उत्तर: – बचत का सृजन, बचतों का संघटन, वास्तविक निवेश,
2-कोंकण रेल परियोजना किस वर्ष आरम्भ की गई थी?
उत्तर: – 1990 में,
3-बैंक दर किस नीति से संबंधित है?
उत्तर: – मौद्रिक नीति से,
4-भारत सरकार की बाजार से ऋण प्राप्त करने की क्षमता रिजर्व बैंक द्वारा निर्धारित किस अनुपात पर निर्भर करती है?
उत्तर: – वैधानिक तरलता अनुपात,
5-जिस ऋण उत्पाद के लिए बैंकों द्वार टीजर ऋण दिए जाते हैं, वह है?
उत्तर: – आवास ऋण,
6-अल्पकालिक सरकारी प्रतिभूति-पत्र को कहा जाता है?
उत्तर: – ट्रेजरी बिल,
7-आर्थिक नियोजन किस सूची का विषय है?
उत्तर: – समवर्ती सूची का,
8-प्लास्टिक मनी क्या है?
उत्तर: – क्रेडिट कार्ड,
9-किस राज्य सरकार ने पहली पीढ़ी के उद्यमियों के लिए एंजेल फंड की शुरुआत की है?
उत्तर: – असम,
10-अंतरराष्ट्रीय मुद्रा कोष का मुख्यालय कहां है?
उत्तर: – वाशिंगटन,
अर्थशास्त्र सामान्य ज्ञान – 22
11-भारत में विदेशी मुद्रा पर किसका नियंत्रण है?
उत्तर: – रिजर्व बैंक ऑफ इंडिया,
12-भारत की राष्ट्रीय आय की गणना की जाती है?
उत्तर: – केंद्रीय सांख्यिकीय संगठन द्वारा,
13-विश्व बैंक का मुख्यालय कहाँ स्थित है?
उत्तर: – वाशिंगटन डी. सी.,
14-बैंकों में ग्राहक सेवा सुधारने के लिए सुझाव देने के लिए जो समिति गठित की गई थी?
उत्तर: – गोइपोरिया समिति,
15-कमजोर बैंकों की पुनर्संरचना हेतु सिफारिश देने के लिए गठित की गई समिति थी?
उत्तर: – वर्मा समिति,
16-किस समिति ने कृषि जोतों पर कर लगाने की संस्तुति की थी?
उत्तर: – राज समिति,
17-रंगराजन समिति की रिपोर्ट की विषय वस्तु थी?
उत्तर: – भुगतान संतुलन के घाटों को नियंत्रण में रखने के लिए उपाय सुझाना,
18-कर संरचना संबंधी सुधारों के लिए गठित की गई समिति थी?
उत्तर: – चेलैया समिति,
19-मुद्रा वह है जो मुद्रा का कार्य करे। यह परिभाषा किस अर्थशास्त्री की है?
उत्तर: – वाकर,
20-मुद्रा वह वस्तु है जिसे सामान्य स्वीकृति प्राप्त हो। यह कथन किस अर्थशास्त्री का है?
उत्तर: – सैलिगमैन,
21-भारतीय स्टेट बैंक का प्रधान कार्यालय कहा है?
उत्तर: – मुंबई,
22-करेंसी एंड फाइनेंस पर वार्षिक रिपोर्ट का प्रकाशन किया जाता है?
उत्तर: – रिजर्व बैंक ऑफ इंडिया द्वारा,
23-किस कंपनी ने जलवायु परिवर्तन को कम करने के लिए ग्रीन बॉण्ड की शुरुआत की है?
उत्तर: – बीएनपी परिबास,
24-किस देश ने अपने राष्ट्रीय ध्वज को बदलने के लिए जनमत संग्रह का फैसला किया है?
उत्तर: – न्यूजीलैंड,
25-मिन्स्क समझौता किस अंतरराष्ट्रीय संकट से संबंधित है?
उत्तर: – यूक्रेन संकट,
26-केंद्रीय सांख्यिकीय संगठन की स्थापना कब की गई थी?
उत्तर: – 1951 में,
27-राष्ट्रीय विकास परिषद् का पदेन सचिव कौन होता है?
उत्तर: – योजना आयोग का सचिव,
28-केलकर टास्क फोर्स की सिफारिशों का संबंध किससे है?
उत्तर: – करों से,
29-सार्वजनिक वितरण प्रणाली से संबंधित समिति है?
उत्तर: – वेणुगोपाल समिति,
30-नरसिम्हन समिति का संबंध है?
उत्तर: – बैंकिंग क्षेत्र के सुधार में,
31-किस समिति ने कृषि जोतों पर कर लगाने की संस्तुति की थी?
उत्तर: – राज समिति,
32-रंगराजन समिति की रिपोर्ट की विषय वस्तु थी?
उत्तर: – भुगतान संतुलन के घाटों को नियंत्रण में रखने के लिए उपाय सुझाना,
33-कर संरचना संबंधी सुधारों के लिए गठित की गई समिति थी?
उत्तर: – चेलैया समिति,
34-भारत में गठित पहली सहकारी समिति थी?
उत्तर: – साख समिति,
35-चंद्रशेखरन समिति किससे संबंधित है?
उत्तर: – शेयरों से,
36-भारतीय विदेश व्यापार संस्थान कहां स्थित है?
उत्तर: – नई दिल्ली,
37-जब केंद्रीय बैंक द्वारा उपभोक्ता वस्तुओं को साख के आधार पर देने पर नियंत्रण लगा दिया जाता है, तो उसे कहते है?
उत्तर: – उपभोक्ता साख का नियमन,
38-भारत में प्रथम पूर्णयता भारतीय मिश्रित बैंक कौन-सा था, जिसकी स्थापना 1881 में हुई थी?
उत्तर: – अवध वाणिज्यिक बैंक,
39-जीवन बीमा निगम की स्थापना कब हुई?
उत्तर: – 1962,
40-इम्पीरियल बैंक ऑफ इंडिया की स्थापना कब हुई?
उत्तर: – 1921,
41-सरकार कोषागार विपत्रों को सुरक्षित कोष के आधार पर नोट निगर्मन करती है, तो उसे कहा जाता है?
उत्तर: – कोषागार विपत्र प्रणाली,
42-नोट निर्गमन का वह सिद्धांत, जिसके अंतर्गत शत-प्रतिशत बहुमूल्य धातु रखी जाती है, कहा जाता है?
उत्तर: – चलन सिद्धांत,
43-जब यह निश्चित कर दिया जाए कि देश का केंद्रीय बैंक एक सीमा से अधिक किसी भी हालत में नोट निर्गमित नहीं कर सकता, तो उस प्रणाली को कहा जाता है?
उत्तर: – अधिकतम विश्वासाश्रित प्रणाली,
44-राष्ट्रीय कृषि साख दीर्घकालीन कोष एवं राष्ट्रीय कृषि साख स्थिरीकरण कोष की स्थापना कब हुई?
उत्तर: – 1956,
45-बैंक की क्रियाओं पर सरकार के नियंत्रण को सामाजितक नियंत्रण कहते हैं। यह नीति कब से लागू की गई थी?
उत्तर: – 1 फरवरी, 1969,
46-राष्ट्रीय आवास विकास बैंक किसकी सहयोगी संस्था है?
उत्तर: – भारतीय रिजर्व बैंक की,
47-भारत में प्रथम पूर्णयता भारतीय मिश्रित बैंक कौन-सा था, जिसकी स्थापना 1881 में हुई थी?
उत्तर: – अवध वाणिज्यिक बैंक,
48-जिस कार्ड से बैंक को उच्च ऋण जोखिम होता है वह है?
उत्तर: – क्रेडिट कार्ड,
49-राष्ट्रीयकृत बैंक को निम्नलिखित नाम से भी बुलाया जाता है?
उत्तर: – सरकारी क्षेत्र का बैंक,
50-रिजर्व बैंक ऑफ इंडिया का राष्ट्रीयकरण किस वर्ष हुआ?
उत्तर: – 1949 में,
51-यूनिट ट्रस्ट ऑफ इंडिया की स्थापना कब हुई?
उत्तर: – 1964 में,
52-अंतरराष्ट्रीय बाजार में जिस मुद्रा की आपूर्ति मांग की अपेक्षा कम होती है, कैसी मुद्री कहलाती है?
उत्तर: – हार्ड करेंसी,
53-1955 में इम्पीरियल बैंक का राष्ट्रीयकरण कर किस बैंक की स्थापना की गई?
उत्तर: – स्टेट बैंक ऑफ इंडिया,
54-अंतरराष्ट्रीय पुनर्निर्माण एवं विकास बैंक को किस अन्य नाम से अधिक जाना जाता है?
उत्तर: – विश्व बैंक,
55-बैंक की क्रियाओं पर सरकार के नियंत्रण को सामाजितक नियंत्रण कहते हैं। यह नीति कब से लागू की गई थी?
उत्तर: – 1 फरवरी, 1969,
56-यूको बैंक का प्रधान कार्यालय कहां है?
उत्तर: – कोलकाता,
57-भारत का वह पहला बैंक कौन-सा है जिसे आई.एस.ओ. से प्रमाणित किया गया है?
उत्तर: – केनरा बैंक,
58-जब केंद्रीय बैंक साख का विस्तार करना चाहता है, तब?
उत्तर: – यह बैंक दर को घटा देता है,
59-भारत में प्रथम मिश्रित पूंजी बैंक था?
उत्तर: – बैंक ऑफ हिंदुस्तान,
60-बैंकिंग क्षेत्र किस क्षेत्र के अंतर्गत आएगा?
उत्तर: – सेवा क्षेत्र,
61-वह कौन-सा प्रथम भारतीय व्यावसायिक बैंक था जो पूर्णतः भारतीय स्वामित्व व प्रबंध का था?
उत्तर: – सेंट्रल बैंक ऑफ इंडिया,
62-पंजाब नेशनल बैंक जो कि 1895 में गठित हुआ, का प्रधान कार्यालय कहां था?
उत्तर: – लाहौर,
63-किसी अवयस्क बालिका का बचत बैंक खाता खोलने को बैंकिंग शब्दावली में कहते हैं?
उत्तर: – रिटेल बैंकिंग,
64-बैंक दर अर्थ है?
उत्तर: – ब्याज की वह दर जिसे केंद्रीय बैंक दूसरे बैंकों से ऋणों पर वसूल करता है,
65-भारत के विदेशी विनिमय संचय का प्रतिरक्षक कौन है?
उत्तर: – भारतीय रिजर्व बैंक,
66-यदि घाटे के बजट को करेंसी नोट छापकर पूरा किया जाए, तो इसका परिणाम होगा?
उत्तर: – मुद्रास्फीति,
67-भारत के विदेशी विनिमय कोष में क्या सम्मिलित किया जाता है?
उत्तर: – विदेशी मुद्रा, स्वर्ण तथा एस. डी. आर.,
68-एशियाई विकास बैंक ने भारत के किस नगर में अपना आवासीय कार्यालय खोला है?
उत्तर: – नई दिल्ली,
69-करेंसी एंड फाइनेंस पर वार्षिक रिपोर्ट का प्रकाशन किया जाता है?
उत्तर: – रिजर्व बैंक ऑफ इंडिया द्वारा,
70-नरसिंहमन समिति ने देश में बैंकिंग ढांचे को कितने स्तरीय बनाने की संस्तुति की थी?
उत्तर: – चार,
71-दस रुपये के नोट पर हस्ताक्षर होते हैं?
उत्तर: – रिजर्व बैंक के गवर्नर के,
72-भारत में करेंसी नोट जारी करता है?
उत्तर: – रिजर्व बैंक,
73-सामान्यतः बैंक जिस दर से कम पर उधार नहीं दे सकते हैं, उस दर को कहते हैं?
उत्तर: – आधार दर,
74-जब किसी बैंक को, आरबीआई अधिनियम की दूसरी अनुसूची में शामिल किया जाता है, तब उसे कहते हैं?
उत्तर: – अनुसूचित बैंक,
75-बैंकों और वित्तीय संस्थानों में समान डाटा संचार के लिए RBI द्वारा शुरू किया गया नेटवर्क है?
उत्तर: – बैंकनेट,
76-भारत में बैंकों का राष्ट्रीयकरण कितने चरणों में हुआ था?
उत्तर: – 2 चरणों में,
77-वह पहली समिति जिसने बैंकिंग प्रणाली के यंत्रीकरण से संबंधित सिफारिशें दी?
उत्तर: – रंगराजन समिति,
78-बैंकिंग लोकपाल से आशय है?
उत्तर: – ग्राहकों की शिकायतों का समाधान करना,
79-धनशोधन से तात्पर्य है?
उत्तर: – अवैध रूप से प्राप्त धन का परिवर्तन,
80-गतावधि चेक होता है?
उत्तर: – चेक जिसके जारी होने की तारीख से छह महीने पूरे हो गए हों,
81-भारतीय निर्यात-आयात बैंक (एक्जिम बैंक) की स्थापना कब की गई?
उत्तर: – 1 जनवरी, 1982,
82-आर्थिक नियोजन किस सूची का विषय है?
उत्तर: – समवर्ती सूची का,
83-योजना में कोर सेक्टर का क्या तात्पर्य है?
उत्तर: – चयनित आधारभूत उद्योग,
84-राष्ट्रीय ग्रामीण विकास संस्थान कहां है?
उत्तर: – हैदराबाद में,
85-किस राज्य सरकार ने पहली पीढ़ी के उद्यमियों के लिए एंजेल फंड की शुरुआत की है?
उत्तर: – असम,
-
1.Dual gap analysis :-
A.Disposal income
B.investment depend upon export
C. Saving depend upon import
D.All Investment related to ✔
2.investment related to
A.Public
B.private
C.Both ✔
D.None3.Disinvestment related to :
A.Public✔
B.private
C.Both
D.None4.Targeted Public distribution system(TPDS) function under 2013 Act:-
A.APL
B.BPL
C.BOTH
D.ANTODYA AAN YOJNA✔5.Whish is Established act of Targeted Public distribution system(TPDS)
A.1992
B.1993
C.1997✔
D.20136. If Growth 8, change in saving 4, change in income 100 ,real investment 4 and change in investment 2 then average productivity of investment is:-
A.80
B.200
C.300
D.None✔7.If Growth rate 5, saving 4 & income 100 then capital output ratio is :
A.2:25
B.1:75
C.3:25
D.None✔8. If APS 5 and growth of income 75 then capital output ratio is:-
A.1:25
B.1:50
C.1:75
D.None✔
9.If MPS 9 and growth of income 6 then capital output ratio is:-
A.1:25
B.1:50
C.1:75
D.None✔
10.when was discussed about RBI firstly ?
A.1910
B.1914✔
C.1926
D.1928 -
A Recession is a period when the economy of a country is doing badly, for example because industry is producing less and more people are becoming unemployed. The recession caused sales to drop off. We should concentrate on sharply reducing interest rates to pull the economy out of recession.
In a recession, you would usually expect a fall in the inflation rate due to lower demand. Though in theory, we can have a period of stagflation – rising inflation and falling output (e.g. after a rise in the price of oil)
A recession means two consecutive quarters of negative economic growth. With falling economic output and rising spare capacity, prices are likely to fall (or at least go up at a slower rate.)
This is because:
Firms have unsold goods. Therefore, to improve their cash flow they try discounting goods to get rid of their excess stock.
Lower wage growth. As unemployment rises and there is more competition for job vacancies, it is harder for workers to bargain for higher wages. Unemployment should reduce wage inflation, which has a prominent impact on headline inflation.
Lower commodity prices. A global recession should usually reduce demand for commodities and therefore reduce the price of commodities – leading to lower cost-push inflation.
Lower expectations. Low confidence in an economy usually reduces inflation expectation.
Falling asset prices. In a recession, the price of houses and other assets tends to fall due to lower demand. This leads to lower wealth and therefore, less spending.This graph shows the recession of 2009. During 2008 and 09, the inflation rate falls from 5% to under 2%.
Why inflation can rise during a recession
Inflation may not always fall in a recession.In the 1970s, we had a recession caused by cost-push factors. Oil prices tripled in late 1973. This caused inflation to soar – but also caused an economic downturn – firms and consumers couldn’t afford the higher oil prices. In other words, 1974 was a recession caused by cost factor.
2008-12 downturn
In 2008, at the start of the recession, inflation was running close to 5% – but this was primarily due to cost-push inflation from higher oil prices.
During 2012, there was a double dip-recession with low economic growth, but rising inflation. This was because
Impact of depreciation in value of Pound. Fall in the value of pound increased the cost of imports which feeds into inflation
A rise in oil and hence petrol prices.
A rise in taxes.
The rise in spare capacity was less than expected. Helped by zero interest rates, there were fewer insolvencies than in previous years. Also, the rise in unemployment is less than in previous years
Firms have sought to maintain good cash flow by not cutting prices.Deflation and the Great Depression
In the Great Depression, there was large fall in output, and this caused deflation. Prices fell quite significantly.The reason the Great Depression let to deflation was
Fall in money supply due to banking crisis in the US
Fiscal austerity. UK government pursued austerity in 1931 – cutting unemployment benefits and raising taxes.
