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GK > Economics MCQ > Flashcards

Economics MCQ Flashcards

Questions

1
Q

Which Ministry is responsible for calculating of GDP?

  • > Ministry of Finance
  • > Ministry of Defence
  • > Ministry of Agriculture
  • > Ministry of Statistical and Program Implementation
A

Ministry of Statistical and Program Implementation

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2
Q

Which Department/ Organisation is responsible for calculating GDP?

A

CSO - Central Statistical Organisation

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3
Q

Which sector contributes maximum to the Indian GDP?

  • > Primary
  • > Secondary
  • > Services
  • > All contribute equally
A

Service sector

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4
Q

If contribution of agriculture sector is decreasing in a country’s econom, what conclusion can be drawn?

  • > Country is in direction of developed country
  • > Country is in direction of developing country
  • > Country is in direction of less developed
  • > Economic growth has stopped
A

Country is in direction of becoming developed country

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5
Q

Which is not added in the calculation of National Income?

  • > Value of Goods and Services
  • > Sold value of old things
  • > Services of Housewives
  • > Both B and C
A

Both B and C.
Second sale is not counted in GDP because it will cause double counting. Only new values is added in National Income. Only monetary values are added in GDP

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6
Q

Identify the right statement

  • > National Income is monetary value of all goods and services produced
  • > Depreciation is deducted from gross value to get net value
A

Both statements are correct

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7
Q

NNP value at consumer point is?

  • > NNP - fc
  • > NNP - mp
  • > GNP - mp
  • > GNP - fc
A

NNP - mp

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8
Q

When depreciation is deducted from GNP, the net value is?

  • > NNP
  • > NDP
  • > GNP
  • > Disposable Income
A

NNP

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9
Q

What is the difference between GDP and NNP?

  • > Depreciation
  • > Depreciation and NFIA
  • > NFIA and taxes
  • > Taxes and Depreciation
A

Depreciation adn NFIA

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10
Q

What is the formula for per capita income?

  • > NNP-fc/ Total Population
  • > NDP-fc/ Total Population
  • > GNP-fc/ Total Population
  • > GDP-fc/ Total Population
A

NNP-fc/ Total Population

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11
Q

Which of the method is not used to caluculate national income in India?

  • > Production/ Value added method
  • > Expenditure
  • > Income
  • > Subtraction
A

Subtraction

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12
Q

Which of the following is not a part of tertiary sector?

  • > Transportation
  • > Banking
  • > Education
  • > Agriculture
A

Agriculture

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13
Q

Which of the following is dealt in micro-economics?

  • > National Income
  • > Aggrergate Demand
  • > Individual Demand
  • > Money
A

Individual Demand

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14
Q

Convert GDP-fc to NDP-mp

  • > NDP-mp = GDP-fc + Depriciation + Net Taxes
  • > NDP-mp = GDP-fc - Depriciation + NFIA
  • > NDP-mp = GDP-fc - Depriciation + Net Taxes
  • > NDP-mp = GDP-fc + Depriciation - NFIA
A

NDP-mp = GDP-fc - Depriciation + Net Taxes

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15
Q

Which of the following is to be subtracted from GNP to derive NNP?

  • > Indirect Tax
  • > Subsidies
  • > Depreciation
  • > All of the above
A

Depreciation

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16
Q

The financial year in India is

  • > April 1 to March 31
  • > January 1 to Dec 31
  • > March 1 to April 30
  • > March 16 to March 15
A

April 1 to March 31

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17
Q

Identify the right statement

  • > While calculating GNP, income generated by foreigners in a country is taken into consideration
  • > While calculating GNP, income generated by nationals of a country outside the country is taken into consideration
A

only second statement is correct

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18
Q

Sum of GDP and NFIA is called?

  • > GNP
  • > NNP
  • > Real GDP
  • > NDP
A

GNP

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19
Q

Which among the following is not the causes of shift in demand ?

  • > change in income
  • > change in price
  • > change in fashion
  • > change in prices of substitutes
A

Change in price

Shift in demand happens - when there is change in demand other due to reasons other than price

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20
Q

If elasticity of demand is very low, it shows that the commodity is?

  • > a necessity
  • > a luxury
  • > has a little importance in total budget
  • > 1st and 3rd
A

a necessity

elaticity of demand is high in case of luxury

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21
Q

The supply of a good refers to:

  • > stock available for sale
  • > total stock in the warehouse
  • > actual production of the good
  • > Quantity of good offered for sale at a particular price per unit of time
A

Quantity of good offered for sale at a particular price per unit time

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22
Q

The horizontal demand curve parallel to x-axis implies that the elasticity of demand is?

  • > zero
  • > infinite
  • > equal to one
  • > greater than zero but less than infity
A

Infinite

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23
Q

When supply of a commodity increases without change in price it is called

  • > fall in supply
  • > expansion in supply
  • > contraction in supply
  • > rise in supply
A

Rise in supply

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24
Q

During a particular year farmer experienced a dry weather, if all other factors remain constant, farmers supply curve for wheat will shift

  • > Rightward
  • > Leftwards
  • > Downward
  • > Rise in supply
A

Leftwards

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25
Q

Price of product falls by 10% and its demand rise by 30%. the elasticity of demand is.

  • > 10%
  • > 30%
  • > 3%
  • > 13%
A

3%

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26
Q

This is an assumption of law of demand

  • > price of the commodity should not change
  • > quantity should not change
  • > supply should not change
  • > income of consumers should not change
A

income should remain same

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27
Q

Normally a demand curve will have the shape

  • > horizontal
  • > vertical
  • > downward sloping
  • > upward sloping
A

downward sloping

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28
Q

Law of demad shows relation between

  • > income and price of commodity
  • > price and quantity of commodity
  • > income and quantity demanded
  • > quantity demanded and quantity supplied
A

price and quantity of commodity

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29
Q

Planning Commission was established by GoI in ?

  • > January 1948
  • > February 1951
  • > March 1950
  • > May 1948
A

March 1950

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30
Q

National Planning Committee was appointed under Presidenship/Chairmanship of Jawaharlal Nehru in?

