CUSAT CAT 2018 Question Paper Economics

Subject Code : 616 Section Code : -Select- Difficulty: 1

Subject Q Answer
Questions
Code Id Key

Available resources of an economy are fully utilized when production takes place

(A) On the PPC

616 601 (B) Below the PPC (A)

(C) At any point on PPC

(D) Above PPC

The market demand is 10KG of oranges in a week at Rs.5 per KG. If price elasticity of demand is equal to 1.5,
how much oranges will be bought at Rs.10 per KG?

(A) 15 KG
616 602 (A)
(B) 14 KG

(C) 12 KG

(D) 30 KG

If the quantity demanded remains unchanged with changes in prices, coefficient of elasticity of demand is

(A) <1

616 603 (B) >1 (C)

(C) Zero

(D) Equal to one

An increase in demand due to increase in income of the consumer is

(A) Shift in demand

616 604 (B) Movement and shift of demand (C)

(C) Increase in demand

(D) Decrease in demand

From among the following, choose the odd man out

(A) MC curve

616 605 (B) AVC curve (D)

(C) AFC curve

(D) TFC curve

In drawing a farmer’s supply curve for a commodity, all but which one of the following are kept constant?

(A) Technology

616 606 (B) Price of inputs (C)

(C) Price of the commodity

(D) Technology and price of inputs

616 607 Total revenue is maximum when (B)

(A) MR is increasing

(B) MR is zero

(C) MR is negative

(D) MR is positive

Among the following, who is more associated to ‘RENT”?

(A) Knight

616 608 (B) Hawley (D)

(C) Sen

(D) Ricardo

Factors of production have

(A) Direct demand

616 609 (B) Indirect demand (B)

(C) Joint demand

(D) Complementary demand

From the following choose one which is not a part of that group

(A) Sales tax

616 610 (B) Support price (B)

(C) Excise duty

(D) Customs duty

Economies was classified into Micro economies and Macro economies by

(A) Ragnar Frisch

616 611 (B) J M Keynes (A)

(C) Benham

(D) Robbins

Demand curve slopes downward because of

(A) The law of diminishing marginal utility

616 612 (B) The income effect (D)

(C) The substitution effect

(D) All of the above

When the demand curve is elastic, MR is

(A) 1

616 613 (B) 0 (D)

(C) Negative

(D) Positive

The Engel curve for a Giffen good is

(A) Vertical

616 614 (B) Positively sloped (C)

(C) Negatively sloped

(D) Horizontal

616 615 When P/V ratio is 40% and sales value Rs.10,000, the variable cost will be (A)

(A) Rs.4,000

(B) Rs.6,000

(C) Rs.10,000

(D) None of the above

Within the relevant range, iso-quants

(A) are negatively sloped

616 616 (B) are convex to the origin (D)

(C) cannot cross

(D) All of the above

In Baumols’ theory of the firm, the firms are

(A) Solely motivated to increase sales revenue

616 617 (B) Solely motivated to maximize market share (C)

(C) Aiming at maximizing sales subject to minimum acceptable profit

(D) None of the above

Limit pricing was introduced by

(A) Bain

616 618 (B) Clark (A)

(C) W. Andrews

(D) Pigou

In monopoly pricing, there will be

(A) Less competition

616 619 (B) Perfect competition (D)

(C) More competition

(D) No competition

The objective of a discriminating monopoly is to

(A) Maximize its revenue

616 620 (B) Maximize its profit (A)

(C) Capture the whole potential market

(D) Prevent the entry of the rival firms

The formulae to estimate national income at constant price is

(A) (National income at current price � 100) � price index for the current year

616 621 (B) (National income at current price � 100) � price index for the base year (A)

(C) (National income at base year price � 100) � price for the base year

(D) (National income at current price) � price index for the current year

616 622 Output multiplied by price gives us (A)

(A) Value of output

(B) Value added

(C) Domestic factor income

(D) Total factor income

Transfers made for capital formation is

(A) Asset transfers

616 623 (B) Net factor income (C)

(C) Capital transfers

(D) Domestic transfers

Among the following which is correct?