Global slump caused global fall in commodities and manufactured goods.
The Pound was overvalued in the Gold Standard. An overvalued exchange rate tends to reduce inflation -
1. Which of the following explains the term economic growth?a. Increase in per capita production
b. Increase in per capita real income
c. structural change in the economy
d. all the above are right✔2. Economic development is characterized bya. Structural change in the economy
b. Change in the occupational structure
c. Both a and b✔
d. None of the above3. Which of the following explains the term economic development?a. Improvement in the technology involved
b. Improvement in production
c. Improvement in distribution system
d. All the above✔4. An underdeveloped economy is characterized bya. High per capita real income
b. Large proportion of labor force in the tertiary sector
c. State of deprivation of large proportion of population✔
d. All the aboveState of deprivation of large proportion of populationUnderdeveloped countries face the problem of deprivation of large section of the population, low per capita real income etc.5. Scarcity of capital , technological backwardness and unemployment are generally found ina. Developed countries
b. Underdeveloped countries✔
c. Both
d. None of the aboveUnderdeveloped countriesUnderdeveloped countries lag behind in various factors like availability of resources, technology etc.6. Which of the following denotes an underdeveloped economy?a. High level of inequalities
b. Low level of capital productivity
c. A relatively closed economy
d. All the above✔Other than the above features, there is High incidence of poverty, rapid population growth and technological backwardness too.7. Capital formation in underdeveloped countries is a major bottleneck. The reason can bea. Small size of market with no incentive for investment
b. Low level of income
c. Demonstration effect
d. All the above✔8. Consider the following statements and identify the right ones.i. Higher level of capital-output ratio indicates efficient use of capital.ii. It reflects the productivity of capital in the economya. I only
b. ii only✔
c. both
d. noneCOR refers to the number of units of capital required to produce one unit of output. A higher level of it means inefficient use of capital.9. Consider the following statements and identify the right ones.i. COR is relatively low in labour intensive sectors.
ii. COR will be high in capital intensive sectors
iii. Both✔
iv. NoneIt is high in capital intensive industries because of more use of capital and timelag between investment and production.10. Which of the following about strategy of balanced growth is right?a. Simultaneous investment in all sectors✔
b. All sectors are independent.
c. Both
d. NoneSimultaneous investment in all sectors.The supporters of this theory argue that simultaneous investment in all the sectors will help in faster growth. It is based on the idea that all sectors are interlinked.11.Which of the following had the approval of the classical economists (particularly J.S. Mill) as an aid to development?
A.Subsidizing the poor
B.Imposition of temporary duties on imports to develop particular industries✔
C.Regulation of activities of the rising business class
D.Appropriating a part of the national product by the government for unproductive uses12.The capital-output ratio is determined by:
A.Sectoral allocation of capital
B.Level of economic activity
C.Human and natural resources
D.All of the above✔13.Who formulated the theory of circular and cumulative causation which explains the perpetuation of underdevelopment through growing inequalities between developed and the underdeveloped countries?
A.Lewis
B.Gunnar Myrdal✔
C.Higgins
D.J.H.Boeke14.Which of the following models uses three distinct concepts of stages of growth?
A.Ramsey model
B.Harrod model✔
C.Domar model
D.Lewis model15.The classical theory of economic development is of relevance for the less developed countries today because it lays emphasis on:
A.Need for favourable institutional and social initiatives
B.Extension of markets
C.Capital accumulation
D.All of the above✔16.Which growth model inspired the use of capital-output ratio for development planning?
A.The Harrod-Domar model✔
B.Solow’s mode
C.Kaldor’s model
D.Feldman’s model17.The second stage of the theory of demographic transition is characterised by:
A.High birth-rate and high death rate
B.High birth-rate and falling death-rate✔
C.Low birth-rate and low death-rate
D.falling birth rate and high death rate18.According to the neo-classical theory, economic development is:
A.Gradual
B.Harmonious
C.Cumulative
D.All of the above✔19.The capital-output ratio in a country during the different phases of growth:
A.Remains unchanged
B.Fluctuates widely
C.Changes within narrow limits✔
D.None20.Which of the following concepts, which are now extensively used in growth economics, was first formulated by Keynes?
A.Marginal propensity to consume
B.Marginal propensity to save
C.Marginal efficiency of capital
D.All of the above✔21.Unemployment created by some long-term change in demand or technological conditions in an economy is known as:
A.Frictional unemployment
B.Cyclical un-employment
C.Structural unemployment✔
D.Disguised unemployment22.As an aid to development planning, much use is being made today of the input-output analysis. Who first used it?
A.H. Liebenstein
B.W.W.Leontief✔
C.W.A.Lewis
D.A.O.Hirshman23.According to Keynesian economics, saving and investment are brought into equilibrium by variations in:
A.Income✔
B.Price
C.Consumption
D.Output24.Arrange the following Rostow’s stages of economic growth in their proper sequence:
I, Traditional society;
II. Take-off stage;
III. Age of mass consumption;
IV. Drive to maturity
A.I, II, IV, III✔
B.I, II, III, IV
C.II, I, IV, III
D.II, I, III, IV25.Balanced growth implies:
A.Simultaneous development of a variety of activities, which support one another✔
B.Equal allocation of resources to different sectors
C.Different sectors growing at their natural rates of growth
D.Uniform rate of growth of output over time26.Which of the following is generally regarded as the true index of economic growth?
A.An increase in national income at constant prices during a year
B.A sustained increase in real per capita income✔
C.An increase in national income at current prices over time
D.An increase in national income along with a corresponding incease in population27.Which of the following statements is not correct in the light of the Malthusian theory of growth?
A.Growth of income cannot take place on its own
B.Population tends to increase in response to rise in income
C.There can be no general glut or overproduction in the market✔
D.Excess savings on the part of capitalists is the cause of overproduction28.The concept of economic growth is:
A.Identical with the concept of economic development
B.Narrower than the concept of economic development✔
C.Wider as compared to that of economic development
D.Unrelated to the concept of economic development29.Which of the following statements is not in agreement with the Malthusian view on economic growth?
A.The process of economic growth is automatic✔
B.Deficiency in effective demand halts the growth process
C.Lasting equilibrium can only be at the subsistence level
D.Savings are desirable only upto the limit set by the existence of profitable opportunities for investment30.Which of the following is not an indicator of economically underdeveloped countries?
A.Low per capita income
B.
High death-rate
C.Low proportion of labour force in the primary sector✔
D.High level of illiteracy31.Which sector was emphasised most by Ricardo in the context of economic growth?
A.Trade
B.Industry
C.Agriculture✔
D.Services32.The rate of growth of an economy mainly depends upon:
A.The rate of growth of the labour force
B.The proportion of national income saved and invested
C.The rate of technological improvements
D.All of the above33.In the Ricardian scheme of things, savings are provided by:
A.Labourers
B.Capitalists✔
C.Landlords
D.Both (b) and (c)34.Among the following determinants of growth, which is a non-economic factor?
A.Natural resources
B.Population growth
C.Favourable legislation✔
D.Capital accumulation35.Whichone of the following, according to Ricardo, would form a bottleneck to economic growth?
A.Shortage of land✔
B.Rising rent
C.Shortage of gold and silver
D.Rising wage bills36.Besides increase in output, economic development is concerned with:
A.Inputs and their efficiency
B.Equitable distribution of income
C.Life sustenance, self-esteem and freedom from want, ignorance and squalor
D.All of the above✔37.Which one of the following statements is not in tune with the Ricardian theory of growth?
A.Rent tends to rise
B.Money wages tend to rise
C.Profits tend to fall
D.Profits tend to rise✔38.The stationary state as envisaged by Adam Smith, is marked by:
A.Low rate of profit
B.Subsistence level wages
C.High rents
D.All of the above✔39.Which one of the following is not an assumption of the Ricardian theory?
A.Rising real wages✔
B.Fixity of land
C.Operation of the law of diminishing returns
D.Perfect competition40.Which of the following is inconsistent with Adam Smith’s theory of development?
A.Development process is cumulative in nature
B.There is no limit to the growth process✔
C.Capital accumulation and market extension are two prerequisites for output expansion
D.There should be no government interference in the working of the economy41.What causes development in terms of Rostow’s theory?
A.Favourable propensities of people
B.Changing profile of leading sectors of the economy
C.A sharp rise in investment
D.All of the above✔42.Which of the following is not correctly matched?
A.Big-push strategy: Paul N. Rosenstein- Rodan
B.Balanced growth theory: R. Nurkse✔
C.Development with unlimited supplies of labour: A-0. Hirschman
D.Critical minimum strategy: H. Uebenstein43.J.F. Meade pointed out three principles means of growth. Which of the following is not on the list?
A.Growth of working population
B.Capital accumulation
C.Devaluation✔
D.Technical progress44.Identify the country which was the first to move to the stage of high mass consumption:
A.UK
B.USA✔
C.Germany
D.France45.If the capital-output ratio is 4:1 and the annual growth rate of population is 2.5%, what will be required rate of investment in the economy in order to achieve 3% growth per annum in per capita income?
A.30%✔
B.20%
C.15%
D.12%46.The Harrod-Domar model is one of the well known models of growth. Which of the two authors of this model wrote earlier and in which year?
A.Domar in 1940
B.Harrood in 1939✔
C.Domar in 1946
D.Domar in 1948
47.The take off stage characterised by:
A.Rise in the rate of productive investment from 5% to over 10% of national income
B.Development of one or more substantial manufacturing sectors with a high growth rate
C.Quick emergence of a political, social and institutional framework to enable expansion in various fields
D.All of the above✔48.With economic growth, the proportion of labour-force engaged in agriculture:
A.Increases
B.Decreases✔
C.Remains unaffected
D.Changes in an uncertain manner49.Which of the following models formed the basis of India’s Second Five Year Plan?
A.Harrod-Domar model
B.Raj-Sen model
C.Cambridge model
D.Mahalanobis model✔50.Under the ‘big-push’ strategy of development, large investments are to be directed towards:
A.Agriculture
B.Industry✔
C.Power
D.Transport51.A strategy of heavy industry is sometimes preferred for a developing economy because it can:
A.Generate employment opportunities on a large scale
B.Provide a strong base for rapid industrialisation✔
C.Contain inflationary pressures
D.Meet deficits in balance of payments in the short-run52.Which of the following models makes the assumption of constant saving-income ratio?
A.Kaldor model
B.Leontief model
C.Harrod-Domar model✔
D.Joan Robinson model53.The basic logic behind the ‘big-push’ strategy of development is related to:
A.Internal economies
B.External economies✔
C.An optimum combination
D.Both (a) and (b)54.In which sphere are shadow prices particularly useful?
A.Project evaluation and cost-benefit analyses✔
B.calculation of surplus value
C.Sales policy of firms
D.Consumers equilibrium55.Identify the model which is concerned with the ‘golden age’ equilibrium:
A.Kaldor model
B.Joan Robinson model✔
C.Keynesian model
D.Domar model56. The additional capital used per unit of additional production is called
a. Induced investment
b. Autonomous investment
c. Incremental COR✔
d. None of the above
COR refers to the number of units of capital required to produce one unit of output.57.Economic growth in India will happen necessarily if there is
a. Population growth
b. Capital formation✔
c. Technical progress in the global economy
d. All the above
Capital formation refers to investment in tools, machinery, buildings etc.58.Inclusive governance includes
a. Allowing NBFCs to do banking
b. Increase government spending on health
c. Strengthening mid-day meals scheme
d. All the above✔
Inclusive governance denotes inclusion of schemes and other measures for benefit of all the sections of the society.59.Which of the following denotes business activity at high level with increasing output and income?
a. Boom✔
b. Recession
c. Depression
d. Recovery
Boom, recession, depression and recovery are the phases of a business cycle.60.The phase of gradual fall in income, output and employment is
a. Boom
b. Recession✔
c. Depression
d. RecoveryBoom, recession, depression and recovery are the phases of a business cycle. In this phase, business activity is in low gear.
-
1. The fundamental economic problem faced by all societies is:
a. unemployment
b. inequality
c. poverty
d. scarcity✔2. “Capitalism” refers to:
a. the use of markets
b. government ownership of capital goods
c. private ownership of capital goods ✔
d. private ownership of homes & cars3. There are three fundamental questions every society must answer. Which of the following is/are one of these questions?
a. What goods and services are to be produced?
b. How are the goods and services to be produced?
c. Who will get the goods and services that are produced?
d. All of the above ✔4. If you were working full-time now, you could earn $20,000 per year. Instead, you are working part-time while going to school. In your current part-time job, you earn $5,000 per year. At your school, the annual cost of tuition, books, and other fees is $2,000. The opportunity cost of completing your education is:
a. $2,000
b. $5,000
c. $17,000✔
d. $20,0005. The bowed shape of the production possibilities curve illustrates:
a. the law of increasing marginal cost✔
b. that production is inefficient
c. that production is unattainable
d. the demand is relatively inelastic6. You have taken this quiz and received a grade of 3 out of a possible 10 points (F). You are allowed to take a second version of this quiz. If you score 7 or more, you can raise your score to a 7 (C). You will need to study for the second version. In making a rational decision as to whether or not to retake the test, you should
a. always retake the quiz
b. consider only the marginal benefits from of retaking the quiz (four extra points)
c. consider only the marginal opportunity costs from taking the quiz (the time spent
studying and taking the quiz)
d. consider both the marginal benefits and the marginal opportunity costs of retaking the quiz✔7. The law of demand states that:
a. as the quantity demanded rises, the price rises
b. as the price rises, the quantity demanded rises
c. as the price rises, the quantity demanded falls✔
d. as supply rises, the demand rises8. The price elasticity of demand is the:
a. percentage change in quantity✔ demanded divided by the percentage change in price
b. percentage change in price divided by the percentage change in quantity demanded
c. dollar change in quantity demanded divided by the dollar change in price
d. percentage change in quantity demanded divided by the percentage change in quantity supplied9. Community Colleges desired to increase revenues. They decided to raise fees paid by students with Bachelors degrees to $50 per unit because they believed this would result in greater revenues. But in reality, total revenues fell. Therefore, the demand for Community College courses by people with Bachelors degrees must have actually been:
a. relatively inelastic
b. unit elastic
c. relatively elastic
d. perfectly elastic ✔10. The demand for a product would be more inelastic:
a. the greater is the time under consideration
b. the greater is the number of substitutes available to buyers
c. the less expensive is the product in relation to incomes✔
d. all of the above11. In the case of agriculture,
a. the demand has shifted to the right more than the supply has shifted to the right
b. the demand has shifted to the right less than the supply has shifted to the right✔
c. the demand has shifted to the left more than the supply has shifted to the left
d. the demand has shifted to the left less than the supply has shifted to the left12. The agricultural price support program is an example of
a. a price ceiling
b. a price floor ✔
c. equilibrium pricing13. If there is a price floor, there will be
a. shortages
b. surpluses ✔
c. equilibrium14. If there is a price ceiling, there will be
a. shortages✔
b. surpluses
c. equilibrium15. If there is a price ceiling, which of the following is NOT likely to occur?
a. rationing by first-come, first-served
b. black markets
c. gray markets
d. sellers providing goods for free that were formerly not free✔16. The goal of a pure market economy is to best meet the desires of
a. consumers ✔
b. companies
c. workers
d. the government17. In a pure market economy, which of the following is a function of the price?
