You are here
Home > QB Subjectwise > 070 Economy Previous Year Questions

070 Economy Previous Year Questions

Economy Previous Year Questions

Q1. Which of the following is/are the functions of the National Development Council of India?
1. To prescribe guidelines for preparation of the national economic plan.
2. To review the working of the national economic plan from time to time.
3. To consider important questions of social and economic policy affecting national development
Select the correct answer using the codes given below?
(a) 1 only (b) 2 only
(c) 3 only (d) 1, 2 and 3
Ans: (d)

Q2. Which of the following involves maximum risk?
(a) An industry
(b) A Commerce activity
(c) A trade
(d) None of these
Ans: (a)

Q3. Consider the following statements about plan and non-plan expenditure:
1. Central assistance to state and union territory plans cannot be included under plan expenditure.
2. The expenditure on the projects which could not be completed under previous plan period is included under non-plan category.
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)

Q4. What are the problems in estimating national income of India?
1. Low rate of savings
2. Large scale unemployment
3. Persistently high inflation
4. Large scale of non-monetized transactions
5. Large parallel black economy
Which the correct answer using the codes given below:
(a) 1, 2 and 3 only (b) 2 and 3 only
(c) 4 and 5 only (d) 1 and 5 only
Ans: (c)

Q5. Consider the following currencies:
1. U.S. Dollar 2. Euro
3. Japanese Yen 4. Pound sterling
5. Chinese Yuan
Which of the above currencies form a part of SDR basket currently?
(a) 1 and 3 only (b) 1 and 4 only
(c) 1, 2, 3 and 4 only (d) 1, 2, 3, 4 and 5
Ans: (c)

Q6. The currency of the proposed European Monetary Union will be
(a) Dollar
(b) Euro
(c) Guilder
(d) Mark
Ans: (b)

Q7. The growth rate of which one of the following sectors has very low employment elasticity?
(a) manufacturing (b) construction
(c) financial services (d) mixed farming
Ans: (c)

Q8. Which of the following can be termed an infrastructural bottleneck in the development of India’s economy?
(a) Existence of a large variety of financial institutions
(b) The federal nature of Indian policy
(c) The volatility of the Indian rupee
(d) Delay in the administration of justice
Ans: (d)

Q9. Which of the following is/are examples of intermediate goods?
1. Printing machine used by a publisher.
2. Copper used by a firm for manufacturing utensils.
Select 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: (b)

Q10. What of the following best explains the Cascading Effect of taxation ?
(a) When tax imposition leads to a disproportionate increase in prices by an extent more than the rise in the tax.
(b) When tax imposition leads to a disproportionate decrease in prices by an extent more than the rise in the tax.
(c) When tax imposition leads to a disproportionate decrease in imports.
(d) When tax imposition leads to a disproportionate decrease in exports.
Ans: (a)

Q11. Which of the following pairs is incorrect?
(a) Tarapore Committee : Convertibility of rupee on capital account
(b) L K Jha Committee : Indirect Taxes
(c) Narsimham Committee : Financial System
(d) Raja Chelliah Committee : Securities Scam
Ans: (d)

Q12. The farmers are provided credit from a number of sources for their short and long-term needs. The main sources of credit to the farmers include
(a) the Primary Agricultural Cooperative Societies, commercial banks, RRBs and private moneylenders
(b) the NABARD, RBI, commercial banks and private moneylenders
(c) the District Central Cooperative Banks (DCCB), the lead banks, IRDP and JRY
(d) the Large-Scale Multi-purpose Adivasis Programme, DCCB, IFFCO anc commercial banks:
Ans: (a)

Q13. Which of the following were the priority objectives of the Eighth plan?
1. Universalization of elementary education.
2. Growth and diversification of agriculture.
3. Containment of population growth.
4. Gradual privatization of most public sector undertakings.
Choose your answer from the following codes
(a) 1, 2 and 4 (b) 2, 3 and 4
(c) 1, 3 and 4 (d) 1, 2 and 3
Ans: (d)

