UGC NET Economics December 2023 Question PaperPaper 1 & Paper 2 with Answer Key

50 questions with the answer key and explanations.

1. Question 1

   Which city has shown maximum percentage growth in registered cars from 2017 to 2020?

   The following table shows year-wise registered cars for four cities from 2017 to 2020 and the population of each city in 2020.

   City	2017	2018	2019	2020	Population in 2020 (million)
   A	7500	8000	9000	9500	0.8
   B	1200	1350	1400	1500	0.2
   C	6000	7500	8500	10000	0.6
   D	5000	6000	6500	7400	0.75

   Registered cars and population by city

   1. AA
   2. BB
   3. CC
   4. DD

   Answer: (C) C

   Explanation

   City C increases from 6000 to 10000, a growth of about 66.7%. The other cities grow by about 26.7% (A), 25% (B), and 48% (D), so C has the maximum percentage growth.

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2. Question 2

   In the year 2020, per capita registered cars were maximum in the city:

   The following table shows year-wise registered cars for four cities from 2017 to 2020 and the population of each city in 2020.

   City	2017	2018	2019	2020	Population in 2020 (million)
   A	7500	8000	9000	9500	0.8
   B	1200	1350	1400	1500	0.2
   C	6000	7500	8500	10000	0.6
   D	5000	6000	6500	7400	0.75

   Registered cars and population by city

   1. AD
   2. BC
   3. CB
   4. DA

   Answer: (B) C

   Explanation

   Per capita registered cars in 2020 are found by dividing cars by population. City C has 10000 cars for 0.6 million people, which is higher than A, B and D. Hence the maximum is city C.

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3. Question 3

   Taking all the cities together, what is the ratio of total number of registered cars in the year 2020 with respect to 2017?

   The following table shows year-wise registered cars for four cities from 2017 to 2020 and the population of each city in 2020.

   City	2017	2018	2019	2020	Population in 2020 (million)
   A	7500	8000	9000	9500	0.8
   B	1200	1350	1400	1500	0.2
   C	6000	7500	8500	10000	0.6
   D	5000	6000	6500	7400	0.75

   Registered cars and population by city

   1. A284 : 197
   2. B149 : 154
   3. C142 : 79
   4. D53 : 41

   Answer: (A) 284 : 197

   Explanation

   The total for 2020 is 9500 + 1500 + 10000 + 7400 = 28400. The total for 2017 is 7500 + 1200 + 6000 + 5000 = 19700. The ratio is 28400:19700 = 284:197.

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4. Question 4

   What is the average of percentage growth in registered cars across all the cities from the year 2017 to the year 2018?

   The following table shows year-wise registered cars for four cities from 2017 to 2020 and the population of each city in 2020.

   City	2017	2018	2019	2020	Population in 2020 (million)
   A	7500	8000	9000	9500	0.8
   B	1200	1350	1400	1500	0.2
   C	6000	7500	8500	10000	0.6
   D	5000	6000	6500	7400	0.75

   Registered cars and population by city

   1. A~ 18%
   2. B~ 16%
   3. C~ 14%
   4. D~ 12%

   Answer: (B) ~ 16%

   Explanation

   The growth rates from 2017 to 2018 are about 6.67% for A, 12.5% for B, 25% for C, and 20% for D. Their average is about 15.5%, closest to 16%.

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5. Question 5

   Based on the average growth percentage of registered cars per year in successive years during 2017-2020 in city A, what will be the estimated number of registered cars in city A in 2021?

   The following table shows year-wise registered cars for four cities from 2017 to 2020 and the population of each city in 2020.

   City	2017	2018	2019	2020	Population in 2020 (million)
   A	7500	8000	9000	9500	0.8
   B	1200	1350	1400	1500	0.2
   C	6000	7500	8500	10000	0.6
   D	5000	6000	6500	7400	0.75

   Registered cars and population by city

   1. A11225
   2. B10815
   3. C10415
   4. D10283

   Answer: (D) 10283

   Explanation

   For city A, the successive growth rates are 7500 to 8000, 8000 to 9000, and 9000 to 9500: about 6.67%, 12.5%, and 5.56%. The average is about 8.24%, so 9500 x 1.0824 is approximately 10283.

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6. Question 6

   Match List-I with List-II.

   List-I (Online teaching tools)	List-II (Advantages for students)
   A. Learning Management System (LMS)	I. Collaborating with peers, sharing ideas and perspectives
   B. Video Conferencing	II. Receiving instant feedback on quizzes and assessments, tracking progress and performance
   C. Discussion Forums	III. Accessing course materials and assignments any time, anywhere
   D. Online Assessment Platforms	IV. Participating in live online class sessions and discussions from remote locations

   Online teaching tools and advantages

   1. A(A)-(II), (B)-(IV), (C)-(III), (D)-(I)
   2. B(A)-(IV), (B)-(III), (C)-(I), (D)-(II)
   3. C(A)-(III), (B)-(IV), (C)-(I), (D)-(II)
   4. D(A)-(I), (B)-(II), (C)-(III), (D)-(IV)

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

   Explanation

   A learning management system gives access to course materials and assignments, video conferencing enables live online sessions, discussion forums support collaboration and sharing ideas, and online assessment platforms provide instant feedback and progress tracking. Hence A-III, B-IV, C-I, D-II.

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7. Question 7

   Which of the following are not examples of a positive teacher-student relationship? A. A teacher who punishes students for asking questions; B. A teacher who provides students with positive feedback and constructive criticism; C. A teacher who fosters open communication and mutual respect; D. A teacher who humiliates his/her students; E. A teacher who ignores the needs and concerns of his/her students.

   1. A(B) and (C) only
   2. B(A), (D) and (E) only
   3. C(A), (B), (C) and (D) only
   4. D(B) and (E) only

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

   Explanation

   Punishing questions, humiliating students, and ignoring their needs are not positive teacher-student relationship behaviours. Positive feedback, constructive criticism, open communication and mutual respect are positive behaviours.

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8. Question 8

   Match List-I with List-II.

   List-I (Online learning platforms)	List-II (Respective features)
   A. Swayam	I. Paid courses on creative and entrepreneurial topics
   B. Udemy	II. Free courses from Indian universities
   C. Skillshare	III. Video lectures and interactive exercises for K-12 students
   D. Khan Academy	IV. Paid courses on various topics

   Online learning platforms and features

   1. A(A)-(I), (B)-(II), (C)-(III), (D)-(IV)
   2. B(A)-(II), (B)-(IV), (C)-(I), (D)-(III)
   3. C(A)-(IV), (B)-(III), (C)-(II), (D)-(I)
   4. D(A)-(III), (B)-(I), (C)-(IV), (D)-(II)

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

   Explanation

   SWAYAM offers free courses from Indian universities; Udemy offers paid courses on various topics; Skillshare is associated with paid creative and entrepreneurial courses; Khan Academy provides video lessons and interactive exercises for K-12 students. Hence A-II, B-IV, C-I, D-III.

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9. Question 9

   Which of the following is an example of collaborative learning?

   1. AA teacher assigns individually a reading assignment and students take notes.
   2. BA teacher gives a lecture on a topic and students take notes individually.
   3. CA teacher assigns homework for students to complete independently.
   4. DA teacher assigns a group project and students work together to do research and present their findings.

   Answer: (D) A teacher assigns a group project and students work together to do research and present their findings.

   Explanation

   Collaborative learning involves learners working together toward a shared task. A group project where students jointly research and present findings is therefore the collaborative example.

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10. Question 10

    Which of the following is a potential drawback of teacher-centered instruction?

    1. AIt can be more engaging and interactive for students.
    2. BIt can limit opportunities for students' creativity and critical thinking.
    3. CIt promotes students' independence and self-direction.
    4. DIt is more efficient and saves time.

    Answer: (B) It can limit opportunities for students' creativity and critical thinking.

    Explanation

    Teacher-centered instruction often concentrates control and explanation in the teacher, which can reduce student autonomy, creativity and critical thinking opportunities.

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11. Question 11

    Identify the correct sequence of steps involved in conducting a literature review for a research study: A. Locate literature; B. Organize the literature; C. Identify key terms for search; D. Write a literature review; E. Critically evaluate and select the literature relevant to research.

    1. A(A), (B), (C), (E), (D)
    2. B(A), (C), (B), (E), (D)
    3. C(C), (A), (E), (B), (D)
    4. D(C), (E), (A), (B), (D)

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

    Explanation

    A literature review begins by identifying search terms, then locating literature. The located literature is critically evaluated and selected, organized, and finally written up. Hence C, A, E, B, D.

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12. Question 12

    The systematic elimination of extraneous variables, other than those you are interested in, can be done in which of the following types of research?

    1. AQualitative research
    2. BLongitudinal research
    3. CExperimental research
    4. DCorrelational research

    Answer: (C) Experimental research

    Explanation

    Experimental research uses control, manipulation and randomization to reduce or eliminate extraneous variables so that the effect of the independent variable can be studied.

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13. Question 13

    When the researcher's age affects the behaviour of the participant in a study, it refers to:

    1. ASociological effect
    2. BBiosocial effect
    3. CPsychological effect
    4. DPsychosocial effect

    Answer: (B) Biosocial effect

    Explanation

    Age is a biological attribute with social meaning in participant interaction. When the researcher's age influences participant behaviour, the effect is treated as biosocial.

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14. Question 14

    In a negatively skewed distribution, which among the following would be true?
    A. Mean > Mode
    B. Mean < Median
    C. Median < Mode
    D. Mode > Mean

    1. A(A) and (B) only
    2. B(B) and (C) only
    3. C(B) and (D) only
    4. D(A) and (C) only

    Answer: (B) (B) and (C) only

    Explanation

    In a negatively skewed distribution, the usual order is mean < median < mode. Thus B and C are directly true. D is also implied by that order, so the item is marked for review because the option set appears incomplete.

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15. Question 15

    A researcher obtains the following p values for sample correlation coefficients of different samples. Which of these can be considered significant at 5% level of significance? A. 0.5; B. 0.04; C. 0.95; D. 0.002; E. 0.995.

    1. A(A) and (E) only
    2. B(B) and (D) only
    3. C(C) and (E) only
    4. D(A), (C) and (E) only

    Answer: (B) (B) and (D) only

    Explanation

    At the 5% level, p-values below 0.05 are considered statistically significant. Only 0.04 and 0.002 meet this condition.

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16. Question 16

    The term 'analog media' was originally derived from:

    1. AFolk performances
    2. BSatellite communication
    3. CInternet
    4. DAudio recordings

    Answer: (D) Audio recordings

    Explanation

    Analog media refers to media based on continuous physical signals, and the term is historically associated with analog audio recording and signal transmission rather than digital internet media.

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17. Question 17

    The automation element of online media has enabled the generation of:

    1. ALimited quantity of quality information
    2. BUser specific information
    3. CComplex philosophical information
    4. DNon-specific general information

    Answer: (B) User specific information

    Explanation

    Automation in online media supports personalization and algorithmic filtering, so it enables generation and delivery of user-specific information.

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18. Question 18

    Which of the following are the orders of signification in communication? A. Denotation; B. Connotation; C. Myth; D. Credibility; E. Attribution.

    1. A(A), (B) and (C) only
    2. B(B), (C) and (D) only
    3. C(C), (D) and (E) only
    4. D(A), (D) and (E) only

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

    Explanation

    In semiotic communication theory, the orders of signification are denotation, connotation and myth. Credibility and attribution are not part of this sequence.

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19. Question 19

    In the context of communication, political socialisation is linked to social learning in terms of how? A. Power is attained; B. Certain sections of society should be left out of the mainstream; C. Social systems are ignored; D. Power is used and misused; E. Political and economic decisions are made.

    1. A(A), (B) and (C) only
    2. B(B), (C) and (D) only
    3. C(A), (D) and (E) only
    4. D(B), (D) and (E) only

    Answer: (C) (A), (D) and (E) only

    Explanation

    Political socialisation teaches people how power is acquired, used or misused, and how political and economic decisions are made. Excluding groups and ignoring social systems are not the intended social-learning dimensions here.

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20. Question 20

    Consider the two statements. Statement I: Not every medium has its own grammar. Statement II: Each media grammar has evolved over a period of time and continues to change.

    1. ABoth Statement I and Statement II are correct
    2. BBoth Statement I and Statement II are incorrect
    3. CStatement I is correct but Statement II is incorrect
    4. DStatement I is incorrect but Statement II is correct

    Answer: (D) Statement I is incorrect but Statement II is correct

    Explanation

    Each medium is generally understood to have its own grammar or conventions, so Statement I is incorrect. Media grammars evolve over time and continue changing, so Statement II is correct.