I. provide information to sellers and buyers , II. provide incentives to sellers and buyers
a. I only
b. II only
c. both I and II ✔
d. neither I nor II18. In a market system, sellers act in ____________ interest , but this leads to behaviors in ____________ interest.
a. self; self
b. self; society’s ✔
c. society’s; society’s
d. society’s; self19. The law of diminishing (marginal) returns states that as more of a variable factor is added to a certain amount of a fixed factor, beyond some point:
a. Total physical product begins to fall
b. The marginal physical product rises
c. The marginal physical product falls✔
d. The average physical product falls20. Why is the law of diminishing marginal returns true?
a. specialization and division of labor
b. spreading the average fixed cost
c. limited capital✔
d. all factors being variable in the long-run21. Which of the following is a characteristic of pure monopoly?
a. one seller of the product ✔
b. low barriers to entry
c. close substitute products
d. perfect information22. In pure monopoly, what is the relation between the price and the marginal revenue?
a. the price is greater than the marginal revenue ✔
b. the price is less than the marginal revenue
c. there is no relation
d. they are equal23. In order to maximize profits, a monopoly company will produce that quantity at which the:
a. marginal revenue equals average total cost
b. price equals marginal revenue
c. marginal revenue equals marginal cost✔
d. total revenue equals total cost24. Compared to the case of perfect competition, a monopolist is more likely to:
a. charge a higher price
b. produce a lower quantity of the product
c. make a greater amount of economic profit
d. all of the above✔25. Which of the following is necessary for a natural monopoly?
a. economies of scale
b. a high proportion of the total cost is the cost of capital goods
c. the market is very small
d. all of the above✔26. Which of the following is true about the way by which SDG&E has been regulated by the PUC?
a. SDG&E has been allowed to earn very high economic profits
b. The profits of SDG&E are calculated as a percent of the value of the capital goods✔
c. When the demand for electricity would fall, the price of electricity would also fall
d. All of the above27. Which of the following best defines price discrimination?
a. charging different prices on the basis of race
b. charging different prices for goods with different costs of production
c. charging different prices based on cost-of-service differences
d. selling a certain product of given quality and cost per unit at different prices to different buyers✔28. In order to practice price discrimination, which of the following is needed?
a. some degree of monopoly power
b. an ability to separate the market
c. an ability to prevent reselling
d. all of the above✔29 In price discrimination, which section of the market is charged the higher price?
a. the section with the richest people
b. the section with the oldest people
c. the section with the most inelastic demand✔
d. the section with the most elastic demand30.If AR=1 then Monopoly power is :
a.0✔
b.1
c.2
d.Not determined31. The largest source of tax revenue for the federal government is:
a. the personal income tax✔
b. the social security tax
c. the property tax
d. the sales tax32. When my income was $100,000, I paid $10,000 in taxes. When my income became $200,000, I paid $40,000 in taxes. My marginal tax rate is:
a. 10%
b. 20%
c. 30%✔
d. 40%33. The tax is question #2 is:
a. progressive✔
b. regressive
c. proportional34. Which of the following taxes is regressive?
a. the federal income tax
b. the state income tax
c. the sales tax✔
d. the Medicare tax35. Assume that there are two goods, A and B. In 1996, Americans produced 10 units of A at a price of $10 and 20 units of B at a price of $20. In 2002, Americans produced 20 units of A at a price of $20 and 30 units of B at a price of $30. The Nominal GDP for 2002 is:
a. $100
b. $400
c. $500
d. $900
e. $1300✔36. Using the numbers in question 5, the Real GDP for 2002 is:
a. $400 b. $500 c. $800✔ d. $900 e. $1,30037. Which of the following statements is/are true?
a. Business Investment Spending occurs when individuals buy stock in the stock market
b. Productivity is the United States grew very slowly between 1973 and 1996✔
c. Because of discouraged workers, the official unemployment rate is too high
d. “Full employment” occurs when there is no frictional unemployment38. Immediately after a trough, we would expect to have a/an
a. peak
b. recession
c. recovery✔
d. another trough39. Last week, Martha spent one day cleaning a house. For this, she was paid $50. The rest of the week, she spent looking for a job. Martha would be classified as
a. employed✔
b. unemployed
c. not in the labor force
d.all of the above
40. John lost his accounting job when Montgomery Wards closed its stores in San Diego. He looked for a similar job for ten months before finding an accounting job at Sears. During the month John was unemployed, he was
a. frictionally unemployed
b. seasonally unemployed
c. cyclically unemployed
d. structurally unemployed✔41. Assume that there are only two goods: A and B
In the base year, Quantity Price
A 10 $1
B 10 $4
In the current year, Quantity Price
A 20 $ 5
B 25 $20
The Consumer Price Index (CPI) for the current year is:
a. 50
b. 100
c. 200
d. 500
e. 600✔42. Which of the following groups is most hurt by unexpected inflation?
a. workers with cost of living adjustments in their labor contracts
b. homeowners
c. people with large debts to pay for their homes and cars
d. people with large retirement savings held in savings accounts✔43. If the nominal interest rate is 5% and the inflation rate is 2%, the real interest rate is:
a. 2%
b. 3%✔
c. 5%
d. 7%
e. 2 ½%44. For which of the following reasons might inflation cause Real GDP to grow slower than it otherwise would?
a. Inflation makes everyone poorer
b. Inflation reduces the value of consumer debt
c. Inflation increases business investment spending
d. Inflation decreases savings in financial form✔45. Disposable Income is equal to:
a. National Income c. National Income Minus Taxes
b. Real GDP
c. National Income Minus Taxes
d. National Income Minus Taxes Plus Transfers✔46. Assume that Potential Real GDP equals $10,000. National Income is therefore $10,000. Of this, consumers will pay $2,000 in taxes, save $1,000, and spend $7,000 on consumer goods. Business Investment spending is $2000. In order to avoid recessions and inflation (to have equilibrium), the government should have a:
a. balanced budget
b. budget deficit of $1000
c. budget surplus of $1000✔
d. budget deficit of $200047. According to Keynes, when the Great Depression started, the government should have:
a. done nothing
b. decreased the money supply
c. had a large increase in government spending✔
d. enacted high tariffs, such as the Smoot-Hawley Tariff48. If the government lowers taxes by $10 billion, the Real GDP will rise by
a. more than $10 billion✔
b. less than $10 billion
c. exactly $10 billion49. Which of the following is an automatic stabilizer?
a. unemployment benefits✔
b. spending on education
c. defense spending
d. net interest50. “Crowding out” means that
a. a government budget deficit lowers interest rates and causes investment spending to rise
b. an increase in marginal tax rates lowers production
c. a government budget deficit raises interest rates and causes investment spending to fall✔
d. a government budget deficit raises American exports and lowers American imports51. Which of the following IS a function of money?
a. medium of exchange
b. store of value
c. unit of accounting
d. all of the above✔52. Which of the following is a component of M-1?
a. savings deposits
b. credit card
c. checkable deposits✔
d. gold53. Which of the following is a NOT component of M-2?
a. small time deposits
b. money market mutual funds
c. stocks✔
d. checkable deposits54. Which of the following is true about the Federal Reserve System (Fed)?
a. it is a system of 12 central banks✔
b. its Board of Governors is elected by a vote of the people
c. its main policy-making body is the FDIC
d. it accepts deposits from the public and makes loans to businesses
e. all of the above55. An IOU of the Federal Reserve Bank of San Francisco to Bank of America is called:
a. discounts
b. federal funds
c. reserves✔
d. collateral56. Which of the following is the most liquid?
a. a savings account✔
b. a 6 month CD
c. a home
d. water57. The monetary base is composed of:
a. gold and silver
b. currency only
c. currency and reserves✔
d. currency and checkable deposits58. If the monetary base is increased by $1,000 and the reserve requirement is 10% (1/10), by how much will the money supply be increased?
a. $100
b. $1,000
c. $5,000
d. $10,000✔59.If the Federal Reserve wishes to increase the money supply, it should:
a. raise the reserve requirement
b. raise the discount rate
c. buy Treasury securities in the open market✔
d. all of the above60. An increase in the money supply will cause interest rates to
a. rise
b. fall✔
c. remain unchanged
d.None -
1. Keynesian economics is also known as:
A. Supply side economics
B. Monetary economics
C. Rational expectations
D. Depression economics✔
2. Which of the following can cause shifts in consumption function:
A. Psychological attitude
B. Social practices
C. Business motives
D. Changes in price level✔
3. APC is determined by the following equation:
A. C/Y✔
B. S/Y
C. ΔC/ΔY
D. ΔS/ΔY
4. In the Keynesian two sector model, when AD = AS, then:
A. S<I
B. S>I
C. S=I✔
D. I=0
5. Which of the following is not correct:
A. MPC declines as income increases
B. MPC is positive but less than one
C. MPS is always positive✔
D. All the above
6. According to Keynes, saving is:
A. Private virtue but not social virtue✔
B. Private and social virtue
C. Is neither private virtue nor social virtue
D. Is either social virtue or private virtue
7. MEC is inversely related to:
A. Prospective yield✔
B. Supply price
C. Investment
D. Rate of interest
8. Keynes considered subjective and objective factors:
A. Important determinants of consumption
B. Unimportant determinants of consumption✔
C. Determinants of investment
D. Determinants of business’s willingness to pay
9. The sum of marginal propensity to consume plus marginal propensity to save must
equal to:
A. 0
B. 1✔
C. 100
D. 1000
10. Keynesian economics is:
A. Macro✔
B. Micro
C. Both
D. None
11. The MEC increases when:
A. Capital stock increases
B. Capital stock decreases✔
C. Capital remains constant
D. None of the above
12. Which of the following is correct?
A. 1+MPS = MPC
B. 1- MPC = MPS✔
C. MPC + MPS >1
D. MPC+ MPS<1
13. Starting point of Keynesian economics is:
A. Effective demand✔
B. Individual demand
C. Aggregate demand
D. Market demand
14. Keynesian three sector model consist of:
A. Business sector, service sector, external sector
B. Households, business, government✔
C. Government sector, open sector, service sector
D. Government sector, private sector, open sector
15. A substantial increase in the rate of interest can cause:
A. Increase in savings
B. Reduce propensity to consume
C. All the above✔
D. None of the above
16. Functional relationship between saving and disposable income is:
A. Saving function✔
B. Income function
C. Consumption function
D. Investment function
17. As the value of MPC increases, the value of multiplier:
A. Decreases
B. Increases✔
C. Constant
D. Cannot say
18. Who among the following pioneered the first real estimate of national income?
A. Adam Smith
B. David Ricardo
C. William Petty✔
D. None of the above
19. Who argued that national income is simply equal to “net product of agriculture”?
a.Mercantilists
b.Physiocrats✔
C. Classical Economists
D. Neo Classical Economists
20. Who argued that “Everything that is produced in the course of a year, every service
rendered, every fresh utility brought about is a part of the national wealth.”?
A. JS Mill
B. Stanley Jevons
C. Alfred Marshall✔
D. Robert Malthus
21. Who made the first major attempt to estimate national income in a somewhat
comprehensive manner?
A. Robert Fisher
B. John Maynard Keynes
C. Simon Kuznets✔
D. Arthur Pigou
22. Consumption of capital good in the process of production is called as
A. Capital Consumption
B. Depreciation✔
C. Decay of Capital
D. None of the above
23. Which one of the following is roughly equal to national income?
A. GDP
B. NNP✔
C. GNP
D. SDP
24. Which one of the following includes ‘income of residents’?
A. GDP
B. NNP✔
C. SDP
D. None of the above
25. Remittances made by NRIs to India in the context of national income accounting is
called as
A. Remittance Income
B. NRI Income
C. Factor Payments✔
D. All of the above
26. Who first introduced the concept of circular flow of income?
A. William Petty
B. Adam Smith
C. David Ricardo
D. Fancois Quesnay✔
27. Which one in the following is a stock variable?
A. Income
B. Investment
C. Capital✔
D. Fiscal Deficit
28. Which one in the following is a flow variable?
A. Debt
B. Wealth
C. Unemployment
D. GDP✔
29. Why do not the sale or purchase of used goods are not included in the GDP?
A. Used goods have only limited life
B. Used goods are not fresh production
C. Used goods are included in the previous GDP calculations✔
D. All the above
30. Inventories are unsold goods produced by a firm, then why do they are included in GDP?
A. Inventories represent value
B. Inventories add to the stock of the firm
C. They are purchases by the firm itself✔
D. All the above
31. The value of ‘intermediate goods’ are excluded from GDP calculation because:
A. It will increase the GDP unduly
B. It results in multiple counting of same value✔
C. Intermediate goods are not important
D. All the above
32. Value added at each stage of production means:
A. Value of output minus value of input✔
B. Total value added by that stage
C. Total value produced at that stage
D. All of the above
33. Imputed value of good is added to the GDP because:
A. They indeed represent value
B. There is no market price for that✔
C. They increase consumption
D. None of the above
34. GDP Deflator is also called as:
A. Implicit Cost Deflator
B. GDP at Factor Cost
C. Implicit Wage Deflator
D. Implicit Price Deflator✔
35. Personal Income includes:
A. Dividend distributed✔
B. Social insurance contributions
C. Corporate profit
D. None of the above
36. Disposable Income does not include:
A. Excise duty paid
B. Income tax✔
C. Customs duty paid
D. None of the above
37. Investment is reckoned by which method for computing GDP:
A. Income Method
B. Product method
C. Expenditure Method✔
D. Value added Method
38. Adam Smith, the father of modern economic theory, defined economics as a subject,
which is mainly concerned with the study of nature and causes of generation of ______
A. Wealth✔
B. Welfare
C. Hipness
D. Scarcity
39. _________ introduced the concept of welfare in the study of economics:
A. Fischer
B. Alfred Marshall✔
C. J S Mill
D. Adam Smith
40. Who defined economics as: a science which studies human behavior as a relationship
between ends and scarce means which have alternative uses:
A. J B Say
B. Alfred Marshall
C. David Ricardo
D. Robbins✔
41. “Economics is both a science and an art”.
A. True✔ B. False C. None
42. The problem of scarcity and choice making can be depicted using the tool of ___ curve.
A. Demand B. Isoquant
C. Indifference D. Production possibility✔
43. Macroeconomics is primarily concerned with aggregates. Which of the following is not
a macroeconomic aggregate?
A. Decision making by a household✔
B. The unemployment rate, and inflation levels
C. National income
D. The supply of money
44. Scientific attempts to describe economic relationships are :
A. Factual and can never be wrong
B. Accurate ways to predict political viewpoints
C. Known as positive economics✔
D. Directed at the fairness of social programs
45. The ________ method consists in deriving conclusions from general truths, takes few
general principles and applies them draw conclusions.
A. Inductive
B. Deductive✔
C. Empirical
D. Scientific
46. ________is a term referring to an intellectual controversy over epistemology, research
methodology between Carl Menger, and Gustav von Schmoller.
A. Methodenstreit✔
B. Laissez-faire
C. Cetris Paribus
D. Quid Proquo
47. Inductive method which also called empirical method was adopted by the:
A. Marginalist school
B. Mercantilists
C. Physiocrats
D. Historical School of Economists✔
48. Decisions made in households, firms, and government are the focus of:
A. Positive economic
B. Microeconomics
C. Normative economics✔
D. Macroeconomics
49. Which of the following statements is normative?
A. Higher oil prices will increase the inflation rate
B. Tax rates on the working poor should be reduced✔
C. Other things equal, if the price of an item is reduced, consumers will tend to
buy more of it
D. If interest rates remain high this quarter, business investment will continue
to be weak
50. Knowledge used to combine resources productively is called:
A. Comparative advantage
B. Capitalism
C. Entrepreneurship
D. Technology✔
51. Economic efficiency for the entire economy requires that :
A. Potential gains to anyone necessitate losses to another
B. All goods be produced at their lowest possible opportunity costs
C. Maximum-valued output is obtained from given resource
D. All of the above✔
52. Theories are:
A. Much more complicated than common sense
B. Scientific only if based on normative value judgments
C. Proven if only a few unimportant exceptions exist
D. Developed when we collect data, try to explain how things work, and then
test for Validity✔53. Division of Labour is limited by the extent of:
A. Supply
B. Demand
C. Price
D. Market✔
54. Milton Friedman restated the :
A. Labour Theory
B. Profit Theory
C. Quantity Theory of Money✔
D. Wage theory
55. If the value of a variable varies as a consequence of the variation in the value of some
other variable, it is called:
A. Exogenous variable✔
B. Endogenours v ariable
C. Stock
D. Flow
56. Saving is a function of:
A. Export
B. Investment
C. Improvement in productivity
D. Income✔
57. In the classical theory the equlity between saving and investment is brought about by:
A. Income
B. Rate Interest✔
C. Consumption
D. None of these
58. Economic Laws are:
A. Statement of tendencies✔
B. Exact and predictable
C. Definite
D. None
59. Which of the following concepts are most closely associated with J.M. Keynes?
A. Control of the money supply
B. Marginal utility theory
C. Indifference curve analysis
D. Marginal efficiency of capital✔
60. Which of the following is an example of economic overhead?
A. Schools
B. Roads and Railwlays✔
C. Sanitary facilities
D. Hospitals
61. Three methods of computing the national income are:
A. Savings, investment and income methods
B. Outlay, depreciation and production methods,
C. Production, outlay and income methods,✔
D. Revenue, consumption and production methods
62. The difference between GNP at Factor Cost and NNP at Factor Cost is:
A. Imports
B. Depreciation
C. Taxes on Agriculture
D. Net income from abroad✔
63. An equilibrium which holds a particular position over-time is:
A. General Equilibrium
B. Unstable equilibrium
C. Stable equilibrium✔
D. Partial equilibrium
64. National income is a:
A. Cross section analysis
B. Flow concept✔
C. Stock concept
D. None
65. The services of a house wife are:
A. Not part of Production✔
B. A part of production
C. A part of consumption
D. Not a part of consumption
66. Inflation can not be caused by:
A. Cost push factor
B. Excessive money supply
C. Excessive production✔
D. Demand pull factors
67. By representing amounts of proceeds by all entrepreneurs along the Y axis and volumes
of employment along the X-axis, we can draw——–curves.
