Quiznetik

Indian Economy | Set 5

1. Fiscal deficit in the Union Budget means: [IAS 1994]

A. the difference between current expenditure and current revenue

B. net increase in Union Government's borrowings from the Reserve Bank of India

C. the sum of budgetary deficit and net increase in internal and external borrowings

D. the sum of monetised deficit and budgetary deficit

Correct : C. the sum of budgetary deficit and net increase in internal and external borrowings

2. Among the structural changes which of the following is not wholly welcome?

A. Increase in the share of construction in the GNP

B. Relative contribution of agriculture to our GNP is declining

C. Marked improvement in the contribution of manufacturing to the GNP

D. Substantial increase in the percentage contribution of public administration and defence to GDP

Correct : D. Substantial increase in the percentage contribution of public administration and defence to GDP

3. Net factor income from abroad added to GDP gives:

A. GNP

B. NNP

C. NDP

D. per capita income

Correct : A. GNP

4. Gross National Income is always more than Net National Income because it includes:

A. foreign income

B. capital consumption allowance

C. indirect taxes

D. direct taxes

Correct : B. capital consumption allowance

5. Gross National Product at market prices is defined as : [CPO AC 2003]

A. the market value of all final goods and services produced in an economy taking into account net factor income from abroad

B. the market value of all final goods and services produced in an economy

C. the market value of all final goods and services produced in an economy plus indirect taxes

D. the market value of all final goods and services produced in an economy plus indirect taxes minus subsidies

Correct : A. the market value of all final goods and services produced in an economy taking into account net factor income from abroad

6. National income refers to: [CPO SI 2002]

A. money value of goods 'and services produced in a country during a year.

B. money value of stocks and shares of a country during a year.

C. money value of capital goods produced by a country during a year.

D. money value of consumer goods produced by a country during a year.

Correct : A. money value of goods 'and services produced in a country during a year.

7. National income calculated at current prices in India has shown a tendency to rise at a faster rate than national income at constant prices. This is because:

A. India's population has been rising fast

B. General price level in the economy has been rising rapidly

C. Statistically manipulations are employed by the Planning

D. Base year chosen is an abnormal year

Correct : B. General price level in the economy has been rising rapidly

8. The measure of a worker's real wage is : [CPO SI 2002]

A. the change in his productivity over a given time

B. his earning after deduction at source

C. his daily earnings

D. the purchasing power of his earnings

Correct : D. the purchasing power of his earnings

9. Real national income denotes:

A. national income at constant prices

B. per capita income

C. national income at current prices

D. net factor income

Correct : A. national income at constant prices

10. Under VAT, how many slabs are there?

A. 3

B. 4

C. 2

D. 5

Correct : B. 4

11. Which one of the following forms the largest share of deficit in Govt. of India budget? [UP PCS 2002]

A. Primary deficit

B. Fiscal deficit

C. Revenue deficit

D. Budgetary deficit

Correct : B. Fiscal deficit

12. Gross National Product is less than Gross Domestic Product depending upon whether:

A. indirect taxes are more than subsidies

B. depreciation is included or not

C. net factor income from abroad is positive or negative

D. indirect taxes are less than subsides

Correct : C. net factor income from abroad is positive or negative

13. One of the following leads to underestimation of national income in India: 1. Inflation 2. Devaluation 3. Non-Monetary consumption 4. Large unorganized sector Choose correct answer from:

A. 1, 2, 3 and 4

B. 1, 3 and 4

C. 3 and 4

D. 2, 3 and 4

Correct : C. 3 and 4

14. Which of the following schemes was intended to tap the black money?

A. SBI Deposit Scheme

B. UTI Bonds

C. Long term Operations Scheme

D. India Development Bonds

Correct : D. India Development Bonds

15. According to the law of demand, when:

A. price increases demand decreases

B. price decreases demand decreases

C. price increases demand increases

D. price decreases demand does not change

Correct : A. price increases demand decreases

16. Which one of the following situations makes a firm most efficient? [CDS 2002]

A. Falling average costs

B. Rising average costs

C. Constant average costs

D. Lowest average costs

Correct : D. Lowest average costs

17. National Income total reveals: 1. Production side of the economy 2. Distribution side of the economy 3. Expenditure side of the economy Choose your answer from

