96 Objective Questions(Economics)
1) What is the effect of deficit financing on economy?
Ans :- Inflation,
2) The term Halal Economy is related to the -
Ans :- Economy based on the lawful or permitted standard authority,
3) Animal spirit is associated with -
Ans :- Investment decisions,
4) The concept of Immiserizing growth was propounded by -
Ans :- Jagdish Bhagawati,
5) Equilibrium income is that level at which -
Ans :- The amount which society wishes to spend on investment is equal to the amount of its income which it does not wish to spend on consumption,
6) Who propounded the Market Law?
Ans :- J. B. Say,
7) The practice of selling goods in a foreign country at a price below their domestic selling price is called -
Ans :- Dumping,
8) Prime cost is equal to -
Ans :- Variable cost only,
9) Indian Rupee is fully convertible at -
Ans :- Current Account,
10) Disinvestment in Public Sector is called -
Ans :- Privatisation,
11) Brent index is associated with -
Ans :- crude oil prices,
12) Fiscal deficit in the Union Budget means -
Ans :- The sum of budgetary deficit and net increase in internal and external borrowings,
13) Who propounded the Innovation theory of profits?
Ans :- J.A.Schumpeter,
14) Funds not belonging to the Government are called -
Ans :- Private Accounts,
15) Bad loans in banking terminology are generally known as -
Ans :- NPA,
16) IMF is the result of -
Ans :- Brettonwood Conference,
17) The Difference between Gross Domestic product and Net Domestic product is -
Ans :- Net Capital Formation,
18) Depreciation is equal to -
Ans :- Gross national product - Net national product,
19) IEX and PXIL are -
Ans :- Two power exchanges working in India,
20) Zero Coupon Bonds are that variety of loans -
Ans :- which are issued at a discount and redeemed at par,
21) Ashok Leyland is owned by the -
Ans :- Hindujas,
22) Bottle neck inflation means -
Ans :- Rise in prices without increase in the aggregate demand,
23) Recession in the market implies -
Ans :- Slump in trade and industry due to fall in demand,
24) Varishtha Pension Bima Yojana has been launched by -
Ans :- LIC of India,
25) What is Value Added Tax -
Ans :- A simple, transparent, easy to pay tax imposed on consumers,
26) The difference between visible exports and visible imports is defined as —
Ans :- Balance of trade,
27) Invisible export means export of —
Ans :- Services,
28) Term Roll-Up used in USA is associated with -
Ans :- Mergers,
29) Plaza Accord of 1985 is best known for its primary role in shaping -
Ans :- Currency Market,
30) The food corporation of was established in the year -
Ans :- 1965,
31) The terms bull and bear are used in -
Ans :- Stock Exchange,
32) The concept of Micro Credit essentially concentrates on -
Ans :- provision of credit to the poor,
33) Demand of agricultural products is found to be -
Ans :- Elastic,
34) Economics is the Science of Wealth who gave this definition?
Ans :- Adam Smith,
35) The terms Micro Economics and Macro Economics were coined by -
Ans :- Ragner Frisch,
36) During periods of inflations, tax rates should -
Ans :- Increase,
37) The break-even point is where -
Ans :- total revenue equals total cost,
38) When there is an official change in the exchange rate of domestic currency, then it is called -
Ans :- Revaluation,
39) Inflation redistributes income and wealth in favour of -
Ans :- Rich,
40) Excise Duty is a tax levied on -
Ans :- Commodities that are produced and consumed within the country,
41) Who coined the term Hindu rate of growth for Indian economy?
Ans :- Raj Krishna,
42) Structural unemployment arises due to -
Ans :- Inadequate productive capacity,
43) Liquidity Preference Theory of Interest was propounded by -
Ans :- J.M. Keynes,
44) Explicit + Implicit Costs = -
Ans :- Economic Costs,
45) The expenses of the Government of India are the highest on account of subsidy on –
Ans :- Food,
46) Which institution is related to export financing and insurance?
Ans :- ECGC,
47) Who is the regulator of ULIPs?
Ans :- IRDA,
48) Under whose chairmanship was the committee on Insurance Sector reforms set up?