A. Employment✔
B. Consumption and Savings
C. Revenue and employment
D. Aggregate supply and demand
68. “Effective demand is different from aggregate demand”. This statement is:
A. True ✔B. False
C. Baseless D. None of these
69. If MPC = 4/5, then value of the multiplier is:
A. 20 B. 5✔
C. 0.80 D. 1.25
70. In the Cambridge equation of M =KPR, the value of “K” is:
A. “V” in the Fisher’s Equation B. 1/V✔
C. M/V D. None of these
71. Who had a different macro theory than the rest?
A. Adam Smith ✔B. David Ricardo
C. Malthus D. J.B.Say
72. ”Mr. Keynes and the Classics” is the title of the famous paper by :
A. Hansen B. Hicks✔
C. Harrod D. Haberler
73. Which of the following is not a flow variable:
A. Income B. Wealth✔
C. Saving D. Investment
74. The quantity theory of money is primarily a theory of demand for money is stated by:
A. Marshall B. Fisher
C. Keynes D. Friedman✔
75. When MPC is 0.5, the value of multiplier is:
A. 5 B. 0.5
C. 2 ✔D. 4
76. In Classical theory, the equality between saving and investment is brought about by:
A. Income B. Rate of interest✔
C. Consumption D. Multiplier.
77. Which one of the following is not correct:
A. MPC declines as income increases
B. MPC is positive but less than one
C. MPS is always positive✔
D. MPS declines as income increases
78. Marginal propensity to consume means:
A. Inclination to conspicuous consumption
B. Low income group spending more
C. Rate of income spend on consumption
D. The rate of extra income that will be spent on consumption✔
79. Human capital formation refers to:
A. The process of increasing the number of people
B. The process of physical growth of capital
C. The process of increasing knowledge, skills and capacities of all people✔
D. The process of providing more facilities to the people
80. According to Keynesian analysis, consumption is a function of:
A. Permanent income
B. Current income✔
C. Estimated lifetime income
D. Previous income.
81. If in an economy, out of every additional Rs.100 of national income, Rs.20 is taxed,
Rs.20 is saved, and Rs.10 is spent on imports, then the value of multiplier is:
A. 2 ✔B. 2.5 C. 3.3 D. 5
82. Which of the following equation is wrong?
A. National Income = Effective demand✔
B. National Income = GNP
C. National Income = C + I
D. National Income = C + S
83. The essential condition to act as money is:
A. It is homogeneous B. It is legal tender
C. It is backed by gold D. It is generally acceptable✔
84. Which of the following is not a component of Income method to GNP?
A. Wages and salaries B. Interest
C. Depreciation ✔D. Net foreign investment
85. The marginal propensity to save is defined as:
A. 1-ΔC/ΔY✔ B. S/Y
C. Y/S D. Y/ΔS
86. ————-is associated with the theory of multiplier:
A. Adam Smith B. Malthus
C. Malthus D. Keynes✔
87. The MPC has a value:
A. Greater than one but less than two
B. Less than one but greater than zero✔
C. Greater than two
D. None of these
88. Which of the following is not a stock variable:
A. Vapital B. Wealth
C. Money supply D. Saving✔
89. An official reduction in the value of home currency in terms of foreign currency is
known as:
A. Revaluation B. Devaluation✔
C. Depreciation D. Appreciation
90. The value of investment multiplier depends on:
A. APC B. APS
C. MPC ✔D. MPS
91. Wage cut as a solution of unemployment in classical theory is suggested by:
A. J.B. Say B. A.C. Pigou✔
C. Keynes D. Marshall
92. The word macro was first used in Economics by:
A. Keynes B. Ragner Frisch✔
C. J.R. Hicks D. J.B. Say
93. Personal Disposable income is:
A. Always equal to personal income
B. Always more than personal income
C. Equal to personal income minus direct taxes✔
D. Equal to personal income minus indirect taxes
94. When the method of Statics is called upon to study a changing process, it is referred to
as the method of:
A. Statics B. Dynamics✔
C. Comparative statics D. None of these
95. In Classical theory of employment, there is the possibility of:
A. No unemployment B. Voluntary unemployment✔
C. Disguised unemployment D. Involuntary unemployment
96. Leakages are the factors which:
A. Keep the power of multiplier stable
B. Increase the power of multiplier
C. Reduce the power of multiplier✔
D. Reduce the power multiplier to zero.
97. The phenomenon of increase in money wages that leads to increases in unemployment
is shown by:
A. Speculative demand curve B. Phillip’s curve✔
C. Aggregate supply D. Income consumption curve
98. Which of the following is Keynesian saving function?
A. S = f(i) B. S = f(P)
C. S = f (Y) D. S = f (W)
99. Usually an IS curve is a ——-line.
A. Vertical B. Downward Slopping
C. Horizontal D. Upward slopping
100. When consumption and income are equal, saving is ————
A. Negative B. Positive
C. Zero D. Increasing
-
271. When did the Reserve Bank of India
become a state owned institution ?
1943
1949 ✅
1947
19542. Ratchet effect relates to:
Life-
cycle hypothesis
Permanent income hypothesis
Relative income hypothesis✅
Absolute income hypothesis3. Money appears to have a major influence on
Inflation
The bus cycle
Interest rates
Each of the above✅4. Banks create funds using following methods except….
Share capital
Reserve fund
Borrowing from general public
Investments✅5. In a multiple regression model given by Yi + β1 + β2α2i + β3α3i uv the partial regression coefficients are given by
Both β1 and β2
Both β2 and β3✅
Both β1 and β3
Both β1 and ui6. All internationally traded services are covered under which of the following WTO agreements?
GATS✅
TRIPS
TRIMS
PTA7. Kaldor’s Model of growth identifies the factor causing growth as
savings
capital accumulation
human capital investment
technical dynamism✅8. In India, minimum support price for agricultural products is finally approved by
Union Cabinet ✅
Ministry of Agriculture
The Parliament of India
The President of India9. National income Is defined as
GDP at market price
NNP at market price
GNP at market price
NNP at Factor cost✅10. Suppose the demand curve is downward sloping and supply curve is positively sloping. Imposition of tax would
increase producer’s surplus
reduce consumer’s surplus✅
leaves producer’s surplus unchanged but reduces consumer’s surplus11. The overall goodness of fit of the regression model is measured by
Coefficient of variation
Coefficient of determination✅
Coefficient of correlation
Coefficient of association12. “Underdevelped countries are the slums of the world economy.” This statement is stated by
Ragner Nurkse
A. K. Cairncross✅
Colin Clark
Jadgish Bhagwati13.The Indian soft drinks market is dominated by two companies, Coke & Pepsi. What typo of market structure prevails in the industry?
Perfect competition
Monopolistic competition
Duopoly ✅
None of these14. Shut-down point is one where
Marginal revenue equals zero
A firm cannot reach a no profit no-loss position
Average revenue fails to cover average variable cost ✅
Marginal revenue equals price15. Who was the Chairman of 14th Finance Commission of India?
vijay Kelkar
Abhijeet Sen
Raghuram Rajan
Y.V. Reddy✅16. Which are the two main phases of a business cycle?
Recession & expansion ✅
Depression & boom
Peak & down
Boom & recession17. In classical linear regression model, xi and ui are
Positively correlated
Negatively correlated
Highly correlated
Not correlated✅18. Which of the following is an example of credit Investment?
A share
A draft
A banker’s acceptance
A bond✅19. A price taker is
a firm that accepts different prices from different customers
a consumer who accepts different prices from different firms
a firm that accepts the best offers it can get from its customers
a firm that cannot influence price✅20. The exchange of goods or services between individuals and institutions is known as
Market economy
Economic interaction ✅
Medium of exchange
None of the above21. How should a government react to a depression in the economy?
Increase taxation
Increase govt. expendi-ture
Reduce govt. expenditure
Increase govt. expenditure and reduce✅22. The costs that do not vary with the level of output but can be avoided at zero level of output are
Sunk costs ✅
Total costs
Fixed costs
Implicit costs23. If the demend for LIPG remain the same even after the Increase In LPG prices, It means LPG is a
Norma’ good
Necessity✅
Luxury good
Inferior good24. How should a government react to a recovery situation In an economy?
Increase govt expenditure
Reduce govt. expenditure ✅
Increase govt. expenditure and reduce taxation
None of the above25. In India, minimum support price for agricultural products is finally approved by
Union Cabinet ✅
Ministry of Agriculture
The Parliament of India
The President of India26. Who assumed elasticity of demand for money equal to 1?
Mill
Hicks
Marshall✅
Samuelson27.HDI is constructed with reference to
(i) Life expectancy or birth
(ii) Real GDP/per capita
(iii) Inflation index
(iv) Nominal GDP
Code:
(i) and (ii) ✅
(ii) and (iii)
(iii) and (iv)
(iv)only
28. In standard bivariate regression, the coefficient of determination is given by:-
Residual sum or squares divided by total sum of squares
Total sum of squares divided by residual sum of squares
One minus residual sum of squares divided by total sum of squares
One plus residual sum of squares✅ divided by total sum of sguares29. In the Lewis Model of growth the process or capital accumulation by:- capitalists results in
higher productivity✅
reduction of surplus labour
technical progress
shortage or unskilled labour30. The Introduction of new product with added features in the market Is known as
Process innovation
Product innovation✅
Plant innovation
Product function -
1. Excess demand for money, according to Say’s law in the Economy:
(A) Is greater
(B) Is very less
(C) Is equal to zero
(D) There is no relationship between excess demand for money and Say’s Law✔
2. Which of the following is not an assumption of classical theory?
(A) Price flexibility
(B) Unemployment✔
(C) Say’s law
(D) Neutrality of money3. In classical theory the equality between saving and investment is brought about by:
(A) Rate of interest✔
(B) Income
(C) Consumption
(D) Multiplier4. The normal condition of a capitalist economy in classical theory is:
(A) Underemployment
(B) Full employment✔
(C) General unemployment
(D) Frictional unemployment5. Equation of exchange is associated with:
(A) Pigou
(B) J.B.Say
(C) Marshall
(D) Irving Fisher✔6. The theory explaining the direct relationship between the price level and quantity of money is known as :
(A) Quantity theory of money✔
(B) Say’s law of markets
(C) Real theory of interest
(D) None of these7. In classical theory the level of employment is a function of:
(A) Price level
(B) Money wage rate
(C) Quantity of money
(D) Real wage rate✔8. Equation of exchange is converted into the quantity theory of money by assuming the
following variables as constants:
(A) V and T ✔
(B) M and V
(C) M and P
(D) V and P9. Which of the following is not an obstacle to full employment in classical theory?
(A) Excess of saving over investment
(B) Liquidity trap
(C) Price rigidity
(D) Wage Flexibility✔
10. Fisher’s Equation of quantity theory states that :
(A) P varies directly with income
(B) P varies directly with M✔
(C) P and M are constants
(D) None of the above11. The classical economists believed that the demand for labour is a function of:
(A) Total money wages
(B) Money wage rate
(C) Total real wages
(D) Real wage rate✔12. In classical theory of employment, there is the possibility of:
(A) Voluntary unemployment✔
(B) No unemployment
(C) Involuntary unemployment
(D) Disguised unemployment13. The idea that a general cut in wages will finally lead to a state of full employment was suggested by :
(A) Keynes
(B) Marshall
(C) J.B.Say
(D) A.C.Pigou✔14. Say’s law of market says:
(A) Supply creates its own demand✔
(B) Demand creates supply
(C) Income generates demand
(D) Savings create demand
15. The aggregate production function implied under classical theory is :
(A) Long run ✔
(B) Short run
(C) No time element
(D) None of the above16. In the Cambridge equation of M = kPR, the value of k is:
(A) M/V
(B) 1/V✔
(C) V in Fisher’s equation
(D) None of these17. As a result of an increase in capital, ceteris paribus, —— the marginal productivity of labour:
(A) Remains constant
(B) Increase✔
(C) decreases
(D) none of these18. In the classical theory, one of the following is an important assumption:
(A) Wages and prices are inflexible
(B) There is full employment✔
(C) Agents are price setters
(D) Adjustment is through quantity.19. In the Fisher’s extended equation of exchange MI VI represents:
(A) Credit money✔
(B) Primary money
C) Both primary and credit money
(D) General price level20. In Fisher’s transaction velocity model, one of the following is not an assumption:
(A) Velocity of circulation of money is constant
(B) The volume of transactions is constant
(C) Full employment
(D) P is considered as an active factor✔
21. The cash balance equation M = KPO was given by:
(A) Keynes
(B) Pigou
(C) Robertson
(D) Marshall✔22. “Supply creates its own demand “is a law of:
(A) Investment
(B) Inflation
(C) Consumption
(D) Market✔23. In the equation MV+ MI VI = PT, ‘M ‘denotes:
(A) Velocity of money
(B) Money in circulation✔
(C) Bank deposit
(D) None of these24. I classical demand for money, the relationship between money supply and price level is:
(A) Proportional
(B) Non-proportional✔
(C) Neither proportional nor non-proportional
(D) None of these
25. As per classical theory saving is:
(A) An increasing function of rate of interest✔
(B) Decreasing function of rate of interest
(C) Decreasing function of level of income
(D) None of these
26. The Cambridge version of the quantity theory of money was developed by:
(A) Fisher
(B) Alfred Marshall
(C) Pigou
(D) Keynes✔27. In classical system which of the following keeps the economy at full employment:
(A) Level of saving
(B) Increase in money supply
(C) Adjustment in investment
(D) Adjustment in money wages✔28. In Fisher’s equation of exchange MV=PT, the variation of which produces a
proportional change in price:
(A) M ✔
(B) V
(C) P
(D) T29. According to classical economists, variations in savings are due to:
(A) Level of investment
(B) Rate of interest✔
(C) Level of employment
(D) None of the above30. In classical theory which of the following is found in the economy:
(A) Unemployment
(B) Involuntary unemployment
(C) Less than full employment
(D) Full employment✔31. In MV=PT, if M doubles and V and T remain constant, then P will:
(A) Double✔
(B) 1/2
(C) 1
(D) 432. Pigou’s version of Cambridge equation is:
(A) M = KP/Y
(B) P= KR/M✔
(C) MV = PT
(D) MV = MI VI33. The quantity theory of money was restated by:
(A) Alfred Marshall
(B) Milton Friedman✔
(C) Irving Fisher
(D) J.M. .Keynes34. The law which states that supply creates its own demand and overproduction is impossible is known as:
(A) The law of supply
(B) Say’s law of market✔
(C) Law of demand
(D) Law of macro economics35. Wages and prices do not adjust quickly to restore general equilibrium is a property of
(A) Classical economics
(B) Keynesian economics✔
(C) Monetary economics
(D) Supply side economics36. Classicals treated money as a:
(A) Medium of exchange ✔
(B) Store of value
(C) Both
(D) None37. When there is an increase in the autonomous money supply, ceteris paribus, LM shifts:
(A) Leftward
(B) Rightward✔
(C) No shift
(D) None38. An Economic model is a statement of relationship among economic ——
(A) Variables ✔
(B) Phenomena
(C) Development
(D) None of these39. LM curve shows the equilibrium condition in ———- market
(A) Goods market
(B) Product market
(C) Money market✔
(D) None of these40. Supply creates its own demand is the Basis of:
(A) Classical economics ✔
(B) Keynesian economics
(C) Monetarism
(D) None of these41. The simplest ISLM model consists of:
(A) Two markets✔
(B) Three markets
(C) Four markets
(D) Five markets42. The equilibrium in the product market is represented by which curve?
(A) IS ✔
(B) LM
(C) Demand
(D) Supply curve43. The IS curve has a ——slope
(A) Positive
(B) Negative✔
(C) Zero
(D) None of these44. The LM curve has a —– slope
(A) Positive✔
(B) Negative
(C) Zero
(D) None of these45. ISLM model was developed by:
(A) Hicks ✔
(B) Keynes
(C) Friedman
(D) None of these46. The perfectly elastic segment of the LM curve is:
(A) Keynesian range✔
(B) Classical range
(C) Intermediate range
(D) None of these47. Which policy is effective in the Classical range?
(A) Monetary policy✔
(B) Fiscal policy
(C) Incomes policy
(D) None of these48. Which policy is effective in the Keynesian range?
(A) Monetary policy
(B) Fiscal policy✔
(C) Incomes policy
(D) None of these49. Which policy is effective in the intermediate range?
(A) Monetary policy
(B) Fiscal policy
(C) Both policies✔
(D) None of these50. IS-LM model was developed by:
(A) Keynes
(B) Walras
(C) J.R.Hicks✔
(D) Don-Patinkin51. Frictional unemployment exists:
(A) When there is a decrease in real GDP
(B) Because it takes time to find a job when one is first entering the labour force✔
(C) As a result of technological change
(D) When an individual retires
52. The natural rate of unemployment equals the sum of those who are:
(A) Frictionally and structurally unemployed✔
(B) Frictionally and cyclically unemployed
(C) Structurally and cyclically unemployed
(D) Frictionally structurally and cyclically unemployed
53. The marginal productivity of labour is:
(A) The incremental output due to an increase in capital, ceteris paribus
(B) The incremental output due to an increase in labour, ceteris paribus.✔
(C) The incremental output due to a change in technology, ceteris paribus
(D) The incremental output due to a change in technology and a change in the
amount of capital.
