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- Question 1 of 50
1. Question
Ceteris Paribus is Latin phrase for:
Hint
Ceteris paribus is a Latin phrase that generally means “all other things being equal.” In economics, it acts as a shorthand indication of the effect one economic variable has on another, provided all other variables remain the same.
- Question 2 of 50
2. Question
Imputed gross rent of owner occupied buildings is a part of:
Hint
Household final consumption expenditure is the market value of all goods and services, including durable products (such as cars, washing machines, and home computers), purchased by households. It excludes purchases of dwellings but includes imputed rent for owner-occupied dwellings.
- Question 3 of 50
3. Question
Free Trade refers to:
Hint
Free trade is a trade policy that does not restrict imports or exports. It can also be understood as the free market idea applied to international trade.
- Question 4 of 50
4. Question
Economies of Scale means reduction in:
Hint
Economies of scale are the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the amount of output produced. A decrease in cost per unit of output enables an increase in scale.
- Question 5 of 50
5. Question
RBI does not transact the business of which State Government?
Hint
State Government transactions are carried out by RBI in terms of the agreement entered into with the State Governments in terms of section 21A of the Act. As of now, such agreements exist between RBI and all the State Governments except Government of Sikkim.
- Question 6 of 50
6. Question
The definition of ‘small-scale industry’ in India is based on:
Hint
Small Scale Industries (SSI) are those industries in which the manufacturing, production and rendering of services are done on a small or micro scale. These industries make a one-time investment in machinery, plant, and equipment, but it does not exceed Rs. 10 crore and annual turnover does not exceed Rs. 50 crore.
- Question 7 of 50
7. Question
When the total product rises at an increasing rate, the:
Hint
Marginal product refers to the extra output, return, or profit yielded per unit by advantages from production inputs. When Total Product rises at an increasing rate, marginal product also rises. When Total Product increases at a diminishing rate, marginal product declines.
- Question 8 of 50
8. Question
With which form of economy is the term ‘Laissez-faire’ associated?
Hint
Laissez-faire is an economic philosophy of free-market capitalism that opposes government intervention. The doctrine of laissez-faire is usually associated with the economists known as Physiocrats, who flourished in France from about 1756 to 1778. The term laissez-faire means, in French, “allow to do.”
- Question 9 of 50
9. Question
In the budget figures of the Government of India, interest payments, subsidies, pensions, social services and the like are parts of the:
Hint
Non-plan expenditure is what the government spends on the so-called non-productive areas, such as salaries, subsidies, loans and interest, while plan expenditure pertains to the money to be set aside for productive purposes, like various projects of ministries.
- Question 10 of 50
10. Question
The supply of agricultural products is generally:
Hint
Once a crop is seeded, for example, farmers have limited ability to alter the quantities they put on the market. Therefore, in the short-term, market supply is relatively inelastic or unresponsive. Demand for most farm products is inelastic. People can consume only so much then they are satiated. Even if price drops they will not buy much more.
- Question 11 of 50
11. Question
Which of the following taxes is not collected by the Central Government?
Hint
Professional tax, VAT, and motor vehicle tax are some of the taxes that are levied and collected by the state. It is a direct tax. A person earning an income from salary or anyone practicing a profession such as chartered accountant, company secretary, lawyer, doctor etc. are required to pay this professional tax.
- Question 12 of 50
12. Question
The permission given to a bank customer to draw cheques in excess of his current account balance is called:
Hint
Overdraft is a financial instrument in which the money can be withdrawn from the current or savings account, even if the account balance goes below zero.
- Question 13 of 50
13. Question
One of the main factors that led to rapid expansion of Indian exports is:
Hint
Export diversification refers to the move from “traditional” to “non-traditional” exports. Diversification helps countries to hedge against adverse terms of trade shocks by stabilizing export revenues.
- Question 14 of 50
14. Question
When too much money is chasing too few goods, the situation is:
Hint
When too much money is chasing too few goods, the situation is Demand-Pull Inflation. It is caused by the overall increase in demand for goods and services, which bids up their prices. This theory can be summarized as “too much money chasing too few goods”.
- Question 15 of 50
15. Question
Which of the statements is correct about India’s national income?
Hint
The services sector is the largest sector of India. Gross Value Added (GVA) at current prices for the services sector is estimated at 96.54 lakh crore INR in 2020-21. The services sector accounts for 53.89% of total India’s GVA of 179.15 lakh crore Indian rupees. With GVA of Rs. 46.44 lakh crore, the Industry sector contributes 25.92%. While Agriculture and allied sector share 20.19%.
- Question 16 of 50
16. Question
What percentage of Indian population is below the official poverty line?