  • > 1930
  • > 1932
  • > 1932
  • > 1938
A

1938 - formed before Independence of India

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31
Q

The outlines of second plan was made by?

  • > Charan Singh
  • > Fazal Ali
  • > P.C. Mahalanobis
  • > Kunjru
A

P.C. Mahalanobis
- a famous economist and is credited with the capital goods industry development of India
2nd 5 year plan Model - Nehru Mahalanobis Model

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32
Q

Concept of Economic Planning in India is derived from?

  • > USA
  • > Australia
  • > UK
  • > Russia
A

Russia

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33
Q

Which 5 year plan focused on growth with social justice and equality?

  • > 9th 5 year plan
  • > 8th 5 year plan
  • > 7th 5 year plan
  • > 6th 5 year plan
A

9th

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34
Q

There is only one 5 year plan which was declared officially failed. Which of the following plan was that?

  • > 1st 5 year plan
  • > 2nd 5 year plan
  • > 3rd 5 year plan
  • > 7th 5 year plan
A

3rd

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35
Q

Which of the following 5 year plan laid foundation for industrialization?

  • > 1st 5 year plan
  • > 3rd 5 year plan
  • > 2nd 5 year plan
  • > 7th 5 year plan
A

2nd 5 year plan

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36
Q

Which 5 year plan has Model as - Nehru Mahalanobis Model?

  • > 1st 5 year plan
  • > 3rd 5 year plan
  • > 2nd 5 year plan
  • > 6th 5 year plan
A

2nd 5 year plan

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37
Q

What is the period of 1st 5 year plan?

  • > 1 April, 1952 to 31 March, 1953
  • > 1 April, 1951 to 31 March, 1956
  • > 1 April, 1954 to 31 March, 1957
  • > 1 April, 1953 to 31 March, 1958
A

1 April, 1951 to 31 March, 1956

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38
Q

What is the main objective of the 12th 5 year plan?

  • > Faster and Inclusive growth
  • > Faster and sustainable growth
  • > Inclusive and sustainable growth
  • > Faster, sustainable and more inclusive growth
A

Faster, sustainable and more inclusive growth

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39
Q

What is the main objective of the 11th 5 year plan?

  • > Faster and Inclusive growth
  • > Faster and sustainable growth
  • > Inclusive and sustainable growth
  • > Faster, sustainable and more inclusive growth
A

Faster and Inclusive growth

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40
Q

In which list is economic planning subject included?

  • > State List
  • > Concurrent list
  • > Union List
  • > None of the above
A

Concurrent list

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41
Q

Who is the father of Indian Planning?

A

M. Vishwasraiya

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42
Q

When was Planning Commision formed?

  • > On 20th March, 1953
  • > On 15th March, 1950
  • > On 15th March, 1951
  • > On 15th March, 1952
A

On 15th March, 1950

This is an extra constitutional body

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43
Q

When was NITI Aayog formed? It is also known as? full form?

  • > 1st Jan 2015
  • > 1st Mar 2015
  • > 1st Jan 2014
  • > 1st Jan 2016
A

1st Jan 2015

  • > also known as ‘Think Tank’ of the government
  • > NITI - National Institute for Transforming India
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44
Q

Who is the vice-chairman of NITI Aayog?

  • > Arvind Pangaria
  • > Rajeev Kumar
  • > Tushar Mehta
  • > Amartya Sen
  • > Jagdish Bhagwati
A

Rajeev Kumar

  • > 1st Vice-Chairman - Arvind Pangaria
  • > Chairman - PM of India
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45
Q

Who is the CEO of NITI Aayog? Its Members?

  • > Amitab Kant
  • > Amartya Sen
  • > Jagdish Bhagwati
  • > Arvind Pangaria
A

Amitab Kant

Members - PM, All CMs, 4 Cabinet Ministers

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46
Q

When was National Development Council (NDC) Formed? and for what?

  • > Aug 1953
  • > Aug 1952
  • > Aug 1958
  • > Aug 1955
A

Aug 1952

-> to check Planning Commission reports, guide it.

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47
Q

What was the model and objective of the 1st 5 year plan (1951 - 1956)?

A
  • > Agriculture and Irrigation

- > Model - Harrod Domar Model

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48
Q

What was the objective and model of the 2nd 5 year plan (1956 - 1961)?

A
  • > Capital Goods - Industrilazation

- > Model - Nehru Mahalanobis Model

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49
Q

When wa LIC (Life Insurance Corporation) and UGC (University Grants Commission) established?

  • > 1954
  • > 1956
  • > 1965
  • > 1972
A

1956

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50
Q

When was NAFED (National Agriculture Cooperative Federation of India) established and why?

  • > 1956
  • > 1968
  • > 1657
  • > 1958
A

1958

-> to continue with the agriculture development

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51
Q

What was the objective and model of the 3rd 5 year plan (1961 - 1966)?

A
  • > Model - Gadgil Yojana

- > Objective - Agriculture and Industry reach, self sufficiency

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52
Q

Which method is taking the lead the best measure of growth of a country?

  • > Net domestic product
  • > Gross national product
  • > Gross domestic product
  • > Net national product
A

The best measure of the growth of a country is net national product as it first covers all the nationals of a country and is also a net increase after subtracting depreciation . It is also called as purist form of national income of an economic.

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53
Q

Canalised list of items in foreign trade of India refers to

1) Items to be imported by the private agencies
2) List of items to be subsidised
3) Items to be imported only by state owned undertaking
4) List of items to be granted duty concession

A

Canalised list of items in foreign trade of India refers to the items to be imported only by state-owned undertakings

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54
Q

When was Food Corporation of India established?

A

FCI - 1965

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55
Q

What was the objective of the 4th 5 year plan (1969 - 1974)?

A

-> Objective - Growth with stability and achievement of self reliance

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56
Q

When was 14 commercial banks were nationalised? Also when was ISRO formed?