54. The marginal productivity of labour:
(A) Increases when the price of the good sold increases, ceteris paribus
(B) Decreases when there is an adverse supply shock, ceteris paribus✔
(C) Increase when more workers are hired, ceteris paribus
(D) Decreases when there is an increase in the quantity of capital, ceteris paribus
55. When saving is greater than investment in a two-sector model,
(A) Output should increas
(b) Output should decrease✔
C) Output should not change
(d) None of these56. When output exceeds spending:
(A) There is unsold output, and level of output will fall✔
(B) There is unsold output, and level of output will rise
(C) There is unsold output, and level of spending will rise
(D) There is no unsold output since the level of spending will rise
57. When investment is negatively related to the rate of interest, equilibrium output in the
goods market:
(A) Is unrelated to the rate of interest
(B) Is inversely related to the rate of interest✔
(C) Is positively related to the rate of interest
(D) Falls as the rate of interest decreases
58. Simultaneous equilibrium in the money (LM) and goods (IS) market exists:
(A) At an unlimited number of output levels and rates of interest
(B) At only one output level and rate of interest✔
(C) At an unlimited number of output levels and only one rate of interest
(D) At only one output level and an unlimited number of rates of interest
59. In which of the following situations will an increase in the money supply have no effect
upon output?
(A) LM is steeply sloped and IS is steeply sloped
(B) LM is vertical and IS is steeply sloped
(C) LM is steeply sloped and IS is vertical✔
(D) LM is relatively flat as is IS
60. Crowding out occurs when:
(A) A decrease in the money supply raises the rate of interest which crowds out
interest – sensitive private sector spending
(B) An increase in taxes for the private sector reduces private sector disposable
income and spending
(C) A reduction in income taxes results in a higher interest rate, which crowds
out interest–sensitive private sector spending✔
(D) A reduction in government spending induces less consumption spending
61. Policy Neutrality is the main proposition of:
(A) Supply Side Economics.
(B) Keynesian Economics
(C) Monetarism
(D) Rational expectations hypothesis✔62. Who invented the General Equilibrium analysis?
(A) L. Walras. ✔
(B) W. Leontief
(C) J.M.Keynes.
(D) None of these.63. Employment equilibrium in the Classical theory is achieved through:
(A) Wage-Price flexibility. ✔
(B) Changes in aggregate demand
(C) Changes in aggregate supply
(D) None of these.64. Market does not clear is a proposition of:
(A) Neoclassical theory.
(B) Keynesian Economics✔
(C) Monetarism
(D) Rational expectations65. The interest rate paid on bonds is known as:
(A) Call rate
(B) Coupon rate✔
(C) Repo rate
(D) Bank rate66. The monetary policy is completely ineffective when the LM curve is:
(A) Vertical .
(B) Horizontal.✔
(C) Upward sloping
(D) Downward sloping67. Monetarism is associated with:
(A) Keynesian school
(B) Chicago school✔
(C) Cambridge school.
(D) Neo-Classical school.68. Changes in the subjective or objective factors
(A) Never affect consumption function
(B) Always cause downward shift in consumption function
(C) Always cause upward shift in consumption function
(D) They cause upward or downward shifts in consumption function✔
69. Saving is a function of
(A) Export
(B) Import
(C) Investment
(D) Income✔70. Entrepreneurs will have no tendency to expand or contract output and employment
when
(A) AD>AS
(B) AD<AS
(C) AD=AS✔
D) None of the above71. The slope of the consumption function is called
(A) MPC✔
(B) MPS
(C) APC
(D) APS72. The concept of effective demand is associated with the name of
(A) Marshall
(B) Keynes✔
(C) Krugman
(D) Say73. In a closed economy, the value of multiplier , when MPC is 0.90
(A) 25
(B) 90
(C) 10✔
(D) 974. Income is a ——- variable
(A) Flow✔
(B) Discontinuous
(C) Stock
(D) None of the above75. Ratio of consumption expenditure to any particular level of income
(A) MPS
(B) APS
(C) APC✔
(D) MPC76. Psychological law of consumption states that the value of MPC is lies between zero and
(A) 1 ✔
(B) 2
(C) 3
(D) 477. Net investment is also known as
(A) Depreciation
(B) Induced investment
(C) Autonomous investment
(D) Capital formation✔78. In the saving function S = -a + (1-b)Y, the term ‘b’ denotes
(A) Saving
(B) MPC✔
(C) MPS
(D) APS79. Who propounded Psychological law of consumption
(A) Adam Smith
(B) Ricardo
(C) Keynes ✔
(D) Pigou80. When MPS = 0.2, MPC will be
(A) 0.8 ✔
(B) 0.2
(C) 1.2
(D) 2081. In the linear consumption function C = a + bY, coefficient ‘a’ denotes
(A) MPC
(B) APC
(C) Autonomous consumption✔
(D) Induced consumption82. According to Keynes, rising aggregate income is always associated with
(A) Higher saving rate ✔
(B) Higher import
(C) Lower export
(D) Low production83. When MPC = 0.5, the value of multiplier is
(A) 5
(B) 0.5
(C) 2 ✔
(D) 484. Who postulated the law Supply creates its own demand
(A) Keynes
(B) J B say✔
(C) Marshall
(D) Pigou85. Autonomous investment is
A. Income inelastic✔
B. Instable
C. Interest elastic
D. Income elastic
86. MEC for a capital good was found out to be 10% and the market rate of interest is 9%,
then the investment is
A. Not profitable
B. Profitable✔
C. Breakeven
D. Cannot say
87. In the Keynesian two sector economy, AD>AS, then
A. S=I
B. S>I
C. S<I✔
D. S=0
88. Value of MPC is
A. >1
B. <1
C. 0
D. 0≤ MPC ≥1✔
89. Schedule that expresses relationship between rate of interest and corresponding amount
of investment
A. MEI✔
B. MEC
C. Effective Demand
D. Aggregate Demand
90. Net investment is
A. Value of gross minus subsidies
B. Investment after providing for depreciation✔
C. Value of gross output before providing for subsidies
D. None of the above
91. MEC is directly related to
A. Prospective yield✔
B. Supply price
C. Rate of interest
D. All of the above
92. According to Keynes the most important determinant of consumption
A. Rate of interest
B. Saving
C. Income✔
D. Investment
93. In the Keynesian two sector economy, AD<AS, then
A. S=I
B. S>I✔
C. S<I
D. S=0
94. In the equation C = 60 + 0.6 Y, MPC is
A. 60
B. 0.6✔
C. 0
D. 1
95. Keynes assumed the presence of ——— economy for the fundamental law of
consumption
A. Capitalistic✔
B. Socialistic
C. Planned
D. None of the above
96. According to Keynes the most important determinant of investment
A. MEC✔
B. Effective demand
C. Aggregate demand
D. Rate of interest
97. When disposable income rises from Rs 500 to Rs 600 and consumption expenditure
changes from Rs 470 to Rs 560, MPC will be equal to
A. 900
B. 100
C. 0.9✔
D. 1
98. In a two sector economy, aggregate demand is equal to
A. C+I✔
B. C+S
C. S+I
D. All of the above
99. In Keynesian terminology, investment means:
A. Financial investment
B. Real investment✔
C. Induced investment
D. None of the above
100. Rate of change in savings to change in income:
A. APS
B. APC
C. MPS✔
D. MPC
-
1. The financial year in India is
a. April 1 to March 31
b. January 1 to December 31
c. March 1 to April 30
d. March 16 to March 15ANSWER: a. April 1 to March 31National income is calculated for a specific period of time. In India, it is calculated for April 1 to March 31.2. Consider the following statements and identify the right ones.i. National income is the monetary value of all final goods and services produced.
ii. Depreciation is deducted from gross value to get the net valuea. I only
b. ii only
c. both
d. noneANSWER: c. bothNational Income is the monetary value of all final goods and services that are produced by the residents of the country.3. Consider the following statements and identify the right ones.i. While calculating GDP, income generated by foreigners in a country is taken into consideration
ii. While calculating GDP, income generated by nationals of a country outside the country is taken into accounta. I only
b. ii only
c. both
d. noneANSWER: a. I onlyWhile calculating GDP, income generated by nationals of a country outside the country is not taken into account.4. The net value of GDP after deducting depreciation from GDP isa. Net national product
b. Net domestic product
c. Gross national product
d. Disposable incomeANSWER: b. Net domestic productAfter deducting the depreciation charges of plant and machinery from GDP, we get net value of GDP which is called NDP.5. Consider the following statements and identify the right ones.i. While calculating GNP, income generated by foreigners in a country is taken into consideration
ii. While calculating GNP, income generated by nationals of a country outside the country is taken into accounta. I only
b. ii only
c. both
d. noneANSWER: b. ii onlyWhile calculating GNP, income generated by foreigners in a country is not taken into consideration.6. When depreciation is deducted from GNP, the net value isa. Net national product
b. Net domestic product
c. Gross national product
d. Disposable incomeANSWER: a. Net national productNNP is the net value of GNP after the depreciation of plant and machinery is deducted.7. The value of NNP at consumer point isa. NNP at factor cost
b. NNP at market price
c. GNP at market price
d. GNP at factor costANSWER: b. NNP at market priceNNP at market price is calculated by deducting indirect taxes and subsidies from NNP at factor cost.8. The value of NNP at production point is calleda. NNP at factor cost
b. NNP at market price
c. GNP at market price
d. GNP at factor costANSWER: b. NNP at market priceNNP at factor cost is the value of the NNP when the value of goods and services are taken at the production point.9. The value of national income adjusted for inflation is calleda. Per capita income
b. Disposable income
c. Inflation rate
d. Real national incomeANSWER: d. Real national incomeIt is adjusted for inflation that is calculated from a reference point which is a base year.10. The average income of the country isa. Per capita income
b. Disposable income
c. Inflation rate
d. Real national incomeANSWER: a. Per capita incomePer capita income is calculated by dividing the total national income by the total population of the year.11. The author of the book An Essay on Principles of Population isa. Malthus
b. James Princep
c. Keynes
d. Frank NotensteinANSWER: a. MalthusThe theory of population is given by Malthus in this book. Frank Notenstein gave the theory of demographic transition.12. Consider the following statements and identify the right ones.i. According to the Malthusian theory, supply of food grains increase in geometric progression
ii. The population grows in arithmetic progression.a. I only
b. ii only
c. both
d. noneANSWER: d. noneAccording to the Malthusian theory, supply of food grains increase in arithmetic progression. The population grows in geometric progression.13. Consider the following statements and identify the right ones.i. Malthus supported population control to ensure balance between population and availability of food grains
ii. He advocated “unethical” means to control populationa. I only
b. ii only
c. both
d. noneANSWER: a. I onlyHe advocated ethical means to control population like self control, late marriage etc. he was against methods like abortion.14. The theory that says the level of population at which per capita income is maximum isa. Theory of population by Malthus
b. Theory of optimum population
c. Theory of demographic transition
d. None of the belowANSWER: b. Theory of optimum populationThe theory that says the level of population at which per capita income is maximum is the Theory of optimum population.15. Consider the following statements and identify the right ones.i. According to the theory of demographic transition, in the first stage, birth rate is low but death rate is high
ii. The difference between them is higha. I only
b. ii only
c. both
d. noneANSWER: d. noneAccording to the theory of demographic transition, in the first stage, birth rate and death rate both are high and the difference between them is quite low.16. Consider the following statements and identify the right ones.i. In the second stage of demographic transition, death rates declines.
ii. The difference between birth rate and death rate decreasesa. I only
b. ii only
c. both
d. noneANSWER: a. I onlyIn the second stage, there is negligible decline in the birth rate. Hence the difference between birth and death rate increases.17. In which stage of demographic transition is the population growth rate highest?a. First
b. Second
c. Third
d. FourthANSWER: b. SecondIn the second stage, there is negligible decline in the birth rate. Hence the difference between birth and death rate increases.18. Consider the following statements and identify the right ones.i. The third stage is the period of declining growth rates.
ii. The second stage of demographic transition witnesses population explosiona. I only
b. ii only
c. both
d. noneANSWER: c. bothIn the third stage of demographic transition, the population growth rate declines at a faster rate.19. Match the following.i. 1891-1921 ———— a. period of stagnant population
ii. 1921-1951 ———– b. period of steady growth
iii. 1951-1981 ———- c. period of high growth
iv. 1981-2011 ———– d. period of declining growth ratea. Ia, iib, iiic, ivd
b. Ic, iib, iiia, ivd
c. Ib, iic, iiia, ivd
d. Ia, iib, iiid, ivcANSWER: a. Ia iib iiic ivdThis is the population trend in India from 1891 onwards. It has slowly moved towards the declining growth rate period.20. Arrange the birthrates of the states in the highest to lowest order.a. UP, Bihar, Rajasthan, Karnataka
b. Bihar, UP, Rajasthan, Karnataka
c. UP, Rajasthan, Bihar, Karnataka
d. UP, Bihar, Karnataka, RajasthanANSWER: a. UP, Bihar, Rajasthan, KarnatakaThe birthrate of UP is the highest with21. Arrange the death rates of the states in the highest to lowest order.a. Odisha, UP, MP, Assam
b. Odisha, MP, Assam, UP
c. MP, Odisha, UP, Assam
d. UP,MP, Odisha, AssamANSWER: b. Odisha, MP, Assam, UPOdisha has the highest death rate of 8.5, MP with 8.2, Assam with 8 and UP with 7.922. The state with lowest death rate isa. West Bengal
b. Haryana
c. Bihar
d. KeralaANSWER: a. West BengalKerala has the death rate of 7. West Bengal has the death rate of 6.2, Haryana with 6.5 and Bihar with 6.723. The state with lowest birth rate isa. West Bengal
b. Kerala
c. Karnataka
d. AssamANSWER: b. KeralaKerala has the lowest birth rate of 15.2, West Bengal with 6.2, Karnataka with 7.1 and Assam with 8.24. Which five year plan stated the objective of stabilizing the population growth to be the central feature of planning?a. First
b. Second
c. Third
d. FourthANSWER: c. ThirdFamily planning was adopted as a measure to stabilize the population growth.25. The Department of Family Planning was set up ina. 1965
b. 1966
c. 1977
d. 1975ANSWER: b. 1966From third five year plan onwards, importance was given to family planning measures to stabilize the population growth.26. Consider the following statements and identify the right ones.i. Family planning was made target-oriented in the 1960s
ii. The period saw cafeteria approacha. I only
b. ii only
c. both
d. noneANSWER: c. bothFrom third five year plan onwards, importance was given to family planning measures to stabilize the population growth.27. Consider the following statements and identify the right ones.i. The 4th five year plan aimed at reducing birth rate from 39 per thousand to 29 in next 10 years.
ii. There was emphasis on providing supplies and services.a. I only
b. ii only
c. both
d. noneANSWER: c. bothThe 4th five year plan aimed at reducing birth rate from 39 per thousand to 29 in next 10 years.28. Consider the following statements and identify the right ones.i. The National Population Policy was announced in 1976.
ii. Prior to this policy, family planning was voluntarya. I only
b. ii only
c. both
d. noneANSWER: c. bothPrior to the 1976 Population policy, government was just acting as a facilitator and family planning was a voluntary act.29. Consider the following statements and identify the right ones.i. the 2000 population policy has a long term objective of achieving a stable population by 2015
ii. The National Population Policy aimed at achieving universal immunization of children against all vaccine preventable diseases.a. I only
b. ii only
c. both
d. noneANSWER: b. ii onlyThe 2000 population policy has a long term objective of achieving a stable population by 2045. The policy has immediate, medium term and long term goals.30. Which of the following is/are immediate objective of the population policy of 2000?a. meet the needs of contraception
b. meet the needs of health infrastructure
c. meet the needs of health personnel
d. all the aboveANSWER: d. all the aboveAlong with the above objectives, it also aims at providing integrated services for basic reproductive and child health care.31. Which of the following is a method to measure relative poverty?a. Gini coefficient
b. Lorenz curve
c. Both a and b
d. Poverty lineANSWER: c. Both a and bRelative poverty refers to income inequality where high income group as more share than low income group.32. Which of the following is associated with poverty estimation ?a. Tendulkar committee
b. Lakdawala committee
c. Saxena committee
d. All the aboveANSWER: d. All the aboveAll these committees have recommended various criteria and methods of poverty estimation.33. Consider the following statements and identify the right ones.i. Poverty line is defined as the mid-point of monthly per capita expenditure class having a daily calorie intake of 2400 calorie per person in urban areas.ii. In rural areas, it is 2100 calories a daya. I only
b. ii only
c. both
d. noneANSWER: d. nonePoverty line is defined as the mid-point of monthly per capita expenditure class having a daily calorie intake of 2400 calorie per person in rural areas and for urban areas, it is 2100 calories.34. Consider the following statements and identify the right ones.i. The Tendulkar panel committee on poverty submitted its report in 2001ii. As per the report, poverty estimates will be based on private household consumer expenditure of householdsa. I only
b. ii only
c. both
d. noneANSWER: b. ii onlyThe Tendulkar panel committee on poverty submitted its report in 2009. The data is collected by the NSSO.35. Consider the following statements and identify the right ones.i. As per the Tendulkar report, NSSO has decided to shift mixed reference period.ii. Prior to this, 30 day recall period was used.a. I only
b. ii only
c. both
d. noneANSWER: c. bothAs per the report, it has been decided to use mixed reference period for all consumption surveys in future.36. The Saxena Committee was constituted bya. Ministry of Home Affairs
b. Ministry of Rural Development
c. Ministry of Economic Affairs
d. Ministry of Social WelfareANSWER: b. Ministry of Rural DevelopmentThis committee was set up by the Rural Development Ministry to suggest methods to suggest methods to identify BPL families in rural areas.37. Which of the following is not included in the automatic exclusion as per the Saxena Committee?a. Families having two wheelers
b. Families having minimum one mechanized farm equipment
c. Income tax payers
d. Families having a person who draws above 10000 rupees per month working in private organizationANSWER: a. Families having two wheelersA family having a person who draws above 10000 rupees per month working in private organization or government or NGO on a regular basis is excluded.38. Which of the following is included in the automatic inclusion category?a. Designated primitive tribal groups
b. Single women-headed households
c. Homeless households
d. All the aboveANSWER: d. All the aboveApart from these, maha Dalit groups, destitute households, households headed by minor etc are also included.39. Which of the following is the nodal Ministry to identify BPL families in urban areas?a. Ministry of Economic Affairs
b. Ministry of Social Welfare
c. Ministry of Housing and Poverty Alleviation
d. Ministry of Urban DevelopmentANSWER: c. Ministry of Housing and Poverty AlleviationMinistry of Housing and Poverty Alleviation is the nodal Ministry to identify BPL families in urban areas.40. The current weekly status of a person is calculated with a reference period ofa. 5 days
b. 6 days
c. 7 days
d. 4 weeksANSWER: c. 7 daysThe current weekly status of a person is calculated with a reference period of 7 days.41. Consider the following statements and identify the right ones.i. JRY was implemented in 1989
ii. JRY worked on the principle of decentralizationa. I only
b. ii only
c. both
d. noneANSWER: c. bothThe responsibility of implementing JRY rests with the village panchayats. Both NREP and RLEGP were merged to form JRY.42. Consider the following statements and identify the right ones.i. The short term objective of JRY is to provide 1 year wage employment to BPL families.
