|Economics · March 2023

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

The complete UGC NET March 2023 question paper for Economics, covering Paper 1 (General Aptitude) and Paper 2 (Economics). Every question below is shown with its options and the correct answer, and a detailed explanation you can unlock by signing in. All 298 questions are free to practise.

UGC NET March 2023 at a glance

ExamUGC NET March 2023
PapersPaper 1 (General Aptitude) and Paper 2 (Economics)
Exam date(s)March 2, 2023
Shift(s)Shift 1 · Shift 2
Paper 1 questions99 questions · 60 minutes · 100 marks
Paper 2 questions199 questions · 120 minutes · 200 marks
Total298 questions
Marking scheme+2 per correct answer · No negative marking
Paper 1

General Aptitude

UGC NET March 2023 · Shift 1 · Economics sitting

49 questions60 min100 marks
Practice Now
Paper 2

Economics

UGC NET March 2023 · Shift 1

100 questions120 min200 marks
Practice Now
Paper 1

General Aptitude

UGC NET March 2023 · Shift 2 · Economics sitting

50 questions60 min100 marks
Practice Now
Paper 2

Economics

UGC NET March 2023 · Shift 2

99 questions120 min200 marks
Practice Now

Paper 1 — General Aptitude · Shift 1

Attempt this paper

49 questions with the answer key and explanations.

  1. Question 1

    Company ______ earned the maximum percentage profit in the year 2021.

    CompanyIncome (million Rs.)Expenditure (million Rs.)
    A3545
    B5040
    C4045
    D4030
    E5045

    The table shows the income and expenditure of five companies A-E in 2021. Profit/Loss % = [(Income - Expenditure) / Expenditure] x 100.

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

    Answer: (D) D

    Explanation

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  2. Question 2

    The companies A and B together had a percentage profit/loss of ______.

    CompanyIncome (million Rs.)Expenditure (million Rs.)
    A3545
    B5040
    C4045
    D4030
    E5045

    The table shows the income and expenditure of five companies A-E in 2021. Profit/Loss % = [(Income - Expenditure) / Expenditure] x 100.

    1. A12% loss
    2. B10% profit
    3. C10% loss
    4. DThere was no loss or profit

    Answer: (D) There was no loss or profit

    Explanation

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  3. Question 3

    In 2021, the approximate percentage of profit/loss of all the five companies taken together was

    CompanyIncome (million Rs.)Expenditure (million Rs.)
    A3545
    B5040
    C4045
    D4030
    E5045

    The table shows the income and expenditure of five companies A-E in 2021. Profit/Loss % = [(Income - Expenditure) / Expenditure] x 100.

    1. A5% profit
    2. B4% loss
    3. C7% loss
    4. D10% profit

    Answer: (A) 5% profit

    Explanation

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  4. Question 4

    If the income of Company D in 2021 was 10% more than its income in 2020 and the company had earned a profit of 20% in 2020, then its expenditure (in million Rs.) in 2020 was approximately ______.

    CompanyIncome (million Rs.)Expenditure (million Rs.)
    A3545
    B5040
    C4045
    D4030
    E5045

    The table shows the income and expenditure of five companies A-E in 2021. Profit/Loss % = [(Income - Expenditure) / Expenditure] x 100.

    1. A28.28
    2. B30.30
    3. C32.32
    4. D34.34

    Answer: (B) 30.30

    Explanation

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  5. Question 5

    For Company E, if the expenditure had increased by 20% in the year 2021 from the year 2020 and the company had earned a profit of 10% in 2020, then the company's income (in million Rs.) in 2020 was

    CompanyIncome (million Rs.)Expenditure (million Rs.)
    A3545
    B5040
    C4045
    D4030
    E5045

    The table shows the income and expenditure of five companies A-E in 2021. Profit/Loss % = [(Income - Expenditure) / Expenditure] x 100.

    1. A37.25
    2. B38.50
    3. C41.25
    4. D42.75

    Answer: (C) 41.25

    Explanation

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  6. Question 6

    Given below are two statements:

    Statement I: SWAYAM is a program initiated by Government of India and designed to achieve the six cardinal principles of education policy.
    Statement II: SWAYAM has been developed cooperatively by Ministry of Human Resource Development (now Ministry of Education) and All India Council for Technical Education with the help of Infosys.

    In light of the above statements, choose the correct answer from the options given below:

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

    Answer: (B) Both Statement I and Statement II are false.

    Explanation

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  7. Question 7

    Which of the following is said to occur without reinforcement of particular responses and seems to involve changes in the ways information is processed?

    1. APassive learning
    2. BLatent learning
    3. CActive learning
    4. DInsight learning

    Answer: (B) Latent learning

    Explanation

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  8. Question 8

    According to Brown and Ciuffetelli Parker, which of the following are the elements of cooperative learning?

    A. Individual Accountability
    B. Demonstration
    C. Brainstorming
    D. Group processing
    E. Social skills

    Choose the correct answer from the options given below:

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

    Answer: (C) A, D and E only

    Explanation

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  9. Question 9

    Given below are two statements:

    Statement I: Good teaching is formal in nature.
    Statement II: There is no difference between teaching and training.

    In light of the above statements, choose the most appropriate answer from the options given below:

    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: (B) Both Statement I and Statement II are incorrect.

    Explanation

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  10. Question 10

    A conceptual hypothesis is drawn from the implications of a

    1. APrediction
    2. BTheory
    3. CSpurious relation
    4. DTime-order

    Answer: (B) Theory

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  11. Question 11

    In inductive approach theory is generated out of

    1. ASimple observation
    2. BResearch done
    3. CField notes
    4. DAnother theory

    Answer: (B) Research done

    Explanation

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  12. Question 12

    When a sampled individual is observed over a pre-determined period of time in structured observation, it is called

    1. AFocus sampling
    2. BObserved sampling
    3. CRandom sampling
    4. DPurposive sampling

    Answer: (A) Focus sampling

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  13. Question 13

    In ethnographic research, the researcher involves himself in a ______ over a period of time.

    1. Aphilosophical discourse
    2. Bpolitical campaign
    3. Cfinancial transaction
    4. Dsocial setting

    Answer: (D) social setting

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  14. Question 14

    Given below are two statements:

    Statement I: The double blind procedure is an effective solution to the issue of experimenter bias in research.
    Statement II: The problem of experimenter bias can also be solved by non-verbal cuing of the participants.

    In light of the above statements, choose the correct answer from the options given below:

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

    Answer: (C) Statement I is true but Statement II is false.

    Explanation

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  15. Question 15

    The arrival of interactive communication technologies has been described as

    1. AThe first media age
    2. BThe second media age
    3. CPost-media age
    4. DPost-technology age

    Answer: (B) The second media age

    Explanation

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  16. Question 16

    One of the features of broadcast communication is that it is

    1. AStatic for the audience
    2. BHidden from the audience
    3. CHigh-brow for the audience
    4. DLive for the audience

    Answer: (D) Live for the audience

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  17. Question 17

    A cool medium has the features of:

    A. High definition
    B. High participation
    C. It provides small amount of information
    D. Tends not to be supplemented by hot media
    E. Supplanted by hot media

    Choose the correct answer from the options given below:

    1. AA, B and C only
    2. BC and D only
    3. CB, C and E only
    4. DB, D and E only

    Answer: (C) B, C and E only

    Explanation

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  18. Question 18

    Which of the following directly affect or influence the listening skills of the students?

    A. Student protocol
    B. Administrative interest
    C. Speed of the speech
    D. Timing of the speech
    E. The regional accent

    Choose the correct answer from the options given below:

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

    Answer: (C) C, D and E only

    Explanation

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  19. Question 19

    Given below are two statements:

    Statement I: The power elites by controlling the communication media extend their hegemonic rule further is a statement of myth.
    Statement II: Through communication media, they always plan to win over the common publics and continue to overlord them.

    In light of the above statements, choose the correct answer from the options given below:

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

    Answer: (D) Statement I is false but Statement II is true.

    Explanation

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  20. Question 20

    A certain principal amount in 2 years at some simple interest becomes Rs. 10,000 and the same principal amount on the same rate of simple interest becomes Rs. 11,000 in 3 years. Find the principal and rate of interest.

    1. ARs. 9200 and 14%
    2. BRs. 8500 and 13.5%
    3. CRs. 9000 and 13%
    4. DRs. 8000 and 12.5%

    Answer: (D) Rs. 8000 and 12.5%

    Explanation

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  21. Question 21

    Raman said to Aman, "That boy playing football there is the younger of the two brothers of the daughter of my father's wife." How is the boy playing football related to Raman?

    1. ACousin
    2. BBrother-in-law
    3. CSon
    4. DBrother

    Answer: (D) Brother

    Explanation

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  22. Question 22

    A girl starts from a point P and walks 10 meters in the North-West direction and reaches the point Q. She then turns to her left and walks 10 meters to a point R which is directly westward to point P. She again moves towards south-east direction and goes 10 meters and reaches a point S which is directly southward to point Q. From the point S she turns towards point P and walks 10 meters. What is the shape of the geometrical figure PQRS?

    1. ARhombus
    2. BRectangle
    3. CSquare
    4. DParallelogram

    Answer: (C) Square

    Explanation

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  23. Question 23

    In a certain code language TROUBLE is written as ETLRBOU. How PROBLEM will be written in that language?

    1. AMPEROLB
    2. BMPELROB
    3. CMPERLOB
    4. DMEPLROB

    Answer: (C) MPERLOB

    Explanation

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  24. Question 24

    What number should replace question mark (?) in the series given below:

    15, 15, 22.5, 45, 112.5, 337.5, ?

    1. A1181.25
    2. B1350
    3. C1518.75
    4. D562.5

    Answer: (A) 1181.25

    Explanation

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  25. Question 25

    "Although I am very happy to win the lottery, I am also a little worried. The last time I had won a lottery, my pocket was picked the next morning." Which logical fallacy is committed in the above argument?

    1. APost hoc
    2. BHasty generalisation
    3. CRed herring
    4. DFalse alternative

    Answer: (A) Post hoc

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  26. Question 26

    Which of the following statements are logically equivalent?

    A. All aeroplanes are polluting vehicles.
    B. No polluting vehicles are aeroplanes.
    C. All non-polluting vehicles are non-aeroplanes.
    D. No aeroplanes are non-polluting vehicles.

    Choose the correct answer from the options given below:

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

    Answer: (D) A, C and D only

    Explanation

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  27. Question 27

    If the statement "All aeroplanes are polluting vehicles" is given as true, then which of the following statements can be immediately inferred to be true?

    1. ANo aeroplanes are polluting vehicles.
    2. BSome aeroplanes are polluting vehicles.
    3. CSome aeroplanes are not polluting vehicles.
    4. DNo polluting vehicles are aeroplanes.

    Answer: (B) Some aeroplanes are polluting vehicles.

    Explanation

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  28. Question 28

    Which of the following propositions are so related that they can not both be false, although they may both be true?

    A. Some cars are polluting vehicles.
    B. Some cars are not polluting vehicles.
    C. All cars are polluting vehicles.
    D. No cars are polluting vehicles.

    Choose the correct answer from the options given below:

    1. AC and D only
    2. BA and B only
    3. CB and C only
    4. DA and C only

    Answer: (B) A and B only

    Explanation

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  29. Question 29

    According to classical Indian School of logic (Nyaya), which of the following arguments involves the fallacy of ashrayasiddha?

    1. AThe sky-lotus is fragrant, because it is a lotus, like the lotus of a lake.
    2. BSound is not eternal because it is produced.
    3. CSound is eternal because it is produced.
    4. DSound is eternal because it is audible.

    Answer: (A) The sky-lotus is fragrant, because it is a lotus, like the lotus of a lake.

    Explanation

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  30. Question 30

    In ICT, which one of the following pairs of acronym and its expansion is incompatible?

    1. AISP - Internet Service Provider
    2. BURL - Uniform Resource Locator
    3. CBlog - weB LOGic
    4. DVPN - Virtual Private Network

    Answer: (C) Blog - weB LOGic

    Explanation

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  31. Question 31

    A photograph occupies 10 MB of storage. A memory stick with 4 GB capacity can store approximately ______ such photographs.

    1. A300
    2. B400
    3. C500
    4. D450

    Answer: (B) 400

    Explanation

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  32. Question 32

    Given below are two statements:

    Statement I: You can read from and write to RAM, whereas you can read from ROM but you can't write to ROM.
    Statement II: CD-RW stands for Compact Disc-ReWritable and can be written to and modified many times, whereas CD-R stands for Compact Disc-Recordable and R here indicates that the disc is recordable once only.

    In light of the above statements, choose the correct answer from the options given below:

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

    Answer: (A) Both Statement I and Statement II are true.

    Explanation

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  33. Question 33

    Using the Ribbon in MS Word software, the Word count command/feature displays the number of words as well as the number of ______ in the current document.

    A. Lines
    B. Characters
    C. Paragraph

    Choose the correct answer from the options given below:

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

    Answer: (D) A, B and C

    Explanation

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  34. Question 34

    Which of the following statements are correct?

    Most web browsers:
    A. have a HOME page.
    B. have the ability to store user's favourite websites/pages.
    C. keep a history of the websites visited by the users.
    D. give the ability to go backward and forward to websites opened.
    E. provide the user with access to Internet.

    Choose the correct answer from the options given below:

    1. AD and E only
    2. BA, C and D only
    3. CA, C and E only
    4. DA, B, C and D only

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

    Explanation

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  35. Question 35

    Wind farms are?

    1. APlaces where winds blow at a speed of more than 5 m/s.
    2. BPotential places of wind energy generation.
    3. CPlaces where winds help in good farming practices.
    4. DLarge concentrations of wind generators producing electricity.

    Answer: (D) Large concentrations of wind generators producing electricity.

    Explanation

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  36. Question 36

    Match List I with List II.

    List I: Pollution SourceList II: Category
    A. SewageI. Thermal Pollution
    B. Agricultural FertilizersII. Sediments
    C. Land ErosionIII. Oxygen demanding waste
    D. Power PlantsIV. Plant Nutrients
    1. AA - III, B - IV, C - I, D - II
    2. BA - III, B - IV, C - II, D - I
    3. CA - II, B - I, C - III, D - IV
    4. DA - II, B - I, C - IV, D - III

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

    Explanation

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  37. Question 37

    Which of the following are overwhelming evidence of climate change?

    A. In Alaska, Western Canada and Eastern Russia average temperatures have increased by over 4°C during past 50 years.
    B. Tropical regions have warmed much faster than rest of the world.
    C. Mount Kilimanjaro has lost 85% of its famous ice cap since 1915.
    D. Over the last century the average global temperature has climbed 0.6°C.

    Choose the correct answer from the options given below:

    1. AA, B and C only
    2. BA, C and D only
    3. CB, C and D only
    4. DB and C only

    Answer: (B) A, C and D only

    Explanation

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  38. Question 38

    Assertion (A): Many human activities increase both the severity and frequency of floods.

    Reason (R): Paved roads and parking lots increase water infiltration into the soil and slow down the rate of run off in streams and lakes.

    In light of the above statements, choose the correct answer from the options given below:

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

    Answer: (C) (A) is true but (R) is false.

    Explanation

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  39. Question 39

    The 'Loss and Damage' funding in the context of climate change impacts was agreed upon by the international community at

    1. ACOP 25
    2. BCOP 26
    3. CCOP 21
    4. DCOP 27

    Answer: (D) COP 27

    Explanation

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  40. Question 40

    Given below are two statements:

    Statement I: According to ancient Hindu system of Education an aspect of education which is emphasized by the upholders of education in democratic society is that education should be free as far as practicable.
    Statement II: According to ancient Hindu system of education an aspect of education which is emphasized by the upholders of education in democratic society is that education should be compulsory as far as practicable.

    In light of the above statements, choose the most appropriate answer from the options given below:

    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

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  41. Question 41

    According to NEP 2020, the first vertical of Higher Education Commission of India (HECI) will be the

    1. ANational Accreditation Council (NAC)
    2. BNational Higher Education Regulatory Council (NHERC)
    3. CGeneral Education Council (GEC)
    4. DHigher Education Grants Council (HEGC)

    Answer: (B) National Higher Education Regulatory Council (NHERC)

    Explanation

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  42. Question 42

    Given below are two statements:

    Statement I: According to National Education Policy document, the teacher must be the locus of basic reforms in the country's educational reforms.
    Statement II: Historically marginalised or the disadvantaged student sections of the society should get paid quality education irrespective of their place of residence.

    In light of the above statements, choose the correct answer from the options given below:

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

    Answer: (C) Statement I is true but Statement II is false.

    Explanation

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  43. Question 43

    Which of the following Universities threw all University examinations open to girls in 1883?

    1. AAllahabad University
    2. BBombay University
    3. CDelhi University
    4. DUniversity of Madras

    Answer: (D) University of Madras

    Explanation

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  44. Question 44

    Given below are two statements:

    Statement I: Xuan Zang visited India and became a student of Takshashila University.
    Statement II: Xuan Zang visited India and became a student of Yogashastra.

    In light of the above statements, choose the most appropriate answer from the options given below:

    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

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  45. Question 45

    The naval expedition against Malaya was sent by a

    Indian rulers, particularly the Pala and Sena rulers of Bengal, and the Pallava and Chola rulers of south India, tried to encourage the trade with China.

    The Chola ruler, Rajendra 1, sent a naval expedition against Malaya and neighbouring countries to overcome their interference in the trade with China.