Ans :- R N Malhotra,
49) For regulation of the insurance trade in the country the Government has formed –
Ans :- IRDA,
50) IRDA is associated with –
Ans :- Insurance sectors,
51) Crop Insurance is the monopoly of –
Ans :- General Insurance Company,
52) Aam Admi Bima Yojana is an insurance scheme for rural landless households introduced by –
Ans :- LIC,
53) According to the recently passed Insurance Laws (Amendment) Bill 2015 , FDI in Insurance Sector is –
Ans :- 49%,
54) The Insurance Regulatory and Development Authority of India (IRDA) is an autonomous apex –
Ans :- Statutory Body,
55) The ‘NPS’ launched by the Government of India with effect from January 1, 2004 is a defined contribution –
Ans :- Pension System,
56) Which goods has only exchange value?
Ans :- Diamond,
57) Which schemes/programmes is launched to develop rural infrastrucrure in India?
Ans :- Bharat Nirman,
58) When the expenditure of the government exceeds the revenue, the difference of balance between the two is called –
Ans :- Budget deficit,
59) Agricultural income tax is a source of revenue to —
Ans :- State Government,
60) Five Year Planning commenced in the year –
Ans :- 1951,
61) The value of a commodity expressed in terms of money is known as?
Ans :- Price,
62) The Planning Commission of India was established in the year?
Ans :- 1950,
63) Green Revolution was started in?
Ans :- 1960,
64) The term of the Finance Commission is?
Ans :- Five years,
65) Under Gadgil-Mukerjee formula to whom is the higher weithage is given?
Ans :- Population,
66) When average cost of production falls, what must be marginal cost of production must?
Ans :- less than the average cost,
67) Which plan gave emphasis on removal of poverty of the first time?
Ans :- Fifth,
68) Which programme announced by the Prime Minister for the minorities in India?
Ans :- 15 Point Programme,
69) Food for Work Programme was introduced during which Five Year Plans?
Ans :- Fifth,
70) On which basis has the planning, commission defined Poverty line in rural areas in India?
Ans :- 2400 k cal,
71) The Decentralization System was recommended by –
Ans :- Balwant Rai Mehta ,
72) Mahalanobis Plan Model adopted in India in the mid-fifties aimed at –
Ans :- Setting up heavy industries which were capital intensive,
73) The controlling authority of government expenditure is –
Ans :- The Finance Ministry,
74) Effective Revenue Deficit was introduced in the Union Budget of –
Ans :- 2011-12,
75) Interest payment is an item of –
Ans :- Revenue expenditure,
76) Foreign currency which has a tendency of quick migration is called –
Ans :- Hot currency,
77) Ad hoc Treasury Bill System of meeting budget deficit in India was abolished on –
Ans :- 31st March, 1997,
78) In which years was the trade balance favourable to India?
Ans :- 1972-73 and 1976-77,
79) Service tax in India was introduced in the year –
Ans :- 1994-95,
80) National Rural Health Mission (NRHM) was launched in which year?
Ans :- 2005,
81) The National Rural Employment Scheme was launched throught out the country from which date?
Ans :- 1-4-2008,
82) Open Market Operations is a part of –
Ans :- Credit policy,
83) Year ending on March 31st immediately prior to assessment year is called –
Ans :- previous year,
84) If average cost is falling then –
Ans :- marginal cost is falling,
85) If an increase in the price of blue jeans leads to an increase in the demand for tennis shoes, then blue jeans and tennis shoes are –
Ans :- complements,
86) How will you measure development of people?
Ans :- HDI,
87) Depreciation means -
Ans :- loss of equipment over time due to wear and tear,
88) In India, inflation measured by the -
Ans :- Wholesale Price Index number,
89) Short-term finance is usually for a period ranging up to -
Ans :-12 months,
90) Paper currency first started in India in -
Ans :- 1861,
91) Which is the apex institution of housing finance in India?
Ans :- National Housing Bank,
92) The income tax in India is -
Ans :- direct and progressive,
93) Income that is saved and not invested is known as -
Ans :- hoarding,
94) Indias first Greenfield Special Economic Zone was set up at -
Ans :- Indore,
95) A currency whose exchange rate tends to fall because of persistent balance of payment deficit is known as -
Ans :- Soft Currency,
96) A regressive tax will tend to redistrubute income more -
Ans :- uneqally.