Competitive Exams: Economics MCQs (Practice-Test 36 of 122)

  1. Consider the following statements: Regional neural banks in India

    1. are required to assist the wreaker's sections'are to help the small and marginal farmers only

    2. Have free access to liberal financial assistance from NABARD

    3. have free access to liberal financial assistance from NABARD

    4. have a limited area of operation

    Of these statements

    1. 1, 3 and 4 are correct

    2. 2 alone is correct

    3. 2 and 3 are correct

    4. 1 and 4 are correct

  2. Which of the following pairs are correctly matched?

      • Treasury Bills
      • RBI
      • Interest Rate
      • Discount and finance House of India
      • Call money a rate
      • Commercial banks
      • Prudential norms
      • RIB

    Select the correct answer using the codes given below:

    Codes:

    1. 1, 2, 3 and 4

    2. 2 and 4

    3. 1, 2 and 3

    4. 1, 3 and 4

  3. it is generally believed that a rise in the tax rate would normally lead to a rise in the revenue. But there is also a view the reduced rates on income tax would lead to a significant rise in income tax revenue. This later view has been attributed to

    1. Arthur Laffer

    2. Robert Lucas

    3. Heerbert Simon

    4. J B Say

  4. After allowing for states share of taxation which one of the following tax revenues brings in the largest amount of revenue to the Central Government?

    1. Corporation tax

    2. Income tax

    3. custom duties

    4. Union excise duties

  5. match List I with List II and select the correct answer using the codes given below the lists:

    List-I List-II
    1. Service tax

    2. Stamp duty

    3. Property tax

    4. Sales tax

    1. Central government

    2. State government

    3. both

    4. none

    • A
    • B
    • C
    • D
      • 1
      • 2
      • 2
      • 3
      • 1
      • 2
      • 3
      • 2
      • 1
      • 1
      • 2
      • 3
      • 3
      • 1
      • 1
      • 2
  6. Short-term measure focused under the new economy policy is

    1. correcting the disequilibrium in foreign exchange market

    2. reforms in financial and capital market

    3. Trade and industrial reforms

    4. Technological up-gradation of production facilities in different fields

  7. The tenth finance Commission has recommended that the states share of total income tax collection may be kept at

    1. 755

    2. 77.5%

    3. 80%

    4. 85%

  8. As per the recommendations of the finance Commission, besides income tax, the net proceeds of which of the following tax (ex) is/are to be shared between the Centre and the states?

    1. Additional duties of excise

    2. Wealth tax on agricultural properties

    3. Union Excise Duties

    Select the correct answer using the codes given below:

    Codes:

    1. 1, 2 and 3

    2. 3 alone

    3. 1 and 2

    4. 2 and 3

  9. Population of India for different years is set out in the following table:

    Year

    Year 1951

    Year 1961

    Year 1971

    Year 1981

    Year 1991

    Population (in crores)

    36.1

    43.9

    54.8

    68.5

    84.6

    Which of the following inference (s) can be drawn from above data?

    1. The trend confirms the Malthusian theory of above data?

    2. There has been a population explosion in India in 1991.

    3. There has been a fall in the population growth rate in 1981 − 91.

    Select the correct answer using the codes given below:

    Codes:

    1. 1, 2 and 3

    2. 1 and 3

    3. 1 and 2

    4. 3 alone

    • Assertion (A): Bihar is an economically backward state even though has vast natural resources.
    • Reason (R): As per the 1991 census, the rate of growth of population in Bihar is much higher than the rate of growth of population of India as a whole.
    1. Both A and R are true and R is the correct explanation of A

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

    3. a is true but r is false

    4. A is false but R is true

    • Assertion (A): Removal of poverty remains a central concern of planning in India.
    • Reason (R): Development is not just about factories, dams and roads. It is basically about people.
    1. Both A and R are true and R is the correct explanation of A

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

    3. a is true but r is false

    4. A is false but R is true

    • Assertion (A): Industrial a development strategy in India is faced with the choice of scale, size and intensity of factor use.
    • Reason (R): Factor imbalances and resource flows are not favourable to sustainable industrial development in

    India.

    1. Both A and R are true and R is the correct explanation of A

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

    3. a is true but r is false

    4. A is false but R is true

    • Assertion (A): In India, the traditional small scale industries have greater employment potential than the modern small scale industries.
    • Reason (R): The value of capital per worker in traditional small scale industries is smaller than the value of capital per worker in the modern small scale industries.
    1. Both A and R are true and R is the correct explanation of A

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

    3. a is true but r is false

    4. A is false but R is true

    • Assertion (A): The public sector enterprises in India have not shown promising results.
    • Reason (R): Profit maximisation is not their sole objective.
    1. Both A and R are true and R is the correct explanation of A

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

    3. a is true but r is false

    4. A is false but R is true

    • Assertion (A): Indian agriculture still absorbs a major.
    • Reason (R): Employment elasticity of agricultural production is high.
    1. Both A and R are true and R is the correct explanation of A

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

    3. a is true but r is false

    4. A is false but R is true