ECONOMICS

QUESTION
O PAPER
General Instructions:
50 questions are to be attempted
nere are a total 60 questhons in this paper out of which
This paper is divided into thrce Sections
a. Section A contains 24 questions. Attempt any 20 questions.
Section B contains 24 questions.Attempt any 20 questions.
b
Section C - contains 12 questions. Attempt any 10 questions.
3. All questions carry equal marks (O.80).
4 There is no negative marking

SECTION-A
a. Both the statements are true.
Directions (Q Nos. 1-24): This section consists of 24 multiple b. Both the statements are false.
choice questions with overall choice to attempt any 20 c. Statement I is true and statement Il is false.
questions. In case more than desirable number of questions d. Statement I is true and statement I is false.
are attempted, onlyfirst 20 will be
considered for evaluation.
Q6. Mr Rasagya wants to calculate the value of money
Q1. Taxable and non-taxable receipts are the
multiplier. He has the following information. Choose
components of: the correct alternative from the given information.
a. capital receipts b. revenue receipts
d. None of these IfCRR 5% and SLR 20%, money multiplier is:
c. Both a. and b. b. 4
a. 20
2. Balance of payments deficit is the excess of.
e****°
5 d. None of these

over. Q7. Ms Riddhi and Ms Radha were discussing the

a. current account payments, current account
exchange rates. That exchange rate which is a
receipts mixture of both fixed and flexible exchange rate
b. capital account payments, capital account receipts
From the following choose the correct alternative
C. autonomous payments, autonomous receipts
which specifies towards the concept explained by
d. accommodating payments, accommodating
them.
receipts a. Fixed exchange rate
Q3. Demand deposits include: b. Flexible exchange rate
a. saving account deposits and fixed deposits c. Managed floating exchange rate
b. saving account deposits and current account
d. None of the above
deposits choose
c.current account deposits and fixed deposits Q8. Read the following statements carefully and
d. All types of deposits
the correct alternative from the following:

Q4. A company located in India receives a loan froma Statement I. Primary deficit is the difference between
revenue deficit and interest payments.
company located abroad. How is his transaction
recorded in India's balance of payments account? Statement II. deficit will be zero when fiscal
Primary
a. Credit side of current account deficit is equal to interest payments.
b. Debit side of current account a. Both the statements are true.
c.Credit side of capital account b. Both the statements are false.
C. Statement l is true and statement Il is false.
d. Debit side of capital account
d. Statement lis true and statement l is false.
Q5. Read the following statements carefully and choose
the correct alternative from the following: Q9. Capital account of BoP items include:
a. foreign investment
Statement I. GST has been implemented from 1
b.loans
April, 2018. c. NRI deposits with Indian banks
Statement II. GST is one tax and one nation. d. All of the äbove
aWhich
Q10 of the following is not the
Central Bank?
function of the Q17. From the following given sets of statements in
Column I and Column I1, choose the correct pair of
a. Banking facilities to
government statements.
b. Banking facilities to public
c. Lending to government Column ColumnI
d. Lending to commercial banks (A) One Sided Transaction 1. Bi-lateral trade

Q1. SSI is: (B) Export and Import of 2. Visible trade

a. no locational flexibility Goods
3 Merchandise
b. labour intensive (C) Export of Services
c. not equity oriented (D) Purchase of Metro Rail 4. Current
transaction
d. capital intensive Engine
a. A-1 b. B-2 c.C3 d. D-4
012. India's first official census undertaken in the year:
Q18. The nature of unemployment seen in agriculture is
a. 1853
****... unemployment.
b. 1881
a. cyclical b.educational
C. 1901 C. disguised d. voluntary
d. 1921
Q19. Deficit budget refers to the situation when budget
Q13. Green revolution includes... ******* and. expenditure. budget receipts.
a. HYV, chemical fertiliser a. lesser than b. more than
b. HYV. no fertiliser C.equalto d. None of these
. HYV, organic material Q 20. "National Food of Work Programme" was launched
d. HYV, imported seeds in
Q14. Read the following statements carefully and choose a. 2005 b. 1998 c2004 d. 2016

the correct alternatives given below:
Statement I. Poverty can be tackled by ensuring
trickle down effect.
Statement I. Poverty can also be tackled by poverty
alleviation programmes, provision of basicamenities.
a. Both the statements are true.
b. Both the statements are false.
.5tatement I is true and statement Il is false.
d. Statement Il is true and statement I is false.
Q15. Read the following statements carefullyand choose
the correct alternatives given below:
Statementl. MUDRA Bank was set up in 2015.
Q21. The main aim of monetary policy is:
a. to bring price stability in the economy
b. employment generation in the country
c. to increase trade surplus
d. to generate greater tax revenue
02. Decay of indigenous handicrafts during British rule
was due to:
a. introduction of discriminatory tariff policy
b. industrial revolution in Britain
C. commercialisation of agriculture
d. Both a. and b.
Q 23. Read the following statements carefully and choose
the correct alternatives given below:

is Micro Units Statement 1. Objective of planning in India are

StatementlI. MUDRA Bank
growth and Modernisation.
Development and Refinance Agency Ltd.
Statement . Equity and self reliance are also
a. Both the statements are true.
objectives of planning in India.
b. Both the statements are false. a. Both the statements are true.
C. Statement I is true and statement ll is false.
b. Both the statements are false.
d. Statement Il is true and statement I is false. c. Statement I is true and statement Il is false.
l6. The Commission for Agricultural Costs and Prices d. Statement ll is true and statement l is false.

(CACP) was set up in: Q24. . . i s the economist whose estimates on GDP
a. 1965 and per capita income during the British rule were
b. 1952 considered very significant.
a. Wiliam Digby b. Dr. V.K.R.V. Rao
C. 1966
c. Dadabhai Naoroji d. Findlay Shirras
d. 1990

SECTION-B
Q25. Assertion (A): Deñcit in BoP acount arises when
irections (Q Nos. 25-48): This section consists of 24:
autonomous receipts are more than autonomous
mulultiple
t choice questions
que with overall choice
to attempt
payments.
than desirable number of
y 20 questions. In case more
considered for Reason (R):Autonomous transactions are independent
evols are attempted, only first 20 will be of the state of BoP account.
evaluation.
 a. Both Assertion (A) and Reason (*) are true and
Column
Reason (R) is the correct explanation of Assertion Column I
A. People who are
always 1 Relative
(A) poor Poverty
b. Both Assertion (A) and Reason (R) are true but B. Compares the income with | 2. Churning Poor
minimum consumption
Reason(R) is not the correct explanation of
requirement.
Assertion (A).
Compares the income 3. Chronic Poor
C.Assertion (A) is true but Reason (R) is false. of different people for
d. Assertion (A) is false but Reason (R) is true. identifying poverty.
D. People who regularly 4. Absolute
Q 26. RBI regulates money supply by controlling the: move in and out of
Poverty
a. stock of high powered poverty.
money
b. bank rate ABC D A BC D
a. 3 4 1 2 b. 2 3 4 1
C. reserve requirements of the commercial banks
C. 1 3 2 4 d. 1 2 3 4
d. All of the above
Q31.
Q27. Assertion (A): Inward looking trade strategy was

made for import substitution.

Reason (R): Inward looking trade strategy helps to

save foreign exchangge.
a. Both Assertion (A) and Reason (R) are true and
Reason (R) is the correct explanation of Assertion