    There is evidence to show that there were many shipyards in south India, Orissa and Bengal engaged in the construction of ships. Such shipyards were also located on the west coast including Gujarat. Thus, growth of India's foreign trade in the area was based on a strong naval tradition, including ship building and a strong navy, and the skill and enterprise of its traders.

    The Chinese trade was very favourable to the countries engaged in it, so much so that in the thirteenth century, the Chinese government tried to restrict the export of gold and silver from China. Indian ships gradually gave way to the Arabs and the Chinese whose ships were bigger and faster. We are told that the Chinese ships were several storeys high and carried 600 passengers apart from 400 soldiers. An important factor in the growth of the Chinese ships was the use of a primitive Mariner's compass, an invention which later travelled from China to the West.

    1. APala ruler
    2. BSena ruler
    3. CPallava ruler
    4. DChola ruler

    Answer: (D) Chola ruler

    Explanation

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  46. Question 46

    Consider these two statements:

    Statement I: Trade between India and China always occurred in the Chinese ships as these were always better than the Indian ships.
    Statement II: Malaya was located in Kerala.

    In light of these statements, choose the most appropriate answer.

    Indian rulers, particularly the Pala and Sena rulers of Bengal, and the Pallava and Chola rulers of south India, tried to encourage the trade with China.

    The Chola ruler, Rajendra 1, sent a naval expedition against Malaya and neighbouring countries to overcome their interference in the trade with China.

    There is evidence to show that there were many shipyards in south India, Orissa and Bengal engaged in the construction of ships. Such shipyards were also located on the west coast including Gujarat. Thus, growth of India's foreign trade in the area was based on a strong naval tradition, including ship building and a strong navy, and the skill and enterprise of its traders.

    The Chinese trade was very favourable to the countries engaged in it, so much so that in the thirteenth century, the Chinese government tried to restrict the export of gold and silver from China. Indian ships gradually gave way to the Arabs and the Chinese whose ships were bigger and faster. We are told that the Chinese ships were several storeys high and carried 600 passengers apart from 400 soldiers. An important factor in the growth of the Chinese ships was the use of a primitive Mariner's compass, an invention which later travelled from China to the West.

    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: (B) Both Statement I and Statement II are incorrect.

    Explanation

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  47. Question 47

    Which factors played an important role in India's trade with China?

    A. Ship building in India
    B. Strong navy
    C. Skill and enterprise of the traders

    Choose the most appropriate answer.

    Indian rulers, particularly the Pala and Sena rulers of Bengal, and the Pallava and Chola rulers of south India, tried to encourage the trade with China.

    The Chola ruler, Rajendra 1, sent a naval expedition against Malaya and neighbouring countries to overcome their interference in the trade with China.

    There is evidence to show that there were many shipyards in south India, Orissa and Bengal engaged in the construction of ships. Such shipyards were also located on the west coast including Gujarat. Thus, growth of India's foreign trade in the area was based on a strong naval tradition, including ship building and a strong navy, and the skill and enterprise of its traders.

    The Chinese trade was very favourable to the countries engaged in it, so much so that in the thirteenth century, the Chinese government tried to restrict the export of gold and silver from China. Indian ships gradually gave way to the Arabs and the Chinese whose ships were bigger and faster. We are told that the Chinese ships were several storeys high and carried 600 passengers apart from 400 soldiers. An important factor in the growth of the Chinese ships was the use of a primitive Mariner's compass, an invention which later travelled from China to the West.

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

    Answer: (D) A, B and C

    Explanation

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  48. Question 48

    Indian rulers from which regions tried to encourage trade with China?

    A. Bengal
    B. Gujarat
    C. South India

    Choose the correct answer.

    Indian rulers, particularly the Pala and Sena rulers of Bengal, and the Pallava and Chola rulers of south India, tried to encourage the trade with China.

    The Chola ruler, Rajendra 1, sent a naval expedition against Malaya and neighbouring countries to overcome their interference in the trade with China.

    There is evidence to show that there were many shipyards in south India, Orissa and Bengal engaged in the construction of ships. Such shipyards were also located on the west coast including Gujarat. Thus, growth of India's foreign trade in the area was based on a strong naval tradition, including ship building and a strong navy, and the skill and enterprise of its traders.

    The Chinese trade was very favourable to the countries engaged in it, so much so that in the thirteenth century, the Chinese government tried to restrict the export of gold and silver from China. Indian ships gradually gave way to the Arabs and the Chinese whose ships were bigger and faster. We are told that the Chinese ships were several storeys high and carried 600 passengers apart from 400 soldiers. An important factor in the growth of the Chinese ships was the use of a primitive Mariner's compass, an invention which later travelled from China to the West.

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

    Answer: (C) A and C only

    Explanation

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  49. Question 49

    Shipyards in India were located at

    A. Bengal
    B. Orissa
    C. South India
    D. Gujarat

    Choose the most appropriate answer.

    Indian rulers, particularly the Pala and Sena rulers of Bengal, and the Pallava and Chola rulers of south India, tried to encourage the trade with China.

    The Chola ruler, Rajendra 1, sent a naval expedition against Malaya and neighbouring countries to overcome their interference in the trade with China.

    There is evidence to show that there were many shipyards in south India, Orissa and Bengal engaged in the construction of ships. Such shipyards were also located on the west coast including Gujarat. Thus, growth of India's foreign trade in the area was based on a strong naval tradition, including ship building and a strong navy, and the skill and enterprise of its traders.

    The Chinese trade was very favourable to the countries engaged in it, so much so that in the thirteenth century, the Chinese government tried to restrict the export of gold and silver from China. Indian ships gradually gave way to the Arabs and the Chinese whose ships were bigger and faster. We are told that the Chinese ships were several storeys high and carried 600 passengers apart from 400 soldiers. An important factor in the growth of the Chinese ships was the use of a primitive Mariner's compass, an invention which later travelled from China to the West.

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

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

    Explanation

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Paper 2 — Economics · Shift 1

Attempt this paper

100 questions with the answer key and explanations.

  1. Question 1

    Which of the following is not true in case of Indifference curves?

    1. AThe Indifference curves are usually convex or bowed inward.
    2. BIndifference curve for two goods that are perfect compliments is shaped as right angles.
    3. CIndifference curve for two goods that are perfect substitutes is a downward sloping straight line.
    4. DIndifference curve for two normal goods is a downward sloping straight line.

    Answer: (D) Indifference curve for two normal goods is a downward sloping straight line.

    Explanation

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  2. Question 2

    Which one of the following is not true in case of producer's equilibrium?

    1. AMP_L / MP_K = w / r
    2. BMRTS_LK = MP_L / MP_K = w / r
    3. CMP_L / w = MP_K / r
    4. DMRTS_LK = r / w

    Answer: (D) MRTS_LK = r / w

    Explanation

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  3. Question 3

    A game in which the gains or losses of one player or firm do not come at the
    expenses of or provide equal benefit to the other player or firm, is known as
    ____________.

    1. AZero - Sum game
    2. BNon - Zero Sum game
    3. CMixed game
    4. DBalanced game

    Answer: (B) Non - Zero Sum game

    Explanation

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  4. Question 4

    The condition of preferring a risky income to a certain income with the same
    expected value is refered as :

    1. ARisk averse
    2. BRisk loving
    3. CRisk neutral
    4. DRisk premium

    Answer: (B) Risk loving

    Explanation

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  5. Question 5

    ____________ arises when the firm can produce any combination of the two
    outputs more cheaply than could two independent firms that each produced a
    single output.

    1. ALearner's curve
    2. BEconomies of scale
    3. CDis - economies of scale
    4. DEconomies of scope

    Answer: (D) Economies of scope

    Explanation

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  6. Question 6

    In which oligopoly model, firms produce homogenous goods and each firm
    treats the price of its competitors as fixed and all firms decide simultaneously,
    what price to change?

    1. ABetrand model
    2. BCournot model
    3. CStackelberg model
    4. DSweezy model

    Answer: (A) Betrand model

    Explanation

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  7. Question 7

    Who wrote that "every man thus lives by exchanging or becomes in some
    measure a merchant, and the society itself grows to be what is properly a
    commercial society."

    1. AMilton Friedman
    2. BKeynes
    3. CBenjamin Olken
    4. DAdam Smith

    Answer: (D) Adam Smith

    Explanation

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  8. Question 8

    The Sticky - Price Model is

    1. AThe upward sloping short run aggregate supply curve
    2. BThe upward sloping long run aggregate supply curve
    3. CThe downward sloping short run Aggregate Demand curve
    4. DThe downward sloping long run Aggregate Demand curve

    Answer: (A) The upward sloping short run aggregate supply curve

    Explanation

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  9. Question 9

    If the demand for labour increases, then

    1. AReal wage rises
    2. BThe amount of labour employed increases
    3. CBoth 1 and 2 happen
    4. DNone of the above

    Answer: (C) Both 1 and 2 happen

    Explanation

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  10. Question 10

    Macroeconomics distinguishes between real economy and ___________

    1. AVirtual economy
    2. BMonetary economy
    3. CNormative economy
    4. DUnderground economy

    Answer: (B) Monetary economy

    Explanation

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  11. Question 11

    In accelerator theory, capital output ratio is assumed to be

    1. AIncreasing
    2. BIndependent from level of National income
    3. CDecreasing
    4. DConstant

    Answer: (D) Constant

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  12. Question 12

    Government spending is

    1. Aa second element of autonomous expenditure.
    2. Bto be controlled by policy makers.
    3. Cdoes not depend directly on the level of income.
    4. DAll of the above

    Answer: (D) All of the above

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  13. Question 13

    Find the variance of random variables which constitute the number of heads in
    a toss of two coins simultaneously.

    1. A1/2
    2. B1
    3. C2
    4. D4

    Answer: (A) 1/2

    Explanation

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  14. Question 14

    If the demand and supply functions are given Pd = 20 - 5x and Ps = 4x + 8;
    obtain Producer's surplus

    1. A31 / 9
    2. B32 / 9
    3. C129 / 9
    4. D29 / 9

    Answer: (B) 32 / 9

    Explanation

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  15. Question 15

    The demand function for Good A is given by QA = 100 - 2 PA + 0.2 Y + 0.3 PB.

    Find the cross - price elasticities of demand at PA = 6, Y = 500, PB = 10.

    1. A0.06
    2. B0.016
    3. C0.52
    4. D0.06

    Answer: (B) 0.016

    Explanation

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  16. Question 16

    Test statistics used to test stationary of a time series in the presence of
    correlated error term is

    1. ADickey - Fuller test
    2. BEngle - Granger test
    3. CError - Correction mechanism
    4. DAugmented Dickey - Fuller test

    Answer: (D) Augmented Dickey - Fuller test

    Explanation

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  17. Question 17

    In logit model as Pi goes from 0 to 1, logit L varies from

    1. A0 to + ∞
    2. B∞ to + ∞
    3. C0 to 1
    4. D∞ to 0

    Answer: (B) ∞ to + ∞

    Explanation

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  18. Question 18

    Find the Elasticity of Substitution (σ) of Constant elasticity of substitution (CES)
    Production function. When the substitution parameter(p) lies between 0 < p < ∞

    1. Aσ > 1
    2. Bσ < 1
    3. Cσ = ∞
    4. Dσ = 1

    Answer: (B) σ < 1

    Explanation

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  19. Question 19

    The regression model Yt = α1 + α2 Dt + β1Xt +β2(YtDt) + Ut is used to

    1. ADeseasonalize a time series data
    2. BAnalyze the seasonal trend in data
    3. CAnalyse structural break in data
    4. DAnalyse piecewise linear relationship in data

    Answer: (C) Analyse structural break in data

    Explanation

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  20. Question 20

    A box of nine golf gloves contains two left handed and seven right - handed
    gloves. If two gloves are randomly selected from the box without replacement,
    what is the probability that one is left - handed and the other is a right -
    handed glove?

    1. A7 / 12
    2. B2 / 9
    3. C7 / 18
    4. D1 / 9

    Answer: (C) 7 / 18

    Explanation

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  21. Question 21

    Which institution has published the Human Development Report annually since
    1990?

    1. AInternational Monetary Fund
    2. BWorld Bank
    3. CAsian Development Bank
    4. DUnited National Development Programme

    Answer: (D) United National Development Programme

    Explanation

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  22. Question 22

    Which Five year plan proposed to make India, "Self - reliant and Self generating
    economy"?

    1. AIInd Five year plan
    2. BIIIrd Five year plan
    3. CIVth Five year plan
    4. DVth Five year plan

    Answer: (B) IIIrd Five year plan

    Explanation

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  23. Question 23

    The birth of World Trade Organisation emerged from which round?

    1. AGeneva
    2. BHongKong
    3. CUruguay
    4. DTokyo

    Answer: (C) Uruguay

    Explanation

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  24. Question 24

    Total Budget Allocation in year 2022 - 23. For "Har Ghar, Nal Se Jal" in rupees is:

    1. A50,000/ - crore
    2. B80,000/ - crore
    3. C60,000/ - crore
    4. D70,000/ - crore

    Answer: (C) 60,000/ - crore

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  25. Question 25

    A toll is a tax on those citizens who use toll roads. This policy can be viewed as
    an application of

    1. AThe benefit principle
    2. BHorizontal equity
    3. CVertical equity
    4. DTax progressivity

    Answer: (A) The benefit principle

    Explanation

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  26. Question 26

    Which of the following formulae is used to measure the tax mutiplier:

    1. A−MPC 1−MPC
    2. B1 1−MPC
    3. C1−MPC MPC
    4. D2−MPC MPC

    Answer: (A) −MPC 1−MPC

    Explanation

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  27. Question 27

    The Free-rider problem arises :

    1. Awhen goods are congestible.
    2. Bwhen goods are of a rival nature.
    3. Cwhen number of beneficiaries is large and exclusion of any one of them is impossible.
    4. Dwhen goods are available freely but on a first cum first serve basis till stocks last.

    Answer: (C) when number of beneficiaries is large and exclusion of any one of them is impossible.

    Explanation

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  28. Question 28

    The money supply in the IS - LM model is assumed to be

    1. AReal narrow money
    2. BNominal money supply
    3. CNominal Broad money
    4. DReal money supply

    Answer: (D) Real money supply

    Explanation

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  29. Question 29

    Which of the following two economists are associated with the problem of time
    inconsistency?

    1. AJ. M. Keynes and Joan Robinson
    2. BKydland and Prescott
    3. CBaumol and Tobin
    4. DFriedman and Scwartz

    Answer: (B) Kydland and Prescott

    Explanation

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  30. Question 30

    The Value - Trade ratio captures trading relative to the size of the

    1. Aeconomy
    2. Bmarket
    3. Cmarket and economy
    4. Dnone of these

    Answer: (A) economy

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  31. Question 31

    "Under-developed countries are the slums of the world economy", is a
    statement given by

    1. AKeynes
    2. BG. Myrdal
    3. CAdam Smith
    4. DCairncross

    Answer: (D) Cairncross

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  32. Question 32

    The greater the divergence between the shadow price and the market price :

    1. Athe greater the need for social cost-benefit analysis in public investment decisions.
    2. Bthe lesser the need for social cost-benefit analysis in public investment decisions.
    3. Cthen there will be no social benefit in public investments.
    4. Dthen the social cost will be minimum.

    Answer: (A) the greater the need for social cost-benefit analysis in public investment decisions.

    Explanation

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  33. Question 33

    Which one of the following author-book pairs is NOT correctly matched?

    AuthorBook
    1. Simon KuznetsAsian Drama
    2. RobinsonEssays on the Theory of Economic Growth
    3. Karl MarxDas Capital
    4. Arthur W. LewisTheory of Economic Growth
    1. A1
    2. B2
    3. C3
    4. D4

    Answer: (A) 1

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  34. Question 34

    Which of the following is not true about the basic postulates of the Malthusian
    Perspective on population?

    1. AThe human population will invariably grow where the means of subsistence increase
    2. BThe total amount of land available for agriculture is immutably fixed
    3. CFactor substitutions and technological advances can alleviate resource scarcities
    4. DThe growth of population is limited by the amount of food available for subsistence

    Answer: (A) The human population will invariably grow where the means of subsistence increase

    Explanation

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  35. Question 35

    Which of the following criterion is used to judge the performance of
    instruments for environmental policy?

    1. AEnsuring that for each firm, the marginal abatement cost is equal to the marginal damage from pollution
    2. BAchieving equality of marginal abatement costs across polluters
    3. CMinimising the total cost of the externality to the society
    4. DAll of the above

    Answer: (D) All of the above

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  36. Question 36

    Which of the following is true in the case of externality?

    1. AIt is not related to human interactions
    2. BIt is not tied to consumer sovereignty
    3. CIt is based on higher order judgements of right and wrong
    4. DIt is an amoral concept

    Answer: (C) It is based on higher order judgements of right and wrong

    Explanation

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  37. Question 37

    What does the case of 'Immiserising growth' state?

    1. AGrowth in richer nations would actually be self defeating
    2. BGrowth in poorer nations would actually be self defeating
    3. CGrowth in poorer nations would actually be self promoting
    4. DGrowth in richer nations would actually be self promoting

    Answer: (B) Growth in poorer nations would actually be self defeating

    Explanation

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  38. Question 38

    In which stage of the product cycle model, the imitating country starts under
    selling the innovating country in third markets?

    1. AStage - V
    2. BStage - II
    3. CStage - III
    4. DStage - IV

    Answer: (C) Stage - III

    Explanation

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  39. Question 39

    If the nominal tariff rate (t) on consumers of the final commodity is 10 percent;
    the ratio of the cost of the imported input to the price of the final commodity in
    the absence of tariffs ai = 0.8; and the nominal tariff rate on the imported input
    ti = 20%, then find the rate of effective protection.

