op eco 3 Flashcards
- Which of the following sets belong to Central tax? (A) Excise Duty, Sales Tax and Customs Duty (B) Excise Duty, Customs Duty and Income Tax. (C) Income Tax, Customs Duty and House Tax (D) Customs Duty, Entertainment tax and Income Tax
(B) [SSC Tax Asst. Exam, 2005, SSC CGL Exam 2015] Exp: Excise duty, Custom duty and Income tax is levied by central government.
17.Which of the following taxes is not shared between the union and the states? (A) Income Tax (B) Excise Duty (C) Corporation Tax (D) Sales Tax
(D) [SSC SO Exam, 2005] Exp: Sales tax can be levied by both central government and state government. The sale within the state is under the authority of state government and inter-state sale is within the authority of central government.
18.Which of the following taxes is levied by the Union and appropriated and planned by the states? (A) Service Tax (B) Stamp Duty (C) Property Tax (D) Passenger and Freight Duty
(B) [SSC SO Exam, 2005] Exp: Stamp duty is levied by union and appropriated and planned by states.
19.Which of the following taxes is such which does not cause rise in price? (A) Import Duty (B) Income Tax (C) Octoroi (D) Sales Tax
(B) [SSC SO Exam, 2005] Exp: Income tax is levied on income of individuals. Hence, it does not lead to increase in prices of commodities.
20.Who among the following has suggested tax on expenditure? (A) Dalton (B) Kaldor (C) Musgrave (D) Gautam Mathur
(B) [SSC Tax Asst. Exam, 2005] Exp: Micholas Kaldor in his work ‘An expenditure tax
- The proceeds of Income tax go to- (A) Central Government (B) State Government (C) Centre and States (D) Corporation Authorities
(C) [SSC CPO Exam, 2003] Exp: The proceeds of Income tax are shared between centre and states. While it is imposed and collected by central government.
29.How does the consumer benefit with VAT? (A) It removes tax on tax and thus reduces price rise (B) Reduces the cost of production (C) With the abolition of the sales tax (D) Due to the exemption of small businesses from the tax within certain limits prescribed by the state
(A) [SSC CPO Exam, 2003] Exp: Value added tax eliminates the cascading effect on tax resulting reduction in price rise. In value added tax, tax is placed whenever a value is added at the stage of production.
30.The receipts of which of the following taxes/ duties are not shared with the states? (A) Tax on income except agriculture (B) Corporation tax (C) Surcharge on Income tax (D) Capital gain tax
(A) [SSC SO Exam, 2003] Exp: Tax on income except agriculture are not shared with states and it is levied and collected by central government.
31.Corporation tax is a tax imposed on- (A) The net incomes of the companies (B) The corporate properties (C) The utilities provided by the corporation (D) Tax imposed by the corporation on individual properties
(A) [SSC MTS. 2002] Exp: Corporation tax is a type of direct tax levied on net income of the company. It is levied by central government.
32.The duties levied on alcoholic liquors, narcotic drugs and opium come under- (A) Central Excise Duty (B) Land Revenue (C) State Excise Duty (D) General Sales Tax
(A) [SSC MTS. Exam, 2002] Exp: The duties levied on alcohol liquor, narcotic drugs and opium comes under central excise duty. Excise duty is a type of tax which is levied on goods produced within the country.
33.Parallel economy emerges due to- (A) Tax Avoidance (B) Tax Evasion (C) Tax Compliance (D) Tax Estimation
(B) [SSC MTS. Exam, 2002] Exp: Parallel economy is the economy based on black money i.e. unaccounted money. This type of economy exists due to functioning of illegal sector or sectors not complied to the government. Tax evasion is a mechanism of payment or underpayment of taxes by hiding the facts from the government. The money earned from tax evasion generates black money and when this money comes in economy it is called as parallel economy.
34.A tax is characterised by horizontal equity if its liability is- (A) Proportional to the income of tax payers (B) Similar for tax payers in similar circumstances (C) Proportional to the expenditure of tax payers (D) The same for every tax payer
(A) [SSC SO Exam, 2001] Exp: Horizontal equity in economics is a theory that states people having simillar income or earning should obliged to pay same or equal, taxes. So a tax is characterised by horizontal equity if its liability is proportional to the income of tax payers
. 35. Which authority recommends the principles governing the grants in aid of the revenues of the states out of the Consolidated Fund of India? (A) Public Accounts Committee (B) Union Ministry of Finance (C) Finance Commission (D) Inter-State Council
(C) [SSC SO Exam, 2001] Exp: Finance commission laid out the principles which govern the grant-in-aid of the revenues to the states out of the Consolidated Fund of India.
35.Buoyancy of a tax is defined as- (A) Percentage increase in tax revenue/ percentage increase in tax base (B) Increase in tax revenue/percentage increase in tax coverage (C) Increase in tax revenue/increase in tax base (D) Percentage increase in tax revenue/increase in tax coverage
(C)Exp: Tax buoyancy is defined as the ratio of increase in tax revenue to percentage increase in tax coverage. It deals with increasing growth of an economy rather than changing tax rates.
36.Which one of the following is not an Example of Indirect tax? (A) Sales Tax (B) Excise Duty (C) Customs Duty (D) Expenditure Tax
(D) [SSC CGL Exam, 2000] Exp: Expenditure tax is not an Indirect tax. It is imposed on expenditure done by people rather than income of people.
37.’Quota’ is- (A) Tax levied on imports (B) Imports of capital goods (C) Limit on the quantity of imports (D) Limit on the quantity of exports
(C) [SSC MTS Exam, 2000] Exp: Import quota is the restrictions placed by government on quality of imports through various rules and regulations.
38.Which is the biggest tax paying sector in India? (A) Agriculture sector (B) Industrial sector (C) Transport sector (D) Banking sector
(B) [SSC CGL Exam, 2010] Exp: In India the biggest tax paying sector is Industrial sector.
39.The incidence of tax refers to,- (A) Who pays the tax (B) Who bears the burden of tax (C) How taxes can be shifted (D) Who transfers the tax burden
(B) [SSC MTS. Exam, 2002] Exp: Incidence of tax refers to the people who bears the burden of tax.
40.Ad Valorem tax is levied- (A) According to value added by the government. (B) According to value addition to a commodity (C) According to value given by producers (D) According to value added by the Finance ministry
(C) [SSC MTS Exam 2002, SSC CHSL 2017] Exp: Ad valorem tax is the tax which is imposed on the value of the property. Ad valorem is a Latin word which means according to value.
41.State which amongst the following is not true about VAT (A) All States have uniform vat for the same product (B) State have discretion to fix the rate of tax within the four rates prescribed (C) It will promote production efficiency of investments (D) It will make our exports more competitive
(A) (SSC Section Officer (Audit) 2003) Exp: One of the feature of value added tax is that it is not uniform for same product throughout all the states.
