Q176. Which among the following is not a component of balance sheet?
(a) Total issued capital
(b) Cash held at the bank
(c) Value of raw materials held
(d) Revenue from sales of the company’s products
Answer
Ans.(d)
Sol. The balance sheet contains statements of assets, liabilities, and shareholders equity.
Q177. Which one of the following is not a scheme or project?
(a) AMRUT
(b) Swachh Bharat
(c) AYUSH
(d) Jan Dhan Yojana
Answer
Ans.(c)
Sol. Department of Indian Systems of Medicine and Homoeopathy (ISM&H) was established in 1995 and renamed as Department of Ayurveda, Yoga & Naturopathy, Siddha, Unani and Homoeopathy (AYUSH) in November, 2003. It is not a scheme/project of present Government
Q178. The major objective of monetary policy is to?
(a) Increase government's tax revenue
(b) Revamp the Public Distribution System
(c) Promote economic growth with price stability
(d) Weed out corruption in the economy
Answer
Ans.(c)
Sol. Monetary policy is designed as to maintain the price stability in the economy. Thus, its main objective is to promote economic growth with Price stability.Monetary policy is the macroeconomic policy laid down by central bank.
Q179. Trickle down theory ignores the impact of economic growth on -
(a) Investment
(b) Savings
(c) Income distribution
(d) Consumption
Answer
Ans.(c)
Sol. Trickle-down economics, or “trickle-down theory,” states that tax breaks and benefits for corporations and the wealthy will trickle down to everyone else. It argues for income and capital gains tax breaks or other financial benefits to large businesses, investors and entrepreneurs to stimulate economic growth.It ignores the impact of economic growth on income distribution.
Q180.A manufacturer faces price elasticity of demand of a -2 for its product. If it lowers its price by 5%, the increase in quantity sold will be -
(a) 3%
(b) 10%
(c) 2.50%
(d) 7%
Answer
Ans.(b)
Sol. Elasticity = ( % Change in Quantity) /( % Change in Price).
181.If cash reserve ratio decreases, credit creation will _______.
(a) Increase
(b) Decrease
(c) Does not change
(d) First decreases than increases
Answer
Ans.(a)
Sol. When the Federal Reserve lowers the reserve ratio, it lowers the amount of cash banks are required to hold in reserves and allows them to make more loans to consumers and businesses. This increases the money supply and expands the economy.
Q182. In which market form, a market or an industry is dominated by a single seller?
(a) Oligopoly
(b) Monopoly
(c) Duopoly
(d)Competitive
Answer
Ans.(b)
Sol. Monopoly refers to a company that is a single seller of a product or service in the market. A monopoly basically holds the entire market, controls prices and supplies and puts an end to any competition or it doesn't even let competition get a start because of high market entry costs and legal
Q183. Which one of the following is also regarded as disguised unemployment?
(a) Underemployment
(b) Frictional unemployment
(c) Seasonal unemployment
(d) Cyclical unemployment
Answer
Ans.(a)
Sol. In certain circumstances, people doing part-time work may qualify if they desire to obtain, and are capable of performing, full-time work. It also includes those accepting employment well behind their skill set. In these cases, disguised unemployment may also be referred to as the underemployed, covering those who are working in some capacity but not at their full capacity.
Q184.Courier service comes under which sector?
(a) Primary
(b) Secondary
(c) Tertiary
(d) Both Secondary and Tertiary
Answer
Ans.(c)
Sol. Courier service comes under Tertiary Sector also known as Service Sector
Q185.Which among the following is not a direct tax?
(a) Income tax
(b) Wealth tax
(c) Corporate tax
(d) Both (a) & (b)
Answer
Ans.(d)
Sol. A direct tax is paid directly by an individual or organization to an imposing entity. A taxpayer, for example, pays direct taxes to the government for different purposes e.g. income tax, corporation tax, wealth tax etc.
Q186.Which of the following is called GDP Deflator?
(a) Ratio of nominal to real GDP
(b) Ratio of nominal to real GNP
(c) Ratio of nominal to real CPI
(d) Ratio of real to nominal GNP
Answer
Ans.(a)
Sol. The GDP deflator is a measure of price inflation. It is calculated by dividing Nominal GDP by Real GDP and then multiplying by 100.
Q187.Which organisation monitors the banks in actually maintaining cash balance?
