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065 Economy Previous Year Questions

Economy Previous Year Questions

Q1. Which of the following statement is correct regarding Gini coefficient used to measure income distribution?
(a) A value of 0 indicates perfect inequality and 1 indicates perfect equality.
(b) A value of 0 indicates perfect equality and 1 indicates perfect inequality.
(c) A value of 0 and 1 both indicate perfect equality.
(d) A value of 0 and 1 both indicate perfect inequality.
Ans: (b)

Q2. As output increases, average fixed cost
(a) increases
(b) falls
(c) remains constant
(d) first increases, then falls
Ans: (b)

Q3. Why the main oil refineries in India are situated near seaports?
(a) Because India needs much crude oil which is mostly imported
(b) Because most of the crude oil is exported to other countries
(c) Because sea water is required for refining crude oil
(d) Because petrol is available near sea ports
Ans: (a)

Q4. Which of the following pairs about India’s economic indicator and agricultural production (all in rounded figures) are correctly matched?
1. GDP per capita : Rs 37,000
(current prices)
2. Rice : 180 million tons
3. Wheat : 75 million tons
Select the correct answer using the code given below:
(a) 1, 2 and 3
(b) 1 and 2 Only
(c) 2 and 3 Only
(d) 1 and 3 Only
Ans: (d)

Q5. Which of the following is the tax imposed on commodities imported into India (import duty) or those exported from India (export duty)?
1. Customs duty 2. Central excise duty
3. Incorporate duty
(a) 1 only (b) 2 only
(c) 3 only (d) 2 and 3
Ans: (a)

Q6. Consider the following statements ;
1. The Union Government fixes the Statutory Minimum Price of sugarcane for each sugar season
2. Sugar and sugarcane are essential commodities under the Essential Commodities Act.
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)

Q7. Which of the following taxes at the Centre and State level are being subsumed into GST?
1. Central Excise Duty
2. Service tax
3. Countervailing Duty
4. Value Added Tax
5. Stamp Duty
Select the correct answer using the codes given below.
(a) 1, 2, 3 and 5 only (b) 3, 4 and 5 only
(c) 1, 2, 3 and 4 only (d) 1, 2, 3, 4 and 5
Ans: (c)

Q8. The Reserve Bank of India has set up a 10-member ‘High Level Task Force on Public Credit Registry (PCR) for India’. What would be the advantage(s) of Public Credit Registry?
1. PCR can enhance efficiency of the credit market.
2. PCR can increase financial inclusion.
3. PCR can improve ease of doing business.
Which the correct answer using the code given below:
(a) 1 only (b) 1 and 3 only
(c) 2 and 3 only (d) 1, 2 and 3
Ans: (d)

Q9. Which of the following statements is/ are correct?
1. NIFTY is based upon 50 firms in India.
2. NIFTY is governed and regulated by the Reserve Bank of India.
3. NIFTY does not trade in mutual funds.
Select the correct answer using the codes given below
(a) Only 1 (b) Only 2
(c) Only 3 (d) 1 and 3
Ans: (d)

Q10. Consider the following statements :
A. Infrastructure
B. Skilled manpower
C. Finance
D. Raw materials
E. Latest sophisticated technology Of these which is/are the most essential for proper development of an industry?
(a) A, B, C, D, E
(b) B, C, D
(c) Only E
(d) A, B, C, D
Ans: (a)

Q11. With reference to Indian economy, consider the following statements:
1. The Gross Domestic Product (GDP) has increased by four times in the last 10 years.
2. The percentage share of Public Sector in GDP has declined in the last 10 years.
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)

Q12. Which of the following details can be obtained by Annual financial statement?
1. Government forecasts of receipts and payments for the next year
2. An outline of the results of the last financial year compared with the previous budget estimates
3. Proposed changes in taxes and expenditure allocations
(a) 1 only (b) 1 and 2
(c) 3 only (d) 1, 2 and 3
Ans: (d)

