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IASRI Previous Year Question Paper
Agricultural Economics
1.'The capital using technological progress
a) Increases MPK proportionately more than MPL
b) Increases the absolute slope. of the isoquant
c) Reduces K but Increases L to produce a given level of output
d) All of the above
2. An autonomous decrease in investment causes the IS schedule to shift
a) Leftward by the change In investment
b) Rightward by the change in investment
c) Rightward by the change in investment times the expenditure multiplier
d) Leftward by the change in investment times the expenditure multiplier
3. Liquidity preference theory states that the liquidity preference by the people depends on
a) Transactions motive
b) Precautionary motive
c) Speculative motive
d) All of the above
4. The Philips curve shows
a) An inverse relationship between the rate of inflation and the rate of unemployment
b) A direct relationship between the rate of inflation and the rate of unemployment
c) An inverse relationship between the rate of inflation and the level of employment
d) A n. Inverse relationship between the price level and the level of employment
5. A farmer has four items (i.e., machinery,livestock, farm building and land) to offer as security for, loan. Which of these could be offered as security if the farmer Is taking the loan against collateral security?
a) Farm building and land both.
b) Machinery and livestock both
c) Farm building alone
d) Machinery alone
6. In economics, rent is
a) The payment for land
b) A surplus payment necessary to keep a factor in its present employment
c) The reward paid to the landlords
d) The payment 'made for the hire of land and buildings
7. What are tale terms of trade?
a) The price of imports in terms of exports
b) The difference between visible imports and visible exports
c) The difference between total imports and exports
d) The difference in the foreign exchange rates of different currencies
8. Which of the following types of unemployment is caused by the immobility of labour?
a) Seasonal
b) Cyclical
c) Frictional
d) Structural
9.When both the duopolists in an industry act as followers and no one acts as a leader, it leads to a
a) Cournot solution
b) Quasi-competitive solution
c) Stackelberg solution
d) Collusion solution
10. Allocative efficiency of any enterprise is also known as
a) Operational efficiency
b) Economic efficiency
c) Technical efficiency
d) Price efficiency
11. IS curve has slope and shows equilibrium in
a) Positive, goods
b) Positive, money
c) Negative, goods
d) Negative, money
12. The `L' shaped isoquants represent
a) Fixed proportion combination of inputs
b) Constant rate of substitution
c) Increasing rates of substitution
d) Decreasing rates of substitution
13. Economic efficiency is highest under
a) Perfect competition
b) Monopoly
c) Monopolistic completion,
d) Oligopoly
14. -Kinked demand curve is used to show
a) Welfare under oligopoly
b) Price rigidity under oligopoly
c) Market share under duopoly
15. A bank must maintain adequate liquidity
a) To meet the loan demand of customers and minimize loan default
b) To explain transaction deposits ; whenever there is a deficiency of secondary reserves
c) To meet loan demand and outflow of deposits
d) To meet the currency requests of deposities and conversion of loans into secondary reserves.
16. Fiscal Policies are highly effective in
a) Keynesian range of LM curve'
b) Classical range of LM curve
c) Intermediate range of LM curve
d) Both Keynesian and cl
17. If the assumption of OLS (E(X4)v0) is not fulfilled, then the estimates are
a) Not biased
b) Biased
c) Inconsistent
d) Biased and inconsistent
18. The classical book on "Economics of Agricultural Production and Resource Use" is written by
a) G.E. Foster
b) W.W. Wilcox
c) T.W. Schultz
d) Earl O. Heady
19. Which one of the following is not a component of a market?
a) The existence of goods or commodity
b) The existence of buyers and sellers
c) Business relationship between buyers and sellers
d) Existence of a uniform price
20. Use of transfer payments as a policy instruments is made for
a) Bringing about income redistribution
b) Reducing private consumption
c) Increasing private consumption
d) Increasing gross national product
21. When a price index increases from 125 to 150, the value of money
a) Increases25%
b) Decreases 25%
C) Increases 20%
d) Decreases 20%
22. In order to achieve the maximum gains from trade, producer should specialize according to
a) Production possibility frontier
b) Absolute advantage
c) Comparative advantage
d) Property rights
23. The ` e' is the elasticity of demand for the product of a monopolist then the ratio P/MR is given by
a) a-1/e
b) ele-1
c) a-1/e+1
d) e+1/e-1
24. Quasi Rent is equal to
a) Revenue minus cost
b) Revenue minus fixed cost.,
c) Revenue minus variable cost
d) Revenue minus normal profit
25. Harrod-Domar model of economic growth is based on the.experiences of
a) Under-developed economies
b) Developing economies
c) Advanced capitalist economies.
