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NCERT (Economics) Class-XII

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EconomicsDate Added: 2022-05-23 Which of the following is/are parts of macroeconomics strategy? 1. Aggregate output level 2. Price level 3. Employment Choose the correct answer using the options given below:
	Only 1 and 2
	1, 2 and 3
	Only 2 and 3
	Only 1 and 3

EconomicsDate Added: 2022-05-23 Which of the following is/are correct about 'economic agent'?
	Economic agents are those individuals or institutions which face the consequences of an economic policy.
	Sectors of economy such as industry, agriculture etc. are examples of economic agents.
	Economic agents are those individuals or institutions which take economic decisions.
	None of the above

EconomicsDate Added: 2022-05-23 Who among the following is known as 'founding father of economics'?
	Adam Smith
	Woodrow Wilson
	John Keynes
	Milton friedman

EconomicsDate Added: 2022-05-23 'An Enquiry into the Nature and Cause of the Wealth of Nations' in 1776 was written by which of the famous economist?
	Karl Marx
	Amartya Sen
	Adam Smith
	None of the above

EconomicsDate Added: 2022-05-23 The famous book 'The General Theory of Employment, Interest and Money' written in 1936 is concerned with which of the following branches of economics?
	Welfare economics
	Microeconomics
	Macroeconomics
	Agricultural economics

EconomicsDate Added: 2022-05-23 Which of the following book was written by the famous economist John Keynes?
	The Economic Consequences of the Peace (1919).
	General Theory of Employment, Interest and Money (1936).
	An Enquiry into the Nature and Cause of the Wealth of Nations (1776)
	Both a and b

EconomicsDate Added: 2022-05-23 Consider the following statements: 1. The economic impacts of the Great Depression of 1929 and the subsequent years were majority confined to North American continent only. 2. In USA, from 1929 to 1933, unemployment rate remained stable at 3 per cent while aggregate output fell by more than 40%. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 Which of the following best describe(s) a 'resource' in economics context?
	Good only
	Service only
	A Good or a service
	Neither a good nor a service

EconomicsDate Added: 2022-05-23 Consider the following statements regarding types of goods: 1. Goods like food and clothing, and services like recreation that are consumed when purchased by their ultimate consumers are called capital goods. 2. The goods that are of durable character which are used in the production process are consumer goods. The correct statement(s) is/are:
	1 only
	2 only
	All are correct
	None

EconomicsDate Added: 2022-05-23 This deletion, which is made from the value of gross investment in order to accommodate regular wear and tear of capital, is called
	Depreciation
	Degradation
	Provision
	Factor cost

EconomicsDate Added: 2022-05-23 Consider the following statements regarding Product and Value Added Method of GDP: 1. In product method, we calculate the aggregate annual value of goods and services produced by all the firms. 2. Value added of a firm is, value of production of the firm Less value of intermediate goods. The correct statement(s) is/are:
	1 only
	2 only
	All are correct
	None

EconomicsDate Added: 2022-05-23 Consider the following Statements regarding Expenditure Method of GDP: 1. This method looks at the supply side of the products. 2. In this method we add the final expenditures that each firm makes. The correct statement(s) is/are:
	1 only
	2 only
	All are correct
	None

EconomicsDate Added: 2022-05-23 Consider the following statements regarding Income Method of GDP: 1. This method considers incomes received by all the factors of production taken together. 2. Incomes earned by different factors of production as salaries, wages, profits, interest earnings and rents are aggregated to compute GDP The correct statement(s) is/are:
	1 only
	2 only
	All are correct
	None

EconomicsDate Added: 2022-05-23 Consider the following statements regarding important economic indicators: 1. Gross National Product (GNP) is GDP plus Net factor income from abroad. 2. Net Domestic Product at factor cost is also known as National Income. The correct statement(s) is/are:
	1 only
	2 only
	All are correct
	None

EconomicsDate Added: 2022-05-23 Consider the following statements regarding GDP: 1. Real GDP is simply the value of GDP at the current prevailing prices. 2. Nominal GDP is calculated in a way such that the goods and services are evaluated at some constant set of prices (or constant prices). The correct statement(s) is/are:
	1 only
	2 only
	All are correct
	None

