Economy UPSC Preliminary Question and Answer: Part 2 (2018-2015)

2018

1. Consider the following:

Areca nut
Barley
Coffee
Finger millet
Groundnut
Sesamum
Turmeric

The Cabinet Committee on Economic Affairs has announced the Minimum Support Price for which of the above?

(a) 1, 2, 3 and 7 only

(b) 2, 4, 5 and 6 only

(d) 1, 2, 3, 4, 5, 6 and 7

Answer:

(b) 2, 4, 5 and 6 only

2. With reference to the governance of public sector banking in India, consider the following statements:

Capital infusion into public sector banks by the Government of India has steadily increased in the last decade.
To put the public sector banks in order, the merger of associate banks with the parent State Bank of India has been affected.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

Answer:

(b) 2 only

3. Consider the following items:

Cereal grains hulled
Chicken eggs cooked
Fish processed and canned
Newspapers containing advertising material

Which of the above items is/are exempted under GST (Good and Services Tax)?

(a) 1 only

(b) 2 and 3 only

(d) 1, 2, 3 and 4

Answer:

(c) 1, 2 and 4 only

4. Consider the following countries:

Australia
Canada
China
India
Japan
USA

Which of the above are among the ‘free-trade partners’ of ASEAN?

(a) 1, 2, 4 and 5

(b) 3, 4, 5 and 6

(d) 2, 3, 4 and 6

Answer:

(c) 1, 3, 4 and 5

5. Which of the following is/are the aim/aims of “Digital India” Plan of the Government of India?

Formation of India’s own Internet companies like China did.
Establish a policy framework to encourage overseas multinational corporations that collect Big Data to build their large data centres within our national geographical boundaries.
Connect many of our villages to the Internet and bring Wi-Fi to many of our schools, public places and major tourist centres.

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 3 only

(d) 1, 2 and 3

Answer:

(b) 3 only

6. With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements:

It is the flagship scheme of the Ministry of Labour and Employment.
It, among other things will also impart training in soft skills, entrepreneurship, financial and digital literacy.
It aims to align the competencies of the unregulated workforce of the country to the National Skill Qualification Framework.

Which of the statements given above is/are correct?

(a) 1 and 3 only

(b) 2 only

(d) 1, 2, and 3

Answer:

(c) 2 and 3 only

7. The Partnership for Action on Green Economy (PAGE), a UN mechanism to assist countries transition towards greener and more inclusive economies, emerged at

(a) The Earth Summit on Sustainable Development 2002, Johannesburg.

(b) The United Nations Conference on Sustainable Development 2012, Rio de Janeiro.

(d) The World Sustainable Development Summit 2016, New Delhi.

Answer:

(b) The United Nations Conference on Sustainable Development 2012, Rio de Janeiro.

8. Which one of the following statements correctly describes the meaning of legal tender money?

(a) The money which is tendered in courts of law to defray the fee of legal cases

(b) The money which a creditor is under compulsion to accept in settlement of his claims

(d) The metallic money in circulation in a country

Answer:

(b) The money which a creditor is under compulsion to accept in settlement of his claims

9. If a commodity is provided free to the public by the Government, then

(a) the opportunity cost is zero.

(b) the opportunity cost is ignored.

(d) the opportunity cost is transferred from the consumers of the product to the Government.

Answer:

(c) the opportunity cost is transferred from the consumers of the product to the tax-paying public.

10. Increase in absolute and per capita real GNP do not connote a higher level of economic development, if

(a) industrial output fails to keep pace with agricultural output.

(b) agricultural output fails to keep pace with industrial output.

(d) imports grow faster than exports.

Answer:

(c) poverty and unemployment increase.

11. Consider the following statements:

Human capital formation as a concept is better explained in terms of a process which enables

Individuals of a country to accumulate more capital.
Increasing the knowledge, skill levels and capacities of the people of the country.
Accumulation of tangible wealth.
Accumulation of intangible wealth

Which of the statements given above is/are correct?

