Economics PDF

THE RED EYE SERIES
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First printing, March 2019
Contents
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I Part One
1 Fun with Economics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
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P REFACE TO THE FIRST EDITION

The aim of this book is twofold: first for the students of competitive examination seeking
admission to PhD program or for lecturer job through examinations like NET and SET. Second, It
will also be helpful for those studying Economics or for UPSC aspirants.
The overwhelming response to the first edition of this book has inspired me to bring out this
second edition which is a thoroughly revised and updated version of the first.
Every effort has been made to make this book error-free. l welcome all constructive criticism of
the book. I will upload 7000 MCQ’s on Economics soon as online quiz. Keep visiting our website
https://www.gatecseit.in/.
Disclaimer
am
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eR
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I
Part One
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1 Fun with Economics . . . . . . . . . . . . . . . . . . . 9

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1. Fun with Economics
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1. Disinvestment in Public Sector is called C. Accrue to a firm when it expands its out-
A. Liberalization put
D. Arise when there is expansion in internal
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B. Globalization
trade
C. Industrialization 5. Out of the various sources of power, the gov-
D. Privatization ernment relies more on
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2. The Accounting Year of Reserve Bank of A. Atomic power

India runs from;
B. Thermal power
A. April to March
C. Wind power
B. July to June
D. Hydro Power
C. January to December
i
6. The Indian economy can be most appropri-

Ja
D. August to July ately described as a:

3. On the administered price of which of the A. Capitalist economy
following articles no subsidy is given?
B. Socialist economy
A. DAP
C. Traditional economy
B. ATF
D. Mixed economy
C. IPG 7. What is NABARD’s primary role?
D. Kerosene oil A. to provide term loans to state co-
4. Internal economies- operative banks
A. Arise when there is expansion in an in- B. to assist state governments for share cap-
dustry ital contribution
B. Arise in an economy as it makes progress C. to act as re-finance institution
D. All of the above
10 Chapter 1. Fun with Economics
8. The pocess of curing inflation by reducing A. FEPA

money supply is called
B. FEMA
A. Cost-push inflation
C. FENA
B. Demand-pull inflation
D. FETA
C. Disinflation
14. Which one of the following is NOT with
D. Reflation in the duties of the Planning Commission?
9. What is a fiscal deficit? [Punjab & [NDA 2003]
er
Sindh Bank 2011]
A. To make an assessment of the material,
A. It is a gap between exports and imports capital and human resources of the country
minus external borrowings
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B. To define the stage of growth and suggest
B. It is a gap between the values of the ex- allocation of resources
ports and imports
C. To determine the nature of machinery re-
C. It is a gap between total expenditure and quired for implementation of plan proposals
total receipts of the Govt.
an
D. It is a gap between total receipts minus D. To prepare the annual central budget
External Borrowing
15. What is the period of Tenth Five Year Plan?
10. Which one of the following is not a member
Ch
of Organization of the Petroleum Exporting A. 2003-04 to 2007-08
Countries (OPEC)? [Asstt Comm 2008]
B. 2002-03 to 2006-07
A. Brazil
C. 2004-05 to 2008-09
B. Algeria
D. 2001-02 to 2004-05
C. Ecuador
n
16. All taxes come under:

D. Nigeria
A. revenue receipts
ya
11. Production function expresses

A. Technological relationship between B. capital receipts
physical inputs and output C. public debt
B. Financial relationship between physical
a
D. both a. and b.
inputs and output
17. If an industry is characterized by economies
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C. Relationship between finance and tech- of scale then

nology
A. Barriers to entry are not very large
D. Relationship between factors of produc-
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tion B. Long run unit costs of production de-

creases as the quantity the firm produce in-
12. Who estimated the National Income for the
creases
first time in India?
A. Mahalanobis C. Capital requirement are small due to the
efficiency of the large scale operation
B. Dadabhai Naoroji
D. The costs of entry into the market are
C. V.K.R.V. Rao likely to be substantial
D. Sardar Patel 18. Which one among the following statements
13. FERA in India has been replaced by is correct? [CDS 2012]
11
A. Due to border problems, India’s trade C. 1980

with China did not register a quantum jump D. 1982
between the years 2001·2010
23. What has been the order of India’s imports
B. The stand-off between India and China during the last three years?
on Pakistan and Arunachal Pradesh did not A. US $30 billion
let India’s trade to grow with China in the
years 2001-2010 as much as it grew in the B. US $40 billion
years 1991-2001 C. US $50 billion
C. While India-China trade has registered D. US $60 billion
a quantum jump between the years 2001- 24. Which Indian company secured the highest
2010, both the countries have ensured parity export revenue from IT software and ser-
of trade vices during the past two years?
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D. In spite of border problems, India’s trade A. TCS
with China registered a quantum jump dur-
B. Infosys Technologies Ltd
ing the years 2001-2010
C. Wipro Technologies Ltd
19. The situation with increasing unemployment
and inflation is termed as: [CPO AC 2003] D. Satyam Computer Services Ltd
A. hyperinflation
B. galloping inflation
eR 25. Which of the following state is in the second
place in the production of Iron Ore?
A. Jarkhand
C. stagflation B. Madhya Pradesh
D. reflation C. Goa
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20. Which one of the following is not a quan- D. Karnataka
titative credit control measure of a Central
26. Bokaro Steel Limited was established with
Bank?
the assistance of: [Asstt Comm 2008]
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A. Bank Rate Policy A. Soviet Union

B. Open Market Operations B. Germany
C. Cash Reserve Ratio C. UK
D. Moral Suasion D. USA
21. When a large number of investors in a 27. Which of the following state is the leading
i
country transfer investments elsewhere be- producer of Rock Phosphate?

Ja
cause of disturbed economic conditions, it A. Karnataka

is called
B. Madhya Pradesh
A. Transfer of Capital
C. Rajasthan
B. Escape of Capital
D. Goa
C. Outflow of Capital 28. Narasimhan Committee was appointed on
D. Flight of Capital A. Industrial reforms
22. In which year, some more commercial banks B. Agricultural reforms
(in addition to the first lot of 14) were na-
C. Insurance reforms
tionalised in India?
D. Banking reforms
A. 1976
29. Which of the following sectors does not
B. 1979 come under tertiary sector?
A. Trade A. Value-added method

B. Transport B. Income method
C. Business Services C. Expenditure method
D. Electricity D. Export-import method
30. The supply of labour in the economy de- 36. Grants or advances made by the House to
pends on enable the government to carry on until the
A. Population voting of the demands for grants and passing
of the General Appropriation Bill is called:
er
B. National income
A. complementary budget
C. Per capita income
B. vote on account
D. Natural resources
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C. supplementary budget
31. Who was the head of the 10th Finance Com-
mission? D. contingency budget
A. Manmohan Singh 37. Sector-wise, maximum employment in the
an
public sector is in:
B. Vasant Sathe
A. electricity, gas and water
C. Shiv Shankar
B. community, social and personal services
D. K. C. Pant
Ch
32. Lead Bank system was started on the recom-
mendations of C. finance, insurance and real estate
A. Kelkar Committee D. transport, storage and communication
B. Raja Challaia Committee 38. Which of the following state is the leading
producer of Sand(Others)?
C. Nariman Committee
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A. Karnataka
D. Malhotra Committee
B. Andhra Pradesh
33. Who among the following got Nobel Prize
ya
for Economics? C. Tamil Nadu

A. C.V.Raman D. Kerala
B. Mother Teressa 39. Which of the following state is the leading
a
producer of Gypsum?
C. Amarthya Sen
A. Karnataka
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D. Manmohan Sing
34. After 1991, the Central Government imple- B. Bihar
mented various far-reaching reforms in the C. Rajasthan
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area of taxation. This was based on the rec-

D. Goa
ommendations of the: [CDS 1999]
40. The aim of Intensive Agriculture Area Pro-
A. Wanchoo Committee
gramme is
B. Rajah Chelliah Committee
A. to eradicate poverty
C. Raj Committee
B. to provide employment guarantee
D. Narsimhan Committee
C. to raise the standards of living
35. Which of the following is not a method of
estimating national income? [I. Tax & D. to develop the special harvests
Central Excise 1991] 41. The earlier name of the WTO was:
13
A. UNIDO A. J.M. Keynes

B. UNCTAD B. David Ricardo
C. OECD C. Alfred Marshall
D. GATT D. Adam Smith

48. A country is said to be in a debt trap if: [IAS
42. Plant and machinery are
2002]
A. Producers’ goods
A. it has to abide by the conditionalities im-
B. Consumers’ goods posed by the International Monetary Fund
C. Distributors’ goods
B. it has to borrow to make interest pay-
D. Free goods
ments on outstanding loans
43. The present Indian monetary system is based
am
C. it has been refused loans or aid by credi-
on
tors abroad
A. Gold Reserve System
D. the World Bank charges a very high rate
B. Proportional Reserve System of interest on outstanding as well as new
loans
C. Convertible Currency System eR 49. Labour Intensive Technique would get cho-
D. Minimum Reserve System sen in a
44. The first meeting of NITI Aayog was A. Labour Surplus Economy
chaired by
B. Capital Surplus Economy
A. Narendra Modi
C. Developed Economy
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B. Manmohan Singh
D. Developing Economy
C. Sonia Gandhi 50. Product differentiation is the most important
feature of
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D. Arun Jaitley
45. Which one of the following categories of A. Pure competition
workers is termed as cultivators? B. Monopolistic competition
A. Those who own land and cultivate C. Monopoly
B. Those who lease in land and cultivate D. Oligopoly
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C. Those who cultivate the land of others 51. Full employment is a situation where
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A. There is no involuntary unemployment

D. Those who own land and lease in from
others or institutions and cultivate B. There is involuntary unemployment
46. Who defined investment as "the construc- C. There is no voluntary unemployment
tion of a new capital asset like machinery or D. There is voluntary unemployment
factory building"?
52. Monetary policy is regulated by:
A. Hansen
A. Central Bank
B. J.M. Keynes B. money lenders
C. Harrod C. private entrepreneurs
D. J.R. Hicks D. Government policy
47. The Liquidity Preference Theory of Interest 53. The outlines of second five year plan was
was pro pounded by made by—
A. Fazal Ali 59. Menu costs in relation to inflation refer to:

B. Charan sing A. Costs of finding better rates of return
C. P. C. Mahalanobis B. Costs of money increasing its value
D. Kunjru C. Costs of altering price lists
54. The monetary policy of India is formulated D. Costs of revaluing the currency
by 60. A commercial bank law creates credit only
A. Central Government if it has .
er
B. Industrial Financial Corporation of India A. Cash in the vault
B. Excess reserves
C. Reserve Bank of India C. Permission of Reserve Bank of India
gd
D. Industrial Development Bank of India D. Cooperation of other banks
55. In India GDP is higher than GNP because 61. Division of labour is limited by
country’s:
A. The number of workers
A. capital inflow > capital outflow
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B. Hours of work
B. import > export
C. Extent of the market
C. net factor income is negative D. Working space
D. Govt. expenditure is more than it’s in- 62. Who wrote the book "Why Socialism"?
Ch
come
A. Mahatma Gandhi
56. Among the following who are eligible to
benefit from the "Mahatma Gandhi National B. Acharya Narendra Dev
Rural Employment Guarantee Act"? [CSAT C. M.N. Roy
2011]
D. Jayaprakash Narayan
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A. Adult members of below poverty line 63. Rate of interest is determined by

(BPL) households
A. The rate of return on the capital invested
ya
B. Adult members of only the scheduled

Caste and scheduled tribe households
B. Central Government
C. Adult members of households of all
C. Liquidity preference
backward communities
a
D. Commercial Banks
D. Adult members of any household
64. The Minimum Wages Act was first passed
ar
57. How will a reduction in ’Bank Rate’ affect

in India in the year:
the availability of credit?
A. 1947
A. Credit will increase
B. 1948
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B. Credit will not increase

C. 1950
C. Credit will decrease
D. 1951
D. None of these
65. Which one of the following is not a method
58. Talcher Coal mine is located in the state of of estimating National Income?
A. Orissa A. Expenditure method
B. Madhya Pradesh B. Product method
C. Andhra Pradesh C. Matrix method
D. West Bengal D. Income method
15
66. What does a Leasing Company provide? 72. The measure of a worker’s real wage is
A. Machinery and capital equipment on hire A. The change in his productivity over a
given time
B. Legal guidance in establishing an enter- B. His earnings alter deduction at source
prise C. His daily earnings
C. Office accommodation on hire D. The purchasing power of his earnings
D. Technical consultancy and experts for a 73. The main aim of Eleventh Five Year Plan
fee was
67. Which Committee’s recommendations are A. Inclusive Growth in all sectors
being followed for estimating Poverty Line B. Eradication of Poverty
in India?
C. Eradication of regional imbalances
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A. Chelliah Committee
D. Food, Work and Productivity
B. Dutt Committee
74. The economist who believed that unemploy-
C. Chakravorty Committee ment is impossible and that market mecha-
nism has a built in regulatory system to meet
D. Lakdawala Committee
any ups and downs
68. Tire supply of agricultural products is gen-
erally
A. Elastic
eR A. J. M. Keynes
B. Ohlin
B. Inelastic C. J. B. Say
D. Galbraith
C. Perfectly elastic
re
75. In the second nationalization of commercial
D. Perfectly inelastic banks, ..... banks were nationalized.
69. A firm is in equilibrium when its A. 5
Sh
A. Marginal cost equals the marginal rev- B. 4

enue
C. 6
B. Total cost is minimum
D. 8
C. Total revenue is maximum 76. Who coined the term ’Hindu rate of growth’
D. Average revenue and marginal revenue for Indian economy?
i
are equal A. A.K. Sen

Ja
70. Gross National Product- Depreciation Al-

B. Kirit S. Parikh
lowance =?
C. Raj Krishna
A. Per Capita Income
D. Montek Singh Ahluwalia
B. Gross Domestic Product
77. What is the maximum amount of investment
C. Personal Income in the shares of debentures of notified com-
D. Net National Product panies like the ICICI, the 1DB1 etc. that
will entitle a rebate in income tax up to
71. Prime cost is equal to 20%oftheamount invested?
A. Variable cost plus administrative cost A. Rs- 80000
B. Variable cost plus fixed costs B. Rs. 60000
C. Variable cost only C. Rs. 20000
D. Fixed cost only D. Rs. 10000
78. Among the structural changes which of the 83. For regulation of the Insurance Trade in the
following is not wholly welcome? country the Government has formed: [UP
PCS 2002]
A. Relative contribution of agriculture to
our GNP is declining A. Reserve Bank of India
B. Increase in the share of construction in B. SEBI
the GNP C. Insurance Regulatory and Development
C. Marked improvement in the contribution Authority
of manufacturing to the GNP D. General Insurance Corporation
er
D. Substantial increase in the percentage 84. National product at market prices is higher
contribution of public administration and de- than the national product at factor cost by
fence to GDP the amount of
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79. The primary objective of Unit Trust of India A. Indirect taxes
is: B. Subsidies
A. to assist the industries in financial diffi- C. Indirect taxes - Subsidies
an
culties D. Indirect taxes + Subsidies
B. to diffuse the benefit of development 85. Which of the following groups suffer the
among the masses most from inflation? [CPO SI 2003]
A. Debtors
Ch
C. to accumulate funds for public invest-
ment expenditure B. Creditors
D. to promote the investment habit among C. Business class
those who have not been able to diversify
D. Holders of real assets
investment risk
86. Which amidst the following rural banks has
80. Word Bull and Big are associated with been named after a river?
n
which branch of commercial activity? [UP

PCS 2002] A. Prathama Bank
ya
B. Varada Grameen Bank

A. Banking
C. Thar Anchalik Grameen Bank
B. Foreign Trade
D. Aravali Kshetriya Grameen Banks
C. Share Market
a
87. Production function relates

D. Manufacturing A. Cost to output
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81. India exports power to ..... B. Cost to input

A. Bangladesh C. Wages to profit
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B. Myanmar D. Inputs to output

C. Pakistan 88. The best way, a bank can avoid loss is to:
D. Bhutan A. Lend only to individuals known to the

bank
82. Parallel economy emerges due to
B. Accept sound collateral
A. Tax Avoidance
C. Give only short-term loans
B. Tax Evasion D. Lend only to bank’s old customers
C. Tax Compliance 89. Scheduled Banks means the banks which
comes under the
D. Tax Estimation
17
A. Schedule I of the RBI Act 1934 95. The main function of the Exim Bank is:
B. Schedule II of the RBI Act 1934 A. to prevent unlicensed transaction
C. Schedule III of the RBI Act 1934 B. to help RBI in the regulation of foreign
exchange
D. Schedule IV of the RBI Act 1934
90. Gross National Product means C. to promote exports and curtail imports
D. to conserve foreign exchange
A. gross value of finished goods
96. India’s biggest nationalized enterprise today
B. money values of the total national pro-
duction for any given period A. the Indian Railways
C. gross value of raw materials and semi- B. the Indian Commercial Banking System
finished products C. the Indian Power Sector
am
D. money value of inputs and outputs D. the Indian Tele communication System
91. Amongst the currency quotes USD/JPY, 97. Poverty in less developed countries is largely
USD/Euro and USD/CAD, which one of the due to [CPO SI 2010]
following is referred as the base currency for A. income inequality
quotes? [Punjab & Sindh Bank 2011]
eR B. voluntary idleness
A. US $
C. lack of cultural activities
B. JPY
D. lack of intelligence of the people
C. Euro
98. Operating Surplus arises in the
D. CAD
A. Government Sector
92. Indian Railways revenue from:
re
B. Production for self-consumption
A. passenger fare
C. Subsistence farming
B. freight
D. Enterprise Sector
Sh
C. traffic tax 99. In a Laissez-faire economy

D. passenger tax A. the customers take all the decisions re-
93. Which of the following costs is related to garding production of all the commodities
marginal cost?
B. the Government does not interfere in
i
A. Variable Cost
the free functioning of demand and supply
Ja
B. Implicit Cost
forces in the market
C. Prime Cost
C. the private-sector takes all the decisions
D. Fixed Cost for price-determination of various commodi-
94. A firm sells new shares worth Rs. 1000 di- ties produced
rectly to individuals. This transaction will D. the Government controls the allocation
cause. of all the factors of production
A. Gross National product to rise by Rs. 100. The largest importer country of Indian tex-
1000 tile is:
B. Gross Domestic Product to rise by Rs. A. Germany
1000 B. Italy
C. National Income to rise by Rs. 1000 C. Singapore
D. No impact on Gross National Product D. USA
101. A mixed economy works primarily through 106. The theory of monopolistic competition
the has been formulated in the United States of
America by
A. Market mechanism
A. Joan Robinson
B. Central allocative machinery
B. Edward Chamberlin
C. Market mechanism regulated by Govern-
ment policy C. John Bates Clark
D. Market mechanism guided by Govern- D. Joseph Schumpeter
ment participation and planning
er
107. ’Personal Income’ equals
102. Who is authorized to issue coins in India? A. The household sector’s income
A. Reserve Bank of India B. Private income minus savings of the cor-
gd
B. Ministry of Finance porate sector minus corporation tax
C. State Bank of India C. Personal disposable income plus miscel-
laneous receipts of the Government
D. Indian Overseas Bank
D. All of the above
an
103. The difference between a bank and a non-
banking financial institution (NBFI) is that: 108. Economic growth is dependent mainly on
[IAS 1994] A. level of consumption
A. a bank interacts directly with customers B. price stability
Ch
while an NBFI interacts with banks and gov-
C. level of investment
ernments
D. population growth
B. a bank indulges in a number of activities
109. Which of the following state is the leading
relating to finance with a range of customers,
producer of Chromite?
while an NBFI is, mainly concerned with the
term loan needs of large enterprises A. Haryana
n
C. a bank deals with both internal and inter- B. Madhya Pradesh

national customers while an NBFI is mainly C. Odisha
ya
concerned with the finances of foreign com-

panies D. Kerala
110. Increase in Oil Pool Deficit implies:
D. a bank’s main interest is to help in busi-
ness transactions and saving/investment ac- A. domestic oil price is comparatively more
a
tivities while an NBFl’s main interest is in than international price

the stabilisation of the currency
ar
B. increasing gap between international and

104. The first Bank established in India was domestic oil prices
A. Punjab National Bank C. government’s Fiscal Deficit goes up
N
B. Traders Bank D. none of these

C. State Bank of India 111. The recommendations of the Finance Com-
mission are:
D. Bank of Hindustan
A. binding on the government
105. M 3 includes:
B. not binding on the government
A. M 1 + post office saving deposit
C. generally accepted as a matter of conven-
B. M 1 + T.D
tion
C. M 1 +- post office total deposit
D. accepted or rejected by the government
D. M 1 + national saving certificate according to its convenience
19
112. Which of the following is the Banker of 118. Price theory is also known as
the Banks? [Railways 1995]
A. Macro Economics
A. SBI
B. Development Economics
B. IDBI
C. Public Economics
C. RBI
D. Micro Economics
D. SBI and RBI
119. Basic infrastructure facilities in Economics
113. Economic survey is published by:[IAS are known as:
1998]
A. Human capital
A. Ministry of Finance
B. Physical capital
B. Planning Commission
C. Social overheads capital
C. Govt. of India
am
D. Working capital
D. Indian Statistical Institute
120. During which Five-Year Plan did India lay
114. Broad money in India is:
down the objective of the need to ensure
A. M 1 environmental sustainability of the develop-
B. M 2 ment strategy?
C. M 3
D. M 4
eR A. 6th Five Year Plan
B. 7th Five Year Plan
115. The self-employed in a developing coun- C. 8th Five Year Plan
try who are engaged in small scale labour
D. 9th Five Year Plan
intensive work belong to the
re
121. "Bad money will drive out good money
A. Informal sector
from circulation. "This is known as:
B. Primary sector
A. Engle’s Law
Sh
C. Secondary sector
B. Gresham’s Law
D. Tertiary sector
C. Say’ Law
116. Deficit financing leads to inflation in gen-
eral, but it can be checked if D. Wagner’s Law
A. only aggregate demand is increased 122. If the tax rate increases with the higher
i
level of income, it shall be called

B. government expenditure leads to in-
Ja
crease in the aggregate supply in ratio of A. Proportional tax

aggregate demand B. Progressive tax
C. all the expenditure is denoted national C. Lump sum tax
debt payment only
D. Regressive tax
D. All of the above
123. Which unit of valuation is known as "Paper
117. Countries that depend mainly on the ex- gold"?
port of primary products for their income,
are prone to A. Eurodollar
A. inflation B. Petrodollar
B. economic instability C. SDR
C. increasing unemployment D. GDR
D. stable economic growth 124. Jilani Committee was appointed on
A. Distribution of Plan Assistance among 130. Goiporia committee was appointed on

States
A. Povetry Estimation
B. Capital Account Convertibility of rupee
B. Insurance sector Reforms
C. Sugar industry
C. Agricultural Holding Tax
D. Lone System
D. Customer Service
125. Arbitrage implies:
131. Bottom of Form, Top of Form Bill Market
A. practice of taking advantage of rice dif-
system was introduced in
ference in two markets
er
B. the practice of under invoicing exports A. 1950
C. the practice of dumping viz., selling B. 1951
gd
goods in a foreign market cheaper than the C. 1952
home market
D. 1953
D. the practice of over-invoicing imports
132. Six Commercial banks were nationalized
126. Which organisation promotes the foreign
by the Government on
an
trade? [UP PCS 2011]
A. May 10, 1981
A. MMTC
B. ECGC B. April 15, 1980
C. July 21, 1982
Ch
C. STC
D. All of these D. May 13, 1984
127. The basic feature of the Rolling Plans was 133. Depreciation is equal to-
that:
A. Gross national product -Net national
A. no physical targets were visualized product
n
B. revision of the achievements, of previous B. Net national product -Gross national

year product
ya
C. annual fluctuations in prices and major C. Gross national product -Personal income
economic developments could be consid-
ered while fixing targets
D. Personal income- Personal taxes
D. no financial target except in the term of
a
annual plans was envisaged 134. As per the reports published- in various
128. Law of Exclusive Economic Zone is re- journals and newspapers the ’small borrow-
ar
lated to ers’ in rural areas still prefer to take informal

route for their credit needs. Which of the
A. Dairying following is the ’informal route’ of credit
B. Agriculture in financial sector? [Punjab & Sindh
N
Bank 2011]
C. Industry
D. Fishing A. Credit cards
129. Which of the following state is in the sec- B. Loan against gold from financial insti-
ond place in the production of Lime Stone? tute
A. Karnataka C. Debit cards
B. Goa D. Money lender
C. West Bengal 135. The official agency responsible for estimat-
D. Rajasthan ing National Income in India is
21
A. Indian Statistical Institute A. taxation only

B. Reserve Bank of India B. taxation and public borrowing
C. Central Statistical Organization C. public borrowing and deficit financing
D. National Council for Applied Eco- D. taxation, public borrowing and deficit
nomics and Research financing
136. The period of 12th Five Year Plan is 142. "Dear Money" means
A. 2007-12 A. low rate of interest
B. 2012–17 B. high rate of interest

C. depression
C. 2004-11
D. inflation
D. 2005-10
143. The difference between the GNP and the
am
137. Rangrajan committee was appointed on NNP is equal to the
A. Public Sector Disinvestment A. Consumer expenditure on durable goods
B. Customer Service
C. Lone System B. Direct tax revenue
D. Bank Frauds
138. If people’s income of a country is denoted
eR C. Indirect tax revenue
D. Capital depreciation
in a curved line space that it has increased, 144. Production function explains the relation-
then what does it denote? ship between
A. The income is increasing A. Initial inputs and ultimate output
re
B. The income is decreasing B. Inputs and ultimate consumption
C. Dissimilarity is decreasing in income dis- C. Output and consumption
tribution D. Output and exports
Sh
D. Dissimilarity in income distribution is 145. Which of the following is not a fixed cost?
increasing A. Salaries of administrative staff
139. Knowledge, technical skill, education etc. B. Rent of factory bidding
in economics, are regarded as
C. Property taxes
A. social-overhead capital
i
D. Electricity charges
B. Human capital
Ja
146. AGMARK is a guarantee of standard:

C. Tangible physical capital A. quality
D. Working capital B. quantity
140. Reserve Bank of India (RBI) follows the C. weight
Minimum Reserves System in issuing cur-
rency since D. size
147. The main objective of First Five-year Plan
A. 1950
was:
B. 1952
A. economic growth
C. 1954 B. industrial growth
D. 1956 C. development of agriculture including ir-
141. For internal financing of Five Year Plans, rigation and power projects
the government depends on: [NDA 1991]
D. self-reliance
148. After the initiation of economic reforms 153. What is needed for creating demand?
in 1991-92 the percentage share of: [CDS
A. Production
1999]
B. Price
A. Both direct and indirect taxes increased
in gross tax revenue C. Income
B. direct taxes increased and that of indirect D. Import
taxes decreased in gross tax revenue 154. Currency notes of Rs 2 denomination and
C. both direct and indirect taxes decreased above are liabilities of:
er
in gross tax revenue A. Government of India
D. direct taxes decreased and that of indi- B. Reserve Bank of India
rect taxes increased in gross tax revenue
gd
149. Industrial Financial Corporation of India C. State Bank of India
was established in D. All of the above
A. 1948 155. Gosh committee was appointed on
an
B. 1950 A. Lone System
C. 1951 B. Bank Frauds
D. 1952 C. Insurance sector Reforms
Ch
150. Forced Savings refer to D. Customer Service
A. Reduction of consumption consequent 156. The situation in which total Revenues
to a rise in prices equals total cost, is known as:
B. Taxes on individual income and wealth A. Monopolistic competition
C. Compulsory deposits imposed on in- B. Equilibrium level of output
come tax payers
n
C. Breakeven point
D. Provident fund contribution of private
D. Perfect competition
ya
sector employees
151. Which one of the following would not con- 157. Under full cost pricing, price is determined
stitute an economic activity? A. by adding a margin to the average cost
A. A teacher teaching students in his class B. by comparing marginal cost and
a
B. A teacher teaching students Under Sarva marginal revenue

ar
Shiksha Abhiyan C. by adding normal profit to the marginal

C. A teacher teaching his own daughter at cost
home
D. by the total cost of production
N
D. A teacher providing consultancy ser- 158. A tree like structure of records in a

vices from his residence database in -
152. Mukherjee and Gadgil committee was ap-
A. Network model
pointed on
B. Hierarchical model
A. Agricultural Holding Tax
B. Distribution of Plan Assistance among C. Relational model
States D. Multi-dimensional model
C. Lone System 159. In which Plan was the growth rate target
exceeded?
D. National Income
23
A. Fifth 165. Which of the following is not the source of

the revenue of central Government?
B. First
A. Income Tax
C. Sixth
B. Corporate Tax
D. None of these
C. Agricultural Income Tax
160. Equilibrium price in the market is deter-
mined by the D. Excise Duty
166. Securities and Exchange Board of India
A. Equality between marginal cost and av-
got statutory recognition in
erage cost
A. 1991
B. Equality between total cost and total rev-
enue B. 1990
C. 1992
am
C. Equality between average cost and aver-
age revenue D. 1993
D. Equality between marginal cost and 167. What is known as the open market opera-
marginal revenue tion of the RBI?
161. Net National Product in National Income A. Buying and selling of stocks
Accounting refers to
A. Gross Domestic Product Depreciation
eR B. Auctioning of foreign exchange
C. Trading in securities
B. Gross Domestic Product + Subsidies D. Transactions in gold
C. Gross National Product Depreciation 168. The Narasimham Committee (1991) on fi-
nancial reforms proposed for establishment
re
D. Gross National Product + Subsidies
of a
162. India’s economic planning CANNOT be
A. Four tier hierarchy of the Banking struc-
said to be: [NDA 2002]
ture
Sh
A. imperative B. Three tier hierarchy of the Banking struc-

B. indicative ture
C. limited C. Two tier hierarchy of the Banking struc-
ture
D. democratic
D. Unified control by the apex institutions
i
163. The basic regulatory authority for mutual

169. Identify the Navratna Company in the fol-
Ja
funds and stock markets lies with the

lowing
A. Government of India
A. ICICI Bank
B. Reserve Bank of India
B. Infosys
C. SEBI C. HPCL Ltd
D. Stock Exchange D. Air India
164. The ’Canons of Taxation’ were pro- 170. Koraput Bauxite mine is located in the state
pounded by of
A. Edwin Canon A. Orissa
B. Adam Smith B. Andhra Pradesh
C. J.M. Keynes C. West Bengal
D. Dalton D. Gujarat
171. Which of the following most closely ap- 177. Kalol Oil mine is located in the state of
proximates our definition of oligopoly?
A. Assam
A. The cigarette industry
B. Gujarat
B. The barber shops
C. Orissa
C. The gasoline stations
D. Madhya Pradesh
D. Wheat farmers
178. What was the objective of Command Area
172. Gross National Product is the money mea-
Development Programme?
sure of
er
A. all tangible goods produced in a country A. To ensure that land is given to the tillers
B. To ensure better utilization of irrigation
potential
gd
B. final goods and services produced in the
economy C. To develop the areas under the command
C. services generated annually In the econ- of Army
omy D. Poverty alleviation in selected areas
an
D. all tangible goods available in the econ- 179. In India, Special Economic Zones were es-
omy tablished to enhance:
173. Indian agriculture is typically character-
ized as A. Free trade
Ch
A. Land surplus, labour scarce economy B. Foreign Investment
B. Land surplus, labour surplus economy C. Employment

C. Land scarce, labour surplus economy D. Technology Development
D. Land scarce, labour scarce economy 180. Consumer Protection Act was enacted in
174. How many countries in-Africa are mem- A. 1989
n
bers of the Organization of Petroleum Ex-

porting Countries (OPEC)? B. 1984
ya
A. Thirteen C. 1986
B. One D. 1988
C. Two 181. The objective of self-reliance and zero net
a
foreign aid was declared in:

D. Three
175. A country’s balance of trade is unfavorable A. Second 5-Yr Plan
ar
when- B. Third 5-Yr Plan

A. Exports exceed imports C. Fourth 5-Yr Plan
N
B. Imports exceed exports D. Fifth 5-Yr Plan

C. Terms of trade become unfavorable 182. Deficit financing is spending:
D. None of these
A. less than what is needed
176. Who is the chairman of Planning Commis-
sion? B. by getting foreign aid
A. President C. in excess of revenue
B. Prime Minister D. by borrowing from abroad
C. Home Minister 183. Which among the following formulates fis-
cal policy?
D. Finance Minister
25
A. RBI A. Commercial bills

B. Finance Ministry B. Foreign exchange
C. SEBI C. Gold
D. Planning Commission D. Government bonds
184. Private Sector Mutual Funds in India were 190. ’Mixed economy’ refers to
permitted in [UP PCS 2011] A. The co-existence of heavy, small scale
A. 1964 and cottage industries
B. 1993 B. The promotion of agriculture As well as

cottage industries
C. 1994
C. The co-existence of rich as well as poor
D. 2001
D. The co-existence of public as well as
am
185. The largest Public Sector Bank in India is: private sector
[CDS 1991]
191. RBI does not transact the business of which
A. Central Bank of the following state governments?
B. State Bank of India A. Nagaland
C. Punjab National Bank
186. The Reserve Bank of India issues:
eR B. Assam
C. J & K
D. Rajasthan
A. all the currency notes 192. Who among the following Indian
Economists has done pioneering work on
B. all the currency notes except the one ru- National Income?
re
pee note
A. Jagdish Bhagwati
C. all the currency notes except the hundred
rupee note B. M.L. Seth
Sh
D. only notes of Rs. 10 and above C. Amartya Sen

187. Which of the following Mahatma Gandhi D. V.K.R.V. Rao
series of currency notes issued by the RBI 193. Rakesh Mohan committee was appointed
has a drawing of the ’Parliament House’ de- on
picted on it? [SSC Graduate 2003] A. Employment Opportunities and Fical
i
A. Rs. 500 Transparency

Ja
B. Rs. 100 B. Private investment in basic infrastructure

C. Rs. 50
C. Sugar industry
D. Rs. 10
D. Insurance sector Reforms
188. The demand for money, according to
Keynes, is for 194. Special Drawing Rights (SOR) facility is
available at: [SSC Graduate 2003]
A. Speculative motive
A. International Monetary Fund (IMF)
B. Transaction motive
B. World Bank (IBRD)
C. Precautionary motive
C. International Development Association
D. All the above motives (lDA)
189. Open market operations of RBI refer to D. Organisation of Economic Cooperation
buying and selling of and Development (OECD)
195. The tax whose share in overall taxation 201. Bank Rate refers to the Interest rate at
revenue has gone up rapidly during the plan- which
ning period is:
A. Commercial banks receive deposits from
A. wealth tax the public
B. income tax B. Central bank gives loans to Commercial
C. capital gains tax banks
D. tax on production C. Government loans are floated
196. Average Revenue means
er
D. Commercial banks grant loans to their
A. the revenue per unit of commodity sold customers
B. the revenue from all commodities sold 202. The abbreviation ’SEBI’ stands for
gd
C. the profit realized from the marginal unit A. Savings and Exchange Bank of India
sold
B. Securities and Exchange Bank of India
D. the profit realized by sale of all com-
C. Survey of essential business in India
modities
an
197. Ankleshwar Oil mine is located in the state D. Securities and Exchange Board of India
of
A. Orissa 203. Which one of the following is a develop-
mental expenditure?
Ch
B. Karnataka
A. irrigation expenditure
C. Gujarat
D. Tamil Nadu B. Civil administration
198. Rate of growth of an economy is measured C. Debt services
in terms of:
D. Grant-in-aid
A. per capita income
n
204. Which of the following is not Included in

B. industrial development the National Income?
ya
C. number of people who have been lifted A. Imputed rent of owner-occupied houses
above the poverty line
B. Government expenditure on making new
D. national income bridges
199. A tax that takes away a higher propor-
a
tion of one’s income as the income rises C. Winning a lottery

is termed as [I. Tax & Central Excise D. Commission paid to an agent for sale of
ar
1990] house
A. progressive tax 205. An increase in national income because of
an increase in price is called
N
B. indirect tax
C. regressive tax A. an increase in national income in real
terms
D. proportional tax
200. Dr. Mehta committee was appointed on B. an increase in national income at con-
stant prices
A. Bank Frauds
C. an increase in money national income
B. Integrated Rural Development Pro-
gramme D. an increase in national income at base
C. Lone System year prices
206. Insurance sector in India is regulated by
D. National Income
27
A. RBI A. never change

B. CII B. change only if some outside factor
C. IRDA changes
D. SEBI C. change only if some internal factor

changes
207. The outcome of ’devaluation of currency’
is D. change only if government policies
change
A. Increased export and improvement in
balance of payment 212. In India, the bank NABARD does not pro-
vide refinance to: [CDS 2002]
B. Increased export and foreign reserve de-
ficiency A. Scheduled Commercial Banks
C. Increased import and improvement in B. Regional Rural Banks
am
balance of payment
C. Export-Import Banks
D. Increased export and import
D. State Land Development Banks
208. What is the difference between Debentures
and Equity? 213. In the world of commodity exchanges-the’
concept of "A standard contract to buy or
A. An equity shareholder cannot withdraw
his amount whereas debentures can be with-
drawn by taking back the amount
eR sell a specified commodity at a certain date
in future and at a market driven price" – is
known as [UBI PO 2010]
B. Debentures are sealed bonds acknowl-
A. Future contract
edging that money has been borrowed; eq-
uity is a shareholder’s share voting rights in B. Forward contract
re
proportion to his shareholding C. Market contract
C. Equity shareholding is more risky, com-
D. Standard contract
pared to debentures which are bound to re-
Sh
turn good interest on the principal 214. What is the period of Sixth Five Year
Plan?
D. Both debenture and equity holders have
the right of voting irrespective of the propor- A. 1975-76 to 1976-78
tion of holdings but debentures are of lower B. 1978-80 to 1981-84
value than equity
C. 1979-80 to 1982-84
i
209. Khetri Copper mine is located in the state

Ja
of D. 1980-81 to 1984-85
A. Rajasthan 215. Convertibility of the rupee implies: [IAS
B. Jharkhand 1994]
C. Chhattisgarh A. being able to convert rupee notes into

gold
D. Maharashtra
B. freely permitting the conversion of rupee
210. Reserve Bank of India was nationalized in
to other major currencies and vice versa
A. 1948
C. allowing the value of the rupee to be
B. 1947 fixed by market forces
C. 1949 D. developing an international market for
D. 1950 currencies in India
211. Equilibrium is a condition that can 216. Bill Market system was introduced in
A. 1951 221. The major aim of devaluation is to:

B. 1950 A. Encourage imports
C. 1952 B. Encourage exports
D. 1953 C. Encourage exports and imports
217. Which of the following is the new share D. Discourage both exports and imports
price index in dollar value in Mumbai share 222. The value of a commodity expressed in
market? terms of money is known as
er
A. SENSEX A. Price
B. FOREX B. Utility
C. DOLEX C. Value
gd
D. MDREX D. Wealth
218. Which of the following best defines the 223. A high Statutory Liquidity’ Ratio (SLR)
term ’Letter of Credit’ as used frequently in
A. restricts lending
bank transactions? [SBI PO 1991]
an
B. increases supply of cash
A. An unconditional undertaking given by
a bank ensuring the payment of a particular C. provides funds to the state
amount to the drawee at a given date D. increases the strength of the banks
Ch
B. An order from a bank to another bank 224. Which of the following schemes was in-
abroad authorising the payment of a partic- tended to tap the black money?
ular amount to a person named in the letter
A. SBI Deposit Scheme
B. UTI Bonds
C. Letter by a bank to a person stating the
terms and conditions of the loan sanctioned C. Long term Operations Scheme
n
to him by the bank D. India Development Bonds

D. Statement showing outstanding"- de- 225. Which of the following prints currency
ya
posits and credits of a bank for a particular notes of the denomination of Rs. 100?
period A. The Indian Security Press, Nasik Road
219. What is "book-building"?
B. The Bank Note Press, Dewas
A. Preparing the income and expenditure
a
C. The Security Printing Press, Hyderabad

ledgers of a company (book-keeping)
D. All of the above
ar
B. Manipulating the profit and loss state-

ments of a company
producer of Diaspore?
C. A process of inviting subscriptions to a
A. Uttar Pradesh
N
public offer of securities, essentially through

a tendering process B. Punjab
D. Publishers’ activity C. Himachal Pradesh
220. Distribution of food rains operates under a D. Madhya Pradesh
two tier system with the introduction of 227. Where does the Dalal Street is situated?
A. Targetted Public Distribution System A. Banglore
B. The Consumers Cooperatives B. Hyderabad
C. The Cooperative Marketing Societies C. Chennai
D. Tire Service Cooperatives D. Mumbai
29
228. If the cash-reserve ratio is lowered by the 234. Cost of production of the producer is given
Central bank, what will be its effect on credit by:
creation?
A. sum of wages paid to labourers
A. Increase
B. sum of wages and interest paid on capital
B. Decrease
C. No change C. sum of wages, interest, rent and super-
D. None of these normal profit
229. Which one of the following Five-Year D. sum of wages, interest, rent and normal
Plans recognised human development as the profit
core of all developmental efforts? [IAS
1995] 235. A refrigerator operating in a chemist’s shop
is an example of
am
A. The Third Five-Year Plan
A. free good
B. The Fifth Five-Year Plan
B. final good
C. The Sixth Five-Year Plan
D. The Eighth Five-Year Plan C. producers good
230. Special Economic Zone (SEZ) concept was

first introduced in
A. China
eR D. consumer’s good
236. What are gilt-edged securities?
A. Securities issued by the multinationals
B. Japan
B. Securities issued by the government
C. India
re
C. Securities issued by the private sectors
D. Pakistan
D. Securities issued by the joint venture
231. Fixed cost is known as
companies
Sh
A. Special cost
237. A closed economy is one which
B. Direct cost
A. Does not trade with other countries
C. Prime cost
B. Does not possess any means of interna-
D. Overhead cost
tional transport
232. State which of the following is correct?
i
The Consumer Price Index reflects: C. Does not have a coastal line
Ja
A. the standard of living D. Is not a member of the U.N.O.

