The questions are arranged in the following order: B.A

The questions are arranged in the following order:

● B.A (Hons.) Economics Semester 2: 2 papers

● B.A (Hons.) Economics Semester 4: 3 core papers & 1 SEC paper

● B.A (Hons.) Economics Semester 6: 4 papers

● B.A (Prog.) Economics: 3 papers (Semester 2, 4, 6)& 1 SEC paper

(Semester 4)

● B.Com. (P) Economics: 1 paper

● Generic Elective: 2 papers (Semester 2 and 4)

B.A.(Hons.) Economics

Semester 2

Introductory Macroeconomics

1. Which of the following is consistent with the fundamental identity of National Income

Accounting?

a. GDP = GNP – NFP

b. S = (Y+ NFP – T + TR+ INT) – C

c. Total production = Total income = Total expenditure

d. Y = C + I + G + NX

2. Which of the following is considered to be an investment in the National Income Accounts?

a. Increase in inventories of unsold goods

b. Purchase of Treasury bills

c. Money deposited in a bank

d. Purchase of land

3. With reference to inflation, which of the following statements is correct?

a. In India, controlling inflation is the responsibility of the Government of India

only

b. The Reserve Bank of India has no role in controlling inflation

c. Decreased money circulation helps in controlling inflation

d. Increased money circulation helps in controlling inflation

4. In light of a persistent deficit budget year after year, which of the following actions can be

taken by the government to reduce the deficit?

a. Reducing revenue expenditure

b. Introducing new welfare schemes

c. Rationalizing subsidies

d. Expanding industries

5. Which one of the following is not a function of money?

a. Means of barter

b. Unit of account

c. Store of value

d. Medium of exchange

e. Standard of deferred payment

6. Which of the following represents the opportunity cost of money in the concept of demand

for money?

a. Rate of interest

b. Changes in income velocity

c. Inflation rate

d. Growth of income

7. When interest rate rises, other things equal, we can expect the quantity of real money holdings

to _________

a. Fall

b. Increase

c. Not change

8. In the liquidity trap situation, demand curve becomes ______

a. Vertical

b. Horizontal

c. Positive slope

d. Negative slope

9. In a closed economy the goods market is in equilibrium when

a. Y = C + I + G

b. C + I = S + G

c. C + S = I + G

d. Y = S + I + G

10. At a point below the IS curve,

a. the real interest rate is above its equilibrium value

b. there is an excess demand for goods

c. saving exceeds investment

d. there is an excess supply of goods


Semester 2

Mathematical Methods for Economic Analysis.

1. Which of the following represents Cauchy Schwarz inequality?

a) │a.b│≤ ║a║.║b║

b) │a.b│≥ ║a║.║b║

c) │a+b│≤ ║a║+║b║

d) │a.b│= ║a║.║b║

2. Associative law is best described by:

a) A(B+C) = AB + AC

b) (AB)C = A(BC)

c) (A+B) = AC + BC

d) None of the above.

3. Rank of a matrix is equal to:

a) Dependent row vectors in a matrix

b) Independent row vectors in a matrix

c) Superfluous equations

d) None of the above

4. Degree of freedom is equal to:

a) Independent rows

b) Independent columns

c) Superfluous equations

d) Rank of the matrix

5.If AX=B has a solution, it implies:

a) r(Ab) = r(A)

b) r(Ab) ≤ r(A)

c) r(Ab) ≥ r(A)

d) r(Ab) > r(A)

6. Any set of vectors a1,a2,.........,an in Rm is linearly independent iff:

a) Some of them can be written as linear combination of others

b) None of them can be written as linear combination of others

c) All vectors lie in the same plane

d) None of above

7.Sarrus's rule doesn't generalize the result of determinants of:

a) Order of 2

b) Order of 3

c) Order greater than 3

d) Order greater than 4

8. Which of the following is not true?

a) (A')' = A

b) (A+B)' = A' + B'

c) (αA) = α'A'

d) (AB)' = B'A'

9. Matrix AB = 0 implies that

a) Matrix A = 0 always, B ≠ 0.

b) Matrix B = 0 always, A ≠ 0.

c) Matrices A & B are always zero.

d) Matrix of AB is equals to zero, doesn't required A or B has to zero.

10. The matrix A is said to be symmetric when

a) A=A-1

b) A≠A-1

c) A=A'

d) A≠A'

B.A. (Hons.) Economics

Semester 4

Intermediate Microeconomics- II

1. How many equilibria (in pure strategies) does the following game have?

Player 2

Rock Paper Scissors

Player 1

Rock 0 , 0 -1 , 1 1 , -1

Paper 1 , -1 0 , 0 -1 , 1

Scissors -1 , 1 1 , -1 0 , 0

a) 9

b) 3

c) 1

d) 0

2. The Prisoner's Dilemma is not a constant sum game because

a) some outcomes are better than others for both players.

b) the prisoners‟ sentences are necessarily non-zero.

c) the game does not have a Nash equilibrium.

d) the sum of the prisoners‟ sentences is non-zero.