42.Which amidst the following taxes collected by the Union is NOT mandated to be assigned to the States? (A) Terminal taxes on goods or passengers carried by railway, sea or air. (B) Taxes on railway fares and freights. (C) Taxes on consignment of goods. (D) Service Tax
(D) (SSC CGL Pre 2004) Exp: Service tax is tax levied by central goverment on service provided. It is calculated by union and is not mandated to be assign to states.
43.Among the tax revenues of the Union Government, what is the largest source? (A) Income tax (B) Corporation tax (C) Central Excise (D) Customs Duty
(B) (SSC CGL Pre 2000) Exp: Corporation tax is a tax imposed on income of the company. Corporation tax is the largest source for tax revenues to the union government.
44.The largest source of revenue to the Union Government is- (A) Income tax (B) Central Excise Duty (C) Customs Duty (D) Wealth Tax
(A) (SSC CGl Pre 2002) Exp: Corporation tax is tax imposed on income of company. Corporation tax is the largest source for tax revenue to the union government. Second largest source of revenue to the union government is Income tax.
45.The Government of India derives its single largest source of revenue from- (A) Direct Taxes (B) Customs Duties (C) Deficit Financing (D) Union Excise Duties
(A) (SSC CGL Pre 2008) Exp: Direct taxes because direct tax involves corporation tax that is tax imposed on income of company. Corporation tax is the largest source for tax revenue to the union government. Second largest source of revenue to the union government is Income tax.
46.For which tax, was constitutional status given much later after its introduction in a small way in 1994-95? (A) Customs Duty (B) Coporation Tax (C) Taxes on Services (D) Income tax
(C) (SSC CGL Pre 2013) Exp: Tax on services was given consititutional status much later after its introduction in a small way in 1994-95.
- Indirect tax means: (A) There is not direct relationship between the tax payer and the government. (B) Direct relationship between tax payer and the government. (C) Tax base is income (D) The incidence and impact are on the same person on whom tax is imposed.
(A) (SSC CGL Pre 1999) Exp: Indirect taxes are those taxes in which incidence and tax impact are on different persons. There is not direct relationship between the tax payer and government.
49.The incidence of sales tax falls on- (A) Consumers (B) Wholesale dealers (C) Retail dealers (D) Producers
(D) (SSC Section Officer 2003) Exp: In sales tax; tax incidence falls on producer because producer is the unit where tax is imposed but tax impact is on consumer.
50.The ‘Canons to Taxation’ were propounded by- (A) Edwin Canon (B) Adam Smith (C) J.M. Keynes (D) Dalton
“(B) (SSC CGl Pre 2001) Exp: Canons to taxation were propounded by Adam Smith in his famous book ““wealth of Nations””. Canons of taxation are the basic principles compilation to build a good tax system.”
51.The tax levied on gross sales revenue from busines transactions is called- (A) Turnover Tax (B) Sales Tax (C) Capital Gains Tax (D) Corporation Tax
(A) (SSC CGL Pre 2002) Exp: Turover tax is tax paid on aggregate revenue from transaction. So tax levied on gross sales revenue from business transaction is called as turnover tax.
52.Interest paid by the government on the loans raised is called- (A) Debt Servicing (B) Deficit Financing (C) Discounted Budgeting (D) Bridge-loan
(A) (SSC CGL Pre 2006) Exp: Debt servicing is amount that is required to pay interest and principal on debt.
- Custom duty is an instrument of- (A) Monetary Policy (B) Foreign Trade Policy (C) Industrial Policy (D) Fiscal Policy
(B) (SSC MTS 2013) Exp: Custom duty is tax levied on import of article from another country, in other words it is barricade to import. It is an instrument of foreign trade policy.
53.Value-added means value of- (A) Output at factor cost (B) Output at market prices (C) Goods and services less depreciation (D) Goods and services less cost of intermediate goods and services
(D) (SSC CGL Pre 2013) Exp: Value- added means the value or addition to the article increased at each stage of production. So value added means value of goods and services less cost of intermediate goods and services.
54.Which of the following is an indirect tax? (A) Capital Gains Tax (B) Excise Duty (C) Wealth Tax (D) Estate Duty
(B) (SSC CAPF S.I ASI 2013) Exp: Indirect tax are those tax which have different tax impact and tax. In simple words indirect taxes are those taxes whose burden is transferred to end user. Like excise duty levied on manufacturer but burden is transferred to end user.
55.Taxes on professions can be levied by: (A) State government only (B) Both by state and union government (C) By panchayats only (D) Union Government only
(A) (SSC CAPFs SI & ASI 2003) Exp: Professional tax is tax levied by state government on all persons who practice any profession.
56.A part of National Debt known as External Debt is the amount- (A) Borrowed by its citizens from abroad (B) Lent by its citizens to foreign governments (C) Borrowed by its government from abroad (D) Lent by its government to foreign government
(C) (SSC (10+2) DEO & LDC 2013) Exp: A part of National Debt known as external debt is the amount borrowed by its government from abroad.
57.The non-expenditure costs which arise when the producing firm itself owns and supplies certain factors of production are- (A) Explicit costs (B) Original costs (C) Implicit costs (D) Replacement costs
(C) (SSC (10+2) DEO & LDC 2013) Exp: The non expenditure costs which arise when the producing firm itself owns and supplies certain factors of productions are Implicit costs.
58.Taxes are as certain as the death, because- (A) They constitute the major source of government revenue. (B) Government have no other source of revenue. (C) Most PSUs are run inefficiently. (D) Government has its own budget constraints.
(A) (SSC (10+2) DEO & LDC 2014) Exp: Taxes are as certain as death because tax constitute the major source of government revenue.
59.Which among the following is not a non-customs duty obstacle the world trade? (A) Quantity restriction (B) Establishment of Standard (C) Determination of import duty uniformly (D) Restrictions on goods quality
(C) (SSC Section Oficer (AUdit) 1997) Exp: Quantity restriction, restrictions on goods quality and establishment of standard of labour in manufacturing all these are non-customs duty obstacle. Detemination of import duty uniformly is not a non-customduty obstacle in world trade.
60.Which one of the following taxes is collected and utilized by the State Governments? (A) Personal income tax (B) Corporation tax (C) Land revenue (D) Custom duties
(C) (SSC CPO S.I 2004) Exp: Land revenue tax is collected and utilized by the state government.
61.Which of the following taxes are levied and collected by the centre but their net proceeds are wholly transferred to states? (A) Expenditure Tax and Gift Tax (B) Additional Duties of Excise in lieu of Sales Tax (C) Stamps and Registration (D) Taxes on Advertisement
(D) (SSC SAS Pre 2010) Exp: Taxes on advertisement are levied and collected by centre but net procedes of these are wholly transferred to states.
