SAMPLE TEST FOR ADMISSION TO Ph.

D Economics,, MS (Rural Development),

MS Islamic Banking & Finance and MS Economics & Finance

GNERAL INSTRUCTIONS:
There will be three tests: 1) English Aptitude 2) Subject Aptitude 3) Analytical/Islamic Aptitude Each
test will be of one hour duration:

Format:
The candidates will be provided answer sheet and they will be required to shade the relevant box
against each multiple choice question.
For subject and analytical tests there will be approximately 40 questions in each test to be
completed in one hour. The answer sheet as well as question paper will be collected at the end.
The candidates will have to write their name and roll number on the answer sheet positively.

SUBJECT APTITUDE

Q.1 One common definition of a luxury good is a good with:

(a) an income elasticity less than one
(b) an income elasticity greater than one
(c) an income elasticity equal to one
(d) an income elasticity equal to zero
(e) an income elasticity less than zero

Q.2 A firm's demand curve for a factor of production is equivalent to the:

(a) marginal revenue product curve of the factor
(b) average revenue product curve of the factor
(c) total revenue product curve of the factor
(d) dual revenue product curve of the factor
(e) simplex revenue product curve of the factor

Q.3 The minimum elasticity of demand at which a monopolist will produce is:
(a) zero (b) one (c) ten
(d) infinite (e) none of the above

Q.4 The fact that there is unemployment in the use of a factor of production implies that
the marginal productivity of that factor is:
(a) greater than one
(b) less than one
(c) equal to one
(d) zero
(e) none of the above

Q.5 The speed with which a unit of currency moves from one spender to another
spender is called:
(a) transactions velocity
(b) income velocity
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(c) rate of growth

(d) liquidity velocity
(e) none of the above

Q.6 In an analysis of business fluctuations, the most important factor affecting

employment and the level of income is considered to be:
(a) consumption
(b) government spending
(c) business investment
(d) interest rates
(e) liquidity preference

Q.7 The classical theory of the interest rate:

(a) equilibrates the desire to hold wealth in the form of cash with the availability of
cash
(b) equilibrates investment with the abstinence to consumption
(c) equilibrates the marginal efficiency of capital with the abstinence to
consumption
(d) equilibrates liquidity preference to the price level
(e) does none of the above

Q.8 Which one of the following is the least liquid asset?

(a) currency
(b) demand deposits
(c) corporation bonds
(d) U.S. Savings Bonds
(e) time deposits

Q.9 An increase in consumption which is induced by a rise in the real value of money
balances is known as:
(a) Leontief Paradox
(b) Say's Law
(c) Pareto's Law
(d) Smith's Effect
(e) Pigou's Effect

Q.10 The writings of John Maynard Keynes have been influential in justification of:
(a) lower interest and availability of money
(b) German reparation payments to England
(c) high interest rates
(d) increased savings by the majority of people
(e) deficit financing

Q.11 NNP at factor cost equals to:

(a) GNP - Depreciation
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(b) NNP at market prices + Depreciation

(c) NNP at market prices - Indirect taxes + subsidies
(d) NNP at market prices - Indirect taxes
(e) None of the above
Q.12 Expenditure on defence is an item of
(a) Public investment
(b) Private investment
(c) Private consumption
(d) Public consumption
(e) None of the above

Q.13 A country is advised to devalue (reduce external value of) its currency only when its
exports face:
(a) Inelastic demand in foreign markets
(b) Elastic demand in foreign markets
(c) Unit elastic demand in foreign markets
(d) Perfectly elastic demand in foreign market
(e) None of the above

Q.14 A profit-maximising monopolist firm selling in two separate markets will

(a) Charge the same price in both markets

(b) Always charge a higher price in the market where he sells more
(c) Always charge a higher price in the market where he sells less
(d) Adjust his sales in the two markets so that his marginal revenue in each
market just equals his aggregate marginal cost
(e) None of the above

