Economy

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Syllabus for Prelims Exam ("Economy" Highlighted Yellow)

Syllabus of PRELIMS Paper I (200 marks) Duration : 2 hours

  • Current events of national and international importance History of India and Indian National Movement Indian.

  • World Geography - Physical, Social, Economic Geography of India and the World Indian

  • Polity and Governance - Constitution, Political System, Panchayati Raj, Public Policy, Rights Issues, etc.

  • Economic and Social Development - Sustainable Development, Poverty, Inclusion, Demographics, Social Sector initiatives, etc.

  • General issues on Environmental Ecology, Bio-diversity and Climate Change - that do not require subject specialization

  • General Science 

Syllabus for Mains Exam ("Economy" Highlighted Yellow)

General Studies -III (Technology, Economic Development, Bio-diversity, Environment, Security and Disaster Management) Total: 250 Marks, Duration: 3 Hours

ENVIRONMENT

  • Development, Bio diversity, Environment, Security and Disaster Management. Conservation, environmental pollution and degradation, environmental impact assessment

 ECONOMY

  • Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

  • Inclusive growth and issues arising from it.

  • Government Budgeting.

  • Major crops cropping patterns in various parts of the country, different types of irrigation and irrigation systems storage, transport and marketing of agricultural produce and issues and related constraints; e-technology in the aid of farmers

  • Issues related to direct and indirect farm subsidies and minimum support prices; Public Distribution System objectives, functioning, limitations, revamping; issues of buffer stocks and food security; Technology missions; economics of animal-rearing.

  • Food processing and related industries in India- scope and significance, location, upstream and downstream requirements, supply chain management.

  • Land reforms in India.

  • Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.

  • Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

  • Investment models.

SCIENCE AND TECHNOLOGY

  • Science and Technology- developments and their applications and effects in everyday life Achievements of Indians in science & technology; indigenization of technology and developing new technology.

  • indigenization of technology and developing new technology.

  • Awareness in the fields of IT, Space, Computers, robotics, Nano-Technology, bio-technology and issues relating to intellectual property rights.

  • Disaster and disaster management.

SECURITY

  • Linkages between development and spread of extremism.

  • Role of external state and non-state actors in creating challenges to internal security.

  • Challenges to internal security through communication networks, role of media and social networking sites in internal security challenges, basics of cyber security; money-laundering and its prevention

  • Security challenges and their management in border areas; linkages of organized crime with terrorism

  • Various Security forces and agencies and their mandate

 

Last 8 Year Prelims Question asked from Economy Subject (Year Wise)

2018

Total Number of  Questions asked from Economy 15/100:

Total Marks allotted to Economy is 30 Marks / 200 Total Marks.

 

1.  Which of the following statements correctly describes the meaning of legal tender money?

(a)  The money which is tendered in courts of law to defray the fee of legal cases

(b)  The money which a creditor is under compulsion to accept in settlement of his claims.

(c)  The bank money in the form of cheques, drafts, bills of exchange, etc.

(d)  The metallic money in circulation in a country.

 

2.  If a commodity is provided free to public by the government, then

(a)  the opportunity cost is zero.

(b)  the opportunity cost is ignored.

(c)  the opportunity cost is transferred from the consumers of the product to the tax – paying public.

(d)  the opportunity cost is transferred from the consumers of the product to the Government.

 

3.  Increase in absolute and per capita real GNP do not connote a higher level of economic development, if

(a)  Industrial output fails to keep pace with agricultural output.

(b)  Agricultural output fails to keep pace with industrial output.

(c)  Poverty and unemployment increase.

(d)  Imports grow faster than exports.

 

4.  Consider the following statements

Human capital formation is better explained in terms of a process which enables.

1.  Individuals of a country to accumulate more capital.

2.  Increasing the knowledge, skill level and capacities of the people of the country.

3.  Accumulation of tangible wealth.

4.  Accumulation of intangible wealth.

Which of the statements given above is/are correct?

(a)  1 and 2

(b)  2 only

(c)  2 and 4

(d)  1, 3 and 4

 

5.  Despite being a high saving economy, capital formation may not result in significant increase in output due to

(a)  weak administrative machinery

(b)  illiteracy

(c)  high population density

(d)  high capital- output ration

 

6.  Consider the following events:

1.  The first democratically elected communist party government formed in a State in India.

2.  India’s then largest bank, ‘Imperial Bank of India’, was renamed ‘State Bank of India’.

3.  Air India was nationalised and became the national carrier

4.  Goa became a part of independent India

Which of the following is the correct chronological sequence of the above events?

 (a) 4 – 1 – 2- 3

(b)   3 – 2 – 1 – 4

(c)   4 - 2 – 1 – 3

(d)   3 – 1 – 2 – 4

 

7.  Consider the following statements:

1.  The quantity of imported edible oil is more than the domestic production of edible oils in the last five years.

2.  The Government does not impose any custom duty on all the imported edible oils as a special case.

Which of the statement given above is/are correct?

(a)  1 only

(b)  2 only

(c)  Both 1 and 2

(d)  Neither 1 nor 2

 

8.  Consider the following items:

1.  Cereal grains hulled

2.  Chicken eggs cooked

3.  Fish processed and canned

4.  Newspapers containing advertising material

Which of the above items is/are exempted under GST (Goods and Service Tax)?

(a)  1 only

(b)  2 and 3 only

(c)  1, 2 and 4 only

(d)  1, 2, 3 and 4 only

 

9.  Which one of the following best describes the term “Merchant Discount Rate” sometimes seen in news?

(a)  The incentive given by a bank to a merchant for accepting payments through debit cards pertaining to that bank.

(b)  The amount paid back by banks to their customers when they use debit cards for financial transactions for purchasing goods or services.

(c)  The charge to a merchant by a bank for accepting payments from his customers through the bank’s debit cards.

(d)  The incentive given by the Government to merchants for promoting digital payments by their customers through Point of sale (PoS) machines and debit cards.

 

10.  With reference to India’s decision to levy an equalization tax of 6% on online advertisement services offered by non-residents entities, which of the following statements is/are correct?

