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063 Economy Previous Year Questions

Economy Previous Year Questions

Q1. Which of the following area selected by the government to transform economy in recent economic renovation?
1. Growth and stability
2. Public service delivery
3. Fiscal management
4. Digital economy
Which is/are correct?
(a) Only 1, 2 and 3 (b) Only 2, 3 and 4
(c) Only 1, 3 and 4 (d) All of the above
Ans: (d)

Q2. Consider the following statement in regard to ‘Dumping’:
1. Dumping is an act wherein a company exports a product at a price lower than the price it normally charges on its own home market.
2. WTO prohibits dumping
3. WTO Agreement regulates the actions of companies engaged in “dumping”
Which of the statements given above is/are correct?
(a) 1 only (b) 2 only
(c) 1 and 2 only (d) 2 and 3 only
Ans: (a)

Q3. Consider the following statements in regards to the provisions of the Shome committee report on GAAR:
1. It has called for inclusion of capital gains tax on transfer of securities.
2. GAAR would be applicable only if the monetary threshold of tax benefit is Rs 3 crore and more
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: (b)

Q4. TRIPS Agreement pertains to
(a) international tariff regime
(b) intellectual property protection
(c) international practices on trade facilitation
(d) international taxation of property
Ans: (b)

Q5. Stock-farming refers to
(a) Accent on agricultural production to build a buffer stock
(b) Cooperative farming.
(c) Farming concentrating on the rearing of cattles and sheep
(d) Large scale capital-intensive commercial farming
Ans: (c)

Q6. In the context of which of the following do you sometimes find the terms ‘amber box, blue box and green box’ in the news?
(a) WTO affairs
(b) SAARC affairs
(c) UNFCCC affairs
(d) India-EU negotiations on FTA
Ans: (a)

Q7. A company undertakes a public issue which means that _____ .
1. Shares of the company will be issued only through public sector organizations like banks/central financial institutions etc.
2. Shares of the company will be issued to general public through the primary market.
3. means some stakeholders/promoters are leaving the company and wish to sell their stock to general public.
(a) 1 only (b) 2 only
(c) 3 only (d) All 1, 2 and 3
Ans: (b)

Q8. Which of the following is considered lending for promotion of exports?
(a) Packing Credit
(b) Overdraft
(c) Cash Credit Account
(d) Bill Discounting
Ans: (a)

Q9. Consider the following statements about National Food Security Mission (NFSM):
1. NFSM is being implemented in 312 districts of 17 states of the country.
2. The mission focusses only on productivity enhancement through area expansion and restoring soil fertility.
Which of the statement(s) given above is/are correct?
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

Q10. What is ‘Village Buddha Concept’ in India?
(a) It is related to improvement of village sanitation by state government funds.
(b) It is related to improvement of banking facilities in villages by state government funds.
(c) It is related to improvement in girl education in villages by state government funds.
(d) It will help companies spend their Corporate Social Responsibility Budgets more productively and improve the quality of life and incomes of villagers.
Ans: (d)

Q11. Among the reasons for disguised unemployment in rural areas is
(a) Choice of a heavy industry model for economic development
(b) Low levels of technological development in the country
(c) Heavy pressure of population along with halfhearted implementation of agrarian reforms
(d) High illiteracy rates
Ans: (c)

Q12. Which sector of Indian Economy has shown remarkable expansion during the last decade?
(a) Primary sector (b) Secondary sector
(c) Tertiary sector (d) Mining sector
Ans: (c)

Q13. Consider the following statements:
1. There is almost no speculation in the G-sec market
2. The Investors in the G-Sec Market are predominantly the institutions
Which among the above statements is / are correct?
(a) Only 1 is correct
(b) Only 2 is correct
(c) Both 1 & 2 are correct
(d) Neither 1 nor 2 is correct
Ans: (c)

Q14. Which of the following statement is not correct in relation to International Monetary Fund?
1. India is a founder member of the IMF.
2. IMF conducts regular review of India’s economic status under Article IV.
3. India’s quota in the IMF is more than 2 per cent
4. Finance Minister is ex-officio Governor of the IMF.
(a) 1 and 4 (b) 3 only
(c) 1 only (d) 2 and 4
Ans: (b)

Q15. ‘Terms of Trade (ToT)’ is a term we usually hear in the news along with the Balance of Payment. Which statement best describes ToT?
(a) It is the ratio of index of export prices to index of import prices.
(b) It is the ratio of index of import prices to index of export prices.
(c) It is the difference between index of export prices and index of import prices.
(d) It is the difference between index of import prices and import of export prices.
Ans: (a)

Q16. Consider the following statements regarding Foreign Direct Investment (FDI):
1. FDI in India is allowed through two routes i.e. automatic route and Foreign Investment Promotion Board (FIPB) route.
2. FDI cap in Telecommunications is 100%.
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)

Q17. Which arrangement of the following show the correct sequence of demographic transition as typically associated with economic development?
1. High birth rate with high death
2. Low birth rate with low death
3. High birth rate with low death
Choose the answer from the codes given below
(a) 1, 2, 3
(b) 1, 3, 2
(c) 3, 1, 2
(d) 2, 1, 3
Ans: (b)

Q18. Estimation of national income in India are not accurate as there is:
1. illiteracy
2. non-monetised consumption
3. inflation
4. people holding multiple jobs
(a) 1, 2, 3 and 4 (b) 2 and 3
(c) 1 and 4 (d) 1, 2 and 4
Ans: (d)

Q19. Consider the following statement:
1. As per recommendations of the Narasimham Committee, it has been decided that credit facilities granted by banks will be classified into performing and non-performing assets (NPA)
2. NPA is a loan which is in default for more than nine months.
Choose the incorrect statement.
(a) 1 only (b) 2 only
(c) 1 and 2 (d) None of the Above
Ans: (b)

Q20. Which statement is incorrect regarding balance of payment?
I. BoP compares the dollar difference of the amount of exports and imports, including all financial exports and imports.
II. A negative balance of payments means that more money is flowing out of the country than coming in and vice versa.
III. The balance of payment is maintained by State Bank of India
(a) I & III (b) Only III
(c) II & III (d) Only I
Ans: (b)

Q21. Which of the following is NOT a member of Shanghai Cooperation Organization?
(a) Kazakhstan (b) Tajikistan
(c) Turkmenistan (d) Uzbekistan
Ans: (c)

Q22. Assertion (A): The composition of commodities in India’s international trade has been undergoing a change over the years as the share of agriculture and allied products has declined whereas shares of petroleum and crude products and other commodities have increased.
Reason (R): The increase in the share of petroleum products in international trade is due to a rise in petroleum prices as well as increase in India’s refining capacity.
Which the correct answers from the code given below:
(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 the correct explanation of (A).
(c) (A) is true but (R) is false.
(d) (A) is false but (R) is true.
Ans: (b)

Q23. In which one of the following crops international trade is low in the context of total produce?
(a) Rice
(b) Coffee
(c) Rubber
(d) Wheat
Ans: (a)

Q24. Consider the following statement:
1. High degree of disparity in income/wealth distribution is prevailed in India which is a characteristics feature of developing economy.
2. In India, almost 60-70% of the total population still resides in rural areas and hence they depend on agriculture for their livelihood.
3. India’s per capita income level is much high as compared with other developed countries
Which among the following statement is not correct:
(a) 3 only (b) 1 and 2
(c) 1 and 3 (d) 1 only
Ans: (a)

Q25. Economic activities may be classified into business, ___________ and employment
(a) Profession (b) occupation
(c) vocation (d) work
Ans: (a)

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