1. Which of the following institutions releases the “World Economic Outlook Report”?
(a) World Bank
(b) Federal Reserve Bank
(c) International Monetary Fund
(d) International Finance Corporation
Ans. c
Explanation: The International Monetary Fund releases the World Economic Outlook Report.
2. Name of the committee recommended the merger of Regional Rural Banks with their respective Sponsor Banks?
(a) Khusro Committee
(b) Narasimham Committee
(c) JJ IRANI Committee
(d) C Rangarajan Committee
Ans. a
Explanation: The Agricultural Credit Review Committee, Khusro Committee, 1989 recommended the merger of Regional Rural Banks with their respective Sponsor Banks. The highlighted the weakness of RRBs and their non-viability.
3. Which among the following is not a factor of production?
(a) Land
(b) Labour
(c) Capital
(d) Other Expenses
Ans.d
Explanation: Other expenses are not included in the factors of production.
4. Which of the following is not a method to calculate the Gross Domestic Product (GDP)?
(a) Product method
(b) Income law
(c) Expenditure method
(d) Diminishing cost method
Ans: d
Explanation: There are 3 methods used for calculating national income namely; Income method, expenditure method, and Product method. The diminishing cost method is not a method to calculate national income.
5. The total amount of income from economic activities across the country in a year is called ........
(a) Disposable income
(b) National income
(c) Gross income
(d) Private Income
Ans: b
Explanation: The total amount of income from economic activities across the country in a year is called national income. This income includes wages, interest, rent, and profit.
6. Which of the following statements is correct?
(a) GDP at factor cost = Net Value Addition + Depreciation
(b) GDP at factor cost = Net Value Addition - Depreciation
(c) GDP at factor cost = Net price increase + indirect tax
(d) GDP at factor cost = Net price increase + direct tax
Ans: a
Explanation: GDP at factor cost = Net Value Addition + Depreciation is correct. GDP at at factor cost is the sum of net value addition by all producers within the country.
7. Which statement is correct for nominal GDP?
i.Nominal GDP is calculated based on current prices.
ii. Nominal GDP is calculated based on the base prices.
iii. Data on Nominal GDP shows an accurate picture of the economy as compared to real GDP.
(a) Only ii, iii
(b) only ii
(c) only i
(d) i, iii
Ans: c
Explanation: Nominal GDP is calculated on the basis of current prices. While real GDP is calculated on the base year prices and its data are more reliable or accurate as compared to Nominal GDP.
8. Which sector contributes the most income to India's economy?
(a) Primary sector
(b) Secondary sector
(c) Tertiary sector
(d) None of these
Ans: c
Explanation: The tertiary sector contributes the most to India's economy. There are many areas in this sector like the service sector, real estate, hotels and restaurants, telecommunications etc. Currently, the service sector contributes 53.66% to the Indian economy. The second place is occupied by the Secondary sector that is about 31% to GDP.
9. Till what time Indian Economy want to become a US$5 trillion dollar economy?
(a) 2025-26
(b) 2024-25
(c) 2030-31
(d) Already achieved
Ans: b
Explanation: India's economy has been targeted to be $ 5 trillion by 2024-25. For this, it is necessary to keep the growth rate of 9% every year.
10. Who releases data of national income in India?
(a) NSSO
(b) CSO
(c) NITI Aayog
(d) RBI
Ans:b
Explanation: The GDP figures in India are released by the Central Statistics Office (CSO), which comes under the Ministry of Statistics and Program Implementation (MOSPI).
11. The value of which work is added in the calculation of GDP?
(a) Housewives' works
(b) A teacher teaching his own child
(c) The value of resale of old shares
(d) Construction of new house by an artisan
Ans: d
Explanation: The value of the construction of a new house is added in the calculation of the GDP because it is a new production work in the economy.