demand for money and rate of interest are
a. Directly proportional b. Convex to the origin
c. Inversely proportional d. linear
117. The lowest point of depression is known as
a. trough b. unemployment
c. Wage rate d. depression
118. Dual Model of Agriculture is based on
a. Harris Todaro b. Lewis Model
c. Cost Index Model d. Segmentation Model
119. Ethics are important because
a. Suppliers prefer to deal with ethical companies b. Customers prefer to deal with
ethical companies
c. Employees prefer to deal with ethical companies d. All of these
120. The boom is the highest point of the phase of
a. Recovery b. Depression
c. Prosperity d. Recession
121. Full form of IPR is
a. Integrated Propensity Reforms b. Intellectual Property Rights
c. Indian Personal Rate d. Indian Personal Revenue

Page 33 of 39

P.T.O
122. In India, in 2004-05 the number of poor persons below poverty line was the highest in the
State of
a. Bihar b. Uttar Pradesh
C. Madhya Pradesh d. Rajasthan
123. Harrod-Domar model of economic growth is based on the equilibrium between
a. Income generation and productive capacity creation b. Equilibrium between
income and consumption
c. Equilibrium between savings and investment d. None of the above
124. Comparative cost advantage in Ricardo’s international trade theory arises due to
a. Labour cost differences b. Differences in factor endowment
c. Factor abundance defined in terms of factor prices d. All of the above
125. The endogeneous growth theory seeks to provide explanation for which of the following
determinants of growth that the Solow’s model did not explain?
a. Technical Progress b. Labour Growth
c. Role of the government in promoting growth d. All the above
126. Which is the better measure of welfare?
a. National Income b. Per Capita Income
c. Per Capita Disposable Income d. Gross National Product
127. The full form of ICDS is
a. Indian Child Development Scheme b. Integrated Child Development Service
c. Both a and b d. none of these
128. Conventional Social Security involves
a. Employment Guarantee Works b. Minimum Wage And Food Subsidies
c. Old Age Pension d. all of these
129. The Growth which implies a profile that aggravates inequalities in the system is known as
a. Ruthless Growth b. voiceless Growth
c. Futureless Growth d. Jobless Growth

Page 34 of 39

P.T.O
Unit V: Sectoral Trends and Issues
130. The payments mostly the public spending mostly the pension and welfare benefits
a. BOP b. Transferred payments
c. Gifts d. All the above
131. The growth that creates no additional opportunity of jobs and reduces the existing
opportunities as well is known as
a. Ruthless Growth b. voiceless Growth
c. Futureless Growth d. Jobless Growth
132. Which of the following items of private final consumption expenditure has the largest
share (in the PFCE) in recent years in the Indian Economy?
a. Clothing & Footwear b. Gross rent, Fuel & Power
c. Transport & Communication d. Furniture, Furnishings, etc.
133. Members of the World Trade Organization are required to
a. Eliminate all tariffs. b. Allocate quotas on a first come first basis.
c. Prevent their firms from “dumping”. d. Enforce patent rights for patent holders
from other countries.
134. The biggest component of reserve money in India is
a. Treasury bills b. Currency in circulation
c. Bankers deposits with RBI d. Other deposits with RBI
135. The M1 definition of money is
a. Currency outside banks and checking deposits b. Currency outside banks, checking
deposits and travellers checks
C. both a and b d. None of the above
136. .......... is the deepest lake in the world.
a. Aral Sea b. PearlHarbour
c. Lake Baikal d. Lake Titicaca
137. The castes of Lingayats and Okkaligas are associated with the state of
a. Karnataka b. Goa
Page 35 of 39

P.T.O
 c. Assam d. Madhya Pradesh
138. The most popular definition of sustainable development is given by
a. World Development Report b. UNDP Report
c. Brundtland d. IMF Report
139. Which of the following is not a component of Bharat Nirman?
a. Rural housing b. Rural electrification
c. Agro-based industries d. Rural telephony
140. For which of the following items of household consumption expenditures in India, NSSO
takes the reference period as 365 days?
a. Clothing, footwear, bedding, education etc. b. Edible oil, fish & meat, egg
c. Vegetables, fruits, spices, beverages & processed food d. All other food, fuel & light,
misc. goods & services
141. Who among the following is not associated with the collective bargaining by the labour
with the management?
a. R.G. Lipsey b. Neil W. Chamberlain
c. Carl M. Stevens d. Bevars D. Mabry
142. The situation of people in villages and towns of strong emigration receiving high amount
of remittances has been described as “private affluence and public squalor” by
a. M. Todaro b. John K. Galbraith
c. Arthur Lewis d. Gunar Myrdal
143. Which of the following is not correct about a population pyramid?
a. On the right side of the pyramid women’s age structure is shown.
b. It shows age and sex distribution of a population.
c. An expansive pyramid is narrow at the base but it expands as it moves up towards
higher ages.
d. Population pyramids can be used to find the economic dependents supported in a
particular population.
144. Most of the world’s requirement of newsprint is supplied by the .......... type

Page 36 of 39

P.T.O
of forest belt
a. Coniferous c. Mangrove
b. Arctic d. Deciduous
145. Which country faced the problem of hyperinflation?
a. India b. Pakistan
c. Iran d. Brazil
146. Inflation after the end of war is an example of
a. hyper inflation b. deflation
c. suppressed inflation d. open inflation
147. Globalization lead to
a. free mobility of labour b. free mobility of capital
c. Spread of International trade d. all the above
148. The tax levied by the government on the profit of companies and corporations
a. Custom Duty b. Corporate Tax
c. Gift Tax d. Interest Tax
149. WTO has introduced the following norms
a. IPR b. International Labour Standards
c. Environmental Norms d. All the above
150. An instrument of demand management which seeks to influence the level of economic
activity through control of money supply
a. Liquidity trap b. Fiscal Policy
c. Monetary Policy d. None of these

i) The condition of an economy characterized by high unemployment and high inflation is called
a) recession b)stagflation c)Expansion d) Trough
ii) The Phillips Curve is a trade of between inflation and
Page 37 of 39

P.T.O
 a)employment b)unemployment c)wage rate d)recession
iii) A W. Phillips is a renowned economist from
a) Middle East b) USA c) New Zealand d) Poland
iv) Inflation makes
a) future rupees less valuable that present rupees b) future rupees more valuable that present
rupees c) future rupees equal to present rupees d) None of these
v) The AS (Aggregate Supply) curve is derived from the
a) labour market or factor market b) commodity market c) fish market
d) money market.
vi) The AD(Aggregate Demand) curve is derived from the a) labour market or factor market
b) commodity market c) money market. d) Both b & c
vii)Demand Pull Inflation can be controlled with the help of
a) Contractionary Monetary Policy b) Contractionary Fiscal Policy c) Both a and b
d) None of these.
viii) Contractionary monetary policy leads to the rise in a) interest rate b) inflation rate c)
cost of capital d) Present Worth
ix)The excess demand gap in the economy is also known as
a) recessionary gap b) inflationary gap c) supply demand gap d) Both a & b
x)The Central Monetary Authority of USA is a) Reserve Bank b) Federal Reserve
c) Bank of England d) International Monetary Fund

Page 38 of 39

P.T.O
 Answers Group A Multiple Choice
1) ib) iib) iii)c iv)a v)a vi)d vii)a viii)a ix)b x)b

Page 39 of 39

P.T.O