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Economics Questions and Answers for Competitive Exams | Indian Economy Quiz Set 14

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Questions
1 In the terminology of WTO, which among the following is not an amber box subsidy ?
1 Minimum support price of cereals
2 Subsidy on seeds
3 Subsidy on irrigation rates
4 Cost of government pest control and management

Answer: Cost of government pest control and management
2 The weight of manufacturing in old IIP (base 1993-94) was 76.36% which has now been changed in the new IIP (base 2004-05) at
1 75.53%
2 Unchanged at 76.36%
3 78.22%
4 79.39%

Answer: 75.53%
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3 Which of the following agricultural holdings have largest percentage in India ?
1 Marginal Holdings
2 Small Holdings
3 Large Holdings
4 Semi-Medium Holdings

Answer:Marginal Holdings
4 First two States/Regions in India having highest yield of rice in 2013-14 were
1 National Capital Territory of Delhi and Punjab
2 Punjab and West-Bengal
3 Andhra Pradesh and Haryana
4 Punjab and Uttar Pradesh

Answer:`National Capital Territory of Delhi and Punjab
5 Which among the following rates is independently determined in India ?
1 Repo rate
2 Reverse repo rate
3 Both (1) and (2)
4 Neither (1) nor (2)

Answer:Repo rate
6 The main objectives of the 12th Five Year Plan are
1 inclusive growth and poverty reduction
2 inclusive and sustainable growth
3 Faster, sustainable and more inclusive growth
4 Sustainable and inclusive growth to reduce poverty and unemployment

Answer:Faster, sustainable and more inclusive growth
7 Which of the following are not considered as flow variables in economic analysis ?
1 Supply and demand
2 Saving and investment
3 Money supply and public debt
4 Exports and imports

Answer:Money supply and public debt
8 If the Reserve Bank of India wishes to decrease the money supply, it should
1 buy treasury bills in the open market
2 raise statutory liquidity ratio
3 raise the discount rate
4 lower the reserve requirements

Answer: buy treasury bills in the open market
9 Which of the following is included in M1 ?
1 Savings deposits
2 Demand deposits
3 Gold stock
4 Assets under money market mutual funds

Answer: Demand deposits
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10 The production function Q = 150 L0.7 K05, exhibits the returns to scale as :
1 Constant
2 Increasing
3 Decreasing
4 Fluctuating

Answer:Increasing
11 Indirect least squares method of estimation is applied to equations of a simultaneous equation system. The estimates so obtained will be
1 Unbiased and consistent
2 Biased and inconsistent
3 Biased and consistent
4 Unbiased and inconsistent

Answer:Unbiased and consistent
12 In a two-variable regression Y is dependent variable and X is independent variable. If the correlation coefficient between Y and X is 0.7, then which one of the following result is correct ?
1 7% variations in Y are explained by X.
2 70% variations in Y are explained by X.
3 49% variation in Y are explained by X.
4 0.7% variations in Y are explained by X.

Answer: 49% variation in Y are explained by X.
13 Koyck’s approach to econometric analysis deals with relationships involving :
1 Lagged explanatory variables
2 Qualitative explanatory variables
3 Exponential explanatory variables
4 None of the above

Answer:Qualitative explanatory variables
14 For the demand function P = 10 – 2x – 0.5 x2, what is price elasticity of demand at x = 2 ?
1 Zero
2 0.5
3 1
4 1.5

Answer:0.5
15 In a regression with 3 independent variables and 20 observations F value calculated is to be tested. What will be degrees of freedom for numerator and denominator in testing procedure ?
1 2, 18
2 3, 17
3 3, 16
4 3, 20

Answer:3, 16

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