A. 1 only

B. 2 only

C. 1, 2 and 3

D. 3 only

Correct : B. 2 only

18. Octroi is levied and collected by:

A. Centre

B. State Government

C. local bodies

D. all the above

Correct : C. local bodies

19. What is meant by 'Underwriting', the term frequently used in financial sector? [Punjab & Sindh Bank 2011]

A. Under valuation of the assets.

B. The Act of taking on a risk for a fee.

C. Giving a Guarantee that a loan will not become a bad loan.

D. The act of permission to float an IPO.

Correct : A. Under valuation of the assets.

20. What is a fiscal deficit? [Punjab & Sindh Bank 2011]

A. It is a gap between the values of the exports and imports

B. It is a gap between exports and imports minus external borrowings

C. It is a gap between total expenditure and total receipts of the Govt.

D. It is a gap between total receipts minus External Borrowing

Correct : C. It is a gap between total expenditure and total receipts of the Govt.

21. Which one of the following organizations/agencies' are involved in drafting the Union Budget of India? [Punjab & Sindh Bank 2011]

A. The Planning Commission only

B. The Comptroller and Auditor General only

C. Administrative Ministries only

D. (1) & (2) only

Correct : C. Administrative Ministries only

22. The highest weight in the revised Whole Sale Price Index, implemented from September 2010 is given to which of the following item? [Corporation Bank PO 2011]

A. Fuel

B. Food items

C. Manufactured items

D. Primary Articles

Correct : B. Food items

23. Which one of the following is the updated base for Wholesale Price Index (WPI) ? [Corporation Bank PO 2011]

A. 2002-2003

B. 2003-2004

C. 2004-2005

D. 2005-2006

Correct : C. 2004-2005

24. Under increasing returns the supply curve is [SSC (10+2) 2010]

A. positively sloped from left to right

B. negatively sloped from left to right

C. parallel to the quantity-axis

D. parallel to the price-axis

Correct : A. positively sloped from left to right

25. Development is : [CDS 1999]

A. synonymous with economic growth

B. narrower than economic growth

C. wider than economic growth

D. not related to economic growth

Correct : C. wider than economic growth

26. In the short run, a producer continues his production as long as he covers: [Asstt Grade 1992]

A. variable cost

B. fixed cost

C. average cost

D. marginal cost

Correct : B. fixed cost

27. Invisible trade is a trade: [IAS 1992]

A. of government with public institutions

B. of the services like the bank, marine companies and shipping companies

C. of corporate and financial institutions with government

D. of government with other countries

Correct : B. of the services like the bank, marine companies and shipping companies

28. What is 'Recession'?

A. Rise in the cost of production, especially because of wage increase

B. Increase in money supply without a matching increase in production

C. Reduction in production and employment for want of sufficient demand for goods

D. None of these

Correct : C. Reduction in production and employment for want of sufficient demand for goods

29. A Multinational is: [CDS 1991]

A. a company operating in several countries

B. a company having shareholders from more than one country

C. a company which does charitable work in poor countries

D. a company that operates only in those countries that do not have import restrictions

Correct : A. a company operating in several countries

30. The Indian budget includes:

A. revised estimates for the current year

B. budget estimates for the following year

C. actual figures of the preceding year

D. all of these

Correct : D. all of these

31. Funds belonging to Government of India are kept in: 1. Consolidated Fund of India 2. Public Account Fund of India 3. Contingency Fund of India

A. 1 and 2

B. 2 and 3

C. 1 and 3

D. 1, 2 and 3

Correct : D. 1, 2 and 3

32. A deflator is a technique of: [IAS 1992]

A. adjusting for changes in price level

B. adjusting for change in commodity

C. accounting for higher increase of GNP

D. accounting for decline of GNP

Correct : A. adjusting for changes in price level

33. Buyer's market denotes the place where:

A. the supply exceeds the demand

B. the demand exceeds the supply

C. the demand and supply are well balanced

D. commodities are available at competitive rates

Correct : B. the demand exceeds the supply

34. Deficit financing is spending:

A. by getting foreign aid

B. less than what is needed

C. in excess of revenue

D. by borrowing from abroad

Correct : C. in excess of revenue

35. Main bearers of the burden of indirect tax are:

A. manufacturers

B. traders

C. consumes

D. tax payers

Correct : C. consumes

36. A tax that takes away a higher proportion of one's income as the income rises is termed as [I. Tax & Central Excise 1990]