    1. A10%
    2. B8%
    3. C3%
    4. D-30%

    Answer: (D) -30%

    Explanation

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  40. Question 40

    The level of intra-industry index (T) can be measured as:

    ∣X−M ∣

    1. AT = 1 − X+M
    2. BT = 1 + ∣X−M X+M ∣
    3. CT = 1 − ∣X+M X−M ∣
    4. DT = 1 − ∣X−M ∣ ∣X+M ∣

    Answer: (A) T = 1 − X+M

    Explanation

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  41. Question 41

    Nash equilibrium represents

    A. The outcome each time the game is played

    B. Long - run equilibrium

    C. A situation in which one player will not deviate, given the strategy of other
    player

    D. Best response of the first mover

    E. The pair of dominated strategies

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

    Answer: (C) B and C only

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  42. Question 42

    Which of the following are correct about loanable fund theory?

    A. Dishoarding is a major source of supply of loanable funds.

    B. Demand for hoarding is inversely related to the interest rate.

    C. Equality between demand and supply of loanable funds is the only condition
    required for a stable equilibrium.

    D. Wicksell was one of the propounders of the theory.

    E. It introduced monetary factors into the theory of interest.

    1. AA, B and D only
    2. BC, D and E only
    3. CB, D and E only
    4. DA, D and E only

    Answer: (C) B, D and E only

    Explanation

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  43. Question 43

    Which of the following are correct assumptions of Arrow's conditions of Social
    Welfare?

    A. Responsiveness to individual preferences

    B. Impositions

    C. Dictatorship

    D. Transitivity or consistency

    E. Independent of irrelevant alternatives

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

    Answer: (A) A, B and D only

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  44. Question 44

    The consequences of a country having a persistent current account surplus
    include

    A. Employment generation

    B. Higher standard of living

    C. Low inflation pressure

    D. Currency appreciates in value

    E. More pressure on public debt

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

    Answer: (B) A, B and D only

    Explanation

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  45. Question 45

    For the computation of National income by the product method, which of the
    following sectors are considered:

    A. Registered manufacturing

    B. Agricultural and allied activities

    C. Mining and quarrying

    D. Unregistered manufacturing

    E. Non - monetised activities

    1. AA, B and C only
    2. BB and C only
    3. CA, B, C and D only
    4. DB, C and D only

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

    Explanation

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  46. Question 46

    Which of the following statements are correct?

    A. According to the accelerator model, investment demand is proportional to
    the change in GDP.

    B. The real rate of interest is the nominal rate of interest plus the inflation rate.

    C. The higher the real interest rate, the higher is the rental cost of capital.

    D. Investment is a stock concept.

    E. Residential investment is low when mortgage interest rates are high.

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

    Answer: (B) A, C and E only

    Explanation

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  47. Question 47

    The properties of mathematical expectation are:
    a. The expectation of a constant C equals C.
    b. If X and Y are random variables, then E of X plus Y equals E of X plus E of Y.
    c. Variance of X plus or minus a constant C equals variance of X.
    d. If X and Y are independent random variables, then E of XY equals E of X multiplied by E of Y.
    e. Variance of aX equals a times variance of X, where a is constant.

    1. AA, B and D only
    2. BB, D and E only
    3. CB, C and D only
    4. DB, C and E only

    Answer: (C) B, C and D only

    Explanation

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  48. Question 48

    Which of the following are correct are OLS estimation in the presence of
    autocorrelation?

    A. The estimated coefficients are linear

    B. The estimated coefficients are unbiased

    C. The estimated coefficients are biased

    D. The estimated coefficients are consistent

    E. The estimated coefficients are efficient

    1. AA, C and D only
    2. BA, B and D only
    3. CA, C and E only
    4. DC, D and E only

    Answer: (B) A, B and D only

    Explanation

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  49. Question 49

    Which of the following are correct in case of area under the standard normal
    probability curve.

    A. Distance from the mean ordinates in terms of ± σ at Z = ± 0.6745 is 0.55

    B. Distance from the mean ordinates in terms of ± σ at Z = ± 1.96 is 0.95

    C. Distance from the mean ordinates in terms of ± σ at Z = ± 2.0 is 0.9544

    D. Distance from the mean ordinates in terms of ± σ at Z = ± 2.58 is 0.98

    E. Distance from the mean ordinates in terms of ± σ at Z = ± 3.0 is 0.9973

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

    Answer: (B) B, C and E only

    Explanation

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  50. Question 50

    Which of the following satisfy the assumptions of the classical linear regression
    model?

    A. The regression model is linear in the parameters

    B. Zero mean value of disturbance Ui

    C. The variance of Ui is not constant

    D. There is a serial autocorrelation between the disturbance terms

    E. The number of observations must be greater than the number of parameters
    to be estimated

    1. AB, C and E only
    2. BA, B and E only
    3. CB, D and E only
    4. DA, C and D only

    Answer: (B) A, B and E only

    Explanation

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  51. Question 51

    If A, B and C are three different non-empty sets, which of the following laws of set operation are correct?
    a. A intersection Ø equals Ø.
    b. A intersection the union of B and C equals the union of A intersection B and A intersection C.
    c. A intersection A complement equals Ø.
    d. B minus A equals B complement intersection A complement.
    e. The complement of A union B equals A complement union B complement.

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

    Answer: (D) A, B and C only

    Explanation

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  52. Question 52

    Which among the following are main components of PM e - Vidya:

    A. One Nation, One Digital Education.

    B. Infrastructure and Electronic Governance.

    C. One Class, One T.V. Channel.

    D. Extensive use of radio, Community radio and Podcasts.

    E. Information and Communication Technology.

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

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

    Explanation

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  53. Question 53

    Which of the followings are the alternative estimates of poverty in India?

    A. Dandekar and Rath Estimate

    B. O.P Chopra Estimate

    C. P. D. Ojha Estimate

    D. B. S. Minhas Estimate

    E. D. K. Rangnekar Estimate

    1. AA, B and C only
    2. BB, C and E only
    3. CA, C and D only
    4. DC, D and E only

    Answer: (A) A, B and C only

    Explanation

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  54. Question 54

    Which of the following objectives are correct for the Public Sector?

    A. To create employment opportunities

    B. To promote balanced regional growth

    C. To promote agriculture growth

    D. To promote rapid economic development

    E. To promote the banking sector of the economy

    Choose the correct answer from the option given below:

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

    Answer: (A) A, B and D only

    Explanation

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  55. Question 55

    Which of the following are required for a good tax system?

    A. Revenue yield should be adequate.

    B. Tax system should be so that different income groups of people pay tax
    equally.

    C. Administrative and compliance cost of tax should be as minimum as
    possible.

    D. Tax system should not permit scope for tax leakage and tax evasion.

    E. Tax should be chosen to maximise interference with market efficiency.

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

    Answer: (C) A, C and D only

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  56. Question 56

    Federal transfers to states are required mainly:

    A. to offset unequal assignment of resources and responsibilities between
    Federal Government and State Government.

    B. to correct spillovers of benefits of public goods between jurisdictions.

    C. to address horizontal fiscal imbalances.

    D. to augment resources of local bodies.

    E. for overall efficiency of tax system.

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

    Answer: (B) A, C and D only

    Explanation

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  57. Question 57

    Which of the following are expansionary monetary policy measures to cure
    deflation?

    A. The Central bank buys government securities from commercial banks and
    public.

    B. The Central bank may hike the bank rate.

    C. The Central bank may increase the cash reserve ratio.

    D. The Central bank may reduce the cash reserve ratio.

    E. The Central bank may lower the bank rate.

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

    Answer: (D) A, D and E only

    Explanation

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  58. Question 58

    The main features of Treasury bills are that:

    A. they are issued at a discount and are repaid at par on maturity.

    B. they have low liquidity on account of their short tenure.

    C. there is no default risk.

    D. they offer an assured yield.

    E. they have a high transaction cost.

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

    Answer: (B) A, C and D only

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  59. Question 59

    Which of the following are correct for the probability of two independent events A and B?
    a. Probability of A given B equals probability of A.
    b. Probability of A given B equals probability of B.
    c. Probability of A intersection B equals probability of A multiplied by probability of B.
    d. Probability of both A complement and B complement equals probability of A complement multiplied by probability of B complement.
    e. Probability of A and B complement equals probability of A complement multiplied by probability of B.

    1. AB, C and E only
    2. BA, C and D only
    3. CB, C and D only
    4. DA, C and E only

    Answer: (B) A, C and D only

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  60. Question 60

    Harrod - Domar classification of growth includes, which of the following?

    A. Natural growth rate

    B. Desired growth rate

    C. Warranted growth rate

    D. Possible growth rate

    E. Population growth rate

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

    Answer: (B) B and C only

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  61. Question 61

    Which of the following are true for an oligopolistic market?

    A. The demand curve of oligopolistic market is indeterminate.

    B. There is a possibility of only two sellers.

    C. The product may be homogenous or differentiated.

    D. There is free entry into and free exit out of the market.

    E. There is an importance of advertisment cost.

    1. AA, B, C and D only
    2. BB, C and D only
    3. CA, B, C and E only
    4. DB, C, D and E only

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

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  62. Question 62

    Which of the following trends conform to the population projections for India
    based on the Census of India 2011, as carried out by the Technical Group on
    Population Projections under the aegis of National Commission on Population.

    A. The infant mortality rate is expected to decline in all states during 2011 -
    2035.

    B. The average age of Indians is expected to be higher in 2036 compared to
    2011.

    C. The crude birth rate is expected to increase due to increasing level of total
    fertility.

    D. The crude death rate is expected to decrease owing to the changing age
    structure of the population.

    E. As per the projected sex ratio, the population in 2036 is expected to be more
    feminine compared to the population in 2011.

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

    Answer: (B) A, B and E only

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  63. Question 63

    Consider a competitive polluting industry with identical firms and free entry. If
    the regulator sets an emission cap for each firm equal to the socially optimal
    long run level per firm, which of the following will characterize the long run
    impact of such an environmental policy on this competitive industry?

    A. The industry size will be larger than the social optimum.

    B. The output produced by each firm will be less than socially optimal.

    C. The industry size will be smaller than the social optimum.

    D. The output produced by each firm will be larger than socially optimal.

    E. Total output and total pollution are greater than the social optimum.

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

    Answer: (D) A, B and E only

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  64. Question 64

    Which of the following are the members of SAARC countries?

    A. India

    B. Pakistan

    C. Sri Lanka

    D. Afghanistan

    E. China

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

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

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  65. Question 65

    Which of the following forms the credit side of the Balance of Payments?

    A. Unilateral transfer recieved

    B. Capital transfer recieved

    C. Income Payments (Import of factor services)

    D. Exports of factor services

    E. Merchandise imports

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

    Answer: (D) A, B and D only

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  66. Question 66

    Match List-I with List-II.

    List-IList-II
    A. Extra risk that an investor must incur to enjoy a higher expected return.I. Risky Asset
    B. Tendency of individuals to value an item more when they own it than when they do not.II. Moral Hazard
    C. Provides an uncertain flow of money or services to its owner.III. Price of Risk
    D. When a party whose actions are unobserved can affect the probability of payment associated with an event.IV. Endowment effect
    1. AA - I, B - IV, C - III, D - II
    2. BA - III, B - IV, C - I, D - II
    3. CA - III, B - IV, C - II, D - I
    4. DA - I, B - II, C - III, D - IV

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

    Explanation

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  67. Question 67

    Match List-I with List-II.

    List-IList-II
    A. A. W. PhillipsI. Trade off between wage and unemployment
    B. Findley ShirazII. Money illusion
    C. ModiglianiIII. Life cycle hypothesis
    D. PigouIV. Taxable capacity
    1. AA - II, B - I, C - III, D - IV
    2. BA - I, B - IV, C - III, D - II
    3. CA - I, B - II, C - III, D - IV
    4. DA - III, B - IV, C - I, D - II

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

    Explanation

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  68. Question 68

    Match List-I with List-II.

    List-IList-II
    A. Censored regression modelI. Probit model
    B. Normit modelII. Marc Nerlove
    C. Distributed-lags modelIII. Tobit model
    D. Partial adjustment modelIV. L. M. Koyck
    1. AA - I, B - III, C - II, D - IV
    2. BA - III, B - I, C - IV, D - II
    3. CA - III, B - IV, C - I, D - II
    4. DA - IV, B - III, C - I, D - II

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

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  69. Question 69

    Match List-I with List-II.

    List-I: Two-variable linear regression modelList-II: Elasticity
    A. Y = beta1 + beta2XI. beta2X / Y
    B. ln Y = beta1 + beta2XII. beta2
    C. Y = beta1 + beta2 ln XIII. beta2(X / Y)
    D. ln Y = beta1 + beta2 ln XIV. beta2(1 / Y)
    1. AA - III, B - IV, C - I, D - II
    2. BA - III, B - I, C - IV, D - II
    3. CA - II, B - I, C - III, D - IV
    4. DA - II, B - III, C - IV, D - I

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

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  70. Question 70

    Match List-I with List-II.

    List-IList-II
    A. GATS, Mode-1I. Cross-border trade
    B. GATS, Mode-2II. Commercial presence
    C. GATS, Mode-3III. Temporary movement of natural persons
    D. GATS, Mode-4IV. Consumption abroad
    1. AA - I, B - IV, C - III, D - II
    2. BA - I, B - IV, C - II, D - III
    3. CA - I, B - II, C - IV, D - III
    4. DA - I, B - II, C - III, D - IV

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

    Explanation

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  71. Question 71

    Match List-I with List-II.

    List-IList-II
    A. Functional financeI. Peacock and Wiseman
    B. Displacement effectII. Keynes and Lerner
    C. Law of increasing state activityIII. Wagner
    D. Allocative, stabilization and distributive function of stateIV. Musgrave
    1. AA - II, B - I, C - III, D - IV
    2. BA - IV, B - I, C - III, D - II
    3. CA - II, B - III, C - I, D - IV
    4. DA - I, B - II, C - IV, D - III

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

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  72. Question 72

    Match List-I with List-II.

    List-IList-II
    A. Establishment of a clearing house for settlement of transactions in BSEI. 1994
    B. Serial bomb blasts in BSEII. 1997
    C. Screen-based trading commenced in BSEIII. 1921
    D. BSE launched the first stock index with 30 scripsIV. 1986
    1. AA - I, B - III, C - II, D - IV
    2. BA - III, B - II, C - IV, D - I
    3. CA - III, B - I, C - II, D - IV
    4. DA - II, B - I, C - III, D - IV

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

    Explanation

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  73. Question 73

    Match List-I with List-II.

    List-IList-II
    A. SCP approachI. James Buchanan
    B. Transaction cost theoryII. New classical theory
    C. Public choice theoryIII. H. H. Index
    D. Industrial connectionIV. Williamson
    1. AA - III, B - IV, C - I, D - II
    2. BA - III, B - IV, C - II, D - I
    3. CA - I, B - III, C - IV, D - II
    4. DA - IV, B - II, C - I, D - III

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

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  74. Question 74

    Match List-I with List-II.

    Conference of the Parties (COP) - UNFCCCLocation
    A. COP-15I. Bali, Indonesia
    B. COP-21II. Sharm el-Sheikh, Egypt
    C. COP-13III. Copenhagen, Denmark
    D. COP-27IV. Paris, France
    1. AA - IV, B - I, C - II, D - III
    2. BA - III, B - IV, C - I, D - II
    3. CA - III, B - I, C - II, D - IV
    4. DA - IV, B - III, C - I, D - II

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

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  75. Question 75

    Match List-I with List-II.

    List-IList-II
    A. Santa CruzI. West Bengal
    B. KandlaII. Andhra Pradesh
    C. FaltaIII. Gujarat
    D. VishakhapatnamIV. Maharashtra
    1. AA - I, B - II, C - IV, D - III
    2. BA - IV, B - III, C - I, D - II
    3. CA - II, B - IV, C - III, D - I
    4. DA - III, B - I, C - II, D - IV

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

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  76. Question 76

    Arrange the percentage share of nominal GVA(RE), 2019 - 20 for the following
    sectors in descending order

    A. Agriculture and Allied

    B. Manufacturing

    C. Construction

    D. Finance, Real estate and Professional services

    E. Mining and Quarrying

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

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

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  77. Question 77

    Arrange the books in ascending order based on their year of publication

    A. An Inquiry Into the Nature and Causes of Wealth of Nations

    B. The Theory of Moral Sentiments

    C. Capitalism, Socialism and Democracy

    D. The Great Transformation: The Political and Economic Origin of Our Time

    E. The Affluent Society

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

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

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  78. Question 78

    Arrange the following in descending order on the basis of the year of WTO
    Ministerial Conferences held.

    A. Cancun, Mexico Conference.

    B. Nairobi, Kenya Conference.

    C. Bali, Indonesia Conference.

    D. Buenos Aires, Argentina Conference.

    E. Seattle, United States Conference.

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

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

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  79. Question 79

    Arrange the following stages of the Budget in the correct sequence.

    A. Appropriation Bill.

    B. General Discussion.

    C. Finance Bill.

    D. Presentation to the Legislative Assembly.

    E. Voting on the Demand for Grants.

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

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

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  80. Question 80

    Indicate the chronological sequence of the following in terms of their
    implementation in India.

    A. Service Tax

    B. Expenditure Tax

    C. State VAT

    D. Income Tax

    E. Goods and Services Tax (GST)

    1. AB, D, C, A, E
    2. BD, B, C, A, E
    3. CD, B, A, C, E
    4. DB, A, D, C, E

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

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  81. Question 81

    According to the CMIE data (September, 2022) arrange the states in ascending
    order based on their unemployment rate.