B. the extent of inflation in the prices of 238. The latest volume of food grains to be
consumer goods given per family as determined under. ’An-
napurna Scheme’ is
C. the increasing per capita income
D. the growth of the economy A. 35 kg
233. Who is the Chairman of the’ 14th Finance B. 20 kg

Commission?
C. 10 kg
A. D. Subba Rao
D. 40 kg
B. Montek Singh Ahluwalia
239. Which one of the following statements ap-
C. M. Govinda Rao propriately describes the "fiscal stimulus"?
D. Dr. YV Reddy [CSAT 2011]
A. It is an intense affirmative action of the 244. Per capita income is obtained by dividing
Government to boost economic activity in National Income by
the country A. Total population of the country
B. It is a massive investment by the Govern- B. Total working population
ment in manufacturing sector to ensure the
C. Area of the country
supply of goods to meet the demand surge
caused by rapid economic growth D. Volume of capital used
245. After ONGC, OIC, NTPC and SAIL, the
C. It is Government’s intensive action on
’Navratna’ PSU which was awarded ’Ma-
er
financial institutions to ensure disbursement
haratna’ status is
of loans to agriculture and allied sectors to
promote greater food production and contain A. HAL
food inflation
gd
B. GAIL
D. It is an extreme affirmative action by the C. Coal India Ltd.
Government to pursue- its policy of financial
D. BHEL
inclusion
246. Transfer payments mean
an
240. Which of the following provides the largest
A. Old age pensions
part of the demand for loanable funds in In-
dia? B. Unemployment compensations
A. Farmers C. Social security’ payments
Ch
B. Private-house purchasers D. All the above
247. Which one of the following statements is
C. Corporate businesses correct? Fiscal Responsibility and Budget
D. Hire-purchase borrowers Management Act (FRBMA) concerns [IAS
2006]
241. What was the period of Third Five Year
Plan? A. revenue deficit only
n
A. 1962-63 to 1964-65 B. fiscal deficit only

ya
C. both fiscal and revenue deficit

B. 1961-62 to 1965-66
D. neither fiscal deficit nor revenue deficit
C. 1964-65 to 1966-67
248. ’The strategy of Rolling plan was adopted
D. 1965-66 to 1968-69 during the Prime Ministership of: [Railways
a
242. The type of unemployment mostly found 1994]

in India can be characterized as: A. Indira Gandhi
ar
A. frictional B. Lal Bahadur Shastri

B. structural C. Morarji Desai
N
C. cyclical D. Rajiv Gandhi

249. Marginal cost is the
D. disguised
A. cost of producing a unit of output
243. Amarkantak Copper mine is located in the
state of B. cost of producing an extra unit of output
C. cost of producing the total output
A. Karnataka
D. cost of producing a given level of output
B. Madhya Pradesh
C. Tamil nadu 250. Which one of the following is an example
for Non-Banking Financial institution?
D. Andhra Pradesh
31
A. RBI 256. Industrial exit policy means

B. SBI A. forcing foreign companies to leave India
C. IOB
B. forcing business units to move out of
D. LIC
congested localities
251. From the national point of view which of
the following indicates Micro Approach? C. allowing manufacturers to shift their line
of products
A. Per capita income in India
D. allowing business units to dose down
B. Study of sales of TISCO
257. The main reason for low growth rate in
C. Inflation in India India, inspite of high rate of savings and
D. Educated Unemployment in India capital formation is: [IAS 1995]
am
252. Buyer’s market denotes the place where: A. high birth rate
A. the supply exceeds the demand B. low level of foreign aid
B. the demand exceeds the supply C. low capital/output ratio
C. the demand and supply are well balanced D. high capital/output ratio
D. commodities are available at competitive

rates
eR 258. Which among the following is the oldest
Development Financial Institution of India?
A. IDBI
253. The existence of a Parallel Economy or B. UTI
Black Money: [CPO SI 2003]
C. ICICI
re
A. makes the monetary policies less effec-
D. IFCI
tive
259. Mahalanobis Model has been associated
B. makes the economy more competitive with which Five- Year Plan?
Sh
C. ensures a better distribution of income A. First Five-Year Plan

and wealth
B. Second Five-Year Plan
D. ensures increasing productive invest-
ment C. Third Five-Year Plan
254. Which of the following is associated with D. Fourth Five-Year Plan

i
Nirmal Bharat Abhiyan Yojana? 260. Excise Duties are taxes on:
Ja
A. Community Toilets in slum areas A. export of commodities

B. Development of National Highways B. sale of commodities
C. Food for Work C. production of commodities
D. Eradication of Poverty D. import of commodities
255. The performance of which of the following 261. Which one of the following forms the
industries is considered performance of the largest share of deficit in Govt. of India
core industry? [RBI Grade B Officer 2011] budget? [UP PCS 2002]
A. Garments A. Fiscal deficit
B. Leather B. Primary deficit
C. IT C. Revenue deficit
D. Oil and Petroleum D. Budgetary deficit
262. According to the RBI directions, a NBFC A. Madhya Pradesh

(Non-Banking Finance Company) must pos- B. Gujarat
sess a Net-owned Fund of the amount:
C. Maharashtra
A. minimum Rs.5 lakh
D. Andhra Apradesh
B. minimum Rs. 10 lakh
269. The headquarters of World Trade Organi-
C. minimum Rs. 25 lakh sation is in: [CDS 2000]
D. minimum Rs. 50 lakh A. Seattle
er
263. Price discrimination is a feature of B. Montreal
A. Oligopoly C. Geneva
B. Monopoly D. The Hague
gd
C. Monopsony 270. Planning and control are so related that
D. Duopoly A. Planning initiates control
264. Which of the following does not determine B. Control initiates planning
an
supply of labour? C. Both are equivalent
A. Size and age-structure of population D. Both go on simultaneously in cycle
B. Nature of work 271. As output increases, average fixed cost
Ch
C. Marginal productivity of labour A. Increases
D. Work-leisure ratio B. Falls

265. The ’gilt-edged’ market deals in: [UP PCS C. Remains constant
2002] D. First increases, then falls
A. bullion 272. What was the main aim of Ninth Five Year
n
Plan?
B. worn and torn currency notes
A. Faster and inclusive growth in all sectors
C. Govt. securities
ya
D. Corporate bonds B. Eradicatin of regional imbalances

266. Which Bank was merged in the Punjab Na-
C. Growth with social justice and equality
tional Bank in February, 2003?
a
D. Agriculture
A. Catholic Syrian Bank Ltd.
273. What are "Open Market Operations"?
ar
B. Nainital Bank Ltd.

A. Activities of SEBI registered brokers
C. Nedungadi Bank Ltd.
B. Selling of currency by the RBI
D. Madurai Bank Ltd.
N
C. Selling of gilt-edged securities by the

267. The level of economic activity of an econ- Government
omy largely depends on.....
D. Sale of shares by FIIs
A. Aggregate Savings in the economy 274. Which amidst the following rural banks
B. Aggregate Demand in the economy has been named after a river? [NDA 2002]
C. Aggregate Supply in the economy A. Varada Grameen Bank
D. Aggregate Investment in the economy B. Prathama Bank
268. Which of the following state is the leading C. Thar Anchalik Grameen Bank
producer of Manganese Ore? D. Aravali Kshetriya Grameen Bank
33
275. Which of the following is not in the infras- A. 1950

tructure sector?
B. 1955
A. Power generation
C. 1957
B. Construction of roads
D. 1960
C. Food production
282. The type of note issue system followed in
D. Expansion of air ports India is:
276. The highest weight in the revised Whole
A. Maximum fiduciary system
Sale Price Index, implemented from Septem-
ber 2010 is given to which of the following B. Minimum reserve system
item? [Corporation Bank PO 2011]
C. Proportional fiduciary system
A. Food items
D. Fixed fiduciary system
am
B. Fuel
283. In India, the tax proceeds of which one of
C. Manufactured items the following as a percentage of gross tax
D. Primary Articles revenue has significantly declined in the last
277. When average cost production (AC) falls„ five years? [IAS 2010]
marginal cost of production must be.
A. rising
B. Falling
eRA. Service tax
B. Personal income tax
C. Excise duty
C. Greater than the average cost
D. Corporation tax
D. Less than the average cost
re
284. Commercialization of agriculture implies
278. The contribution of agriculture to India’s’
economy is: A. cultivation of timbers
A. decreasing B. plantation
Sh
B. increasing C. production of crops for sale

C. constant D. production of crops like wheat or rice
D. None of these 285. One of the main factors that led to rapid
279. Which of the following is not considered expansion of Indian exports is
i
as National Debt? A. Imposition of import duties

Ja
A. National Savings Certificates

B. Liberalization of the economy
B. Long-term Government Bonds
C. Recession in other countries
C. Insurance Policies
D. Diversification of exports
D. Provident Fund
286. Which authority decides about The States’
280. Money supply is governed by the
share in central taxes?
A. Planning Commission
A. Finance Commission
B. Finance Commission
C. Reserve Bank of India
C. Election Commission
D. Commercial Banks
D. Finance Ministry
281. The decimal system of Indian currency was
started in 287. A Black Market is a situation Where in
A. Goods are loaded by the producers A. Scarce currency

B. Goods are sold secretly B. Soft currency
C. Goods are sold at prices higher than what C. Gold currency
is fixed by the Government
D. Hot currency
D. Goods are made available (sold) only
294. What was the main aim of Eight Five Year
after there is a rise in prices
Plan?
288. Gross Profit means
A. Poverty alleviation and removing unem-
er
A. Total investment over total saving ployment
B. Changes in methods of production B. Growth with social justice and Equality
C. Changes in the form of business organi-
gd
C. Agriculture
zation
D. Basic industy
D. Total receipts over total expenditure
295. Bhagawathi committee was appointed on
289. Seawater, fresh air, etc., are regarded in
A. Public welfare
an
Economics as
A. Giffen goods B. Employment Opportunities and Fical
Transparency
B. Inferior goods
C. Lone System
Ch
C. Free goods
D. Expenditure Reforms
D. Normal goods
296. Lohardaga Bauxite mine is located in the
290. Antyodaya Programme is associated with:
state of
A. liberation of bonded labour
A. Chhattisgarh
B. bringing up cultural revolution in India
n
B. Jharkhand
C. demands of textile labourers
C. West Bengal
ya
D. upliftment of the poorest of the poor

D. Gujarat
291. The bank cheques are processed by using
297. When was the Minimum Wages Act en-
A. OCR acted in India?
a
B. MICR A. 1936
C. OMR B. 1948
ar
D. PMR C. 1951
292. Gross National Product is less than
D. 1956
Gross Domestic Product depending upon
N
whether: 298. Which one of the following is the task of

the Planning Commission? [NDA 1991]
A. indirect taxes are more than subsidies
A. Preparation of the plan
B. depreciation is included or not
B. Implementation of the plan
C. net factor income from abroad is positive
or negative C. Financing of the plan
D. indirect taxes are less than subsides D. Both a. and b.
293. Foreign currency which has a tendency of 299. Which of the following state is the leading
quick migration is called producer of Mica(crude)?
35
A. Goa C. the rate of interest is so low that no one

wants to hold interest bearing assets and peo-
B. Karnataka
ple wants to hold cash
C. Andhra Pradesh
D. there is an excess of foregin exchange
D. Madhya Pradesh reserves in the economy leading to excess
300. The banks are required to maintain a cer- of money supply
tain ratio between their cash in hand and 305. Economic growth is usually coupled with
total assets. This is called: [IAS 1998] [CSAT 2011]
A. SBRC (Statutory Bank Ratio) A. inflation
B. SLR (Statutory Liquid Ratio) B. deflation
C. CBR (Central Bank Reserve) C. stagflation

D. hyperinflation
am
D. CLR (Central Liquid Reserve)
306. The market price is related to:
301. Which of the following is the Specially de-
signed scheme for the welfare of the Indian A. very short period
women introduced recently by General In- B. short period
surance?
eR C. long period
A. Rajeshwari
D. very long period
B. Bhagya Rajeshwari 307. Which among the following statements is
C. Bhagyashree not true when there is an increase in interest
rate in an economy?
D. Raja lakshmi
A. increase in saving
re
302. In a business, raw materials, components,
work in progress and finished goods are B. decrease in loan
jointly regarded as C. increase in production cost
Sh
A. Capital stock D. increase in capital return

B. Inventory 308. The incidence of sales tax falls on
C. Investment A. Consumers
D. Net worth B. Wholesale dealers

303. Which of the following is the basis for de- C. Retail dealers
i
termining the national income? D. Producers

Ja
A. Net profit earned and expenditure in- 309. In how many denominations is Indian pa-
curred by the State per currency printed at present?
B. Total revenue of the State A. 9
C. Production of goods and services B. 8
D. All of the above C. 7

304. ’Liquidity trap’ is a situation in which: D. 6
310. The ’sunrise industries’ Imply
A. people want to hold only. cash because
there is too much of liquidity in the economy A. petrochemicals and electronics industry
B. sunflower oil industry
B. people want to hold only cash because C. computer industry
prices are falling everyday
D. chemical industry
311. Devaluation of a currency means A. Eradication of Regional imbalances

A. reduction in the value of a currency vis- B. Basic Industry
a-vis major internationally traded currencies C. Eradication of Poverty
D. Food, Work and Productivity
B. permitting the currency to seek its worth 317. As per latest data in urban areas women
in the international market employment is highest in which of the fol-
C. fixing the value of the currency in con- lowing industries areas? [UBI PO 2010]
junction with the movement in the value of
er
A. Retail Trade
a basket of pre-determined currencies
B. Private households
D. fixing the value of currency in multilat-
eral consultation with the IMF, the World C. Apparel
gd
Bank and major trading partners D. Education
312. Which of the following committees was 318. Structural unemployment arises due to:
assigned to recommend reforms in the insur- A. Deflationary conditions
ance sector?
an
B. Heavy industry bias
A. Rekhi Committee
C. Shortage of raw materials
B. Nadkarni Committee
D. Inadequate productive capacity
C. Malhotra Committee 319. Liquidity Preference means
Ch
D. Chelliah Committee A. Holding assets in the form of bonds and
313. ’Gold’ is mainly related to shares
A. Local market B. Holding assets in the form of cash
B. National market C. Creation of immovable property

n
D. Assets in the form of jewellery

C. International market
320. Which one of the following Indian banks
D. Regional market
ya
is not a nationalized bank? [IAS 2006]

314. The Tarapore Committee recommended A. Dena Bank
that before capital account was made con-
vertible the rate of inflation should be B. Corporation Bank
a
brought down for three years to within: C. Federal bank

A. 3.5% D. Vijaya Bank
ar
B. 0.3% 321. A mixed economy refers to an economic

system where
C. 4.6%
A. The economy functions with foreign col-
N
D. 5.7% laboration
315. Which of the following performs central B. Only the private sector operates under
banking functions? government control
A. Reserve Bank of India C. Both the government and the private sec-
B. Punjab National Bank tors operate sectors operate simultaneously
C. Indian Bank
D. No foreign investment is allowed
D. Syndicate Bank 322. Raniganj Coal mine is located in the state
316. The main aim of Tenth Five Year Plan was of
37
A. Madhya Pradesh 328. The term ’Green GNP’ emphasizes

B. Gujarat A. Rapid growth of GNP
C. West Bengal B. Increase in per capita income
D. Maharashtra C. Economic development
323. Who had estimated National Income in In- D. Sustainable development
dia first?
329. Liberalism stands for
A. V.K. R. V. Rao
A. Religious orthodoxy
B. Dadabhai Naoroji
B. A movement and an attitude
C. RC. Dutt
C. Self-emancipation
D. D.R. Gadgil
D. Freedom in social, political and eco-
am
324. In the last one decade, which one among nomic aspects
the following sectors has attracted the high-
est Foreign Direct Investment inflows into
producer of Corundum?
India? [IAS 2004]
A. Karnataka
A. Services sector
B. Chemicals other than fertilizers
C. Food processing
eR B. Maharashtra
C. Haryana
D. Madhya Pradesh
D. Telecommunication
325. Which of the following is wrongly 331. Why is rent earned by land even in the long
matched: run?
re
A. share market-stock exchange A. Land has original and indestructible
power
B. interest rate-fiscal policy
B. Land is a manmade factor
Sh
C. export subsidy-fiscal policy

C. Its supply is inelastic in the short run
D. general price index-inflation
D. Its supply is inelastic in the long run
326. Present Industrial policy in India aims at:
332. What is "narrow money"?
A. increasing the production of public sec-
tor units A. The sum of currency in circulation and
i
the demand deposits in banks

B. promoting the private sector units
Ja
B. The sum of M, money and the time de-

C. accelerating the performance of mixed posits
economy
C. The sum of currency in circulation with
D. discourage the performance of the pri-
the public and the cash reserves held by
vate sector
banks
327. When there is a change in demand leading
to a shift of the Demand Curve to the right, D. The market value of the stocks held by
at the same price as before, the quantity de- all the holders excluding the promoters
manded will 333. How does the consumer benefit with VAT?
A. Decrease A. It removes tax on tax and thus reduces
price-rise
B. Increase
B. Reduces the cost of production
C. Remain the same
C. With the abolition of the sales tax
D. Contract
D. Due to the exemption of small busi- C. ensures a better distribution of income

nesses from the tax within certain limits pre- and wealth
scribed by the State D. ensures increasing productive invest-
334. Monetary policy in India is formulated by: ment
A. Finance Ministry 340. The symbol of Reserve Bank of India is
B. RBI A. Capitol of Asokan Pillar
C. SEBI B. Kuber with a purse of money
er
D. CLB C. Tiger before a Palm tree
335. Which of the following measures is not D. A dog sitting in a defensive state
likely to help in improving India’s balance 341. Janakiraman Committee was appointed on
gd
of payments position?
A. Public Sector Disinvestment
A. Encouragement of import substitution
B. Insurance Sector Reforms
B. Devaluation of the rupee
C. Securities Transactions of the Banks
C. Imposition of higher duty on imports
an
D. Introduction of SICA
D. Imposition of higher duty on exports
342. Under Indira Gandhi National Old Age
336. The excess of price a person is to pay rather Pension Scheme (lGNOAPS), the benefits
than forego the consumption of the commod- are available to the people having minimum
Ch
ity is called age of ..... [Bank of India PO 2010]
A. Price A. 50 years
B. Profit B. 55 years
C. Producers’ surplus C. 65 years
D. Consumer’s surplus D. 60 years
n
337. Mahajan committee was appointed on 343. A currency having a falling exchange rate
due to continuing balance of payments
ya
A. Banking Reforms
deficit is called a
B. Bank Frauds
A. Soft currency
C. Private investment in basic infrastructure
B. Hard currency
a
D. Sugar industry C. Scarce currency

ar
338. When does the problem of unfavorable bal- D. Surplus currency

ance of payment arise? 344. Mixed economy means an economy where
[CDS 2009]
A. When exports decrease
N
A. there is co-existence of public sector

B. When exports increase
along with private sector
C. When imports increase
B. both agriculture and industry are equally
D. When imports are greater than exports promoted by the state
339. The existence of a Parallel Economy or C. there is importance of small scale indus-
Black Money tries along with heavy industries
A. makes the economy more competitive D. economy is controlled by military as
B. makes the monetary policies less effec- well as civilian rulers
tive 345. "Functional Finance" is associated with:
39
A. Adolph Wogner 352. Which of the following is not investment

B. Adam Smith expenditure in goods and services?
C. Adams A. Expansion of the main plant of a com-

pany
D. Abba ’P’ Lerner
346. Which one of the following is an example B. Purchase of a house
of optional money?
C. Purchase of machinery
A. Currency note
D. An increase in business inventories
B. Coins
353. Malthusian theory of population explored
C. Cheque
the relationship between
D. Bond
A. Food supply and technology
347. The concept of Five Year Plans in India
am
was introduced by B. Food supply and population growth
A. Jawaharlal Nehru C. Population growth and development
B. Lord Mountbatten
D. Optimum growth and resources
C. Indira Gandhi
D. Lal Bahadur Shastri
348. Regional Rural Banks are sponsored by
eR 354. Which of the following state is the leading
producer of Iron Ore?
A. Goa
A. Nationalized Commercial Bank
B. Reserve Bank of India B. Madhya Pradesh
re
C. State Bank of India C. Odisha
D. Government of India D. Kerala
349. Raj committee was appointed on
355. Economic rent refers to
Sh
A. Employment Opportunities and Fical

Transparency A. Payment made for the use of labour
B. Banking Reforms B. Payment made for the use of capital

C. Agricultural Holding Tax C. Payment made for the use of organiza-
tion
i
D. Capital Account Convertibility of rupee

Ja
350. Under which Act Policy was the BIFR es- D. Payment made for the use of land
tablished?
356. Given the money wages, if the price level
A. Industrial Policy of 1980
in an economy increases, then the real wages
B. Companies Act will
C. Sick industrial Companies Act A. Increase
D. MRTP Act
B. Decrease
351. During periods of inflation, tax rates
should C. Remain constant
A. increase D. Become flexible
B. decrease 357. While computing national income esti-
C. remain constant mates, which of the following is required
to be observed?
D. fluctuate
A. The value of exports to be added and the 363. Which of the following state is the leading
value of imports to be subtracted producer of Shale?
B. The value of exports to be subtracted and A. Andhra Pradesh
the value of imports to be added
B. Himachal Pradesh
C. The value of both exports and imports to
C. Madhya Pradesh
be added
D. Kerala
D. The value of both exports and imports to
be subtracted 364. Which of the following taxes is such which
er
358. The measure of a worker’s real wage is: does not cause rise in price?
[CPO SI 2002] A. Import duty
A. the change in his productivity over a B. Income tax
gd
given time
C. Octorol
B. his earning after deduction at source
D. Sales tax
C. his daily earnings
365. ’Hire and Fire’ is the policy of
an
D. the purchasing power of his earnings
A. Capitalism
359. Which of the following state is in the third
place in the production of Iron Ore? B. Socialism
A. Chattiesgarh C. Mixed Economy
Ch
B. Maharashtra D. Traditional Economy
C. Goa 366. The difference between GNP and NNP
equals
D. Tamil Nadu
360. Which of the following is not sponsor of A. Corporate profits
newly established UTI-II? B. Personal taxes
n
A. General Insurance Corporation C. Transfer payments

B. Punjab National Bank
ya
D. Depreciation
C. Life Insurance Corporation of India 367. Which of the following is not required
D. State Bank of India while computing Gross National Product
361. One-rupee currency notes bear the signa- (GNP)? [Asstt Grade 1992]
a
ture of: A. Private investment

ar
A. President of India B. Net foreign investment

B. Prime Minister of India C. Per capita income of citizens
C. Finance Minister of India D. Purchase of goods by government
N
D. Finance Secretary of India 368. The main aim of Second Five Year Plan
362. What is selling cost? was
A. Cost incurred on transportation of com- A. Food, Productivity and Work
modities to market
B. Eradication of Poverty
B. Cost incurred on promoting the sale of
the product C. Basic and heavy industries
C. Cost incurred on commission and D. Poverty alleviation

salaries personnel 369. Indian rupee is made fully convertible as
current account in
D. Cost incurred on advertisement
41
A. 1994 A. positive
B. 1995 B. zero
C. 1996 C. negative
D. 1997 D. positive but decreasing
370. Which one of the following taxes is col- 376. Reserve Bank staff college is in
lected and utilized by the State Govern- A. Hyderabad
ments?
B. Calcutta
A. Personal income tax C. Chennai
B. Corporation tax D. Ahmadnagar
C. Land revenue 377. Which of the following sectors contributed
am
D. Custom duties more to the savings in India?
371. Stagflation implies a case of: [CDS 1992] A. Public sector

B. Household sector
A. galloping inflation
C. Corporate sector
B. recession plus inflation
C. adverse balance of trade
D. rising wages and employment
eR D. Private sector
378. Who is the Deputy Chairman of Planning
Commission?
372. In a developing country like India, in which A. Prime Minister
sector a high rate of disguised unemploy-
ment exists? B. Finance Minister
re
C. Commerce Minister
A. Corporate Sector
D. None of the above
B. House-hold Sector
379. Gold Bond Scheme is introduced by the
Sh
C. Service Sector State Bank of India (SBI) in

D. Agricultural Sector A. 2001
373. The first computer made available for com- B. 1999
mercial use was:
C. 2002
i
A. MANIAC
D. 2003
Ja
B. ENIAC 380. If two commodities are complements, then

C. UNIVAC their cross-price elasticity is
D. EDSAC A. Zero
374. Which of the following state is the leading B. Positive
producer of Silica? C. Negative
A. Tamil Nadu D. Imaginary number
B. Karnataka 381. Inflation can be checked by
C. Gujarat A. Increasing exports
D. Madhya Pradesh B. Increasing money supply
375. If total utility is maximum at a point, then C. Increasing Government expenditure
marginal utility is D. Decreasing money supply
382. Durgapur Steel Plant was set up with the 388. Deficit financing is an instrument of
assistance of
A. Monetary policy
A. U.K
B. Credit policy
B. U.S.A
C. Fiscal policy
C. U.S.S.R
D. Tax policy
D. West Germany
383. If the price of an inferior good falls, its 389. Consumer’s surplus is the highest in the
case of:
er
demand
A. rises A. durable goods
B. falls B. luxuries
gd
C. remains constant C. comforts
D. necessities
384. Core industries include:
390. Consequent ’upon the recommendations of
an
A. industries catering to defence require- the Working Group on Rural Banks, 5 Rural
ments Regional Banks were initially set up in the
B. basic industries year [CPO SI 2010]
C. critical industries A. 1974
Ch
D. all the above B. 1973
385. Under which market condition do firms
C. 1975
have excess capacity?
A. Perfect competition D. 1976
B. Monopolistic competition 391. Gresham’s Law means

n
C. Duopoly A. Good money replaces bad money in cir-

culation
ya
D. Oligopoly
386. The size of the market for a product refers B. Bad money replaces good money in cir-
to culation
A. The number of people in the given area C. Good money promotes bad money in the
a
B. The geographical area served by the pro- system

ar
ducers D. Bad money promotes good money in the

C. The volume of potential sales of the prod- system
uct 392. Which bank in India performs duties of
N
D. The number of potential buyers of the Central Bank?

product
A. Central Bank of India
387. Which one among the following is not a
component of fiscal policy? [Asstt Commdt B. State Bank of India
2011] C. Reserve Bank of India
A. Taxation policy
D. Above (a) and (b)
B. Public debt policy
393. Which of the following is correct regarding
C. Trade policy the Gross Domestic Saving In India? [Asstt
D. Public expenditure policy Grade 1992]
43
A. Contribution of Government sector is the A. Cost of selling a product

largest B. Cost incurred in transportation
B. Contribution of Household sector is the C. Cost Incurred in advertisement
largest
D. Cost Incurred on factors of production
C. Contribution of Corporate sector is the
400. After textiles, India’s second important in-
largest
dustry is:
D. None of these
A. Sugar
394. In the context of the stock market, IPO
stands for B. Jute
A. Immediate Payment Order C. Cement
B. Internal Policy Obligation D. Iron and steel
am
401. N.N Vohra committee was appointed on
C. Initial Public Offer
A. Politicians - Politics
D. International Payment Obligation
395. The Second Five Year Plan laid more stress B. Capital Account Convertibility of rupee
upon: C. Employment Opportunities and Fical
A. agriculture eR Transparency
B. industrialization D. Lone System

402. Which amidst the following is a PSU?
C. removing poverty
A. Bank of Rajasthan
D. self-reliance
396. The terms of economics, the recession oc- B. Bank of India
re
curring two times with a small gap in be- C. Bank of Punjab
tween is known as [Bank of India PO 2010]
D. Karnataka Bank
A. Double Deflation 403. Which of the following is an open market
Sh
B. Deflation operation of the RBI?

C. Deep Recession A. Buying and selling of shares
D. Double Dip Recession B. Trading in securities
397. Bouncing of cheques has become an of- C. Transactions in gold
i
fence. What is the punishment for the same: D. Lending to commercial banks
Ja
A. 1year imprisonment 404. Commercial banks create credit

B. 6 months imprisonment A. on the basis of their securities
C. 2 years imprisonment B. on the basis of their assets
D. 3 years imprisonment C. on the basis of their reserve fund
398. ’NABARD’ is associated with the develop- D. on the basis of their deposits
ment of
405. Capital formation in an economy depends
A. Agricultural sector and rural areas on
B. Heavy industries A. Total Income
C. Banking sector B. Total demand
D. Real estates C. Total savings
399. Selling cost means: D. Total production
406. Which one of the following items is in- A. backed by the Government treasury
cluded in the national income account?
B. convertible into other types of saving de-
A. Services of housewives posits
B. Income of smugglers C. quickly and easily marketable
C. Services of Sadhus D. stable in value
D. Services of night-watchmen 413. ’Quota’ is
407. In the long-run equilibrium, a competitive A. tax levied on imports
er
firm earns
B. imports of capital goods
A. Super-normal profit
C. limit on the quantity of imports
B. Profits equal to other firms
D. limit on the quantity of exports
gd
C. Normal profit 414. In estimating the budgetary deficit, the of-
D. No profit ficial approach in India is to exclude-
408. The principal source of revenue to the State A. Long term borrowing from the market
an
Government in India is:
B. Borrowings from the Reserve Bank of
A. Income Tax India
B. Sales Tax C. Drawing down of the cash balance
Ch
C. State Excise Duties D. Borrowing from Reserve Bank in the
D. Land Revenue form of ways and means advance
409. To achieve high rates of growth of national 415. UTI has been divided into two parts UTI-I
output, the economy has to and UTI-II. Which part has been kept under
the control of the government?
A. reduce the rate of growth of population
A. UTI-II
n
B. borrow foreign capital

B. UTI-I
C. step up the rate of savings
ya
C. Both the above

D. increase the rate of investment and re-
duce the capital output ratio D. None of the above
410. The income elasticity of demand being 416. Core Industries are
greater than one, the commodity must be
a
A. Basic industries
A. A necessity B. Consumer goods industries
ar
B. A luxury C. Capital goods industries

C. An inferior good D. Government industries
D. None of these
N
417. What is referred to as "Depository Ser-

411. The relationship between price of a com- vices"?
modity and the demand for it A. A new scheme of fixed deposits
A. is a positive relationship B. A method of regulating stock exchanges
B. is an inverse relationship
C. They are independent of each other C. An agency for safe-keeping of securities
D. They do not have any relationship
412. Government securities are considered liq- D. An advisory service to investors
uid because they are 418. Abid Hussain committee was appointed on
45
A. Bank Frauds A. closure of a plant due to lock out

B. Small Scale Industries and Exim Policy B. closure of a plant due to labour trouble
C. Public Sector Disinvestment C. loss of equipment over time due to wear
and tear
D. Banking Reforms
D. destruction of a plant in a fire accident
419. Investment is equal to
425. ’Sub Prime Lending’ is a term applied to
A. Gross total of all types of physical capi-
the loans made to ..... [Punjab & 5indh
tal assets
Bank 2011]
B. Gross total of all capital assets minus
A. those who wish to take loan against the
wear and tear
mortgage of tangible assets.
C. Stock of plants, machines and equip-
am
B. those borrowers who do not have a good
ments
credit history.
D. None of these
C. those who have a good credit history and
420. The RBI issues currency notes under the are known to bank since 10 years.
A. Fixed Fiduciary System D. those borrowers who are most preferred
B. Maximum Fiduciary System
C. Fixed Minimum Reserve System
eR customers of the Bank.
426. The best example of a capital intensive in-
dustry in India is
D. Proportional Reserve System
A. Textile Industry
421. National Social Assistance Programme is
re
B. Steel Industry
aimed at providing
C. Tourism Industry
A. Financial support to Scheduled Castes
and Scheduled Tribes D. Sports Goods Industry
Sh
B. Old age pension to very poor 427. The basic difference between imperative
and indicative planning is that: [IAS 1993]
C. Insurance for the poor
A. in the case of imperative planning, all
D. All of the above
economic activities belong to public sector,
422. Economic development depends on:
i
while in the other type they belong to the

private sector
Ja
A. Natural resources
B. it is easier to achieve targets in impera-
B. Capital formation
tive type of planning
C. Size of the market
C. in the case of the imperative planning,
D. All of the above the market mechanism is entirely replaced
by a command hierarchy, while in the case
423. Tarapore committee was appointed on
of indicative planning, it is looked upon as a
A. Lone System way to improve the functioning of the mar-
ket system
B. Bank Frauds
D. in the case of indicative planning, there
C. Capital Account Convertibility of rupee
is no need to nationalize any industry
D. Customer Service
428. Development expenditure of the Central
424. Depreciation means government does not include
A. expenditure on economic services A. Who pays the Tax?

