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034 Economy Previous Year Questions

Economy Previous Year Questions

Q1. ‘Eco mark’ is given to the Indian products that are
(a) pure and unadulterated
(b) rich in proteins
(c) environment friendly
(d) economically viable
Ans: (c)

Q2. The natural rate of unemployment is likely to fall if:
(a) unemployment benefits increase
(b) income tax increases
(c) more training is available for the unemployed
(d) geographical immobility increases
Ans: (c)

Q3. Disguised unemployment generally means
(a) large number of people remain unemployed
(b) alternative employment is not available
(c) marginal productivity of labour is zero
(d) productivity of workers is low
Ans: (c)

Q4. Consider the following statement in regards to ‘Reinsurance’:
1. Reinsurance is taken by companies and individuals to get double benefit out of insurance policies.
2. The final liability towards the policyholder lies with the reinsurance company and not the initial insurer.
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)

Q5. Among other things, which one of the following was the purpose for which the Deepak Parekh committee was constituted?
(a) To study the current socio-economic conditions of certain minority communities.
(b) To suggest measures for financing the development of Infrastructure.
(c) To frame a policy on the production of genetically modified organisms.
(d) To suggest measures to reduce the fiscal deficit in the Union Budget.
Ans: (b)

Q6. Consider the following statements regarding recommendations of the Committee on Digital Payment:
1. A fund called DIPAYAN (Digital Payments Action Network) should be created using savings generated from cashless transactions
2. A cash handling charge should be levied for transactions above a certain threshold
3. The government should promote digital payments for its own transactions
Which of the recommendations mentioned above are given by the Committee on Digital Payment?
(a) 1 and 2 only (b) 2 and 3 only
(c) 1 and 3 only (d) 1, 2 and 3
Ans: (d)

Q7. Resurgent India Bonds were issued in US Dollar, Pound Sterling and
(a) Japanese Yen
(b) Deutsche Mark
(c) Euro
(d) French Franc
Ans: (b)

Q8. Which of the statement is true regarding the NDC
1. to prescribe guidelines for the formulation of the National Plan, including the assessment of resources for the Plan;
2. to consider the National Plan as formulated by the Planning Commission;
3. to consider important questions of social and economic policy affecting national development; and
4. to review the working of the Plan from time to time and to recommend such measures as are necessary for achieving the aims and targets set out in the National Plan.
(a) Only 1, 2,and 3 (b) Only 2, 3
(c) Only 1 and 2 (d) All of them
Ans: (d)

Q9. 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)

Q10. Which of the following statements is not correct about Trans Asian Railway Project (TAR)?
(a) The Trans-Asian Railway (TAR) is a project to create an integrated freight railway network across Europe and Asia.
(b) The Trans Asian Railway Project (TAR) is a project of the International Bank for Reconstruction and Development
(IBRD).
(c) It was also seen as a way to improve the economies and accessibility of landlocked countries like Laos, Afghanistan, Mongolia, and the Central Asian republics.
(d) The route will enter India at Tamu, bordering Myanmar and on the west side, the route enters Pakistan at Attari.
Ans: (b)

Q11. Which of following statements is wrong about Deflation?
(a) Deflation emerges when the government withdraws currency from circulation.
(b) Deflation emerges when government imposes heavy indirect taxes.
(c) Deflation emerges when the Central Bank sells the securities in open market.
(d) Deflation emerges when Central Bank increases the Bank rate.
Ans: (b)

Q12. Economic growth is dependent mainly on
(a) Level of consumption (b) Price stability
(c) Level of investment (d) Population growth
Ans: (c)

Q13. Consider the following statements: Full convertibility of the rupee may mean
1. its free float with other international currencies.
2. its direct exchange with any other international currency at any prescribed place inside and outside the country.
3. it acts just like any other international currency.
Which of these statements are correct?
(a) 1 and 2
(b) 1 and 3
(c) 2 and 3
(d) 1, 2 and 3
Ans: (a)

Q14. States’ debt does not include:
(a) loos from State Bank of India
(b) loans from the Central government
(c) provident fund
(d) treasury bills issued to inter-national financial institutions
Ans: (d)

Q15. Which one of the following agencies is not included in the operation of the Kisan Credit Cards?
(a) Co-operative Banks
(b) Regional Rural Banks
(c) Scheduled Commercial Banks
(d) NABARD
Ans: (d)

Q16. Which of the following organizations publishes the Global Innovation Index ?
(a) Cornell University
(b) INSEAD
(c) World Intellectual Property Organization (WIPO)
(d) All of the above
Ans: (d)

Q17. Consider the following statements regarding the demand curve:
1. If there is an increase in the price of a substitute goods demand curve shifts rightward.
2. If there is an increase in the price of complementary goods the demand curve shifts rightward.
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)

Q18. Economies of Scale means reduction in
(a) unit cost of production
(b) unit cost of distribution
(c) total cost of production
(d) total cost of distribution
Ans: (a)

Q19. Maximum number of workers are employed in which of the following industries in India?
(a) Sugar
(b) Textiles
(c) Jute
(d) Iron and Steel
Ans: (b)

Q20. Participatory Notes (PNs) are associated with which one of the following?
(a) Consolidated Fund of India
(b) Foreign Institutional Investors
(c) United Nations Development Programme
(d) Kyoto Protocol
Ans: (b)

Q21. Which of the following are among the non-plan expenditures of the Government of India?
1. Defence expenditure
2. Subsidies
3. All expenditures linked with the previous plan periods
4. Interest payment
Codes:
(a) 1 and 2 (b) 1 and 3
(c) 2 and 4 (d) 1, 2, 3 and 4
Ans: (d)

Q22. With reference to Indian agriculture, consider the following statements:
1. Agriculture provides direct livelihood to 59% of the labour force in India.
2. It contributes more than 20% to the GDP
3. It accounts for about 10% of the total value of India’s commodity exports
4. Almost 80% of the area under agriculture is irrigated.
Which of the above statement/s is/are correct?
(a) 1, 2, 3 and 4 (b) 1, 2 and 3
(c) 3 only (d) 4 only
Ans: (b)

Q23. India is a signatory/member of which of the following?
1. OPEC
2. The Wassenaar Arrangement
3. Mercosur
Select the correct answer using the codes given below:
(a) 1 and 2 only (b) 3 only
(c) 1, 2 and 3 (d) None of the above
Ans: (d)

Q24. In a bid to strengthen cyber security system, the Reserve Bank of India (RBI) has set up an inter-disciplinary panel on cyber security; with reference to this context consider the following statements:
1. It is being constituted to review the threats inherent in the emerging technology only.
2. It is being constituted to study adoption of various security standards or protocols.
3. It is being constituted to interface with stakeholders.
Which of the statements given above is/are correct?
(a) 1 and 3 only (b) 2 and 3 only
(c) 1 only (d) 1, 2 and 3
Ans: (b)

Q25. India’s market regulator SEBI is on course to relax investment norms for sovereign wealth funds, the investment vehicles which are directly controlled by the government of a country.
The main reason behind this move is
(a) the desire of the Government of India to attract more foreign investment
(b) pressure by foreign Governments on India to execute specific mutual agreements on financial services.
(c) SEBI’s desire to create a more level playing field for foreign investors
(d) RBI’s relevant directives to SEBI
Ans: (a)

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