1. What is the maximum insurance provided for bank deposits?
A
1 Lakh
B
2.5 Lakh
C
5 Lakh
D
7 Lakh
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2. ____ is the first bank in India to launch a mobile application for opening a current account.
A
ICICI Bank
B
Bank of Baroda
C
IndusInd Bank
D
HDFC Bank
IndusInd Bank
has recently launched a mobile application-based facility for opening a
current account, thereby becoming the first bank in the country to do
so.
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3. Real Time Gross Settlement is managed by ____
A
Government of India
B
Asian Development Bank
C
World Bank
D
Reserve Bank of India
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4. ____ has been designated as the Operationalization Agency of the Joint Investment Fund between India and Oman
A
Reserve Bank of India
B
HDFC
C
State Bank of India
D
ICICI
State Bank of India
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5. Which Indian economist has also been the Chief Economist of Asian Development Bank?
A
Arvind Panagariya
B
Amartya Sen
C
P chidambaram
D
Manmohan Singh
Arvind Panagariya
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6. The upper or maximum ceiling of RTGS transaction in India is ____
A
Rs. 10 Lakhs
B
Rs. 15 Lakhs
C
Rs. 25 Lakhs
D
It has no upper limit
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Wrong Answered :
7. Which category of banks came under the regulation of Reserve Bank of India after the passing of the Banking Regulation (Amendments) Bill in 2020?
A
Cooperative Banks
B
ICICI Ltd
C
Land Developments Banks
D
Nidhi Companies
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Wrong Answered :
8. In June 2022, India`s services sector growth hit an eleven year high in February as per PMI. What does PMI stand for?
A
Purchasing Manager`s Index
B
Public Money Index
C
Purchasing Market Interest
D
Personal Market Investment
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Wrong Answered :
9. To improve the connectivity of key economic areas in which state, did Asian Development Bank (ADB) recently approve a USD 350 million loan agreement?
A
Maharashtra
B
Uttar Pradesh
C
Punjab
D
Madhya Pradesh
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Wrong Answered :
10. By what kind of curve is the degree of urbanization represented?
A
Exponential
B
Logarithmic
C
Logistic
D
Normal
Logistic
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Wrong Answered :
11. According to the Status Paper on Government Debt for 20-21, what is the amount of Central Government Debt as a percent of GDP?
A
30.5 %
B
5.2 %
C
63.9 %
D
72.3 %
59.2 %
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12. Who heads the High level expert group on farm exports set up by the 15th Finance Commission in 2020?
A
Radha Singh
B
Sanjiv Puri
C
N K Singh
D
Paban K. Borthaku
The Members of the HLEG include Shri Sanjiv Puri, Chairman and Managing Director, ITC Chairman; Ms.
Correct Answered :
Wrong Answered :
13. After the postponement of the Fourth Five Year Plan, annual plans were launched for the first time in India. In which year was this?
A
1951
B
1956
C
1961
D
1966
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Wrong Answered :
14. Name the Indian bank that signed an MoU with CARE Ratings to assess credit quality of its small and medium enterprises (SME) customers in 2020.
A
HDFC Bank
B
Bank of Baroda
C
ICICI Bank
D
Axis Bank
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Wrong Answered :
15. In the context of which of the following organizations, do you hear the term Reserve Tranche Position (RTP)?
A
World Bank
B
Organisation for Economic Co-operation and Development
C
International Monetary Fund
D
World Trade Organisation
The reserve tranche is a segment of an
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Wrong Answered :
16. What percent of shareholding in National Housing Bank was divested by RBI in 2019?
A
100
B
60
C
40
D
20
RBI held 100% shareholding in NHB, which was divested on March 19, 2019.
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17. ____ has the highest Gross State Domestic Product (GSDP0
A
Maharastra
B
Kerala
C
Punjab
D
Uttar Pradesh
The state of Maharashtra in India had the highest gross state domestic product in financial year 2020, valued at over 28 trillion Indian rupees. Tamil Nadu and Uttar Pradesh followed with values at 17.9 and 16.8 trillion rupees respectively, during the measured time period.
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18. What is the current Cash Reserve
A
2%
B
4%
C
4.50%
D
5%
Cash Reserve Ratio was set as 4.5 % in Nov 2022 See the table below for more data.
| LAST | PREVIOUS | MIN | MAX | UNIT | FREQUENCY | RANGE |
|---|---|---|---|---|---|---|
| 4.5Nov 2022 | 4.5Oct 2022 | 3.0Mar 2021 | 15.0Oct 1995 | % | monthly | Sep 1962 - Nov 2022 |
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19. The FDI Policy allows ____ FDI under the automatic route for the marketplace model of e-commerce activities.
A
25%
B
50%
C
75%
D
100%
100%
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Wrong Answered :
20. The following questions consists of a related pair of words, followed by four pairs of words. Choose the pair that best represents a similar relationship to the one expressed in the original pair of words.
Binding : Book
A
tree : write
B
frame : picture
C
nail : clothes
D
stitch : bicyle
frame : picture
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21. On what type of goods is the countervailing duty imposed on?
A
Imported Goods
B
Exported Goods
C
Local Goods
D
Rare Goods
Countervailing Duties (CVDs) are tariffs levied on imported goods to offset subsidies made to producers of these goods in the exporting country. CVDs are meant to level the playing field between domestic producers of a product and foreign producers of the same product who can afford to sell it at a lower price because of the subsidy they receive from their government.
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22. Choose from the following given options, the appropriate active/passive form of the given passive/active sentence
Mridul ate six shrimp at dinner.
A
At dinner six shrimp was ate by Mridul.
B
At dinner, six shrimp were eaten by Mridul.
C
At dinner, shrimps are eaten by Mridul.
D
At dinner Mridul eat six shrimp
At dinner, six shrimp were eaten by Mridul.
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Wrong Answered :
23. The rate at which RBI purchases or rediscounts bills of exchange of commercial banks is called _____
A
Interest Rate
B
Repo Rate
C
Bank Rate
D
System Repo
Bank Rate is that rate of interest at which central bank of a country provides refinancing facilities to commercial banks. The bank rate a benchmark rate at which RBI buys or re-discounts bills of exchange or other commercial papers eligible for purchase.
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Wrong Answered :
24. Which of these committees is related to Financial Inclusion?
A
Vaghul Committee
B
A Ghosh Committee
C
Narasimham Committee
D
Raghuram Rajan Committee
Financial Inclusion, broadly defined, refers to universal access to a wide range of financial services at a reasonable cost. These include not only banking products but also other financial services such as insurance and equity products (The Committee on Financial Sector Reforms, Chairman: Dr. Raghuram G. Rajan).
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25. The Human Development Index (HDI) includes which of one of the following components?
A
Ratio of Medical Doctors per 100 people in an area
B
The Birth and Life Expectancy
C
The Students graduating from Pre Primary School
D
The Infant mortality rate due to Pneumonia and Diarrhea
The Human Development Index (HDI) measures each country`s social and economic development by focusing on the following four factors: mean years of schooling, expected years of schooling, life expectancy at birth, and gross national income (GNI) per capita.
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26. Read the following statements and choose the CORRECT answer
i) GDP is a specific measure of economic welfare that does NOT include aspects like leisure time, environmental quality, freedom, social justice or gender equality.
ii) Per Capita Income includes and also indicates the level of income equality among people.
A
i is true and ii is false
B
i is false ii is true
C
i is true and ii is true
D
i is false and ii is false
i is true and ii is false
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27. Which of the following options includes machinery, work plants, equipment, new technology, factories, buildings and goods that are designed to increase the economy`s potential?
A
Fixed Capital
B
Working Capital
C
Capital Productivity
D
Infrastructure
Fixed Capital
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28. __________ is the total value of all final goods and services that the economy produces during a given year, accounting for inflation.
A
Potential GDP
B
Nominal GDP
C
Actual GDP
D
Real GDP
Real GDP
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29. The ______ the elasticity of supply and demand for rental housings in the ______, the greater will be the shortage of rental housing units as a result of imposition of rent control act.
A
greater, long run
B
lower, short run
C
greater, short run
D
lower, long run
31. Which law states that the consumer will distribute his money income between the goods in such a way that the utility derived from the last rupee spent on each good is equal?
A
Law of demand
B
Law of diminishing marginal utility
C
Law of equi-marginal utility
D
Law of supply
32. What is the reason for the collapse of the command economy?
A
Lack of efficiency in resource allocative
B
Efficient allocation of resources
C
Economic stability
D
Maximum social satisfaction
33. According to Domar`s growth model, growth in capacity output will be realised only if ______ increases by a sufficient amount.
