List of practice Questions

Markets fail in the presence of
A. Market power
B. Positive Externalities
C. Negative Externalities
D. Competitive market
E. Asymmetric information
Choose the correct answer from the options given below:

Match List-I and List-II

LIST I		LIST II
A.	Private Goods	I.	Non-Rival in consumption and excludable
B.	Club Goods	II.	Rival in consumption and excludable
C.	Common Pool Resources	III.	Non-Rival in consumption and Non-excludable
D.	Public Goods	IV.	Rival in consumption and Non-excludable

Choose the correct answer from the options given below:

Which of the following statements are correct?
A. Life cycle hypothesis was propounded by Francois Modigliani
B. Absolute Income Hypothesis was propounded by Milton Friedman
C. Relative Income Hypothesis was propounded by James Duesenberry.
D. Permanent Income Hypothesis was propounded by John Maynard Keynes
Choose the correct answer from the options given below:

Data collected at a point in time are called

The budget presented in the Parliament on the 1^st of February 2023 for the financial year 2023-24 has the Revised Estimated (RE) and Actuals, of the financial years____ and _____ respectively.

A firm in a perfectly competitive market is making zero economic profit in the long run. It will have the incentive to:

Given below are two statements:
Statement I: In the extreme case of perfect price discrimination the dead weight loss of monopoly is completely eliminated and all the surplus in the market goes to the monopolist.
Statement II: Imperfect price discrimination necessarily increases welfare compared to the outcome of a single monopoly price.
In the light of the above statements, choose the most appropriate from the options given below:

Choose the correct statement(s) for an open economy:
A. Sterilisation implies nullifying the impact of foreign exchange transactions on domestic money supply.
B. In a sterilized intervention in the foreign exchange market by the central bank, a purchase of foreign assets should be matched by a sale of domestic assets.
C. In an open economy with fixed exchange rates and perfect capital mobility, the central bank can pursue independent monetary policy.
D. Sterilised intervention with perfect asset substitutability under fixed exchange rate allows the exchange rate to depreciate.
E. Real exchange rate can change only due to changes in nominal exchange rate.
Choose the correct answer from the options given below:

Among the new monetary aggregates of RBI (suggested by Y.V. Redy working group) which one includes time deposits of maturity up to 1 year but not longer maturity?

Which one of the following renowned economists was a member of the Royal Commission on Currency and Finance of 1913?

Match List-I and List-II

LIST I		LIST II
A.	Quantitative Theory of Money	I.	James Tobin
B.	Exchange Rate Overshooting	II.	Irving Fisher
C.	Law of One Price	III.	Rudiger Dornbusch
D.	Liquidity Inference as a Behaviour towards Risk	IV.	Gustav Cassel

Choose the correct answer from the options given below:

During the high noon of the British Empire, which of the following statement(s) is/are true?
A. Britain had a current account surplus with India, but a current account deficit with the rest of the world.
B. Britain had a current account deficit with India, but a current account surplus with the rest of the world.
C. Britain had a current account surplus with India and it had an even higher current account surplus with the rest of the world.
D. Britain had a current account deficit with India and even higher current account deficit with the rest of the world.
E. The current account surplus which Britain had with India was sufficient to tide over the current account deficit with the rest of the world.
Choose the correct answer from the options given below:

Given below are two statements:
Statement I: A large share of the expenditure in the government budget during the colonial period is referred to as Home charges and had to be paid in sterling.
Statement II: On the depreciation of the Indian rupee, the expenditure of the colonial government in India used to decrease because of this reason.
In the light of the above statements, choose the correct answer from the options given below:

The average of marks of 15 papers is 42. The average of marks of first 8 papers is 45 and that of the last 8 papers is 36. The marks of 8^th paper are:

10 years ago, the ratio of ages of Vikas and Amish was 1:3. If the ratio of their present ages is 3:5, then after five years the ratio of their ages will be:

What is the degree of homogeneity of f(x, y) =\(\frac{x^3}{y}+\frac{y^3}{x}\)?

The law of diminishing returns to a factor is observed when employment of additional units of a resource leads to

Match List-I and List-II

LIST I (Book)		LIST II (Author)
A.	An inquiry into the Nature and Causes of Wealth of Nations	I.	David Ricardo
B.	Principles of Political Economy and Taxation	II.	John Maynard Keynes
C.	Theories of Surplus Value	III.	Karl Marx
D.	General Theory of Employment Interest and Money	IV.	Adam Smith

Choose the correct answer from the options given below:

Which of the following are correct in presence of negative externalities?
A. Negative externalities lead to an inefficient allocation of resources.
B. Marginal external cost curve is added vertically to the private marginal cost curve to yield the social marginal cost curve.
C. The efficient level of output attained is more than the market equilibrium output.
D. The intersection of the marginal social cost curve with the demand curve gives the efficient level of output
Choose the correct answer from the options given below:

Given below are two statements:
Statement I: Coefficient of correlation can not be less than - 1.
Statement II: Regression coefficient can not be less than - 1.
In the light of the above statements, choose the correct answer from the options given below:

The Garran Tribunal was constituted during the colonial times to:

Consider an economy with perfect capital mobility, fixed price level and flexible exchange rate. What will be the effect of a rise in foreign interest rate on output?

This question consists of a question and two statements.
How is A related to B?
I. B is the wife of C. B and D are the only children of E. G is the only daughter of C. A is the grandaughter of E. 
II. G is married to H. B is mother-in-law of H. B is the only daughter of E and L. A is the grandchild of E.

What will be the next term of the given number series:
1,2,5,8,15,28,51 ?

A man is facing towards east and turns through 45° clockwise, again 180° clockwise and then turns through 270° anticlockwise. In which direction is he facing now?