3. The Nash equilibrium in a Bertrand price setting game in which firms first choose output

capacities resembles the equilibrium in

a) the competitive model.

b) theCournot model.

c) the cartel model.

d) the price leadership model.

4. A price leader in the Stackelberg model is assumed to know

a) the market demand curve.

b) its own cost function.

c) its rival‟s reaction function.

d) all of the above.

5. Suppose two coffee snobs who must have their coffee and cream in exact proportions (each

cup is 10 coffee units per 1 unit cream) are invited to a weekend long event (during which

they can easily consume 8 cups of coffee). Suppose Snob A is given 8 units of cream and

Snob B is given 80 units of coffee. The contract curve in the Edgeworth box would be

a) a right angle connecting the lower left corner with the upper right corner.

b) a curve (not a line) connecting the lower left corner with the upper right corner.

c) a line connecting the lower left corner with the upper right corner.

d) a right angle connecting the upper left corner with the lower right corner.

6. Which of the following factors may not interfere with the efficiency of perfect

competition?

a) increasing returns to scale.

b) imperfect price information.

c) externalities.

d) diminishing returns to scale.

7. The Coase theorem suggests that private negotiation will lead to the correction of market

failure when

a) only a few people are involved.

b) property rights are clearly recognized.

c) negotiation costs are low.

d) All the above options must hold true.

8. One way the “lemons problem” in the used-car industry can be mitigated is by

a) raising the price of used cars.

b) hiring auto experts to sell used cars.

c) requiring sellers to guarantee trouble-free cars.

d) allowing owners to trade in their own cars when they purchase a used car.

9. TheNash equilibrium in a Bertrand game of price setting, where all firms have the same

marginal cost, is

a) efficient because all mutually beneficial transactions will occur.

b) efficient because of the free entry assumption.

c) inefficient because some mutually beneficial transactions will be foregone.

d) inefficient because of the uncertainties inherent in the game

10. In the case of natural monopolies, the goal of government regulation is to

a) stop price-fixing, which reduces competition among firms.

b) take advantage of the monopolies' lower production costs.

c) set a level of price and service that would exist under competition.

d) halt the growth of natural monopolies or to break them up entirely.


Semester 4

Intermediate Macroeconomics-II

1. The features of classical system are:

i. Monetary factors determine output and employment

ii. Self adjusting mechanism of the economy

iii. State action to direct development

iv. Optimization through market in the absence of state control.

Which of the statements given above is/are correct?

a. i and ii

b. i, ii and iii

c. ii and iv

d. i, ii and iv

2. Suppose there is full employment and vertical aggregate supply schedule. An increase in

the nominal money supply:

a. Reduces the rate of interest and changes the composition of output

b. Causes a proportional increase in real output

c. Has no effect on the real money supply or the composition of output

d. Causes the real money supply to increase which changes the composition of output

3. Identify the correct chronological order of the following:

i. Keynes‟ Consumption function

ii. Life Cycle Hypothesis

iii. Relative Income Hypothesis

iv. Friedman‟s Permanent Income Hypothesis

Codes:

a. 4,2,1,3

b. 2,1,3,4

c. 1,3,4,2

d. 3,4,2,1

4. Assertion (A): According to the life cycle theory of consumption, an individual‟s level of

consumption depends not just on current income, but also on long run expected earnings.

Reason (R): Individuals are assumed to plan a pattern of expenditure based on earnings over

life time.

Codes:

a. A is true, but R is false

b. Both A and R are false

c. A is false but R is true

d. Both A and R are correct and R is correct explanation of A

5. When the current income includes negative transitory component, relating consumption

with current income will produce:

a. An average propensity to consume that is lower than the long run average

propensity to consume

b. An average propensity to consume that is higher than the average long run

propensity to consume

c. An average propensity to consume that equals the long run average propensity

to consume

d. None of the above

6. Which of the following decreases the nominal demand for money?

a. An increase in the price level

b. An increase in the interest rate

c. An increase in the amount of consumption expenditures

d. An increase in the transactions costs of exchanging bonds for money.

