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- Question 1 of 50
1. Question
Production function expresses:
Hint
Production function is the functional relationship between inputs and output in a given state of technology. Q=f(L,K) [where Q is output, L is Labor, K is Capital]
- Question 2 of 50
2. Question
Which one of the following is not a characteristic of the population of a developed country?
Hint
High infant mortality rate, high death rate and high birth rate, along with low life expectancy rate are some characteristics of the population of a Developing country.
- Question 3 of 50
3. Question
Which Five Year Plan gave emphasis on removal of poverty for the first time?
Hint
The Fifth Five-Year Plan laid stress on employment, poverty alleviation (Garibi Hatao), and justice. The plan also focused on self-reliance in agricultural production and defence.
- Question 4 of 50
4. Question
GDP at Factor Cost is:
Hint
Gross domestic product (GDP) at factor cost is GDP at market prices minus net indirect taxes plus subsidies.
- Question 5 of 50
5. Question
“Interest is a reward for parting with liquidity” is according to:
Hint
According to Keynes interest is purely a monetary phenomenon in the sense that it is a payment in money and for money. Interest is a reward for parting with liquid for specified period.
- Question 6 of 50
6. Question
Extension or contraction of quantity demanded of a commodity is a result of a change in the:
Hint
The demand for a commodity changes due to a change in price. It is called extension and contraction of demand. When there is decrease in price of a commodity there is increase in demand of that commodity.
- Question 7 of 50
7. Question
Cross elasticity of demand between petrol and car is:
Hint
Petrol and car are complementary goods as when the price of petrol rises, the demand for car falls. Hence, cross elasticity of demand between petrol and car is negative.
- Question 8 of 50
8. Question
“Supply creates its own demand”. This statement is related to:
Hint
The statement “Supply creates its own demand” is given by Prof JB Say. Say’s Law was later simply summarized by economist John Maynard Keynes in his 1936 book, General Theory of Employment, Interest and Money.
- Question 9 of 50
9. Question
FERA in India has been replaced by:
Hint
FERA (Foreign Exchange Regulation Act) was repealed by the Parliament of India in 1999 by the Foreign Exchange Management Act (FEMA), which liberalized foreign exchange controls and removed many restrictions on foreign investment. FERA came into force in 1974.
- Question 10 of 50
10. Question
National Income Estimates in India are prepared by:
Hint
National Income Estimates in India are prepared by National Statistical Office (NSO). NSO came into existence on 23rd May 2019 by a merger of NSSO (National Sample Survey Office) and CSO (Central Statistics Office). It is the statistics wing of the Ministry of Statistics and Program Implementation.
- Question 11 of 50
11. Question
The term ‘Mixed Economy’ denotes
Hint
A mixed economy combines the characteristics of capitalism and socialism. Essentially, a country with this kind of economy comprises public and private sectors, wherein private enterprises aim for profit maximisation, while the Government sector works towards the welfare of the citizens.
- Question 12 of 50
12. Question
The Law of Demand expresses:
Hint
The law of demand states that the quantity purchased varies inversely with price. In other words, the higher the price, the lower the quantity demanded.
- Question 13 of 50
13. Question
A situation where we have people whose level of income is not sufficient to meet the minimum consumption expenditure is considered as:
Hint
Absolute poverty is when household income is below a certain level, which makes it impossible for the person or family to meet basic needs of life including food, shelter, safe drinking water, education, healthcare, etc.
- Question 14 of 50
14. Question
Full convertibility of a rupee means:
Hint
Full convertibility would mean the rupee exchange rate would be left to market factors without any regulatory intervention. There may be no limit on inflow or outflow of capital for various purposes including investments, remittances, or asset purchases/sales.
- Question 15 of 50
15. Question
India is called a mixed economy because of the existence of:
- Public Sector
- Private Sector
- Joint Sector
- Cooperative Sector
Hint
A mixed economy combines the characteristics of capitalism and socialism. Essentially, a country with this kind of economy comprises public and private sectors, wherein private enterprises aim for profit maximisation, while the Government sector works towards the welfare of the citizens.
- Question 16 of 50
16. Question
the present Indian monetary system is based on:
Hint
RBI is required to maintain a Gold and Foreign Exchange Reserves of ₹200 Crore of which at least ₹115 Crore should be in Gold. This is called Minimum Reserve System.