Hint
Altogether, around 22 percent of the Indian population is carrying out its livelihood, while being below the poverty line.
- Question 17 of 50
17. Question
Who coined the term ‘Hindu rate of growth’ for Indian economy?
Hint
The term ‘Hindu rate of growth’ was coined by Professor Rajkrishna, an Indian economist, in 1978 to describe the slow growth and to explain it against the backdrop of socialistic economic policies. Hindu growth rate is related to GDP.
- Question 18 of 50
18. Question
Who among the following is not a classical economist?
Hint
Classical economics or classical political economy is a school of thought in economics that flourished, primarily in Britain, in the late 18th and early-to-mid 19th century. Its main thinkers are held to be Adam Smith, Jean-Baptiste Say, David Ricardo, Thomas Robert Malthus, and John Stuart Mill.
- Question 19 of 50
19. Question
Which of the following items is a major item of Indian export?
Hint
Major items of India’s exports are Petroleum Products, textiles and garments, gems and jewelry, chemicals and related products, Pharmaceutical Products and agricultural and allied products.
- Question 20 of 50
20. Question
The process of curing inflation by reducing money supply is called:
Hint
The process of curing inflation by reducing money supply is called Disinflation. Disinflation is a temporary slowing of the pace of price inflation and is used to describe instances when the inflation rate has reduced marginally over the short term.
- Question 21 of 50
21. Question
Which of the following pair of goods are close substitutes?
Hint
Close substitute goods are similar products that target the same customer groups and satisfy the same needs, but have slight differences in characteristics. Tea and coffee are close substitutes. Increase in price of coffee may increase the demand of tea.
- Question 22 of 50
22. Question
Long-term funds in the capital market can be raised either by borrowing from certain institutions or through:
Hint
A capital market is a financial market in which long-term debt or equity-backed securities are bought and sold. (in a money market, short-term debt is bought and sold).
- Question 23 of 50
23. Question
Who among the following is a non-resident Indian?
Hint
A non-resident Indian is classified as an individual who has gone out of India, or who stays outside India for employment or for carrying on business or any vocation.
- Question 24 of 50
24. Question
Who developed the idea that “means justify the ends”?
Hint
Mahatma Gandhi developed the idea that “means justify the ends”. For Gandhi, the end is satya or truth which requires no justification and the means- ahimsa or non-violence must be justified not only with reference to the end but also in itself. Every act must be justified with reference to satya and ahimsa.
- Question 25 of 50
25. Question
During which decade did the population of India record a negative growth rate?
Hint
During the 1911 to 1921 decade, the population of India recorded a negative growth rate. The year 1921 is often known as the year of demographic divide because it is the only census year when there was a decrease in the growth of population.
- Question 26 of 50
26. Question
Which of the following is not considered as National Debt?
Hint
A country’s national debt is all the money that the government of the country has borrowed and still owes. Premium collected in the form of different insurance policies does not contribute to any kind of debt.
- Question 27 of 50
27. Question
Which of the following is said to be the main determinant of real wage?
Hint
Purchasing power of money is said to be the main determinant of real wage. A real wage rate is a nominal wage rate divided by the price of a good and is a transparent measure of how much of the good an hour of work buys.
- Question 28 of 50
28. Question
The birth rate measures the number of births during a year per:
Hint
The birth rate in a period is the total number of live births per 1,000 population divided by the length of the period in years.
- Question 29 of 50
29. Question
Which of the following is not included in the National Income?
Hint
National income is the accumulated money value of all final goods and services produced in a country during one financial year. Winning a lottery is not included in the national income because it does not add to current flow of goods and services.
- Question 30 of 50
30. Question
Personal disposable income is:
Hint
Personal disposable income is equal to personal income minus direct taxes. It is the amount of money that an individual or household has to spend or save after income taxes (direct taxes) have been deducted.
- Question 31 of 50
31. Question
Who prepared the first estimate of National Income for the country?
Hint
The estimate of National Income in India was, for the first time, prepared by Dada Bhai Naoroji in 1876 for the year 1867-68.
- Question 32 of 50
32. Question
A refrigerator operating in a chemist’s shop is an example of:
Hint
A final good is a final product ready for sale that is used by the consumer to satisfy current wants or needs, unlike producer goods which are utilized to produce other goods. Final goods are available for consumption or can be used for capital formation. A refrigerator in a chemist shop is an example of a producer’s good as it helps to satisfy human wants indirectly.
- Question 33 of 50
33. Question
Disinvestments is:
Hint
Disinvestment is when governments or organizations sell or liquidate assets or subsidiaries. Disinvestment in India is a policy of the Government of India, wherein the Government liquidates its assets in the Public sector Enterprises partially or fully.
