NET, IAS, State-SET (KSET, WBSET, MPSET, etc.), GATE, CUET, Olympiads etc. Practice Questions for Economics Part 8
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With reference to National Waterways consider the following statements:
1. Though canals are part of National Waterways at present no canal in India is navigable
2.In coastal areas fluctuation in salinity may affect the navigation
3.Inland waterways are more fuel efficient cost effective and environment friendly mode of transport than road or railways
Which of the statements mentioned above is⟋are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1,2 and 3
(d) None
Answer: B
How does Shadow Banking differ from commercial banking?
1. While commercial banks are tightly regulated shadow banking regulation lacks transparency
2. While commercial banks can create money being depository institutions shadow banking cannot create money
3. While liabilies of commercial banks are insured shadow banking liabilities are not insured
4. While commercial banks have access to central bank liquidity in the times of distress, shadow banking does not have such recourse
Select the correct answer using the code given below
(a) 1 only
(b) 1 and 2 only
(c) 2,3 and 4 only
(d) 1,2, 3 and 4
Answer: D
Which of the statements given below is⟋are correct regarding “Brar Market” ?
1. It is a market in decline
2.Investors rush to buy stocks instead of selling
3. Unemployment levels may rises
Select the correct answer using the code given below
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1,2 and 3
Answer: C
Consider the following pairs
Type of Example
Unemployment
Structural: An unemployed
Unemployment
Worker from
Automobile sector
Because people are
Buying fewer cars
Cyclical: Unempyment due
Unemployment to slowdown in
Economy
Frictional: Adperson leaving
Unemployment his job to prepare
For civil services
Which of the pairs given above is⟋are correctly matched?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 3 only
(d) 1,2 and 3
Answer: D
With reference to tariffs, consider the following statements:
1. The domestic consumers benefit from the imposition of tariffs
2. The domestic demand for the good increases
Which of the statements given above is⟋are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: D
Consider the following factors:
1.Increase in government expenditure
2. Rising population and household consumption
3. Buying and selling of real estate in urban areas
4. Fluctuations in output and supply
5.Increase in administered prices
Which of the above is⟋are attributed to the demand-pull factors of inflation?
(a) 1,2 and 3 only
(b) 1,3 and 5 only
(c) 2,3 and 4 only
(d) 4 and 5 only
Answer: A
With reference to Special Drawing Rights (SDRs) consider the following statements:
1. The SDR is an international reserve currency created by the IMF to supplement foreign exchange reserves of its member countries.
2. A member country cannot hold SDRs above the allocations made in proportion to its quota in the IMF
Which of the statements given above is⟋are correct?
(a) 1 only
2 only c both 1 and 2
(d) Neither 1 nor 2
Answer: D
High powered money is:
(a) That money which is issued by the authority of the government
(b) That money, whose money value exceeds commodity value of money
(c) notes and coins held by the people as well as cash reserves of the commercial banks
(d) that money which is accepted as a medium of exchange because of the trust between the payer and the payee
Answer: C
Consider the following statements:
1. Nominal Gross Domestic Product (GDP) reflects the changes in both prices and quantities of the goods and services produced in an economy
2. Real GDP reflects only the changes in the quantities of the goods and services produced in an economy
3. GDP deflator reflects only the changes in prices of the goods and services produced in an economy
Which of the statements given above is⟋are correct?
(a) 1 and 2 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1,2 and 3
Answer: D
GDP is defined as the output of economic activities carried out within the economic boundaries of a
Country which of the following constitutes the economic territory of a country with respect to GDP calculation?
1. Fishing vessels oil and natural gas rigs operated by the residents of a country in the international waters
2. Embassies consulates and military establishment of the country located abroad
Ships and aircraft owned by residents of the country operating between two different countries
Select the correct answer using the code given below
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1,2 and 3
Answer: D