1.  It is introduced as a part of the Income Tax Act.

2.  Non-residents entities that offer advertisement service in India can claim a tax credit in their home country under the “Double Taxation Avoidance Agreements”.

Select the correct answer using the code given below:

(a)  1 only

(b)  2 only

(c)  Both 1 and 2

(d)  Neither 1 nor 2

 

11.  Consider the following statements:

1.  Capital Adequacy Ratio (CAR) is the amount that banks have to maintain in the form of their own funds to offset any loss that banks incur if the account-holder fails to repay dues.

2.  CAR is decided by each individual bank.

Which of the statements given above is/are correct?

(a)  1 only

(b)  2 only

(c)  Both 1 and 2

(d)  Neither 1 nor 2

 

12.  Consider the following statements:

1.  The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, comprising 40% for the Central Government and 20% for the State Governments.

2.  The Central Government has domestic liabilities of 21% of the GDP as compared to that of 49% of GDP of the State Government

3.  As per the Constitution of India, it is mandatory for a state to take the Central Government’s consent for raising any loan if the former owes any outstanding liabilities to the latter.

Which of the statement given above is/are correct?

(a)  1 only

(b)  2 and 3 only

(c)  1 and 3 only

(d)  1, 2 and 3

 

13.  Consider the following statements:

1.  The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities.

2.  Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments.

3.  Treasury bills offer are issued at a discount from the par value.

 Which of the statements given above is/are correct?

(a)  1 and 2 only

(b)  3 only

(c)  2 and 3 only

(d)  1, 2 and 3 only

 

14.  With reference to the governance of public sector banking in India, consider the following statements:

1.  Capital infusion into public sector banks by the Government of India has steadily increased in the last decade.

2.  To put the public sector banks in order, the merger of associate banks with the parent State Bank of India has been affected.

Which of the statements given above is/are correct?

(a)  1 only

(b)  2 only

(c)  Both 1 and 2

(d)  Neither 1 nor 2

 

15.  Which of the following links all the ATMs in India?

(a)  Indian Banks Association

(b)  National Security Depository limited

(c)  National Payment Corporation of India

(d)  Reserve Bank of India

2017

Total Number of  Questions asked from Economy 9/100:

Total Marks allotted to Economy is 18 Marks / 200 Total Marks.

 

1. With reference to 'National Investment and Infrastructure Fund', which of the following statements is/are correct?

1. It is an organ of NITI Aayog.

2. It has a corpus of Rs. 4,00,000 crore at present.

Select the correct answer using the code given below:

(a) 1 only

(b) 2 only

(c) Both l and 2

(d) Neither 1 nor 2

 

2. Which of the following statements best describes the term 'Scheme for Sustainable Structuring of Stressed Assets (S4A)', recently seen in the news?

(a) It is a procedure for considering ecological costs of developmental schemes formulated by the Goverment.

(b) It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.

(c) It is a disinvestment plan of the Government regarding Central Public Sector Undertakings.

(d) It is an important provision in 'The Insolvency and Bankruptcy Code' recently implemented by the Government.

 

3. Which of the following has/have occurred in India after its liberalization of economic policies in 1991?

1. Share of agriculture in GDP increased enormously.

2. Share of India's exports in world trade increased.

3. FDI inflows increased.

4. India's foreign exchange reserves increased enormously.

Select the correct answer using the codes given below:

(a) 1 and 4 only

(b) 2, 3 and 4 only

(c) 2 and 3 only

(d) 1, 2, 3 and 4

 

4. Consider the following statements:

1. National Payments Corporation of India (NPCI) helps in promoting the financial inclusion in the country.

2. NPC1 has launched RuPay, a card payment scheme.

 Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2-

(d) Neither 1 nor 2

 

5. What is/are the most likely advantages of implementing Goods and Services Tax (GST)'?

1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India.

2. It will drastically reduce the 'Current Account Deficit of India and will enable it to increase its foreign exchange reserves.

3. It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future.

Select the correct answer using the code given below:

(a) 1 only

(b) 2 and 3only

(c) 1 and 3 only

(d) 1, 2 and 3

 

6. Consider the following statements:

1. Tax revenue as a percent of GDP of India has steadily increased in the last decade.

2. Fiscal deficit as a percent of GDP of India has steadily increased in the last decade.

 Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

 

7. What is the purpose of setting up of Small Finance Banks (SFBs) in India?

1. To supply credit to small business units

2. To supply credit to small and marginal farmers

3. To encourage young entrepreneurs to set up business particularly in rural areas.

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2 and 3only

(c) 1 and 3 only

(d) 1, 2 and 3

 

8. Which of the following is a most likely consequence of implementing the 'Unified Payments Interface (UPI) ?

(a) Mobile wallets will not be necessary for online payments.

(b) Digital currency will totally replace the physical currency in about two decades..

(c) FDI inflows will drastically increase.

(d) Direct transfer of subsidies to poor people will become very effective.

 

 

9. Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)?

1. It decides the RBI's benchmark interest rates.

2. It is a 12-member body including the Governor of RBI and is reconstituted every year.

3. It functions under the chairmanship of the Union Finance Minister.

 Select the correct answer using the code given below:

(a) 1 only

(b) 1 and 2only

(c) 3 only

(d) 2 and 3 only

 

 

2016

Total Number of  Questions asked from Economy 34/100:

Total Marks allotted to Economy is 68  Marks / 200 Total Marks.

 

1. In the context of which of the following do you sometimes find the terms ‘amber box, blue box and green box’ in the news?

(a)WTO affairs

(b)SAARC affairs

(c)UNFCCC affairs

(d)India-EU negotiations on FTA

 

2. Recently, which one of the following currencies has been proposed to be added to the basket of IMF’s SDR?

(a)Rouble

(b)Rand

(c)Indian Rupee

(d)Renminbi

 

3. With reference to the International Monetary and Financial Committee (IMFC), consider the following statement:

Statement 1. IMFC discusses matters of concern affecting the global economy, and advises the International Monetary Fund (IMF) on the direction of its work.

