Short notes required from the answer please

23. Which of the following is correct Note : In the following Question No. 27, measurement of fiscal deficit in there are two statements, one is India ? Assertion (A) and the other (A) Excess of total revenue Reason (R). You have to examine expenditure over total revenue these carefully and select the receipts. answer from the codes given below : (B) Excess of total expenditure 27. Assertion (A) : Indirect taxes over total revenue receipts plus promote inequalities in the non-debt capital receipts. distribution of income. Excess of total expenditure Reason (R) : The poor bear over total receipts. more burden of indirect taxes. (D) Excess of total expenditure Codes : over total interest payments. (A) (A) is true but (R) is false. (B) Both (A) and (R) are true and 24. Marginal cost of a pure public good (R) is the correct explanation is of (A). (A) zero or close to zero (C) (A) is false but (R) is true. (B) one (D) Both (A) and (R) are false. (C) (A) and (B) both 28. Factor Endowment Theory of (D) very high International Trade is given by (A) Heckscher-Ohlin 25. Which of the following is not one of (B) Haberler the objectives of the tax reforms in Raul Prebisch India ? (D) Jagdish Bhagwati (A) Reduction in multiplicity of custom duty rates 29. The concept of single factoral and (B) Improving tax compliance double factoral terms of trade have (C) Widening the tax-base been given by (A) Haberler (D) Suggesting ways to increase the share of indirect taxes in (B) Jacob Viner total tax revenue (C) Snider (D) Scammel 26. An excise duty is fully borne by the buyers, when price elasticity of 30. The equation of foreign trade demand for the product is multiplier is (A) Rupee - Dollar Ratio (A) * (B) mpm + mps (B) 0 (C) Tax - GDP Ratio (C) 1 (D) between I and (D) mom + mps14. Which of the following statements is 18. Which one of the following is not an incorrect ? instrument of fiscal policy ? (A) Monetary Policy is relatively (A) Public Revenue ineffective. when the interest elasticity of investment is low (B) Public Expenditure (IS curve is steep) (C) Public Borrowing (B) Monetary Policy is relatively ineffective, when the interest (D) Cash Reserve Ratio elasticity of demand for money is high (LM curve is flat ) (C) Fiscal policy is relatively 19. Who is Director General of WTO ? ineffective. when interest (A) Alan Greenspan elasticity of demand for money is low (LM curve is steep) (B) Lamy Pascal (D) Fiscal policy is ineffective. (C) William Diamond when interest rate elasticity of (D) Engine Black investment is low (IS curve is steep) 20. The role of the State under 15. The practices of transfer pricing in globalization is the open economy is resorted to by (A) zero (B) maximum (A) Mutual Funds C) minimum (D) neutral (B) Institutional Investors (C) Multinational Corporations (D) Private Banks 21. Which one of the following is the most important source of revenue of State Governments in India ? 16. The warranted rate of growth as defined in Harrod's Model is (A) Land Revenue S/y B) Sales Tax (A) 1/k (C) Stamps and Registration Fees (B) (D) State Excise Duties (C) K 22. Equity in Taxation can best be none of the above achieved by applying the principle of (A) Equal Absolute Sacrifice 17. The Human Development Index was first developed by (B) Benefit (A) UNDP (B) IMF (C) Equal Marginal Sacrifice (C) UNICEF (D) UNCTAD (D) Equal Proportional Sacrifice7. In an Edgeworth production box. the 10. Consider following statements ; only possible positions of 1 . Credit creation varies inversely equilibrium is with Cash Reserve Ratio (A) the isoquants are tangent to (CRR). one another 2. Credit creation varies (B) the isoquants intersect each positively with Cash Reserve other Ratio (CRR). (C) the marginal products of the 3. Bond price and interest rate are inputs are equal inversely related. (D) both (B) and (C) 4. Bond price and interest rate are 8. In case of Keynes' Psychological positively related. Law of Consumption Function. which Which of the above statements is one of the following statements is correct ? incorrect ? (A) 1 and 3 (B) I and 4 (A) As disposal income increases. consumption also increases. (C) 2 and 3 (D) 2 and 4 but less than proportionately. Marginal propensity to 11. Given that C = Currency with the consume is positive but less public. DD = Demand Deposits. than unity. TD = Time Deposits and R = Cash (C) As disposable income increases. balances with the Commercial average propensity to consume Banks. then high powered money is defined as falls, and vice versa (D) Average propensity (A) C + DD consume equals marginal (B) C+R propensity to consume at all (C) C+ TD levels of income. (D) C + DD + TD 9. Which one of the following statements in case of balanced 12. The premise that there exists inverse budget multiplier is incorrect ? relationship between money wage (A) The value of balanced budget inflation and unemployment was multiplier is unity in case of originally given by autonomous taxes. (A) A. W. Phillips (B) The value of balanced budget (B) Milton Friedman multiplier is less than unity in (C) Philip Cagan case of proportional taxes. (C) The value of balanced budget (D) Robert Lucas multiplier is always unity no matter whether the taxes are 13. Based on accelerated-multiplier autonomous or proportional. interaction, whose theory of trade (D) The value of Government cycles generates constrained cycles ? expenditure multiplier is more (A) Hicks (B) Kaldor than the value of tax multiplier. (C) Samuelson (D) Baumol1. Marshallian Theory of consumer's 4. Consider the following statements : behaviour is based on (1) When MC curve is below the (A) Hypothesis of additive utilities. AC curve, then the AC curve must be rising (B) Hypothesis of independent utilities. (ii) When MC curve is above AC curve. then AC curve must be (C) Both (A) and (B). falling. (D) Weak ordering. (iii) MC curve intersects AC curve at the point where AC is constant. 2. Consider the following statements : Which of the above statement(s) (i) Income effect is positive in isare correct ? case of normal goods. (A) (in) only (ii) Income effect is zero in the (B) (1) and (ii) case of superior goods. (C) (i), (in) and (iii) (iii) All Giffen goods are inferior (D) (i) and (iii) goods, but not all inferior goods are Giffen goods. 5. With which of the following is the (iv) Income effect is negative in doctrine of excess capacity in the case of inferior goods. long run not associated ? Which of the above is /are correct ? (A) Monopoly (A) (i) only (B) Oligopoly (B) (ii) only (C) Monopolistic competition (C) (iii) & (iv) (D) Perfect competition (D) (i). (iii) and (iv) 6. To derive the demand curve for a firm for one of the several variable 3. A profit maximising firm will stop factors, the following must be production in the short run if price is considered : (A) less than the average variable (A) The external effect of the change in the factor price cost (B) The internal effect of the (B) less than the marginal cost change in factor price (C) less than the average total cost C) Monopolistic exploitation (D) equal to the average total cost D) Monopsonistic exploitation