Previous Year Solved Question Papers

Previous Year Solved Question Papers

MCQs on Economics -26

1. According to GOI disinvestment policy, the term strategic sale of PSU means
(a) Majority stake issued to strategic sectors like Defence
(b) Sale of share of Defence PSUs
(c) Sale of stake along with management
(d) Majority stake issued to PSUs



2. With reference to TRIPS agreement of WTO, consider the following provisions provided for developing countries:
1. Parallel imports is a provision provided for these nations to import drugs at a cheaper rate in certain situations
2. Compulsory licensing allows a government to temporarily override a patent, to produce generics when faced with a public health problem
3. Only product patent can be issued to food, drugs, chemicals, for a period of 20 years
4. India ratified TRIPS agreement

Which of the above provisions are true?
(a) 1, 2
(b) 2, 3, 4
(c) 1, 2, 3
(d) All the above



3. Consider the following statements:
1. Disinflation is a phenomena of fall in price level
2. Reflation is to counter deflation
3. Core inflation is nothing but inflation excluding inflation in services
4. Stagflation is an inflation in a stagnated economy
(a) 1, 3, 4 correct
(b) 2, 4 correct
(c) 1, 3 correct
(d) 1, 4 correct



4. Consider the following taxes
1. Sales tax
2. Value-added tax
3. Property tax
Which of the taxes given above is/are Advalorem tax/taxes?
(a) 1 and 2
(b) 1 and 3
(c) 2 and 3
(d) All of these



5. ‘Other liabilities’ of the Central Government of India include outstandings against which one of the following?
(a) Small saving schemes
(b) Securities issued to Industrial Development Bank of India, Unit Trust of India and nationalized banks
(c) Deposits under the special deposit schemes
(d) All of the above



6. With respect to the latest budget which of the following statements are correct
1. Pradhanmantri Gram Sinchai Yajana to promote rural development through development of cottage industries
2. Parampraghat Krishi vikas yojana is to promote organic cultivation
3. MUDRA is to promote lending for agriculture.
4. JAM trinity, to promote direct benefit transfer
(a) 1, 3, 4
(b) 2, 3, 4
(c) 2, 4
(d) All the above



7. Consider the following statements:
1. Liquidity trap is a situation where any decrease in the repo rates will not affect liquidity situation in the market
2. Crowding out means government taking the money from market leaving less space for the private institutions
3. Sweat shares are those shares given to the existing share holders in substitute for profit.
4. Initial public offer and follow up public offer both include new shares IAS
(a) Only 4 is false
(b) Only 2 is false
(c) Only 3 is false
(d) All are true



8. Consider the following statements:
1. High fiscal deficit might lead to crowding out effect in the economy
2. WMAs replaced Adhoc treasury bills since 1997
3. High fiscal deficit might dampen savings
4. The debt of government includes outstandings against provident funds
(a) 1, 2, 3 correct
(b) 2, 3, 4 correct
(c) 1, 2, 4 correct
(d) All the above are correct



9. Consider the following statements:
1. Fringe benefits are usually enjoyed collectively by the employees
2. Pump priming is nothing but deficit financing and spending by government
3. Effective revenue deficit is less than revenue deficit
4. Money printed by RBI is called high powered money
(a) 1, 2, 3 correct
(b) 2, 3, 4 correct
(c) 1, 3, 4 correct
(d) All the above are correct



10. Consider the following statements:
1. Foreign Currency Convertible Bonds are issued in currencies different from the issuing company’s domestic currency.
2. Foreign Currency Convertible Bonds are quasi-debt instruments and tradable on the primary capital market.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2



11. Consider the following statements:
1. Tax expenditure refers to revenue foregone as a result of exemptions and concessions
2. Tax Buoyancy is a measure of revenue growth in response to growth in GDP
3. Central Sales Tax is levied, collected and appropriated by central government
4. Direct Taxes help in income redistribution
(a) 1, 2, 4 correct
(b) 2, 3, 4 correct
(c) 1, 3, 4 correct
(d) All the above



12. Consider the following components of the PURA model of economic development
1. Facilitate road connectivity in villages.
2. Enhancement of electricity in rural areas of
3. Establishment of cyber café in villages
4. Construction of hospital in rural areas.
Which of the components given above is/are the major connectivity formulated by the PURA model?
(a) 1 and 4
(b) 1, 2 and 4
(c) 1, 2 and 3
(d) 1, 2, 3 and 4



13. Match the following
List-I List-II
A. ISO 9001 1. Quality Management Systems Certification
B. ISO 14001 2. Environmental Management Systems Certification
C. ISO 18001 3. Occupational Health and Management Systems Certification
D. ISO 22000 4. Food Safety Management
E. ISO 15700 5. Service Quality Management Systems Certification

A B C D E
(a) 1 2 3 4 5
(b) 2 1 4 5 3
(c) 5 4 3 1 2
(d) 3 2 4 5 1



14. Consider the following statements with respect to GST
1. Reduces cascading effect
2. Is a comprehensive indirect tax
3. Aimed at forging a common domestic market
4. Alcohol and petroleum are exempted from GST
(a) 1, 2, 3 correct
(b) 2, 3 correct
(c) 2, 3, 4 correct
(d) All the above


15. Consider the following statements:
1. FSLRC was set up to comprehensively review and redraw the legislations governing India’s financial system
2. FSLRC recommended Independent debt management agency
3. It drafted Indian Financial code.
4. Narasimhan – I Committee recommended to come up with Monetary policy review frame work agreement between GOI and RBI
(a) 1, 2, 4 correct
(b) 2, 3, 4 correct
(c) 1, 2, 3 correct
(d) All the above

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