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21. Question 21

    What number would replace the question mark (?) in the series: 1, 3, 6, 10, 15, 21, ?, 36.

    1. A32
    2. B28
    3. C29
    4. D30

    Answer: (B) 28

    Explanation

    The sequence is the triangular-number series: add 2, 3, 4, 5, 6, then 7. Therefore 21 + 7 = 28, followed by 28 + 8 = 36.

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22. Question 22

    The ratio of water and milk in a 27 litre mixture is 5:4. Find the quantity of water to be added to the mixture in order to make the ratio of water and milk as 3:1.

    1. A12 litres
    2. B15 litres
    3. C21 litres
    4. D36 litres

    Answer: (C) 21 litres

    Explanation

    The mixture has water = 15 litres and milk = 12 litres. For a 3:1 ratio with 12 litres milk, water must be 36 litres. Required water to add = 36 - 15 = 21 litres.

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23. Question 23

    The difference between compound interest and simple interest on a principal amount for 2 years at 10% per annum is Rs. 5431. Find the principal amount.

    1. ARs. 54310
    2. BRs. 108620
    3. CRs. 453100
    4. DRs. 543100

    Answer: (D) Rs. 543100

    Explanation

    For two years, the difference between compound and simple interest is P x (r/100)^2. Here 5431 = P x 0.01, so P = 543100.

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24. Question 24

    Two friends A and B live 140 km apart. They both drive in a straight line towards each other to meet. If A drives at 80 km/h and B drives at 40 km/h, then how many kilometres apart will they be exactly 45 minutes before they meet?

    1. A70 km
    2. B90 km
    3. C100 km
    4. D80 km

    Answer: (B) 90 km

    Explanation

    Their relative speed is 80 + 40 = 120 km/h. Forty-five minutes is 0.75 hour, so 45 minutes before meeting they are 120 x 0.75 = 90 km apart.

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25. Question 25

    In a certain coded language, 'RAM' is coded as 32 and 'SITA' is coded as 49. How will 'SHYAM' be coded in that language?

    1. A73
    2. B49
    3. C66
    4. D32

    Answer: (C) 66

    Explanation

    The code is the sum of alphabet positions. RAM = 18 + 1 + 13 = 32 and SITA = 19 + 9 + 20 + 1 = 49. SHYAM = 19 + 8 + 25 + 1 + 13 = 66.

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26. Question 26

    Analogy roughly corresponds to:

    1. AAnumiti
    2. BUpamiti
    3. CAgama
    4. DPratyaksha

    Answer: (B) Upamiti

    Explanation

    In Indian logic, Upamiti is knowledge through comparison or analogy. Therefore analogy roughly corresponds to Upamiti.

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27. Question 27

    In order to know if the argument is deductive or inductive, out of the four given tests which one applies to the following example? "Alan is a father. Therefore, Alan is a male."

    1. AThe indicator word test
    2. BThe strict necessity test
    3. CThe common pattern test
    4. DThe principle of charity test

    Answer: (B) The strict necessity test

    Explanation

    The conclusion follows necessarily from the meaning of father. Since the argument is deductive by necessity, the strict necessity test applies.

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28. Question 28

    Pick a correct observation from the following argument: All dogs are cats. All cats are whales. Therefore, all whales are dogs.

    1. AIt is a valid argument and contains true premise and true conclusion
    2. BIt is an invalid argument and contains false premise and true conclusion
    3. CIt is an invalid argument and contains false premise and false conclusion
    4. DIt is an invalid argument and contains true premise and false conclusion

    Answer: (C) It is an invalid argument and contains false premise and false conclusion

    Explanation

    The conclusion does not follow from the premises; at most, the premises imply that all dogs are whales, not that all whales are dogs. The premises and conclusion are also false in ordinary interpretation.

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29. Question 29

    Consider the two statements.
    Statement I: Arguments from analogy are generally deductive, weak or strong.
    Statement II: Arguments from analogy are generally inductive and neither valid nor invalid.

    1. ABoth Statement I and Statement II are correct
    2. BBoth Statement I and Statement II are incorrect
    3. CStatement I is correct but Statement II is incorrect
    4. DStatement I is incorrect but Statement II is correct

    Answer: (D) Statement I is incorrect but Statement II is correct

    Explanation

    Analogical arguments are usually inductive, so they are evaluated as stronger or weaker rather than valid or invalid. Statement I incorrectly calls them generally deductive, while Statement II is correct.

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30. Question 30

    In the light of syllogistic argument, which of the following is/are incorrect?
    A. The predicate term of the conclusion is the major term.
    B. The subject term of the conclusion is the minor term.
    C. The middle term must occur only once in the premise.
    D. The middle term must be distributed at least once in the conclusion.

    1. A(B) only
    2. B(B) and (D) only
    3. C(C) only
    4. D(C) and (D) only

    Answer: (D) (C) and (D) only

    Explanation

    In a categorical syllogism, the major term is the predicate of the conclusion and the minor term is its subject. The middle term occurs in the premises and must be distributed at least once in the premises, not in the conclusion. Hence C and D are incorrect.

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31. Question 31

    Anil has an MP3 file stored on his computer. Which type of data is stored in an MP3 file?

    1. AVideo
    2. BSound
    3. CImage
    4. DText

    Answer: (B) Sound

    Explanation

    MP3 is an audio file format, so it stores sound data.

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32. Question 32

    Identify the correct sequence of the following technologies A-D used in first generation to fourth generation of computers:
    A. Integrated circuits
    B. Microprocessors
    C. Transistors
    D. Vacuum Tubes

    1. A(D), (C), (B), (A)
    2. B(D), (C), (A), (B)
    3. C(C), (D), (A), (B)
    4. D(B), (A), (C), (D)

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

    Explanation

    Computer generations are commonly associated with vacuum tubes, transistors, integrated circuits, and microprocessors. Hence D, C, A, B.

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33. Question 33

    Consider the two statements.
    Statement I: (1011101)₂ = (5D)₁₆.
    Statement II: (C2)₁₆ = (11000010)₂.

    1. ABoth Statement I and Statement II are correct
    2. BBoth Statement I and Statement II are incorrect
    3. CStatement I is correct but Statement II is incorrect
    4. DStatement I is incorrect but Statement II is correct

    Answer: (A) Both Statement I and Statement II are correct

    Explanation

    1011101₂ equals 64 + 16 + 8 + 4 + 1 = 93 decimal, which is 5D₁₆. C2₁₆ converts to 1100 0010₂, so both statements are correct.

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34. Question 34

    Which of the following computer memory types are volatile?
    A. CMOS memory
    B. Cache memory
    C. Flash memory
    D. Hard disk
    E. RAM

    1. A(A), (B) and (E) only
    2. B(A), (C) and (D) only
    3. C(B), (C) and (E) only
    4. D(B) and (E) only

    Answer: (A) (A), (B) and (E) only

    Explanation

    Cache memory and RAM are volatile. CMOS memory is also treated as volatile because it requires continuous battery power to retain settings. Flash memory and hard disk are non-volatile.

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35. Question 35

    Match List-I with List-II.

    List-I (Storage media)	List-II (Type of storage)
    A. Hard Disk Drive (HDD)	I. Optical
    B. USB Flash Memory	II. Magnetic
    C. Blu-ray Disc	III. Solid state

    Storage media and storage type

    1. A(A)-(II), (B)-(III), (C)-(I)
    2. B(A)-(II), (B)-(I), (C)-(III)
    3. C(A)-(III), (B)-(II), (C)-(I)
    4. D(A)-(I), (B)-(III), (C)-(II)

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

    Explanation

    A hard disk drive uses magnetic storage, USB flash memory is solid-state storage, and a Blu-ray disc is optical storage. Hence A-II, B-III, C-I.

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36. Question 36

    Consider the two statements. : one is labelled as Assertion (A) and the other is labelled as Reason (R).

    Assertion (A): In the less developed countries of the world, indoor exposure to hazardous air pollutants is much more severe.

    Reason (R): Traditional methods of cooking often involve fuels such as coal, wood, animal dung, kerosene etc.

    1. ABoth (A) and (R) are correct and (R) is the correct explanation of (A)
    2. BBoth (A) and (R) are correct but (R) is not the correct explanation of (A)
    3. C(A) is correct but (R) is not correct
    4. D(A) is not correct but (R) is correct

    Answer: (A) Both (A) and (R) are correct and (R) is the correct explanation of (A)

    Explanation

    Both statements are true. Traditional cooking fuels such as coal, wood, dung and kerosene are major sources of indoor air pollution in less developed regions, so the reason explains the assertion.

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37. Question 37

    Addressing the nation on Independence Day 2019, Prime Minister Shri Narendra Modi set a goal of tap water to every rural household by the year:

    1. A2024
    2. B2025
    3. C2027
    4. D2030

    Answer: (A) 2024

    Explanation

    The Jal Jeevan Mission goal announced in 2019 aimed to provide tap water to every rural household by 2024.

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38. Question 38

    Consider the two statements.
    Statement I: A nuclear breeder reactor produces more fissile material than it consumes.
    Statement II: Present share of nuclear energy in the energy mix of the country is more than that of renewable energy.

    1. ABoth Statement I and Statement II are correct
    2. BBoth Statement I and Statement II are incorrect
    3. CStatement I is correct but Statement II is incorrect
    4. DStatement I is incorrect but Statement II is correct

    Answer: (C) Statement I is correct but Statement II is incorrect

    Explanation

    A breeder reactor is designed to produce more fissile material than it consumes, so Statement I is correct. In India’s energy mix, the share of renewables is higher than nuclear energy, so Statement II is incorrect.

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39. Question 39

    Consider the two statements. : one is labelled as Assertion (A) and the other is labelled as Reason (R).

    Assertion (A): Coral reefs are threatened because of release of sewage in ocean waters near them.

    Reason (R): Release of sewage in oceans tends to reduce the clarity of ocean water.

    1. ABoth (A) and (R) are correct and (R) is the correct explanation of (A)
    2. BBoth (A) and (R) are correct but (R) is not the correct explanation of (A)
    3. C(A) is correct but (R) is not correct
    4. D(A) is not correct but (R) is correct

    Answer: (A) Both (A) and (R) are correct and (R) is the correct explanation of (A)

    Explanation

    Sewage discharge can threaten coral reefs, and one mechanism is reduced water clarity, which limits light penetration and affects reef ecosystems. Thus both are correct and the reason explains the assertion.

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40. Question 40

    Convention on Biodiversity (CBD) was opened for signature during:

    1. AEarth Summit
    2. BMontreal Protocol
    3. CKyoto Protocol
    4. DStockholm Convention

    Answer: (A) Earth Summit

    Explanation

    The Convention on Biological Diversity was opened for signature at the 1992 Earth Summit in Rio de Janeiro.

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41. Question 41

    Which of the following are not the characteristics of conventional learning?
    A. Emphasis on self-directed learning and independent study
    B. Students learn through listening and observation
    C. No fixed curriculum
    D. Learner oriented
    E. Require regular attendance

    1. A(B) and (E) only
    2. B(A) and (E) only
    3. C(A), (C) and (D) only
    4. D(B) and (C) only

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

    Explanation

    Conventional learning usually has a fixed curriculum, teacher direction, listening/observation, and regular attendance. Self-directed independent study, no fixed curriculum and learner orientation are not typical conventional-learning features.

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42. Question 42

    Arrange the following universities in the chronological order of their establishment:
    A. Banaras Hindu University
    B. Jawaharlal Nehru University
    C. University of Allahabad
    D. University of Delhi

    1. A(C), (A), (D), (B)
    2. B(A), (C), (D), (B)
    3. C(A), (D), (C), (B)
    4. D(A), (C), (B), (D)

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

    Explanation

    University of Allahabad was established in 1887, Banaras Hindu University in 1916, University of Delhi in 1922, and Jawaharlal Nehru University in 1969. Hence C, A, D, B.

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43. Question 43

    Consider the two statements. in the context of NEP 2020.
    Statement I: It is envisaged that all higher education institutions shall aim to become autonomous and have an empowered Board of Governors (BoG).
    Statement II: Institutional Development Plan shall be the sole responsibility of the members of BoG.