62.In India which of the following taxes is levied by the State governments? (A) Excise duty on liquor (B) Capital gains tax (C) Customs tax (D) Corporation tax
(A) [SSC CHSL 2013] Exp: Tax levied by state government are: Agriculture Income Tax, Stamp duty, Property tax, Excise on liquor and Narcotics, drugs tolls batting and gambling, entertainment tax, advertisement tax.
63.Excise duty is levied on- (A) Sale of goods (B) Production of goods (C) Import of goods (D) Export of goods
(B) [SSC CHSL 2013, SSC CGL 2010] Exp: Excise duty is amount of money that is received in form of tax on production of goods in economy.
64.The GST (Goods and Services Tax), recently passed by Government will be levied on which of the following products? (A) Petroleum Crude (B) Tobacco (C) Natural Gas (D) Aviation Turbine Fuel
(B) [SSC CHSL 2013] Exp: Petroleum crude, Natural Gas and Aviation fuel are exempted in GST.
65.Tax on inheritance is called______. (A) Excise duty (B) Estate duty (C) Gift tax (D) Sales tax
(B) [SSC CHSL 2014] Exp: Estate duty is tax levied on the money or property received from inheritance.
66.Which of the following tax systems will help to reduce economic inequalities in India? (A) Regressive Tax (B) Progressive Tax (C) Flat rate tax (D) None of these
(B) [SSC CGL 2014] Exp: Progressive tax is tax regime in which tax rate increase with increase in income and decreases with decreases in income. By imposing more tax on rich and distribution of amount recived in tax among marginalised. Hence, tax systems will help in reducing inequalities.
“67.Which State Government has recently abolished ““agriculture income tax”” (A) Karnataka (B) Rajasthan (C) Bihar (D) Assam”
(A) [SSC CGL 2014] Exp: In state budge 2016-17 of Karnataka, agriculture income tax has been abolished.
68.CENVAT is related to which of the following? (A) Sales Tax (B) Excise Duty (C) Custom Duty (D) Service Tax
(B) [SSC CGL 2014] Exp: Central value added tax is system of tax in which input tax is credited in the name of tax payer i.e. credit in respect of excise on inputs purchase for production.
69.What is an octroi? (A) Tax (B) Tax collection center (C) Tax processing center (D) Tax information center
(A) [SSC CGL 2014] Exp: Octroi is a local tax levied on goods and services brought into a distribution (local area) for consumption.
70.The main effect of Direct Taxes is on- (A) Food prices (B) Consumer goods (C) Capital goods (D) Income
(D) [SSC CGL 2015] Exp: Direct taxes are those taxes which have incidence of tax and impact of tax at the same point, resulting effect on income of the person.
71.The term ‘Dumping’ refers to- (A) The sale of a sub-standard commodity (B) Sale in a foreign market of a commodity at a price below marginal cost (C) Sale in a foreign market of a commodity just at marginal cost with too much of profit (D) Smuggling of goods without paying any customs duty
(B)Exp: Dumping refers to pricing policy in which price is kept less in comparison to other organization for product to cover more market or to fail another products.
72.If a person’s income increases from Rs. 10 lakhs per year to Rs. 11 lakhs per year and tax increases from Rs. 80,000 to Rs. 92,500 the marginal tax rate is- (A) 12.50% (B) 8% (C) 10% (D) 15%
(A) [SSC CHSL 2017] Exp: Marginal tax is rate at which tax has been increased in comparision to increase in income. Marginal tax rate = Changeintotaltax paid Changeinincome So answer will be 12.50%
73.This tax is entirely borne by the entity it is levied upon and cannot be passed- (A) Direct tax (B) Indirect tax (C) Straight tax (D) Advance tax
(A) [SSC CHSL 2017] Exp: Nature of tax can be known by observing two factors. The point where tax is imposed and the point where tax effects. A situation where both point are same then it will be direct tax.
74.First country to impose carbon tax is ________. (A) Australia (B) Iceland (C) USA (D) New Zealand
(D) [SSC CHSL 2017] Exp: Carbon tax is tax on quantity of carbon producing fuel and the first country to levy carbon tax is New zealand in 2005.
75.If a person’s income increases from Rs 20 lakhs per year to Rs 24 lakhs per year and tax increases from Rs 3,50,000 to Rs 4,00,000 the marginal tax rate is- (A) 8 percent (B) 12.5 percent (C) 10 percent (D) 15 percent
(B) [SSC CHSL 2017] Exp: Marginal tax rate =% in tax 100 in income By putting values to formula we will get 12.5%
76.Which of the following is a Direct tax? (A) Excise Duty (B) Customs Duty (C) Service Tax (D) Wealth tax
(D) [SSC CHSL 2017] Exp: Direct tax are those taxes which are imposed and impact at a same person. Wealth tax is tax levied on wealth created by a person and is bear by himself.
77.Which among the following is not a direct tax? (A) Income tax (B) Wealth tax (C) Corporate tax (D) None of these
(D) (SSC CGL 2017) Exp. Direct tax is tax where impact of tax and incidence of tax falls on same person whereas indirect tax is where impact and incidence of tax are on two different persons. Examples of direct taxes are:- Income tax, wealth tax, corporate tax.
78.Which tax causes a burden on the poorer section of the society? (A) Direct Tax (B) Indirect Tax (C) Both Direct and Indirect Tax (D) None of these
(B) (SSC CGL 2017) Exp. Indirect taxes are those taxes which are implemented at some place but realised at other place. It means the impact of indirect tax can be transferred to other people. Usually organisation transfer it to consumer. So, Indirect tax causes a burden on the poor section of society.
79.Which among the following is an example of progressive tax? (A) Excise duty (B) Octroi (C) Income tax (D) House tax
(C) (SSC CPO 2017) Exp. Progressive tax: Rate of tax increases with increase in income of tax payers. Tax like Income Tax is a progressive tax.
1.A part of National Debt known as External Debt is the amount. (A) Borrowed by its citizen from abroad (B) Lent by its citizens to foreign governments (C) Borrowed by its government from abroad (D) Lent by its government to foreign government
(C) [SSC 10+2 2013] Exp: The Money borrowed by its government from abroad is a part of national debt which is also known as External debt.
2.The process of organizing business-pact between group of countries is called as - (A) Trading Block (B) Trade venture (C) Trade Partner (D) Trade organizer
(A) [SSC (CGL) Exam, 2010] Exp: A trading block is a set of countries which are engaged in intra trading activities by reducing tariffs and other barriers among member states.