7. A permanent, parallel upward shift in the production function causes the:

a. Interest rate to decline

b. Interest rate to rise

c. Price level to rise

d. Level of output to rise

8. Are government activities of any concern to macroeconomists?

a. No, since macroeconomists study hypothetical economies those have no government

involvement at all.

b. Yes, since macroeconomics is defined as the study of the role that government plays in

the economy.

c. Yes, since government actions and policies can affect an economy's overall

performance.

d. No, since the government cannot affect the functioning of the private economy.

9. If the interest rate were to rise, we expect that:

a. Autonomous expenditures will rise.

b. The amount of money people want to hold will fall.

c. The supply of money will fall.

d. The amount of money people want to hold will rise.

10. The unintended inventory changes are negative

a. When the economy is recovering from a recession.

b. When the sales are unexpectedly low.

c. When firms expect their sales to increase.

d. When firms expect GDP to increase.


Semester 4

Introductory Econometrics

1. Which of the following statements is true?

a. If we reject a null hypothesis at 1%, we would reject it at 5% as well.

b. t-distribution is independent of number of observations and parameters.

c. An unbiased estimator is one whose asymptotic expected value equals the

population parameter.

d. Among two unbiased estimators, we would like to pick the one with greater

variance as it would be more efficient.

For Questions 2-4: A shop caters to 320 persons as average number of customers with a

standard deviation of 50 persons. When an attractive display is used to promote the shop, the

average number of customers for 100 days increases by 15 persons. Can we say that the

display was useful?

2. What are the null and alternate hypotheses for the above situation?

a. H0: μ=320, H0: μǂ320

b. H0: μ=320, H0: μ>320

c. H0: μ=320, H0: μ=335

d. H0: μ=335, H0: μ<335

3. Which test statistic would you compute?

a. Z

b. t

c. chi square

d. F

4. What is the value of the test statistic?

a. 1

b. 2

c. 3

d. 4

5. Choose the correct option.

Statement 1: Chi-square (with k degrees of freedom) is the sum of squares of k independent

standard normal variables.

Statement 2: Chi-square distribution is symmetric.

Statement 3: For a two-tailed test, we can take a single χ2

value (at α/2 significance level)

from the tables as we do for z test (zα/2).

a. All three statements are correct.

b. None of the three statements is correct.

c. Statement 1 and 2 are correct. Statement 3 is incorrect.

d. Statement 1 is correct. Statement 2 and 3 are incorrect.

6. Choose the correct option.

Statement 1: F-statistic is the ratio of two independent chi-square variables divided by their

respective degrees of freedom.

Statement 2: The distribution of F-statistic is symmetric.

a. Both statements are correct.

b. None of the two statements is correct.

c. Statement 1 is correct. Statement 2 is incorrect.

d. Statement 1 is incorrect. Statement 2 is correct.

For Questions 7-9: A sample of 21 observations gives standard deviation of 9. Could this

sample been derived from a normal population with variance 9?

7. Which test statistic would you compute?

a. Z

b. t

c. chi square

d. F

8. What would be the computed test statistic?

a. 180

b. 190

c. 20

d. Insufficient information

9. What is the critical value at 5% level of significance for the right-tailed test?

a. 23.671

b. 31.410

c. 30.144

d. 10.851

10. Sample 1 of size 20 gives mean 12 and standard deviation of 7. Sample 2 of size 10 gives

mean 14 and variance as 49. To find whether these two samples can be regarded as coming

from the same population, what will be the value of test statistic?

a. 1

b. 2

c. 7



Semester 4

SEC- Contemporary Economic Issues

1. Which of the following statement(s) is/are correct?

Statement A: Sector specific grants are continued from the Thirteenth Finance Commission to

the Fourteenth Finance Commission (FFC).

Statement B: The FFC has recommended reductions in Grant-in Aids and Central Assistance

to States (CAS).

Statement C: The FFC has recommended grants to rural and urban local bodies, performance

grant, grants for revenue deficit.

a. A and B

b. A and C

c. B and C


2. Which of the following new variables have been incorporated for tax devolution by

theFourteenth Finance Commission (FFC)?

A: 2011 Population

B: Fiscal discipline of states

C: Forest cover

D: Human Development Index (HDI) of the state

a. A and C

b. A, B and C

c. A, B and D

d. B and D

3. Which of the following statement/s is/are correct?

Statement A: The Fourteenth Finance Commission (FFC) has enhanced the share of the states

from the current 32 per cent to 40 per cent.

Statement B: All special category states are gainers while only few general category states

will benefit in absolute terms.

a. B only

b. A only

c. Both A and B


4. Which of the following roles/functions/responsibilities are NOT under the purview of the

Financial commission?

A: Sharing of net proceeds of taxes between the Center and States.

B: Recommending principles for governing the grants-in-aid to the states by the Center.

