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- Question 1 of 50
In calculating National Income which of the following is included?
National income means the value of goods and services produced by a country during a financial year. Thus, it is the net result of all economic activities of any country during a period of one year and is valued in terms of money.
- Question 2 of 50
Bank-rate is the rate at which:
Bank rate is the rate charged on the loans offered by the Central bank to the commercial banks without any collateral. It is also considered as the rate at which the central bank discounts the bills of the commercial banks. Bank rate is a quantitative credit control measure under the monetary policy of the government as it controls the overall supply of money in the economy.
- Question 3 of 50
ECO MARC is a symbol related to:
Eco mark is a certification mark issued by the Bureau of Indian Standards to products conforming to a set of standards aimed at the least impact on the ecosystem. The marking scheme was started in 1991.
- Question 4 of 50
Consider the following reasons of continuous decline in average land-holding size in India:
- Law of inheritance
- Farm mechanisation
- Desire of land ownership
Pick the correct answer from the options given below:
The size of the landholdings is declining in India due to the shortage of land which has been used for industrial and other purposes. Many land goes to the private sector for setting up big projects. The main factors triggering land fragmentation are inheritance; population growth; land markets; and historical/ cultural background. Owning of land is a social status in India.
- Question 5 of 50
Which of the following sets belong to Central tax?
Taxes imposed by the state government are; Sales Tax and VAT, Professional Tax, Luxury Tax, Entertainment Tax, House tax, Motor Vehicles Tax, Tax on Vehicles Entering State, Tax on Agricultural Income, Tax on Land and Buildings and Tax on Mineral Rights.
- Question 6 of 50
In the law of demand, the statement “Other things remain constant” means:
The law of demand states that other factors remain constant, price and quantity demand of any good and service are inversely related to each other. When the price of a product increases, the demand for the same product will fall.
- Question 7 of 50
A firm is in equilibrium when its:
A firm is said to be in equilibrium when its marginal cost is equal to marginal revenue. A firm in equilibrium enjoys maximum profits if average revenue exceeds marginal cost.
- Question 8 of 50
Given the money wages, if the price level in an economy increases, then the real wages will:
When the price level rises and the money wage rate is constant, the real wage rate decrease (as the purchasing power of their wages is lower) and employment increases. When the price level falls and the money wage rate is constant, the real wage rate increases and employment decreases.
- Question 9 of 50
The difference between visible exports and visible imports is defined as:
The balance of trade is the difference between the monetary value of a nation’s exports and imports over a certain time period.
- Question 10 of 50
What is the Goods and Services Tax (GST)?
Goods and Services Tax (GST) is an indirect tax used in India on the supply of goods and services. It is a comprehensive, multistage, destination-based tax: comprehensive because it has subsumed almost all the indirect taxes except a few state taxes.
- Question 11 of 50
The outcome of ‘devaluation of currency’ is:
The main advantage of devaluation is to make the exports of a country or currency area more competitive, as they become cheaper to purchase as a result. This can increase external demand and improvement in the balance of payment.
- Question 12 of 50
The common currency of 19 European Union member countries is known as:
The euro (symbol €) is the single currency for 19 EU member countries, introduced in 2002 after more than 40 years of treaties and negotiations.
- Question 13 of 50
What is referred to as ‘Depository Services’?
Depository services are services in which the securities of investors are kept in an electronic form just as bank keeps all your cash in its account and provides all services related to the transaction of cash, similarly, we help you out in performing the service through a demat account.
- Question 14 of 50
Industrial exit policy means:
It refers to the right or ability of an industrial unit to withdraw from or leave an industry or in other words to close down.
- Question 15 of 50
Which authority decides about the States’ share in central taxes?
The Finance Commissions are commissions periodically constituted by the President of India under Article 280 of the Indian Constitution to define the financial relations between the central government of India and the individual state governments.
- Question 16 of 50
The ‘Interest Rate Policy’ is a component of:
Monetary policy is the policy adopted by the monetary authority of a nation (RBI) to control either the interest rate payable for very short-term borrowing (borrowing by banks from each other to meet their short-term needs) or the money supply, often as an attempt to reduce inflation or the interest rate, to ensure price stability and general trust of the value and stability of the nation’s currency.
- Question 17 of 50
In the budget figures of the Government of India, fiscal deficit is:
A fiscal deficit is a difference between total expenditure and total receipts. In other words, it is a shortfall in a government’s income compared with its spending. The government that has a fiscal deficit is spending beyond its means.
- Question 18 of 50
Which state has the lowest per capita income in India?