(A) GDP = private final consumption expenditure + government expenditure on goods and services + investment
by firms and households + change in stock + net exports

(B) GDP = private final consumption expenditure + government expenditure on goods and services + investment
616 624 by firms and households + change in stock - net exports (A)

(C) GDP = private consumption expenditure + government expenditure on goods and services + investment by
firms and households + change in stock + net exports

(D) GDP = private final consumption expenditure + government expenditure on services + investment by firms
and households + change in stock + net exports

Suppose the investment in Bihar during the year 2015-16 increased by Rs10crore and in UP the increase in
investment is Rs.25 crore, and if the MPC of Bihar and UP 0.8 and 0.75 respectively, the multiplier for Bihar
state is

(A) 5
616 625 (A)
(B) 10

(C) 15

(D) 20

Export surplus is desirable when there is

(A) Excess demand

616 626 (B) No demand (C)

(C) Deficit demand

(D) Derived demand

Choose the odd man out

(A) Indian Bank

616 627 (B) Central Bank in India (B)

(C) Central Bank of India

(D) Indian Overseas Bank

Choose the odd man out

(A) Demand deposits

616 628 (B) Time deposits (A)

(C) Savings deposits

(D) Recurring deposits

616 629 In India, recent demonitisation took place in the year 2016. Its objectives were (C)

(A) Control black money

(B) Control black money and restrict terrorist financing

(C) Control black money, restrict terrorist financing and introduce digital accounting

(D) Control black money, restrict terrorist financing, introduce digital accounting and control inflation

The form of government in which the government least interferes in the economic affairs is

(A) Welfare government

616 630 (B) Laissez fare (B)

(C) Progressive state

(D) Capitalist government

Which of the following is an implicit cost?

(A) Wage paid to its employees

616 631 (B) Rent paid for hired equipment (C)

(C) Depreciation charged on company-owned equipment

(D) Taxes on property owned by the company

Shut down point is reached when

(A) Price covers only AVC

616 632 (B) Price covers both AC and MC (A)

(C) Price covers MC but not AC

(D) Price covers the minimum MC

Firms operating in an oligopoly

(A) Always compete in an oligopoly

616 633 (B) Always compete on price, product quality and marketing (C)

(C) Can earn monopoly profits

(D) Usually achieve a competitive outcome

Quasi rent is

(A) Equal to the firms total profit

616 634 (B) Greater than the firms total profit (B)

(C) Smaller than firms total profit

(D) None of the above

Net National Income (NNI) does not include

(A) ndirect business taxes

616 635 (B) Corporate income taxes (D)

(C) Depreciation charges

(D) Rental value of house owners

If the GDP is measured at the price prevailing at a point of time, then it is called

(A) GDP current price

616 636 (B) GDP market price (C)

(C) GDP constant price

(D) A+B+C

616 637 Phillips curve is slopping (B)

(A) Upward

(B) Downward

(C) Horizontal

(D) Vertical

Transaction demand for money is proportional to

(A) Income

616 638 (B) Rate of interest (A)

(C) Investment

(D) Money supply

High powered money is

(A) Currency held by public and reserves with the central bank

616 639 (B) Banks reserves at central bank (A)

(C) All loans and advances of banks

(D) Money held by banks

“A rupee tomorrow is worth less than a rupee today is a/an ` …………………principle

(A) Opportunity cost

616 640 (B) Discounting (B)

(C) Equi-marginal

(D) Incremental

Expenditure that does not create any asset is called

(A) Revenue expenditure

616 641 (B) Capital expenditure (A)

(C) Plan expenditure

(D) Dead expenditure

Proceeds from disinvestment are added to

(A) Revenue receipts

616 642 (B) Capital receipts (B)

(C) Non tax receipts

(D) Tax receipts

Which of the following is an example of visible item of trade?

