Punjab National Bank - Agriculture officers exam - Economics Paper - Part 1

1. Say’s Law of Markets states that-
Demand creates its own supply  Supply creates its own demand  Demand creates its own demand  Supply creates its own supply  None of these
 

2. Malthusian theory of population is based on-
Harmonic progression of population  Geometric progression of food production  Arithmetic progression of population  Geometric progression of population  All of the above
 

3. Gresham’s Law states that-
Good money drives bad money out of circulation  Bad money drives good money out of circulation  Both good money and bad money may co-exist  Neither bad money nor good money may be long in circulation  None of these
 

4. The on-going melt down had its origin in-
The real sector  The financial sector  The service sector  The textile sector  None of these
 

5. A competitive firm maximizes its profit when-
MR = AR  MR = MC  MC = AC  MC = AR  None of these
 

6. ‘Supernormal’ profit may exist in a market due to-
Asymmetry of information  Restriction of information  Quantity restriction  Price restriction  All the above
 

7. Profit is caused by-
Dynamic element in the economy  Innovation  Windfall  All of the above  None of these
 

8. Interest is paid-
To compensate for inflation  Due to superiority of present over future goods  Because demand for money outstrips its supply  To ensure the growth of the real sector  All the above
 

9. Investment is defined as a-
Deployment of a sum in business operations  Purchasing an interest bearing bond  Change in the stock of capital  All the above  None of these
 

10. The unproductive expenditure of the rich is-
Necessary to the employment of the poor  An impediment to the growth of an economy  Having no bearing on the economy  Having bearing only on the economy of the rich  None of these
 

11. Heckscher-Ohlin theory explains-
Pattern of trade in terms of relative factor endowments of countries  Why a country may import products which use extensively the country’s scarce factor  The law of comparative cost  The concept of reciprocal demand  All the above
 

12. ‘Quasi-rents’-
Are in the nature of free gifts  May be applicable to all factors of production  Comprise of all the returns to the firm in excess of the returns of the marginal firm  All the above  None of these
 

13. The indifference curve technique is essentially-
A cardinal approach  An ordinal approach  A quasi-ordinal approach  All the above  None of these
 

14. The slope of an indifference curve expresses-
The marginal rate of substitution of two goods  A ratio of marginal utility of one good to another  Both (A) and (B)  A ratio of total utility of one good to another  None of these
 

15. ‘Pass through’ effect in international trade theory refers to-
The proportion of an exchange rate change that is reflected in export and import price change  Exports and imports not facing any tariff barrier  Exports and imports not facing any technical barrier  All of the above  None of these
 

16. Uruguay Round of multilateral trade negotiations-
Started in 1986 and completed at the end of 1993  Aimed at reversing the rising trend of non-tariff trade barriers  Replaced the GATT with WTO  Brought services and agriculture into WTO  All of the above
 

17. Product Cycle Model in international trade theory (Vernon, 1966)-
Is an extension of technological gap model  Is an extension of Heckscher-Ohlin model  Explains dynamic comparative advantage of new products and new processes of production  All of the above  None of these
 

18. Hedging and speculation in forex markets-
Are opposite activities  Parallel activities  Same activities  All of the above  None of these
 

19. A currency swap refer to-
A spot sale of currency combined with a forward repurchase of the same currency-as part of single transaction  A forward sale of currency combined with a forward repurchase of the same currency-as part of a single transaction  A forward sale of currency combined with a forward repurchase of the same currency-in two different transactions  All of the above  None of these
 

20. Public-Private Partnership projects in India are mostly related to-
Airports  Ports  Railways  Roads  Urban development
 

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