    1. ABoth Statement I and Statement II are correct
    2. BBoth Statement I and Statement II are incorrect
    3. CStatement I is correct but Statement II is incorrect
    4. DStatement I is incorrect but Statement II is correct

    Answer: (C) Statement I is correct but Statement II is incorrect

    Explanation

    NEP 2020 envisages autonomous higher education institutions with empowered Boards of Governors. However, an Institutional Development Plan is not framed as the sole responsibility of BoG members alone, so Statement II is incorrect.

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44. Question 44

    Which among the following is not a value as propounded by the Indian traditional concept of Purushartha?

    1. ADharma
    2. BArtha
    3. CBhakti
    4. DMoksha

    Answer: (C) Bhakti

    Explanation

    The four Purusharthas are Dharma, Artha, Kama and Moksha. Bhakti is not one of the four Purusharthas.

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45. Question 45

    Which commission/committee recommended that 'the ordinary amenities and decencies of life should be provided for women in colleges ordinarily planned for men and that there should be no curtailment of opportunities for women'?

    1. ADurgabai Deshmukh Committee (1959)
    2. BKothari Commission (1964-66)
    3. CBhaktavatsalam Committee (1963)
    4. DRadhakrishnan Commission (1948)

    Answer: (A) Durgabai Deshmukh Committee (1959)

    Explanation

    The recommendation is associated with the Durgabai Deshmukh Committee on women’s education, which emphasized adequate facilities and no curtailment of women’s educational opportunities.

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46. Question 46

    Fascist economics agreed with communists on which of these points?
    A. Capitalists are sensitive to the poor working conditions of the labour force
    B. Capitalists promote speculation
    C. Capitalists prioritize profits over collective goals
    D. Capitalists indulge in financial wizardry.

    Fascist economics places itself in between free market capitalism and communism. It criticizes the former for prioritizing profits over collective goals and for promoting speculative financial wizardry similar to usury. It agreed to some degree with communists that the capitalist class exploited the labour force and was insensitive to poor working conditions but disagreed on the solution. While communists prescribed a proletariat takeover of the means of production followed by a dictatorship of the proletariat as the panacea to the crisis of capitalism, fascism would choose instead to resolve class conflicts between labour and capital through state arbitration and corporate control over the economy. Corporatism is the theory and practice of organizing society into corporations subordinate to the state. These corporations would serve as organs of political consultations and take responsibility, to a large extent, for persons and activities within their jurisdiction. It differed from communism since it rejected classless egalitarianism. It can be described as a modern analogue of feudal guild societies. Thus, corporatism served to retain the social order and hierarchies of feudalism while infusing it with modern industrial methods more conducive for military competition and arms races. Another aspect that fascism had in common with feudal economics is its emphasis on usury laws. Both considered charging interest on loans as being exploitative and immoral. This reinforced a worldview which saw tangible sectors such as agriculture and industry as value creating and finance as a sector that rested on tricks and manipulation.

    1. A(A), (C) and (D) only
    2. B(B) and (C) only
    3. C(B), (C) and (D) only
    4. D(A), (B) and (C) only

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

    Explanation

    The passage says fascist economics criticized capitalism for prioritizing profits and speculative financial wizardry. It also notes agreement with communists in criticizing capitalist exploitation. Statement A says capitalists are sensitive to poor working conditions, which is opposite to the passage. Therefore B, C and D fit best.

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47. Question 47

    Consider the two statements.
    Statement I: The communist solution to capitalism was the takeover of the means of production by the proletariat.
    Statement II: The fascist solution to capitalism was corporatism.

    Fascist economics places itself in between free market capitalism and communism. It criticizes the former for prioritizing profits over collective goals and for promoting speculative financial wizardry similar to usury. It agreed to some degree with communists that the capitalist class exploited the labour force and was insensitive to poor working conditions but disagreed on the solution. While communists prescribed a proletariat takeover of the means of production followed by a dictatorship of the proletariat as the panacea to the crisis of capitalism, fascism would choose instead to resolve class conflicts between labour and capital through state arbitration and corporate control over the economy. Corporatism is the theory and practice of organizing society into corporations subordinate to the state. These corporations would serve as organs of political consultations and take responsibility, to a large extent, for persons and activities within their jurisdiction. It differed from communism since it rejected classless egalitarianism. It can be described as a modern analogue of feudal guild societies. Thus, corporatism served to retain the social order and hierarchies of feudalism while infusing it with modern industrial methods more conducive for military competition and arms races. Another aspect that fascism had in common with feudal economics is its emphasis on usury laws. Both considered charging interest on loans as being exploitative and immoral. This reinforced a worldview which saw tangible sectors such as agriculture and industry as value creating and finance as a sector that rested on tricks and manipulation.

    1. ABoth Statement I and Statement II are correct
    2. BBoth Statement I and Statement II are incorrect
    3. CStatement I is correct but Statement II is incorrect
    4. DStatement I is incorrect but Statement II is correct

    Answer: (A) Both Statement I and Statement II are correct

    Explanation

    The passage states that communists prescribed proletarian takeover of the means of production, while fascism sought resolution through state arbitration and corporate control, that is corporatism.

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48. Question 48

    Classless egalitarianism policy was followed by:

    Fascist economics places itself in between free market capitalism and communism. It criticizes the former for prioritizing profits over collective goals and for promoting speculative financial wizardry similar to usury. It agreed to some degree with communists that the capitalist class exploited the labour force and was insensitive to poor working conditions but disagreed on the solution. While communists prescribed a proletariat takeover of the means of production followed by a dictatorship of the proletariat as the panacea to the crisis of capitalism, fascism would choose instead to resolve class conflicts between labour and capital through state arbitration and corporate control over the economy. Corporatism is the theory and practice of organizing society into corporations subordinate to the state. These corporations would serve as organs of political consultations and take responsibility, to a large extent, for persons and activities within their jurisdiction. It differed from communism since it rejected classless egalitarianism. It can be described as a modern analogue of feudal guild societies. Thus, corporatism served to retain the social order and hierarchies of feudalism while infusing it with modern industrial methods more conducive for military competition and arms races. Another aspect that fascism had in common with feudal economics is its emphasis on usury laws. Both considered charging interest on loans as being exploitative and immoral. This reinforced a worldview which saw tangible sectors such as agriculture and industry as value creating and finance as a sector that rested on tricks and manipulation.

    1. AFeudalism
    2. BCapitalism
    3. CCommunism
    4. DFascism

    Answer: (C) Communism

    Explanation

    The passage says fascism differed from communism because it rejected classless egalitarianism. Therefore classless egalitarianism is associated with communism.

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49. Question 49

    Fascist economics is based on:

    Fascist economics places itself in between free market capitalism and communism. It criticizes the former for prioritizing profits over collective goals and for promoting speculative financial wizardry similar to usury. It agreed to some degree with communists that the capitalist class exploited the labour force and was insensitive to poor working conditions but disagreed on the solution. While communists prescribed a proletariat takeover of the means of production followed by a dictatorship of the proletariat as the panacea to the crisis of capitalism, fascism would choose instead to resolve class conflicts between labour and capital through state arbitration and corporate control over the economy. Corporatism is the theory and practice of organizing society into corporations subordinate to the state. These corporations would serve as organs of political consultations and take responsibility, to a large extent, for persons and activities within their jurisdiction. It differed from communism since it rejected classless egalitarianism. It can be described as a modern analogue of feudal guild societies. Thus, corporatism served to retain the social order and hierarchies of feudalism while infusing it with modern industrial methods more conducive for military competition and arms races. Another aspect that fascism had in common with feudal economics is its emphasis on usury laws. Both considered charging interest on loans as being exploitative and immoral. This reinforced a worldview which saw tangible sectors such as agriculture and industry as value creating and finance as a sector that rested on tricks and manipulation.

    1. ACommunism
    2. BCapitalism
    3. CA mix of communism and capitalism
    4. DFeudalism

    Answer: (C) A mix of communism and capitalism

    Explanation

    The passage begins by placing fascist economics between free market capitalism and communism, so the best option is a mix of communism and capitalism.

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50. Question 50

    Fascism:
    A. Considered charging interest as immoral
    B. Valued agriculture and industry
    C. Rejected hierarchies of feudalism
    D. Believed in corporatism

    Fascist economics places itself in between free market capitalism and communism. It criticizes the former for prioritizing profits over collective goals and for promoting speculative financial wizardry similar to usury. It agreed to some degree with communists that the capitalist class exploited the labour force and was insensitive to poor working conditions but disagreed on the solution. While communists prescribed a proletariat takeover of the means of production followed by a dictatorship of the proletariat as the panacea to the crisis of capitalism, fascism would choose instead to resolve class conflicts between labour and capital through state arbitration and corporate control over the economy. Corporatism is the theory and practice of organizing society into corporations subordinate to the state. These corporations would serve as organs of political consultations and take responsibility, to a large extent, for persons and activities within their jurisdiction. It differed from communism since it rejected classless egalitarianism. It can be described as a modern analogue of feudal guild societies. Thus, corporatism served to retain the social order and hierarchies of feudalism while infusing it with modern industrial methods more conducive for military competition and arms races. Another aspect that fascism had in common with feudal economics is its emphasis on usury laws. Both considered charging interest on loans as being exploitative and immoral. This reinforced a worldview which saw tangible sectors such as agriculture and industry as value creating and finance as a sector that rested on tricks and manipulation.

    1. A(A) and (D) only
    2. B(A), (B) and (C) only
    3. C(A), (C) and (D) only
    4. D(A), (B) and (D) only

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

    Explanation

    The passage says fascism considered interest exploitative and immoral, saw agriculture and industry as value creating, and believed in corporatism. It retained, rather than rejected, feudal hierarchies. Hence A, B and D.

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100 questions with the answer key and explanations.

1. Question 1

   The expert committee set up by RBI in 2013 to revise and strengthen the monetary policy framework in India was chaired by:

   1. ARaghuram Rajan
   2. BUrjit Patel
   3. CDeepak Mohanty
   4. DMichael Patra

   Answer: (B) Urjit Patel

   Explanation

   The 2013 RBI expert committee on revising and strengthening the monetary policy framework was chaired by Urjit Patel.

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2. Question 2

   Under the flexible inflation targeting framework of monetary policy adopted by the RBI in 2016, what is the target range of rate of inflation?

   1. A4 +/- 2%
   2. B5 +/- 2%
   3. C3 +/- 2%
   4. D2 +/- 2%

   Answer: (A) 4 +/- 2%

   Explanation

   India adopted flexible inflation targeting with a 4% CPI inflation target and a tolerance band of +/-2 percentage points.

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3. Question 3

   In a regression of a dependent variable on intercept and k other independent variables using n observations, what are respectively the numerator and denominator degrees of freedom for the F test for overall significance of the regression?

   1. Ak-1, n-k
   2. Bk, n-k-1
   3. Ck-1, n-k-1
   4. Dk, n-k

   Answer: (B) k, n-k-1

   Explanation

   With k slope regressors and an intercept, the overall F test has numerator degrees of freedom k and denominator degrees of freedom n-k-1.

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4. Question 4

   Suppose Xi is income of individual i and Yi is the event that this individual owns a house.
   Pi = Prob(Yi = 1 | Xi) and Zi = B1 + B2Xi.
   Which probability expression is true for the logit model?

   1. APi = 1/(1 - e^-Zi)
   2. BPi = 1/(1 + e^Zi)
   3. CPi = 1/(1 + e^-Zi)
   4. DPi = 1/(1 - e^Zi)

   Answer: (C) Pi = 1/(1 + e^-Zi)

   Explanation

   In the logit model, Pi = e^Zi/(1+e^Zi) = 1/(1+e^-Zi). Marked for review because the PDF is a candidate-response paper and this item has formula/figure/key uncertainty.

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5. Question 5

   If the estimated slope coefficient in the regression of Y on X is beta, what will be the estimated slope coefficient in the regression of 5Y on 10X?

   1. A5 beta
   2. B10 beta
   3. C2 beta
   4. D0.5 beta

   Answer: (D) 0.5 beta

   Explanation

   Scaling Y by 5 and X by 10 scales the slope by 5/10, so the new slope is 0.5 beta.

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6. Question 6

   Which of the following tests has stationarity as the null hypothesis?

   1. AADF Test
   2. BPhillips-Perron Test
   3. CERS Test
   4. DKPSS Test

   Answer: (D) KPSS Test

   Explanation

   ADF, Phillips-Perron and ERS usually test a unit-root null; KPSS uses stationarity as the null hypothesis.

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7. Question 7

   For a VAR model estimated using two variables X and Y, lags of Y are jointly significant in the equation for X but lags of X are jointly insignificant in the equation for Y. What can you conclude?