(a) 1 and 2

(b) 2 only

(d) 1, 3 and 4

Answer:

(c) 2 and 4

12. Despite being a high saving economy, capital formation may not result in significant increase in output due to

(a) weak administrative machinery

(b) illiteracy

(d) high capital-output ratio

Answer:

(d) high capital-output ratio

13. Consider the following statements:

The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities.
Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments.
Treasury bills offer are issued at a discount from the par value.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 3 only

(d) 1, 2 and 3

Answer:

(c) 2 and 3 only

14. Consider the following statements:

Capital Adequacy Ratio (CAR) is the amount that banks have to maintain in the form of their own funds to offset any loss that banks incur if the account-holders fail to repay dues.
CAR is decided by each individual bank.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

Answer:

(a) 1 only

15. Consider the following statements:

The Food Safety and Standards Act, 2006 replaced the Prevention of Food Adulteration Act, 1954.
The Food Safety and Standards Authority of India (FSSAI) is under the charge of Director General of Health Services in the Union Ministry of Health and Family Welfare.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

Answer:

(a) 1 only

16. With reference to the provisions made under the National Food Security Act, 2013, consider the following statements:

The families coming under the category of ‘below poverty line (BPL)’ only are eligible to receive subsidised food grains.
The eldest woman in a household, of age 18 years or above, shall be the head of the household for the purpose of issuance of a ration card.
Pregnant women and lactating mothers are entitled to a ‘take-home ration’ of 1600 calories per day during pregnancy and for six months thereafter.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 only

(d) 3 only

Answer:

(b) 2 only

17. With reference to digital payments, consider the following statements:

BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account.
While a chip-pin debit card has four factors of authentication, BHIM app has only two factors of authentication.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

Answer:

(a) 1 only

18. With reference to India’s decision to levy an equalization tax of 6% on online advertisement services offered by non-resident entities, which of the following statements is/are correct?

It is introduced as a part of the Income Tax Act.
Non-resident entities that offer advertisement services in India can claim a tax credit in their home country under the “Double Taxation Avoidance Agreements”.

Select the correct answer using the code given below:

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

Answer:

(d) Neither 1 nor 2

19. Consider the following statements:

The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, comprising 40% for the Central Government and 20% for the State Governments.
The Central Government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the State Governments.
As per the Constitution of India, it is mandatory for a State to take the Central Government’s consent for raising any loan if the former owes any outstanding liabilities to the latter.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 and 3 only

(d) 1, 2 and 3

Answer:

(c) 1 and 3 only

20. Consider the following statements:

The quantity of imported edible oils is more than the domestic production of edible oils in the last five years.
The Government does not impose any customs duty on all the imported edible oils as a special case.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

Answer:

(a) 1 only

21. Which one of the following links all the ATMs in India?

(a) Indian Banks’ Association

(b) National Securities Depository Limited

(d) Reserve Bank of India

Answer:

(c) National Payments Corporation of India

22. Consider the following statements:

Aadhaar card can be used as a proof of citizenship or domicile.
Once issued, Aadhaar number cannot be deactivated or omitted by the Issuing Authority.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither1 nor 2

Answer:

(d) Neither1 nor 2

2017

1. What is/are the advantage/advantages of implementing the ‘National Agriculture Market’ scheme?

It is a pan-India electronic trading portal for agricultural commodities.
It provides the farmers access to nationwide market, with prices commensurate with the quality of their produce.

Select the correct answer using the code given below:

(a) 1 only

(b) 2 only

(d) Neither1 nor 2

Answer:

(c) Both 1 and 2

2. Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)?

It decides the RBI’s benchmark interest rates,
It is a 12-member body including the Governor of RBI and is reconstituted every year.
It functions under the chairmanship of the Union Finance Minister.

Select the correct answer using the code given below:

(a) 1 only

(b) 1 and 2 only

(d) 2 and 3 only

Answer:

(a) 1 only

3. Consider the following statements:

National Payments Corporation of India (NPCI) helps in promoting the financial inclusion in the country
NPCI has launched RuPay, a card payment scheme.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither1 nor 2

Answer:

(c) Both 1 and 2

4. What is/are the most likely advantages of implementing ‘Goods and Services Tax (GST)’?

It will replace multiple taxes collected by multiple authorities and will thus create a single market in India.
It will drastically reduce the ‘Current Account Deficit’ of India and will enable it to increase its foreign exchange reserves.
It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future.