EconomicsDate Added: 2022-05-23 Which of the following is/are 'final goods' in economic sense? 1. Tea2. Raw Iron 3. Electrical appliances Choose the correct answer using the options given below:
	Only 1 and 3
	Only 1 and 2
	Only 2 and 3
	All the above

EconomicsDate Added: 2022-05-23 Consider the following statements: 1. The total monetary value of capital goods in gross output is known as gross investment. 2. In terms of economic industrial accounting, stocks are defined over a period of time. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 Which of the following is correct about 'Net Investment' in an economy?
	Net Investment = Gross investment - Depreciation
	Net Investment = Gross investment - Inflation
	Net Investment = Gross investment+ Inflation - Depreciation
	Net Investment = Gross investment + Depreciation

EconomicsDate Added: 2022-05-23 Consider the following statements: 1. More sophisticated and heavy capital goods raise the productivity of an economy. 2. More consumption and production of capital goods is an indication of shrinking of capacity in an economy. The correct statement (s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 Which of the following is correct with respect to the word 'inventory' in context of economics?
	It is stock of all finished goods of a firm in a particular fiscal year.
	It is the stock of unsold finished goods, or semi-finished goods, or raw materials which a firm carries forward from one year to the next.
	It is the stock of raw materials that a firm procures from other firms in a given year.
	None of the above

EconomicsDate Added: 2022-05-23 Consider the following statements: 1. A change in the inventory of a firm is treated as investment. 2. Under fixed business investment, the inventories of a firm essentially go up. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 Consider the following statements: 1. The Central Statistics Office (CSO) of the Government of India has been reporting the GDP at factor cost only. 2. Gross Value Addition (GVA) is the value of total output produced in the economy less the value of intermediate consumption. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 Consider the following statements: 1. GNP = GDP + Net factor income from abroad 2. Net National Product at factor cost is 'National Income' 3. National Disposable Income = Net National product at market prices + other current transfers from the rest of the world. Which of the statements given above is/are correct?
	1 and 2 only
	2 and 3 only
	1, 2 and 3
	1 and 3 only

EconomicsDate Added: 2022-05-23 Consider the following statements: 1. Real GDP is calculated in a way such that the goods and services are evaluated at constant prices. 2. Nominal GDP is the value of GDP at the current prevailing prices. 3. The ratio of Real GDP to Nominal is known as Index of prices (GDP Deflator). Which of the statements given above is/are correct?
	1 and 2 only
	2 and 3 only
	1, 2 and 3
	1 and 3 only

EconomicsDate Added: 2022-05-23 Consider the following statements and identify the right ones: 1. National income is the monetary value of all final goods and services produced in India. 2. Depreciation is deducted from gross value to get the net value. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 Consider the following statements and identify the right ones : 1. While calculating GDP, income generated by foreigners in a country is taken into consideration. 2. While calculating GDP, income generated by nationals of a country outside the country is taken into account. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 The net value of GDP after deducting depreciation from GDP is
	Net national product
	Net domestic product
	Gross national product
	Disposable income

EconomicsDate Added: 2022-05-23 The value of NNP at consumer point is
	NNP at factor cost
	NNP at market price
	GNP at market price
	GNP at factor cost

EconomicsDate Added: 2022-05-23 The value of NNP at production point is called
	NNP at factor cost
	NNP at market price
	GNP at market price
	GNP at factor cost

EconomicsDate Added: 2022-05-23 The value of national income adjusted for inflation is called
	Per capita income
	Disposable income
	Inflation rate
	Real national income

EconomicsDate Added: 2022-05-23 The average income of the country is
	Per capita income
	Disposable income
	Inflation rate
	Real national income

EconomicsDate Added: 2022-05-23 Receipts in budget can be capital or revenue. Which of these is/are capital receipt/s? 1. Loan recoveries 2. Provident fund deposit 3. Grants Select the correct answer using the codes given below.
	1 and 2 only
	1 and 3 only
	2 and 3 only
	1, 2 and 3

EconomicsDate Added: 2022-05-23 Gross capital formation will increase if: 1. gross domestic savings increases. 2. gross domestic consumption increases. 3. GDP increases. Select the correct answer using the codes given below.
	1 only
	1 and 2 only
	1 and 3 only
	None

EconomicsDate Added: 2022-05-23 Consider the following statements: 1. India's GDP is more than its GNP. 2. Net Factor Income from Abroad (NFIA) is positive for India. Which of the statements given above is/are correct?
	1 only
	2 only
	Both 1 and 2
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 Integrated Child Development Services (ICDS) Scheme aims to provide many services to children that includes: 1. School education 2. Nutrition support 3. Immunization Select the correct answer using the codes given below.
	1 and 2 only
	1 and 3 only
	2 and 3 only
	1, 2 and 3

EconomicsDate Added: 2022-05-23 Gross budgetary support means:
	centre's contribution to budget.
	expenditure in budget on social schemes
	assistance provided by the Centre to five year plan.
	None of the above.