   1. AThere is no Granger causality between X and Y
   2. BThere is bidirectional Granger causality between X and Y
   3. CX Granger causes Y but Y does not Granger cause X
   4. DY Granger causes X but X does not Granger cause Y

   Answer: (D) Y Granger causes X but X does not Granger cause Y

   Explanation

   If lags of Y help explain X but lags of X do not help explain Y, Y Granger-causes X and not the reverse.

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8. Question 8

   Suppose India is the home country and USA is the foreign country. Interest rates in India and USA are 6% and 4% respectively. The exchange rate of the US dollar is Rs. 80 today but is expected to rise to Rs. 84 in one year. Which is true according to uncovered interest arbitrage parity?

   1. ACapital will flow into the Indian economy
   2. BCapital will flow out of the Indian economy
   3. CNo capital flows
   4. DCan't say on the basis of the information provided

   Answer: (B) Capital will flow out of the Indian economy

   Explanation

   The US return plus expected rupee depreciation of the domestic currency makes foreign assets more attractive than the 6% Indian return, so capital tends to flow out of India.

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9. Question 9

   In the model ln Yi = alpha + beta Xi + ui, where ln is natural log, the elasticity of Y with respect to X is given by:

   1. Abeta
   2. Bbeta Xi
   3. Cbeta / Yi
   4. Dbeta Xi / Yi

   Answer: (B) beta Xi

   Explanation

   For lnY = alpha + betaX, dY/dX = betaY. Elasticity is (dY/dX)(X/Y) = betaX.

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10. Question 10

    In an economy real GDP increased from $990 PPP to $1080 PPP during 2015 to 2020. The incremental capital output ratio is 25. The rate of investment is:

    1. A27.8 Percent
    2. B22.5 Percent
    3. C3.9 Percent
    4. D19.5 Percent

    Answer: (B) 22.5 Percent

    Explanation

    Using the Harrod-Domar relation, investment rate equals ICOR times the growth rate. The option set appears to correspond to 22.5%. Marked for review because the PDF is a candidate-response paper and this item has formula/figure/key uncertainty.

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11. Question 11

    Which of the following dimensions is included in HPI-2 (Human Poverty Index-2)?

    1. AGender inequalities
    2. BFinancial inclusion
    3. CSocial inclusion
    4. DEconomic inclusion

    Answer: (C) Social inclusion

    Explanation

    HPI-2 for selected OECD countries includes social exclusion as one dimension, commonly represented through long-term unemployment.

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12. Question 12

    The Solow residual is:

    1. AThe difference between the rate of growth of productivity and the rate of growth of inputs
    2. BThe difference between the rate of growth of output and the rate of growth of saving
    3. CThe difference between the rate of growth of output and the rate of growth of inputs
    4. DThe difference between the golden rule level of consumption and the steady state level of consumption

    Answer: (C) The difference between the rate of growth of output and the rate of growth of inputs

    Explanation

    The Solow residual measures growth in output not explained by input growth, so it is the residual between output growth and weighted input growth.

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13. Question 13

    Gini coefficient, a widely used measure of income inequality, is defined by which of the formula options shown in the PDF?

    1. AFormula option 1 from the PDF
    2. BFormula option 2 from the PDF
    3. CFormula option 3 from the PDF
    4. DFormula option 4 from the PDF

    Answer: (A) Formula option 1 from the PDF

    Explanation

    The formula options are visually present but OCR did not preserve them reliably. Marked for review because the PDF is a candidate-response paper and this item has formula/figure/key uncertainty.

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14. Question 14

    Endogenous growth theory assumes:

    1. AIncreasing returns to scale and perfect competition
    2. BDecreasing returns to scale and perfect competition
    3. CIncreasing returns to scale and imperfect competition
    4. DDecreasing returns to scale and imperfect competition

    Answer: (C) Increasing returns to scale and imperfect competition

    Explanation

    Endogenous growth models commonly rely on increasing returns, knowledge spillovers, and imperfect competition to explain sustained growth.

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15. Question 15

    Suppose you are testing a null hypothesis about the population mean, H0: mu = mu0, against H1: mu > mu0, with population variance given. The computed test statistic is Zc. What is the p-value, where Phi is the standard normal CDF?

    1. APhi(Zc)
    2. BPhi(Zc/2)
    3. C1 - Phi(Zc)
    4. D1 - Phi(Zc/2)

    Answer: (C) 1 - Phi(Zc)

    Explanation

    For a right-tailed z test, the p-value is the upper-tail probability, 1 - Phi(Zc).

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16. Question 16

    The power of a test refers to:

    1. AType I error
    2. BType II error
    3. C1 - Type II error
    4. D1 - Type I error

    Answer: (C) 1 - Type II error

    Explanation

    Power is the probability of rejecting a false null hypothesis, which equals 1 minus the probability of Type II error.

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17. Question 17

    Given a random sample of size n from a population with mean mu and variance sigma squared, the sample mean has which expected value and variance?

    1. AE(xbar) = mu, Var(xbar) = sigma squared / n
    2. BE(xbar) = n mu, Var(xbar) = n sigma squared
    3. CE(xbar) = mu, Var(xbar) = sigma squared
    4. DE(xbar) = mu, Var(xbar) = n / sigma squared

    Answer: (A) E(xbar) = mu, Var(xbar) = sigma squared / n

    Explanation

    The sample mean is unbiased for mu and has variance sigma squared divided by n.

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18. Question 18

    In March 2023, the consumer price index (CPI) of a country with a 1982 base index of 100 was 234.7. This means the cost of purchasing the market basket of goods and services:

    1. Ahas decreased by 134.7% since 1982
    2. Bhas increased by 34.7% since 1982
    3. Chas increased by 234.7% since 1982
    4. Dhas increased by 134.7% since 1982

    Answer: (D) has increased by 134.7% since 1982

    Explanation

    A CPI of 234.7 with base 100 means prices are 234.7% of the base-year level, i.e. 134.7% higher than in 1982.

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19. Question 19

    Consider a production function q = x + y, where x and y are two inputs. If the respective input prices are wx and wy and wx > wy, then the cost function C(q) is:

    1. AC(q) = wx q
    2. BC(q) = wy q
    3. CC(q) = (wx + wy)q
    4. DC(q) = min(wx, wy)sqrt(q)

    Answer: (B) C(q) = wy q

    Explanation

    Since x and y are perfect substitutes in production and y is cheaper, the cost-minimizing firm uses only y, so cost is wy q.

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20. Question 20

    For the production function implied by the cost expression in the PDF, where w and r are wage cost and rental cost of labour and capital respectively, what would be the production function q of K and L?

    1. Aq = aK + betaL
    2. Bq = [K^alpha + L^alpha]^(1/alpha)
    3. Cq = min(alphaL, betaK)
    4. Dq = A(K^alpha L^beta)

    Answer: (B) q = [K^alpha + L^alpha]^(1/alpha)

    Explanation

    The cost-expression line is partially damaged by OCR/watermark, so the selected CES-style option should be checked visually. Marked for review because the PDF is a candidate-response paper and this item has formula/figure/key uncertainty.

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21. Question 21

    If f(x, y) is a homogeneous function of degree 2 with f(2, 3) = 4 and f(4, 6) = 12, find f(6, 9):

    1. A117
    2. B234
    3. C115
    4. D243

    Answer: (D) 243

    Explanation

    For a degree-2 homogeneous function, f(6,9) should scale from f(2,3) by 3^2, but the OCR also shows a conflicting value for f(4,6). Marked for review because the PDF is a candidate-response paper and this item has formula/figure/key uncertainty.

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22. Question 22

    If the Average Revenue function AR = 10 + 5q - q^2, then the Marginal Revenue function is a:

    1. AConvex function
    2. BConcave function
    3. CCan be both concave or convex function
    4. DWeakly concave function

    Answer: (B) Concave function

    Explanation

    Total revenue is qAR = 10q + 5q^2 - q^3, so MR = 10 + 10q - 3q^2, a concave quadratic.

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23. Question 23

    Suppose a consumer has utility u(x) = sqrt(x), initial endowment Rs. 50, and may suffer a loss of Rs. 25 with probability 0.5. If insurance fully reimburses the loss, how much premium p would she be willing to pay?

    1. A12.50
    2. B13.57
    3. C11.59
    4. D14.41

    Answer: (B) 13.57

    Explanation

    The maximum premium equates certain utility sqrt(50-p) to expected utility 0.5sqrt(50)+0.5sqrt(25). Solving gives p about 13.57.

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24. Question 24

    Suppose f(.) is continuous over a closed and bounded interval [a,b]. Then there exist points where f(.) attains a minimum and a maximum on [a,b]. The statement is derived from:

    1. AIntermediate Value Theorem
    2. BRolle's Theorem
    3. CMean Value Theorem
    4. DExtreme Value Theorem

    Answer: (D) Extreme Value Theorem

    Explanation

    The Extreme Value Theorem states that a continuous function on a closed and bounded interval attains its maximum and minimum.

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25. Question 25

    Consider a consumer choice set with two commodities and budget set B = {(x,y): pxx + pyy <= M, x,y >= 0}. Which statement is true?

    1. AThe budget set is an open, bounded and convex set
    2. BThe budget set is not a bounded set
    3. CThe budget set is a closed and non-convex set
    4. DThe budget set is a closed, bounded and convex set

    Answer: (D) The budget set is a closed, bounded and convex set

    Explanation

    With positive prices and non-negative quantities, the budget set is closed, bounded and convex.

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26. Question 26

    Consider a Bertrand duopoly with two firms producing a homogeneous product and the pricing game described in the PDF. What would be the Nash equilibrium price and quantities?

    1. AOne of the multiple Nash equilibria shown as option 1
    2. BThe unique Nash equilibrium shown as option 2
    3. COne of the multiple Nash equilibria shown as option 3
    4. DThe unequal-price outcome shown as option 4

    Answer: (B) The unique Nash equilibrium shown as option 2

    Explanation

    The OCR did not preserve the price/quantity formulas in the options reliably; the selected option should be checked visually. Marked for review because the PDF is a candidate-response paper and this item has formula/figure/key uncertainty.

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27. Question 27

    Suppose the cost function C(w1, w2, y) is given in the PDF. Which property of the cost function is correct?

    1. ACost function C(w1,w2,y) is monotone, concave and continuous in w1,w2.
    2. BCost function C(w1,w2,y) is non-monotone, convex and continuous in w1,w2.
    3. CCost function is continuous in w1 and w2 and discontinuous in y.
    4. DCost function is continuous and homogeneous of degree 0.

    Answer: (A) Cost function C(w1,w2,y) is monotone, concave and continuous in w1,w2.

    Explanation

    A standard cost function is nondecreasing in input prices, concave in input prices, and continuous under regularity conditions.

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28. Question 28

    The demand and supply functions for the cobweb model are Qd = 19 - 6Pt and Qs = 6Pt-1 - 5. Choose the right answer related to intertemporal equilibrium price and the nature of equilibrium.

    1. AP = 2, explosive oscillation
    2. BP = 2, uniform oscillation
    3. CP = 3, damped oscillation
    4. DP = 3, uniform oscillation

    Answer: (B) P = 2, uniform oscillation

    Explanation

    Equilibrium satisfies 19 - 6P = 6P - 5, giving P = 2. Equal absolute demand and supply slopes imply uniform oscillation.

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29. Question 29

    Consider the payoff matrix for two friends choosing Diwali Shopping or World Cup Watching. Identify which statement is true.

    Player 1 / Player 2	Diwali Shopping	World Cup Watching
    Diwali Shopping	(2,1)	(0,0)
    World Cup Watching	(0,0)	(1,2)

    Payoff matrix for two-player coordination game

    1. AThere is no Nash equilibrium for them.
    2. BThere is only one Nash equilibrium where player 1 goes for Diwali shopping and player 2 goes for World Cup match.
    3. CAny of the four combinations can be a Nash equilibrium.
    4. DThere are two Nash equilibria.

    Answer: (D) There are two Nash equilibria.

    Explanation

    The coordination game has two pure-strategy Nash equilibria: both choose Diwali shopping, or both choose World Cup watching.

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30. Question 30

    In case of two perfect complement goods, which statement is not true?

    1. AThe substitution effect is zero.
    2. BThe indifference curves are straight lines.
    3. CThe indifference curves are L-shaped.
    4. DThe goods are always demanded in fixed proportions.

    Answer: (B) The indifference curves are straight lines.