Q.15 The term 'demand for money' denotes the money balance that a community:
(a) Wants to hold under given conditions
(b) Must hold under any conditions
(c) Wants to spend under given conditions
(d) Must spend under any conditions
(e) None of the above

ANALYTICAL/ISLAMIC APTITUDE

Q.1: The number of half-pound packages of tea that can be weighed out of a box
holding pounds of tea is:

(a) 5 (b) (c) 11 (d) (e) 21

Q.2: A man spent of his entire saving in buying a car for $7500. How much money
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did he possess?
(a) $6000 (b) $6500 (c) $7000 (d) $8000 (e) $8500
Q.3 A car is run until the gas tank is full. The tank is then filled to capacity by putting
in 14 liters. The capacity of the gas tank of the car is:

(a) 14 liters (b) 15 liters (c) 16 liters (d) 17 liters (e) 18 liters
Q.4 A circle graph of a budget shows the expenditure of 26.2% for housing, 28.4% for
food, 12% for clothing, 12.7% for taxes, and the balance for miscellaneous items.
If the allocation for miscellaneous item is Rs.1015/- the total budget can be:

(a) Rs.5000/-(b) Rs.2030/- (c) Rs.4060/- (d) Rs.10,000/- (e) Rs.1015/-

Q.5 Two dozen shuttlecocks and four badminton rackets are to be purchased for a
playground. The shuttlecocks are priced at $.0.35 each and the rackets at $2.75
each. The playground receives a discount of 30% from these prices. The total
cost of this equipment is:

(a) $7.29 (b) $11.43 (c) $13.58 (d) $18.60 (e) $19.40

Q.6 A man insures 80% of his property and pays a premium amounting to $348.
What is the total value of his property?

(a) $19,000 (b) $18,000 (c) $18400 (d) 17,400 (e) $13,920

Q.7 A snapshot measures inches by inches. It is to be enlarged so that the

longer dimension will be 4 inches. The length of the enlarged shorter dimension

will be:
(a) in (b) 3 in (c) in (d) 4 in (e) 5 in
Q.8 Four men working together can dig a ditch in 42 days. They begin, but one man
works only for half-days. How long will it take to complete the job?

(a) 38 days (b) 42 days (c) 43 days (d) 44 days (e) 48 days

Q.9 A road runs 1200 ft from A to B, and then makes a right angle going to C, a
distance of 500 ft. A new road is being built directly from A to C. How much shorter
will the new road be?

(a) 400 ft (b) 609 ft (c) 850 ft (d) 1000 ft (e) 1300 ft

Q.10 A catalog advertises successive discounts of 15% and 10% on tape recorders.
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What is the net price of $200 tape recorder?

(a) $150 (b) $153 (c) $160 (d) $152.50 (e) $140.25

Q.11 The term “Zakah” literarily means

(a) Tax on wealth (b) % of wealth (c) purification of wealth

(d) donation of wealth (e) All of these

Q.12 “I will fight those who refuse to pay Zakah until they are obliged to pay all dues
even if it is a small piece of rope”.
This was the statement of Pious Caliph
(a) Hazrat Umar Farooq (b) Hazrat Abu Bakar (c) Hazrat
Usman Ghani (d) Hazrat Ali (e) Hazrat Umar bin Abdul Aziz

Q.13 The Holly City of Macca was concurred by Islamic forces under the leadership of
Phophet (PBUH) in the year

(a) 10th of Hijra (b) 8th of Hijra (c) 9th of Hijra (d) 7th of Hijra
(e) non of the above

Q.14 The interest base transactions are prohibited in an Islamic economy. This
prohibition was finally ordered

(a) During the last pilgrimage (b) After the concurred of Macca
(c) During the 2nd years of Hijra (d) Before the treaty of Hudabiyya
(e) none of the above

Q.15 Ushr is a significant source of revenues in an Islamic state. Ushr is levied on

(a) all sort of wealth (b) all cattles (c) all agricultural produce
(d) only on gold and silver ornaments (e) All of the above