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042 Economy Previous Year Questions

Economy Previous Year Questions

Q1. Which institution is known as ‘soft loan window’ of World Bank?
(a) IFC
(b) IDA
(c) IMF
(d) Indian Development Forum
Ans: (b)

Q2. Which of the following statements correctly defines ‘Digital Dieting’?
(a) It is a phenomenon which establishes a relationship between ‘digital divide’ and malnutrition in the Least Developed Countries (LDCs).
(b) It is a new guide line issued by World Health Organization
(WHO) and Food and Agricultural Organization (FAO), which suggest how to overcome with the problem of obesity in developed nations with the help of Information Technology (IT).
(c) It can be defined as the management and administration of measures, which cut the extreme dependency on digital world and digital applications.
(d) It is the process of routine dieting substituted by the use of digital equipments and internet.
Ans: (c)

Q3. Which of the following best describes disguised unemployment?
(a) Labour force not recognized by the government
(b) Labour productivity is low or near zero
(c) Labour force consisting mainly of females and children workers at home
(d) Labour working predominantly in the unorganized sector
Ans: (b)

Q4. As the GNP (Gross National Product) of a nation increases, the share of the tertiary sector in the total GNP
(a) Decreases
(b) Increases
(c) Remains same
(d) None of the above
Ans: (d)

Q5. With reference to the ‘National Intellectual Property Rights Policy’, consider the following statements:
1. It reiterates India’s commitment to the Doha Development Agenda and the TRIPS Agreement.
2. Department of Industrial Policy and Promotion is the nodal agency for regulating intellectual property rights in India.
Which of the above statements is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

Q6. Consider the following statements:
1. In Banks, the “Staff Security Deposits” come under Time Liabilities
2. In Banks. “Cash certificates” come under the Demand Liabilities
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)

Q7. Christine Lagarde is the head of which among the following international agencies / bodies?
(a) Asian Development Bank
(b) Non-alignment Movement
(c) International Atomic Energy Agency
(d) International Monetary Fund
Ans: (d)

Q8. Which of the following is/are part/parts of capital account?
(a) External Commercial Borrowing (ECBs)
(b) Foreign direct Investment
(c) Foreign Portfolio investment
(d) All of the above
Ans: (d)

Q9. Consider the following statements:
1. It is the strategy of selling a product or service at a very low price, intending to drive competitors out of the market
2. It is a pricing strategy designed to capture market share by entering the market with a low price relative to the competition to attract buyers.
3. It is a pricing strategy to keep prices low and attract a specific segments of the market that is very price sensitive.
Which of the above statements best describe Predatory Pricing?
(a) 1 only (b) 1 and 2 only
(c) 1 and 3 only (d) 1, 2 and 3
Ans: (a)

Q10. Which one of the following sets of economists strongly favoured a market economy?
(a) Adam Smith, Keynes, Hicks
(b) Adam Smith, Marx, Strumlin
(c) Adam Smith, Hayek, Friedman
(d) Adam Smith, Ricardo, J.K. Galbraith
Ans: (c)

Q11. The value of all final goods and services produced by the normal residents of a country and their property, whether operating within the domestic territory of the country or outside in a year is termed as
(a) Gross National Income
(b) Net National Income
(c) Gross Domestic Product
(d) Net Domestic Product
Ans: (a)

Q12. The state of deflation appears in the economy due to various reason:
1. When the Government withdraws money from circulation.
2. When Government imposes heavy direct taxes or takes heavy loans from the public
3. When the Central Bank buys the securities in open market
Choose the correct reason.
(a) 1 and 2 (b) 2 and 3
(c) 1 and 3 (d) 1, 2, 3
Ans: (a)

Q13. Which of the statement is correct according to Fixed Exchange rates?
I. Fixed rates are currency values which are tied to a precious metal such as gold, or anchored to another currency, like the US Dollar.
II. Under a fixed system, a currency can rise or fall due to changes in demand or supply of currencies on the foreign exchange market.
III. Under this imports and exports can readjust to move the balance of payments back towards a desirable equilibrium.
(a) I & II (b) I & III
(c) II & III (d) Only I
Ans: (d)

Q14. Currently Industrial Licensing is compulsory for which of the following industries?
1. Atomic energy
2. Drugs and Pharmaceuticals
3. Distillation and brewing of alcoholic drinks.
4. Electronic Aerospace and Defence equipment
Select the correct answer using the code given below.
(a) 2, 3 and 4 only (b) 1, 3 and 4 only
(c) 1 and 4 only (d) 1, 2 , 3 and 4
Ans: (a)