    Explanation

    Perfect complements have L-shaped indifference curves, are consumed in fixed proportions, and have zero substitution effect; straight-line indifference curves are for perfect substitutes.

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31. Question 31

    If matrices A and B are as shown in the PDF, which of the following is not correct?

    1. AA transpose B = [1 4; 2 0]
    2. B(A + B) transpose = [3 9]
    3. CA transpose B = 10
    4. DA transpose B transpose = [6 23]

    Answer: (A) A transpose B = [1 4; 2 0]

    Explanation

    The matrix expression/options are damaged by OCR and need visual verification against the PDF. Marked for review because the PDF is a candidate-response paper and this item has formula/figure/key uncertainty.

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32. Question 32

    According to Census 2011, which major Indian state is the most urbanized?

    1. AMaharashtra
    2. BPunjab
    3. CKarnataka
    4. DTamil Nadu

    Answer: (D) Tamil Nadu

    Explanation

    Among the listed major states, Tamil Nadu had the highest urbanization share in Census 2011.

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33. Question 33

    In a labour market with equilibrium wage w*, the government fixes a minimum wage at w. Which statement is true?

    1. AThere is a tendency of increased casualization of workers if w > w*, where workers would not receive many benefits.
    2. BThe market will tend toward a new equilibrium at w with no other changes.
    3. CIf w < w*, there will be increased casualization of workers.
    4. DIt is impossible to administer such legislation unless w = w*.

    Answer: (A) There is a tendency of increased casualization of workers if w > w*, where workers would not receive many benefits.

    Explanation

    A binding minimum wage above equilibrium can reduce formal employment and increase casualization or informalization of workers.

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34. Question 34

    In the market diagram with DD as demand curve and SS as supply curve, choose the right answer.

    1. AThere is no stable equilibrium.
    2. BE1 is a stable equilibrium, though E2 is an unstable equilibrium.
    3. CE2 is a stable equilibrium, though E1 is an unstable equilibrium.
    4. DBoth E1 and E2 are stable equilibria.

    Answer: (B) E1 is a stable equilibrium, though E2 is an unstable equilibrium.

    Explanation

    The answer depends on the source figure, which OCR cannot preserve; the selected stability interpretation should be visually checked. Marked for review because the PDF is a candidate-response paper and this item has formula/figure/key uncertainty.

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35. Question 35

    If revenue deficit is 3% of GDP, primary deficit is 2% of GDP and fiscal deficit is 7% of GDP, the capital expenditure to GDP ratio would be:

    1. A5% of GDP
    2. B1% of GDP
    3. C4% of GDP
    4. D2% of GDP

    Answer: (C) 4% of GDP

    Explanation

    Capital expenditure-related borrowing is approximated by fiscal deficit minus revenue deficit: 7% - 3% = 4% of GDP.

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36. Question 36

    If the interest rate is exogenously determined by the central bank and money supply is endogenously determined, the slope of the LM curve in the interest rate-income plane would be:

    1. APositively sloped
    2. BNegatively sloped
    3. CHorizontal
    4. DVertical

    Answer: (C) Horizontal

    Explanation

    When the central bank fixes the interest rate, the LM schedule is horizontal at that policy rate.

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37. Question 37

    Higher fiscal deficit to GDP ratio would necessarily cause inflation if the economy is under:

    1. ADemand constrained situation
    2. BSupply constrained situation
    3. CBoth demand and supply constrained situation
    4. DNeither demand constrained nor supply constrained situation

    Answer: (B) Supply constrained situation

    Explanation

    A fiscal expansion is necessarily inflationary when output cannot expand because the economy is supply constrained.

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38. Question 38

    Under flexible exchange rate, if current account deficit increases and capital account surplus increases, the exchange rate (domestic currency per US dollar) would:

    1. AAppreciate
    2. BDepreciate
    3. CDepend on which one is higher
    4. DNot depend on the BOP situation

    Answer: (C) Depend on which one is higher

    Explanation

    The exchange-rate effect depends on whether the increased capital-account surplus exceeds or falls short of the increased current-account deficit.

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39. Question 39

    Repo rate is the interest rate at which:

    1. AThe commercial banks borrow from the RBI
    2. BThe commercial banks borrow from other commercial banks
    3. CThe commercial banks deposit money with the RBI
    4. DThe common people deposit money with the RBI

    Answer: (A) The commercial banks borrow from the RBI

    Explanation

    Repo rate is the rate at which commercial banks borrow short-term funds from the RBI against securities.

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40. Question 40

    An economy characterized by huge involuntary unemployment would have an aggregate labour supply curve in a real wage-labour supply plane that would be:

    1. APositively sloped
    2. BVertical
    3. CFlat
    4. DNegatively sloped

    Answer: (C) Flat

    Explanation

    With large involuntary unemployment, more labour is available at the prevailing wage, so aggregate labour supply is effectively flat over the relevant range.

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41. Question 41

    World Hunger Index includes: A. Child mortality with weight 1/3; B. Child stunting with weight 1/3; C. Undernourishment with weight 1/3; D. Child wasting with weight 1/6; E. Child mortality with weight 1/6.

    1. A(A), (B) and (C) only
    2. B(A), (C) and (D) only
    3. C(B), (C) and (E) only
    4. D(D) and (E) only

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

    Explanation

    The Global/World Hunger Index weights undernourishment and child mortality at one-third each, and child wasting at one-sixth. Thus A, C and D match.

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42. Question 42

    Which statements are not true for the Linear Probability Model? A. Conditional probability is a linear function of explanatory variable X; B. Estimated conditional probability always lies between 0 and 1; C. Error term is homoscedastic; D. R squared is a good measure of goodness of fit.

    1. A(B) only
    2. B(B) and (C) only
    3. C(B), (C) and (D) only
    4. D(C) only

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

    Explanation

    In LPM, fitted probabilities can fall outside 0 and 1, errors are heteroscedastic, and R squared is not a very good fit measure for binary outcomes.

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43. Question 43

    Given Zt as a zero-mean white noise process, which of the following are I(0) processes? A. Xt = Xt-1 + Zt; B. Xt = aXt-1 + Zt where 0 < a < 1; C. Xt = Zt + Zt-1; D. Xt = delta + Xt-1 + Zt.

    1. A(C) only
    2. B(B) only
    3. C(B) and (C) only
    4. D(B), (C) and (D) only

    Answer: (C) (B) and (C) only

    Explanation

    A stationary AR(1) with |a|<1 and a finite MA process are I(0). Random-walk processes in A and D are I(1).

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44. Question 44

    Which of the following are features of a weakly stationary stochastic process? A. Mean is time-varying; B. Mean is constant; C. Variance is constant; D. Covariance is time-invariant.

    1. A(B) and (C) only
    2. B(B), (C) and (D) only
    3. C(A), (C) and (D) only
    4. D(A) and (C) only

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

    Explanation

    Weak stationarity requires constant mean, constant variance, and covariance depending only on lag, not calendar time.

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45. Question 45

    Suppose an economy is in medium-run equilibrium. The government makes entry of new firms difficult, increasing monopoly power of existing firms. Which statements are true? A. Output level will be lower in medium-run; B. Output level will be lower in short-run; C. Price level will be higher in medium-run; D. Price level will be higher in short-run.

    1. A(A) and (C) only
    2. B(B), (C) and (D) only
    3. C(B) and (C) only
    4. D(A), (B), (C) and (D) only

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

    Explanation

    Greater monopoly power raises markups, raising prices and reducing output in the short run and medium run in the standard macro model.

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46. Question 46

    Among the new monetary aggregates suggested by the Third Working Group of RBI, which one/ones include time deposits of term less than or equal to one year but not time deposits of term more than one year?

    1. A(A) only
    2. B(C) only
    3. C(C) and (D) only
    4. D(B) and (C) only

    Answer: (D) (B) and (C) only

    Explanation

    The OCR did not preserve the NM1/NM2/NM3/NM4 labels reliably; conceptually this refers to the aggregate including short-term time deposits. Marked for review because the PDF is a candidate-response paper and this item has formula/figure/key uncertainty.

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47. Question 47

    Which one of the following are money market instruments? A. 91-day Treasury bill; B. Commercial paper; C. Certificate of deposit issued by banks; D. 5-year government bond.

    1. A(A) only
    2. B(A) and (B) only
    3. C(A), (B) and (C) only
    4. D(B) and (C) only

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

    Explanation

    Treasury bills, commercial paper and certificates of deposit are money-market instruments; a 5-year government bond is a capital-market instrument.

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48. Question 48

    Consider the statements about the Current Account of balance of payments. A. Current account deficit equals excess of imports over sum of exports and net transfers received; B. It may be covered by borrowing from foreigners; C. It may be covered by buying assets from foreigners; D. A CAD of $50 million can be financed by net capital inflows of $50 million.

    1. A(A), (B), (C), (D)
    2. B(A), (B), (D) only
    3. C(A), (C), (D) only
    4. D(B), (C), (D) only

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

    Explanation

    CAD can be financed by borrowing abroad or capital inflows; buying foreign assets would worsen outflows, not finance CAD.

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49. Question 49

    Suppose India is home country and USA is foreign country. India interest rate is 3%, US interest rate is 1%, spot rate is Rs. 80/USD and 3-month forward rate is Rs. 81/USD. Which statements are true for covered interest arbitrage flows? A. Rupee will depreciate in spot market; B. Rupee will depreciate in forward market; C. Interest rate will decline in India; D. Interest rate will decline in US.

    1. A(A) and (B) only
    2. B(A) and (C) only
    3. C(A) and (D) only
    4. D(A), (B), (C) and (D)

    Answer: (C) (A) and (D) only

    Explanation

    Covered-interest-arbitrage direction is inferred from the interest differential and forward premium, but the source PDF has no answer key. Marked for review because the PDF is a candidate-response paper and this item has formula/figure/key uncertainty.

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50. Question 50

    The current account deficit of the BOP may be financed in many ways. Which are correct? A. FDI inflows; B. Inflow of foreign portfolio investment; C. Borrowing from IMF or World Bank; D. Drawing down foreign exchange reserves.

    1. A(A), (B), (C) only
    2. B(B), (C), (D) only
    3. C(A), (B), (C), (D)
    4. D(A), (C), (D) only

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

    Explanation

    All four listed items can finance a current account deficit through capital inflows or reserve use.

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51. Question 51

    Consider statements about the Specific Factors model of international trade. A. Factors specific to export sectors gain from trade; B. Factors specific to import-competing sectors lose from trade; C. Mobile factors may gain from trade; D. Mobile factors may lose from trade.

    1. A(A), (C), (D) only
    2. B(B), (C), (D) only
    3. C(A), (B), (C) only
    4. D(A), (B), (C), (D)

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

    Explanation

    Specific factors in export sectors gain, those in import-competing sectors lose, and mobile factors may gain or lose depending on consumption and income effects.

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52. Question 52

    Consider statements about the Aggregate Demand relation under price flexibility. A. AD shifts right if autonomous investment rises; B. AD shifts right if net exports rise in an open economy; C. AD shifts left if money supply contracts; D. As price rises, shifting the LM curve, the AD curve shifts left.

    1. A(A), (B), (C) only
    2. B(B), (C), (D) only
    3. C(A), (C), (D) only
    4. D(A), (B), (C), (D)

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

    Explanation

    A, B and C are genuine AD shifts. A price rise causes movement along AD through LM effects, not a shift of the AD curve itself.

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53. Question 53

    Consider statements about major schools of macroeconomics. A. Keynesians believed in wage and price flexibility and highlighted aggregate supply; B. Monetarists highlighted money and expectations in inflation analysis; C. Classical school believed in invisible hand and market efficiency; D. New Keynesians use imperfect markets.

    1. A(B), (C), (D) only
    2. B(A), (B), (C), (D)
    3. C(A), (C), (D) only
    4. D(A), (B), (C) only

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

    Explanation

    Statement A describes classical rather than Keynesian emphasis. B, C and D correctly describe monetarist, classical and new Keynesian positions.

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54. Question 54

    Consider an economy with perfect capital mobility, fixed price level and flexible exchange rate. Starting from equilibrium, suppose there is a monetary expansion. Which are true for the new equilibrium? A. Output higher; B. Consumption higher; C. Interest rate lower; D. Interest rate higher.

    1. A(A) only
    2. B(B) only
    3. C(A) and (B) only
    4. D(A) and (C) only

    Answer: (C) (A) and (B) only

    Explanation

    With perfect capital mobility and flexible exchange rates, monetary expansion raises output and therefore consumption, while the interest rate returns to the world rate.