Bihar, Uttar Pradesh, Jharkhand, Manipur, and Assam are the top five states which have the lowest per capita income. The estimated per capita income across the south-western state of Goa was the highest among Indian states at around 430 thousand rupees (in 2020), and was lowest in the northern state of Bihar at over 40 thousand rupees.
- Question 19 of 50
‘Gresham’s Law’ in Economics relates to:
In economics, Gresham’s law is a monetary principle stating that “bad money drives out good”. For example, if there are two forms of commodity money in circulation, which are accepted by law as having similar face value, the more valuable commodity will gradually disappear from circulation.
- Question 20 of 50
A mixed economy works primarily through the:
A mixed economy is partly run by the government and partly as a free market economy. In a mixed economy, government controls part of the economy with restriction and licensing requirements, which includes involvement in such areas as education, courts, roads, hospital care, and postal delivery. The government’s role in a mixed economy can also include financial policies, such as monetary and fiscal policies.
- Question 21 of 50
Which of the following Mahatma Gandhi series of currency notes issued by the RBI has “ecology” depicted on it?
Mahatma Gandhi first featured on currency notes in 1969. Mahatma Gandhi series of ₹100 notes has a picture of Indian Himalayan mountain ranges on its reverse which is of ecological and environmental significance.
- Question 22 of 50
Which country/countries started privatisation of State-owned enterprises as a major State Policy?
The United Kingdom, under Margaret Thatcher started privisation of state-owned enterprises as a major state policy. The Ridley report devised for the Thatcher shadow cabinet, recommended a policy of breaking up the public sector and dismembering unions.
- Question 23 of 50
Which is the Agency the Government has engaged to grade the standardise various agricultural products?
AGMARK is a certification mark employed on agricultural products in India, assuring that they conform to a set of standards approved by the Directorate of Marketing and Inspection under the Ministry of Agricultural and Farmers Welfare.
- Question 24 of 50
What is the purpose of the India Brand Equity Fund?
India Brand Equity Foundation (IBEF) is a Trust established by the Department of Commerce, Ministry of Commerce and Industry, Government of India in 2003 with the objective of promoting and creating international awareness of the Made in India label in markets overseas and to facilitate dissemination of knowledge of Indian products and services.
- Question 25 of 50
Which authority recommends the principles governing the grants-in-aid of the revenues of the States out of the Consolidated Fund of India?
The finance commission recommends the principles governing the grants-in-aid of the revenues of the States out of the Consolidated Fund of India. Finance Commission was established to make recommendations to the president about how the net proceeds of taxes have to be distributed between the Union and the states, as well as how the funds have to be distributed among the states.
- Question 26 of 50
Which of the following Mahatma Gandhi series of currency notes issued by the RBI has a drawing of the ‘Parliament House’ depicted on it?
₹50 among Mahatma Gandhi Series of currency notes issued by the RBI has a drawing of the Parliament House depicted on it.
- Question 27 of 50
What are “Open Market Operations”?
An open market operation (OMO) is an activity by a central bank (RBI) to give liquidity in its currency to a bank or a group of banks.
- Question 28 of 50
Special Drawing Rights (SDR) facility is available at:
Special drawing rights (SDRs) are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund (IMF). SDRs are units of account for the IMF, and not a currency per se. They represent a claim to currency held by IMF member countries for which they may be exchanged.
- Question 29 of 50
What is referred to as “Depository Services”?
A depository is an organization where the securities of an investor are held in electronic form.
- Question 30 of 50
Which of the following groups suffer the most from inflation?
During periods of rising prices, debtors gain and creditors lose. A basic rule of inflation is that it causes the value of a currency to decline over time. In other words, cash now is worth more than cash in the future. Thus, inflation lets debtors pay lenders (creditors) back with money that is worth less than it was when they originally borrowed it.
- Question 31 of 50
An economy is in equilibrium when:
The economy is in equilibrium only when saving is equal to investment. If saving and investment are equal at a time, they will be soon brought into equilibrium by automatic changes in the rate of interest. Given the rate of investment, if saving increases, then the rate of interest will fall. With the decline in the rate of interest, investment demand will rise.
- Question 32 of 50
The best way, a bank can avoid loss is to:
The best way for a bank to avoid loss is to accept sound collateral. In lending agreements, collateral is a borrower’s pledge of specific property to a lender, to secure repayment of a loan.
- Question 33 of 50
If the price of an inferior good falls, its demand:
In economics, the demand for inferior goods decreases as income increases or the economy improves. When this happens, consumers will be more willing to spend on more costly substitutes. Some of the reasons behind this shift may include quality or a change to a consumer’s socio-economic status.
