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023 Economy Previous Year Questions

Economy Previous Year Questions

Q1. Why is the government of India disinvesting its equity in the central public sector enterprises
1. The government intends to use the revenue earned from the disinvest-ment mainly to pay back the external debt.
2. The government no longer intends to retain the management control of the CPSEs.
Which the correct statement given above is/are correct?
(a) 1 only.
(b) 2 only.
(c) Both 1 and 2.
(d) Neither 1 nor 2
Ans: (d)

Q2. Which of the following is not a function of the Securities and Exchange Board of India (SEBI)?
(a) Supervising the working of the Stock Exchanges
(b) Underwriting new capital issues
(c) Regulating merchant banks and mutual funds
(d) promoting the development of a healthy capital market
Ans: (b)

Q3. What are short term loans?
I. These are provided for a period of less than 15 months to meet out expenses of routine farming and domestic consumptions.
II. These are provided for a period of 15 months to 5 years to purchase agricultural equipments, animals and for land improvements.
III. These are provided for a period of more than 5 years.
(a) Only II (b) Only I
(c) Only III (d) None of the above
Ans: (b)

Q4. When income increases, consumption also increases:
(a) In a lower proportion (b) In a same proportion
(c) In a higher proportion (d) None of the option
Ans: (a)

Q5. Which of the following policies is best suited to tackle problem of unemployment in India?
(a) Restrict labor migration from one state to other
(b) Encouraging labor-intensive farming system
(c) Encouraging labor-intensive industries like food-processing
(d) Make it mandatory for the PSUs to employ a minimum number of employees
Ans: (c)

Q6. The way total output changes due to change in all inputs in same proportion is known as law of
(a) Returns to scale (b) Diminishing returns
(c) Increasing returns (d) Constant returns
Ans: (a)

Q7. The areas in India that receive approximately an average of more than 200 cm of rainfall annually are
(a) Meghalaya, Assam, Nagaland, Arunachal Pradesh
(b) Orissa, Madhya Pradesh, Gujarat, Maharashtra
(c) Meghalaya, Assam, Rajasthan, Jammu & Kashmir
(d) Meghalaya, Delhi, Punjab, Rajasthan
Ans: (a)

Q8. A rise in general level of prices may be caused by
1. an increase in the money supply
2. a decrease in the aggregate level of output
3. an increase in the effective demand
Select the correct answer using the codes given below.
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
Ans: (d)

Q9. Which of the following could be a cause of demand inflation?
(a) An increase in the cost of labour
(b) An increase in domestic interest rates
(c) An increase in the level of consumer spending
(d) An increase in import prices, resulting from a depreciating dollar
Ans: (c)

Q10. The Economic Survey enumerated three downside risks.
Which one is not among them?
(a) oil prices rise would increase the drag from consumption
(b) options a) and c)
(c) turmoil in global could worsen the outlook of exports.
(d) Subsidy in LPG will hampered the Growth
Ans: (d)

Q11. In Economics the ‘Utility’ and ‘Usefulness’ have
(a) same meaning (b) different meaning
(c) opposite meaning (d) None of the above
Ans: (b)

Q12. Which of the following is features of ETF?
(a) It inherits the features of open ended and close ended mutual funds.
(b) It tracks the price of commodities.
(c) It never leaves the commodity.
(d) All of these
Ans: (d)

Q13. Which of the following is /are example (s) of ‘Near Money’?
1. Treasury Bill
2. Credit Card
3. Saving accounts and small time deposits
4. Retail money market mutual funds
Select the correct answer using the code given below:
(a) 1 only (b) 2 only
(c) 1, 2 and 3 (d) 1, 3 and 4
Ans: (d)

Q14. Which of the following statements are true of the Congress Socialist Party?
1. It was a forum for various kinds of Socialists in India.
2. It was a rival organisation of Indian National Congress.
3. It championed the cause of workers and peasants.
Choose the correct answer from the codes given below:
(a) 1,2 and 3
(b) 1 and 2 only
(c) 1 and 3 only
(d) 2 and 3 only
Ans: (c)

