School of Economics | 100 MCQs
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100 MCQs

  • 1. A market with few industry :
    (A) Oligopoly 
    (B) Monopsony 
    (C) Duopoly 
    (D) Cartel
    Ans: A
    2. In case of deficit budget, when the deficits are covered through taxes, that budget is called : 
    (A) surplus budget 
    (B) balanced budget 
    (C) unbalanced budget 
    (D) none of these 
    Ans: B
    3. The WTO was founded in 
    (A) 1995 
    (B) 1998 
    (C) 2000 
    (D) 1996 
    Ans: A
    4. Privatisation of the public sector enterprises by selling off part of the equity of PSEs to the public is known as 
    (A) disinvestment 
    (B) equity share 
    (C) profit 
    (D) dividend 
    Ans: A
    5. Which have been removed to increase the competitive position of Indian goods in the international markets ? 
    (A) Import duties 
    (B) Export duties 
    (C) Tariffs 
    (D) Quota 
    Ans: B
    6. Which is the term used to refer the relationship between human beings and their physical environment ? 
    (A) Human physiology (
    B) Human ecology 
    (C) Human environment 
    (D) None of these 
    Ans: A
    7. The standard of living is often measured by 
    (A) Real GDP per capita 
    (B) Real GDP 
    (C) Real GDP population 
    (D) Real GDP plus depreciation 
    Ans: A
    8. The Gini Coefficient measures 
    (A) Income inequality 
    (B) Inflation 
    (C) Unemployment 
    (D) Economic growth 
    Ans: A
    9. The year in which Burgress and Park developed their theory of urban ecology 
    (A) 1925 
    (B) 1935 
    (C) 1915 
    (D) none of these 
    ​Ans: A
    ​10. Which of the following is a stage within the ‘product life cycle’ ? 
    (A) Maturity 
    (B) Profitability 
    (C) Abandonment 
    (D) Regeneration 
    Ans: A
    11. An organisation’s equal opportun-ities policy should be concerned with which of the following ? 
    (A) Age discrimination 
    (B) Opportunity cost 
    (C) Globalisation of supply 
    (D) the balanced scorecard 
    Ans: A
    12. Which of the following describes an economic market that is controlled by two main suppliers ? 
    (A) Monopoly 
    (B) Price discrimination 
    (C) Duopoly 
    (D) Perfect competition 
    Ans: C
    13. Which of the following explains how a Public sector organization obtains its Funds ? 
    (A) from direct and indirect taxes 
    (B) from money invested by shareholders 
    (C) from donations made by the public 
    (D) from sales in overseas markets 
    Ans: A
    14. ‘Dynamic inefficiency’ in the context of a model of economic growth means 
    (A) the economy’s output per unit labour is below its steady-state value 
    (B) the economy’s unemployment rate is too high 
    (C) the economy’s steady state is not at the golden-rule steady-state 
    (D) none of the answers are correct 
    Ans: A
    15. ‘Capital Widening’ refers to that part of investment needed to 
    (A) increase the capital per unit effective labour ratio 
    (B) replace capital that has depreciate 
    (C) equip new units of effective workers at the same capital per unit effective labour ratio 