  • > 1971
  • > 1970
  • > 1969
  • > 1968
A

both - 1969

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57
Q

What was the objective and model of the 5th 5 year plan (1974 - 1978)? Famous Slogan?

A
  • > Objective - Poverty Eradication
  • > Model - D D Dhar Model
  • > Slogan - Garibi Hatao
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58
Q

When was the first indian nuclear test conducted in Pokhran?

  • > 1973
  • > 1974
  • > 1975
  • > 1976
A

1974

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59
Q

When was Rolling Plan formed? By whom was it bought?

A
  • > Rolling Plan (1978- 1980)

- > By Janta Government

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60
Q

What was the objective and model of the 6th 5 year plan (1980 - 1985)?

A
  • > Objective - Tecnological self reliance, reducing povery and generating employment
  • > Input / Output Model
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61
Q

What was the objective and model of the 7th 5 year plan (1985 - 1990)?

A

-> Objective - Economic Growth, Modernisation, Self Reliance and Social Justice

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62
Q

What was the objective and model of the 8th 5 year plan (1992 - 1997)?

A
  • > New Economic Policy
  • > LPG
  • > P V Narshimha Rao goverment
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63
Q

What was the objective and model of the 9th 5 year plan (1997 - 2002)?

A
  • > Model - Input - Output Model

- > Objective - Growth with social justice and equality

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64
Q

What was the objective and model of the 10th 5 year plan (2002 - 2007)?

A
  • > Model - Statement of planning commission

- > Objective - Development with social justice and equality

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65
Q

When was RTI Act and NREGA launched?

  • > 2002
  • > 2003
  • > 2004
  • > 2005
A

RTI - 2005

NREGA

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66
Q

What was the objective and model of the 11th 5 year plan (2007 - 2012)?

A
  • > Model - Statement of Planning Commission

- > Objective - Towards faster and more inclusive growth

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67
Q

What was the objective and model of the 12th 5 year plan (2012 - 2017)?

A

-> Objective - towards faster, sustainable and more inclusive growth

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68
Q

Interest Income is a part of ?

  • > Non-Tax Revenue
  • > Revenue Receipt
  • > Both (a) and (b)
  • > Neither (a) and (b)
A

Non- Tax Revenue

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69
Q

Revenue deficit is equal to?

  • > Total Expenditure- Revenue Receipt
  • > Revenue Expenditure - Revenue Receipt
  • > Fiscal Deficit - Interest Payments
  • > Fiscal Deficit - Revenue Expenditure
A

Revenue Expenditure - Revenue receipt

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70
Q

Which of the following is not a revenue receipt?

  • > Recovery of loans
  • > Foreign Grants
  • > Profit of Public Enterprises
  • > Wealth Tax
A

Recovery of loans

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71
Q

Borrowings is a capital receipt because?

  • > it creates a liability
  • > it creates an asset
  • > it reduces a liability
  • > All of the above
A

it creates a liability

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72
Q

In a goverenment budget, revenue deficit is 50,000 crores qand borrowings are 75,000 crores. The fiscal deficit will be?

  • > 25,000 crores
  • > 1,25,000 crores
  • > 75,000 crores
  • > 50,000 crores
A

75,000

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73
Q

Identify the direct tax from the following examples

  • > Entertainment Tax
  • > Income Tax
  • > Excise Duty
  • > Custom Duty
A

Income Tax

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74
Q

Disinvestment by goverment means:

  • > selling of its fixed capital assets
  • > selling of shares of public enterprises held by it
  • > selling of its buildings
  • > all of the above
A

selling of shares of public enterprises held by it

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75
Q

Which of the following statement is not true for fiscal deficit?

  • > Represents the borrowing of government
  • > Is the differnece between total expenditure and total receipt of government
  • > is the difference between total expenditure and total receipt other than borrowing
  • > increases the future liability of government
A

Is the differnece between total expenditure and total receipt of government

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76
Q

Which of the following is not revenue expenditure?

  • > salary paid to army officers
  • > loan given to union territories
  • > interest paid on national debt
  • > pension paid to retired employees
A

loan given to union territories

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77
Q

Where is the headquarter and tagline of below bank.

Bank of Allahabad

A

Kolkata

-> A tradition of trust

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78
Q

Where is the headquarter and tagline of below bank.

Andhra Bank

A

Hyderabad

-> Where India Banks

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79
Q

Where is the headquarter and tagline of below bank.

Bank of India

A

Mumbai

-> Relationship beyond banking

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80
Q

Where is the headquarter and tagline of below bank.

Bank of Maharashtra

A

Pune

-> One family one bank

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81
Q

Where is the headquarter and tagline of below bank.

Axis Bank

A

Mumbai

-> Badhti ka naam zindagi

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82
Q

Where is the headquarter and tagline of below bank.

HDFC Bank

A

Mumbai

-> We understand your world

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83
Q

Where is the headquarter and tagline of below bank.

Corporation Bank

A

Mangalore

-> A premier public sector bank

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84
Q

Where is the headquarter and tagline of below bank.

IDBI Bank

A

Mumbai

-> Banking for All

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85
Q

Where is the headquarter and tagline of below bank.

Indian Bank

A

Chennai

-> Your tech friendly bank

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86
Q

Where is the headquarter and tagline of below bank.

Indian Overseas Bank

A

Chennai

-> Good people to grow with

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87
Q

Where is the headquarter and tagline of below bank.

United Bank of India

A

Kolkata

-> The bank that begins with ‘U’

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88
Q

Where is the headquarter and tagline of below bank.

Bank of Baroda

A

Vadodara

-> India’s International Bank

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89
Q

Where is the headquarter and tagline of below bank.

Central Bank of India

A

Mumbai

-> Central to you since 1911

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90
Q

Where is the headquarter and tagline of below bank.

ICICI Bank

A

Mumbai

  • > Hum haina, Khyaal aapka
  • > India’s largest private bank
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91
Q

Where is the headquarter and tagline of below bank.

Canara Bank

A

Bengaluru

-> Together we can

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92
Q

Where is the headquarter and tagline of below bank.