- Question 34 of 50
The Marginal Utility Curve slopes downward from left to right indicating:
The Marginal Utility Curve slopes downward from left to right indicating an inverse relationship between marginal utility and the stock of commodity. Marginal utility diminishes as additional units are consumed, which means that each subsequent unit of a good consumed provides less additional utility.
- Question 35 of 50
How does the consumer benefit with Goods and Services Tax (GST)?
Goods and Services Tax, is a type of tax that is assessed incrementally. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer.
- Question 36 of 50
Capital output ratio of a commodity measures:
Capital output ratio is the amount of capital needed to produce one unit of output.
- Question 37 of 50
In estimating the budgetary deficit, the official approach in India is to exclude:
A budgetary deficit is referred to as the situation in which the spending is more than the income. budgetary deficit is met by the net addition of the treasury bills issued by the RBI and drawing down of cash balances kept with the RBI. So when it is estimated, drawing down of cash balances is excluded.
- Question 38 of 50
In equilibrium, a perfectly competitive firm will equate:
In economics, equilibrium is a situation in which economic forces such as supply and demand are balanced and in the absence of external influences the values of economic variables will not change. In equilibrium, a perfectly competitive firm will equate marginal revenue with marginal cost.
- Question 39 of 50
The existence of a Parallel Economy or Black Money:
A parallel economy is the functioning of an unsanctioned sector in the economy whose objectives run in opposite to the objectives of official, sanctioned or legitimate sector. The term parallel economy is also referred as black economy, unaccounted economy, illegal economy, subterranean economy or unsanctioned economy. The existence of a parallel economy or Black Money makes the monetary policies less effective.
- Question 40 of 50
Which of the following is an open market operation of the RBI?
An Open Market Operation (OMO) is the buying and selling of government bonds and securities in the open market by the RBI in India.
- Question 41 of 50
How will a reduction in ‘Bank Rate’ affect the availability of credit?
Bank rate is the rate charged by the central bank (RBI) for lending funds to commercial banks. Lower bank rates can help to expand the economy by lowering the cost of funds for borrowers, and higher bank rates help to reign in the economy when inflation is higher than desired.
- Question 42 of 50
When a large number of investors in a country transfer investments elsewhere because of disturbed economic conditions, it is called:
In economics, capital flight is a phenomenon characterized by large outflows of assets and/or capital from a country due to some events, resulting in negative economic consequences to that country.
- Question 43 of 50
‘Golden Handshake Scheme’ is associated with:
A golden handshake is a stipulation in an employment agreement which states that the employer will provide a significant severance package if the employee loses their job. It is usually provided to top executives in the event that they lose employment because of retirement, layoffs, or for negligence.
- Question 44 of 50
Inflation occurs when aggregate supply is:
Inflation is a measure of the rate of rising prices of goods and services in an economy. Inflation can occur when prices rise due to increases in production costs, such as raw materials and wages. A surge in demand for products and services can cause inflation as consumers are willing to pay more for the product.
- Question 45 of 50
In Economics, production means:
Consumption is the use of utility whereas production is creation of utility. In fact, their difference is not so fundamental. Both these are two different aspects of the same activity. For example, when a carpenter makes a chair, he performs an act of production by increasing the utility of log of wood.
- Question 46 of 50
According to modern thinking, the law of diminishing returns applies to:
The law of diminishing marginal returns is a theory in economics that predicts that after some optimal level of capacity is reached, adding an additional factor of production will actually result in smaller increases in output. According to modern thinking, the law of diminishing returns applies to all fields of production.
- Question 47 of 50
The concept that under a system of free enterprise, it is consumers who decide what goods and services shall be produced and in what quantities is known as:
Consumer sovereignty is the situation in an economy where the desires and needs of consumers control the output of producers.
- Question 48 of 50
Seawater, fresh air, etc., are regarded in Economics as:
A free good is a good that is not scarce, and therefore is available without limit. A free good is available in as great a quantity as desired with zero opportunity cost to society.
- Question 49 of 50
If the price of tea falls, demand for coffee will:
Tea and coffee are examples of Substitute goods. Substitutes present the consumer with alternative choices. If the price of one good falls, then demand for the substitute is likely to decrease.
- Question 50 of 50
Which of the following does not determine the supply of labour?
In economics, the marginal product of labor is the change in output that results from employing an added unit of labor. It is a feature of the production function, and depends on the amounts of physical capital and labor already in use.