Indian Economy Quiz 3

Question 1 of 50

In calculating National Income which of the following is included?

Services of housewives
Pensions
Income of smugglers
Income of watchmen

Question 2 of 50

Bank-rate is the rate at which

a commercial bank borrows loans from some other commercial bank
the central bank borrows loans from the Government
the commercial bank gives loans to the public
the central bank re-discounts the commercial bills brought to it by the commercial banks

Question 3 of 50

ECO MARC is a symbol related to :

Exported goods
Imported goods
Goods safe for environment
Best quality

Question 4 of 50

Consider the following reasons of continuous decline in average land-holding size in India:

Law of inheritance
Consolidation
Farm mechanisation
Desire of land ownership

Pick the correct answer from the options given below:

1, 2, 3 and 4
1, 3 and 4
1 and 4
1 and 2

Question 5 of 50

Which of the following sets belong to Central lax ?

Excise duty. Sales tax and Customs duty
Excise duty, Customs duty and Income tax
Income tax, Customs duty and House tax
Customs duty, Entertainment tax and Income tax

Question 6 of 50

In the law of demand, the statement “Other things remain constant” means

income of consumer should not change
price of other goods should not change
taste of consumer should not change
All of the above

Question 7 of 50

A firm is in equilibrium when its

marginal cost equals the marginal revenue
total cost is minimum
total revenue is maximum
average revenue and marginal revenue are equal

Question 8 of 50

Given the money wages, if the price level in an economy increases, then the real wages will

increase
decrease
remain constant
become flexible

Question 9 of 50

The difference between visible exports and visible imports is defined as

Balance of trade
Balance of payment
Balanced terms of trade
Gains from trade

Question 10 of 50

What is Value Added Tax (VAT) ?

A simple, transparent, easy to pay tax imposed on consumers
A new initiative taken by the Government to increase the tax-burden of high income groups
A single tax that replaces State taxes like, surcharge, turnover tax, etc.
A new tax to be imposed on the producers of capital goods

Question 11 of 50

The outcome of ‘devaluation of currency’ is

increased export and improvement in balance of payment
increased export and foreign reserve deficiency
increased import and improvement in balance of payment
increased export and import

Question 12 of 50

The common currency which has been introduced among 11 European Nations is known as

Euro Pound
Euro
Euro Dollar
None of these

Question 13 of 50

What is referred to as ‘Depository Services’ ?

A new scheme of fixed deposits
A method for regulating stock exchanges
An agency for safe-keeping of securities
An advisory service to investors

Question 14 of 50

Industrial exit policy means

forcing foreign companies to leave India
forcing business units to move out of congested localities
allowing manufacturers to shift their line of products
allowing business units to close down

Question 15 of 50

Which authority decides about the States’ share in central taxes ?

Finance Commission
Planning Commission
Election Commission
Finance Ministry

Question 16 of 50

The ‘Interest Rate Policy’ is a component of

Fiscal Policy
Monetary Policy
Trade Policy
Direct Control

Question 17 of 50

In the budget figures of the Government of India, fiscal deficit is:

total expenditure – total receipts
revenue expenditure – revenue receipts
capital expenditure – capital receipts + market borrowings
sum of budget deficit and Government’s market borrowings and liabilities

Question 18 of 50

Which State has the lowest per capita income in India ?

Bihar
Orissa
Rajasthan
Gujarat

Question 19 of 50

‘Gresham’s Law’ in Economics relates to

supply and demand
circulation of currency
consumption of supply
distribution of goods and services

Question 20 of 50

A mixed economy works primarily through the

market mechanism
central allocative machinery
market mechanism regulated by Government policy
market mechanism guided by Government participation and planning

Question 21 of 50

Which of the following Mahatma Gandhi series of currency notes issued by the RBI has “ecology” depicted on it?

Rs 500
Rs 100
Rs 50
Rs 5

Question 22 of 50

Which country/countries started privatisation of State-owned enterprises as a major State Policy?

U.K. under Mrs. Margaret Thatcher
Russia in the C.I.S.
Mexico/Argentina/Brazil
Italy/France/Malaysia

Question 23 of 50

Which is the Agency the Government has engaged to grade the standardise various agricultural products?

Food Corporation of India
Directorate of Marketing and Inspection
Bureau of Indian Standards
Central Statistical Organisation

Question 24 of 50

What is the purpose of the India Brand Equity Fund?