(A) Shipping service

616 643 (B) Banking service (C)

(C) Merchandize trade

(D) Air service

616 644 If the value of the currency increases in terms of some other foreign currency by the market mechanism, it is (B)
called

(A) Devaluation

(B) Appreciation

(C) Depreciation

(D) Demonistation

In the fixed rate of exchange system, the rate is fixed by the

(A) Finance Ministry

616 645 (B) Prime Minister (D)

(C) Central Bank of India

(D) Central Bank in India

WTO replaced

(A) GATT

616 646 (B) GATE (A)

(C) GAT

(D) GATTE

Computation of HDI is associated to

(A) WTO

616 647 (B) UNO (C)

(C) UNDP

(D) UN

Tarapore II committee is associated to

(A) Foreign exchange reserves

616 648 (B) Balance of payments problem (C)

(C) Capital account convertibility

(D) Impact of reforms

Among the following which is more associated to infrastructure development in India

(A) PPP model

616 649 (B) JAP model (A)

(C) SAP model

(D) NITI model

Economic survey is published by

(A) RBI

616 650 (B) Ministry of Finance (B)

(C) Planning Commission

(D) CSO

616 651 With which sector is “Bull and Bear” associated? (B)

(A) Foreign trade

(B) Stock exchange market

(C) I M F

(D) Indigenous banking

A public limited company must have at least

(A) 2 persons

616 652 (B) 7 persons (B)

(C) 10 persons

(D) 20 persons

Heckscher-ohlin theory explain international trade in terms of

(A) Demand differences

616 653 (B) Differences in labour productivity (C)

(C) Differences in factor endowments

(D) None of the above

In international trade, dumping refers to

(A) Selling goods at a price below the cost of production

616 654 (B) Selling goods above market price (A)

(C) Exclusionary practices

(D) Charging unfairly high prices

A staunch advocate of free trade policy is

(A) Alexander Hamilton

616 655 (B) Frederic list (B)

(C) Haberler

(D) None of the above

A balance of payment surplus can be corrected through

(A) Export promotion

616 656 (B) Exchange control (C)

(C) Appreciation of currency

(D) Increase in interest

Balanced growth strategy was supported by

(A) Arthur lewis

616 657 (B) Kindle berger (A)

(C) Singer

(D) Vertical

Concept of unlimited labour supply in applicable to

(A) Service sector

616 658 (B) Agricultural sector (B)

(C) Manufacturing sector

(D) Energy sector

616 659 Financial dualism theory was developed by (C)

(A) M Porter

(B) A M Khan

(C) H Myint

(D) Solow

Budget is a / an

(A) Plan outlay

616 660 (B) Annual financial statement (B)

(C) Balance sheet

(D) Estimate of expenditure

Negative tax is called

(A) Subsidy

616 661 (B) Surcharge (A)

(C) Cess

(D) None of the above

Energy flow in an eco-system as

(A) Unidirectional

616 662 (B) Multidirectional (A)

(C) Bidirectional

(D) No direction

Total geographical area of India in crore hectare is

(A) 25

616 663 (B) 40 (C)

(C) 32

(D) 45

Fiscal policy in India is formulated by

(A) Finance ministry

616 664 (B) RBI (A)

(C) SEBI

(D) CSO

Increase in import leads to

(A) Increase in national income

616 665 (B) Increase in investment (C)

(C) Decrease in national income

(D) None of the above

616 666 Seasonal unemployment occurs due to (B)

(A) Technological change

(B) Seasonal variations

(C) Depression

(D) Inflation

A K Sen was awarded the noble prize for his contribution to

(A) Monetary economies

616 667 (B) Development economies (C)

(C) Welfare economies

(D) Econometrics

He was awarded the noble prize in Economics in 2015 for his work on consumption, poverty and welfare. Who?

(A) Angus Deaton

616 668 (B) John Forbes mash (A)

(C) Williamson

(D) Henry Kissinger

What do you mean by Chipko movement?

(A) Prevention of felling green trees

616 669 (B) More production of dairy products (A)

(C) Prevention of constructing dams

(D) Prevention of starting chemical industries

The shares in a co-operative society

(A) Can be sold

616 670 (B) Cannot be transferred (C)

(C) Can be transferred

(D) None of the above

Expand MSME

(A) Minor, Small, and Medium Enterprises

616 671 (B) Medium, Small, and Major Enterprises (A)

(C) Major, Small, and Medium Enterprises

(D) Minor, Small, and Major Enterprises

Author of the book “I do What I do”

(A) Raghu Ram Rajan

616 672 (B) A K Sengupta (A)

