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GK (Economics)

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Read the following features of Indian Economy

  1. Domestic savings rate has been increasing.
  2. Foreign exchange resources have been rising.
  3. Growth rate has accelerated in recent years. Which of the aforesaid is/are correct?
  1. Only 1

  2. Only 2

  3. Both 1 and 2

  4. All 1, 2 and 3


Correct Option: D

A sheduled bank is a bank which is

  1. nationalised

  2. not-nationalised

  3. based in a foreign country

  4. included in the Second Schedule of RBI


Correct Option: D
Explanation:

Correction is (4). 

The empirical relationship between the rate of unemployment and the rate of inflation in the short run was formalized by

  1. A. W. Phillips

  2. James Tobin

  3. Paul Samuelson

  4. John Maynard Keynes


Correct Option: A

The 'liquidity trap' shows that

  1. interest rate will fall further

  2. interest rate cannot fall further

  3. interest rate must rise and bond prices fall

  4. interest rate must fall and bond prices rise


Correct Option: A

Which of the following concept of money supply is called 'Broad Money' in India?

  1. M1

  2. M2

  3. M3

  4. M4


Correct Option: C

The difference between 'GDP' and 'NDP' is

  1. Net Indirect Tax

  2. Government Revenue

  3. Consumption of Fixed Capital

  4. Net Capital Formation


Correct Option: C

For a hypothetical economy, the Net National Product is Rs. 10,000 crores, indirect taxes are Rs. 1,500 crores and subsidy is Rs. 800 crores. The value of national income will be

  1. Rs. 7,700 crores

  2. Rs. 9,300 crores

  3. Rs. 10,800 crores

  4. Rs. 12,300 crores


Correct Option: D

According to Keynes, investment depends on

  1. size of income and propensity to consume

  2. marginal efficiency of capital and size of income

  3. marginal efficiency of capital and rate of interest

  4. propensity to consume and rate of interest


Correct Option: C

The transaction demand for money is a function of

  1. rate of interest

  2. income

  3. profit

  4. expectations


Correct Option: B

Increase in real national income takes place when

  1. savings of the public increases

  2. prices of goods increase

  3. supply of money in the economy increases

  4. total production in the economy increases


Correct Option: D

If the value of marginal propensity to consume is 0·75, the value of investment multiplier would be

  1. 4

  2. 3

  3. 2

  4. 1


Correct Option: A

Which of the following is the most important source of financing the gross fiscal deficit of the Government of India?

  1. Market borrowings

  2. Loans from the State Government

  3. Loans from the financial institutes

  4. Loans from Provident Funds


Correct Option: A

Which one was the most important item of export/foreign exchange earnings in 2005-06?

  1. Engineering Goods

  2. Textiles

  3. Gems and Jewellery

  4. Agriculture and Allied products


Correct Option: A

Which among the following taxes has been the most elastic source of tax revenue in India?

  1. Excise duty

  2. Service tax

  3. Custom duty

  4. Corporation tax


Correct Option: D

The total receipts of the State Governments as per cent of G.D.P. in India currently lies in the range of

  1. between 6-10 per cent

  2. between 10-15 per cent

  3. between 15-20 per cent

  4. between 25-30 per cent


Correct Option: B

According to 2001 Census, which State has the highest density of population in India?

  1. Uttar Pradesh

  2. West Bengal

  3. Kerala

  4. Maharashtra


Correct Option: B

Sustainable Development means

  1. minimizing poverty

  2. maximizing current per capita income

  3. sustaining low budget deficits

  4. growth without sacrificing the needs of the future generation


Correct Option: D

The definition of Small Scale Industry in India is based on

  1. sales of a unit

  2. investment in machines and equipments

  3. market coverage

  4. export capacity


Correct Option: B

'Misery Index' represents

  1. sum of rate of inflation and rate of unemployment

  2. product of rate of inflation and rate of unemployment

  3. proportion of very poor to people living below the poverty line

  4. both the above (2) and (3)


Correct Option: B

Which Indian Five Year Plan ensured higher growth rate as compared with targeted growth rate?

  1. Fifth Plan

  2. Fourth Plan

  3. Second Plan

  4. Eighth Plan


Correct Option: D

Total utility is maximum at a point when marginal utility is

  1. positive

  2. negative

  3. positive but decreasing

  4. zero


Correct Option: D

Who among the following is the first to use the term 'Knife-edge' in the theory of economic growth?

  1. Rostow

  2. Solow

  3. Harrod

  4. Kaldor


Correct Option: C

In the Cobb-Douglas production function, the elasticity of substitution between factors is

  1. zero

  2. equal to one

  3. less than one

  4. greater than one


Correct Option: B

Who has said, “Development is the result of human efforts”?

  1. Adam Smith

  2. Harrod

  3. Lewis

  4. Schumpeter


Correct Option: A

Match List-I and List-II and select the correct answer using the codes given below the lists List-I (a) Amartya Sen (b) Hirschman (c) Rostow (d) G. Myrdal List-II

  1. Stages of Growth
  2. Unbalanced Growth
  3. Cumulative Circular Causation
  4. Choice of Technique
  1. (a)1 (b)2 (c)3 (d)4

  2. (a)4 (b)1 (c)3 (d)2

  3. (a)4 (b)2 (c)1 (d)3

  4. (a)3 (b)2 (c)4 (d)1


Correct Option: C
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