Statement 2.  The Word Bank participates as observer in IMFC’s meetings.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

 

4.Which one of the following best describes the term ‘import cover’, sometimes seen in the news?

(a)It is the ratio of value of imports to the Gross Domestic Product of a country

(b)It is the total value of imports of country in a year.

(c)It is the ratio between the value of exports and that of imports between two countries.

(d)It is the number of months of imports that could be paid for buy a country’s international reverse.

 

5.India’s ranking in the ’Ease of Doing Business Index’ is sometimes seen in the news. Which of the following has declared that ranking?

(a)Organization for Economic Cooperation and Development (OECD)

(b)World Economic Forum

(c)World Bank

(d)World Trade Organization (WTO)

 

6.With reference to the ‘Trans – Pacific Partnership’, consider the following statements:

STATEMENT 1.It is an agreement among all the Pacific Rim countries except China and Russia.

STATEMENT 2.It is a strategic alliance for the purpose of maritime security only.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

 

7.The term ‘Base Erosion and Profit Shifting’ is sometimes seen in the news in the context of

(a) Mining operation by multinational companies in resource-rich but backward areas

(b) Curbing of the tax evasion by multinational companies

(c) Exploitation of genetic resources of a country by multinational companies

(d) Lack of consideration of environmental costs in the planning and implementation of developmental projects

 

8.Consider the following statements:

STATEMENT 1.New Development Bank has been set up by APEC.

STATEMENT 2.The headquarters of New Development Bank is in Shanghai.

Which of the statements given above is/are correct?

(a)  1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

 

9.‘Global Financial Stability Report’ is prepared by the

(a)European Central Bank

(b) International Monetary Fund

(c)International Bank for Reconstruction and Development

(d)Organization for Economic Cooperation and Development

 

10.The term ‘Regional Comprehensive Economic Partnership’ often appears in the news in the context of the affairs of a group of countries known as

(a)G20

(b)ASEAN

(c)SCO

(d)SAARC

 

 

11.‘European Stability Mechanism’ sometimes seen in the news, is an

(a) Agency created by EU to deal with the impact of millions of refugees arriving from Middle East

(b) Agency of EU that provides financial assistance to Curzon countries

(c) Agency of EU to deal with all the bilateral and multilateral agreements on trade

(d) Agency of EU to deal with the conflicts arising among the member countries

 

12. The establishment of ‘Payment Banks’ is being allowed in India to promote financial inclusion. Which of the following statements is/are correct in this context?

 

  1. Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks.

  2. Payment Banks can issue both credit cards and debit cards.

  3. Payment Banks cannot undertake lending activities.

Select the correct answer using the code given below.

(a) 1 and 2 only

(b) 1 and 3 only

(c) 2 only

(d) 1, 2 and 3

 

13. The term ‘Core banking Solutions’ is sometimes seen in the news. Which of the following statements best describes/describe this term?

1. It is a networking of a bank’s branches which enables customers to operate their accounts from any branch of the bank on its network regardless of where they open their accounts.

2. It is an effort to increase RBI’s control over commercial banks through computerization.

3. It is a detailed procedure by which a bank with huge non-performing assets is taken over by another bank.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

 

 

14. What is/are the purpose/purposes of the ‘Marginal Cost of Funds based Lending Rate (MCLR)’ announced by RBI?

1. These guidelines help improve the transparency in the methodology followed by banks for determining the interest rates on advances.

2. These guidelines help ensure availability of bank credit at interest rates which are fair to the borrowers as well as the banks.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

 

15. There has been a persistent deficit budget year after year. Which action/actions of the following can be taken by the Government to reduce the deficit?

1. Reducing revenue expenditure

2. Introducing new welfare schemes

3. Rationalizing subsidies

4. Reducing import duty

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2, 3 and 4

 

16. Which of the following is/are included in the capital budget of the Government of India?

1. Expenditure on acquisition of assets like roads, buildings, machinery, etc.

2. Loans received from foreign governments

3.Loans and advances granted to the States and Union Territories.

 Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

 

17. With reference to ‘Financial Stability and Development Council’, consider the following statements:

1. It is an organ of NITI Aayog.

2. It is headed by the Union Finance Minister.

3. It monitors macroprudential supervision of the economy.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

18.  With reference to ‘Pradhan Mantri FasalBima Yojana’, consider the following statements:

  1. Under this scheme, farmers will have to pay a uniform premium of two percent for any crop they cultivate in any season of the year.

  2. This scheme covers post-harvest losses arising out of cyclones and unseasonal rains.

Which of the statements given above is/are correct?

 (a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

 

19. The FAO accords the status of ‘Globally Important Agricultural Heritage System (GIAHS)’ to traditional agricultural systems. What is the overall goal of this initiative?

  1. To provide modern technology, training in modern farming methods and financial support to local communities of identified GIAHS so as to greatly enhance their agricultural productivity

  2. To identify and safeguard eco-friendly traditional farm practices and their associated landscapes, agricultural biodiversity and knowledge systems of the local communities

  3. To provide Geographical indication status to all the varieties of agricultural produce in such identified GIAHS

Select the correct answer using the code given below.

(a) 1 and 3 only

(b) 2 only

(c) 2 and 3 only

(d) 1, 2 and 3

 

20. With reference to ‘Initiative for Nutritional Security through Intensive Millets Promotion’, which of the following statements is/are correct?

  1. This initiative aims to demonstrate the improved production and post-harvest technologies, and to demonstrate value addition techniques, in an integrated manner, with cluster approach.

  2. Poor, small, marginal and tribal farmers have larger stake in this scheme.

  3. An important objective of the scheme is to encourage farmers of commercial crops to shift to millet cultivation by offering them free kits of critical inputs of nutrients and micro irrigation equipment.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(c) 1 and 2 only

(d) 1, 2 and 3

 

21.  Which of the following is/are the advantages / advantages of practising drip irrigation?

1. Reduction in weed.

2. Reduction in soil salinity

3. Reduction in soil erosion

Select the correct answer using the code given below.