Q15. What is Chandrashekhar limit?
(a) It is the limiting factor by which any commodity stabilizes the critical and feasible ratio of demand and supply in the markets.
(b) It is the threshold amount of toxics any environment can hold in given time and space irrespective of possessing the highest carrying capacity of the biosphere.
(c) It defines the diplomatic terminology of international community which in turn explains the maximum possession of weapons of mass destruction (WMDs) including nuclear weapons.
(d) It is the upper bound mass of a star, which is necessary to turn itself into a black hole or into a dwarf star.
Ans: (d)

Q16. 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
Choose the correct answer from the codes given below:
(a) 1 and 2
(b) 1 and 3
(c) 2 and 4
(d) 1, 2, 3 and 4
Ans: (d)

Q17. Consider the following statements:
1. GDP is the total money value of all final goods and services produced within the geographical boundaries of the country during a given period of time.
2. GNP 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
Which among the above statements is / are correct?
(a) 1 only (b) 2 only
(c) 1 and 2 (d) Neither 1 nor 2
Ans: (c)

Q18. List-I List-II
(A) Depression (1) Coexistence of inflation and stagnation
(B) Recession (2) Recovery from depression
(C) Reflation (3) Reduction in production over a short period
(D) Stagflation (4) Insufficient demand leading to idle men and machinery over a long time
(5) Reduction in level of economy due to falling prices
(a) A-1; B-2; C-3; D-5 (b) A-4; B-3; C-2; D-5
(c) A-4; B-3; C-2; D-1 (d) A-3; B-4; C-2; D-1
Ans: (b)

Q19. What are the sectors with 100% FDI?
I. Agriculture
II. Advertising
III. Air transport service
IV. Drugs and pharmaceuticals
(a) I & II (b) II & IV
(c) Only III (d) All the above
Ans: (d)

Q20. Consider the following statements regarding the consumer price index:
1. The CPI (Industrial Worker) and CPI (Agricultural Labourers CPI (AL) & Rural Laborers&(RL) are compiled by Labour Bureau, Ministry of Labour and Employment.
2. CPI(Urban) and CPI(Rural) are compiled by Central Statistical Organization.
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. Consider the following statements regarding Islamic Development Bank:
1. The purpose of the Bank is to foster the economic development and social progress of member countries and Muslim communities individually as well as jointly in accordance with the principles of Shari’ah i.e. Islamic Law.
2. Interest rate on loans from Islamic Development Bank is lower than any other bank.
3. The headquarters of Islamic development bank is in Jeddah.
4. The present membership of the Bank consists of 56 countries.
Which of the above statements are correct?
(a) 1, 2 and 3 only (b) 2, 3 and 4 only
(c) 1, 3 and 4 only (d) 1, 2, 3 and 4
Ans: (c)

Q22. The sum of which of the following constitutes Broad Money in India?
1. Currency with the Public
2. Demand deposits with banks
3. Time deposits with banks
4. Other deposits with RBI
Choose the correct answer using the codes given below:
(a) 1 and 2
(b) 1, 2 and 3
(c) 1, 2, 3 and 4
(d) 1, 2 and 4
Ans: (b)

Q23. Structural Planning refers to:
(a) laying down broad goals and strategies
(b) centralised planning
(c) fixing flexible targets
(d) changing existing institutions or creating new ones
Ans: (d)

Q24. Consider the following statements
(I) SWOT analysis is a framework of identifying and framing organizational growth opportunities.
(II) SWOT is an acronym for an organization’s internal Strengths and Weaknesses and External Opportunities and Threats.
Which of the following is/are correct?
(a) Only I (b) Only II
(c) Both I and II (d) None of the Above
Ans: (c)

Q25. Which of the following statements are correct regarding Foreign Institutional Investor (FII)?
1. Investment by FIIs is regulated by SEBI.
2. FIIs cannot allocate more than 70% of their investment in equity.
3. High Net worth Individuals /foreign corporates can invest through SEBI Registered FIIs.
4. Permission from RBI is needed before FIIs purchase and sell on recognized stock exchange.
Select the correct answer using the codes given below:
(a) 1 and 3 only (b) 1, 2 and 3 only
(c) 1, 3 and 4 only (d) 1, 2, 3 and 4
Ans: (b)

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