Dena Bank

A

Mumbai

-> Trusted Family Bank

93
Q

Where is the headquarter and tagline of below bank.

Oriental Bank of Commerce

A

Gurugram

-> Where every individual is committed

94
Q

Where is the headquarter and tagline of below bank.

Syndicate Bank

A

Manipal

-> Your failthful and friendly financial partner

95
Q

Where is the headquarter and tagline of below bank.

UCO Bank

A

Kolkata

-> Honors your trust

96
Q

Where is the headquarter and tagline of below bank.

Vijaya Bank

A

Bangaluru

-> A friend you can bank on

97
Q

Where is the headquarter and tagline of below bank.

Punjab and Sind Bank

A

New Delhi

-> Where service is a way of life

98
Q

Where is the headquarter and tagline of below bank.

Yes Bank

A

Mumbai

-> Experince our expertise

99
Q

Where is the headquarter and tagline of below bank.

Punjab National Bank

A

New Delhi

-> The bank you can bank upon

100
Q

Where is the headquarter and tagline of below bank.

Kotak Mahindra Bank

A

Mumbai

-> Lets make money simple

101
Q

Where is the headquarter and tagline of below bank.

Indusland Bank

A

Mumbai

-> We can dil se, we make you feel richer

102
Q

Where is the headquarter and tagline of below bank.

SBI along with its associates

A

Mumbai

-> With you all the way, Pure Banking Nothing Else, The Nation banks on us

103
Q

What is repo rate?

1) is the rate at which the RBI lends to state government
2) Is the rate at which the International aid agencies lend to RBI
3) Is the rate at which the RBI lends to banks
4) Is the rate at which the banks lend to RBI

A

3) Is the rate at which the RBI lends to banks

104
Q

Which of the following is not the function of RBI?

1) bankers bank
2) Controller of credit
3) Custodian of foreign exchange reserves
4) Allotting money directly to farmers for agricultural development

A

Allotting money directly to the farmers for agricultural development

105
Q

What is Cash reserve ratio(CRR)?

1) Fraction of the deposit that commercial banks lend to customers
2) Fraction of the deposits that RBI must keep with commercial banks
3) fraction of the deposits that commercial banks must keep with RBI
4) None of the above

A

The fraction of the deposits that commercial banks must keep with RBI

106
Q

What is the currency deposit ratio(CDR)?

1) Ratio of money held by the public in currency to that of money held in bank deposit
2) Ratio of money held by public in bank deposits to that of money held by public in currency
3) Ratio of money held on demand drafts to that of money held in Treasury bonds
4) None of the above

A

Ratio of the money held by the public in currency to that of money held in bank deposit

107
Q

Who issues one rupee notes in India?

1) RBI
2) Ministry of Finance
3) Ministry of Corporate Affairs
4) NABARD

A

Ministry of Finance

108
Q

Which of the following term is not used in the formation of monetary policy?

1) Cash Reserve Ratio
2) Repo Rate
3) Bank Rate
4) Blue Chip

A

Blue Chip - It refers to the very reliable company in stock market

109
Q

The RBI can decrease the money supply in the market by

1) Selling government securities
2) Buying government securities
3) Borrowing money from commercial bank
5) None of the above

A

Selling government securities

Borrowing money from commercial bank will decrease credit but it will have no impact on money supply

110
Q

In the terminology of economics and money demand the term M1 and M2 are known as

1) Short Money
2) Long Money
3) Broad Money
4) Narrow Money

A

Narrow Money

111
Q

Who is the author of the ancient book on economics, Arthashastra?

1) Kautilya
2) Chanakya
3) Sushruta
5) Bhattacharya

A

Chanakya or Kautilya

112
Q

Which among the following is considered to be the most liquid asset?

1) Gold
2) Money
3) Laud
4) Treasury Bond

A

Money

113
Q

What is the name of the first Regional Rural Bank? When was it formed?

1) EXIM Bank
2) NHB
3) Pratham bank sponsored by Syndicate bank
4) Bhartiya Mahila Bank

A

Pratham Bank in 1982

114
Q

When was RBI established, Nationalised and where is it’s headquarter?

A

Established- 1 April, 1935
Nationalised- 1 Jan, 1949
HQ- Mumbai

115
Q

What is the maximum tenure of RBI governor and Deputy governor?

A

Maximum tenure of RBI Governor is five years or 65 years whichever earlier

Maximum tenure of RBI Deputy Governor is five years or 62 years whichever earlier

116
Q

Who was the first governor of RBI?
Who was the first RBI governor of independent India?
Who is the current(25th) RBI Governor?

A

1st Governor- Osborne Smith
1st Indian Governor- C D Deshmukh
Current Governor - Shaktikanta Das

117
Q

Inflation is the state in which

1) The value of money decreases
2) The value of money increases
3) The value of money increases and then decreases
4) The value of money decreases first and increases later

A

The value of money decreases

118
Q

When there is high inflation in the economy, how will it affect the supply of money in the economy?

1) No effect on the money supply
2) Supply of money decreases
3) Supply of money increases
4) None of the above

A

Supply of money increases

119
Q

What is the stagflation?

1) Situation in which the economic experiences recession
2) Situation in which the economy have inflation and recession all together
3) An economy where unemployment is high
4) both 2 and 3

A

Both second and third

120
Q

Which off the following measure is adopted to reduce inflation?

1) Reduction in bank rate
2) Reduction in repo rate
3) Increases in government expenditure
4) Cuts in government spending

A

Cuts in government spending

121
Q

What is the base year for measuring inflation at wholesale price index (WPI ) in India?

1) 2004-05
2) 2001-02
3) 2011-12
4) 2014-15

A

2011-12

122
Q

Which off the following can be under taken to control inflation?

1) Control on public expenditure
2) Control on hoarding and black marketing
3) Effective control on credit
4) All of the above

A

All of the above

123
Q

The amount of bank to maintain in form of cash, gold and other securities before giving credit is

1) SLR
2) CRR
3) OMO - Open market operations
4) Bank Rate

A

SLE

124
Q

Which of the following is an effect of inflation?