(a) 1 and 2 only

(b) 3 only

(c) 1 and 3 only

(d) None of the above is an advantages of practising drip irrigation

 

22. Why does the Government of India promote the use of ‘Neem-coated urea’ in agriculture?

  1. Release of neem oil in the soil increases nitrogen fixation by the soil microorganisms

  2. Neem coating slows down the rate of dissolution of urea in the soil

  3. Nitrous oxide, which is a greenhouse gas, is not at all released into atmosphere by crop fields

  4. It is a combination of a weedicide and a fertilizer for particular crops

23. Recently, India’s first ‘National Investment and Manufacturing Zone’ was proposed to be set up in

(a) Andhra Pradesh

(b) Gujarat

(c) Maharashtra

(d) Uttar Pradesh

 

24.  What is/are the purpose/ purposes of ‘District Mineral Foundations’ in India?

1. Promoting mineral exploration activities in mineral-rich districts

2.Protecting the interests of the persons affected by mining operations

3. Authorizing State Governments to issue licenses for mineral exploration.

 Select the correct answer using the code given below

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

 

25.  Which one of the following is a purpose of ‘UDAY’, a scheme of the Government?

  1. Providing technical and financial assistance to start-up entrepreneurs in the field of renewable sources of energy

  2. Providing electricity to every household in the country by 2018

  3. Replacing the coal-based power plants with natural gas, nuclear, solar, wind and tidal power plants over a period of time

  4. Providing for financial turnaround and revival of power distribution companies

 

26.  ‘Net metering’ is sometimes seen in the news in the context of promoting the

(a) Production and use of solar energy by the households/consumers

(b) Use of piped natural gas in the kitchens of households

(c) Installation of CNG kits in motor-cars

(d) Installation of water meters in urban households

 

27.  On which of the following can you find the Bureau of Energy Efficiency Star Label?

1.Ceiling fans

2. Electric geysers

3. Tubular fluorescent lamps

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

 

28.  Recently, which of the following States has explored the possibility of constructing an artificial inland port to be connected to sea by a long navigational channel?

(a) Andhra Pradesh

(b) Chhattisgarh

(c) Karnataka

(d)Rajasthan

 

29.  With reference to ‘IFC Masala Bonds’ sometimes seen in the news, which of the statement given below is/are correct?

  1. The International Finance Corporation, which offers these bonds, is an arm of the World Bank.

  2. They are the rupee-denominated bonds and are a source of debt financing for the public and private sector.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

 

30. What is/ are the purpose/purposes of Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’?

 

  1. To bring the idle gold lying with Indian households into the economy

  2. To promote FDI in the gold and jewellery sector

  3. To reduce India’s dependence on gold imports.

 Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

 

31. Which of the following is/are the indicator/indicators used by IFPRI to compute the Global Hunger Index Report?

1. Undernourishment

2. Child stunting

3. Child mortality

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(c) 1, 2 and 3

(d) 1 and 3 only

32. With reference to ‘Stand Up India Scheme’, which of the following statements is/are correct?

1.Its purpose is to promote entrepreneurship among SC/ST and women entrepreneurs.

2.It provides for refinance through SIDBI.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

 

33.   Pradhan Mantri MUDRA Yojana is aimed at

  • Bringing the small entrepreneurs into formal financial system

  • Providing loans to poor farmers for cultivating particular crops

  • Providing pensions to old and destitute persons

  • FUNDING the voluntary organizations involved in the promotion of skill development and employment generation

 

34. Regarding ‘Atal Pension Yojana’, which of the following statements is/are correct?

  1. It is a minimum guaranteed pension scheme mainly targeted at unorganized sector workers.

  2. Only one member of a family can joins the scheme.

  3. Same amount of pension is guaranteed for the spouse for life after subscriber’s death.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

 

2015

Total Number of  Questions asked from Economy 24/100:

Total Marks allotted to Economy is 48 Marks / 200 Total Marks.

1.The problem of international liquidity is related to the non-availability of

(a) Goods and services

(b) Gold and silver

(c) Dollars and other hard currencies

(d) Exportable surplus

 

2.Which of the following has/have been accorded ‘Geographical Indication’ status?

1.Banaras Brocades and Sarees

2.Rajasthani Daal-Bati-Churma

3.Tirupathi Laddu

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

 

3.The ‘Fortaleza Declaration’, recently in the news, is related to the affairs of

(a)ASEAN

(b) BRICS

(c) OECD

(d) WTO

 

4.Which one of the following issues the ‘Global Economic Prospects’ report periodically?

(a)The Asian Development Bank

(b)The European Bank for Reconstruction and Development

(c)The US Federal Reserve Bank

(d)The World Bank

 

5.The terms ‘Agreement on Agriculture’, ‘Agreement on the Application of Sanitary and Phytosanitary Measures’ and ‘Peace Clause’ appear in the news frequently in the context of the affairs of the

(a)Food and Agriculture Organization

(b)United Nations Framework Conference on Climate Change

(c)World Trade Organization

(d)United Nations Environment Programme

 

6.Convertibility of rupee implies

(a) Being able to convert rupee notes into gold

(b) Allowing the value of rupee to be fixed by market forces

(c) Freely permitting the conversion of rupee to other currencies and vice versa

(d) Developing an international market for currencies in India

 

7. ‘Basel III Accord’ or simply ‘Basel III’, often seen in the news, seeks to

(a) Develop national strategies for the conservation and sustainable use of biological diversity

(b) Improve banking sector’s ability to deal with financial and economic stress and improve risk management

(c) Reduce the greenhouse gas emissions but places a heavier burden on developed countries

(d) transfer technology from developed countries to poor countries to enable them to replace the use of chlorofluorocarbons in refrigeration with harmless chemicals

 

8. With reference to Indian economy, consider the following:

1. Bank rate

2. Open market operations

3. Public debt

4. Public revenue

Which of the above is/are component/components of monetary policy?