EconomicsDate Added: 2022-05-23 Consider the following statement about Gross National Product. 1. It includes Factor income earned by the factors of production of the rest of the world employed in the domestic economy. 2. It excludes Factor income earned by the domestic factors of production employed in the rest of the world. Choose the correct answer from the following code:
	Only 1
	Only 2
	Both 1 and 2
	None of the above

EconomicsDate Added: 2022-05-23 Consider the following statements regarding the difference between CPI and GDP deflator: 1. CPI covers more goods and services as compared to GDP deflator. 2. GDP deflator does not include prices of imported goods. 3. The weights are constant in CPI - but they differ according to production level of each good in GDP deflator. Which of the statements given above is/are correct?
	1 only
	1 and 2 only
	2 and 3 only
	All the above

EconomicsDate Added: 2022-05-23 Consider the following statement 1. Net National Product at market price = Gross Domestic Product - Depreciation 2. Net National Income at factor cost = Personal Income Choose the correct answer from the following code:
	Only 1
	Only 2
	Both 1 and 2
	None of the above

EconomicsDate Added: 2022-05-23 Consider the following statements: 1. Real GDP increases when the value of goods and services increases. 2. Nominal GDP is the value of GDP at current prevailing prices. Choose the correct answer from the following code:
	Only 1
	Only 2
	Both 1 and 2
	None of the above

EconomicsDate Added: 2022-05-23 Which of the following is/are a measure/s of Inflation in an economy 1. GDP deflator. 2. Consumer Price Index. 3. Whole sale Price Index. Choose the correct answer from the following code
	Only 2
	Only 2 and 3
	Only 1 and 3
	All the above

EconomicsDate Added: 2022-05-23 Consider the following statements: 1. An increase in GDP implies a better quality of life of the people of the country. 2. Services provided by women in their household is not calculated in the GDP. Choose the correct answer from the following code:
	Only 1
	Only 2
	Both 1 and 2
	None of the above

EconomicsDate Added: 2022-05-23 National Disposable Income does not include which of the following?
	Net National Product at Factor cost
	Gifts to the government in cash and kind
	Indirect taxes
	Subsidy

EconomicsDate Added: 2022-05-23 Consider the following statement about Fiscal Deficit 1. Fiscal deficit is expressed as a percentage of the Nominal GDP of India. 2. Fiscal deficit allows for the shortfall in the income of the government to do welfare and development activities. Choose the answer from the following code:
	Only 1
	Only 2
	Both 1 and 2
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 Consider the following statements: 1. Effective revenue deficit is revenue deficit minus grants to states for creation of capital assets. 2. Primary Deficit is measured by fiscal deficit less interest payments. 3. Revenue Deficit is the difference between the total expenditure and revenue receipts plus non-debt capital receipts. Choose the correct answer from the following code:
	1 and 2 only
	2 and 3 only
	1 and 3 only
	1, 2 and 3

EconomicsDate Added: 2022-05-23 Money can perform which of the following function(s)? 1. Medium of exchange. 2. A convenient unit of account. 3. To act as a store of value for individuals Choose the correct answer from the options given below:
	Only 1 and 2
	Only 1 and 3
	Only 2 and 3
	All the above

EconomicsDate Added: 2022-05-23 Consider the following statements: 1. A cashless society describes an economic state whereby financial transactions through money in the form of physical bank notes or coins have been completely eradicated. 2. In India government has been consistently investing in various reforms for greater degree of cashless economy. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 'National Financial Switch' is mentioned in the context of:
	Cashless economy
	Regulation of Stock market
	Curbing on black money
	None of the above

EconomicsDate Added: 2022-05-23 The relation of demand of money with economic transaction is:
	Directly proportional
	Inversely proportional
	Varies accordingly
	No relation whatsoever

