Kerala PSC Previous Years Question Paper & Answer
Page:10
Below are the scanned copy of Kerala Public Service Commission (KPSC) Question Paper with answer keys of Exam Name 'Non Vocational Teacher (Junior) Economics' And exam conducted in the year 2023. And Question paper code was '087/2023'. Medium of question paper was in Malayalam or English . Booklet Alphacode was 'A'. Answer keys are given at the bottom, but we suggest you to try answering the questions yourself and compare the key along wih to check your performance. Because we would like you to do and practice by yourself.
35. Laffer Curve suggests that:
(^) Raising tax rate always increases revenue, and hence tax rate has no disincentive
effect
(B) Raising tax rate up to a limit increases revenue, but beyond a limit it decreases
tax revenue.
(C) Raising rate always decreases tax revenue.
(D) Raising tax rate up to a limit increases revenue, but beyond a limit it leaves tax
revenue unchanged.
36. The most distinguishing feature of Kaldor’s approach to Modern Trade Cycle theory is:
(ಹ) The role of variation in the flows of money in determining trade cycle
(B)_ The role of oscillations in consumption in the determination of trade cycle
(C) The use of non-linear investment function in the explanation of trade cycle
(D) None of these
37. Of the following, which is/are True in the case both monetary and fiscal policy:
@
Gi)
ആ
(೪)
Fiscal policy is highly effective under fixed exchange rates with complete capital
mobility.
Monetary Policy is highly effective under floating exchange rates.
Fiscal Policy is highly effective under floating exchange rate with complete capital
mobility.
Monetary Policy is highly effective under floating exchange rates.
(^) Only (@) and (iv) (B) Only (1) ೩೧4 (611)
(C) Only Gi) and (iv) (D) Only @ and (ii)
38. Which of the following is/are True in the case of Behavioural Model of Money Supply
Determination?
(0
(ii)
ആ
(೪)
087/2028
The Banking industry’s marginal cost curve rises because of the higher interest rate
needed to lower the non-bank public’s currency-deposit ratio.
The avenge revenue from bank deposit creation increases for the banking industry as a
whole as deposits are expanded.
A competitive banking industry will expand deposits up to the level at which average
revenue equal the marginal cost.
A profit-maximising monopoly banking industry will equate marginal revenue with
marginal costs and will charge lower loan rate and provide a higher deposit rate than
would a competitive banking industry.
(^) Only (0) and (iii) (B) Only (j) and (iv)
(C) Only (ii) and (ii) (D) Only (iii) and (iv)
12 A