Economy(Ias ) Questions and answers for exam Preparation

Question 1. Chronic unemployment is measured using:

US data
CWS data
none of the two
both a & b

Explanation:-

Answer: Option D. -> both a & b
:
D

Question 2. Which among the following is not one of the important gold mines in the country?

Kolar
Hospet
Ramgiri
Hutti

Explanation:-

Answer: Option B. -> Hospet
:
B
(b)

Question 3. Consider the following statements in relation to the National Investment Fund (NIF) 2006:

NIF will consist of proceeds from disinvestment of government equity in PSUs.
It would be maintained outside the Consolidated Fund of India.
The Fund will be used to finance selected social sector schemes.
Some portion of the Fund will also be utilized for investment in loss-making PSUs.

Explanation:-

Answer: Option D. -> Some portion of the Fund will also be utilized for investment in loss-making PSUs.
:
D
(d)

Question 4. National Securities Depository Limited (NSDL) deals with:

bearer bonds
GDRs
electronic shares
debentures

Explanation:-

Answer: Option C. -> electronic shares
:
C
Option: (c)

Question 5. Some of the measures suggested to curtail inflation are:
1. Restricting public expenditure
2. Mopping up increased liquidity through taxation or savings
3. Strengthening public distribution system
Which of the above statements are correct?

1 and 3
2 and 3
1 and 2
1,2 and 3

Explanation:-

Answer: Option C. -> 1 and 2
:
C
Option: (c)

Question 6. Among the supply side measures to contain inflation is:

postponing public expenditure
mopping up excess liquidity through taxation
credit control measures of RBI
maintaining price levels through an effective PDS

Explanation:-

Answer: Option D. -> maintaining price levels through an effective PDS
:
D
Option: (d)

Question 7. In a planned or command economy, all the economic decisions are taken by the:

workers
voters
government
consumers

Explanation:-

Answer: Option B. -> voters
:
B
Option : (C)

Question 8. If the demand for tea decreases as income decreases, tea is:

a normal good.
an inferior good.
a complementary good.
a substitute good.

Explanation:-

Answer: Option A. -> a normal good.
:
A
Option : (A)

Question 9. When the market is allowed to operate without interference, price increases will distribute what is available to those who are willing and able to pay the most. This process is known as:

price fixing.
quantity adjustment.
quantity setting.
price rationing.

Explanation:-

Answer: Option C. -> quantity setting.
:
C
Option : (D)

Question 10. One of the disadvantages of the Wholesale Price Index in India is that:

it does not cover the services sector;
it is not available for individual commodities;
it is available only on monthly basis;
it is available only at constant prices.

Explanation:-

Answer: Option A. -> it does not cover the services sector;
:
A
Option: (a)