C: Recommendations on matters referred to it by the President for the interest of sound

finance.

D: Preparation and periodical revision of electoral rolls.

a.A only

b.B only

c.C and D

d.D only

5. Which of the following is/are included in the capital budget of the Government of India?

A: Expenditure on acquisition of assets like roads, buildings, machinery, etc.

B: Loans received from foreign governments

C: Loans and advances granted to the States and Union Territories

a.A only

b.B and C

c.A and C

d.A,B and C

6. With reference to „Stand Up India Scheme‟, which of the following statements is/are

correct?

A: Its purpose is to promote entrepreneurship among SC/ST and women entrepreneurs.

B: It provides for refinance through SIDBI.

a.Aonly

b.B only

c.Both A and B

d.Neither A nor B

7. „Pradhan Mantri Jan-Dhan Yojana‟ has been launched for

a. providing housing loan to poor people at cheaper interest rates.

b. promoting women‟s Self-Help Groups in backward areas.

c. promoting financial inclusion in the country.

d. providing financial help to the marginalized communities.

8. A decrease in tax to GDP ratio of a country indicates which of the following?

A: Slowdown in economic growth rate

B: Less equitable distribution of national income

a.A only

b.B only

c.Both A and B

d.Neither A nor B

9. The Government of India established NITI Aayog to replace the

a.Human Rights Commission

b.Finance Commission

c.Law Commission

d.Planning Commission

10. What is Direct Benefit Transfer?

a) Cash discount on goods

b) Remittance through Banks

c) Transfer of social benefits/ subsidies directly in Bank accounts of beneficiaries

d) None of above


Semester 6

Development Theory and Experience-II

1. In a fixed rent tenancy, risk is

a. borne by the tenant.

b. borne by the landlord.

c. shared between landlord and tenant.


2. In the Harris-Todaro model, in equilibrium, the expected urban wage rate will be

_________the rural wage rate.

a. greater than

b. equal to

c. less than

d. none of the above

3. Children have costs and benefits to parents. Choose the correct statement.

a. Fathers and mothers share these equally.

b. The impact on family income is always negative, so children can be viewed as

consumer durables.

c. There is a trade off to parents between quantity and quality of children.

d. The income elasticity of demand for children is strongly negative.

4. Both the Ricardian growth model and the Lewis model share the assumption that

population growth will outpace food production in the long run.

a. True

b. False

5. The Lewis model of the dual economy makes the following assumption(s):

a. The rural wage initially remains constant.

b. Industry makes a profit by employing cheap labour.

c. Rural wage will rise when industry expands sufficiently.

d. All of the above.

6. Industry faces an elastic supply curve of labour because the marginal product of labour in

agriculture is

a. Lower than its marginal product in industry.

b.Less than the average product in agriculture.

c. Very low or zero.

d. Constant at all levels of agricultural output.

7. The Malthusian theory of population growth, as formulated by Malthus, proved

a. Entirely correct for human behaviour.

b. Overly pessimistic about future productivity increases.

c. That food output will decline with population growth.

d. None of the above.

8. The Arthur Lewis model utilizes the assumption that

a. An unlimited supply of labor is available at a fixed wage rate.

b. Supply of labor is a strictly increasing function of wage rate.

c.Labor supply grows at a fixed rate.

d. Disguised unemployment must not exist in the agricultural sector.

9. All but one of the following elements is a characteristic of the demographic transition.

Which one is the exception?

a. Initially high birth rate and death rate.

b. Initially low rate of natural increase.

c. Rapid increase in the birth rate during the early stages of development.

d. Rapid increase in the death rate during the early stages of development.

10. Which of the following is a direct implication of the view that childbearing is an

economic decision?

a) People will not have additional children unless they can earn a profit from doing so.

b) Social factors have no effect on childbearing decisions.

c) Compulsory education will increase fertility by raising each child's prospective

earnings.

d) Fertility should fall with improved opportunities for women to work in jobs outside

the home.


Semester 6

International Economics

1. One of the main advantages of trade, as suggested by economists, is

a. Lower tariffs

b. Technological changes

c. Competition with foreign suppliers

d. Development of tourism

2. Which of the following is the major constituent of the Indian Foreign Exchange

Reserve?

a. Gold

b. SDRs

c. Foreign Currency Assets (FCA)

d. Reserve Tranche Position of India in IMF.

3. The Headquarters of IMF and World Bank are located at:

a. Geneva and Montreal respectively

b. Geneva and Vienna respectively

c. New York and Geneva respectively

d. Washington DC

4. Comparative advantage theory predicts that the trade between similar industrialised

countries should:

a. Be much greater than trade between dissimilar countries

b. Be rather limited in size

c. Consist mainly of high technology goods

d. Be bidirectional with one country exporting products to the other countries and

simultaneously importing the same products from them.