1) Erosion in purchasing power
2) Affects relative price of goods
3) Increases in inequalities of income
4) All of the above

A

All of the above

125
Q

When was CRISIL established and by whom? Where is its headquarters?
1) 1991
2) 1987
3) 1977
4) 1997
Credit rating and information services of India Ltd

A

1987
by ICICI Bank
HQ - Mumbai

126
Q

When was ICRA established? Where is its headquarters?
1) 1990
2) 1991
3) 1992
4) 1993
ICRA : Investment Information and Credit Rating Agency

A

1991

HQ - New Delhi

127
Q 
When was CARE established? Where is its headquarters?
1) 1990
2) 1991
3) 1992
4) 1993
Crest Analysis and Research Limited
A

1993

HQ - Mumbai

128
Q

Which is the oldest stock exchange of Asia?

1) BSE
2) NSE
3) OTCEI
4) SEBI

A

BSE

129
Q

Which organisation is the watchdog of stock market in India? Which organisation act as a watchdog of money market of India?

1) RBI
2) IRDA
3) SEBI
4) None of the above

A

SEBI, established under the SEBI Act 1992

Money market – RBI

IRDA - Watchdog of insurance market

130
Q

Which off the terms is not associated with stock market?

1) Bull
2) Bear
3) Sensex
4) Cow

A

Cow

131
Q

Which is the biggest rating agency of India?

1) CRISIL
2) CARE
3) ICRA
4) None of the above

A

CRISIL

132
Q

Which all agencies are included under big three which provide credit ratings to companies and governments?

1) Standard and Poor
2) Fitch
3) Moody’s
4) All of the above

A

All of the above

133
Q

What is the duration of treasury bills?

1) 181 days
2) 182 days
3) 93 days
4) 365 days

A

182 days

Duration of treasury bills are - 91, 182 and 364 days only

134
Q

If a person is ready to work at prevailing wage rate in the market, but he is unable to find the work, then what type of unemployment would it be called?

1) Voluntary unemployment
2) Involuntary unemployment
3) Seasonal unemployment
4) None of the above

A

In voluntary unemployment

135
Q

Which book was written by Dadabhai Naoroji on Indian poverty and economic under British rule?

1) Indian economy under British Raj
2) British rule and economic drain of India
3) Economic drain and poverty of India
4) Poverty and Un-British rule in India

A

Poverty and Un-British rule in India

136
Q

Who are counted in the labour force of a country?

1) The population of 18 to 60 years of age
2) The population of 15 to 65 years of age
3) The population of 18 to 65 years of age
4) Population of 21 to 62 years of age

A

Population of 15 to 65 years of age

137
Q

If new computers are being installed in a company and some employees are fired from the job due to lack of computer knowledge then what kind of unemployment will it be called?

1) Disguised unemployment
2) Structural unemployment
3) Hidden unemployment
4) Frictional unemployment

A

Structural unemployment

138
Q

Unemployment which occurs when workers move from one job to another job is known as?

1) Cyclical unemployment
2) Seasonal unemployment
3) Technological unemployment
4) Frictional unemployment

A

Frictional unemployment

139
Q

Which off the following is the nodal ministry to identify BPL families in urban area?

1) Ministry of economic affairs
2) Ministry of social welfare
3) Ministry of housing and poverty alleviation
4) Ministry of Urban development

A

Ministry of housing and poverty alleviation

140
Q

Firms cooperate with each other in deter mining price or output or both. It is a feature of which type of market?

1) Pure oligopoly
2) Noncollusive oligopoly
3) Imperfect oligopoly
4) Collusive oligopoly

A

Collusive oligopoly

141
Q

Product differentiation is the distinguishing feature of which form of market?

1) Monopoly
2) Oligopoly
3) Perfect competition
4) Monopolistic competition

A

Monopolistic competition

142
Q

Under perfect competition, the firm and is normal profit in the long run because of?

1) Large number of buyers and sellers
2) Absence of selling cost
3) Free entry and exit
4) Homogeneous commodity

A

Free entry and exit

143
Q

Which of these is a characteristic feature of monopoly?

1) Single seller
2) Price maker
3) Barrier on entry and exit of firms
4) All of these

A

All of these

144
Q

Which of these is not a market structure in economics?

1) Perfect competition
2) Monopoly
3) Monopolistic competition
4) Intense competition

A

Intense competition

145
Q

When a producer charges different customers for the same product at same time, Then the firm is exercising?

1) Price competition
2) Non price competition
3) Price discrimination
4) None of these

A

Price discrimination

146
Q

‘Interdependence between firms’ is the feature of this type of market form?

1) Oligopoly
2) Monopolistic competition
3) Monopoly
4) Perfect competition

A

Oligopoly

147
Q

Demand curve under oligopoly is?

1) Less elastic
2) Perfectly elastic
3) Highly elastic
4) Indeterminate

A

Indeterminate

148
Q

Identify the market from which has indeterminate demand curve?

1) Monopoly
2) Monopolistic competition
3) Oligopoly
4) Perfect competition

A

Oligopoly

149
Q

Under which market form, firm is the price taker?

1) Perfect competition
2) Monopoly
3) Oligopoly
4) Monopolistic competition

A

Perfect competition

150
Q

Which of the following items raises the supply of foreign exchange?

1) Import of goods from China
2) Indian students going to USA for MBA
3) Donation of $50 million received from Microsoft
4) Purchase of land in England

A

Donation of $50 million received from Microsoft

151
Q

Depreciation of domestic currency leads to rise in?

1) Exports
2) Imports
3) Both first and second
4) Neither first nor second

A

Exports

152
Q

Flexible exchange rate system is also known as?

1) Pegged exchange rate system
2) Dirty floating
3) Floating exchange rate
4) Both second and third

A

Floating exchange rate

153
Q

Export and imports of gold is also known as?