- Question 17 of 50
17. Question
Gross Domestic Product is defined as the value of all:
Hint
Gross domestic product is a monetary measure of the market value of all the final goods and services produced in a specific time period by countries.
- Question 18 of 50
18. Question
An exceptional demand curve is one that moves:
Hint
Exceptional or abnormal demand is a demand pattern which does not abide with the laws of demand. Its curve is one which slopes down from right to left or in other words, which goes up from left to right, showing that more is demanded at a higher price than at a lower price.
- Question 19 of 50
19. Question
Production function explains the relationship between:
Hint
Production function is the maximum set of output(s) that can be produced with a given set of inputs. Use of a production function implies technical efficiency.
- Question 20 of 50
20. Question
The Draft of the Five Year Plans in India was approved by the:
Hint
National Development Council (NDC) was the final authority that used to give final approval to the five years plans. The decades-old Five-Year Plans have been replaced by three-year action plan. The Niti Aayog has replaced the Planning Commission in the Modi Cabinet and launched three-year action plans from 1 April 2017 onwards.
- Question 21 of 50
21. Question
The term stagflation refers to a situation where:
Hint
Stagflation is an economic condition that’s caused by a combination of slow economic growth, high unemployment, and rising prices.
- Question 22 of 50
22. Question
If two commodities are complements, then their cross-price elasticity is:
Hint
Complementary goods have a negative cross-price elasticity: as the price of one good increases, the demand for the second good decreases. Substitute goods have a positive cross-price elasticity: as the price of one good increases, the demand for the other good increases. Petrol and Cars is an example of Complementary goods.
- Question 23 of 50
23. Question
Opportunity cost of production of a commodity is:
Hint
Opportunity cost is the value of the next best alternative forgone as a result of making a decision. When economists refer to the “opportunity cost” of a resource, they mean the value of the next-highest-valued alternative use of that resource.
- Question 24 of 50
24. Question
Surplus earned by a factor other than land in the short period of referred to as:
Hint
Quasi-rent is the surplus which is received in a short period because of demand exceeding the supply by the man-made factors besides land.
- Question 25 of 50
25. Question
Who is the Ex-officio Chairman of the Niti Aayog?
Hint
Prime Minister is the ex-officio chairman of the NITI Aayog in India. NITI (National Institute For Transforming India) Aayog is a government think tank and is formed in 2015 after replacing Planning Commission.
- Question 26 of 50
26. Question
Which of the following is not true when the interest rate in the economy goes up?
Hint
Higher interest rates mean higher borrowing costs, people will eventually start spending less and get better returns on their savings. The demand for goods and services will then drop, which will cause inflation to fall.
- Question 27 of 50
27. Question
Which one of the following is not a method of measurement of National Income?
Hint
Three Important Methods for Measuring National Income are – Income Method, Product/ Value Added Method and Expenditure Method.
- Question 28 of 50
28. Question
Labour Intensive Technique would get chosen in a:
Hint
The term “labor-intensive” refers to a process or industry that requires a large amount of labor to produce its goods or services. The degree of labor intensity is typically measured in proportion.
- Question 29 of 50
29. Question
Which one of the following would not constitute an economic activity?
Hint
Economic activity is an activity of providing, making, buying, or selling of commodities or services by people to satisfy their day-to-day needs of life. A teacher teaching his own daughter at home does not constitute an economic activity.
- Question 30 of 50
30. Question
Net National Product (NNP) of a country is:
Hint
Net national product (NNP) is gross national product (GNP), the total value of finished goods and services produced by a country’s citizens overseas and domestically, minus depreciation.
- Question 31 of 50
31. Question
Brain drain:
Hint
Brain drain is defined as the movement of highly skilled and educated people to a country where they can work in better conditions and earn more money.
- Question 32 of 50
32. Question
Formalised system of trading agreements with groups of countries is known as:
Hint
A trade bloc is a group of nations that has reached a set of special agreements regarding their economic relationships with each other.
- Question 33 of 50
33. Question
Which one of the following is not a method of estimating National Income?
Hint
Three Important Methods for Measuring National Income are – Income Method, Product/ Value Added Method and Expenditure Method.
- Question 34 of 50
34. Question
The monetary policy in India is formulated by:
Hint
The Reserve Bank of India (RBI) is vested with the responsibility of conducting monetary policy. This responsibility is explicitly mandated under the Reserve Bank of India Act, 1934.