B. Defense expenditure B. Who bears the burden of Tax?
C. expenditure on social and community C. How Taxes can be shifted?
services D. Who transfers the Tax burden?
D. grant to states 434. Securities and Exchange Board of India
429. Name the curve which shows the quantity (SEBI) was established in
of products a seller wishes to sell at a ’given A. 1988
er
price level.
B. 1987
A. Demand curve
C. 1989
B. Cost curve
gd
D. 1990
C. Supply curve
435. The demand for which of the Following
D. None of these commodity will not rise in spite of a fall in
430. Kar Vivad Samadhan Scheme introduced its price?
an
for voluntary settlement of A. Television
A. Income Tax B. Refrigerator
B. Central Sales Tax C. Salt
Ch
C. Customs and Excise duties D. Meat
D. Wealth Tax 436. Which of the following state is the leading
producer of Sillimanite?
431. Which of the following results by dividing
national income by size of population? A. Kerala
A. Per capita income B. Andhra Pradesh

n
B. Subsistence level C. Odisha

ya
C. Subsistence expenditure D. Madhya Pradesh

437. The most accessible medium in India is
D. Per capita production
432. Which one of the following is not a feature A. Television
a
of "Value Added Tax"? [CSAT 2011] B. Radio

A. It is a multi-point destination-based sys- C. Cinema
ar
tem of taxation
D. Newspapers
B. It is a tax levied on value addition at 438. The theory of distribution relates to which
each stage of transaction in the production- of the following?
N
distribution chain
A. The distribution of assets
C. It is a tax on the final consumption of
goods or services and must ultimately be B. The distribution of income
borne by the consumer C. The distribution of factor payments
D. It is basically a subject of the Central D. Equality in the distribution of the income
Government and the State Governments are and wealth
only a facilitator for its Successful imple- 439. What is the extent of change of the literacy
mentation rate envisaged by the end of the Xth Five
433. The incidence of Tax refers to Year Plan?
47
A. From 65% to 75% A. About 70% Indians are involved in some

type of self-employment and are the owners
B. From 60% to 70%
of some or the other micro or small enter-
C. From 50% to 55% prise.
D. From 45% to 50% B. Indian economy is as developed as that
440. An individual’s actual standard of living of China.
can be assessed by [SSC Grad 2011] C. In India, single biggest employment is
A. Gross National Income agriculture and allied activities.
B. Net National Income D. About 48% Indian workforce is em-

ployed in foreign countries or in organiza-
C. Per Capita Income tions assisted by foreign capital.
D. Disposable Personal Income 446. Many times we see in financial jour-
am
441. Consequent upon the recommendations of nals/bulletins a term M3. What is M3? [RBI
the Working Group on Rural Banks, 5 Rural Grade B Officer 2011]
Regional Banks were initially set up in the A. Currency in circulation on a particular
year day
A. 1973 B. Total value of foreign exchange on a par-
B. 1974
C. 1975
eR ticular day
C. Total value of export credit on a given
date
D. 1976
D. None of these
442. Investment and savings are kept equal
447. Mashelkar Committee was constituted to
re
through a change in the level of
report on:
A. Consumption
A. constitutional changes
B. Investment
Sh
B. economic policy
C. Government expenditure
C. black money
D. Income
D. auto fuel policy
443. Which one of the following situations 448. The place where bankers meet and settle
makes a firm most efficient? [CDS 2002] their mutual claims and accounts is known
i
A. Rising average costs as: [Bank PO 1993]

Ja
B. Falling average costs A. treasury

C. Constant average costs B. clearing House
D. Lowest average costs C. collection Centre
444. SEBI was set up in D. dumping Ground
A. 1992 449. Focus Market Scheme was introduced in
B. 1980 A. 2007-08
C. 1984 B. 2006-07
D. 1988 C. 2009-09
445. Which of the following statements about D. 2009-10

the Indian Economy is correct? [RBI Grade 450. NABARD(National Bank of Agriculture
B Officer 2011] and Rural Development)was established on
A. June 28, 1976 A. 15

B. May 20, 1956 B. 16
C. October 12, 1987 C. 17
D. July 12, 1982 D. 18

456. Gross National Income is always more than
451. A short-term government security paper is
Net National Income because it includes:
called
A. capital consumption allowance
A. Share
er
B. foreign income
B. Debenture
C. indirect taxes
C. Mutual fund
D. direct taxes
gd
D. Treasury bill 457. The practice of selling goods in a foreign
452. Where was the first cotton textile industry country at a price below their domestic sell-
established? ing price is called
A. ’diplomacy’
an
A. Madras
B. ’discrimination’
B. Bombay
C. ’dumping’
C. Fort Gloster near Calcutta
D. ’double pricing
Ch
D. Ahmedabad
453. State which amongst the following is not producer of Kankar?
true about VAT?
A. Madhya Pradesh
A. All States have uniform VAT for the B. Tamil Nadu
same product
n
C. Goa
B. State has discretion to fix the rate of tax
within the four rates prescribed D. Gujarat
ya
459. The ’Interest Rate Policy’ is a component

C. It will promote production efficiency of of
investments
A. Fiscal Policy
D. It will make our exports more competi-
a
B. Monetary Policy
tive
C. Trade Policy
454. According to Keynesian theory of income
ar
determination, at full employment, a fall in D. Direct Control

aggregate demand causes 460. Why has the general budget till recently
A. A fall in prices of output and resources always been presented at 5 o’ clock in the
N
evening?
B. A fall in real gross National product and
A. All countries present their budgets at this
employment
time
C. A rise in real gross National product and B. So that there is no time for traders to
investment manipulate the prices
D. A rise in prices of output and resources C. It is a convention of official secrecy
455. With the inclusion of Shipping Corpora- D. It is a carry-over from times of British
tion of India recently in the list of Nav Ratna rule when the Budget could be discussed in
PSEs, their number now stands at the British Payment simultaneously
49
461. Which State has the lowest per capita in- A. Securities Scam
come in India?
B. Industrial Sickness
A. Bihar C. Insurance sector Reforms
B. Orissa D. Customer Service
C. Rajasthan 468. Punjab National Bank was established in
D. Gujarat A. 1891
462. Which one of the following is not correct? B. 1894
A. First Five Year Plan-1951-56 C. 1899
B. Second FiveYearPlan-l956-61 D. 1892
C. Third Five Year Plan-1961-66 469. The headquarters of OPEC (Organisation
am
D. FourthFiveYearPlan-1966-71 of Petroleum Countries) is at:
463. Which of the following agencies has the A. Vienna
power to declare any industrial unit as a po- B. Kuwait City
tentially sick unit? [CDS 2000]
C. Algeria
A. MRTPC eR D. Tehran
B. BIFR
470. One of the problems in calculating the na-
C. FICCI tional income in India correctly is: [Rail-
ways 1994]
D. IRBI
464. Gilt-Edged market deals with A. inflation
re
A. Government Securities B. under-er-employment
B. Commercial Paper C. non-monetised consumption

D. low savings
Sh
C. Deposit Certificates
471. Of the various ways of financing govern-
D. All the above
ment’s investment expenditure, the least in-
465. Which one of the following is having elas- flationary is: [PCS 1994]
tic demand?
A. foreign aid
A. Electricity
i
B. deficit financing
B. Medicines
Ja
C. taxation
C. Rice
D. public borrowing
D. Matchboxes 472. The sum total of incomes received for the
466. To increase the growth in agriculture Ras- services of labour, land or capital in a coun-
triya Krishi Vikas Yojana (RKVY) was try is called:
started in
A. Gross domestic product
A. 2004
B. National income
B. 2005
C. Gross domestic income
C. 2007
D. Gross national income
D. 2009 473. Which of the following is now a punishable
467. Ram Nivas Mirdha committee was ap- offence by a Bank Account holder? [Bank
pointed on PO 1990]
A. If a post-dated cheque is issued A. Air India

B. If a cheque is not crossed B. Indian Railways
C. If a cheque drawn by him is dishonoured C. IOC
for insufficiency of funds in his account
D. LIC
D. Issuing a cheque without signature 479. The growth rate of agricultural production
474. In order to be scheduled to the Reserve was negative in the:
Bank of India, a bank should have capital
and reserve of not less than: A. Second Plan
er
A. 1 lakh B. First Plan
B. 5 lakhs C. Third Plan
gd
C. 10 lakhs D. Fourth Plan
480. Extension or contraction of quantity de-
D. 50 Iakhs
manded of a commodity is a result of a
475. Which of the following is NOT a function change in the
of the Planning Commission of India? [RBI
an
Grade B Officer 2011] A. Unit price of the commodity
A. Assessment of the material, capital and B. Income of the consumer
human resources of the country C. Tastes of the consumer
Ch
B. Formulation of plans for the most effec- D. Climate of the region
tive and balanced utilization of country’s
481. Value of output and value added can be
resources
distinguished if we know:
C. Public cooperation in national develop-
ment A. the value of intermediate consumption
D. Preparation of annual budget of the coun- B. the value of net indirect taxes
n
try and collection of taxes to raise capital for C. the value of the sales
the implementation of the plans
ya
D. the value of consumption of fixed capital

476. When aggregate supply exceeds aggregate
demand
482. Which one of the following is not a feature
A. Unemployment falls of Indifference Curve?
a
B. Prices rise A. They do not intersect each other

C. Inventories accumulate
ar
B. They slope downwards to the right

D. Unemployment develops C. They are parallel to each other
477. Consider the following statements: NTPC
D. They are concave to each other
N
has diversified to hydropower sector Power

Grid Corporation has diversified into tele- 483. What is the maximum limit for medium en-
com sector Which of the statements below terprise as per Small and Medium Enterprise
is correct? Development Act?
A. Only a A. Rs. 10 Crore
B. Only b B. Rs. 1 Crore
C. Both of a and b C. Rs. 5 Crore
D. None of a and b D. Rs. 14 Core
478. In India the largest public undertaking is - 484. Exploitation of labour is said to exist when
51
A. Wage = Marginal Revenue Product A. A central place

B. Wage < Marginal Revenue Product B. Presence of competition
C. Wage > Marginal Revenue Product C. Place where goods are stored
D. Marginal Revenue Product = 0 D. Shops and super bazars
485. C.H.Hanumanthrao committee was ap- 491. Nayak committee was appointed on
pointed on A. Credit to SSS Sector
A. Lone System B. Lone System
B. Agricultural Holding Tax C. Insurance sector Reforms
C. Introduction of Sica D. Expenditure Reforms
D. Fertilizer Subsidy 492. The concept that under a system of free
am
enterprise, it is consumers who decide what
486. Full convertibility of a rupee means
goods and services shall be produced and in
A. Purchase of foreign exchange for rupees what quantities is known as
freely
A. Consumer Protection
B. Payment for imports in terms of rupees
eR B. Consumer’s Decision
C. Repayment of loans in terms of rupees
C. Consumer Preference
D. Determination of rate of exchange be-
D. Consumer’s Sovereignty
tween rupee and foreign currencies freely
by the market forces of demand and supply 493. Who advocated the adoption of ’PURA’
model to eradicate rural poverty?
487. An advalorem duty is a tax on the basis of:
re
[IAS 1988] A. M.S.Swaminathan
A. the value added B. Maulana AbuI Kalam Azad

C. Dr. A.P.J. Abdul Kalam
Sh
B. the price of a commodity

C. the advertisement expenditure D. A.M.Khusro
494. Opportunity cost of production of a com-
D. the unit of the commodity
modity is
488. The permission given to a bank customer
A. The cost that the firm could have in-
to draw cheques in excess of his current ac-
i
curred when a different technique was

count balance is called
adopted
Ja
A. A personal loan
B. The cost that the firm could have in-
B. An ordinary loan curred under a different method of produc-
tion
C. Discounting a bill of exchange
C. The actual cost incurred
D. An overdraft
489. The oldest stock exchange of India is: D. The next best alternative output
495. ’PROTECTION’ means
A. Ahmedabad Stock Exchange
A. Restrictions imposed on import trade
B. Bombay Stock Exchange
B. Protection to home industries
C. Bangalore Stock Exchange
C. No free exchange of goods and services
D. Hyderabad Stock Exchange between two countries
490. The term "market" in Economics means
D. All of the above
496. Which of the following Indian banks be- A. Excise Duty

came the first to touch a market capitaliza- B. Wealth Tax
tion of Rs. 1,00,000 crore in India?
C. Profession Tax
A. ICICI
D. Income Tax
B. HDFC 503. The problem of Economics arises from
C. SBI A. Plenty
D. PNB B. Scarcity of goods
er
497. How many approved share markets in In- C. More wants and less goods
dia?
D. All of the above
A. 34 504. Bilateral monopoly refers to the market sit-
gd
B. 38 uation of
C. 24 A. Two sellers, two buyers
D. 20 B. One seller and two buyers
an
498. An essential attribute of inflation is: C. Two sellers and one buyer
A. increase in prices D. One seller and one buyer
505. For international payments, the Indian cur-
B. fall in production
rency is linked to:
Ch
C. absence of black market A. American Dollar
D. presence of black market B. British Sterling
499. What are the main components of basic C. Gold Standard
social infrastructure of an economy?
A. Education, Industry and Agriculture
506. Free Trade refers to
n
B. Education, Health and Civil amenities A. Free movement of goods from one coun-
C. Transport, Health and Banks try to another
ya
D. Industry, Trade and Transport B. Movement of goods free of cost

500. The expenses on advertising is called C. Unrestricted exchange of goods and ser-
vice
A. Implicit cost
a
D. Trade free of duty

B. Surplus cost
507. When was decimal coinage introduced in
ar
C. Fixed cost India? [CDS 2005]

D. Selling cost A. 1950
501. One of the features of a free market econ-
N
B. 1947
omy is
C. 1957
A. Active state intervention
D. 1960
B. Public ownership of factors of produc- 508. Which of the following are the Scheduled
tion Banks?
C. Rationing and price control A. Regional Rural Development Banks
D. Consumer’s sovereignty B. Commercial Banks
502. Which of the following taxes is not levied C. Cooperative Banks
by the Union Government?
D. All the above
53
509. Which among the following is not a Bret- 514. A steady increase in the general level of
ton Woods Institution? prices as a result of excessive increase in
aggregate demand as compared to aggregate
A. None of these
supply is termed as: [CDS 1999]
B. International Monetary Fund (IMF)
A. demand-pull inflation
C. World Bank
B. cost-push inflation
D. Organization of Economic Cooperation
and Development (OECD) C. stagflation
510. Which of the following would not consti- D. structural inflation
tute an economic activity in Economics?
515. In the last one decade, which one among
A. A teacher teaching students in his col- the following sectors has attracted the high-
lege est foreign direct investment inflows into
am
B. A teacher teaching students in a coach- India?
ing institute A. Services sector
C. A teacher teaching his own daughter at B. Chemicals other than fertilizers
home
C. Telecommunication
D. A teacher teaching students Under Sarva
Shiksha Abhiyan Scheme
eR D. Food processing
511. The prices at which the government pur- 516. Which one of the following is not a method
chases food grains for maintaining the pub- of measurement of National Income?
lic distribution system and for building up
A. Value Added Method
buffer stocks are known as:
re
B. Income Method
A. Minimum Support Prices
C. Investment Method
B. Procurement Prices
D. Expenditure Method
Sh
C. Issue Prices
D. Ceiling Prices 517. Which of the following is deducted from
GNP to arrive at NNP?
512. Which of the following was formed to sug-
gest means for eradicating black money? A. Depreciation
[I.Tax 1992] B. Interest
i
A. Finance Commission
C. Tax
Ja
B. Sarkaria Commission
D. Subsidy
C. Shah Commission
518. A "closed economy" is an economy in
D. Chelliah Committee which [CSAT 2011]
513. Which of the following factors contributes A. deficit financing takes place
to an inflationary trend?
B. the money supply is fully controlled
A. 15% fall in production of industrial
goods C. only exports take place
B. 15% increase in prices of agricultural D. neither exports nor imports take place
products
519. As per the TRIPS Agreement- 1994, a
C. 15% increase in supply of money in the good originating from a region with specific
market character quality reputation is covered to be
protected under the IPR as
D. none of these
A. Patent A. Maruti Udyog Limited

B. Trademark B. The Indian Oil Corporation
C. Trade secret C. Hindustan Antibiotics Ltd.
D. GI (Geographical Indicator) D. Bharat Aluminium Ltd.
520. Which one of the following is not a ’canon 526. Who wrote the book ’Planned Economy
of taxation’ according to Adam Smith? for India’?
A. Canon of certainty A. Sardar Vallabhbhai Patel
er
B. Canon of simplicity B. M. Visvesvaraya
C. Canon of convenience C. Jawaharlal Nehru
gd
D. Canon of economy D. Mahatma Gandhi
521. Which of the following industries was 527. To prevent recurrence of scams in Indian
started first in India? Capital Market, the Government has as-
A. Cotton signed regulatory powers to: [IAS 1995]
an
B. Paper A. SBI
C. Tea B. RBI
D. Jute C. SEBI
Ch
522. What type of products, does CACP recom- D. ICICI
mend minimum support price for?
528. Bombay High Oil mine is located in the
A. Industrial products state of
B. Agricultural products A. Orissa
C. Pharmaceutical products
n
B. Gujarat
D. None of the above C. Maharashtra
ya
523. Which one of the following is not an objec- D. Andhra Pradesh

tive of Fiscal Policy in India?
529. The central banking functions in India are
A. Full Employment performed by the: [CPO AC 2003]
a
B. Price Stability A. State Bank of India

C. Equitable Distribution of Wealth and In- B. Central Bank
ar
comes
D. Regulation of International Trade
D. Both b. and c.
524. A crossed cheque is one, which can be en-
N
cashed only: [IFS 1991] 530. Kisan Credit Card scheme was introduced
in
A. through a bank
A. 1991
B. by the drawee
B. 1996
C. at the State Bank of India
C. 1998
D. after it has been transferred to another
person D. 2000
525. Which of the following is an example of 531. One of the objectives of Indus trial Licens-
Joint-Sector enterprise in India? ing Policy in India was to ensure:
55
A. Creation of adequate employment oppor- A. More than aggregate demand

tunities B. Less than aggregate demand
B. Free flow of foreign capital in Indian in- C. Equal to aggregate demand
dustries
D. None of these
C. Use-of modem technology 538. Theoretically trade between two countries
D. Balanced industrial development across takes place on account of
regions A. differences in costs
532. The Zero Base Budgeting in India was first B. scarcity of goods
experimented from:
C. comparative differences in costs
A. April, 1987
D. need for exports
B. April, 2000 539. M.S.Swaminathan committee was ap-
am
C. April, 1991 pointed on
D. None of these A. Bank Frauds
533. The four factors of production are B. Public Welfare
A. Land, labour, capital, organization eR C. Employment Opportunities and Fical

Transparency
B. Land, electricity, water, labour
D. National Income
C. Labour, capital, land, rainfall 540. Economic profit or normal profit is the
D. Labour, climate, land, tools same as:
534. In India, one-rupee coins and notes and A. Optimum profit
re
subsidiary coins are issued by B. Accounting profit
A. the Reserve Bank of India C. Maximum profit
Sh
B. the Central Government D. Net profit

C. the State Bank of India 541. Which one of the following is not related
to United Nations? [IAS 2010]
D. the Unit Trust of India
A. International Finance Corporation
535. When there is one buyer and many sellers
then that situation is called B. Multilateral Investment Guarantee
i
Agency
A. Monopoly
Ja
C. International Centre for Settlement of

B. Single buyer right Investment Disputes
C. Downright D. Bank for International Settlements
D. Double buyers right 542. The difference between visible exports and
visible imports is defined as
536. The tax levied on gross sales revenue from
business transactions is called A. Balance of trade
A. Turnover Tax B. Balance of payment
B. Sales Tax C. Balanced terms of trade
C. Capital Gains Tax D. Gains from trade

543. Which of the following Mahatma Gandhi
D. Corporation Tax series of currency notes issued by the RBI
537. Inflation occurs when aggregate supply is has "ecology" depicted on it?
A. Rs.500 A. Public Accounts Committee

B. Rs.100 B. Union Ministry of Finance
C. Rs.50 C. Finance Commission
D. Rs.5 D. Inter-State Council

550. The biggest commercial bank in India is
544. Rolling plan was designed for the period:
[IAS 2003] A. RBI
A. 1978-83 B. SBI
er
B. 1980-85 C. IDBI
C. 1985-90 D. Exim Bank of India

551. What is ’AGMARK?
gd
D. 1974-97
A. It is a marketing seal issued on the
545. The demand curve for a Giffen good is graded agricultural commodity
A. upward rising B. It stands for agricultural marketing
an
B. downward falling C. It represents agricultural management
C. parallel to the quantity axis and regulation
D. parallel to the price axis D. None of these

552. Payment of water charges by the fanners to
Ch
546. ’Gresham’s Law’ in Economics relates to
the government represents
A. Supply and demand A. intermediate consumption
B. Circulation of currency B. final consumption
C. Consumption of supply C. fixed investment
D. Distribution of goods and services
n
D. inventory investment
547. Which one of the following Public Sector 553. In a free enterprise economy, resource allo-
cation is determined by
ya
banks’ emblem figures a dog and the words

’faithful, friendly’ in it? [CDS 2010] A. The pattern of consumers’ spending
A. Punjab National Bank B. The wealth of the entrepreneurs
B. Syndicate Bank C. Decision of the Government
a
C. Oriental Bank of Commerce D. The traditional employment of factors

ar
D. State Bank of India 554. In Economics, production means
548. Credit Authorisation Scheme was intro- A. Manufacturing

duced in B. Making
N
A. 1962 C. Creating utility

B. 1960 D. Farming
555. The most distinguishing feature of
C. 1965
oligopoly is
D. 1970
A. number of firms
549. Which authority recommends the princi-
B. interdependence
ples governing the grants-in-aid of the rev-
enues of the states out of the Consolidated C. negligible influence on price
Fund of India? D. price leadership
57
556. Stock Exchanges play, role in an economy 561. Which of the following state is the leading
which may be termed as [UBI PO 2010] producer of Felspar?
A. hardly useful A. Karnataka
B. useful but need strict regulation B. Maharashtra
C. harmful to proper capital markets C. Kerala
D. a gambling-where many investors get ru- D. Rajasthan
ined
562. Which one among the following is not a
557. What does National Income mean? clause of World Trade Organization? [CDS
A. The total value of all goods and services 2012]
produced in the country during a period of A. Most favoured nation. treatment
one year
am
B. Lowering trade barriers with negotia-
B. The total value of all stocks and shares tions
in the country during a period of one year
C. Providing financial support to the coun-
C. The total value of all capital goods pro-
tries having deficit balance of payments
duced in the country during a period of one
year D. Discouraging unfair trade practices such
D. The total value of all consumer goods
eR as antidumping and export subsidies
produced in the country during a period of 563. When there is an official change in the ex-
one year change rate of domestic currency, then it is
called:
558. Which of the following can be used for
checking inflation temporarily? A. Appreciation
re
A. Increase in wages B. Depreciation
B. Decrease in money supply C. Revaluation
Sh
C. Decrease in taxes D. Deflation

D. None of these 564. The RBI has regional offices at various
559. Gross Domestic Product is defined as the places. At which of the following places
value of all it does not have an office? [RBI Grade B
Officer 2011]
A. Goods produced in an economy, in a year
i
A. Kota
Ja
B. Goods and services produced in an econ- B. Nagpur

omy in a year C. Lucknow
C. Final goods produced in an economy in D. Panaji
a year
565. Net National Product of a country is
D. Final goods and services produced in an
economy in a year A. GDP minus depreciation allowances
560. The Annapurna Scheme was implemented B. GDP plus net income from abroad
in the year
C. GNP minus net income from abroad
A. 1998
D. GNP minus depreciation allowances
B. 1996
566. While determining income the expenditure
C. 1999 on which of the following items is not con-
sidered as investment?
D. 2000
A. Construction of factory 572. What was the period of Ninth Five Year
Plan?
B. Computer
A. 1996-97 to 2002-03
C. Increase in the stock of unsold articles
B. 1995-96 to 2000-01
D. Stock and share in joint stock company
567. The deputy chairman of the Planning Com- C. 1997-98 to 2001-02
mission: [UP PCS 1994] D. 1998-99 to 2003-04
A. is the Planning Minister 573. Which of the following sets belongs to Cen-
er
tral tax?
B. is the Prime Minister
A. Excise duty, Sales tax and Custom duty
C. holds the rank of a cabinet minister
B. Excise duty, Custom duty and Income
gd
D. is an economist of repute
tax
568. Dadabhai Naoroji theorised on the drain of
wealth from India in his book: C. Income, tax, Custom duty and House tax
A. Poverty under British Rule in India
an
D. Custom duty, Entertainment, tax and In-
B. Poverty in British Rule in India come tax
C. Poverty and Un-British Rule in India 574. The International Development Associa-
D. Poverty of Economic Drain in British tion, a lending agency, is administered by
Ch
India the [IAS 2010]
569. The exports of India: A. International Fund for Agricultural De-
velopment
A. are spread over several commodity
groups B. International Bank for Reconstruction
and Development
B. are confined to a few items
n
C. United Nations Development Pro-

C. have not shown much of a change since
gramme
1960-61
ya
D. United Nations Industrial Development

D. comprise mainly of agro-based products
Organization
575. Economic rent does not arise when the sup-
570. ’Law of demand’ implies that when there
ply of a factor unit is
is excess demand, for a commodity, then
a
A. Perfectly inelastic
A. price of the commodity falls
ar
B. Perfectly elastic
B. price of the commodity remains same
C. Relatively elastic
C. price of the commodity rises
D. Relatively inelastic
N
D. quantity demanded of the commodity

falls 576. If the price of an inferior good falls, its
demand: [CPO SI 2003]
571. Elasticity of demand measures the respon-
siveness of the quantity demanded of a A. falls
goods to a B. rises
A. Change in the price of the goods C. remains constant
B. Change in the price of substitutes D. can be any of the above
C. Change in the price of the complements 577. Banks in India were nationalized for the
D. Change in the price of joint products first time in the year-
59
A. 1950 A. The same

B. 1960 B. Increases
C. 1969 C. Decreases
D. 1979 D. Increases or decreases proportionately
578. Indirect taxes by nature are 584. The difference between the price the con-
sumer is prepared to pay for a commod-
A. Digressive
ity and the price which he actually pays is
B. Regressive called
C. Progressive A. Consumer’s Surplus
D. Proportional B. Producer’s Surplus
579. The sale proceeds of Government Bonds
am
C. Landlord’s Surplus
come under the budget head of
D. Worker’s Surplus
A. Revenue Receipts
585. Purchasing Power Parity theory is related
B. Current Expenditure with
C. Capital Outlay eR A. Interest rate
D. Capital Receipts B. Bank rate
580. India’s wage policy is based on: [Railways C. Wage rate
1994]
D. Exchange rate
A. cost of living
586. VAT is alternate of:
re
B. standard of living
A. central tax
C. productivity
B. state tax
Sh

C. both a. and b.
581. PIIGS is the group of nations falling un-
der..... [RBI Grade B Officer 2011] D. neither a. nor b.
587. Swarn Jayanti Gram Swa-Rozgar Yojna
A. Asia Pacific
came into being in: [UPPCS 2002]
B. Euro zone
i
A. April 1997
C. SAARC
Ja
B. April 1995
D. NATO
C. April 1999
582. The demand curve shows that price and
quantity demanded are D. July 2001
588. India had a plan holiday: [CPO AC 2003]
A. Directly related only
A. after the drought of 1966
B. Directly proportional and also directly
related B. after the China-India War of 1962
C. Inversely proportional and also inversely C. after the liberation of Bangladesh in
related 1971
D. Inversely related only D. after the India-Pakistan War in 1965
583. In a period of inflation and price rises the 589. India’s oldest iron and steel plant is: [Intel-
supply of money remains ligence Bureau 1991]
A. TISCO at Burnpur 595. The effects of inflation on the price com-

petitiveness of a country’s products may be
B. TISCO at Jamshedpur
offset by:
C. Durgapur Iron and Steel Plant
A. “exports of goods”
D. Rourkela Iron and Steel Plant
B. “An appreciation of the currency”
590. What is the period of Eleventh Five Year
C. “A revaluation of the currency”
Plan?
D. “Lower inflation abroad”
A. 2007-08 to 2011-12
er
596. In which market structure is the demand
B. 2002-05 to 2008-09 curve of the market represented by the de-
C. 2004-06 to 2009-11 mand curve of the firm?
gd
D. 2005-07 to 2008-10 A. Monopoly
591. Devaluation of money means: B. Oligopoly

C. Duopoly
A. decrease in the internal value of money
D. Perfect Competition
an
B. decrease in the external value of money
597. Government takes ’ways and means ad-
C. decrease in both internal and external vances’ from
value of money
A. RBI
D. the government takes back currency
Ch
B. IDBI
notes of any denominations
592. In India, the service tax was first intro- C. SBI
duced in the year: [CDS 2001] D. ICICI
A. 1996 598. Of the following land uses, which is re-
stricted to Special Economic Zones?
B. 1998
n
A. Educational Institutions
C. 1994
B. Free trade Centres
ya
D. 1992
C. Marketing Centres
593. The Government of India made it obliga-
tory on the part of all commercial banks that D. Information Technology Companies
they should give some cash amount while 599. To know whether the rich are getting richer
a
purchasing Government bonds. What would and the poor getting poorer, it is necessary
you call this? to compare; [IAS 1994]
ar
A. Statutory Liquidity Ratio A. the availability of foodgrains among two

sets of people, one rich and the other poor,
B. Cash Reserve Ratio over different periods of time
N
C. Minimum Reserve Ratio B. the distribution of income of an identical

D. Floating Reserve Ratio set of income recipients in different periods
of time
594. Kalahandi Bauxite mine is located in the
state of C. the wholesale price index over different
periods of time for different regions
A. Madhya Pradesh
D. the distribution of income of different
B. Tamil Nadu sets of income recipients at a point of time
C. Orissa 600. Which of the following is not part of state
tax?
D. Karnataka
61
A. Entertainment tax A. Net National Product at market price

B. Land revenue B. Net National Product at factor cost
C. Sales and purchase of newspapers C. Net Domestic Product al market price
D. Stamp duty other than financial docu- D. Net domestic Product at factor cost
ments 607. With reference to the Government of In-
601. In equilibrium, a perfectly competitive firm dia’s various programmes, what is Nirmal
will equate Gram Puraskar? [IAS 2006]
A. marginal social cost with marginal social A. It is an incentive scheme of scholarships
benefit for the single girl child in families in vil-
lages.
B. market supply with market demand
B. It is an incentive scheme of scholarships
C. marginal profit with marginal cost
am
for female sportspersons from villages who
D. marginal revenue with marginal cost represent their states in any game.
602. Who was the first Deputy Chairman of C. It is an incentive scheme for schools in
Planning Commission of India? the villages for computer education.
A. Dr.Rajendra Prasad D. It is an incentive scheme Panchayati Raj
B. Shri Jawaharlal Nehru
C. Shri V.T.Krishnamachari
eR institutions.
608. The total number of nationalized banks in
India is
D. Shri C.Rajagopalachari
A. 14
603. The Report of Vijay Kelkar Committee re-
re
lates to B. 19
A. Trade Reforms C. 21
B. Centre-State Financial Relations D. 30
Sh
C. Disinvestment in Public Sector Enter- 609. The best means of saving during inflation
prises is to keep:
D. Tax Reforms A. Government Bonds

604. Which of the followin state is in the second B. money
place in the production of Manganese Ore?
i
C. equity
Ja
A. Madhya Pradesh D. time deposits with Banks

B. Karnataka 610. A tax is characterized by horizontal equity
C. Andhra Pradesh if its liability is
D. Odisha A. Proportional to the income of tax payers

605. In Economics the ’Utility’ and ’Usefulness’
have B. Similar for tax payers in similar circum-
stances
A. Same meaning
C. Proportional to the expenditure of tax
B. Different meaning
payers
C. Opposite meaning
D. The same for every tax payer
D. None of the above 611. Merchant Banking is an institution which
606. National Income is the provides finances to:
A. Domestic whole sale trade A. horizontal to x-axis

B. International trade among countries B. negatively sloped
C. Domestic retail trade among C. positively sloped
D. International aid agencies D. U - shaped

618. Who propounded the Innovation theory’ of
612. In which of the following industries is the
profits?
maximum number of women employed in
India? [CDS 1993] A. J.A. Schumpeter
er
A. Textile B. P.A. Samuelson
B. Jute C. Alfred Marshall

D. David Ricardo
gd
C. Tea
619. Temporary tax levied to obtain additional
D. Coal revenue is called:
613. Investment in public works is known as: A. cess
an
A. revenue expenditure B. rate
B. capital expenditure C. fee
C. current expenditure D. surcharge
Ch
D. either a. or b. 620. Which of the following is associated with
CENVAT?
614. What does ECS in banking transactions
stand for? A. Gift Tax
A. Excess Credit Supervisor B. Wealth Tax

C. Income Tax
B. Extra Cash Status
n
D. Indirect Tax
C. Exchange Clearing Standard
621. Which of the following schemes launched
ya
D. Electronic Clearing Service by the Govt. of India aims at enhancing

615. A want becomes a demand only when it is the livelihood security of the people in ru-
backed by the ral areas by guaranteeing hundred days of
employment in a financial year to a rural
a
A. Ability to purchase household whose adult members volunteer

B. Necessity to buy to do unskilled manual work? [RBI Grade
ar
B Officer 2011]
C. Desire to buy
A. Pradhan Mantri Gram Sadak Yojana
D. Utility of the product
B. MNREGA
N

C. Kutir Jyoti Scheme
producer of Laterite?
D. ASHA
A. Andhra Pradesh
622. In calculating National Income which of
B. Madhya Pradesh the following is included?
C. Utter Pradesh A. Services of housewives
D. Karnataka B. Pensions
617. Demand curve of a firm under perfect com- C. Income of smugglers
petition is:
D. Income of watchmen
63
623. Who among the following has suggested A. Lord Warren Hastings
tax on expenditure?
B. Lord Canning
A. Dalton
C. Lord Curzon
B. Kaldor
D. Lord Bentink
C. Musgrave 629. Which of the following is at the apex of
D. Gautam Mathur Industrial Finance in India? [UDC 1995]
624. Which of the following state is in the sec- A. Industrial Finance Corporation
ond place in the production of Quartz?
A. Andhra Pradesh
C. Industrial Development Bank of India
B. Jarkhand
D. Industrial Credit and Investment Corpo-
am
C. Chattisgarh ration of India
D. Rajasthan 630. In terms of economy, the visit by for-
625. The rate of growth of per capita income is eign nationals to witness the XIX Common
equal to: Wealth Games in India amounted to [CSAT
2011]
A. Growth in national income divided by
the increase in population
B. Rate of growth of national income di-
eR A. Import
B. Export
vided by the rate of growth of population C. Production
D. Consumption
re
C. Rate of growth of national income minus
631. During which Five Year Plan was the total
the rate of growth of population
expenditure on agriculture the highest?
D. Rate of growth of national income
A. Second Five Year Plan
Sh
626. Nagpur Manganese mine is located in the

state of B. First Five Year Plan
A. Maharashtra C. Third Five Year Plan
B. West Bengal D. Fourth Five Year Plan

632. A rolling plan was a plan for:
i
C. Jharkhand
A. three years
Ja
D. Andhra Pradesh
627. Capital output ratio of a commodity mea- B. one year
sures C. five years
A. its per unit cost of production D. year to year basis
B. the amount of capital in-vested per unit 633. Which one of the following statements re-
of output garding the levying, collecting and distribu-
C. the ratio of capital depreciation to quan- tion of Income Tax is correct? [IAS 1999]
tity of output A. The Union levies, collects and dis-
D. the ratio of working capital employed to tributes the proceeds of income tax between
quantity of output itself and the states
628. The Viceroy who introduced cooperative B. The Union levies, collects and keeps all
society system in India? the proceeds of income tax to itself
C. The Union levies and collects the tax but A. Lower cash reserve ratio
all the proceeds are distributed among the B. Raise discount rates
states
C. Sell government securities
D. Only the surcharge levied on income tax
is shared between the Union and the States D. All of the above
640. The Government has renamed NREGA
634. Those payments which the firms make to
scheme and the name associated with the
outsiders for their goods and services are
scheme is that of
called
A. Rajiv Gandhi
er
A. Real costs
B. Jawahar Lal Nehru
B. Economic costs
C. Mahatma Gandhi
C. Explicit costs
gd
D. Indira Gandhi
D. Implicit costs
641. State Bank of India was established on
635. Gilt-edged market means
A. May 2, 1951
A. market of government securities
an
B. June 21, 1952
B. bullion market
C. July 1, 1955
C. market of guns D. August 12, 1956
D. market of pure metals 642. The system of value added taxation is ap-
Ch
636. Tiwari committee was appointed on plicable to:
A. Introduction of Sica A. excise duties
B. Public Sector Disinvestment B. income tax
C. Industrial Sickness C. estate duty

n
D. Sugar industry D. taxes on agricultural income

643. Kinked demand curve is a feature of
637. The opportunity cost of a factor of produc-
ya
tion is A. Monopoly
A. What it is earning in present use B. Oligopoly
B. What it can earn in the long period C. Monopsony

a
C. What has to be paid to retain it in its D. Duopoly

present use 644. The fish catch by Indian fishermen in the
ar
international waters are part of the GDP of

D. What it can earn in some other use
A. Sri Lanka
638. Stagflation refers to a situation which is
characterized by B. India and Sri Lanka
N
A. Stagnant employment and deflation C. India
B. Deflation and rising unemployment D. India and Indonesia

645. Excise duty on a commodity is payable
C. Inflation and rising employment
with reference to its
D. Inflation and rising unemployment
A. Production
639. If the Central Bank wants to encourage
B. Production and sale
an increase in the supply of money and de-
crease in the cost of borrowing money, it C. Production and transportation
should D. Production, transportation and sale
65
646. Which of the following established Oil Re- 652. Who is the present Governor of RBI?
finery at Bhatinda? A. Rangarajan
A. Reliance B. Y.B. Reddy
B. HPCL C. Ahluwalia
C. HAL D. Dr. Manmohan Singh
D. BHEL 653. Which is the first Public Sector Corpora-
tion of independent India?
647. Which of the following are referred to as
the developed economies? A. Hindustan Steel Corporation, Bhilai
A. Countries earning huge industrial profits B. State Trading Corporation of India
C. Food Corporation of India
B. Countries proficient in trade and export
am
D. Damodar Valley Corporation
C. Countries having large per capita income 654. When the productive capacity of the eco-
nomic system of a State is inadequate to
create sufficient number of jobs, it is called
D. Countries advanced in technology [CDS 2012]
648. L.K. Jha committee was appointed on eRA. structural unemployment
A. National Income B. seasonal unemployment
B. Introduction of MODVAT C. disguised unemployment
C. Lone System D. cyclical unemployment
D. Employment Opportunities and Fical 655. An increase in aggregate demand is more
re
Transparency likely to lead to demand-pull inflation if:
649. Beyond a certain point deficit financing A. Aggregate supply is perfectly elastic
will certainly lead to B. Aggregate supply is unit elastic
Sh
A. inflation C. Aggregate supply is relatively elastic

B. deflation D. Aggregate supply is perfectly inelastic.
C. recession 656. In which of the Five Year Plans, prefer-
ence was given to the weaker sections of the
D. economic stagnation
society?
i
650. A holding which will yield the farmers at

A. Third
Ja
least a subsistence is known as

B. Second
A. Optimum holding
C. Fourth
B. Marginal holding
D. Fifth
C. Economic holding
657. Which amidst the following banks was re-
D. Subsistence holding cently converted to a "Universal Bank”?
651. In a highly developed country the relative A. Corporation Bank
contribution of agriculture to GDP is
B. Bank of Baroda
A. Relatively high C. IDBI Bank
B. Relatively low D. Canara Bank
C. The same as that of other sectors 658. National Planning Council was established
in
D. Zero
A. 1958 A. Planning Commission

B. 1964 B. Agricultural Costs and Prices Commis-
C. 1965 sion
D. 1971 C. Agricultural Price Commission

659. Demand for complementary goods is D. National Marketing Commission
known as 665. The main aim of Fifth Five Year Plan was
A. Joint demand A. Social Justice and Equality
er
B. Derived demand B. Poverty Eradication and self reliance
C. Direct demand
C. Agriculture
D. Cross demand
gd
D. Basic and Heavy industries
660. Which of the following authority sanctions
foreign exchange for the import of goods? 666. Which of the following state is the leading
[UP PCS 2011] producer of Pyrophyllite?
A. Madhya Pradesh
an
A. Any Nationalised Bank
B. Exchange Bank B. Rajasthan
C. Reserve Bank of India C. Andhra Pradesh

Ch
D. Ministry of Finance D. Chattiesgarh
661. Rupee was devalued by what percent in 667. Bull and bear are related to which commer-
July 1991? [MP PCS 1990] cial activity?
A. 20 A. Banking
B. 18 B. E-commerce
n
C. 22 C. International trade
D. 25 D. Stock market
ya
662. What is dual pricing? 668. What is the animal on the insignia of the
A. Wholesale price and Retail pricing RBI?
B. Pricing by agents and Pricing by retailers A. Lion
a
B. Tiger
C. Price fixed by Government and Price in
ar
C. Panther
open market
D. Elephant
D. Daily prices and Weekly prices
669. Per capita income =
N
663. Corporation tax is a tax imposed on

A. the net incomes of the companies A. (Net National Product) (Total Popula-
tion)
B. the corporate properties
B. (Total Population) (National Income)
C. the utilities provided by the corporation
C. (Gross National Product) (Total Popula-
D. tax imposed by the corporation on indi-
tion)
vidual properties
664. The Commission in India dealing with min- D. (National Income) (Total Population)
imum support price, procurement price, etc 670. "Interest is a reward for parting with liquid-
in connection with agricultural goods is the ity’ is according to
67
A. Keynes C. It would discourage black market trans-

B. Marshall actions
C. Haberler D. The RBI will be a direct player now

rather than being an indirect one
D. Ohlin
676. Which of the following taxes are levied and
671. Which one of the following currencies has collected by the centre but their net proceeds
the highest value in terms of rupee? are wholly transferred to states?
A. Pound A. Expenditure Tax and Gift Tax
B. Dollar B. Additional Duties of Excise in lieu of
C. Euro Sales Tax
D. Saudi Rial C. Stamps and Registration
am
672. National Income is generated from: D. Taxes on Advertisement
A. Any money-making activity 677. Compared to the rich the poor save
B. Any laborious activity A. A larger part of their income
C. Any profit-making activity B. An equal part of their income
D. Any productive activity
673. The relationship between the value of
eR C. A smaller part of their income
D. All of their incomes
money and the price level in an economy 678. Reserve Bank of India was established on
is
A. April 1, 1935
A. Direct
B. April 12, 1932
re
B. Inverse
C. May 2, 1943
C. Proportional
D. November 13, 1941
D. Stable
Sh
679. BCCI is
674. An increase in per capital income is not
an indication of an increase in the economic A. An International Agricultural Organisa-
welfare of the people tion
A. When such increase is the result of an B. An International Industrial Organisation

increased production of comforts
i
B. When such increase is the result of an C. International Police Organisation

Ja
increase in agricultural production D. An International Banking Organisation

C. When it is the result of an increase in the 680. The Govt. of India does not provide any
production of industrial goods direct financial assistance to which of the
following schemes? [SBI Associates Clerk
D. When such increase is the result of in-
2011]
creased production of intoxicants
675. Which of the following is incorrect about A. Mahatma Gandhi National Rural Em-
convertibility? ployment Guarantee scheme
A. The exchange rate’ would indicate the B. Rural Health Mission

strength of the economy C. Indira Aawas Yojana
B. The exchange rate should be determined D. Jeevan Sathi Yojana
by the forces of demand and supply of the 681. The 14 major banks were nationalized by
currency the Government on
A. June 19, 1967 A. 1955-56 to 1957-60

B. July 19, 1969 B. 1956-57 to 1960-61
C. May 21, 1962 C. 1954-55 to 1958-59
D. May 12, 1963 D. 1958-59 to 1962-64
682. Which of the following states ranks first
688. Kisan Credit Card Scheme was launched
in terms of the maximum number of agro-
in
based industries? [Bank PO 1993]
A. 1993
er
A. Gujarat
B. Punjab B. 1988
C. West Bengal C. 1990
gd
D. Kerala D. 1996
683. Bank rate is that rate on which- 689. The situation in which total revenue is
equal to total cost, is known as
A. Any bank lends money to an individual
an
B. State Bank of India gives loan to the ru- A. monopolistic competition
ral banks B. equilibrium level of output
C. Central Bank of Country lends money to C. break-even point
the commercial banks
Ch
D. perfect competition
D. Rural bank gives loan to cooperative so-
cieties 690. The demand for necessities is
684. Inflation can be contained by: A. Elastic
A. surplus budget B. Perfectly inelastic
B. increase in taxation
n
C. Inelastic
C. reduction in public expenditure D. Perfectly elastic
ya
D. all the above 691. A Transfer Income’ is an

