1. Modern economy is one of
(a) Open economy (b) Cash economy (c) Credit economy (d) Planned economy
2. Who wrote the book ‘Planned Economy for India’ ?
(a) M. Visvesvaraya(b) Sardar Vallabhbhai Patel (c) Jawaharlal Nehru (a) Mahatma Gandhi
3. India is more experiencing an annual rate of growth of prices which may be apply characterized as
(a) Suppressed inflation (b) Normal Inflation (c) Stagflation (d) Hyper Inflation
4. The Structural Adjustment Loan to Support Indian Economy’s leap into a more competitive and efficient environment has been secured from
(a) the World Bank (6) Bank of America (c) the Asian Development Bank (d) Intemational Monetary Fund
5. India has
(a) Socialistic economy (b) Gandhian economy (c) Mixed economy (d) Free economy
6. India opted for ‘Mixed Economy’ in
(a) Framing of the Constitution (b) Second Five Year Plan (d) industrial Policy of 1948 (d) None of these
7. In India, the Public Sector is most dominant in
(a) transport (b) steel production (c) commercial banking (d) Organised term-lending financial institutions
8. The decentralisation system was recommended by
(a) C. Rajagopalachari (6) J.B. Kripalani (c) Balwant Rai Mehta (d) Ashok Mehta
9. Which of the following organization has recently rated India as the sixth largest economy in the world?
(a) World Bank (b) Asian Development Bank (c) European Economic Community (d) International Monetary Fund
10. India’s wage policy is based on
(a) cost of living (b) standard of living (c) productivity (d) None of these
Answers – 1.a 2.a 3.d 4.a 5.c 6.c 7.c 8.c 9.d 10.a
11. The ‘Slack Season’ in the Indian Economy is
(a) Mar -Apr (b) Sep –Dec (c) Jan -June (d) Feb –Apr
12. India’s progress has been reasonably satisfectory in connection with
(a) growth of per capita income (b) reduction in inequalities (c) reduction of unemployment (d) growth of GNP
13. Which of the following provides the largest part of the demand for loaneable funds in India?
(a) Farmers (b) Private-house purchasers (c) Corporate businesses (d) Hire-purchase borrowers
14. The inflation experienced in the country at present is
(a) galloping inflation (6) secondary inflation (c) unrealistic inflation (d) cost-push inflation
15. India’s share in the World Tourist market is
(a) Less than 1% (6) Between 1% and 2% (c) More than 2% but less than 3% (d) Slightly more than 3%
16. Which of the following is the most important objective of Indian planning?
(a) Reducing price instability (b) Increasing capital formation (c) Reducing inequality of income and wealth (d) Increasing per capita income
17. One of the main factors that led to rapid expansion of Indian exports is
(a) liberalisation of the economy (b) diversification of exports (c) imposition of import duties (d) recession in other countries
18. The modem economy is not characterised by
(a) capital intensive’ mode of production (b) development of money economy (c) production for market (d) self -suficient village system.
19. Which of the following measures is not likely to help in improving India’s balance of payments position?
(a) Devaluation of the rupee (b) Encouragement of import substitution (c) Imposition of higher duty on imports (d) Imposition of higher duty on exports
20. In India which of the following measures of money denotes the “Broad Money” ?
(a) M1 (b) M2 (c) M3 (d) M4
Answers – 11.c 12.d 13.c 14.d 15.a 16.d 17.a 18.d 19.d 20.c
21. The main source of India’s national income is
(a) industry (b) Agriculture (c) Forestry (d) None of these
22. One of the problems in calculating the national income in India correctly
(a) under – employment (5) inflation (c) non -monetised consumption (d) low savings
23. National income is based on the
(a) total revenue of the State (b) production of goods and services (c) net profit eamed and expenditure made by the State (d) the sum of all factor incomes
24. If saving exceeds investment, the national income will
(a) fall (b) rise (c) fluctuate (d) remain constant
25. The maximum income level per month of a household to be called below the poverty line in India is
(a) Rs. 300 (b) Rs. 600 (c) Rs. $00 (d) Rs. 750
26. India’s first Greenfield Special Economic Zone (SEZ) was set up at
(a) Ahmedabad (b) Bangalore (c) Indore (d) Pune
27. The largest source of saving in India since 1950 has been?
(a) persons (5) companies (c) nationalised industries (d) All have contributed the same
28. India adopted the Five Year Plans from
(a) France (b) Former USSR (c) America (d) England
29. As per the Government estimates, approximately how many persons aye living below the poverty
line in rural areas (in millions) ?
(a) 130 (b) 140 (c) 150 (d) 190
30. National income of India is compiled by
(a) Finance Commission (b) Central Statistical Organization (c) National Development Council (d) Indian Statistical Institute
Answers – 21.d 22.c 23.d 24.d 25.d 26.c 27.a 28.d 29.d 30.b
31. Which state has the maximum number of people living below the poverty line ?
(a) Bihar (b) Madhya Pradesh (c) Maharashtra (d) Uttar Pradesh
32. Which of the following is not required while computing Gross National Product (GNP) ?
(a) Net foreign investment (b) Private investment (c) Per capita income of citizens (d) Purchase of goods by government
33. Among Indian Economists who had done pioneering work on National Income ?
(a) P.N. Dhar (b) Jagdish Bhagwaus (c) V.K.R V.Rao (d) Prof. Shenoi
34. The largest share of India’s national income originates in the
(a) Primary Sector (¢) Secondary Sector (c) Tertiary Sector (d) None of these
35. Which is the best measure of economic growth of a country ?
(a) GNP (b) GDP (c) Net revenue (d) None of these
36. The first estimate of national income in India Was made by
(a) Mahalanobis (b) V.K.R. V. Rao (c) Dadabhai Naoroj (d) Shirras
37. In the Keynes model above, which is independent?
(a) Consumption (b) National income (c) Investment (d) Both (a) & (c) above
38. The sum of the marginal propensity to consume and the marginal propensity to save must be equal to
(a) disposable income (6) one (c) the multiplier (d) zero .
39. Rate of growth of an economy is measured in terms of
(a) Per capita income (b) Industrial development (c) Number of people who have been lifted above the poverty (d) National income
40. Dr. V. K. R. V Rao used the .. . . method of calculation of national income in India.
(a) Income – method (b) Expenditure method (c) Production – method (d) Combined method
Answers – 31.a 32.c 33.c 34.a 35.a 36.c 37.b 38.b 39.d 40.d