    A. Madhya Pradesh

    B. Gujarat

    C. Chhattisgarh

    D. Assam

    E. Uttarakhand

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

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

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  82. Question 82

    Arrange the rates in descending order based on 'Reserve Bank of India' data,
    December 2022.

    A. Cash Reserve Ratio

    B. Repo rate

    C. Bank rate

    D. Reverse Repo rate

    E. Standing Deposit Facility rate

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

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

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  83. Question 83

    Arrange the followings chronologically in order of their introduction.

    A. Ad hoc Treasury bills (T - bills)

    B. 28 Days T - bills

    C. 14 Days T - bills

    D. 364 Days T - bills

    E. 182 Days T - bills

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

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

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  84. Question 84

    Arrange the following in chronological order starting from the oldest relating to
    the theory of money.

    A. Patinkin

    B. Fisher

    C. Friedman

    D. Marshall

    E. Keynes

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

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

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  85. Question 85

    Arrange the trading groups as per their year of establishment starting from the
    oldest

    A. European Free Trade Association

    B. North American Free Trade Agreement

    C. Asia Pacific Economic Cooperation

    D. Andean Community

    E. Association of South - East Asian Nations

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

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

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  86. Question 86

    Given below are two statements:

    Statement I: Every point on the Contract curve is Pareto efficient because one
    person could not be made better off without making someone else worse off.

    Statement II: Every point on the Contract curve neccessarily indicates equal
    level of economic welfare for the society.

    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.

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  87. Question 87

    Given below are two statements:

    Statement I: A rising ratio of interest payments to GNP imposes a burden
    because taxation is needed to finance the interest payment and imposes a
    dead weight loss.

    Statement II: A rising rate of interest payment in the budget tends to crowd out
    other public programs.

    s, choose the correct answer from the options given below:

    1. ABoth Statement I and Statement II are true.
    2. BBoth Statement I and Statement II are false.
    3. CStatement I is true but Statement |l is false.
    4. DStatement I is false but Statement II is true.

    Answer: (A) Both Statement I and Statement II are true.

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  88. Question 88

    Assertion (A): The low income countries are far more likely to borrow money to
    finance their public sector expenditure.

    Reason (R): Governments need not repay their loans, along with interest
    payment.

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

    Answer: (C) (A) is true but (R) is false.

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  89. Question 89

    Assertion (A): Partisan theory views macroeconomic policy outcomes as the
    result of ideologically motivated decisions by leaders of different political
    parties.

    Reason (R): The parties represent constitutencies with different preferences
    concerning macroeconomic variables.

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

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

    Explanation

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  90. Question 90

    Given below are two statements:

    Statement I: Supply side policies are long term measures to increase the
    productive capacity of the economy leading to an outward shift in the
    production possibility curve.

    Statement II: Privatisation is the act of selling state owned assets in order to
    increase competition, productivity and efficiency.

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

    Answer: (A) Both Statement I and Statement II are true.

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  91. Question 91

    Correctly state the hypothesis of Pagano and Rossi with regard to the crash of the knowledge economy.

    U. Pagano and M. A. Rossi (2009) advanced the hypothesis that the crash of the knowledge economy is due to intellectual monopolies, that is, the strong protection inherent in Intellectual Property Rights (IPRs). They argue that institutions facilitating IPRs contributed to the crash. According to them, IPRs have acted as super-tariffs by raising the cost of investment for countries that had neither abundant cheap labour nor large stocks of IPR resources. IPRs may also exert negative effects even on IP-rich firms because conflicting rights can affect one another's investment and create a savings glut. The authors therefore suggest that remedies should not focus only on monetary policy, financial regulation, or standard Keynesian policies. Regulation should also reduce the level of intellectual monopolisation of the economy. Measures that restore the balance between public and private knowledge can have strong short-run super-multiplicative effects and long-run benefits.

    1. AThe root cause of the crash of knowledge economy is globalization, especially privatization.
    2. BThe root cause of the crash of knowledge economy is the poverty and inequality in the less developed countries.
    3. CThe root cause of the crash of the knowledge economy is the intellectual monopolies, i.e. the huge protection inherent to Intellectual Property Rights.
    4. DThe root cause of the crash of the knowledge economy is the promotion of ample digitalization in the world.

    Answer: (C) The root cause of the crash of the knowledge economy is the intellectual monopolies, i.e. the huge protection inherent to Intellectual Property Rights.

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  92. Question 92

    According to Pagano and Rossi, which institutions are responsible for the crash of the knowledge economy?

    U. Pagano and M. A. Rossi (2009) advanced the hypothesis that the crash of the knowledge economy is due to intellectual monopolies, that is, the strong protection inherent in Intellectual Property Rights (IPRs). They argue that institutions facilitating IPRs contributed to the crash. According to them, IPRs have acted as super-tariffs by raising the cost of investment for countries that had neither abundant cheap labour nor large stocks of IPR resources. IPRs may also exert negative effects even on IP-rich firms because conflicting rights can affect one another's investment and create a savings glut. The authors therefore suggest that remedies should not focus only on monetary policy, financial regulation, or standard Keynesian policies. Regulation should also reduce the level of intellectual monopolisation of the economy. Measures that restore the balance between public and private knowledge can have strong short-run super-multiplicative effects and long-run benefits.

    1. AThe person / organisations who file the patent for protection of IPRs.
    2. BThe institutions which are facilitating IPRs.
    3. CThe person/organisation who are opposing to the IPRs.
    4. DThe sluggishness of the technological progress in the world.

    Answer: (B) The institutions which are facilitating IPRs.

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  93. Question 93

    How have IPRs acted as super-tariffs?

    U. Pagano and M. A. Rossi (2009) advanced the hypothesis that the crash of the knowledge economy is due to intellectual monopolies, that is, the strong protection inherent in Intellectual Property Rights (IPRs). They argue that institutions facilitating IPRs contributed to the crash. According to them, IPRs have acted as super-tariffs by raising the cost of investment for countries that had neither abundant cheap labour nor large stocks of IPR resources. IPRs may also exert negative effects even on IP-rich firms because conflicting rights can affect one another's investment and create a savings glut. The authors therefore suggest that remedies should not focus only on monetary policy, financial regulation, or standard Keynesian policies. Regulation should also reduce the level of intellectual monopolisation of the economy. Measures that restore the balance between public and private knowledge can have strong short-run super-multiplicative effects and long-run benefits.

    1. AThere is a large scale reduction in tariffs but substantial increase in some sectors, in some countries, hence it is considered as a super tariff.
    2. BAfter the Uruguay Round, the tariff rate has declined multiple times and that boosts economic growth, hence it is considered as a super tariff.
    3. CThe reduction in tariff has benefited the developed countries, hence it is called a super tariff.
    4. DThe IPRs have raised the cost of investments for countries that had neither abundant cheap labour nor high amount of IPR resources, hence it acted as a super tariff.

    Answer: (D) The IPRs have raised the cost of investments for countries that had neither abundant cheap labour nor high amount of IPR resources, hence it acted as a super tariff.

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  94. Question 94

    How are IPRs responsible for a savings glut?

    U. Pagano and M. A. Rossi (2009) advanced the hypothesis that the crash of the knowledge economy is due to intellectual monopolies, that is, the strong protection inherent in Intellectual Property Rights (IPRs). They argue that institutions facilitating IPRs contributed to the crash. According to them, IPRs have acted as super-tariffs by raising the cost of investment for countries that had neither abundant cheap labour nor large stocks of IPR resources. IPRs may also exert negative effects even on IP-rich firms because conflicting rights can affect one another's investment and create a savings glut. The authors therefore suggest that remedies should not focus only on monetary policy, financial regulation, or standard Keynesian policies. Regulation should also reduce the level of intellectual monopolisation of the economy. Measures that restore the balance between public and private knowledge can have strong short-run super-multiplicative effects and long-run benefits.

    1. AIPR has lead to economic growth, which has led to a savings glut.
    2. BThe aggregate demand has fallen substantially and that has led to the savings glut.
    3. CThe IPRs have given rise to conflicting rights for different firms, which has affected the volume of investment negatively and resulted in a situation of a savings glut.
    4. DThe IPRs have led to poverty and that has led to a savings glut.

    Answer: (C) The IPRs have given rise to conflicting rights for different firms, which has affected the volume of investment negatively and resulted in a situation of a savings glut.

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  95. Question 95

    What remedies do the authors suggest for the knowledge economy to recover from the crisis?

    U. Pagano and M. A. Rossi (2009) advanced the hypothesis that the crash of the knowledge economy is due to intellectual monopolies, that is, the strong protection inherent in Intellectual Property Rights (IPRs). They argue that institutions facilitating IPRs contributed to the crash. According to them, IPRs have acted as super-tariffs by raising the cost of investment for countries that had neither abundant cheap labour nor large stocks of IPR resources. IPRs may also exert negative effects even on IP-rich firms because conflicting rights can affect one another's investment and create a savings glut. The authors therefore suggest that remedies should not focus only on monetary policy, financial regulation, or standard Keynesian policies. Regulation should also reduce the level of intellectual monopolisation of the economy. Measures that restore the balance between public and private knowledge can have strong short-run super-multiplicative effects and long-run benefits.

    1. AThe author have suggested standard Keynesian policies to recover from the crisis of the knowledge economy.
    2. BThe authors have suggested monetary policy to recover from the crisis of the knowledge economy.
    3. CThe authors have suggested financial regulations to recover the crisis of the knowledge economy.
    4. DThe recovery of the knowledge economy from the crisis can be achieved through the regulations, which can decrease the level of intellectual monopolisation (IPRS) in the economy.

    Answer: (D) The recovery of the knowledge economy from the crisis can be achieved through the regulations, which can decrease the level of intellectual monopolisation (IPRS) in the economy.

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  96. Question 96

    Which of the following is not relevant as a climate-related risk for the financial sector?

    Globally, the understanding of the systemic impacts of climate change on economic and financial systems is still evolving. Climate-related risks affect the financial sector through two broad channels: physical risks and transition risks. Physical risks refer to economic and financial losses, such as risks to the value of collateral, that arise from the increasing frequency and severity of extreme weather events, gradual long-term shifts in climate, and indirect effects such as impacts on ecosystem services. Transition risks arise from adjustment towards a low-carbon economy. Their drivers include climate-mitigation policies, technological advances, and shifts in public sentiment, including the attitudes of customers and investors. To cope with such risks, the central bank needs a multi-pronged strategy emphasizing climate-related financial disclosures, stress testing, climate scenario analysis, and suitable regulatory initiatives. The Indian central bank has set up the Sustainable Finance Group in this regard, aligning with its mission to promote the economic and financial well-being of the people of India in terms of price and financial stability, fair and universal access to financial services, and a robust, dynamic, and responsive financial intermediation infrastructure.

    1. AOccurrence of local or regional weather events.
    2. BRisk to the value of collateral taken as security against loans.
    3. CInsolvency of banks.
    4. DShifting sentiments and behaviour of customers and investors.

    Answer: (C) Insolvency of banks.

    Explanation

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  97. Question 97

    Which of the following cannot be instrumental towards integrating climate risks into the financial system?

    Globally, the understanding of the systemic impacts of climate change on economic and financial systems is still evolving. Climate-related risks affect the financial sector through two broad channels: physical risks and transition risks. Physical risks refer to economic and financial losses, such as risks to the value of collateral, that arise from the increasing frequency and severity of extreme weather events, gradual long-term shifts in climate, and indirect effects such as impacts on ecosystem services. Transition risks arise from adjustment towards a low-carbon economy. Their drivers include climate-mitigation policies, technological advances, and shifts in public sentiment, including the attitudes of customers and investors. To cope with such risks, the central bank needs a multi-pronged strategy emphasizing climate-related financial disclosures, stress testing, climate scenario analysis, and suitable regulatory initiatives. The Indian central bank has set up the Sustainable Finance Group in this regard, aligning with its mission to promote the economic and financial well-being of the people of India in terms of price and financial stability, fair and universal access to financial services, and a robust, dynamic, and responsive financial intermediation infrastructure.

    1. AEnsuring access to financial services.
    2. BMaintaining price and stability.
    3. CSetting national development priorities.
    4. DStability of the financial system.

    Answer: (C) Setting national development priorities.

    Explanation

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  98. Question 98

    Which of the following does not pertain to the category of transition risk drivers with respect to climate-related risks?

    Globally, the understanding of the systemic impacts of climate change on economic and financial systems is still evolving. Climate-related risks affect the financial sector through two broad channels: physical risks and transition risks. Physical risks refer to economic and financial losses, such as risks to the value of collateral, that arise from the increasing frequency and severity of extreme weather events, gradual long-term shifts in climate, and indirect effects such as impacts on ecosystem services. Transition risks arise from adjustment towards a low-carbon economy. Their drivers include climate-mitigation policies, technological advances, and shifts in public sentiment, including the attitudes of customers and investors. To cope with such risks, the central bank needs a multi-pronged strategy emphasizing climate-related financial disclosures, stress testing, climate scenario analysis, and suitable regulatory initiatives. The Indian central bank has set up the Sustainable Finance Group in this regard, aligning with its mission to promote the economic and financial well-being of the people of India in terms of price and financial stability, fair and universal access to financial services, and a robust, dynamic, and responsive financial intermediation infrastructure.

    1. ATo act as a knowledge center for macroeconomics policy oriented research.
    2. BTo lead regulatory initiatives on climate-risk.
    3. CFacilitating core central banking function.
    4. DTo perform supervisory functions.

    Answer: (B) To lead regulatory initiatives on climate-risk.

    Explanation

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  99. Question 99

    Which of the following is not consistent with the mission of the RBI?

    Globally, the understanding of the systemic impacts of climate change on economic and financial systems is still evolving. Climate-related risks affect the financial sector through two broad channels: physical risks and transition risks. Physical risks refer to economic and financial losses, such as risks to the value of collateral, that arise from the increasing frequency and severity of extreme weather events, gradual long-term shifts in climate, and indirect effects such as impacts on ecosystem services. Transition risks arise from adjustment towards a low-carbon economy. Their drivers include climate-mitigation policies, technological advances, and shifts in public sentiment, including the attitudes of customers and investors. To cope with such risks, the central bank needs a multi-pronged strategy emphasizing climate-related financial disclosures, stress testing, climate scenario analysis, and suitable regulatory initiatives. The Indian central bank has set up the Sustainable Finance Group in this regard, aligning with its mission to promote the economic and financial well-being of the people of India in terms of price and financial stability, fair and universal access to financial services, and a robust, dynamic, and responsive financial intermediation infrastructure.

    1. AClimate-related financial disclosures
    2. BStress testing
    3. CScenario analysis
    4. DBackward-looking risk assessment methods

    Answer: (D) Backward-looking risk assessment methods

    Explanation

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  100. Question 100

    Which of the following is the purpose of setting up the Sustainable Finance Group by the RBI?

    Globally, the understanding of the systemic impacts of climate change on economic and financial systems is still evolving. Climate-related risks affect the financial sector through two broad channels: physical risks and transition risks. Physical risks refer to economic and financial losses, such as risks to the value of collateral, that arise from the increasing frequency and severity of extreme weather events, gradual long-term shifts in climate, and indirect effects such as impacts on ecosystem services. Transition risks arise from adjustment towards a low-carbon economy. Their drivers include climate-mitigation policies, technological advances, and shifts in public sentiment, including the attitudes of customers and investors. To cope with such risks, the central bank needs a multi-pronged strategy emphasizing climate-related financial disclosures, stress testing, climate scenario analysis, and suitable regulatory initiatives. The Indian central bank has set up the Sustainable Finance Group in this regard, aligning with its mission to promote the economic and financial well-being of the people of India in terms of price and financial stability, fair and universal access to financial services, and a robust, dynamic, and responsive financial intermediation infrastructure.

    1. AClimate-related mitigation policies
    2. BLoss of ecosystem services
    3. CTechnological innovations
    4. DShift in public sentiment

    Answer: (B) Loss of ecosystem services

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Paper 1 — General Aptitude · Shift 2

Attempt this paper

50 questions with the answer key and explanations.

  1. Question 1

    What is the ratio of the number of males to the number of females working in the night shift from the Call Centre industry?

    IndustryDistribution of people working in night shift out of 80500Distribution of females among night-shift workers
    IT12%20%
    Sports18%20%
    Call centre32%45%
    Sales8%60%
    Banking14%40%
    Chemicals16%15%
    1. A9:11
    2. B11:9
    3. C11:7
    4. D7:11

    Answer: (B) 11:9

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  2. Question 2

    What is the approximate average number of females working in the night shift from all industries together?

    IndustryDistribution of people working in night shift out of 80500Distribution of females among night-shift workers
    IT12%20%
    Sports18%20%
    Call centre32%45%
    Sales8%60%
    Banking14%40%
    Chemicals16%15%
    1. A4454
    2. B8962
    3. C6652
    4. D5646

    Answer: (A) 4454

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  3. Question 3

    What is the total number of males working in the night shift from all industries together?

    IndustryDistribution of people working in night shift out of 80500Distribution of females among night-shift workers
    IT12%20%
    Sports18%20%
    Call centre32%45%
    Sales8%60%
    Banking14%40%
    Chemicals16%15%
    1. A56594
    2. B51576
    3. C57356
    4. D53774

    Answer: (D) 53774

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  4. Question 4

    The number of females working in the night shift from the Sports industry is what percentage of the total number of people working in the night shift from all industries together?