685. If the main objective of the government is
A. Income which is not produced by any
to raise revenue, it should tax commodities
production process
with
a
B. Income taken away from one person and

A. High elasticity of demand
given over to another
ar
B. Low elasticity of supply

C. Unearned income
C. Low elasticity of demand
D. Earned income
D. High income elasticity of demand
N
692. A seller or buyer protects his business or

686. The total value of goods and services pro-
holdings from changing prices and takes ac-
duced in a country during a given period
tion against it. It is known as-
is
A. Defence
A. Disposable income
B. National income B. Betting
C. Per capita income C. Inter-trading
D. Net national income D. Mortgage

687. What is the Second Five Year Plan 693. Hard Currency is defined as currency:
69
A. which is used in times of war A. Extension and Contraction of Demand

B. which can hardly be used for interna- B. Increase and Decrease of Demand
tional transactions
C. Contraction of supply
C. which loses its value very fast D. Increase of supply
D. traded in foreign exchange market for 700. In which year the planning commission
which demand is persistently relative to the was set-up?
supply
A. 1950
694. According to the classical system, saving
is a function of B. 1951
A. Income C. 1952
B. The interest rate D. 1949
am
701. What is the purpose of the India Brand Eq-
C. The real wage
uity Fund?
D. The Price level
A. To promote in-bound tourism
695. India opted for ’Mixed Economy’ in:
B. To make ’Made in India’ a label of qual-
A. Framing of the Constitution eR ity
B. Second Five Year Plan C. To organize trade fairs
C. Industrial Policy of 1948 D. To provide venture capital to IT sector
D. None of the above 702. Under flexible exchange rate system, the
exchange rate is determined by
696. Total fixed cost curve is
re
A. The Central Bank of the country
A. Vertical
B. The forces of demand and supply in the
B. Horizontal
foreign exchange market
Sh
C. Positively Sloping
C. The price of gold
D. Negatively sloping D. The purchasing power of currencies
697. Which of the following combinations is 703. Which of the following are not fixed
correct? [IFS 1989] costs?
i
A. IDBI-Short term loans A. Rent on land

Ja
B. NABARD-Industrial Loans B. Municipal taxes

C. RBI-Long term finance C. Wages paid to workers
D. RRB-Agricultural finance D. Insurance charges
698. Which of the following is not viewed as 704. A tax Which is paid by the person on whom
national debt? the tax is incident is called a:
A. Life Insurance Policies A. indirect tax
B. Long-term Government Bonds B. local tax
C. National Savings Certificates C. direct tax
D. Provident Fund D. rate
699. Movement along the same demand curve 705. In short run, if a competitive firm in cuts
is known as losses, it will
A. Stop production A. Bear

B. Continue to produce as long as it can B. Bull
cover its variable costs C. Bison
C. Raise price of its product D. Boar
D. Go far advertising campaign 712. Globalization means
706. Tribal co-operative Marketing Develop- A. Integration of economy
ment Federation of India is established in
B. Integration of financial market
er
A. 1988
C. Integration of the domestic economy
B. 1985 with the world economy
C. 1986 D. Integration of the various sectors of econ-
gd
D. 1987 omy
707. The headquarters of IMF and World Bank 713. Bilaspur Bauxite mine is located in the
are located at: state of
an
A. Geneva and Montreal A. Rajasthan
B. Geneva and Vienna B. Gujarat
C. New York and Geneva C. Chhattisgarh

Ch
D. Jharkhand
D. Both Washington DC
714. ’The national income consists of a collec-
708. The study of factor pricing is alternatively
tion of goods and services reduced to com-
called the theory of
mon basis by being measured in terms of
A. Functional distribution money."- Who says this?
B. Personal distribution A. Samuelson
n
C. Income distribution B. Kuznets

ya
D. Wealth distribution C. Hicks

709. Price mechanism is a feature of D. Pigou
A. Capitalist economy 715. Which of the following mints undertakes
refining of gold for licensed gold dealers and
a
B. Barter economy
production of medals for defence services?
C. Mixed economy
ar
A. The Mumbai Mint

D. Socialist economy
B. The Hyderabad Mint
710. The Twelfth Finance Commission is
C. The Kolkata Mint
headed by
N

A. Y.B. Chavan
716. Priority Sector includes
B. Raja Chellaiah
A. Retail business
C. Kelkar
B. Agriculture
D. A.M. Khusro
C. Small Scale Industries
711. A speculator who enters into a purchase
transaction with a view to sell In the near D. All the above
future when the price would have risen is 717. Which of the following functions as a con-
called a troller of credit in India?
71
A. The Central Government A. Karnataka

B. The Reserve Bank of India B. Himachal Pradesh
C. The State Bank of India C. Goa
D. The Planning Commission D. Madhya Pradesh
718. Stagflation is a situation of 724. When was the decimal system of currency
introduced in India?
A. stagnation and deflation
A. 1950
B. stagnation and recession
B. 1948
C. stagnation and inflation
C. 1954
D. stagnation and recovery
D. 1957
am
719. Under perfect competition, the industry
does not have any excess capacity because 725. When was the Jawahar Rozgar Yojana
each firm produces at the minimum point on launched?
its A. 1985
A. long-run marginal cost, curve B. 1987
B. long-run average cost curve
C. long-run average variable cost curve
eR C. 1989
D. 1991
D. long-run average revenue curve 726. Perfect competition means
720. Devaluation usually causes the internal A. Large number of buyers and less sellers
re
prices to:
B. Large number of buyers and sellers
A. Fall
C. Large number of sellers and less buyers
B. Rise
Sh
D. None of these
C. Remain unchanged 727. Agricultural income tax is a source of rev-
D. None of the above enue to
721. If saving exceeds investment, the national A. Central Government

income will: B. State Government
i
A. fall C. Local Administration

Ja
B. rise D. Centre and State Governments

C. fluctuate 728. The States’ debt does not include:
D. remain constant A. loans from State Bank of India
722. Digboi Oil mine is located in the state of B. loans from the Central Government
A. Gujarat C. Provident Funds
B. Maharashtra D. treasury bills issued to international fi-
nancial institutions
C. Tamil Nadu
729. National income calculated at current
D. Assam
prices in India has shown a tendency to rise
723. Which of the following state is the leading at a faster rate than national income at con-
producer of Salt(Rock)? stant prices. This is because:
A. India’s population has been rising fast A. Price rises

B. General price level in the economy has B. Income rise
been rising rapidly C. Price falls
C. Statistically manipulations are employed D. Income falls
by the Planning
735. Engel’s Law states the relationship be-
D. Base year chosen is an abnormal year tween
730. An increase in injections into the economy A. quantity demanded and price of a com-
er
may lead to: modity
A. “An outward shift of aggregate demand B. quantity demanded and price of substi-
and cost-push inflation”; “unilateral transfer tutes
gd
made”
C. quantity demanded and tastes of the con-
B. “An outward shift of aggregate supply sumers
and demand-pull inflation”; “exports” D. quantity demanded and income of the
C. “An outward shift of aggregate demand consumers
an
and demand-pull inflation” 736. Devaluation of currency leads to
D. “unilateral transfer made”; “An outward A. expansion of export trade
shift of aggregate supply and cost-push in-
B. contraction of import trade
flation”
Ch
C. expansion of import substitution
731. An increase in costs will:
D. All of the above
A. Shift aggregate supply
737. Regional Rural Development Banks were
B. Shift aggregate demand established on
C. Reduce the natural rate of unemploy- A. july 3, 1970
n
ment
B. April 14, 1971
D. Increase the productivity of employees
ya
C. October 2, 1975
D. November 23, 1978
producer of Sulphur?
738. The acronym SRO, being used in the cap-
A. Kerala ital market for various market participants,
a
B. Chattiesgarh stands for which one of the following? [CDS

2008]
ar
C. Jarkhand
A. Self-Regulatory Organisations
D. Haryana
B. Small Revenue Operators
733. Which of the following Mahatma Gandhi
N
series of currency notes issued by the RBI C. Securities Roll-back Operators

has "ecology" depicted on it? [SSC Gradu- D. Securities Regulatory Organisations
ate 2003] 739. Effective demand depends on
A. Rs. 500 A. Capital-output ratio
B. Rs. 100 B. Output-capital ratio
C. Rs. 50 C. Total expenditure
D. Rs. 5 D. Supply price
734. For an inferior good, demand falls when 740. What is the Third Five Year Plan?
73
A. 1957-59 to 1962-64 C. Effect of change in demand of a com-

modity over the supply of its substitute
B. 1955-58 to 1960-62
C. 1959-60 to 1964-67
746. Ten rupee notes bear the signature of:
D. 1961-62 to 1965-66
A. President
741. The main source of revenue for a State Gov-
ernment in India is B. Finance Minister
C. Secretary, Ministry of Finance
A. Sales tax
D. Governor, Reserve Bank of India
B. Excise duty
747. Token privatization or deficit privatization
C. Income tax of public sector units occur when the gov-
D. Property tax ernment sells
am
742. Bank-rate is the rate at which A. 5% of shares
A. a commercial bank borrows loans from B. 10% of shares
some other commercial bank C. 15% of shares
B. the central bank borrows loans from the D. 20% of shares
Government
C. the commercial bank gives loans to the
public
eR
748. Surplus earned by a factor other than land
in the short period of referred to as
A. Economic rent
D. the central bank re-discounts the com- B. Net rent
mercial bills brought to it by the commercial
C. Quasi-rent
banks
re
D. Super-normal rent
743. Under the Constitution, the power to raise
and disburse public funds: 749. The addition to total cost by producing an
additional unit of output by a firm is called
Sh
A. has been vested in Union Government

A. Variable cost
B. has been divided between the Union and
B. Average cost
State Governments
C. Marginal cost
C. has been given to the Finance Commis-
sion D. Opportunity cost
i
D. has not been given to anyone 750. The main determinant of real wage is
Ja
744. Bread and butter, car and petrol are exam- A. extra earning
ples of goods which have B. nature of work
A. Composite demand C. promotion prospect
B. Joint demand D. purchasing power of money
C. Derived demand 751. In the budget figures of the Government of
India, fiscal deficit is
D. Autonomous demand
A. total expenditure - total receipts
745. The Law of Demand expresses
B. revenue expenditure- revenue receipts
A. Effect of change in price of a commodity
C. capital expenditure-capital receipts +
on its demand
market borrowings
B. Effect of change in demand of a com-
D. sum of budget deficit and Government’s
modity on its price
market borrowings and liabilities
752. The Draft of the Five Year Plans in India is 758. In India, which of the following have the
approved by the highest share in the disbursement of credit
to agriculture and allied activities? [CSAT
A. National Development Council
2011]
A. Cooperative Banks
C. National Productivity Council
B. Commercial Banks
D. Ministry of Finance C. Regional Rural Banks
753. Which of the following is the most impor-
D. Microfinance Institutions
er
tant domestic source of planned finance?
759. Floating Exchange Rate is also referred to
A. Balance of current revenue as
B. Profit from public sector units A. Flexible Exchange Rate
gd
C. Domestic private savings B. Fixed Exchange Rate
D. Additional taxation C. Real Exchange Rate
754. Singareni Coal mine is located in the state D. Controlled Exchange Rate
an
of 760. The food stocks that are built up during the
A. Maharashtra years of bumper harvest are called?
B. Orissa A. Capital stock
Ch
C. Gujarat B. Buffer stock
D. Andhra Pradesh C. Production stock

755. ’Marginal efficiency of capital’ is D. Grain stock
761. The main argument advanced in favour of
A. Expected rate of return on new invest-
small scale and cottage industries in India is
ment
n
that:
B. Expected rate of return of existing invest-
A. they require small capital investment
ment
ya
B. cost of production is low

C. Difference between rate of profit and rate
of interest C. they advance the goal of equitable distri-
bution of wealth
D. Value of output per unit of capital in-
a
vested D. they generate a large volume of employ-

ment
756. India earns maximum foreign exchange
ar
from the export of: 762. All of the goods which are scarce and lim-
ited in supply are called
A. garments
A. Luxury goods
N
B. jute
B. Expensive goods
C. gems and jewellery
C. Capital goods
D. cotton
D. Economic goods
757. A horizontal demand curve is 763. Capital Market Regulator is:
A. Relatively elastic A. NSE
B. Perfectly inelastic B. RBI
C. Perfectly elastic C. SEBI
D. Of unitary elasticity D. IRDA
75
764. State Bank of India was previously known A. April 1, 1952 to March 31, 1953
as:
B. April 1, 1951 to March 31, 1956
A. Imperial Bank of India
C. April 1, 1954 to March 31, 1957
B. Canara Bank
D. April 1, 1953 to March 31, 1958
C. Syndicate Bank 771. Which of the following is not true about
D. Co-operative Bank of India ’vote-on-account’? [Bank PO 1991]
765. The Government resorts to devaluation of A. It is a budget presented in the Parliament
its currency in order to promote to cover the deficit left by the last budget
A. national income B. It does not allow the Government to set
B. international goodwill for the economic policies of the new plan
which starts from April 1
am
C. exports
C. It prevents the Government from impos-
D. savings ing fresh taxes or withdrawing old one
766. What is meant by ’Underwriting’, the term
D. This allows the Government to withdraw
frequently used in financial sector? [Punjab
an amount for a period with the consent of
& Sindh Bank 2011]
eR Parliament
A. The Act of taking on a risk for a fee. 772. Which of the following is not true about
B. Under valuation of the assets. the Reserve Bank of India?
C. Giving a Guarantee that a loan will not A. It maintains the exchange value of the
become a bad loan. rupee
re
D. The act of permission to float an IPO. B. It regulates the currency and credit sys-
767. What is the period of Fourth Five Year tem of India
Plan? C. Foreign exchange reserves are kept by
Sh
A. 1965-67 to 1972-73 RBI
B. 1969-70 to 1973-74 D. One rupee notes and coins are issued by

RBI
C. 1967-69 to 1970-72
773. The national income of India is estimated
D. 1968-70 to 1971-75 mainly through: [CBI 1993]
i
768. Franchising is A. expenditure method alone

Ja
A. Not having to pay any fee B. production method alone

B. A form of licensing C. production and expenditure methods
C. Operating a business without a license D. production and income methods
D. Operating with less control 774. Per Capita income is maximum in which
769. New capital issue is placed in of the following states in India?
A. Secondary market A. Himachal Pradesh
B. Grey market B. Punjab
C. Primary market C. Gujarat
D. Black market D. Goa
770. What was the period of First Five Year 775. Voting rights in the IMF are distributed on
Plan? the basis of: [CDS 1993]
A. proportion to the share of the income of 781. Under increasing returns the supply curve
the country in the world income is
B. one country, one vote A. Positively sloped from left to right
C. proportion to contributions given by B. Negatively sloped from left to right
each country
C. Parallel to the quantity-axis
D. proportion to quota alloted to countries
from time to time D. Parallel to the price -axis
776. The annual record for all the monetary 782. Reserve Bank of India started the system
er
transactions of a country with other coun- of Ombudsman to resolve grievances of cus-
tries of the world is known as tomers in
A. Balance of trade A. 1994
gd
B. Balance of monetary-receipts B. 1995
C. Balance of payments C. 1996
D. Balance Sheet D. 1997
an
777. Omkar Goswami Committee was ap- 783. Over use of resource is called ’Tragedy of
pointed on Commons". It was propounded by:
A. Bank Frauds A. Garett Hardin
Ch
B. Industrial Sickness B. Seligman
C. Banking Reforms C. Adolph Wagner
D. Agriculture credit D. A.P Lernier
778. The Reserve Bank of India was national- 784. Which of the following is apex bank for
ized in the year industrial loans?
n
A. 1935
A. RBI
B. 1969
ya
B. NABARD
C. 1949
C. ICICI
D. 1980
D. IDBI
779. By which bill does the government make
a
arrangement for the collection of revenues 785. Which one of the following items is not
for a year? included in the current account of India’s
ar
Balance of Payments?
A. Finance Bill
A. Short-term commercial borrowings
B. Supplementary Budget
B. Non-monetary gold movements
N
C. Fiscal Budget
C. Investment income
D. Economic Bill
780. In India, the Public Sector is most domi- D. Transfer payments
nant in: [IAS 1993] 786. The rate of growth of the tertiary sector has
A. steel production been:
B. transport A. lower than the overall rate of growth of

the net domestic product
C. commercial banking
B. higher than the overall rate of growth of
D. organised term-lending financial institu- the net domestic product
tions
77
C. same as the overall rate of growth of the 792. Under Perfect Competition
net domestic product
A. Marginal Revenue is less than the Aver-
D. fluctuating when compared to growth of age Revenue
net domestic product
B. Average Revenue is less than the
787. The highest sector wise contribution to
Marginal Revenue
gross domestic saving comes from:
C. Average Revenue is equal to the
A. household sector
Marginal Revenue
B. private corporate sector
D. Average Revenue is more than the
C. public sector Marginal Revenue
D. cooperative sector 793. CENVAT is associated with:
A. rate of income tax
am
producer of Selenite?
A. Uttar Pradesh B. rate of indirect tax
B. Punjab C. rate of direct tax
C. Rajasthan D. none of the above
D. Kerala eR794. In the case of an inferior good, the income
789. Poverty in less developed countries is elasticity of demand is:
largely due to A. Zero
A. voluntary idleness
B. Negative
B. income inequality
C. Infinite
re
C. lack of cultural activities
D. Positive
D. lack of intelligence of the people
790. ’Devaluation’ means: [RRB 1992] 795. Raja Chellaih committee was appointed on
Sh
A. lowering of the value of one currency in A. Insurance sector Reforms

comparison of some foreign currency B. Tax Reforms
B. converting rupee into gold C. Bank Frauds
C. making rupee dealer in comparison to
D. Distribution of Plan Assistance among
some foreign currency
States
i
D. None of these
796. Development is: [CDS 1999]
Ja
791. The main difference between shares and

debentures is: A. synonymous with economic growth
A. debentures can only be issued after B. narrower than economic growth
shares C. wider than economic growth
B. shareholders receive dividend on shares
D. not related to economic growth
whereas debenture holders receive interest
on debentures 797. Which one of the following is NOT an ex-
ample of indirect tax?
C. debentures can be partly converted into
shares whereas shares cannot be converted A. Sales tax
into debentures
B. Excise duty
D. shareholders are the owners of the com-
C. Customs duty
pany whereas debenture holders are the cred-
itors of the company D. Expenditure tax
798. The marginal revenue of a monopolist is: A. Maintain price stability through creation
of buffer stocks
A. More than price
B. Protect the interests of both consumers
B. Equal to price
and poor farmers
C. Less than price C. Control the production of food grains
D. Less than marginal cost D. Reduce personal and regional inequality
799. Tooth paste is a product sold under: in the distribution
er
A. Monopolistic Competition 804. With which form of economy is the term
’Laissez-faire’ associated?
B. Perfect Competition
A. Capitalist economy
gd
C. Monopoly
B. Socialist economy
D. Duopoly
C. Mixed economy
800. In 1921, the Presidency Banks of Bengal,
D. Command economy
Madras and Bombay were nationalised to
an
give birth to: 805. Korba Coal mine is located in the state of
A. Syndicate Bank A. Gujarat
B. Punjab National Bank B. Orissa

Ch
C. Chhattisgarh
C. State Bank of India
D. Jharkhand
D. Punjab and Sindh Bank
806. The most powerful woman in business in
801. Which one of the following is not a feature India as rated by the "Fortune" for the year
of Limited Liability Partnership firm? [IAS 2012 is:
2010]
n
A. Prabha Parameswaran
A. Partners should be less than 20
B. Debjani Ghosh
ya
B. Partnership and management need not

be separate C. Anjali Bansal
C. Internal governance may be decided by D. Chanda Kochhar

mutual agreement among partners 807. The Employment Guarantee Scheme,
a
which is now an important component of

D. It is a corporate body with perpetual suc-
the NCMP, was first introduced in which
ar
cession
State?
802. Evaluating all the options to find out most
A. Kerala
suitable solution to business problems is
N
inter-displinary activities. It is called B. Maharashtra
A. Professional research C. Andhra Pradesh
B. Management research D. West Bangal

808. Who prepared the Fifth Five Year Plan?
C. Operational research
A. Mahalanobis
D. Commercial research
B. K. C. Panth
803. Which is not the objective of Public Pro-
curement and Distribution system followed C. Vaghela
by Indian Government?
D. D. D. Dhar
79
809. A favourable Balance of Trade of a country A. Prices of Debentures

implies that B. Commercial Paper
A. Imports are greater than Exports C. Land Prices
B. Exports are greater than Imports D. Whole sale Price Index
C. Both Imports and Exports are equal 816. Fiscal deficit in the budget means: [CDS
D. Rising Imports and Falling Exports 1999]
810. The Government of India derives its single A. Budgetary deficit plus the net borrow-
largest source of revenue from ings of the government
A. Direct Taxes B. Revenue deficit plus the net borrowings
of the government
B. Customs Duties
C. Capital deficit plus revenue deficit
C. Deficit Financing
am
D. Primary deficit minus capital deficit
D. Union Excise Duties
817. Taxation is a tool of
811. Open market operations of a Central Bank
are sale and purchase of: A. Monetary policy
A. foreign currencies B. Fiscal policy
B. corporate securities
C. trade bills
eR C. Price policy
D. Wage policy
818. Who was the chairman of National Income
D. government securities
Committee?
812. ’Next zone’ an information technology
SEZ is being established at A. V.K.R.V. Rao
re
A. Panki in Uttar Pradesh B. P. C. Mahalanobis
B. Panvel in Maharashtra C. D.R. Gadgil

Sh
C. Bangalore in Karnataka D. A.M. Khusro

819. Which plan gave emphasis on removal of
D. Secunderabad in Andhra Pradesh
poverty for the first time?
813. Inflation redistributes income and wealth
A. Fourth
in favour of:
B. Fifth
A. Pensioners
i
C. Sixth
Ja
B. Poor
D. Seventh
C. Middle class
820. National income refers to: [CPO SI 2002]
D. Rich
A. money value of stocks and shares of a
814. Which one of the following is not included
country during a year.
while estimating national income through
income method? B. money value of goods ’and services pro-
duced in a country during a year.
A. Rent
C. money value of capital goods produced
B. Mixed Incomes
by a country during a year.
C. Pension
D. money value of consumer goods pro-
D. Undistributed profits duced by a country during a year.
815. Which of the following is associated with 821. The per capita income has been low in In-
the index ’Residex’? dia because:
A. of population growth A. Consumer’ Surplus

B. of price rise B. Law of Demand
C. more people are in rural areas C. Law of Supply
D. of regional imbalances D. Keynes’s psychological law of consump-
tion
822. If the increase in demand is more than the
increase in supply, the price will 828. Long-term funds in the capital market can
be raised either by borrowing from certain
A. Remain the same institutions or through
er
B. Increase A. issue of note
C. Decrease B. taking loan from Government
gd
D. Fluctuate C. issue of securities
823. Under-writing refers to D. taking loan from foreign institutions
A. Underestimation 829. Which two of the following nationalized
banks have been merged as per the recom-
B. Underselling
an
mendation of the Narsimhan Committee?
C. Winding up the business [NDA 1995]
D. An act of insuring risk A. Central Bank of India and Corporation
Bank
824. Disinvestments is
Ch
B. New Bank of India and Bank of India
A. off loading of shares of privates compa-
nies to government C. Parur Bank of India and Bank of India
B. off loading of government Shares to pri- D. Punjab National Bank and New Bank of
vate companies India
830. It is prudent to determine the size of the
C. increase in investment
n
output when the industry is operating in the

D. closing down of business concerns stage of
ya
825. if the price of tea fails, demand for coffee A. Increasing returns
will
B. Constant returns
A. increase C. Diminishing returns
a
B. decrease D. Negative returns

C. remain same 831. Who among the following are not protected
ar
against inflation.? [Railways 1992]

D. None of these
826. Sellers market denotes a situation where: A. Salaried class
B. Industrial workers
N
A. commodities are available at competitive

rates C. Pensioners
B. demand exceeds supply D. Agricultural farmers
832. The main feature of a capitalist economy
C. supply exceeds demand
is
D. supply and demand are evenly balanced
A. Administered prices
B. Public ownership
827. The functional relationship between in-
come and consumption expenditure is ex- C. Economic planning
plained by D. Private ownership
81
833. Intensive Agriculture Area Programme 839. The business in Stock Markets and other
(IAAP) is introduced in securities markets is regulated
A. 1964-65 A. Securities and Exchange Board of India
B. 1967-68 B. Sole Trade and Exchange Bank of India
C. 1969-70 C. State and Exchange Bank of India
D. 1970-71 D. Stock Exchange of Bank of India
834. Who said, "Economics is the Science of 840. Which of the following is an inverted ’U’
Wealth"? shaped curve?
A. Robbins A. Average cost
B. J.S. Mill B. Marginal cost

C. Total cost
am
C. Adam Smith
D. Fixed cost
D. ’ Keynes
841. Which one of the following is a driving
835. In India, the first bank of limited liability
force influencing the industrial growth of an
managed by Indians and founded in 1881
economy? [Corporation’ Bank PO 2011]
was:
A. Hindustan Commercial Bank
B. Oudh Commercial Bank
eR A. Investment only
B. Economic Factors only
C. Innovation/Market Base only
C. Punjab National Bank
D. All of the above
D. Punjab and Sind Bank
842. Speculative demand for cash is determined
re
836. Who of the following was the author of the by
chapter on "Objectives of Planned Develop-
A. The rate of interest
ment" for the Third Five Year Plan? [IAS
2008] B. The level of income
Sh
A. C.D. Deshmukh C. The general price level

B. Morarji Desai D. The market conditions
843. Which of the following States has the high-
C. Jawaharlal Nehru
est number of slums as per the data recently
D. Lal Bahadur Shastri released by the Ministry of Housing and ’
i
837. When marginal utility is zero, the total util- Urban Poverty Alleviation?
Ja
ity is A. Uttar Pradesh

A. Minimum B. West Bengal
B. Increasing C. Maharashtra
C. Maximum D. Andhra Pradesh
D. Decreasing 844. Which of the following is not a direct tax?
838. When was the Reserve Bank of India taken A. Tax on wealth
over by the Government? [PCS 1994] B. Tax on income
A. 1945 C. Tax on expenditure
B. 1948 D. Tax on entertainment
C. 19S2 845. Credit Authorisation Scheme is a scheme
D. 1956 of
A. Qualitative credit control of RBI A. selection of labour force

B. Qualitative credit control of SBI B. location of capital works
C. Poverty eradication programme C. to manage resources for investment
D. Employment Guarantee Programme D. increase in infrastructure
846. Which is the best measure of economic 853. The gradation and standardization of agri-
growth of a country? cultural products are conducted through
A. GDP A. Food Corporation of India
er
B. GNP B. Directorate of Marketing and Inspection
C. Net revenue
C. Indian Standards Institution
D. None of these
gd
847. Devaluation makes import D. Central Statistical Organization
854. Which one of the following is not a quanti-
A. Competitive
tative credit control techniques?
B. Inelastic
an
A. Bank Rate
C. Cheaper
B. Cash Reserve Ratio
D. Dearer
C. Statutory Liquidity Ratio
848. Monopoly means
Ch
D. Increase of interest rate on saving de-
A. single buyer posit
B. many sellers 855. As per World Bank report in 2011 India is
C. single seller the
D. many buyers A. Fourth largest economy

B. Third largest economy
n
849. A Trade Policy consists of

A. Export-Import Policy C. Fifth largest economy
ya
B. Licensing Policy D. Sixth largest economy

C. Foreign Exchange Policy 856. Freeing the economy from all unnecessary
controls and regulations is referred to as
D. Balance of Payment Policy
a
A. Freedom
850. Bokaro Coal mine is located in the state of
B. Privatization
ar
A. Orissa
C. Liberalization
B. Jharkhand
D. Globalization
C. Maharashtra
N
857. The credit control methods adopted by the

D. West Bengal Reserve Bank are
851. The demand for labour is called
A. Qualitative controls
A. Market demand
B. Quantitative controls
B. Direct demand
C. Fixed controls
C. Derived demand
D. Quantitative controls and Qualitative
D. Factory demand controls
852. Which among the following has the least 858. Export and Import Bank of India (EXIM
possibility of globalization? Bank) established in
83
A. 1985 A. State Bank of Bikaner and Jaipur

B. 1986 B. Central Bank of India
C. 1982 C. State Bank of Hyderabad
D. 1990 D. State Bank of Patiala

865. Per capita income is equal to
859. National Development Council (NDC).
consists of A. National Income Total Population of the
country
A. Planning Commission members
B. National Income + Population
B. Chief Ministers of the States
C. National Income - Population
C. Governors of the States
D. National Income Population
D. Planning Commission members and
866. The marginal propensity to consume lies
am
Chief Ministers of the States
between
860. RBI does not transact the business of which
A. 0 to 1
State Government?
B. 0 to ∞
A. Nagaland
eR C. 1 to ∞
B. Jammu and Kashmir
D. ∞ to ∞
C. Punjab 867. The basic attribute of a formal organization
D. Assam is: [CPO AC 2003]
861. Success of 4th plan was obstructed by: A. esteem and prestige
B. roles and duties
re
A. war with Pakistan
B. poor monsoon C. dominance and supremacy
C. problem of Bengal refugees D. rules and regulations

Sh
868. ’Balanced Growth’ means:

D. All of the above
A. growth which brings about a balance be-
862. The receipts of which of the following
tween the public and private sectors
taxes duties are not shared with the States?
B. growth which brings about a balance be-
A. Tax on income except agriculture tween the rich and the poor
i
B. Corporation tax C. growth which brings about a balance be-

Ja
C. Surcharge on income tax tween the traditional and modern sector
D. Capital gain tax D. growth pattern on which simultaneous

investments are made in all the sectors of the
863. Which one of the following is not consid- economy, viz., Agriculture, Industry, Trans-
ered as an infrastructure investment? Invest- port, Communication, etc.
ment in a
869. Income and consumption are
A. Power project
A. Inversely related
B. Railways project B. Directly related
C. Telecommunication C. Partially related
D. Automobile industry D. Unrelated
864. All of the following are subsidiaries of the 870. What does the open market operation of
State Bank of India, except: the RBI mean?
A. Buying and selling shares A. poverty ratio

B. Auctioning of foreign exchange B. per capita income
C. Trading is securities C. national income
D. Transactions in gold D. unemployment rate
871. The Planning Commission of India was 877. Who is called the Father of Economics?
constituted in the year A. J.M. Keynes
A. 1942 B. Malthus
er
B. 1947 C. Ricardo
C. 1950 D. Adam Smith
gd
D. 1955 878. Human Development Index comprises lit-
eracy rates, life expectancey at birth and:
872. In the law of demand, the statement "Other [IAS 1997]
things remain constant" means
A. gross domestic product per head in the
A. Income of consumer should not change
an
US dollars
B. Price of other goods should not change B. gross domestic product per head at real
C. Taste of consumer should not change purchasing power
C. gross national product in US dollars
Ch
D. All of the above
873. If a good has negative income elasticity of D. national income per head in US dollars
demand, it is a rated in the Constitution of 879. The Nehru-Mahalanobis strategy of devel-
opment guided the planning practice in India
A. Giffen good from the [CDS 2012]
B. Normal good A. Fourth Five-Year Plan to the Eighth Five-
n
C. Superior good Year Plan
D. An inferior good B. First Five-Year Plan to the Sixth Five-

ya
Year Plan
874. The Issue Department of the RBI maintains
a ..... against printing of notes: C. Second Five-Year Plan to the Seventh
Five-Year Plan
A. Minimum Reserve System
a
D. First Five-Year Plan to the Eighth Five-

B. Proportional Reserve System Year Plan
ar
C. Proportional Gold Reserve System 880. National Income include:

D. Proportional Foreign Securities Reserve A. Financial help to earthquake victims
System B. Pocket money of a child
N
875. According to modem thinking, the law of

C. Winning of a lottery prize
diminishing returns applies to
D. Construction of a new house
A. Agriculture
881. Which part of separated UTI is under
B. Industry SEBl’s regulation?
C. Mining A. UTI-I
D. All fields of production B. UTI-II
876. The standard of living in a country is rep- C. Both the above
resented by its:
85
882. India’s progress has been reasonably satis- D. Reduces the purchasing power of a
factory in connection with: pound.
A. growth of per capita income 888. India has: [CDS 1992]
B. reduction in inequalities A. Gandhian economy
C. reduction of unemployment B. Socialistic economy

C. Mixed economy
D. growth of GNP
883. India is called a mixed economy because D. Free economy
of the existence of a. Public Sector b. Pri- 889. The Government appointed a Commit-
vate Sector c. Joint Sector d. Cooperative tee on disinvestment of shares in pub-
Sector lic enterprises under the chairmanship of
Dr.C.Rangarajan in
A. a, d
A. 1984
am
B. a, b
B. 1980
C. c, d
C. 1982
D. b, d
D. 1985
884. Which among the following is the regula-
890. In a country like India, why should an in-
eR
tory authority for giving clearance for Exter-
crease of direct taxes be preferred to an in-
nal Commercial borrowing?
crease in indirect taxes?
A. Foreign Investment Promotion Board
A. Direct taxes serve the end of Socialism
B. RBI by taking away the excessive wealth from
the rich
C. SEBI
re
B. Direct taxes involve the well-off sections
D. Foreign Investment Promotion Council
of the society while indirect taxes affect the
885. Who is the Ex-officio Chairman of the masses
Planning Commission?
Sh
C. It is easy to realise direct taxes and is

A. Minister for Planning & Development thus useful in a country troubled by tax eva-
B. Finance Minister sion
C. Prime Minister D. All of the above
891. Which among the following is not the out-
D. Minister for Rural &Community Devel-
come of decrease in prime lending rate?
i
opment
Ja
886. A financial instrument is called a ’primary A. to raise the bank loan

security’ if it represents the liability of: B. decline in saving rate
A. Some ultimate borrower C. decline in productivity
B. The Government of India D. Increased demand of consumer products
C. A primary cooperative bank
892. UTI Bank Ltd. was established in
D. A commercial bank
A. 1992
887. Inflation:
B. 1991
A. Reduces the purchasing power of a ru-
C. 1993
pee.
D. 1994
B. Always reduces the cost of living
893. The duties levied on alcoholic liquors, nar-
C. Always reduces the standard of living. cotic drugs and opium come under-
A. Central Excise Duty C. having minimum possible restrictions on

economic relations with other countries
B. Land Revenue
D. giving up programmes of import substi-
C. State Excise Duty
tution
D. General Sales Tax 899. Khusro committee was appointed on
894. Transfer earning or alternative cost is oth-
A. Bank Frauds
erwise known as
B. National Income
A. Variable cost
er
C. Introduction of Sica
B. Implicit cost
D. Agriculture credit
C. Explicit cost
900. Who has provided the Savings Bank facil-
gd
D. Opportunity cost (economic cost) ity to the largest number of account-holders
895. Which of the following PSUs has been pri- in India?
vatized? A. State Bank of India
A. HZL B. Punjab National Bank
an
B. CMC C. Allahabad Bank
C. Hotel Corporation of India D. Post Office
D. NALCO 901. In the national context which of the follow-
Ch
ing indicates Macro Approach?
896. What is referred to as ’Depository Ser-
vices’? A. Inflation in India
A. A new scheme of fixed deposits B. Sales of Bata Shoe Company
B. A method for regulating stock exchanges C. Exports of Mangoes to UK
D. Income from Railways
n
C. An agency for safe-keeping of securities 902. Short term loans to correct Balance of Pay-
ments problems is given by
ya
D. An advisory service to investors A. I.M.F.

897. The term stagflation refers to a situation B. I.B.R.D
where
C. I.D.A
a
A. Growth has no relation with the change

D. A.D.B
in prices
ar
903. Agricultural Banking college is in

B. Rate of growth and prices both are de-
creasing A. Calcutta
B. Surat
N
C. Rate of growth in faster than the rate of

price increase C. Lacknow
D. Rate of growth is slower than the rate of D. Pune
price increase 904. The effect of inflation on tax revenue re-
898. ’Globalisation of Indian Economy’ sults in a situation known as:
means: A. stagflation
A. establishing Indian business units abroad B. fiscal drag
C. reflation
B. stepping up external borrowings
D. disinflation
87
905. Which is the biggest tax paying sector in 911. Which of the following is/are treated as
India? artificial currency? [IAS 2010]
A. Agriculture sector A. ADR
B. Industrial sector B. GDR
C. Transport sector C. SDR
D. Banking sector D. Both ADR and SDR
906. As per International Monetary Fund report 912. Who among the following is not a classical
in 2011 India is the economist?
A. Third largest economy A. David Ricardo
B. Fourth largest economy B. John Stuart Mill
am
C. Fifth largest economy C. Thomas Malthus
D. Sixth largest economy D. John Maynard Keynes
907. In which one of the following five year 913. Buyers and Sellers will have perfect knowl-
plans the actual growth performance in In- edge of market conditions under
dia in respect of GDP (at factor cost) waseR A. Duopoly
less than the target set? [NDA 2008]
B. Perfect competition
A. Seventh five year plan
C. Monopolistic competition
B. Sixth five year plan
D. Oligopoly
C. Eighth five year plan
re
D. Ninth five year plan
producer of Kyanite?
908. National income is the same as:
A. Chattiesgarh
A. Net Domestic Product at cost factor
Sh
B. Bihar
B. Net Domestic Product at market price
C. Tamil Nadu
C. Net National Product at market price
D. Jharkhand
D. Net National Product at factor cost
915. Imperial Bank was nationalized and named
909. To meet the growing needs for coins in the it as
i
country, where does the Government pro-

Ja
pose to set up another mint? A. State Bank of India
A. Hoshangabad B. Indian Bank
B. Nasik C. Axis Bank
C. Dewas D. Canara Bank

916. Cross elasticity of demand between petrol
D. Noida
and car is
910. Where is the Indian Institute of Foreign
Trade Located? A. Infinite
A. New Delhi B. Positive
B. Hyderabad C. Zero
C. Mumbai D. Negative
917. Bank money refers to
D. Ahmedabad
A. currency notes A. Bull

B. coins B. Dog
C. gold bullions C. Bear
D. cheques D. Stag
924. Which of the following is the first Private
918. If the price of Pepsi decreases relative to
bank established based on the recommenda-
the price of Coke and 7-Up, the demand for
tions of the Narasimhan Committee?
A. Coke will decrease
A. Union Bank
er
B. 7-Up will decrease B. UTI Bank Ltd.
C. Coke and 7-Up will increase C. Bank of Baroda
gd
D. Coke and 7-Up will decrease D. Dena Bank
919. The largest proportion of national income 925. ISI mark is not given to which of the fol-
comes from lowing products?
A. Private Sector A. Electrical goods
an
B. Public Sector B. Hosiery goods
C. Local Sector C. Biscuits
D. None of the above D. Cloth

Ch
926. "Supply creates its own demand" - Who
920. The biggest Public Sector undertaking in
said this?
the country is ..... [Corporation Bank PO
2011] A. J. B. Say
A. Iron & steel plants B. J.S. Mill
B. Roadways C. J. M. Keynes
n
D. Senior
C. Railways
927. Which organization collects data for the
ya
D. Airways unorganized sector?