5. Which of the following is two-way trade in which the country‟s both export and import

products that are the same or similar?

a. Net trade

b. Product differentiation trade

c. Intra-Industry trade

d. Internal Trade

6. Which of the following can explain the rise of intra-industry trade?

a. Recent recessions and increases in the price of oil have led to lower national income

levels

b. Demand for product variety has increase

c. The evolution of service based economies has led to smaller national manufacturing

bases


7. Which trade model posits that trade flows between countries will be larger as the economic

sizes of the two countries are larger and the geographic distance between the two countries is

smaller?

a. The Hecksher-Ohlin Model

b. The Product Differentiation Model

c. The Gravity Model

d. The Stopler-Samuelson Model

8. The Gravity model of international trade would predict larger trade flows between

countries that:

a. Are more similar in population

b. Are geographically farther from each other

c. Are more dissimilar in economic size

d. Are larger in combined economic size

9. When external scale economies exist in an industry, new export opportunities will cause

consumers in the exporting country to ________________ surplus and consumers in the

importing country to ________________ surplus.

a. Gain; gain

b. Gain; lose

c. Lose; lose

d. Lose; gain

10. The term tariff, as used in international trade, refers to:

a. The price of goods when they leave the producing country

b. A limit on the quantity of a good that can be imported into a country

c. A government payment to encourage exports

d. A tax on imports


Semester 6

Applied Econometrics

1. Which of the following statements is not a model selection criterion?

a. The predictions made from the model must be logically possible.

b. The values of the parameters should be stable.

c. It should be consistent with theory.

d. The explanatory variable must be correlated with the error term.

2. For the model Yi = A+ BXi + ui, the following regression is estimated:

Y-hati= A+ BXi + C Y-hati2 + D Y-hati

3 + ui

Identify the above regression.

a. Ramsey‟s RESET test

b. Lagrange Multiplier (LM) Test

c. White‟s test for heteroscedasticity

d. Breusch-Pagan test for heteroscedasticity

3. In the presence of errors in measurement in the explanatory variable, which of the

following statements is not true?

a. The OLS estimators are biased and inconsistent.

b. The explanatory variable and the error term are correlated.

c. If β is positive, β-hat will under-estimate β.

d. If β-hat is negative, β-hat will under-estimate β.

4. In the presence of errors in measurement in the dependent variable, which of the

following statements is not true?

a. The OLS estimators are unbiased.

b. The explanatory variable and the error term are not correlated.

c. The estimated variances are smaller than in the case where there are no such

errors of measurement.

d. The new error term is a composite error term.

5. If Mallow‟s Cp criterion is 5 for the regression model with 6 regressors and 7 for model

with 7 regressors. Which model would you choose?

a. Model with 6 regressors

b. Model with 7 regressors

c. None

d. Both are good fit

6. Consider the data point (97,12). The bulk of X values are in the range [10,60]. The gap

between Y(12) and estimated Y is largest as compared to those of all other Y values.

Choose the correct option,

Statement 1: The data point (97,12) is an outlier.

Statement 2: The data point (97,12) has high leverage.

Statement 3: When the regression line is re-estimated, excluding this observation, the

regression line drastically changes. So, the data point has high influence.

a. All three statements are correct.

b. None of the three statements is correct.

c. Statement 1 and 2 are correct. Statement 3 is incorrect.

d. Statement 1 is correct. Statement 2 and 3 are incorrect.

7. Which, among the following does not impose a penalty for adding regressors?

a. Adjusted R-square

b. R-square

c. Akaike Information Criterion

d. Schwarz Information Criterion

8. The Lagrange Multiplier test involves

a. a Z test

b. a F test

c. a chi square test

d. Not defined

9. Examination of residuals is a good visual diagnostic to detect

a. Heteroscedasticity

b. Autocorrelation

c. Model specification error

d. All of the above

10. If 5 regressors are selected out of 10 candidate regressors, what is the true level of

significance if α=10%?

a. 10%

b. 20%

c. 5%



Semester 6

Financial Economics

1. Two alternative expected returns are compared with help of

a. coefficient of variation

b. coefficient of deviation

c. coefficient of standard

d. coefficient of return

2. If yield on bond is 7% and market required return is 14%, then market risk premium would

be

a. 2%

b. 21%

c. 12%

d. 7%

3. The most favourable portfolio is proficient portfolio with the

a. lowest risk

b. highest risk

c. highest utility

d. least investment

4. If generally interest rates in a nation increase, a corporate bond with a fixed interest rate

will usually

a. increase in value

b. remain unchanged

c. decrease in value

d. be returned to corporation

5. The concept of compound interest refers to:

a. earning interest on the original investment.

b. payment of interest on previously earned interest.

c. investing for a multi-year period of time.

d. determining the APR of the investment.