1) Invisible trade
2) Visible trade
3) One-sided transactions
4) Unrequired transfers

A

Visible Trade

154
Q

____ is the difference between value of goods sold to the rest of the world and value of goods imported from the rest of the world?

1) Balance of payment
2) Balance of trade
3) Balance of current account
4) Balance of capital account

A

Balance of trade

155
Q

Gift send remittances to abroad are recorded on the?

1) Credit side of current account
2) Debit side of capital account
3) Debit side of current account
4) Credit side of capital account

A

Debit side of current account

156
Q

Inflow of foreign exchange is recorded on which side?

1) Credit
2) Debit
3) Either first or second
4) Neither first nor second

A

Credit

157
Q

‘Unilateral transfers’ are also known as?

1) Bilateral transfers
2) One way transfers
3) Both first and second
4) Neither first or second

A

One way transfers

158
Q

The average variable cost curve is ___ shapes?

1) U
2) V
3) X
4) W

A

U

159
Q

Ad Valorem means?

1) Levying taxes which are disproportionate to the estimate value of goods or transactions
2) Levying taxes which are proportionate to the estimated value of goods or transactions
3) Levying taxes which are in accordance with the cost accrued in making an item
4) Levying taxes in accordance with the depreciative value of the item through half of its lifetime

A

Levying taxes which are proportionate to the estimated value of goods or transactions

160
Q

Movement along the supply curve is known as_____?

1) Contraction of supply
2) Expansion of supply
3) Increase in supply
4) Expansion and contraction of supply

A

Movement along the supply curve takes place when all the factors affecting supply remained constant and only the price changes. Therefore, when price increases supply contracts and when price decreases supply expands

161
Q

The _____ curve represents the demand of all consumers in the market taken together at different levels of the price of the good.

1) Monotonic
2) Indifferent
3) Market Demand
4) Diminishing

A

The market demand curve is the summation of all the individual demand curve in a given market. It shows the quantity demanded of the code by all individuals that wearing price.

162
Q

Neo-Malthusian Theory is associated with which of the following?

1) Employment
2) Poverty
3) Resource Scarcity
4) Income

A

This is the advocacy of population control programme, to ensure resources for current and future population. This theory believes population and that limited population in check and reduce economic growth, therefore, growth should be controlled.

163
Q

World helps countries with loans for the purpose of:-

  • > Reconstruction and Development
  • > Stimulating private investment
  • > Tracking foreign exchange crisis
  • > meeting deficit in government budget
A

Reconstruction and Development

164
Q

Where is the headquarter of IBRD - International Bank for Reconstruction and Development?

  • > Geneva
  • > Washington DC
  • > Geneva
  • > Paris
A

Washington DC

165
Q

The Ease of Doing Business Report is prepared by which of the following organisation every year?

  • > World Bank
  • > Asian Development Bank
  • > International Monetary Fund
  • > World Trade Organisation
  • > None of these
A

World Bank

166
Q

The headquarters of World Trade Organisation is at?

  • > New York
  • > Geneva
  • > Rome
  • > Doha
A

Geneva

167
Q

The World Trade Organisation was formed in?

  • > 1991
  • > 1995
  • > 1997
  • > 1999
A

1995

168
Q

Special Drawing Rights (SDR) facility is available at?

  • > International Monetary Funds
  • > International Bank for Reconstruction and Development (IBRD) / World Bank
  • > International Development Association
  • > Organisation of Economic Co-operation and Development (OECD)
A

International Monetary Fund

169
Q

In some parts of our country, apart from Rabi and Kharif, zaid crops is grown from March to June. Which among the following comes under Zaid crops?

  • > Barley
  • > Soya Bean
  • > Muskmelon
  • > Lady Finger
A

Musk Melon

170
Q

Commercialization of agriculture implies

  • > cultivation of timbers
  • > plantation
  • > production of crops for sale
  • > production of crops like wheat and rice
A

production of crops for sale

171
Q

The nature of unemployment in agriculture in India is?

  • > only seasonal
  • > only disguised
  • > all of the above
  • > none of the above
A

all of the above

172
Q

AGMARK sign for agriculture product is a guarantee of standard?

  • > Quantity
  • > Quality
  • > Weight
  • > SIze
A

Quality

173
Q

Kisan Credit Card Scheme was introduced in?

  • > 1991
  • > 1996
  • > 1998
  • > 2008
A

1998

174
Q

Blue and White revolution is related to?

  • > Fish and Fertilizers
  • > Milk
  • > Fish and Milk
  • > Fish and Agriculture
A

Fish and Milk

175
Q

Verghese Kurein is related to?

  • > Blue revolution
  • > white Revolution
  • > Yellow Revolution
  • > Green Revolution
A

White Revolution - Milk

176
Q

In which matter green revolution has achieved maximum success?

  • > Sugarcane
  • > Pulses
  • > Wheat
  • > Rice
A

Wheat followed by Rice

177
Q

Product per unit of labour employed is termed as?

  • > Average Product
  • > Marginal Product
  • > Total Product
  • > None of these
A

Average Product

178
Q

Which of the following is not a phase in the law of variable proportions?

  • > Increasing returns to a factor
  • > constant returns to a factor
  • > diminishing returns to a factor
  • > negative returns to a factor
A

constant returns to a factor

179
Q

The law which Deals deals with input-output relationships, when the output is n=increased the quantity of one input?

  • > Variable Proportion
  • > Supply
  • > Demand
  • > Equi-Marginal utility
A

Variable Proportion

180
Q

When Average Production (AP) is maximum, Marginal Product(MP) is equal to?

  • > AP - Average Product
  • > TP - Total Product
  • > Zero
  • > One

AP- Average Product
MP - Marginal Product
TP -Total Product

A

AP

181
Q

What is the maximum point of Total Production?

  • > When AP becomes zero
  • > When MP becomes zero
  • > When MP cuts AP
  • > None of these

AP- Average Product
MP - Marginal Product
TP -Total Product

A

When MP becomes zero

182
Q

Both AP and MP curves are generally

  • > U-shaped
  • > inversely U-shaped
  • > rising
  • > falling

AP- Average Product
MP - Marginal Product
TP -Total Product

A

inversely U-shaped

183
Q

Variable factors refer to those factors of production?