3.The practice of selling goods in a foreign country at a price below their domestic selling price is called- (A) Diplomacy (B) Discriminator (C) Dumping (D) Double pricing
(C) [SSC SO Exam, 2006] Exp: Dumping is a phenomemom which is related to the international trade. It occurs when a manufacturing country starts selling goods in foreign country at a lower price than price charged in domestic market.
“4.”“Full convertibility of a rupee”” means- (A) Purchase of foreign exchange for rupees only (B) Payment for imports in terms of rupees (C) Repayment of loans in terms of rupees (D) Determination of rate of exchange between rupee and foreign currencies freely by the market forces of demand and supply.”
(D) [SSC T.A. 2009] Exp: Full convertibility of currency means that currency of a country can be fully converted into foreign exchange at market determined exchange rate. That is determined by demand and supply of a currency in the market.
5.The Full form of SDR is- (A) Special Dollar Rights (B) Special Drawing Rights (C) State Drawing Rights (D) Specific Dollar Right
(B) [SSC CPO Exam, 2008] Exp: Special Drawing right is an instrument of IMF (International Monetary Fund). Holders of SDR’s can obtain freely usable currencies in exchange of their SDR’s
6.Buying of shares and bonds of Indian companies by foreign institutions is called- (A) Foreign Direct Investment (B) Portfolio Investment (C) Institutional Investment (D) Foreign Indirect Investment
(B) [SSC CGL Exam, 2011 Exp: Portfolio investment includes buying of shares and bonds in India companies by foreign investors without involving themselves in the management of company.
7.Private investment is otherwise called as- (A) Autonomous investment (B) Foreign institutional investment (C) Foreign direct investment (D) Induced investment
(D) [SSC CGL April 2014] Exp: Private investement is also called as induced investment because induced investment is affected by level of income or growth of economy. The same feature of induce investment relates to private Investment. Private invetment in economy means investment in those capital assets which will help in production or income and it totally depends on level of income.
8.The annual record for all the monetary transactions of a country with other countries of the world is known as- (A) Balance of Trade (B) Balance of Monetary Receipts (C) Balance of Payments (D) Balance Sheet
(C) [SSC T.A. Exam, 2005] Exp: The Balance of payments of a country is the record of all financial transactions between a country and rest of the world.
9.India’s Balance of Payments can be corrected through- (A) Devaluation of currency (B) Vigorous export promotion (C) Import substitution (D) All of the above
(D)Exp: Balance of payments imbalance can be corrected through following methods:- (A) Export promotion (B) Import substitution or restrictions (C) Reducing inflation (D) Exchange control by rationing foreign exchange (e) Devaluation of domestic currency
10.Which one of the following items is not included in the current account of India’s Balance of Payments? (A) Short-Term Commercial Borrowings (B) Non-Monetary Gold Movements (C) Investment Income (D) Transfer Payments
(B) [SSC CGL Exam, 2007] Exp: Current account of India’s balance of payments includes balance of trade (export or import), balance of invisibles (services), unilateral transfers (gifts, donation and personal remittance) and income receipts and payments to and from abroad.
11.When there is an official change in the exchange rate of domestic currency, then it is called- (A) Appreciation (B) Depreciation (C) Revaluation (D) Deflation
(C) [SSC CGL 2011] Exp: Revaluation of a currency means adjustment of exchange rate with respect to a choosen baseline. Revaluation of currency can take place in any country where exchange rate is regulated by central bank of that country.
12.At present, India is following- (A) Fixed exchange Rate (B) Floating exchange Rate (C) Pegged up exchange Rate (D) Pegged down exchange Rate
(B) [SSC CGL Exam, 2010] Exp: India follows managed floating exchange rate system to determine the exchange rate. It is a hybrid system in which exchange rate is determind by forces of demand and supply but in extreme circumstances central bank can also intervene to manage exchange rate.
13.The outcome of ‘devaluation of currency’ is- (A) Increased export and improvement in balance of payment (B) Increased export and foreign reserve deficiency (C) Increased import and improvement in balance of payment (D) Increased export and import
(A) [SSC T.A.2006, SO, 2003] Exp: Devaluation of currency means reducing the value of a country’s currency with respect to other currencies. Devaluation increases the price of imports and encourages exports. hence it will improve coontry’s balance of payment.
14.The Government resorts to devaluation of its currency in order to promote- (A) National Income (B) International Goodwill (C) Exports (D) Savings
(C) [SSC CPO Exam, 2005] Exp: In fixed exchange rate system the central bank of a country devalues its currency with respect to other currencies to promote exports.
15.Devaluation makes import- (A) Competitive (B) Inelastic (C) Cheaper (D) Dearer
(D) [SSC SO Exam, 2005] Exp: Devaluation makes imports more expensive, hence discouraging imports.
16.When did the rupee become a freely convertible currency on Current Account in India? (A) 2000 (B) 2001 (C) 1994 (D) 1999
(C) [SSC T.A. Exam, 2004] Exp: India has moved to complete convertibility on current account in 1994. Convertibility on current account means that there is no restriction on export and import of goods and services.
17.Devaluation usually causes the internal prices to- (A) Fall (B) Rise (C) Remain unchanged (D) None of the above
(C) [SSC CGL Exam, 2004] Exp: Devaluation of currency is related to the international trade. It affects the price of exports and imports but it does affect the internal prices.
18.Floating Exchange Rate is also referred to as- (A) Flexible Exchange Rate (B) Fixed Exchange Rate (C) Real Exchange Rate (D) Controlled Exchange Rate
(A) [SSC MTS Exam, 2002] Exp: When the exchange rate is determined by the forces of demand and supply of currency, it is known as floating exchange rate or flexible exchange rate.
19.Which one of the following does not deal with export promotion? (A) Trade Development Authority (B) Minerals and Metals Trading Corporation (C) Cooperative Marketing Societies (D) State Trading Corporation of India
(C) [SSC CGL Exam, 2008] Exp: All the authorities mentioned above deals in export in terms of international trade except in cooperative marketing societies. Cooperative marketing societies are voluntary organizations formed by farmers. There area of operation is restricted or fixed with reference to local conditions that are area based or commodity based on the local environment.
20.A trade policy consists of- (A) Export-Import Policy (B) Licencing Policy (C) Foreign Exchange Policy (D) Balance of Payment Policy
(A) [SSC MTS Exam, 2008] Exp: Trade policy of any country is related to rules and regulations that control imports and exports to foreign countries. It is also known as Export- Import policy.
21.The biggest item of India’s imports is- (A) Iron ore (B) Mica (C) Petroleum products (D) Gems and Jewellery
(C) [SSC MTS Exam, 2006] Exp: The biggest item of India’s import is petroleum products. India being net petroleum import based country due to petroleum reserve deficiency.