(a) State Bank of India
(b) Reserve Bank of India
(c) Grameen Bank of India
(d) Regional Rural Bank
Answer
Ans.(b)
Sol. Reserve Bank of India monitors that the banks in actually maintaining cash balances
Q188.Which of the following is represented by “Lorenz Curve”?
(a) Employment
(b) Inflation
(b) Deflation
(d) Income Distribution
Answer
Ans.(d)
Sol. In economics, the Lorenz curve is a graphical representation of the distribution of income or of wealth.
Q189. The central nodal agency for implementing the price support operations for commercial crops is:
(a)NAFED
(b)NABARD
(c) TRIFED
(d) FCI
Answer
Ans.(a)
Sol. National Agricultural Cooperative Marketing Federation of India Ltd is an apex organization of marketing cooperatives for agricultural produce in India, under Ministry of Agriculture, Government of India.
Q190.The __________ exchange rate is the relative price of foreign goods in terms of domestic goods.
(a) Artificial
(b) Nominal
(c) Fixed
(d) Real
Answer
Ans.(d)
Sol. The real exchange rate R is defined as the ratio of the price level abroad and the domestic price level, where the foreign price level is converted into domestic currency units via the current nominal exchange rate.
Q191. ___________ is an alternative way of representing the production function.
(a) The Short Run
(b) The Long Run
(c) Isoquant
(d) Average product
Answer
Ans.(c)
Sol. An Isoquant Curve shows all the possible combinations of input factors that yield the same quantity of production. In other words, an iso-quant curve is a geometric representation of the production function, wherein different combinations of labor and capital are employed to have the same level of output.
Q192. ____ is the relationship between the variable input and output, keeping all other inputs are held constant.
(a) Total product
(b) Average product
(c) Isoquant
(d) The Long Run
Answer
Ans.(a)
Sol. Total product is the relationship between the variable input and output,keeping all other inputs are held constant.
Q193.From which of the following, is the GDP of a country not derived from?
(a) Agricultural sector
(b)Industrial sector
(c)International sector
(d) Service sector
Answer
Ans.(c)
Sol. Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country's borders in a specific time period.
Q194.If at a price, market supply is greater than market demand, we say that there is ________ in the market at that price.
(a) Equilibrium
(b) Excess Demand
(c) Excess Supply
(d) Marginal Revenue
Answer
Ans.(c)
Sol. In economics, an excess supply or economic surplus is a situation in which the quantity of a good or service supplied is more than the quantity demanded.
Q195. In India the reform policies were first introduced in which year?
(a) 1951
(b) 1971
(c) 1991
(d) 2001
Answer
Ans.(c)
Sol. The Indian Government has introduced Economic Reforms in India in 1991 for the first time.
Q196.The demand for a inferior good increases with ________ in the consumer's income.
(a) Increase
(b)Decrease
(c) Constant
(d) Double
Answer
Ans.(b)
Sol. Demand for inferior goods increases when income falls or the economy contracts in other words demand of inferior good increases with decrease in the consumer’s income.
Q197. Sudden decrease of birth rate would cause___________.
(a) Increase in per capita income
(b) Increase in investment
(c) Increase in savings
(d) Increase in loan requests
Answer
Ans.(a)
Sol. Sudden decrease of birth rate would increase in per capita income. Per capita Income is calculated by taking a measure of all sources of income in the aggregate and dividing it by the total population.
Q198. In the last one decade, which one among the following sectors has attracted the highest foreign direct investment inflows into India?
(a) Food processing
(b) Petro-chemical
(c) Chemicals other than fertilizers
(d) Telecommunications
Answer
Ans.(d)
Sol. The telecommunications sector constituted for the largest part in foreign direct investment equity inflows in India with an overall amount of 6.14 billion U.S. dollars for FY 2018.
Q199. The modern economy is NOT characterized by ___________.
(a) self-sufficient village system
(b) Development of money economy
(c) Capital intensive mode of production
(d) Production for market
Answer
Ans.(a)
Sol. The modern economy is not characterized by self-sufficient village system.
Q200. During which Five Year Planning was NABARD established?
(a) Fifth
(b) Sixth
(c) Third
(d) Ninth
Answer
Ans.(b)
Sol. NABARD was established on the recommendations of B.Sivaraman Committee, (by Act 61, 1981 of Parliament) on 12 July 1982 to implement the National Bank for Agriculture and Rural Development Act 1981. It was established during Sixth five year plan.