EconomicsDate Added: 2022-05-23 Consider the following statements: 1. India's central bank was established after the independence from foreign rule. 2. Apart from discharging other important regulatory functions, the central bank also acts as a banker to the central as well as state governments. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 Which of the following function(s) are discharged by the Reserve Bank of India (RBI)? 1. Issuing the currency of the country. 2. Controlling money supply of the country through various methods. 3. Acting as a banker to the government. 4. It is the custodian of the foreign exchange reserves of the economy. 5. It acts as a bank to the banking system. Choose the correct answer using the options given below:
	Only 1 and 2
	Only 1, 2 and 3
	Only 1, 2, 3 and 4
	All the above

EconomicsDate Added: 2022-05-23 'High-powered money' is that quantum of money which is held by:
	Reserve Bank of India
	Public
	Commercial Banks
	Both b and c

EconomicsDate Added: 2022-05-23 Which of the following is correct with respect to term 'Spread' in context of monetary policy?
	It is the difference between repo rate and reverse repo rate as determined by RBI.
	It is the difference ratio between SLR and CRR as determined by RBI.
	It is the difference between the interests charged by Commercial banks to its borrowers and the interests it gives to its lenders.
	None of the above

EconomicsDate Added: 2022-05-23 Consider the following statements: 1. Commercial banks mediate between individuals or firms with excess funds and lend to those who need funds. 2. People prefer to keep money in banks because they think their money would be safe with banks only. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 Which of the following is/are an asset for a commercial bank?
	Its reserves
	Loans advanced by the bank
	None of the above
	Both a and b

EconomicsDate Added: 2022-05-23 Consider the following statements: 1. RBI puts limitation upon the credit creation capability of banks through its regulatory powers. 2. Cash Reserve Ratio (CRR) is the percentage of deposits which a bank must keep as cash reserves with RBI. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 Consider the following statements: 1. RBI is legally mandated to lend the commercial banks at any time under any circumstances. 2. The RBI uses both qualitative and quantitative tools to control money supply in the market. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 What is/are motive/s of people in holding money: 1. Transaction Motive i.e. to carry out day to day transactions. 2. Speculative Motive i.e. to make investments. Identify the correct statements:
	1 only
	2 only
	All are correct
	None

EconomicsDate Added: 2022-05-23 Consider the following statements regarding money: 1. Currency notes and coins are called fiat money. 2. This means that if someone produces the note to RBI, or any other commercial bank, RBI will be responsible for giving the person purchasing power equal to the value printed on the note. Identify the correct statements:
	1 only
	2 only
	All are correct
	None

EconomicsDate Added: 2022-05-23 Consider the following statements regarding money supply: 1. Money supply is a flow variable. 2. While M1 and M2 are known as narrow money, M3 & M4 are broad money. 3. M3 is also known as aggregate monetary resource and is the most commonly used measure of money supply. Identify the correct statements:
	1 and 2 only
	2 and 3 only
	All are correct
	1 only

EconomicsDate Added: 2022-05-23 Consider the following statements regarding High Powered Money: 1. The total liability of the monetary authority of the country, RBI, is called the monetary base or high powered money. 2. It consists of currency (notes and coins in circulation with the public and vault cash of commercial banks) and deposits held by the Government of India and commercial banks with RBI. 3. Total amount of money stock in the economy is equal to the volume of high powered money. Identify the correct statements:
	1 and 2 only
	2 and 3 only
	All are correct
	1 only

EconomicsDate Added: 2022-05-23 Consider the following statements about Cash Reserve Ratio (CRR): 1. Maintaining a CRR is mandatory for all banks functioning in India. 2. The RBI sets the CRR on its own discretion. 3. CRR has been gradually reduced after the reforms period since 1991. Which of these is/are true?
	1 and 2 only
	2 and 3 Only
	1 and 3 Only
	All the above

EconomicsDate Added: 2022-05-23 Consider the following statements about the impact of the Cash Reserve Ration (CRR): 1. Reducing CRR injects liquidity in the financial system. 2. The secondary liquidity injected is far more than the primary liquidity injected by CRR. 3. Increasing CRR can tackle inflation in the short-run. Which of these is/are true?
	1 and 2 Only
	2 and 3 Only
	1 and 3 Only
	All the above