22.The difference between visible exports and visible imports is defined as- (A) Balance of Trade (B) Balance of Payment (C) Balanced Terms of Trade (D) Gains from Trade
(A) [SSC T.A. Exam, 2006] Exp: Balance of trade deals with all financial transactions of foreign currencies in import and export of goods. Balance of trade implies trade of physical goods that is why it is also known as balance of visibles.
23.A country’s balance of trade is unfavourable when- (A) Exports exceed imports (B) Imports exceed exports (C) Terms of trade become unfavourable (D) None of the above
(B) [SSC Investi. Exam, 2006] Exp: When imports of any country exceed its exports, it will lead to deficit on balance of trade. Deficit on balance of trade is unfavourable for any country’s economic health.
24.Theoretically trade between two countries takes place on account of- (A) Difference in Costs (B) Scarcity of Goods (C) Comparative Differences in Costs (D) Need for Exports
(C) [SSC MTS Exam, 2002] Exp: Trade between two countries is based on the theory that no country is self sufficient it is always in one commodity and deficit in another commodity so trade happens. More preceisely trade between two countries exists because different countries have a comparative advantage in production of some commodity. So theoretically trade between two countries takes place on account of comparative difference in costs.
25.FERA in India has been replaced by- (A) FEPA (B) FEMA (C) FENA (D) FETA
(B) [SSC T.A. Exam, 2008] Exp: Foreign Exchanges Regulation Act (FERA) was passed in 1973 which deals with restrictions and regulations on foreign exchange transactions. It was replaced by foreign exchange management Act in 1999, which replaced regulations by management of foreign exchange transactions
26.One of the main factors that led to rapid expansion of Indian exports is- (A) Imposition of import duties (B) Liberalisation of the economy (C) Recession in other countries (D) Diversification of exports
(D) [SSC CPO Exam, 2007] Exp: Diversification of export is a strategy in international trade to increase commodity demand and reducing dependency on single economy. Diversification of export forms a cushion which absorb shocks from economy. Diversification of export is one of factor that led to rapid expansion of Indian exports.
27.Interest on public debt is part of- (A) Transfer payments by the enterprises (B) Transfer payments by the government (C) National income (D) Interest payments by households
(B) [SSC SO Exam, 2005, CGL Exam, 2000] Exp: Interest on public debt is part of transfer payments by the government.
28.What is the revised upper limit for foreign direct investment in telecom service companies? (A) 49 per cent (B) 51 per cent (C) 66 per cent (D) 74 per cent
(A) (SSC CGL Pre 2004) Exp: Latest FDI allowed in telecom industry is retained to 100% of this 49% is allowed through automatic route.
29.Canalised list of items in foreign trade on India refers to- (A) The items to be imported by the private agencies (B) List of items to be subsidised (C) List of items to be granted duty concession (D) Items to be imported only by the State owned undertaking
(D) (SSC CGL Pre 2002) Exp: Canalized list of items in foreign trade on India refers to item to be imported only by state owned undertaking like wheat and muslin of other than seed quality.
30.Which of the following does not form a part of the foreign exchange reserves of India? (A) Gold (B) SDRs (C) Foreign currency assets (D) Foreign currency and securities held by the banks and corporate bodies
(D)Exp: Foreign exchange reserve of India consists of four categories:- (1) Foreign currency Assets (2) Gold (3) Special drawing rights (4) Reserve Tranche Position in IMF
31.How the interest-level of a country is affected by FDI? (A) Increases (B) Decreases (C) Remains unaffected (D) There is increase or decrease
(B) (SSC Section Officer (Audit) 1997) Exp: Foreign Direct investment is direct investment in the economy. FDI provides inflow of capital resulting increase in availability of money, leading to decrease in interest level of country.
32.Disinvestements is- (A) Offloading of shares of privates companies to government (B) Offloading of government shares to private companies (C) Increase in investment (D) closing down of business concerns
(B) (SSC CPO S.I 2008) Exp: Disinvestment is offloading of government share to private companies.
33.Foreign currency which has a tendency of quick migration is called- (A) Scare currency (B) Soft currency (C) Gold currency (D) Hot currency
(D) (SSC Section Officer (Audit) 2007) Exp: Hot currency is the currency which flows inward and outward quickly to maximize the profit. These currency are called as hot because hot is considered to be having quick flow feature.
34.Devaluation of currency leads to- (A) Expansion of export trade (B) Contraction of import trade (C) Expansion of import substitution (D) All of the above
(D) (SSC Section Officer (Audit) 2008) Exp: Devaluation of currency is one of the technique to manage exchange rate. Devaluation of currency means lowering the value of domestic currency against foreign currency. Results of devaluation are (1) Increase in export (2) Decrease in import (3) Increase in import substitution.
35.Under flexible exchange rate system, the exchange rate is determined by- (A) The Central Bank of the country (B) The forces of demand and supply in the foreign exchange market (C) The price of gold (D) The purchasing power of currencies
(B) (SSC CGL Pre 2001) Exp: Under flexible exchange rate system, exchange rate is decided by market forces precisely by forced of demand and supply of the currency in foreign exchange market.
36.A currency having a falling exchange rate due to continuing balance of payments deficit is called a- (A) Soft currency (B) Hard currency (C) Scarce currency (D) Surplus currency
(A) (SSC CGL Pre 2002) Exp: Soft currency is having a falling exchange rate due to continuing balance of payment deficits.
37.Funds which flow into a country to take advantage of favourable rates of interest in that country is called- (A) Cold Money (B) Black Money (C) Hot Money (D) White Money
(C) (SSC CGL Pre 2011) Exp: Hot currency is the currency which flows in ward and outward quickly to maximize profit. These currency are called as hot because hot is considered to be having quick flow feature.
38.The purpose of devaluation is to: (A) Be little foreign currencies (B) Encourage export (C) Discourage export (D) Encourage import
(B) (SSC MTS 2014) Exp: Devaluation of currency is one of the technique to manage exchange rate. Devaluation of currency means lowering the value of domestic currency against foreign currency. Results of devaluation are (1) Increase in export (2) Decrease in import (3) Increase in import substitution.
39.Pegging up of a currency means, fixing the value of a currency- (A) At a constant level (B) at a lower level (C) At a higher level (D) Leaving at market forces
(C) (SSC CGL Pre 2011) Exp: Pagging up of a currency means fixing currency exchange at a higher level. Pegging is another name under fixed exchange rate system, where exchange rates are fixed.
40.A favourable Balance of Trade of a country implies that- (A) Imports are greater than Exports (B) Exports are greater than Imports (C) Both Imports and Exports are equal (D) Rising Imports and Falling Exports
(B) (SSC FCI Assistant 2011) Exp: Balance of trade is balance of export and imports. So favaurable balance of trade is when exports are more than imports or in simple words when earnings are more than expenditures.
