R

POPULAR MASTER GUIDE

KVS-TEACHERS

Kendriya Vidyalaya Sangathan

PGT

ECONOMICS Recruitment Examination

T ES N T LA ITIO ED

Ample Study Material & Solved Questions for Practice l Solved Previous Year Paper l

5*XSWD V ® POPULAR MASTER GUIDE

KVS

Kendriya Vidyalaya Sangathan

PGT Post Graduate Teachers

ECONOMICS TEACHER Recruitment Exam by RPH Editorial Board

Published by O.P. Gupta for Ramesh Publishing House Admin. Office 12-H, New Daryaganj Road, Opp. Officers' Mess, New Delhi-110002 23261567, 23275224, 23275124 E-mail: [email protected] For Online Shopping: www.rameshpublishinghouse.com Showroom Balaji Market, Nai Sarak, Delhi-6 23253720, 23282525 4457, Nai Sarak, Delhi-6, 23918938 © Reserved with the Publisher No Part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical including photocopying, recording or by any transformation storage and retrieval system without written permission from the Publisher. Indemnification Clause: This book is being sold/distributed subject to the exclusive condition that neither the author nor the publishers, individually or collectively, shall be responsible to indemnify the buyer/user/possessor of this book beyond the selling price of this book for any reason under any circumstances. If you do not agree to it, please do not buy/accept/use/possess this book.

Book Code: R-1148 ISBN: 978-81-7812-882-5 HSN Code: 49011010

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Scheme of Written Examination Test Duration

150 Minutes

Total Questions

150 Objective type Multiple Choice Questions

Total Marks

150 Marks Section Name

Marks per Question

No. of Questions

01 mark

10

per question

10

Part-I : 1. General English 2. General Hindi Part-II : 1. General Knowledge & Current Affairs

10

2. Reasoning Ability

01 mark

10

3. Computer Literacy

per question

10

4. Pedagogy

20

5. Subject Concerned (Economics)

80

INTERVIEW: 60 Marks Note: The final merit list will be based on the performance of the candidates in Written Test and Interview. The weightage of Written Test and Interview will be 85:15.

R. Gupta's®Popular Master Guide

KVS–PGT TEACHERS Recruitment Exam

Useful For— English, General Knowledge & Current Affairs, Reasoning Ability, Computer Literacy & Pedagogy

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(iii)

CONTENTS Previous Years’ Paper, 2018 ......................................................................... 1-8 Previous Years’ Paper, 2017 ......................................................................... 1-8 1. Introduction .......................................................................................... 3–5 2. Consumer Behaviour and Demand ................................................. 6–45 3. Producer Behaviour and Supply ................................................... 46–73 4. Forms of Market and Price Determination .................................. 74–129 5. National Income and Related Aggretates .................................. 130–136 6. Determination of Income and Employment ............................... 137–156 7. Money and Banking .................................................................... 157–161 8. Government Budget and The Economy .................................... 162–173 9. Balance of Payments .................................................................. 174–181 10. International Economics ............................................................. 182–192 11. Statistics ....................................................................................... 193–218

Multiple Choice Questions............................................ 219–306 Indian Economy ............................................................. 307–376

(iv)

1 Previous Paper (Solved)

KVS-PGT ECONOMICS TEACHER Recruitment Exam-2018* Subject : Economics 4. As per population census 2011 what is India’s Child Sex Ratio (0.6 years)? A. 959 B. 938 C. 918 D. 898

1. Which of the following statement is/are correct? (a) Gross domestic savings in India increased from less than 10 per cent of GDP in 1950-51 to on an average more than 33 per cent of GDP during 2003-08. (b) Household sector remains the largest contributor in gross domestic savings in India during that period.

5. Favourable condition for fresh investment in an economy is: A. MEC = Interest rate B. MEC > Interest rate C. MEC < Interest rate D. Both MEC and Interest rate are unrelated for investment decisions.

Answer from the code below: A. (a) is correct, but (b) is incorrect. B. (b) is correct, but (a) is incorrect. C. Neither (a) nor (b) is correct. D. Both (a) and (b) are correct.

6. Compared to the social optimum, a monopoly firm chooses: A. quantity that is too low and price that is too high. B. quantity that is too high and price that is too low. C. quantity and price that are both too high. D. quantity and price that are both too low.

