Economic MCQ .Indiahas ?

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Socialistic economy Gandhian economy Answer: Mixed economy Free economy

2.The most important source of capital formation in India has been?

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Answer: Household savings Public sector savings Government revenue surpluses Corporate savings

3.In India, the Public Sector is most dominant in?

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transport steel production Answer: commercial banking organised term lending financial institutions.

4.Goas economy is mainly based on ?

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tourism Answer: export of ores agriculture None of these

5.Indias wage policy is based on ?

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Answer: Cost Of Living Standard of living productivity None of these

6.One of the reasons for Indias occupational structure remaining more or less the same over the years has been that
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Productivity in agriculture has been high enough to induce people to stay with agriculture Answer: People are largely unaware of the significance of transition from agriculture to industry for economic development. Investment pattern has been directed towards capital intensive industries. ceilings-on land holdings have enabled more people to own land and hence their preference to stay with agriculture

7. Which of the following is correct regarding the Gross Domestic Savings in India?
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Answer: Contribution of Household sector is the largest Contribution of Government sector is the largest Contribution of Corporate sector is the largest None of these.

8.Which of the following governmental steps has proved relatively effective in controlling the double digit rate of inflation in the Indian economy during recent years
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Answer: Containing budgetary deficits and unproductive expenditure Streamlined public distribution system Enhanced rate of production of all consumer goods Pursuing an export -oriented strategy

9.The modern economy is not characterised by?

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capital intensive mode of production development of money economy production for market Answer: self-sufficient village system

10.One of the problems in calculating the national income in India correctly is?
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under employment inflation Answer: non -monetised consumption low savings

11.The main source of Indias national income is?

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Industry Answer: Agriculture Forestry None of these

12.Which of the following are the main causes of slow rate of growth of per capita income in India? I. High capital output ratio 2. High rate of growth of population 3.High rate of capital formation 4. High level of fiscal deficits
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Answer: 1,2 2,3,4 1,4

All of the Above

13. Among Indian Economists who had done pioneering work on National Income?
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P. N. Dhar Jagdish Bhagwati Answer: V. K. R. V. Rao Prof. Shenoi

14.Which of the following is not a method of estimating national income?

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Income method Value added method Expenditure method Answer: Export import method

15. In our country, which of the following affects poverty line the most?
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Level of prices Production quantum Answer: Per capita income Quantum of gold reserve

16.To know whether the rich are getting richer and the poor getting poorer, it is necessary to compare
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The availability of food grains among two sets of people, one rich and the other poor, over different periods of time Answer: The distribution of income of an identical set of income recipients in different periods of time The wholesale price index over different periods of time for different regions The distribution of income of different sets of income recipients at a point of time

17.The largest revenue in India is obtained from?

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Sales Tax Direct Taxes Answer: Excise Duties None of these

18.Which of the following is not true about vote on-account?

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Answer: It is a budget presented in the Parliament to cover the deficit left by the last budget. It does not allow the Government to set for the economic policies of the new plan which starts from April 1.

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It prevents the Government from imposing fresh taxes or withdrawing old one. This allows the Government to withdraw an amount for a period with the consent of Parliament.

19.Fresh evaluation of every item of expenditure from the very beginning of each financial year is called ?
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Fresh Budgeting Deficit Budgeting Performance Budgeting Answer: Zero-based Budgeting

20. Government imposes taxes to ?

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check the accumulation of wealth among the rich Answer: Run the machinery of state uplift weaker sections None of these

21.An ad valorem duty is a tax on the basis of

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Answer: the price of a commodity the value added the advertisement expenditure the unit of the commodity

22. The budget is presented to the Parliament on

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Answer: the last day of February 15th March the last day of March 1st April

23.The income tax in India is

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indirect and progressive direct and proportional Answer: direct and progressive indirect and proportional

24. Fiscal Policy is connected with

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Issue of currency exports and imports Answer: public revenue and expenditure None of these

25.Which of the following is not a direct tax?