921. What is the main source of revenue to meet A. NSSO
different expenditures?
B. CSO
A. Customs duties
a
C. ASI
B. Excise duties
D. RBI
ar
C. Internal borrowings 928. NIFTY is associated with

D. Income tax A. Cloth Market Price Index
922. How the interest-level of a country is af- B. Consumer Price Index
N
fected by FDI?
C. BSE Index
A. increases D. NSE Index
B. decreases 929. Which of the following is called a ’banker’s
cheque’? [CDS 2002]
C. remains unaffected
A. Debit card
D. there is increase or decrease
B. Demand draft
923. The share broker who sells shares in the
apprehension of failing prices of shares is C. Pay order
called D. Fixed deposit
89
930. Which bank gives long term loan to farm- 936. Planning commission was established by
ers? Government of India in
A. Land Development Bank A. January 1949
B. NABARD B. February 1951
C. SBI C. March 1950
D. Rural banks D. May 1948
931. Which of the following would signify 937. Companies pay Corporation Tax on their:
scarcity in economics? [UDC 1993]
A. Availability of 10 kg of rice against a A. production
demand for 15 kg
B. investment
B. Production of 100 kg of a certain item
am
C. sales proceeds
instead of the targeted 150 kg
D. incomes
C. Availability of post-graduates for jobs of
typists 938. Multiplier process in economic theory is
conventionally taken to mean:
D. Quantity supplied remains the same
when price changes eR A. The manner in which prices increase
932. Debenture holders of a company are its: B. The manner in which banks create credit
A. creditors
C. Income of an economy grows on account
B. shareholders
of an initial investment
C. debtors
D. The manner in which government expen-
re
D. directors diture increases
933. Wage fund theory was propounded by 939. Consumption function expresses the rela-
tionship between consumption and
Sh
A. J.B. Say
A. Savings
B. J.S. Mill
B. Income
C. J.R. Hicks
C. Investment
D. J.M. Keynes
934. Agricultural Technology is hard to spread D. Price
i
because: 940. The largest component of National Income

Ja
in India is
A. It has to be adapted to local conditions
A. Service Sector
B. Rural people me not receptive
B. Agriculture
C. Farmers are afraid to experiment on land
for fear of failure C. Industrial Sector
D. All of the above D. Trade Sector
935. Which of the following taxes is not col- 941. Interest paid by the government on the
lected by the Central Government? loans raised is called
A. Income tax A. Debt Servicing
B. Customs duty B. Deficit Financing
C. Professional tax C. Discounted Budgeting
D. Excise duty D. Bridge-loan
942. The difference between visible exports and A. In a lower proportion

visible imports is defined as [Corporation
B. In a higher proportion
Bank PO 2011]
C. In the same proportion
A. Balance of payment
D. None of the options
B. Balance of trade
948. Which of the following is the classification
C. Balanced terms of trade
of Industries on the basis of raw-materials?
D. Gains from trade
A. Small Scale -Large scale
er
943. Who is the chairman of 13th Finance Com-
mission? B. Primary and Secondary
A. M.N. Vohra C. Basic and Consumer
gd
B. C. Rangarajan D. Agro-based and Mineral based
C. Bimal Jalan 949. National income of India is compiled by:
D. Vijay Kelkar A. Indian Statistical Institute
an
944. The data collection for national income es- B. Finance Commission
timation is conducted in India by-
C. National Development Council
A. The Finance Ministry of the Government
D. Central Statistical Organisation
of India
Ch
950. Demand of commodity mainly depends
B. The RBI upon-
C. The NSSO (National Sample Survey Or-
A. Purchasing will
ganization)
B. Purchasing power
D. None of these
945. National Cooperative Development Corpo- C. Tax policy
n
ration (NCDC) was established in D. Advertisement

ya
A. 1963 951. For which tax, was constitutional status

B. 1960 given much later after its introduction in a
small way in 1994 - 95?
C. 1962
A. Customs Duty
a
D. 1964
B. Corporation Tax
946. Which of the following statements is cor-
ar
rect? [AAO 1993] C. Taxes on Services

A. The Prime Minister is the Chairman of D. Income Tax
the Planning Commission 952. Which one of the following is the most
N
B. Planning Commission is a constitutional important item of non-plan expenditure?

body A. Defence
C. The Minister of Planning is always nec-
B. Interest payment
essarily the Deputy Chairman of Planning
Commission C. Fertiliser subsidies
D. The draft plan is prepared by the Na- D. Loans to public enterprises
tional Development Council 953. Fresh evalution of every item of expendi-
947. When income increase, consumption also ture from the very beginning of each finan-
increases: cial year is called: [SBI PO 1991]
91
A. fresh Budgeting 959. ’Repo rate’ is the rate at which: [CDS

B. deficit Budgeting 2004]
C. performance Budgeting A. the Reserve Bank of India lends to State

Government
D. zero-based Budgeting
954. Which of the following is the largest (in B. the international aid agencies lend to Re-
terms of’ turnover) Public Sector organisa- serve Bank of India
tion in India? C. the Reserve Bank of India lends to banks
A. Steel Authority of India
B. Bharat Petroleum D. the banks lend to Reserve Bank of India
C. Indian Oil Corporation 960. A situation of large number of firms pro-
D. Oil and Natural Gas Commission ducing similar goods is termed as:
am
955. Savings represents A. Perfect competition
A. An injection in the circular flow of in- B. Monopolistic competition
come
C. Pure competition
B. Both a leakage and injection
C. A leakage in the circular flow of income
eR D. Oligopoly
961. Many a times, we read about Special Draw-
ing Right (SDR) in newspapers. As per its
956. Jharia Coal mine is located in the state of definition. SDR is a monetary unit of the
A. Gujarat reserve assets of which of the following or-
ganizations/agencies? [SBI PO 2010]
re
B. Madhya Pradesh
A. International Monetary Fund (IMF)
C. Andhra Pradesh
D. Jharkhand B. World Bank
Sh
957. In a perfectly competitive market, a firm’s C. Asian Development Bank

A. Average Revenue is always equal to D. Reserve Bank of India
Marginal Revenue
962. Railway Budget in India was separated
B. Marginal Revenue is more than Average from general budget in:
Revenue
i
A. 1941-42
C. Average Revenue is more than Marginal
Ja
Revenue B. 1924-25
D. Marginal Revenue and Average Revenue C. 1947-48
are never equal
D. 1950-51
958. The term ’Mixed Economy’ denotes
963. Mahalanobis committee was appointed on
A. Existence of both rural and urban sectors
A. Introduction of Sica
B. Existence of both private and public sec- B. Povetry Estimation
tors
C. National Income
C. Existence of both heavy and small indus-
tries D. Industrial Sickness
D. Existence of both developed and under- 964. What is the current account of balance of
developed sectors payments?
A. It is the account showing transactions A. 8.5%

in invisible account like tourism, shipping,
B. 7%
insurance etc.
C. 9%
B. It is the account showing difference of
total exports and imports in one year D. 9.2%
C. It is the account showing transactions 970. The Planning Commission is: [UP PCS
like net external assistance, NRI deposits, 1994]
etc. A. a Ministry
er
D. It is the account showing trade balance B. a Government department
plus invisible balance
C. an Advisory body
965. In the post-independence period, economic
D. an Autonomous Corporation
gd
reforms were first introduced in India under
971. Which among the following Indian State
A. P.V. Narasimha Rao Government (1990)
does not transacts its business through Re-
serve Bank of India?
B. Indira Gandhi Government (1980)
an
A. Sikkim
C. Rajiv Gandhi Government (1985)
B. Jammu and Kashmir
D. Janata Party Government (1977)
C. Arunachal Pradesh
966. What was the period of Second Five Year
Ch
Plan? D. Mizoram
972. What is the animal on the insignia of the
A. 1954-55 to 1961-62
RBI? [CPO SI 2002]
B. 1952-53 to 1960-64
A. Tiger
C. 1956-57 to 1960-61
B. Lion
D. 1958-59 to 1962-63
n
C. Panther
967. Which among the following sectors re-
ceived the largest Central plan outlay in the D. Elephant
ya
last few Central Government annual bud- 973. A situation where we have people whose
gets? [CDS 2002] level of income is not sufficient to meet the
minimum consumption expenditure is con-
A. Agriculture and allied activities
sidered as
a
B. Energy
A. Absolute Poverty
C. Social Services
ar
B. Relative Poverty
D. Communication
C. Urban Poverty
968. Consumptions function refers to
D. Rural Poverty
N
A. Relationship between income and em-

974. Geetha Krishnan committee was appointed
ployment
on
B. Relationship between savings and invest-
A. Bank Frauds
ment
B. Distribution of Plan Assistance among
C. Relationship between input and output
States
D. Relationship between income and con-
C. Expenditure Reforms
sumption
969. The target growth rate during the Eleventh D. Customer Service
Five Year Plan Period is 975. Equilibrium price means
93
A. Price determined by demand and supply 981. ’Take off stage’ in an economy means:
[CBI 1990]
B. Price determined by Cost and Profit A. steady growth begins
C. Price determined by Cost of production B. economy is stagnant
D. Price determined to maximize profit C. economy is about to collapse
976. In recent years the capital outlays for the D. all controls are removed
defense service have been:
982. Fiscal deficit in the Union Budget means:
A. increasing steadily [IAS 1994]
B. more or less constant A. net increase in Union Government’s bor-
C. going down steeply rowings from the Reserve Bank of India
am
D. fluctuating frequently B. the difference between current expendi-
ture and current revenue
977. Import substitution implies [Asstt Commdt
2011] C. the sum of budgetary deficit and net in-
A. gradual reduction of imported goods to crease in internal and external borrowings
save foreign exchange
B. importing new items in place of old
items of import
eR D. the sum of monetised deficit and bud-
getary deficit
983. "NABARD" is a an
C. increasing domestic supply of goods by
imposing import restrictions A. Bank
D. replacing import items by domestic pro- B. Financial Institution
re
duction of such items
C. Insurance Corporation
978. Which is the most essential function of an
entrepreneur? D. Central Government Department
Sh
A. Supervision 984. Inflation implies: [Railways 1994]
B. Management A. rise in money supply
C. Marketing B. rise in budget deficit
D. Risk bearing C. rise in general price index

i
979. In a Capitalistic Economy, the prices are D. rise in prices of consumer goods
Ja
determined by: 985. Which of the following organisations pre-

A. Demand and Supply pare rural credit plans on annual basis for
all districts in India, which in turn form the
B. Government Authorities base for annual credit plans of all rural fi-
C. Buyers in the Market nancial institutions? [RBI Grade B Officer
2011]
D. Sellers in the Market
980. Who amongst the following has never been A. SIDBI
the Governor of Reserve Bank of India? B. NABARD
A. D. Subbarao C. RBI
B. C. Rangarajan D. Indian Bank’s Association
C. B.B. Bhattacharya 986. The main source of long-term credit for a
D. Y.V. Reddy business unit is
A. sale of stocks and bonds to the public 992. The one rupee note bears the signature of:
B. borrowing from banks A. Governor, Reserve Bank of India
C. loans from the Government B. Finance Minister
D. deposits from the public and financial C. Secretary, Ministry of Finance
institutions D. None of these
987. What is the revised upper limit for foreign 993. In an economy, the sectors are classified
direct investment in telecom service compa- into public and private on the basis of
nies?
er
A. employment conditions
A. 49 per cent
B. nature of economic activities
B. 51 per cent
C. ownership of enterprise
gd
C. 66 per cent
D. use of raw materials
D. 74 per cent 994. Voluntary Disclosure of Income Scheme
988. In the context of India’s Five Year Plans, was started from
a shift in the pattern of industrialization,
an
A. 1st July 1997
with lower emphasis on heavy industries and
more on infrastructure begins in [IAS 2010] B. 21st July 1999
A. fourth Plan C. 3rd May 1991
D. 8th June 1995
Ch
B. sixth Plan
995. Which of the statements is correct about
C. eighth Plan
India’s national income?
D. tenth Plan
A. Percentage share of agriculture is higher
989. Regional Rural Banks are designed to work than services
in which of the following ideals? [IAS
1988] B. Percentage share of industry is higher
n
than agriculture
A. Help the targetted groups
C. Percentage share of services is higher
ya
B. Work on basics of commercial banks than industry

C. Keep lending rates lower than coopera- D. Percentage share of services is higher
tive institutions than agriculture and industry put together
a
D. Work on innovative and adaptive ideals 996. Who said ’Supply creates its own de-
990. ’Golden Handshake Scheme’ is associated mand’?
ar
with A. Adam Smith

A. Inviting foreign companies B. J.B. Saw
B. Private investment in public enterprises C. Marshall
N
C. Establishing joint enterprises D. Ricardo

D. Voluntary retirement 997. Kelkar committee was appointed on
991. Satyam committee was appointed on A. Povetry Estimation
A. National Income B. Customer Service
B. Expenditure Reforms C. Industrial Sickness
C. Textile sector D. Tax Reforms
998. Katni Bauxite mine is located in the state
D. Private investment in basic infrastructure
of
95
A. Rajasthan A. Dealing with foreign exchange

B. Orissa B. Controlling monetary policy
C. Karnataka C. Controlling government spending
D. Madhya Pradesh D. Acting as a banker’s bank
999. Which of the following relations always 1005. The degree of monopoly power is to be
holds true? measured in terms of the firm’s
A. Income = Consumption + Investment A. Normal profit
B. Income = Consumption + Saving B. Supernormal profit

C. Both normal and supernormal profit
C. Saving = Investment
D. Selling price
D. Income = Consumption + Saving + In-
1006. ’Dumping’ in the context of international
am
vestment
trade refers to: [CDS 2000]
1000. Which one of the following is not a di-
mension of human development index? A. exporting goods at prices below the ac-
tual cost of production
A. Life expectancy
B. exporting goods without paying the ap-
B. Knowledge propriate taxes in the receiving country
C. Social status
D. Standard of living
eRC. exporting goods of inferior quality
D. exporting goods only to re-import them
1001. Cheap money means at cheaper rates
A. Low rates of interest 1007. The type of Planning adopted in India
from 8th Five Year Plan onwards is
re
B. Low level of saving
A. Inductive Planning
C. Low level of income
B. Imperative Planning
D. Low level of standard of living
Sh
C. Perspective Planning
1002. In some parts of India, farmers face acute
D. Rolling Plan
distress because of heavy burden of debt
from non-institutional renders. Who can 1008. Which of the folloiwng state is in the third
be called a non-institutional lender? [RBI place in the production of Manganese Ore?
Grade B Officer 2011] A. Karnataka
i
A. Grameen Banks B. Madhya Pradesh

Ja
B. Money Lenders C. Kerala

C. Credit Cooperative Societies D. Maharashtra
1009. Reserve Bank of India keeps some secu-
D. Micro Finance Institutions
rities against notes. These securities are al-
1003. Which of the following is poorest state in ways less in comparison to-
India?
A. Gold and foreign bonds
A. Bihar
B. Gold
B. Odisha
C. Government bonds
C. U.P.
D. Gold, foreign bonds and Government
D. M.P. bonds
1004. Which one of the following is not a func- 1010. Who among the following is most bene-
tion of the central bank in an economy? fited from inflation? [IAS 1989]
A. Creditors 1016. The minimum effect of Direct Taxes is

on:
B. Government pensioners
C. Savings Bank Account holders A. food price
D. Debtors B. consumer goods

1011. Imputed gross rent of owner occupied C. capital goods
buildings is a part of
D. income
A. Capital formation
1017. How many languages are used on a ten
er
B. Final consumption rupee note?
C. Intermediate consumption A. 2
gd
D. Consumer durable B. 7
1012. Which one of the following pairs of goods
C. 10
is an example for Joint Supply?
D. 15
A. Coffee and Tea
an
B. Ink and Pen 1018. Bankers training college is in
C. Tooth brush and Paste A. Pune
D. Wool and Mutton B. Chennai

Ch
1013. Rising prices lead to all but one of the C. Mumbai
following:
D. Tirupati
A. promotion of inequalities
1019. Shimoga Manganese mine is located in
B. generation of black money the state of
C. adverse effect on balance of payments A. Tamil Nadu
n
D. adverse effect on speculation B. Orissa

ya
1014. What is Value Added Tax (VAT)?

C. Karnataka
A. A simple, transparent, easy to pay tax
imposed on consumers D. Gujarat
B. A new initiative taken by the Govern- 1020. G-77 summit is a forum for: [CDS 2000]
a
ment to increase the tax-burden of high in- A. East-West Cooperation

come groups
ar
B. North-South Cooperation
C. A single tax that replaces State taxes like,
surcharge, turnover tax, etc. C. South-South Cooperation
N
D. A new tax to be imposed on the produc- D. North-North Cooperation

ers of capital goods 1021. The first estimate of national income in
1015. Entrepreneurial ability is a special kind of India was made by:
labour that
A. Mahalanobis
A. is hired out to firms at high wages
B. V.K.R.V. Rao
B. organizes the process of production
C. Dadabhai Naoroji
C. produces new capital goods to earn inter-
est innovation D. Prof. Sheroi
D. manages to avoid losses by continual 1022. NREGP is the abbreviated form of

97
A. National Rural Employment Guarantee C. To control pressure of inflation

Programme D. To ensure social justice
B. National Rural Educational Guarantee 1028. The concept of consumer surplus is useful
Programme in which policy?
C. National Rapid Educational Guarantee A. Monetary policy
Programme
B. Tax policy
D. National Rapid Employment Guarantee
C. Investment policy
Programme
1023. The Imperial Bank of India, after nation- D. Fixing remuneration factors
alization was given the name of: 1029. The base year of wholesale price index is
changed from 1993-94 to
A. Bank of India
A. 1996-97
am
B. 1997-98
C. State Bank of India
C. 1999-2000
1024. Which one of the following does not deal D. 2000-2001
with export promotion? 1030. The Imperial Bank of India, after its na-
eR tionalization came to be known as:
A. Trade Development Authority
A. Reserve Bank of India
B. Minerals and Metals Trading Corpora-
tion B. State Bank of India
C. Cooperative Marketing Societies C. United Bank of India
re
D. State Trading Corporation of India D. Indian Overseas Bank
1025. Which one of the following is the updated 1031. In India, disguised unemployment is gen-
base for Wholesale Price Index (WPI)? [Cor- erally observed in
Sh
poration Bank PO 2011] A. the Agricultural sector

A. 2002-2003 B. the Factory sector
B. 2003-2004 C. the Service sector
C. 2004-2005 D. All these sectors
D. 2005-2006
i
1032. The method of calculating the national

1026. Under increasing returns the supply curve income by the product method is otherwise
Ja
is [SSC (10+2) 2010] known as:

A. negatively sloped from left to right A. Income method
B. positively sloped from left to right B. Value added method
C. parallel to the quantity-axis C. Expenditure method
D. parallel to the price-axis D. Net output method
1027. Which among the following subjects is 1033. Scheduled Banks have to be registered
not an aim of the monetary policy of the with
Reserve Bank of India? A. SEBI
A. Giving impetus to economic develop- B. RBI
ment
C. Finance Ministry
B. Direct credit with objective criteria
D. SBI
1034. Basel Committee has given its recommen- A. Tax revenue

dations on which of the following aspects of B. Non-tax revenue
banking operations? [RBI Grade B Officer
2011] C. Loans
A. Priority sector lending D. Interest payments

1040. Identify the one which is not related to
B. Marketing of bank products
the Agricultural Price Policy
C. Risk Management
A. Buffer stock
er
D. All of the above
B. Imports
1035. Same price prevails throughout the mar-
ket under C. None
D. Pressure Group is characterized by ho-
gd
A. perfect competition
mogeneity of interests
B. monopoly 1041. Which of the following state is the leading
C. monopolistic competition producer of Gold(Ore)?
an
D. oligopoly A. Maharashtra
1036. Transfer payments include: B. Haryana
A. Gifts received from a friend C. Madhya Pradesh
Ch
B. Rent free accommodation by the em- D. Karnataka
ployer 1042. Which one of the following is the correct
C. Net factor income from abroad sequence in the decreasing order of contri-
bution of different sectors to the Gross Do-
D. Employee’s contribution to social secu- mestic Product of India? [IAS 2007]
rity
A. Services-Industry-Agriculture
1037. Since 1951, in India:
n
B. Services-Agriculture-Industry
A. national income has increased but per
C. Industry-Services-Agriculture
ya
capita income has decreased

B. national and per capita incomes have D. Industry-Agriculture-Services
both increased fast 1043. Dear Money Policy implies:
C. national income has increased and per A. large money supply
a
capita income has also increased but at a

B. high price level
slower rate
ar
C. high production
D. national income and per capita income
have increased every year D. high interest rates
1038. Among Indian Economists who had done 1044. Persons below the poverty line in India
N
pioneering work on National Income? are classified as such based on whether:

[IAS 1999]
A. Jagdish Bhagwati
A. they get work for a prescribed minimum
B. P. N. Dhar number of days in a year
C. V. K. R.V. Rao B. they are entitled to a minimum pre-
D. Prof. Shenoi scribed food basket
1039. Which one of the following is not in- C. they belong to agricultural labourer
cluded in current revenue of the Union Gov- household and the scheduled caste/tribe so-
ernment? cial group
99
D. their daily wages fall below the pre- A. Product differentiation

scribed minimum wages
B. Multiplicity of prices for identical prod-
1045. The three tire system of cooperative credit ucts at any one time
includes C. Many sellers and a few buyers
A. Primary credit societies D. Only one price for identical goods at any
B. District cooperative central Banks one time
1051. The National Development Council gets
C. State Cooperative Bank
its administrative support from:
D. All the above A. Finance Commission
1046. Which of the following is not an asset B. Planning Commission
held by commercial banks?
C. Administrative Reforms Commission
am
A. Bills of exchange
D. Sarkaria Commission
B. Current account deposits 1052. Which of the following taxes is not a di-
C. Credit balances with the Reserve Bank rect tax?
D. Money lent at short notice A. Gift Tax
1047. India’s Balance of Payments can be cor-

rected through
eR B. Wealth Tax
C. Sales Tax
A. Devaluation of currency D. Income Tax
B. Vigorous export promotion 1053. Among the following, which one is not a
credit rating agency operating in India?
re
C. Import substitution
A. ICRA
D. All of the above
B. CRISIL
1048. A Scheduled Bank is one which is in-
Sh
C. Dow Jones
cluded in the
D. CARE
A. II Schedule of Banking Regulation Act
1054. M 1 includes:
B. II Schedule of Constitution
A. currency with public
C. II Schedule of Reserve Bank of India
i
B. demand deposit with bank

Act
Ja
C. other deposits with RBI

D. all of the above
1049. In Gross Domestic Savings in India
1055. Which statement is correct for Indian
A. Contribution of Household sector is the Planning Commission?
largest
A. It is not defined in Indian Constitution
B. Contribution of Government sector is the
B. Members and Vice-Chairman of it do not
largest
have fixed working duration
C. Contribution of Industrial sector is the C. Members do not require any minimum
largest education
D. All the above D. All of the these
1050. One of the essential conditions of perfect 1056. When the total product rises at an increas-
competition is: ing rate, the
A. Marginal product is zero A. Sales by the unit

B. Marginal product is rising B. Investment in machines and equipments
C. Marginal product is falling C. Market coverage
D. Marginal product remains constant D. Export capacity
1057. Which from the following is not true 1063. The balance of payments of a country is
when the interest rate in the economy goes in equilibrium when the
up? A. Demand as well as supply of the domes-
er
A. Saving increases tic currency is the highest
B. Lending decreases B. Demand for the domestic currency is
equal to its supply
C. Cost of production increases
gd
C. Demand for the domestic currency is the
D. Return on capital increases highest
1058. Which is the apex institution to provide
D. Demand for the domestic currency is the
credit facility of agriculture and rural devel-
lowest
an
opment?
1064. Black money is:
A. State Bank of India
A. counterfeit currency
B. NABARD
B. illegally earned money
Ch
C. money earned through underhand deals
D. National Cooperative Bank of India
D. income on which payment of tax is usu-
1059. The name of the common currency ally evaded
launched by members of the European
1065. Ad Valorem tax is levied
Union is
A. according to value added by the Govern-
n
A. Sterling
ment
B. Dollar
B. according to value addition To a com-
ya
C. Euro modity
D. Pound C. according to value given by producers
1060. The main aim of First Five Year Plan was D. according to value added by the finance
a
A. Agriculture ministry
1066. EXIM Bank was set-up in:
ar
B. industries
A. 1982
C. Growth with social justice and Equality
B. 1980
D. Eradication of Poverty
N
C. 1985
1061. Consumers are likely to get a variety of
goods under D. 1986
A. Oligopoly 1067. Who are the creditors of a Corporation?
B. Perfect competition A. Bondholders
C. Monopoly B. Stockholders
D. Imperfect competition C. Both Bond and Stock holders
1062. The definition of ’small-scale industry’ in D. Holders of preferred stock

India is based on 1068. Economies of Scale means reduction in
101
A. Unit cost of production A. Andhra Pradesh

B. Unit cost of distribution B. Gujarat
C. Total cost of production C. Haryana
D. Total cost of distribution D. Tamil Nadu
1069. ICICI is a 1074. Which one among the following is not
true for Special Economic Zones? [CDS
A. Rural Development Bank 2011]
B. Financial Institution A. No licence is required for import
C. Cooperative Bank B. Manufacturing and service activities are
D. Space Research Institute allowed
1070. Aggregate net value of the output in one C. No permission for subcon- tracting
am
year is the D. No routine examination of cargo for ex-
A. National income at factor cost port/import by customs authorities
1075. Production Function relates to:
B. Gross Domestic Product at market prices
A. Costs to outputs
C. Net National Product at market prices

D. Gross National Product at market prices
eR B. Costs to inputs
C. Inputs to outputs
D. Wage level to profits
1071. If we compile data in a country’s exports 1076. The most important small-scale industry
and imports of goods and services, its uni- in India is that of:
re
lateral transfers, and its long-term capital A. textiles
account, the resulting net credit or net debit
B. jute
account would be called that country’s .....
C. jewellery
Sh
A. Nominal wages are equal to expected

wages D. handloom
1077. The biggest item of India’s imports is:
B. Nominal wages are growing faster than
inflation A. Iron ore
C. Real wages are back at long-run equilib- B. Mica
i
rium level C. Petroleum products

Ja
D. Inflation is higher than the growth of D. Gems and jewellery

nominal wages 1078. The government set up a committee
1072. Which of the following does not form a headed by the Chairman; Central Board of
part of the foreign exchange reserves of In- Direct Taxes some time back to go into-
dia? A. Codification of tax laws
A. Gold B. The entire structure of tax laws including
B. SDRs the question of imposition of bank tax
C. Foreign currency assets C. The concerns of the foreign investors in
India with regard to taxation matters
D. Foreign currency and securities held by
the banks and corporate bodies D. Aspects of generation of black money,
its transfer abroad and bringing back such
money into India’s legitimate financial sys-
producer of Lime Stone?
tem
1079. A budgetary deficit means: A. Transfer payments

A. total expenditure is more than total rev- B. Net foreign income from abroad
enue
C. Capital consumption allowance
B. current expenditure is more than current D. Capital gains
revenue
C. capital expenditure is more than capital producer of Graphite?
revenue
A. Karnataka
er
D. total expenditure is more than current
revenue B. Utter Pradesh
1080. What is the role of ’Over-the Counter Ex- C. Tamil Nadu
gd
change’ (OTC)? D. Bihar
A. Help in the introduction of multi-tiered 1086. Say’s Law of Market holds that
markets and import liquidity to them
A. Supply is not equal to demand
B. Help to overcome the balance of pay-
B. Supply creates its own demand
an
ment crisis
C. Demand creates its own supply
C. To arrange funds from different foreign
banks of developing/ under developing coun- D. Supply is greater than demand
tries 1087. Externality theory is the basic theory of
Ch
D. All of the above the following branch of Economics:
1081. Which industry earns the second highest, A. Environomics

net foreign exchange from the trade? B. Fiscal Economics
A. Textile industry C. International Economics
n
B. Gems and ornaments D. Macro Economics

C. Steel industry 1088. Which institution provides long run fi-
ya
nance to industries?
D. Engineering goods industry
1082. Which nationalized bank of India has a A. LIC
shining star as its emblem? B. UTI
a
A. Syndicate Bank C. GIC

B. Indian Bank
ar
D. All of these
C. Bank of India 1089. Deficit financing creates additional paper
currency to fill the gap between expenditure
D. Bank of Baroda
and revenue. This device aims at economic
N
1083. Cheap Money means development but if it fails, it generates: [IFS

A. Low Rate of Interest 1990]
B. Low level of Savings A. inflation
C. Low level Income B. devaluation
D. Excess of Black Money C. deflation
1084. The main difference between Gross Do- D. demonetization

mestic Product (GDP) and Gross National 1090. A Scheduled Bank is one which is in-
Product (GNP) is cluded in the: [CPO SI 2002]
103
A. II Schedule of Constitution 1096. Which of the following state is the leading

producer of Fireclay?
B. II Schedule of Banking Regulation Act
A. Haryana
C. II Schedule of Reserve Bank of India
Act B. Karnataka
D. None of the above C. Rajasthan
1091. Sambalpur Bauxite mine is located in the D. Madhya Pradesh
state of 1097. Why did the Government ban the import
A. Orissa of ’Terminator seeds"?
B. Maharashtra A. To contain a virus this can destroy local

crops
C. Tamil Nadu
B. These seeds are injurious to human and
am
D. Andhra Pradesh animal health
1092. According to the law of demand, when: C. These seeds contain genetically engi-
A. price increases demand decreases neered properties to prevent further multipli-
cation
B. price decreases demand decreases
C. price increases demand increases
D. price decreases demand does not change
eR D. These seeds multiply at very slow rates
1098. Which one of the following is the most ap-
propriate reason for Inequalities in Income?
A. Racial factors
1093. ’Supply creates its own demand’. This
B. Lack of opportunities
statement is related to
re
C. Inheritance from family Environment
A. Prof. J.B. Say
D. Differences in Ability
B. John Robinson
1099. Regarding the International Monetary
Sh
C. Adam Smith Fund, which one of the following statements

D. J.S. Mill is correct? [CSAT 2011]
1094. Regulated markets aim at the develop- A. It can grant loans to only developed
ment of the marketing structure to countries
A. widen the price spread between the pro- B. It can grant loans to any country
i
ducer and the consumer C. It grants loans to only member countries

Ja
B. narrow down the price spread between

the producer and the consumer D. It can grant loans to the central bank of
C. increase the non-functional margins of a country
the traders 1100. National income refers to
D. maximize the non-functional margins of A. money value of goods and services pro-
the commission agents duced in a country during a year
1095. Gresham’s law is related to B. money value of stocks and shares of a
country during a year
A. Consumption and demand
C. money value of capital goods produced
B. Supply and demand
by a country during a year
C. Circulation of money
D. money value of consumer goods pro-
D. Deficit financing duced by a country during a year
1101. Tick the correct option of GDP (Gross A. SAIL

Domestic Product) contributed by service B. BHEL
sector in the past:
C. ONGC
A. During 2000-01 (GDP- 65.54%)
D. Coal India Limited
B. During 1980-81 (GDP - 50.00%) 1107. Multinational Corporation is also called
C. During 1950-51 (GDP - 34.63%) A. Trading Corporation
D. During 2011-12 (GDP - 57.00%) B. International Corporation
er
1102. GDP at Factor Cost is C. Finance Corporation
A. GDP minus indirect taxes plus subsidies D. Trans-national Corporation
1108. What do you understand by Bear raid?
gd
B. GDP minus depreciation allowances A. Simulataneous buying of shares and
debentures in view of getting more values in
C. NNP plus depreciation allowances
near future
D. GDP minus subsidies plus indirect taxes
B. An attempt to bring down the price of
an
strong short selling
1103. What is ’Recession’?
C. Higher rate of price paid for the particu-
A. Rise in the cost of production, especially lar government share or debentures
Ch
because of wage increase D. Any of the above
B. Increase in money supply without a 1109. "Economics is what it ought to be" - This
matching increase in production statement refers to
C. Reduction in production and employ- A. Normative economics
ment for want of sufficient demand for B. Positive economics
goods
n
C. Monetary economics
D. None of these
D. Fiscal economics
ya
1104. The Centre for Agricultural Marketing is 1110. Buoyancy of a tax is defined as
located at
A. percentage increase in tax revenue per-
A. Jaipur centage increase in tax base
B. New Delhi B. increase in tax revenue percentage in-
a
C. Nagpur crease in tax coverage

ar
C. increase in tax revenue increase in tax

D. Hyderabad
base
1105. Personal disposable income is:
D. percentage increase in tax revenue in-
N
A. Always equal to personal income crease in tax coverage

B. Always more than personal income 1111. National Income Estimates in India are
prepared by:
C. Equal to personal income minus direct
taxes paid by household A. National Development Council
B. National Productivity Council
D. Equal to personal income minus indirect
taxes C. National Income Committee
1106. Which of the following ’Public Under- D. Central Statistical Organization
takings’ has not been conferred with ’Ma- 1112. Udaipur Copper mine is located in the
haratna’ Status? state of
105
A. West Bengal A. 1973

B. Rajasthan B. 1974
C. Orissa C. 1975
D. Gujarat D. 1976
1113. Which of the following is not an objective 1119. For channelizing the unaccounted money
of the monetary policy of the RBI? for productive purposes the Government In-
troduced the, scheme of:
A. Boost economic development
A. Special Bearer Bonds
B. Direct credit in desirable direction
B. Resurgent India Bonds
C. Control inflationary pressure
C. Provident Funds
D. Ensure social justice
D. Market Loans
am
1114. Whenever newspapers talk about the per-
formance of core industries, which of the 1120. Which among the following is not a non-
following is NOT considered among them? customs duty obstacle in the world trade?
[Bank of India PO 2010] A. Quantify restriction
A. Automobile B. Establishment of Standard of labour in
B. Petroleum
C. Mining
eR manufacturing
C. Determination of import duty uniformly
D. Restrictions on goods quality
D. Steel
1121. The system of Budget was introduced in
1115. Participatory Notes (PNs) are associated
India during the viceroyalty of: [Central Ex-
with which one of the following?
re
cise 1994]
A. Consolidated Fund of India
A. Canning
B. Foreign Institutional Investors
B. Dalhousie
Sh
C. United Nations Development Pro-

C. Ripon
gramme
D. Elgin
D. Kyoto Protocol
1122. When was paper currency first started in
1116. The fixed cost on such factors of produc- India?
tion which are neither hired nor bought by
i
the firm is called A. 1810

Ja
A. social cost B. 1715
B. opportunity cost C. 1635
C. economic cost D. 1542

1123. Which of the following taxes is levied by
D. surcharged cost
the Union and appropriated and planned by
1117. Real national income denotes: the states?
A. per capita income A. Service tax
B. national income at constant prices B. Stamp duty
C. national income at current prices C. Property tax
D. net factor income D. Passenger and freight duty
1118. The first 20-Point Programme was an- 1124. Neyveli Coal mine is located in the state
nounced by Smt. Indira Gandhi in of
A. Tamil Nadu A. Kerala

B. Karnataka B. Karnataka
C. Madhya Pradesh C. Madhya Pradesh
D. Orissa D. Tamil Nadu
1125. NITI Aayog or the National Institution 1130. Decimal coinage system was introduced
for Transforming India is a Government of in
India policy think-tank established by the
Narendra Modi government to replace A. 1912
er
A. The Planning Commission B. 1845
B. The Election Commission C. 1909
gd
C. Civil Service Commission D. 1957
1131. Bank rate is the rate of interest:
D. Public Service Commission
1126. A high rate of inflation tends to worsen A. At which public borrows money from
Commercial Banks
an
balance of payments because:
A. prices of imported goods rise B. At which public borrows money from
R.B.I.
B. prices of exported goods rise making ex-
ports less competitive C. At which Commercial Banks borrow
Ch
money from R.B.I.
C. prices of imported goods fall and hence
more is imported D. At which Commercial Banks borrow
money from the public
D. prices of exported goods fall and hence
less amount is obtained in terms of foreign 1132. ICICI is the name of a
exchange A. chemical industry
n
1127. On account of some national emergency B. bureau

or in order to carry out some secret mission,
ya
the government sometimes requires funds C. corporation

but may not give the details of the expendi- D. financial institution
ture estimates. The House grants some lump
sum for this called: 1133. Who prepared the first estimate of Na-
tional Income for the country?
a
A. emergency budget
A. Statistical Organization
ar
B. vote of Credit
B. National Income Committee
C. contingency bill
C. Dadabhai Naoroji
D. supplementary budget
N
D. National Sample Survey Organization

1128. Which industry in India was worst af-
fected because of the partition? [PCS 1994] 1134. A deflator is a technique of: [IAS 1992]
A. Paper and Iron A. adjusting for changes in price level
B. Jute and Cotton B. adjusting for change in commodity
C. Cotton and Sugar C. accounting for higher increase of GNP
D. Engineering and Cement D. accounting for decline of GNP
1129. Which of the following state is in the sec- 1135. When the price of a commodity falls, we
ond place in the production of Silver? can expect
107
A. the supply of it to increase A. Panipat

B. the demand for it to fall B. Moradabad
C. the demand for it to stay constant C. Khurja

D. Agra
D. the demand for it to increase
1136. Nationalisation of banks was done with producer of Quartz?
the purpose of:
A. Andhra Pradesh
A. financing the industries
B. Kerala
B. improving credit facilities C. Tamil Nadu
C. consolidating the economy D. Goa
D. improving security of deposits 1143. Average propensity to consume is defined
am
as
1137. Share of Direct tax in post economic re-
form is: A. Aggregate consumption Total population
A. decreasing
B. Aggregate income + Aggregate con-
B. increasing eR sumption
C. can’t say anything C. Change in consumption + Change in in-
come
D. fluctuating
D. Aggregate consumption ÷ Aggregate in-
1138. If the change in demand for a commodity
come
is at a faster rate than change in the price of
1144. The most appropriate measure of a coun-
re
the commodity, the demand is
try’s economic growth is the:
A. Perfectly inelastic
A. net domestic product
B. Elastic B. gross domestic product
Sh
C. Perfectly elastic C. net national product

D. Inelastic D. per capita real income
1139. Which of the following taxes is not shared 1145. The national income of a country is-
between the Union and the states? A. Government annual revenue
i
A. Income tax B. Total productive income

Ja
B. Excise duty C. Surplus of the public sector enterprise
C. Corporation tax D. Export- (Loan) Import

1146. Human Development Index was devel-
D. Sales tax oped by:
1140. What is the meaning of Devaluation? A. Amartya Sen
A. Reducing the value of currency B. Mahbub-ul-Haq
B. Issuing new currency C. Friedman
C. Appreciating the value of currency D. Montek Singh
1147. The principal reason why national eco-
nomic planning is still being pursued inspite
1141. New exim policy has chosen a town for of embracing a market economy since 1991
the pottery export: is that: [IAS 1994]
A. the vast quantity of capital already de- 1153. When did the Rupee become a freely con-
ployed in the public sector needs to be nur- vertible currency on current account, in In-
tured dia?
B. the market economy is mainly confined A. 2000
to industry and commerce and central plan- B. 2001
ning in agriculture is necessary
C. 1994
C. it is a constitutional requirement
D. 1999
D. Five Year Plans can continue to provide
1154. Which of the following items is a major
er
a long-term perspective to the economy in
item of Indian export?
market friendly fashions
1148. Economic problem arises mainly due to A. Computer chips
gd
B. Potato chips
A. Overpopulation
C. Textile garments
B. Unemployment
D. Car engines
C. Scarcity of resources
1155. When too much money is chasing too few
an
D. Lack of industries goods, the situation is
1149. What is the period of Eighth Five Year
A. Deflation
Plan?
B. Inflation
A. 1990-91 to 1991-92
Ch
C. Recession
B. 1991-92 to 1992-93
D. Stagflation
C. 1993-94 to 1995-96
1156. Which of the following bodies finalises
D. 1992-93 to 1996-97 the Five Year Plan proposals? [IAS 2002]
1150. National income accounting is the study A. Union Cabinet
of the income and expenditure of the entire
n
A. family
C. National Development Council
ya
B. state
D. Ministry of Planning
C. economy
1157. Architect of India’s Second Five Year
D. organization Plan model is
a
1151. Economic Planning is a subject: [Asstt A. Mahalanobis