41.Contries that depend mainly on the export of primary products for their income, are prone to- (A) Inflation (B) Economic instability (C) Increasing unemployment (D) Stable economic growth
(C) (SSC Combined Matric Lavel (Pre) 2006) Exp: Countries that depend mainly on the export of primary product for their income are prone to increasing unemployment because export of primary products leads to no further process of primary products to secondary and tertiary sectors. So this situation of export will create unemployment.
42.The balance of payments of a country is in equalibrium when the- (A) Demand as well as supply of the domestic currency are the highest (B) Demand for the domestic currency is equal to its supply (C) Demand for the domestic currency is the highest (D) Demand for the domestic currency is the lowest
(B) (SSC CGL Pre 2013) Exp: Equilibrium is when demand equals supply. So balance of payments of country is in equilibrium when the demand for domestic currency is equal to its supply.
43.In the balance of payments account, unrequited receipts and payments are also regarded as- (A) Bilateral transfers (B) Unilateral transfers (C) Capital accounts transfers (D) Invisible transfers
(B) (SSC ACPFs SI, CISF ASi 2014) Exp: Unrequited receipts and payments are considered to be unilateral transfer as the flow is only in one direction with no return. There is no return obligation with these transfer because these are gifts and grants exchanged between governments and people in the world.
44.As a result of higher rate of inflation in India, the U.S. dollar will- (A) Depreciate (B) Constant (C) Negligible (D) Appreciate
(D) (SSC CHSL (10+2) DEO & LDC 2015) Exp: Inflation is increase in general price level of commodities. Inflation leading to reducing value of currency because same thing was purchased by less money before inflation. So lower value of domestic currency against U.S. dollar. It will automatically appreciate value of U.S. Dollar.
45.Which type of foreign investment is considered as unsafe? (A) Foreign Direct Investment (FDI) (B) Portfolio Investment (C) NRI deposits (D) External commercial borrowing
(B) (SSC CGL Pre 2016) Exp: Foreign portfolio Investment is considered to be unsafe because foreign portfolio investment has a tendency of quick migration due to high influence by high rates of return Sudden migration of money can deteriorate economy severely.
46.At present, India is following- (A) Fixed exchange rate (B) Floating exchange rate (C) Pegged up exchange rate (D) Pegged down exchange rate
(B) (SSC CGL Pre 2010) Exp: At present, India is following floating exchanges rate. Floating exchange rate is system of exchange rate where exchange rate is decided according to demand and supply of currency.
- Excise duty is levied on- (A) Sale of goods (B) Production of goods (C) Import of goods (D) Export of goods
(D) (SSC CGL Pre 2010) Exp: Excise duty is amount of money that is received by government from tax on production of goods in economy.
47.Lowering of value of currency relative to a foreign reference currency is called _________. (A) Devaluation (B) Revaluation (C) Down valuation (D) Negative valuation
(A) [SSC CHSL 2017] Exp: Devaluation is mechanism of fixing exchange rate in which domestic currency value is reduced in comparision to foreign currency. Revaluation: In the domestic currency value is increased in comparision other foreign currency.
48.Balance of Trade is the difference between- (A) Country’s Income and Exemse (B) Country’s Exports and Improts (C) Country’s tax Revenus and Expense (D) Country’s capital inflow and outflow
(B) [SSC CHSL 2017] Exp: Balance of trade is difference between visibles in Balance of payment. In other words it is difference between exports and imports in a country.
49.Which among the following is not an account under Balance of Payment? (A) Current Account (B) Capital Account (C) Official Reserves Account (D) Unilateral Payments Account
(C) [SSC CGL 2017] Exp: Balance of Payment is the total transaction done with foreign countries. It includs accounts (i) Capital account (ii) Current Account (iii) Unilateral Pyament account
.51. The __________ exchange rate is the relative price of foreign goods in terms of domestic goods. (A) Artificial (B) Nominal (C) Fixed (D) Real
(D) [SSC CGL 2017] Exp: There are two types of exchange rate one is Nominal exchange rate and another is Real exchange rate. Nominal exchange rate is the price of one unit of forgin currency in terms of domestic currency. Real exchange rate is the ratio of price level outside or abroad and the domestic country’s price level.
52.The __________ exchange rate is the price of one unit of foreign currency in terms of domestic currency. (A) Artificial (B) Nominal (C) Fixed (D) Real
(B) [SSC CGL 2017] Exp: There are two types of exchange rates. One is Nominal exchange rate and another is Real exchange rate. Nominal exchange rate is the price of one unit of foreign currency in terms of domestic currency. Real exchange rate is the ratio of price level outside or abroad and the domestic country’s price level measured in domestic currency.
53.What is the full form of FDI? (A) Foreign Direct Input (B) Foreign Direct Investment (C) Fiscal Direct Investment (D) Fiscal Direct Input
(B) [SSC CPO 2017] Exp: Foreign direct investment: FDI is an investment done by a firm in another country in the form of ownership.
54.Foreign investment is known by which name in India? (A) SME (Small and medium-sized enterprises) (B) MDI (Management Development Institute) (C) FDI (Foreign Direct Investment) (D) CII (Confederation of Indian Industry)
(C) [SSC CPO 2017] Exp: FDI :- Foreign Direct Investment is an investment done by a firm in another country in the form of ownership.
1.Without insurance or uncertainity problem is- (A) Fire (B) Flood (C) Change in price of product (D) Change in fashion.
(D) [S.S.C (CGL) Exam, 2014] Exp: Without insurance uncertainty is change in fashion. Because its insurance cannot be done.
- Verghese Kurien is related to - (A) Blue Revolution (B) White Revolution (C) Yellow Revolution (D) Green Revolution
“(B) [S.S.C Steno 2014] Exp: Verghese Kurien is known as ““Father of White revolution”” in India. White Revolution has made India the largest producer of milk in the world.”
2.Blue revolution is related to - (A) Fish production (B) Milk production (C) Oilseed production (D) Fertilizer production.
(A) [S.S.C Steno 2005] Exp: (A) List of various revolutions in India is as follows:- (1) Blue Revolution - Fish production (2) White Revolution - Milk production (3) Golden Fibre Revolution - Jute production (4) Golden Revolution - Horticulture, Honey, Fruit production (5) Silver Fibre Revolution - Cotton production (6) Grey Brown Revolution - Fertilizer, Leather, Cocoa production
3.Blue and White Revolution is related with - (A) Fish and Fertilizer (B) Milk (C) Fish and Milk (D) Fish and Agriculture.
(C) [SSC Steno Exam, 2014] Exp: See explanation of Q. No. 3
4.Brown Revolution is called as - (A) Fodder revolution (B) Increase in sea products (C) Increase in fertilizer produc- tion (D) Increase in milk production.
