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055 Economy Previous Year Questions

Economy Previous Year Questions

Q1. Assertion (A): The emergence of economic globalism does not imply the decline of socialist ideology.
Reason (R): The ideology of Socialism believes in universalism and globalism. In the context of the above two statements, which one of the following is correct?
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true, but R is not a correct explanation of A
(c) A is true, but R is false
(d) A is false, but R is true
Ans: (d)

Q2. Which day has been declared as ‘Balika Diwas’ (Girl Day) by the Ministry of Woman and Children Development?
(a) April 5, every year
(b) July 9, every year
(c) October 9, every year
(d) December 9, every year
Ans: (d)

Q3. ‘Level playing field’ argument of industries requires
(a) MNCs to be stopped from investing in India.
(b) licence for MNCs to be given only in environmentfriendly technology.
(c) domestic industry to be given preference.
(d) domestic industry to be treated on par with MNCs.
Ans: (d)

Q4. Consider the following statements:
1. Revenue deficit in India has remained below fiscal deficit in all the years of the last decade.
2. Post FRBM Act revenue deficit has remained above fiscal deficit.
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)

Q5. If the price of a commodity is above its equilibrium price, there is:
(a) a price fall (b) a price increase
(c) excess supply (d) excess demand
Ans: (d)

Q6. Consider the following statements:
1. The trade between India and China continuously increased during the last decade.
2. The export of India continuously increased during the last decade.
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)

Q7. Which one of the following statements regarding the levying, collecting and distribution of Income Tax is correct?
(a) The Union levies, collects and distributes the proceeds of income-tax between itself and the States
(b) The Union levies, collects and keeps all the proceeds of income- tax to itself
(c) The Union levies and collects the tax but all the proceeds are distributed among the States
(d) Only the surcharge levied on income-tax is shared between the Union and the States
Ans: (a)

Q8. The main objective of the 12th Five-Year Plan is
(a) inclusive growth and poverty reduction
(b) inclusive and sustainable growth
(c) sustainable and inclusive growth to reduce unemployment
(d) faster, sustainable and more inclusive growth
Ans: (d)

Q9. Despite having large reserves of coal, why does India import millions of tonnes of coal?
1. It is the policy of India to save its own coal reserves for future, and import it from other countries for the present use.
2. Most of the power plants in India are coal-based and they are not able to get sufficient supplies of coal from within the country.
3. Steel companies need large quantity of coking coal which has to be imported.
Which of the statements given above is/are correct?
(a) 1 only (b) 2 and 3
(c) 1 and 3 (d) 1, 2 and 3
Ans: (b)

Q10. Consider the following statements:
1. GDP can be higher than GNP
2. NDP can be higher than GDP
Which of the statements given above is/are not correct?
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (d)

Q11. In which of the following countries would you find functioning stock exchanges?
1. Cuba 2. North Korea
3. Russia 4. China
Which the correct answer using the codes given below:
(a) 1 and 2 only (b) 1 and 3 only
(c) 1 and 4 only (d) 3 and 4 only
Ans: (d)

Q12. Which of the following is/are the basic objections to universal basic income?
1. A minimum guaranteed income might make people lazy and opt out of the labour market.
2. Households, especially male members, may spend this additional income on wasteful activities.
3. Once introduced, it may become difficult for the government to wind up a UBI in case of failure.
Which the correct answer using the code given below.
(a) 1 and 3 only (b) 1 only
(c) 1 and 2 only (d) 1, 2 and 3
Ans: (d)

Q13. Economic Liberalization in India started with
(a) substantial changes in industrial licensing policy
(b) the convertibility of Indian rupee
(c) doing away with procedural formalities for foreign direct investment
(d) significant reduction in tax rates
Ans: (a)

Q14. Consider the following statements
1. Absolute Poverty: It refers to the total number of people living below Poverty line. As per this measure, around 30% of India’s population is below poverty line.
2. Reative Poverty: It refers to Poverty of people, in comparison to other people, regions in the nation.
Which among the following statement is/ are incorrect?
(a) 1 only (b) 2 only
(c) Neither 1 nor 2 (d) Both 1 and 2
Ans: (c)

Q15. Match the following investment requirements under the Service Enterprises category:
Column I Column II
I. Micro Enterprise A. 2 crores to upto 5 crores
II. Small Enterprise B. 10 lakh to upto 2 crores
III. Medium Enterprise C. Upto 10 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)

Q16. Which of the following are considered as role of capital market in India’s industrial growth?
1. Mobilization of savings and acceleration of capital formation.
2. Raising long term capital
3. Provision of variety of services Correct code:
(a) 1 and 2 only (b) 2 and 3 only
(c) 1,2 and 3 (d) 1 and 3 only
Ans: (c)

Q17. Which of the following is/are most suitable regarding structural inflation?
(a) Structural inflation occurs due to increase of cost of inputs.
(b) Structural inflation occurs due to increase in demand.
(c) Structural inflation cannot be explained only by the excess of demand over supply.
(d) All of the above.
Ans: (c)

Q18. Which of the following is not an example of indirect tax?
(a) Sales tax (b) Excise tax
(c) Customs duty (d) Expenditure tax
Ans: (d)

Q19. Assertion (A): The new EXIM policy is liberal, marketoriented and favours global trade.
Reason (R): GATT has played a significant role in the libralisation of the economy.
(a) Both A and R are individually true and R is the correct explanation of A
(b) Both A and R are individually true but R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true
Ans: (b)

Q20. Which one of the following statements regarding the levying, collecting, and distribution of Income Tax is correct?
(a) The Union levies, collects, and distributes the proceeds of income tax between itself and the states.
(b) The Union levies, collects, and keeps all the proceeds of income tax itself.
(c) The Union levies and collects the tax but all the proceeds are distributed among the states
(d) Only the surcharge levied on income tax is shared between the Union and the states.
Ans: (a)

Q21. Which one of the following co-operative societies is responsible for the production of fertilizers?
(a) NAFED (b) IFFCO
(c) NCDC (d) TRI FED
Ans: (b)

Q22. With regard to Inflation Targeting, consider the following statements:
1. The targeted inflation rate is to be set by RBI.
2. It promotes transparency in the conduct of monetary policy.
3. It would require convergence of monetary policy and fiscal policy.
Which of the above statement is/are correct?
(a) 1 and 2 only (b) 2 and 3 only
(c) 1 and 3 only (d) 1, 2 and 3
Ans: (b)

Q23. Which of the following is the main goal of World Bank?
(a) Promotion of foreign investment and international trade and to the facilitation of Capital investment.
(b) To ensure the stability of the international monetary and financial system.
(c) To reduce the poverty in the world.
(d) All of the above
Ans: (c)

Q24. In a Capitalistic Economy the prices are determined by:
(a) Demand and Supply
(b) Government Authorities
(c) Buyers in the Market
(d) Sellers in the Market
Ans: (a)

Q25. Highest per capita income is in
(a) Punjab
(b) West Bengal
(c) Tamil Nadu
(d) Gujarat
Ans: (a)

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