ii. The long term objective is to create community assets in rural areas.a. I only
b. ii only
c. both
d. noneANSWER: b. ii onlyThe short term objective of JRY is to provide 50 to 100 days of wage employment to BPL families.43. Consider the following statements and identify the right ones.i. SGSY was introduced in 1999 as a self employment programme.
ii. The cost of sharing between centre and the states is 50:50a. I only
b. ii only
c. both
d. noneANSWER: a. I onlySGSY aims at promoting micro enterprises and help the rural poor through Self Help Groups. The cost of sharing between centre and the states is 75:2544. Consider the following statements and identify the right ones.i. The MGNREGA provides at least 100 days of guaranteed wage employment in a year.
ii. The scheme mandates for 1/3rd participation for womena. I only
b. ii only
c. both
d. noneANSWER: c. bothMGNREGA came into effect in 2006 in 200 districts. It aims at enhancing the livelihood security of households in rural areas.45. Consider the following statements about MGNREGA and identify the right ones.i. The disbursement of wages has to be done on monthly basis.
ii. Wages will be paid through their bank or post office accounts.a. I only
b. ii only
c. both
d. noneANSWER: b. ii onlyThe disbursement of wages has to be done on a weekly basis. Generally, this should not be beyond a fortnight.46. Consider the following statements and identify the right ones.i. The SGSY has been restructured as National Rural Livelihood Mission
ii. It aims at providing at least one member from each identified rural poor household to be brought under SHG.a. I only
b. ii only
c. both
d. noneANSWER: c. bothThis programme aims at reducing poverty thereby enabling poor households to access gainful self-employment and also skilled wage employment opportunities.47. Consider the following statements about Aam Admi Bhima Yojana and identify the right ones.i. The central government is the nodal agency
ii. The premium of 200 rupees will be borne by the centre and states equallya. I only
b. ii only
c. both
d. noneANSWER: b. ii onlyThe state government is the nodal agency for this scheme.48. Consider the following statements about Aam Admi Bhima Yojana and identify the right ones.i. 30000 rupees will be payable in case of natural death
ii. 25000 rupees will be payable in case of total permanent disabilitya. I only
b. ii only
c. both
d. noneANSWER: a. I only
Under this scheme, rupees 75000 will be payable if it is a case of total permanent disability and rupees 37500 in case of partial disability.49. Consider the following statements and identify the right ones.i. The Janashree Bhima Yojana provides life insurance protection to rural BPL families only
ii. People between 18 and 59 years and who are members of the identified occupational group are eligible.a. I only
b. ii only
c. both
d. noneANSWER: b. ii onlyThe Janashree Bhima Yojana provides life insurance protection to rural families as well as urban families living below and marginally above povert line.50. Consider the following statements and identify the right ones.i. The National Social Security Fund is created for the organized sectors
ii. The beneficiaries are weavers, rickshaw pullers etc.a. I only
b. ii only
c. both
d. noneANSWER: b. ii onlyThe National Social Security Fund is created for the unorganized sectors.51. Consider the following statements and identify the right ones.i. The National Rural Health Mission was launched in 2005
ii. Under this scheme, it was decided to set up mobile medical units for each districts by 2009.a. I only
b. ii only
c. both
d. noneANSWER: c. bothUnder this scheme, over 5 lakh ASHAs- Accredited Social Health Activists were to be available by 2008.52. Which of the following is not a component of Bharat Nirman?a. Irrigation
b. Sanitation
c. Drinking water
d. ElectrificationANSWER: b. SanitationBharat Nirman has 6 components. The other 3 are rural telephones, roads and housing.53. Consider the following statements and identify the right ones.i. Under Bharat Nirman, 60 lakh houses are to be constructed.
ii. It aims at creating 10 million ha of additional irrigation capacity.a. I only
b. ii only
c. both
d. noneANSWER: c. bothBharat Nirman has 6 components. They are rural telephones, roads ,housing, electrification, drinking water and irrigation.54. Consider the following statements and identify the right ones.i. SSA aims at providing free education for all children between 6 and 14.
ii. It is a fundamental right under the RTE Act of 2009a. I only
b. ii only
c. both
d. noneANSWER: c. bothThe Sarva Shiksha Abhiyan aims at providing free education for all children between 6 and 14.55.Which of the following is a reason for inflation?a. Deficit financing
b. Growth in per capita income
c. Structural deficiencies
d. All the aboveANSWER: d. All the aboveInflation refers to rise in the general price level in the economy. Various demand and supply side factors cause inflation.56.Which of the following is an effect of inflation?a. Erosion in purchasing power
b. Affects relative price of goods
c. Increase in inequalities of income
d. All the aboveANSWER: d. All the aboveAs a result of inflation, some sections like producers or big landlords gain due to the ownership of assets, income inequality increases.57.Consider the following statements and identify the right ones.i. Government can reduce indirect taxes to control inflation
ii. There is trade-off between growth and inflation in Indiaa. i only
b. ii only
c. both
d. noneANSWER: c. bothGrowth cannot be sustained in inflationary situation for a long time and inflation is bound to be high with high growth rates.58.Which of the following is not a reason for inflation?a. Increase in administered prices
b. Increase in cost of capital
c. More dependence on indirect taxes for revenue
d. None of theseANSWER: d. None of theseInflation refers to rise in the general price level in the economy. Various demand and supply side factors cause inflation.59.Which of the following can be undertaken to control inflation?a. Control on public expenditure
b. Control on hoarding and black marketing
c. Effective control on credit
d. All the aboveANSWER: d. All the aboveInflation can be controlled using monetary, fiscal and other measures.60.Consider the following statements and identify the right ones.i. For measuring overall inflation in the economy, CPI is used.
ii. WPI was first published in 1942 for 23 commoditiesa. i only
b. ii only
c. both
d. noneANSWER: b. ii onlyFor measuring overall inflation in the economy, WPI is used. WPI was first published in 1942 for 23 commodities.61.The base year used for WPI isa. 1993-94
b. 2001-02
c. 2004-05
d. 2014-15ANSWER: c. 2004-05The base year used for WPI is 2004-05, based on the recommendations of Abhijit Sen Committee.62.Consider the following statements and identify the right ones.i. There are 676 items divided into 3 parts in the WPI
ii. All the 3 parts are given equal weightagea. i only
b. ii only
c. both
d. noneANSWER: a. I onlyPrimary articles constitute 20.12 weightage, fuel has weightage of 14.91 while manufactured items have 64.97 weightage.63.Which group constitutes maximum weightage in WPI?a. Primary articles
b. Fuel
c. Manufactured items
d. Equal weightageANSWER: c. Manufactured itemsPrimary articles constitute 20.12 weightage, fuel has weightage of 14.91 while manufactured items have 64.97 weightage.64.The base year to calculate CPI-IW isa. 2001
b. 1994
c. 1991
d. 2004ANSWER: a. 2001The base year to calculate CPI-IW is 2001. 260 items are included in the index.65.Consider the following statements and identify the right ones.i. Central government does not have exclusive power to impose tax which is not mentioned in state or concurrent list.ii. The constitution also provides for transferring certain tax revenues from union list to states.a. i only
b. ii only
c. both
d. noneANSWER: b. ii onlyCentral government has exclusive power to impose tax which is not mentioned in state or concurrent list.66.The tax levied by the union government on income of individuals is known asa. Personal income tax
b. Interest tax
c. Wealth tax
d.sales taxANSWER: a. Personal income taxIt is based on the principle of ability to pay. The tax levied by the union government on income of individuals is known as income tax.67.The tax on net income of companies isa. Personal income tax
b. Interest tax
c. Wealth tax
d. Corporation taxANSWER: d. Corporation taxThe tax on net income of companies is corporate tax. Tax rates are uniform for all categories of companies.68.Consider the following statements and identify the right ones.i. Wealth tax is collected from productive as well as unproductive assets
ii. Estate duty was a type of inheritance tax of large estatesa. i only
b. ii only
c. both
d. noneANSWER: b. ii onlyWealth tax is collected from unproductive assets only. Estate duty was abolished in 1985.69.Which of the following taxes is/are withdrawn or abolished?a. Interest tax
b. Estate duty
c. Gift tax
d. All the aboveANSWER: d. All the aboveInterest tax was withdrawn in 2000-01, estate duty abolished in 1985 and gift tax in 1998-99.70.The most important source of revenue to the states isa. Sales tax
b. Service tax
c. Excise duty
d. None of the aboveANSWER: a. Sales taxSales tax is the tax on sale of goods and is influenced by the value added tax system.71. The tax levied on the interstate trade of goods isa. Sales tax
b. Excise tax
c. Service tax
d. Central sales taxANSWER: d. Central sales taxThe tax levied on the interstate trade of goods is the central sales tax.72. Consider the following statements and identify the right ones.i. The 14th finance commission is headed by C. Rangarajan
ii. The recommendations of the commission will come into effect from April, 1, 2015a. i only
b. ii only
c. both
d. noneANSWER: b. ii onlyThe 14th finance commission was appointed in 2013. It is headed by Y V Reddy.73.The difference between revenue expenditure and revenue receipts isa. Revenue deficit
b. Fiscal deficit
c. Budget deficit
d. Primary deficitANSWER: a. Revenue deficitRevenue deficit= revenue expenditure –revenue receipts74. The difference between revenue deficit and grants for creation of capital assets is calleda. Fiscal deficit
b. Budget deficit
c. Effective revenue deficit
d. Primary deficitANSWER: c. Effective revenue deficitEffective revenue deficit= revenue deficit-grants for creation of capital assets.75. The difference between total expenditure and total receipts isa. Fiscal deficit
b. Budget deficit
c. Primary deficit
d. Revenue deficitANSWER: b. Budget deficitBudget deficit= total expenditure-total receipts76.The difference between total expenditure and total receipts except loans and other liabilities is calleda. Fiscal deficit
b. Budget deficit
c. Primary deficit
d. Revenue deficitANSWER: a. Fiscal deficitFiscal deficit= total expenditure-total receipts except loans and other liabilities.77.The difference between fiscal deficit and interest payment during the year is calleda. Fiscal deficit
b. Budget deficit
c. Primary deficit
d. Revenue deficitANSWER: c. Primary deficitPrimary deficit= fiscal deficit-interest payments.78.Consider the following statements and identify the right ones.i. IMF came into existence as an outcome on Bretton Woods agreement
ii. France was the 1st country to borrow from IMFa. I only
b. ii only
c. both
d. noneANSWER: c. bothIMF oversees the international monetary system.79. Consider the following statements and identify the right ones.i. The executive board is the highest decision making body of IMF
ii. The Board of Governors meets twice a year.a. I only
b. ii only
c. both
d. noneANSWER: d. noneThe Board of Governors is the highest decision making body of IMF. The Board of Governors meets once a year.80.Consider the following statements and identify the right ones.i. Executive board conducts the business of the IMF
ii. It meets once in a yeara. i only
b. ii only
c. both
d. noneANSWER: a. I onlyExecutive board conducts the business of the IMF. It functions in continuous session and meets several times in a week.81.Consider the following statements and identify the right ones.i. The day to day work of IMF is conducted by the board of governors
ii. Selected nations who are members of IMF are given a quotaa. i only
b. ii only
c. both
d. noneANSWER: b. ii onlyThe day to day work of IMF is conducted by the executive board. All the nations are assigned a quota.82.Consider the following statements and identify the right ones.
i. The quota does not decide voting power in IMF’s decisions
ii. Quota subscription constitutes most of the financial resources of IMFa. i only
b. ii only
c. both
d. noneANSWER: b. ii onlyThe quota decides voting power in IMF’s decisions. Quota subscription constitutes most of the financial resources of IMF.83.consider the following statements and identify the right ones.i. SDRs cannot voluntarily be exchanged among members for currencies
ii. US is the largest member of the IMFa. I only
b. ii only
c. both
d. noneANSWER: b. ii onlySDRs can voluntarily be exchanged among members for currencies.84.Which of the following is an institution of World Bank?a. IBRD
b. IDA
c. IFC
d. All the aboveANSWER: d. All the aboveWorld Bank has five institutions- IBRD, IDA, International Finance Corporation, MIGA and ISCID.85.Consider the following statements and identify the right ones.i. Low income countries are eligible to receive low interest loans from IDA
ii. India is eligible for a blend of financial assistance from IDA and IBRDa. I only
b. ii only
c. both
d. noneANSWER: c. bothIBRD aims at reducing poverty in middle income and credit-worthy poor countries.86. Which of the following is not an objective of World Bank?
a. To provide guarantee on private loans
b. To develop production facilities in underdeveloped countries
c. To rehabilitate war ruined economies
d. None of the aboveANSWER: d. None of the aboveWorld Bank provides long term capital to member countries for economic reconstruction and development.87.Which of the following is known as soft loan window of the World Bank?a. IDA
b. IFC
c. IBRD
d. MIGAANSWER: a. IDAIDA was established in 1960. It aims at reducing poverty by providing interest free credits and grants for economic growth.88. The investment arm of the world bank is
a. IDA
b. IFC
c. IBRD
d. MIGA
ANSWER b89. The insurance arm of world bank isa. IDA
b. IFC
c. IBRD
d. MIGAANSWER: d. MIGAMIGA is known as the insurance arm of World Bank. It was established in 198890.Consider the following statements and identify the right ones.i. MIGA does not offers political risk insurance for projects to developing member countries
ii. MIGA also helps investors and lenders deal with investment risksa. i only
b. ii only
c. both
d. noneANSWER: b. ii onlyMIGA offers political risk insurance for projects to developing member countries.91.Consider the following statements and identify the right ones.i. IFC is governed by board of governors
ii. It mobilizes capital in international capital marketsa. i only
b. ii only
c. both
d. noneANSWER: c. bothInternational Finance Corporation is governed by board of governors who are represented by member countries.92.Consider the following statements and identify the right ones.i. ICSID is a multilateral treaty formulated by executive directors of IBRD
ii. All the countries have deposited their instruments of ratification, acceptance of the convention.a. I only
b. ii only
c. both
d. noneANSWER: a. I onlyNot all the countries have deposited their instruments of ratification, acceptance of the convention.93. Consider the following statements and identify the right ones.i. The head of WTO is known as director general
ii. The WTO summit is held once in very yeara. I only
b. ii only
c. both
d. noneANSWER: a. I onlyThe WTO summit is held once in two years. The summit is known as Ministerial Conference.94 Which of the following about strategy of unbalanced growth is right?
a. Deliberate imbalance in favor of some sectors
b. Simultaneous investment in all sectors
c. Both
d. None
ANSWER: a. Deliberate imbalance in favor of some sectorsThis strategy says that there will be positive impact on the sectors that are lagging behind and they will also try to catch up with it.
95.he concept of PQLI was developed by
a. Morris D Morris
b. UNO
c. UNDP
d. Oxford Poverty and Human Development Initiative
ANSWER: a. Morris D MorrisPhysical Quality of Life Index is one of the indicator to measure 4 development. It is calculated by using simple average.
96.The parameter/s of the PQLI is/are
a. Life Expectancy Index
b. Standard of living index
c. Infant mortality rate
d. A and C
ANSWER: d. A and CPQLI has 3 parameters- life expectancy index, infant mortality rate and basic literacy index.
97.The concept of HDI was popularized by
a. Morris D Morris
b. Adam Smith
c. Keynes
d. Mahbub Ul Haq
ANSWER: d. Mahbub Ul HaqThe concept developed in the 1990s. It has 3 important parameters- life expectancy, education achievement index and standard of living index.
