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024 Economy Previous Year Questions

Economy Previous Year Questions

Q1. Consider the following sectors of Indian Economy :
1. Construction
2. Mining
3. Manufacturing
4. Electricity
Which of the above given sectors is/are NOT included in calculating Index of Industrial Production?
(a) 1 only (b) 1 and 2 only
(c) 2 and 3 only (d) 3 and 4 only
Ans: (a)

Q2. The growth rate of which one of the following sectors has very low employment elasticity?
(a) Manufacturing
(b) Construction
(c) Financial services
(d) Mixed farming
Ans: (d)

Q3. Which among the following is a most suitable example of double counting in national income ?
(a) Wages of bus and train drivers.
(b) Cotton output and cotton cloth output.
(c) Electricity output and water output.
(d) Tax receipts and earnings of inland revenue officials.
Ans: (b)

Q4. The _____ is the total amount of monetary assets available in an economy at a specific time.
1. Money Supply 2. Money Stock
3. Money Demand 4. Stock in Demand
Choose the correct answer from the above code:
(a) 1 and 2 (b) 3 and 4
(c) 1 and 3 (d) 2 and 4
Ans: (a)

Q5. Consider the following:
1. International Bank for Reconstruction and Development (IBRD)
2. International Development Association (IDA)
3. International Finance Corporation (IFC)
4. Multilateral Investment Guarantee Agency (MIGA)
5. International Centre for Settlement of Investment Disputes (ICSID)
Which among the above constitute the World Bank group?
(a) 1 2 (b) 1 2 3
(c) 1 2 3 4 (d) 1 2 3 4 5
Ans: (d)

Q6. Which of the following statements is/are true about the Gross Domestic Product (GDP)?
1. Nominal GDP is calculated at the current price and it is adjusted with inflation.
2. The real GDP is adjusted with inflation.
Select the correct answer using the codes given below:
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

Q7. With reference to “Agflation”, which of the following statement(s) is/are correct?
1. Agflation is inflation due to rise in Agricultural commodity prices.
2. During agflation, processes of inflation and deflation occur simultaneously.
Correct code:
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

Q8. Which of the following taxes is/are levied by the Union and collected and appropriated by the States?
(a) Stamp Duties
(b) Passenger and Goods Tax
(c) Estate Duty
(d) Taxes on Newspapers
Ans: (a)

Q9. Consider the following statements in regard to Gross National product (GNP):
1. Gross National Product refers to the money value of total output or production of final goods and services produced by the nationals of a country during a given period of time.
2. In the calculation of GNP, we include the money value of goods and services produced by nationals outside the country
(a) 1 only (b) 2 only
(c) Neither 1 nor 2 (d) Both1 and 2
Ans: (d)

Q10. What is/are the purpose/purposes of the ‘Marginal Cost of Funds based Lending Rate (MCLR)’ announced by RBI?
1. These guidelines help improve the transparency in the methodology followed by banks for determining the interest rates on advances.
2. These guidelines help ensure availability of bank credit at interest rates which are fair to the borrowers as well as the banks.
Select the correct answer using the code given below.
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

Q11. Consider the following statements:
I. Agriculture, horticulture, poultry, fisheries and dairying have been included in export-oriented units.
II. Export processing zone units have also been allowed to export through trading and star trading houses and can have equipment on lease.
Which of the following statements are true regarding Export Units:
(a) Only II (b) Only I
(c) Both I & II (d) None of the above
Ans: (c)

Q12. Consider the following statements about bullish sentiment in the share market:
1. It is always profitable for stock exchange.
2. It is always good for economy.
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: (a)

Q13. Match the following:
Town Type of Industry
I. Buenos Aires A. Wine
II. Cadiz B. Silk
III. Lyons C. Cork
IV. Oporto D. Dairy products Correct:
(a) I–D, II–C, III–B, IV–A (b) I–C, II–D, III–B, IV–A
(c) I–C, II–D, III–A, IV–B (d) I–D, II–C, III–A, IV–B
Ans: (a)