    IndustryDistribution of people working in night shift out of 80500Distribution of females among night-shift workers
    IT12%20%
    Sports18%20%
    Call centre32%45%
    Sales8%60%
    Banking14%40%
    Chemicals16%15%
    1. A5.6
    2. B3.6
    3. C3.2
    4. D4.4

    Answer: (B) 3.6

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  5. Question 5

    What is the difference between the total number of males and the total number of females working in the night shift from all industries together?

    IndustryDistribution of people working in night shift out of 80500Distribution of females among night-shift workers
    IT12%20%
    Sports18%20%
    Call centre32%45%
    Sales8%60%
    Banking14%40%
    Chemicals16%15%
    1. A26508
    2. B27084
    3. C27048
    4. D26726

    Answer: (C) 27048

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  6. Question 6

    In which of the following ways can Padlet, an online tool, be used?
    A. For creating a virtual wall
    B. For uploading files
    C. For collaborative work
    D. For posting pictures and texts
    Choose the most appropriate answer from the options given below:

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

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

    Explanation

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  7. Question 7

    Statement I: GSAT-30 satellite is used by Swayamprabha for programme telecasts on DTH channels.
    Statement II: The programmes of Swayamprabha are available on 24x7 basis.
    In light of the above statements, choose the most appropriate answer from the options given below:

    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

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  8. Question 8

    Which period of learning shows no improvement in the learning curve?

    1. AIrregular progress
    2. BSpurts
    3. CPlateau
    4. DInitial stage

    Answer: (C) Plateau

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  9. Question 9

    According to Herbart, arrange the elements of pedagogy of teaching and learning in sequence.
    A. Preparation
    B. Association
    C. Presentation
    D. Application
    Choose the correct answer from the options given below:

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

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

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  10. Question 10

    Statement I: Entry behaviour implies the activities and responses of learners after completion of the teaching-learning process.
    Statement II: Terminal behaviour implies the activities of learners prior to the teaching-learning process.
    In light of the above statements, choose the most appropriate answer from the options given below:

    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: (B) Both Statement I and Statement II are incorrect.

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  11. Question 11

    When, in a process of reasoning, observation is followed by theory, hypotheses and interpretation, that approach to research is known as:

    1. AFormulative
    2. BStandardised
    3. CInductive
    4. DDeductive

    Answer: (C) Inductive

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  12. Question 12

    If research is done to find out behaviours and attitudes by analysing existing records and other materials, it is known as:

    1. APast research
    2. BNon-observational research
    3. CNon-participant research
    4. DArchival research

    Answer: (D) Archival research

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  13. Question 13

    If the dress of a person does not reflect or predict his voting behaviour, the assumption is of:

    1. APositive correlation
    2. BZero correlation
    3. CPartial correlation
    4. DFragmented correlation

    Answer: (B) Zero correlation

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  14. Question 14

    Which of the following are advantages of web-based research?
    A. It saves time.
    B. The participant can engage in the task at his/her convenience.
    C. The data collection is automatic and accurate.
    D. It demands a small sample.
    E. The participants are heavily paid.
    Choose the correct answer from the options given below:

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

    Answer: (A) A, B and C only

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  15. Question 15

    Statement I: Survey research has the advantage of sampling a large number of respondents who are selected for research.
    Statement II: Researchers, to administer their own surveys, do not have many options except to do it themselves.
    In light of the above statements, choose the correct answer from the options given below:

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

    Answer: (C) Statement I is true but Statement II is false.

    Explanation

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  16. Question 16

    People perceive communicated messages according to their:

    1. AOfficial status
    2. BCultural values
    3. CImagined influences
    4. DSemantic gaps

    Answer: (B) Cultural values

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  17. Question 17

    The doctrine of individualism, a political concept in communication, is identified as a/an:

    1. AFormula
    2. BEconomic indicator
    3. CInstitutional background
    4. DIdeology

    Answer: (D) Ideology

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  18. Question 18

    The behaviouristic model of communication asserts that:
    A. Behaviours are learnt in social situations.
    B. Behaviours are learnt in external situations only.
    C. The mental state of the individual is important.
    D. The mental state of the individual is unimportant.
    E. Communication techniques for cultural change include both verbal and non-verbal messages.
    Choose the most appropriate answer from the options given below:

    1. AA, B and C only
    2. BB, C and D only
    3. CA, C and E only
    4. DC, D and E only

    Answer: (C) A, C and E only

    Explanation

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  19. Question 19

    The elements related to communication in the ancient paradigm of everyday life are:
    A. Physiological
    B. Economic
    C. Ethical
    D. Self-realisation
    E. Ego clashes
    Choose the most appropriate answer from the options given below:

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

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

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  20. Question 20

    Statement I: By supplying facts and opinions, mass media enable the audience to make decisions.
    Statement II: Mass media should suppress facts and opinions in order to influence government decisions.
    In light of the above statements, choose the correct answer from the options given below:

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

    Answer: (C) Statement I is true but Statement II is false.

    Explanation

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  21. Question 21

    A, B, C and D are all distinct individuals. A is the daughter of B; B is the son of C; and C is the father of D. Which statement is true?

    1. AC is the uncle of A.
    2. BD and B are cousins.
    3. CA is the daughter of D.
    4. DIf P is the daughter of B, then A and P are sisters.

    Answer: (D) If P is the daughter of B, then A and P are sisters.

    Explanation

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  22. Question 22

    In a group of 2100 persons comprising players and their coaches, there is a coach for every fourteen players. How many coaches are there in the group?

    1. A145
    2. B120
    3. C140
    4. D150

    Answer: (C) 140

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  23. Question 23

    What number would replace the question mark (?) in the series?
    1, 5, 11, 19, 29, 41, 55, ?

    1. A71
    2. B96
    3. C69
    4. D67

    Answer: (A) 71

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  24. Question 24

    Karan was born 3 years after his parents' marriage. His father is 6 years older than his mother but 26 years older than Karan, who is 12 years old today. At what age did his mother get married?

    1. A20 years
    2. B19 years
    3. C17 years
    4. D18 years

    Answer: (C) 17 years

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  25. Question 25

    A student was asked to divide half of a number by 5 and the other half by 3 and then add the two quantities. Instead, the student divided the given number by 4, which resulted in a value 5 short of the correct value. What is the initial number?

    1. A300
    2. B400
    3. C350
    4. D450

    Answer: (A) 300

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  26. Question 26

    Which logical fallacy is committed in the following argument: "Atheists have not proven that God does not exist. Therefore we can conclude that God exists."

    1. AAd hominem
    2. BAppeal to Ignorance
    3. CHasty Generalisation
    4. DSlippery Slope

    Answer: (B) Appeal to Ignorance

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  27. Question 27

    "Since all professors are competent, and no competent people are underpaid. Therefore no professors are underpaid." Which formal fallacy is committed in the above argument?

    1. AUndistributed middle
    2. BAffirming the consequent
    3. CDenying the antecedent
    4. DExistential fallacy

    Answer: (A) Undistributed middle

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  28. Question 28

    Which of the following statements are logically equivalent?
    A. No philosophers are underpaid scholars.
    B. All philosophers are non-underpaid scholars.
    C. No underpaid scholars are philosophers.
    D. All non-underpaid scholars are non-philosophers.
    Choose the correct answer from the options given below:

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

    Answer: (A) A, B and C only

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  29. Question 29

    Which of the following statements can neither both be true nor both be false?
    A. All bread is nutritious.
    B. Some bread is nutritious.
    C. Some bread is not nutritious.
    D. No bread is nutritious.
    Choose the correct answer from the options given below:

    1. AA and B only
    2. BA and C only
    3. CA and D only
    4. DC and D only

    Answer: (B) A and C only

    Explanation

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  30. Question 30

    According to the classical Indian school of Logic (Nyaya), which of the following statements commits the fallacy of viruddha?

    1. ASound is eternal, because it is produced.
    2. BWherever there is fire, there is smoke.
    3. CThe hill has fire because it is knowable.
    4. DSound is eternal because it is audible.

    Answer: (A) Sound is eternal, because it is produced.

    Explanation

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  31. Question 31

    Statement I: ASCII, a character-encoding scheme, is an acronym for American Standard Code for Intelligent Information.
    Statement II: (37.25)10 = (100101.01)2.
    In light of the above statements, choose the correct answer from the options given below:

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

    Answer: (D) Statement I is false but Statement II is true.

    Explanation

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  32. Question 32

    Statement I: An Operating System controls peripherals and provides protection against viruses.
    Statement II: In word processing and desktop publishing, the terms portrait and landscape refer to page layout.
    In light of the above statements, choose the correct answer from the options given below:

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

    Answer: (B) Both Statement I and Statement II are false.

    Explanation

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  33. Question 33

    In computers, which of the following file formats contains exclusively text file formats?
    A. PDF
    B. CSV
    C. GIF
    D. RTF
    E. TXT
    Choose the correct answer from the options given below:

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

    Answer: (B) B, D and E only

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  34. Question 34

    In the context of MS-PowerPoint, a presentation software, which of the following statements are true?
    A. Objects on the slide that hold text, pictures and more are called placeholders.
    B. MS-PowerPoint automatically opens with Windows Operating System.
    C. A view that displays the slides of a presentation as miniature representations is called Slide Sorter view.
    Choose the correct answer from the options given below:

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

    Answer: (B) A and C only

    Explanation

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  35. Question 35

    Statement I: Fibre-optic cable makes use of light pulses to transmit data and is most appropriate to connect computers in a small building.
    Statement II: URL is the text used by web browsers to locate a web address on the Internet.
    In light of the above statements, choose the correct answer from the options given below:

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

    Answer: (D) Statement I is false but Statement II is true.

    Explanation

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  36. Question 36

    What is the correct sequence of biomagnification due to a contaminated water body?
    A. Humans
    B. Zooplanktons
    C. Bacteria
    D. Fish
    Choose the correct answer from the options given below:

    1. AA, C, D, B
    2. BC, B, D, A
    3. CA, D, B, C
    4. DB, C, D, A

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

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  37. Question 37

    Aeration technique of water treatment is used for the removal of:

    1. APersistent Organic Pollutants (POPs)
    2. BVolatile Organic Compounds (VOCs)
    3. CHardness
    4. DMetals

    Answer: (B) Volatile Organic Compounds (VOCs)

    Explanation

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  38. Question 38

    Statement I: Air Quality Index (AQI) is used to report to the public an overall assessment of a given day's air quality.
    Statement II: Air Quality Index integrates air quality data for any two of the criteria pollutants into a single number that represents the air quality of an urban area.
    In light of the above statements, choose the most appropriate answer from the options given below:

    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

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  39. Question 39

    Which of the following are examples of solar cells?
    A. Organic solar cell
    B. Nanoparticle solar cell
    C. Elemental solar cell
    D. Plastic solar cell
    E. Molecular solar cell
    Choose the most appropriate answer from the options given below:

    1. AA, B and C only
    2. BA, B and D only
    3. CB, C and D only
    4. DC, D and E only

    Answer: (B) A, B and D only

    Explanation

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  40. Question 40

    When little rivulets of running water gather together and cut small channels in the soil, the process is called:

    1. AGully erosion
    2. BSheet erosion
    3. CChannel erosion
    4. DRill erosion

    Answer: (D) Rill erosion

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  41. Question 41

    As per NEP 2020, Gross Enrolment Ratio (GER) is sought to be achieved to the extent of 50% by:

    1. A2030
    2. B2035
    3. C2040
    4. D2047

    Answer: (B) 2035

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  42. Question 42

    The Universities of Calcutta, Bombay and Madras were to be set up on the model of:

    1. AOxford University
    2. BCambridge University
    3. CUniversity of London
    4. DUniversity of Edinburgh

    Answer: (C) University of London

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  43. Question 43

    Statement I: NITI Aayog is neither a constitutional body nor a statutory body.
    Statement II: NITI Aayog is a policy think-tank of Government of India.
    In light of the above statements, choose the correct answer from the options given below:

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

    Answer: (A) Both Statement I and Statement II are true.

    Explanation

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  44. Question 44

    Statement I: The first UGC-CARE category includes journals found qualified through CARE protocols.
    Statement II: The second UGC-CARE category includes journals indexed in globally recognized databases.
    Choose the correct answer from the options given below:

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

    Answer: (A) Both Statement I and Statement II are true.

    Explanation

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  45. Question 45

    Which of the following are the logical steps for an instructional design system under MOOCs?
    A. Policy analysis
    B. Need analysis
    C. Content analysis
    D. Learner analysis
    E. Assignment analysis
    Choose the correct answer from the options given below:

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

    Answer: (B) B, C and D only

    Explanation

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  46. Question 46

    Which countries had very high household borrowings?
    A. Portugal
    B. Ireland
    C. Greece
    D. Spain
    Choose the most appropriate answer from the options:

    The global financial crisis that began in 2008 hit Europe almost immediately with a major debt crisis. Borrowers in a number of Eurozone countries had built up large debts and appeared unable to service them. The four principal Eurozone debtors were Greece, Ireland, Portugal and Spain. In Spain and Ireland, households had borrowed heavily to finance a major housing and construction boom. When housing prices collapsed, the two national governments started borrowing heavily from abroad to finance national bank bailouts and to stimulate their economies. Greece had been running budget deficits since the creation of the Eurozone, with the government relying heavily on foreign borrowing to cover the shortfalls. Portugal was somewhere in between: both households and the government had been borrowing heavily. The difficulties of the Eurozone debtors were not only their own problem, since major northern European financial institutions and investors had made most of these loans. If the debtors defaulted, trillions of dollars of loans on the books of northern European banks, investors and pension funds would go bad. The weight of so many bad loans and investments endangered even the richest European financial systems, especially Germany and France. The sovereign debt crisis threatened both the sovereign debtors and their creditors, and in fact the entire European economy.

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

    Answer: (D) A, B and D only

    Explanation

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  47. Question 47

    Statement I: The debt crisis did not affect the richest European countries.
    Statement II: The debt crisis threatened only the debtors.
    Choose the correct answer from the options:

    The global financial crisis that began in 2008 hit Europe almost immediately with a major debt crisis. Borrowers in a number of Eurozone countries had built up large debts and appeared unable to service them. The four principal Eurozone debtors were Greece, Ireland, Portugal and Spain. In Spain and Ireland, households had borrowed heavily to finance a major housing and construction boom. When housing prices collapsed, the two national governments started borrowing heavily from abroad to finance national bank bailouts and to stimulate their economies. Greece had been running budget deficits since the creation of the Eurozone, with the government relying heavily on foreign borrowing to cover the shortfalls. Portugal was somewhere in between: both households and the government had been borrowing heavily. The difficulties of the Eurozone debtors were not only their own problem, since major northern European financial institutions and investors had made most of these loans. If the debtors defaulted, trillions of dollars of loans on the books of northern European banks, investors and pension funds would go bad. The weight of so many bad loans and investments endangered even the richest European financial systems, especially Germany and France. The sovereign debt crisis threatened both the sovereign debtors and their creditors, and in fact the entire European economy.

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

    Answer: (B) Both Statement I and Statement II are false.

    Explanation

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  48. Question 48

    Which countries were the main Eurozone debtors in 2008?
    A. Germany
    B. Spain
    C. France
    D. Greece
    E. Portugal
    Choose the most appropriate answer from the options:

    The global financial crisis that began in 2008 hit Europe almost immediately with a major debt crisis. Borrowers in a number of Eurozone countries had built up large debts and appeared unable to service them. The four principal Eurozone debtors were Greece, Ireland, Portugal and Spain. In Spain and Ireland, households had borrowed heavily to finance a major housing and construction boom. When housing prices collapsed, the two national governments started borrowing heavily from abroad to finance national bank bailouts and to stimulate their economies. Greece had been running budget deficits since the creation of the Eurozone, with the government relying heavily on foreign borrowing to cover the shortfalls. Portugal was somewhere in between: both households and the government had been borrowing heavily. The difficulties of the Eurozone debtors were not only their own problem, since major northern European financial institutions and investors had made most of these loans. If the debtors defaulted, trillions of dollars of loans on the books of northern European banks, investors and pension funds would go bad. The weight of so many bad loans and investments endangered even the richest European financial systems, especially Germany and France. The sovereign debt crisis threatened both the sovereign debtors and their creditors, and in fact the entire European economy.

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

    Answer: (C) B, D and E only

    Explanation

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  49. Question 49

    Assertion (A): In 2008, Europe was quite susceptible to the global financial crisis.
    Reason (R): The global financial crisis immediately led to a major debt crisis in Europe.
    Choose the most appropriate answer from the options:

    The global financial crisis that began in 2008 hit Europe almost immediately with a major debt crisis. Borrowers in a number of Eurozone countries had built up large debts and appeared unable to service them. The four principal Eurozone debtors were Greece, Ireland, Portugal and Spain. In Spain and Ireland, households had borrowed heavily to finance a major housing and construction boom. When housing prices collapsed, the two national governments started borrowing heavily from abroad to finance national bank bailouts and to stimulate their economies. Greece had been running budget deficits since the creation of the Eurozone, with the government relying heavily on foreign borrowing to cover the shortfalls. Portugal was somewhere in between: both households and the government had been borrowing heavily. The difficulties of the Eurozone debtors were not only their own problem, since major northern European financial institutions and investors had made most of these loans. If the debtors defaulted, trillions of dollars of loans on the books of northern European banks, investors and pension funds would go bad. The weight of so many bad loans and investments endangered even the richest European financial systems, especially Germany and France. The sovereign debt crisis threatened both the sovereign debtors and their creditors, and in fact the entire European economy.