6. Assume your total expense for the current year in the college equals $20,000.

Approximately how much would your parents have needed to invest 21 years ago in an

account paying 8% compounded annually to cover this amount?

a. $ 952

b. $1,600

c. $1,728

d. $3,973

7. Derivatives are financial instruments that:

a. Present high levels of risk and should only be used by the wealthy.

b. When used correctly can actually lower risk.

c. Should only be used by people seeking high returns from high risk.

d. All of the above.

8. The short position in a futures contract is the party that will:

a. Deliver a commodity or financial instrument to the buyer at a future date.

b. Suffer the loss.

c. Accept the risk.

d. Benefit from increases in price of the underlying asset

9. With a futures contract:

a. Payment is made when the contract is created.

b. No payment is made until the settlement date.

c. The short position agrees to purchase the underlying asset.

d. The risk is eliminated for both parties.

10. The key difference between a forward and a futures contract is:

a. A forward contract is highly customized where a futures contract is not.

b. A forward contract is bought and sold on organized exchanges.

c. Futures contract are customized and forward contracts are agreement

d. All of the above

B.A.(Programme)

Semester 2

Principles of Microeconomics II

1. If the government wants to establish a socially optimal price for a natural monopoly, it

should select the price at which:

a. Average revenue equals zero

b. Marginal revenue equals zero

c. The marginal cost curve intersects the demand curve

d. The average total cost curve intersects the demand curve

e. Marginal revenue equals marginal cost

2. When a firm charges each customer the maximum price that the customer is willing to pay,

the firm:

a. Engages in a discrete pricing strategy

b. Charges the average reservation price

c. Engages in second-degree price discrimination

d. Engages in first-degree price discrimination

3. In the absence of intervention, imperfect competition, externalities, public goods and

imperfect information will all result in which of the following?

a. Demand curves that should be added vertically

b. Market failure

c. Prices that are too low

d. Quantities of the output that are too high

e. An excess of pollution

4. A monopolistically competitive firm in short-run equilibrium:

a. Will make negative profit

b. Will make zero profit (break-even)

c. Will make positive profit

d. Any of the above is possible

5.A typical characteristic of an oligopoly market structure is:

a. Firms in the industry are typically characterized by very diverse product lines

b. Products typically sell at a price that reflects their marginal cost of production

c. The actions of one seller can have a large impact on the profitability of other sellers

d. Since markets are typically large, the actions of one seller largely go unnoticed by

its competitors

6. What is the firm‟s profit maximization condition in input market?

a. PL = MRPL

b. PL< MRPL

c. PL> MRPL

d. PL = MPL

7. Which of the following factor is not responsible for a shift in demand curve of labour?

a. Demand for output

b. Price of other inputs

c. Technological change

d. Price of labour input

8. How are gains from trade distributed in Absolute Advantage Theory of International trade?

a. On the basis of absolute advantage

b. On the basis of productivity

c. On the basis of exchange rate of goods


9. When absolute advantage is not present, then:

a. Trade is not beneficial

b. Specialization is not possible

c. Trade depends on comparative advantage


10. Calculate gains from trade on the basis of absolute advantage theory:

Country A and Country B own 100 acres of land each and produce two goods devoting half

of land to each crop.Their productivity per acre of land is as follows:

Country A Country B

6w 3w

3c 6c

Use the exchange rate 2w for 2c.

a. 150 w, 150 c

b. 100 w, 100 c

c. 200 w, 200 c

d. 50 w, 50 c

B.A. (Programme)

Semester 4

Principles of Macroeconomics II

1. Expansionary Fiscal Policy involves:

a. Reduction in G and increase in T

b. Reduction in T and increase in G

c. Reduction in both G & T

d. Increase in both G & T

2. Which policy leads to crowding out of private investment?

a. Contractionary Fiscal policy

b. Expansionary Fiscal policy

c. Contractionary Fiscal Policy and Expansionary Monetary Policy

d. Both 2 & 3

3. Which Policy mix is supportive of Private investment?

a. Contractionary Fiscal and Expansionary Monetary Policy

b. Contractionary Fiscal and Monetary Policy

c. Expansionary Fiscal and Monetary Policy

d. Expansionary Fiscal and Contractionary Monetary Policy

4. Which of the following factor leads to increase in demand for money?

a. Increase in interest rate

b. Increase in income

c. Decrease in price level


5. Aggregate demand is downward sloping because of:

a. Consumption Link

b. Investment Link

c. Wealth Link

d. All of the above

6. The premise that there exists inverse relationship between money wage inflation and

unemployment was originally given by:

a. AW Phillips

b. Milton Friedman

c. Philips Cagan

d. Robert Lucas

Q7: Which of the following does not cause the aggregate demand curve to shift to the right?

a. An increase in net exports.

b. An increase in government spending.

c. An increase in taxes.

d. An increase in consumer optimism.