Q14. The Eighth Five-Year Plan is different from the earlier ones. The critical difference lies in the fact that:
(a) it has a considerably larger outlay compared to the earlier plans
(b) it has a major thrust on agricultural and rural development
(c) considerable emphasis is placed on infrastructure growth
(d) industrial licensing has been abolished.
Ans: (a)

Q15. Structural unemployment arises due to:
(a) deflationary conditions
(b) heavy industry bias
(c) shortage of raw materials
(d) inadequate productive capacity
Ans: (d)

Q16. Consider the following statements
(i) A subsidiary Company is one in which a parent company holds more than 50% of its shares.
(ii) Associate company is one where another company holds at least 20% of its shares
Which of the following statement is/are correct?
(a) Only I
(b) Only II
(c) Both I and II
(d) None of the Above
Ans: (c)

Q17. Which of the following recommendations were given by Bimal Jalan committee on Market Infrastructure Institutions (MII’s)?
1. To allow the three tiers of MII’s which are depositories, exchange markets and clearing corporation to be listed on stock exchanges i.e. demutualization is advised.
2. Limit, upto which Anchor Institutional Investors can invest, should be increased.
3. Minimum capital required for an exchange should be Rs 100 crore.
Select the correct answer using the codes given below:-
(a) 1 and 2 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 and 3
Ans: (c)

Q18. Consider the following statements regarding Commodity Transaction Tax in India:
1. It is levied only on the non-agricultural commodity futures.
2. Any loss of traders in the commodity derivative segment, due to such transactions, can be set off against income from any other source.
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)

Q19. Consider the following statements regarding World Economic Situation and Prospects:
1. It is published by the International Monetary Fund (IMF)
2. It is published annually
Which of the above statements is/are correct?
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) None of these
Ans: (b)

Q20. Match List I with List II and select the correct answer using the codes given below the lists:
List I : List II
(Agricultural products) : (Foremost producer)
A. Cotton : 1. Madhya Pradesh
B. Gram : 2. Gujarat
C. Black pepper : 3. West Bengal
D. Pineapple : 4. Kerala
(a) 2 1 4 3
(b) 2 1 3 4
(c) 1 2 4 3
(d) 1 2 3 4
Ans: (a)

Q21. PEARL is a programme related to
(a) improvement of gems and jewellery export
(b) pet awareness and rescue
(c) knowledge sharing on urban reforms and city governance
(d) quality enhancement of processed food for export
Ans: (c)

Q22. Tourism industries India is quite a small compared to many other countries in term of India potentials and size.
Which one of the following statement is correct in this regard?
(a) Distances in India are too far apart and its luxury hotels are too expensive for western tourists
(b) For most of the months India is too hot for western tourist to feel comfortable
(c) Most of the picturesque resort in India such as in North- East and Kashmir are, for all practical purposes, out of bounds
(d) In India the infrastructure required for attracting tourists is inadequate
Ans: (d)

Q23. FDI Restrictiveness Index gauges the restrictiveness of a country’s FDI rules by looking at the four main types of restrictions. Which of the following are amongst those restrictions?
1. Foreign equity limitations
2. Restrictions on the employment of foreigners as key personnel
3. Restrictions on number of economic sectors for FDI
4. Screening of approval mechanism
Select the correct answer using the codes given below:
(a) 1, 2 and 3 only
(b) 1, 2 and 4 only
(c) 3 and 4 only
(d) 1 and 4 only
Ans: (b)

Q24. Consider the following statements in regard to ‘Marginal Standing Facility (MSF)’ of RBI :
1. It will help in reducing volatility in the overnight lending rates in the inter-bank market.
2. The borrowing under the MSF should be over and above the statutory liquidity requirement.
Which of the statement(s) given above is/ are correct?
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

Q25. Which of the following countries is part of Asia-Pacific Economic Co-operation?
1. United States of America 2. Australia
3. China 4. India
5. Canada 6. Japan
Which the correct answer using the code given below.
(a) 1, 2, 3, 5 and 6 only (b) 2, 3, 4 and 6 only
(c) 1, 2, 5 and 6 only (d) 1, 2, 3, 4, 5 and 6
Ans: (a)

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