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017 Economy Previous Year Questions

Economy Previous Year Questions

Q1. Which of the following is associated with Fiscal policy?
(a) Inflation (b) Taxation
(c) Consumption (d) Money Supply
Ans: (b)

Q2. A market in which there are large numbers of sellers of a particular product, but each seller sells somewhat differentiated but close products is termed as
(a) Perfect competition (b) Monopoly
(c) Monopolistic competition(d) Oligopoly
Ans: (c)

Q3. Rotation of crops means
(a) Different crops are grown in succession to maintain the soil fertility
(b) Growing two crops at the same time
(c) Same crop is grown after some time
(d) None of the above
Ans: (a)

Q4. In the context of Indian economy, Open Market Operations’ refers to
(a) borrowing by scheduled banks from the RBI
(b) lending by commercial banks to industry and trade
(c) purchase and sale of government securities by the RBI
(d) None of the above
Ans: (c)

Q5. Which of the following would best describe the role of a merchant bank?
(a) To monitor the activities of publicly-list companies
(b) To act as banker and financial agent to the federal government
(c) To provide borrowing and leading services, primarily to the business sector
(d) To provide loans to the corporate sector through receipts of insurance premiums
Ans: (c)

Q6. Name the Bill which has been passed by the Rajya Sabha on August 3.
(a) Goods and Services Tax (GST) Constitutional Amendment Bill
(b) Women’s Reservation Bill
(c) The Muslim Women (Protection of Rights on Divorce) Act
(d) Foreign Exchange Management Act
(e) Fiscal Responsibility and Budget Management Act
Ans: (a)

Q7. An exceptional demand curve is one that moves
(a) upward to the right (b) downward to the right
(c) horizontally (d) vertically
Ans: (b)

Q8. Which of the following may be said to be the causal factors of sovereign debt crisis in Eurozone?
1. Limited levage given to the regulatory framework of monetary union.
2. Banks had too many risky loans and securities on their balance sheets.
3. Germany’s role in making ‘Stability and Growth Pact’ markedly stronger.
Which the correct answer using the codes given below:
(a) 1 and 2 only (b) 2 and 3 only
(c) 1 and 3 only (d) 1, 2 and 3
Ans: (a)

Q9. Which of the following statements are correct?
1. Ability to pay principle of taxation holds that the amount of taxes people pay should relate to their income or wealth
2. The Benefit Principle of taxation states that individuals should be taxed in proportion to the benefit they receive from Government programmes
3. A progressive tax takes a larger share of tax from poor families than it does from rich families
4. Indirect taxes have the advantage of being cheaper and easier to collect
Select the correct answer using the code given below:
(a) 1 and 3 only (b) 2 and 4 only
(c) 1, 2 and 4 only (d) 1, 2, 3 and 4
Ans: (c)

Q10. One of the elements mentioned as the strategy for industrial development in the Seventh Five-Year Plan is to usher in ‘sunrise industries’. ‘Sunrise industries’ refers to those industries which have
(a) High growth potential and relevance to our needs
(b) High employment potential
(c) Capacity to face international competition
(d) High import substitution potential
Ans: (a)

Q11. With reference to inflation in India, which of the following statements is correct?
(a) Controlling the inflation in India is the responsibility of the Government of India only
(b) The Reserve Bank of India has no role in controlling the inflation
(c) Decreased money circulation helps in controlling the inflation
(d) Increased money circulation helps in controlling the inflation
Ans: (c)

Q12. An excise duty is a charge on which of the following?
(a) Export of goods
(b) Production of goods
(c) Production or sale of goods
(d) Consumption of good
Ans: (c)

Q13. What are common challenges for India in regaining competitiveness in Apparel and Leather Sector?
1. Stringent Labour regulations.
2. Skewed taxation & tariff policies.
3. Poor logistics
4. Discrimination in export markets
5. Limited availability of cattle for slaughter despite a large cattle population.
Identify the correct statements:
(a) All except 5 (b) 2 & 3 only
(c) All are correct (d) None are correct
Ans: (a)

Q14. Consider the following statements:
1. In India people migrate from rural to urban areas mainly due to poverty, high population pressure on the land, lack of basic infrastructural facilities like health care, education etc.
2. The most important pull factor for majority of the rural migrants to urban areas is better opportunities, availability of regular work and relatively higher wages.
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: (c)

Q15. Consider the following statements:
1. The Budget makes a distinction between the expenditure ‘charged’ on the Consolidated Fund of India (CFI) and the expenditure ‘made’ from the CFI.
2. The Budget should be prepared on the basis of gross estimates and not net estimates.
Which of the above statements is/are correct?
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

Q16. Which one of the following is not an exclusive right of the concerned coastal nations over Exclusive Economic Zone
(a) Survey and exploitation of mineral resources of ocean deposits
(b) Exploitation of marined water energy and marine organisms including fishing
(c) Conservation and management of marine resources
(d) Navigation of ships and laying down submarine cables
Ans: (a)

Q17. In which of the following products has Bangladesh emerged as the main competitor to India in the world market?
(a) Cotton garments
(b) Jute
(c) Cement
(d) Pharmaceuticals
Ans: (b)

Q18. ‘SWAYAM’, an initiative of the Government of India, aims at
(a) Promoting the Self Help Groups in rural areas
(b) Providing financial and technical assistance to young start-up entrepreneurs
(c) Promoting the education and health of adolescent girls
(d) Providing affordable and quality education to the citizens for free
Ans: (d)

Q19. Consider the following statements regarding Non-
Banking Finance Companies (NBFCs):
1. NBFCs can also engage in Micro-Finance Activities.
2. Housing-finance companies form a distinct subgroup of the NBFCs.
3. The deposit insurance facility of the Deposit Insurance and Credit Guarantee Corporation is not available for NBFC depositors.
Which among the above statement(s) is/are not correct?
(a) Only 1 (b) 1 and 3
(c) All of there (d) None of these
Ans: (d)

Q20. A systematic record of all economic transactions completed between residents of a country and the rest of the world in a year is known as..?
(a) Net Capital Flow (b) Balance of Payment
(c) Balance of Trade (d) Absolute Flow
Ans: (b)

Q21. In terms of share in person days under the Mahatma Gandhi National Rural Employment Guarntee Act (MGNREGA), the share of women was highest in which of the following State?
(a) Uttar Pradesh (b) Punjab
(c) Kerala (d) Tamil Nadu
Ans: (c)

Q22. Which of the following statements regarding the ‘Law of demand’ are correct?
1. Price of commodity is an independent variable.
2. Quantity demanded is a dependent variable.
3. Reciprocal relationship is found between price and quantity demanded.
Which the correct answer using the codes given below:
(a) 1 and 2 only (b) 2 and 3 only
(c) 1 and 3 only (d) 1, 2 and 3
Ans: (d)

Q23. When partial convertibility obtains the exchange rate is
(a) a weighted average
(b) a simple average
(c) fully floating
(d) fully administered
Ans: (a)

Q24. Which one among the following countries has the lowest GDP per capita?
(a) China (b) India
(c) Indonesia (d) Sri Lanka
Ans: (b)

Q25. In the context of Indian economy, which of the following is/are the purpose/purposes of ‘Statutory Reserve Requirements’?
1. To enable the Central Bank to control the amount of advances the banks can create
2. To make the people’s deposits with banks safe and liquid
3. To prevent the commercial banks from making excessive profits
4. To force the banks to have sufficient vault cash to meet their day-to-day requirements
Select the correct answer using the code given below.
(a) 1 only (b) 1 and 2 only
(c) 2 and 3 only (d) 1, 2, 3 and 4
Ans: (b)

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