QUIZ ON ECONOMICS

Set of General Knowledge Questions on Economics and Indian Economy

1. When the productive capacity of the economic system of a State is inadequate to create sufficient number of jobs, it is called

  1. Seasonal unemployment
  2. Structural unemployment
  3. Disguised unemployment
  4. Cyclical unemployment

2. Fiscal policy in India is formulated by

  1. The Reserve Bank of India
  2. The Planning Commission
  3. The Finance Ministry
  4. The Securities and Exchange board of India

3. Which one among the following is not a clause of World Trade Organization?

  1. Most favoured nation treatment
  2. Lowering trade barriers with negotiations
  3. Providing financial support to the countries having deficit balance of payments
  4. Discouraging unfair trade practices such as anti-dumping and export subsides

4. Special Drawings Rights (SDRs) relate to

  1. The World Bank
  2. The Reserve Bank of India
  3. The World Trade Organization
  4. The International Monetary Fund

5. Which of the following measures should be taken when an economy is going through inflationary pressures?

  1. The direct taxes should increased.
  2. The interest rate should be reduced.
  3. The public spending should be increased.

Select the correct answer using the code given below:

Code:

  1. 1 only
  2. 2 only
  3. 2 and 3
  4. 1 and 2

6. National income ignores

  1. Sales of a firm
  2. Salary of employees
  3. Exports of the IT sector
  4. Sale of land

7. The TEAM-9 initiative is a techno economic cooperation venture between India and eight countries of

  1. West Africa
  2. East Africa
  3. North Africa
  4. Central Africa

8. Which one among the following is not true for Special Economic Zones?

  1. No licence is required for import
  2. Manufacturing and service activities are allowed
  3. No permission for subcontracting
  4. No routine examination of cargo for export/import by customs authorities

9. According to Goldman Sachs’ review of emerging economies, by 2050 which one of the following would be the order of the largest economies in the world?

  1. China-USA-India-Brazil-Mexico
  2. USA-China-India-Brazil-Mexico
  3. China-USA-Brazil-India-Mexico
  4. USA-Mexico-China-India-Brazil

10. Who estimated the National Income for the first time in India?

  1. Mahalanobis
  2. Dadabhai Naoroji
  3. VKRV Rao
  4. Sardar Patel


11. Economic development depends on

  1. Natural resources
  2. Capital formation
  3. Size of the market
  4. All of the above

12. National income is generated from

  1. any money making activity
  2. any laborious activity
  3. any profit-making activity
  4. any productive activity

13. Money supply is governed by the

  1. Planning Commission
  2. Finance Commission
  3. Reserve Bank of India
  4. Commercial Banks

14. The present Indian monetary system is based on

  1. Gold Reserve System
  2. Proportional Reserve System
  3. Convertible Currency System
  4. Minimum Reserve System

15. A situation where we have people whose level of income is not sufficient to meet the minimum consumption expenditure is considered as

  1. Absolute Poverty
  2. Relative Poverty
  3. Urban Poverty
  4. Rural Poverty

16. Full convertibility of a rupee means

  1. Purchase of foreign exchange for rupees freely
  2. Payment for imports in terms of rupees
  3. Repayment of loans in terms of rupees
  4. Determination of rate of exchange between rupee and foreign currencies freely by the market forces of demand and supply

17. India is called a mixed economy because of the existence of

  1. Public Sector
  2. Private Sector
  3. Joint Sector
  4. Cooperative Sector
  1. 1, 4
  2. 1, 2
  3. 3, 4
  4. 2, 4

18. The term stagflation refers to a situation where

  1. Growth has no relation with the change in prices
  2. Rate of growth and prices both are decreasing
  3. Rate of growth is faster than the rate of price increase
  4. Rate of growth is slower than the rate of price increase

19. Revealed Preference Theory was propounded by

  1. Adam Smith
  2. Marshall
  3. P. A. Samuelson
  4. J. S. Mill

20. Gross Domestic Product is defined as the value of all

  1. Goods produced in an economy in a year
  2. Goods and services produced in an economy in a year
  3. Final goods produced in an economy in a year
  4. Final goods and services produced in an economy in a year

21. An exceptional demand curve is one that moves

  1. Upward to the right
  2. Downward to the right
  3. Horizontally
  4. Vertically

22. Production function explains the relationship between

  1. Initial inputs and ultimate output
  2. Inputs and ultimate consumption
  3. Output and consumption
  4. Output and exports

23. The Draft of the Five Year Plans in India is approved by the

  1. National Development Council
  2. Planning Commission
  3. National Productivity Council
  4. Ministry of Finance

24. In Economics the terms ‘Utility’ and ‘Usefulness’ have

  1. Same meaning
  2. Different meaning
  3. Opposite meaning
  4. None of the above

25. Nature of unemployment in agriculture in India is

  1. Only seasonal
  2. Only disguised
  3. Both (a) and (b)
  4. None of the above

26. The terms "Micro Economics" and "Macro Economics" were coined by

  1. Alfred Marshall
  2. Ragner Nurkse
  3. Ragner Frisch
  4. J.M. Keynes

Also see

Also see