Sunday, 1 July 2012

ASO-2011 Economy Paper, APPSC


1. The pioneer in the development of national income accounting is 

1) J.M. Keynes
2) Ragnar Frisch
3) Richard Stone
4) J.R. Hicks
2. The largest component of Gross National Product (GNP) is 
1) Government purchase of goods and services
2) Consumption
3) Net exports
4) Investment
3. The important feature of money which differentiates it with other asset is its
1) Durability
2) Profitability
3) Liquidity
4) Transferability

4. Opening a deposit account in the name of a person who comes to borrow funds from it is called 
1) Primary deposits
2) Passive deposits
3) Savings bank deposits
4) Derivative deposits 

5. According to Adam Smith the basis of international trade is
1) The principle of comparative advantage
2) The principle of absolute advantage
3) Differences in factor endowments
4) Differences in factor prices 
6. The way of listing receipts and payments in international transactions of a country is called 
1) International capital flows
2) Current accounts
3) Capital accounts
4) Balance of payments
7. The theory of circular and cumulative causation in underdeveloped countries was developed by
1) Gunnar Myrdal
2) Ragnar Nurkse
3) Arthur Lewis
4) Harvey Leibenstein

 8. The index measuring deprivation in human development in a country is called 
1) Human Development Index
2) Physical Quality of Life Index
3) Human Poverty Index
4) Human Empowerment Index
9. As per 2001 census the number of females per 1000 males in India was
1) 921
2) 933
3) 948
4) 952

10. Annual National Accounts Statistics in India is published by 
1) The Planning Commission
2) The Reserve Bank of India
3) The Ministry of Finance
4) Central Statistical Organization 
11. Which of the following always remained in focus as the main objective of India's five year plans? 
1) Economic growth
2) Self-reliance
3) Removal of poverty
4) Full employment 
12. Which of the five years plans basic frame work was based on Mahalanobis strategy of development? 
1) Second Five Year Plan
2) Third Five Year Plan
3) Fifth Five Year Plan
4) Sixth Five Year Plan
13. The largest component of subsidy to agriculture in India is 

1) Irrigation subsidy
2) Fertilizer subsidy
3) Power subsidy
4) Output subsidy 

14. The price at which government supplies food grains through fair price shops is called

 1) Procurement price
2) Issue price
3) Support price
4) Current price

 15. The least developed district in the Coastal Andhra is

1) Guntur
2) Krishna
3) Nellore
4) Srikakulam 

16. Which of the following district has the lowest density of population?
1) Khammam
2) Cuddappa
3) Adilabad
4) Prakasam

17. Which of the following is counted in Gross National Product?
1) Transfer payments
2) Capital gains
3) Illegal activities
4) Depreciation

 18. Real Gross Domestic Product is equal to 
1) Nominal GDP + GDP Deflator
2) Nominal GDP x GDP Deflator
3) Nominal GDP/GDP Deflator
4) Nominal GDP – GDP deflator

19. Keynes was the first economist who realized the significance of money's function as a 

1) Medium of exchange
2) Measure of value
3) Store of value
4) Standard of deferred payment 

20. Credit multiplier is reciprocal of 
1) Excess reserve
2) Cash reserve ratio
3) Derivative deposits
4) Primary deposits 

21. Taussig explained the comparative cost theory in terms of 

1) Labour cost
2) Opportunity cost
3) Reciprocal demand
4) Money 

22. In balance of payments basic balance implies 
1) Current account
2) Capital account
3) Sum of current account and capital account
4) Current account minus capital account

23. The largest number of poor people live in 
1) South Asia
2) Sub-Saharan Africa
3) Latin America
4) East Asia 

24. The percentage of world population lives in under developed countries 

1) 60 percent
2) 80 percent
3) 70 percent
4) 90 percent
25. In India family planning was inaugurated at government level for the first time during the 

1) First Five year Plan
2) Second Five year Plan
3) Third Five year Plan
4) Fourth Five year Plan

26. National income generated in the primary sector is estimated in India by 
1) Output method
2) Income method
3) Expenditure method
4) None of the above 

27. Indian planning is  

1) Imperative in nature
2) Authoritarian in nature
3) Indicative in nature
4) Totalitarian in nature 