98. The component/s of HDI is/are
a. Life expectancy index
b. Infant mortality rate
c. Population growth rate
d. All the aboveANSWER: a. Life expectancy index
The concept developed in the 1990s. It has 3 important parameters- life expectancy, education achievement index and standard of living index.
99.The Multidimensional Poverty Index(MPI) has been developed by
a. The UNDP
b. Oxford HDI
c. The UNO
d. Morris D Morris
ANSWER: b. Oxford HDIThe MPI concept is developed by the Oxford Human Development Initiative. It has three main dimensions to it.
100.Which of following is not a component of MPI?
a. Health
b. Education
c. Occupation
d. Standard of living
ANSWER: c. OccupationMPI has 3 important dimensions to it- health, education and standard of living. Based on these , there are ten parameters.
-
1.Which one is not the part of Migration to new capital adequacy framework based on the three pillar approach namely?
A.Minimum capital requirement B.Supervisory review
C.Market discipline
D.Book keeping
Ans D2.Which was the first Bank to be established in 1148?
A.SBI
B.CBI
C.Reserve Bank
D.Casa De SanGiorgio
Ans D3.Italian money lenders were known as Banechi or Banacheri because
A.They had a lot of money
B.They had a money bank
C.They kept a special type of table to transact their business
D.All of the above
Ans B4.Which of the following are the objectives and functions of IDBI?
A.To provide technical and administrative assistance for promotion or expansion of industry
B.To undertake market and investment research and surveys as also technical and economic studies in connection with development of industry.
C.To act as lender of last resort and to finance projects that are in conformity with national priorities
D.All of these
Ans D5.Banks can avail refinance against loans made to industrial units from
A.DICGC
B.NABARD
C.ECGC
D.IDBI
Ans D6.Assertion (A). Indent may be open or closed. Open indent does not specific the price and other details of the goods. The closed indent specific the brand, price, number, packing, shipping made, insurance etc.
Reason (R). This is required as a part of export procedures.
A.Both (A) and (R) are correct
B.Both (A) and (R) are not correct
C.(A) is true, but (R) is false
D.(R) is true, but (A) is false
Ans C7.Assertion (A). Use of paper money is replaced by plastic money. The future will see the electronic money clearance through satellite networking. Reason (R). RBI is encouraging e-banking.A.(A) is false, but (R) is true
B.(A) is true, but (R) is false
C.Both (A) and (R) are false
D.Both (A) and (R) are true
Ans D8.The importance of SFls may be attributed to
A.they constitute an important source of long-term finance to industry.
B.SFis have played an important role in the development of
(1) Small scale industry
(2) Projects in backward areas.
C.They have helped new and small entrepreneurs in setting up industry
D.All of the above
Ans D9.The ICICI was formed in
A.1952
B.1953
C.1954
D.1955
Ans D10.The first Public bank was
A.SBI
B.Rural Bank
C.PNB
D.Bank of Venice
Ans D11.At present most of the Indian Banks are falling under the
A.Chain Banking System
B.Unit Banking System
C.Branch Banking System
D.None of the above
Ans C12.Match the following
List-I List-II
(Name of the bank) (Year of establishment)
(a) SBI I.1990
(b) SIDBI ll.1955
(c) NABARD Ill.1981
(d) EXIM Bank IV.1982
A.(a) (b) (c) (d)
II I Ill IV
B.(a) (b) (c) (d)
I II IV III
C.(a) (b) (c) (d)
III II IV I
D.(a) (b) (c) (d)
II I IV III
Ans D13.Match the following
List I List II
(a) Khusro Committee l. To lock into customer services in banks in India
(b) Goporia Committee II. To review the agriculture
(c) Ghosh Committee III. To examine the adequacy of instutional credits and other related aspects
(d) Nayak Committee 4.To inquire into the various aspects of frauds and Malpractices in the banks
A.(a) (b) (c) (d)
II IV I III
B.(a) (b) (c) (d)
III I IV II
C.(a) (b) (c) (d)
II I IV III
D.(a) (b) (c) (d)
IV II I III
Ans B14.Assertion (A). Bank have control over a large part of the supply of money in circulation.
Reason (R). They cannot influence the nature and character of production in any country.
A.Both (A) and (R) are true and (R) is correct explanation of (A).
B.(A) is true but (R) is false and it is not correct explanation of (A).
C.(R) is true but (A) is false.
D.(A) is true but (B) is false
ANS B14.IDBI serves as the ——————- institution for term finance to industries.
A.APEX
B.CAT
C.IIT
D.None of these
Ans B15.With reference to the Micro Finance Institutions consider the following statement.
(i) At present Micro Finance Institutions (MFls) obtain finance from banks according to RBI guidelines.
(ii) MFIs provide small scale credit to low income households and small informal businesses.
Which of these statement is/ are correct?
A.Only (i)
B.Only (ii)
C.Both (i) and (ii)
D.Neither (i) nor (ii)
Ans A16.Capital adequacy norm helps the banks
(i) For strengthening capital base of banks
(ii) For sanctioning more loan
A.Both (i) and (ii) are correct
B.Both (i) and (ii) are incorrect
C.(i) is correct but (ii) is incorrect
D.(ii) is correct but (i) is incorrect
Ans C17.Banking regulation act
A.1934
B.1949
C.2002
D.1969
Ans B18: Main objective of CRR and SLR is to ensure
(i) Liquidity position of Bank
(ii) Financial position of Bank
(iii) Profit pOSition of Bank
A.Only (i) is correct
B.Only (ii) is correct
C.Only (iii) is correct
D.All are correct
Ans B19.Match the following
List-I List-II
(Name of the Merging Entity) (Name of the Merged Entity)
(a) 20th century Finance Company I. ICICI Bank
(b) Bareilly Corporation Bank II. Centurian Bank
(c) Sikkim Bank III. HDFC Bank
(d) Times Bank IV. Bank of Barod
(e) Bank of Madurai V. Union Bank of India
A.(a) (b) (c) (d) (e)
II IV V Ill I
B.(a) (b) (c) (d) (e)
III IV I Ill V
C.(a) (b) (c) (d) (e)
V IV III ll I
D.(a) (b) (c) (d) (e)
V II I Ill IV
Ans A20: The statement of Banking Definition is given by
A.T.G. Hart
B.White Head
C.Kinely
D.All of the above
Ans D -
1.Real income growth means:-
A.GNP increasing
B.GDP increasing
C.PCI increasing
D.All
Ans D2.HDI,PQLI & Basic needs Approach related with:-
A.Economic Development
B. National income
C.Life Quality
D.None
Ans A3.How do any country want to growth his country :-
A.Production
B.Activities channel
C.Allowtment
D.All
Ans D4.Less Expenses concept developed by
A.Marshall
B.Nelson
C.Yang
D.Mirdal
Ans A5.Related toEconmic Development & Per capta income (PCI),which shaped curve given by Kujnets :-
A.L shaped
B.U Shaped
C.Rectengular Hyperbola
D.None
Ans D6.Growth Formula :-
A.(Diff.b/w current &base year income)/base year income
B.(Diff.b/w current &base year income)/current year income
C.(Diff.b/w base ¤t year income)/base year income
D.(Diff.b/w base ¤t year income)/current year income
Ans A7.Agriculture & industrial Dualism related to economist:-
A.Mint
B.Mint & Mirdal
C.Arthor Levis
D. Levis & Hings
Ans A8.Classincal Economist :-
A.Smith
B. Marshall
C.solow
D.mead
Code:
a.A,B,C&D
b.A&B
c.A&D
d.A,B&D
Ans b9.Marginal income concept Given by
A.Mehta
B.Robinason
C.Both
D.none
Ans C10.GNP gap defined as
A.market price-fixed price
B.current price-base price
C.Both
D.None
Ans C10.when was SBI associate bank establish ?
A.1955
B.1921
C.1959
D.1949
Ans C -
1). In India GST came effective from July 1st, 2017. India has chosen _________ model of dual – GST.
a) USA
b) UK
c) Canadian
d) China
e) Japan
Answer: (C).
2). How many countries have dual – GST model?
a) 5
b) 8
c) 10
d) 14
e) None of these
Answer: (E). Till now Canada only has dual GST model but now India also started to use dual-GST model.
3). Which of the following country is the first one to implement GST?
a) USA
b) France
c) China
d) Switzerland
e) Germany
Answer: (B). France implemented GST in 1954.
4). Around how many countries adopted GST?
a) 90
b) 120
c) 140
d) 160
e) 200
Answer: (D).
5). Which of the following country has the maximum GST tax slab?
a) Greece
b) China
c) USA
d) Australia
e) India
Answer: (E). India has the maximum tax slab (28%) compared to other countries.
6). Which of the following country has the second highest tax slab?
a) Australia
b) Netherland
c) Argentina
d) Ireland
e) South Korea
Answer: (C). Argentina has the second highest tax slab 27%
7). Indian GST model has _________rate structure.
a) 3
b) 4
c) 5
d) 6
e) 2
Answer: (B). In India GST model has 4 rate structure. They are 5%, 12%, 18% and 28%
8). How many types of taxes will be in Indian GST?
a) 2
b) 3
c) 4
d) 5
e) 6
Answer: (B). Central GST (CGST), State GST (SGST) and IGST are three types of taxes.
9). What does “I” stands for in IGST?
a) International
b) Internal
c) Integrated
d) Intra
e) Innovation
Answer: (C).
10). The tax IGST charged by _________Government.
a) Central
b) State
c) Concerned department
d) Both a and b
e) All a, b and c
Answer: (A).
11). The maximum rate prescribed under IGST is _________.
a) 5%
b) 12%
c) 18%
d) 28%
e) No such limit
Answer: (D).
12). In India GST was first proposed in _________.
a) 1993
b) 1996
c) 1999
d) 2000
e) 2002
Answer: (D).
13). GST is a _________ based tax on consumption of goods and services.
a) Duration
b) Destination
c) Dividend
d) Development
e) Destiny
Answer: (B). main objective of GST is eliminate excessive taxation
14). GST comes under which amendment bill?
a) 118
b) 120
c) 122
d) 115
e) 129
Answer: (C).
15). Under which Act GST was introduced?
a) 100
b) 101
c) 102
d) 103
e) 104
Answer: (B)
16). GST council formation based on Article number _________.
a) 279A
b) 289A
c) 266A
d) 255A
e) 286A
Answer: (A)
17). The headquarters of GST council is _________.
a) Mumbai
b) New Delhi
c) Ahmadabad
d) Hyderabad
e) Lucknow
Answer: (B).
18). Who is the chairman of GST council?
a) President of India
b) Prime Minister
c) Finance Minister
d) RBI Governor
e) Finance secretary
Answer: (C). Arun Jaitley is the current chairman of GST council
19). _________ is GST Finance Ministers Panel Chairman.
a) Amit Mishra
b) Amit Malhodra
c) Amit Chandresekar
d) Amit Sastri
e) Amit kohli
Answer: (A). Amit Mishra (West Bengal Finance Minister) is the Finance Ministers Panel Chairman.
20). _________ is the first state to ratify GST bill.
a) Andhra Pradesh
b) Assam
c) Arunachal Pradesh
d) Bihar
e) Telangana
Answer: (B)
21). _________ is the first state that passed GST Bill.
a) Andhra Pradesh
b) Gujarat
c) Uttar Pradesh
d) Bihar
e) Telangana
Answer: (E).
22). GST threshold limit of North Eastern States is _________ lakh
a) 5
b) 10
c) 12
d) 15
e) 20
Answer: (B).
23). GST threshold limit of Normal States is _________ lakh
a) 12
b) 15
c) 20
d) 25
e) 30
Answer: (C).
24). The Central Board of Excise and Customs (CBEC) announced that every year _________ will be considered as GST Day.
a) April 1
b) March 1
c) June 1
d) July 1
e) January 1
Answer: (D)
25). Smart Phones will be taxed at _________ under GST.
a) 0%
b) 5%
c) 12%
d) 18%
e) 28%
Answer: (C).
26). Under GST, Insurance is taxed _________ percent.
a) 0%
b) 5%
c) 12%
d) 18%
e) 28%
Answer: (D).
27). Which of the following comes under sin tax?
a) Pan Masala
b) Tobacco
c) Alcohol
d) Both a and c
e) All a, b and c
Answer: (E).
28). A special purpose vehicle _________ has been launched to cater the needs of GST.
a) GSTC
b) GSTN
c) GSTM
d) GSTR
e) GSTS
Answer: (B). GSTN – Goods and Service Tax Network.
29). GSTN comes under which Act?
a) Banking Regulation Act 1949
b) RBI Act 1934
c) Indian Partnership Act, 1932
d) Limitation Act, 1963
e) Companies Act, 2013
Answer: (E).
30). Combined Stake of Central and State Government in GSTN is _________.
a) 20%
b) 25%
c) 49%
d) 51%
e) 100%
Answer: (C). The remaining 51% stake is divided among five financial institutions—LIC Housing Finance with 11% stake and ICICI Bank, HDFC, HDFC Bank and NSE Strategic Investment Corporation Ltd with 10% stake each.
31). What does N stands for in HSN?
a) Network
b) Nationalization
c) Nominee
d) Nomenclature
e) Nomination
Answer: (D). HSN – Harmonized System of Nomenclature. HSN code will be used for classifying under the GST regime.
32). Coal comes under which rate Structure?
a) 0%
b) 5%
c) 12%
d) 18%
e) 28%
Answer: C
33). Investment is a function of the interest rate?
1. Increase
2. Decrease
3.Direct
4. Indirect
Answer 434). Saving is a function of the level of income?
1. Increasing
2. Decreasing
3. Direct
4. Indirect
Answer 335). Which sector is known as ” real sector ” equilibrium?
1. Product market equilibrium
2. Money market equilibrium
3. General equilibrium of product market and money market
4. None of these
Answer 336). If rate of interest reduced then investment curve will…..
1. Shift downward
2. Shift upward
3. Move left
4. Move right
Answer 437). Relationship b/w income and interest rate in the real sector….
1. Positive
2. Negative
3. Both
4 relationship doesn’t occur
Answer 238). If investment is very sensitive to the rate of interest, the IS curve is..
1. Vertical
2. Horizontal
3. Very Steep
4. Very Flat
Answer 339). If the size of the multiplier isb large, the IS curve is…
1. Horizontal
2. Vertical
3. Steeper
4. Flatter
Ans440).A change in Real GDP is due to
a) A change in Price.
b) A change in quantity.
c) a and b.
d) All above.
Answer B -
1.Fiscal Policy is connected with?
A. exports and imports
B. Issue of currency
C. public reven ue and expenditure
D. None of these
Ans c2.If a five percent change in price causes a five percent reduction in quantity demanded then demand is:
A).perfectly elastic. B).elastic.
C).unitary elastic. D).inelastic.
Ans c3.Which Five year plan in India had ‘poverty alleviation’ as one of its objectives?
A. First five year plan
B. Third five year plan
C. Fifth five year plan
D. Seventh five year plan
Ans c4.The credit of developing the concept of modern economic growth goes to:
A. Arthur Lewis
B. Michael P. Todaro
C. Gunnar Mydral
D. Simon Kuznets
Ans D5. countries are the slums of the world Economy.” This statement is by
A. Ragnar Nurkse
B. A.N. Caimcross
C. Colin Clark
D. Jagdish Bhagwati
Ans B6.Planning from below’ is known as:
A. Centralized planning
B. Functional planning
C. Decentralized planning
D. Structural planning
Ans d7 .When does Unemployment situation develop?
1.decrese in efeective demand
2.constant in effective demand
3.increse in effective demand
4.None
Ans 18. An additional investment of SR 50 billion in the Indian economy creates how much
additional income if the marginal propensity to consume (mpc) is equal to 0.5?
A. SR 25 billion;
B. SR 50 billion;
C. SR 100 billion;
D. SR 150 billion.
Ans c9.What’s called below area of good’s demand curve?
1.marginal utility
2.total utility
3.cunsumer surplus
4.producer surplus
Ans 110.What’s called upper area of demand & supply curve?
1.marginal utility
2.total utility
3.producer surplus
4.None
Ans 411.If a producer is ready to sacrifice 4 unit capital for getting one labour then MRTS(LK) will be…
1.4
2.1/4
3.1/2
4.2
Ans 112. On Which parameter is the any economy measured as well being?
1.Nominal GDP
2.Real GDP
3.Both
4.None
Ans 213.Which Base is India’s GDP rank 6?
1.Nominal
2.Real
3.combination of both
4.None
Ans 114.cross elasity is….
1.positive
2.negative
3.constant
4.None
Ans 115.which is/are working under financial sector :
1.BANK
2.IRDA
3.PFRDA
4.SEBI
CODE:
A.1,2&3
B.1,2,3&4
C.1&4
D.NONE
Ans c16.Downward Demand curve denotes :
1.incresing demand
2.decresing price
3.constant
4.none
Ans None17.How many public sector Bank in India at present?
1.26
2.27
3.19
4.21
Ans 418.IF C=20+0.25y,I=10,G=50
Tax=3y than income equilibrium?