    (D) all of the above 
    Ans: D
    16. A ‘PEST’ analysis is conducted on which of the following of an organisation’s environments ? 
    (A) Internal environment 
    (B) Market environment 
    (C) Historical environment 
    (D) Macro environment
    Ans: D
    17. The movement of people from central cities to smaller communities in the surrounding areas is known as 
    (A) Reverse migration 
    (B) Under urbanization 
    (C) Suburbanisation 
    (D) Over-urbanisation
    Ans: C
    18. The gendering of World Politics is seen in which areas ? 
    (A) Prostitution and human trafficking (B) Civil wars and refugee flows 
    (C) Trade and development 
    (D) All the options given above are correct 
    Ans: D
    19. The period of the business cycle in which real GDP is increasing is called the : 
    (A) expansion 
    (B) peak (C) recession 
    (D) depression 
    Ans: A
    20. A type of unemployment in which workers are in between jobs or are searching for new and better jobs is called 
    (A) Frictional unemployment                    (B) Cyclical unemployment  
    (C) Structural unemployment 
    (D) Turnover 
    Ans: A
    21. Which of the following is a “loser” from unexpected inflation ? 
    (A) Workers with COLAs                          (B) people who own treasury Bills 
    (C) the middle class 
    (D) people who own homes and have fixed rate martgages 
    Ans: B
    22. The largest transfer in the federal budget is : 
    (A) defense 
    (B) education 
    (C) Social security 
    (D) Welfare 
    Ans: C
    23. The Philips curve describes the relationship between : 
    (A) the federal budget deficit and the trade deficit 
    (B) savings and investment 
    (C) the unemployment rate and the inflation rate 
    (D) marginal taxes rates and tax revenues 
    ​Ans: C
    24. According to the monetarists, in the long-run, the Phillips curve is 
    (A) vertical 
    (B) horizontal 
    (C) downward sloping 
    (D) upward-sloping 
    Ans: B
    25. Who has given the concept of urban fringe ? 
    (A) M.N. Srinivas 
    (B) K.M. Kapadia 
    (C) S.C. Dube 
    (D) None of these 
    Ans: A
    26. Who introduced the concept of Gesellschalt ? 
    (A) George Simmel 
    (B) Durkheim 
    (C) Tonnies 
    (D) None of these
    Ans: C
    27. What is “double burden” ? 
    (A) It refers to the disproportionate share of housework done by women 
    (B) It dates to the 17th century 
    (C) It is rooted in gendered conceptions of the distinction between public and private life 
    (D) All of the options given above are correct 
    Ans: D
    28. What is the gendered division of labour ? 
    (A) It is based on gender-structured conceptions of appropriate work 
    (B) It has led to an increase in women’s consumption worldwide. 
    (C) It negates the ‘double burden’ 
    (D) none of the answers given are correct 
    Ans: A
    29. What is the impact of globalization ? 
    (A) It has created new areas of women’s advancement
    (B) It has led to new challenges and dangers for women 
    (C) It has not changed the fundamental inequality of gender-relationships in the world enough 
    (D) all of the options given above are correct
    Ans: D
    30. Who developed concentric-zone theory of city ? 
    ​(A) Louis Wirth 
    (B) E. Burgess 
    (C) M.N. Srinivas 
    (D) M.S.A. Rao 
    Ans: B
    31. Who among the following economists emphasized the role of non-economic factors in explaining growth ? 
    (A) R.M. Solow
    (B) Dusenberry
    (C) N. Kaldor
    (D) Harrod 
    Ans: C
    32. For a linear demand curve, which of the following is true ? 
    (A) Elasticity of demand is unity at all points. 
    (B) Elasticity of demand is constant at all points. 
    (C) Elasticity increases as one slides down the demand curve. 
    (D) Elasticity declines as one slides down the demand curve. 