    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. CA is correct but R is not correct.
    4. DA is not correct but R is correct.

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

    Explanation

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  50. Question 50

    Failure on the part of the debtors to pay loans would have risked:
    A. Pension funds
    B. Investors
    C. Northern European banks
    Choose the most appropriate answer from the options:

    The global financial crisis that began in 2008 hit Europe almost immediately with a major debt crisis. Borrowers in a number of Eurozone countries had built up large debts and appeared unable to service them. The four principal Eurozone debtors were Greece, Ireland, Portugal and Spain. In Spain and Ireland, households had borrowed heavily to finance a major housing and construction boom. When housing prices collapsed, the two national governments started borrowing heavily from abroad to finance national bank bailouts and to stimulate their economies. Greece had been running budget deficits since the creation of the Eurozone, with the government relying heavily on foreign borrowing to cover the shortfalls. Portugal was somewhere in between: both households and the government had been borrowing heavily. The difficulties of the Eurozone debtors were not only their own problem, since major northern European financial institutions and investors had made most of these loans. If the debtors defaulted, trillions of dollars of loans on the books of northern European banks, investors and pension funds would go bad. The weight of so many bad loans and investments endangered even the richest European financial systems, especially Germany and France. The sovereign debt crisis threatened both the sovereign debtors and their creditors, and in fact the entire European economy.

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

    Answer: (D) A, B and C

    Explanation

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Paper 2 — Economics · Shift 2

Attempt this paper

99 questions with the answer key and explanations.

  1. Question 1

    In case of two goods for which the MRS is zero or infinite, then the nature of goods is :

    1. APerfect substitutes
    2. BNormal goods
    3. CPerfect compliments
    4. DClose substitutes

    Answer: (C) Perfect compliments

    Explanation

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  2. Question 2

    The negative network externality in which a consumer wishes to own an exclusive or unique good such as specially
    designed sports car is:

    1. AB andwagon effect
    2. BTequila effect
    3. CSnob effect
    4. DPigou effect

    Answer: (C) Snob effect

    Explanation

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  3. Question 3

    When each player has chosen his or her optimal strategy given the strategy chosen by other player, the situation is referred to
    as:

    1. ANash Equilibrium
    2. BWicksel's Equilibrium
    3. CPrisoner's dilemma
    4. DCo-operative Game q@) 2 (2) 2 (3) 3 (4) 4

    Answer: (A) Nash Equilibrium

    Explanation

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  4. Question 4

    A firm has the following total cost and demand functions: C = 4Q^3 - 70Q^2 + 111Q + 50 and Q = 100 - P. Find the profit-maximizing level of output (Q*) and maximum profit of the firm.

    1. A50 and 100
    2. B111 and 2150
    3. C1 and 1114
    4. D7 and 84

    Answer: (C) 1 and 1114

    Explanation

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  5. Question 5

    The condition of preferring a certain income to a risky income with same expected value is referred to as:

    1. ARisk neutral
    2. BRisk loving
    3. CRisk averse
    4. DRisk Premium

    Answer: (C) Risk averse

    Explanation

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  6. Question 6

    Which one of the following is not a component of M, ?

    1. ACurrency
    2. BTraveler's cheque
    3. CCommercial paper
    4. DDemand deposits

    Answer: (C) Commercial paper

    Explanation

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  7. Question 7

    The Keynes's animal spirits are closely associated with

    1. APast investment
    2. BCurrent investment
    3. CAggregate income
    4. DAggregate expenditure

    Answer: (B) Current investment

    Explanation

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  8. Question 8

    In the Mundell-Fleming model, the monetary policy will be more effective when there is:

    1. APerfect capital mobility and flexible exchange rate
    2. BPerfect capital mobility and fixed exchange rate
    3. CImperfect capital mobility and flexible exchange rate
    4. DImperfect capital mobility and fixed exchange rate

    Answer: (A) Perfect capital mobility and flexible exchange rate

    Explanation

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  9. Question 9

    If the two events A and B are not independent then which of the following is correct?

    1. AP(ANB) = P(A).P(B)
    2. BP(ANB) = P(A) -P(B/A)
    3. CP(ANB) = P(A) -P(A/B)
    4. DP(ANB) = 1—P(AUB)

    Answer: (B) P(ANB) = P(A) -P(B/A)

    Explanation

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  10. Question 10

    The chain-weighted index is

    1. AThe total market value of goods and services produced in each year
    2. BThe percentage growth in real GDP
    3. CAmethod for calculating changes in prices that used an average of base year from neighbouring years
    4. DAn Index that measures how the prices of goods and services included in GDP change.

    Answer: (C) Amethod for calculating changes in prices that used an average of base year from neighbouring years

    Explanation

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  11. Question 11

    If the consumption function passes through the origin and APC = MPC then it must be:

    1. ALinear without any intercept
    2. BNon linear without any intercept
    3. CLinear with a negative intercept on the income axis
    4. DLinear with a positive intercept on the consumption axis q@)4 (2) 2 (3) 3 (4) 4 ale SOUT Wer Fat F SRA SR APC = MPC, dd FS HGRA SMM:

    Answer: (A) Linear without any intercept

    Explanation

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  12. Question 12

    Find the producer's surplus when
    Pq = 3x7 = 20x+5
    P,=15 +9x (x is the quantity)

    1. A400
    2. B350
    3. C450
    4. D500

    Answer: (C) 450

    Explanation

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  13. Question 13

    The demand function for good A is given by Qa = 100 — 2P, + 0.2 Y + 0.3 Pg. Find the income elasticities of demand P, =
    6, Y = 500, Pp = 10

    1. A0.06
    2. B0.02
    3. C0.52
    4. D-0.06

    Answer: (C) 0.52

    Explanation

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  14. Question 14

    Find the substitution parameter p(rho) of constant elasticity of substitution (CES) production function when the elasticity of
    substitution (0) is greater than one

    1. Arho = 0
    2. Brho = 1
    3. C-1 < rho < 0
    4. D0 < rho < infinity

    Answer: (C) -1 < rho < 0

    Explanation

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  15. Question 15

    In logit model, as the odds ratio decreases from to 0, the logit becomes

    1. ANegative
    2. BEqual to 0
    3. CPositive
    4. DFraction

    Answer: (A) Negative

    Explanation

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  16. Question 16

    Given regression model as Yj = a, + 8; X; +B2 (Xj — X’) Dj + U; such a model is used to:

    1. ADeseasonalise a quarterly time series data
    2. BSeasonally adjust a monthly time series data
    3. CTo conduct chow test for structural break in time series data
    4. DTest piecewise'linear relationship in the data

    Answer: (D) Test piecewise'linear relationship in the data

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  17. Question 17

    A player tosses two fair coins. He wins Rs. 5 if 2 heads occur, Rs. 2 if 1 head occurs and Rs. 1 if no head occurs. Find his expected gain.

    1. ARs. 1
    2. BRs. 2
    3. CRs. 2.25
    4. DRs. 2.50

    Answer: (D) Rs. 2.50

    Explanation

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  18. Question 18

    A card is drawn from a well-shuffled pack of playing cards. Find the probability that it is either a diamond or a king.

    1. A17/52
    2. B16/52
    3. C18/52
    4. D15/52

    Answer: (B) 16/52

    Explanation

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  19. Question 19

    In simultaneous equation models, OLS can be applied directly if

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

    Answer: (A) It is a recursive model

    Explanation

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  20. Question 20

    The Rural Landless Employment guarantee Programme (RLEGP) was launched on :

    1. A15th August 1947
    2. B15th August 1950
    3. C15th August 1983
    4. D15th August 2000

    Answer: (C) 15th August 1983

    Explanation

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  21. Question 21

    The Foreign Trade Policy (2015-2020) was announced on which date ?

    1. A1 August 2015
    2. B1 April 2015
    3. C30 August 2015
    4. D30 April 2015

    Answer: (B) 1 April 2015

    Explanation

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  22. Question 22

    Who was the chairman of 14th Finance Commission in India ?

    1. ADr. Vijay Kelkar
    2. BDr Y.V. Reddy
    3. CDr. C. Rangarajan
    4. DDr. N.K. Singh

    Answer: (B) Dr Y.V. Reddy

    Explanation

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  23. Question 23

    Zamindari Tenure was introduced by :

    1. AThomas Munro
    2. BLord Cornwallis
    3. CH. Venkatasubbiah
    4. DG. Myrdal

    Answer: (B) Lord Cornwallis

    Explanation

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  24. Question 24

    Which of the following is true in case of the non-marketed environmental resources?

    1. ANon excludable and non-rival in consumption
    2. BExcludable but not rival in consumption
    3. CExcludable and rival in consumption
    4. DNon-excludable but rival in consumption

    Answer: (D) Non-excludable but rival in consumption

    Explanation

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  25. Question 25

    Suppose X places Rs. 8 value on one bread packet and Y places Rs. 6 value on it. If there is no tax on bread, the price of one bread packet is Rs. 5, so both X and Y buy one packet each. Now suppose the government levies a tax of Rs. 2 per unit and the price of bread rises to Rs. 7. The deadweight loss and tax revenue collected respectively are:

    1. ARs. 1 and Rs. 2
    2. BRs. 2 and Rs. 4
    3. CRs. 2 and Rs. 2
    4. DRs. 1 and Rs. 4

    Answer: (A) Rs. 1 and Rs. 2

    Explanation

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  26. Question 26

    The component which distinguishes primary deficit from fiscal deficit is :

    1. ANon-debt component of capital receipt
    2. BInterest payment
    3. CDebt component of capital receipt
    4. DRevenue deficit

    Answer: (B) Interest payment

    Explanation

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  27. Question 27

    Which of the following is not an assumption or conclusion of the inflation targeting approach ?

    1. AInterest rate is the major instrument of monetary policy
    2. BHigher interest rate controls aggregate demand
    3. CInflation is a supply side phenomenon
    4. DQuantity of money supply is not very effective in controlling inflation

    Answer: (C) Inflation is a supply side phenomenon

    Explanation

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  28. Question 28

    In context of monetary policy, the sacrifice ratio refers to the
    Interest cost arising because of crowding out effect
    Loss of real value of money at the face of increasing inflation
    Output cost of reducing inflation
    Labour cost raising minimum wage
    ee

    1. ALoss of real value of money at the face of increasing inflation
    2. BOutput cost of reducing inflation
    3. CLabour cost raising minimum wage
    4. Dee

    Answer: (C) Labour cost raising minimum wage

    Explanation

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  29. Question 29

    Which formula is used to calculate the yield of Treasury bills where Y = discounted yield, P = price, and D = days to maturity?

    1. AY = (100 - P) / 100 x 365 / D x 100
    2. BY = (100 - P) / D x 365 x 100
    3. CY = (100 - P) / P x 365 / D x 100
    4. DY = (100 - D) / P x 365 x 100

    Answer: (C) Y = (100 - P) / P x 365 / D x 100

    Explanation

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  30. Question 30

    The faster growth and more equal distribution of income can be examined simultaneously by

    1. AGini ratio
    2. BPoverty-weighted growth rate
    3. CKuznet curve
    4. DNone of the above

    Answer: (B) Poverty-weighted growth rate

    Explanation

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  31. Question 31

    Marx refers to the concept of organic composition of capital. Which one of the following ratios is used for this, where C is constant capital, V is variable capital and S is surplus value?

    1. AC / (V + S)
    2. BC / V
    3. CV / C
    4. DS / V

    Answer: (B) C / V

    Explanation

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  32. Question 32

    Which of the following is not true in the case of externality?

    1. AIt is related to human interactions
    2. BIt is tied to consumer sovereignty
    3. CIt is based on higher order judgements of right and wrong
    4. DIt is an amoral concept

    Answer: (C) It is based on higher order judgements of right and wrong

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  33. Question 33

    Compensating variation for a price decrease of a good can be interpreted as :

    1. AWillingness to pay
    2. BWillingness to accept
    3. CBoth and 2
    4. DNone (4) 4 Te & yea Ft oat og Vid ROON ve of se Oo Ff oRenaad fara aaa s

    Answer: (A) Willingness to pay

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  34. Question 34

    Which of the following is an example of depreciation of natural capital?

    1. ARestoring rivers rendered unusable due to dumping of industrial effluents
    2. BRepresentation of areas that have been cleared for years of open-cut mining
    3. CPollution-control activities by the public sector such as municipal waste treatment
    4. DDetoxifying unusable soils for urban or rural development q@)4 (2) 2 (3) 3 (4) 4 faatakad 4 Grr Urplae Osi & AI HI Up Sa S?

    Answer: (C) Pollution-control activities by the public sector such as municipal waste treatment

    Explanation

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  35. Question 35

    Equivalent variation for a price increase of a good can be interpreted as:
    Willingness to pay
    Willingness to accept
    Both and 2
    None
    m We

    1. AWillingness to accept
    2. BBoth and 2
    3. CNone
    4. Dm We

    Answer: (A) Willingness to accept

    Explanation

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  36. Question 36

    According to the specific factors model, which of the following is correct?

    1. ATrade benefits the factor specific to the export sector of each country but hurts the factor specific to the import- competing sectors with ambiguous effects on mobile factors
    2. BTrade hurts the factor specific to the export sector of each country and also hurts the factor specific to the import- competing sectors, with ambiguous effects on mobile factors
    3. CTrade benefits the factor specific to the import sector of each country but hurts the factor specific to the export- competing sectors, with ambiguous effects on mobile factors
    4. DTrade benefits the factor specific to the export sector as well as import-competing sector of each country, with ambiguous effects on mobile factors.

    Answer: (A) Trade benefits the factor specific to the export sector of each country but hurts the factor specific to the import- competing sectors with ambiguous effects on mobile factors

    Explanation

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  37. Question 37

    What does 'immiserising growth’ argued?

    1. AExport-biased growth by poor nations would worsen their terms of trade so much that they would be worse off than if they had not grown at all
    2. BExport-biased growth by rich nations would worsen their terms of trade so much that they would be worse off than if they had not grown at all
    3. CImport-biased growth by poor nations would worsen their terms of trade so much that they would be worse off than if they had not grown at all
    4. DImport-biased growth by Rich nations would worsen their terms of trade so much that they would be worsen off than if had not grown at all.

    Answer: (A) Export-biased growth by poor nations would worsen their terms of trade so much that they would be worse off than if they had not grown at all

    Explanation

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  38. Question 38

    Which of the following postulates the Gravity Model correctly ?

    1. AThe smaller and the closer the two countries are, the smaller the volume of trade between them is expected to be
    2. BThe larger and the closer the two countries are, the larger the volume of trade between them is expected to be.
    3. CThe larger and the closer the two countries are, the smaller the volume of trade between them is expected to be
    4. DThe smaller and farther the two countries are, the larger the volume of trade between them is expected to be.

    Answer: (B) The larger and the closer the two countries are, the larger the volume of trade between them is expected to be.

    Explanation

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  39. Question 39

    If the nominal tariff rate (t) on consumers of the final commodity is 10 percent, the ratio of the cost of the imported input to the price of the final commodity in the absence of tariffs (a_i) is 0.8, and the nominal tariff rate on the imported input (t_i) is 0, then find the rate of effective protection.

    1. A0%
    2. B10%
    3. C50%
    4. D100%

    Answer: (C) 50%

    Explanation

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  40. Question 40

    Which of the followings are true for ridge lines?
    A. they separate the relevant from the irrelevant portions of the isoquants
    B. along the ridge lines, the slope of the isoquants is either zero or infinite
    C. The relevant segment of the isoquants enclosed pertains to the stage II of production for labour and capital
    D. Producers will never want to operate outside the region enclosed within the ridge lines.
    E. The marginal product of both inputs-labour and capital is positive but declines for the portion of the isoquants within
    the ridge lines.
    Choose the correct answer from the options given below:

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

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

    Explanation

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  41. Question 41

    Which of the followings are true about a fair game or fair bet ?
    A. The entry of a fair bet is zero
    B. The person who accepts fair bet is said to be risk lover
    C. expected value of income from the bet is equal to the same amount of income with certainty
    D. The person who refuses a fair bet is said to be risk neutral
    E. The person who refuses a fair bet is said to be risk averse.
    Choose the correct answer from the options given below:

    1. AA and C only
    2. BB and E only
    3. CC and D only
    4. DC and E only

    Answer: (D) C and E only

    Explanation

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  42. Question 42

    According to the modern theory of rent
    A. All the factors may earn rent
    B. Rent can only be earned in long-run
    C. Transfer earning of an unused factor is zero
    D. Only land can earn rent
    E. Entire earning of an unused factor is economic rent.
    Choose the correct answer from the options given below:

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

    Answer: (B) A, C and E only

    Explanation

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  43. Question 43

    Rational expectations views include :
    A. The market clearing rational expectations do not approach to the Phillips curve
    B. Rational expectation as a theory of expectations
    C. An emphasis on the credibility of policy makers
    D, A preference for policy making rules rather than discretion
    E. Generally insists that markets do not clear rapidly.
    Choose the most appropriate answer from the options given below:

    1. AB, C and D only
    2. BA and E only
    3. CA,B,C, D andE
    4. DA, D and E only

    Answer: (A) B, C and D only

    Explanation

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  44. Question 44

    In the budget at glance, which of the following items are included ?
    A. budget estimate of the current year
    B. Revised estimate of the current year
    C. Actuals of the current year
    D. Actuals for the preceding year
    E. Budget estimate for the forthcoming year.
    Choose the most appropriate answer from the options given below:

    1. AA and D only
    2. BA, B, D and E only
    3. CA, B and C only
    4. DC and D only

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

    Explanation

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  45. Question 45

    How do adverse technology shocks affect labour demand and supply?
    A. Decrease the demand for labour
    B. Both real wage and employment fall
    C. Real wage increases and employment falls
    D. Real wage falls and employment increases
    E. Adverse effect on market equilibrium.
    Choose the correct answer from the options given below:

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

    Answer: (D) A,B and E only

    Explanation

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  46. Question 46

    Which of the following are correct in case of Poisson distribution?
    A. n, the number of trials, is indefinitely large.
    B. p, the constant probability of success for each trial, is indefinitely large.
    C. np = m is finite.
    D. mu_2 = m.
    E. mu_4 = m + 3m^2.
    Choose the correct answer from the options given below:

    1. AA, C and D only
    2. BA, C and E only
    3. CB,C and E only
    4. DB, C and D only (4) 4 gen fara & dal a Pafafad ata S wet F? A. Waal ot SST n, ara Bid F sua n — a B. wae Ram og aad wi Pala Sues, p, sa st F C. np = m Gifha sis D.p,=m+2 E. H,=m+t 3m?