EconomicsDate Added: 2022-05-23 Consider the following statements about Statutory Liquidity Ratio (SLR): 1. Increasing SLR sucks liquidity from the banking system. 2. SLR can be kept only in the form of government bonds/securities or treasury bills. 3. It is a monetary policy tool of the RBI. Which of these is/are true?
	1 and 2
	2 and 3
	1 and 3
	All the above

EconomicsDate Added: 2022-05-23 Consider the following statements about Repo rate: 1. It is used for the purpose of short-term lending by the banks. 2. This rate functions as the benchmark rate for inter-bank interest rate. 3. It has direct impact on the nominal interest rate of bank's lending. Which of these is/are true?
	1 and 2
	2 and 3
	1 and 3
	All the above

EconomicsDate Added: 2022-05-23 Consider the following statements about Reverse repo rate: 1. Reducing this rate increases the money supply. 2. Increasing this rate cuts bank losses. Which of these is/are true?
	Only 1
	Only 2
	Both
	None of the above

EconomicsDate Added: 2022-05-23 Which of the following would increase the money supply in the economy? 1. A scheduled commercial bank issuing a cheque to its customer. 2. Reduction in Cash Reserve Ratio (CRR) 3. A customer depositing money in a scheduled commercial bank. 4. RBI issuing fresh currency Choose the correct answer using the codes below:
	1, 2 and 3
	2, 3 and 4
	2 and 4 only
	1, 3 and 4

EconomicsDate Added: 2022-05-23 Consider the following statements with respect to fiat money: 1. They have same intrinsic value as gold or silver. 2. They cannot be refused by any citizen of the country for settlement of any kind of transaction. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 Consider the following statements: 1. While currency is issued by the Reserve Bank of India, coins are issued by the Government. 2. Fixed deposits are also part of demand deposits. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 Some of the legal definitions of money is given below. Which of the following is known as 'broad money'?
	M1 = CU (CU is currency (notes plus coins) held by the public) + DD(net demand deposits held by commercial banks).
	M2 = M1 + Savings deposits with Post Office savings banks.
	M3 = M1 + Net time deposits of commercial banks.
	M4 = M3 + Total deposits with Post Office savings organisations (excluding National Savings Certificates).

EconomicsDate Added: 2022-05-23 Which of the following was/were objectives of demonetisation that took place in December, 2016? 1. To tackle the problem of corruption. 2. Prevent black money generation. 3. Stop terrorism and circulation of fake currency in the economy. Choose the correct answer using the options given below:
	Only 1 and 2
	Only 1
	Only 2 and 3
	All the above

EconomicsDate Added: 2022-05-23 Which of the following was/were among positive impacts of demonetisation on Indian economy? 1. The shortage of currency in circulation overall had encouraged economic growth. 2. It improved tax compliance as a large number of people were brought in the tax ambit. 3. The savings of an individual were channelised into the formal financial system. The correct statement(s) is/are:
	Only 1 and 2
	Only 1 and 3
	Only 2 and 3
	All the above

EconomicsDate Added: 2022-05-23 In the context of Indian economy consider the following statements: 1. Statutory Liquidity Ratio (SLR) is the amount which Commercial banks are required to keep with RBI. 2. Cash Reserve Ratio (CRR) is the deposit which the Commercial banks are required to invest in specified liquid assets. Which of the statements given above is/are correct?
	1 only
	2 only
	Both 1 and 2
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 M3, which is also known as 'Broad Money', consists of which of the following? 1. Currency notes and coins held by public. 2. Net demand deposit held by public. 3. Savings deposits with Post Office Savings Banks. 4. Net time deposits of Commercial Banks. Select the correct answer using the code given below:
	1 and 2 only
	2 and 4 only
	1, 2 and 3 only
	1, 2 and 4 only

EconomicsDate Added: 2022-05-23 Consider the following statements about Repo Rate: 1. An increase in Repo rate decreases liquidity in the economy. 2. An increase in Repo rate increases inflation in the economy. Choose the answer from the following code:
	Only 1
	Only 2
	Both 1 and 2
	None of the above

EconomicsDate Added: 2022-05-23 Which of the following tools are used by Central Bank to achieve Monetary Policy ends? 1. Open Market Operations 2. Reserve Ratios 3. Moral Suasion 4. Bank Rate Choose the answer from the following code:
	Only 1 and 4
	Only 1, 2 and 4
	Only 2 and 3
	All the above

