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052 Economy Previous Year Questions

Economy Previous Year Questions

Q1. CAPART is related with-
(a) Assisting and evaluating rural welfare programmes
(b) Computer hardware
(c) Consultant service of export promotion
(d) Controlling pollution in big industries
Ans: (a)

Q2. Tourism industry in India is quite small compared to many other countries in terms of India’s potential and size. Which one of the following statements 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 tourists to feel comfortable.
(c) Most of the picturesque resorts in India such as in the northeast and Kashmir are, for all practical purposes, out of bounds.
(d) In India, the infrastructure required for attracting tourists is inadequate.
Ans: (d)

Q3. What could be plausible measures to revive Indian economy in a short run?
1. India must improve supply, which means shifting from consumption to investment.
2. India needs less consumption and higher savings.
3. Cut in distortionary subsidies.
Select the correct answer using the codes given below:
(a) 1 and 2 only (c) 2 and 3 only
(d) 1 and 3 only (d) 1, 2 and 3
Ans: (d)

Q4. Basel Accords classify capital of the banks into three tiers. How does Basel Accords define Tier 1 capital?
(a) It can absorb losses without a bank being required to cease trading.
(b) It can absorb losses in the event of a winding up of the trading.
(c) It can be used to meet/support market risk, commodities risk and foreign currency risk.
(d) It is total liquid cash and the SLR assets of the banks, that may be used for any purpose.
Ans: (a)

Q5. Consider the following items:
1. Foreign Direct Investment (FDI)
2. External assistance
3. Exports
4. External Commercial Borrowing
Which of the items given above are included in capital account?
(a) 1, 2 and 3 (b) 2, 3 and 4
(c) 1, 2 and 4 (d) 1, 2, 3 and 4
Ans: (c)

Q6. Consider the following statements:
Regional disparities in India are high and have been rising in recent years because
1. there is persistent investment over time only in select locales.
2. some areas are agro-climatically less conducive to development.
3. some areas continue to face little or no agrarian transformation and the consequent lack of social and economic opportunities.
4. some areas have faced continuous political instability.
Which of the above statements are correct?
(a) 1, 2 and 3
(b) 1, 2 and 4
(c) 1, 3 and 4
(d) 2, 3 and 4
Ans: (a)

Q7. When the productive capacity of the economic systems of a state is inadequate to create sufficient number of jobs, it is called
(a) seasonal unemployment
(b) structural unemployment
(c) disguised unemployment
(d) cyclical unemployment
Ans: (d)

Q8. With reference to the National Investment Fund to which the disinvestment proceeds are routed, consider the following statements?
1. The assets in the National Investment Fund are managed by the Union Ministry of Finance.
2. The National Investment Fund is to be maintained within the Consolidated Fund of India.
3. Certain Asset Management companies are appointed as the fund managers.
4. A certain proportion of annual income is used for financing select social sectors.
Which of the statements given above is/are correct ?
(a) 1 and 2 (b) 2 only
(c) 3 and 4 (d) 3 only
Ans: (c)

Q9. Consider the following statements:
1. Higher growth in GDP and population can occur together.
2. Per capita Income always decreases with high population growth.
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: (b)

Q10. Which of the following statements is/are correct?
1. Market turnover of National Stock Exchange is more than Bombay Stock Exchange.
2. Market capitalization of National Stock Exchange is more than double of Bombay Stock Exchange.
Which 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: (a)

Q11. ‘Industrial Development Report’ is periodically published by which of the following organizations?
(a) World Trade Organization
(b) World Economic Forum
(c) United Nations Organization
(d) World Bank
Ans: (c)

Q12. In an open economy, the national income (Y) of the economy is (C, I, G, X, M stand for Consumption, Investment, Govt. Expenditure, total exports and total imports respectively).
(a) Y = C + I + G + X
(b) Y = C + I + G – X + M
(c) Y = C + I + G + (X – M)
(d) Y = C + I – G + X – M
Ans: (c)

