| Post Name | Higher Secondary School Teacher (Junior) - Economics |
|---|---|
| Department | Kerala Higher Secondary Education |
| Question Paper Code | 106/2026/OL |
| Category Code | 715/2025 |
| Date of Test | 21 May 2026 |
| Exam Type | Online Examination |
| Total Questions | 100 |
1
Houthakker and Tayler has used the habit-formation process in the dynamic demand model, to analyse the demand for:
Answer
A. Non-durable commodities
2
As wealth increases, the slope of the utility curve of the risk averse consumer gets:
Answer
B. Flatter
3
When technical progress is capital deepening as classiļ¬ed by Hicks, the shifting isoquants becomes:
Answer
A. Less steeper along a given radius
4
Elasticity of substitution ( ) for a CES production function is:
Answer
D. 0
5
Regarding monopoly pricing, which of the following statement/ statements follows a general conclusion: i. Monopolist will choose to operate only in regions in which the market demand curve is elastic ii. Monopoly ļ¬rm's mark up over marginal cost depends directly on the elasticity of market demand
Answer
B. Only i
6
The market situation, in which one ļ¬rm acts as a quantity leader, choosing its quantity ļ¬rst and all other ļ¬rms acting as followers, ļ¬xing their output decisions after their leader has moved, is the:
Answer
C. Stackelberg Model
7
Identify the game, that can be resolved with a coordination strategy:
Answer
D. All the above
8
Which of the following statements is/are correct? i. Moral Hazard leads to asymmetric information. ii. Moral Hazard is sometimes called hidden information problem iii. Moral Hazard arises when one side of the market can't observe the actions of the other side
Answer
C. Only iii
9
"For a linear homogenous production function, the value of the function is equal to the sum of the terms, where each term is the ļ¬rst partial derivative multiplied by the corresponding independent variable." This is the content of:
Answer
D. Euler's product exhaustion theorem
10
According to Marx, in a capitalist economy, commodities are exchanged:
Answer
B. In terms of their prices of production
11
Which of the following statements is/are true about the behavioural theories of Cyert and March? i. Firm is an adaptive organization ii. The ļ¬rm is satisļ¬ed by the attainment of the aspirational level iii. The ļ¬rm adopts business practices of a non-collusive nature
Answer
B. i and ii
12
The level of output in the Williamson model and of the proļ¬t maximiser model is:
Answer
D. May be same as a special case
13
Which of the following assumptions hold true regarding the Long Run Average Cost (LRAC) of the Bain Limit Pricing Model? i. The LRAC is L-shaped ii. The falling portion of the LRAC determines the competitive price iii. The LRAC is the same for both the established and new entrant ļ¬rms
Answer
C. i and iii
14
Whenever there is an increase in the market demand in the long run, the prediction of the average cost pricing theory is that:
Answer
B. Firm will expand their capacity by installing new equipment
15
In order to derive the social welfare function, one must make use of:
Answer
A. Inter personal comparisons of utility
16
Coase theorem states that the extent of externality being generated:
Answer
B. Is independent of the distribution of wealth
17
The analysis of the determination of equilibrium prices and quantities in a market, independent of the eļ¬ects from other markets, is the
Answer
A. Partial equilibrium analysis
18
The curve that shows all allocation, from which no mutually beneļ¬cial trade can be made is the:
Answer
D. Contract curve
19
Welfare is improved when 'the greatest good is secured for the greatest number'. This argument is put forward by:
Answer
C. Jeremy Benthem
20
For all prices, the value of aggregate excess demand, as per Walras law is:
Answer
C. Zero
21
If the Marshall-Lerner Condition is not satisļ¬ed in the long run, then the J-curve eļ¬ect reveals that:
Answer
B. BOP deļ¬cit greater than before Devaluation
22
Under perfectly ļ¬exible exchange rates, the Balance for Oļ¬cial Financing (BOF) will be
Answer
A. Zero
23
The equilibrium set out in the Keynesian cross is the point where:
Answer
Question Cancelled
24
The policy suggestion described by Mundell to oļ¬set the depression in the domestic economy caused by a rise in interest rate is:
Answer
C. Fiscal Policy
25
Which of the following situation is not assumed in the early Keynesian approach to the determination of current account?