8. Deflation is:

a. An increase in the overall level of economic activity.

b. An increase in the overall price level.

c. A decrease in the overall level of economic activity.

d. A decrease in the overall price level.

9. According to the Classical model, unemployment:

a. Could not persist because wages would fall to eliminate the excess supply of

labour.

b. Could persist for long periods of time.

c. Could be eliminated only through government intervention.

d. Could never exist.

10.If prices do not adjust rapidly to maintain equality between quantity supplied and quantity

demanded, the prices are:

a. Market prices.

b. Sticky prices.

c. Fixed prices.

d. Regulatory prices.

B.A. (Programme)

Semester 4

SEC paper: Research Methodology

1. Which is the main objective of research?

a. To review the literature

b. To summarize what is already known

c. To get an academic degree

d. To discover new facts or to make fresh interpretation of known facts

2. Identify the correct sequence of research steps:

a. Selection of topic, review of literature, data collection, interpretation of

findings

b. Review of literature, selection of topic, data collection, interpretation of

findings

c. Selection of topic, data collection, review of literature, interpretation of

findings

d. Selection of topic, review of literature, interpretation of findings, data

collection

3. The research that aims at immediate application is:

a. Action Research

b. Empirical Research

c. Conceptual Research

d. Fundamental Research

4. Which one of the following is a research tool?

a. Graph

b. Illustration

c. Questionnaire

d. Diagram

5. A research paper is a brief report of research work based on

a. Primary Data only

b. Secondary Data only

c. Both Primary and Secondary Data


6. In the process of conducting research “Formulation of Hypothesis” is followed by:

a. Statement of Objectives

b. Analysis of Data

c. Selection of Research Tools

d. Collection of Data

7. Which of these is not a method of data collection?

a. Questionnaires

b. Interviews

c. Experiments

d. Observations

8. Secondary/existing data may include which of the following?

a. Official documents

b. Personal documents

c. Archived research data

d. All of the above

9. Attributes of objects, events or things which can be measured are called:

a. Qualitative measure

b. Data

c. Variables


10. A researcher selects a probability sample of 100 out of the total population, it is:

a. A cluster sample

b. A random sample

c. A stratified sample

d. A systematic sample

B.A. (Programme)

Semester 6

Economic Development and Policy in India

1. Who was the Chairman of the 13th Finance Commission of India?

a. Indira Rajaraman

b. C Rangarajan

c. Vijay Kelkar


2. Which of the following is used for the measurement of distribution of income?

a. Laffer Curve

b. Engel‟s Law

c. Gini-Lorenz Curve

d. Philip Curve

3. Which of the following is a good indicator of overall economic development of a country?

a. Its agriculture

b. Its transport

c. Its gross production

d. Its per capita income

4. What is the mainstay of Indian economy?

a. Manufacturing

b. Business

c. Public sector

d. Agriculture

5. Economic survey is published by

a. Ministry of Finance

b. Planning Commission

c. Government of India

d. Indian Statistical Institute

6. When, for the first time, did the Prime Minister of India announce the 20-point Economic

Programme?

a. 1973

b. 1974

c. 1975

d. 1976

7. What does the term NSDL stands for?

a. National Securities Development Limited

b. National Securities Depository Limited

c. National Safety Development Limited

d. Natural Safety Deployment Limited

8. Which of the following organizations looks after the credit needs of agriculture and rural

development in India?

a. FCI

b. IDBI

c. NABARD

d. ICAR

9. Which of the following estimates the National Income in India?

a. Central Statistical Organization

b. National Income Committee

c. Planning commission

d. Reserve Bank of India

10. An economy is at the „take off‟ stage on its path to development when it

a. becomes stagnant

b. begins steady growth

c. is liberalized

d. gets maximum foreign aid

B.Com.(P) Semester 6

International trade

1. The terms of trade refer to-

a. The excess of import expenditures over export earnings.

b. Trade agreements

c. The ratio between export and import prices.