2. Which amongst the following statement about mutual funds in India is/are incorrect? (a) These are regulated R.B.I. (b) The units of all mutual fund schemes are traded on the Indian stock markets (c) Activities of the mutual funds in India are governed by M inistry of Finance Government of India

7. Which of the following item is not included in the balance of trade? A. Import of goods B. Export of goods C. Export of services D. Both import of goods and export of goods

Choose the correct answer from the code below: A. (a) and (b) are incorrect B. (b) and (c) are incorrect C. (a) is incorrect D. (a), (b) and (c) are incorrect

8. As per census 2011 what is the Literacy Rate in India? A. 73% B. 81% C. 84% D. 88%

3. According to Economic Survey 2017-18 Fiscal deficit for the year 2016-17 as per cent to GDP was: A. 3.5 B. 4.1 C. 3.9 D. 4.5 * Exam held on 23-12-2018.

9. The Kinked demand curve is reflected by: A. total revenue curve B. marginal cost curve 1

1148 (PGT–Eco.) 2018—1

2 C. average revenue curve D. marginal revenue curve 10. Which is correct in a situation of Excess demand? (a) Demand is less than the level of output produced at full employment. (b) It leads to decline in prices in the long run. Which of the above statements are correct? Answer from the code below: A. (a) is incorrect, but (b) is correct B. (a) is correct, but (b) is incorrect C. Both (a) and (b) are correct D. Neither (a) nor (b) is correct 11. If MPS is 0.3 and investment in the economy increases by ` 150 crore, what will be the increase in level of income? A. ` 450 crore B. ` 350 crore D. ` 550 crore C. ` 500 crore 12. Moving average is used to measure which of the following component of the time series? A. The trend B. The seasonal changes C. The random fluctuations D. The cyclical fluctuations 13. For a consumer in equilibrium, which of the following condition will hold: A. MRSX,Y =

PX PY

B. MRSX,Y =

PY PX

C. MRSX,Y =

PY MU Y  PX MU X

D. MRSX,Y =

MU Y MU X

14. A tariff of 20% per unit of imported cheese would be an example of: A. Compound tariff B. Effective tariff C. Ad valorem tariff D. Specific tariff

1148 (PGT–Eco.) 2018—1II

15. In continued episodes of high budget deficits, people tend to save more than before. This view is attributed to: A. H. Daulton B. A.C. Pigou C. D. Ricardo D. J.M. Keynes 16. Which amongst the following organizations publishes the World Happiness Index? A. World Economic Forum B. United Nations Development Programme C. United Nations Sustainable Development Project D. World Bank 17. Which of the following institutions affect supply of money? A. Central Bank B. Commercial Banks C. Both Central and Commercial Banks D. Treasury of the Central Government 18. According to RBI M 2 is composed of: A. M 1 + Demand deposits B. M 1 + Saving deposits of post offices C. M 1 + Time deposits of banks D. M 1 + Deposits with the central banks 19. The condition of Pareto optimality holds correct under: A. Monopolistic Competition B. Oligopoly C. Perfect Competition D. Monopoly 20. The comparative advantage model of Ricardo was based on: A. intra industry specialization and trade B. inter-industry specialization and trade C. demand conditions underlying specialization and trade D. income conditions underlying specialization and trade 21. Which one of the following sequence of events is chronologically correct? (a) Green Revolution (b) Nationalization of Commercial Banks in India (c) Great Leap Forward in China (d) Bangladesh Grameen Bank

3 Choose the answer from the code below: A. (c), (a), (d), (b) B. (b), (d), (a), (c) C. (c), (d), (b), (a) D. (c), (a), (b), (d) 22. The consum ption function shows the relationship between consumption expenditure and: A. the tax rate B. the interest rate C. disposable income D. savings 23. Reserve Bank of India was established on: A. April 12, 1932 B. April 01, 1935 C. May 02, 1943 D. November 13, 1941 24. Consider the following statements: The study of national income accounts is of great importance because it: (a) reveals the changes in the size and composition of the national product. (b) provide us with information about the distribution of national income in the society among various groups (c) reveals the manner in which national expenditure is divided betw een consumption and investment