1.160
2.250
3.400
4.None
Ans 119.capital creation concept was given by
1.kujenets
2.mehata
3.mirdle
4.smith
Ans 120.international comparative cost theory related to :
1.smith
2.recardo
3.ohlin
4.NonAns 2 -
261. Which of the following is international trade:
A. Trade between provinces B. Trade between regions
C. Trade between countries D. (b) and (c) of above
Answer: Option C2. Theory of comparative advantage was presented by:
A. Adam Smith B. Ricardo
C. Hicks D. Arshad
Answer: Option B3. Which is NOT an advantage of international trade:
A. Export of surplus production B. Import of defence material
C. Dependence on foreign countries D. Availability of cheap raw materials
Answer: Option C4. If Japan and Pakistan start free trade, difference in wages in two countries will:
A. Increase B. Decrease
C. No effect D. Double
Answer B5. Trade between two countries can be useful if cost ratios of goods are:
A. Equal B. Different
C. Undetermined D. Decreasing
Answer B6. Modern theory of international trade is based n the views of:
A. Robbins and Ricardo B. Adam Smith and Marshall
C. Heckcsher and Ohlin D. Saleem and Kareem
Answer C7. Foreign trade creates among countries:
A. Conflicts B. Cooperation
C. Hatred D. Both (a) & (b)
Answer B8. Net exports equal:
A. Exports x Imports B. Exports + Imports
C. Exports – Imports D. Exports of services only
ANSWER C9. A tariff:
A. Increases the volume of trade B. Reduces the volume of trade
C. Has no effect on volume of trade D. (a) and (c) of above
ANSWER B10. A tariff is:
A. A restriction on the number of export firms B. Limit on the amount of imported goods
C. Tax and imports D. (b) and (c) of above
Answer:C11.Dumping refers to:
A. Buying goods at low prices abroad and selling at higher prices locally B. Expensive goods selling for low prices
C. Reducing tariffs D. Sale of goods abroad at low a price, below their cost and price in home market
Ans D
12. According to Hecksher and Ohlin basic cause of international trade is:
A. Difference in factor endowments B. Difference in markets
C. Difference in political systems D. Difference in ideology
ANSWER A13. All are advantages of foreign trade EXCEPT:
A. People get foreign exchange B. Nations compete
C. Cheaper goods D. Optimum utilisation of country’s resources
ANSWER A14. Two countries can gain from foreign trade if:
A. Cost ratios are different B. Tariff rates are different
C. Price ratios are different D. (a) and (c) of above
ANSWER D15. International trade and domestic trade differ because of:
A. Trade restrictions B. Immobility of factors
C. Different government policies D. All of the above
ANSWER D16. Terms of trade of developing countries are generally unfavourable because:
A. They export primary goods B. They import value added goods
C. They export few goods D. (a) and (b) of above
ANSWER D17. Term of trade of a country show:
A. Ratio of goods exported and imported B. Ratio of import duties
C. Ratio of prices of exports and imports D. (a) and (c) of above
ANS C18. In a free trade world in which no restrictions exist, international trade will lead to:
A. Reduced real living standard B. Decreased efficiency
C. Increased efficiency D. Reduced real GDP
ANSWER C19. Govt. policy about exports and imports is called:
A. Monetary policy B. Fiscal policy
C. Commercial policy D. Finance policy
ANSWER C
20. What would encourage trade between two countries:
A. Different tax system B. Frontier checks
C. National currencies D. Reduced tariffs
ANS D21.”Terms of trade” between two countries refer to a ratio of:
A. Export prices to import prices B. Currency values
C. Exports to imports D. Balance of trade to balance of payments
#A22. What would encourage trade between two countries?
A. Different tax system B. Quality control
C. Reduced tariffs D. Fixing import quotax
#C23. It is drawback of protection:
A. Consumers have to pay higher prices B. Producerrs get higher profits
C. Quality of goods may be affected D. All of the above
#D24. It is drawback of free trade:
A. Prices of local goods rise B. Government looses income from custom duties
C. National resources are underutilized D. (a) and (b) of above
#B25. Gold standard means:
A. Currency of the country is made of gold B. Paper currency is not used
C. Currency of the country is freely convertible into gold D. (a) and (c) of above
#D26. Terms of trade of a country:
A. Mean the trade agreement between trading countries B. Is another name of exchange ratio of two currencies
C. Show the ratio between total export earnings and import bill of a country D. Are determined by the price index of export and import goods
#D27. Pakistan’s terms of trade:
A. Have risen over past few years B. Have fallen over past few years
C. Always remain above 100 D. Are determined by federal govt.
#B28. Exchange value of Pak rupee against other currencies has fallen because:
A. Our total exports are smaller B. Our imports are more than exports
C. Exports are more than imports D. Pakistan does not produce gold
#B29. This is an advantage of foreign trade:
A. We can preserve our natural resources B. New technology comes to the country
C. People need not go abroad D. We can get foreign currencies
#B30. This is NOT an advantage of foreign trade:
A. We can get gold from abroad B. New technology comes to the country
C. We can import goods which are in short supply in Pakistan D. We can made best use of natural resources
#A31.Foreign trade:
A. Increases employment opportunities B. Increases international mobility of labour
C. Increases competition D. All of the above
#D32. Foreign trade:
A. Benefits developed countries B. Benefits underdeveloped countries
C. Benefits democratic countries D. Benefits all countries
#D33. Foreign trade has the advantage:
A. Trading countries get foreign exchange B. Can import scarce raw materials
C. Can import machinery and technology D. (b) and (c) of above
#D34. In foreign trade, Protection policy means:
A. Restrictions on exports B. Restriction on transfer of foreign exchange
C. Restrictions on imports D. All of the above
#C35. If a country decreases the external value of its currency, it will affect:
A. Volume of exports B. Volume of imports
C. General price level D. All of the above
#D36. The theory explaining trade between two countries is called:
A. Comparative advantage B. Comparative bargain
C. Comparative trade D. Comparative returns
#A37. The theory explaining trade between two countries is called:
A. Comparative disadvantage theory B. Comparative cost theory
C. Comparative trade theory D. None of the above
#B38. Trade between two countries takes place when:
A. Cost ratios of commodities are equal B. Cost ratios of commodities are different
C. Cost ratios of commodities are high D. Cost ratios of commodities are low
#B39. David Ricardo presented the theory of international trade called:
A. Theory of absolute advantage B. Theory of comparative advantage
C. Theory of equal advantage D. Theory of total advantage
#B40. Rich countries have deficit in their balance of payments:
A. Sometimes B. Never
C. Alternate years D. Always
#A -
1. Who among the following did not estimate the incidence of poverty in India?
(A) B. S. Minhas
(B) P.K.Bardhan
(C) V. M. Dandekar and N. Rath
(D) Raj Krishna
#D
2. Which one of the following areas is related to blue revolution in Agriculture sector?
(A) Horticulture
(B)Aqua-culture
(C) Poultry
(D) Dairy
#B
3. Soft currency means whose
(A) Supply is less than its demand in the international market
(B) Supply is more than its demand in the international market
(C) Supply and demand both are less in international market
(D) Demand tends to increase in the international market
#B
4. Which one of the following is the basis of the comparative cost theory of David Ricardo?
(A) Supply and demand
(B) Labour theory of value
(C) Benefit theory of trade
(D) Marginal utility theory
#B
5. Which one of the following is the cause of international trade as per Heckschar Ohlin Trade Theory?
(A) Difference in factor avail ability
(B) Difference in costs
(C) Difference in wants
(D) Difference in currency system
#A
6. Which one of the following is matching with free trade?
(A) Encouragement for balanced growth
(B) Absence of tariff
(C) Restrictions on the movement of goods
(D) Existence of anti-dumping policy
#B
7. If the slope of offer curves is constant, the terms of trade will—
(A) Become indeterminate
(B)Become continuously favourable
(C)Continuosly become unfavourable
(D) Become constant
#B
8. Let elasticity of demand for exports for a certain country be ex and elasticity of demand for imports be em. Assume that the country devalues its currency. Its balance of payment will almost certainly show an improvement
if—
(A) ex =em=1
(B) ex + em >l
(C) ex + em <l
(D) ex + em=1
#D
9. Who among the following is not a neoclassical Economist?
(A) Robert Solow
(B) J. E. Meade
(C) Paul Rom
(D) T. W. Swan
#D
10. What is the objective of hedging in international foreign exchange transactions?
(A) To bear the risk in foreign exchange
(B) To secure risk in foreign exchange
(C) Speculation in foreign exchange
(D) Arbitrage operations in foreign exchange
#C
11. EURO came into circulation since
(A) January 1, 1996
(B) January 1, 1997
(C) January 1, 1998
(D) January 1, 1999
#D
12. If the marginal propensity to save is 0.20 and the marginal propensity to imports is 0.40 the effect of an increase in exports of Rs. 100 million on national income is equal to—
(A) Rs. 450 million
(B) Rs. 300 million
(C) Rs. 250 million
(D) None of the above
#D
13. Open market operation means
(A) Borrowing by scheduled banks from the Central Bank
(B) Purchase and sale of Government Securities by the
Central Bank
(C) Lending by Commercial Banks to industry and trade
(D) Deposit mobilization
#B
14. In which one of the following situations, should a country pursue a cheap money policy—
(A) Level of economic activities and employment is low
(B) Gold is likely to flow out side the country
(C) Price level is rising
(D) BOP is unfavourable
#D
15. Which of the following is not used by RBI for controlling credit?
(A) Increase in CRR
(B) Increase in SLR
(C) Increase in Bank Rate
(D) Increase in purchase of
Government Securities
#D
16. Which one of the following does not affect credit creation power of Commercial Banks?
(A) Cash reserve ratio
(B) Statutory liquidity ratio
(C) C adequacy ratio
(D) Cash-deposit ratio
#C
17. For revival and restructure of weak banks of public sector, which committee was constituted?
(A) Verma Committee
(B) Goiporia Committee
(C) Rekhi Committee
(D) Narsimham Committee
#D
18. If the Budget of the Government does not get passed by 31st March how is the Government expenditure undertaken?
(A) Vote on credit
(B) Supplementary demands
(C) Vote on account
(D) None of the above
#C
19. When interest payments are subtracted from fiscal deficit, the remainder is known as—
(A) Revenue deficit
(B) Primary deficit
(C) Monetized deficit
(D) None of the above
#B
20. Which one of the following will result iii crowding out of private sector in the credit market?
(A) Low level of Government borrowing
(B) Low rate of interest
(C) Large repayment of Government debt
(D) Large market borrowing by the Government
#B
21. Which one of the following is not true for the Repo operations?
(A) It is conducted by Commercial Banks
(B) It increases availability of foreign exchange
(C) In a Repo operation object is to regulate credit flow
(D) In a Repo operation, object is to control liquidity in the financial system
#B
22. Zero Based Budgeting lays emphasis on—
(A) Unlimited deficit financing
(B) Preparing the budget neglecting history of expenditure
(C) Both (A) and (B)
(D) None of the above
#B
23. ‘Relative taxable capacity is a reality while absolute taxable capacity is a myth.’ This statement was given by—
(A) R. A. Musgrave
(B) H. Dalton
(C) F. Shirras
(D) J. K. Mehta
#B
24. Which fiscal measure should be adopted in correcting inflationary Gap?
(A) Reduction in Public Expenditure
(B) Increase in Taxes
(C) Increase in Public debt
(D) All the above
#D
25. National income at market-price in an economy in one year is equal to
(A) The sum of wages, interest, rent and profit
(B) National income at factor costs plus indirect taxes
(C) The sum of all factor payments plus indirect taxes minus subsidies
(D) Value of goods and services produced in a country
#C
26. ‘Full employment’ according to Keynesian Theory of Employ ment is full—
(A) Employment of labour
(B) Utilization of capital
(C) Utilization of natural resources
(D) Utilization of all the resources
#A
27. For a price reduction, the demand for inferior goods
(A) Increases due to substitution effect
(B) Increases due to income effect
(C) Increases both due to substitution and income effect
(D) Decreases due to both substitution and income effect
#D
28. An empirical study on ‘relation ship between the rate of money wage increase and rate of unemployment’ in the economy was given by—
(A) A. W. Phillips
(B) J. M. Keynes
(C) R. F. Kahn.
(D) Ernst Engel
#A
29. If Nominal GDP is equal to real GDP, then
(A) The GDP deflator is equal to zero
(B) The GDP deflator is equal to one
(C) The GDP deflator is less than one
(D) None of the above is correct
#B
30. Potential output is determined by the economy’s productive capacity, which depends upon—
(A) The inputs available (capital, labour, land etc.)
(B) The economy’s technologi al efficiency
(C) Both (A) and (B) together
(D) None of the above
#C
31. Estimate gross national product from the data given below— Value of consumer goods and
services: Rs. 20,000 crores
Value of capital goods and
services: Rs. 10,000 crores
Value of Exports: Rs. 4,000 crores
Value of Imports: Rs. 2,600 crores
Total depreciation: Rs. 1,600 crores
Which one of the following is correct?
(A) Rs. 31,400 crores
(B) Rs. 38,600 crores
(C) Rs. 29,800 crores
(D) Rs. 29,200 crores
#A
32. Investment in human capital is related with expenditure in
(A) Education
(B) Training
(C) Health services
(D) All the above
#D
33. Other things remaining the same to increase the employment as per Marginal Productivity Theory of Distribution we should
(A) Increase wages
(B) Decrease wages
(C) Increase the marginal productivity of labourers
(D) Decrease the marginal productivity of labourers
#C
34. Monopolistic competition in comparison to perfect competition ensures—
(A) Lower price and higher output
(B) Price equal to marginal cost
(C) Output at the minimum average cost
(D) Higher price and lower output
#D
35. For a monopolist, price is 16 and marginal revenue is 4, the elasticity of demand will be
(A)4/3
(B)3/4
(C)4
(D)1/4
#A
36. If the total expenditure on a commodity increases after a price increase, the elasticity of demand is—
(A) Less than one
(B) Equal to one
(C) Greater than one
(D) Infinite
#A
37. In the Cobb-Douglas production function the elasticity of substitu tion between factors is—
(A) Zero
(B) Equal to one
(C) Greater than one
(D) Less than one
#B
38. In economic theory, the term ‘Ceteris Paribus ‘ is used to indicate—
(A) Demand and supply are equal
(B) Other things are equal
(C) Condition of full employment exists
(D) Cost and revenue are constant
#B
39. Who, among the following economists, used the technique of ‘kinked demand curve’ to explain price rigidity under oligopoly?
(A) Paul Sweezy
(B) Hall and Hitch
(C) Chamberlin
(D) Stigler
#A
40. Which law states that, with given taste and preferences, the pro portion of income spent on food stuff diminishes as income increases?
(A) Engel’s law
(B) Gresham’s law
(C) Giffin’s law
(D) Say’s law
#A
41. Money was introduced in the growth models for the first time by—
(A) R. F. Harrod
(B) E.Domar
(C) J.Robinson
(D) None of the above
#D
42. According to Ragner Nurkse in the contest of an underdeveloped economy, the inducement to invest is limited by—
(A) Lack of saving
(B) The policy of the Government
(C) Lack of investment oppor tunities
(D) The size of the market
#A
43. Inflationary gap measures the excess of aggregate expenditure over the aggregate supply at—
(A) Before full employment
(B) At full employment
(C) Beyond full employment
(D)Both (A) and (B) above
#C
44. Determinant of the maximum profit for a firm is—
(A) Price
(B) Average cost
(C) Both average cost and price
(D) The output level
#C
45. ‘The theory of big-push’ was propounded by—
(A) R. Rodan
(B) A. O. Hirschman
(C) R. Nurkse
(D) W. A. Lewis
#A
46. The ‘Balanced Growth Theory’ is associated with—
(A) W. A. Lewis
(B) Rostow
(C) Streeton
(D) R. Nurkse
#D
47. If prices rise, the direct real burden of public debt will
(A) Also increase
(B) Fall
(C) Remain unchanged
(D) Be uncertain
#B
48. When current income of the Government is less than its current expenditure, it is known As—
(A) Budget deficit
(B) Fiscal deficit
(C) Revenue deficit
(D) Primary deficit
#A
49. If income elasticity of demand is high—
(A) Tax rates should be decreased
(B) Tax rates should be increased
(C) Tax should not be imposed
(D) None of the above
#B
50. Which Economist first suggested imposition of Expenditure tax?
(A) J. Hicks .
(B) Dalton
(C) N. Kaldor
(D) Musgrave
#C -
#Ratchet Effect (#Consumption):-The other significant part of Duesenberry’s relative income hypothesis is that it suggests that when income of individuals or households falls, their consumption expenditure does not fall much. This is often called a ratchet effect.
#Ratchet effect (#Production):-It refers to escalations in production or prices that tend to self-perpetuate. Once productive capacities have been added or prices have been raised, it is difficult to reverse these changes because people are influenced by the previous best or highest level of production.
-
In India, CPI is declared as the new standard for measuring inflation (April 2014). CPI index are typically measured monthly and with a significant lag making them unsuitable for policy use. India uses changes in the CPI to measure its rate of inflation……WPI used to measure the inflation before 2014 not still
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