- Question 35 of 50
35. Question
A short-term government security paper is called:
Hint
Treasury bills are short-term debt instruments issued by the Government of India and are presently issued in three tenors, namely, 91 days, 182 days and 364 days. Treasury bills are zero-coupon securities and pay no interest.
- Question 36 of 50
36. Question
Under which market condition do firms have excess capacity?
Hint
Monopolistic competition characterizes an industry in which many firms offer products or services that are similar substitutes. Excess capacity is more defined under monopolistic competition due to the nature of the market structure.
- Question 37 of 50
37. Question
Price theory is also known as:
Hint
Price theory is a microeconomic principle that uses the concept of supply and demand to determine the appropriate price point for a given good or service.
- Question 38 of 50
38. Question
National Income is the:
Hint
The Net National Product (NNP) at Factor Cost is the net money value of all goods and services produced by ordinary citizens of a country. It includes income earned by Indian citizens, whether they live in India or abroad. It is calculated net of national income, which implies it excludes depreciation.
- Question 39 of 50
39. Question
The exchange of commodities between two countries is referred as:
Hint
Bilateral trade is the exchange of goods between two countries promoting trade and investment. The two countries will reduce or eliminate tariffs, import quotas, export restraints, and other trade barriers to encourage trade and investment.
- Question 40 of 50
40. Question
A want becomes a demand only when it is backed by the:
Hint
A want turns into a demand just when it is supported by the capacity or the ability to buy. A want becomes a demand only when it is backed by the ability to purchase.
- Question 41 of 50
41. Question
The terms ‘Microeconomics’ and ‘Macroeconomics’ were coined by:
Hint
The terms ‘microeconomics’ and ‘macroeconomics’ were first coined by a Norwegian economist, Ragnar Frisch.
- Question 42 of 50
42. Question
During periods of inflation, tax rates should:
Hint
Inflation can be controlled by a contractionary monetary policy is one common method of managing inflation. A contractionary policy aims to reduce the supply of money within an economy by lowering the prices of bonds, rising interest rates and rising tax rates.
- Question 43 of 50
43. Question
Which is the biggest tax-paying sector in India?
Hint
The Industrial Sector has been the highest taxpayer in India. Corporation tax is the biggest source of revenue for the government. Corporation tax is levied on the net income of the company.
- Question 44 of 50
44. Question
“Economics is what it ought to be” – This statement refers to:
Hint
“Economics is what it ought to be” – This statement refers to Normative Economics. Normative economics is a part of economics whose objective is fairness or what the outcome of the economy or goals of public policy ought to be.
- Question 45 of 50
45. Question
The excess of price a person is to pay rather than forego the consumption of the commodity is called:
Hint
Producer surplus is the difference between how much a person would be willing to accept for given quantity of a good versus how much they can receive by selling the good at the market price. The difference or surplus amount is the benefit the producer receives for selling the good in the market.
- Question 46 of 50
46. Question
The existence of a parallel economy or Black Money:
Hint
The existence of Black money leads to the creation of a parallel economy. It makes the monetary policies less effective as the government cannot account properly for the money which is not formally included in the system.
- Question 47 of 50
47. Question
Before the implementation of GST, which of the following tax was levied and collected by the Center but its net income was completely transferred to the states?
Hint
Before the implementation of GST, Taxes on Advertisements were levied and collected by the centre but their net proceeds were wholly transferred to states.
- Question 48 of 50
48. Question
Census of population in India is done after every:
Hint
The decennial Census of India has been conducted 15 times, as of 2011. While it has been undertaken every 10 years, beginning in 1872 under British Viceroy Lord Mayo, the first complete census was taken in 1881. The next Census was to be held in 2021. But it has been postponed due to the COVID-19 pandemic.
- Question 49 of 50
49. Question
When the price of a commodity falls, we can expect:
Hint
When the price of a commodity falls, we can expect the demand for it to increase. The law of demand states that the quantity purchased varies inversely with price.
- Question 50 of 50
50. Question
According to the Suresh Tendulkar Committee which came out with fresh data on poverty, the Below Poverty Line (BPL) number is now:
Hint
According to the Suresh Tendulkar Committee, the Below Poverty Line (BPL) number is now 38%. Suresh Tendulkar Committee was constituted in the year 2009.