28. Which of the following economic reform measure helped to integrate Indian economy  with the rest of the world?

1) Reforms in industrial policy
2) Financial sector reforms
3) Tax reforms
4) Trade and capital flow reforms

 29. The main objective of Accelerated Irrigation Benefit Programme (AIBP) launched in 1996-97 was 

1) Complete coverage of the country under irrigation
2) To give loan assistance to states to help them to complete some of the incomplete irrigation projects
3) To speed up irrigation projects in unirrigated areas
4) To complete the irrigation projects within a definite time frame

 30. Government of India adopted Targeted Public Distribution System in

1) 1995
2) 1997
3) 1999
4) 2001

31. Net sown area in Andhra Pradesh accounts for

 1) 24 percent of land
2) 34 percent of land
3) 40 percent of land
4) 48 percent of land

 32. In Andhra Pradesh, of the total work force, the percentage engaged in organized sector consists of 

1) 10 percent
2) 12 percent
3) 4 percent
4) 6 percent

33. Which of the following is not counted to estimate Gross Domestic Product (GDP)? 

1) Intermediate goods
2) Inventory investment
3) Depreciation
4) Currently produced capital goods 

34. Which of the following is the consumption component of GNP ?

1) Consumer durable goods
2) Non durable consumption goods
3) Consumer services
4) All the above 

35. Demand for money to meet unforeseen contingencies is 

1) Transactions demand for money
2) Precautionary demand for money
3) Speculative demand for money
4) Asset demand for money



36. The shape of liquidity preference curve becomes flatter at



1) Low rate of interest

2) High rate of interest

3) Zero rate of interest

4) Normal rate of interest

37. Which of the following theory of trade cast within the frame of general equilibrium theory of value?



1) Ricardian theory

2) J.S. Mills theory

3) Technological theory

4) Hecksher-Ohlin theory



38. Under valuation of currency in a country makes the balance of payments



1) Favourable

2) Adverse

3) Inequilibrium

4) None of the above



39. Physical Quality of Life Index (PQLI) was developed by



1) Simon Kuznets

2) Ragnar Nurkse

3) Morris D Morris

4) UNDP



40. The main export of under developed countries is



1) Primary products

2) Service activities

3) Manufactured goods

4) Capital goods



41. The density of population in India as per 2001 census is

1) 117

2) 235

3) 432

4) 324



42. In India in early years of 1970's the share of agriculture in national income used to be around

1) 70 percent

2) 60 percent

3) 50 percent

4) 40 percent

43. Plan holiday was declared and annual plans were introduced in India during



1) 1974 - 76

2) 1966 - 69

3) 1981 - 84

4) 1991 – 93



44. India became self sufficient in food grains in



1) 1977 - 78

2) 1984 - 85

3) 1997 - 98

4) 1992 – 93



45. One of the objectives of National Agriculture Policy of 2000 was



1) Doubling food production

2) 8 percent growth rate in agriculture

3) 50 percent increase in input subsidy

4) Growth rate in excess of 4 percent per annum in agriculture



46. Which of the following provides long term agricultural credit?



1) Regional Rural Banks

2) Land Development Banks

3) State Co-operative Banks

4) Commercial Banks



47. The share of service sector in the GSDP of Andhra Pradesh is



1) 60 percent

2) 40 percent

3) 50 percent

4) 30 percent



48. South Asia Poverty Alleviation Programme (SAPAP) was introduced in Andhra Pradesh in



1) 1995

2) 1998

3) 2002

4) 2005

49. Which of the following is included in Gross Domestic Product (GDP)?



1) All previously produced final goods and services

2) All currently produced final goods and services

3) Exchange of assets like stocks, bonds, etc.

