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068 Economy Previous Year Questions

Economy Previous Year Questions

Q1. Consider the following statements:
1. Employees’ Provident Fund comes under the Ministry of Labour and Employment.
2. National Pension System comes under the Ministry of Finance.
3. Employees’ Provident Fund has Exempt-Exempt-Exempt tax status.
4. National Pension System is taxed at the time of investment.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 1, 2 and 3 only
(c) 2, 3 and 4 only
(d) 1, 2, 3 and 4
Ans: (b)

Q2. Which of the following statements is/are correct?
1. Deflation is the continuous fall of prices of goods and services and it increases unemployment.
2. Disinflation is the fall of prices of goods and services but it does not increase unemployment rate.
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: (c)

Q3. Which of the following is a part of tertiary sector?
(a) Power and transportation
(b) Animal Husbandry
(c) Cotton manufacturing
(d) Cultivation of crops
Ans: (a)

Q4. What is land ceiling?
(a) To fix a land area for irrigation purposes
(b) To fix rural land holdings at the existing level
(c) To fix urban land holdings at the existing level
(d) To fix the quantum of land held by a family
Ans: (d)

Q5. Which one of the following Union Ministries is implementing the Biodiesel Mission (as Nodal Ministry)?
(a) Ministry of Agriculture
(b) Ministry of Science and Technology
(c) Ministry of New and Renewable Energy
(d) Ministry of Rural Development
Ans: (d)

Q6. Which of the following statements is/are correct in regards to Revenue budget?
1. It consists of all capital receipts and expenditure such as domestic and foreign loans, loan repayment, foreign and etc
2. It consists of all current receipts, such as taxation, dividends of public sector units (PSU’s) and expenditure of the government
(a) 1 only (b) 2 only
(c) 1 and 2 (d) Neither 1 nor 2
Ans: (b)

Q7. Increase in wheat production depends on
1. Area expansion
2. Developing marketing infrastructure
3. Better inputs
(a) 1 only (b) 1 and 2
(c) 1, 2 and 3 (d) 2 and 3
Ans: (d)

Q8. Consider the following reports:
1. Global Gender Gap Report
2. Human Capital Report
3. Global Competitiveness Report
4. World Development Report
Which of the given above reports is/are released by the World Economic Forum?
(a) 1, 2 and 3 only (b) 1 and 4 only
(c) 1 only (d) 1, 3 and 4 only
Ans: (a)

Q9. With reference to the India Post Payments Bank (IPPB), consider the following statements:
1. IPPB is set up as Public Limited Company under the Department of Posts.
2. IPPB is set up with 75% Government of India (GOI) equity.
3. IPPB is offering Savings account up to a balance of Rs 5 Lakh.
Which of the above statements is/are correct?
(a) 1 only (b) 1 and 2 only
(c) 1 and 3 only (d) 1, 2 and 3
Ans: (a)

Q10. 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: (b)

Q11. In what way Indian cotton industry was inferior to that of England during the British rule in India
(a) Indian textile industry had an ever increasing and large domestic market
(b) There was plenty of raw material available
(c) The industry was not managed by highly skilled technicians and managers
(d) India was the traditional home for cotton textiles
Ans: (c)

Q12. Regarding the International Monetary Fund, which one of the following statements is correct?
(a) It can grant to any country.
(b) It can grant loans to only developed countries.
(c) It grants loans to only member countries.
(d) It can grant loans to the central bank of a country.
Ans: (c)

Q13. Excess of total expenditure over total revenues is termed as
1. Revenue deficit 2. Fiscal deficit
3. Budget deficit 4. Overall deficit
(a) 1 only (b) 1 and 2
(c) 3 only (d) 4 only
Ans: (c)

Q14. What is a Green Box subsidy?
I. These include direct payments to farmers to limit production and certain government assistance to encourage agriculture and rural development in developing countries
II. These include government policies of Minimum support Prices (MSP) for agricultural products or any help directly related to production quantities (for eg. power, fertiliser, seeds, pesticides, irrigation etc.).
III. These include amounts spent on research, disease control, infrastructure and food security
(a) I & III (b) Only II
(c) Only III (d) III & II
Ans: (c)

Q15. India and China jointly submitted a proposal to the WTO calling for the elimination- by developed countries – of the most tradedistorting form of farm subsidies, known in WTO parlance as:
(a) Amber Box (b) Green Box
(c) White Box (d) Red Box
Ans: (a)

Q16. Consider the following statements in regards to Follow on Public Offer (FPO) :
1. It is a secondary market offering.
2. FPO is done for an already listed company.
Ans: (b)

Q17. Which bank is limited to the needs of agriculture and rural finance?
(a) SBI (b) NABARD
(c) IFC (d) RBI
Ans: (b)

Q18. Which of the following pairs is/are incorrect?
I. Consumer Price Index – Inflation
II. Export concessions – Fiscal policy
III. Imposition of taxes – Economic planning
IV. Income – Standard of living
V. Deficit budgeting – Inflation
Select the correct answer from the codes given below:
(a) I and V
(b) II and III
(c) III and V
(d) None of (I), (II) and (III) is a correct answer
Ans: (c)

Q19. The balance of payments of a country is a systematic record of
(a) all import and transactions of a during a economy given period normally a year
(b) goods exported from a country during a year
(c) economic transaction between the government of one country to another
(d) capital movements from one country to another
Ans: (a)

Q20. A rapid increase in the rate of inflation is sometimes attributed to the “base effect”. What is “base effect”?
(a) It is the impact of drastic deficiency in supply due to failure of crops
(b) It is the impact of the surge in demand due to rapid economic growth
(c) It is the impact of the price levels of previous year on the calculation of inflation rate
(d) None of the statements (a), (b) and (c) given above is correct in this context
Ans: (c)

Q21. What is National Horticulture Mission?
I. Mission to increase the production of rice, wheat and pulses by 10, 8 and 2 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: (b)

Q22. Which of the following is not considered as National Debt?
(a) National Savings Certificates
(b) Long-term Government Bonds
(c) Insurance Policies
(d) Provident Fund
Ans: (c)

Q23. MANAK, an initiative of the Government of India, aims at:
(a) promoting awareness related to self-employment
(b) promoting financial inclusion in backward districts
(c) attracting talent towards science
(d) attracting talent towards self-help groups
Ans: (c)

Q24. Rise in the price of a commodity means
(a) rise in the value of currency only
(b) fall in the value of currency only
(c) rise in the value of commodity only
(d) fall in the value of currency and rise in the value of commodity.
Ans: (b)

Q25. Assertion (A) : Five-Year Plans form the basis of Indian economic planning.
Reason (R) : India follows Soviet pattern of planning.
(a) Both A and R are correct and R is the correct explanation of A
(b) Both A and R are correct but R is not the correct explanation of A
(c) A is correct but R is incorrect
(d) A is incorrect but R is correct
Ans: (a)

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