EconomicsDate Added: 2022-05-23 Consider the following statements about Statutory Liquid Ratio : 1. The lower and upper limit of SLR is fixed in Indian economy 2. SLR is regulated only under the RBI act 1934. Choose the answer from the following code:
	Only 1
	Only 2
	Both 1 and 2
	None of the above

EconomicsDate Added: 2022-05-23 Which of the following is/are part of the foreign exchange reserves of India? 1. Foreign Currency Assets (FCAs) 2. Gold 3. Special Drawing Rights (SDRs) Select the correct answer using the code given below:
	1 only
	1 and 2 only
	2 and 3 only
	1, 2 and 3

EconomicsDate Added: 2022-05-23 Which of the following is correct with respect to algebraic expression C = a + b (Y)
	It is the algebraic function of the level of investment expenditure.
	It is the linear function of the level of consumption expenditure.
	The algebraic function of the level of consumption expenditure.
	The algebraic function of the level of capital expenditure.

EconomicsDate Added: 2022-05-23 In context of economics, economy aggregate demand equals
	Consumption + Private consumption expenditure
	Consumption + Exports
	Consumption + Investments
	Consumption + Government Expenditure

EconomicsDate Added: 2022-05-23 Consider the following statement: 'Consumption changes in the same direction as income.' The statement is:
	Correct
	Incorrect
	Correct with additional information
	Insufficient information to decide

EconomicsDate Added: 2022-05-23 The level of equilibrium income is determined by, (where AD= Aggregate Demand, AS= Aggregate Supply)
	AD and national income
	AD and investment
	AD and consumption
	AD and AS

EconomicsDate Added: 2022-05-23 India adopted the 'mixed economy' model after independence. Which of the following is correct about 'mixed economy'?
	It is an economic system where private and public both sectors co-exist and operate.
	It is an economic system where agriculture and industry both have equal share in National income.
	It is an economic system where the monetary and fiscal policies are intermixed.
	None of the above

EconomicsDate Added: 2022-05-23 Consider the following statements: 1. The government is constitutionally obliged to present before the Parliament a statement of estimated receipts and expenditures of the government in respect of every financial year. 2. The impacts of an annual general budget remains confined to that financial year only. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 Which of the following would be considered as 'public good(s)'? 1. Roads 2. General Administration 3. Food items Choose the correct answer using the options given below:
	Only 1 and 2
	Only 1 and 3
	Only 2 and 3
	All the above

EconomicsDate Added: 2022-05-23 Consider the following statements with reference to difference between public and private goods: 1. Public goods are always non-excludable. 2. Public goods may be produced by the government or the private sector. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 Which of the following most correctly implies the meaning of 'public provision' in context of economics?
	When a project is legally mandated to be audited by public accountant.
	When a project is ordered by the government but produced by private sector.
	When a project financed through the government budget and can be used without any direct payment.
	None of the above

EconomicsDate Added: 2022-05-23 Consider the following statements: 1. Out of public income, what finally reaches the households is known as personal income. 2. The government sector affects the personal disposable income of households by making transfers and collecting taxes. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 When in an economy the unemployment soars high, the government intervention measures aim at:
	Increasing aggregate demand.
	Decreasing aggregate demands.
	Suppress the supply side induced inflation.
	Aggregate demands has nothing to do with unemployment.

EconomicsDate Added: 2022-05-23 Consider the following statements: 1. Revenue receipts are those receipts that do not lead to a claim on the government. 2. Under progressive taxing system, a uniform rate of tax is charged across the different class of taxable groups. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 Non-tax revenue of the central government mainly consists of : 1. Interest receipts on account of loans by the central government. 2. Dividends and profits on investments made by the government. 3. Fees and other receipts for services rendered by the government. 4. Foreign loans received by the Government of India. Choose the correct answer using the options given below:
	Only 1 and 2
	Only 1, 2 and 3
	Only 2 and 3
	All the above

EconomicsDate Added: 2022-05-23 Consider the following statements: 1. The purpose of revenue expenditure is strictly the creation of physical or financial assets of the central government. 2. Interest payments on debt incurred by the government is an important constituent of capital expenditure. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 After introduction of GST, there has been a demand of introducing direct tax reforms. A direct tax is a tax which is imposed on:
	Corporations only
	Individuals and corporations
	Individuals only
	None of these