Select the correct answer using the code given below:

(a) 1 only

(b) 2 and 3 only

(d) 1, 2 and 3

Answer:

(a) 1 only

5. Consider the following statements:

Tax revenue as a percent of GDP of India has steadily increased in the last decade.
Fiscal deficit as a percent of GDP of India has steadily increased in the last decade.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither I nor 2

Answer:

(d) Neither I nor 2

6. Consider the following statements:

The Standard Mark of Bureau of Indian Standards (BIS) is mandatory for automotive tyres and tubes.
AGMARK is a quality Certification Mark issued by the Food and Agriculture Organisation (FAO).

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

Answer:

(a) 1 only

7. Which of the following has/have occurred in India after its liberalization of economic policies in 1991?

Share of agriculture in GDP increased enormously.
Share of India’s exports in world trade increased.
FDI inflows increased. 4. India’s foreign exchange reserves increased enormously.

Select the correct answer using the codes given below:

(a) 1 and 4 only

(b) 2, 3 and 4 only

(d) 1, 2, 3

Answer:

(b) 2, 3 and 4 only

8. Which of the following statements best describes the term ‘Scheme for Sustainable Structuring of Stressed Assets (S4A)’, recently seen in the news?

(a) It is a procedure for considering ecological costs of developmental schemes formulated by the Government.

(b) It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.

(d) It is an important provision in The Insolvency and Bankruptcy Code’ recently implemented by the Government.

Answer:

(b) It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.

9. Consider the following statements:

India has ratified the Trade Facilitation Agreement (TFA) of WTO.
TFA is a part of WTO’s Bali Ministerial Package of 2013.
TFA came into force in January 2016.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 1 and 3 only

(d) 1, 2 and 3

Answer:

(a) 1 and 2 only

10. With reference to the ‘National Intellectual Property Rights Policy’, consider the following statements:

It reiterates India’s commitment to the Doha Development Agenda and the TRIPS Agreement.
Department of Industrial Policy and Promotion is the nodal agency for regulating intellectual property rights in India.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

Answer:

(c) Both 1 and 2

11. Which of the following is a most likely consequence of implementing the Unified Payments Interface (UPI)?

(a) Mobile wallets will not be necessary for online payments.

(b) Digital currency will totally replace the physical currency in about two decades.

(d) Direct transfer of subsidies to poor people will become very effective.

Answer:

(a) Mobile wallets will not be necessary for online payments.

12. What is the purpose of setting up of Small Finance Banks (SFBs) in India?

To supply credit to small business units
To supply credit to small and marginal farmers
To encourage young entrepreneurs to set up business particularly in rural areas.

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2 and 3 only

(d) 1, 2 and 3

Answer:

(a) 1 and 2 only

13. With reference to the ‘Prohibition of Benami Property Transactions Act, 1988 (PBPT Act), consider the following statements:

A property transaction is not treated as a benami transaction if the owner of the property is not aware of the transaction.
Properties held benami are liable for confiscation by the Government.
The Act provides for three authorities for investigations but does not provide for any appellate mechanism.

Which of the statements .given above is/are correct?

(a) 1only

(b) 2 only

(d) 2 and 3 only

Answer:

(b) 2 only

14. ‘Broad-based Trade and Investment Agreement (BTIA)’ is sometimes seen in the news in the context of negotiations held between India and

(a) European Union

(b) Gulf Cooperation Council

(d) Shanghai Cooperation Organization

Answer:

(a) European Union

15. The term ‘Digital Single Market Strategy’ seen in the news refers to

(a) ASEAN

(b) BRICS

(d) G20

Answer:

(c) EU

16. Consider the following statements:

India has ratified the Trade Facilitation Agreement (TFA) of WTO.
TFA is a part of WTO’s Bali Ministerial Package of 2013.
TFA came into force in January 2016.

Which of the statements given above is/are correct?

(a) 1 and 2only

(b) 1 and 3 only

(d) 1, 2 and 3

Answer:

(a) 1 and 2 only

17. Consider the following in respect of ‘National Career Service’:

National Career Service is an initiative of the Department of Personnel and Training, Government of India.
National Career Service has been launched in a Mission Mode to improve the employment opportunities to uneducated youth of the country.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

Answer:

(d) Neither 1 nor 2

18. What is the aim of the programme ‘Unnat Bharat Abhiyan’?

(a) Achieving 100% literacy by promoting collaboration between voluntary organizations and government’s education system and local communities.

