Sparking YOUTH: Strategy for Economic and Social Development

Economic and Social Development

The national income of a country for a given period is equal to the: (2013)

(a) total value of goods and services produced by the nationals

(b) sum of total consumption and investment expenditure

(d) money value of final goods and services produced

A “closed economy” is an economy in which (2011)

(a.) the money supply is fully controlled

(b.) deficit financing takes place 

(c.) only exports take place 

(d.) neither exports nor imports take place

Disguised unemployment generally means (2013)

(a) large number of people remain unemployed

(b) alternative employment is not available 

(d) productivity of workers is low

Economic growth in country X will necessarily have to occur if (2013)

(a) there is technical progress in the world economy

(b) there is population growth in X 

(d) the volume of trade grows in the world economy

Consider the following statements : (2013)

1. Inflation benefits the debtors. 

2. Inflation benefits the bond-holders.

Which of the statements given above is/are correct?

(a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2

A rise in general level of prices may be caused by: (2013)

1. an increase in the money supply

2. a decrease in the aggregate level of output 

3. an increase in the effective demand

Select the correct answer using the codes given below.

(a) 1 only (b) 1 and 2 only (c) 2 and 3 only (d) 1, 2 and 3

A rapid increase in the rate of inflation is sometimes attributed to the “base effect”. What is “base effect”? (2011)

(a.) It is the impact of drastic deficiency in supply due to failure of crops (b.) It is the impact of the surge in demand due to rapid economic growth 

(c.) It is the impact of the price levels of previous year on the calculation of inflation rate (d.) None of the statements (a), (b) and (c) ‘given above is correct in this context

If the interest rate is decreased in an economy, it will (2014)

A. decrease the consumption expenditure in the economy

B. increase the tax collection of the Government

C. increase the investment expenditure in the economy

D. increase the total savings in the economy

The Reserve Bank of India regulates the commercial banks in matters of (2013)

1. liquidity of assets 2. branch expansion 3. merger of banks 4. winding-up of banks

Select the correct answer using the codes given below.

(a) 1 and 4 only (b) 2, 3 and 4 only (c) 1, 2 and 3 only (d) 1, 2, 3 and 4

What is/are the facility/facilities the beneficiaries can get from the services of Business Correspondent (Bank Saathi) in branchless areas? (2014)

1. It enables the beneficiaries to draw their subsidies and social security benefits in their villages. 2. It enables the beneficiaries in the rural areas to make deposits and withdrawals.

Select the correct answer using the code given below.

A.1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2

With reference to Union Budget, which of the following, is/are covered under Non-Plan Expenditure? (2014)

1. Defense expenditure 2. Interest payments 3. Salaries and pensions 4. Subsidies

Select the correct answer using the code given below.

A.1 only B. 2 and 3 only C.1, 2, 3 and 4 D. None

In India, deficit financing is used for raising resources for (2013)

(a) economic development (b) redemption of public debt (c) adjusting the balance of payments (d) reducing the foreign debt

The sales tax you pay while purchasing a toothpaste is a (2014)

a. tax imposed by the Central Government.

b. tax imposed by the Central Government but collected by the State Government

c. tax imposed by the State Government but collected by the Central Government

d. tax imposed and collected by the State Government

Which one of the following is not a feature of “Value Added Tax”? (2011)

(a.) It is a multi-point destination-based system of taxation (b.) It is a tax levied on value addition at each stage of transaction in the production-distribution chain 

(c.) It is a tax on the final consumption of goods or services and must ultimately be borne by the consumer

(d.) It is basically a subject of the Central Government and the State Governments are only a facilitator for its successful implementation

The main objective of the 12th Five-Year Plan is (2014)

A. inclusive growth and poverty reductions 

B. inclusive and sustainable growth 

C. sustainable and inclusive growth to reduce unemployment

D. Faster, sustainable and more inclusive growth.

What does venture capital mean? (2014)

A. A short-term capital provided to industries 

B. A long-term start-up capital provided to new entrepreneurs

C. Funds provided to industries at times of incurring losses

D. Funds provided for replacement and renovation of industries

Which of the following would include Foreign Direct Investment in India? (2012)

1. Subsidiaries of companies in India 2. Majority foreign equity holding in Indian companies  3. Companies exclusively financed by foreign companies 4. Portfolio investment

Select the correct answer using the codes given below :

(a) 1, 2, 3 and 4 (b) 2 and 4 only (c) 1 and 3 only (d) 1, 2 and 3 only

Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs)? (2011)

1. The Government intends to use the revenue earned-from the disinvestment mainly to pay back the external debt. 2. The Government no longer intends to retain the management control of the CPSEs.

Which of the statements given above is/are correct?

(a.) I only (b.) 2 only (c.) Both 1 and 2 (d.) Neither 1 nor 2

With reference to Balance of Payments, which of the following constitutes/constitute the Current Account? (2014)

1. Balance of trade 2. Foreign assets 3. Balance of invisibles 4. Special Drawing Right

Select the correct answer using the code given below.

A. 1 only B. 2 and 3 C. 1 and 3 D.1,2 and 4

Which one of the following groups of items is included in India’s foreign-exchange reserves? (2013)

(a) Foreign-currency assets, Special Drawing Rights (SDRs) and loans from foreign countries (b) Foreign-currency assets, gold holdings of the RBI and SDRs 

(c) Foreign-currency assets, loans from the World Bank and SDRs (d) Foreign-currency assets, gold holdings of the RBI and loans from the World Bank

Which of the following constitute Capital Account? (2013)

1. Foreign Loans 2. Foreign Direct Investment 3. Private Remittances 4. Portfolio Investment

Select the correct answer using the codes given below.

(a) 1, 2 and 3 (b) 1, 2 and 4 (c) 2, 3 and 4 (d) 1, 3 and 4

Consider the following statements: The price of any currency in international market is decided by the (2012)

1. World Bank 2. demand for goods/services provided by the country concerned 3. stability of the government of the concerned country 4. economic potential of the country in question

Which of the statements given above are correct?

(a) 1, 2, 3 and 4 (b) 2 and 3 only (c) 3 and 4 only (d) 1 and 4 only

Which of the following organizations brings out the publication known as ‘World Economic Outlook’? (2014)

A. The International Monetary Fund 

B. The United Nations Development Programme

C. The World Economic Forum

D. The World Bank

In India, in the overall Index of Industrial Production, the Indices of Eight Core Industries have a combined weight of 37-90%. Which of the following are among those Eight Core Industries? (2012)

1. Cement 2. Fertilizers 3. Natural gas 4. Refinery products 5. Textiles 

Select the correct answer using the codes given below :

(a) 1 and 5 only (b) 2, 3 and 4 only (c) 1, 2, 3 and 4 only (d) 1, 2, 3, 4 and 5 

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