Economics Previous Year Question Paper 2024 Set 1

Economics Previous Year Question Paper 2024 Set 1

SECTION -A
(Macro Economics)

Question 1. Read the following statements carefully:
Statement 1: If in an economy the level of income increases (ΔY), it will always proportionately increase the level of consumption (ΔC).
Statement 2: Marginal Propensity to Consume (MPC) and Marginal Propensity to Save (MPS) are always equal to each other.
In the light of the given statements, choose the correct alternative from the following:
(A) Statement 1 is true and Statement 2 is false.
(B) Statement 1 is false and Statement 2 is true.
(C) Both Statements 1 and 2 are true.
(D) Both Statements 1 and 2 are false.

Question 2. Identify the correct equation from the following:
(A) GDPMP = NNPFC + Depreciation
(B) NDPFC = NNPFC + Net Indirect Taxes
(C) GNPMP = GDPMP + Net Factor Income from Abroad
(D) NNPFC = NDPMP + Depreciation

Question 3. Read the following statements – Assertion (A) and Reason (R). Choose the correct alternative given below:
Assertion (A): Full employment situation refers to absence of involuntary unemployment.
Reason (R): Under full employment situation, all the willing and able bodied people get employment at the prevailing wage rate.
Alternatives:
(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
(B) Both Assertion(A) and Reason(R) are true, but Reason(R) is not the correct explanation of Assertion(A).
(C) Assertion (A) is true, but Reason (R) is false.
(D) Assertion (A) is false, but Reason (R) is true.

Question 4. “As per the National Stock Exchange (NSE) data, dated 9th June, 2023, there was a net selling off worth ₹ 309 crore by Foreign Institutional Investors (FIIs) over the period of one month i.e., 9th May, 2023 – 9th June, 2023.”
The above mentioned transactions will be recorded on ________ side of ____________ account of Balance of Payments of India. (Choose the correct alternative to fill in the blanks)
(A) Debit, Current
(B) Credit, Capital
(C) Credit, Current
(D) Debit, Capital

Question 5. Identify the incorrect feature(s) of money supply (M1) from the following:
(i) It is measured at a point of time.
(ii) It does not include stock of money held by the government.
(iii) It is always the currency in the hands of the Central Bank of a nation.
Alternatives:
(A) (i) and (ii)
(B) (ii) and (iii)
(C) (ii) only
(D) (iii) only

Question 6. Total consumption expenditure by households under Keynesian Economics is a combination of ___________ and ____________. (Choose the correct alternative to fill in the blanks)
(A) Autonomous Consumption, Autonomous Investments
(B) Autonomous Investments, Induced Consumption
(C) Induced Investments, Autonomous Investments
(D) Autonomous Consumption, Induced Consumption

Question 7. Find the missing figures and choose the correct alternative:

Alternatives:
(A) 1000, 800, 20000, 25000
(B) 5000, 3200, 25000, 20000
(C) 1000, 3200, 25000, 20000
(D) 1000, 800, 20000, 25000

Question 8. Surplus in Balance of Payments (BOP) refers to the excess of___________.
(Choose the correct alternative to fill in the blank)
(A) Autonomous payments over Autonomous receipts
(B) Current Account payments over Autonomous receipts
(C) Capital Account receipts over Capital Account payments
(D) Autonomous receipts over Autonomous payments