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Wealth Tax Income Tax Estate Duty Answer: Sales Tax

1. VAT is imposed (A) Directly on consumer (B) On final stage of production (C) On first stage of production (D) On all stages between production and final sale Ans : (D) 2. Which city has been identified as the hottest (i.e., first ranking) outsourcing destination in the world ? (A) Bangalore (India) (B) Dublin (Ireland) (C) Makati City (The Philippines) (D) Tokyo (Japan) Ans : (A) 3. Kutir Jyoti scheme is associated with (A) Promoting cottage industry in villages (B) Promoting employment among rural unemployed youth (C) Providing electricity to rural families living below the poverty line (D) All of these Ans : (C) 4. Novelis has been acquired and merged with (A) Tata Steels (B) SAIL (C) HINDALCO (D) Jindal Steels Ans : (C) 5. OTCEI is (A) Atomic Submarine of China (B) Economic Policy of USA (C) An Indian Share Market (D) A defence research organisation Ans : (C) 6. How many commodity exchanges (as on July 30, 2010) are working in India ? (A) Three (B) Four (C) Five (D) Six Ans : (B) 7. As per the statistics on foreign debt at the end of March 2010, the ratio of long term debt and short term debt stands at (A) About 80 : 20 (B) About 75 : 25 (C) About 70 : 30

(D) About 65 : 35 Ans : (A) 8. The base of Consumer Price Index for Industrial Workers is being shifted from 1982 to (A) 1995 (B) 1998 (C) 2000 (D) 2001 Ans : (D) 9. SAARC University will have its head office in (A) Dhaka (Bangladesh) (B) New Delhi (India) (C) Colombo (Sri Lanka) (D) Male (Maldives) Ans : (B) 10. The base year of present Consumer Price Index (CPI) for Urban Non-Manual Employees (CPIUNME) is (A) 1980-81 (B) 1981-82 (C) 1982-83 (D) 1984-85 Ans : (D) 11. CAPART is related with (A) Assisting and evaluating rural welfare programmes (B) Computer hardware (C) Consultant service of export promotion (D) Controlling pollution in big industries Ans : (A) 12. Note issuing deptt. of RBI should always possess the minimum gold stock of worth (A) Rs. 85 crore (B) Rs. 115 crore (C) Rs. 200 crore (D) None of these Ans : (B) 13. Which of the following does not grant any tax rebate ? (A) National Saving Certificate (B) Indira Vikas Patra (C) National Saving Scheme (D) Public Provident Fund Ans : (B) 14. Ad hoc Treasury Bill System of meeting budget deficit in India was abolished on (A) 31 March, 1997 (B) 31 March, 1996 (C) 1 April, 1992 (D) 1 April, 1995 Ans : (A) 15. SEBI was established in (A) 1993 (B) 1992

(C) 1988 (D) 1990 Ans : (C) 16. The working of SEBI includes (A) To regulate the dealings of share market (B) To check the foul dealings in share market (C) To control the inside trading of shares (D) All of these Ans : (D) 17. The Ad hoc Treasury Bill System of meeting budget deficit in India was replaced by Ways and Means Advances System which has come into force on (A) March 31, 1997 (B) April 1, 1996 (C) April 1, 1997 (D) None of these Ans : (C) 18. The recommendations of the 13th Finance Commission has become/will be operational during the period (A) 2009-14 (B) 2010-15 (C) 2011-16 (D) None of the above Ans : (B) 19. For fiscal consolidation, 13th Finance Commission in its suggested roadmap kept the ceiling of debt burden of the union government at (A) 35% of GDP (B) 40% of GDP (C) 45% of GDP (D) 50% of GDP Ans : (C) 20. Which statement of the following is true for IMF ? (A) It is not an agency of UNO (B) It can grant loan to any country of the world (C) It can grant loan to state Govt. of a country (D) It grants loan only to member nations Ans : (D)