Economics Questions and Answers for Competitive Exams | Indian Economy Quiz Set 17

Questions
1 As per 2013 estimates, which among the following States had the least Total Fertility Rate ?
1 Uttar Pradesh
2 Madhya Pradesh
3 Kerala
4 West Bengal

Answer:West Bengal
2 The target inflation rate in the monetary policy by R.B.I. is based on
1 Consumer Price Index Number
2 Whole Price Index Number
3 Fisher’s Ideal Index Number
4 G.D.P. Deflator

Answer:Consumer Price Index Number

⭐ Make GKSeries Your Preferred Source on Google

Add GKSeries as Preferred Source
3 The % inflation rate based on All India WPI has been negative during 2015-16, while the inflation rate based on All India CPI has been moderately positive during the same period. This divergence can be explained by which of the following ?
1 The two index numbers have different base years.
2 The two index numbers have different commodities and respective weights for them.
3 The two index numbers are released by different government departments.
4 All of the above

Answer:The two index numbers have different commodities and respective weights for them.
4 Which among the following measures increase liquidity in the economic system ?
1 Reduction in the Cash Reserve Ratio
2 Increase in the Repo rate
3 Increase in the statutory liquidity ratio maintained by the banks
4 Increase in Reverse Repo rate

Answer:Reduction in the Cash Reserve Ratio
5 According to Friedman, on which of the following does the velocity of circulation of money depend ?
1 Market rate of interest on Bonds
2 Rate of change in general price level
3 Ratio of savings to income
4 Ratio of savings to investment

Answer:Rate of change in general price level
6 The slope of the IS curve depends upon
1 the level of government expenditure
2 the sensitivity of demand for real money balances to the interest rate
3 the interest sensitivity of investment
4 None of the above

Answer:the interest sensitivity of investment
7 According to Keynes, the supply of money with respect to interest rate is
1 perfectly elastic
2 perfectly inelastic
3 unitary elastic
4 moderately elastic

Answer:perfectly elastic
8 Which of the following correctly defines the effective revenue deficit as per budget of the Central Government ?
1 Gross Fiscal Deficit – Revenue Receipts
2 Gross Fiscal Deficit – Capital Receipts
3 Gross Fiscal Deficit – Interest Payments
4 Revenue Deficit – Grants for creation of Capital Assets

Answer:Revenue Deficit – Grants for creation of Capital Assets
9 An imposition of lump sum tax on a monopolist will affect the equilibrium condition in what manner ?
1 It’s profit will decline and so also the equilibrium output.
2 Both equilibrium output and price will decline.
3 Only equilibrium price will decline.
4 Only equilibrium profit will decline.

Answer: Only equilibrium profit will decline.
10 If the revenue from income-tax increases from ` 100 crore to ` 109 crore and nominal GDP increases from ` 100 crore to ` 112 crore, the tax buoyancy of income tax is given by which of the following ?
1 1.33
2 75
3 3
4 None of the above

Answer:75
11 If taxes are levied according to Ability to pay theory, it leads to
1 Regressive Taxes
2 Progressive Taxes
3 Proportional Taxes
4 Indirect Taxes

Answer: Progressive Taxes
12 The whole incidence of a sales tax will be on the buyers when
1 the demand for the commodity is perfectly elastic.
2 the demand for the commodity is moderately elastic.
3 the demand for the commodity is perfectly inelastic.
4 both the demand and supply for the commodity are perfectly elastic.

Answer: the demand for the commodity is perfectly inelastic.
13 Who among the following is not associated with the ‘Dependency Theory’ of development ?
1 Paul Baran
2 Samir Amin
3 A.G. Frank
4 Gunnar Myrdal

Answer:Gunnar Myrdal
14 World Population Day is celebrated on 11th July because on this day in 1987 world’s population reached
1 4 billion people
2 5 billion people
3 6 billion people
4 None of the above

Answer:5 billion people
15 Which of the following is used by demographers as an indicator of the quality of a populations’ healthcare and standard of living ?
1 Age specific death rate
2 Age specific birth rate
3 Infant mortality rate
4 Crude death rate

Answer:Infant mortality rate

View All Economics Practice Test Sets

apsc complete general studies course