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55. Question 55

    Let H = e^Q where Q = A x^alpha y^beta. Consider statements. A. Q is homogeneous for all alpha and beta; B. H is homothetic for all alpha and beta; C. Q is homogeneous only if alpha + beta = 1; D. H is not homogeneous; E. Q is not homogeneous.

    1. A(A) and (B) only
    2. B(A), (B) and (D) only
    3. C(C) and (A) only
    4. D(E) and (D) only

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

    Explanation

    Cobb-Douglas Q is homogeneous of degree alpha+beta for all alpha and beta, H is a monotonic transformation and thus homothetic, but H is not homogeneous.

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56. Question 56

    For A = [[1,3],[2,8],[4,0]] and B = [[5],[9]], consider statements. A. AB is [32,82,20]^T; B. BA is [32 82 20]; C. AB is not defined; D. BA is not defined; E. A^T B is defined.

    1. A(C) and (B) only
    2. B(A), (D), (E) only
    3. C(A) only
    4. D(A) and (D) only

    Answer: (D) (A) and (D) only

    Explanation

    A is 3x2 and B is 2x1, so AB is defined and equals [32,82,20]^T. BA is not defined, and A^T B is also not conformable.

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57. Question 57

    The following are five statements about short-run cost curves. A. MC cuts both AC and AVC at their lowest points; B. MC cuts AC from below, but nothing can be said about AVC; C. The distance between TC and TVC gets reduced as quantity increases; D. AFC is asymptotic to the cost axis; E. AC is U-shaped.

    1. A(A), (C), (D), (E) only
    2. B(B), (C), (E) only
    3. C(A), (E) only
    4. D(D), (E), (A) only

    Answer: (C) (A), (E) only

    Explanation

    MC cuts AC and AVC at their minima and AC is U-shaped. TC-TVC equals fixed cost, so it does not shrink, and AFC is not asymptotic to the cost axis in the stated way.

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58. Question 58

    OLS output of wages on schooling S and cognitive ability CA is wages = -3.36 + 0.64S + 0.15CA with standard errors (1.98), (0.12), (0.05). ESS = 4745.75 with df 2 and RSS = 33651.28 with df 567. Which statements are true? A. One more year of schooling raises wage by Rs. 640 on average; B. t statistic of CA is 3; C. F = (4745.75/2)/(33651.28/567); D. F = (33651.28/567)/(4745.75/2).

    1. A(A), (C) only
    2. B(A), (B), (D) only
    3. C(A), (B), (C) only
    4. D(A), (D) only

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

    Explanation

    The schooling coefficient is 0.64 thousand rupees, i.e. Rs. 640. CA t statistic is 0.15/0.05=3, and F is mean explained sum of squares divided by mean residual sum of squares.

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59. Question 59

    Read statements on demography across India's major states. A. Kerala pioneered fertility transition; B. Bihar has high IMR and low reporting of morbidity; C. Orissa records the highest share of immunized children as per NFHS-5; D. Tamil Nadu has highest old-age population share as per Census 2011; E. Madhya Pradesh has highest share of stunted children as per NFHS-5.

    1. A(A), (D) only
    2. B(A), (B), (E) only
    3. C(A), (D), (E) only
    4. D(A), (B), (C) only

    Answer: (B) (A), (B), (E) only

    Explanation

    Demography statements were inferred from standard sources, but state rankings should be verified against the exact NFHS/Census table used by NTA. Marked for review because the PDF is a candidate-response paper and this item has formula/figure/key uncertainty.

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60. Question 60

    Consider matrix A = [[3,5],[-2,-4]] and statements on characteristic polynomial and eigenvalues. A. Characteristic polynomial is lambda^2 + lambda - 2; B. Characteristic polynomial is lambda^2 - 2lambda - 4 with roots 2 and 1; C. Characteristic polynomial is lambda^2 - lambda + 2 with roots 1 and 2; D. Eigenvalues are -2 and 1.

    1. A(A), (C) and (D) only
    2. B(B) and (D) only
    3. C(B) and (C) only
    4. D(A) and (D) only

    Answer: (D) (A) and (D) only

    Explanation

    For A, trace is -1 and determinant is -2, so the characteristic polynomial is lambda^2 + lambda - 2 with roots 1 and -2. Thus A and D are correct.

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61. Question 61

    Suppose production function q = f(k,l) is homogeneous of degree 1. Consider statements. A. Marginal products of capital and labour are homogeneous of degree 1; B. Second-order cross marginal products of k and l are equal; C. Euler theorem gives fk k + fl l = q; D. Differentiating Euler theorem gives the stated second-derivative relation.

    1. A(A) and (B) only
    2. B(A), (B) and (C) only
    3. C(A), (C) and (D) only
    4. D(B), (C) and (D) only

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

    Explanation

    For a degree-1 homogeneous production function, marginal products are homogeneous of degree 0, not 1. Cross partial equality and Euler relations are standard under differentiability.

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62. Question 62

    Consider statements. A. The union of finite numbers of closed sets is closed; B. The empty set is open but not closed; C. Every infinite set is open; D. The intersection of finite numbers of open sets is open.

    1. A(A) and (B) only
    2. B(B) and (C) only
    3. C(A) and (D) only
    4. D(A), (B) and (C) only

    Answer: (C) (A) and (D) only

    Explanation

    Finite unions of closed sets are closed and finite intersections of open sets are open. The empty set is both open and closed, and infinite sets need not be open.

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63. Question 63

    Consider statements on monotonicity of preference in two-commodity choice. A. Monotonicity implies strong monotonicity but not the other way round; B. A preference relation is monotone if y >= x and y != x implies y is at least as good as x; C. A preference relation is strongly monotone if y > x implies y is strictly preferred to x; D. Local non-satiation must imply monotonicity and strong monotonicity.

    1. A(B) and (D) only
    2. B(A), (B) and (D) only
    3. C(A), (C) and (D) only
    4. D(A) and (D) only

    Answer: (A) (B) and (D) only

    Explanation

    The OCR has damaged preference symbols and the available options do not cleanly match the standard true statements. Marked for review because the PDF is a candidate-response paper and this item has formula/figure/key uncertainty.

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64. Question 64

    Consider statements about utility functions. A. If u(x)=V(b(x)) with V increasing, then u represents the same preference as b; B. If two utility functions represent the same preference, utility-maximization choices are the same but indirect utility values differ; C. If local non-satiation is satisfied, any solution to utility maximization satisfies budget equality; D. If indirect utility of b is homogeneous of degree 0, then indirect utility of u=V(b) is homogeneous of degree 1.

    1. A(B) only
    2. B(A), (B) and (D) only
    3. C(A), (B) and (C) only
    4. D(B), (C) and (D) only

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

    Explanation

    Positive monotonic transformations preserve preferences and choices; indirect utility numbers may differ. Local non-satiation implies the budget binds. D is false because a monotonic transform need not be degree-1 homogeneous.

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65. Question 65

    Consider three constrained optimization problems: a. Maximize z = ln x subject to x > 1; b. Maximize z = ln x subject to x < 1; c. Maximize z = ln x subject to 1 < x < 2. Which statement is correct?

    1. A(a) and (b) have no solutions but (c) has solution
    2. B(a) and (b) have solutions but (c) has no solution
    3. C(a), (b) and (c) have no solution
    4. D(a) and (c) have no solution but (b) has solution

    Answer: (C) (a), (b) and (c) have no solution

    Explanation

    ln x is increasing. Problem a is unbounded above, b has a supremum at 1 not attained, and c has a supremum at 2 not attained because the interval is open.

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66. Question 66

    Match List-I with List-II.

    List-I	List-II
    A. Ramsar Convention	I. Ozone layer depletion
    B. Basel Convention	II. Reduction of greenhouse gas emission
    C. Montreal Protocol	III. Conservation of wetlands
    D. Paris Agreement	IV. Control of trans-boundary movement of hazardous wastes and disposal

    Environmental conventions and focus areas

    1. A(A)-(I), (B)-(IV), (C)-(II), (D)-(III)
    2. B(A)-(I), (B)-(II), (C)-(III), (D)-(IV)
    3. C(A)-(IV), (B)-(II), (C)-(III), (D)-(I)
    4. D(A)-(III), (B)-(IV), (C)-(I), (D)-(II)

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

    Explanation

    Ramsar relates to wetlands, Basel to hazardous waste movement/disposal, Montreal to ozone depletion, and Paris Agreement to greenhouse gas emission reduction.

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67. Question 67

    Match List-I with List-II.

    List-I	List-II
    A. Coase theorem	I. Property right, victim pay and polluter pay principle
    B. Climate change	II. Lax environmental regulation, hidden subsidy
    C. Ecological dumping	III. Quantity restriction
    D. Tradable emission permit	IV. Global externality

    Environmental economics concepts and associated features

    1. A(A)-(III), (B)-(IV), (C)-(I), (D)-(II)
    2. B(A)-(I), (B)-(IV), (C)-(II), (D)-(III)
    3. C(A)-(II), (B)-(I), (C)-(III), (D)-(IV)
    4. D(A)-(III), (B)-(IV), (C)-(II), (D)-(I)

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

    Explanation

    Coase theorem relates to property rights and polluter/victim pay principles; climate change is a global externality; ecological dumping involves lax regulation or hidden subsidy; tradable permits are quantity restrictions.

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68. Question 68

    Match List-I with List-II.

    List-I	List-II
    A. Kenneth Arrow	I. Analysis of causal relationship
    B. Robert Solow	II. Fundamental contribution in behavioural economics
    C. Daniel Kahneman	III. Fundamental contribution in welfare economics
    D. Joshua Angrist	IV. Fundamental contribution in economic growth theory

    Economists and fundamental contributions

    1. A(A)-(III), (B)-(IV), (C)-(II), (D)-(I)
    2. B(A)-(II), (B)-(I), (C)-(III), (D)-(IV)
    3. C(A)-(I), (B)-(IV), (C)-(II), (D)-(III)
    4. D(A)-(I), (B)-(IV), (C)-(III), (D)-(II)

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

    Explanation

    Kenneth Arrow is linked with welfare economics, Robert Solow with growth theory, Daniel Kahneman with behavioural economics, and Joshua Angrist with causal relationship analysis.

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69. Question 69

    Match List-I with List-II.

    List-I	List-II
    A. Demographic Transition	I. Dualism
    B. Stages of growth	II. Take-off
    C. Rural-urban migration decision	III. Replacement Rate
    D. Female labour force participation rate	IV. Backward bending labour supply curve

    Development concepts and associated terms

    1. A(A)-(I), (B)-(II), (C)-(III), (D)-(IV)
    2. B(A)-(IV), (B)-(I), (C)-(III), (D)-(II)
    3. C(A)-(III), (B)-(II), (C)-(I), (D)-(IV)
    4. D(A)-(IV), (B)-(I), (C)-(II), (D)-(III)

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

    Explanation

    Demographic transition is associated with replacement rate, Rostow stages with take-off, rural-urban migration decision with dualism, and female labour-force participation with backward-bending labour supply.

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70. Question 70

    Match List-I with List-II.

    List-I (Model/method)	List-II (Feature)
    A. Logit model	I. Elasticities are constant
    B. Log-log model	II. Binary dependent variable
    C. Autoregressive model	III. Corrects for heteroscedasticity
    D. Weighted least squares	IV. Includes lags of dependent variable

    Models/methods and features

    1. A(A)-(II), (B)-(I), (C)-(III), (D)-(IV)
    2. B(A)-(II), (B)-(I), (C)-(IV), (D)-(III)
    3. C(A)-(I), (B)-(II), (C)-(III), (D)-(IV)
    4. D(A)-(III), (B)-(I), (C)-(IV), (D)-(II)

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

    Explanation

    Logit uses a binary dependent variable, log-log gives constant elasticities, autoregressive models include lags of the dependent variable, and weighted least squares corrects heteroscedasticity.

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71. Question 71

    Match the following.

    List-I (Theory)	List-II (Economist/s)
    A. Permanent Income Hypothesis of Consumption	I. T. Sargent and N. Wallace
    B. Life-cycle Hypothesis of Consumption	II. Milton Friedman
    C. Real Business Cycle Theory	III. Franco Modigliani
    D. Policy Ineffectiveness Proposition	IV. F. Kydland and E. Prescott

    Theories and economists

    1. A(A)-(III), (B)-(I), (C)-(II), (D)-(IV)
    2. B(A)-(III), (B)-(II), (C)-(IV), (D)-(I)
    3. C(A)-(II), (B)-(III), (C)-(IV), (D)-(I)
    4. D(A)-(II), (B)-(III), (C)-(I), (D)-(IV)

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

    Explanation

    Permanent Income Hypothesis is Friedman, Life-cycle Hypothesis is Modigliani, Real Business Cycle theory is Kydland and Prescott, and Policy Ineffectiveness is Sargent and Wallace.