To promote in-bound tourism.
To make ‘Made in India’ a label of quality.
To organise trade fairs.
To provide venture capital to IT sector.

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 ?

Public Accounts Committee
Union Ministry of Finance
Finance Commission
Inter-State Council

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?

Rs 500
Rs 100
Rs 50
Rs 10

Question 27 of 50

What are “Open Market Operations”?

Activities of SEBI registered brokers
Selling of currency by the RBI
Selling of gilt-edged securities by the Government
Sale of shares by FIIs

Question 28 of 50

Special Drawing Rights (SDR) facility is available at

International Monetary Fund (IMF)
World Bank (IBRD)
International Development Association (IDA)
Organisation of Economic Cooperation and Development (OECD)

Question 29 of 50

What is referred to as “Depository Services” ?

A new scheme of fixed deposits
A method of regulating stock exchanges
An agency for safe-keeping of securities
An advisory service to investors

Question 30 of 50

Which of the following groups suffer the most from inflation?

Debtros
Creditors
Business class
Holders of real assets

Question 31 of 50

An economy is in equilibrium when

planned consumption exceeds planned saving
planned consumption exceeds planned investment
intended investment equals intended investment
intended investment exceeds intended savings

Question 32 of 50

The best way, a bank can avoid loss is to

lend only to individuals known to the bank
accept sound collateral
give only short-term loans
lend only to bank’s old customers

Question 33 of 50

If the price of an inferior good falls, its demand

rises
falls
remains constant
can be any of the above

Question 34 of 50

The Marginal Utility Curve slopes downward from left to right indicating

A direct relationship between marginal utility and the stock of commodity
A constant relationship between marginal utility and the stock of commodity
A proportionate relationship between marginal utility and the stock of commodity
An inverse relationship between marginal utility and the stock of commodity

Question 35 of 50

How does the consumer benefit with VAT?

It removes tax on tax and thus reduces prise-rise
Reduces the cost of production
With the abolition of the sales tax
Due to the exemption of small businesses from the tax within certain limits prescribed by the State

Question 36 of 50

Capital output ratio of a commodity measures

its per unit cost of production
the amount of capital invested per unit of output
the ratio of capital depreciation to quantity of output
the ratio of working capital employed to quantity of output

Question 37 of 50

In estimating the budgetary deficit, the official approach in India is to exclude

long term borrowing from the market
borrowings from the Reserve Bank of India
drawing down of the cash balance
borrowing from Reserve Bank in the form of ways and means advance

Question 38 of 50

In equilibrium, a perfectly competitive firm will equate

marginal social cost with marginal social benefit
market supply with marginal demand
marginal profit with marginal cost
marginal revenue with marginal cost

Question 39 of 50

The existence of a Parallel Economy or Black Money

makes the economy more competitive
makes the monetary policies less effective
ensures a better distribution of income and wealth
ensures increasing productive investment

Question 40 of 50

Which of the following is an open market operation of the RBI?

Buying and selling of shares
Trading in securities
Transactions in gold
Lending to commercial banks

Question 41 of 50

How will a reduction in ‘Bank Rate’ affect the availability of credit ?

Credit will increase
Credit will not increase
Credit will decrease
None of these

Question 42 of 50

When a large number of investors in a country transfer investments elsewhere because of disturbed economic conditions, it is called

Transfer of Capital
Escape of Capital
Outflow of Capital
Flight of Capital

Question 43 of 50

‘Golden Handshake Scheme’ is associated with

inviting foreign companies
private investment in public enterprises
establishing joint enterprises
voluntary retirement

Question 44 of 50

Inflation occurs when aggregate supply is

more than aggregate demand
less than aggregate demand
equal to aggregate demand
None of these

Question 45 of 50

In Economics, production means

manufacturing
making
creating utility
farming

Question 46 of 50

According to modern thinking, the law of diminishing returns applies to

agriculture
industry
mining
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 Protection
Consumer’s Decision
Consumer Preference
Consumer’s Sovereignty

Question 48 of 50

Seawater, fresh air, etc., are regarded in Economics as

Giffen goods
inferior goods
free goods
normal goods

Question 49 of 50

If the price of tea falls, demand for coffee will

increase
decrease
remain same
None of these

Question 50 of 50

Which of the following does not determine supply of labour?

Size and age-structure of population
Nature of work
Marginal productivity of labour
Work-leisure ratio

Home	G.K.	Maths
Reasoning	Computer	English

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