(a) 1 only

(b) 2, 3 and 4 only

(c) 1 and 2 only

(d) 1, 3 and 4

 

9.  When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points, which of the following is likely to happen?

(a) India’s GDP growth rate increases drastically

(b) Foreign Institutional Investors may bring more capital into our country

(c) Scheduled Commercial Banks may cut their lending rates

(d) It may drastically reduce the liquidity to the banking system

 

10 .There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit?

1.Reducing revenue expenditure

2.Introducing new welfare schemes

3.Rationalizing subsidies

4.Expanding industries

Select the correct answer using the code given below.

(a) 1 and 3

(b) 2 and 3

(c) 1 only

(d) 1, 2, 3 and 4

 

11. Consider the following statements:

  1. The Accelerated Irrigation Benefits Programme was launched during 1996-97 to provide loan assistance to poor farmers

  2. The Command Area Development Programme was launched in 1974-75 for the development of water- use efficiency.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

 

12. The substitution of steel for wooden ploughs in agricultural production is an example of

(a) labour-augmenting technological progress

(b) capital-augmenting technological progress

(c) capital-reducing technological progress

(d) None of the above

 

13. Which one of the following best describes the main objective of ‘Seed Village Concept’?

  1. Encouraging the farmers to use their own farm seeds and discouraging them to buy the seeds from others

  2. Involving the farmers for training in quality seed production and thereby to make available quality seeds to others at appropriate time and affordable cost

  3. Earmarking some villages exclusively for the production of certified seeds

  4. Identifying the entrepreneurs in villages and providing them technology and finance to set up seed companies

 

14. The Fair and Remunerative Price (FRP) of sugarcane is approved by the

(a) Cabinet Committee on Economic Affairs

(b) Commission for Agricultural Costs and Prices

(c) Directorate of Marketing and Inspection, Ministry of Agriculture

(d) Agricultural Produce Market Committee

 

15. In India, markets in agricultural products are regulated under the

(a) Essential Commodities Act, 1955

(b) Agricultural Produce Market Committee Act enacted by States

(c) Agricultural Produce (Grading and Marking) Act, 1937

(d) Food Products Order, 1956 and Meat and Food Products Order, 1973

 

16.. What can be the impact of excessive/inappropriate use of nitrogenous fertilizers in agriculture?

  1. Proliferation of nitrogen – fixing microorganisms in soil can occur.

  2. Increase in the acidity of soil can take place.

  3. Leaching of nitrate to the ground-water can occur.

 Select the correct answer using the code given below.

(a)  1 and 3 only

(b) 2 only

(c) 2 and 3 only

(d) 1, 2 and 3

 

17.  With reference to Indian economy, consider the following statements:

  1. The rate of growth of Real Gross Domestic Product has steadily increased in the last decade.

  2. The Gross Domestic Product at market prices (in rupees) has steadily increased in the last decade.

 Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

 

18.  A decrease in tax to GDP ratio of a country indicates which of the following?

1. Slowing economic growth rate

 2. Less equitable distribution of national income.

 Select the correct answer using the code given below.

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

 

19.  In India, the steel production industry requires the import of

(a)saltpeter

(b) rock phosphate

(c) coking coal

(d) All of the above

 

20. In the ‘Index of Eight Core Industries’, which one of the following is given the highest weight?

(a) Coal production

(b) Electricity generation

(c) Fertilizer production

(d) Steel production

 

21. With reference to the Indian Renewable Energy Development Agency Limited (IREDA), which of the following statements is/are correct?

1.It is a Public Limited Government Company.

2.It is a Non-Banking Financial Company.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

 

22.  ‘Pradhan Mantri Jan-Dhan Yojana’ has been launched for

(a) providing housing loan to poor people at cheaper interest rates

(b) promoting women’s Self-Help Groups in backward areas

(c) promoting financial inclusion in the country

(d) providing financial help to the marginalized communities

 

23.  With reference to inflation in India, which of the following statements is correct?

  1. Controlling the inflation in India is the responsibility of the Government of India only

  2. The Reserve Bank of India has no role in controlling the inflation

  3. Decreased money circulation helps in controlling the inflation

  4. Increased money circulation helps in controlling the inflation

 

24. Which of the following brings out the ‘Consumer Price Index Number for Industrial Workers’?

(a) The Reserve Bank of India

(b) The Department of Economic Affairs

(c) The Labour Bureau

(d) The Department of Personnel and Training

 

2014

Total Number of  Questions asked from Economy 14/100:

Total Marks allotted to Economy is 28 Marks / 200 Total Marks.

 

1.With reference to Balance of payments, which of the following constitutes / constitute the Current Account?

1.Balance of trade

2.Foreign assets

3.Balance of invisibles

4.Special Drawing Rights.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3

(c) 1 and 3

(d) 1, 2 and 4

 

2.Which of the following organizations brings out the publication known as ‘World Economic outlook’?

(a)The International Monetary Fund

(b)The United Nations Development Programme.

(c)The World Economic Forum

(d)The World Bank

 

3.  The terms ‘Marginal Standing Facility Rate’ and ‘Net Demand and Time Liabilities’, sometimes appearing in news, are used in relation to

(a) banking operations

(b) communication networking

(c) military strategies

(d) supply and demand of agricultural products

 

4.   What is/are the facility/facilities the beneficiaries can get from the services of Business Correspondent (Bank Saathi) in branchless areas?

1. It enables the beneficiaries to draw their subsidies and social security benefits in their villages.

2. It enables the beneficiaries in the rural areas to make deposits and withdrawals.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

 

5.   In the context of Indian economy, which of the following is/are the purpose / purposes of ‘Statutory Reserve Requirements?

1. To enable the Central Bank to control the amount of advances the banks can create.

2. To make the people’s deposits with banks safe and liquid.

3. To prevent the commercial banks from making excessive profits.

4. To force the banks to have sufficient vault cash to meet their day-to-day requirements.

Select the correct answer using the code given below.

