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

51. The theory of vicious circle deals with
(A) Full employment
(B) Imperfect markets
(C) Poverty
(D) Inequality
Answer: C

52. The marginal productivity of labour under the state of disguised unemployment is
(A) Equal to one
(B) Equal to zero
(C) Greater than one
(D) Equal or greater than one
Answer: B

53. The theory of Economic development with unlimited supplies of labour argues for
(A) Promotion of DPA and SOC in the economy to absorb excess labour
(B) Improvement of agriculture to provide more employment
(C) Unlimited supply of labour at the current market wage
(D) Shifting of labour with zero marginal productivity from agriculture to industry
Answer: D

54. The technique which provides numerical solution to the problem of making optimum in the context of given constraints
(A) Linear programming
(B) Shadow pricing
(C) The incremental capital-output ratio
(D) Choice of technique
Answer: A

55. The book ‘Asian Drama’ has been written by
(A) Gunar Myrdal
(B) C. P. Kindleberger
(C) A. P. Thrilwall
(D) Ragnar Nurkse
Answer: A

56. In the model of Golden Age, equilibrium is attained when
(A) Growth rate of labour is equal to the growth rate of technology
(B) Incremental saving is equal to investment
(C) Rate of growth of capital is equal to the rate of growth of labour
(D) COR is equal to ICOR
Answer: C

57. The knife edge equilibrium is attained at the point where
(A) Gn > Gw > G
(B) Gn = Gw
(C) G = Gn
(D) G = Gn = Gw
Answer: D

58. P. C. Mahalanobis was the architect of
(A) First five year plan
(B) Second five year plan
(C) Third five year plan
(D) Fourth five year plan
Answer: B

59. The Planning Commission has been replaced in India by
(A) Finance Commission
(B) Niti Aayog
(C) Council for Economic Development
(D) Indian Economic Forum
Answer: B

60. The National Bank for Agriculture and Rural Development (NABARD) was established in the year
(A) 1964
(B) 1969
(C) 1982
(D) 1991
Answer: C

61. The situation where a country simultaneously import and export the same product is called
(A) International reciprocal trade
(B) Internal reciprocal trade
(C) Factor reversal trade
(D) Intra-industry trade
Answer: D

62. The phenomenon of Dutch Disease has been advanced to explain the existence of
(A) Traded goods sector in an economy
(B) Non traded goods sector in an economy
(C) Differentiated goods in an economy
(D) Identical goods sector in an economy
Answer: B

63. Which of the following theory suggests that labour cost will be the determinant of trade and the country with the lower labour cost will be the exporter of that commodity ?
(A) Factor abundance theory
(B) Labour productivity theory
(C) Theory of comparative advantage
(D) Neo-Hotelling model
Answer: C

64. The dead weight loss of tariff implies
(A) Production loss and consumption loss due to tariff
(B) Revenue loss for the exporting country
(C) Revenue loss for the importing country
(D) Redistribution of loss between exporting and importing countries
Answer: A

65. The concepts of trade creation and trade diversion in the theory of customs union was introduced by
(A) Kemp and Wan
(B) J. N. Bhagwati
(C) Jacob Viner
(D) Geoffrey Reed
Answer: C

66. The first United Nations Conference on Trade and Development (UNCTAD) was held in
(A) Tokyo
(B) Rio De Generio
(C) New York
(D) Geneva
Answer: D

67. The investment in a foreign country where the investing party does not seek control over the investment is the typical case of
(A) Foreign direct investment
(B) Foreign portfolio investment
(C) Foreign tied fund
(D) Foreign untied fund
Answer: B

68. The current account in the BOP records
(A) Exports and imports of goods and services and unilateral transfers
(B) Exports and imports of goods and services only
(C) Export of goods and portfolio investment
(D) All international transaction including private and official
Answer: A

69. A floating exchange rate will be stable if
(A) An appreication of the domestic currency leads to an excess demand for the foreign currency
(B) A depreciation of the domestic currency leads to an excess demand for the foreign exchange
(C) An appreciation of the domestic currency leads to an excess supply of the foreign exchange
(D) None of the above
Answer: A

70. The factor which enables both exporters and importers to protect against the risk of exchange rate fluctuation is
(A) Arbitrage
(B) Speculation
(C) Hedging
(D) Devaluation
Answer: C

71. In the equation for consumption function C = a + bY, b means
(A) MPC
(B) MPS
(C) DPI
(D) Transfer payments
Answer: A

72. The density of population in India by the 2011 census is
(A) 301
(B) 324
(C) 339
(D) 382
Answer: D

73. The food grains production in India crossed 250 million tones for the first time during the year
(A) 1990-91
(B) 2001-02
(C) 2008-09
(D) 2011-12
Answer: D

74. During the last decade, the highest growth rate was recorded in India in the
(A) Manufacturing sector
(B) Agriculture and allied activities
(C) Service sector
(D) External sector
Answer: C

75. The average annual growth rate of the GDP in India during the post reform period is
(A) 6.5 percent
(B) 4.6 percent
(C) 5.0 percent
(D) 6.2 percent
Answer: A