Q14. Consider the following statements:
1. India has attained self-sufficiency in almost all consumer goods.
2. In terms of capital goods, India still depends on the import.
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)

Q15. Consider the following statements regarding rural development:
1. Rural development is possible only if the government focuses on agriculture industry, communication, education, health and allied sectors.
2. Decentralization of planning, better enforcement of land reforms and greater access to credit are envisaged under rural development.
3. Rural development implies both the economic betterment of people as well as greater social transformation.
Which of the statements given above are correct?
(a) 1 and 2 only (b) 2 and 3 only
(c) 1 and 3 only (d) 1, 2 and 3
Ans: (b)

Q16. Which of the following are RBI regulated Non-banking Financial Institutions?
1. Export Import Bank of India (EXIM Bank).
2. National Bank for Agriculture and Rural Development (NABARD).
3. Punjab National Bank (PNB).
4. Small Industries Development Bank of India (SIDBI).
5. Industrial Credit and Investment Corporation of India (ICICI Bank).
Which the correct answer using the codes given below:
(a) 1, 2, 3 and 4 only
(b) 2, 3 and 4 only
(c) 1, 2 and 4 only
(d) 1, 2, 3, 4 and 5
Ans: (c)

Q17. Government of India constitutes an Inter- Disciplinary Committee to examine the existing framework with regard to Virtual Currencies. This committee is headed by:
(a) Shaktikanta Das (b) Amitabh Kant
(c) Dinesh Sharma (d) Arvind Panagariya
Ans: (c)

Q18. Consider the following:
1. Market borrowing
2. Treasury bills
3. Special securities issued to RBI
Which of these is/are component(s) of internal debt?
(a) I only
(b) I and II
(c) II only
(d) I, II and III
Ans: (d)

Q19. Regarding DigiLocker, sometimes seen in the news, which of the following statements is/are correct?
1. It is a digital locker system offered by the Government under Digital India Programme.
2. It allows you to access your e-documents irrespective of your physical location.
Select the correct answer using the code given below.
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

Q20. What are the categories of PSEs?
I. Departmental undertakings
II. Statutory corporations
III. Government-owned companies
IV. Autonomous bodies
(a) II & III (b) II & IV
(c) All the above (d) Only I
Ans: (c)

Q21. Consider the following statements about Per Capita Income in India:
1. The growth rates in per capita income and consumption, which are gross measures of welfare in general, have declined in the last two years.
2. The decline in per capita income and consumption can be explained through rising savings rate and also the rise in tax collections.
Which of the above statement(s) is/are correct?
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

Q22. Depreciation of rupee with respect to dollar can be controlled by:
1. Restricting imports
2. Contractionary monetary policy
3. Rupee Devaluation with respect to dollar
4. Foreign capital inflows
Which the correct answer using the codes given below:
(a) 1 only (b) 1 and 2 only
(c) 1, 2 and 3 only (d) 1, 2 and 4 only
Ans: (d)

Q23. Which of the following costs is related to marginal cost?
(a) Implicit cost (b) Variable cost
(c) Fixed cost (d) Prime cost
Ans: (b)

Q24. Consider the following statements:
India continues to be dependent on imports to meet the requirement of oilseeds in the country because:
1. farmers prefer to grow food grains with highly remunerative support prices.
2. most of the cultivation of oilseed crops continues to be dependent on rainfall.
3. oils from the seeds of tree origin and rice bran have remained unexploited.
4. it is far cheaper to import oilseeds than to cultivate the oilseed crops.
Which of the statements given above are correct?
(a) 1 and 2
(b) 1, 2 and 3
(c) 3 and 4
(d) 1, 2, 3 and 4
Ans: (b)

Q25. The banks are required to maintain a certain ratio between their cash in hand and total assets. This is called:
(a) SBR (Statutory Bank Ratio)
(b) SLR (Statutory Liquid Ratio)
(c) CBR (Central Liquid Reserve)
(d) CLR (Central Liquid Reserve)
Ans: (b)

Top
error: Content is protected !!