  • > which can only be changed in long run
  • > which can be changed in the short run
  • > which can never be changed
  • > none of these
A

which can be changed in the short run

184
Q

Average product cannot be negative because?

  • > total product can never be zero
  • > total product can never be negative
  • > none of them are true
  • > both of them are true
A

total product can never be negative

185
Q

Minimum point of MC curve comes before the minimum point of?

  • > AC Curve
  • > AVC Curve
  • > Both of them
  • > None of them

MC - Marginal Cost
AC - Average Cost
AVC - Average Variable Cost
AFC - Average Fixed Cost

A

Both of them

186
Q

AFC curve:

  • > touches the x axis
  • > touches the y axis
  • > touches both x and y axis
  • > does not touch either of the axis

MC - Marginal Cost
AC - Average Cost
AVC - Average Variable Cost
AFC - Average Fixed Cost

A

does not touch either of the axis

187
Q

The shape of the total FC curve is?

  • > U Shapes
  • > Downward sloping
  • > Inversely S-shaped
  • > Horizontal straight line parallel to x axis
MC - Marginal Cost
AC - Average Cost
AVC - Average Variable Cost
AFC - Average Fixed Cost
FC - Fixed Cost
A

Horizontal straight line parallel to x axis

188
Q

Normal profit earned by a firm are included in?

  • > Implicit Cost
  • > Explicit Cost
  • > Fixed Cost
  • > Variable Cost
A

Implicit Cost

189
Q

Which curve is not affected by Fixed Cost?

  • > MC Curve
  • > TC curve
  • > AC curve
  • > AFC curve
MC - Marginal Cost
AC - Average Cost
AVC - Average Variable Cost
AFC - Average Fixed Cost
FC - Fixed Cost
A

MC Curve

190
Q

Marginal Cost refers to addition to the total cost when one more unit of output is

  • > Wasted
  • > Produced
  • > Employed
  • > Sold
A

Produced

191
Q

What happens to Total Revenue(TR) when Marginal Revenue is positive?

  • > TR increases
  • > TR decreases
  • > TR is maximum
  • > TR remains same
A

TR increases

192
Q

Average Revenue (AR) curve is downward sloping when?

  • > Price falls with rise in output
  • > Price initially rises at an increasing rate, then at a diminishing rate
  • > Price remains same at all levels of output
  • > None of these
A

Price falls with rise in output

193
Q

When price falls with rise in output, Total Revenue (TR) is ____ when Marginal Revenue (MR) is zero.

  • > Maximum
  • > Minimum
  • > Zero
  • > None of these
A

Maximum

194
Q

If average revenue curve is a horizontal straight line, then marginal revenue curve will be?

  • > Downward sloping
  • > Upward sloping
  • > Horizontal straight line
  • > Inversely S shaped
A

Horizontal straight line

195
Q

A balloon seller has decided that he will sell all his balloons at a fixed price of Rs 10 each. In such case, Total Revenue (TR) curve will be?

  • > Horizontal straight line parallel to the x axis
  • > Vertical straight line parallel to the y axis
  • > Positively sloped straight line passing from the origin
  • > Downward sloping straight line
A

Positively sloped straight line passing from the origin

196
Q

If Total Revenue = TR and Q = Quantity sold, then TR/Q revers to

  • > Zero Revenue
  • > Average Revenue
  • > Marginal Revenue
  • > None of these
A

Average Revenue

197
Q

When total revenue is constant, what will be the effect on average revenue?

  • > AR (Average Revenue) will fall
  • > AR will increase
  • > AR will also be constant
  • > No effect on AR
A

AR will also remain constant

198
Q

What is the reason for the currency inflation?

1) Production decline
2) Growth in currency supply and declining production
3) Increase in currency supply
4) Increase in production

A

Currency inflation is defined as the decrease in the purchasing power with respect to per unit of the currency. It may take place because of the gap in demand and supply in the currency of any country.
Ans - Increasing currency supply

199
Q

Invisible export means export of_______

1) Services
2) Prohibited goods
3) Restricted goods
4) Goods as per logistics

A

Invisible export means export of services. It is that exports export which does not have a tangible physical appearance. Examples services, transfers of remittance Grant, income investment.

200
Q

Microeconomics is also called_____

1) Profit theory
2) Loss Theory
3) Price theory
4) Expenditure theory

A

The theory of price is a microeconomic principle that uses the concept of supply and demand to determine the appropriate price point for a good or service. This simple theory of deter mining crisis is one of the core principles underlying economic theory.

201
Q

If Marginal Cost = MC and Marginal Revenue = MR, then for achieving equilibrium output,

1) MC curve should cut MR curve from above
2) MC curve should cut MR curve from below
3) MC curve should not cut MR curve at all
4) MC curve should be tangent to MR curve

A

MC curve should cut MR curve from below and MC =MR

202
Q

In case of perfect competition, a firm is in equilibrium when

1) MC = MR
2) MC cuts MR from below
3) MC is rising when it cuts MR
4) All of these

A

All of these

203
Q

_____ refers to a situation when a firm has no intention to expand or contract the output?

1) Producer’s equilibrium
2) Market equilibrium
3) Consumer’s equilibrium
4) None of these

A

Producer’s equilibrium

204
Q

Excess of receipts from sale of goods over expenditure incurred on producing them is termed as:

1) Average Revenue
2) Revenue
3) Profits
4) Marginal Revenue

A

Profits

205
Q

If MR is more than MC at a particular level of output, then the producer will:

1) Reduce Production
2) Increase Production
3) Keep the production at current level
4) None of these

A

Increase production

206
Q

Producer is not at equilibrium when MC>MR because

1) Profit can be increased by producing more
2) Benefits is less than cost
3) Both 1 and 2
4) None of these

A

Benefit is less than cost

207
Q

Producer’s equilibrium refers to stage of the output level when?