(C) A K Shahir

(D) A K Senapathi

The forward market refers to foreign exchange deals for sale and purchase of foreign currency at

(A) A specified date in future

616 673 (B) A specified date after 60 days (C)

(C) A specified date after 90 days

(D) On the same day itself

616 674 Who developed the concept of equilibrium rate of exchange? (A)

(A) G Cassel

(B) Hennery Fayal

(C) Hellish

(D) Marshall

Samuelson suggested ………………….in trade cycles

(A) Operation of multiplier

616 675 (B) Operation of accelerator (C)

(C) Operation of multiplier and accelerator interaction

(D) None of the above

When population under investigation is infinite, we should use

(A) Sample method

616 676 (B) Census method (A)

(C) Either sample or census method

(D) Only random sample method

The heading of a row in a statistical table is known as

(A) Stub

616 677 (B) Caption (B)

(C) Title

(D) Sub title

Bar diagrams are……………………dimensional diagrams

(A) Two

616 678 (B) Three (D)

(C) Four

(D) One

For dealing with qualitative data, the best average is

(A) Arithmetic mean

616 679 (B) Geometric mean (D)

(C) Harmonic mean

(D) Median

Among the following, which is the best example for time series data?

(A) National income data

616 680 (B) Farmers survey data (A)

(C) School fee details

(D) Age of husband and wife

616 681 If mean, median and mode of distribution are equal, such a distribution can be called (C)

(A) Binomial distribution

(B) Poisson distribution

(C) Symmetrical distribution

(D) Alpha distribution

Mean deviations are ………………………….when deviations are taken from median

(A) Least

616 682 (B) Maximum (A)

(C) Optimum

(D) Zero

Lorenz ratio is associated to

(A) Productivity measurement

616 683 (B) Poverty measurement (B)

(C) Profit measurement

(D) Any of the above

………………………….is a measure of kurtosis

(A) Beta 1

616 684 (B) Beta 2 (B)

(C) Beta 3

(D) Beta 0

While drawing a scatter diagram, if all points appear to form a straight line going downward from left to right,
then it is inferred that there is

(A) Perfect positive correlation
616 685 (D)
(B) Simple positive correlation

(C) Perfect negative correlation

(D) No correlation

Regression analysis reveals …………………………..relationship between two variables

(A) Significant

616 686 (B) Average (B)

(C) Effective

(D) Square

The farther the two regressions lines cut each other

(A) Greater will be the degree of correlation

616 687 (B) Lesser will be the degree of correlation (B)

(C) Does not matter

(D) None of the above

…………………. helps us to study the relationship between phenomena which are qualitative in nature

(A) Correlation

616 688 (B) Association (B)

(C) Regression

(D) Standard deviation

616 689 The limit of a small sample is (C)

(A) 10

(B) 20

(C) 30

(D) 100

A good index number is one that satisfies

(A) Unit test

616 690 (B) Time reversal test (A)

(C) Factor reversal test

(D) All the above tests

Geometric mean of two regressions co-efficient in equal to co-efficient of

(A) Determination

616 691 (B) Correlation (B)

(C) Error

(D) Variance

If the probability of rain on any given day is Pune city is 50%, then what is the probability that rains on exactly 3
days in a five-day period?

(A) 8/125
616 692 (B)
(B) 5/16

(C) 8/25

(D) 2/25

A coin is tossed 5 times. What is the probability that head appears an odd number of times?

(A) 2/5

616 693 (B) 1/5 (C)

(C) 1 /2

(D) 4/25

Risk is measured with the help of

(A) Standard deviation

616 694 (B) Average (A)

(C) Correlation

(D) Simplex

If the index of price level is 110, then the rate of inflation will be

(A) 10%

616 695 (B) 15% (A)

(C) 5%

(D) 20%

616 696 If the standard deviation is 4, what is the variance? (D)

(A) 4

(B) 2

(C) 1

(D) 16

The additive model of time series is expressed as : (Where T, S, C and I are components of time series)

(A) T + S + C + I

616 697 (B) T − S − C − I (B)

(C) T + S − C + I

(D) T � S + C � I

Vital index is the index of

(A) Birth

616 698 (B) Death (D)