d) Socialist economies,
26. According to Hicks, an invention is said to be neutral when it raises
a) The average products of labour and capital in the same proportion
b) The marginal products of labour and capital in the same proportion
c) The wage rate and interest rate in.the same proportion
d) None of the above
27. Which of the following is not a characteristic of market performance?
a) Relative technical efficiency of production
b) Degree of buyer concentration
c) Size of industry output
d) Profit margin
28. A "Bonded warehouse" is
a) A warehouse owned by a private business for storage of their own goods
b) A warehouse owned by a private business for storage of products of other businesses
c) A public warehouse
d) A warehouse at an air or seaport where imported goods are stored until customs duties are paid
29. Among the following economists, who has advocated the technique of unbalanced growth?
a) A.O. Hirschman
b) Paul A. Samulson
c) H.D. Henderson
d) J.M. Keynes
30. The simplex algorithm for solving linear programming models was invented by
a) G.B, Dantzig
b) T.C. Koopmans
c) G. Tintner
d) E.O. Heady
31. Moving average method is used to eliminate
a) Cyclical variations
b) Seasonal variations
c) Secular variations
d) Irregular variations
32. In case of a linear demand function, the slope of the marginal revenue curve derived from it will be
a) Only half of the demand-curve
b) Equal to that of the demand curve
c) Twice that of the demand curve
d) Thrice that of the demand curve
33. If the price-consumption curve for a commodity has a positive slope, Its elasticity of demand would be
a) Equal to one
b) Less than one
c) Greater than one'
d) Greater than two
34. The rate of discount (r) at which the present value of the cost stream of a project just equals to the present value of its returns is termed
a) Net present value
b) Return on Investment -
c) Internal rate of return
d) Desired discount rate
35. Which of the following statements with regard to NABARD is not correct?
a) It gives direct, finance for agricultural rural development
b) It plays a key role in programmes of rural development
c) It finance§ agriculture and village industries through the cooperative banks and commercial banks
d) It directly loans to farmers and artisans
36. If two events A & B are independent, the probability that both of these will occur is given by
a)P(A) + P(8)
b)P(A) x P(B)
c) P(A) x P(Bf +'P(AB)
d)P(A) - P(B)
37. The product moment correlation coefficient Is obtained by the formula
a) r = EXY/xy
b) r = %xy/Nax6y
c) r = Exy/Nax
d) r = ExEy/6x6
38. The elasticity in respect of speculative demand for money under the liquidity trap condition Is
a) Infinite
b) Zero
c) One
d) Greater than one
39. When the intrinsic value of money and its face value are equal, it is called
a) Token money
b) Full-bodied money
c) Quasi-money
d) Flat money
40. Which one is not economic motive of holding a stock of money?
a) Transaction motive
b) Precautionary motive
c) Speculative motive
d) Black money motive
41. The major quantitative monetary tool available with central bank Is
a) Rationing credit
b) Margin requirements
c) Reserve ratio requirements
d) Regulation of consumer credit
42. The most important asset of a commercial bank is its
a) Demand deposits
b) Government securities
c) Negotiable stocks and bonds
d) Loans to businessmen, Industry etc.
43. The Hindu rate of growth
a) Refers to growth of Hindu population
b) is the term used by Raj Krishna to represent the nature of growth of the Indian economy at around 3.5 percent per year
c) is the term coined by Amartya Sen to represent the nature of the growth of Indian economy at a round 3.5 percent per annum
d) is the term coined by V.K.R.V. Rao to decide the nature of the growth of the Indian economy at around 4 percent
44. Economic development with unlimited supplies of labour is a model of development enunciated by
a) A.O. Hirschman
b) W.W. Rostow
c) W,A. Lewis
d) Halls Chenery
45. According to Simon Kuznets, during process of development, the income Inequalities tend to
a) Decrease
b) Increase
c) Decrease first and then increase
d) Increase first and then decrease
46. The expected monetary value criterion is used for decision-making under situations of
a) Risk
b) Uncertainty
c) Certainty
d) Both risk and uncertainty
47. The inflationary gap measures
a) The difference between the expected and actual rates of inflation
b) The excess of aggregate demand. over the full-employment level
c) The increase in gap between the rich and the poor as a result of Inflation
d) All of the above
48. How many "ridge lines" can be drawn in a particular isoquant-map?
a) One
b) Two
c) Equal of the number of isoquants
d) Infinite
49. In his revised demand theory, Hicks assumes the consumer's preferences to have
a) Strong ordering
b) Weak ordering
c) Indifference relations
d) None of the above
50. When we change the Cj coefficients in the objective function of a Linear Programming problem then it is called
a) Capital variable programming
b) Resource variable programming
c) Price variable programming
d) Input-output variable programming
51. Equilibrium occurs in a two-sector model when
a) Saving equals investment
b) Consumption plus investment equals the value of output
c) Planned saving equals planned investment
d) Aggregate spending equals the revenues of the business sector
52. The line joining points of consumer equilibrium resulting when only the consumer's income is varied is called the
a) Demand curve
b) Income-consumption curve
c) Engel curve
d) Price-consumption, curve
53. In Keynesian theory, investment demand depends upon
a) Marginal efficiency of capital
b) The rate of interest
c) Both a) and b)
d) None of the above
54. The feasible region of a linear programming problem is
a) A concave set
b) A convex set
c) A null set
d) None of the above
55. The integral of 1 is
a) Zero
b) x
c) I +x
d) 1-x