Answer
D. No excess domestic productive capacity
26
The empirical conclusion made by Philips between money wage rate and unemployment rate is:
Answer
B. Inverse and non-linear
27
Modigliani's theory of consumption states that, households stabilize consumption overtime, as they relate consumption to:
Answer
D. Expected lifetime income
28
The q theory of investment relates a positive relation between the q value and physical capital ļ¬ows and the proļ¬t pocketed by the ļ¬rm is equal to
Answer
C. q ā 1
29
Fisher's Intertemporal budget constraint measures:
Answer
A. Total resources available for current and future consumption
30
Which of the following statement/statements supports the crowding out eļ¬ect of ļ¬scal policy? i. A sleeper LM curve and a ļ¬atter IS curve implies more crowding out ii. A ļ¬atter LM curve and a steeper IS curve implies more crowding out iii. A completely ļ¬at LM schedule and vertical IS schedule implies complete crowding out
Answer
B. Only i
31
The average money holdings in the Baumol-Tobin model is inversely related to:
Answer
C. Rate of interest (i)
32
The role of the monetary sector in the real business cycle model is:
Answer
C. Zero
33
Which among the following is/are found to be the theoretical foundation of New Classical Macro Economists? i. Optimizing Behaviour ii. Sticky Prices iii. Market Clearing iv. Quantity Rationing
Answer
C. i and iii
34
With respect to the stability of velocity of circulation of money is concerned, which of the following statement is correct?
Answer
C. Keynesian theory assumes a variable velocity of circulation and Monetarist emphasises a stable velocity of circulation
35
In the Mechanistic Model of Money Supply determination, the supply of money is:
Answer
A. Completely Exogenous
36
The macroeconomic policy lag that occurs in between the recognition of the need for action and the policy decision is known as:
Answer
B. Decision lag
37
"The forward-looking consumers base their consumption not only on current income, but also on their expected future income". This is the basic logic behind
Answer
D. Ricardo Equivalence Theorem
38
According to Okun Law, the required percentage change in GDP in to oļ¬set a 1.5 percentage reduction in unemployment, is
Answer
A. 3 percent
39
The Macro-economic model which explains how individually rational decisions under imperfect competition leads to socially undesirable booms and busts is the:
Answer
C. New Keynesian Model
40
Which of the following statements is/are true about the Walrasian auctioneer? i. Auctioneer calls out a set of relative prices and ļ¬nds out the excess demand in each market ii. The auctioneer also undertakes trading iii. Auctioneer keeps on trying diļ¬erent sets of pricing until the market clearing set is reached
Answer
D. i and iii
41
Current base year for calculating GDP in India is
Answer
Question Cancelled
42
Who is the author of 'Good Economics for Hard Times'?
Answer
A. Abhijith Banerjee and Esther Duļ¬o
43
Which among the following is/are an instrument of money market? i. Commercial Paper ii. Preference Share iii. Certiļ¬cate of Deposit iv. Treasury Bill
Answer
C. i, iii, iv
44
When overall price increases due to increase in the cost of wages and raw materials, the result is
Answer
C. Cost-push Inļ¬ation
45
Cost inļ¬ation index (CII) for the ļ¬nancial year 2023-24 is
Answer
A. 348
46
Inclusive growth enunciated in the Eleventh Five-Year Plan includes the following: i. Reduction of gender equality ii. Expansion of employment opportunities iii. Reduction of poverty iv. Strengthening of capital market
Answer
Question Cancelled
47
Arrange the following Schemes in chronological order on the basis of its year of introduction: i. Pradhan Mantri Suraksha Bima Yojana ii. Pradhan Mantri Ujjwala Yojana iii. National Nutrition Mission iv. Prime Minister Street Vendor's Atma Nirbhar Nidhi
Answer
D. i, ii, iii, iv
48
Which of the following is/are correct about NABARD? i. Reļ¬nancing agency ii. Runs programmes for agriculture and rural development iii. Inspect and supervise both the cooperative banks and RRBs
Answer
C. i, ii and iii
49
Which amongst the following is/are the function of SEBI? i. Regulatory Function ii. Development Function iii. Protective Function iv. Stability Function
Answer
A. All are correct
50
Who is the Chairman of Fifteenth Finance Commission of India?
Answer
A. N.K. Singh
51
According to Economic Survey 2022-2023, which of the following statements is/are correct regarding agricultural sector? i. 315.7 million tonnes of food grains produced in India in 2021-22 ii. 11.3 Cr. farmers covered under PM-KISAN for ļ¬nancial support iii. Continued growth in institutional credit to agricultural sector iv. National Agriculture Market Scheme (e-NAM) covering 1.74 Crore farmers
Answer
D. All are correct
52
Four pillars of Foreign Trade Policy 2023 i. Incentive to remission ii. Export promotion through collaboration iii. Boost to Make in India iv. Ease of doing business v. Emerging Areas
Answer
D. i, ii, iv and v
53
International year of Millets
Answer
B. 2023
54
Sectors where FDI is not permitted in India
Answer
D. Lottery business and manufacture of tobacco
55
Consider the following statement with reference to SDG India Index Report 2020-21. Which of the following statements are correct? i. None of the Southern Indian State emerged as aspirant in the Index. ii. It is released by NITI Aayog. iii. Index ranks all states and UTs for each SDGs. iv. None of the Northern Indian State emerged as Front Runner in the Index.