Q13. Which of the following statements is/are incorrect?
1. Open Unemployment: It refers to an unemployment that occurs at certain seasons of the years. The period of such unemployment varies from state to state, depending upon the methods of farming, the condition of soil, the type and numbers of crops grown, etc.
2. Frictional Unemployment: It refers to temporary unemployment that exists during the period, wherein workers leave one job and join some other.
3. Cyclical Unemployment: It is associated with the downswing and depression phases 9 business cycle.
It is the most common type of unemployment in the developed capitalist economies.
Select the incorrect definition using the code given below:
(a) 1 only (b) 2 only
(c) 3 only (d) 2 and 1
Ans: (a)

Q14. Match the following investment requirements under the Manufacturing Enterprises category:
Column I Column II
I. Micro Enterprise A. 5 crores to upto 10 crores
II. Small Enterprise B. 25 lakh to upto 5 crores
III. Medium Enterprise C. Upto 25 lakh
(a) I – c, II – b, III – a
(b) I – b, II – c, III – a
(c) I – c, II – a, III – b
(d) I – a, II – b, III – c
Ans: (a)

Q15. Which of the following statement is incorrect about an ad-valorem tax?
(a) An ad valorem tax is a tax based on the value of real estate or personal property.
(b) An ad valorem tax is the tax imposed on the basis of the volume of the taxed item.
(c) Its important advantage is the adjustment of the tax burden according to the amount the consumer spends on the taxed items.
(d) Examples of ad valorem taxes are school, county and city taxes.
Ans: (b)

Q16. Consider the following statements regarding taxes:
1. India has a narrow tax base
2. The cost of collection as a percentage of tax revenue in India, is the lowest in the world.
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)

Q17. Interest on public debt is a part of
(a) Transfer of payments by the enterprises
(b) Transfer of payments by the government
(c) Interest payment by the household
(d) National income
Ans: (b)

Q18. As per the Human Development Index given by UNDP, which one of the following sequences of South Asian countries is correct, in the order of higher to lower development?
(a) India-Sri Lanka-Pakistan-Maldives
(b) Maldives-Sri Lanka-India-Pakistan
(c) Sri Lanka-Maldives-India-Pakistan
(d) Maldives-India-Pakistan-Sri Lanka
Ans: (c)

Q19. ____ is not a non-Plan expenditure?
(a) Interest payment
(b) Subsidies
(c) Central assistance for states and UT plans
(d) Defense expenditure
Ans: (c)

Q20. Which one of the following apex co-operative organisation at the national level of India?
(a) TRIFED (b) NAFED
(c) FCS (d) RRBs
Ans: (b)

Q21. Which of the following sectors are parts of Priority Sector Lending of Indian banks?
1. Social Infrastructure
2. Renewable Energy
3. Medium Enterprises
4. Housing
5. Education
Select the correct answer using the codes given below:
(a) 1, 3, 4 and 5 only (b) 1, 4 and 5 only
(c) 1, 2, 3, 4 and 5 (d) 1 and 5 only
Ans: (c)

Q22. Arrange the following countries in descending order of their shareholder and voting share in newly established Asian Infrastructure Investment Bank?
(a) China > India > Russia (b) China > Russia > India
(c) Russia > China > India (d) China > Russia > Brazil
Ans: (a)

Q23. When Banks accepts a fixed sum of money from an individual for a definite term and pay on maturity with interest is known as
(a) Mortgage
(b) Demand deposit
(c) Time deposit
(d) Term deposit
Ans: (d)

Q24. What was the impact of Western Industrial Revolution on India?
(a) Handicrafts of India were ruined
(b) Machines were introduced in textile industry
(c) Heavy import duty was imposed on foreign goods
(d) All technical hands got employment
Ans: (a)

Q25. MCA-21 is a major initiative taken up by the Government of India in which one of the following areas?
(a) Foreign direct investment in India
(b) Attaching international tourists
(c) e-governance
(d) Modernization of airports
Ans: (c)

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