(c) Harmonic Mean (d) Mode Choose the correct answer from the code below: A. (a) and (b) B. (c) and (d) C. (b) and (d) D. (a) and (d) 27. Which among the following states have Life Expectancy at Birth lower than the national average? A. West Bengal B. Uttar Pradesh C. Tamil Nadu D. Punjab 28. Read the following statements and answer from the options given below: (a) India’s Merchandise exports increased from less than US $ 100 billion prior to 2005-06 to over US $ 300 billion in 2011-12. (b) Imports during the same period grew at a faster rate theirby resulting higher merchandise trade deficit. Choose the correct option from below: A. Only (a) is correct B. Only (b) is correct C. Both (a) and (b) are correct D. Neither (a) nor (b) is correct

Which of the following is correct reply? A. (a) and (b) are correct B. (b) and (c) are correct C. (a) and (c) are correct D. (a), (b) and (c) are correct

29. Freely floating exchange rates describe the exchange regimes of : A. all minor countries. B. the major industrialised countries. C. very poor countries. D. poor and minor countries.

25. At the time excess demand condition in the economy; the government should do the following: A. Increase taxes B. Increase its expenditure C. Purchase bonds from public D. Increase Minimum wage rate

30. Which of the following sector was severely neglected by Indian planners during Nehru era? A. Heavy Industry B. Primary education C. Agriculture D. Science and Technology

26. For a grouped and continuous frequency distribution, which amongst the following can be graphically estimated? (a) Arithmetic mean (b) Median

31. Joan Robinson’s modern theory of rent states that rent is the difference between the actual payment for the use of land and its: A. average earnings B. marginal earnings C. transfer earnings D. monopoly earnings

4 32. A monopolistically competitive firm will increase its production if: A. price is greater than average cost. B. price is greater than marginal cost. C. marginal revenue is greater than marginal cost. D. marginal revenue is greater than average cost. 33. Restrictive and unfair trade practices are covered under: A. FEMA B. FERA C. Consumer Protection Act D. MRTP Act 34. The Cobb-Douglas production assumes that the elasticity of substitution is: A. One B. Two C. Three D. Four 35. What is the share of Agriculture in Gross Value Added (GVA) for the year 2017-18 in India? A. 25.9% B. 21.2% C. 16.4% D. 11.9% 36. Which amongst the following is not a nontax revenue of the Government of India? A. Interest receipts B. Dividend Receipts from public sector undertakings C. Fiscal services D. Surcharge and cess 37. If everyone in the economy increases the proportion of income they save, it leads to: A. Upward swing of AD line B. Downward swing of AD line C. Upward shift of AD line D. Downward shift of AD line 38. The central problem of economics is choice. This statement is closest to the definition of economics of who amongst the following: A. Alfred Marshall B. A.C. Pigou C. L. Robbins D. Adam Smith

39. The annual growth rate of population in India, beginning since 1971, has: A. continuously decreased B. continuously increased C. remained constant D. been fluctuating 40. The book “India : An Uncertain Glory” is authored by: A. Vijay Joshi and Jean Dreze B. Jean Dreze and Amartya Sen C. Amartya Sen and Vijay Joshi D. Raghuram Rajan and Vijay Joshi 41. IMF provide SDR to member country at: A. zero rate of interest B. at nominal and very low rate of interest C. at high rate of interest D. at high compound rate of interest 42. The equilibrium is unstable and indeterminate under: A. Edgeworth’s duopoly model B. Bertrand’s model C. Chamberlin’s oligopoly model D. Pareto model 43. Which of the following characteristic of a social goods is correct? A. Non-exclusion B. Non-equal consumption C. Non-rival D. Non-exclusion and non-rival 44. Monopolistic competition resembles pure competition because: A. barriers to entry are either weak or nonexistent. B. both emphasize non-price competition. C. in both instances firms will operate at the minimum point on their long-run average total cost curves. D. both industries entail the production of differentiated products. 45. According to FRBM Act 2003, the fiscal deficit of the Central Government cannot exceed: A. 2% of GDP B. 3% of GDP C. 3.5% of GDP D. 4% of GDP