    Ans: D
    33. Hedging in the foreign exchange market refers to :
    (A) An act of devaluation 
    (B) Not covering a risk of foreign exchange in future 
    (C) Covering a risk of foreign exchange in future 
    (D) None of the above 
    Ans: C
    34. New Trade Policy 2015-20 has introduced a new scheme which is called 
    (A) Merchandise Export from India Scheme 
    (B) Export from India Scheme 
    (C) Merchandise Trade from India Scheme 
    (D) Trade from India Scheme 
    Ans: A
    35. Inclusive growth objective was given for the first time in which Plan of India ? 
    (A) 9th Five Year Plan 
    (B) 10th Five Year Plan 
    (C) 11th Five Year Plan 
    (D) 12th Five Year Plan 
    Ans: C
    36. Type-I error is defined as : 
    (A) Reject Null-hypothesis when it is false 
    (B) Reject Null-hypothesis when it is true 
    (C) Accept Null-hypothesis when it is true 
    (D) Accept Null-hypothesis when it is false 
    Ans: A
    37. Labour market reforms aim at : 
    (A) Job security 
    (B) Minimum wage 
    (C) Labour market flexibility 
    (D) Employment insurance 
    Ans: C
    38. Which of the following is credited with introduction of LPG model of economic development in India 
    (A) Dr. C Rangarajan 
    (B) Dr. Montek Singh Ahluwalia
    (C) Dr. Amartya Sen 
    (D) Dr. Manmohan Singh
    Ans: D
    39. Philips curve sets up a relation between 
    ​(A) Taxes and inflation 
    (B) Inflation and unemployment 
    (C) Money Supply and aggregate demand 
    (D) Price and cost of production 
    Ans: B ​
    ​41. The relationship between aggregate saving and income is known as 
    (A) Saving function 
    (B) Demand Function 
    (C) Supply function 
    (D) Consumption function 
    Ans: A
    42. The properties of General Equilibrium state are called 
    (A) Efficiency 
    (B) Pareto efficiency
    (C) Property efficiency 
    (D) Accuracy 
    Ans: B
    43. The negative of the slope of the PPC is called 
    (A) MRPT 
    (B) MRPS 
    (C) Negative productivity 
    (D) disinvestment 
    Ans: A
    44. The new share price Index of Mumbai Share Market is 
    (A) DOLEX
    (B) UREX 
    (C) FOREX 
    (D) SENSEX 
    Ans: C
    45. Who developed Kinked Demand Curve Model ? 
    (A) Samuelson 
    (B) Paul Sweezy
    (C) Mahalanobis 
    (D) Marshall 
    Ans: B
    46. A market in which there is only one seller and only one buyer is called 
    ​(A) Duopoly 
    (B) bilateral monopoly 
    (C) monopsony 
    (D) oligopoly 
    Ans: B
    ​47. A producer cannot cross the iso-cost line because of 
    (A) fixed outlay 
    (B) entire outlay 
    (C) price 
    (D) none of the above 
    Ans: A
    48. Who is the founder of behaviouralistic theories ? 
    (A) Bain 
    (B) Cyert and March 
    (C) Modigliani 
    (D) Karl Marx 
    Ans: B
    49. Gilt edged market means 
    (A) bullion market 
    (B) market of government securities (C) market of guns 
    (D) market of pure metals 
    Ans: B
    50. A mathematical expression showing the relationship between volume of output and its total cost of production is called 
    (A) cost-function 
    (B) price-function 
    (C) demand function 
    (D) supply function 
    Ans: A ​
    51. In the Keynesian Model of aggregate expenditure, real GDP is determined by the 
    (A) Level of taxes 
    (B) Level of aggregate demand 
    (C) Price level 
    (D) Level of aggregate supply
    Ans: B
    52. An increase in expected future income 
    (A) shifts the saving function upward (B) decreases consumption expenditure 
    (C) increases saving 
    (D) shifts the consumption function upward 
    Ans: D
    53. If the marginal propensity to save is 0.6, then the Marginal Propensity to consume Is 
    ​(A) 1.0 
    (B) 0.4 
    (C) 0.6 
    (D) not determinable 
    Ans: B
    54. When the consumption function becomes steeper,
    ​(A) the saving function also become steeper
    (B) the MPC falls 
    (C) the MPC rises 
    (D) loss of every dollar is consumed 
    Ans: C
    ​55. The only way to increase the output of one good is to reduce the output of another. This allocation of inputs is said to be : 
    (A) Consumption efficient 
    (B) Production efficient 
    (C) Economic efficient
    (D) None of the above 
    Ans: A
    56. A good for which consumption falls as an individual’s income rises 
    (A) inferior good 
    (B) consumption good 
    (C) durable good 
    (D) non-durable good 
    Ans: A
    57. The increase in consumption brought about by a increase in income, when the prices of goods are held constant 
    (A) substitution effect 
    (B) income effect 
    (C) price effect 
    (D) none of the above 
    Ans: B
    58. A curve that describes the relationship between the quantity of a good consumed and income 
    (A) Kinked curve 
    (B) Engel curve 
    (C) Demand curve 
    (D) None of the above 
    Ans: B
    59. A form of implicit collusion, where one firm in the market sets the price and other firms follow suit 
    (A) cartel 
    (B) giffen good 
    (C) price leadership 
    (D) price taker 
    Ans: C
    60. A form of intertemporal price discrimination in which peak users pay more than off-peak users because marginal cost is higher during peak periods 
    (A) Peak-load pricing 
    (B) peak-load effect 
    (C) peak-load consumption 
    (D) none of the above 
    Ans: A
    61. Segmented labour markets imply : 
    (A) labour discrimination 
    (B) Labour paid wage less than MRP 
    (C) MP theory of wage fails to determine market outcomes 
    (D) Equality of wages of different types of labour 
    Which of the above is incorrect ? 