Answer
A. i and ii only
56
Mahila Samman Savings Certiļ¬cate Scheme is launched in the Year
Answer
D. 2023
57
Which of the following forms the part of short-term structures of Rural Cooperative Credit Institutions? i. Primary Agricultural Credit Societies ii. State cooperative Banks iii. Central Cooperative Banks iv. State Cooperative Agriculture and Rural Development Banks
Answer
A. i, ii and iii only
58
Concept of Menu cost originally introduced by
Answer
C. Eytan Sheshinski and Yoram Weiss
59
People's Planning implemented in Kerala is an example of
Answer
A. Decentralized Planning
60
Which of the following statements is/are correct regarding the population proļ¬le of Kerala according to 2011 Census? i. Population of Kerala Constitute 2.76% of India's population ii. Decadal growth rate of population was 4.9 per cent iii. Sex ratio of Kerala is 1084 iv. Density of population is 960 per sq.km.
Answer
A. i, ii and iii only
61
Match List I with List II List I List II i. Chi-Square test a. George B. Dantzig ii. Normal Distribution b. Karl Pearson iii. Linear Programming c. OLS iv. Carl Friedrich Gauss d. De-Moivre
Answer
A. i - b, ii - d, iii - a, iv - c
62
If M is the mean of Poisson distribution, then the variance is given by
Answer
B. M
63
Variance of a constant 'x' is
Answer
C. 0
64
Poisson distribution is used for explaining the behavior of
Answer
B. Discrete Random Variable
65
Find the mean of constant 'm'
Answer
A. m
66
Coeļ¬cient of skewness for lognormal distribution is
Answer
B. Positive
67
Mean, Median and Mode of the Lognormal distribution
Answer
B. Mean > Median > Mode
68
Mean and Standard deviation of Binomial distribution
Answer
C. np,
69
Z-test is applied when test statistic follows
Answer
B. Normal Distribution
70
Find the expectation of random variable X? X 0 1 2 3 4 E(x) 1/7 1/5 2/5 1/8 1/20
Answer
C. 1.575
71
What is the relationship between negative reinforcement and punishment?
Answer
C. Negative reinforcement strengthens a response, while punishment weakens a response
72
According to GagnƩ, which of the following is the correct ascending of learning?
Answer
B. Speciļ¬c responding Chaining Multiple discrimination Classiļ¬cation Rule using Problem solving
73
Select the correct statements about Revised Blooms Taxonomy (2001): i. It replaced nouns with action verbs ii. Highest cognitive level is create iii. Knowledge dimensions include factual, conceptual, procedural and metacognitive knowledge iv. It emphasised learning outcomes that are measurable and observable v. Six levels of the cognitive domain are remember, understand, apply, analyse, synthesis and create
Answer
C. i, ii, iii, iv
74
Select the correct options in Set 2 based on the statements given in Set 1 SET 1 SET 2 i. Realisation that a toy still exists even when hidden a. Classiļ¬cation ii. A child knows that taller and shorter glasses carry equal b. Egocentrism amount of water iii. Child refuses to share the toy with his friend c. Object Permanence iv. Child can group objects by more than one property d. Conservation
Answer
B. i - c, ii - d, iii - b, iv - a
75
Which is not true about constructivist perspective?
Answer
A. Goal is prediction and control of behaviour
76
The scales of measurement and examples for these scales of measurement are given below. Select the correct pairs: Scales of Examples Measurement i. Interval a. Students grouped by blood type ii. Ordinal b. Recording the temperature of water as 25 degrees Celsius and 100 degree Celsius iii. Nominal c. Measuring the weight of students in Kg iv. Ratio d. Ranking schools as 1st, 2nd and 3rd in a district competition
Answer
C. i - b, ii - d, iii - a, iv - c
77
Name the research which show the nature of association, but not cause eļ¬ect relationship
Answer
C. Correlational research
78
In hypothesis testing, what does rejecting the null hypothesis imply?