5 46. Industrial (Development and Regulation) Act was passed by Indian Parliament in the year: A. 1947 B. 1951 C. 1956 D. 1975 47. Which amongst the following is/are correct for sustainable Development Goals? (a) These have been set by UNDP (b) These are to be achieved by the year 2030 (c) These goals are 17 in number Answer from the code given below: A. (a), (b) and (c) are correct B. (b) and (c) are correct C. Only (c) is correct D. (a) and (b) are correct 48. Who is the Chairman of 15th Finance Commission? A. Y.V. Reddy B. N.K. Singh C. M. Govinda Rao D. K.L. Kelkar 49. Which among the following state have highest Birth Rate in 2016? A. Madhya Pradesh B. Jharkhand C. Bihar D. Uttar Pradesh 50. Which of the following statement is not correct? A. With the increase in national income economic welfare increases. B. Equal distribution of national income also leads to increase in economic welfare. C. National income can become indicator of economic welfare. D. Unequal distribution of national income helps in increasing economic welfare. 51. Which of the following Government Schemes have been merged under AYUSHMAN BHA RAT — National H ealth Protection Mission? (a) Rashtriya Swasthya Bima Yojna (b) National Rural Health Mission (c) Senior Citizen Health Insurance Scheme (d) National Urban Health Mission Choose the correct option from below: A. (a) and (b) B. (a), (b) and (c) C. (a) and (c) D. (a), (c) and (d)

52. Consider the following statements regarding a debenture: (a) It is issued by the Government (b) It is a secured financial contract (c) It has a fixed tenure of maturity (d) Its real rate of return is constant Which of the above statements are correct? Answer from the code below: A. (a), (c) and (d) are correct B. (b) and (c) are correct C. (c) and (d) are correct D. (a) and (b) are correct 53. National Food Security Act was passed in which year? A. 2005 B. 2008 C. 2010 D. 2013 54. Dispersion is the measure of the extent to which variate values in a distribution differ from? A. each other B. the standard deviation C. the mean deviation D. the average 55. Cost difference method of separating the income and substitution effect of a price effect was developed by: A. E. Slutsky B. J.R. Hicks C. P.A. Samuelson D. R.G. Edgeworth 56. A primary reason why nations conduct international trade is because: A. some nations prefer to produce ‘A’ thing while others produce ‘B’. B. resources are not equally distributed to all trading nations. C. trade enhances opportunities to accumulate profits. D. interest rates are not identical in all trading nations. 57. Which of the following does not support the idea of international trade? A. exports should exceeds imports. B. imports should exceed exports. C. resources are more mobile internationally than are goods. D. resources are less mobile internationally than are goods.

6 58. The Regional Rural Development Banks have been established on the recommendations of the: A. Narsimham Committee B. Swaminathan Committee C. Saraya Committee D. Malhotra Committee 59. Which of the following statement is correct? (a) Economic reforms of 1991 led to higher Total Factor Productivity growth along with acceleration of growth in output. (b) Benefit of higher GDP growth during post reform period is biased towards capital than labour. Choose the correct answer from the code given below: A. (a) is correct, but (b) is incorrect B. (b) is correct, but (a) is incorrect C. Both (a) and (b) are correct D. Neither (a) nor (b) is correct 60. Which of the following is not correct for Indian agriculture at the time of independence? A. It had a vibrant growth few decades prior to independence. B. It had deficiency of required infrastructure. C. It vitally depended on Monsoon. D. Technology was backward. 61. Calculate Fiscal deficit of a hypothetical economy from the information given below: (a) Revenue Receipts: ` 1,50,000 crore (b) Revenue expenditure: ` 1,90,000 crore (c) Total expenditure: ` 2,50,000 crore (d) Recovery of Loans: ` 35,000 crore (e) Other receipts: ` 90,000 crore (f) Borrowings: ` 1,00,000 crore Choose the correct option from below: B. ` 25,000 crore A. ` 20,000 crore C. ` 30,000 crore D. ` 35,000 crore 62. If after the price change, the expenditure on the commodity does not change, the value of the elasticity of demand will be: A. 4.0 B. 0.5 C. 1.0 D. Zero

