Competitive Exams: Economics MCQs (Practice-Test 80 of 122)

  1. Which one of the following is the basic objective of monetary policy?

    1. To control deficit of the budget

    2. To control deficit in the balance of payment

    3. To control cost and availability of money

    4. To control public expenditure

  2. Match List-I (Committee) with List-II (Subject) and select the correct answer using the codes given below the lists:

    List-I (Committee) List-II (Subject)
    1. Tandon Committee

    2. Rakesh Mohan Committee

    3. Narasimhan Committee

    4. Omkar Goswami Committee

    1. Capital Financing

    2. Infrastructure Development

    3. Financial Sector Reforms

    4. Industrial Sickness

    • A
    • B
    • C
    • D
      • 1
      • 3
      • 2
      • 4
      • 4
      • 2
      • 3
      • 1
      • 1
      • 2
      • 3
      • 4
      • 4
      • 3
      • 2
      • 1
  3. The heavy industries strategy under the Second Five Year Plan has been criticised for several reasons. Which one of the following is not among them?

    1. Inadequate emphasis on agriculture, small scale and cottage industries

    2. Emergence of continuous trade deficits

    3. Growing unemployment and inequality of income and wealth

    4. Failure to achieve expansion in the capital goods sector and diversification of industrial capacity

  4. Which one of the following statements is correct?

    1. Rural urban income disparities have increased over a period of time

    2. Rural urban income disparities have not changed over a period of time

    3. Rural urban income disparities have declined over a period of time

    4. Income distribution does not influence growth

  5. Consider the following statements: The National Agricultural Policy of 2000 in India aims at

    1. A growth rate of 6% per annum in agriculture.

    2. Growth with equity.

    3. Supply driven growth rate.

    4. Demand driven growth rate.

    Which of the statements given above are correct?

    1. 1 and 2

    2. 2 and 3

    3. 2 and 4

    4. 3 and 4

  6. In India, which one among the following formulates the fiscal policy?

    1. Planning Commission

    2. Ministry of Finance

    3. Finance Commission

    4. The Reserve Bank of India

  7. Consider the following statements:

    1. The first Industrial Policy of Government of India was introduced in 1948.

    2. The Industrial Policy introduced by Government of India in 1956 is also known as ‘Economic Constitution’ of India.

    3. The Committee on Growth of concentration of economic powers in India was appointed under the chairmanship of Prof. P. C. Mahalanobis in 1961.

    4. A special group on targeting ten million employment opportunities per year was constituted by Planning

    Commission with one of its member as

    Chairman.

    Which of the statements given above are correct?

    1. 1, 2 and 3

    2. 2, 3 and 4

    3. 1, 3 and 4

    4. 1, 2 and 4

  8. Which one of the following is correct in respect of India? Percentage of workers engaged in

    1. agricultural sector is increasing

    2. industry sector is more than tertiary sector

    3. tertiary sector is decreasing

    4. tertiary sector is more than industry sector

  9. Consider the following statements:

    1. Tenth Five Year Plan aims at a reduction of poverty ratio by 5 percentage points by 2007.

    2. Tenth Five Year Plan aims at a reduction in gender gaps in literacy and wage rates by at least 40 per cent by 2007.

    3. Tenth-Five Year Plan aims at a reduction in the decadal rate of population growth between 2001 and 2011 to 16.2 per cent.

    4. Tenth Five Year Plan aims at an enhancement in literacy rates to 75 per cent by 2007.

    Which of the statements given above are correct?

    1. 1 and 2

    2. 2 and 3

    3. 2, 3 and 4

    4. 1, 3 and 4

    • Assertion (A): VAT is less inflationary man multi-stage turnover tax.
    • Reason (R): VAT reduces the cascading effect on prices.
    1. Both (A) and (R) are individually true and (R) is the correct explanation of (A)

    2. Both (A) and (R) are individually true, but (R) is not the correct explanation of (A)

    3. (A) is true, but (R) is false

    4. (A) is false, but (R) is true

    • Assertion (A): Indirect taxes do not satisfy the canon of equity.
    • Reason (R): Indirect taxes fall on all persons indiscriminately, irrespective of their ability to pay.
    1. Both (A) and (R) are individually true and (R) is the correct explanation of (A)

    2. Both (A) and (R) are individually true, but (R) is not the correct explanation of (A)

    3. (A) is true, but (R) is false

    4. (A) is false, but (R) is true

    • Assertion (A): Variance of X is always greater than the Standard Deviation of X.
    • Reason (R): Variance is square of

    Standard Deviation.

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

    2. Both (A) and (R) are individually true, but (R) is not the correct explanation of (A)

    3. (A) is true, but (R) is false

    4. (A) is false, but (R) is true

    • Assertion (A): Index numbers are useful tools in economic planning.
    • Reason (R): Consumer price index number estimates the changes in the standard of living of the people.
    1. Both (A) and (R) are individually true and (R) is the correct explanation of (A)

    2. Both (A) and (R) are individually true, but (R) is not the correct explanation of (A)

    3. (A) is true, but (R) is false

    4. (A) is false, but (R) is true

    • Assertion (A): Reducing fiscal deficit is a challenging job for the government of India.
    • Reason (R): Reduction in government expenditure reduces social investment.
    1. Both (A) and (R) are individually true and (R) is the correct explanation of (A)

    2. Both (A) and (R) are individually true, but (R) is not the correct explanation of (A)

    3. (A) is true, but (R) is false

    4. (A) is false, but (R) is true

    • Assertion (A): Real income is greater than money income during inflation.
    • Reason (R): Real Income Money Income = Price Index Number
    1. Both (A) and (R) are individually true and (R) is the correct explanation of (A)

    2. Both (A) and (R) are individually true, but (R) is not the correct explanation of (A)

    3. (A) is true, but (R) is false

    4. (A) is false, but (R) is true