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013 Economy Previous Year Questions

Economy Previous Year Questions

Q1. Which sentences are correct regarding export in India?
I. 45%-50% of the Indian Exports is contributed by SSI Sector.
II. Direct exports from the SSI Sector account for nearly 45% of total exports.
III. Besides direct exports, it is estimated that smallscale industrial units contribute around 15% to exports indirectly.
(a) I & II (b) I & III
(c) Only II (d) All the above
Ans: (b)

Q2. Identify the correct statement in the context of Coal India Limited:
(a) Coal India Limited (CIL) – a Schedule ‘A’ ‘Navratna’ Public Sector Undertaking under Ministry of Coal, Government of India, has its Headquarters in Mumbai,Maharashtra.
(b) The Indian Institute of Coal Management (IICM) operates under CIL and imparts multi disciplinary management development programs for executives.
(c) Union Government has approved the proposal for disinvestment of 15% equity of the Coal India Ltd. out of its holding of 100% through book building process in the domestic market.
(d) All are correct.
Ans: (b)

Q3. With regard to Co-operative Banks, consider the following statements:
1. Co-operative banks performs all the main banking functions of deposit mobilisation, supply of credit and provision of remittance facilities.
2. All co-operative banks are scheduled banks.
3. They are subject to CRR and SLR requirements as other banks.
Which of the above statements is/are correct?
(a) 2 and 3 only (b) 1 only
(c) 1 and 3 only (d) 1 and 2 only
Ans: (c)

Q4. The outcome of ‘devaluation of currency’ is
(a) Increased export and improvement in balance of payment
(b) Increased export and foreign reserve deficiency
(c) Increased import and improvement in balance of payment
(d) Increased export and import
Ans: (a)

Q5. The countries of the world are economically interdependent. This fact is proved
(a) By turmoil in Iran
(b) By hike in oil prices by OPEC and rise in taxi fares all over
(c) Because India has political relations with almost all countries of the world
(d) Because multinationals have set up a number of projects in India ECONOMICS AND SOCIAL
Ans: (a)

Q6. Which one of the following is the correct statement?
Service tax is a/an
(a) direct tax levied by the Central Government.
(b) indirect tax levied by the Central Government
(c) direct tax levied by the State Government
(d) indirect tax levied by the State Government
Ans: (b)

Q7. Recently, which one of the following currencies has been proposed to be added to the basket of IMF’s SDR?
(a) Ruble (b) Rand
(c) Indian Rupee (d) Renminbi Statement Based MCQ
Ans: (d)

Q8. Which among the following states is the highest producer of Soya bean in India?
(a) Uttar Pradesh (b) Andhra Pradesh
(c) Rajasthan (d) Madhya Pradesh
Ans: (d)

Q9. The Minimum Support Price for agricultural products is recommended by which of the following?
(a) Cabinet Committee on Economic Affairs
(b) Commission for Agricultural Costs and Prices
(c) Agricultural Produce Market Committee
(d) Directorate of Marketing and Inspection
Ans: (b)

Q10. Consider the following statements regarding GDP deflator:
1. It is the ratio of real GDP divided by nominal GDP.
2. The GDP deflator also includes the prices of investment goods, government services and exports, and the price of imports.
Which of the statements given above is/are correct?
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (d)

Q11. Consider the following statements
1. The current global economic crisis owes its genesis to the subprime crisis in the United States.
2. The Indian economy is showing a faster recovery from the economic crisis than its western counterparts.
Which of the statements given above is/are correct?
(a) Only 1 (d) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

Q12. White paper is a
(a) Paper of good quality
(b) Paper having white colour
(c) Document published by the government on matters of national importance
(d) Paper used for bearer bonds
Ans: (c)

Q13. Which of the following terms indicates a mechanism used by commercial banks for providing credit to the government?
(a) Cash Credit Ratio
(b) Debt Service Obligation
(c) Liquidity Adjustment Facility
(d) Statutory Liquidity Ratio
Ans: (d)

Q14. Which of the following taxes is the one by which the revenue collected rises proportionally with income?
1. Regressive tax 2. Progressive tax
3. Corporate tax 4. Proportional tax
(a) 1 only (b) 2 only
(c) 3 only (d) 4 only
Ans: (d)

Q15. Consider the following statements about the Agriculture Income Tax
1. Agriculture Income Tax is levied and collected by the Union Government.
2. Agriculture Income Tax is levied throughout the country in India.
Which of the statements given above is/are correct?
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (d)

Q16. The Cairns Group is a coalition of 19 agricultural exporting countries which account for over 25 per cent of the world’s agricultural export. Which of the following agricultural exporting country is not a member of this group?
(a) Pakistan (b) Brazil
(c) India (d) Uruguay
Ans: (c)

Q17. The ratio of a bank’s cash holdings to its total deposit liabilities is called the
(a) Variable Reserve Ratio
(b) Cash Reserve Ratio
(c) Statuatory Liquidity Ratio
(d) Minimum Reserve Ratio
Ans: (b)

Q18. Which one among the following is a fixed cost to a manufacturing firm in the short run?
(a) Insurance on buildings
(b) Overtime payment to worker
(c) Cost of energy
(d) Cost of raw materials
Ans: (a)

Q19. New high yielding varieties of food crops are different from the conventional in that they need
(a) Less water
(b) Less fertilisers
(c) More water and more fertilisers
(d) Less water and more fertilizers
Ans: (c)

Q20. Which amongst the following provided a common factor for tribal insurrection in India in the 19th century?
(a) Introduction of a new system of land revenue and taxation of tribal products.
(b) Influence of foreign religious missionaries in tribal areas.
(c) Rise of a large number of money lenders, traders and revenue farmers as middlemen in tribal areas.
(d) The complete disruption of the old agrarian order of the tribal com-munities.
Ans: (d)

Q21. Match columns A and B Column A Column A Column B
I. Planned expenditure A. 2,21,733 Crores
II. Non-Planned B. 4,65,277 Crores expenditure
III. Tax revenue C. 13,12,200 Crores
IV. Non-tax revenue D. 9,19,842 Crores
(a) I-c, II-a, III-b, IV-d (b) I-b, II-c, III-d, IV-a
(c) I-a, II-c, III-d, IV-b (d) I-d, II-c, III-d, IV-a
Ans: (b)

Q22. What is a Blue Box subsidy?
I. These include direct payments to farmers to limit production and certain government assistance to encourage agriculture and rural development in developing countries
II. These include government policies of Minimum support Prices (MSP) for agricultural products or any help directly related to production quantities (for
eg. power, fertiliser, seeds, pesticides, irrigation etc.).
III. These include amounts spent on research, disease control, infrastructure and food security
(a) I & III (b) Only I
(c) Only III (d) III & II
Ans: (b)

Q23. Which among the following statements is not true when there is an increase in interest rate in an economy?
(a) Increase in savings (b) Decrease in loan
(c) Increase in production cost (d) Increase in capital return
Ans: (d)

Q24. An economy with very low rate of interest and where economic agents expect the interest rate to rise in future and consequently bond prices to fall, causing capital loss in the economy is going through a situation known as :
(a) Hyperinflation
(b) Double dip recession
(c) Slowdown in the Economy
(d) Liquidity trap
Ans: (d)

Q25. MONEX is associated with
(a) Montreal experiment (b) Monetary experiment
(c) Lunar experiment (d) Monsoon experiment
Ans: (d)

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