63. Which one of the following statement is correct? A. Long-run total cost is the sum of long-run fixed and long-run average costs. B. A firm’s long-run average cost curve is derived from a series of short-run average cost curves. C. These is no relationship between shortrun and long-run average cost curves. D. A firm’s short-run average cost curve is derived from its long-run average cost curve. 64. The degree of monopoly power as defined by Roths child is based on: A. Price elasticity of demand B. Price cross elasticity of demand C. Income elasticity of demand D. Super normal profits 65. In a series given below, the value of median will be: 24, 26, 29, 32, 31, 36, 28 A. 32 B. 29 C. 31 D. 28 66. The downward sloping nature demand curve is explained mainly by: A. Substitution effect B. Income effect C. Snob effect D. Band-wagon effect 67. Which of the following is correct? Statement 1: Index of Industrial Production is calculated using Laspeyris formula. Statement 2: The weights alloted to various items is the prices of these commodities. A. Only statement (1) is correct B. Only statement (2) is correct C. Both the statement (1) and (2) are correct D. Neither statement (1) nor (2) is correct 68. According to Prof. Knight, profit is: A. the reward for known risk. B. the reward for unknown risk. C. the reward for innovation. D. the reward for both known risk and innovation.

7 69. Which one of the following is correct for the Fiscal deficit in India? A. Revenue expenditure – Revenue receipts B. Plan expenditure + Non-Plan expenditure – Revenue receipts C. Total expenditure – Revenue receipts – (Recovery of loans + other non-tax receipts) D. Total Expenditure – Revenue receipts 70. Which amongst the following statement is/are correct? A. Total utility of water is high. B. Marginal utility of diamond is high. C. Both (A) and (B) are correct. D. Neither (A) nor (B) is correct. 71. Which one amongst the following is not an example of continuous variable? A. Body temperature B. Yield of wheat per acre C. Money supply D. Body weight 72. According to 2011 census of India, the state with highest sex ratio and the lowest sex ratio respectively were: A. Kerela and Madhya Pradesh B. Tamil Nadu and Haryana C. Karnataka and West Bengal D. Kerala and Haryana 73. For a company listed at an stock exchange, w hich of the follow ing sequence is correct? A. Authorised Capital < Issued Capital < Subscribed Capital B. Authorised Capital > Subscribed Capital > Issued Capital C. Authorised Capital < Subscribed Capital < Issued Capital D. Authorised Capital > Issued Capital > Subscribed Capital 74. Which one of the following was not a reason for the crisis of 1991? A. The Current Account Deficit rose to a record 3.2 per cent of GDP in 1990.

B. Debt-service payments were very low. C. Foreign Exchange reserves were too low to finance imports. D. The rate of inflation soared, exceeding 10 per cent in 1990. 75. For two variables X and Y and n observations, the correct value of covariation in them is: 6x  y B. A. 6x˜y n C. n˜6x˜y

D.

6x  y

Where x = X  X, y  Y  Y 76. Under constant returns to scale, which one of the following is the nature of the long-run average cost curve? A. Upward rising B. Parallel to output axis C. Downward sloping D. Identical to short-run average cost curve 77. Which one of the following will not cause a shift in the demand curve for a commodity? A. Change in price B. Change in the income of the consumer C. Change in the taste of a consumer D. Change in the price of substitution and complements 78. Production possibility curve is based on the concept that: A. Resources are unlimited B. The goods produced are competitive C. The goods produced are complementary D. Resources are not substitutable 79. Select correct equation: A. GNP > GNI > GNE B. GNP = GNI = GNE C. GNP { GNI { GNE D. GNP < GNI < GNE 80. Which of the following is not near money? A. Paper money B. Treasury bills C. Bond D. Bill of exchange

8

ANSWERS 1 D

2 C

3 A

4 C

5 B

6 A

7 C

8 A

9 C

10 D

11 C

12 B

13 A

14 D

15 C

16 C

17 C

18 B

19 C

20 B

21 D

22 C

23 B

24 D

25 A

26 C

27 B

28 C

29 B

30 D

31 C

32 C

33 C

34 A

35 C

36 D

37 D

38 C

39 A

40 B

41 A

42 A

43 D

44 A

45 B

46 B

47 A

48 B

49 C

50 D

51 C

52 B

53 D

54 C

55 A

56 B

57 C

58 A

59 A

60 A

61 B

62 D

63 B

64 A

65 B

66 A

67 C

68 B

69 C

70 C

71 C

72 D

73 B

74 B

75 B

76 B

77 A

78 B

79 B

80 C

1 Previous Paper (Solved)

KVS-PGT Economics Teacher Recruitment Exam-2017* Subject : Economics 1. Under monopoly, shape of TR curve is: A. Horizontal B. Inverse - S shaped C. Inverted - U shaped D. Positively sloping line from the origin

