MCQ set 1

Mock questions 

Consider the following statements:

1.The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities.
2.Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments.
3.Treasury bills offer are issued at a discount from the par value. Which of the statements given above is/are correct?
(a) 1 and 2 only

(b) 3 Only

(c) 2 and 3 only

(d) 1, 2 and 3

Which one of the following is not the characteristics of Normal Distribution

 A. Bell shaped and symmetric
 B. X = M = Z_
 C. The total area under the curve for the normal probability distribution is one
 D. The two tails of the distribution in the direction touches the horizontal axis


Which of the following are plausible approaches to dealing with a model that exhibits heteroscedasticity?

i) Take logarithms of each of the variables

ii) Use suitably modified standard errors

iii) Use a generalised least squares procedure

iv) Add lagged values of the variables to the regression equation.
a) (ii) and (iv) only
b) (i) and (iii) only
c) (i), (ii), and (iii) only
d) (i), (ii), (iii), and (iv)

What would be then consequences for the OLS estimator if heteroscedasticity is present in a regression model but ignored?

a)
It will be biased

b)
It will be inconsistent

c) It will be inefficient
d)
All of (a), (b) and (c) will be true.


What will be the properties of the OLS estimator in the presence of multicollinearity?

a) It will be consistent, unbiased and efficient
b) It will be consistent and unbiased but not efficient
c) It will be consistent but not unbiased
d) It will not be consistent


Which of the following statements is correct?

A) The market demand and the firm's demand are the same for a monopoly.
B) Monopolies have perfectly inelastic demand for the product sold.
C) Monopolies are guaranteed to earn an economic profit.
D) All of the above are correct.

The observation that trade as an engine of growth was made by

Ricardo
Adam Smith
H.Robertson
Haberler

 Which of the following is not a component of “Human development index”.

Life expectancy.
Per capita income.
Infant mortality rate.
Literacy rate.

In case of perfect equality value of Ginni Coefficient will be.

0
1
2
4

 Concept of Rolling plan given by

De-Gule
Gunar Myrdal
P.C.Mahalanobies
R.Prebrisch.

 The book  ‘Affluent Society’ written by

Gunar Myrdal
Raul Prebrisch.
J.K.Galbraith.
Karl Marx

Concept of Hindu rate of growth related with

K.N.Raj
Amritya Sen
Dr. Manmohan Singh
None.

Golden Rule of Accumulation

Arrow
Romar
Lucas
Admund Phelps

In Solow model of growth Exogenous variable is

Labour
Technology
Land
All of the above.

Balance growth rate is not related with

Nurkse.
Lewis
Rodan
Hirschman

Who gave ‘Low level equilibrium trap theory’.

H.Leibenstein.
Nurkse
Lewis.
Nelson


 Big Push theory is related with

Balance growth.
Unbalance growth theory.
both A & B
None

Concealed saving potential’ related with

Nurkse
Rodan
Nelson
H.Lebienstein

Backward and forward linkage effect related with

Hirschman
Nurkse
Rodan
Lewis

 concept of Financial dualism is related with

Geertz
Benjamin Higgins.
Myint
Singer.

 Concept of ‘Technological Dualism’ given by

Boeke  social
Myint    
Singer
Benjamin Higgins.


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