Grade 1991]
B. Bramanandha
ar
A. in the State List

C. Harrod-Domar
B. in the Union List
D. Chakravarthi
C. in the Concurrent List
N
1158. Which among the following policy of Life

D. unspecified in any special list Insurance Company is related to regular old-
1152. Which of the following is not required age pension?
while computing Gross National Product A. Jivan Kishore
(GNP)?
B. Jivan Chhaya
A. Net foreign investment
C. Jivan Sanchay
B. Private investment D. None of these
C. Per capita income of citizens 1159. Which one of the following statements is
D. Purchase of goods by government not correct? [CDS 2009]
109
A. Nikkei is the stock market index for the C. Cotton manufacturing

Tokyo Stock Exchange D. Cultivation of crops
B. The National Association of Securities 1164. A very high rise in National Income at
Dealers Automated Quotations known as current market prices and a low rise at con-
NASDAQ, is an American stock exchange stant prices reveals
C. S and P CNX Nifty is the index for 50 A. the high rate of growth in - the economy
large companies on the Bombay Stock Ex- at the current period
change
B. the increased production in the current
D. Hang Seng Indexes record daily changes period
of the largest companies of the Hong Kong
C. the improper growth of the economy
stock market
1160. The objective of ’Jawahar Rojgar Yojana’ D. the high rate of inflation prevailing in the
am
is to economy
1165. Which of the following groups suffer the
A. Provide employment to youth in rural
most from inflation?
areas
A. Debtors
B. Create employment opportunities for un-
employed persons eR B. Creditors
C. Strengthen the rural economic and social C. Business class

structure D. Holders of real assets
D. All of the above 1166. Unemployment which occurs when work-
1161. ..... is the ex-officio chairman of Plan- ers move from one job to another job is
known as: [IAS 1992]
re
ning Commission and National Develop-
ment Council. A. seasonal unemployment
A. President B. frictional unemployment
Sh
B. Prime Minister C. cyclical unemployment

C. Finance Minister D. technological unemployment
D. Commerce Minister 1167. National income ignores [CDS 2012]
1162. As per the Minimum Reserves System A. sales of firm
Reserve Bank maintains
i
B. salary of employees
Ja
A. Rs.200 Crores Gold and Foreign Cur- C. exports of the IT sector

rency(min Gold Rs.115 cr)
D. sale of land
B. Rs.300 Crores Gold and Foreign Cur-
1168. Who is responsible for the collection and
publication of monetary and financial infor-
C. Rs.250 Crores Gold and Foreign Cur- mation?
A. Finance Ministry
D. Rs.350 Crores Gold and Foreign Cur- B. Finance Commission
1163. Which of the following is a part of tertiary
sector? D. Auditor and Comptroller General of In-
dia
A. Power and transportation
1169. Invisible Export means export [Corpora-
B. Animal Husbandry tion Bank PO 2011]
A. Services A. Output at factor cost

B. Prohibited goods B. Output at market prices
C. Unrecorded goods C. Goods and services less depreciation
D. Goods through smuggling D. Goods and services less cost of interme-
diate goods and services
1170. Social accounting system in India is clas-
sified into 1176. Taxation and the government’s expendi-
ture policy are dealt under the:
A. Income, product and expenditure
A. budget
er
B. Enterprise, households and government
B. trade policy
C. Assets, liabilities and debt position
C. fiscal policy
D. Public sector, Private sector and Joint
gd
D. monetary policy
sector
1177. The National Housing Bank was set up
1171. Invisible trade is a trade: [IAS 1992] in India as a wholly-owned subsidiary of
A. of the services like the bank, marine com- which one of the following? [IAS 2007]
an
panies and shipping companies A. State Bank of India
B. of government with public institutions B. Reserve Bank of India
C. of corporate and financial institutions C. ICICI Bank
with government
Ch
D. Life Insurance Corporation of India
D. of government with other countries 1178. What was the main aim of Seventh Five
1172. Which of the following organisations in year Plan?
India is mainly’ working to meet the credit A. Agriculture
needs of all types of agricultural and rural
development activities? B. Food, Work and Productivity
n
C. Industries
A. FCI
D. Poverty Eradication
B. IDBI
ya
1179. Investment multiplier shows the effect of

C. NABARD investment on
D. ICAR A. Employment
1173. Green banking means B. Savings
a
A. development of forestry by banks C. Income

ar
B. financing of environmental friendly D. Consumption

projects by banks 1180. ICI is the name associated with
C. financing of irrigation projects by banks A. a MNC which manufactures chemicals
N
D. None of the above B. Indian Cement Industry

1174. The system of issuing and monitoring of C. Chamber of Commerce and Industry
money in the market is known as?
D. a private sector bank
A. Proportional reserve ratio 1181. The study of population is called:
B. Fixed reserve ratio A. Cartography
C. Minimum reserve ratio B. Anthropology
D. Floating reserve ratio C. Demography
1175. Value-added means value of D. Biography
111
1182. At present, India is following A. Production of wheat by a farmer

A. Fixed exchange rate B. Production of medicines by a company
B. Floating exchange rate C. Services given by a nurse in hospital
C. Pegged up exchange rate D. Services done by a house-wife in her

own house
D. Pegged down exchange rate
1188. The Rajya Sabha should return the Money
1183. A rising Per Capita Income will indicate Bills to the Lok Sabha within
a better welfare if it is accompanied by
A. One month
A. Unchanged Income distribution overall
B. three months
B. Changed Income distribution in favour
C. 14 days
of rich
am
D. six months
C. Changed Income distribution in favour
of poor 1189. The implementation of Jawahar Rojgar
Yojana rests with.
D. Changed Income distribution in favour
A. Gram Panchayats
of Industrial Labour
1184. BoP (Balance of Payment) refers to: B. District Collectors
eR C. State Governments
A. transactions in the flow of capital
D. Union Government
B. transactions relating to receipts and pay-
ment of invisibles 1190. Which of the following is an indirect tax?
C. transactions relating only to exports and A. Corporation Tax

re
imports B. Excise Duty
D. systematic record of all its economic C. Wealth Tax
transaction with the rest of the world
Sh
D. Capital Gains Tax

1185. In the short run, a producer continues 1191. In gross domestic saving by sector of ori-
his production as long as he covers: [As- gin, the four sectors in order of importance
stt Grade 1992] are:
A. fixed cost A. Household Sector, Corporate Sector,
i
B. variable cost Government Sector, Public Enterprises

Ja
C. average cost B. Household Sector, Public Enterprises,

Government Sector, Corporate Sector
D. marginal cost
C. Government Sector, Household Sector,
1186. The term utility means Public Enterprises, Corporate Sector
A. Usefulness of a commodity D. Household Sector, Government Sector,
B. The satisfaction which a commodity Public Enterprises, Corporate Sector
yields 1192. An individual’s actual standard of living
can be assessed by
C. The service which a commodity is capa-
ble of rendering A. Gross National Income
D. None of these B. Net National Income

1187. Which activity is not included in produc- C. Per Capita Income
tion? D. Disposable Personal Income
1193. An amount given by a government agency A. Kolkata

or even private body to encourage a particu- B. Hyderabad
lar economic activity is a:
C. Hoshangabad
A. loan
D. Dewas
B. grant
1199. Which one of the following represents the
C. subsidy Savings of the Private Corporate Sector?
D. mutual fund A. Dividends paid to shareholders
er
1194. Which of the following is not shared by B. Total profits of a company
the Centre and the States?
C. Undistributed profits
A. Corporation Tax
D. Excess of income over expenditure
gd
B. Sales Tax
1200. The total value of goods and services, pro-
C. Income Tax duced’ in a country during a given period is
D. Union Excise Duties [CPO SI 2011]
1195. The steel plants at Durgapur, Bhilai and A. National income
an
Rourkela were established during the period B. Disposable income
of: [NDA 1990]
C. Per capita income
A. First Five Year Plan
D. Net national income
Ch
B. Second Five Year Plan
1201. Identify the correct sequence of the es-
C. Third Five Year Plan tablishment of steel plants in India from the
D. Fourth Five Year PIan earliest to the latest: [NDA 2002]
1196. The National Income is more at current A. Bokaro, Jamshedpur, Vishakhapatnam,
prices than at constant prices because: [CDS Bhilai
n
1992] B. Jamshedpur, Bhilai, Bokaro, Vishakhap-

A. increase in price is equal to increase in atnam
ya
production C. Bhilai, Jamshedpur, Vishakhapatnam,

B. increase in price is more than production Bokaro
D. Jamshedpur, Vishakhapatnam
C. increase in production is more than in- 1202. The number of Banks nationalized since
a
crease in price 1969 is: [PCS 1994]

ar
D. of decrease in production only A. 12

1197. "Sunrise Industries" are Industries: B. 8
A. which are well-developed and have am- C. 14
N
ple scope for further development

D. 20
B. which improve export performance of 1203. Demand-pull inflation may be caused by:
the country
A. A reduction in interest rates.
C. which are small-scale industries
B. An increase in costs
D. which have high growth potential and
meet further requirements of the economy C. A reduction in government spending.
1198. The special paper required for printing of D. An outward shift in aggregate supply
currency notes by the Security Presses In the 1204. Different firms constituting the Industry,
country is manufactured at: produce homogeneous goods under
113
A. Monopoly A. Growth in Per capita Real Income from

year to year
B. monopolistic competition
B. Growth in National Income at Current
C. oligopoly
Prices
D. Perfect competition C. Growth in savings ratio
1205. National Development Council was set D. Improvement in the Balance of Pay-
up in: ments Position
A. 1952 1211. Malhotra committee was appointed on
B. 1948 A. Insurance sector Reforms
C. 1950 B. Industrial Sickness
am
D. 1951 C. Employment Opportunities and Fical
1206. The period of high inflation and low eco- Transparency
nomic growth is termed as: [RRB 1992] D. Banking Reforms
A. take-off stage in economy 1212. A Multinational is: [CDS 1991]
B. stagnation
C. stagflation
D. none of these
eR A. a company operating in several countries
B. a company having shareholders from

more than one country
1207. Who propounded the ’market law? C. a company which does charitable work
in poor countries
re
A. Adam Smith
B. J.B. Say D. a company that operates only in those
countries that do not have import restrictions
C. T.R. Malthus
Sh
D. David Recardo 1213. The per capita income is obtained by:

1208. The difference in the value of visible ex- A. dividing national income by the popula-
ports and visible imports is called: tion
A. Balance Sheet of items B. summing up the income of all the citi-
i
zens of the country

B. Balance of Payments
Ja
C. estimating the minimum income of indi-

C. Balance of Trade
vidual citizens
D. Balance of Account D. dividing the total national capital with
1209. Who presides over the National Develop- the profit earned
ment Council? 1214. Meera Seth committee was appointed on
A. Home Minister A. Handloom Sector
B. Prime Minister B. Lone System
C. Vice-President C. Public Sector Disinvestment
D. RBI Governor D. Capital Account Convertibility of rupee
1210. The best Index of Economic Development 1215. The smaller the Cash Reserve Ratio, the
is provided by: scope for lending by banks is:
A. Greater 1221. Under perfect competition: [GIC AAO

1993]
B. Smaller
A. any firm can influence supply in the mar-
C. Weaker
ket
D. Lesser
B. any firm can influence price in the mar-
1216. The highest body which approves the Five ket
Year Plan in India is the
C. any firm can influence price and supply
A. Planning Commission in the market
er
B. National Development Council D. no firm can influence price and supply
in the market
C. Finance Ministry
1222. Funds which flow into a country to take
gd
D. Union Cabinet advantage of favourable rates of interest in
1217. National Planning committee is appointed that country is called
under the presidentship of Jawaharlal Nehru A. Cold Money
in
B. Black Money
an
A. 1930
C. Hot Money
B. 1932
D. White Money
C. 1936 1223. Consumer’s sovereignty means:
Ch
D. 1938 A. consumers are free to spend their income
1218. The Five Year Plans of India intend to as they like
develop the country industrially through: B. consumers have the power to manage the
[NDA 1991] economy
A. the private sector C. consumer’s expenditures influence the
n
B. the public sector allocation of resources

D. consumer goods are free from govern-
ya
C. the public, private, joint and Cooperative

sectors ment control
1224. Singhbhum Copper mine is located in the
D. increasing collaboration with non-
state of
resident Indians
a
A. Orissa
1219. Which car has been the best seller in India
in 2004-2005? B. Tamil Nadu
ar
A. Maruti800 C. Gujarat
B. Maruti Suzuki Alto D. Jharkhand

N
1225. Capital: Output Ratio of a measures

C. Tata lndica
A. its per unit cost of production
D. Santro Xing
B. the amount of capital invested per unit
1220. Which amidst the following is not a credit
of output
rating agency?
C. the ratio of capital depreciation to quan-
A. CRISIL tity of output
B. CARE D. the ratio of working capital employed to
C. ICRA quantity of output
1226. National Income is also called as:
D. IFCI
115
A. GNP at Factor Cost A. Reserve Bank of India

B. GNP at Market Price B. Central Bank of India
C. NNP at Factor Cost C. State Bank of India
D. NNP at Market Price D. Punjab National Bank
1227. Which of the following are the quantita- 1232. In public budgets, zero-base budgeting
tive techniques of RBI? was first introduced in
A. Bank Rate and Cash Reserve Ratio A. United States of America

(CRR) B. United Kingdom
B. Statutory Liquidity Ratio (SLR) C. France
C. Open Market Operations D. Sweden
am
D. All the above 1233. Open market operation refers to
1228. When the Reserve Bank of India an- A. borrowing by commercial banks from
nounces an increase of the Cash Reserve the R.B.I.
’Ratio, what does it mean? [IAS 2010] B. lending by scheduled banks to non-
scheduled banks
A. The commercial banks will have less
money to lend
eR
B. The Reserve Bank of India will have less
C. purchase and sale of Government securi-
ties by the R.B.I.
money to lend D. purchase and sale of bonds and securi-
ties by the Central Govt.
C. The Union Government will have less
money to lend 1234. Who amongst the following has never
re
held post of the Governor of the RBI? [RBI
D. The commercial banks will have more Grade B Officer 2011]
money to lend
A. Usha Thorat
Sh
1229. What is the name of the electronic com-

munication network of the Reserve Bank of B. C. Rangarajan
India? C. Manmohan Singh
A. BOLT D. Bimal Jalan
B. RBISAT 1235. In India, maximum number of workers
i
are employed in:

C. RBINET
Ja
A. iron and steel industry

D. RBIDOT
B. textile industry
1230. What is the main function of Central Sta-
tistical Organization (CSO)? C. petrochemical industry
A. Determination of money supply D. automobile industry

1236. Bank deposits that can be withdrawn with-
B. Collection of estimates of national in-
out notice are called
come
A. account payee deposits
C. Collection of detail data regarding em-
ployment B. fixed deposits
D. Price determination C. variable deposits
1231. The central banking functions in India are D. demand deposits

performed by the 1237. Indirect tax means:
A. There is not direct relationship between 1243. Division of labour is the result of’
the tax payer and the government
A. Complicated work
B. Direct relationship between tax payer
and the government B. Excessive pressure
C. Tax base is income C. Excess supply of labour

D. The incidence and impact are on the D. Specialization
same person on whom tax is imposed
1244. Which one of the following is the correct
1238. Which one of the following statements is
er
statements? Service tax is a/an [IAS 2006]
correct?
A. Good money drives bad money out of A. indirect tax levied by the Central Gov-
circulation ernment
gd
B. Bad money drives good money out of B. direct tax levied by the Central Govern-
circulation ment
C. Good and bad money cannot circulate C. direct tax levied by the State Govern-
together ment
an
D. Cannot say D. indirect tax levied by the State Govern-
1239. An expenditure that has been made and ment
cannot be recovered is called
1245. Nature of unemployment in agriculture in
Ch
A. Variable cost India is
B. Opportunity cost
A. Only seasonal
C. Sunk cost
B. Only disguised
D. Operational cost
1240. Which of the following is not a necessary C. Both (a) and (b)
n
condition for the development of India? D. None of the above

A. Capital Accumulation
ya
1246. Hazaribagh Copper mine is located in the

B. Resource discovery state of
C. Population growth A. West Bengal
D. Technological development
B. Maharashtra
a
1241. Which of the following is a better mea-

surement of Economic Development? C. Jharkhand
ar
A. GDP D. Chhattisgarh
B. Disposable income 1247. Net factor income from abroad added to
N
C. NNP GDP gives:

D. Per capita income A. GNP
1242. The best measure to assess a country’s
B. NNP
economic growth is
A. Per capita income at constant prices C. NDP
B. Per capita income at current prices D. per capita income
C. Gross domestic product at current prices 1248. With reference to India, which one of the
following statements is NOT correct? [IAS
D. Gross national product at current prices 2003]
117
A. IPCL is India’s largest petrochemical 1254. What are “Open Market Operations"?
company [SSC Graduate 2003]
B. RIL is the largest private sector· com- A. Activities of SEBI-registered brokers
pany in India B. Selling of currency by the RBI
C. MTNL is listed on NYSE C. Selling of gilt-edged securities by the
D. BSNL is the first telecom service organi- Government
zation in India to launch a nationwide cellu- D. Sale of shares by FIIs
lar service at one time
1255. Which from the following is not a
1249. In accounting terms, what constitutes the Navaratna PSU?
’closings stock’?
A. SAIL
A. Net Investment
B. LIC
am
B. Gross Investment-Capital Losses
C. IOC
C. Opening Stock-Capital Losses
D. ONGC
D. Opening Stock + Net Investment - 1256. The National Stock Exchange functions
Capital Losses from:
1250. Which amidst the following banks was eR A. New Delhi
converted to a ’Universal Bank’ recently?
B. Mumbai
A. Punjab National Bank
C. Nagpur
B. ICICI Bank
D. Kolkata
C. UTI Bank
1257. One of the reasons for India’s occupa-
re
D. Indus-Ind Bank tional structure remaining more or less the
1251. Banking amendment bill reduced SBI same over the years has been that: [IAS
holding in its seven subsidiary banks from 1995]
Sh
A. 85% to 50% A. people are largely unaware of the sig-

nificance of transition from agriculture to
B. 90% to 75%
industry for economic development
C. 75% or more to 51%
B. productivity in agriculture has been high
D. 65% or more to 49% enough to induce people to stay with agri-
culture
i
1252. Which one of the following pairs is not

correctly matched? [CDS 2008]
Ja
C. investment pattern has been directed to-

A. Tata Steel - Corus Group wards capital intensive industries
B. Hindalco Industries - Novelis D. ceilings on land holdings have enabled
more people to- own land and hence their
C. Jet Airways - Air Sahara preference to stay with agriculture
D. Kingfisher Airlines - MDLR Airlines 1258. "World Development Report" is an annual
1253. The Regional Rural Development Banks publication of: [IAS 2002]
(RRDB) are established based on the recom- A. United Nations Development Pro-
mendations of the gramme
A. Narasimhan Committee B. International Bank of Reconstruction
B. Swaminathan Committee and Development
C. Saraya Committee C. World Trade Organisation
D. Malhotra Committee D. International Monetary Fund
1259. In the budget figures of the Government 1265. Which of the following names/terms is
of India, interest payments, subsidies, pen- NOT associated with the World Trade Or-
sions, social services and the like are parts ganization (WTO)? [Punjab & Sindh
of the Bank 2011]
A. Plan Expenditure A. GATI
B. State Government Expenditure B. UNCTAD
C. Public Debt in the form of Capital Ex- C. GATS

penditure D. SEWA
er
D. Non-plan Expenditure 1266. One of the essential conditions of Monop-
olistic competition is
1260. Which of the following cost curve is never
A. Many buyers but one seller
gd
’U’ shaped?
A. Marginal cost curve B. Price discrimination
B. Average variable cost curve C. Product differentiation

D. Homogeneous product
an
C. Average fixed cost curve
1267. A fall in demand or rise in supply of a
D. Average cost curve commodity-
1261. The terms "Micro Economics" and A. Increases the price of that commodity
"Macro Economics" were coined by
Ch
B. decreases the price of that commodity
A. Alfred Marshall
C. neutralizes the changes it the price
B. Ragner Nurkse
D. determines the price elasticity
C. Ragner Frisch 1268. Central Sales tax is levied by
D. J.M. Keynes A. Central government
n
1262. Lead Bank system was started in B. State Government

A. 1968 C. Finance Commission
ya
B. 1967 D. Planning Commission

C. 1969 1269. Which of the following state is the leading
producer of Copper Ore?
a
D. 1970
A. Rajasthan
1263. "Legal Tender Money" refers to:
ar
B. Bihar
A. Cheques
C. Madhya Pradesh
B. Drafts D. Maharashtra
N
C. Bill of exchange 1270. How does the consumer benefit with

VAT? [CPO SI 2003]
D. Currency notes
A. It reduces the cost of production
1264. The ratio of a bank’s cash holdings to its
total deposit liabilities is called the B. It removes tax on tax and thus reduces
price-rise
A. Variable Reserve Ratio
C. With the abolition of the sales tax
B. Cash Reserve Ratio
D. Due to the exemption of small Busi-
C. Statutory Liquidity Ratio nesses from the tax within certain limits pre-
D. Minimum Reserve Ratio scribed by the State
119
1271. Which of the following are the qualitative 1277. Equilibrium price is the price when:
control methods?
A. supply is greater than demand
A. Margins
B. supply is less than demand
B. Maximum limit of credit for specific pur-
C. demand is very high
poses
D. supply is equal to demand
C. Differential interest rates on certain
types of advances 1278. The Indian budget includes:
D. All the above A. revised estimates for the current year
1272. Inflation is caused by: B. budget estimates for the following year
A. Increase in supply of goods C. actual figures of the preceding year
B. Increase in cash with the government D. all of these
am
C. Decrease in money supply 1279. The ’Slack Season’ in the Indian Econ-
D. Increase in money supply omy is:
1273. An economy is in equilibrium when A. Sept. - Dec.
A. planned consumption exceeds planned eR B. March - April
saving
C. Jan. - June
B. planned consumption exceeds planned
D. Feb. – April
investment
1280. Which of the following is not an affiliate
C. intended investment equals intended in-
of the Reserve Bank of India?
vestment
re
A. Unit Trust of India
D. intended investment exceeds intended
savings B. The Industrial Development Bank of In-
1274. For whom was the first departmental life dia
Sh
insurance started? C. Agricultural Refinance Corporation

A. Army D. Deposit Insurance Corporation
B. Civil officers of Central Government 1281. The ’break-even point’ is where
C. Employees of postal department A. marginal revenue equals marginal cost
i
D. Life Insurance Corporation B. average revenue equals average cost

Ja
1275. Main bearers of the burden of indirect tax C. total revenue equals total cost
are:
D. None of these
A. traders
1282. Legal Tender Money is
B. manufacturers
A. accepted only by Government
C. consumes
B. accepted by people and Government as
D. tax payers
per the law
1276. The proceeds of income tax go to
C. not accepted for business purposes by
A. Central Government law
B. State Government D. not accepted by Government
C. Centre and States 1283. Which of the following concepts are most
D. Corporation authorities closely associated with J.M. Keynes?
A. Control of money supply B. the market value of all final goods and
B. Marginal utility theory services produced in an economy
C. Indifference curve analysis C. the market value of all final goods and
services produced in an economy plus indi-
D. Marginal efficiency of capital
rect taxes
1284. Interest on public debt is part of
D. the market value of all final goods and
A. Transfer payments by the enterprises services produced in an economy plus indi-
B. Transfer payments by the government rect taxes minus subsidies
er
C. National income 1286. While estimating national income which
D. Interest payments by households of the following is not taken into account?
1285. Gross National Product at market prices A. Services of a teacher
gd
is defined as: [CPO AC 2003]
B. Services of a doctor
A. the market value of all final goods and
C. Services of a housewife
services produced in an economy taking into
account net factor income from abroad D. Services of a maid servant
an
Answers
1. D 2. B 3. B 4. A 5. B 6. D 7. D 8. C 9. C 10. A 11. A 12. B 13. B 14. D

Ch
15. B 16. A 17. B 18. D 19. C 20. D 21. D 22. C 23. B 24. A 25. D 26. A
27. C 28. D 29. D 30. A 31. D 32. C 33. C 34. B 35. D 36. B 37. B 38. B
39. C 40. D 41. D 42. A 43. D 44. A 45. C 46. B 47. A 48. B 49. A 50. B
51. B 52. A 53. C 54. C 55. B 56. D 57. A 58. A 59. B 60. A 61. C 62. D
63. C 64. B 65. C 66. A 67. D 68. B 69. A 70. D 71. A 72. D 73. A 74. C
75. C 76. C 77. A 78. D 79. D 80. C 81. A 82. B 83. C 84. C 85. B 86. B
87. D 88. B 89. B 90. B 91. A 92. B 93. A 94. D 95. C 96. A 97. A 98. A
n
99. B 100. D 101. D 102. B 103. B 104. D 105. B 106. B 107. C 108. C 109. C
110. B 111. D 112. C 113. A 114. C 115. B 116. D 117. C 118. D 119. C 120. D
ya
121. B 122. B 123. C 124. D 125. A 126. D 127. C 128. D 129. D 130. D 131. C
132. B 133. A 134. D 135. C 136. A 137. A 138. C 139. B 140. D 141. A 142. B
143. D 144. A 145. A 146. A 147. C 148. A 149. A 150. A 151. C 152. B 153. A
154. B 155. B 156. C 157. A 158. B 159. B 160. D 161. C 162. A 163. C 164. B
a
165. C 166. C 167. C 168. A 169. C 170. A 171. A 172. B 173. C 174. A 175. B
176. B 177. B 178. B 179. B 180. C 181. C 182. C 183. B 184. B 185. B 186. B
ar
187. C 188. C 189. D 190. D 191. C 192. D 193. B 194. A 195. D 196. A 197. C
198. D 199. A 200. B 201. B 202. D 203. A 204. C 205. D 206. C 207. A 208. B
209. A 210. C 211. C 212. C 213. A 214. D 215. B 216. C 217. C 218. C 219. C
220. A 221. B 222. A 223. A 224. D 225. B 226. A 227. D 228. A 229. D 230. A
N
231. D 232. B 233. D 234. D 235. B 236. B 237. A 238. C 239. A 240. C 241. B
242. D 243. B 244. A 245. C 246. D 247. C 248. C 249. B 250. D 251. B 252. B
253. A 254. A 255. D 256. D 257. C 258. D 259. B 260. C 261. A 262. C 263. B
264. C 265. A 266. C 267. B 268. A 269. C 270. D 271. B 272. C 273. C 274. A
275. C 276. A 277. D 278. A 279. C 280. C 281. C 282. B 283. C 284. C 285. D
286. A 287. B 288. D 289. C 290. D 291. B 292. C 293. D 294. A 295. A 296. B
297. B 298. A 299. C 300. B 301. A 302. B 303. C 304. C 305. A 306. A 307. D
308. A 309. C 310. A 311. A 312. C 313. C 314. A 315. A 316. A 317. A 318. D
319. B 320. C 321. C 322. C 323. B 324. D 325. B 326. C 327. B 328. D 329. B
330. B 331. D 332. A 333. A 334. B 335. D 336. C 337. D 338. D 339. B 340. C
121
341. C 342. C 343. A 344. A 345. D 346. C 347. A 348. A 349. C 350. C 351. A
352. B 353. B 354. C 355. D 356. B 357. A 358. D 359. C 360. A 361. D 362. B
363. B 364. B 365. C 366. D 367. C 368. C 369. A 370. C 371. B 372. D 373. C
374. C 375. B 376. C 377. B 378. D 379. B 380. C 381. D 382. A 383. A 384. D
385. B 386. D 387. C 388. C 389. D 390. C 391. B 392. C 393. B 394. C 395. B
396. C 397. B 398. A 399. C 400. D 401. A 402. B 403. B 404. D 405. C 406. D
407. C 408. B 409. D 410. B 411. B 412. C 413. C 414. C 415. B 416. A 417. C
418. B 419. B 420. C 421. B 422. D 423. C 424. C 425. B 426. B 427. C 428. B
429. C 430. C 431. A 432. D 433. B 434. A 435. C 436. C 437. D 438. D 439. A
440. D 441. C 442. A 443. D 444. A 445. C 446. D 447. D 448. B 449. B 450. D
451. D 452. C 453. D 454. A 455. B 456. A 457. C 458. B 459. B 460. D 461. A
462. D 463. B 464. A 465. A 466. C 467. A 468. B 469. C 470. C 471. C 472. C
473. C 474. B 475. D 476. C 477. C 478. C 479. C 480. A 481. A 482. D 483. A
484. B 485. D 486. D 487. B 488. D 489. B 490. A 491. A 492. D 493. C 494. D
am
495. D 496. C 497. C 498. A 499. B 500. D 501. D 502. C 503. C 504. D 505. A
506. A 507. C 508. D 509. D 510. C 511. B 512. D 513. C 514. A 515. C 516. C
517. A 518. D 519. D 520. B 521. C 522. B 523. D 524. A 525. A 526. B 527. C
528. C 529. C 530. C 531. D 532. A 533. A 534. B 535. B 536. A 537. B 538. C
539. C 540. D 541. D 542. A 543. B 544. A 545. A 546. B 547. B 548. C 549. C
550. B
561. D
572. C
551. B
562. C
573. B
552. A
563. C
574. B
553. A
564. A
575. B
554. C
565. D
576. C
eR
555. B
566. C
577. C
556. B
567. C
578. B
557. A
568. C
579. D
558. B
569. A
580. A
559. D
570. C
581. B
560. D
571. A
582. C
583. B 584. A 585. D 586. A 587. C 588. A 589. B 590. A 591. B 592. C 593. A
594. C 595. B 596. A 597. A 598. B 599. C 600. C 601. D 602. C 603. D 604. D
605. B 606. B 607. D 608. B 609. B 610. A 611. B 612. C 613. B 614. D 615. A
re
616. A 617. A 618. A 619. D 620. D 621. B 622. D 623. B 624. D 625. C 626. A
627. B 628. C 629. C 630. B 631. D 632. B 633. A 634. C 635. A 636. A 637. D
638. C 639. A 640. C 641. C 642. A 643. B 644. C 645. A 646. B 647. C 648. B
Sh
649. A 650. C 651. B 652. B 653. D 654. A 655. D 656. D 657. C 658. C 659. A
660. C 661. A 662. C 663. A 664. A 665. B 666. A 667. D 668. B 669. C 670. A
671. A 672. D 673. B 674. D 675. D 676. D 677. C 678. A 679. D 680. D 681. B
682. B 683. C 684. D 685. C 686. B 687. B 688. B 689. C 690. B 691. A 692. A
693. D 694. A 695. C 696. B 697. D 698. A 699. B 700. A 701. B 702. B 703. C
704. C 705. A 706. D 707. D 708. A 709. A 710. D 711. B 712. C 713. C 714. C
i
715. A 716. D 717. B 718. C 719. B 720. C 721. D 722. D 723. B 724. D 725. C
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726. B 727. B 728. D 729. B 730. C 731. A 732. D 733. B 734. B 735. D 736. D
737. C 738. A 739. D 740. D 741. A 742. D 743. B 744. C 745. A 746. D 747. A
748. C 749. C 750. D 751. D 752. A 753. C 754. D 755. A 756. C 757. C 758. B
759. A 760. B 761. D 762. D 763. C 764. A 765. C 766. B 767. B 768. B 769. C
770. B 771. A 772. D 773. D 774. D 775. D 776. C 777. B 778. C 779. A 780. C
781. A 782. B 783. A 784. D 785. B 786. B 787. A 788. C 789. B 790. A 791. D
792. C 793. B 794. B 795. B 796. C 797. D 798. C 799. C 800. C 801. A 802. C
803. C 804. A 805. C 806. D 807. B 808. D 809. B 810. D 811. C 812. B 813. D
814. C 815. C 816. A 817. B 818. B 819. B 820. B 821. A 822. B 823. D 824. B
825. B 826. B 827. D 828. C 829. D 830. C 831. D 832. D 833. A 834. C 835. B
836. B 837. C 838. B 839. A 840. A 841. D 842. A 843. D 844. D 845. A 846. B
847. D 848. C 849. A 850. B 851. C 852. B 853. B 854. D 855. B 856. C 857. D
858. C 859. D 860. B 861. D 862. A 863. D 864. B 865. A 866. A 867. D 868. D
869. B 870. C 871. C 872. D 873. A 874. A 875. D 876. B 877. D 878. B 879. C
880. D 881. B 882. D 883. B 884. B 885. C 886. A 887. D 888. C 889. C 890. D
891. C 892. D 893. A 894. D 895. A 896. C 897. D 898. C 899. D 900. D 901. C
902. A 903. D 904. B 905. B 906. B 907. D 908. D 909. D 910. A 911. C 912. D
913. A 914. D 915. A 916. D 917. D 918. D 919. A 920. C 921. C 922. B 923. C
924. B 925. C 926. A 927. A 928. D 929. B 930. A 931. A 932. A 933. B 934. D
935. C 936. C 937. D 938. C 939. B 940. B 941. A 942. B 943. D 944. C 945. A
946. A 947. A 948. D 949. D 950. B 951. C 952. B 953. D 954. C 955. B 956. D
957. A 958. B 959. D 960. A 961. A 962. B 963. C 964. D 965. A 966. C 967. B
968. D 969. C 970. C 971. B 972. C 973. A 974. C 975. A 976. A 977. D 978. D
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979. A 980. C 981. A 982. C 983. B 984. C 985. B 986. A 987. D 988. C 989. A
990. D 991. C 992. C 993. C 994. A 995. D 996. B 997. D 998. D 999. B 1000. C
1001. A 1002. B 1003. B 1004. C 1005. B 1006. A 1007. A 1008. D 1009. D 1010. D
1011. B 1012. D 1013. D 1014. C 1015. B 1016. D 1017. D 1018. C 1019. C 1020. B
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1021. C 1022. A 1023. C 1024. C 1025. C 1026. B 1027. D 1028. B 1029. D 1030. B
1031. A 1032. D 1033. B 1034. D 1035. A 1036. D 1037. C 1038. C 1039. C 1040. D
1041. D 1042. A 1043. D 1044. B 1045. D 1046. B 1047. D 1048. C 1049. A 1050. D
1051. B 1052. C 1053. C 1054. D 1055. D 1056. B 1057. D 1058. B 1059. C 1060. A
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1061. B 1062. B 1063. B 1064. D 1065. C 1066. A 1067. C 1068. A 1069. B 1070. C
1071. C 1072. D 1073. A 1074. A 1075. C 1076. D 1077. C 1078. D 1079. A 1080. A
1081. D 1082. C 1083. A 1084. B 1085. C 1086. B 1087. A 1088. D 1089. A 1090. B
1091. A 1092. A 1093. A 1094. B 1095. C 1096. C 1097. C 1098. B 1099. C 1100. C
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1101. D 1102. A 1103. C 1104. A 1105. C 1106. B 1107. D 1108. B 1109. A 1110. C
1111. D 1112. B 1113. D 1114. C 1115. B 1116. A 1117. B 1118. C 1119. A 1120. C
1121. A 1122. D 1123. B 1124. A 1125. A 1126. B 1127. B 1128. B 1129. B 1130. D
1131. C 1132. D 1133. C 1134. A 1135. D 1136. C 1137. B 1138. C 1139. D 1140. A
1141. C 1142. A 1143. D 1144. D 1145. B 1146. B 1147. D 1148. C 1149. D 1150. C
1151. B 1152. C 1153. C 1154. D 1155. B 1156. C 1157. A 1158. D 1159. C 1160. D
1161. B 1162. A 1163. A 1164. D 1165. B 1166. B 1167. B 1168. C 1169. A 1170. A
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1171. A 1172. C 1173. B 1174. C 1175. D 1176. C 1177. B 1178. B 1179. C 1180. A
1181. C 1182. B 1183. C 1184. D 1185. A 1186. B 1187. D 1188. C 1189. A 1190. B
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1191. A 1192. C 1193. C 1194. B 1195. B 1196. C 1197. D 1198. C 1199. C 1200. A
1201. B 1202. D 1203. A 1204. D 1205. A 1206. C 1207. B 1208. C 1209. B 1210. A
1211. A 1212. A 1213. A 1214. A 1215. A 1216. B 1217. D 1218. C 1219. B
1220. D 1221. C 1222. C 1223. A 1224. D 1225. B 1226. A 1227. D 1228. A 1229. C
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1230. B 1231. A 1232. A 1233. C 1234. A 1235. B 1236. D 1237. A 1238. B 1239. C
1240. C 1241. D 1242. A 1243. D 1244. A 1245. C 1246. C 1247. A 1248. A 1249. D
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1250. B 1251. C 1252. D 1253. C 1254. C 1255. B 1256. B 1257. A 1258. B 1259. D
1260. C 1261. C 1262. C 1263. D 1264. B 1265. D 1266. C 1267. B 1268. A 1269. C
1270. B 1271. D 1272. D 1273. C 1274. C 1275. C 1276. C 1277. D 1278. D 1279. C
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1280. A 1281. B 1282. B 1283. D 1284. B 1285. A 1286. C

123
Explanations 11 In economics, a production function re-

lates physical output of a production process
to physical inputs or factors of production.
1 Privatization is the process of transfer-
ring an enterprise or industry from the public
12 Dadabhai Naoroji estimated the Na-
sector to the private sector. The public sec-
tional Income for the first time in India.
tor is the part of the economic system that
is run by government agencies. The term
has alternate meanings within business and 13 FEMA was passed in the winter ses-
finances. sion of Parliament in 1999, replacing the
Foreign Exchange Regulation Act (FERA).
2 The Accounting Year of Reserve Bank

of India runs from July to June. 17 If an industry is characterized by
am
economies of scale then long run unit costs
of production decreases as the quantity the
3 The Bureau of Alcohol, Tobacco, firm produce increases.
Firearms and Explosives (ATF) is a fed-
eral law enforcement organization within
the United States Department of Justice. In 20 Moral Suasion is not a quantitative
it no subsidy is given.
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credit control measure of a Central Bank.
21 in economics, occurs when assets or

4 "Internal economies are those
money rapidly flow out of a country, due to
economies in production which occur to
an event of economic consequence.
the firm itself when it expands its output or
re
enlarge its scale of production".
23 US $40 billion.
6 The Indian economy can be most appro-

Sh
priately described as a Mixed economy. 24 TCS Indian company secured the high-
est export revenue from IT software and ser-
vices during the past two years.
7 Besides this pivotal role, NABARD also:
Acts as a coordinator in the operations of ru-
ral credit institutions Extends assistance to 30 The supply of labour in the economy
i
the government, the Reserve Bank of India depends on Population.