(C) Both birth and death

(D) Infant Mortality Rate

Multiply 101101 by 1101

(A) 1111001001

616 699 (B) 1001101001 (C)

(C) 1001001001

(D) None of the above

If 0
(A) Less than 2

(B) Greater than 2
616 700 (B)
(C) Less than 4

(D) Greater than 4

2a = 3b = 4c, then A:B:C is

(A) 2:3:4

616 701 (B) 0.16877314814815 (C)

(C) 6:4:3

(D) 3:4:2

Find the binary equivalent of decimal 117

(A) 1010101

616 702 (B) 1110101 (B)

(C) 1111101

(D) None of the above

What is the number of distinct triangles with integral value sides and perimeter 14?

(A) 1

616 703 (B) 4 (C)

(C) 5

(D) 10

616 704 There are 10 stations on a railway line. The number of different journey tickets that are required by the (B)
authorities

(A) 101

(B) 90

(C) 81

(D) 10

In a class, 20 opted for physics, 17 for maths, 5 for both and 10 for other subjects. The class contains how many
students?

(A) 35
616 705 (B)
(B) 42

(C) 52

(D) 60

The sum of the two digits of a number is 15. If 9 be added to the number, then the digits are reversed. The
number is

(A) 96
616 706 (C)
(B) 87

(C) 78

(D) 69

The equations 3X−4Y = 5 and 12x−16y = 20 have

(A) Have no common solution

616 707 (B) Exactly one common solution (D)

(C) Exactly two common solutions

(D) More than two common solutions

If log8 x=2/3, then the value of x is

(A) 3 /4

616 708 (B) 4/3 (D)

(C) 3

(D) 4

The sum of odd numbers from 1 to 31 is

(A) 496

616 709 (B) 256 (B)

(C) 240

(D) 288

If the radius of a circle is increased by 25%, then its area is increased by

(A) 50%

616 710 (B) 25% (C)

(C) 56.25%

(D) 0.4625

616 711 If A = (price, quantity demanded, income) and B = (income, price, quantity demanded), then (A)

(A) A = B

(B) A = B in different order

(C) B is a derivative of A

(D) A is derivative of B

If A = a set of alphabets in Bombay and B = a set of all alphabets in Calcutta, then, A U B is

(A) (B O M B A Y C A L C U T T A)

616 712 (B) (B OM A Y C U T L) (C)

(C) (BO M A Y C A)

(D) (C A L U T B O M)

A ratio is expressed in

(A) Units

616 713 (B) Always rupees (B)

(C) Always liters

(D) Unit less

Matrix A = Matrix B if

(A) They have the same order

616 714 (B) If each element of A is equal to the corresponding element of B (C)

(C) They have the same order and if each element of A equal to the corresponding order of B

(D) If each element of B is equal to the corresponding element of A

Transpose of transpose of a matrix is

(A) The square of the original matrix

616 715 (B) The original matrix (B)

(C) Half of the original matrix

(D) None of the above

If all the diagonal elements are equal to one in a matrix, such a matrix is called

(A) Unit matrix

616 716 (B) Diagonal matrix (A)

(C) Best matrix

(D) Square matrix

The derivate of Y = log x is

(A) Log x

616 717 (B) X (C)

(C) 1/x

(D) 0

616 718 One of the conditions for minimizing a function is (B)

(A) First derivative should be equal to 1

(B) Second derivative should be greater than 0

(C) Second derivative should be less than 0

(D) Second derivative should be equal to 1

Given Y = 8x4, fourth derivative is

(A) 192x

616 719 (B) 192 (B)

(C) 96

(D) 0

If marginal revenue is known, total revenue can be derived using

(A) Differential calculus

616 720 (B) Integration (B)

(C) Matrix algebra

(D) Set theory

Measurement “meter” represents

(A) Length of the path of the light traveled in vacuum during time interval of a small portion of a second

616 721 (B) Length of the path of the light traveled during time interval of a minute (A)

(C) Length of the path of the light traveled during time interval of a small portion of a second

(D) Length of the path of the light traveled during time interval of a small portion of a minute

The important contribution of Galileo Galilei is

(A) Law of gravitational force

616 722 (B) E = MC2 (C)