(a) 1 only

(b) 1 and 2 only

(c) 2 and 3 only

(d) 1, 2, 3 and 4

 

6 .The sales tax you pay while purchasing a toothpaste is a

(a) Tax imposed by the Central Government

(b) Tax imposed by the Central Government but collected by the State Government

(c) Tax imposed by the State Government but collected by the Central Government.

(d) Tax imposed and collected by the State Government.

 

7. With reference to Union Budget, which of the flowing is / are covered under Non-Plan Expenditure?

1. Defence expenditure

2. Interest payments

3. Salaries and pensions

4. Subsidies

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(c) 1, 2, 3 and 4

(d) None

 

8. What are the significances of a practical approach to sugarcane production known as ‘Sustainable Sugarcane Initiative’?

  1. Seed cost is very low in this compared to the conventional method of cultivation.

  2. Drip irrigation can be practiced very effectively in this.

  3. There is no application of chemical/ inorganic fertilizers at all in this.

  4. The scope for intercropping is more in this compared to the conventional method of cultivation.

Select the correct answer using the code given below.

(a) 1 and 3 only

(b) 1, 2 and 4 only

(c) 2, 3 and 4 only

(d) 1, 2, 3 and 4

 

9. What are the benefits of implementing the ‘Integrated Watershed Development Programme’?

1. Prevention of soil runoff

2. Linking the country’s perennial rivers with seasonal rivers

3. Rainwater harvesting and recharge of groundwater table

4. Regeneration of natural vegetation

Select the correct answer using the code given below.

(a) 1 and 2 only

(b) 2, 3 and 4 only

(c) 1, 3 and 4 only

(d) 1, 2, 3 and 4

 

10. In the context of food and nutritional security of India, enhancing the ‘Seed Replacement Rates’ of various crops helps in achieving the food production targets of the future. But what is / are the constraint / constraints in its wider/ greater implementation?

  1. There is no National Seeds Policy in place.

  2. There is no participation of private sector seed companies in the supply of quality seeds of vegetables and planting materials of horticultural crops.

  3. There is a demand-supply gap regarding quality seeds in case of low value and high volume crops.

 Select the correct answer using the code give below.

(a) 1 and 2 only

(b) 3 only

(c) 2 and 3 only

(d) None

 

11. In India, cluster bean (Guar) is traditionally used as a vegetable or animal feed, but recently the cultivation of this has assumed significance. Which one of the following statements is correct in this context?

(a) The oil extracted from seeds is used in the manufacture of biodegradable plastics

(b) The gum made from its seeds is used in the extraction of shale gas

(c) The leaf extract of this plant has the properties of anti-histamines

(d) It is a source of high quality biodiesel

 

12 . If the interest rate is decreased in an economy, it will

(a) Decrease the consumption expenditure in the economy

(b) Increase the tax collection of the Government

(c) Increase the investment expenditure in the economy

(d) Increase the total savings in the economy

 

13. What does venture capital mean?

(a) A short-term capital provided to industries

(b) A long-term start-up capital provided to new entrepreneurs

(c) Funds provided to industries at times of incurring losses

(d) Funds provided for replacement and renovation of industries

 

14.  The main objective of the 12th Five-Year plan is

(a) Inclusive growth and poverty reduction

(b) Inclusive and sustainable growth

(c) Sustainable and inclusive growth to reduce unemployment.

(d) Faster, sustainable and more inclusive growth

 

 

2013

Total Number of  Questions asked from Economy 22/100:

Total Marks allotted to Economy is 44 Marks / 200 Total Marks.

 

 

1.Which of the following constitute Capital Account?

1.Foreign Loans

2.Foreign Direct Investment

3.Private Remittances

4.Portfolio Investment

Select the correct answer using the codes given below:

(a)1, 2 and 3 only

(b) 1, 2 and 4 only

(c) 2, 3 and 4 only

(d) 1, 3 and 4

 

2.Which one of the following groups of items is included in India’s foreign-exchange reserves?

(a)Foreign-currency assets, Special Drawing Rights (SDRs) and loans from foreign countries

(b)Foreign-currency assets, gold holdings of the RBI and SDRs

(c)Foreign-currency assets, loans from the World Bank and SDRs

(d)Foreign-currency assets, gold holdings of the RBI and loans from the World Bank

 

3.The balance of payments of a country is a systematic record of

(a) All import and export transactions of a country during a given period of time, normally a year

(b) Goods exported from a country during a year

(c) Economic transaction between the government of one country to another

(d) Capital movements from one country to another

 

4. Consider the following liquid assets :

1. Demand deposits with the banks

2. Time deposits with the banks

3. Savings deposits with the banks

4. Currency

The correct sequence of these assets in the decreasing order of liquidity is

(a) 1- 4-3-2

(b) 4-3-2-1

(c) 2-3-1-4

(d) 4-1-3-2

 

5. In the context of Indian economy, ‘Open Market Operations’ refers to

(a) Borrowing by scheduled banks from the RBI

(b) Lending by commercial banks to industry and trade

(c) Purchase and sale of government securities by the RBI

(d) None of the above

 

6. Priority Sector Lending by banks in India constitutes the lending to

(a) Agriculture

(b) Micro and small enterprises

(c) Weaker sections

(d) All of the above

7. Supply of money remaining the same when there is an increase in demand for money , there will be

(a) A fall in the level of prices

(b) An increase in the rate of interest

(c) A decrease in the rate of interest

(d) An increase in the level of income and employment

 

8. Which of the following grants/grant direct credit assistance to rural households?

1. Regional Rural Banks

2. National Bank for Agriculture and Rural Development

3. Land Development Banks

Select the correct answer using the codes given below:

(a)  1 and 2 only

(b) 2 only

(c) 1 and 3 only

(d) 1, 2 and 3

 

9. The Reserve Bank of India regulates the commercial banks in matters of

1. Liquidity of assets

2. Branch expansion

3. Merger of banks

4. Winding-up of banks

Select the correct answer using the codes given below:

(a)  1 and 4 only

(b) 2, 3 and 4 only

(c) 1, 2 and 3 only

(d) 1, 2, 3 and 4

 

10. An increase in the Bank Rate generally indicates that the

(a) market rate of interest is likely to fall.

