Which of the following is a limitation of the simple circular flow model?

(a)

Product markets are ignored

(b)

Resource markets are ignored.

(c)

The determination of product and resource prices is not explained.

(d)

Households are included, but not businesses.

GDP= ___________

(a)

GDP at Market Price + Net factor income from abroad

(b)

GDP = \(\frac{Normal\ GDP}{Real\ GDP}\times100\)

(c)

GDP = GNP + Net factor income from abroad

(d)

All the above

Assertion: Aggregate demand curve increases at an increasing rate in the beginning and then increases at a decreasing rate.
Reason: Aggregate demand shows that as income increases owing to increase in employment, expenditure of the economy increases at a decreasing rate.

(a)

Both (A) and (R) are true and (R) is the correct explanation of (A)

(b)

Both (A) and (R) are true, but (R) is not the correct explanation of (A)

(c)

(A) is true, but (R) is false

(d)

(A) is false, but (R) is true

Who was first developed the concept of multiplier?

(a)

J.A. Schumpeter

(b)

J.M. Keynes

(c)

R.F. Khan

(d)

Learner

Assertion: A country can gain from trade when it produces at relatively lower costs.
Reason: When a country enjoys an absolute advantage in both goods, the country would specialize in the production and export of those goods which are relatively more advantageous.

(a)

Both (A) and (R) are true and (R) is the correct explanation of (A)

(b)

Both (A) and (R) are true, but (R) is not the correct explanation of (A)

(c)

(A) is true, but (R) is false

(d)

(A) is false, but (R) is true

The comparative advantage model of Ricardo was based on

(a)

intraindustry specialization and trade

(b)

interindustry specialization and trade

(c)

demand conditions underlying specialization and trade

(d)

income conditions underlying specialization and trade

A member can unconditionally borrow from the fund in a year equal to ________ of its quota.

(a)

10%

(b)

20%

(c)

25%

(d)

40%

Public revenue can be classified into ____________

(a)

Two

(b)

Three

(c)

Four

(d)

Five

Consider the following statements with regards to ‘Economic Planning’:
1. The concept of Economic planning in India is derived from Russia (the then USSR)
2. It is a process in which limited natural resources are used skillfully so that the desired goals can be achieved.
3. It derives its objectives and social premises from the fundamental rights enshrined in the constitution.
Select the correct answer from the given codes below:

(a)

1 and 2

(b)

2 only

(c)

1 and 2

(d)

1, 2, and 3

According to the supply side of the vicious circle theory of development, a country is poor because

(a)

technology levels do not allow for self-sufficiency.

(b)

it was previously too poor to save and invest.

(c)

underemployment is too widespread

(d)

resource allocation is poor.