4) All currently produced intermediate goods



50. When market rate of interest rises the market price of bonds



1) Falls

2) Rises

3) Remains constant

4) Equal to the rate of interest



51. Empirical study of Hecksher - Ohlin theory has led to paradoxical results in the study of



1) Paul A Samuelson

2) J.S. Mill

3) Jacob Viner

4) Wassily Leontieff



52. In Balance of Payments, which is included in capital accounts?



1) Export of goods

2) Export of services

3) Transfer payments

4) Borrowing from foreign countries



53. The low levels of labour productivity in under developed countries can be explained by



1) Lack of physical capital

2) Lack of human capital

3) Lack of exports

4) High population growth



54. The average rate of population growth in less developed economies is



1) 0.5 percent per year

2) 1 percent per year

3) 2 percent per year

4) 3 percent per year

55. The percentage of rural population in India as per 2001 census is

1) 81.5 percent

2) 72.2 percent

3) 65.7 percent

4) 62.5 percent



56. For national income accounting, electricity, gas and water supply are constituents of



1) Primary sector

2) Secondary sector

3) Other sector

4) Service sector



57. High priority was accorded to export promotion and measures were adopted to boost up exports for in the



1) Second Five Year Plan

2) Third Five Year Plan

3) Fourth Five Year Plan

4) Fifth Five Year Plan



58. Rashtriya Krishi Bima Yojana introduced in 1999-2000 was



1) A scheme of new seed fertilizer technology

2) To extend credit to farmers at low rate of interest

3) A newly introduced crop insurance scheme

4) A scheme extending the purview of crop insurance to cover all farmers and all Crops



59. Which of the tax contributes highest revenue to the central government?



1) Corporation Income Tax

2) Customs Duties

3) Personal Income Tax

4) Wealth Tax



60. In Andhra Pradesh the rate of growth of population in the period 1991 - 2001 was



1) 1.3 percent per annum

2) 1.8 percent per annum

3) 2 percent per annum

4) 2.3 percent per annum

61. The market value of all goods and services after providing for depreciation of capital assets is called



1) GDP at market price

2) NDP at factor cost

3) NNP at market price

4) NNP at factor cost



62. National income at constant prices represents



1) The value of all goods and services expressed at fixed prices

2) The value of all goods and services expressed at changed prices

3) The value of all goods and services at zero prices

4) The value of all goods and services expressed at the base year price



63. Which of the following is credit money?



1) Bank drafts

2) Bills of exchange

3) Promissory notes

4) All the above



64. Which component of money demand is highly volatile?



1) Business demand

2) Speculative demand

3) Personal and business transactions demand

4) Precautionary demand



65. Which one of the following is not found in the credit side of balance of payments?



1) Visible exports

2) Visible imports

3) Invisible exports

4) Transfer receipts



66. The classical theory of comparative advantage has been explained in terms of



1) Labour costs

2) Money costs

3) Theory of opportunity cost

4) Real cost

67. In Human Development index rank, high rank implies



1) 0.5 to 1

2) 0.7 to 1

3) 0.6 to 1

4) 0.8 to 1



68. Under utilization of labour force is manifested in which form of unemployment?



1) Cyclical and seasonal

2) Frictional and disguised

3) Under employment and open unemployment

4) Voluntary unemployment and under employment



69. Annual birth rate 27 implies



1) 27 infants are borne per 1000 persons living

2) 27 infants are borne per 100 persons living

3) 2.7 percent is the rate of growth of population

4) 27 infants are borne per 10000 people



70. In the first 3 decades (1950 - 80) in Indian economy the rate of growth of GDP hovered around



1) 2.5 percent

2) 3.5 percent

3) 5 percent

4) 4.8 percent



71. Managing the transition from centrally planned economy to market led economy was documented in



1) Fifth Five Year Plan

2) Seventh Five Year Plan

3) Eighth Five Year Plan

4) Eleventh Five Year Plan



72. Irrigated areas as a percentage of gross cropped area in India is



1) 30 percent

2) 60 percent

3) 50 percent

4) 40 percent

73. Targeted Public Distribution System implies the distribution?



1) of wheat and rice

2) only to vulnerable and poor sections

3) to rural areas, instead of urban areas

4) to sugar, edible oil, kerosene etc.



