JOIN ADRE 2.0 Telegram Group

Economics Questions and Answers for Competitive Exams | Indian Economy Quiz Set 34

Questions
1 Under a freely exchange rate system, a deficit in a Nation’s Balance of Payments Account is automatically corrected by
1 a depreciation of its currency
2 an appreciation of its currency
3 domestic inflation
4 deflation and rise in National income

Answer:a depreciation of its currency
2 Maastricht Treaty led to the creation of which one of the following ?
1 European Parliament
2 Euro
3 European Court of Justice
4 European Union

Answer:European Union
Advertisement
Article and Schedule Quiz Start Test!

DOWNLOAD CURRENT AFFAIRS PDF FROM APP

3 The Stolper-Samuelson theorem postulates that the imposition of a tariff by a nation causes the real income of the nation’s
1 abundant factor to rise
2 scarce factor to rise
3 scarce factor to fall
4 both (A) & (B) are possible

Answer: scarce factor to rise
4 What is perspective planning ?
1 Overall appraisal of planning.
2 Review of planning in different fields.
3 Taking up past experience and reviewing the future in that light.
4 Planning for future so as to meet the long term requirement of development in the country.

Answer:Planning for future so as to meet the long term requirement of development in the country.
5 Who formulated the ‘People’s Plan’ for India in 1944 ?
1 J.L. Nehru
2 M.N. Roy
3 Subhas Chandra Bose
4 Mahatma Gandhi

Answer: M.N. Roy
6 “Trickle down” strategy implies
1 growing GNP taking care of poverty.
2 reduction in the income of the upper class by deliberate redistribution.
3 direct achievement of better nourishment, health, education, etc. instead of growth of GNP first.
4 to target a particular sector of economy for betterment.

Answer: growing GNP taking care of poverty.
7 Of the following, which combination of two deficits is most significant for the Indian economy ?
1 Fiscal deficit and Revenue deficit
2 Revenue deficit and Primary deficit
3 Budget deficit and Fiscal deficit
4 Current Account deficit and Fiscal deficit

Answer:Current Account deficit and Fiscal deficit
8 Of the following, which sector witnessed the highest growth rate in year 2013-14 ?
1 Agriculture, forestry and fishery
2 Mining and quarrying
3 Manufacturing
4 Construction

Answer:Agriculture, forestry and fishery
9 Who has advocated the concept of PURA (Providing Urban Amenities in Rural Areas) for our country ?
1 A.P.J. Abdul Kalam
2 Manmohan Singh
3 Charan Singh
4 None of the above

Answer:A.P.J. Abdul Kalam
10 ECOMARC is a symbol related to
1 Export Goods
2 Goods Safe for Environment
3 Import Goods
4 Best Quality Goods

Answer:Goods Safe for Environment
11 Techniques used to encourage the production and consumption of goods that generate positive externalities are referred to as
1 Tax incentives and vouchers
2 Fees and fines
3 Taxes and charges
4 Special assessment

Answer: Tax incentives and vouchers
12 Which of the canons of taxations have been propounded by Adam Smith ?
1 Economy, Elasticity, Simplicity and Sufficiency
2 Equity, Certainty, Convenience and Economy
3 Certainty, Convenience, Economy and Elasticity
4 Economy, Coordination, Convenience and Expediency

Answer:Equity, Certainty, Convenience and Economy
13 Displacement effect explained in Peacock-Wiseman hypothesis implies :
1 An upward displacement of public expenditure according to higher economic growth
2 The movement from older level of public expenditure and taxation to a newer and higher level
3 Public expenditure increases at steady rate and reaches higher level
4 Government undertakes more and more newer activities and hence public expenditure rises steeply upwards

Answer:The movement from older level of public expenditure and taxation to a newer and higher level
14 The most important characteristic of a federation is :
1 Perfect match between the functions and resources of the Central and State Governments
2 Non-correspondence between the functions and resources of the Central and State Governments
3 Centre’s supremacy over the States
4 None of the above

Answer:Non-correspondence between the functions and resources of the Central and State Governments
15 Fiscal consolidation at the Centre can be achieved by :
1 Rationalization of major subsidies alone
2 Reducing the defence expenditure only
3 Raising the tax-GDP ratio and rationalisation of subsidies
4 Minimising the Central assistance to the States

Answer:Raising the tax-GDP ratio and rationalisation of subsidies

View All Economics Practice Test Sets

ADRE 2.0 FULL LENGTH MOCK TEST

Take Mock Tests

Missiles Mock Test Start Test!
SSC MTS Mock Test Start Test
IBPS CLERK MOCK TEST Start Test
SSC MTS 2022 JULY 26 Shift 1 (ENGLISH) Start Test!
SSC GD Previous Year Paper 2021 Nov 17 Shift - I (Hindi) Start Test!
SSC CGL Tier - 1 PYP 2022 April 21 Shift- 1 (ENGLISH) Start Test!
MPSC PAPER I MOCK TEST 1 (ENGLISH) Start Test!
IB Security Assistant Mock test 1 (english) Start Test!
UP POLICE CONSTABLE MOCK TEST 1 Start Test!
DELHI POLICE CONSTABLE MOCK TEST 1 (HINDI) Start Test!
Advertisement
Assam Direct Recruitment Test Series