PSC HSST Economics SC/ST Model Questions and Answers

51. Two unbiased dies are tossed simultaneously, what is the probability that the sum of the outcomes would be eleven
(A) 1/4
(B) 1/18
(C) 1/36
(D) 1/6
Answer: B

52. The value of second order differential of (Total Revenue – Total Cost) a profit maximiser will be
(A) zero
(B) positive
(C) negative
(D) not defined
Answer: C

53. The difference between collected data and actual value is called
(A) random error
(B) statistical error
(C) sampling error
(D) both (B) and (C)
Answer: D

54. Which of the following is known as parametric test?
(A) F-test
(B) Z-test
(C) t-test
(D) All the above
Answer: D

55. Inverse probability is also known as
(A) Bayesian probability
(B) Neyman probability
(C) Egon probability
(D) Poisson probability
Answer: A

56. In a college 60% of the students play football, 50% of the students play basketball, 30% of the students play both football and basketball. Find the probability that students play neither of the sports
(A) 80
(B) 0.90
(C) 0.50
(D) 0.20
Answer: D

57. In a regression involving time series data with successive observations showing interdependency, i.e. `”E (U_iU_j)” !=0` this is popularly known as
(A) Linear correlation
(B) Auto correlation
(C) Non-linearcorrelation
(D) Multicollinearity
Answer: B

58. In economic analysis when dependent variables are essentially qualitative we make use of
(A) Spearman Co-efficient
(B) Quality variables
(C) Dummy variables
(D) Estimator
Answer: C

59. Accepting a hypothesis which is false is called
(A) Type I Error
(B) Type II Error
(C) Absolute error
(D) More information required
Answer: B

60. In matrix, inverse is defined only in case of
(A) Singular matrix
(B) Non-singular matrix
(C) Row matrix
(D) Plural matrix
Answer: B

61. The official call for a New International Economic Order was first originated by
(A) UN General Assembly in 1974
(B) UNIDO in 1975
(C) IMF in 1980
(D) UNCTAD in 1987
Answer: A

62. The degree of inequality is measured using
(A) Kuznet’s inverted U curve
(B) Offer curve
(C) Lorenz curve
(D) Laffer curve
Answer: C

63. An index which combines a measure of income per head with measures of life expectancy and adult literacy
(A) HPI
(B) HDI
(C) PGI
(D) PQLI
Answer: B

64. ‘Life sustenance, Self-esteem and freedom are the basic components or core values of development’ is the concept originally introduced by
(A) Amartya Sen
(B) Arthur Lewis
(C) D Goulet
(D) Michael P Todaro
Answer: C

65. If the ratio of marginal product is the same at the capital to labour ratio and equal proportional amounts of the two factors are saved, then it is
(A) Labour Saving Technical Progress
(B) Capital Saving Technical Progress
(C) Neutral Technical Progress
(D) Inventive and Innovative Technical Progress
Answer: C

66. Who authored the book “Economic Development with Unlimited Supplies of Labour”?
(A) T.W. Schultz
(B) Mark Blaug
(C) John Fei and Gustav Ranis
(D) Arthur Lewis
Answer: D

67. The relationship between the growth of productivity and growth of industry is referred to as
(A) Verdoon’s law
(B) Wagner’s law
(C) Okun’s law
(D) Law of variable proportions
Answer: A

68. The process of economic development is regarded as a ‘Chain of Dis-equilibria’ is associated with
(A) Ragnar Nurkse
(B) A.O. Hirshman
(C) P.N. Rosenstein Rodan
(D) H. Leibenstein
Answer: B

69. India’s 3rd Five Year Plan is said to be based on
(A) Domar Model
(B) Feldman Model
(C) Ashok Rudra Model
(D) S. Chakravarthy Model
Answer: D

70. The synchronized allocation of available capital in every sectors to meet the target of economic development in UDCs, is the idea behind
(A) Big Push Theory
(B) Balanced Growth Strategy
(C) Unbalanced Growth Strategy
(D) Critical Minimum Effort Thesis
Answer: B

71. The only state where females outnumber males is
(A) Karnataka
(B) Kerala
(C) Tamilnadu
(D) Bihar
Answer: B

72. Economic reforms were started in India in
(A) 1991
(B) 1992
(C) 1993
(D) 1994
Answer: A

73. The second five year plan gave priority to
(A) Agriculture
(B) Heavy capital goods industries
(C) Services
(D) Tourism
Answer: B

74. HDI is related to measure
(A) Economic growth
(B) Economic development
(C) Underdevelopment
(D) Stationary State
Answer: B

75. Lorenz curve measures
(A) Economic equality
(B) Economic inequality
(C) Income inequality
(D) All of the above
Answer: C