    Answer: (B) A, C and E only

    Explanation

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  47. Question 47

    Which of the followings are correct conclusions without error in case of testing of Hypothesis ?
    A. Reject null hypothesis (Ho), when it is true
    B. Accept Ho, when it is true
    C. Accept Ho, when Alternate hypothesis (Hj) is true.
    D. Reject Ho when H, is true.
    E. Accept Ho when H, is false.
    Choose the correct answer from the options given below:

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

    Answer: (B) B, D and E only

    Explanation

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  48. Question 48

    Which of the followings are correct for OLS estimation in the presence of Heteroscedasticity ?
    A. The estimated coefficients are linear
    B. The estimated coefficients are unbiased
    C. The estimated coefficients are biased
    D. The estimated coefficients are consistent
    E. The estimated coefficients are efficient.
    Choose the correct answer from the options given below:

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

    Answer: (B) A, B and D only

    Explanation

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  49. Question 49

    Which of the followings satisfy the assumptions of the classical linear regression model ?
    A. Zero mean value of disturbance Ui
    B. The explanatory variables and the error terms are not independent
    C. Homoscedasticity or constant variance of Ui
    D. No auto correlation between the disturbances
    E, There is more than one exact linear relationship between explanatory variables.
    Choose the most appropriate answer from the options given below:

    1. AA, B, C and D only
    2. BA, C, D and E only
    3. CA, C and D only
    4. DC, D and E only

    Answer: (C) A, C and D only

    Explanation

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  50. Question 50

    If A, B and C are three different non-empty sets, then find which of the following are correct in laws of set operations ?
    A. (A)' =A
    B. (AUB)=1-(ANB)
    C. AU (BUC) = (AUB) UC
    D. AU (8NC)=(ANB) U (ANC)
    E. A-B=ANB'
    Choose the correct answer from the options given below:

    1. AA, C and D only
    2. BA, C and E only
    3. CA, B and C only
    4. DC, D and E only

    Answer: (B) A, C and E only

    Explanation

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  51. Question 51

    In multiple regression model, a hypothesis such as Hg : 82 = 83 = 0 can be tested using

    1. At-test
    2. BChi-square test
    3. CANOVA test
    4. DF-test

    Answer: (D) F-test

    Explanation

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  52. Question 52

    Which of the followings are the indicators of Human Development Index ?
    A. Real GDP per capita
    B. Adult literacy rate combined with enrolment ratio
    C. Life expectancy at birth
    D. Malnutrition under five
    E. IMR under five.
    Choose the correct answer from the options given below:

    1. AA,B and E only
    2. BB, C and D only
    3. CA, B and C only
    4. DC, D and E only

    Answer: (C) A, B and C only

    Explanation

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  53. Question 53

    Which of the following are correct for the Finance Commission ?
    A. It is constituted under Article 380 of the Constitution
    B. It is a statutory body
    C. It is constituted under Article 280 of the Constitution
    D. Prof. K C Pant was Chairman of 10th Finance Commission
    E. Dr. Vijay Kelkar was Chairman of 14th Finance Commission.
    Choose the most appropriate answer from the options given below.

    1. AB, C and D only
    2. BA, B and D only
    3. CC, D and E only
    4. DA, C and E only

    Answer: (A) B, C and D only

    Explanation

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  54. Question 54

    Which of the following are true ?
    A, Product taxes will raise prices less under monopoly than under competition
    B. A tax on capital income tends to be progressive, whereas tax on wage income tends to be regressive
    C. The burden of tax will be distributed between sellers and buyers in the ratio of elasticity of demand to that of supply.
    D. A unit tax enters through a parallel downward shift in the supply schedule
    E. Imposition of tax raises price and quantity.
    Choose the most appropriate answer from the options given below:

    1. AA and B only
    2. BA, B and C only
    3. CA,B, C and D only
    4. DA,B, C and E only wd

    Answer: (B) A, B and C only

    Explanation

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  55. Question 55

    Which of the following are correct ?
    A. Acompetitive market can secure efficient resource use inthe provision of private goods, but market failure occurs in
    that of social goods
    B. Efficient provision of social goods involves horizontal rather than vertical addition of Individual pseudo-demand
    schedules
    C. To seek efficient provision of social goods, a political process of budget determination is needed
    D. Corrective action may be needed when consumer choice is based on false advertising
    E. There are mixed cases between the extremes of purely private and purely social goods.
    Choose the most appropriate answer fron the options given below:

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

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

    Explanation

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  56. Question 56

    Which of the following monetary measure is used to control inflation ?
    A. The Central Bank purchases government securities from Commercial Banks
    B. The Central Bank sells the government securities to the Commercial Banks
    C. The bank rate may be raised
    D. The bank rate may be reduced
    E. Raising of cash reserve ratio.
    Choose the correct answer from the options given below"

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

    Answer: (B) B,C and E only

    Explanation

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  57. Question 57

    Which of the followings are correct in case of money market in India?
    A. Commercial bill is a short-term instrument with high risk
    B. Treasury bill is an instrument of short-term borrowing by the government with absence of default risk
    C. RBI uses refinance to relieve liquidity shortages in the system
    D. The RBI has switched over from daily fixed rate repos auction system to discriminatory price auction repos.
    E. SLR enables to impose secondary and supplementary reserve requirements on the banking system.
    Choose the correct answer from the options given below :

    1. AA, B and D only
    2. BB, C and D only
    3. CB, C and E only
    4. DC, D and E only

    Answer: (C) B, C and E only

    Explanation

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  58. Question 58

    The causes and consequences of poverty include:
    A. Unemployment
    B. Low wages
    C. Poor health
    D. Low Population Growth
    E. Low Literacy rates.
    Choose the most appropriate answer from the options given below:

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

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

    Explanation

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  59. Question 59

    Measurement of income inequality is done by :
    A. Gini coefficient
    B. Lorenz curve
    C. Palma Ratio
    D. Deprivation ratio
    E. Phillips Curve
    Choose the correct answer from the options given below:

    1. AB and E only
    2. BA and B only
    3. CA, B and C only
    4. DC andA only

    Answer: (C) A, B and C only

    Explanation

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  60. Question 60

    Choose the correct statement for Schumpeter's theory of development.
    A. Development is financed by real saving.
    B. Capitalism keeps its character intact overtime
    C. Development is evolutionary
    D. Development creates inflation
    E. Unlimited Supply of labour.
    Choose the correct answer from the options given below:

    1. AA and B only
    2. BC and D only
    3. CA, B, C and D only
    4. DNone of the above

    Answer: (D) None of the above

    Explanation

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  61. Question 61

    Which of the following are the features of Environmental Economics as a field of study ?
    A. It has)its-roots in the theory of externalities and public goods.
    B. It is based on neoclassical welfare theory
    CG. Itenvisions human economy as a sub-system of the biosphere
    D, It engages with the law of transformations of matter and energy
    E. It focuses on finding the most efficient ways to reducing environmental damages.
    Choose the correct answer from the options given below:

    1. AA,B and C only
    2. BB, C and D only
    3. CA,B and E only
    4. DC, D and E only

    Answer: (C) A,B and E only

    Explanation

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  62. Question 62

    Which of the following are the essential features of weak sustainability ?
    A. It considers human-made capital and natural capital as close substitutes.
    B. It puts emphasis on the initial size of an economy since the size of the initial capital stock is considered relevant.
    C. It requires from each generation to ensure that their actions do not compromise the productive capacity of the
    generations to follow
    D. the composition of the capital stock of an economy does not hold great significance
    E. It renders natural capital as an absolute necessity for sustaining net national income over an indefinite period.
    Choose the most appropriate answer from the options given below:

    1. AA, C and D only
    2. BA,B and C only
    3. CC, D and E only
    4. DA, B and E only

    Answer: (A) A, C and D only

    Explanation

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  63. Question 63

    Which of the following are part of non-tariff barriers ?
    A. Import quotas
    B. Voluntary export restraint
    C. Export subsidy
    D. Compound tariff
    E. Ad Valorem tariff.
    Choose the correct answer from the options given below:

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

    Answer: (C) A, B and C only

    Explanation

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  64. Question 64

    Marshall-Lerer condition states that:
    A. Devaluation will improve the country's balance of payments if the sum of price elasticities of demand for exports and
    imports in absolute terms is greater than one.
    B. Devaluation will increase the balance of payments deficit if the sum of the price elasticities of demand for exports and
    imports is less than one.
    C. Devaluation will have no effect on the balance of payment situation if the sum of the price elasticises of demand for
    exports and imports is equal to one
    D. In no case, devaluation can improve the balance of payment disequilibrium if either the price elasticities of demand for
    export or that of import is zero.
    E. Marshall-Lerner condition has no relation with BOP situation.
    Choose the correct answer from the options given below:

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

    Answer: (D) A, B and C only

    Explanation

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  65. Question 65

    Match List-I with List-II.

    List-IList-II
    A. One firm sets its output before other firms do.I. Cournot model
    B. Each firm correctly assumes how much its competitor will produce and sets its own production level.II. Bertrand model
    C. Firms are reluctant to change price even if costs or demand change.III. Stackelberg model
    D. Each firm treats the price of its competitors as fixed and all firms decide simultaneously what price to charge.IV. Sweezy model
    1. AA-III, B-II, C-IV, D-I
    2. BA-II, B-III, C-IV, D-I
    3. CA-III, B-I, C-IV, D-II
    4. DA-II, B-IV, C-II, D-I

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

    Explanation

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  66. Question 66

    Match List-I with List-II.

    List-IList-II
    A. Robert SolowI. Neoclassical growth theory
    B. Paul Romer and Robert LucasII. Unemployment-output
    C. Paul SamuelsonIII. Endogenous growth theory
    D. OkunIV. Foundation of economic growth
    1. AA-II, B-III, C-I, D-IV
    2. BA-I, B-II, C-III, D-IV
    3. CA-I, B-III, C-IV, D-II
    4. DA-IV, B-III, C-I, D-II

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

    Explanation

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  67. Question 67

    Match List-I with List-II.

    List-IList-II
    A. Detecting serial correlationI. Goldfeld-Quandt test
    B. Detection of heteroscedasticityII. The Runs test
    C. Detection of multicollinearityIII. Ramsey RESET test
    D. Test of specification errorIV. Condition index
    1. AA-III, B-II, C-I, D-IV
    2. BA-II, B-I, C-III, D-IV
    3. CA-II, B-I, C-IV, D-III
    4. DA-III, B-I, C-IV, D-II

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

    Explanation

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  68. Question 68

    Match List-I with List-II.

    List-IList-II
    A. Linear functionI. Constant slope
    B. Exponential functionII. Constant percentage growth
    C. Quadratic functionIII. U-shaped/parabolic curve
    D. Cubic functionIV. S-shaped curve
    1. AA-IV, B-II, C-I, D-III
    2. BA-I, B-IV, C-II, D-II
    3. CA-IV, B-I, C-II D-III
    4. DA-IV, B-III, C-II, D-I

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

    Explanation

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  69. Question 69

    Match List-I with List-II.

    List-IList-II
    A. Metzler paradoxI. Violation of Stolper-Samuelson theorem
    B. Beachhead effectII. Exporters may be reluctant to increase prices by the full amount of dollar depreciation
    C. Dutch diseaseIII. Loss of relative competitiveness in its traditional industrial sector
    D. J-curveIV. Nation’s trade balance may worsen soon after devaluation or depreciation
    1. AA-II, B-III, C-IV, D-I
    2. BA-III, B-IV, C-II, D-I
    3. CA-I, B-II, C-III D-IV
    4. DA-IV, B-III, C-II, D-I

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

    Explanation

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  70. Question 70

    Match List-I with List-II.

    List-IList-II
    A. Principal-agent problemI. Use of resources more than desirable
    B. Moral hazard problemII. One’s actions are unobserved but can affect the magnitude of payment
    C. Tragedy of commonsIII. An individual pursues his/her own goal rather than the employer’s goal
    D. Problem of lemonsIV. Sellers have better information about product quality than buyers
    1. AA-III, B-II, C-I, D-IV
    2. BA-IIl, B-II, C-IV, D-I
    3. CA-IV, B-III, C-I D-II
    4. DA-I, B-II, C-IV, D-III

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

    Explanation

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  71. Question 71

    Match List-I with List-II.

    List-IList-II
    A. Launch of S&P CNX NiftyI. July 1995
    B. Establishment of Investor Protection Fund in NSEII. May 1998
    C. Launch of NSE website www.nseindia.comIII. April 1996
    D. NSE recognized as a stock exchangeIV. April 1993
    1. AA-III, B-II, C-I, D-IV
    2. BA-III, B-I, C-II, D-IV
    3. CA-II, B-IV, C-III, D-I
    4. DA-II, B-II, C-IV, D-I (4) 4 (2) 2 (3) 3 (4) 4 Gali ae Gal no or Has wife cist ao A. feats 0 a as PET TUR 1. feels 1995 B. RAGS Haat Gea HIG Hl VT IL. As 1998 C. [AWS Hl daaige wwwanseindia com @I JYRY IIL. SWeT 1996 D. [AWS OI Mi UR & SU Ff Aa Vad 1 as IV. [sa 1993 fred fau 7a famedt FS Gel SR HI A Hifee:

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

    Explanation

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  72. Question 72

    Match List-I with List-II.

    List-IList-II
    A. Karl MarxI. Division of labour
    B. Adam SmithII. Big Push Theory
    C. R. RodanIII. Traditional Society
    D. W. W. RostowIV. Reserve army
    1. AA-III, B-II, C-I, D-IV
    2. BA-IV, B-I, C-III, D-II
    3. CA-I, B-III, C-IV, D-II
    4. DA-IV, B-I, C-II, D-III

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

    Explanation

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  73. Question 73

    Match List-I with List-II.

    States2011 Population (in thousands)
    A. RajasthanI. 91,276
    B. Tamil NaduII. 68,548
    C. West BengalIII. 72,627
    D. Madhya PradeshIV. 72,147
    1. AA-II, B-IV, C-I, D-III
    2. BA-IV, B-II, C-I, D-III
    3. CA-II, B-I, C-IV, D-III
    4. DA-II, B-I, C-IV, D-II

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

    Explanation

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  74. Question 74

    Match List-I with List-II.