A. indirect tax

B. progressive tax

C. regressive tax

D. proportional tax

Correct : B. progressive tax

37. The Indian income tax is : 1. direct 2. progressive 3. indirect 4. proportional

A. 1and 2

B. 1and 4

C. 2 and 3

D. 3 and 4

Correct : A. 1and 2

38. Excise Duties are taxes on :

A. sale of commodities

B. export of commodities

C. production of commodities

D. import of commodities

Correct : C. production of commodities

39. The minimum effect of Direct Taxes is on :

A. food price

B. consumer goods

C. capital goods

D. income

Correct : D. income

40. Companies pay Corporation Tax on their: [UDC 1993]

A. investment

B. production

C. sales proceeds

D. incomes

Correct : D. incomes

41. In a country like India, why should an increase of direct taxes be preferred to an increase in indirect taxes?

A. Direct taxes serve the end of Socialism by taking away the excessive wealth from the rich

B. Direct taxes involve the well-off sections of the society while indirect taxes affect the masses

C. It is easy to realise direct taxes and is thus useful in a country troubled by tax evasion

D. All of the above

Correct : D. All of the above

42. Fresh evalution of every item of expenditure from the very beginning of each financial year is called: [SBI PO 1991]

A. fresh Budgeting

B. deficit Budgeting

C. performance Budgeting

D. zero-based Budgeting

Correct : D. zero-based Budgeting

43. The rate of growth of per capita income is equal to:

A. Rate of growth of national income divided by the rate of growth of population

B. Growth in national income divided by the increase in population

C. Rate of growth of national income minus the rate of growth of population

D. Rate of growth of national income

Correct : C. Rate of growth of national income minus the rate of growth of population

44. Consider the following statements relating to estimation of National Income : 1. Foreigners working in Indian Embassies are normal residents of India. 2. Foreigners working in the office of WHO, World Bank. UNO etc. located in India are not normal residents of India. 3. Indians working in foreign embassies in India are not normal residents of India. Which of the statements given above is/are correct? [CDS 2010]

A. 1 only

B. 1 and 2

C. 3 only

D. 1, 2 and 3

Correct : B. 1 and 2

45. Consider the following items of wholesale price index: [Asstt Commt 2010] 1. Primary articles 2. Fuel, power, lights and lubricants 3. Manufacturing products Arrange the above items in descending order in terms of their weightage in calculating wholesale price index

A. 1, 2, 3

B. 1, 3, 2

C. 3, 1, 2

D. 3, 2, 1

Correct : B. 1, 3, 2

46. When the Reserve Bank of India announces an increase of the Cash Reserve 'Ratio, what does it mean? [IAS 2010]

A. The commercial banks will have less money to lend

B. The Reserve Bank of India will have less money to lend

C. The Union Government will have less money to lend

D. The commercial banks will have more money to lend

Correct : A. The commercial banks will have less money to lend

47. In India, the tax proceeds of which one of the following as a percentage of gross tax revenue has significantly declined in the last five years? [IAS 2010]

A. Service tax

B. Personal income tax

C. Excise duty

D. Corporation tax

Correct : C. Excise duty

48. Consider the following statements: In India, taxes on transactions in Stock Exchanges and Futures Markets are 1. levied by the Union 2. collected by the States Which of the statements given above is/are correct? [IAS 2010]

A. 1 only

B. 2 only

C. Both 1 and 2

D. Neither 1 nor 2

Correct : A. 1 only

49. With reference to Indian economy, consider the following statements: 1. The Gross Domestic Product (GDP) has increased by four times in the last 10 years. 2. The percentage share of Public Sector in GDP has declined in the last 10 years. Which of the statements given above is/are correct? [IAS 2010]

