SECTION-4

Economics Multiple Choice Questions

 
Q31. Which one of the following statements is an appropriate description of deflation?
[UPSC (Pre) 2010]

(A) It is a sudden fall in the value of a currency against other currencies
(B) It is persistent recession in both the financial and real sectors of economy
(C) It is a persistent fall in the general price level of goods and services
(D) It is a fall in the rate of inflation over a period of time

Ans:(C) It is a persistent fall in the general price level of goods and services

 
Q32. The base year for All-India Wholesale Price Index (WPI) has  been changed by the Government of India from 2004-05 to     [BPSC (Pre) 2018]

(A) 2010-11
(B) 2011-12
(C) 2012-13
(D) 2013-14

Ans:(B) 2011-12

 

Q33. Which of the following fixed the four percent inflation target in India with tolerance level of +/–2 percent for the period 2016 to 2021?     [RAS/RTS (Pre) 2018]

(A) Reserve Bank of India
(B) Government of India
(C) NITI Aayog
(D) Fourteenth Finance Commission

Ans:(B) Government of India

 

Q34. Producer Price Index measures       [UP RO (Pre) 2018]

(A) the average change in the prices of produced goods and services
(B) the marginal change in the prices of produced goods and  services
(C) the total change in the prices of produced goods and services
(D) None of the above

Ans:(A) the average change in the prices of produced goods and services

 

Q35. Increase in absolute and per capita real GNP do not connote a higher level of economic development, if     [UPSC (Pre) 2018]

(A) industrial output fails to keep pace with agricultural output
(B) agricultural output fails to keep pace with industrial output
(C) poverty and unemployment increase
(D) imports grow faster than exports

Ans:(C) poverty and unemployment increase

 

Q36. Which of the following comes under non-plan expenditure?
1. Subsidies
2. Interest Payments
3. Defence expenditure
4. Maintenance expenditure for the infrastructure created in the previous plans
Choose the correct answer using the codes given below.   [UPSC (Pre) 1995, 1997]

(A) 1 and 2
(B) 1 and 3
(C) 2 and 4
(D) 1, 2, 3 and 4

Ans:(D) 1, 2, 3 and 4

 

Q37. Which of the following are among the non-plan expenditures of the Government of India? 
1. Defence expenditure
2. Subsidies
3. All expenditure linked with the previous plan periods
4. Interest payment
[UPSC (Pre) 1995]

(A) 1 and 2
(B) 1 and 3
(C) 2 and 4
(D) 1, 2, 3 and 4

Ans: (D) 1, 2, 3 and 4

 

Q38. Economic Survey in India is published officially, every year by the
[UPSC (Pre) 1998]

(A) Reserve Bank of India
(B) Planning Commission of India
(C) Ministry of Finance, Government of India
(D) Ministry of Industries, Government of India

Ans:(C) Ministry of Finance, Government of India

 

Q39. If interest payment is added to primary deficit, it is equivalent to
[UPPCS (Pre) 2010]

(A) Budget deficit
(B) Fiscal deficit
(C) Deficit financing
(D) Revenue deficit

Ans:(B) Fiscal deficit

 

Q40. ….. is the difference between total receipts and total expenditure.
[HCS (Pre) 2014]

(A) Capital deficit
(B) Budget deficit
(C) Fiscal deficit
(D) Revenue deficit

Ans:(B) Budget deficit

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Read More Sections of Indian Economy Objective Questions

Each section contains maximum 80 Questions. To practice more questions visit other sections.
 

 Indian Economy Objective Questions – Section-1

 

 Indian Economy Objective Questions – Section-2

 

 Indian Economy Objective Questions – Section-3

 

 Indian Economy Objective Questions – Section-4

 

 Indian Economy Objective Questions – Section-5

 

 Indian Economy Objective Questions – Section-6

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