India economics Model question papers previous years old question papers based

India economics Model question papers and previous years old question papers based
Based on Previous Years Question Papers – UPSC
Free online test economics BA graduate level
Objective practice Questions
Indian economics and economic theory

Directions : The following two (2) items consist of two statements, one labeled as the ‘Assertion (A) ‘and the other as ‘Reason ®. You are to examine these Two statements carefully and select the answers to these items using the code given below.
(a) Both A and R are individually true and It is the correct explanation of A
(b) Both A and R are individually true, but It is not the correct explanation of A
(c) A is true, butR is false
(d) A is false, but R is true
1. Assertion (A) Marginal cost curve is U-shaped.
Reason (R) : The law of variable proportions operates in production sphere.
2. Assertion (A) A firm under monopolistic competition incurs extra expenditure advertisement.
Reason (R) There is free entry and free exit of firms under monopolistic competition.
3. The production function for a commodity is given by Q = 10 √ LK, where Q the quantity of Output, L is the quantity of Labour and K is the quantity of Capital. Given the above information, which one of the following is the nature of return to scale throughout the function?
(a) Constant return to scale
(b) Decreasing return to scale only
(c) Increasing return to scale only
(d) Both decreasing and increasing return to scale
4. Consider the following statements:
1. In case of imperative planning, the market mechanism is entirely replaced by a command hierarchy, while in case of indicative planning, it is looked upon as a way to improve the functioning of market system.
2. In case of imperative planning, all economic activities belong to the public sector, while in case of indicative planning they belong to the private sector
Which of the statements given above is/are correct?
(a)1 only
(B) 2 only
(c)Both I and 2
(d) Neither 1 nor 2
5. Which one of the following shares in the net proceeds of shareable Central taxes has been recommended for the States by the 12th Finance Commission?
(a)29.00 per cent
(b) 28.50 per cent
(c)30.50 per cent
(d) 31.25 per cent
6. Usual Principal Status unemployment is calculated with reference to which one of the following periods?
(a)One week
(b) One month
(c)One year
(d) Five year
7. Who, among the following, were the pioneers in estimating poverty in India for rural and urban areas separately?
(a) P.K. Bardhan and U.S. Minhas
(B) V.M. Dandekar and N. Rath
(c) M. Ahluwalia and PD. Ojha
(d) E.P.W. DaCosta and N. Rath
8. Disguised unemployment generally exists in:
(a)manufacturing sector
(B)agriculture
(c)small scale industries
(d) urban societies
9. Which of the following statements is/are correct?
A rise in per capita income does not automatically imply an increase in economic welfare because
1. distribution of income is not known.
2, rate of growth is not known.
3. it suffers from the limitations of averages.
Select the correct answer using the code given below
(a)1 only
(b) 2 only
(c)1 and3
(d) l,2and3
10. Which of he following initiatives is/are identified by the 11th Five Year Plan for accelerating the ‘National e-governance programme’?
1. Making digital signatures mandatory for e-commerce, e-government, and e-banking initiatives.
2. Promoting technologies such as wireless fidelity (WiFi) for providing the last mile connectivity to the place where copper wiring is not possible.
Select the correct answer using the code given below
(a)1 only
(b) 2 only
(c)Both 1 and 2
(d) Neither 1 nor 2
11. Consider the following statements:
1. Countries with high per capita income do have high physical quality of life index (PQLI).
2. Countries with high PQLI need not necessarily have high per capita income.
Which of the statements given above is/are correct?
(a)1 only
(b) 2 only
(c)Both 1 and 2
(d) Neither 1 nor 2
12. Consider the following:
A good index number is one which satisfies
1.Unit test.
2. Time-reversal test.
3. Factor-reversal test.
Which of the statements given above is/are correct?
(a)1 only
(b) 2 only
(c)2and3
(d)1,2and3
13.The correlation coefficient is independent of
(a)scale only
(b) origin only
(c)both scale and origin
(d) vertex
14.. Which one of the following is referred to as lack of peakedness?
(a)Skewness
(b) Kurtosis
(c)Moments
(d) Mode
15 . The inequality of income can be measured by using:
(a) Mean
(h) Mean Deviation
(c) Standard Deviation
(d) Lorenz Curve
16 . Which one of the following is the value of mode if mean is equal to 12 and median is equal to 14?
(a) 16
(b) 26
(c) 15
(d) 13
17. The weighted average of price relatives, using base values as
weights, is same as the
(a) Laspeyres’ quantity index
(b) Paasche’s price index
(c) Laspeyres’ price index
(d) Kelly’s price index
18. If every item in a set of data is multiplied by a constant, which of
the following measures will remain unchanged?
(a) Arithmetic mean
(b) Geometric mean
(c) Variance
(d) Coefficient of variation
19. Elasticity of substitution in the case of linear-homogeneous production function equals to:
(a)unity
(b) more than unity
(c)less than unity
(d) zero
20. Consider the following statements
The kinked demand curve analysis helps to explain price inflexibility (rigidity) because ft implies that an oligopolist would:
I. gain few additional customers from a price reduction since the firm’s competitors would also reduce price.
2. lose many of its customers if it raised itu prices since rivals would not follow suit.
3. often find that MR = MC at the same output level even after costs had increased.
Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and2
(c)2and3
(d) 1,2and3

1	b
2	a
3	a
4	a
5	c
6	c
7	b
8	b
9	d
10	c
11	c
12	c
13	c
14	d
15	d
16	a
17	a
18	d
19	a
20	b

Posted in: Economics , Model paper , Practice paper , Question and Answers , Sample Paper , test