A. 1 only

B. 2 only

C. Both 1 and 2

D. Neither 1 nor 2

Correct : B. 2 only

50. Which of the following statements is/are correct? 1. If a country is experiencing increase in its per capita GDP, its GDP must necessarily be growing. 2. If a country is experiencing negative inflation, its GDP must be decreasing. Select the correct answer using the code given below: [CDS 2012]

A. 1 only

B. 2 only

C. Both 1 and 2

D. Neither 1 nor 2

Correct : D. Neither 1 nor 2

51. National income ignores [CDS 2012]

A. sales of firm

B. salary of employees

C. exports of the IT sector

D. sale of land

Correct : B. salary of employees

52. An individual's actual standard of living can be assessed by [SSC Grad 2011]

A. Gross National Income

B. Net National Income

C. Per Capita Income

D. Disposable Personal Income

Correct : D. Disposable Personal Income

53. Consider the following statements about Sinking Fund: 1. It is a method of repayment of public debt. 2. It is created by the government out of budgetary revenues every year. Which of the statements given above is/are correct? [CDS 2011]

A. 1 only

B. 2 only

C. Both 1 and 2

D. Neither 1 nor 2

Correct : C. Both 1 and 2

54. Which one among the following is not a component of fiscal policy? [Asstt Commdt 2011]

A. Taxation policy

B. Public debt policy

C. Trade policy

D. Public expenditure policy

Correct : C. Trade policy

55. The total value of goods and services, produced' in a country during a given period is [CPO SI 2011]

A. Disposable income

B. National income

C. Per capita income

D. Net national income

Correct : B. National income

56. In the context of Indian economy, consider the following statements: 1. The growth rate of GDP has – steadily increased in the last five years. 2. The growth rate in per capita income has steadily increased in the last five years. Which of the statements given above is/are correct? [CSAT2011]

A. 1only

B. 2 only

C. Both 1and 2

D. Neither 1 nor 2

Correct : D. Neither 1 nor 2

57. Economic growth is usually coupled with [CSAT 2011]

A. deflation

B. inflation

C. stagflation

D. hyperinflation

Correct : B. inflation

58. In terms of economy, the visit by foreign nationals to witness the XIX Common Wealth Games in India amounted to [CSAT 2011]

A. Export

B. Import

C. Production

D. Consumption

Correct : A. Export

59. Which one of the following statements appropriately describes the "fiscal stimulus"? [CSAT 2011]

A. It is a massive investment by the Government in manufacturing sector to ensure the supply of goods to meet the demand surge caused by rapid economic growth

B. It is an intense affirmative action of the Government to boost economic activity in the country

C. It is Government's intensive action on financial institutions to ensure disbursement of loans to agriculture and allied sectors to promote greater food production and contain food inflation

D. It is an extreme affirmative action by the Government to pursue- its policy of financial inclusion

Correct : B. It is an intense affirmative action of the Government to boost economic activity in the country

60. Consider the following actions which the Government can take: 1. Devaluing the domestic currency. 2. Reduction in the export subsidy. 3. Adopting suitable policies which attract greater FDI and more funds from FIIs. Which of the above action/actions can help in reducing the current account deficit? [CSAT 2011]

A. 1 and 2

B. 2 and 3

C. 3 only

D. 1 and 3

Correct : D. 1 and 3

61. A rapid increase in the rate of inflation is sometimes attributed to the "base effect" What is "base effect"? [CSAT 2011]

A. It is the impact of drastic deficiency in supply due to failure of crops

B. It is the impact of the surge in demand due to rapid economic growth

C. It is the impact of the price levels of previous year on the calculation of inflation rate

D. None of the statements (a), (b) and (c) given above is correct in this context

Correct : C. It is the impact of the price levels of previous year on the calculation of inflation rate

62. Which one of the following is not a feature of "Value Added Tax"? [CSAT 2011]

A. It is a multi-point destination-based system of taxation

B. It is a tax levied on value addition at each stage of transaction in the productiondistribution chain

C. It is a tax on the final consumption of goods or services and must ultimately be borne by the consumer

D. It is basically a subject of the Central Government and the State Governments are only a facilitator for its Successful implementation

Correct : D. It is basically a subject of the Central Government and the State Governments are only a facilitator for its Successful implementation

