Competitive Exams: Economics MCQs (Practice-Test 105 of 122)

    • Assertion (A): It is difficult to replicate the development process of the developed countries in the less developed countries.
    • Reason (R): Presently less developed countries are to start from much lower economic levels than was true for the presently developed countries.
    1. Both A and R are true and R is the correct explanation

    2. Both A and R are true but R is not a correct explanation

    3. A is true but R is false

    4. A is false R is true

    • Assertion (A): There has been a steady decline in relative poverty in India.
    • Reason (R): New economic reforms (1991) are anti-poverty oriented.
    1. Both A and R are true and R is the correct explanation

    2. Both A and R are true but R is not a correct explanation

    3. A is true but R is false

    4. A is false R is true

    • Assertion (A): Indian development planning is oriented towards growth with social justice.
    • Reason (R): India inherited a colonial economy.
    1. Both A and R are true and R is the correct explanation

    2. Both A and R are true but R is not a correct explanation

    3. A is true but R is false

    4. A is false R is true

    • Assertion (A): According to national Sample Survey, the proportion of poor is higher in rural India than in urban.
    • Reason (R): After independence, the growth rate of industry has been lower than that of agriculture.
    1. Both A and R are true and R is the correct explanation

    2. Both A and R are true but R is not a correct explanation

    3. A is true but R is false

    4. A is false R is true

    • Assertion (A): From the point of view of technique of planning, there was little difference between India's 2nd and 3rd plan.
    • Reason (R): Despite sticking to Mahalanobis model both followed a balanced development approach.
    1. Both A and R are true and R is the correct explanation

    2. Both A and R are true but R is not a correct explanation

    3. A is true but R is false

    4. A is false R is true

    • Assertion (A): One of the impediments in the industrialisation of backward areas in the lack of adequate infrastructural facilities.
    • Reason (R): The growth centre approach announced in 1988 is government of India's answer to the problem of poor industrialisation in backward areas.
    1. Both A and R are true and R is the correct explanation

    2. Both A and R are true but R is not a correct explanation

    3. A is true but R is false

    4. A is false R is true

    • Assertion (A): Guaranteeing right to work is a full employment policy.
    • Reason (R): This is a necessary condition for solving unemployment in India.
    1. Both A and R are true and R is the correct explanation

    2. Both A and R are true but R is not a correct explanation

    3. A is true but R is false

    4. A is false R is true

    • Assertion (A): In November 1990, the government tried to curb imports.
    • Reason (R): This was done through credit policy.
    1. Both A and R are true and R is the correct explanation

    2. Both A and R are true but R is not a correct explanation

    3. A is true but R is false

    4. A is false R is true

    • Assertion (A): 1991 − 92 budget attempted to restore international confidence in Indian economy.
    • Reason (R): In 1991 economic reforms there was a drive towards self-reliance.
    1. Both A and R are true and R is the correct explanation

    2. Both A and R are true but R is not a correct explanation

    3. A is true but R is false

    4. A is false R is true

    • Assertion (A): The GNP is the value of all goods and services produced annually in the nation.
    • Reason (R): The most comprehensive measure of nation output is the GNP.
    1. Both A and R are true and R is the correct explanation

    2. Both A and R are true but R is not a correct explanation

    3. A is true but R is false

    4. A is false R is true

  1. national Income denotes

    1. revenue of the Government in one year

    2. revenue of nationalised enterprises and banks.

    3. budgetary surplus of the government

    4. sum total of all factor earnings in the country

  2. In calculating a country's NNP at factor costs, which on of the following elements is not included?

    1. Rent, interest, wages and profits

    2. Supplements to wages paid by employers under social security arrangements.

    3. Factor payments from abroad

    4. Indirect taxes.

  3. The size of the gap between actual and potential GNP is a measure of

    1. inflationary gap

    2. deflationary gap

    3. savings-investment gap

    4. natural rate of unemployment

  4. In Keynesian economics, given the total investment expenditure, an increase in the propensity to save will lead to a

    1. fall in the quantity of saving

    2. fall in income

    3. rise in interest rate

    4. rise in income.

  5. The intermediate goods are exclude from GNP because

    1. they create the problem of duplication

    2. their value cannot e assessed

    3. it is difficult to define such goods

    4. such goods do not directly enter into consumption