(b) Central Bank is no longer making loans to commercial banks.

(c) Central Bank is following an easy money policy.

(d) Central Bank is following a tight money policy.

 

11. In India, deficit financing is used for raising resources for

(a) Economic development

(b) Redemption of public debt

(c) Adjusting the balance of payments

(d) Reducing the foreign debt

 

12. Consider the following crops:

1.Cotton

2. Groundnut

3. Rice

4. Wheat

 Which of these are Kharif crops?

(a) 1 and 4 only

(b) 2 and 3 only

(c) 1, 2 and 3 only

(d) 2, 3 and 4 only

 

13. . Consider the following organisms:

1. Agaricus

2. Nostoc

3. Spirogyra

 Which of the above is/are used as biofertilizer/biofertilizers?

(a) 1 and 2

(b) 2 only

(c) 2 and 3

(d) 3 only

 

14. Consider the following statements:

1. Inflation benefits the debtors.

2. Inflation benefits the bond-holders.

Which of the statements given above is /are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

 

 

15.  A rise in general level of prices may be caused by

1. An increase in the money supply

2. A decrease in the aggregate level of output

3. An increase in the effective demand

Select the correct answer using the codes given below:

(a) 1 only

(b) 1 and 2 only

(c) 2 and 3 only

(d) 1, 2 and 3

 

16.  Which one of the following is likely to be the most inflationary in its effect?

(a) Repayment of public debt

(b) Borrowing from the public to finance a budget deficit

(c) Borrowing from banks to finance a budget deficit

(d) Creating new money to finance a budget deficit

 

17.  Economic growth in country X will necessarily have to occur if

(a) There is technical progress in the world economy

(b) There is population growth in X

(c) There is capital formation in X

(d) The volume of trade grows in the world economy

 

18.  The national income of a country for a given period is equal to the

(a) Total value of goods and services produced by the nationals

(b) Sum of total consumption and investment expenditure

(c) Sum of the personal income of all individuals

(d) Money values of final goods and services produced

 

19. With reference to the usefulness of the by-products of sugar industry, which of the following statements is/are correct?

  1. Bagasse can be used as biomass fuel for the generation of energy.

  2. Molasses can be used as one of the feedstock’s for the production of synthetic chemical fertilizers.

  3. Molasses can be used for the production of ethanol.

 Select the correct answer using the codes given below:

(a) 1 only

(b) 2 and 3

(c) 1 and 3

(d) 1, 2 and 3

 

20. Which one among the following industries is the maximum consumer of water in India?

(a) Engineering

(b) Paper and pulp

(c) Textiles

(d) Thermal power

 

21. To obtain full benefits of demographic dividend, what should India do?

(a) Promoting skill development

(b) Introducing more social security schemes

(c) Reducing infant mortality rate

(d) Privatization of higher education

 

22.  Disguised unemployment generally means

(a) Large number of people remain unemployed

(b) Alternative employment is not available

(c) Marginal productivity of labour is zero

(d) Productivity of workers is low

 

2012

Total Number of  Questions asked from Economy 19/100:

Total Marks allotted to Economy is 38 Marks / 200 Total Marks.

 

1.Which of the following would include Foreign Direct Investment in India?

1.Subsidiaries of foreign companies in India

2.Majority foreign equity holding in Indian companies

3.Companies exclusively financed by foreign companies

4.Portfolio investment

Select the correct answer using the codes given below:

(a) 1, 2, 3 and 4

(b) 2 and 4 only

(c) 1 and 3 only

(d) 1, 2 and 3 only

 

2.Consider the following statements:

The price of any currency in international market is decided by the

1.World Bank

2.demand for goods/services provided by the country concerned

3.stability of the government of the concerned country

4.economic potential of the country in question

Which of the statements given above are correct?

(a) 1, 2, 3 and 4

(b) 2 and 3 only

(c) 3 and 4 only

(d) 1 and 4 only

 

3. Which of the following measures would result in an increase in the money supply in the economy?

1. Purchase of government securities from the public by the Central Bank.

2. Deposit of currency in commercial banks by the public.

3. Borrowing by the government from the Central Bank.

4. Sale of government securities to the public by the Central Bank.

 Select the correct answer using the codes given below

(a) 1 only

(b) 2 and 4 only

(c) 1 and 3

(d) 2, 3 and 4

 

4.  The basic aim of Lead Bank Scheme is that

(a) Big banks should try to open offices in each district.

(b) There should be stiff competition among the various nationalized banks.

(c) Individual banks should adopt particular districts for intensive development.

(d) All the banks should make intensive efforts to mobilize deposits.

 

5. The Reserve Bank of India (RBI) acts as a banker’s bank. This would imply which of the following?

1. Other banks retain their deposits with the RBI.

2. The RBI lends funds to the commercial banks in times of need.

3. The RBI advises the commercial banks on monetary matters .

Select the correct answer using the codes given below:

(a) 2 and 3 only

(b) 1 and 2 only

(c) 1 and 3 only

(d) 1, 2 and 3

 

6.  Which of the following is the chief characteristic of ‘mixed farming’?

(a) Cultivation of both cash crops and food crops

(b) Cultivation of two or more crops in the same field

(c) Rearing of animals and cultivation of crops together

(d) None of the above

 

7.  Consider the following crops of India:

1. Cowpea

2. Green gram

3. Pigeon pea

Which of the above is/are used as pulse, fodder and green manure?

(a) 1 and 2 only

(b) 2 only

(c) 1 and 3 only

(d) 1, 2, and 3

 

8.  Consider the following crops of India:

1. Groundnut

2. Sesamum

3. Pearl millet

Which of the above is/are predominantly rainfed crop/crops?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 3 only

(d) 1, 2, and 3

 

9.  Consider the following kinds of organisms:

1. Bacteria

2. Fungi

3. Flowering plants

Some species of which of the above kinds of organisms are employed as bio-pesticides?