63. The National Income is more at current prices than at constant prices because: [CDS 1992]

A. increase in price is equal to increase in production

B. increase in price is more than production

C. increase in production is more than increase in price

D. of decrease in production only

Correct : C. increase in production is more than increase in price

64. The first estimate of national income in India was made by:

A. Mahalanobis

B. V.K.R.V. Rao

C. Dadabhai Naoroji

D. Prof. Sheroi

Correct : C. Dadabhai Naoroji

65. The per capita income is obtained by:

A. summing up the income of all the citizens of the country

B. dividing national income by the population

C. estimating the minimum income of individual citizens

D. dividing the total national capital with the profit earned

Correct : B. dividing national income by the population

66. Which of the following is correct regarding the Gross Domestic Saving In India? [Asstt Grade 1992]

A. Contribution of Household sector is the largest

B. Contribution of Government sector is the largest

C. Contribution of Corporate sector is the largest

D. None of these

Correct : A. Contribution of Household sector is the largest

67. Which of the following is not required while computing Gross National Product (GNP)? [Asstt Grade 1992]

A. Net foreign investment

B. Private investment

C. Per capita income of citizens

D. Purchase of goods by government

Correct : C. Per capita income of citizens

68. National income is the same as:

A. Net Domestic Product at market price

B. Net Domestic Product at cost factor

C. Net National Product at market price

D. Net National Product at factor cost

Correct : D. Net National Product at factor cost

69. The sum total of incomes received for the services of labour, land or capital in a country is called:

A. gross domestic product

B. national income

C. gross domestic income

D. gross national income

Correct : B. national income

70. Which of the following is not shared by the Centre and the States?

A. Sales Tax

B. Corporation Tax

C. Income Tax

D. Union Excise Duties

Correct : A. Sales Tax

71. Which of the following taxes is not levied by the Union Government?

A. Wealth Tax

B. Excise Duty

C. Profession Tax

D. Income Tax

Correct : C. Profession Tax

72. The principal source of revenue to the State Government in India is :

A. Income Tax

B. Sales Tax

C. State Excise Duties

D. Land Revenue

Correct : B. Sales Tax

73. Which of the following is an indirect tax?

A. Corporation Tax

B. Excise Duty

C. Wealth Tax

D. Capital Gains Tax

Correct : B. Excise Duty

74. Which Agriculture export item is second in case of India?

A. Marine product

B. Rice

C. Sugar

D. Oil cake

Correct : B. Rice

75. The performance of which of the following industries is considered performance of the core industry? [RBI Grade B Officer 2011]