(C) Law of inertia

(D) Law of dynamics

The most important element essential for human body

(A) Potassium

616 723 (B) Sodium (D)

(C) Iron

(D) Calcium

The year in which Indian National Congress was formed

(A) 1905

616 724 (B) 1857 (C)

(C) 1885

(D) 1900

A major development in 1905 associated to Indian freedom struggle

(A) Formation of Indian National Congress

616 725 (B) Salt March (D)

(C) Round table conference

(D) Bengal division

616 726 Among the following who is not associated to Indian freedom struggle? (C)

(A) Muhammad Ali Jinnah

(B) Nethaji Subash Chandra Bose

(C) Vikram Sara Bhai

(D) Maulana Kalam Azad

In Indian constitution, details on citizenship is discussed in

(A) Part I

616 727 (B) Part II (B)

(C) Part III

(D) Part IV

Cultural and educational rights (fundamental right) are discussed in articles

(A) 14-18

616 728 (B) 19-22 (D)

(C) 25-28

(D) 29-30

Which disease is caused by deficiency of proteins in children?

(A) Marasmus

616 729 (B) Pellagra (A)

(C) Beri-beri

(D) Rickets

A poem of two lines is called as

(A) Couplet

616 730 (B) Monologue (A)

(C) Ballad

(D) Ole

The National Commission for women was set up in

(A) 1992

616 731 (B) 1993 (A)

(C) 1994

(D) 1995

Which city is famous for “Kumbh Mela”?

(A) Ujjain

616 732 (B) Thrissur (C)

(C) Haridwar

(D) Uttar Kashi

616 733 Sarva Shiksha Abhiyan (SSA), one of the major important educational programme is connected with the (A)

(A) Elementary education

(B) Higher education

(C) Vocational education

(D) Adult education

Who is the Chairman of Rajya Sabha?

(A) Governor

616 734 (B) President (C)

(C) Vice-president

(D) Prime minister

Ethics is the study of

(A) Theory of behaviour

616 735 (B) Theory of activity (D)

(C) Theory of karma

(D) Theory of morality

Constitutional amendment 73 is associated to

(A) Lowering age limit for voting

616 736 (B) Local governance (B)

(C) Protection of environment

(D) Declaration of emergency

National School of Drama is located at

(A) Hyderabad

616 737 (B) Kolkata (C)

(C) New Delhi

(D) Bangalore

Among the following which is not a classical dance form in India

(A) Ottamthullal

616 738 (B) Manipuri dance (A)

(C) Sattriya

(D) Kathakali

The seat of the International Court of Justice

(A) Geneva

616 739 (B) Hague (B)

(C) Washington D C

(D) New York

Author of the title “The Ministry of Utmost Happiness”

(A) Raghu Ram Rajan

616 740 (B) Mirlal Sen (C)

(C) Arundhati Roy

(D) Pavlov Koelo

616 741 Which country won under 19 cricket world cup (January 2018)? (A)

(A) India

(B) Australia

(C) Neweland

(D) Pakistan

P V Sindhu is associated to

(A) Badminton

616 742 (B) Hockey (A)

(C) Athletics

(D) Football

One of the recent developments in digital technology is

(A) Cyber technology

616 743 (B) Bail out technology (C)

(C) Block chain technology

(D) Key correction

Diphtheira disease is connected with

(A) Lungs

616 744 (B) Liver (C)

(C) Throat

(D) Blood

The number of Union Territories are

(A) 7

616 745 (B) 8 (A)

(C) 10

(D) 9

The world’s longest river is

(A) Nile

616 746 (B) Brahmaputra (A)

(C) Amazon

(D) Missippi

The place Anand is associated with

(A) Brewery

616 747 (B) Piggery (C)

(C) Diary

(D) Poultry

616 748 The first news paper published in India was (D)

(A) Shomeprakash

(B) Sambadkaumudi

(C) Rastgotlar

(D) Bengali gazette

“Doctrine of Lapse” was introduced by

(A) Lord Dalhousie

616 749 (B) Lord Canning (A)

(C) Lord Ribbon

(D) Lord Lytton

The lens used to rectify long sight is

(A) Concave lens

616 750 (B) Convex lens (B)

(C) Plano concave lens

(D) Plano convex lens