Economics Practice Questions Set 4

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For India's Top Government Exams

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Which one among the following is a fixed cost to a manufacturing firm in the short run?
*

1 point

Insurance on buildings

Overtime payment to the worker

Cost of energy

Cost of raw materials

FDI in Multi-Brand Retail Trade (MBRT) in all products is now permitted in India subject to

1. a ceiling of 51%
2. minimum amount to be brought in as FDI by the foreign investor is the US $ 100 million.
3. at least 50% of the procurement of manufactured/processed products should be sourced from ‘small industries’.
4. retail sales locations set up only in cities with a population of more than 10 lakh.
Select the correct answer using the codes given below

1 point

1, 2, 3 and 4

1 and 4

Only 2

1, 2 and 4

The concept which tries to ascertain the actual deficit in the revenue account after adjusting for the expenditure of capital nature is termed as
*

1 point

revenue deficit

effective revenue deficit

fiscal deficit

primary deficit

Which of the following institutions was/were asked by the Government of India to provide official estimates of black (unaccounted) money held by Indians, both in India and abroad?

1. National Institute of Public Finance and Policy.
2. National Council of Applied Economic Research.
3. National Institute of Financial Management.
Select the correct answer using the codes given below

1 point

Only 1

1 and 2

2 and 3

All of these

Which of the following are included in the category of direct tax in India?

1. Corporation tax
2. Tax on income
3. Wealth tax
4. Customs duty
5. Excise duty
Select the correct answer using the codes given below

1 point

1, 2 and 3

1, 2, 4 and 5

2 and 3

1, 3, 4 and 5

The sharp depreciation of the rupee in the Forex market in the year 2011 was due to

1. flight to safety by foreign investors.
2. meltdown in European markets.
3. inflation in emerging market economies.
4. lag effect of monetary policy tightening.
Select the correct answer using the codes given below

1 point

1, 2 and 3

1, 2 and 4

3 and 4

1, 2, 3 and 4

Which one among the following is an appropriate description of deflation? *

1 point

it is a sudden fall in the value of a currency against other currencies

It is a persistent recession in the economy

It is a persistent fall in the general price level of goods and services

It is a fall in the rate of inflation over a period of time

Which of the following occupations are included under the secondary sector as per the national income accounts?

1. Manufacturing
2. Construction
3. Gas and water supply
4. Mining and quarrying
Select the correct answer using the codes given below

1 point

1, 2, 3 and 4

1, 2 and 4

1, 2 and 3

3 and 4

The lower growth of coal production in India during 2011-2012 was primarily due to

1. environmental restrictions
2. non-availability of forestry clearance
3. poor law and order situation in coal-producing states
4. excessive rainfall in coal mining areas
Select the correct answer using the codes given below

1 point

1, 2, 3 and 4

1, 2 and 3

2, 3 and 4

1 and 4

The government can influence private sector expenditure by

1. taxation
2. subsidies
3. macro-economic policies
4. grants
Select the correct answer using the codes given below

1 point

1, 2, 3 and 4

1, 2 and 4

1, 2 and 3

3 and 4