EconomicsDate Added: 2022-05-23 Consider the following statements: 1. The Medium-term Fiscal Policy Statement under FRBMA sets a three- month rolling target for specific fiscal indicators. 2. The Fiscal Policy Strategy Statement sets the priorities of the government in the fiscal area, examining current policies and justifying any deviation in important fiscal measures. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 Which of the following is correct mathematical formulation of revenue deficit?
	Revenue deficit = Revenue expenditure - Revenue receipts.
	Revenue deficit = Revenue expenditure - Revenue receipts + Interests paid on government lending.
	Revenue deficit = Revenue expenditure - Revenue receipts - Payment of debt interests.
	None of the above

EconomicsDate Added: 2022-05-23 Consider the following statements: 1. Fiscal deficit is the difference between the government's total expenditure and its total receipts excluding borrowing. 2. The most common way to plug the fiscal deficit is to print more money by RBI. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 Consider the following statements: 1. The goal of measuring primary deficit is to focus on present fiscal imbalances. 2. Net interest liabilities also consist of interest payments including interest receipts by the government on net domestic lending. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 Which of the following entities operates fiscal policy of India?
	Reserve Bank of India
	Finance Ministry
	The Parliament
	None of the above

EconomicsDate Added: 2022-05-23 If all the people of the economy increase the proportion of income they save (i.e. if the mps of the economy increases) the total value of savings in the economy will not increase - it will either decline or remain unchanged. This is popularly called as:
	Paradox of thrift
	Giffen Paradox
	Marshall's Dilemma
	Philips Law

EconomicsDate Added: 2022-05-23 Consider the following statements regarding Revenue Receipts: 1. Revenue receipts are receipts of the government which are non-redeemable, that is, they cannot be reclaimed from the government. 2. They are divided into tax and non-tax revenues. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 Which of following form part of non-tax revenue receipts of government: 1. Interest receipts on account of loans. 2. Dividends and profits on investments made. 3. Cash grants-in-aid from foreign countries and international organisations Choose the correct answer using the options given below:
	1 and 2 only
	2 and 3 only
	All are correct
	1 only

EconomicsDate Added: 2022-05-23 Consider the following statements regarding Revenue Expenditure: 1. Revenue Expenditure is expenditure incurred for purposes other than the creation of physical or financial assets of the central government. 2. CInterest payments on loans is an important component of revenue expenditure. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 Which of following are part of capital receipts of government: 1. Market Borrowings of the government 2. Borrowing by the government from the Reserve Bank and commercial banks 3. Small savings (Post-Office Savings Accounts, National Savings Certificates, etc.) 4. PSU disinvestment Choose the correct answer using the options given below:
	1, 2 and 4 only
	2, 3 and 4 only
	All are correct
	2 and 3 only

EconomicsDate Added: 2022-05-23 Consider the following statements regarding Primary Deficit: 1. The goal of measuring primary deficit is to focus on present fiscal imbalances. 2. It is simply the fiscal deficit minus the interest payments. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 Which of following form part of Trade in services in BoP: 1. factor income - compensation of employees & net investment income 2. non-factor income - shipping, banking, insurance, tourism, software services etc. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 Consider the following statements regarding balance of payments: 1. The balance of payments (BoP) record the transactions in goods, services and assets between residents of a country with the rest of the world for a specified time period typically a year. 2. There are two main accounts in the BoP - the current account and the revenue account. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 Consider the following statements regarding Current Account of BoP: 1. The current account records exports and imports in only goods and not services. 2. Excess of current expenditures over current receipts is called Current Account deficit. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 Consider the following statements regarding Real Effective Exchange Rate (REER): 1. It is calculated as the weighted average of the real exchange rates of all its trade partners. 2. It is interpreted as the quantity of domestic goods required to purchase one unit of a given basket of foreign goods. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 An Open economy is an economy which allows:
	Only Imports freely from other countries
	Imports and exports both freely
	Only exports freely to other countries
	None of the above

EconomicsDate Added: 2022-05-23 Consider the following statements: 1. In an open economy, consumers and producers can choose between domestic and foreign goods. 2. Immigration laws promote openness of an economy through facilitation of movement of labour between countries. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 Which of the following is/are important determinants of a national currency to be accepted as international currency?
	High value vis-a-vis other currencies
	Stability of the value
	Not freely convertible
	None of the above