(C) [S.S.C (CPO) Exam, 2011] Exp: See explanation of Q. No. 3
5.Golden Revolution is related with - (A) Rearing of lagoons (B) Agriculture of flowers (C) Beekeeping (D) Grapes production
(B) [S.S.C (CPO) Exam, 2011] Exp: See explanation of Q. No. 3
6.The Economic planning is a part of- (A) Mixed Economy (B) Dual Economy (C) Socialistic Economy (D) Capitalistic Economy
(C) [SSC CGL Exam, 2012] Exp: Socialistic economic System is type of economy in which existence of social ownership and control of the means of production is done by state. So economic planning is framework of working of economy and it is done under socialistic economy.
“7.Which three year is said as ““Planning Holiday”” for our country? (A) 1965-68 (B) 1966-69 (C) 1968-71 (D) 1969-72”
(B) [SSC Steno Exam, 2011] Exp: Plan Holiday is the time period when 5 year plan could not be implemented in 1966-69. This plan holiday was introduced due to India-Pakistan war in 1965.
“8.”“Plan Holiday”” was declared after- (A) First Five Year Plan (B) Second Five Year Plan (C) Third Five Year Plan (D) Fourth Five Year Plan”
(C) [SSC CGL 2014] Exp: Plan holiday was introduced in 1966-69 after third five year plan due to India-Pakistan war. A plan holiday is gap between five years pl
9.Which is not correct? (A) First Five Year Plan 1951-56 (B) Second Five Year Plan 1956-61 (C) Third Five Year Plan 1961-66 (D) Fourth Five Year Plan 1966-71
(D) [SSC CPO Exam, 2008] Exp: The duration of fourth five year plan was 1969-74 due to the introduction of plan holiday in 1966-69.
10.Which five year plan’s duration was only four year? (A) Third (B) Fourth (C) Fifth (D) Seventh
(C) [SSC MTS. Exam, 2014 Exp: The duration of Fifth Five year plan (1974-78) was four years. It was terminated by Junta government and after the end of year introduced rolling plan for 1978-79.
11.Second five year plan was based on- (A) Mohalanobis Model (B) Wakil and Brahmanand Model (C) Herald-Domar Growth model (D) Salo growth model
(A) [SSC CGL Exam, 2006] Exp:The second five year plan was based on Mahalnobis model. It was focused on industrial development of our country.
12.Which of the following is not among the basic aims of 10th five year plan? (A) Decrease in poverty ratio. (B) Drinking water to all villages till 2012. (C) Decrease in infant mortality rate. (D) Decrease is import.
(D) [SSC CGL Exam, 2006] Exp: Twenty point program was introduced in 10th Five year plan. It includes reduction in poverty, reduction in gender gaps, reduction in infant mortality rate etc. It does not include decrease in import.
“13.”“The Social Forestry scheme”” was started in- (A) Second five year plan (B) Sixth five year plan (C) Fifth five year plan (D) Eight five year plan”
(C) [SSC CPO Exam, 2012] Exp: The fifth five year plan was focused on agricultural production social forestry Scheme was started in 1977 in fifth five year plan.
14.Which type of product does CACP recommend minimum support price for? (A) Industrial Products (B) Agricultural products (C) Pharmaceutics Products (D) None of the above
(B) [SSC 10+2 Exam,2010 Exp: CACP The commission for Agricultural costs & prices recommends minimum support price for agricultural products MSP is the price through which farmers are given guarantee by government for their agricultural produces.
15.In which matter green revolution has achieved maximum success? (A) Sugarcane (B) Pulses (C) Wheat (D) Rice
(C) [SSC CPO Exam, 2006 Exp: Green revolution in India was introduced to increase the agricultural productivity. The program was most successful in wheat producing areas and some success is also gained in rice.
16.The gradation and standardization of agricultural products are conducted through - (A) Food corporation of India (B) Directorate of Marketing and Inspection (C) Indian Standards Institution (D) Central statistical organization
(B) [SSC CPO 2007, CGL 2002 Exp: The Directorate of Marketing and Inspection conducts standardisation and gradation of agricultural products, it come under Ministry of Agriculture.
17.The Cattle rearing along with farming is called- (A) Mixed Farming (B) Mixed Agriculture (C) Dairy Farming (D) Truck Agriculture
(A) [SSC CGL Exam, 2014 Exp: Mixed farming is a type of farming in which farming is done along with cattle rearing or livestock raising.
18.The achievement in agriculture by India has not reached upto a greater level due to- (A) Small holdings (B) Shortage of Tractors (C) Poor Farmers (D) Liberalty of People
(A) [SSC CPO Exam, 2011 Exp: Due to small land holdings in India, agriculture has not reached to greater level.
19.In Indian Agriculture High Yielding Variety Programme was started in- (A) 1968 (B) 1967 (C) 1966 (D) 1965
(C) [SSC CPO Exam, 2011 Exp: High yielding variety programme was launched in 1966-67 to attain the self sufficiency in food grain production.
20.The P lanning Commission of India was constituted in the year- (A) 1942 (B) 1947 (C) 1950 (D) 1955
(C) [SSC SO Exam, 2008, SSC CGL Exam, 2013, SSC CPO Exam, 2017] Exp: Planning commission was constituted in 1950 by a resolution passed by government of India. It has been replaced by NITI Ayog in 2014
21.Which of the following plans had actual growth rate higher than the targetted growth rate? (A) Eighth Five Year Plan (B) Fourth Five Year Plan (C) Fifth Five Year Plan (D) Seventh Five Year Plan
(A) [SSC CGL Exam, 2014] Exp: In Eighth five year plan the targeted growth rate was 5.6% but it achieved the growth rate of 6.8%.
22.IRDP was introduced during the- (A) Third Five Year Plan (B) Sixth Five Year Plan (C) Fifth Five Year Plan (D) Fourth Five Year Plan
(B) [SSC CGL April Exam, 2014] Exp: Integrated rural development programme was launched in 1978 and implemented from 1980 It aims at providing employment opportunities to rural poor.
23.Who advocated the adoption of PURA model to eradicate rural poverty? (A) MS Swaminathan (B) Maulana Abul Kalam Azad (C) Dr APJ Abdul Kalam (D) AM Khusro
(C) [SSC FCI Exam, 2012] Exp: Provision of urban amenities to Rural areas is a model of rural development which was suggested by former president of India Dr. APJ Abdul Kalam.
24.AGMARK is a guarantee of standard- (A) Quality (B) Quantity (C) Weight (D) Size
(A) [SSC (10+2) Exam, 2011] Exp: AGMARK is a quality certification mark for agricultural products. It is issued by Directorate of Marketing and Inspection.