(b) Connecting institutions of higher education with local communities to address development challenges through appropriate technologies.

(d) Developing human capital by allocating special funds for health care and education of rural and urban poor, and organizing skill development programmes and vocational training for them.

Answer:

(b) Connecting institutions of higher education with local communities to address development challenges through appropriate technologies.

19. The Global Infrastructure Facility is a/an

(a) ASEAN initiative to upgrade infrastructure in Asia and financed by credit from the Asian Development Bank.

(b) World Bank collaboration that facilitates the preparation and structuring of complex infrastructure Public-Private Partnerships (PPPs) to enable mobilization of private sector and institutional investor capital.

(c) Collaboration among the major banks of the world working with the OECD and focused on expanding the set of infrastructure projects that have the potential to mobilize private investment.

(d) UNCTAD funded initiative that seeks to finance and facilitate infrastructure development in the world.

Answer:

20. With reference to ‘National Investment and Infrastructure Fund’, which of the following statements is/are correct?

It is an organ of NITI Aayog.
2. It has a corpus of Rs. 4, 00,000 crore at present.

Select the correct answer using the code given below:

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

Answer:

(d) Neither 1 nor 2

21. Which of the following are the objectives of ‘National Nutrition Mission’?

To create awareness relating to malnutrition among pregnant women and lactating mothers.
To reduce the incidence of anemia among young children, adolescent girls and women.
To promote the consumption of millets, coarse cereals and unpolished rice.
To promote the consumption of poultry eggs.

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 1, 2 and 3 only

(d) 3 and 4 only

Answer:

(a) 1 and 2 only

22. What is the purpose of Vidyanjali Yojana’?

To enable the famous foreign educational institutions to open their campuses in India.
To increase the quality of education provided in government schools by taking help from the private sector and the community.
To encourage voluntary monetary contributions from private individuals and organizations so as to improve the infrastructure facilities for primary and secondary schools.

Select the correct answer using the code given below:

(a) 2 only

(b) 3 only

(d) 2 and 3 only

Answer:

(a) 2 only

2016

1. With reference to `IFC Masala Bonds’, sometimes seen in the news, which of the statements given below is/are correct?

The International Finance Corporation, which offers these bonds, is an arm of the World Bank.
They are the rupee-denominated bonds and are a source of debt financing for the public and private sector.

Select the correct answer using the code given below

(a) 1 only

(b) 2 only

(d) Neither1 nor 2

Answer:

(c) Both 1 and 2

2. In the context of which of the following do you sometimes find the terms ‘amber box, blue box and green box’ in the news?

(a) WTO affairs

(b) SAARC affairs

(d) India-EU negotiations on FTA

Answer:

(a) WTO affairs

3. Recently, which one of the following currencies has been proposed to be added to the basket of IMF’s SDR?

(a) Rouble

(b) Rand

(d) Renminbi

Answer:

(d) Renminbi

4. India’s ranking in the ‘Ease of Doing Business Index’ is sometimes seen in the news. Which of the following has declared that ranking?

(a) Organization for Economic Cooperation and Development (OECD)

(b) World Economic Forum

(d) World Trade Organization (WTO)

Answer:

(c) World Bank

5. Consider the following statements:

New Development Bank has been set up by APEC.
The headquarters of New Development Bank is in Shanghai.

Which of the statements given above is/ are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

Answer:

(b) 2 only

6. With reference to the International Monetary and Financial Committee (IMFC), consider the following statements:

IMFC discusses matters of concern affecting the global economy, and advises the International Monetary Fund (IMF) on the direction of its work.
The World Bank participates as observer in MFC’s meetings,

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither I nor 2

Answer:

(c) Both 1 and 2

7. ‘Global Financial Stability Report’ is prepared by the

(a) European Central Bank

(b) International Monetary Fund

(d) Organization for Economic Cooperation and Development

Answer:

(b) International Monetary Fund

8. Which of the following best describes the term ‘import cover’, sometimes seen in the news?

(a) It is the ratio of value of imports to the Gross Domestic Product of a country

(b) It is the total value of imports of a country in a year

(d) It is the number of months of imports that could be paid for by a country’s international reserves

Answer:

(d) It is the number of months of imports that could be paid for by a country’s international reserves

9. With reference to ‘Financial Stability and Development Council’, consider the following statements:

It is an organ of NITI Aayog.
It is headed by the Union Finance Minister
It monitors macro-prudential supervision of the economy.