Q15. Which one of the following best describes the main objective of ‘Seed Village Concept?
(a) Encouraging the farmers to use their own farm seeds and discouraging them to buy the seeds from others
(b) Involving the farmers for training in quality seed production and thereby to make available quality seeds to others at appropriate time and affordable cost
(c) Earmarking some villages exclusively for the production of certified seeds
(d) Identifying the entrepreneurs in village and providing them technology and finance to set up seed companies
Ans: (b)

Q16. Which among the following is a correct definition of currency drain?
(a) A currency drain is an export of the domestic currency
(b) A currency drain is an increase in currency held outside the banks.
(c) A currency drain is the currency holding by a parallel economy
(d) None of these
Ans: (b)

Q17. Which of the following subjects will be omitted from the Seventh Schedule?
1. Entry 54 from State List
2. Entry 55 from State List
3. Entry 92 and 92C from Union List
(a) 1, 2 (b) 2, 3
(c) 1, 3 (d) All of the above
Ans: (b)

Q18. According to the Ocean Health Index the researchers measured the oceans in 10 categories, which of the following category belong to the Ocean Health Index?
1. Food provision.
2. Coastal protection.
3. Carbon storage.
4. Piracy.
5. Tourism and Recreaton
Select the correct answer by using the codes given below:
(a) 1, 2 and 3 only (b) 3, 4 and 5 only
(c) 1, 2, 3 and 5 only (d) 2, 3 and 4 only
Ans: (c)

Q19. Consider the following statements:
1. Indicative Planning is adopted in socialist country where all the resource owned by state and the decisions related to production, consumption, saving, capital formation and distribution are taken by the state.
2. Inducement Planning is generally adopted in mixed type of economy where public and private sector co-exist.
Which of the statements given above is/are incorrect?
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

Q20. Consider the following statements about impact of tax:
1. A tax is shifted forward to consumers if the demand is inelastic relative to supply.
2. A tax is shifted backward to producers if the supply is relatively more inelastic than demand.
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)

Q21. The data collection for national income estimation in India is done by
(a) National Sample Survey Organisation
(b) Finance Ministry of the Govt. of India
(c) Central Statistical Institute/Organisation
(d) Indian Statistical Institute
Ans: (a)

Q22. ‘European Stability Mechanism’, sometimes seen in the news, is an
(a) agency created by EU to deal with the impact of millions of refugees arriving from Middle East
(b) agency of EU that provides financial assistance to eurozone countries
(c) agency of EU to deal with all the bilateral and multilateral agreements on trade
(d) agency of EU to deal with the conflict arising among the member countries
Ans: (b)

Q23. Which among the following are the wholly/partly owned subsidiaries of the Reserve Bank of India (RBI)?
1. Deposit Insurance and Credit Guarantee Corporation
2. National Housing Bank (NHB)
3. National Bank for Agriculture and Rural Development (NABARD)
4. Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL)
(a) 1 and 4 (b) 1, 2 and 4
(c) 2, 3 and 4 (d) All of them
Ans: (d)

Q24. TANKAN is revision of the Industry Classification of the Short-term Economic Survey of Enterprises (usually quarterly) is used in following country ?
(a) Japan (b) South Korea
(c) China (d) All of them
Ans: (a)

Q25. Permissible activities as stipulated under Mahatma Gandhi NREGA are as under:
1. Drought proofing (including afforestation and tree plantation).
2. Provision of irrigation facility, horticulture plantation and land development facilities to land owned by households belonging to the Schedule Castes and Schedule Tribes.
3. Any other work which may be notified by the State Government in consultation with the Central Government.
Which of the above statement(s) is/are incorrect?
(a) 3 only (b) 1 and 3 only
(c) 2 and 3 only (d) None of the above
Ans: (a)

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