(A)
b. Both Assertion (A) and Reason (R) are true, but
Reason (R) is not the correct explanation of
Assertion (A).
>X
C.Assertion (A) is true but Reason (R) isfalse.
d. Assertion (A) is false but Reason (R) is true.
Year
Q 28. Which of the following is a land reform measure? On the basis of above imaginary diagram choose the
a. Use of high yielding variety of seeds correct alternative.
b. Establishment of regulated markets a. Percentage of poor in total population was mare in
c. Price support system 2011 and less in 2020
d. Abolition of intermediaries b. Percentage of poor in total population was less in
2011 and more in 2020
29. Assertion (A): Seventh Five Year Plan recognised the
c. Percentage of poor in total population was same in
importance of human capital.
2011 and in 2020
Reason (R): Human capital includes engineers,
d. None of the above
doctors, lawyers, scientists, etc. 0 32. On the basis of given table. Choose the correct
a. Both Assertion (A) and Reason (R) are true and alternative.
Reason (R) is the correct explanation of Assertion
Occupation 1951 %
(A)
1. Primary Sector 72.7
b. Both Assertion (A) and Reason (R) are true but
Reason (R) is not the correct explanation of () Agriculture 50.0
(i) Agricultural labour 19.7
Assertion (A).
(ii) Forestry 2.4
. Assertion (A) is true but Reason (R) is false.
(iv) Mining 0.6
d. Assertion (A) is false but Reason (R) is true. 2. Secondary Sector 10.1
Q 30. From the following statements given in Column I (6) Small and large industries 9.0
and Column lI, choose the correct pair of statements: (i) Building Construction 1.1
 3. Tertiary Sector Reason (R): Autonomous transactions are independent
17.2
() Trade of the state of BoP account.
5.4
(i) Transport a. Both Assertion (A) and Reason (R) are true and
14 Reason (R) is the correct explanation of Assertion
(ii) Others
10.6 (A)
100 b. Both Assertion (A) and Reason (R) are true but
Source: Census of India 2011 Reason (R) is not the correct explanation of
a. Small ndustries < Trade Assertion (A)
b. Agriculture Agricultural labour
< c. Assertion (A) is true but Reason (R) is false
c. Mining share is minimum
d. None of the above
d. Assertion (A) is false but Reason (R) is true.
Q 38. Deposit or money multiplier is:
33. Assertion (A): TATA iron and steel company was
a. b. <LR
established in 1907. CRR
Reason (R): TATA iron and steel company was first
d. None of these
iron and steel company in India by an Indian. LRR
a. Both ASsertion (A) and Reason (R) are true and
Q 39. Assertion (A): There are two components of money
Reason (R) is the correct explanation of Assertion supply, currency help by the public and net demand
(A) deposits help by the commercial banks.
b. Both Assertion (A) and Reason (R) are true but Reason (R): Money supply is a stock variable and
Reason (R) is not the correct explanation of refers to the stock of money held by public in
Assertion (A).
spendable form ie., money supply refers to the stock
C. Assertion (A) is true but Reason (R) is false. of money in circulation in an economy.
d. Assertion (A) is false but Reason (R) is true. a. Both Assertion (A) and Reason (R) are true and
34. Read the following statements carefully and choose Reason (R) is the correct explanation of Assertion
the correct alternatives given below: (A)
b. Both Assertion (A) and Reason (R) are true but
Statement I. Diversification of crop production Reason (R) is not the correct explanation of
lead to shift from single-cropping system to multi Assertion (A).
cropping system. C. Assertion (A) is true but Reason (R) is false
Statement li. It reduced the income of farmers due to d. Assertion (A) is false but Reason (R) is true.
increase in market risk because of price fluctuation. Q 40. Assertion (A): Small and marginal farmers need
a. Both the statements are true. to form cooperatives to obtain fair price for their
b. Both the statements are false. produce.
C. Statements I is true and statement ll is false. Reason (R): Instead of marketing their produce
d. Statement Il is true and statement l is false. separately, if they sell their produce through one
agency, this will increase their bargaining power.
35. Read the following statements carefully and choose a. Both Assertion (A) and Reason (R) are true and
the correct alternatives given below:
Reason (R) is the correct explanation of Assertion
Statement i. CRR and SLR are one and the same
(A).
b. Both Assertion (A) and Reason (R) are true but
thing.
with RBI Reason (R) is not the correct explanation of
Statement I. In CRR, banks keep reserve
Assertion (A).
whereas in SLR banks keep reserve with themselves
c. Assertion (A) is true but Reason (R) is false.
in the form of liquid assets like gold. d. Assertion (A) is false but Reason (R) is true.
a. Both the statements are true regulates the
41. Assertion (A): Quantitative measures
b. Both the statements are false. volume of credit.
C. Statements I is true and statement ll is false Reason (R): It includes bank rate, open market
I is false. operation, CRR, SLR, etc.
d. Statement ll is true and statement
Q36. Before 1921, India was in the. .ofdemographic a. Both Assertion (A) and Reason (R) are true and
Reason (R) is the correct explanation of Assertion
transition. (A)
b. second
a..first b. Both Assertion (A) and Reason (R) are true but
C. third d. fourth Reason (R) is not the correct explanation of
arises when Assertion (A)
37. Assertion (A): Deficit in BoP account
autonomous cAssertion (A) is true but Reason (R) is false
are more
than
autonomous receipts d. Assertion (A) is false but Reason (R) is true.
payments.
 Q42. Choose the correct alternatives to be filled in given Q 46. Assertion (A): Interest on loan received
blanks A and B. from forei.
country will be recorded on the debit side of gn
account.
Bn
2400 Reason (R): Interest on loan received from
foreins
calories country will bring funds to the country.
a. Both Assertion (A) and Reason (R) are
Rural Areea Rural Area
true an
Reason (R) is the correct explanation of
Assertionon
Consumption Income (A).
b. Both Assertion (A) and Reason (R) are true bu
2100 Reason (R) is not the correct explanation
f
Assertion (A).
calories
. Assertion (A) is true but Reason (R) is
false
Urban Area Urban Area d. Assertion (A) is false but Reason (R) is true.
Consumption Income
Q47. ldentify the correct statement from the
following:
a.816 in urban area and 7 1.000 in ruralarea (Choose the correct alternative)
b. 1.000 in urban area and 816 in rural area a. When exchange rate is too high, Central Bank star
c.1,000 in urban area and 900 in rural area purchasing foreign exchange
d. 900 in urban area and 1,000 in rural area b. When exchange rate is too high. Central Bank star
043. Mr Vansh wants to know about the regulators of selling foreign exchange
education in India. When exchange rate is too low, Central Bank star
Which of the following regulates the technical selling foreign exchange
d. None of the above
educational of the country?
a. NCERT 48. From the following statements given in Columni
b. ICMR
C. AICTE
and Column , choose thecorrect pairofstatements
Column Column I
d. UGC
044. Export and import of goods is known as: A. Adult literacy rate source of human
a. invisible trade capital formation
b. visible trade B. Education for all 2. a means to an end
C.one sided transaction
d. unrequested transfer Expenditure on 3. % of total
education and government
45. Read the following statements carefully and choose
health expenditure
the correct alternatives given below:
D. Human capital 4. still a distant dream
Statement I. NRLM stands for National Rural treats human
Livelihood Mission.
Statement I. This scheme is known as Aajeevika. being as
NRLM is now renamed as Deendayal Antyodaya E Government 5. Indicator of
expenditure on educational
Yojana. education as a achievement
a. Both the statements are true.
b. Both the statements are false. ABC D E A BC D E
c. Statement I is true and statement Il is false. a. 5 4 1 2 3 b. 4 3 215
d. Statement ll is true and statement l is false. c.1 2 34 5 d. 2 1 45 3