    Ans: D
    62. In India those farmers are called ‘Marginal Farmers’ who hold land upto (A) 1 hectare 
    (B) 2 hectares 
    ​(C) 3 hectares 
    (D) 4 hectares 
    Ans: A ​
    ​63. Which of the following is not related to ’empowerment of women’ ? 
    (A) Gender Development Index            (B) Gender Empowerment Measure
    (C) Gender Budgeting 
    (D) Gender discrimination 
    Ans: D
    64. The agricultural census is done at which one of the following intervals ? 
    (A) once in five years 
    (B) every year 
    (C) once in ten years 
    (D) twice 
    Ans: A
    65. The maximum amount that a customer is willing to pay for a good 
    (A) real price 
    (B) reservation price 
    (C) marginal price 
    (D) absolute price 
    Ans: B
    66. Tobin tax is a tax on : 
    (A) transactions in the share market 
    (B) transactions in the money market 
    ​(C) transactions in the commodity market 
    (D) transactions in the foreign exchange market
    Ans: D
    67. The discriminating monopolist will charge a higher price in the market in which the price elasticity of : 
    (A) demand is smaller 
    (B) supply is smaller 
    (C) demand is greater 
    (D) supply is greater 
    Ans: A
    68. A model of oligopoly in which one firm sets output before the other firms do 
    (A) strategic model 
    (B) stackelberg model 
    (C) suspense model 
    (D) duopoly 
    Ans: B
    69. An expenditure that has already been made and cannot be recovered 
    (A) fixed cost 
    (B) sunk cost 
    (C) variable cost 
    (D) real cost 
    Ans: B
    70. Dividing consumers into two or more groups with different demands for a product in order to charge different prices to each group 
    ​(A) first degree price discrimination
    (B) second degree price discrimination (C) third degree price discrimination (D) none of the above
    Ans: C
    71. Full demographic dividend will be realised when government promotes
    (1) more social security 
    (2) more intensive growth
    (3) more skill development 
    (4) more capital market
    Ans: 3

    72. Which one of the following is true for the General Fertility Rate ?
    (1) It is an actual measure of fertility.
    (2) It is a potential measure of fertility.
    (3) It is an actual measure of female population composition.
    (4) It is based on hypothetical age specific birth rate profile.
    Ans: 2
    73. Which among the following curves is used to depict the long run behaviour of population growth ?
    (1) Normal Curve 
    (2) Logistic Curve
    (3) Exponential Curve 
    (4) Ogive
    Ans: 2
    74. Among the socio-economic factors responsible for high birth rate in India, we may include
    (i) Large scale poverty
    (ii) High mortality rate of children of poor parents
    (iii) Prevalence of under-age marriage
    (iv) Adverse sex-ratio
    (1) (i) and (ii) 
    (2) (i), (ii) and (iv)
    (3) (i), (iii) and (iv) 
    (4) (i), (ii) and (iii)
    Ans: 4
    75. Match List – I with List – II and give the correct answer from the codes given below :
    List – I List – II
    (Event) (Date)
    A. World Environment Day (i) 11th July
    B. World Wildlife Day           (ii) 5th June
    C. World Water Day        (iii) 3rd March
    D.World Population Day(iv) 22nd March
    Select the correct answer from the codes given below :
    Codes :
    A B C D
    (1) (i) (ii) (iii) (iv)
    (2) (iii) (i) (iv) (ii)
    (3) (iv) (iii) (ii) (i)
    (4) (ii) (iii) (iv) (i)
    Ans: 4
    76. The coase theorem suggests that private negotiation will lead to the correction of market failure when
    (i) Only a few people are involved.
    (ii) Property rights are clearly recognised.
    (iii) Negotiation costs are low.
    (iv) People are having asymmetric information.
    Select the correct answer from the codes given below :
    Codes :
    (1) (i), (ii) and (iii) must hold true.
    (2) (i) and (iv) must hold true.
    (3) (i), (ii) and (iv) must hold true.
    (4) (iv) and (iii) must hold true.