25.The food stocks that are built up during the years of bumper harvest are called- (A) Capital stock (B) Buffer stock (C) Production stock (D) Grain stock
(B) [SSC CGL, CPO, 2010, 2011] Exp: Buffer Stocks of grains are procured by government in order to meet the demand during the shortfall in production
26.Poverty in less developed countries is largely due to- (A) Voluntary idleness (B) Income inequality (C) Lack of cultural activities (D) Lack of intelligence of the people
(B) [SSC CISF Exam, 2010] Exp: Income inequality is the major reason of poverty in less developed countries
27.The government has renamed NREGA scheme and the name associated with the scheme is that of- (A) Rajiv Gandhi (B) Jawahar Lal Nehru (C) Mahatma Gandhi (D) Indira Gandhi
(C) [SSC DEO Exam, 2009] Exp: NREGA (National Rural Employment Guarantee Act) has been renamed as MGNREGA (Mahatma Gandhi Notional Rural Employment Guarantee Act) in 2009
28.The nature of unemployment in agriculture in India is- (A) Only seasonal (B) Only disguised (C) All of the above (D) None of the above
(C) [SSC T. A. Exam, 2009] Exp: Unemployment in Agriculture in India is both seasonal and disguised unemployment.
29.A situation where we have people whose level of income is not sufficient to meet the minimum consumpt ion expenditure is considered as- (A) Absolute poverty (B) Relative poverty (C) Urban poverty (D) Rural poverty
(A) [SSC T.A. Exam, 2009] Exp: Absolute poverty is defined as state of deprivation for the basic human needs which includes food, drinking water, shelter etc.
30.Indian agriculture is typically characterised as- (A) Land surplus, Labour Scarce Economy (B) Land surplus, Labour Surplus Economy (C) Land scarce, Labour Surplus Economy (D) Land scarce, Labour Scarce Economy
(C) [SSC SO Exam, 2008] Exp: Indian agriculture typically have characterstics of unskilled labours, disguised unemployment etc. Labour surplus economy is an economy where availibitity of labour performers are in excess of labour necessary to produce goods and services land scarce because of raising population so land per person is decreasing. So Indian agriculture is typically characterised as land scarce and labour surplus economy.
31.The commission in India dealing with minimum support price, procurement price etc, in connection with agricultural goods is the- (A) Planning Commission (B) Agricultural Costs and Prices Commission (C) Agricultural Price Commission (D) National Marketing Commission
(B) [SSC CPO Exam, 2008] Exp: The commission for agricultural costs and price recommends minimum support price for agricultural products. It was set up in 1965 and it is an attached office under Ministry of Agriculture.
32.During which Five Year Plan India lay down objective the need to ensure environmental substain- ability of the development strategy? (A) Sixth Five Year Plan (B) Seventh Five Year Plan (C) Eighth Five Year Plan (D) Ninth Five Year Plan
(D) [SSC SO Exam, 2003] Exp: One of the objective of Ninth five year plan was to answer environmental sustainability of the developmental process.
33.What is’AGMARK’? (A) It is a marketing seal issued on the graded agricultural commodity (B) It stands for agricultural marketing (C) It represents agricultural management and regulation (D) None of the above
(A) [SSC MTS. Exam, 2002] Exp: AGMARK is a quality certification mark for agricultural products it is issued by Directorate of Marketing and Inspection.
34.Commercialisation of agriculture implies- (A) Cultivation of timbers (B) Plantation (C) Production of crops for sale (D) Production of crops like wheat or rice
(C) [SSC MTS. Exam, 2002] Exp: Commercialisation of agriculture refers to production of agriculture crops to sale in the market not for consumption.
35.India’s First Five Year Plan gave priority to- (A) Industry (B) Trade (C) Transportation (D) Agriculture
(D) [SSC MTS. Exam, 2002] Exp: The first five year plan was launched in 1951. The main theme of first five year plan was the growth of agricultural sector.
36.ISI mark is not given to which of the following products? (A) Electric Goods (B) Hosiery Goods (C) Biscuits (D) Cloth
(C) [SSC MTS. Exam, 2002] Exp: ISI stands for Indian Standard Institute, a body setup to create standards and maintaining quality in Industrial Production. There are 16 broad categories including textiles, packaged water, food, automobiles components and Electronics.
37.To achieve economic self-reliance was the main objective of which Five Year Plan? (A) First Five Year Plan (B) Second Five Year Plan (C) Third Five Year Plan (D) Fourth Five Year Plan
(D) [SSC MTS. Exam, 2001] Exp: The fourth five year plan was aimed at growth with stability and greater self reliance. In this five year plan slogan of ‘Goribi Hatao’ was given.
38.Structural unemployment arises due to- (A) Deflationary conditions (B) Heavy industry bias (C) Shortage of raw materials (D) Inadequate productive capacity
(D) [SSC CGL Exam, 2000] Exp: Structural unemployment was caused due to mismatch between skills of the workers and jobs available.
39.Which one of the following is not a necessary condition for the development of India? (A) Capital Accumulation (B) Resource discovery (C) Population growth (D) Technological development
(C) (SSC CGL Pre 1999) Exp: Population growth in India will not necessarily result in development of India. Growing population will increase the burden on available resources.
40.The highest body which approves the Five year Plan in India is the- (A) Planning Commission (B) National Development Council (C) Finance Ministry (D) Union Cabinet
(B) (SSC Officer (Commercial Audit) 2007) Exp: Planning commission was the apex body to formulate five year plans and these five year plans were approved by National Development council. Planning commission has been replaced by NITI Aayog in 2014.
41.In the post-independence period, economic reforms were first introduced in India under- (A) P.V. Narasimha Rao Government (1990) (B) Indira Gandhi Government (1980) (C) Rajiv Gandhi Government (1985) (D) Janata Party Government (1977)
(A) (SSC CPO S.I 2008) Exp: Economic reforms refer to the changes which deals with economic liberalization reducing various barriers. In India, economic reforms were first introduced under P.V. Narasimha Rao Government (1990).
42.Mahalannobis Model has been associated with which five-year plan? (A) First Five-Year Plan (B) Second Five-Year Plan (C) Third Five-Year Plan (D) Fourth Five-Year Plan
(B) (SSC CGL 2011, SSC MTS 2008) Exp: The second five year plan was based an Mahalanobis Model. It was focused on industrial development of our country mainly heavy industries.
43.In a developing country like India, in which sector a high rate of disguised unemployment exists? (A) Corporate Sector (B) House-hold Sector (C) Service Sector (D) Agricultural Sector
(D) (SSC SO Exam 2007, SSC CGL Exam 2012 & 2013) Exp: Disguised unemployment is a tyre of employment when more people are engaged in a job but it can be done by less people. In India, disguised unemployment is seen in agricultual sector.