SECTION-C
Directions (Q. Nos. 49-60): This section consists of
multiple choice questions with overall choice to attempt
any 10 questions. In case more than desirable number of
questions are attempted, only first 10 will be considered for
evaluation.
Read the extract given below and answer the questions
(Q. Nos. 49-54) on the basis of the same:
Fiscal policy in a secular state aims at achieving
an efficient allocation of resources which
yields
maximum material benefits to the society.
Resources should be utilised only in way that
12 achieves welfare of man in world. Resources should
be utilised optimally i.e., without extravagance and
catering for the needs of future generations alse
Public sector should produce goods which serve th
public interest in general. Such goods are usually
indivisible and also generate externalities. Publ"
goods to be provided by contemporary governmen
include national defence and
security (which shouk
be geared to the protection of nation at large anw
not to that of certain interest groups within *
sOCiety), provision of infrastructure such as roads
 telecommunications as well as
other facilities Read the extract
needed all
by sectors of the given below and answer the
economy. Social capital questions (Q. Nos. 55-60) on the basis of the same:
should also be
developed through provision of The World Trade Organisation came into
education, sports facilities, public health, being
medical in 1995. One of the
youngest of the international
facilities, environmental facilities.
piped water organisation, the WTO is the successor to the
supplies drainages, sewage facilities and
housing. General Agreement on Tariffs and Trade (GATT)
049. Fiscal policy is formulated established in the wake of the Second World
by . . I t aims to War. So, while the WTO is relatively young, the
bring changes in aggregate demand by
altering the multilateral trading system that was originally set
**** . . i n the economy.
a.Central Government. up under the GATT is over 70 years old. The past
purchasing power 70 years have seen an exceptional growth in world
b.Central Bank. purchasing power
c. Central Government, money trade. Merchandise exports have grown on average
supply by 6% annually. This growth in trade has been a
d. Central Bank, money
supply
powerful engine for overall economic expansion
Q50. Which of the following is not a
component of fiscal and an average trade has grown by 1.5 times more
policy of the government?
than the global economy each year. Total exports
a. Fines, Challans and penalties in 2019 were 250 times the level of 1948. The
b. Expenditure on maintenance of roads and dams
GATT and the WTO have helped to create a strong
c. Margin requirements
and prosperous trading system contributing to
d. Escheats and
special assessments
unprecedented growth.
Q51 Expenditure by government on maintenance of
telecommunications and transportation services in Q55. GATT was signed in:
a. 1938 b. 1948
the economy is an example of:
C. 1947 d. 1968
a. revenue receipts b. capital receipts
Q56. GATT was signed by.....Countries.
C. revenue expenditure d. capital expenditure a. 20 b. 23
Q52. When private sector does not find producing certain 25 d. 27
goods and services attractive, production of such Q 57. GATTwas the predecessor of
goods and services is taken by the government. a. International Monetary Fund
b. World Trade Organisation
This refers to the .. .... unction of Government
c. World Bank
Budget. d. International Bank for reconstruction and
a. reducing inequalities of income and wealth development
b. balanced regional development Q58. Which of the following is not an objective of WTO?
C. reallocation of resources a. To allow free flow of goods and services
d. economic stability b. To protect resources and environment
Q53. Construction ofinfrastructure is an example of: c. To promote the interests of developed nations
d. To provide trade opportunities to member
a. revenue receipts
cOuntries
b. capital receipts
Q59. Merchandise exports have grown on average by
C. revenue expenditure
annually.
d. capital expenditure a. 5% b. 7%
Q54. Union Budget is related to: C. 3% d. 6%
a. Commercial Banks Q 60. Total exports in 2019 were. times the level of
b. Central Bank 1948.
c. Central Government a. 150 b. 200

d. Planning Commission 250 d 300