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72. Question 72

    Match List-I with List-II.

    List-I	List-II
    A. Unequal Exchange	I. A. Hirschman
    B. The development of underdevelopment	II. G. Myrdal
    C. Backward and forward linkage effect	III. A. Emmanuel
    D. Backwash effect	IV. G. Frank

    Development concepts and economists

    1. A(A)-(II), (B)-(III), (C)-(I), (D)-(IV)
    2. B(A)-(III), (B)-(I), (C)-(IV), (D)-(II)
    3. C(A)-(III), (B)-(IV), (C)-(I), (D)-(II)
    4. D(A)-(II), (B)-(IV), (C)-(III), (D)-(I)

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

    Explanation

    Unequal exchange is associated with Emmanuel, development of underdevelopment with Frank, backward and forward linkages with Hirschman, and backwash effect with Myrdal.

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73. Question 73

    Match List-I with List-II.

    List-I (Variable)	List-II (Distribution)
    A. Sum of squares of n independent standard normal variates	I. t distribution
    B. Ratio of a standard normal variate to square root of an independent chi-square variable divided by df	II. F distribution
    C. Ratio of two independent chi-square variables each divided by df	III. Standard normal distribution
    D. Normal variate minus its mean, divided by its standard deviation	IV. Chi-square distribution

    Variables and distributions

    1. A(A)-(I), (B)-(IV), (C)-(II), (D)-(III)
    2. B(A)-(IV), (B)-(I), (C)-(III), (D)-(II)
    3. C(A)-(I), (B)-(IV), (C)-(III), (D)-(II)
    4. D(A)-(IV), (B)-(I), (C)-(II), (D)-(III)

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

    Explanation

    Sum of squared standard normals is chi-square; a standard normal over square root of independent chi-square/df is t; ratio of two chi-square/df variables is F; standardized normal variate is standard normal.

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74. Question 74

    Match List-I with List-II.

    List-I (Property)	List-II (Type of curve)
    A. Investment is unresponsive to interest rates	I. Relatively flat IS curve
    B. Money demand is perfectly elastic with respect to interest rates	II. Vertical LM curve
    C. Money demand is completely inelastic with respect to interest rates	III. Horizontal LM curve
    D. Investment is highly responsive to interest rates	IV. Vertical IS curve

    IS-LM properties and curve types

    1. A(A)-(IV), (B)-(III), (C)-(II), (D)-(I)
    2. B(A)-(IV), (B)-(I), (C)-(III), (D)-(I)
    3. C(A)-(I), (B)-(II), (C)-(III), (D)-(IV)
    4. D(A)-(II), (B)-(IV), (C)-(I), (D)-(III)

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

    Explanation

    Interest-unresponsive investment gives a vertical IS, perfectly interest-elastic money demand gives horizontal LM, interest-inelastic money demand gives vertical LM, and highly interest-responsive investment gives a flat IS.

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75. Question 75

    Match List-I with List-II.

    List-I	List-II
    A. Quantity theory of money	I. Milton Friedman
    B. Involuntary unemployment	II. John Maynard Keynes
    C. Randomised trial	III. Abhijit V. Banerjee
    D. Relative poverty	IV. Amartya K. Sen

    Economic ideas and economists

    1. A(A)-(I), (B)-(II), (C)-(III), (D)-(IV)
    2. B(A)-(IV), (B)-(III), (C)-(II), (D)-(I)
    3. C(A)-(III), (B)-(II), (C)-(I), (D)-(IV)
    4. D(A)-(III), (B)-(II), (C)-(IV), (D)-(I)

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

    Explanation

    Quantity theory is associated with Friedman in the option set, involuntary unemployment with Keynes, randomized trials with Abhijit Banerjee, and relative poverty with Amartya Sen.

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76. Question 76

    Arrange the steps of exchange-rate channel of monetary transmission in correct order: A. Reduction in policy rate; B. Capital outflows; C. Depreciation of domestic currency; D. Rise in net exports.

    1. A(A), (C), (D), (B)
    2. B(A), (D), (B), (C)
    3. C(A), (B), (C), (D)
    4. D(A), (D), (C), (B)

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

    Explanation

    A rate cut induces capital outflows, which depreciates domestic currency and then raises net exports.

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77. Question 77

    Arrange former RBI governors in chronological order from earliest to latest: A. Y.V. Reddy; B. D. Subbarao; C. Raghuram Rajan; D. Urjit Patel.

    1. A(C), (B), (D), (A)
    2. B(C), (A), (D), (B)
    3. C(A), (B), (C), (D)
    4. D(D), (C), (A), (B)

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

    Explanation

    The sequence is Y.V. Reddy, D. Subbarao, Raghuram Rajan, Urjit Patel.

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78. Question 78

    Arrange events in the Indian financial system chronologically from earliest to latest: A. Setting up of PFRDA; B. Setting up of UTI; C. Nationalisation of 14 commercial banks; D. Implementation of IBC.

    1. A(A), (B), (C), (D)
    2. B(C), (A), (B), (D)
    3. C(B), (C), (A), (D)
    4. D(A), (C), (B), (D)

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

    Explanation

    UTI came first, followed by bank nationalisation in 1969, PFRDA, and then IBC implementation.

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79. Question 79

    Match List-I with List-II.

    List-I	List-II
    A. Shephard’s Lemma	I. Hidden types of agent
    B. Adverse Selection	II. Envelope theorem
    C. Hotelling Lemma	III. Indirect utility function
    D. Roy’s Identity	IV. Profit function

    Economic lemmas/concepts and associated ideas

    1. A(A)-(IV), (B)-(II), (C)-(I), (D)-(III)
    2. B(A)-(II), (B)-(I), (C)-(IV), (D)-(III)
    3. C(A)-(I), (B)-(II), (C)-(III), (D)-(IV)
    4. D(A)-(II), (B)-(IV), (C)-(I), (D)-(III)

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

    Explanation

    Shephard’s lemma follows the envelope theorem, adverse selection concerns hidden types, Hotelling lemma relates to profit functions, and Roy’s identity relates to indirect utility.

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80. Question 80

    Arrange centrally sponsored schemes in India by launch year from earliest to latest: A. Beti Bachao Beti Padhao; B. Ujjwala; C. Swachh Bharat Abhiyan; D. Ayushman Bharat; E. Right to Education.

    1. A(E), (A), (C), (B), (D)
    2. B(E), (C), (A), (B), (D)
    3. C(A), (E), (C), (B), (D)
    4. D(A), (C), (E), (D), (B)

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

    Explanation

    Right to Education came first, followed by Swachh Bharat, Beti Bachao Beti Padhao, Ujjwala and Ayushman Bharat.

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81. Question 81

    Chow Test steps are: A. Run regression on pooled sample and calculate RSSp; B. Run regressions on two sub-samples and calculate RSS1 and RSS2; C. Calculate F statistic; D. Check critical F and compare; E. Do not reject H0 if Fcalculated < Fcritical. Choose correct order.

    1. A(A), (B), (C), (D), (E)
    2. B(A), (D), (C), (B), (E)
    3. C(C), (A), (B), (D), (E)
    4. D(C), (B), (A), (D), (E)

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

    Explanation

    The Chow test first estimates pooled and separate regressions, then computes F, compares with the critical value, and applies the decision rule.

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82. Question 82

    Arrange committees by year of establishment from oldest: A. Lakdawala Committee; B. Khusro Committee; C. Alagh Committee; D. Nayak Committee; E. Tendulkar Committee.

    1. A(D), (B), (C), (A), (E)
    2. B(C), (D), (B), (A), (E)
    3. C(C), (B), (D), (A), (E)
    4. D(B), (C), (D), (E), (A)

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

    Explanation

    Committee chronology is inferred but should be verified against the exact NTA key. Marked for review because the PDF is a candidate-response paper and this item has formula/figure/key uncertainty.

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83. Question 83

    Arrange chronologically from oldest: A. Theory of Big Push; B. The Accumulation of Capital; C. Theory of cumulative causation; D. Unbalanced growth; E. Development with unlimited supplies of labour.

    1. A(E), (A), (C), (B), (D)
    2. B(A), (E), (B), (C), (D)
    3. C(E), (B), (A), (D), (C)
    4. D(A), (B), (E), (C), (D)

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

    Explanation

    Big Push predates Lewis’s unlimited labour model, followed by Robinson’s accumulation of capital, Myrdal’s cumulative causation, and Hirschman’s unbalanced growth.

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84. Question 84

    Arrange schools of macroeconomic thought chronologically from oldest to most recent: A. Keynesian school; B. New classical school; C. Classical school; D. New Keynesian school; E. Monetarists.

    1. A(A), (D), (C), (B), (E)
    2. B(E), (C), (B), (A), (D)
    3. C(C), (B), (A), (D), (E)
    4. D(C), (A), (E), (B), (D)

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

    Explanation

    The broad sequence is Classical, Keynesian, Monetarist, New Classical, then New Keynesian.

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85. Question 85

    A central bank maintains a fixed exchange rate defined as domestic currency per unit foreign currency. Domestic currency is overvalued. Arrange intervention steps: A. Demand for foreign currency exceeds supply; B. Exchange rate is lower than market clearing rate; C. Gap between supply and demand is equalized; D. Central bank stock of foreign currency is depleted; E. Central bank sells foreign currency reserves.

    1. A(B), (E), (A), (D), (C)
    2. B(B), (A), (E), (D), (C)
    3. C(B), (E), (A), (C), (D)
    4. D(B), (A), (E), (C), (D)

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

    Explanation

    Overvaluation means the fixed rate is below market-clearing level, creating excess demand for foreign currency. The central bank sells reserves, reserves fall, and the gap is equalized.

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86. Question 86

    Statement I: Agricultural GDP constitutes less than 16% of aggregate GDP at 2011-12 constant prices and less than 20% at current prices in 2022-23 (PE) in India. Statement II: Service sector GDP constitutes less than 16% of aggregate GDP at 2011-12 constant prices and less than 20% at current prices in 2022-23 (PE) in India.

    1. ABoth Statement I and Statement II are correct
    2. BBoth Statement I and Statement II are incorrect
    3. CStatement I is correct but Statement II is incorrect
    4. DStatement I is incorrect but Statement II is correct

    Answer: (C) Statement I is correct but Statement II is incorrect

    Explanation

    Agriculture’s share is below those thresholds, while services account for a much larger share of GDP. Thus Statement I is correct and Statement II is incorrect.

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87. Question 87

    Statement I: Government spending on social services as a percentage of GDP has been rising since 2017-18. Statement II: Government spending on social services as a percentage of total expenditure has also been continuously rising since 2017-18.

    1. ABoth Statement I and Statement II are correct
    2. BBoth Statement I and Statement II are incorrect
    3. CStatement I is correct but Statement II is incorrect
    4. DStatement I is incorrect but Statement II is correct

    Answer: (C) Statement I is correct but Statement II is incorrect

    Explanation

    Statement I is broadly consistent with rising social-sector spending share in GDP, while continuous rise as a share of total expenditure is uncertain and should be checked against the table used by NTA. Marked for review because the PDF is a candidate-response paper and this item has formula/figure/key uncertainty.

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88. Question 88

    Statement I: Human Development is a process of enlarging people’s choices. Statement II: Human Development Index is based on life expectancy at birth, expected years of schooling, mean years of schooling and gross domestic product per capita at dollar PPP.

    1. ABoth Statement I and Statement II are correct
    2. BBoth Statement I and Statement II are incorrect
    3. CStatement I is correct but Statement II is incorrect
    4. DStatement I is incorrect but Statement II is correct

    Answer: (C) Statement I is correct but Statement II is incorrect

    Explanation

    Statement I is the standard UNDP idea of human development. Statement II is incorrect because HDI uses GNI per capita, not GDP per capita.

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89. Question 89

    Assertion (A): Given a random sample, the distribution of the sample mean tends to a normal distribution as sample size becomes very large. Reason (R): Central limit theorem.

    1. ABoth Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)
    2. BBoth Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of Assertion (A)
    3. CAssertion (A) is correct but Reason (R) is not correct
    4. DAssertion (A) is not correct but Reason (R) is correct

    Answer: (A) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)

    Explanation

    The central limit theorem states that the sampling distribution of the mean tends toward normality as sample size becomes large under standard conditions, so it explains the assertion.