    Ans: 1
    77. Infrastructure cess is a levy/tax on
    (1) Builders 
    (2) Railways
    (3) Motor vehicles 
    (4) Public Transport
    Ans: 3
    78. Which among the following measures would result in an increase in the money supply in the economy ?
    I. Purchase of Government Securities from the Public by the Central Bank.
    II. Deposit of currency in Commercial Banks by the Public.
    III. Borrowings by the Government from the Central Bank.
    IV. Sale of Government securities to the public by the Central Government.
    Select the correct answer from the codes below :
    Codes :
    (1) I only (2) II and IV
    (3) I and III (4) II, III and IV
    Ans: 3
    79. The banks which are implementing the Micro Finance Programme linked with Self Help Groups (SHGs) are
    (1) Commercial Banks and Co-operative Banks, only.
    (2) Regional Rural Banks and Commercial Banks, only.
    (3) Co-operative Banks and Regional Rural Banks, only.
    (4) Commercial Banks, Regional Rural Banks and Co-operative Banks.
    Ans: 4
    80. Which of the following is generally called as Aggregate monetary measure of money
    supply ?
    (1) M4
    (2) M1
    (3) M2
    (4) M3
    Ans: 4
    81. The traders reduce the risk of loss in currency fluctuations through which of the
    following ?
    (1) Speculations 
    (2) Arbitrage
    (3) Hedging 
    (4) None of the above
    Ans: 3
    82. Among the reasons responsible for the high inflation rate in India in 2015, which of the
    following is/are true ?
    (i) Rise in prices of petroleum products.
    (ii) rise in food prices.
    (iii) Rise in domestic consumption demand.
    (iv) Rise in Indian Exports during the year 2015-16
    Select the correct answer from the codes given below :
    Codes :
    (1) (i), (ii) and (iv) 
    (2) (i), (ii) and (iii)
    (3) (iii) and (iv) 
    (4) (ii) and (iii)
    Ans: 4
    83. Originally, the maximum and minimum limits of the Statutory Liquidity ratio prescribed in India was
    (1) 40 percent and 20 percent 
    (2) 40 percent and 25 percent
    (3) 30 percent and 25 percent 
    (4) 30 percent and 20 percent
    Ans: 2
    84. Which among the following are the recommendations of the Urjit Patel Committee report of on monetary policy ?
    I. Curtailment of the fiscal deficit.
    II. Inflation anchor at four percent.
    III. Providing adequate liquidity in the money and capital market.
    IV. Pegging the exchange value of Indian Currency.
    Select the answer from the code below :
    Codes :
    (1) I, II and III 
    (2) II and IV
    (3) III and IV 
    (4) I, II and IV
    Ans: 1
    85. Assertion (A) : Monetarists disagreed with the Phillips curve analysis.
    Reason (R) : There are no unique correspondence of % inflation rate with % unemployment rate.
    Answer from the codes below :
    Codes :
    (1) Both (A) and (R) are true and (R) is the correct explanation of (A).
    (2) Both (A) and (R) are true and (R) is not the correct explanation of (A).
    (3) (A) is true and (R) is false.
    (4) (A) is false and (R) is true.
    Ans: 1
    86. Who among the following economists considered the rate of interest to influence the
    transaction demand for money ?
    (1) P. Samuelson 
    (2) W. J. Baumol
    (3) Keynes 
    (4) I. Fisher
    Ans: 2
    87. Consider the following statements about rising NPAs of banks in India :
    I. Rising NPAs are due to slow down in the world economy.
    II. Private Sector banks have lower NPAs in comparison Public Sector Banks.
    III. Rising NPAs are due to droughts in India.
    Which of the statements given above is/are correct ?
    Codes :
    (1) Only I 
    (2) I and III
    (3) I and II 
    (4) I, II and III
    Ans: 3
    88. Among other things, which one of the following was the purpose for which Deepak
    Pareksh Committee was constituted ?
    (1) To study the socio-economic conditions of minority communities.
    (2) To suggest the measures for financing the development of infrastructure.
    (3) To frame the policies on genetically modified seeds.
    (4) To suggest measures to reduce the fiscal deficit in the Union Budget.
    Ans: 2
    89. Consider the following statements.
    I. Sick Company is defined as one whose accumulated losses in any financial year are equal to or more than 50% of its average net worth during previous four financial years.