Ja
and other organizations in matters relating

to rural development Offers training and re- 31 The Tenth Finance Commission of In-
search facilities for banks, cooperatives and dia was incorporated in the year 1995 con-
organizations working in the field of rural sisting of Shri Krishna Chandra Pant as the
development Chairman.
8 Disinflation is a slowing in the rate of 42 Plant and machinery are Producers’

price inflation. It is used to describe in- goods.
stances when the inflation rate has reduced
marginally over the short term. Although
43 The present Indian monetary system is
it is used to describe periods of slowing in-
based on minimum reserve system.
flation, disinflation should not be confused
with deflation, which can be harmful to the
economy. 45 Those who cultivate the land of others.
46 J.M. Keynes defined investment as "the long-term maturities, which carry greater
construction of a new capital asset like ma- risk, because all other factors being equal,
chinery or factory building". investors prefer cash or other highly liquid
holdings.
47 The Liquidity Preference Theory of
Interest was pro pounded by J.M. Keynes. 64 The Minimum Wages Act 1948 is an
Act of Parliament concerning Indian labour
49 Industry or process where a larger por- law that sets the minimum wages that must
be paid to skilled and unskilled labours.
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tion of total costs is due to labor as com-
pared with the portion for costs incurred in
purchase, maintenance, and depreciation of
65 Matrix method is not a method of esti-
capital equipment. Labour surplus economy
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mating national income, while others are.
also a part of it.
50 Monopolistic competition is a type of 66 Industrial or business equipment is

imperfect competition such that many pro- also leased. Broadly put, a lease agreement
an
ducers sell products that are differentiated is a contract between two parties, the lessor
from one another. Product differentiation is and the lessee. The lessor is the legal owner
the most important feature of monopolistic of the asset; the lessee obtains the right to
competition. use the asset in return for regular rental pay-
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ments. A leasing company provides machin-
ery and capital equipment on hire.
51 There is involuntary unemployment in
full employment.
68 Tire supply of agricultural products is
generally Inelastic . because Inelastic is an
54 The monetary policy of India is formu- economic term used to describe the situation
n
lated by RBI. in which the quantity demanded or supplied

of a good or service is unaffected when the
ya
57 Credit will increase. price of that good or service changes. Inelas-

tic means that when the price goes up, con-
60 Cash in the vault. sumers’ buying habits stay about the same,
and when the price goes down, consumers’
a
buying habits also remain unchanged.

61 Narrow specialization of tasks within a
production process so that each worker can
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become a specialist in doing one thing, es- 69 A firm is in equilibrium when its, MC
pecially on an assembly line. In traditional = MR (Marginal cost equals the marginal
industries (see sunset industries), division of revenue).
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labor is a major motive force for economic-

growth. The division of labour is limited by
extent of the market. 70 Net national product. Net national
product (NNP) refers to gross national prod-
uct (GNP), i.e. the total market value of
62 Jayaprakash Narayan wrote the book
all final goods and services produced by
”Why Socialism”.
the factors of production of a country or
other polity during a given time period, mi-
63 The liquidity preference theory sug- nus depreciation. Thus, Gross National
gests that an investor demands a higher in- Product- Depreciation Allowance = Net Na-
terest rate, or premium, on securities with tional Product
125
71 Prime cost is equal to Variable cost earned within the domestic economy by for-
plus administrative cost. eign residents. Net exports represent the
difference between what a country exports
minus any imports of goods and services.
72 The measure of a worker’s real wage is
calculate the purchasing power of a worker
from his earnings. 93 A variable cost is a corporate expense
that varies with production output. Variable
costs are those costs that vary depending on
74 It was J.B. Say.
a company’s production volume; they rise as
production increases and fall as production
76 Raj Krishna coined the term ’Hindu decreases. This costs is related to marginal
rate of growth’ for Indian economy. cost.
am
77 Rs-80000 94 There is no impact on Gross National
Product.
81 India currently supplies 500MW of

power to Bangladesh through West Bengal. 96 Today, the Indian Railways India’s
With the additional export of 100MW start- biggest nationalized enterprise.
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ing Wednesday, this figure now goes up to
600MW. 98 Operating Surplus arises in the govern-
ment sector mostly.
82 It is due to tax evasion.
re
99 Laissez faire is the belief that
86 Varada Grameen Bank. economies and businesses function best
when there is no interference by the govern-
87 In economics, a production function re- ment. It comes from the French, meaning to
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lates physical output of a production process leave alone or to allow to do. It is one of the
to physical inputs or factors of production. guiding principles of capitalism and a free
The production function is one of the key market economy.
concepts of mainstream neoclassical theo-
ries, used to define marginal product and to 101 A mixed economy works primarily
i
distinguish allocative efficiency, the defining through the market mechanism guided by
focus of economics.
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Government participation and planning.
88 Accept sound collateral.

102 Ministry of Finance.
90 Gross national product (GNP) is an

106 His most significant contribution was
estimate of total value of all the final prod-
the Chamberlinian monopolistic competi-
ucts and services produced in a given pe-
tion theory. Chamberlin published his book
riod by the means of production owned by
The Theory of Monopolistic Competition in
a country’s residents. GNP is commonly
1933.
calculated by taking the sum of personal
consumption expenditures, private domestic
investment, government expenditure, net ex- 107 Personal Income is equal to Personal
ports, and any income earned by residents disposable income plus miscellaneous re-
from overseas investments, minus income ceipts of the Government.
108 Economic growth is dependent 128 An exclusive economic zone (EEZ)

mainly on level of investment. is a sea zone prescribed by the United Na-
tions Convention on the Law of the Sea over
which a state has special rights regarding
115 In less developed economies, the pri-
the exploration and use of marine resources,
mary sector will comprise the biggest part
including energy production from water and
of the economy. Typically as an economy
wind.
develops, increased labour productivity will
enable workers to leave the agricultural sec-
tor and move to other sectors, such as manu- 133 Gross national product -Net national
er
facturing and the service sector. product.
135 In India Central Statistical Organi-

117 Increasing unemployment.
gd
zation responsible for estimating National
Income.
118 The theory of price, also known as
price theory, is a microeconomics principle 138 Dissimilarity is decreasing in income
an
that involves the analysis of supply and de- distribution.
mand in determining an appropriate price
point for a good or service. This simple the-
139 Human capital is a measure of the
ory of determining prices is one of the core
economic value of an employee’s skill set.
principles underlying economic theory.
Ch
This measure builds on the basic production
input of labor measure where all labor is
119 It is known as Social overheads capi- thought to be equal. The concept of human
tal. capital recognizes that not all labor is equal
and that the quality of employees can be im-
120 9th Five Year Plan. proved by investing in them; the education,
n
experience and abilities of employees have

economic value for employers and for the
121 Gresham’s law is a monetary princi- economy as a whole. and Knowledge, tech-
ya
ple stating that "bad money drives out good." nical skill, education etc. in economics, are
In currency valuation, Gresham’s Law states mainly regarded as human capital.
that if a new coin ("bad money") is assigned
the same face value as an older coin con-
a
taining a higher amount of precious metal 142 Dear Money is when it is expensive
("good money"), then the new coin will be to borrow money because of high real in-
ar
used in circulation while the old coin will be terest rates. For example, if bank rates are
hoarded and will disappear from circulation. 10% and inflation is 6%. The effective real
interest rate is 4% which is quite high.
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122 A progressive tax is a tax in which the

143 Capital depreciation.
tax rate increases as the taxable amount in-
creases. The term "progressive" refers to the
way the tax rate progresses from low to high, 144 Production function explains the rela-
with the result that a taxpayer’s average tax tionship between initial inputs and ultimate
rate is less than the person’s marginal tax output.
rate.
145 Salaries of administrative staff is not
123 Basically, SDR is known as ”Paper a fixed cost. because it is a variable cost,
gold”. which changes time to time.
127
146 AGMARK is a certification mark em- 161 Net National Product in National In-
ployed on agricultural products in India, as- come Accounting refers to Gross National
suring that they conform to a set of standards Product Depreciation.
approved by the Directorate of Marketing
and Inspection, an agency of the Govern-
ment of India. 163 The basic regulatory authority for mu-
tual funds and stock markets lies with the
SEBI.
150 When people spend less than they
earn because there are not enough goods
available to buy or because goods are too ex- 164 The ’Canons of Taxation’ were pro-
pensive. Forced saving plays an important pounded by Adam Smith.
role in explaining how expansionary mone-
tary policy generates artificial booms. 165 Agricultural Income Tax is not the
am
source of the revenue of central Govern-
151 A teacher teaching his own daughter ment.
at home is not a economic activity. It is a
non-economic activity. because she will not 167 Trading in securities.
get money for it.
153 This is true, Production is needed for

creating demand. Without production the
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168 Four tier hierarchy of the Banking
structure.
level of demand is not to be increased.
169 HPCL Ltd.
154 Reserve Bank of India.
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171 Oligopoly is a market structure in
156 Point in time (or in number of which a small number of firms has the large
units sold) when forecasted revenue exactly majority of market share. An oligopoly is
Sh
equals the estimated total costs; where loss similar to a monopoly, except that rather
ends and profit begins to accumulate. This than one firm, two or more firms dominate
is the point at which a business, product, or the market. There is no precise upper limit
project becomes financially viable. to the number of firms in an oligopoly, but
the number must be low enough that the ac-
tions of one firm significantly impact and
i
157 Under full cost pricing, price is de- influence the others. Cigarette industry is
Ja
termined by adding a margin to the average most closely approximates our definition of
cost. oligopoly.
158 A hierarchical database model is a

data model in which the data is organized 172 Gross domestic product (GDP) is the
into a tree-like structure. The data is stored monetary value of all the finished goods and
as records which are connected to one an- services produced within a country’s borders
other through links. A record is a collection in a specific time period. Put simply, GDP
of fields, with each field containing only one is a broad measurement of a nation’s overall
value. economic activity.
160 It is determined by the equality be- 173 Indian agriculture is typically charac-
tween marginal cost (MC) and marginal rev- terized as land scarce, labour surplus econ-
enue(MR). omy.
174 This means that, currently, the Orga- 196 The first term is average revenue
nization has a total of 13 Member Countries. (AR), which refers to the revenue per unit
of output sold. It is obtained by dividing the
total revenue by the number of units sold.
175 A country’s balance of trade is unfa-
The second term is marginal revenue (MR),
vorable when Imports exceed exports.
which is the additional revenue generated
from the sale of an additional unit of output.
178 To ensure better utilization of irriga-
tion potential. 201 A bank rate is the interest rate at
er
which a nation’s central bank lends money
179 In India, Special Economic Zones to domestic banks, often in the form of very
were established to enhance foreign invest- short-term loans. Managing the bank rate is
gd
ment. because the main objective of SEZ is method by which central banks affect eco-
to enhance the foreign investment. nomic activity. Lower bank rates can help to
expand the economy by lowering the cost of
funds for borrowers, and higher bank rates
180 Consumer Protection Act, 1986 is an help to reign in the economy when inflation
an
Act of the Parliament of India enacted in is higher than desired.
1986 to protect the interests of consumers in
India.
202 SEBI stands for ’Securities and Ex-
change Board of India.
Ch
188 It will include Precautionary motive.
203 Research and development expendi-
189 Open market operations (OMO) ture is the money spent on creative work
refers to the buying and selling of govern- undertaken on a systematic basis to increase
ment securities in the open market in order the stock of knowledge and the use of this
n
to expand or contract the amount of money knowledge to devise new applications. ir-
in the banking system, facilitated by the Fed- rigation expenditure is a developmental ex-
eral Reserve (Fed). penditure.
ya
190 A mixed economic system is an eco- 204 Winning a lottery is not Included in
nomic system that features characteristics the National Income.
a
of both capitalism and socialism. A mixed

economic system protects private property 205 An increase in national income be-
ar
and allows a level of economic freedom in cause of an increase in price is called an

the use of capital, but also allows for gov- increase in money national income.
ernments to interfere in economic activities
in order to achieve social aims.
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206 The Insurance Regulatory and De-

velopment Authority (IRDA) is a national
191 RBI does not transact the business agency run by the Government of India. In-
with J & K state governments. surance sector is also regulated by IRDA.
192 V. K. R. V. Rao (Vijayendra Kasturi 207 Increased export and improvement in

Ranga Varadaraja Rao), (1908-1991) was a balance of payment.
prominent Indian economist, politician, pro-
fessor and educator. He has done pioneering 210 The Reserve Bank of India was na-
work on National Income. tionalised with effect from 1st January, 1949
129
on the basis of the Reserve Bank of India 231 A fixed cost is a cost that does not
(Transfer to Public Ownership) Act, 1948. change with an increase or decrease in the
All shares in the capital of the Bank were amount of goods or services produced or
deemed transferred to the Central Govern- sold. Fixed costs are expenses that have
ment on payment of a suitable compensa- to be paid by a company, independent of
tion. any business activity. It is one of the two
components of the total cost of running a
business, along with variable cost. Fixed
211 The first condition of equilibrium is
cost is known as Overhead cost.
that the net force in all directions must be
zero. The second condition of static equilib-
rium says that the net torque acting on the 232 The Consumer Price Index reflects
object must be zero. In equilibrium, the net The Consumer Price Index (CPI) is a mea-
force and torque in any particular direction sure that examines the weighted average of
am
equal zero. All these are denote to internal prices of a basket of consumer goods and
factor changes. services, such as transportation, food and
medical care. It is calculated by taking price
changes for each item in the predetermined
219 Book building is a systematic pro- basket of goods and averaging them.
cess of generating, capturing, and recording
investor demand for shares during an ini-
tial public offering (IPO), or other securities
during their issuance process, in order to
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233 Dr. YV Reddy.
support efficient price discovery.

234 Cost of production of the producer
is given by sum of wages, interest, rent and
re
220 Distribution of food rains operates un- normal profit.
der a two tier system with the introduction
of Targetted Public Distribution System.
235 A good or service that is consumed
Sh
by the end user and does not require any

221 To Encourage exports is the main aim further processing.
of devaluation.
237 A closed economy is self-sufficient,
222 The value of a commodity expressed meaning no imports are brought in and no
in terms of money is known as its price. exports are sent out, the goal being to pro-
i
vide consumers with everything they need

Ja
from within the economy’s borders. A

223 Statutory liquidity ratio (SLR) is the
closed economy is the opposite of an open
Indian government term for reserve require-
economy, in which a country conducts trade
ment that the commercial banks in India re-
with outside regions.
quire to maintain in the form of gold, govern-
ment approved securities before providing
credit to the customers. Statutory Liquidity 238 10 kg.
Ratio is determined by Reserve Bank of In-
dia maintained by banks in order to control
244 Per capita income or average income
the expansion of bank credit.
measures the average income earned per per-
son in a given area (city, region, country,
230 SEZ was first introduced in China. etc.) in a specified year. It is calculated by
India was inspired by China for setting up dividing the area’s total income by its total
of SEZ. population.
245 Bharat Heavy Electricals Limited 267 It is depends upon aggregate demand
Coal India Limited GAIL (India) Limited in the economy.
Indian Oil Corporation Limited NTPC Lim-
ited Oil & Natural Gas Corporation Limited
270 Both go on simultaneously in cycle.
Steel Authority of India Limited
246 a payment made or income received 271 AFC (Average fixed cost) will fall.
in which no goods or services are being paid
for, such as a benefit payment or subsidy.
er
273 Open market operations (OMO)
refers to the buying and selling of govern-
249 Marginal cost is the cost of producing ment securities in the open market in order
an extra unit of output. to expand or contract the amount of money
gd
in the banking system, facilitated by the Fed-
eral Reserve.
250 A non-bank financial institution
(NBFI) is a financial institution that does not
have a full banking license or is not super- 275 Food production is not a part of in-
an
vised by a national or international banking frastructure sector. because Food production
regulatory agency. LIC is also an example includes industries that take raw food prod-
of Non-Banking financial institutions. ucts and convert them into marketable food
items.
Ch
251 Micro-level sociology looks at small-
scale interactions between individuals, such 277 Less than the average cost.
as conversation or group dynamics. That’s
why study of sales of TISCO will consider 279 Insurance Policies is not considered
in it from the national point. as National Debt.
n
256 Industrial exit policy means allowing 280 A nation’s money supply is deter-
ya
business units to dose down. mined by the monetary policy actions of its
central bank. and Central bank of India is
259 Second Five-Year Plan. RBI(Reserve Bank of India). Thus, money
supply is governed by the Reserve Bank of
a
263 Price discrimination is a microeco- India.

nomic pricing strategy where identical or
ar
largely similar goods or services are trans- 281 The decimal system of Indian cur-
acted at different prices by the same provider rency was started in 1957.
in different markets. Price discrimination is
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a feature of Monopoly.
282 Minimum reserve system is a type of
note issue system followed in India.
264 Marginal productivity of labour does
not determine supply of labour.
284 Commercialization of agriculture im-
plies production of crops for sale.
266 Public sector Punjab National Bank
(PNB) has taken over Kozhikode-based
Nedungadi Bank Ltd (NBL). All the 174 285 Diversification of exports is the main
branches of the erstwhile private bank are factors that led to rapid expansion of Indian
now working as PNB branches. exports.
131
286 Finance Commission decides about Welfare Policy and Rarajeshwari Mahila
The States’ share in central taxes. Kalyan Bima Yojana (New) to improve the
lot of the girl child and women respectively.
287 Black market transactions usually oc- This has been done in pursuance of the an-
cur "under the table" to let participants avoid nouncement made by the Prime Minister on
government price controls or taxes. The 15th August, last year. As a part of the cele-
black market is also the venue where highly brations to mark the completion of one year
controlled substances or products such as of his government in office, the Prime Min-
drugs and firearms are illegally traded. ister will formally dedicate these schemes
to the nation on 19th March, 1999.
288 Gross profit is a company’s total rev- 302 Inventory is the raw materials, work-
enue (equivalent to total sales) minus the in-process products and finished goods that
cost of goods sold. Gross profit is the profit
am
are considered to be the portion of a busi-
a company makes after deducting the costs ness’s assets that are ready or will be ready
associated with making and selling its prod- for sale. Inventory represents one of the
ucts, or the costs associated with providing most important assets of a business because
its services. the turnover of inventory represents one of
the primary sources of revenue generation
eR
289 A free goods is a goods that is not and subsequent earnings for the company’s
scarce, and therefore is available without shareholders.
limits. A free goods is available in as great
a quantity as desired with zero opportunity 306 The market price is related to very
cost to society. Seawater, fresh air, etc., are short period.
regarded in Economics as free goods.
re
307 increase in capital return.
290 upliftment of the poorest of the poor.
Sh
308 In economics, tax incidence or tax

291 MICR stands for Magnetic Ink Char- burden is the analysis of the effect of a par-
acter Recognition. It is a technology ticular tax on the distribution of economic
which allows machines to read and process welfare. Tax incidence is said to "fall" upon
cheques enabling thousands of cheque trans- the group that ultimately bears the burden
actions in a short time. MICR code is usu- of, or ultimately has to pay, the tax.
i
ally a nine digit code comprising of some

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important information about the transaction 309 Currently it is 7.(At present, notes in
and the bank. India are issued in the denomination of Rs.5,
Rs.10, Rs.20, Rs.50, Rs.100, Rs.500 and
293 Foreign currency which has a ten- Rs.1000).but now as per the ban of Rs.500
dency of quick migration is called Hot cur- and Rs.1000,it will be change.
rency.
310 The ’sunrise industries’ Imply petro-
297 In 1948, the Minimum Wages Act chemicals and electronics industry.
was enacted in India.
313 ’Gold’ is mainly related to Interna-
301 The General Insurance Corporation tional market.
of India (GIC) has launched two new Insur-
ance schemes, namely, Bhagyashree Child 314 3.5%
318 Structural unemployment is a form 334 Monetary policy in India is formu-

of unemployment caused by a mismatch be- lated by RBI (Reserve Bank of India), who
tween the skills that workers in the econ- is the Central bank of India.
omy can offer, and the skills demanded of
workers by employers. It is arises due to
inadequate productive capacity. 336 The excess of price a person is to pay
rather than forego the consumption of the
commodity is called Producers’ surplus.
319 It means holding assets in the form
of cash.
er
339 Black money is money which is
321 A mixed economy refers to an eco- earned through any illegal activity con-
nomic system where Both the government trolled by country regulations. Black money
gd
and the private sectors operate sectors oper- proceeds are usually received in cash from
ate simultaneously. underground economic activity and, as such,
is not taxed. Recipients of black money
must hide it, spend it only in the under-
323 Dadabhai Naoroji had estimated Na- ground economy, or attempt to give it the ap-
an
tional Income in India first. pearance of legitimacy through money laun-
dering. It makes the monetary policies less
327 When there is a change in demand effective.
leading to a shift of the Demand Curve to
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the right, at the same price as before, the
quantity demanded will Increase. 340 The symbol of Reserve Bank of India
is Tiger before a Palm tree.
328 The green gross domestic product

(green GDP or GGDP) is an index of eco- 343 A currency with a value that fluctu-
n
nomic growth with the environmental conse- ates as a result of the country’s political or
quences of that growth factored into a coun- economic uncertainty. As a result of the of
try’s conventional GDP. this currency’s instability, foreign exchange
ya
dealers tend to avoid it. also known as a

"weak currency".
329 Liberalism is a political philosophy
or worldview founded on ideas of liberty and
a
equality. Whereas classical liberalism em-

345 Functional finance is an economic the-
phasizes the role of liberty, social liberalism
ory proposed by Abba P. Lerner, based on
ar
stresses the importance of equality. The 19th

effective demand principles and chartalism.
century saw liberal governments established
It states that government should finance it-
in nations across Europe, South America,
self to meet explicit goals, such as taming
and North America.
N
the business cycle, achieving full employ-

ment, ensuring growth, and low inflation.
331 Because its supply is inelastic in the
long run.
346 Non-Legal Tender Money or Op-
tional Money: It refers to that form of
332 The sum of currency in circulation
money, which is generally accepted, but
and the demand deposits in banks.
legally, one is not bound to accept it. For
example, cheques, bank drafts, bills of ex-
333 It removes tax on tax and thus reduces change, etc. do not have legal backing and
price-rise. their acceptance is totally optional.
133
348 Regional Rural Banks are sponsored name was applied to a division of the Rem-
by Nationalized Commercial Bank. ington Rand company and successor organi-
zations. UNIVAC is an acronym for univer-
sal Automatic Computer.
350 Sick industrial Companies Act was
the BIFR established.
375 If total utility is maximum at a point,
351 During periods of inflation, tax rates then marginal utility is zero.
should increase.
377 Household sector contributed more
352 Purchase of a house. to the savings in India. The household sec-
tor includes the entire population of society.
It includes all of the consumption-seeking
353 It is between food supply and popu-
am
members of society-the entire population.
lation growth.
380 If two commodities are complements,

355 Payment made for the use of land.
then their cross-price elasticity is negative.
356 Decrease.
357 The value of exports to be added and

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381 Inflation can be checked threw de-
creasing money supply.
the value of imports to be subtracted.

383 In economics, an inferior good is a
good whose quantity demanded decreases
re
362 Expenses incurred in the marketing when consumer income rises (or quantity
and distribution of a product. demanded rises when consumer income de-
creases).
Sh
364 Income tax does not such cause rise

in price. 385 Monopolistic competition is a type of
imperfect competition such that many pro-
365 ’Hire and Fire’ is the policy of mixed ducers sell products that are differentiated
economy. from one another (e.g. by branding or qual-
ity) and hence are not perfect substitutes.
i
Ja
366 The difference between GNP and

NNP equals to depreciation. 386 It refers to the number of potential
buyers of the product.
370 Land revenue.

388 Deficit financing is an instrument of
credit policy.
372 In a developing country like India,
Agriculture sector have a high rate of dis-
guised unemployment. 389 Consumer’s surplus is the highest in
the case of necessities.
373 UNIVAC is the name of a line of
electronic digital stored-program comput- 391 In economics, Gresham’s law is a
ers starting with the products of the Eckert- monetary principle stating that "bad money
Mauchly Computer Corporation. Later the drives out good".
392 Reserve Bank of India (RBI) is In- 410 If the income elasticity of demand
dia’s central bank. Central bank of a country being greater than one, the commodity must
execute multiple functions such as oversee- be a luxury.
ing monetary policy, issuing currency, man-
aging foreign exchange, working as a bank
of government and as banker of scheduled 411 There is a inverse relationship in case
commercial banks, etc. It also works for of price of a commodity and the demand of
overall economic growth of the country. a commodity.
er
394 In the context of the stock market, 412 Government securities are usually
IPO stands for Initial Public Offer. considered low-risk investments because
they are backed by the taxing power of a
gd
government.
398 ’NABARD’ is mainly associated with
the development of Agricultural sector and
rural areas. 413 A quota is a government-imposed
trade restriction that limits the number, or
an
399 Selling expense (or sales expense) monetary value, of goods that can be im-
includes any costs incurred by the sales de- ported or exported during a particular time
partment. Salesperson salaries and wages. period. Quotas are used in international
Sales administrative staff salaries and wages. trade to help regulate the volume of trade
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Commissions. between countries.
402 Bank of India. 414 The main and official approach in In-
dia is to exclude drawing down of the cash
balance.
403 Open Market Operations refer to the
n
purchase and sale of the Government secu-

rities (G-Secs) by RBI from to market. The 416 For more than 25 years, Core Indus-
objective of Open Market Operations is to tries has delivered quality services in Ter-
ya
adjust the rupee liquidity conditions in the minal and Shipping, Oil Field and Pipeline,
economy on a durable basis. Material Handling, and many of our other
diversified solutions. Basic industries are
also core industries.
a
404 on the basis of their deposits.

ar
417 Depository Services refers to an

405 Capital formation in an economy de-
agency for safe-keeping of securities.
pends on Total savings.
N
406 Services of night-watchmen is in- 419 Gross total of all capital assets minus
cluded in the national income account. wear and tear.
407 In the long-run equilibrium, a com- 420 The RBI issues currency notes under
petitive firm earns Normal profit. the Fixed Minimum Reserve System.
409 The economy has to increase the rate 421 The main aim of National Social As-
of investment and reduce the capital output sistance Programme is to provide old age
ratio. pension to very poor peoples.
135
422 These all are the factors which comes 444 The Securities and Exchange Board
under it. Economic development is depends of India (SEBI) is the regulator for the secu-
upon all these factors. rities market in India. It was established in
the year 1992 and given statutory powers on
12 April 1992 through the SEBI Act, 1992.
426 Steel industry is the best example of
a capital intensive industry in India.
451 A Treasury bill (T-Bill) is a short-
term debt obligation backed by the U.S. gov-
429 The supply curve is a graphical rep- ernment with a maturity of less than one
resentation of the relationship between the year, sold in denominations of $1,000 up to
price of a good or service and the quantity a maximum purchase of $5 million.
supplied for a given period of time.
am
453 It will make our exports more com-
431 Per capita income or average income petitive, is not true about VAT.
measures the average income earned per per-
son in a given area (city, region, country,
etc.) in a specified year. It is calculated by 454 According to Keynesian theory of in-
dividing the area’s total income by its total come determination, at full employment, a
population.
433 In economics, tax incidence or tax

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fall in aggregate demand causes a fall in
prices of output and resources.
455 Their number now stands at 16.

burden is the analysis of the effect of a par-
ticular tax on the distribution of economic
457 Dumping, in reference to interna-
re
welfare. Tax incidence is said to "fall" upon
the group that ultimately bears the burden tional trade, is the export by a country or
of, or ultimately has to pay, the tax. company of a product at a price that is lower
in the foreign market than the price charged
Sh
in the domestic market. As dumping usually

435 In case of salt, the price of salt is de- involves substantial export volumes of the
creases and the demand is always constant. product, it often has the effect of endanger-
ing the financial viability of manufacturers
437 Newspaper is the most accessible or producers of the product in the importing
nation.
i
medium in India.
Ja
459 The ’Interest Rate Policy’ is a com-

438 The theory of distribution relates with
ponent of Monetary Policy.
equality in the distribution of the income and
wealth.
461 Bihar is the state where the income
of people is too low.
439 From 65% to 75% is the extent of
change of the literacy rate envisaged by the
end of the Xth Five Year Plan. 462 FourthFiveYearPlan-1966-71 is not
correct.
441 1975. 1975
465 Electricity is having elastic demand.
442 In case of consumption, when invest-
ment and saving are equal. 472 Gross domestic income.
476 Inventories accumulate. 493 Provision of Urban Amenities to Ru-

ral Areas (PURA) is a strategy for rural de-
477 Both of statements are true- NTPC velopment in India. This concept was given
has diversified to hydropower sector. by former president Dr. A.P.J. Abdul Kalam
b.Power Grid Corporation has diversified and discussed in his book Target 3 Billion
into telecom sector. which he co-authored with Srijan Pal Singh.
478 It is also the 17th largest petroleum 494 It will be the next best alternative out-
company in the world. Indian Oil Corpora- put.
er
tion Limited is the country’s largest commer-
cial enterprise, with a sales turnover of Rs
495 In economics, protectionism is the
1,23,628 crore ($27.47 billion) and profits
economic policy of restraining trade be-
gd
of Rs 6,115 crore ($1.28 billion) for fiscal
tween states (countries) through methods
2002.
such as tariffs on imported goods, restrictive
quotas, and a variety of other government
480 Extension or contraction of quantity regulations.
an
demanded of a commodity is a result of a
change in the unit price of the commodity.
496 State Bank Of India.
481 Value of output and value added can

Ch
be distinguished if we know the value of 499 Education, Health and Civil ameni-
intermediate consumption. ties.
500 Selling expense (or sales expense)

482 They are concave to each other is not
includes any costs incurred by the sales de-
a feature of Indifference Curve.
partment. The expenses on advertising is
n
also called selling cost.

484 When marginal revenue product is
greater than wage, then it is said to be ex-
ya
ploitation of labour. 501 A free market is a system in which

the prices for goods and services are deter-
mined by the open market and consumers,
486 Full convertibility of a rupee means in which the laws and forces of supply and
a
determination of rate of exchange between demand are free from any intervention by
rupee and foreign currencies freely by the a government, price-setting monopoly, or
ar
market forces of demand and supply. other authority. Consumer’s sovereignty is

one of the feature of a free market economy.
488 An overdraft occurs when money is
N
withdrawn from a bank account and the 503 The BASIC ECONOMIC PROB-
available balance goes below zero. In this LEM arises because resources are scarce,
situation the account is said to be overdrawn. but human wants are unlimited. Any re-
sources that are not scarce are called FREE
490 A central place. GOODS.
492 In economics, consumer sovereignty 504 A bilateral monopoly is a market

is the assertion that consumer preferences structure consisting of both a monopoly (a
determine the production of goods and ser- single seller) and a monopsony (a single
vices. buyer).
137
506 Free trade is the economic policy of 530 Kisan Credit Card is a credit card to
not discriminating against imports from and provide affordable credit for farmers in In-
exports to foreign jurisdictions. Buyers and dia. Started in 1998 by the joint efforts of
sellers from separate economies may vol- Government of India, Reserve Bank of India
untarily trade without the domestic govern- (RBI), and National Bank for Agriculture
ment applying tariffs, quotas, subsidies or and Rural Development (NABARD) to help
prohibitions on their goods and services. farmers access timely and adequate credit.
509 The Bretton Woods Institutions are 531 One of the objective of Indus trial
the World Bank, and the International Mon- licensing policy in India was to ensure
etary Fund ( IMF ). Among of these, Orga- balanced industrial development across re-
nization of Economic Cooperation and De- gions.
velopment (OECD) is not a Bretton Woods
am
Institutions.
533 Economists divide the factors of pro-
duction into four categories: land, labor, cap-
510 A teacher teaching his own daughter
ital, and entrepreneurship organization.
at home, is not an economic activity.
516 Investment method is not a method

to measure national income.
eR
534 In India, one-rupee coins and notes
and subsidiary coins are issued by the Cen-
tral Government.
517 Alternatively, NNP can be calculated
as: NNP = Gross National Product - Depre- 535 When there is one buyer and many
re
ciation sellers then that situation is called Single
buyer right.
519 As per the TRIPS Agreement - 1994,
a good originating from a region with spe-
Sh
536 A turnover tax is similar to VAT, with

cific character quality reputation is covered the difference that it taxes intermediate and
to be protected under the IPR(Intellectual possibly capital goods. It is an indirect tax,
Property Rights) as GI which is stands for typically on an ad valorem basis, applicable
Geographical Indicator. to a production process or stage. For ex-
ample, when manufacturing activity is com-
i
520 Canon of simplicity . pleted, a tax may be charged on some com-

Ja
panies.
522 Agricultural products.

537 Inflation occurs when aggregate sup-
ply is less than aggregate demand.
523 Regulation of International Trade is
not an objective of Fiscal Policy in India.
538 comparative differences in costs.
525 Joint sector industries are owned
jointly by the government and private indi- 540 Economic profit or normal profit is
viduals who have contributed to the capital. the same as Net profit.
In joint sector, both public sector and private
sector join hands to establish new enterprise.
Maruti Udyog Limited is also an example 542 The balance of trade (BOT) is the
of joint-sector enterprise in India. difference between a country’s imports and
its exports for a given time period. The bal- 554 In Economics, production means, cre-
ance of trade is the largest component of the ating utility.
country’s balance of payments (BOP).
555 The foremost characteristic of

543 Rs.100. oligopoly is interdependence of the various
firms in the decision making. This fact is
545 An upward sloping demand curve in- recognized by all the firms in an oligopolis-
dicates that demand for a good or service in- tic industry. If a small number of sizeable
er
creases as price increases. Upward sloping firms constitute an industry and one of these
demand curves are the result of conspicuous firms starts advertising campaign on a big
consumption and products known as "Giffen scale or designs a new model of the prod-
goods." uct which immediately captures the market,
gd
it will surely provoke countermoves on the
part of rival firms in the industry. Thus dif-
546 In economics, Gresham’s law is a
ferent firms are closely inter dependent on
monetary principle stating that "bad money
each other.
drives out good". For example, if there are
an
two forms of commodity money in circula-
tion, which are accepted by law as having 557 National Income mean the total value
similar face value, the more valuable com- of all goods and services produced in the
modity will disappear from circulation. country during a period of one year.
Ch
549 Finance Commission.
558 Decrease in money supply can be
used for checking inflation temporarily.
551 AGMARK is a certification mark em-
ployed on agricultural products in India, as-
suring that they conform to a set of standards 559 Gross Domestic Product is defined
n
approved by the Directorate of Marketing as the value of all final goods and services
and Inspection, an agency of the Govern- produced in an economy in a year.
ya
ment of India.
560 The Annapurna Scheme has been

552 Intermediate consumption is a na- launched with effect from 1st April, 2000.
tional accounts concept which measures the
a
It aims at providing food security to meet

value of the goods and services consumed the requirement of those senior citizens
as inputs by a process of production. It ex-
ar
who, though eligible, have remained uncov-

cludes fixed assets whose consumption is ered under the National Old Age Pension
recorded as consumption of fixed capital. Scheme(NOAPS).
N
553 Consumer spending is another term

for voluntary private consumption, or an ex- 563 When there is an official change in
change of money for goods and services. the exchange rate of domestic currency, then
Contemporary measures of consumer spend- it is called Revaluation.
ing include all private purchases of durable
goods, nondurables and services. In a purely 565 GNP minus depreciation allowances.
free market, the aggregate level of private
consumer spending in an economy is nec-
essarily equal to the total market value of 566 Increase in the stock of unsold arti-
economic output. cles items is not considered as investment.
139
570 The law of demand is a microeco- 591 Decrease in the external value of
nomic law that states, all other factors being money.
equal, as the price of a good or service in-
creases, consumer demand for the good or
593 We will call this statutory liquidity
service will decrease, and vice versa.
ratio.
571 Change in the price of the goods. 596 Basically, Monopoly is the market
structure is the demand curve of the market
represented by the demand curve of the firm.
573 Excise duty, Custom duty and Income
tax.
597 Ways and means advances (WMA)
575 Economic rent does not arise when is a mechanism used by Reserve Bank of
am
the supply of a factor unit is perfectly elastic. India (RBI) under its credit policy by which
provides to the States banking with it to help
them to tide over temporary mismatches in
577 In 1969. the cash flow of their receipts and payments.
578 In India indirect taxes are regressive

in nature. They are consumption based taxes.
Service tax, value added tax, customs and
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598 Free trade centres is land, which is re-
stricted to SEZ (Special Economic Zones).
excise duty etc are examples of indirect

601 In equilibrium, a perfectly competi-
taxes. It is considered to be regressive be-
tive firm will equate, when marginal revenue
cause the poor are made to pay as much tax
with marginal cost.
re
as the rich due to their consumption.
603 The Report of Vijay Kelkar Commit-

579 It comes under capital receipts. tee relates to Tax Reforms.
Sh
582 Because of their nature, In demand 605 Both have different meanings.
curve it shows that price and quantity de-
manded are inversely proportional and also
606 Net National Product at factor cost.
inversely related.
i
608 There are currently 27 public sector

Ja
583 In a period of inflation and price rises banks in India out of which 19 are nation-
the supply of money remains increases. alised banks.
584 The difference between the price the 610 Proportional to the income of tax pay-
consumer is prepared to pay for a commod- ers.
ity and the price which he actually pays is
called Consumer’s Surplus. 611 A merchant bank is a financial insti-
tution providing capital to companies in the
form of share ownership instead of loans. It
585 Purchasing power parity (PPP) is a
is a international trade among countries.
theory which states that exchange rates be-
tween currencies are in equilibrium when
their purchasing power is the same in each 614 ECS is an electronic mode of funds
of the two countries. transfer from one bank account to another. It
can be used by institutions for making pay- 639 Central bank will lower the cash re-
ments such as distribution of dividend inter- serve ratio.
est, salary, pension, among others. It can
also be used to pay bills and other charges 640 National Rural Employment Guaran-
such as telephone, electricity, water or for tee Act 2005 was later renamed as the "Ma-
making equated monthly installments pay- hatma Gandhi National Rural Employment
ments on loans as well as SIP investments. Guarantee Act" (or, MGNREGA), is an In-
ECS can be used for both credit and debit dian labour law and social security measure
purposes. that aims to guarantee the ’right to work’.
er
615 A want becomes a demand only when 643 Kinked demand curve is a feature of
it is backed by the Ability to purchase. Oligopoly.
gd
617 Horizontal to x-axis. 644 The fish catch by Indian fishermen in
the international waters are part of the GDP
of India.
an
618 J.A. Schumpeter propounded the in-
novation theory of profits.
645 Excise duty on a commodity is
payable with reference to its production.
622 Income of watchmen is included in
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national income.
649 Inflation is the rate at which the gen-
eral level of prices for goods and services
623 . Kaldor has suggested tax on expen- is rising and, consequently, the purchasing
diture. power of currency is falling. Central banks
attempt to limit inflation, and avoid defla-
627 It is used to measure the capital ration, in order to keep the economy running
n
tio that would be used for the production of smoothly.

some output over a certain period of time.
ya
If depreciation of capital is assumed as con- 650 A holding which will yield the farm-
stant, then the capital output ratio is calcu- ers at least a subsistence is known as Eco-
lated by the ratio of GDP invested each year. nomic holding.
a
634 An explicit cost is a direct payment 651 In a highly developed country the rel-
ar
made to others in the course of running a ative contribution of agriculture to GDP is

business, such as wage, rent and materials, relatively low.
as opposed to implicit costs, which are those
where no actual payment is made.
N
653 Damodar Valley Corporation is the

first Public Sector Corporation of indepen-
637 What it can earn in some other use, is dent India.
a opportunity cost of a factor of production.
657 IDBI Bank was recently converted to
638 A condition of slow economic growth a "Universal Bank”.
and relatively high unemployment - eco-
nomic stagnation - accompanied by rising 659 It is related to the concept of joint de-
prices, or inflation, or inflation and a decline mand. Joint demand occurs when demand
in Gross Domestic Product (GDP). for two goods is interdependent. E.g. it is
141
no good having a printer without the ink to 677 If we compare both of them, poor
go with it. Similarly ink cartridges are no save a smaller part of their income.
use without a printer.
683 A bank rate is the interest rate at
662 Price fixed by Government and Price which a nation’s central bank lends money
in open market. to domestic banks, often in the form of very
short-term loans. Managing the bank rate is
method by which central banks affect eco-
663 Corporation tax is a tax imposed on nomic activity.
the net incomes of the companies.
685 If the main objective of the govern-
664 The Commission in India dealing ment is to raise revenue, it should tax com-
modities with low elasticity of demand.
am
with minimum support price, procurement
price, etc in connection with agricultural
goods is the Planning Commission. 686 National income is the total value a
country’s final output of all new goods and
667 Bull and bear are related to Stock services produced in one year.
market.
668 Tiger is the animal on the insignia of

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689 The point at which the income from
sale of a product or service equals the in-
vested costs, resulting in neither profit nor
the RBI.
loss; the stage at which income equals ex-
penditure.
re
669 Per capita income = (Gross National
Product) (Total Population).
690 The demand for necessities is always
perfectly inelastic.
Sh
670 This statement was given by Keynes.