A
money supply
B
aggregate supply
C
money demand
D
aggregate demand
34. What will be the effect of a decrease in the wealth of an individual on his demand curve for a good?
A
Leftward shift in the demand curve
B
Rightward shift in the demand curve
C
Downward movement along the same demand curve
D
Upward movement along the same demand curve
36. When the price of a commodity falls by Rs. 2 per unit, then its quantity demanded increases by 10 units. Its price elasticity of demand is (–)1. Calculate its quantity demanded at the price before change which was Rs. 10 per unit
A
40 units
B
55 units
C
50 units
D
60 units
39. According to the quantity theory of money, what will be the effect of doubling the quantity of money on the price level?
A
Price level will remain same
B
Price level will be halved
C
Price level will rise by a factor of 4
D
Price level will also get doubled
According to the quantity theory of money, if the amount of money in an economy doubles, all else equal, price levels will also double. This means that the consumer will pay twice as much for the same amount of goods and services.
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40. If the total deposits created by commercial banks is Rs. 12,000 crores and legal reserve requirements is 25 percent, then calculate the amount of initial deposits
A
Rs. 48,000 crores
B
Rs. 3,000 crores
C
Rs. 600 crores
D
Rs. 2,500 crores
41. Through which method, companies may raise capital from the existing shareholders by making a rights issue?
A
Issue by offer for sale
B
Offering rights issue
C
Issue by prospectus
D
Issue by private placement
42. The indifference curve is relatively ______ in its right-hand portion and relatively ______ in its left-hand portion
A
flatter, flatter
B
steeper, flatter
C
flatter, steeper
D
steeper, steeper
43. Which transactions are included in the ‘capital account’ of balance of payments?
A
Remittance from abroad
B
Foreign direct investment
C
Transportation charges
D
Interest on investments
44. In which method of privatisation, the government sells its share in the public sector undertakings to a strategic partner?
A
Management-employee buyouts
B
Sale to foreigners
C
Equal-access voucher programmes
D
Strategic sale
45. Which policy introduced the concept of Agri Export Zones (AEZs) to give primacy to promotion of agricultural exports?
A
Foreign trade policy (2004-09)
B
New industrial policy (1991)
C
Exim policy (2001)
D
New economic policy (1991)
46. What is the criticism of the Poverty Alleviation strategy?
A
The programmes have done little for disabled, sick and socially handicapped individuals
B
ncome and employment-oriented poverty alleviation programmes ensured that the poor can really manage to get adequate food all the year round
C
The income generation orientation of poverty alleviation programmes recognised the importance of increased flow of social inputs
D
The government has made necessary changes in anti-poor laws and policies
47. Variable costs of production are also called __
A
fixed costs
B
prime costs
C
overhead costs
D
sunk costs
Variable costs are costs that change as the quantity of the good or service that a business produces changes. Variable costs are the sum of marginal costs over all units produced. They can also be considered normal costs. Fixed costs and variable costs make up the two components of total cost. Direct costs are costs that can easily be associated with a particular cost object.However, not all variable costs are direct costs. For example, variable manufacturing overhead costs are variable costs that are indirect costs, not direct costs. Variable costs are sometimes called unit-level costs as they vary with the number of units produced. Direct labor and overhead are often called conversion cost, while direct material and direct labor are often referred to as prime cost.
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48. Which condition must be satisfied for the equilibrium growth rate at full employment level of all existing resources? (Where Gn = Natural rate of growth, Gw = Warranted rate of growth, Gy = Growth rate of output, l = Growth rate of population, t = Technological progress, S = Saving rate, V = Capital – Output ratio)
A
Gn = Gw
B
Gn = l + t
C
Gy = (S/V)
D
Gn = Gw = Gy
49. On the eve of the first five-year plan, industries manufacturing intermediate products were established but their production was ______ as productive capacity was considerably ______ the requirements.
A
large, above
B
small, below
C
large, below
D
small, above
50. Which law is called the extension of “Law of Diminishing Returns”?
A
Law of diminishing marginal utility
B
Law of variable proportions
C
Law of equi-marginal utility
D
Law of demand
54. Which deposits can be withdrawn through cheques but there are limits to the amount withdrawable in a week or a month?
A
Demand Deposits
B
Demand Deposits
C
Time Deposits
D
Savings Bank Deposits
55. What was the threshold limit for assets in respect of Monopolies and Restrictive Trade Practices (MRTP) and dominant undertakings under the new industrial policy of 1991?
A
Rs. 100 crore
B
Rs. 50 crore
C
Rs. 101 crore
D
No limit
The firms with assets of Rs. 25 Crore or more were put under the obligation of taking permission from the government of India and they were called MRTP companies. This upper limit of Rs. 25 Crore was known as MRTP limit. It was later relaxed to Rs. 50 crore in 1980, Rs. 100 Crore in 1985 and in 1991 this limit was removed. Now only companies having more than 25% market share were called Monopolies.
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58. Which institution is categorised as the organised sector of the money market?
A
Moneylenders
B
Indigenous Bankers
C
Discount and Finance House of India Limited
D
Unregulated Non-Bank Financial Intermediaries
59. What is the rationale behind privatisation and disinvestment of public sector undertakings?
A
Public units are subject to market discipline
B
Public units are subject to market discipline
C
Fixing responsibility is difficult
D
mprovement in efficiency and performance
60. What will be the effect of rise in price of a commodity on the total expenditure when demand is inelastic?
A
Total expenditure will reduce to zero
B
Total expenditure will increase
C
Total expenditure will decrease
D
Total expenditure will remain unchanged
61. Stage 3 of law of variable proportions is also called stage of negative returns because ______.
A
marginal product of the variable factor is positive during this stage
B
fixed factor is too much relative to the variable factor
C
marginal product of the variable factor is negative during this stage
D
marginal product of the fixed factor is negative
62. Government expenditure made on the schemes and projects included in five year plans is classified as __
A
plan expenditure
B
non-plan expenditure
C
transfer payments
D
non-developmental expenditure
63. Which equation represents the productive capacity effect of investment and saving? (Gγ : Growth rate of income σ : Output-Capital ratio S : Saving ratio)
A
Gγ = σ/S
B
Gγ = S.σ
C
Gγ = S/σ
D
Gγ = 1/S.σ
69. Fixed costs of production are also known as _
A
prime costs
B
direct costs
C
overhead costs
D
sunk costs
In accounting and economics, fixed costs, also known as indirect costs or overhead costs, are business expenses that are not dependent on the level of goods or services produced by the business. They tend to be recurring, such as interest or rents being paid per month.
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71. Indian agriculture was ______ in nature on the eve of the first five year plan.
A
backward and qualitatively traditional
B
technologically advanced
C
developed and economical
D
quantitatively advanced
72. Under ______, there is competition among the few firms producing homogeneous or identical product.
A
monopolistic competition
B
differentiated oligopoly
C
perfect competition
D
pure oligopoly
73. The quantity of the good which is purchased and sold at the equilibrium price is called ____
A
equilibrium price
B
excess demand
C
excess supply
D
equilibrium quantity
74. How will marginal product (MP) react, when total product rises at a diminishing rate?
A
MP remains constant
B
MP falls, but remains positive
C
MP rises
D
MP falls, but remains negative
77. The total cost of a firm is increased by Rs. 450, when production increased from 12 units to 15 units. Calculate marginal cost of the firm
A
Rs. 450
B
Rs. 37.5
C
Rs. 150
D
Rs. 30
78. Which measure will increase the national income and employment when the economy is fully utilising its given resources?
A
Higher Capital Accumulation
B
Decrease in Aggregate Demand
C
Increase in Aggregate Demand
D
Technological Degradation
80. Which agricultural strategy was put into practice for the first time in India in the Kharif season of 1966?
A
High-Yielding Varieties Programme
B
National Seeds Policy
C
Intensive Area Development Programme
D
Intensive Agricultural Areas Programme
81. Which model states that for rapid industrialisation to occur, the country must aim at developing basic industries and industries which make machines to make the machines needed for further development?
A
Vakil – Brahmananda Model
B
Mahalanobis Model
C
Supply – Side Model
D
Solow Model
82. The marginal utility of a good divided by the price of the good is equal to the ______.
A
marginal utility of demand
B
marginal utility of money
C
average utility of demand
D
average utility of money
83. If the price elasticity of a firm`s average revenue curve at a given level of output is equal to one, then the marginal revenue will be ______.
A
greater than one
B
equal to one
C
less than one
D
equal to zero
84. Which change will Reserve Bank of India (RBI) undertake when there is recession or depression in the economy?
A
Sales of securities in the open market
B
Rise in the cash reserve ratio
C
Increase in the repo rate
D
Reduction in the bank rate
86. Which of the following concept of unemployment is a time rate?
A
Current weekly status unemployment
B
Current monthly status unemployment
C
Current daily status unemployment
D
Usual weekly status unemployment
88. Domar`s analysis of income effect of investment is based on the ______ and income determination.
A
samuelson theory of multiplier
B
keynesian theory of multiplier
C
solow theory of multiplier
D
lewis theory of multiplier
89. Which equation represents the income version of quantity theory of money? (Where M = Quantity of Money, V = Income velocity of money, P = Average price level of final goods and services, Y = Real National Income, T = Total amount of transactions)
A
MV = PT
B
MV = PY
C
MP = VT
D
MP = VY
90. What is the another name for equal product curves?
A
Production – Indifference curves
B
Preference – Production curves
C
Production – Cost curves
D
Preference – Indifference curves
93. `Import of Machinery` is recorded in the ______ account and `borrowing from abroad` is recorded in the ______ account of balance of payments
A
capital, capital
B
capital, current
C
current, capital
D
current, current
94. Which measure has been adopted by the Indian government for macroeconomic stabilisation programme in 1991 economic reforms?
A
Capital flows reforms
B
Industrial deregulation
C
Control of inflation
D
Public sector reforms
97. What change will Reserve Bank of India (RBI) undertake to check inflation in the economy?
A
Reduction in the margin requirement
B
Reduction in the bank rate
C
Rise in the repo rate
D
Purchase of securities in the open market
98. Which measure of macroeconomic stabilisation programme suggested that the accumulation of foreign exchange reserves would move Indian economy to a somewhat stable and sustainable balance of payments position in the post-reform period?
A
Public sector reforms
B
Balance of payments adjustment
C
Capital flows Reforms
D
Trade Reforms
99. The elasticity of substitution between two factors labour and capital, in Cobb-Douglas production function is ____
A
equal to unity
B
greater than unity
C
equal to zero
D
less than unity
100. Which measure introduced the new agricultural strategy in the form of a package programme in selected regions of the country in 1966?
A
Land reforms
B
Technological measures
C
Institutional credit
D
Cooperation and consolidation of holdings
102. What will be the effect of rise in price of a commodity on the total revenue when demand is elastic?
A
Total revenue will decrease
B
Total revenue will increase or decrease alternately
C
Total revenue will remain unchanged
D
Total revenue will increase
103. Which of the following economic reforms undertaken by P.V. Narasimha Rao government deals with demand management?
A
Industrial deregulation
B
Macroeconomic stabilisation
C
Structural reforms
D
Fragile balance of payments situation
105. Which principle states that the increase in output or income induces an increase in the capital stock?
A
Principle of dynamic growth
B
Principle of capital investment
C
Principle of investment growth
D
Principle of acceleration
106. The combinations of goods that lie outside or beyond a given production possibility curve are called as ____
A
Unattainable combinations of goods
B
Attainable combinations of goods
C
Scarcity
D
Opportunity cost
107. Identify the visible item of balance of payments on current account
A
Consultancy services of TCS used by a foreign firm
B
Import of LCD screen from Malaysia
C
Banking service to non-resident of India
D
Export of computer software
108. ______ means that the making of an article is split up into several process and each process is carried out by a separate worker or a separate group of workers.
A
Complex division of capital
B
Complex division of labour
C
Simple division of labour
D
Simple division of capital
112. According to the quantity theory of money, what will be the effect of a decrease in the quantity of money?
A
Increase in price level
B
Decrease in price level
C
Increase in output
D
Decrease in output
113. A consumer consumes only two good X and Y whose prices are Rs. 6 and Rs. 3 per unit respectively. What will be the marginal rate of substitution, when the consumer is in equilibrium?
A
3
B
2
C
4.5
D
6
115. If demand for a commodity rises even without any change in its price, then it is known as _____
A
increase in quantity demanded
B
decrease in quantity demanded
C
increase in demand
D
decrease in demand
118. Which statement holds for the third stage of law of variable proportions?
A
Marginal product of the variable factor is positive
B
Fixed factor is too much relative to the variable factor
C
Variable factor is independent of the fixed factor
D
Variable factor is too much relative to the fixed factor
119. Which economic measure have been undertaken by Indian government to improve the supply side of the economy in 1991?
A
Fiscal Adjustment
B
Nationalization
C
Liberalisation
D
Socialization
120. The taxes whose burden can be shifted to others so that those who pay these taxes to the government do not bear the whole burden but pass it on wholly or partly to others are referred as ____
A
Ad valorem taxes
B
Direct taxes
C
Specific taxes
D
Indirect taxes
124. Which theory seeks to explain the value of money in terms of changes in its quantity?
A
Quantity theory of money
B
Velocity theory of money
C
Transaction theory of money
D
Price theory of money
125. Which concept talks about producing the maximum possible output of various goods from the given available amount of resources?
A
Allocation of resources
B
Efficiency in distribution of goods
C
Efficiency in production
D
Allocative efficiency
127. Which equation shows the growth in capacity-output as per the Domar`s Growth Model’? (Where I = Investment, ∆Y = change in output, σ = Output – Capital Ratio)
A
∆Y = σ
B
∆Y = σ/I
C
∆Y = I/σ
D
∆Y = Iσ
129. Which programme aimed at providing 100 days of unskilled manual work on demand to two members of a rural family in the age group of 18 to 60 years in the agricultural lean season within the blocks covered under the scheme?
A
Integrated Rural Development Programme
B
Jawahar Rozgar Yojana
C
Employment Assurance Scheme
D
Rural Landless Employment Guarantee Programme
132. Which industries were granted automatic approval for direct foreign investment under the new industrial policy of 1991?
A
Drugs and Pharmaceuticals
B
Entertainment Electronics
C
Defence Equipment
D
Electronic Aerospace
134. What will be the effect of fall in price of a commodity on the total revenue when demand is elastic?
A
Total revenue will decrease
B
Total revenue will reduce to zero
C
Total revenue will remain unchanged
D
Total revenue will increase
135. Which individuals or private firms receive deposits and give loans and thereby operate as banks?
A
Money lenders
B
Non-indigenous bankers
C
Unregulated non-bank financial intermediaries
D
Indigenous bankers
136. Which measure has been taken under land reforms for agricultural development?
A
Technological measures
B
Input subsidies to agriculture
C
Abolition of intermediaries
D
Rural employment programmes
137. According to Domar`s growth model, the ______ the rate of investment, the ______ the rate of growth of income
A
greater, lower
B
greater, insignificant
C
lower, greater
D
greater, greater
140. Which assumption holds for the law of variable proportions?
A
This law applies to various fields, like production, consumption, distribution, etc
B
It operates in the long run
C
State of technology is assumed to be given and unchanged
D
Effect of change in output due to change in variable factor cannot be easily determined
141. ______ is concerned with the income and expenditure of public authorities and with the adjustment of one to the other.
A
Public finance
B
Capital market
C
Capital finance
D
Financial market
142. Which of the following measures talk about abolishing intermediary interests in land and transfer of land to actual tiller of the soil?
A
Land reforms
B
Technological measures
C
Institutional credit
D
Support prices
143. Which of the following illustrates the three basic economics concepts, namely: scarcity of resource, choice by a society from the opportunity set and opportunity cost?
A
Indifference curve
B
Law of supply
C
Production possibility curve
D
Law of demand
144. ______ refers to a mechanism whereby on the one hand borrowers manage to obtain short-form loanable funds and on the other, lenders succeed in getting credit worthy borrowers for their money
A
Industrial market
B
Money market
C
Capital market
D
Agricultural market
145. Why is the capital – output ratio in developing countries higher?
A
Due to relative efficiency of the industries producing consumer goods
B
Due to relative inefficiency of the industries producing capital goods
C
Due to relative efficiency of the industries producing capital goods
D
Due to relative inefficiency of the industries producing consumer goods
146. Personal disposable income is equal to _____
A
Personal income (1 – personal taxes)
B
Personal taxes – Personal income
C
Personal income + Personal taxes
D
Personal income – Personal taxes
147. ______ refers to the minimum income which the entrepreneur must get in order to stay in a business or industry
A
Abnormal profits
B
Economic profits
C
Normal profits
D
Super-normal profits
148. Which factor induces the movement of the economy from a point inside the production possibility curve to a point on it?
A
Increase in productive capacity
B
Decrease in productive capacity
C
Partial employment of the given resources
D
Fuller employment of the given resources
150. ______ represents the amount of good Y which the consumer has to give up for the gain of an additional unit of good X so that his level of satisfaction remains the same.
A
Marginal product
B
Marginal rate of transformation
C
Marginal rate of substitution
D
Marginal utility
151. Which of the following equation correctly represents the equation of exchange? (where P : average price level, T : Total amount of transactions, M : Quantity of money, V : Transactions velocity of circulation of money)
A
PM = VT
B
PT = MV
C
M = PVT
D
P = MVT
153. Which of the following involves returning to low and stable inflation and a sustainable fiscal and balance of payments position?
A
Macroeconomic stabilisation
B
Structural reforms
C
Fiscal imbalance
D
Inflationary pressures
154. Which of the following statements holds for the Giffen goods?
A
Its demand curve will slope upward due to indirect price – demand relationship
B
Its demand curve will slope downward due to direct price – demand relationship.
C
Its demand curve will slope upward due to direct price – demand relationship
D
Its demand curve will slope downward due to indirect price – demand relationship.
157. What will be the effect of an increased population on saving and investment?
A
Saving will rise and investment will fall
B
Saving will fall and investment will rise
C
Both saving and investment will rise
D
Both saving and investment will fall
158. Which of the following concepts is meant to determine the usual activity status of sample covered by the survey?
A
Current weekly status unemployment
B
Usual status unemployment
C
Current monthly status unemployment
D
Current daily status unemployment
159. When earnings ______ normal rate of return on capital and other costs, then a firm earns positive economic profits
A
is higher than the
B
is equal to the
C
is lower than or equal to the
D
is lower than the
160. Suppose A and B are substitute goods. Determine the effect of a rise in the price of good B on the demand for good A.
A
Rightward shift in the demand curve of good A
B
Downward movement along the demand curve of good A
C
Leftward shift in the demand curve of good A
D
Upward movement along the demand curve of good A
161. What was the threshold limit of assets that a firm must possess to classify as Monopolies and Restrictive Trade Practices (MRTP) firms before new industrial policy of 1991?
A
Rs. 50 crore
B
Rs. 51 crore
C
Rs. 75 crore
D
Rs. 100 crore
163. Which of the following statements holds for the capital account in the balance of payments?
A
It deals with payment for currently produced goods and services
B
It includes interest earned or paid on claims and also gifts and donations
C
It has a direct effect on the level of income in a country
D
It influences the volume of assets which a country holds.
164. The highest attainable growth rate which would bring about the fullest possible employment of the resources existing in the economy is called the ______.
A
golden rate of growth
B
dynamic rate of growth
C
natural rate of growth
D
warranted rate of growth
172. Which agricultural measure provided irrigation facilities to a large area on an increasing basis for cultivation?
A
Technological Measures
B
Rural Employment Programmes
C
Food Security System
D
Pradhan Mantri Fasal Bima Yojana
173. Which measure reflects the proportion of the weighted component indicators in which, on average, poor people are deprived?
A
Poverty gap ratio
B
Multidimensional poverty index
C
Intensity of poverty
D
Headcount ratio
176. What is the main advantage of the Initial Public Offer (IPO) method of privatisation?
A
This method is very crucial in small countries with weak capital markets
B
It is likely to face more resistance from the public sector undertakings (PSU) employees
C
It can be employed usefully in those cases where the government wants to lose control of the enterprise
D
It ensures wide participation of retail investors and thus helps in a broad based control of the public sector entity
180. Suppose a consumer can afford to buy 6 units of good 1 and 8 units of good 2. She spends her entire income. The prices of the two goods are Rs. 6 and Rs. 8 respectively. How much is the consumer`s income?
A
Rs. 136
B
Rs. 64
C
Rs. 36
D
Rs. 100
182. Choose the change by the Reserve Bank of India (RBI) that will decrease the money supply
A
Fall in bank rate
B
RBI reduces the cash reserve ratio
C
Purchase of securities in the open market
D
Rise in repo rate
183. Change in stock is negative when ______.
A
closing stock is zero
B
closing stock is less than opening stock
C
opening stock is less than closing stock
D
opening stock is zero
184. Which expenditure is classified as Non- Developmental Expenditure?
A
Expenditure on flood control measures
B
Expenditure on Transport
C
Expenditure on communication
D
Expenditure on Judiciary
185. The main reason for India`s indicative economic planning was ______.
A
very high levels of unemployment
B
the presence of the mixed economy
C
the presence of the capitalist economy
D
the presence of the socialist economy
186. A market for a commodity consists of three individuals A, B and C whose demand functions for a commodity are given below. Find out the market demand function.
QA = 40 – 2P
QB = 25.5 – 0.75P
QC = 36.5 – 1.25P
A
Qm = 102 – 2P
B
Qm = 100 – 4P
C
Qm = 102 – 4P
D
Qm = 100 – 2P
190. According to Domar`s growth model, the marginal output-capital ratio will be ______ average output-capital ratio if output-capital ratio remains constant.
A
equal to
B
greater than
C
lower than
D
lower than or equal to
192. Suppose there are two goods, X and Y. What will be the effect of fall in the price of good X on the budget constraint line?
A
Intercept on the Y-axis will shift downwards
B
Intercept on the X-axis will shift to the left
C
Intercept on the X-axis will shift to the right
D
Intercept on the X-axis will remain unchanged
196. Which agricultural measure aims at consolidating all plots of land owned by a particular farmer in different places of the village by sanctioning land at one place?
A
Institutions involving people’s participation in planning
B
Technological measures
C
Food security system
D
Cooperation and consolidation of holdings
197. The compulsory payment levied on the persons or companies to meet the expenditure incurred on conferring common benefits upon the people of a country is known as ______.
A
revenue
B
finance
C
tax
D
fee
198. In which money market, uncollateralised borrowing and lending of funds take place on overnight basis?
A
Commercial Paper Market
B
Call Money Market
C
Treasury Bill Market
D
The Repo Market
199. Which factor induces the movement of the economy from one production possibility curve to another?
A
Fuller employment of the given resources
B
Partial employment of the given resources
C
Increase in resources
D
Decrease in resources
200. Which factor determines the incidence of taxes borne by the producer and the consumer?
A
Both cross elasticity and income elasticity
B
Neither cross elasticity nor income elasticity
C
Both elasticity of demand as well as elasticity of supply
D
Neither elasticity of demand nor elasticity of supply
201. In stage 3 of law of variable proportions, the total product ______ and the total product curve slopes ______.
A
rises, downward
B
rises, upward
C
declines, downward
D
declines, upward
202. Which measure of macroeconomic stabilisation programme stressed that containment of public expenditure is essential, but the government`s capital expenditures in key social sectors must not be curtailed?
A
Fiscal correction
B
Improving the balance of payments position
C
Control of inflation
D
Disinvestment
204. Which model seeks to determine the unique rate at which investment and income must grow so that full employment level is maintained over a long period of time?
A
Harrod and Domar model
B
Lewis model
C
Solow model
D
Endogenous growth model
207. Which expenditure is categorised as Developmental Expenditure?
A
Expenditure on irrigation projects
B
Expenditure on civil administration
C
Expenditure on defence
D
Interest on public debt
209. Which committee pointed out that the concept of poverty is associated with socially perceived deprivation with respect to basic human needs?
A
Savarkar committee
B
Rangarajan committee
C
Tendulkar committee
D
Ambedkar committee
210. If the price index for the current year is 150 and national income at current price is Rs. 1,50,000 crores, then calculate the national income at constant price.
A
Rs. 1,000 crores
B
Rs. 1,500 crores
C
Rs. 1,50,000 crores
D
Rs. 1,00,000 crores
214. As per the government budget, the interest payments are estimated at Rs. 10,000 crores, which is 40 percent of primary deficit. Calculate fiscal deficit.
A
Rs. 35,000 crores
B
Rs. 38,000 crores
C
Rs. 44,000 crores
D
Rs. 40,000 crores
215. What represents the difference between the price that one is willing to pay and the price one actually pays for a particular product?
A
Deadweight loss
B
Producer surplus
C
Consumer surplus
D
Total surplus
216. Which market is characterised by competition among the few firms producing differentiated products?
A
Monopolistic competition
B
Differentiated oligopoly
C
Perfect competition
D
Pure oligopoly
218. Which condition holds for a commodity when the consumer is in equilibrium?
A
Marginal utility is equal to the price
B
Marginal utility is lower than or equal to the price
C
Marginal utility is greater than the price
D
Marginal utility is lower than the price
219. Which phase of Law of Variable Proportions has been ruled out on the grounds of technical inefficiency?
A
Diminishing returns to a factor
B
Constant returns to a factor
C
Increasing returns to a factor
D
Negative returns to a factor
222. Which five-year plan noted that industrial production had increased by about five times during that period?
A
Fourth five-year plan
B
First five-year plan
C
Second five-year plan
D
Sixth five-year plan
224. The combinations of two goods lying on the production possibility curve are attainable if the given resources are ______ and also used with _____
A
fully employed, productive inefficiency
B
fully employed, productive efficiency
C
partially employed, productive efficiency
D
partially employed, productive inefficiency
225. The following demand function for readymade trousers in a town is given as: Q = 2000 + 15Y – 5.5 P where Y is income in thousands of rupees. Find the income elasticity of demand when P = 150 and per capita income in the city is Rs. 15000.
A
0.25
B
0.125
C
0.2
D
0.16
226. According to Joan Robinson, what represents a mythical state of affairs which is not likely to obtain in any actual economy?
A
Golden age
B
Natural rate of growth
C
Warranted rate of growth
D
Dynamic rate of growth
227. Which employment programme was designed to provide self-employment to more than a million educated unemployed youth by setting up of seven lakh micro-enterprises under the Eighth five year plan?
A
Prime Minister`s Rozgar Yojana
B
Swarana jayanti Gram Swarozgar Yojana
C
National Rural Employment Programme
D
SwaranaJayanti Shahari Rozgar Yojana
228. Under which structural reforms, the Indian government formally devalued rupee by 18-19 percent in July 1991 to restore international competitiveness?
A
Trade and capital flows reforms
B
Industrial deregulation
C
Financial sector reforms
D
Public sector reforms
229. All the expenditure of government which promote economic growth are called _____
A
developmental expenditure
B
revenue expenditure
C
non-developmental expenditure
D
capital expenditure
231. If Rs. 600 crores is invested in a year and output-capital ratio is 0.5, then calculate the growth in output during the year
A
Rs. 300 crores
B
Rs. 900 crores
C
Rs. 600 crores
D
Rs. 1200 crores
232. According to Invisible Hand Theorem, market economy and price mechanism ensure the achievement of the ______ satisfaction of human`s wants with a ______ sacrifice.
A
minimum, minimum
B
minimum, maximum
C
maximum, maximum
D
maximum, minimum
233. What will be the effect of an increase in wealth of an individual on his demand curve for a good?
A
Rightward shift in the demand curve
B
Upward movement along the same demand curve
C
Leftward shift in the demand curve
D
Downward movement along the same demand curve
234. An isoquant slopes usually:
A
downward to the left
B
downward to the right
C
upward to the right
D
upward to the left
downward to the right
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Wrong Answered :
235. The consumer is in equilibrium at a point where the budget line:
A
is above an indifference curve
B
is below an indifference curve
C
is tangent to an indifference curve
D
cuts an indifference curve
is tangent to an indifference curve
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Wrong Answered :
236. Which one is not an assumption of the theory of demand based on analysis of indifference curves:
A
given scale of preferences as between different combinations of two goods
B
diminishing marginal rate of substitution
C
constant marginal utility of money
D
consumers would always prefer more of a particular good to less of it, other things remaining the same
constant marginal utility of money
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Wrong Answered :
237. The budget line is also known as the:
A
iso-utility curve
B
production possibility line
C
isoquant
D
consumption possibility line
consumption possibility line
Correct Answered :
Wrong Answered :
238. People`s Plan Campaign, also known as “Sabki Yojana Sabka Vikas” is associated with:
A
Gram Panchayat Development Plans
B
Urban Development Plans
C
JJM
D
None of the above
Gram Panchayat Development Plans
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Wrong Answered :
239. GDP at factor cost exceeds GDP at market price:
A
When the factor income from abroad is negative
B
When depreciation on fixed capital exceeds income in investment
C
When direct tax exceeds indirect tax
D
When subsidies exceeds indirect taxes
When subsidies exceeds indirect taxes
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Wrong Answered :
240. Which of the following methods is/are used for measuring national income:
A
Output method
B
Expenditure method
C
Income method
D
All of above
All of above
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Wrong Answered :
241. Higher PPC curve indicates:
A
More production of both the things with increase in technology or factor inputs supply
B
More production of one at the expense of other
C
More production of one items at the expense of other with increase in technology or factor input supply
D
Less than full employment situation
More production of both the things with increase in technology or factor inputs supply
Correct Answered :
Wrong Answered :
242. Which of these are outside the domain of macro economics:
A
Consumer behavior
B
National income
C
Economic growth
D
Balance of payment and trade
Consumer behavior
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Wrong Answered :
243. The terms Micro economic and Macro economics were coined by:
A
Professor A Samulson
B
Giffen
C
Prof. Ragner Frisch
D
Eagle
Prof. Ragner Frisch
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Wrong Answered :
244. Market equilibrium of a commodity is determined by:
A
Balancing of demand and supply position
B
Aggregate demand
C
Aggregate supply
D
Government intervention
Balancing of demand and supply position
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Wrong Answered :
245. Oligopoly market is known for:
A
Price flexibility
B
Price rigidity
C
Price discrimination
D
All the three
Price rigidity
Correct Answered :
Wrong Answered :
246. In the short run if the price is above the average total cost in a monopolistic competitive market, the firm makes:
A
Profits and new firms join the market
B
Profit and bar entry to new firms
C
Makes losses and exit the market
D
Quick profit and disappears
In the short-term, it is possible for economic profits to be positive, zero, or negative. When price is greater than average total cost, the firm is making a profit.
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Wrong Answered :
247. Which of the following is not a method of measurement of price elasticity of demand in economics:
A
Expenditure method
B
Double method
C
Point method
D
Arc method
Double method
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Wrong Answered :
248. Luxury goods have______ degree of elasticity:
A
High
B
Low
C
Moderate
D
Completely inelastic
Compared to essential goods, luxury items are highly elastic. Goods with many alternatives or competitors are elastic because, as the price of the good rises, consumers shift purchases to substitute items. Incomes and elasticity are related—as consumer incomes increase, demand for products increases as well.
Correct Answered :
Wrong Answered :
249. A Scheduled Bank is one which is included in the
A
II Schedule of Banking Regulation Act
B
II Schedule of Constitution
C
II Schedule of Reserve Bank of India Act
D
None of the above
Commercial banks are classified into two:
(a) Scheduled banks and
(b) other banks. A scheduled bank is one which is included in the second schedule of Reserve Bank of India Act, 1934.
A scheduled bank should comply with the following terms:
(i) It must have paid up capital and reserves as specified; and
(ii) the activities to be carried out should not be detrimental to the interests of the depositors; and
(iii) it should be incorporated under the Companies Act, 1956, that is, it should not be the sole trader for
Correct Answered :
Wrong Answered :
250. National income refers to
A
money value of goods and services produced in a country during a year.
B
money value of stocks and shares of a country during a year.
C
money value of capital goods produced by a country during a year.
D
money value of consumer goods produced by a country during a year.
National Income is one of the basic concepts in macroeconomics. National Income means the total income of the nation. The aggregate economic performance of the whole economy is measured by the national income data. National Income refers to the money value of all final goods and services produced by the normal residents of a country while working both within and outside the domestic territory of a country in an accounting year. National Income also includes net factor income from abroad. Symbolically, Y = PG + PS, where, Y = National Income; P = Price; G = Goods; and S = Service.
Correct Answered :
Wrong Answered :
251. The proceeds of income tax go to
A
Central Government
B
State Government
C
Centre and States
D
Corporation authorities
The proceeds of income tax are compulsorily shareable between the Centre and the States. It is imposed and collected by the Central government but the proceeds are shared between the both. The share of the states in the net proceeds of income tax has varied from 55 per cent as under the First Finance Commission to 85 per cent as under the ninth Commission. regarding criterion for fixation of the shares of individual states, the percentage of the net proceeds of income tax assigned to them, the first to seventh finance commissions recognised ‘population’ and contribution to be the relevant factors. So a major portion of the proceeds of income tax goes to the states. But, the truth is they are shared between the centre and the states.
Correct Answered :
Wrong Answered :
252. To achieve high rates of growth of national output, the economy has to
A
reduce the rate of growth of population
B
borrow foreign capital
C
step up the rate of savings
D
increase the rate of investment and reduce the capital output ratio
The immediate effect of devoting a larger share of national output to investment is that the economy devotes a smaller share to consumption; that is, “living standards” as measured by consumption fall. The higher investment rate means that the capital stock increases more quickly, so the growth rates of output and output per worker rise. According to Smith, in a developing economy, both income level and capital stock rise. In addition to this, the rate of capital accumulation also shows a tendency to increase. This leads to increase in the capital stock in successive periods as investment keeps on increasing. Another important factor which contributes to the progress of an economy is the successive decline in the incremental capital-output ratio due to the influence of capital on the productivity of labour
Correct Answered :
Wrong Answered :
253. The main source of revenue for a State Government in India is
A
Sales tax
B
Excise duty
C
Income tax
D
Property tax
The principal source of States own tax revenues is sales tax which accounts for about 60 per cent of the total. The other major components of States own tax revenues according to their revenue share are State excise, registration and stamp duty, motor vehicle and passenger tax, electricity duty, land revenues, profession tax, entertainment taxes and other sundry taxes. In the wake of economic reforms, several States competitively announced various tax concessions, especially sales tax concessions, to attract private investments. These tax wars resulted in considerable reduction in the buoyancy of growth of tax revenues of the States without commensurate gains in terms of private investment.
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Wrong Answered :
254. What is the animal on the insignia of the RBI ?
A
Lion
B
Tiger
C
Panther
D
Elephant
The logo of the Reserve Bank of India comprises a tiger walking underneath a palm tree. When RBI was created, it was decided that the reverse of Double Mohur, the Lion and Palm design should be used as the emblem of RBI. The last minute modification was made introducing Tiger instead of Lion
Correct Answered :
Wrong Answered :
255. The symbol of Reserve Bank of India is
A
Capitol of Asokan Pillar
B
Kuber with a purse of money
C
Tiger before a Palm tree
D
A dog sitting in a defensive state
The logo of the Reserve Bank of India comprises a tiger walking underneath a palm tree. It is contended that the Reserve Bank of India copied the tiger and palm tree symbol from the gold Mohur issued by the East India Company in the 19th century. The double Mohur of William IV had a nice reverse, which was a symbol of Lion and a Palm tree. When RBI was created, it was decided that the reverse of Double Mohur, the Lion and Palm design should be used as the emblem of RBI. The last minute modification was made introducing Tiger instead of Lion
Correct Answered :
Wrong Answered :
256. Which authority recommends the principles governing the grants in-aid of the revenues of the states out of the Consolidated Fund of India?
A
Public Accounts Committee
B
Union Ministry of Finance
C
Finance Commission
D
Inter-State Council
Finance Commission of India is established under Article 280 of the Indian Constitution by the President of India to define the financial relations between the centre and the state. It is entrusted with the task of distribution of net proceeds of taxes between Centre and the States, to be divided as per their respective contributions to the taxes; determine factors governing Grants-in Aid to the states and the magnitude of the same; and work with the State Finance Commissions and suggest measures to augment the Consolidated Fund of the States so as to provide additional resources to Panchayats and Municipalities in the state.
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Wrong Answered :
257. What is NABARD`s primary role?
A
to provide term loans to state co-operative banks
B
to assist state governments for share capital contribution
C
to act as re-finance institution
D
All of the above
NABARD is the apex institution in the country which looks after the development of the cottage industry, small industry and village industry, and other rural industries. Its other functions are: to coordinate the rural financing activities of all institutions engaged in developmental work at the field level and maintain liaison with Government of India, State Governments, Reserve Bank of India (RBI) and other national level institutions concerned with policy formulation; to re-finance the financial institutions which finances the rural sector; to regulate the cooperative banks and the RRB’s, etc. NABARD’s refinance is available to State Co-operative Agriculture and Rural Development Banks (SCARDBs), State Co-operative Banks (SCBs), Regional Rural Banks (RRBs), Commercial Banks (CBs) and other financial institutions approved by RBI.
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Wrong Answered :
258. The Indian economy can be most appropriately described as a :
A
Capitalist economy
B
Socialist economy
C
Traditional economy
D
Mixed economy
There are primarily two types of economies capitalist or free market economy and socialist economy. Mixed economy is a median between these two main economies taking some characteristics of either of them. We have adopted mixed economy in India. All the basic industries such as railways, post and telegraph, defence production, atomic energy etc. are in the public sector. Industries dealing with consumer goods are in the private sector. India has a pubic private partnership economy
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259. Antyodaya Programme is associated with :
A
liberation of bonded labour
B
bringing up cultural revolution in India
C
demands of textile labourers
D
upliftment of the poorest of the poor
Antyodaya Anna Yojana (AAY) is a centrally sponsored scheme which was launched on December 25, 2000 for one crore of the poorest families. It is an important milestone in providing foodgrains to the poor. It contemplated providing 25 kg. of foodgrains per month at highly subsidized rates of Rs. 2 per kg. for wheat and Rs. 3 per kg. for rice to each Antyodaya family. This scheme reflects the commitment of the Government of India to ensure food security for all, create a hunger free India in the next five years and to reform and improve the Public Distribution System so as to serve the poorest of the poor in rural and urban areas.
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Wrong Answered :
260. The decimal system of Indian currency was started in
A
1950
B
1955
C
1957
D
1960
India became independent on 15 August 1947 and was left with a legacy of non-decimal coinage. One rupee was divided into 16 annas or 64 pice, with each anna therefore equal to 4 pice. In 1957, India shifted to the decimal system, but for a short period both decimal and non-decimal coins were in circulation. To distinguish between the two pice, the coins minted between 1957 and 1964 have the legend “Naya Paisa” (“new” paisa). The denominations in circulation were 1, 2, 5, 10, 20, 25, 50 (naya paise and one rupee which remained as the same pre-decimal value. Therefore pre-decimal coins of one, half and quarter rupees could remain in circulation after decimalisation. The rupee remained unchanged in value and nomenclature. It, however, was now divided into 100 paisa instead of 16 annas or 64 pice. For public recognition, the new decimal paisa was termed ‘Naya Paisa’ till 1 June 1964 when the term Naya was dropped.
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Wrong Answered :
261. Which of the following economic resources can not be converted into commodity:
A
Land
B
Labour
C
Capital
D
All of these can be converted into Commodity.
Labour cannot be converted into commodity.
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262. Subsidies are used to encourage................of a commodity:
A
Consumption
B
Production
C
Saving
D
Inflation
When government subsidies are implemented to the supplier, an industry is able to allow its producers to produce more goods and services. This increases the overall supply of that good or service,
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Wrong Answered :
263. Taxes are used to discourage............of a commodity:
A
Consumption
B
Production
C
Saving
D
Inflation
Some taxes are charged to discourage a behavior or purchase of certain goods.
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Wrong Answered :
264. An Economy is producing efficiently when not individuals economic welfare can be improved unless:
A
Supply is increased
B
Demand is increased
C
Some one else is Improved
D
Someone else is made worseoff
An economy is in a Pareto Optimal state when no further changes in the economy can make one person better off without at the same time making another worse off.
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Wrong Answered :
265. The branch of Economics concerned with the behavior of markets, firms and Households is known as:
A
Microeconomics
B
Macroeconomics
C
Econometerics
D
Bayesian Economics
Microeconomics is the study of individuals, households and firms behavior in decision making and allocation of resources. It generally applies to markets of goods and services and deals with individual and economic issues.
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Wrong Answered :
266. The branch of economics concerned with the use of statistical methods to obtain empirical result for economic relations is known as:
A
Microeconomics
B
Macroeconomics
C
Econometerics
D
Keynesian Economics
Econometrics is the application of statistical methods to economic data and is described as the branch of economics that aims to give empirical content to economic principles.
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Wrong Answered :
267. The branch of Economics concerned with overall performance of the economy is known as:
A
Microeconomics
B
Macroeconomics
C
Econometerics
D
Keynesian Economics
Macroeconomics is the branch of economics that deals with the structure, performance, behavior, and decision-making of the whole, or aggregate, economy.
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Wrong Answered :
268. The Central role of markets is to determine the:
A
Quality of Goods
B
Quantity of Goods
C
Level of Income
D
Price of Goods
The role of the market is defined by two laws: the law of supply and the law of demand. ... The market includes consumers and producers, who together determine the price of a product. Prices affect what is produced, and who can afford what is produced.
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269. The Value of the goods or service forgone by choosing another Investment is called:
A
Opportunity cost
B
Purchasing Power Parity
C
Disposable Income
D
Consumer Price Index
Opportunity cost is the value of the best alternative forgone in making any choice.
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270. Which Economic Term is used to represent Inequality in Income distribution:
A
GDP
B
GNP
C
GINI
D
HDI
The Gini index, or Gini coefficient, is a measure of the distribution of income across a population developed by the Italian statistician Corrado Gini in 1912. It is often used as a gauge of economic inequality, measuring income distribution or, less commonly, wealth distribution among a population.
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271. Inputs are combined with technology to produce outputs. the fundamental inputs(also called factors of production) are:
A
Land and Capital
B
Land and Labour
C
Land, Labour and Capital
D
Land, Labour, Capital and Investment
Factors of production are inputs used to produce an output, or goods and services. They are resources a company requires to attempt to generate a profit by producing goods and services. Factors of production are divided into four categories: land, labor, capital and entrepreneurship.
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272. When analyzing the impact of a variable on the economic system, the other things :
A
Must be kept constant
B
Must also be analyzed
C
Must not be taken into consideration
D
None of these
The economic system operates without staffing how they should operate. ... Every law is subject to clause “other things being Constant”
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273. Who is considered the founder of Macroeconomics?
A
Adam Smith
B
John keynes
C
Friedrich Hayek
D
Milton Friedman
John Maynard Keynes is the founding father of macroeconomics.
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274. Who is considered the founder of Microeconomics?
A
Adam Smith
B
John keynes
C
Friedrich Hayek
D
Milton Friedman
Adam Smith is considered the founder of Microeconomics in general.
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275. Consider a world without scarcity of resources. Then what would be the consequences?
A
All Prices would be Zero
B
Markets would be unnecessary
C
Economics would no longer be a useful Subject
D
All of the Above
In theory, if there was no scarcity the price of everything would be free, so there would be no necessity for supply and demand. There would be no need for government intervention to redistribute scarce resources. ... But, if there is no scarcity, then a fall in economic growth would be meaningless.
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276. The fundamental concept of Economics about resources is that the resources are:
A
Equally distributed
B
Unequally Distributed
C
Scarce
D
Unlimited
The fundamental concept of Economics about resources is that the resources are. ... Consider a world without scarcity of resources.
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277. Employees of a factory are likely to receive increment in wages when ................is/are increasing:
A
Imports
B
Output
C
Labour supply
D
Unemployment
To increase potential output , Factories had to pay higher wages to get workers to work
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278. Increase in supply usually .............the price and .............the quantity demanded
A
lowers, lowers
B
raises, raises
C
lowers, raises
D
raises, lowers
Generally, as price increases, people are willing to supply more and demand less and vice versa when the price falls. The theory is based on two separate "laws," the law of demand and the law of supply. The two laws interact to determine the actual market price and volume of goods on a market.
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279. Goods which are produced in order to produce other goods are known as:
A
Capital
B
Final Goods
C
Resources
D
Investments
Capital goods are physical assets that a company uses in the production process to manufacture products and services that consumers will later use. Capital goods include buildings, machinery, equipment, vehicles, and tools. Capital goods are not finished goods, instead, they are used to make finished goods.
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280. Which sector currently contributes most of the Gross Domestic Product of India?
A
Manufacturing
B
Agriculture
C
Services
D
Marine
tertiary sector. Tertiary sector mainly deals with services. Hence, tertiary sector is also known as service sector of the economy. Service sector is the largest contributor to GDP in India.
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281. Which of the following problem arises when there is asymmetric information with regard to actions by the government among developing countries?
A
Adverse Selection
B
Moral Hazard
C
Rationality
D
Agency Problem
Asymmetric information can lead to adverse selection, incomplete markets and is a type of market failure. When looking at a car, a buyer can only see the externals and cannot know how reliable the engine is.
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282. Payment for manmade factors such as buildings, machineries, etc. is an example of which type of rent?
A
Quasi
B
Recardian
C
Economic
D
Normal
Quasi rent is the earning of capital equipments such as machineries, buildings etc., which are inelastic in supply, in short run.
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283. What is referred to as change in the revenue resulting from the employment of an extra unit of the factor?
A
Marginal Revenue Product
B
Marginal expense
C
Marginal Factor Cost
D
Marginal Budget
Change in revenue resulting from the employment of an extra unit of the factor is called Marginal Revenue Product (MRP) and the change in cost brought about by hiring an extra unit of the factor is called Marginal Factor Cost (MFC
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284. When the price of a good or product decreases, the relative price of that good makes buyer more eager to buy that good or product This effect is referred as
A
Income
B
Demand
C
Substitution
D
Supply
Demand refers to the amount of goods and services that buyers are willing to purchase. Typically, demand decreases with increases in price, this trend can be graphically represented with a demand curve. Demand can be affected by changes in income, changes in price, and changes in relative price.
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285. Which of the following tool measures income distribution that identifies the share of the nation’s income earned by different segments of the population?
A
Equilibrium curve
B
Multiplier
C
Demand curve
D
Gini-Lorenz Curve
Gini-Lorenz curve portrays the graph between cumulative shares of people from lowest to highest income versus cumulative share of income earned. It has a line of perfect equality in distribution of wealth with a slope equal to 1 against a curved line which represents unequal distribution of wealth (Lorenz curve). The area between the two lines is the Gini coefficient which measures the degree of inequality. Higher the Gini coefficient greater is the inequality and vice versa.
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286. Short term economic growth is mainly driven by the level of
A
Aggregate Supply
B
Aggregate Demand
C
Difference between Export and Import
D
Domestic Consumption
In the short term, economic growth is caused by an increase in aggregate demand (AD). If there is spare capacity in the economy, then an increase in AD will cause a higher level of real GDP.
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287. Products such as jewels, diamonds and so on confer distinction on the part of the user, where in consumers tend to buy more goods when the price increases, and vice versa. This is an example of which type of good?
A
Veblen Goods
B
Giffen Goods
C
Substitute Goods
D
Complementary Goods
Products such as jewels, diamonds and so on, confer distinction on the part of the user. ... Such products are called Veblen good.
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288. Which of the following technique is used in economics to get market demand curve?
A
Vertical Summation
B
Equilibrium
C
Horizontal summation
D
Interdependency
Horizontal (or lateral) summation
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289. Which of the following tool is used as one way to measure the inequalities in the distribution of income and wealth in different countries?
A
Correlation Coefficient
B
Gardey Coefficient
C
Gini Coefficient
D
Phi Coefficient
The Lorenz curve is a commonly used metric that allows for the quick and visual comparison of inequality across countries. The Gini coefficient uses information from the entire income distribution and is independent of the size of a country`s economy and population.
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290. Under which of the following System there is no business cycle since all economic activities are controlled by the central planners?
A
Communist
B
Socialist
C
Radicals
D
Marxist
The command economy is a key feature of any communist society. ... Also known as a planned economy, command economies have as their central tenet that government central planners own or control the means of production within a society.
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291. Which of the following is considered as factor of production as economic resources can exist in an economy and non -transferable into consumer goods?
A
Knowledge
B
Entrepreneurship
C
Land
D
Capital
The factors of production are resources that are the building blocks of the economy; they are what people use to produce goods and services. Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship.
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292. Who originated the technique of indifference curve in England in 1881?
A
Fransis. Y. Edworth
B
Adam Smith
C
Alfred Marshall
D
A.C. Pigou
The theory of indifference curves was developed by Francis Ysidro Edgeworth, who explained in his 1881 book the mathematics needed for their drawing; later on, Vilfredo Pareto was the first author to actually draw these curves, in his 1906 book.
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293. Which of the following situation occurs when aggregate demand is growing at an unsustainable rate leading to increased pressure on scarce resources and a positive output gap?
A
Cost Pull Inflation
B
Cost Push Inflation
C
Demand Push Inflation
D
Demand pull inflation
Demand pull inflation occurs when aggregate demand and output is growing at an unsustainable rate leading to increased pressure on scarce resources and a positive output gap
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294. Restrictions to entry is a characteristic of which of the following market?
A
Perfect Market
B
Imperfect Market
C
Totally perfect
D
Oligopoly
In an oligopoly, there are only a few firms that make up an industry. This select group of firms has control over the price and, like a monopoly; an oligopoly has high barriers to entry. Main characteristic of oligopoly is interdependence of firms in the industry
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295. Which growth model was adopted in the 1st Five Year Plan?
A
Harrod - Domar
B
Harrold - Dimmer
C
Doma - Harro
D
Dimman - Harrod
The First Five-year Plan was launched in 1951 which mainly focused in the development of the primary sector. The First Five-Year Plan was based on the Harrod–Domar model with few modifications.
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296. Which of the following curve means that an increase in the wages induces workers to increase the quantity of labour they supply?
A
Upward
B
Downward
C
Vertical
D
Horizontal
An upward-sloping labor supply curve means that an increase in the wage induces workers to increase the quantity of labor they supply.
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297. Under price discrimination mechanism, Dispose of surplus stock is considered as what?
A
Constraint
B
Feature
C
Objective
D
Criteria
Price discrimination charges customers different prices for the same products based on a bias toward groups of people with certain characteristics—such as educators versus the general public, domestic users versus international users, or adults versus senior citizens.
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298. Which of the following is measured against the average age that the individual is expected to reach?
A
Low life expectancy
B
Low standard of education
C
Poor health care
D
Unemployment
Life expectancy is a statistical measure of the average time an organism is expected to live, based on the year of its birth, its current age, and other demographic factors including sex. The most commonly used measure is life expectancy at birth, which can be defined in two ways.
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299. Which of the following is used to refer to the actions of central banks to achieve macroeconomic policy objectives such as price stability, full employment, and stable economic growth?
A
Fiscal policy
B
Monetary policy
C
Corporate policy
D
Government policy
Monetary policy refers to the actions of central banks to achieve macroeconomic policy objectives such as price stability, full employment, and stable economic growth. Fiscal policy refers to the tax and spending policies of the federal government.
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300. Which of the following is a narrow indicator of economic development that excludes non-economic indicators such as leisure time, access to health, education, environment, freedom or social justice?
A
NNP
B
GNP
C
GDP
D
Per Capita income
Increase in output of goods and services and in income does not imply an improvement in the standard of living of the people because GDP is a narrow indicator of economic development that does not include non-economic indicators such as leisure time, access to health, education, environment, freedom or social justice.
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301. Which of the following is NOT a type of inflation on the basis of speed?
A
Running inflation
B
Scrolling inflation
C
Galloping inflation
D
Walking inflation
Types Of Inflation On The Basis Of Speed:
1.Creeping inflation: the inflationary rate is less than 2% that means prices are increasing gradually.
2.Walking inflation: the inflationary rate of a country is around 5% little more than creeping.