8. Which of the following items have the largest share in India’s imports as per FY 2016 data? A. Electronic items B. Gems and Jewellery C. Crude oil and related products D. Machinery

2. Lorenz curve is a graphic method of studying: A. Index number B. Averages C. Dispersion D. Correlation

9. National Action Plan on Climate Change (NAPCC) was launched by India in the year: A. 2008 B. 1998 C. 2010 D. 2014

3. Which among the following items would not be counted in the computation of National Income? A. Sale of urea to farmers B. Resale of a painting of M.F. Hussain C. Income of Taxi service D. Value added by bread maker

10. In India, 6th Economic Census was conducted by CSO during: A. January 2014 to December 2014 B. April 2013 to March 2014 C. April 2014 to March 2015 D. January 2013 to April 2014

4. What were the targeted and actual growth rate of GDP in India during 11th Five Year Plan respectively? A. 8 and 7.6 B. 8 and 8.5 C. 9 and 8 D. 8.5 and 8

11. The formula for constructing index using Laspeyres method is: 6p1q0 6p1q0 u 100 B. P01 A. P01 u 100 6p0 q0 6p0 q1

5. Entry to Movie Hall is: A. Excludable but Non-rivalrous B. Rivalrous and Excludable C. Rivalrous but Non-Excludable D. Non-Excludable and Non-rivalrous

C. P01

6p1q0 u 100 D. P01 6p1q1

p16q1 u 100 6p0 q0

6. Monopolistically competitive firm operates with excess capacity, it is indicated by: A. output at falling portion of AC B. output at minimum point of AC C. output at rising portion of AC D. output at minimum point of MC

12. If Price of a commodity and corresponding Total Expenditure on the commodity changes in opposite direction; price elasticity of demand will be: A. Equal to one B. Greater than one C. Less than one D. Cannot be defined

7. Total cost at zero level of output will be equal to: A. TFC B. AC C. TVC D. AFC

13. India’s rank on global competitiveness index 2015 released by World Economic Forum is: A. 55th B. 70th C. 50th D. 123rd

* Exam held on 7 January, 2017

1

(1148) Eco-2017—1

2 14. Excess capacity does not exist in which of the following market conditions? A. Perfect Competition B. Monopoly C. Monopolistic Competition D. Imperfect Competition 15. SEBI has reduced the time limit for process of issue of ‘Right Issues’ from 109 days to: A. 72 days B. 53 days C. 43 days D. 63 days 16. Who is the Chairman of 14th Finance Commission of India ? A. Raghuram Rajan B. Urjit Patel C. Y.V. Reddy D. T.S. Vijayan 17. Who is not a member of BRICS? A. Brazil B. China C. Bangladesh D. South Africa 18. According to Sixth Economic census; total industrial units in India are located as under: A. 63.1% in rural and 36.9% in Urban areas B. 40.52% in rural and 59.48% in Urban areas C. 59.48% in rural and 40.52% in Urban areas D. 36.9% in rural and 63.1% in Urban areas 19. If C = 50 + 0.8Y and I = 50, calculate the level of saving: A. 50 B. 500 C. 40 D. 5 20. Which of the following is an explanation of stagflation? A. A period of increase in overall price level with high growth of GDP B. A period of overall price rise with lots of employment opportunities C. A period of rapid increase in overall price level with recession D. A period of decrease in overall price level with recession 21. ‘Monetary base’ or ‘High Powered Money’ is: A. Total Debt of the government B. Total Assets of RBI C. Total liability of RBI D. Total foreign Exchange with RBI

