PSC HSST Economics SR for SC/ST Model Questions and Answers

26. When was India ratified the CEDOW treaty ?
(A) 1992
(B) 1993
(C) 1994
(D) 1995
Answer: C

27. Under which Constitution Article the Indian government enacted the Environment Protection Act of 1986 ?
(A) Article 253
(B) Article 256
(C) Article 324
(D) Article 328
Answer: A

28. Rural Landless Employment Guarantee Programme (RLEGP) was introduced in India on
(A) August 15, 1981
(B) August 15, 1983
(C) January 26, 1982
(D) January 26, 1984
Answer: B

29. The National Food Security Act was passed in the Indian Parliament in
(A) 1 August 2012
(B) 12 September 2013
(C) 15 January 2013
(D) 21 November 2014
Answer: B

30. NGOs receiving over 95% of their infrastructure funds from the government come under the Right to Information Act in the year
(A) 2012
(B) 2013
(C) 2014
(D) 2015
Answer: C

31. The process of deriving economic generalizations on the basis of observations and experiences is called
(A) Deductive method
(B) Inductive method
(C) Abstract method
(D) Analytical method
Answer: B

32. The book ‘Value and Capital’ has been authored by
(A) Karl Marx
(B) P. A. Samuelson
(C) E. E. Slutsky
(D) J. R. Hicks
Answer: D

33. The revealed preference theory is based on the postulation of
(A) Weak ordering preference
(B) Strong ordering preference
(C) Indifferent preferences
(D) Indeterminate preferences
Answer: B

34. In the production process a firm will shut down when the price falls below
(A) The average fixed cost
(B) The marginal cost
(C) The average variable cost
(D) The total cost
Answer: C

35. When a monopolist is able to sell each separate unit of a product at a different price, a situation of
(A) Price discrimination of first degree exists
(B) Price discrimination of second degree exists
(C) Price discrimination of third degree exists
(D) None of the above
Answer: A

36. In the kinked demand curve hypothesis, the segment of demand curve above the prevailing price is
(A) Highly inelastic
(B) Perfect inelastic
(C) Highly elastic
(D) Perfect elastic
Answer: C

37. The speculative demand for money is an inverse function of
(A) Income
(B) Marginal propensity to consume
(C) Marginal efficiency of capital
(D) Rate of interest
Answer: D

38. The constancy of labour share in the national income has been explained by Kalecki on the basis of
(A) The capitalist theory of distribution
(B) The monopoly theory of distribution
(C) The classical labour theory of value
(D) The Keynesian theory of national income
Answer: B

39. The marginal conditions to be fulfilled for the attainment of Pareto optimality were given by
(A) V. Pareto
(B) H. Robertson
(C) P. A. Samuelson
(D) Lerner and Hicks
Answer: D

40. Euler’s product exhaustion theorem will be applied only in the case of production functions with
(A) Diminishing returns to scale
(B) Constant returns to scale
(C) Increasing returns to scale
(D) Variable returns to scale
Answer: B

41. The fundamental assumption of Absolute Income Hypothesis is
(A) Consumption – Income relationship is reversible
(B) Consumption – Income relationship is irreversible
(C) Consumption – Income relationship is passive
(D) Consumption – Income relationship is indeterminate
Answer: A

42. In the Fishers equation of exchange MV = PT, the variable ‘V’ stands for
(A) Value of money
(B) Velocity of circulation of money
(C) Volume of goods and services
(D) Value of goods and services
Answer: B

43. The level of unemployment at which a constant rate of inflation may be maintained is called
(A) Mean rate of unemployment
(B) Actual rate of unemployment
(C) Warranted rate of unemployment
(D) Natural rate of unemployment
Answer: D

44. Money that has no intrinsic value but established by a government decree is known as
(A) Fiat money
(B) Commodity money
(C) Plastic money
(D) Real money
Answer: A

45. Money supply curve in the Keynesian analysis of liquidity preference is
(A) Vertical straight line
(B) Horizontal straight line
(C) Downward slopping curve
(D) None of the above
Answer: A

46. The LM curve will shift to right when there is an
(A) Increase in the rate of saving
(B) Increase in the investment
(C) Increase in the money supply
(D) Increase in the public borrowings
Answer: C

47. The basic proposition of the psychological law of consumption is that
(A) APC and MPC are equal
(B) APC is negative
(C) MPC is positive but less than unity
(D) MPC is always equal to one
Answer: C

48. The relationship between unemployment and the rate of change in the wage rate, according to A. W. Phillips is
(A) Inverse and non-linear
(B) Direct and proportional
(C) Direct but non proportional
(D) Inverse but linear
Answer: A

49. The expansion and contraction process in the business cycle model of Kaldaor is brought about by the
(A) Interaction between multiplier and accelerator
(B) Business expectations
(C) Stock of capital
(D) Technological shocks
Answer: C

50. Monetarism postulates that
(A) Money is a substitute for a wide range of real and financial assets but no single asset is a close substitute for money
(B) A fiscal-monetary mix will bring about stabilities
(C) Fiscal policy is more effective in curbing inflation and generating full employment
(D) Money is neutral and insignificant
Answer: A