3.Running inflation: the rate of growth in prices are more i.e. the inflation is growing at the rate of 10%.
4.Galloping inflation: higher growth rate compared to the earlier stages i.e. the change is around 25%.
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302. The neoclassical model of economic growth
A
assumes that there is a single homogenous good produced by capital and labor
B
was originally conceived of by Robert Solow
C
was originally conceived of by Adam Smith
D
assumes that there is a single homogenous good produced only by labor
Robert Solow and Trevor Swan first introduced the neoclassical growth theory in 1956. The theory states that economic growth is the result of three factors—labor, capital, and technology
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303. Which economic concept deals with relationship between inflation and unemployment
A
Philips Curve
B
Marshall Concept
C
Demand and Supply
D
Wants and Demands
The Phillips curve shows the relationship between inflation and unemployment. In the short-run, inflation and unemployment are inversely related; as one quantity increases, the other decreases. In the long-run, there is no trade-off.
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304. The statement "Underdeveloped countries are the slums of the World Economy" is given by
A
A. N Cairncross
B
David Ricardo
C
Ragnar Nurkse
D
G. Mrydal
This statement was given by Cairncross a famous economist whose findings are basis for macroeconomic study in the current economic world.
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305. What is National disposable income?
A
It refers to acquiring of final goods and services not through regular market transactions
B
It refers to the income which is available to the whole economy for spending or disposal
C
It refers to the flow of goods and services between sectors of economy
D
It refers to the flow of money between sectors of economy
National disposable income = National income + Net indirect taxes + Net current transfers from rest of the world simply put. Net Disposable Income Is the Income which is at the disposal of the nation as a whole for spending or disposal.
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306. The government introduced an agricultural starategy which gave rise to green revolution in india, this is with regard to which plan?
A
Sixth Five Year Plan
B
Second Five Year Plan
C
Third Five Year Plan
D
First Five Year Plan
The third five-year plan was implemented during the 1961-1966 time period. It was emphasized on the need for growth in agriculture and hence production
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307. In 1944, the Gandhian plan based upon Gandhian philosophy was presented by
A
Shriman Narayan Agarwal
B
P. Mahanbolish
C
Indira Gandhi
D
Jawahar Lal Nehru
Gandhian Plan: Sriman Narayan Agarwal formulated `Gandhian Plan` in 1944.
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308. Microeconomics is concerned with
A
the economy as a whole
B
the electronics industry
C
the study of individual economic behaviour
D
the interactions within entire econmy
Microeconomics is a branch of economics that studies the behaviour of individuals and firms in making decisions regarding the allocation of limited resources.
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309. Which method of calculating National Income relates to different factors-land, labor, capital and organisation?
A
Income Method
B
Production Method
C
Expenditure Method
D
Source Method
Income method, also known as factor income method, is used to calculate all income accrued to the basic factors of production used in producing national product. Traditionally, there are four factors of production, namely land, labor, capital, and organization.
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310. Rolling Plan was also known as
A
Second Five Year Plan
B
Fourth Five year Plan
C
Fifth Five year Plan
D
Sixth Five year Plan
The Janta Government terminated the fifth five year plan in 1977-78 and launched its own sixth five year plan for period 1978-83 and called it a Rolling Plan.
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311. National Expenditure may be equal to
A
National Income
B
National Income+Taxes
C
National Income - Taxes
D
National Income + National Savings
Total level of expenditure in a national economy, equivalent to its total level of output and total level of income.
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312. The term which is the opposite situation of inflation and is the state of falling of prices and rising of money is
A
Deflation
B
Stagflation
C
Consumption
D
Recession
Inflation is an increase in the general prices of goods and services in an economy. Deflation, conversely, is the general decline in prices for goods and services, indicated by an inflation rate that falls below zero percent.
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313. Which one of the following is CORRECT with reference to econometrics?
A
The application of statistical and mathematical theories to economics
B
Calculations with regard to supply and demand
C
It is a branch of macro economics of mathematical methods
D
It is a branch of micro economics of mathematical methods
Econometrics is the use of statistical methods using quantitative data to develop theories or test existing hypotheses in economics or finance. Econometrics relies on techniques such as regression models and null hypothesis testing. Econometrics can also be used to try to forecast future economic or financial trends.
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314. An underdeveloped economy is characterized by
A
High per capita real income
B
Large proportion of labour force in the tertiary sector
C
State of deprivation of large proportion of population
D
Low per capita real income
An underdeveloped economy is characterised by state of deprivation of large proportion of population. Apart from that, other characteristics of an underdeveloped economy are low per capita income, a higher proportion of labour force involved in primary sector activities.
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315. What is the structure or format of TAN?
A
Five Alphabets followed by four digits and an alphabet
B
Four Alphabets followed by five digits and an alphabet
C
Four alphabets follwed by six digits
D
Five alphabets followed by five digits
TAN structure is as follows: RAJA99999B: First four characters are letters, next five are numerals, last character is a letter. Each tax deductor is uniquely identified by a TAN. The first three characters represent the city or state where the TAN was issued.
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316. Whose opinions have revolutionised the scope of macro economics?
A
Adam Smith
B
J.M. Keynes
C
Marshall
D
Pigou
J.M. Keynes opinions have revolutionised the scope of macro economics.
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317. The economic reform, popularly known as Liberalization, Privatization, and Globalization was aimed at making the Indian economy as fastest growing economy and globally competitive. This process started in the
A
Early 1990s
B
Early 1980s
C
Early 2000s
D
Late 1980s
Early 1990s
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318. Which type of inflation is caused due to excessive growth of money supply in the economy?
A
Cost push inflation
B
Cost pull inflation
C
Demand pull inflation
D
Demand push inflation
According to Keynesian economists, inflation comes in two varieties: demand-pull and cost-push. Demand-pull inflation occurs when consumers demand goods, possibly because of the larger money supply, at a rate faster than production. Cost-push inflation occurs when the input prices for goods tend to rise, possibly because of a larger money supply, at a rate faster than consumer preferences change.
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319. According to the economist Coulborn, too much money chasing too few goods is
A
Globalization
B
Inflation
C
Liberalization
D
Economic growth
According to economist Coulborn, "too much money chasing too few goods" is a description of inflation. This is a definition of it as a monetary phenomenon rather than a phenomenon of rising prices. This is a common view perspective of the situation.
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320. The cost inflation index is mainly used to compute :
A
Business income
B
Long term capital gain
C
Short term capital gain
D
Income from other sources
A Cost Inflation Index table is used to calculate the long term capital gains from a transfer or sale of capital assets.
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321. When a commodity is sold at a lower price in "Foreign markets: and at a higher price in "Domestic markets" then the strategy is known as
A
Dumping
B
Multi Plant Monopoly
C
Peak load Pricing
D
Price Ceiling
Dumping is a term used in the context of international trade. It`s when a country or company exports a product at a price that is lower in the foreign importing market than the price in the exporter`s domestic market.
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322. The Gram Panchayats have been mandated for the preparation of Gram Panchayat Development Plans (GPDP). The People`s plan campaign for preparing GPDP for 2020-21 was initiated under
A
Sabki Yojna Sabka Vikas
B
Pradhan Mantri Kaushal Vikas Yojana
C
Pradhan Mantri Adhrash Gram Yojana
D
Mission Indradhanush
The People`s Plan Campaign commenced on 1st May to 15th June, 2020 for preparing GPDP for 2020-21. The campaign initiated under "Sabki Yojana Sabka Vikas" will be an intensive and structured exercise for planning at Gram Sabha through convergence between Panchayati Raj Institutions (PRIs) and concerned Line Departments of the State
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323. Which of the following in example of variable cost?
i. Rent
ii. Utility cost.
iii. Employee salaries
A
Only i
B
Only ii
C
Both i and ii
D
Both ii and iii
#
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324. Which of the following options points to a demand for one product as a consequence of demand for a parent product?
A
Company Demand
B
Composite Demand
C
Short-term Demand
D
Derived Demand
Derived demand—in economics—is the demand for a good or service that results from the demand for a different, or related, good or service. It is a demand for some physical or intangible thing where a market exists for both related goods and services in question. Derived demand can have a significant impact on the derived product`s market price.
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325. From the following options, indentify the reason, best suited why underdeveloped countries make a fiscal policy?
A
Reduces labor taxes, especially at low income levels.
B
Accelerate the rate of capital formation and investment
C
Provide well-designed tax incentives that reduce the cost of capital
D
Increase the potential output as a major advanced and emerging market economies.
The foremost aim of fiscal policy in underdeveloped countries is to mobilize resources in the private and public sectors. ... Therefore, the governments of such countries through forced savings pushes the rate of investment and capital formation which in turn accelerates the rate of economic development.
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326. When two goods are perfectly complementary, the indifference curve
A
intersect each other
B
is L shaped
C
is a straight line
D
is concave at the origin