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032 Economy Previous Year Questions

Economy Previous Year Questions

Q1. Which of the following precautions has to be taken by a country going for foreign aid?
1. Keeping foreign aid strings-free
2. Keeping the borrowing level low so that country does not fall in a debt trap
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

Q2. Consider the following statements:
1. 14 major dairying states account for more than 90% of India’s Milk Production
2. National Dairy Plan was launched to improve the quality of Milch animals in these 14 states
Which among the above statements is / are correct?
(a) Only 1 is correct
(b) Only 2 is correct
(c) Both 1 and 2 are correct
(d) Neither 1 nor 2 is correct
Ans: (a)

Q3. Which of the following taxes have NOT been subsumed under the Goods & Services Tax?
1. Alcohol for human consumption
2. High Speed Diesel
3. Aviation Turbine fuel
4. Natural Gas
5. Electricity
6. Tobacco
Select the correct answer using the code given below.
(a) 1, 2 and 3 only (b) 1, 2, 3 and 4 only
(c) 1, 2, 3, 4 and 5 only (d) 1, 2, 3, 4, 5 and 6
Ans: (c)

Q4. .
Which of the following committees is/are related with poverty estimation in India?
1. Lakdawala committee
2. Tendulkar committee
3. Rangarajan committee
Select the correct answer from the codes given below:
(a) 1 only
(b) 2 only
(c) 1 and 2 only
(d) 1, 2 and 3
Ans: (d)

Q5. In a perfectly competitive economy production and consumption will both be Pareto optimal, if the economy operates at a point where
(a) there is general equilibrium
(b) output levels are below equilibrium
(c) output levels are above equilibrium
(d) consumption is less than output
Ans: (a)

Q6. The most appropriate source of energy for cooking and lighting purposes in rural India is
(a) Bio-gas
(b) Solar energy
(c) Nuclear energy
(d) Tidal energy
Ans: (*)

Q7. Which one of the following is not a feature of “Value Added Tax”?
(a) It is multi-point destination-based system of taxation.
(b) It is a tax levied on value addition at each stage of transaction in the production- distribution chain.
(c) It is a tax on the final consumption of goods or services and must ultimately be borne by the consumer.
(d) It is basically a subject of the central government and the state governments are only a facilitator for its successful implementation
Ans: (d)

Q8. Inflation, in theory, occurs:
(a) when the price of essential commodities outstrips income
(b) when money supply grows at a higher rate than GDP in real terms
(c) when the exchange rate of a currency falls
(d) when fiscal deficit exceeds balance of payment deficit
Ans: (b)

Q9. What is Co-operative collective farming?
I. Where the society holds the land and leases it to individual members.
II. Where land is irrevocably surrendered to the collective.
III. Where the farmers pool their land and reap the economies of scale, although the ownership continues to remain with the individual farmer.
(a) I & II (b) Only II
(c) Only III (d) None of the above
Ans: (b)

Q10. In a business, raw materials, components, work in progress and finished goods are jointly regarded as
(a) capital stock (b) inventory
(c) investment (d) net worth
Ans: (b)

Q11. Which of the following sectors does not allow upto 100% FDI?
(a) Single brand retail
(b) Roads, Highway, Ports and harbors
(c) Pharmaceuticals
(d) Insurance
Ans: (d)

Q12. Which of the following theories form the basis of international trade ?
1. Absolute cost difference
2. Comparative cost difference
3. Opportunity cost
Select the correct answer using the code given below:
(a) 1 only (b) 2 only
(c) 1 and 2 only (c) 1,2 and 3
Ans: (c)

Q13. Which of the following pairs is correct?
(a) IDBI – Short-term financing
(b) NABARD – Industrial financing
(c) RBI – Long-term financing
(d) RRB – Dispensing rural credit
Ans: (d)

Q14. Supply of money remaining the same when there is an increase in demand for money, there will be
(a) a fall in the level of prices
(b) an increase in the rate of interest
(c) a decrease in the rate of interest
(d) an increase in the level of income and employment
Ans: (b)