Which of the statements given above is/ are correct?

(a) 1 and 2 only

(b) 3 only

(d) 1, 2 and 3

Answer:

(c) 2 and 3 only

10. ‘The establishment of ‘Payment Banks’ is being allowed in India to promote financial inclusion. Which of the following statements is/are correct in this context?

Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks.
Payment Banks can issue both credit cards and debit cards.
Payment Banks cannot undertake lending activities.

Select the correct answer using the code given below

(a) 1 and 2 only

(b) 1 and 3 only

(d) 1, 2 and 3

Answer:

(b) 1 and 3 only

11. What is/are the purpose/purposes of the ‘Marginal Cost of Funds based Lending Rate (MCLR)’ announced by RBI?

These guidelines help improve the transparency in the methodology followed by banks for determining the interest rates on advances.
These guidelines help ensure availability of bank credit at interest rates which are fair to the borrowers as well as the banks.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 only

(d) Neither I nor 2

Answer:

(c) Both 1 and 2

12. What is/are the purpose/purposes of Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme”?

To bring the idle gold lying with Indian households into the economy
To promote FDI in the gold and jewellery sector
To reduce India’s dependence on gold imports

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(d) 1, 2 and 3

Answer:

(c) 1 and 3 only

13. Which of the following is/are included in the capital budget of the Government of India?

Expenditure on acquisition of assets like roads, buildings, machinery, etc,
Loans received from foreign governments
Loans and advances granted to the States and Union Territories

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(d) 1, 2 and 3

Answer:

(d) 1, 2 and 3

14. Which one of the following is a purpose of ‘UDAY’, a scheme of the Government?

(a) Providing technical and financial assistance to start-up entre-preneurs in the field of renewable sources of energy

(b) Providing electricity to every household iv the country by 2018

(c) Replacing the coal-based power plants with natural gas, nuclear, solar, wind and tidal power plants over a period of time.

(d) Providing for financial turnaround and revival of power distribution companies

Answer:

(d) Providing for financial turnaround and revival of power distribution companies

15. With reference to ‘Stand Up India Scheme’, which of the following statements is/are correct?

Its purpose is to promote entrepreneurship among SC/ST and women entrepreneurs.
It provides for refinance through SIDBI,

Select the correct answer using the code given below.

(a) 1 only

(b) 2 only

(d) Neither1 nor 2

Answer:

(c) Both 1 and 2

16. ‘SWAYAM’, an initiative of the Government of India, aims at

(a) promoting the Self Help Groups in rural areas

(b) providing financial and technical assistance to young start-up entrepreneurs

(d) providing affordable and quality education to the citizens for free

Answer:

(d) providing affordable and quality education to the citizens for free

17. Pradhan Mantri MUDRA Yojana is aimed at

(a) bringing the small entrepreneurs into formal financial system

(b) providing loans to poor farmers for cultivating particular crops

(d) funding the voluntary organizations involved in the promotion of skill development and employment generation

Answer:

(a) bringing the small entrepreneurs into formal financial system

18. Regarding ‘Atal Pension Yojana’, which of the following statements is/are correct?

It is a minimum guaranteed pension scheme mainly targeted at unorganized sector workers.
Only one member of a family can join the scheme.
Same amount of pension is guaranteed for the spouse for life after subscriber’s death.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(d) 1, 2 and 3

Answer:

(c) 1 and 3 only

19. The term ‘Base Erosion and Profit Shifting’ is sometimes seen in the news in the context of

(a) mining operation by multinational companies in resource-rich but backward areas

(b) curbing of the tax evasion by multinational companies

(d) lack of consideration of environmental planning and developmental costs in the implementation of projects

Answer:

(b) curbing of the tax evasion by multinational companies

20. There has been a persistent deficit budget year after year. Which action/actions of the following can be taken by the Government to reduce the deficit?