EconomicsDate Added: 2022-05-23 The balance of payments (BoP) records transaction between residents of a country with the rest of the world for: 1. Goods2. Services 3. Assets Choose the correct answer using the options given below:
	Only 1 and 2
	Only 1
	Only 1 and 3
	All the above

EconomicsDate Added: 2022-05-23 Consider the following statements: 1. Transfer payments are the receipts which the residents of a country get for 'free', without having to provide any goods or services in return. 2. Transfer Payments are given only by private citizens living abroad. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 Consider the following statements: 1. A surplus current account means that the nation is borrower from other countries. 2. Balance of Trade (BoT) is said to be in balance when exports of goods are equal to the imports of goods. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 Which of the following is/are classified under 'Capital Account'? 1. Foreign Currency 2. Stocks 3. Bonds 4. Government debt Choose the correct answer using the options given below:
	Only 1 and 2
	Only 2 and 3
	Only 1, 2 and 4
	All the above

EconomicsDate Added: 2022-05-23 The reserve bank sells foreign exchange when:
	There is deficit in capital account.
	There is deficit in current account.
	There is deficit in balance of payments.
	None of the above.

EconomicsDate Added: 2022-05-23 Consider the following statements: 1. Autonomous transactions are always conducted with a sole objective to bridge the balance of payments gap. 2. Autonomous transactions are independent of the state of BoP The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 Which of the following is/are participants of foreign exchange market? 1. Commercial banks 2. Foreign exchange brokers 3. Monetary authorities Choose the correct answer using the options given below:
	Only 1 and 2
	Only 1 and 3
	Only 2 and 3
	All the above

EconomicsDate Added: 2022-05-23 Which of the following is/are determinants of inflow of foreign currency in the country? 1. Trading of domestic commodities by the foreigners. 2. FDI and portfolio investment in their home nation. 3. Purchase of foreign exchange. Choose the correct answer using the options given below:
	Only 1 and 2
	Only 1 and 3
	Only 2 and 3
	All the above

EconomicsDate Added: 2022-05-23 Which of the following is an 'advantage' of having a flexible exchange rate?
	It ensures the supply of the fixed exchange rate.
	It ensures demand for the fixed exchange rate.
	It ensures stability for the fixed exchange rate.
	None of the above.

EconomicsDate Added: 2022-05-23 Consider the following statements: 1. Floating exchange rate is determined by the market forces of demand and supply. 2. Even in a completely flexible system, the Central banks with significantly large foreign exchange reserves intervenes. The correct statement(s) is/are:
	Only 1
	Only 2
	1 and 2 both
	Neither 1 nor 2

EconomicsDate Added: 2022-05-23 Which of the following best conveys the meaning of 'depreciation' in context of currency exchange?
	Value of foreign currencies increased vis-a-vis domestic currency.
	Value of foreign currencies decreased vis-a-vis domestic currency.
	No effect in value of domestic currency vis-a-vis foreign currencies
	None of the above

EconomicsDate Added: 2022-05-23 Which of the following institutions are related to the management/maintenance/regulation of India's foreign exchange reserve? 1. World Bank 2. International Monetary Fund 3. Reserve Bank of India Choose the correct answer using the following codes:
	1 and 2
	2 and 3
	1 and 3
	All the above

EconomicsDate Added: 2022-05-23 The economic term 'Depreciation' can be used in which of the following contexts? 1. Depreciation of currency 2. Capital consumption 3. Trade balance Choose the correct answer using the following codes:
	1 and 2 Only
	2 and 3 Only
	1 and 3 Only
	All the above

EconomicsDate Added: 2022-05-23 Which of the following do not form a part of the Balance of Payments (BoP)? 1. Foreign Direct Investment 2. External Lending or borrowing 3. Foreign Institutional Investment 4. Issuing of external bonds Choose the correct answer using the following codes:
	1, 2 and 3 Only
	2, 3 and 4 Only
	1 and 4 Only
	None of the above

EconomicsDate Added: 2022-05-23 Full capital account convertibility will imply which of the following? 1. External Commercial borrowings (ECBs) are not limited by the government. 2. There is no limit to export and import of capital goods. 3. Restrictions of foreign institutional investment (FII) are removed completely. Choose the correct answer using the following codes:
	1 and 2 Only
	2 and 3 Only
	1 and 3 Only
	All the above