A. Garments

B. Leather

C. IT

D. Oil and Petroleum

Correct : D. Oil and Petroleum

76. Which of the following agencies has the power to declare any industrial unit as a potentially sick unit? [CDS 2000]

A. BIFR

B. MRTPC

C. FICCI

D. IRBI

Correct : A. BIFR

77. The most important small-scale industry in India is that of:

A. textiles

B. jute

C. jewellery

D. handloom

Correct : D. handloom

78. UTI has been divided into two parts UTI-I and UTI-II. Which part has been kept under the control of the government?

A. UTI-I

B. UTI-II

C. Both the above

D. None of the above

Correct : A. UTI-I

79. Which part of separated UTI is under SEBl's regulation?

A. UTI-I

B. UTI-II

C. Both the above

D. None of the above

Correct : B. UTI-II

80. Which of the following is not sponsor of newly established UTI-II?

A. Punjab National Bank

B. General Insurance Corporation

C. Life Insurance Corporation of India

D. State Bank of India

Correct : B. General Insurance Corporation

81. The largest importer country of Indian textile is :

A. Italy

B. Germany

C. Singapore

D. USA

Correct : D. USA

82. Indian Railways revenue from:

A. passenger fare

B. freight

C. traffic tax

D. passenger tax

Correct : B. freight

83. Which industry earns the second highest, net foreign exchange from the trade?

A. Gems and ornaments

B. Textile industry

C. Steel industry

D. Engineering goods industry

Correct : D. Engineering goods industry

84. Which of the following measures is not likely to help in improving India's balance of payments position?

A. Devaluation of the rupee

B. Encouragement of import substitution

C. Imposition of higher duty on imports

D. Imposition of higher duty on exports

Correct : D. Imposition of higher duty on exports

85. In India, maximum number of workers are employed in :

A. textile industry

B. iron and steel industry

C. petrochemical industry

D. automobile industry

Correct : A. textile industry

86. After textiles, India's second important industry is :

A. Sugar

B. Jute

C. Cement

D. Iron and steel

Correct : D. Iron and steel

87. India's oldest iron and steel plant is : [Intelligence Bureau 1991]

A. TISCO at Jamshedpur

B. TISCO at Burnpur

C. Durgapur Iron and Steel Plant

D. Rourkela Iron and Steel Plant

Correct : A. TISCO at Jamshedpur

88. Which industry in India was worst affected because of the partition? [PCS 1994]

A. Paper and Iron

B. Jute and Cotton

C. Cotton and Sugar

D. Engineering and Cement

Correct : B. Jute and Cotton

89. Which of the following industries was started first in India?

A. Cotton

B. Paper

C. Tea

D. Jute

Correct : C. Tea

90. Which of the following states ranks first in terms of the maximum number of agrobased industries? [Bank PO 1993]

A. Gujarat

B. Punjab

C. West Bengal

D. Kerala

Correct : B. Punjab

91. In which of the following industries is the maximum number of women employed in India? [CDS 1993]

A. Textile

B. Jute

C. Tea

D. Coal

Correct : C. Tea

92. Which of the following is the largest (in terms of' turnover) Public Sector organisation in India?

A. Bharat Petroleum

B. Steel Authority of India

C. Indian Oil Corporation

D. Oil and Natural Gas Commission

Correct : C. Indian Oil Corporation

93. Under perfect competition: [GIC AAO 1993]

A. any firm can influence price in the market

B. any firm can influence supply in the market

C. any firm can influence price and supply in the market

D. no firm can influence price and supply in the market

Correct : C. any firm can influence price and supply in the market

94. India earns maximum foreign exchange from the export of:

A. garments

B. jute

C. gems and jewellery

D. cotton

Correct : C. gems and jewellery

95. Bokaro Steel Limited was established with the assistance of: [Asstt Comm 2008]

A. Germany

B. Soviet Union

C. UK

D. USA

Correct : B. Soviet Union

96. As per the reports published in the newspapers the banks, particularly public sector banks are tying up with various rating agencies for providing a qualitative assessment of the credit needs of the borrowers. Which amongst the following is/are such credit rating agencies in India? [Punjab & Sindh Bank 2011] (A) CARE (B) CRISIL (C) ULlP

A. Only A

B. Only B

C. A and B only

D. Only C

Correct : C. A and B only

97. Consider the following statements: [NDA 2003] 1. The first newsprint plant set up in India was at Nepanagar. 2. The first modern steel plant in India was set up at Bhadrawati. Which of these statements is/are correct?

A. 1 only

B. 2 only

C. Both 1 and 2

D. Neither 1 nor 2

Correct : A. 1 only

98. Identify the correct sequence of the establishment of steel plants in India from the earliest to the latest: [NDA 2002]

A. Bokaro, Jamshedpur, Vishakhapatnam, Bhilai

B. Jamshedpur, Bhilai, Bokaro, Vishakhapatnam

C. Bhilai, Jamshedpur, Vishakhapatnam, Bokaro

D. Jamshedpur, Vishakhapatnam

Correct : B. Jamshedpur, Bhilai, Bokaro, Vishakhapatnam

99. The following is the list of four integrated steel plants in the country [CDS 1991] 1. Bhilai 2. TISCO 3. IISCO 4. Bokaro Which of the following combinations lists all the plants in the public sector ?

A. 1, 2 and 4

B. 1, 3 and 4

C. 2, 3 and 4

D. None of these

Correct : B. 1, 3 and 4

100. Which of the following statements regarding the iron and steel plants at Bhilai, Rourkela and Durgapur are correct? [CDS 1992] 1. These plants were established in public sector during the Second Five Year Plan 2. These are located in the steel raw material belt 3. These were established with the help from Britain, Soviet Union and West Germany respectively

A. 1 and 2

B. 2 and 3

C. 1 and 3

D. 2 and 3

Correct : A. 1 and 2