Reducing revenue expenditure
Introducing new welfare schemes
Rationalizing subsidies
Reducing import duty

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(d) 1, 2, 3 and 4

Answer:

(c) 1 and 3 only

21. With reference to ‘Pradhan Mantri Fasal Bima Yojana’, consider the following statements:

Under this scheme, farmers will have to pay a uniform premium of two percent for any crop they cultivate in any season of the year.
This scheme covers post-harvest losses arising out of cyclones and unseasonal rains.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

Answer:

(b) 2 only

22. What is/are the purpose/purposes of ‘District Mineral Foundations’ in India?

Promoting mineral exploration activities in mineral-rich districts
Protecting the interests of the persons affected by mining operations
Authorizing State Governments to issue licences for mineral exploration

Select the correct answer using the code given below.

(a) 1 and 2 only

(b) 2 only

(d) 1, 2 and 3

Answer:

(b) 2 only

23. Which of the following is/are the indicator/indicators used by IFPRI to compute the Global Hunger Index Report?

Undernourishment
Child stunting
Child mortality

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(d) 1 and 3 only

Answer:

(c) 1, 2 and 3

2015

1. The substitution of steel for wooden ploughs in agricultural production is an example of

(a) labour-augmenting technological progress

(b) capital-augmenting technological progress

(d) None of the above

Answer:

(b) capital-augmenting technological progress

2. Which one of the following best describes the main objective of Seed Village Concept?

(a) Encouraging the farmers to use their own farm seeds and discouraging them to buy the seeds from others

(b) Involving the farmers for training in quality seed production and thereby to make available quality seeds to others at appropriate time and affordable cost

(d) Identifying the entrepreneurs in villages and providing them technology and finance to set up seed companies

Answer:

(b) Involving the farmers for training in quality seed production and thereby to make available quality seeds to others at appropriate time and affordable cost

3. The Fair and Remunerative Price (FRP) of sugarcane is approved by the

(a) Cabinet Committee on Economic Affairs

(b) Commission for Agricultural Costs and Prices

(d) Agricultural Produce Marketing Committee

Answer:

(a) Cabinet Committee on Economic Affairs

4. In the ‘Index of Eight Core Industries’, which one of the following is given the highest weight?

(a) Coal production

(b) Electricity generation

(d) Steel production

Answer:

(b) Electricity generation

5. Which of the following brings out the ‘Consumer Price Index Number for Industrial Workers?

(a) The Reserve Bank of India

(b) The Department of Economic Affairs

(d) The Department of Personnel and Training

Answer:

(c) The Labour Bureau

6. Which one of the following issues the ‘Global Economic Prospects’ report periodically?

(a) The Asian Development Bank

(b) The European Bank for Reconstruction and Development

(d) The World Bank

Answer:

(d) The World Bank

7. The terms ‘Agreement on Agriculture’, ‘Agreement on the Application of Sanitary and Phyto-sanitary Measures’ and ‘Peace Clause’ appear in the news frequently in the context of affairs of the

(a) Food and Agriculture Organization

(b) United Nations Framework Conference on Climate Change

(d) United Nations Environment Programme

Answer:

(c) World Trade Organization

8. ‘Basel III Accord’ or simply ‘Basel III’, often seen in the news, seeks to

(a) develop national strategies for the conservation and sustainable use of biological diversity

(b) improve banking sector’s ability to deal with financial and econo-mic stress and improve risk management

(d) transfer technology from developed countries to poor countries to enable them to replace the use of chlorofluorocarbons in refrigeration with harmless chemicals

Answer:

(b) improve banking sector’s ability to deal with financial and econo-mic stress and improve risk management

9. Convertibility of rupee implies:

(a) being able to convert rupee notes into gold

(b) allowing the value of rupee to be fixed by market forces

(d) developing an international market for currencies in India

Answer:

(c) freely permitting the conversion of rupee to other currencies and vice versa

10. There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit?

Reducing revenue expenditure
Introducing new welfare schemes
Rationalizing subsidies
Expanding industries

Select the correct answer using the code given below:

(a) 1 and 3 only

(b) 2 and 3 only

(d) 1, 2, 3 and 4

Answer:

(a) 1 and 3 only

11. With reference to inflation in India, which of the following statements is correct?

(a) Controlling the inflation in India is the responsibility of the Government of India only

(b) The Reserve Bank of India has no role in controlling the inflation

(d) Increased money circulation helps in controlling the inflation

Answer:

(c) Decreased money circulation helps in controlling the inflation

12. The problem of international liquidity is related to the non-availability of

(a) goods and services

(b) gold and silver

(d) exportable surplus

Answer:

(c) dollars and other hard currencies

13. With reference to the Fourteenth Finance Commission, which of the following statements is/are correct?

It has increased the share of States in the central divisible pool from 32 percent to 42 percent.
It has made recommendations concerning sector-specific grants.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

Answer:

(a) 1 only

14. With reference to Indian economy, consider the following statements:

The rate of growth of Real Gross Domestic Product has steadily increased in the last decade.
The Gross Domestic Product at market prices (in rupees) has steadily increased in the last decade.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither1 nor 2

Answer:

(b) 2 only

15. A decrease in tax to GDP ratio of a country indicates which of the following?

Slowing economic growth rate
Less equitable distribution of national income

Select the correct answer using the code given below.

(a) 1 only

(b) 2 only

(d) Neither1 nor 2

Answer:

(a) 1 only

16. With reference to ‘Pradhan Mantri Fasal Bima Yojana’, consider the following statements:

Under this scheme, farmers will have to pay a uniform premium of two percent for any crop they cultivate in any season of the year.
This scheme covers post-harvest losses arising out of cyclones and unseasonal rains.

Which of the statements given above is/ are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

Answer:

(b) 2 only

17. Pradhan Mantri Jan-Dhan Yojana’ has been launched for

(a) providing housing loan to poor people at cheaper interest rates

(b) promoting women’s Self-Help Groups in backward areas

(d) providing financial help to the marginalized communities

Answer:

(c) promoting financial inclusion in the country

18. Consider the following statements:

The Accelerated Irrigation Benefits Programme was launched during 1996-97 to provide loan assistance to poor farmers.
The Command Area Development Programme was launched in 1974-75 for the development of water-use efficiency,

Which of the statements given above is/ are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

Answer:

(b) 2 only

19. In India, markets in agricultural products are regulated under the

(a) Essential Commodities Act, 1955

(b) Agricultural Produce Market Committee Act enacted by States

(d) Food Products Order, 1956 and Meat and Food Products Order, 1973

Answer:

(b) Agricultural Produce Market Committee Act enacted by States

20. The Government of India has established NITI Aayog to replace the

(a) Human Rights Commission

(b) Finance Commission

(d) Planning Commission

Answer:

(d) Planning Commission

21. When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points which of the following is likely to happen?

(a) India’s GDP growth rate increases drastically

(b) Foreign Institutional Investors may bring more capital into our country

(d) It may drastically reduce the liquidity to the banking system

Answer:

(c) Scheduled Commercial Banks may cut their lending rates

22. With reference to Indian economy, consider the following:

Bank rate
Open market operations
Public debt
Public Revenue

Which of the above is/are component/components of Monetary Policy?

(a) 1 only

(b) 2, 3 and 4

(d) 1, 3 and 4

Answer:

(c) 1 and 2

23. With reference to inflation in India, which of the following statements is correct?

(a) Controlling the inflation in India is the responsibility of the Government of India only

(b) The Reserve Bank of India has no role in controlling the inflation

(d) Increased money circulation helps in controlling the inflation

Answer:

(c) Decreased money circulation helps in controlling the inflation

24. With reference to the Indian Renewable Energy Development Agency Limited (IREDA), which of the following statements is/are correct?

It is a Public Limited Government Company.
It is a Non-Banking Financial Company.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

Answer:

(c) Both 1 and 2

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Economy Preliminary Previous year Questions – UPSC Prelims (2011-2023) Part 2

Economy UPSC Preliminary Question and Answer: Part 2 (2018-2015)

UPSC Economy Preliminary Question with Answers (2023-2019) Part 1

UPSC Economy Preliminary Question with Answers (2018-2015) Part 2

UPSC Economy Preliminary Question with Answers (2014-2011) Part 3

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