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University : Mother Teresa Women’s University
Exam : TNSET – Tamil Nadu State Eligibility Test
Document Type : Sample Question Paper
Year : 2017
Subject : Economics

Website : http://www.motherteresawomenuniv.ac.in/
Download Question Paper :
SET E : https://www.pdfquestion.in/uploads/11673-EconomicsE.pdf
SET F : https://www.pdfquestion.in/uploads/11673-EconomicsF.pdf
SET G : https://www.pdfquestion.in/uploads/11673-ECONOMICSG.pdf
SET H : https://www.pdfquestion.in/uploads/11673-ECONOMICSH.pdf

TNSET Economics Question Paper :

Paper – III :
Note :
1. Attempt all the questions.
2. Each question carries two (2) marks.

Related : Mother Teresa Women’s University TNSET Computer Science Question Paper 2017 : www.pdfquestion.in/11669.html

1. The velocity of money is defined as
1) Ratio of GDP to money supply
2) Ratio of GDP demand for money
3) Ratio of GDP to the price level
4) None of the above

2. A decrease in the income tax rate has a –––––––––– effect on labour supply if the –––––––––– effect dominates.
1) Positive : income
2) Negative : income
3) Negative : substitution
4) Positive : substitution

3. Which two of the following situations are most likely to result in ‘demand pull’ inflation?
1) A rise in investment of 5% with a rise of productivity of 5%
2) Increases in the rate of savings and the rate of taxation
3) A rise in the combined value of investment and government spending of 5% with no change in productivity
4) A fall in the rate of savings and the rate of taxation for an economy already operating at full capacity

4. The concept of economic growth is:
1) Identical with the concept of economic development
2) Narrower than the concept of economic development
3) Wider as compared to that of economic development
4) Unrelated to the concept of economic development

5. Which of the following is inconsistent with the Schumpeter’s theory of development?
1) The course of growth is continuous
2) The output expansion, initiated by the entrepreneur, increases in size with time, making it cumulative
3) Growth takes place on account of entrepreneurs who, with the help of bank credit, invest in innovative activity
4) Capitalism destroys itself by being successful through the erosion of its institutions, by the hostility of its intellectuals and other elite classes, and also by the weakening of entrepreneurial innovation

6. In Schumpeterian theory of economic development, innovation occur if
I. Introducing a new commodity
II. Introducing changes in the organisation
III. Discovery of a new source of raw material
IV. Discovery of a new markets
1) Both (I) and (II)
2) (I), (III), and (IV)
3) Only I
4) (I), (II),(III), and (IV)

7. Which of the following criteria got the least weight age by the 14th Finance Commission while recommending horizontal distribution?
1) Population
2) Demographic change
3) Income Distance
4) Area

8. Under a managed floating exchange rate system, the Nation’s monetary authorities intervene in Foreign Exchange Markets to –
1) Smooth out short-run fluctuations in exchange rates
2) Smooth out long-run fluctuations in exchange rates
3) Smooth out short-run and long-run fluctuations in exchange rates
4) Keep exchange rates fixed among a group of nations

9. The plan expenditure on Revenue Account of the Union Government includes
I. Economics services
II. Social and community services
III. Grants-in-aid to States and Union Territories
IV. Loans and Advances to finance public enterprises
1) I and II are correct
2) I, II and III are correct
3) I, II and IV are correct
4) I, II, III and IV are correct

10. Which one of the following items has the largest share in Indian export in terms of US-Dollars?
1) Electronic goods
2) Leather manufactures
3) Readymade garments
4) Gems and Jewellery

11. Match List I with List II and select the correct answer using the codes given below.
List I List II
a) Hamilton -List effects 1. Trade creation and Trade diversion.
b) Marshall-Lerner 2. Infant-industry argument.
c) F.Y. Edgeworth 3. Elasticity approach.
d) Jacob Viner 4. Impoverishing growth.

Codes :
a) b) c) d)
1) 2 3 1 4
2) 2 3 4 1
3) 3 2 4 1
4) 3 2 1 4

12. The size of the bank’s portfolio does not depend on
1) The bank’s reserve position
2) The existing economic conditions
3) The total amount of its deposits
4) The foreign exchange reserves

13. Industrial Act was passed by Parliament in
1) 1947
2) 1949
3) 1951
4) 1956

14. Industries of basic nature were included in
1) Core sector
2) Joint Sector
3) Consumer Sector
4) Co-operative sector

15. In sectors like food, chemicals and medicine, process patents are granted under Indian Patent Act for a maximum period of
1) 2 years
2) 7 years
3) 12 years
4) 14 years