691 Income which is not produced by any
671 Pound has the highest value in terms production process.
of rupee.
692 A seller or buyer protects his business
i
or holdings from changing prices and takes

672 Basically, National Income is gener-
Ja
action against it. It is known as defence.

ated from any productive activity.
694 According to the classical system,

673 There is a inverse relationship be- saving is a function of Income.
tween the value of money and the price level
in an economy.
696 TFC is always horizontal.
674 When such increase is the result of 698 Life Insurance Policies is not viewed
increased production of intoxicants. as national debt.
676 Taxes on Advertisement taxes are 699 Movement along the same demand
levied and collected by the centre but their curve is known as Increase and decrease of
net proceeds are wholly transferred to states. demand.
700 After India achieved Independence, 714 ’The national income consists of a
a formal model of planning was adopted, collection of goods and services reduced to
and accordingly the Planning Commission, common basis by being measured in terms
reporting directly to the Prime Minister of of money."- Hicks.
India, was established on 15 March 1950,
with Prime Minister Jawaharlal Nehru as 717 The Reserve Bank of India functions
the Chairman. as a controller of credit in India.
701 The purpose of the India Brand Eq- 718 In economics, stagflation, a portman-
er
uity Fund is To make ’Made in India’ a label teau of stagnation and inflation, is a sit-
of quality. uation in which the inflation rate is high,
the economic growth rate slows, and unem-
gd
ployment remains steadily high. It raises a
702 The forces of demand and supply in
dilemma for economic policy, since actions
the foreign exchange market.
designed to lower inflation may exacerbate
unemployment, and vice versa.
an
703 Wages paid to workers.
719 long-run average cost curve.
705 In short run, if a competitive firm in
cuts losses, it will stop production. 720 Remain unchanged.
Ch
725 Jawahar Rozgar Yojana (JRY) was
708 The study of factor pricing is alterna-
launched on April 1, 1989 by merging Na-
tively called the theory of functional distri-
tional Rural Employment Programme NREP
bution.
and Rural Landless Employment Guaran-
tee Programme by Prime Minister Rajiv
n
709 Price mechanism is an economic term Gandhi.

that refers to the manner in which the prices
ya
of commodities affect the demand and sup- 726 Perfect competition refers to a mar-
ply of goods and services. It is a feature of ket situation in which there are large number
Capitalist economy. of buyers and sellers of homogeneous prod-
ucts.
a
711 A speculator who enters into a pur-

chase transaction with a view to sell In the 727 Agricultural income tax is a source
ar
near future when the price would have risen of revenue to State Government.
is called a bull.
734 When income of the consumers
N
raises, the demand of inferior goods falls.

712 Globalization is a process of interac-
tion and integration among the people, com-
panies, and governments of different nations, 735 Engel’s Law states the relationship
a process driven by international trade and between quantity demanded and income of
investment and aided by information tech- the consumers.
nology. This process has effects on the envi-
ronment, on culture, on political systems, on 736 One reason a country may devaluate
economic development and prosperity, and its currency is to combat trade imbalances.
on human physical well-being in societies Devaluation causes a country’s exports to
around the world. become less expensive, making them more
143
competitive in the global market. Higher 748 Surplus earned by a factor other than
exports relative to imports can also increase land in the short period of referred to as
aggregate demand, which can lead to infla- Quasi-rent.
tion.
749 The addition to total cost by produc-
739 In economics, effective demand (ED) ing an additional unit of output by a firm is
in a market is the demand for a product or called Marginal cost.
service which occurs when purchasers are
constrained in a different market. It con-
trasts with notional demand, which is the 750 Purchasing power or value of money
demand that occurs when purchasers are not determines the real wage. If the purchasing
constrained in any other market. In the ag- power of money is high purchasing power
gregated market for goods in general, effec- of money depends on price level. If price is
high purchasing power of money falls and
am
tive demand is the same thing as aggregate
demand when the demand for goods is in- real wage declines.
fluenced by spillovers from quantity con-
straints from other markets. The concept 751 sum of budget deficit and Govern-
of effective supply parallels the concept of ment’s market borrowings and liabilities.
effective demand. The concept of effective eR
demand or supply becomes relevant when
markets do not continuously maintain equi- 752 The Draft of the Five Year Plans in
librium prices. India is approved by the National Develop-
ment Council.
741 A sales tax is a tax paid to a govern-

753 Domestic private savings is the most
re
ing body for the sales of certain goods and
services. Usually laws allow (or require) the important source. because it is the main do-
seller to collect funds for the tax from the mestic source of planned finance.
consumer at the point of purchase.
Sh
755 It is the expected rate of return on

742 Bank rate is the rate charged by the new investment.
central bank for lending funds to commer-
cial banks. 757 If demand is perfectly elastic, it
means that at a certain price demand is infi-
i
744 Derived demand is a term used in eco- nite (A good with a very high elasticity of
Ja
nomic analysis that describes the demand demand). In other words if a firm increased
placed on one good or service as a result of price by 1%, it would see all its demand
changes in the price for some other related evaporate. If demand is perfectly elastic,
good or service. It is a demand for some then demand will be horizontal.
physical or intangible thing where a market
exists for both related goods and services in 759 A floating exchange rate or flexible
question. exchange rate is a type of exchange-rate
regime in which a currency’s value is al-
745 Effect of change in price of a com- lowed to fluctuate in response to foreign-
modity on its demand. exchange market mechanisms.
747 Token privatization or deficit privati- 760 The food stocks that are built up dur-
zation of public sector units occur when the ing the years of bumper harvest are called
government sells 5% of shares. buffer stock.
762 A consumable item that is useful to 774 Goa have the maximum number of
people but scarce in relation to its demand, per capita income.
so that human effort is required to obtain
it. In contrast, free goods (such as air) are
776 The balance of payments, also known
naturally in abundant supply and need no
as balance of international payments and ab-
conscious effort to obtain them.
breviated BoP, of a country is the record of
all economic transactions between the resi-
763 However, in 1995, the SEBI was dents of the country and the rest of the world
given additional statutory power by the Gov- in a particular period (over a quarter of a
er
ernment of India through an amendment to year or more commonly over a year).
the Securities and Exchange Board of India
Act, 1992. In April 1988 the SEBI was con- 778 The Reserve Bank of India was na-
gd
stituted as the regulator of capital markets in tionalised with effect from 1st January, 1949
India under a resolution of the Government on the basis of the Reserve Bank of India
of India. (Transfer to Public Ownership) Act, 1948.
an
764 The bank traces its ancestry to British 781 Under increasing returns the supply
India, through the Imperial Bank of India, curve is positively sloped from left to right.
to the founding, in 1806, of the Bank of Cal-
cutta, making it the oldest commercial bank
Ch
in the Indian Subcontinent. 783 Garrett James Hardin (April 21, 1915 -
September 14, 2003) was an American ecol-
ogist and philosopher who warned of the
765 The Government resorts to devalu- dangers of overpopulation. his exposition
ation of its currency in order to promote of the tragedy of the commons, in a famous
exports. 1968 paper in Science.
n
768 A franchise is a type of license that a 784 IDBI is apex bank for industrial
party (franchisee) acquires to allow them to loans.
ya
have access to a business’s (the franchiser)

proprietary knowledge, processes and trade- 785 Non-Monetary gold movements is
marks in order to allow the party to sell a not included in the current account of In-
product or provide a service under the busi-
a
dia’s Balance of Payments.

ness’s name. Franchising is a form of licens-
ing.
ar
789 Income inequality is the unequal dis-

tribution of household or individual income
769 A primary market issues new securi- across the various participants in an econ-
ties on an exchange for companies, govern-
N
omy. Income inequality is often presented

ments and other groups to obtain financing as the percentage of income to a percentage
through debt-based or equity-based securi- of population.
ties. Primary markets are facilitated by un-
derwriting groups consisting of investment
792 Average Revenue is equal to the
banks that set a beginning price range for
Marginal Revenue (AR=MR) under perfect
a given security and oversee its sale to in-
competition.
vestors. Once the initial sale is complete, fur-
ther trading is conducted on the secondary
market, where the bulk of exchange trading 794 In the case of an inferior good, the in-
occurs each day. come elasticity of demand is negative. It is
145
mainly depend upon the income of the con- 809 When exports are greater than im-
sumers. When consumer income is more, ports, it implies favourable balance of a
the demand of inferior good becomes less country.
and vice-versa.
810 The Government of India derives its
797 An indirect tax is a tax that is paid to single largest source of revenue from Union
the government by one entity in the supply Excise Duties.
chain, but it is passed on to the consumer as
part of the price of a good or service. The
consumer is ultimately paying the tax by 812 ’Next zone’ an information technol-
paying more for the product. Expenditure ogy SEZ is being established at Panvel in
tax is not an example of indirect tax. Maharashtra.
am
798 It is less than price. 813 It is in favour of rich peoples.
799 A market structure characterized by 814 Pension is not included while es-
a single seller, selling a unique product in timating national income through income
the market. In a monopoly market, the seller method.
faces no competition, as he is the sole seller
of goods with no close substitute. Tooth
paste is a product sold under Monopoly.
eR
817 Taxation is a tool of fiscal policy.
819 Fifth plan gave emphasis on removal

802 Evaluating all the options to find out of poverty for the first time. In addition to
most suitable solution to business problems
re
removal of poverty and attainment of self-
is inter-displinary activities. It is called op- reliance, the fifth plan had the major objec-
erational research. tives.
Sh
803 Control the production of food grains

822 The price will increase.
is not the objective of Public Procurement
and Distribution system followed by Indian
Government. 823 Underwriting is the process by which
investment bankers raise investment capital
i
804 French for ’leave alone’, laissez-faire from investors on behalf of corporations and
governments that are issuing either equity or
Ja
is an economic theory that became popular

in the 18th century. The driving idea behind debt securities.
laissez-faire as a theory was that the less the
government is involved in free market cap- 824 off loading of government Shares to
italism, the better off business will be, and private companies.
then by extension society as a whole.
825 The substitution effect is the eco-

806 ICICI Bank MD and CEO Chanda
nomic understanding that as prices rise - or
Kochhar has been named the most powerful
income decreases - consumers will replace
woman in business in India for the second
more expensive items with less costly al-
consecutive year by Fortune magazine.
ternatives. Conversely, as the wealth of in-
dividuals increases, the opposite tends to
807 Employment Guarantee Scheme was be true, as lower-priced or inferior com-
first introduced in Maharashtra. modities are eschewed for more expensive,
higher-quality goods and services, known 843 Andhra Pradesh has the highest num-
as the income effect. Although beneficial to ber of slums as per the data recently released
some companies like discount retailers, the by the Ministry of Housing and ’ Urban
substitution effect is generally very negative Poverty Alleviation.
within an economy, as it limits consumer
and producer choice.
847 Devaluation is a deliberate downward
adjustment to the value of a country’s cur-
826 demand exceeds supply. rency relative to another currency, group
of currencies or standard. Devaluation is
er
a monetary policy tool used by countries
827 The functional relationship between
that have a fixed exchange rate or semi-fixed
income and consumption expenditure is ex-
exchange rate. It is often confused with de-
plained by Keynes’s psychological law of
gd
preciation, and is the opposite of revalua-
consumption.
tion.
828 Long-term funds in the capital mar- 848 A market structure characterized by
an
ket can be raised either by borrowing from a single seller, selling a unique product in
certain institutions or through issue of secu- the market. In a monopoly market, the seller
rities. faces no competition, as he is the sole seller
of goods with no close substitute.
Ch
830 Diminishing returns.
849 Laws related to the exchange of
832 Private property is a legal designa- goods or services involved in international
tion for the ownership of property by non- trade including taxes, subsidies, and import
governmental legal entities. Private prop- export regulations.
erty is distinguishable from public property,
n
which is owned by a state entity; and from 851 Derived demand is defined as when
collective (or cooperative) property, which the want for one good or service happens
ya
is owned by a group of non-governmental because of the want for another good or ser-
entities. vice. An example of derived demand is an
increase in the need for wood because of
834 Adam Smith said, "Economics is the the increase in the need for furniture. The
a
Science of Wealth". demand for labour is also called derived de-

mand.
ar
837 When marginal utility is zero, the to-

tal utility is maximum. 852 Location of capital works.
N
839 The business in Stock Markets and 853 The Directorate of Marketing and In-
other securities markets is regulated Securi- spection (DMI) headed by the Agricultural
ties and Exchange Board of India. Marketing Advisor, Department of Agricul-
ture & Co-operation (DAC) implements agri-
cultural marketing policies and programmes
840 Among of them, Average cost is an of the Government of India.
inverted ’U’ shaped curve.
854 Increase of interest rate on saving
842 Speculative demand for cash is deter- deposit is not a quantitative credit control
mined by the rate of interest. techniques.
147
856 Liberalization (or liberalisation) is a 877 Adam Smith is widely regarded as

relaxation of government restrictions, usu- the father of modern economics.
ally in such areas of social, political and
economic policy. 880 National Income include Construc-
tion of a new house.
860 Jammu and Kashmir.
883 because of the existence of public
862 Tax on income except agriculture. and private sector, India is called a mixed
economy.
863 Automobile industry is not consid-

ered as an infrastructure investment. 885 Prime Minister is the Ex-officio
Chairman of the planning commission.
am
865 National Income Total Population of
the country. 886 Some ultimate borrower.
866 Basically, it is lies between 0 to 1. 891 Decline in productivity is not the out-
come of decrease in prime lending rate.
eR
869 Income and Consumption are directly
related. 893 The duties levied on alcoholic liquors,
narcotic drugs and opium come under Cen-
tral Excise Duty.
870 Trading is securities.
re
894 A benefit, profit, or value of some-
871 After India achieved Independence,
thing that must be given up to acquire or
a formal model of planning was adopted,
achieve something else. Since every re-
and accordingly the Planning Commission,
Sh
source (land, money, time, etc.) can be put

reporting directly to the Prime Minister of
to alternative uses, every action, choice, or
India, was established on 15 March 1950,
decision has an associated opportunity cost.
with Prime Minister Jawaharlal Nehru as
the Chairman.
895 HZL
i
872 All of the above.

Ja
896 Central Depository Services Limited

873 Basically, if a good has negative in- (CDSL), is the second Indian central se-
come elasticity of demand, it is a rated in curities depository based in Mumbai. Its
the constitutions of Giffen goods. (A good main function is the holding securities either
where higher price causes an increase in de- in certificated or uncertificated (dematerial-
mand reversing the usual law of demand). ized) form, to enable book entry transfer of
securities.
875 According to modem thinking, the

897 A condition of slow economic growth
law of diminishing returns applies to all
and relatively high unemployment - eco-
fields of production.
nomic stagnation - accompanied by rising
prices, or inflation, or inflation and a decline
876 per capita income represents the stan- in Gross Domestic Product (GDP). Stagfla-
dard of living of a country. tion is an economic problem defined in equal
parts by its rarity and by the lack of con- price of another good, ceteris paribus. In
sensus among academics on how exactly it cross elasticity the demand between petrol
comes to pass. and car is negative.
900 Post Office has provided the Sav- 917 Bank money refers to cheques.
ings Bank facility to the largest number of
account-holders in India. 918 Demand for Coke and 7-Up will de-
crease.
er
901 Macrosociology is an approach to so-
ciology which emphasizes the analysis of 922 when the interest level of a country
social systems and populations on a large decreases, it is affected by FDI.
scale, at the level of social structure, and
gd
often at a necessarily high level of theoreti-
cal abstraction. Among of these, Exports of 923 The share broker who sells shares in
mangoes to UK will consider in it from the the apprehension of failing prices of shares
national context. is called Bear.
an
925 Biscuits.
902 Short term loans to correct Balance
of Payments problems is given by I.M.F.
926 "Supply creates its own demand" - J.
Ch
B. Say.
905 Industrial sector is the biggest tax pay-
ing sector in India.
927 NSSO collects data for the unorga-
nized sector.
910 The Indian Institute of Foreign Trade
Located in New Delhi.
928 NIFTY is associated with NSE (Na-
n
tional stock exchange) Index.

912 John Maynard Keynes, 1st Baron
ya
Keynes CB FBA (5 June 1883 - 21 April

933 Wage fund theory was propounded
1946), was a British economist. His ideas
by J.S. Mill.
fundamentally changed the theory and prac-
tice of macroeconomics and the economic
a
policies of governments. He built on and 934 Agricultural technology is hard to

greatly refined earlier work on the causes of spread because these all are the reasons be-
ar
business cycles, and is widely considered to hind it.

be one of the most influential economists of
the 20th century and the founder of modern 935 Professional tax is not collected by
N
macroeconomics the Central Government.
913 Under duopoly, buyers and sellers will 938 Multiplier process in economic the-
have perfect knowledge of market condi- ory is conventionally taken to mean Income
tions. of an economy grows on account of an ini-
tial investment.
916 In economics, the cross elasticity of
demand or cross-price elasticity of demand 939 Consumption function expresses the
measures the responsiveness of the quan- relationship between consumption and In-
tity demanded for a good to a change in the come.
149
940 The largest component of National 960 A situation of large number of firms
Income in India is Agriculture. producing similar goods is termed as Perfect
competition.
941 Debt service is the cash that is re-

quired to cover the repayment of interest 965 In the post-independence period, eco-
and principal on a debt for a particular time nomic reforms were first introduced in In-
period. If an individual is taking out a mort- dia under P.V. Narasimha Rao Government
gage or a student loan, the borrower needs (1990).
to calculate the annual debt service required
on each loan, and, in the same way, compa- 968 The consumption function, or Keyne-
nies must meet debt service requirements for sian consumption function, is an economic
loans and bonds issued to the public. The formula representing the functional relation-
ability to service debt is a factor when a ship between total consumption and gross
am
company needs to raise additional capital to national income.
operate the business.
971 Jammu and Kashmir.
944 The NSSO (National Sample Survey
Organization). 973 Absolute poverty refers to a condition
947 When income increases, consump-

eR
where a person does not have the minimum
amount of income needed to meet the min-
imum requirements for one or more basic
tion also increases but in a lower proportion. living needs over an extended period of time.
948 Agro-based and Mineral based is the 975 Price determined by demand and sup-
re
classification of Industries on the basis of ply.
raw-materials.
978 The functions of an entrepreneur as
Sh
950 Demand of commodity mainly de- risk bearer is specific in nature. The en-
pends upon Purchasing power. trepreneur assumes all possible risks of busi-
ness which emerges due to the possibility
of changes in the tastes of consumers, mod-
951 Taxes on Services was constitutional ern techniques of production and new in-
status given much later after its introduction ventions. Such risks are not insurable and
i
in a small way in 1994-95. incalculable. In simple terms such risks are

Ja
known as uncertainty concerning a loss.

957 In a perfectly competitive market, a
firm’s Average Revenue is always equal to 979 In Capitalistic economy, the prices
Marginal Revenue. are determined by demand and supply.
980 B.B. Bhattacharya.

958 A mixed economic system is an eco-
nomic system that features characteristics
of both capitalism and socialism. A mixed 983 National Bank for Agriculture and
economic system protects private property Rural Development (NABARD) is a finan-
and allows a level of economic freedom in cial institutions.
the use of capital, but also allows for gov-
ernments to interfere in economic activities 986 The main source of long-term credit
in order to achieve social aims. for a business unit is sale of stocks and
bonds to the public. When more and more 1004 Controlling government spending
stocks and bonds sold to the public, this is is not a function of the central bank in an
beneficial for a company. economy.
987 74 per cent. 1005 It is measured in terms of Supernor-

mal profit.
990 Golden Handshake’ A stipulation in
an employment agreement which states that
1009 It is always less in comparison to
er
the employer will provide a significant sev-
erance package if the employee loses their Gold, foreign bonds and Government bonds.
job. A golden handshake is usually provided
to top executives for loss of employment 1011 Imputed gross rent of owner occu-
gd
through layoffs, firing or even retirement. pied buildings is a part of final consumption.
992 The one rupee note bears the signa-

ture of Secretary, Ministry of Finance. 1012 Wool and Mutton is an example for
an
Joint Supply.
993 When a person or a group of persons

are engaged in the production or distribu- 1014 A single tax that replaces State taxes
tion of goods or services which are meant like, surcharge, turnover tax, etc. is known
Ch
mainly for the purpose of sale, it is called as VAT.
an enterprise. Enterprises can be classified
into Private sector enterprise and Public sec-
1015 Entrepreneurial ability is a special
tor enterprise. Private sector enterprises are
kind of labour that organizes the process of
owned and run by individuals, or a group of
production.
individuals, with the aim of making profit.
n
Public sector enterprises are owned and run

by the government. They enable the govern- 1022 National Rural Employment Guar-
ya
ment to have control over the economy for antee Programme.

the benefit of the people in general. When
both the government and the individual enter
into an agreement to run enterprise on part- 1024 Cooperative Marketing Societies
does not deal with export promotion. Coop-
a
nership basis, they are referred to as joint

enterprises. erative marketing is any agreement to com-
bine marketing efforts, and thus it can ap-
ar
pear in many forms. Complementary com-

995 Percentage share of services is higher
panies, as well as direct competitors, can
than agriculture and industry put together is
create effective and mutually beneficial co-
N
correct about India’s national income.

operative marketing campaigns.
996 J.B. Saw.

1027 To ensure social justice.
1000 Social status is not a dimension of
human development index. 1030 The Imperial Bank of India (IBI)
was the oldest and the largest commercial
1001 A loan or credit with a low interest bank of the Indian subcontinent, and was
rate, or the setting of low interest rates by a subsequently transformed into State Bank
central bank like the Federal Reserve. of India in 1955.
151
1031 In India, disguised unemployment is included in the II Schedule of Reserve Bank

generally observed in the Agricultural sec- of India Act.
tor.
1050 the main condition of perfect com-
1032 The method of calculating the na- petition is the homogeneity. Only one price
tional income by the product method is oth- for identical goods at any one time is the
erwise known as Net output method. main and essential condition of perfect com-
petition.
1033 RBI (Reserve bank of India).

1056 When the total product rises at an in-
creasing rate, the marginal product is rising
1035 Perfect competition is a market on that time.
structure in which the following five criteria
am
are met: 1) All firms sell an identical prod- 1057 Return on capital increases.
uct; 2) All firms are price takers - they can-
not control the market price of their product;
3) All firms have a relatively small market 1059 The euro is the single currency
share; 4) Buyers have complete information shared by 19 of the European Union’s Mem-
about the product being sold and the prices ber States, which together make up the euro
charged by each firm; and 5) The industry is
characterized by freedom of entry and exit.
Perfect competition is sometimes referred to
eR
area. The introduction of the euro in 1999
was a major step in European integration.
as "pure competition". 1061 Under perfect competition, there

are many sellers of a commodity. That’s
why consumers are likely to get a variety of
re
1036 One-way payment of money for
which no money, good, or service is received goods.
in exchange. Governments use such pay-
ments as means of income redistribution by 1062 Small scale industry is generally
Sh
giving out money under social welfare pro- based on investment in machines and equip-
grams such as social security, old age or ment.
disability pensions, student grants, unem-
ployment compensation, etc. Subsidies paid 1063 When the balance of payments of
to exporters, farmers, manufacturers, how- a country is in equilibrium, the demand for
i
ever, are not considered transfer payments. domestic currency is equal to its supply. The
Transfer payments are excluded in comput-
Ja
demand and supply situation is thus neither

ing gross national product. favourable nor unfavorable.
1039 Loans is not included in current rev- 1065 According to value given by produc-
enue of the Union Government. ers.
1040 Pressure Group is characterized by 1067 Both Bonds and Stock holders are
homogeneity of interests. the creditors of a corporation.
1068 Economies of scale is the cost ad-

1047 This all will include in it, while cor-
vantage that arises with increased output of
rection of India’s balance of Payments.
a product. Economies of scale arise because
of the inverse relationship between the quan-
1048 A Scheduled Bank is one which is tity produced and per-unit fixed costs; i.e.
the greater the quantity of a good produced, when an individual produces a product or
the lower the per-unit fixed cost because service, he or she gets paid for that work,
these costs are spread out over a larger num- and is then able to use that pay to demand
ber of goods. Economies of scale may also other goods and services.
reduce variable costs per unit because of op-
erational efficiencies and synergies. It also 1087 Externality theory is the basic theory
reduces the unit cost of production. of the Environomics branch of economics.
1070 Net National Product at market 1093 This statement is related with Prof.
er
prices. J.B. Say.
1094 Regulated markets aim at the devel-
gd
1072 Foreign currency and securities held
by the banks and corporate bodies. opment of the marketing structure to narrow
down the price spread between the producer
and the consumer.
1075 The production function relates the
an
maximum amount of output that can be ob-
1095 Gresham’s law is related to Circula-
tained from a given number of inputs.
tion of money.
1077 The biggest item of India’s imports 1097 These seeds contain genetically en-
Ch
is Petroleum products. gineered properties to prevent further multi-
plication and because of this reason, govern-
1078 Aspects of generation of black ment ban the import of terminator seeds.
money, its transfer abroad and bringing back
such money into India’s legitimate financial 1098 Lack of opportunities is the most ap-
system. propriate reason for Inequalities in Income.
n
ya
1082 Bank of India has a shining star as 1100 National income refers to money
its emblem. value of capital goods produced by a coun-
try during a year.
1083 ’Cheap Money’ A loan or credit
a
with a low interest rate, or the setting of 1101 During 2011-12 (GDP - 57.00%) is
low interest rates by a central bank like the the correct option.
ar
Federal Reserve.
1102 GDP at factor cost = GDP - indirect
1084 Net foreign factor income (NFFI) is taxes + subsidies
N
the difference between the aggregate amount

that a country’s citizens and companies earn 1104 The Centre for Agricultural Market-
abroad, and the aggregate amount that for- ing is located at Jaipur.
eign citizens and overseas companies earn in
that country. In mathematical terms, NFFI
1105 Disposable income, also known as
= GNP - GDP.
disposable personal income (DPI), is the
amount of money that households have avail-
1086 The Say’s law of markets is an eco- able for spending and saving after income
nomic rule that says that production is the taxes have been accounted for. Disposable
source of demand. According to Say’s Law, personal income is often monitored as one
153
of the many key economic indicators used 1131 A bank rate is the interest rate at
to gauge the overall state of the economy. which a nation’s central bank lends money
to domestic banks, often in the form of very
short-term loans.
1106 It was BHEL (Bharat Heavy Electri-
cals Limited).
1133 Dadabhai Naoroji prepared the first
estimate of National Income for the country.
1107 Multinational Corporation is also
called Trans-national Corporation.
1135 When the price of a commodity falls,
then the company can expect the demand for
1109 Normative economics (as opposed good is to be increased.
to positive economics) is a part of economics
that expresses value or normative judgments 1138 If the change in demand for a com-
am
about economic fairness or what the out- modity is at a faster rate than change in the
come of the economy or goals of public pol- price of the commodity, the demand is per-
icy ought to be. fectly elastic.
1110 increase in tax revenue increase in 1139 Sales tax is not shared between the
tax base.
1111 National Income Estimates in India

eR
union and the states.
1143 Aggregate consumption ÷ Aggre-

are prepared by Central Statistical Organiza- gate income.
tion.
re
1145 Total productive income is the na-
1113 To ensure social justice is not an tional income of a country.
objective of the monetary policy of the RBI.
Sh
1146 The HDI was developed by the Pak-

1116 The fixed cost on such factors of pro- istani economist Mahbub ul Haq working
duction which are neither hired nor bought alongside Indian economist Amartya Sen.
by the firm is called Social Cost.
1148 The basic economic problem arises
because resources are scarce, but human
i
1119 A bearer bond is a bond or debt se-

curity issued by a business entity such as a wants are unlimited.
Ja
corporation, or a government. As a bearer

instrument, it differs from the more common 1150 National income accounting is the
types of investment securities in that it is un- study of the income and expenditure of the
registered - no records are kept of the owner, entire economy.
or the transactions involving ownership.
1152 Per capita income of citizens.
1120 Determination of import duty uni-
formly is not a non-customs duty obstacle 1153 In 1994, the Rupee become a freely
in the world trade. convertible currency on current account, in
India.
1123 Stamp duty taxes is levied by the
Union and appropriated and planned by the 1154 Car engines is a major item of Indian
states. export.
1155 Inflation is the rate at which the gen- 1175 Value-added describes the enhance-
eral level of prices for goods and services ment a company gives its product or service
is rising and, consequently, the purchasing before offering the product to customers.
power of currency is falling, and when too Value-added applies to instances where a
much money is chasing too few goods, the firm takes a product that may be consid-
situation is Inflation. ered a homogeneous product, with few dif-
ferences (if any) from that of a competitor,
1158 LIC Varishtha Pension Bima Yojana and provides potential customers with a fea-
is a type of LIC pension plan introduced by ture or add-on that gives it a greater sense of
er
Life Insurance Corporation of India(LIC). value.
1179 Investment multiplier shows the ef-

1160 Basically, these all are the objectives
gd
fect of investment on income.
of ’Jawahar Rojgar Yojana’
1180 A MNC which manufactures chemi-

1163 The tertiary industry is the segment cals.
of the economy that provides services to
an
its consumers; this includes a wide range
of businesses such as financial institutions, 1181 Demographics is the study of a popu-
schools and restaurants. It is also known as lation based on factors such as age, race and
the tertiary sector or service industry sector. sex, among others.
Ch
Power and transportation is also a part of it.
1182 A floating exchange rate or fluctu-
1164 The high rate of inflation prevailing ating exchange rate is a type of exchange-
in the economy. rate regime in which a currency’s value is
allowed to fluctuate in response to foreign-
exchange market mechanisms. A currency
n
1165 Creditors. that uses a floating exchange rate is known

as a floating currency.
ya
1170 Social accounting system in India is

classified into income, product and expendi- 1183 If the changed income distribution
ture. in favour of poor, then it will indicate a bet-
ter welfare.
a
1173 Green Banking is a very general

term which can cover a multitude of areas
ar
1186 Pleasure or satisfaction (value for

from a Bank being environmentally friendly
money) derived by a person from the con-
to how their money is invested. Green Bank-
sumption of a good or service or from being
ing considers all the social and environmen-
in a particular place, and for the maximiza-
N
tal ecological factors with an aim to pro-

tion of which all economic actions are moti-
tect the environment and conserve natural
vated.
resources.
1187 Services done by a house-wife in

1174 The reserve requirement (or cash re-
her own house is not included in production.
serve ratio) is a central bank regulation em-
ployed by most, but not all, of the world’s
central banks, that sets the minimum amount 1188 The Rajya Sabha should return the
of reserves that must be held by a commer- Money Bills to the Lok Sabha within 14
cial bank. days.
155
1189 The implementation of Jawahar Ro- produced in a society. Firms, such as busi-
jgar Yojana rests with Gram Panchayats. nesses and companies, produce whatever the
consumer prefers.
1192 With the help of Per capita income
an individual’s actual standard of living can 1225 The Incremental Capital-Output Ra-
be assessed. tio (ICOR), is the ratio of investment to
growth which is equal to 1 divided by the
marginal product of capital. The higher the
1199 Undistributed profits represents the
ICOR, the lower the productivity of capital
savings of the private corporate sector.
or the marginal efficiency of capital. The
ICOR can be thought of as a measure of the
1204 Different firms constituting the In- inefficiency with which capital is used.
dustry, produce homogeneous goods under
am
Perfect competition.
1226 National Income is also called as
GNP at Factor Cost.
1207 J.B. Say propounded the ’market
law. 1229 RBINET is the electronic commu-
nication network of the Reserve Bank of
eR
1208 The balance of trade (BOT) is the India.
difference between a country’s imports and
its exports for a given time period. The bal- 1230 Collection of estimates of national
ance of trade is the largest component of the income is the main function of Central Sta-
country’s balance of payments (BOP). tistical Organization (CSO).
re
1210 Growth in Per capita Real Income 1232 Zero Base Budgeting (ZBB) in the
from year to year. public sector versus the private sector is a
Sh
different process. "Zero-Base Budgeting

1215 Greater. (ZBB) was an executive branch budget for-
mulation process introduced into the federal
government in 1977. Its main focus was on
1216 The highest body which approves optimizing accomplishments available at al-
the Five Year Plan in India is given by Na- ternative budgetary levels. In public budgets,
i
tional Development Council. zero-base budgeting was first introduced in

Ja
United States of America.

1219 Maruti Suzuki Alto has been the best
seller in India in 2004-2005 . 1233 Open market operations (OMO)
refers to the buying and selling of govern-
1220 IFCI is not a credit rating agency. ment securities in the open market in order
to expand or contract the amount of money
in the banking system, facilitated by the Fed-
1222 Funds which flow into a country to eral Reserve (Fed).
take advantage of favourable rates of interest
in that country is called Hot Money.
1236 A demand deposit consists of funds
held in an account from which deposited
1223 Consumer sovereignty is the eco- funds can be withdrawn at any time from
nomic theory that consumers can best de- the depository institution, such as a check-
termine what goods and services should be ing or savings account, accessible by a teller,
ATM or online banking. In contrast, a term 1242 Per capita income at constant prices
deposit is a type of account that cannot be is a best measure to assess a country’s eco-
accessed for a predetermined period of time. nomic growth.
M1 is a category of the money supply that in-
cludes demand deposits as well as physical
money and negotiable order of withdrawal 1243 Specialization is a method of produc-
(NOW) accounts that have no maturity pe- tion where a business, area or economy fo-
riod but limited withdrawals or transfers. cuses on the production of a limited scope of
products or services to gain greater degrees
of productive efficiency within an overall
er
1237 Charge levied by the State on con- system. because of specialization, labour is
sumption, expenditure, privilege, or right divided now.
but not on income or property. Customs du-
gd
ties levied on imports, excise duties on pro- 1245 In India, Mostly seasonal and dis-
duction, sales tax or value added tax (VAT) guised unemployment founds in agriculture.
at some stage in production-distribution pro-
cess, are examples of indirect taxes because
an
they are not levied directly on the income of 1249 Opening Stock + Net Investment -
the consumer or earner. There is not direct Capital Losses.
relationship between the tax payer and the
government.
1250 ICICI Bank was converted to a ’Uni-
Ch
versal Bank’ recently.
1238 Bad money drives good money out
of circulation. 1255 LIC is not a Navaratna PSU.
1239 A sunk cost is a cost that has already 1259 Non-plan revenue expenditure is ac-
n
been incurred and thus cannot be recovered. counted for by interest payments, subsidies
A sunk cost differs from future costs that a (mainly on food and fertilisers), wage and
business may face, such as decisions about
ya
salary payments to government employees,

inventory purchase costs or product pricing. grants to States and Union Territories gov-
Sunk costs (past costs) are excluded from ernments, pensions, police, economic ser-
future business decisions, because the cost vices in various sectors, other general ser-
will be the same regardless of the outcome vices such as tax collection.
a
of a decision.
ar
1260 Average fixed cost curve.

1240 Population growth is not a necessary
condition for the development of India.
1261 The terms "Micro Economics" and
N
"Macro Economics" were coined by Ragner

Frisch.
1241 Income per capita is a measure of
the amount of money earned per person in
a certain area. It can apply to the average 1263 Legal tender is any official medium
per-person income for a city, region or coun- of payment recognized by law that can be
try, and is used as a means of evaluating the used to extinguish a public or private debt,
living conditions and quality of life in differ- or meet a financial obligation. The national
ent areas. It can be calculated for a country currency is legal tender in practically every
by dividing the country’s national income country. A creditor is obligated to accept
by its population. legal tender toward repayment of a debt.
157
1264 Cash Reserve Ratio (CRR) is a spec- the first departmental life insurance started.
ified minimum fraction of the total deposits
of customers, which commercial banks have
to hold as reserves either in cash or as de- 1276 The proceeds of income tax go to
posits with the central bank. CRR is set Centre and States.
according to the guidelines of the central
bank of a country. 1277 The equilibrium price is the market
price where the quantity of goods supplied
1266 Product differentiation is a market- is equal to the quantity of goods demanded.
ing process that showcases the differences
between products. Differentiation looks to 1281 The ’break-even point’ is in that case
make a product more attractive by contrast- when average revenue equals average cost.
ing its unique qualities with other competing
am
products. Successful product differentiation
creates a competitive advantage for the prod- 1282 Legal Tender Money is accepted by
uct’s seller, as customers view these prod- people and Government as per the law.
ucts as being unique or superior.
1283 Marginal efficiency of capital.
1267 A fall in demand or rise in supply
of a commodity decreases the price of that
commodity.
eR
1284 In economics, a transfer payment
(or government transfer or simply transfer)
is a redistribution of income in the market
1272 Inflation is caused by Increase in system. Examples of certain transfer pay-
money supply.
re
ments include welfare (financial aid), social
security, and government making subsidies
1273 An economy is in equilibrium when for certain businesses (firms). Interest on
intended investment equals intended invest- public debt is also a part of it.
Sh
ment.
1286 Service of a housewife will not in-
1274 Employees of postal department was clude while estimating national income.
i
Ja

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THE RED EYE SERIES

I will develop this draft from time to time

P REFACE TO THE FIRST EDITION

1 Fun with Economics . . . . . . . . . . . . . . . . . . . 9

2. The Accounting Year of Reserve Bank of A. Atomic power

6. The Indian economy can be most appropri-

D. August to July ately described as a:

8. The pocess of curing inflation by reducing A. FEPA

16. All taxes come under:

11. Production function expresses

C. Relationship between finance and tech- of scale then

tion B. Long run unit costs of production de-

A. Due to border problems, India’s trade C. 1980

A. Bank Rate Policy A. Soviet Union

country transfer investments elsewhere be- producer of Rock Phosphate?

cause of disturbed economic conditions, it A. Karnataka

A. Trade A. Value-added method

A. Kelkar Committee D. transport, storage and communication

for Economics? C. Tamil Nadu

area of taxation. This was based on the rec-

A. UNIDO A. J.M. Keynes

D. GATT D. Adam Smith

A. There is no involuntary unemployment

A. Fazal Ali 59. Menu costs in relation to inflation refer to:

A. Adult members of below poverty line 63. Rate of interest is determined by

B. Adult members of only the scheduled

57. How will a reduction in ’Bank Rate’ affect

B. Credit will not increase

A. Marginal cost equals the marginal rev- B. 4

are equal A. A.K. Sen

70. Gross National Product- Depreciation Al-

which branch of commercial activity? [UP

B. Varada Grameen Bank

87. Production function relates

81. India exports power to ..... B. Cost to input

B. Myanmar D. Inputs to output

D. Bhutan A. Lend only to individuals known to the

C. traffic tax 99. In a Laissez-faire economy

C. a bank deals with both internal and inter- B. Madhya Pradesh

concerned with the finances of foreign com-

tivities while an NBFl’s main interest is in than international price

B. increasing gap between international and

B. Traders Bank D. none of these

level of income, it shall be called

crease in the aggregate supply in ratio of A. Proportional tax

A. Distribution of Plan Assistance among 130. Goiporia committee was appointed on

C. the practice of dumping viz., selling B. 1951

B. revision of the achievements, of previous B. Net national product -Gross national

lated to ers’ in rural areas still prefer to take informal

A. Indian Statistical Institute A. taxation only

A. 2007-12 A. low rate of interest

B. 2012–17 B. high rate of interest

146. AGMARK is a guarantee of standard:

B. A teacher teaching students Under Sarva marginal revenue

Shiksha Abhiyan C. by adding normal profit to the marginal

D. A teacher providing consultancy ser- 158. A tree like structure of records in a

A. Fifth 165. Which of the following is not the source of

A. imperative B. Three tier hierarchy of the Banking struc-

163. The basic regulatory authority for mutual

funds and stock markets lies with the

B. Land surplus, labour surplus economy C. Employment

bers of the Organization of Petroleum Ex-

foreign aid was declared in: