MCQ on India's Economy with Answers 2010

1. Movement along the same demand curve is known as—
(A) Extension and contraction of demand
(B) Increase and decrease of demand
(C) Contraction of supply
(D) Increase of supply
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2. Which is a credit rating agency in India ?
(A) CRISIL
(B) ICRA
(C) CARE
(D) All of the above
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3. A tax is characterised by horizontal equity if its liability is—
(A) Proportional to the income of tax payers
(B) Similar for tax payers in similar circumstances
(C) Proportional to the expenditure of tax payers
(D) The same for every tax payer
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4. What does a leasing company provide ?
(A) Machinery and capital equipment on hire
(B) Legal guidance in establishing an enterprise
(C) Office accommodation on hire
(D) Technical consultancy and experts for a fee
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5. When too much money is chasing too few goods, the situation is—
(A) Deflation
(B) Inflation
(C) Recession
(D) Stagflation
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6. When there is a change in demand leading to a shift of the Demand Curve to the right, at the same price as before, the quantity demanded will—
(A) Decrease
(B) Increase
(C) Remain the same
(D) Fluctuate
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7. The income elasticity of demand being greater than one, the commodity must be—
(A) A necessity
(B) A luxury
(C) An inferior goods
(D) A Giffin goods
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8. 'Marginal efficiency of capital' is—
(A) The expected rate of return on new investment
(B) The expected rate of return on existing investment
(C) The difference between the rate of profit and the rate of interest
(D) The value of output per unit of capital invested
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9. National Development Council (NDC) was constituted in—
(A) 1947
(B) 1950
(C) 1952
(D) 1951
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10. The major aim of devalution is to—
(A) Encourage imports
(B) Encourage exports
(C) Encourage both exports and imports
(D) Discourage both exports and imports
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11. Which among the following markets deals with the government securities ?
(A) Primary market
(B) Gilts market
(C) Foreign exchange market
(D) Secondary market
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12. Structural unemployment arises due to—
(A) Deflationary conditions
(B) Heavy industry bias
(C) Shortage of raw materials
(D) Inadequate productive capacity
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13. Which states have not yet established Regional Rural Banks ?
(A) Sikkim and Goa
(B) Bihar and Rajasthan
(C) Sikkim and Arunachal Pradesh
(D) Nagaland and Manipur
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14. What is the name of MTNL's cellular service?
(A) Connect next
(B) Dolphin
(C) Tnex
(D) BSNL
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15. ‘Open Market Operations’ is a part of—
(A) Income Policy
(B) Fiscal Policy
(C) Labour Policy
(D) Credit Policy
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16. When is the budget traditionally submitted ?
(A) Last working day of the month of February
(B) First day of the month of March
(C) Last week of February
(D) Last week of March
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17. Countries known as ‘The Four Pacific Tiger Economies’ are—
(A) Japan, Indonesia, Singapore and Hongkong
(B) China, Japan, Hongkong and Singapore
(C) Singapore, Taiwan, Hongkong and South Korea
(D) Indonesia, Philippines, North Korea and Japan
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18. Which U.S. rice growing company was granted the patent of Indian Basmati ?
(A) Kasmati
(B) Tex Rice
(C) Rice Tec
(D) Texmati
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19. Net growth-rate of population is determined by—
(A) Gross reproduction rate
(B) The birth-rate & the death-rate
(C) The pressure of population
(D) The birth-rate in a country
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20. A closed economy is one which—
(A) Does not trade with other country
(B) Does not possess any means of international transport
(C) Does not share coastal line
(D) Is not a member of the U.N.O.
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