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038 Economy Previous Year Questions

Economy Previous Year Questions

Q1. A recent survey (by Bloomberg) shows that the USA has fallen behind emerging markets in Brazil, China and India as the preferred place to invest. Why is it so?
1. Unstable economic situation of the USA which the global investors feel not likely to improve in the near future.
2. Global investors are finding Brazil, China and India to be actually more amenable to foreign investment.
Select the correct answer using the code given below
(a) Only 1 (b) only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

Q2. Wealth tax on agricultural property is levied by
(a) Central Government
(b) State Government
(c) Both the Central and State Governments
(d) None of the above
Ans: (b)

Q3. In the context of governance, consider the following:
1. Encouraging Foreign Direct Investment inflows
2. Privatization of higher educational Institutions
3. Down-sizing of bureaucracy
4. Selling/offloading the shares of Public Sector Undertakings
Which of the above can be used as measures to control the fiscal deficit in India?
(a) 1,2 and 3
(b) 2, 3 and 4
(c) 1, 2 and 4
(d) 3 and 4 only
Ans: (d)

Q4. Choose the correct one from the following.
1. Revenue deficit = Revenue expenditure – Revenue receipts
2. Revenue deficit = Revenue receipts – Revenue expenditure
3. Revenue deficit = Revenue receipts – Total expenditure
4. Revenue deficit = Revenue expenditure – Total receipts
(a) 1 only (b) 1 and 2
(c) 3 only (d) 1, 2, 3 and 4
Ans: (a)

Q5. Consider the following statements:
1. Most of the wool produced in India is not enough to fulfill demand of the country
2. Most of the wool produced in India is NOT of apparel grade
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: (c)

Q6. Which of the following will result in an increase in interest rate?
(a) The government increasing its defence expenditure
(b) RBI selling bonds through open market operations
(c) RBI releasing high powered money into the economy
(d) The government decreasing the tax rate
Ans: (b)

Q7. Consider the following statements regarding the Food Security Mission of India:
1. The resolution to launch the mission was adopted by the National Development Council.
2. It is sponsored by the Central Government.
3. Only food grains are covered under the mission.
Which of the statements given above are correct?
(a) 1 and 2 only (b) 2 and 3 only
(c) 1 and 3 only (d) 1, 2 and 3
Ans: (a)

Q8. The income elasticity of demand for inferior goods is
(a) less than one (b) less than zero
(c) equal to one (d) greater than one
Ans: (b)

Q9. World Bank loan is given to
(a) Make available the currency of a particular country in case of shortage
(b) Countries for sound projects for development purposes
(c) Improve the social and cultural conditions of a country
(d) None of these
Ans: (*)

Q10. Karl Marx explained the process of class struggle with the help of which one of the following theories?
(a) Empirical liberalism.
(b) Existentialism.
(c) Darwin’s theory of evolution.
(d) Dialectical materialism
Ans: (d)

Q11. Which of the following is not true of the Regional Rural Banks (RRBs)?
(a) They provide direct loans to small and marginal farmers;
(b) They are co-sponsored by Reserve Bank of India;
(c) They also perform other banking operations;
(d) State Governments are share-holders in RRBs.
Ans: (b)

Q12. NABARD took over the function of which all institutes?
I. Agricultural Credit Development (ACD)
II. Rural Planning and Credit Cell (RPCC) of RBI
III. Agricultural Refinance Development Corporation
(ARDC)
IV. State Co-operative Agricultural and Rural Development Banks (SCARDBs).
(a) I, II & III (b) I & II
(c) Only IV (d) All the above
Ans: (a)

Q13. The ‘break-even point’ is where
(a) Marginal revenue equals marginal cost
(b) Average revenue equals average cost
(c) Total revenue equals total cost
(d) None of these
Ans: (b)

Q14. ‘The Sherpa Track’ which pertains to issues related to employment, trade, energy, anti-corruption and development is related to?
(a) OECD (b) G-20
(c) World Economic Forum (d) World Social Forums
Ans: (b)

Q15. Which of the following statements are correct?
1. When marginal revenue is positive, total revenue increases with increase in output.
2. When marginal revenue is zero, total revenue is maximum.
3. When marginal revenue becomes negative, total revenue falls with increase in output.
Select the correct answer using the code given below:
(a) 1 and 2 only (b) 2 and 3 only
(c) 1 and 3 only (d) 1, 2 and 3
Ans: (d)

Q16. Mixed cropping is useful when
(a) Crops with varying maturity periods are sown together.
(b) Crops with same maturity period are sown together.
(c) Different soils are used for the same crops.
(d) Crops with different nutritional requirements are grown.
Ans: (a)

Q17. The national income of a country for a given period is equal to the
(a) total value of goods and services produced by the nationals
(b) sum of total consumption and investment expenditure
(c) sum of personal income of all individuals
(d) money value of final goods and services produced
Ans: (d)

Q18. The concept of ‘Universal Banking’ was implemented in India on the recommendations of:
(a) Abid Hussain Committee
(b) R H Khan Committee
(c) S Padmanabhan Committee
(d) Y H Malegam Committee
Ans: (b)

Q19. Which public sector bank has launched mobile wallet “Bataua” for digital payments?
(a) Oriental Bank of Commerce (OBC)
(b) Punjab National Bank (PNB)
(c) Canara Bank
(d) Central Bank of India (CBI)
Ans: (a)

Q20. Price theory is also known as
(a) Macro Economics (b) Development Economics
(c) Public Economics (d) Micro Economics
Ans: (d)

Q21. Why net primary productivity (NPP) is always less than gross primary productivity (GPP)?
(a) Number of producers is always less than number of consumers.
(b) Number of decomposers is always more than producers.
(c) Biomass of producers is always greater than that of consumers.
(d) A considerable amount of GPP is utilized by plants in the process of respiration.
Ans: (d)

Q22. Which of the following is not a ‘Public Good’?
(a) Electricity (b) National Defence
(c) Light House (d) Public Parks
Ans: (a)

Q23. Even when our foodgrain production has increased from 50 to 150 million tones during the last three decades, the progress has been quite unsatisfactory on agricultural development front because
(a) Only the production of a few items has gone up largely.
(b) Only the production of pulses and edible oil seeds has recorded large increase.
(c) Nutritional diet and 16 oz norm is still not available to our growing number of people having low purchasing power.
(d) This has been achieved on the basis of huge quantities of imported inputs which cannot be sustained.
Ans: (a)

Q24. The Fair and Remunerative Price of Sugarcane is approved by the
(a) Cabinet Committee on Economic Affairs
(b) Commission for Agricultural Costs and Prices
(c) Directorate of Marketing and Inspection, Ministry of Agriculture
(d) Agricultural Produce Marketing Committee
Ans: (a)

Q25. An increase in the Bank Rate generally indicates that the :
(a) market rate of interest is likely to fall
(b) Central Bank is no longer making loans to commercial banks
(c) Central Bank is following an easy money policy
(d) Central Bank is following a tight money policy
Ans: (d)

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