1) Firm earns maximum profits
2) Firm bears minimum losses
3) Firm has no inclination top expand or contract the output
4) All of these

A

All of these

208
Q

Which of these is a condition for consumer equilibrium by indiffernece curve analysis?

1) MUx = Px
2) MUx/Px = MUy/Py
3) MRSx = Px/Py
4) PUx = MUy

A

MRSx = Px/Py

209
Q

Total Utility is ____ at the point of satiety.

1) Minimum
2) Maximum
3) Zero
4) None of these

A

Maximum

210
Q

An indifference curve always:

1) Slopes downward from left to right
2) Slopes upwards from left to right
3) Is parallel to the y-axis
4) Is parallel to the y-axis

A

Slopes downward from left to right

211
Q

If the consumption of an additional unit of a commodity causes no change in Total Utility, then net Marginal Utility is?

1) Zero
2) Positive
3) Negative
4) Constant

A

Zero

212
Q

According to the law of diminishing marginal utility, satisfaction obtained from consumption successive unit:

1) Increases
2) Decreases
3) Remains same
4) Either increases or decreases

A

decreases

213
Q

Indifference curves are:

1) concave to the origin
2) convex to the origin
3) upward sloping straight line passing from the origin
4) none of these

A

convex to origin

214
Q

In case of a single commodity, consumer equilibrium is achieved when?

1) MUx > Px
2) MUx < Px
3) MUx does not equal to Px
4) MUx = Px

A

MUx = Px

215
Q

_____ measures the slope of Indifference curve?

1) Budget Line
2) Marginal Rate of substitution
3) Marginal Rate of Transformation
4) None of these

A

Marginal Rate of Substitution

216
Q

What is meant by ‘Capital Gain’?

1) Part of profits added to the capital
2) Rise in the value of a capital asset
3) Additions to the capital asset
4) None of these

A

Rise in the value of a capital asset

217
Q

A market in which new securities are issued on an exchange for companies, government and other groups is known as?

1) Secondary Market
2) Grey Market
3) Primary Market
4) Black Market

A

Primary Market - this market issue new securities on an exchange for companies, governments and other groups to obtain financing through debt-based or equity-based securities

218
Q

Who gave the ‘general equilibrium theory’?

1) J M Keynes
2) Leon Walras
3) David Ricardo
4) Adam Smith

A

General equilibrium theory was first propounded by Leon Warlas in 1874. It attempts to explain that interaction of demand and supply will result in an overall general equilibrium.

219
Q

Which off the following is not true about a demand draft?

1) It is a negotiable instrument
2) It is a banker’s check
3) It may be dishonoured for lack of funds
4) It is issued by a bank

A

I demand draft cannot be dishonoured by the bank for lack of funds, this is because it guarantees the amount of money for which it is placed and that money is taken before the draft is made.

220
Q

Which among the following is not an account under balance of payments?

1) Current Account
2) Capital Account
3) Official Reserves Account
4) Unilateral Payments Account

A

The balance of payment, also called as balance of international payments, is the record that consists of all the economic transactions of a country between its residents and the world for over a year.
The official reserves account does not come under it since it is a subdivision of the capital account.

221
Q

Which of the following data charged by banks to their most credit worthy customers?

1) Prime lending rate
2) Statutory liquidity rate
3) Bank Rate
4) Repo Rate

A

The prime lending rate is the rate at which banks lend to their most credit worth the customers, including large corporations. It is often used as a benchmark for other loans like credit card and small business loans.

222
Q

Medium-term loans are provided for a period of______

1) 1 year to 2 years
2) 15 months to 3 years
3) 15 months to 4 years
4) 1 year to 3 years

A

Medium-term loans or non-is where the payments are made over a period of between one and three years. The short-term loan is basically for less than a year and long-term loans can be repaid within a time limit of 20 to 30 years.

223
Q

Which among the following is not an instrument of fiscal policy?

1) Taxation
2) Public Expenditure
3) Public Debt
4) Credit Rationing

A

Some of the major instruments of fiscal policy as follows: Budget, taxation, public expenditure, public works, public yet. Fiscal policy is the use of government spending, taxation and transfer payments to influence aggregate demand.

224
Q

The contingency fund of India is placed at whose disposal?

1) The Prime Minister
2) Judge of Supreme Court
3) The President
4) The Finance Minister

A

The contingency fund of India established under article 267 (1) of the Constitution is the money maintained for a specific purpose which is placed at the disposal of the President to enable him/her to make advances to meet urgent unforeseen expenditure, pending authorisation by the Parliament.

225
Q

What does indifference curve represent?

1) Levels of income and capital
2) Satisfaction derived from two goods
3) Income from two businesses
4) Relationship between expenditure and saving

A

The indifference curve represents the sets of good but different qualities to which the consumer is indifferent. The sets represent satisfaction that consumer direct from the two boards.

226
Q

In a centrally planned economy, the ______ plans all the important activities in the economic.

1) Industrialists
2) Citizens
3) Government
4) Judiciary

A

A centrally planned economy is an economic system in which government makes economic decisions rather than the interaction between consumers and businesses. The government of a centrally planned economy decide where and when production and investment will be directed.

227
Q

_____ says that if we keep increasing the employment of an input, with other inputs fixed, eventually a point will be reached after which the resulting addition to output ( i.e. marginal product of that input) will start falling.

1) Law of diminishing marginal product
2) Law of variable proportion
3) The short run
4) The long run

A

Law of diminishing marginal product states that while increasing one input and keeping other inputs at the same level may initially increase output, further increase in that input will have a limited effect, and eventually no effect or a negative effect, on output.

228
Q

A ____ deficit is financed by net capital flows from the rest of the world, does Bhai capital account surplus.

1) Current Account
2) Savings Account
3) Capital Account
4) Asset Account

A

And economics, a country’s current account is one of the two components of its balance of payments, the other being the capital account. The current account deficit is when a country imports more goods, services, and capital then it exports.

GK (5 decks)

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