74. Central Government Gross Fiscal Deficit in 2006-07



1) 3.7 percent

2) 4.1 percent

3) 5.7 percent

4) 2.1 percent



75. Which is the geographically largest district in Andhra Pradesh ?

1) Adilabad

2) Prakasham

3) Anantapur

4) Nalgonda



76. GNP at factor cost =



1) GNP at market prices + Net indirect taxes

2) GNP + Net factor income from abroad

3) GNP + Net factor income from abroad + Indirect taxes

4) GNP at market prices – Net indirect taxes



77. Which of the following method of measurement of national income is called consumption and investment method ?



1) Product method

2) Income method

3) Expenditure method

4) Value-added method



78. Nominal wages denote



1) Substance wages

2) Low wages

3) Wages paid in terms of money

4) Wage level determing the standard living

79. Windfall profit means



1) Gross profit minus implicit cost

2) Monopoly profit

3) Profit arises on account of unexpected changes

4) Profit as the reward of innovation



80. Which is a broad measure of money supply?



1) M1

2) M2

3) M3

4) M1 + M2



81. High powered money in a country is composed of



1) Currency held by the public

2) Commercial banks reserves

3) Currency produced by the central bank

4) Currency held by the public and commercial banks reserves



82. According to James Tobin which influences strongly the portfolio decisions of investors?



1) The element of risk

2) Uncertainty

3) Rate of interest

4) Bond prices



83. Factor price equalization theorem was stated by



1) Heckscher-Ohlin

2) P.A. Samuelson

3) G. Haberler

4) Jacob Viner



84. Lorenz curve is the index which is used to measure



1) Poverty

2) Inequality

3) Backwardness

4) Underdevelopment

85. In under developed economies low productivity is the outcome of



1) Paucity of capital and other resources

2) Backward technology

3) Lack of training and skill of labourers

4) All the above



86. The growth model which stands on a knifeedge is



1) Harrod - Domar model

2) Classical model

3) Neoclassical model

4) Marxian model



87. The incidence of poverty is the highest for



1) Regular wage and salaried employees

2) Self employed

3) Casual workers

4) All the above



88. Which five year plan initiated minimum needs programme?



1) Third Five Year Plan

2) Fifth Five Year Plan

3) Seventh Five Year Plan

4) Eighth Five Year Plan



89. The Employment Guarantee Scheme initiated in early 1970's in



1) Andhra Pradesh

2) West Bengal

3) Tamil Nadu

4) Maharashtra



90. Antyodaya Anna Yojana (2000) intended for

1) Poverty alleviation
2) Employment for the poor families
3) Food security for poor families
4) Cheap credit to small farmers and rural Artisans


91. In terms of current daily status, the unemployment rate is the highest in

1) Andhra Pradesh
2) Kerala
3) Bihar
4) Uttar Pradesh

92. The incidence of child labour is the highest in
1) Karnataka
2) Kerala
3) West Bengal
4) Andhra Pradesh

93. Development of Women and Children in Rural Area (DWCRA) was started in Andhra Pradesh in 1982-83 with the assistance of
1) World Bank
2) Asian Development Bank
3) UNDP
4) UNICEF

94. The total population of Andhra Pradesh (as per 2001 census)
1) 7.77 crores
2) 9.25 crores
3) 6.76 crores
4) 5.92 crores

95. In 1980s and 1990s Andhra Pradesh economy experienced a structural transformation, in terms of employment and output, from
1) Agriculture to services
2) Agriculture to industry
3) Industry to services
4) Services to agriculture

96. A situation in which employment of an additional unit of labour does not add anything to production is called
1) Diminishing marginal productivity of labour
2) Diminishing returns
3) Disguised unemployment
4) Open unemployment

97. Under which of the following condition devaluation will not reduce deficit in balance of payments of the country?
1) If elasticity of demand for the exports of the devaluing country is greater than unity
2) If elasticity of demand for exports of the devaluing country is less than unity
3) If the exports of the devaluing country has low prices and greater demand in foreign countries
4) None of the above

98. Which of the following works as an apex body to look after the credit requirements of rural sector?
1) Regional Rural Banks
2) Co-operative Banks
3) National Bank for Agriculture and Rural Development
4) Land Development Banks

99. National Rural Employment Guarantee Act was passed in
1) 2005
2) 2006
3) 2007
4) 2004

100. Janmabhoomi was launched in Andhra Pradesh in
1) 1997
2) 1999
3) 2002
4) 2005

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