Q15. ‘SHG Bank Linkage Programme’ is a programme which encourages India’s banks to lend to self-help groups
(SHGs) composed mainly of poor women, this has evolved into an important Indian tool for microfinance.
This programme was initiated by ?
(a) Reserve Bank of India (RBI)
(b) Agricultural Refinance and Development Corporation (ARDC)
(c) National Bank for Agriculture and Rural Development (NABARD)
(d) Non-Banking Finance Companies (NBFC)
Ans: (c)

Q16. Which state government has launched mobile App “Mera Hunar” for job aspirants?
(a) Andhra Pradesh (b) Assam
(c) Himachal Pradesh (d) Kerala
Ans: (c)

Q17. The monetary policy is India is formulated by
(a) Central Government
(b) Industrial Financial Corporation of India
(c) Reserve Bank of India
(d) Industrial Development Bank of India
Ans: (c)

Q18. Which of the following are not correct about Gender Inequality Index?
1. It measures economic loss, within a country due to gender inequality.
2. It uses three dimensions: reproductive health, empowerment and labour market participation.
3. There were no previous indicators to measure gender inequality before the introduction of Gender Inequality Index.
4. Gender inequality is measured on the range of 0 to 1, where 1 represents fair equality and 0 represents poor equality.
Which the correct answer using the codes given below:
(a) 1 and 3 only
(b) 2 and 4 only
(c) 3 and 4 only
(d) 1, 2, 3 and 4
Ans: (c)

Q19. Which of the following statements (s) are true with respect to the concept of “EFFICIENCY” as used in mainstream economics?
1. Efficiency occurs when no possible recorganisation of production can make anyone better off with out making someone else worse off
2. An economy is elearly inefficient if it is inside the Production Possibility Frontier (PPF)
3. At a minimum, an efficient economy is on its Production Possibility Frontier (PPF)
4. The terms such as ‘ Pareto Efficiency’, ‘Pareto Optimality’ and ‘Allocative Efficiency’ are all essentially one and same which denote ‘efficiency in resource allocation’
Select the correct answer using the code given below :
(a) 1 and 4 only (b) 1 and 3 only
(c) 2 and 3 only (d) 1, 2, 3 and 4
Ans: (d)

Q20. Match the columns :
List-I (Industry) List-II (Places)
A. Pottery : 1. Firozabad
B. Bangles : 2. Trivandrum
C. Wooden carvings : 3. Bhagalpur
D. Silk : 4. Mirzapur
Select the correct answer from the codes given below:
(a) 4 1 2 3
(b) 3 4 2 1
(c) 2 1 3 4
(d) 4 2 1 3
Ans: (a)

Q21. A decrease in tax to GDP ratio of a country indicates which of the following?
1. Slowing economic growth rates
2. Less equitable distribution of national income
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: (d)

Q22. What do we call an arrangement whereby an issuing Bank at the request of the Importer (Buyer) undertakes to make payment to the exporter (Beneficiary) against stipulated documents?
(a) Bill of Exchange
(b) Letter of Exchange
(c) Letter of Credit
(d) Bill of Entry
Ans: (c)

Q23. Consider the following statements about GST
1. Both Central and State taxes will be collected at the point of sale.
2. The Central and State GST will be charged on the manufacturing cost.
Which of the above statements are correct?
(a) Only 1 (b) Only 2
(c) Both (d) None
Ans: (c)

Q24. Which of the following dimension is/are not used in Gender Inequality Index?
1. Reproductive health of women.
2. Empowerment of women.
3. Participation of women in the Labor market.
Select the correct answer using the codes given below:
(a) 1 only (b) 2 only
(c) 2 and 3 only (d) None of the above
Ans: (d)

Q25. Which one of the following is capital receipt in government budget?
(a) Interest receipts of loans given by the Government to other parties.
(b) Dividends and profits from public sector undertakings
(c) Borrowing of the Government from public
(d) Property tax receipts
Ans: (a)

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