Indian Economy Questions

1. According to the quantity theory of money, the quantity of money determines the—
(A) Interest rate
(B) Level of real output
(C) Price level
(D) Level of employment
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2. A company is said to be ‘Sick’ when the accumulated loss at the end of any financial year leads to erosion of …… per cent of its net worth.
(A) 100%
(B) 75%
(C) 50%
(D) 25%
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3. The abbreviation TRP denotes—
(A) Technical Research Project
(B) Trade Related Procedures
(C) Tax Related Protocols
(D) Television Rating Point
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4. Who is called the Father of Economics ?
(A) J.M. Keynes
(B) Malthus
(C) Ricardo
(D) Adam Smith
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5. The term ‘market’ in Economics means—
(A) A central place of Exchange
(B) Presence of competition
(C) Place where goods are stored
(D) Shops and super bazars
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6. Commercial banking system in India is—
(A) Mixed banking
(B) Unit banking
(C) Branch banking
(D) None of the above
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7. The gilt edged market in the capital market of India refers to—
(A) Long term private securities
(B) Market dealing in existing securities
(C) Market for corporate securities
(D) Market for government securities
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8. Which of the following yields the largest revenue to the Government of India ?
(A) Sales tax
(B) Corporation tax
(C) Income tax
(D) Excise duty
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9. Credit control operation in India is performed by—
(A) Rural Banks
(B) Commercial Banks
(C) Reserve Bank of India
(D) State Bank of India
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10. Division of labour is limited by—
(A) The number of workers
(B) Hours of work
(C) Extent of the market
(D) Working space
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11. The number of major ports in India is—
(A) 13
(B) 12
(C) 14
(D) 15
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12. Who among the following is the Chairman of the National Disaster Management Authority?
(A) Finance Minister of India
(B) Union Minister for Planning
(C) Prime Minister
(D) The Union Home Minister
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13. Which one of the following is the most sensitive indicator of the health of a Community ?
(A) Birth-rate
(B) Infant mortality-rate
(C) Death-rate
(D) Maternal mortality-rate
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14. Commercial Banks in India were nationalised for the first time in the year—
(A) 1950
(B) 1960
(C) 1969
(D) 1979
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15. The objectives of Indian Planning are—
(A) Increasing national income and employment
(B) Reducing inequalities in income and wealth
(C) Elimination of poverty and inequalities
(D) All of the above
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16. The Gandhian economy was based on the principle of—
(A) State control
(B) Competition
(C) Trusteeship
(D) Rural co-operation
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17. Fiscal policy is concerned with—
(A) Public revenue
(B) Public expenditure and debt
(C) Bank rate policy
(D) Both (A) and (B)
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18. The theory of distribution relates to which of the following ?
(A) The distribution of assets
(B) The distribution of income among various items of expenditure
(C) The distribution of factor payments
(D) Equility in the distribution of income and wealth
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19. If an industry is characterised by economies of scale then—
(A) Barriers to entry are not very large
(B) Long run unit costs of production decreases as the quantity the firm produces increases
(C) Capital requirment are small due to the efficiency of the large scale operation
(D) The costs of entry into the market are likely to be substantial
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20. Say's Law of Market holds that—
(A) Supply is not equal to demand
(B) Supply creates its own demand
(C) Demand creates its own supply
(D) Supply is greater than demand
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