Q13. What is National Food Security Mission?
I. Mission to increase the production of rice, wheat pulses and coarse cereals by 10, 8, 4 and 3 million tonnes respectively.
II. To enhance investment in agriculture and allied sectors to achieve 4% growth rate.
III. For promotion of holistic growth of horticulture sector, including fruits, vegetables, root and tuber crops, mushroom, spices, flowers, aromatic plants, cashew and cocoa.
IV. Provides flexibility to states in implementation based on a regionally differentiated approach for promoting crop diversification and providing a focus to the programme.
(a) II (b) III
(c) IV (d) I
Ans: (d)

Q14. With reference to the National Committee on Trade Facilitation
(NCTF), consider the following statements:
1. It is headed by the Finance Minister.
2. The NCTF comprises of stakeholders from the Government and the private sectors including trade community.
3. The NCTF has adopted 76 point National Trade Facilitation Action Plan (NTFAP).
Which of the above statements is/are correct?
(a) 2 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
Ans: (c)

Q15. Which of the following can be the outcomes of very high Inflation in the economy ?
1. Reduction in economic growth
2. Decrease in cost of credit.
3. Increase in savings
4. Reduction in exports
Select the correct answer using the codes given below:
(a) 1 and 3 only (b) 3 and 4 only
(c) 2 and 3 (d) 1 and 4 only
Ans: (d)

Q16. Share of food in total consumption expenditure has been coming down as Per Capita Income grew over time in last sixty years because
(a) people have been purchasing less food
(b) people have been preferring non-cereal items in their food basket
(c) growth in food expenditure has been lower than growth in per capita income
(d) percentage of the poor in population has increased over time
Ans: (c)

Q17. Which of the following is most suitable for the remote hilly villages of about 100 families where streams are tiny and slow?
(a) Construction of big dams
(b) Installation of solar panels
(c) Building of hydel projects
(d) None of the above
Ans: (c)

Q18. In India the overall Index of Industrial Production, the Indices of Eighth Core Industries have combined weight of 37.90%. Which of the following are among those Eight Core Industries?
1. Cement 2. Fertilizers
3. Natural Gas 4. Refinery products
5. Textiles
Select the correct answer using the codes given below:
(a) 1 and 5 only
(b) 2, 3 and 4 only
(c) 1, 2, 3 and 4 only
(d) 1, 2, 3,4 and 5
Ans: (c)

Q19. Which one of the following statements is an appropriate description of deflation?
(a) It is a sudden fall in the value of a currency against other currencies
(b) It is a persistent recession in both the financial and real sectors of economy
(c) It is a persistent fall in the general price level of goods and services
(d) It is a fall in the rate of inflation over a period of time
Ans: (c)

Q20. Which statement is correct regarding Evergreen Revolution?
I. The emphasis in this revolution is on sustainable agriculture by means of organic and green agriculture.
II. Dr. MS Swaminathan gave this concept.
III. It includes the use of integrated pest management, nutrient supply and resource management.
(a) I & II (b) Only II
(c) Only III (d) All the above
Ans: (d)

Q21. ‘NABARD’ is associated with the development of
(a) agricultural sector and rural areas
(b) heavy industries
(c) banking sector
(d) real estates
Ans: (a)

Q22. Mode 1 to Mode 4 trade that includes cross border trade and consumption abroad is part of which of the following?
(a) GATT (b) GATS
(c) TRIPS (d) TRIMS
Ans: (b)

Q23. Under flexible exchange rate system, the exchange rate is determined
(a) predominantly by market mechanism
(b) by the Central Bank
(c) as a weighted index of a group of currencies
(d) by the World Trade Organization
Ans: (a)

Q24. Find the correct order of the inception
1. IRDP
2. Nationalisation of 14 banks
3. Cooperative Banking
4. Land reforms
Codes :
(a) 3, 4, 2, 1
(b) 4, 3, 2, 1
(c) 3, 2, 4, 1
(d) 4, 2, 3, 1
Ans: (d)

Q25. The terms ‘Marginal Standing Facility Rate’ and ‘Net Demand and Time Liabilities’, sometimes appearing in news, are used in relation to
(a) banking operations
(b) communication networking
(c) military strategies
(d) supply and demand of agricultural products
Ans: (a)

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