d. The terms and conditions on which a country is offered loan in the event of

balance of payments difficulties

2. What is the correct sequence of the following?

1. Uruguay round talks

2. WTO‟s Seattle meet

3. Establishment of GATT

a. 1,2,3

b. 3,1,2

c. 3,2,1

d. 2,3,1

3. The Heckscher-Ohlin theory of trade pattern assumes

a. Perfect competition in the product markets but not in the factor markets

b. Perfect competition in the factor markets but not in the product markets

c. Perfect competition in both product and factor markets

d. Unemployment in the labour market

4. “MFN clause” under GATT requires

a. Preferential treatment to particular identified countries

b. Preferential treatment only to developing countries

c. Preferential treatment to countries with balance of payment deficit

d. Preferential treatment to all member countries of GATT

5. Dumping aims at flooding a foreign country with

a. High priced commodities

b. Low priced commodities

c. Commodities with similar prices

d. Commodities with fluctuating prices

6. The Theory of Comparative Advantage was presented by:

a. Adam Smith

b. Ricardo

c. Hicks

d. Arshad

7. Net exports equal:

a. Exports * Imports

b. Exports + Imports

c. Exports - Imports

d. Exports of services only

8. Which trade theory holds that nations can increase their economic well-being by

specializing in the production of goods they produce more efficiently than anyone else?

a. The international product life cycle theory

b. The theory of absolute advantage

c. The theory of comparative advantage

d. The factor endowment theory

9. Which of the following factors influence trade?

a. Government

b. The relative price of factors of production

c. The stage of development of a product

d. All of the above

10. _____was replaced by ______on 1stJan, 1995.

a. GATS, WTO

b. WTO, GATT

c. GATT, WTO

d. IMF, GATT

General Elective-Economics

Semester 2

Introductory Macroeconomics

1.Shoeleather cost of holding money leads to increase

a. AC of holding money.

b. MC of holding money.

c. Opportunity cost of holding money.

d. Doesn't affect.

2. According to the Classical Quantity Theory of Money, increase in money supply leads to

a. increase in output level.

b. increase in velocity of money.

c. increase in price level.

d. none of above.

3.Seignorage reflects the:

a. RBI borrowing.

b. Government borrowing from public.

c. Government borrowing from RBI.

d. Government borrowing from rest of the world.

4. While calculating national income, Govt. doesn't consider

a. Revenue from PSU.

b. Expenditure on capital assets.

c. Transfer income from rest of the world.

d. Expenditure on defence.

5. Aggregate demand curve will shift when

a. MPC changes.

b. MPT changes.

c. MPM changes.

d. Autonomous taxes changes.

6. LM curve is vertical when

a. Demand for money is very sensitive to interest rate.

b. Demand for money is insensitive to interest rate.

c. Supply of money is very sensitive to interest rate.

d. Supply of money is insensitive to interest rate.

7. Cobb-douglas production function exhibits

a. IRS.

b. CRS.

c. DRS.

d. Returns to scale.

8. Inflation tax is closely related with:

a. Rate of inflation.

b. Rate of nominal money growth.

c. Seignorage.

d. Real money balance.

9. Velocity of money changes when

a. Money supply changes.

b. Output changes.

c. Prices change.

d. Pattern of doing transactions changes.

10. IS curve is more steep at

a. High MPC.

b. High MPT.

c. Low MPT.

d. Low MPM.

Generic Elective - Economics

Semester 4

Public Finance

1. Taxes are credited into:

a. Consolidated fund

b. Contingency fund

c. Public accounts

d. Private accounts

2. To spend money from state consolidated fund, approval of which authority is needed?

a. Parliament

b. State Legislature

c. Prime Minister

d. Chief Minister

3. Revenue deficit in India is:

a. Negative

b. Positive

c. Zero

d. None of these

4. Capital deficit in India is

a. Negative

b. Positive

c. Zero

d. None of these

5. Income tax is raised by:

a. Central Government

b. State Government

c. Local Government

d. None of these.

6. Market failure may not arise in the case of:

a. Increasing returns to scale

b. Public goods

c. The consumption externalities

d. Income inequalities

7. High fiscal deficit is cause for concern for any economy. What does it denote?

a. It is a measure of the borrowings of an economy

b. It is total expenditure less total receipts excluding borrowings

c. It reflects the decrease in tax collections for the year

d. It means the lack of liquidity and earnings for the economy

8. _________ deals with the finance of the public bodies.

a. Private finance

b. Public finance

c. Both a and b

d. None of these

9. The word „budget‟ has been derived from which language:

a. Greek

b. Latin

c. French

d. German

10. In India, principal source of state revenue is

a. Gains from government companies.

b. Grant from other countries

c. Taxes and loans

d. None of these.

Documents

The questions are arranged in the following order: B.A