    II. The Government set-up Board of Industrial and Financial Reconstruction in 1987.
    Which of the statement given above is/are correct ? Select the answer from the codes
    given below :
    Codes :
    (1) Only I (2) Only II
    (3) Both I and II (4) Neither I nor II
    Ans: 3
    90. Consider the following taxes :
    (i) Corporation tax 
    (ii) Income tax
    (iii) Service tax 
    (iv) Union Excise Duties
    Which of the following correctly describes their contribution, in descending order of importance, to the Central Government’s Gross Tax Revenue ?
    (1) (i), (ii), (iv), (iii) 
    (2) (ii), (i), (iii), (iv)
    (3) (iii), (ii), (i), (iv) 
    (4) (iv), (i), (ii), (iii)
    Ans: 1
    91. Which Finance Commission has used forest cover as a criterion for horizontal distribution of resources in India ?
    (1) 10th Finance Commission 
    (2) 12th Finance Commission
    (3) 13th Finance Commission 
    (4) 14th Finance Commission
    Ans: 4
    92. Consider the following :
    Assertion (A) : According to Peacock-Wiseman hypothesis, public expenditure increases
    overtime in a step by step manner.
    Reason (R) : This hypothesis is based on the displacement effect, concentration effect and inspection effect.
    Select the correct answer from the codes given below :
    Codes :
    (1) (A) is true, but (R) is false.
    (2) (A) is false, but (R) is true.
    (3) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
    (4) Both (A) and (R) are true and (R) is the correct explanation of (A).
    Ans: 4
    93. In the Indian context, the studies of poverty were made by
    (i) Dandekar and Rath 
    (ii) P.K. Bardhan
    (iii) B.S. Minhas 
    (iv) I.J. Ahluwalia
    Select the correct answer from the codes given below :
    Codes :
    (1) (i) and (ii) (2) (ii) and (iii)
    (3) (i), (ii) and (iii) (4) (i), (ii), (iii) and (iv)
    Ans: 3
    94. Who among of the following is associated with the theory of optimal taxation ?
    (1) H. Dalton 
    (2) R.A. Musgrave
    (3) U.K. Hicks 
    (4) G. Mankiw
    Ans: 4
    95. To reach an economically efficient output level, the size of an excise tax imposed on a firm generating negative externality should be
    (1) the firm’s marginal cost
    (2) the social marginal cost
    (3) the difference between the social marginal cost and the firm’s marginal cost
    (4) the sum of the social marginal cost and the firm’s marginal cost.
    Ans: 3
    96. Which among the following is the reason for Convergence exhibited by the Solow growth model ?
    (1) Static capital-labour ratio.
    (2) Declining marginal productivity of capital.
    (3) Neutral technical progress.
    (4) Constant rate of growth of population
    Ans: 2
    97. Who among the following economists was not concerned with the problem of surplus
    labour ?
    (1) W.A. Lewis 
    (2) Gustav Renis and Fei
    (3) R. Nurkse 
    (4) J.S. Mill
    Ans: 4
    98. Match the following lists :
    List – I List – II
    A. Aggregate demand       (i) – a + by
    B. Consumption function (ii) C + I
    C. Aggregate supply           (iii) a + by
    D. Saving functon               (iv) C + S
    Select the correct answer from the codes given below :
    Codes :
    A B C D
    (1) (ii) (i) (iii) (iv)
    (2) (ii) (iv) (iii) (i)
    (3) (ii) (iv) (i) (iii)
    (4) (ii) (iii) (iv) (i)
    Ans: 4
    99. Who is the author of the book, ‘Capital in the Twenty First Century’ ?
    (1) Thomas Piketty 
    (2) Joseph Stiglitz
    (3) A.K. Sen 
    (4) Jagdish Bhagwati
    Ans: 1
    100. Match List – I and II.
    List – I List – II
    (Economic Idea) (Economist)
    A. Life Cycle Hypothesis 
    (i) Karl Marx
    B. Tableau Economique 
    (ii) Alfred Marshall
    C. Cash Balance Approach 
    (iii) Francois Quesnay
    D. Organic Composition of Capital 
    (iv) F. Modigliani
    Select the correct answer from the codes given below :
    Codes :
    A B C D
    (1) (i) (ii) (iii) (iv)
    (2) (iv) (iii) (ii) (i)
    (3) (iv) (iii) (i) (ii)
    (4) (ii) (iv) (i) (iii)
    Ans: 2

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