(1148) Eco-2017—1-II

22. In first degree Price Discrimination: A. Entire Consumer surplus is exploited by the monopolist B. Very small portion of consumer surplus is taken away by the monopolist C. Total profit of the monopolist is minimum D. Consumers are divided only in two categories 23. Public goods have following atttributes: A. Non-rival and Non-Excludable B. Non-rival and Excludable C. Rival and Excludable D. Rival and Non-Excludable 24. The Brundtland Commission is: A. The World Commission on Trade and Development B. The World Commission on Environment and Development C. The World Commission on Food Security D. The World Commission on Worldwide neo-liberal reform 25. Which of the following is not correct as target for 12th five year plan in India? A. Real GDP growth rate of 10 per cent B. Reduce Total fertility rate to 2.1 by the end of 12th plan C. Agriculture growth rate of 4 per cent D. Manufacturing growth rate of 7.1 per cent 26. Which of the following is not a feature of bonds? A. Par value B. Coupon Rate C. Maturity D. Yield to Maturity 27. As per Article 279A of the amended Constitution, who will be the Chairperson of the GST Council? A. Prime Minister B. Union Home Minister C. Union Finance Minister D. State Finance Minister 28. In Budget 2016-17 total fund allocated for Sarva Shiksha Abhiyan by Government of India is: A. 22,500 crore B. 38,500 crore C. 55,000 crore D. 35,000 crore

3 29. Which among the following is/ are not well matched? Economist Concept A. W. Jevons Marginal utility B. J.S. Mill Quasi Rent C. I. Fisher Rate of interest D. Adam Smith Division of labour 30. Which among the following is not an assumption of Ricardo’s theory of trade? A. Increasing returns operate in production B. No transport cost C. No barriers to trade D. Countries can produce the tradable goods 31. Which among the following are not a two dimensional diagrams? Choose from the code below. (a) S diagram (b) Histogram (c) Bar diagram (d) Ogive Code: A. (a) and (c) B. (c) and (d) C. (b) and (c) D. Only (a) 32. If primary deficit is zero, then it shows that fiscal deficit is equal to: A. Loans B. Advances C. Interest payments D. Capital outlay 33. If the value of correlation coefficient is 0.8 and the value of one of the coefficient of regression is 0.16, the value of the other coefficient of regression will be: A. 2 B. 4 1 C. 2

D. 0.4

34. Demand curve is relatively more elastic under which of the following market conditions? A. Duopoly B. Monopoly C. Monopolistic competition D. Oligopoly 35. India’s global position in Human Development Index Report 2015 is: A. 126 B. 130 C. 110 D. 98

36. If commodities X and Y are perfect substitutes; then Indifference Curve will be: A. Convex to the origin B. Downward sloping straight line C. L-shaped D. Concave 37. Competition Commission of India (CCI) grants permission/approval for: A. Mergers and Acquisitions B. Establishing New Industrial units C. Selling goods/services to foreign consumers D. Both (A) and (B) 38. “Any Change that makes at least one individual better off and no one worse-off is an improvement in social welfare” - is stated by: A. V. Pareto B. Kaldor-Hicks C. J. Bentham D. C.E. Ferguson 39. Long-run Average Cost Curve (LAC) is U-shaped because of: A. Laws of Returns to a factor B. Law of Variable Proportions C. Economies and diseconomies of scale D. Always decreasing fixed cost 40. Which among the following will lead to larger credit availability? A. Reduction in CRR B. Reduction in SLR C. None of the above D. Both (A) and (B) above 41. Which variable is not included in the calculation of composite HDI by UNDP? A. A deprivation Index B. Adjusted Real GDP per capita C. Life Expectancy Index D. Educational attained Index 42. Which measure of money supply lays stress on the store of value function of money? B. M3 A. M1 C. M2 D. M4 43. Best principle of taxation is based on which of the following? A. Equal Marginal Sacrifice

About the Book

This immensely valuable book on ECONOMICS is specially published for the aspirants of KVS-PGT Recruitment Exam. The book is based on the latest pattern of exam and is well-equipped with ample study and practice material and a Solved Previous Year Paper as well. It makes you familiar with the exam pattern, the type of questions asked, and their best answers.

Well-structured, reader-friendly study material and ample amount of Multiple Choice QuestionAnswers are provided in the book for the purpose of your Study, Practice and Reference. The book covers the subject and topics at appropriate length along with exhaustive exercises. It will immensely help you in Sharpening your Problem Solving Skills with Intensive Practice of numerous questions incorporated in the book which are all solved by subject-experts with descriptive answers, wherever required. While the presented study and practice material of this book Aims for your Easy Success, your own intelligent study and practice with it will definitely Realize your Dream of Success in your Pursuit for a Career in the field of Education in Economics.

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Books to Accomplish A Successful Career HSN Code: 49011010 ISBN 978-81-7812-882-5

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