Answer
B. The groups are meaningfully diļ¬erent, supporting the research hypothesis
79
Quantitative research is most appropriate when the research problem requires
Answer
B. Measuring variables
80
Arrange the following steps of reviewing literature in the correct order: i. Critically evaluate and select the literature ii. Write a literature review iii. Identify key terms for search iv. Organise the selected literature v. Locate literature from databases and libraries
Answer
A. iii, v, i, iv, ii
81
Which of the following statements is/are true about the Lok Sabha Speaker? i. A resolution to remove the speaker can be moved only after 14 days' advance notice. ii. Resolution for the removal of the speaker is given in writing to the Deputy Speaker of the Lok Sabha. iii. While the resolution is under consideration, the Speaker cannot preside over the House, but she/he can participate, speak and vote in the ļ¬rst instance. iv. A member may give notice of a resolution under clause (c) of Article 94 of the Constitution.
Answer
A. i, iii, iv are true
82
Consider the following pairs; among these, pick the right pairs: i. Uniform Civil Code - Article 44 ii. Universal Adult Franchise - Article 326 iii. Assent to Bills by the Governor - Article 200 iv. Impeachment of the President - Article 61
Answer
D. All are true
83
Which of the following sentences is true regarding the appointment of the Commissioners of the Election Commission?
Answer
A. The President appoints the Election Commissioners based on the recommendations of the Selection Committee, which will comprise the Prime Minister, a Cabinet Minister and the Leader of Opposition in Lok Sabha (or leader of the single largest opposition party).
84
The power of the Supreme Court of India to decide the disputes between/among States falls under its
Answer
C. Original Jurisdiction
85
Match List I with List II and select the correct answer by using the codes given below the respective lists: List I (Act) List II (Year) i. Right to Information Act a. 2012 ii. POCSO Act b. 2013 iii. National Food Security Act c. 2017 iv. Maternity Beneļ¬t (Amendment) Act d. 2005
Answer
D. i - d, ii - a, iii - b, iv - c
86
Which one of the following is not a constitutional body?
Answer
A. National Human Rights Commission
87
The Supreme Court Judgment in Unni Krishnan, J.P. v. State of Andhra Pradesh (1993) is signiļ¬cant for which of the following reasons?
Answer
B. It recognized the Right to Education as a fundamental right under Article 21
88
Among the following, who was not a member of the Drafting Committee of the Indian Constitution?
Answer
D. Rajendra Prasad
89
Which among the following requires a special majority of the Parliament along with the consent of the States?
Answer
A. Goods and Services Tax Council
90
As per the present arrangement, how many seats are reserved for the Scheduled Castes in the Lok Sabha?
Answer
B. 84
91
Which event is known as the Magnacarta of Kerala history?
Answer
D. Temple Entry Proclamation
92
The slogan "Make the Nambuthiri a human being" is associated with which organisation?
Answer
B. Yogakshema Sabha
93
Who started the News paper Vivekodayam?
Answer
C. Kumaran Asan
94
Which of the following statement is/are correct about SNDP Yogam? i. One caste, One Religion, One God for All. ii. The Villuvandi Samaram is related to SNDP Yogam. iii. Vivekodayam is the oļ¬cial - magazine of the SNDP Yogam.
Answer
B. Only i
95
Who wrote the book Adukalayil-ninnu Adarkalathilekku?
Answer
Question Cancelled
96
Who founded the Atmavidya Sangham?
Answer
D. Vagbhatananda
97
Arrange the following chronologically: i. Guruvayoor Sathyagraha ii. Paliyam Sathyagraha iii. Vaikom Sathyagraha iv. Kuttamkulam Sathyagraha
Answer
B. iii, i, iv, ii
98
The Kallumala Agitation was promoted by which social reformer?
Answer
B. Ayyankali
99
Match the following social reform organisation with their respective founders: Social Reform organisation Their founders i. Vagbhadanand - a. Prathyaksha Raksha Daiva Sabha ii. Poikayil Yohannan - b. The Atmavidya Sabha iii. Sahodaran Ayyappan - c. Yogakshema Sabha iv. V.T. Bhattathiripad - d. Sahodara Sangham
Answer
A. i - b, ii - a, iii - d, iv - c
100
Match the following works with their respective writers: i. Keralavarma Valiyakoyi Thampuran - a. Soorya Kanthi ii. G. Sankara Kurup - b. Vaisakha Vijayam iii. O. Chandu Menon - c. Odayil Ninnu iv. P. Kesava Dev - d. Indulekha
Answer
A. i - b, ii - a, iii - d, iv - c
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