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90. Question 90

    Assertion (A): According to the Domar condition of debt sustainability, public debt would not rise as a proportion of GDP if the effective interest rate on government liabilities is less than or equal to the growth rate of GDP at current prices. Reason (R): Growth rate of GDP at current price is bound to be less than the effective interest rate on government bonds.

    1. ABoth Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)
    2. BBoth Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of Assertion (A)
    3. CAssertion (A) is correct but Reason (R) is not correct
    4. DAssertion (A) is not correct but Reason (R) is correct

    Answer: (C) Assertion (A) is correct but Reason (R) is not correct

    Explanation

    Domar’s sustainability condition is correctly stated in the assertion. The reason is false because nominal GDP growth is not bound to be below the effective interest rate.

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91. Question 91

    What is the equilibrium profit of firm 2 in the short run in Scenario 1?

    Assume that there are two firms producing steel. There is a negative externality due to production causing pollution. Firm 1 output is q1 and firm 2 output is q2. The market price for steel is P = 1. Scenario 1: firm 1 cost is C1(q1) = q1^2 and firm 2 cost is C2(q2, q1) = (q2 + 0.75q1)^2, so firm 1 production is not affected by firm 2 but firm 2 cost rises with firm 1 production. Scenario 2: the negative externality works both ways, so both firms face the adverse impact: C1(q1, q2) = (q1 + 0.75q2)^2 and C2(q2, q1) = (q2 + 0.75q1)^2.

    1. Api2 = 0.025
    2. Bpi2 = 0.125
    3. Cpi2 = -0.125
    4. Dpi2 = 0.75

    Answer: (C) pi2 = -0.125

    Explanation

    With firm 1 producing the short-run optimum, firm 2’s cost is raised by the externality; the implied profit is negative, matching -0.125.

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92. Question 92

    What is the long-run profit of firm 1 in Scenario 1?

    Assume that there are two firms producing steel. There is a negative externality due to production causing pollution. Firm 1 output is q1 and firm 2 output is q2. The market price for steel is P = 1. Scenario 1: firm 1 cost is C1(q1) = q1^2 and firm 2 cost is C2(q2, q1) = (q2 + 0.75q1)^2, so firm 1 production is not affected by firm 2 but firm 2 cost rises with firm 1 production. Scenario 2: the negative externality works both ways, so both firms face the adverse impact: C1(q1, q2) = (q1 + 0.75q2)^2 and C2(q2, q1) = (q2 + 0.75q1)^2.

    1. Api1 = 0.025
    2. Bpi1 = 0
    3. Cpi1 = 0.25
    4. Dpi1 = 0.125

    Answer: (C) pi1 = 0.25

    Explanation

    In the long run, the loss-making firm 2 exits in Scenario 1 and firm 1 earns the monopoly-like profit 0.25.

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93. Question 93

    What is the long-run profit of firm 2 in Scenario 1?

    Assume that there are two firms producing steel. There is a negative externality due to production causing pollution. Firm 1 output is q1 and firm 2 output is q2. The market price for steel is P = 1. Scenario 1: firm 1 cost is C1(q1) = q1^2 and firm 2 cost is C2(q2, q1) = (q2 + 0.75q1)^2, so firm 1 production is not affected by firm 2 but firm 2 cost rises with firm 1 production. Scenario 2: the negative externality works both ways, so both firms face the adverse impact: C1(q1, q2) = (q1 + 0.75q2)^2 and C2(q2, q1) = (q2 + 0.75q1)^2.

    1. Api2 = 0.125
    2. Bpi2 = 0.120
    3. Cpi2 = 0.5
    4. Dpi2 = 0

    Answer: (D) pi2 = 0

    Explanation

    Firm 2 has negative short-run profit under Scenario 1 and exits in the long run, so its long-run profit is zero.

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94. Question 94

    What would be the market equilibrium profit of the two firms in Scenario 2?

    Assume that there are two firms producing steel. There is a negative externality due to production causing pollution. Firm 1 output is q1 and firm 2 output is q2. The market price for steel is P = 1. Scenario 1: firm 1 cost is C1(q1) = q1^2 and firm 2 cost is C2(q2, q1) = (q2 + 0.75q1)^2, so firm 1 production is not affected by firm 2 but firm 2 cost rises with firm 1 production. Scenario 2: the negative externality works both ways, so both firms face the adverse impact: C1(q1, q2) = (q1 + 0.75q2)^2 and C2(q2, q1) = (q2 + 0.75q1)^2.

    1. Api1 = 1/28, pi2 = 1/28
    2. Bpi1 = 2/7, pi2 = 2/7
    3. Cpi1 = 1/14, pi2 = 1/14
    4. Dpi1 = pi2 = 0

    Answer: (A) pi1 = 1/28, pi2 = 1/28

    Explanation

    With symmetric two-way externality, the symmetric equilibrium gives profit 1/28 for each firm.

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95. Question 95

    Do you think the equilibrium outcome for Scenario 2 is inefficient? How would efficiency be restored?

    Assume that there are two firms producing steel. There is a negative externality due to production causing pollution. Firm 1 output is q1 and firm 2 output is q2. The market price for steel is P = 1. Scenario 1: firm 1 cost is C1(q1) = q1^2 and firm 2 cost is C2(q2, q1) = (q2 + 0.75q1)^2, so firm 1 production is not affected by firm 2 but firm 2 cost rises with firm 1 production. Scenario 2: the negative externality works both ways, so both firms face the adverse impact: C1(q1, q2) = (q1 + 0.75q2)^2 and C2(q2, q1) = (q2 + 0.75q1)^2.

    1. ANo, the equilibrium outcome of the firms is profit-minimizing outcome.
    2. BThe externality can be resolved by closing down both firms, pi1 = pi2 = 0.
    3. CIf one firm is forced to close down, externality will be reduced and joint profit is pi1 + pi2 = 0.071.
    4. DIf one firm is forced to close down, externality will be reduced and joint profit is pi1 + pi2 = 0.109.

    Answer: (D) If one firm is forced to close down, externality will be reduced and joint profit is pi1 + pi2 = 0.109.

    Explanation

    The externality question is formula-sensitive; selected option follows the higher joint-profit restoration option but should be checked against the official key. Marked for review because the PDF is a candidate-response paper and this item has formula/figure/key uncertainty.

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96. Question 96

    What was the inflation rate in India based on the GDP deflators?

    According to the NSO, MOSPI press release dated 31 May 2023, the revised estimate of GDP at current prices for 2021-22 was Rs. 2,34,71,012 crores and for 2020-21 was Rs. 1,98,29,927 crores. GDP at 2011-12 constant prices for 2020-21 and 2021-22 were Rs. 1,36,87,118 crores and Rs. 1,49,25,840 crores respectively. At current prices, net taxes on products were Rs. 20,32,128 crores in 2021-22(RE). PFCE, GFCE and GFCF in 2021-22 were Rs. 1,43,44,336 crores, Rs. 26,25,361 crores and Rs. 67,86,391 crores respectively. Change in stocks, valuables and discrepancies in 2021-22 were Rs. 1,63,438 crores, Rs. 3,79,112 crores and Rs. (-)2,08,247 crores respectively at current prices.

    1. A4.5%
    2. B6.6%
    3. C9.3%
    4. D10.2%

    Answer: (C) 9.3%

    Explanation

    Using nominal and real GDP growth, GDP-deflator inflation is approximately [(1+nominal growth)/(1+real growth)-1], closest to 9.3% among the options.

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97. Question 97

    The current account deficit to GDP ratio, both at current prices, in 2021-22 for India was:

    According to the NSO, MOSPI press release dated 31 May 2023, the revised estimate of GDP at current prices for 2021-22 was Rs. 2,34,71,012 crores and for 2020-21 was Rs. 1,98,29,927 crores. GDP at 2011-12 constant prices for 2020-21 and 2021-22 were Rs. 1,36,87,118 crores and Rs. 1,49,25,840 crores respectively. At current prices, net taxes on products were Rs. 20,32,128 crores in 2021-22(RE). PFCE, GFCE and GFCF in 2021-22 were Rs. 1,43,44,336 crores, Rs. 26,25,361 crores and Rs. 67,86,391 crores respectively. Change in stocks, valuables and discrepancies in 2021-22 were Rs. 1,63,438 crores, Rs. 3,79,112 crores and Rs. (-)2,08,247 crores respectively at current prices.

    1. A1.75%
    2. B3.53%
    3. C4.06%
    4. D2.64%

    Answer: (D) 2.64%

    Explanation

    Using the expenditure identity, imports are Rs. 56,69,024 crores. CAD = imports - exports = Rs. 6,19,379 crores; divided by GDP gives about 2.64%.

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98. Question 98

    The Gross Value Added at basic prices in 2021-22 was:

    According to the NSO, MOSPI press release dated 31 May 2023, the revised estimate of GDP at current prices for 2021-22 was Rs. 2,34,71,012 crores and for 2020-21 was Rs. 1,98,29,927 crores. GDP at 2011-12 constant prices for 2020-21 and 2021-22 were Rs. 1,36,87,118 crores and Rs. 1,49,25,840 crores respectively. At current prices, net taxes on products were Rs. 20,32,128 crores in 2021-22(RE). PFCE, GFCE and GFCF in 2021-22 were Rs. 1,43,44,336 crores, Rs. 26,25,361 crores and Rs. 67,86,391 crores respectively. Change in stocks, valuables and discrepancies in 2021-22 were Rs. 1,63,438 crores, Rs. 3,79,112 crores and Rs. (-)2,08,247 crores respectively at current prices.

    1. ARs. 2,55,03,140 crore
    2. BRs. 2,14,38,884 crore
    3. CRs. 2,34,71,012 crore
    4. DRs. 1,49,37,569 crore

    Answer: (B) Rs. 2,14,38,884 crore

    Explanation

    GVA at basic prices equals GDP at market prices minus net taxes on products: 2,34,71,012 - 20,32,128 = 2,14,38,884 crores.

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99. Question 99

    In 2021-22, the investment-GDP ratio in India was:

    According to the NSO, MOSPI press release dated 31 May 2023, the revised estimate of GDP at current prices for 2021-22 was Rs. 2,34,71,012 crores and for 2020-21 was Rs. 1,98,29,927 crores. GDP at 2011-12 constant prices for 2020-21 and 2021-22 were Rs. 1,36,87,118 crores and Rs. 1,49,25,840 crores respectively. At current prices, net taxes on products were Rs. 20,32,128 crores in 2021-22(RE). PFCE, GFCE and GFCF in 2021-22 were Rs. 1,43,44,336 crores, Rs. 26,25,361 crores and Rs. 67,86,391 crores respectively. Change in stocks, valuables and discrepancies in 2021-22 were Rs. 1,63,438 crores, Rs. 3,79,112 crores and Rs. (-)2,08,247 crores respectively at current prices.

    1. A31.2%
    2. B90%
    3. C40.1%
    4. D42.4%

    Answer: (A) 31.2%

    Explanation

    Investment here includes GFCF plus change in stocks and valuables. Dividing that total by current-price GDP gives roughly 31.2%.

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100. Question 100

     If exports in 2021-22 at current prices were Rs. 50,49,645 crores, imports in 2021-22 at current prices in India were:

     According to the NSO, MOSPI press release dated 31 May 2023, the revised estimate of GDP at current prices for 2021-22 was Rs. 2,34,71,012 crores and for 2020-21 was Rs. 1,98,29,927 crores. GDP at 2011-12 constant prices for 2020-21 and 2021-22 were Rs. 1,36,87,118 crores and Rs. 1,49,25,840 crores respectively. At current prices, net taxes on products were Rs. 20,32,128 crores in 2021-22(RE). PFCE, GFCE and GFCF in 2021-22 were Rs. 1,43,44,336 crores, Rs. 26,25,361 crores and Rs. 67,86,391 crores respectively. Change in stocks, valuables and discrepancies in 2021-22 were Rs. 1,63,438 crores, Rs. 3,79,112 crores and Rs. (-)2,08,247 crores respectively at current prices.

     1. ARs. 56,69,024 crores
     2. BRs. 6,19,378 crores
     3. CRs. 1,17,18,975 crores
     4. DRs. 94,11,752 crores

     Answer: (A) Rs. 56,69,024 crores

     Explanation

     From GDP = C + G + I + change in stocks + valuables + exports - imports + discrepancies, solving for imports gives about Rs. 56,69,024 crores.

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