- Question 34 of 50
34. Question
The Commission in India dealing with minimum support price, procurement price, etc in connection with agricultural goods is the:
Hint
Commission for Agricultural Costs and Prices (CACP) is a decentralised agency of the Government of India. It was established in 1965 as the Agricultural Prices Commission, and was given its present name in 1985.
- Question 35 of 50
35. Question
Which one of the following is a developmental expenditure?
Hint
Developmental expenditure refers to the expenditure on activities that are directly related to the social and economical development of the country. The expenditures incurred on agriculture, health, education, etc are referred to as development expenditures.
- Question 36 of 50
36. Question
When average cost of production (AC) falls, marginal cost (MC) of production must be:
Hint
When marginal cost is less than average cost, average cost falls and when marginal cost is greater than average cost, average cost rises.
- Question 37 of 50
37. Question
Green banking means:
Hint
Green Banking is any form of banking from which the country gets environmental benefits. A conventional bank becomes a green bank by directing its core operations towards the betterment of the environment.
- Question 38 of 50
38. Question
Which of the following is not correctly matched?
Hint
The duration of Fourth Five-year plan was from 1969 to 1974, under the leadership of Indira Gandhi. There were two main objectives of this plan i.e. growth with stability and progressive achievement of self-reliance.
- Question 39 of 50
39. Question
Which one of the following is not a quantitative credit control technique?
Hint
The different instruments of quantitative credit control technique are Statutory Liquidity Ratio (SLR), Cash Reserve Ratio (CRR), the Bank Rate Policy, Selective Credit Control (SCC), Open Market Operations (OMOs), etc.
- Question 40 of 50
40. Question
Which one of the following statements is correct?
Hint
“Bad money tends to drive good money out of circulation when both are full legal tender.” This principle is known as Gresham’s Law. Gresham’s law was originally based on the composition of minted coins and the value of the precious metals used in them.
- Question 41 of 50
41. Question
In the post-independence period, economic reforms were first introduced in India under:
Hint
In the post-independence period, economic reforms were first introduced in India under P.V. Narasimha Rao Government in 1991.
- Question 42 of 50
42. Question
The Report of Vijay Kelkar Committee relates to:
Hint
The Report of Vijay Kelkar Committee (Task Force on direct taxes 2002) relates to Direct Tax Reforms. The main recommendations of this committee related to the income tax exemption limit, abolition of wealth tax, etc.
- Question 43 of 50
43. Question
When was the Jawahar Rozgar Yojna launched?
Hint
Jawahar Rozgar Yojna was launched on 1 April 1989 by merging National Rural Employment Program (NREP) and Rural Landless Employment Guarantee Program.
- Question 44 of 50
44. Question
Devaluation of currency leads to:
Hint
Devaluation is the deliberate downward adjustment of the value of a country’s money relative to another currency. Thus, devaluation reduces the cost of the country’s exports. Also, it increases the cost of imports. So, domestic consumers are likely to purchase a domestic substitution. Thus it further strengthens the domestic business.
- Question 45 of 50
45. Question
Open market operations of RBI refer to buying and selling of:
Hint
Open Market Operations (OMO) is the simultaneous sale and purchase of government securities and treasury bills by RBI. The objective of OMO is to regulate the money supply in the economy.
- Question 46 of 50
46. Question
Which is not the objective of Public Procurement and Distribution System (PDS) followed by Indian Government?
Hint
PDS is operated under the joint responsibility of the Central and the State/UT Governments. The Central Government, through Food Corporation of India (FCI), has assumed the responsibility for procurement, storage, transportation and bulk allocation of food grains to the State Governments.
- Question 47 of 50
47. Question
Per capita income is obtained by dividing National Income by:
Hint
Per capita income is a measure of the amount of money earned per person in a nation or geographic region. It is calculated by dividing country’s national income by its population.
- Question 48 of 50
48. Question
Token privatisation or deficit privatisation of public sector units occurs when the government sells:
Hint
When the government disinvests its shares to the extent of 4 to 5 percent to meet the deficit in the budget, this is termed deficit privatization or token privatization.
- Question 49 of 50
49. Question
The Planning Commission of India was constituted in the year:
Hint
The Planning Commission, agency of the government of India established in 1950 to oversee the country’s economic and social development, chiefly through the formulation of five-year plans.
- Question 50 of 50
50. Question
In ends and means relationship, Gandhiji believed:
Hint
Mahatma Gandhi developed the idea that “means justify the ends”. For Gandhi, the end is satya or truth which requires no justification and the means- ahimsa or non-violence must be justified not only with reference to the end but also in itself. Every act must be justified with reference to satya and ahimsa.