    OrganizationYear of establishment
    A. NABARDI. 1964
    B. IFCIII. 1955
    C. IDBIIII. 1948
    D. ICICIIV. 1982
    1. AA-I, B-IV, C-III, D-II
    2. BA-II, B-I, C-IV, D-III
    3. CA-IV, B-III, C-I, D-II
    4. DA-III, B-II, C-I, D-IV

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

    Explanation

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  75. Question 75

    According to the IMF's World Economic Outlook report, arrange the estimated real GDP Growth rate (YOY) of the
    following countries for the year 2021 in descending order.
    A. USA
    B. Germany
    C. United Kingdom
    D. China
    E. India
    Choose the correct answer from the options given below:

    1. AD, E, C, B, A
    2. BE, D, C, A, B
    3. CE, C, D, A, B
    4. DD, E, B, C, A

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

    Explanation

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  76. Question 76

    Arrange the Nobel laureates in Economics as per their year of receiving award in descending order.
    A. Amartya Sen
    B. Paul Krugman
    C. James Tobin
    D. Friedrich Hayek
    E. Milton Friedman
    Choose the correct answer from the options given below:

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

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

    Explanation

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  77. Question 77

    Arrange the following in descending order on the basis of year of starting the scheme
    A. Jal Jeevan mission
    B. Swachh Bharat Mission (Gramin)
    C. Pradhan Mantri Awas Yojana (Gramin)
    D. Pradhan Mantri Sadak Yojana (Gramin)
    E. Pradhan Mantri Koushal VikashYojana
    Choose the correct answer from the options given below:

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

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

    Explanation

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  78. Question 78

    Arrange the followings in ascending order on the basis of Fund Allocation (Budget 2022-23)
    A. Ministry of Railways
    B. Ministry of Defence
    C. Ministry of Agriculture and Farmers Welfare
    D. Ministry of Road Transport and Highways
    E. Ministry of Rural Development.
    Choose the correct answer from the options given below:

    1. AA C, DBE
    2. BE,B,C,D,A
    3. CC,E,A,D,B
    4. DB,C,D,E,A

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

    Explanation

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  79. Question 79

    Arrange the following sources of revenue as per their share of contribution to totalrevenue in Union Budget 2022-23 in
    descending order.
    A. Custom Duty
    B. Income Tax
    Cc. GST
    D. Union Excise Duty
    E. Non debt capital receipts.
    Choose the correct answer from the options given below:

    1. AE, B, C, D, A
    2. BE, C, B, D, A
    3. CC, B, D, A, E
    4. DC, B, A, D, E

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

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  80. Question 80

    According to CMIE data (September 2022), arrange the states in descending order based on unemployment rate
    A. Haryana
    B. Rajasthan
    C. Jammu Kashmir
    D. Jharkhand
    E. Tripura.
    Choose the correct answer from the options given below:

    1. AA,C, DL E.B
    2. BB,C,A,D,E
    3. C.A, B,C, D,E
    4. DB,C,A,E,D

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

    Explanation

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  81. Question 81

    Arrange the states in ascending order based on population who are multidimensionally poor as per NITI Aayog Report 2021.
    A. Punjab
    B. Kerala
    C. Sikkim
    D. Goa
    E. Tamil Nadu.
    Choose the correct answer from the options given below:

    1. AB, D, C, E, A
    2. BD, E, B, C, A
    3. CA, E, D, B, C
    4. DC, B, A, D, E

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

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  82. Question 82

    Arrange the following policy rate (as on 31-12-2022) of the RBI in the descending order of their magnitude.
    A. Repo rate
    B. Bank rate
    Cc. CRR
    D. SLR
    E. Reserve repo Rate.
    Choose the correct answer from the options given below:

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

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

    Explanation

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  83. Question 83

    Arrange the following chronologically in order to their year of first occurrence starting from oldest:
    A. Liquidity Preference Theory
    B. Multiplier by R.F. Kahn
    C. Division of Labour, Adam Smith
    D. Quantity theory of Money, Fisher
    E. Great Depression.
    Choose the correct answer from the options given below:

    1. AC,E,B,A,D
    2. BE,D,C,B,A
    3. C.B, 6) D, BA
    4. DB,A,D,C,E

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

    Explanation

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  84. Question 84

    Arrange the following organizations as per their years of establishment starting from the oldest.
    A. WTO
    B. ADB
    C. UNCTAD
    D. World Bank
    E. WIPO.
    Choose the correct answer from the options given below:

    1. AD, C, B, E, A
    2. BD, B, C, E, A
    3. CD, B, C, A, E
    4. DD, B, A, C, E

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

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  85. Question 85

    Assertion (A): A form of market failure results when products of different qualities are sold at a single price.
    Reason (R): A buyer and a seller possess different information about the product transacted.
    In the light of the above statements, choose the most appropriate answer from the options given below:

    1. ABoth A and R are true and R is the correct explanation of A
    2. BBoth A and R are true but R is not the correct explanation of A
    3. CA is true but R is false
    4. DA is false but R is true

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

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  86. Question 86

    Given below are two statements :
    Statement I : When the level of investment is itself determined within the system then the effectiveness of monetary policy
    is enhanced by an elastic investment and inelastic liquidity preference schedule, whereas the opposite holds for the
    effectiveness of fiscal policy.
    Statement II : Monetary policy, by accommodating fiscal policy may forestall the crowding out effect.
    In the light of the above statements, choose the correct answer from the options given below:

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

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

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  87. Question 87

    Given below are two statements :
    Statement I : Capital deepening is the process by which capital grows at a faster rate than labour and the capital labour ratio
    rises.
    Statement II: The growth of output per worker is result of technological change which decreases output per worker for a
    given capital/labour ratio.
    In the light of the above statements, choose the most appropriate answer from the options given below:

    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

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  88. Question 88

    Given below are two statements :
    Statement I : Countries always want to have foreign markets open for their exporters. But if a country limits access to its
    own market, foreign countries may take action to limit access to their own market.
    Statement II : Trade agreement can help lower barrier to international commerce, but countries still have to believe that other
    countries are "playing fair".
    In the light of the above statements, choose the correct answer from the options given below:

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

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

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  89. Question 89

    Given below are two statements :
    Statement I : The IS curve is negatively sloped because an increase in the interest rate reduces planned investment spending
    and therefore reduces the equilibrium level of income.
    Statement II : The smaller the multiplier and the less sensitive investment spending is to changes in the interest rate, the
    steeper is the IS curve.
    In the light of the above statements, choose the correct answer from the options given below:

    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

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  90. Question 90

    What conflict do bankers face while channelizing saving into investment?

    The Nobel Prize in Economics in 2022 was awarded to Ben S. Bernanke, Douglas W. Diamond and Philip H. Dybvig for research on banks and financial crises. One important finding in their research is why avoiding bank collapses is vital. Savings must be channelled to investment for the functioning and growth of any economy, but a conflict arises: savers want instant access to their money for unexpected outlays, while borrowers need assurance that they will not be forced to repay loans prematurely. Diamond and Dybvig show how banks offer an optimal solution by acting as intermediaries that accept deposits from savers, allow access to money when savers wish, and also offer long-term loans to borrowers. Their analysis also shows that banks are vulnerable to rumours; when many savers simultaneously run to withdraw their money, a bank run occurs and the bank may collapse. Such dynamics can be prevented by government deposit insurance and by acting as lender of last resort. Diamond also demonstrated that banks, as intermediaries between savers and borrowers, are better placed to assess borrowers' creditworthiness and ensure that loans are used for good investments.

    1. AWhile the borrowers want instant closing of the loan, the savers wants systematic withdrawals.
    2. BWhile the savers want instant access to their money, the borrowers want to repay their loans, only when it matures.
    3. CWhile the savers want instant closing of the loan, the borrowers demand more loan than their credit worthiness.
    4. DBoth the savers and borrowers want to close the loan immediately.

    Answer: (B) While the savers want instant access to their money, the borrowers want to repay their loans, only when it matures.

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  91. Question 91

    What solution does Diamond and Dybvig's theory offer to the conflict faced by bankers while channelizing savings into investments?

    The Nobel Prize in Economics in 2022 was awarded to Ben S. Bernanke, Douglas W. Diamond and Philip H. Dybvig for research on banks and financial crises. One important finding in their research is why avoiding bank collapses is vital. Savings must be channelled to investment for the functioning and growth of any economy, but a conflict arises: savers want instant access to their money for unexpected outlays, while borrowers need assurance that they will not be forced to repay loans prematurely. Diamond and Dybvig show how banks offer an optimal solution by acting as intermediaries that accept deposits from savers, allow access to money when savers wish, and also offer long-term loans to borrowers. Their analysis also shows that banks are vulnerable to rumours; when many savers simultaneously run to withdraw their money, a bank run occurs and the bank may collapse. Such dynamics can be prevented by government deposit insurance and by acting as lender of last resort. Diamond also demonstrated that banks, as intermediaries between savers and borrowers, are better placed to assess borrowers' creditworthiness and ensure that loans are used for good investments.

    1. ABanks assure instant access to money to the savers and terminate long term project of borrowers
    2. BBanks assure long-term finance to borrowers and terminate the savers' accounts
    3. CBanks act as intermediaries that accept deposits from savers and allow them access to their money when they wish, while also offering long term loans to borrowers
    4. DAll the above options were offered by Diamond and Dybvig's theory

    Answer: (C) Banks act as intermediaries that accept deposits from savers and allow them access to their money when they wish, while also offering long term loans to borrowers

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  92. Question 92

    What can lead to the imminent collapse of banks according to the passage?

    The Nobel Prize in Economics in 2022 was awarded to Ben S. Bernanke, Douglas W. Diamond and Philip H. Dybvig for research on banks and financial crises. One important finding in their research is why avoiding bank collapses is vital. Savings must be channelled to investment for the functioning and growth of any economy, but a conflict arises: savers want instant access to their money for unexpected outlays, while borrowers need assurance that they will not be forced to repay loans prematurely. Diamond and Dybvig show how banks offer an optimal solution by acting as intermediaries that accept deposits from savers, allow access to money when savers wish, and also offer long-term loans to borrowers. Their analysis also shows that banks are vulnerable to rumours; when many savers simultaneously run to withdraw their money, a bank run occurs and the bank may collapse. Such dynamics can be prevented by government deposit insurance and by acting as lender of last resort. Diamond also demonstrated that banks, as intermediaries between savers and borrowers, are better placed to assess borrowers' creditworthiness and ensure that loans are used for good investments.

    1. AFraudulent behaviour of the borrowers
    2. BIncreasing competition in the banking sector
    3. CWhen a large number of savers simultaneously withdraw their money
    4. DWhen a large number of borrowers simultaneously borrow money from the bank

    Answer: (C) When a large number of savers simultaneously withdraw their money

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  93. Question 93

    How can such dangerous banking dynamics be prevented?

    The Nobel Prize in Economics in 2022 was awarded to Ben S. Bernanke, Douglas W. Diamond and Philip H. Dybvig for research on banks and financial crises. One important finding in their research is why avoiding bank collapses is vital. Savings must be channelled to investment for the functioning and growth of any economy, but a conflict arises: savers want instant access to their money for unexpected outlays, while borrowers need assurance that they will not be forced to repay loans prematurely. Diamond and Dybvig show how banks offer an optimal solution by acting as intermediaries that accept deposits from savers, allow access to money when savers wish, and also offer long-term loans to borrowers. Their analysis also shows that banks are vulnerable to rumours; when many savers simultaneously run to withdraw their money, a bank run occurs and the bank may collapse. Such dynamics can be prevented by government deposit insurance and by acting as lender of last resort. Diamond also demonstrated that banks, as intermediaries between savers and borrowers, are better placed to assess borrowers' creditworthiness and ensure that loans are used for good investments.

    1. AReduce lending
    2. BIncrease lending
    3. CCollaboration with other banks
    4. DGovernment should provide deposit insurance and act aslender of last resort. q@)4 (2) 2 (3) 3 (4) 4 apalel & ORY dept Hl fearel Mace F Ga & fae GRR Halal & aa Yara faw

    Answer: (D) Government should provide deposit insurance and act aslender of last resort. q@)4 (2) 2 (3) 3 (4) 4 apalel & ORY dept Hl fearel Mace F Ga & fae GRR Halal & aa Yara faw

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  94. Question 94

    What socially important function of banks was demonstrated by Diamond?

    The Nobel Prize in Economics in 2022 was awarded to Ben S. Bernanke, Douglas W. Diamond and Philip H. Dybvig for research on banks and financial crises. One important finding in their research is why avoiding bank collapses is vital. Savings must be channelled to investment for the functioning and growth of any economy, but a conflict arises: savers want instant access to their money for unexpected outlays, while borrowers need assurance that they will not be forced to repay loans prematurely. Diamond and Dybvig show how banks offer an optimal solution by acting as intermediaries that accept deposits from savers, allow access to money when savers wish, and also offer long-term loans to borrowers. Their analysis also shows that banks are vulnerable to rumours; when many savers simultaneously run to withdraw their money, a bank run occurs and the bank may collapse. Such dynamics can be prevented by government deposit insurance and by acting as lender of last resort. Diamond also demonstrated that banks, as intermediaries between savers and borrowers, are better placed to assess borrowers' creditworthiness and ensure that loans are used for good investments.

    1. ASince banks act as intermediaries between savers and borrowers, they have better idea about the creditworthiness of the borrowers and hence can ensure loans are used for good investments.
    2. BSince banks want to maximize profits, it can ensure loans are used for good investments
    3. CSince bank want to benefit their customers, they can ensure that loans are used for good investment.
    4. DBanks do not have enough information to ensure loans are used for good investment

    Answer: (A) Since banks act as intermediaries between savers and borrowers, they have better idea about the creditworthiness of the borrowers and hence can ensure loans are used for good investments.

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  95. Question 95

    For which purpose was G-20 originally founded?

    India's Presidency of the Group Twenty (G-20) is a matter of great pride for all Indians. The G-20 is an intergovernmental forum consisting of 19 countries and the European Union. It was founded in 1999 after the Asian financial crisis as a forum for international economic cooperation. G-20 members represent around 85% of global GDP, over 75% of global trade and 67% of world population. The summit is held annually under a rotating presidency. India assumed the G-20 presidency from Indonesia on December 1, 2022 and will host the leaders' summit in 2023. The theme of India's presidency is "Vasudhaiva Kutumbakam", or "One Earth, One Family and One Future", closely tied with LIFE (Lifestyle for Environment). The G-20 consists of two tracks: the Finance track and the Sherpa track. India's priorities include green development, climate finance and LIFE; accelerated inclusive and resilient growth; progress on SDGs; technological transformation and digital public infrastructure; multilateral institutions for the 21st century; and women-led development.

    1. Ato discuss international peace and counter-terrorism issues
    2. Bto discuss global economic and financial issues
    3. Cto discuss climate change and environmental issues
    4. Dto discuss resolving the war between Russia and Ukraine

    Answer: (B) to discuss global economic and financial issues

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  96. Question 96

    Which one of the following is not India's G-20 priorities?

    India's Presidency of the Group Twenty (G-20) is a matter of great pride for all Indians. The G-20 is an intergovernmental forum consisting of 19 countries and the European Union. It was founded in 1999 after the Asian financial crisis as a forum for international economic cooperation. G-20 members represent around 85% of global GDP, over 75% of global trade and 67% of world population. The summit is held annually under a rotating presidency. India assumed the G-20 presidency from Indonesia on December 1, 2022 and will host the leaders' summit in 2023. The theme of India's presidency is "Vasudhaiva Kutumbakam", or "One Earth, One Family and One Future", closely tied with LIFE (Lifestyle for Environment). The G-20 consists of two tracks: the Finance track and the Sherpa track. India's priorities include green development, climate finance and LIFE; accelerated inclusive and resilient growth; progress on SDGs; technological transformation and digital public infrastructure; multilateral institutions for the 21st century; and women-led development.

    1. AMultilateral Institutions for 21st century
    2. BWomen-led development
    3. CDevelopment and sustained border
    4. DTechnological transformation and digital public infrastructure.

    Answer: (C) Development and sustained border

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  97. Question 97

    The size of G-20 in terms of world population, global GDP and global trade respectively is:

    India's Presidency of the Group Twenty (G-20) is a matter of great pride for all Indians. The G-20 is an intergovernmental forum consisting of 19 countries and the European Union. It was founded in 1999 after the Asian financial crisis as a forum for international economic cooperation. G-20 members represent around 85% of global GDP, over 75% of global trade and 67% of world population. The summit is held annually under a rotating presidency. India assumed the G-20 presidency from Indonesia on December 1, 2022 and will host the leaders' summit in 2023. The theme of India's presidency is "Vasudhaiva Kutumbakam", or "One Earth, One Family and One Future", closely tied with LIFE (Lifestyle for Environment). The G-20 consists of two tracks: the Finance track and the Sherpa track. India's priorities include green development, climate finance and LIFE; accelerated inclusive and resilient growth; progress on SDGs; technological transformation and digital public infrastructure; multilateral institutions for the 21st century; and women-led development.

    1. A85%, 75% and 67%
    2. B67%, 75% and 85%
    3. C75%, 85% and 67%
    4. D67%, 85% and 75%

    Answer: (D) 67%, 85% and 75%

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  98. Question 98

    The theme of India's G-20 presidency is tied closely with:

    India's Presidency of the Group Twenty (G-20) is a matter of great pride for all Indians. The G-20 is an intergovernmental forum consisting of 19 countries and the European Union. It was founded in 1999 after the Asian financial crisis as a forum for international economic cooperation. G-20 members represent around 85% of global GDP, over 75% of global trade and 67% of world population. The summit is held annually under a rotating presidency. India assumed the G-20 presidency from Indonesia on December 1, 2022 and will host the leaders' summit in 2023. The theme of India's presidency is "Vasudhaiva Kutumbakam", or "One Earth, One Family and One Future", closely tied with LIFE (Lifestyle for Environment). The G-20 consists of two tracks: the Finance track and the Sherpa track. India's priorities include green development, climate finance and LIFE; accelerated inclusive and resilient growth; progress on SDGs; technological transformation and digital public infrastructure; multilateral institutions for the 21st century; and women-led development.

    1. AVasudhaiva Kutumbakam
    2. BOne earth, one family and one future
    3. CTechnology, Infrastructure and SDG
    4. DLife style for environment

    Answer: (D) Life style for environment

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  99. Question 99

    The tracks in G-20 are:

    India's Presidency of the Group Twenty (G-20) is a matter of great pride for all Indians. The G-20 is an intergovernmental forum consisting of 19 countries and the European Union. It was founded in 1999 after the Asian financial crisis as a forum for international economic cooperation. G-20 members represent around 85% of global GDP, over 75% of global trade and 67% of world population. The summit is held annually under a rotating presidency. India assumed the G-20 presidency from Indonesia on December 1, 2022 and will host the leaders' summit in 2023. The theme of India's presidency is "Vasudhaiva Kutumbakam", or "One Earth, One Family and One Future", closely tied with LIFE (Lifestyle for Environment). The G-20 consists of two tracks: the Finance track and the Sherpa track. India's priorities include green development, climate finance and LIFE; accelerated inclusive and resilient growth; progress on SDGs; technological transformation and digital public infrastructure; multilateral institutions for the 21st century; and women-led development.

    1. AFinance track and Sherpa track
    2. BSherpa track and Economics track
    3. CClimate track and Sherpa track
    4. DSherpa track and SDGs track

    Answer: (A) Finance track and Sherpa track

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Frequently asked questions

How many questions were in the UGC NET Economics March 2023 exam?

Paper 1 had 99 questions and Paper 2 (Economics) had 199 questions, for 298 in total across 3 hours.

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No. Each correct answer earns 2 marks and there is no penalty for a wrong answer, so leaving a question blank is never better than attempting it.

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