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

 

10. What is/are the recent policy initiative(s) of Government of India to promote the growth of manufacturing sector?

1. Setting up of National Investment and Manufacturing zones

2. Providing the benefit of ‘single window clearance’

3. Establishing the Technology Acquisition and Development Fund.

 Select the correct answer using the codes given below:

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

 

11. In India, in the overall Index of Industrial Production, the Indices of Eight Core Industries have a combined weight of 37.90%. Which of the following are among those Eight Core Industries?

1. Cement

2. Fertilizers

3. Natural gas

4. Refinery products

5. Textiles

Select the correct answer using the codes given below:

(a) 1 and 5 only

(b) 2, 3, and 4 only

(c) 1, 2, 3 and 4 only

(d) 1, 2, 3, 4 and 5

 

12  Despite having large reserves of coal, why does India import millions of tonnes of coal?

  1. It is the policy of India to save its own coal reserves for future, and import it from other countries for the present use.

  2. Most of the power plants in India are coal-based and they are not able to get sufficient supplies of coal from within the country.

  3. Steel companies need large quantity of coking coal which has to be imported.

 Which of the statements given above is/are correct?

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2, and 3

 

13. Under which of the following circumstances may ‘capital gains’ arise?

  1. When three is an increase in the sales of a product

  2. When three is a natural increase in the value of the property owned

  3. When you purchase a painting and there is a growth in its value due to increase in its popularity.

 Select the correct answer using the codes given below:

(a) 1 only

(b) 2 and 3 only

(c) 2 only

(d) 1, 2 and 3

 

14. Consider the following specific stages of demographic transition associated with economic development:

1. Low birth rate with low death rate

2. High birth rate with high death rate

3. High birth rate with low death rate

Select the correct order of the above stages using the codes given below:

(a) 1, 2, 3

(b) 2, 1, 3

(c) 2, 3, 1

(d) 3, 2, 1

 

15. The Multi-dimensional Poverty Index developed by Oxford Poverty and Human Development Initiative with UNDP support covers which of the following?

  1. Deprivation of education, health, assets and services at household level

  2. Purchasing power parity at national level

  3. Extent of budget deficit and GDP growth rate at national level.

 Select the correct answer using the codes given below:

(a) 1only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

 

16. How does the National Rural Livelihood Mission seek to improve livelihood options of rural poor?

  1. By setting up a large number of new manufacturing industries and agribusiness centres in rural areas.

  2. By strengthening ‘self-help groups’ and providing skill development

  3. By supplying seeds, fertilizers, diesel pump-sets and micro-irrigation equipment free of cost to farmers.

Select the correct answer using the codes given below:

(a) 1 and 2 only

(b) 2 only

(c) 1 and 3 only

(d) 1, 2 and 3

 

17.  The endeavour of ‘Janani Suraksha Yojana’ Programme is

  1. To promote institutional deliveries

  2. To provide monetary assistance to the mother to meet the cost of delivery

  3. To provide for wage loss due to pregnancy and confinement.

 which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 only

(c) 3 only

(d) 1, 2 and 3

18.   Consider the following:

1. Hotels and restaurants

2. Motor transport undertakings

3. Newspaper establishments

4. Private medical institutions

The employees of which of the above can have the ‘Social Security’ coverage under Employees’ State Insurance Scheme?

(a) 1, 2 and 3 only

(b) 4 only

(c) 1, 3 and 4 only

(d) 1, 2, 3 and 4

 

19. With reference to National Rural Health Mission, which of the following are the jobs of ‘ASHA’, a trained, community health worker?

1. Accompanying women to the health facility for antenatal care check-up

2. Using pregnancy test kits for early detection of pregnancy

3. Providing information on nutrition and immunization

4. Conducting the delivery of baby

Select the correct answer using the codes given below:

(a) 1, 2 and 3 only

(b) 2 and 4 only

(c) 1 and 3 only

(d) 1, 2, 3 and 4

 

2011

Total Number of  Questions asked from Economy 26/100:

Total Marks allotted to Economy is 52 Marks / 200 Total Marks.

 

1.In terms of economy, the visit by foreign nationals to witness the XIX Common Wealth Games in India amounted to

(a)Export

(b) Import

(c) Production

(d) Consumption

 

2.Consider the following actions which of the Government can take:

1.Devaluing the domestic currency.

2.Reduction in the export subsidy

3.Adopting suitable policies which greater FDI and more funds from F??s.

Which of the above action/actions can help in reducing the current account deficit?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 3 only

(d) 1 and 3 only

 

3.A “closed economy” is an economy in which

(a) The money supply is fully controlled

(b) Deficit financing takes place

(c) Only exports take place

(d) Neither exports nor imports take place

 

4. Both Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. Which one of the following statements best represents an important difference between the two?

(a)FII helps bring better management skills and technology, while FDI only brings in capital.

(b)FII helps in increasing capital availability in general, while FDI only targets specific sectors.

(c)FDI flows only into the secondary market, while FII targets primary market

(d)FII is considered to be more stable than FDI

 

5.Regarding the International Monetary Fund, which one of the following statements is correct?

(a)It can grant loans to any country

(b)It can grant loans to only developed countries

(c)It grants loans to only member countries

(d)It can grant loans to the central bank of a country

 

6.Why is the offering of ‘teaser loans” by commercial banks a cause of economic concern?

  1. The teaser loans are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future.

  2. In India, the teaser loans are mostly given to inexperienced entrepreneurs to set up manufacturing or export units.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

 

7. In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities?

(a) Commercial Banks

(b) Cooperative Banks

(c) Regional Rural Banks

(d) Microfinance Institutions.

 

8. The lowering of Bank Rate by the Reserve Bank of India leads to

(a) More liquidity in the market

(b) Less liquidity in the market

(c) No change in the liquidity in the market

(d) Mobilisation of more deposits by commercial banks

 

9.Which one of the following statements appropriately describes the ‘fiscal stimulus”?

  1. It is a massive investment by the Government in manufacturing sector to ensure the supply of goods to meet the demand surge caused by rapid economic growth

  2. It is an intense affirmative action of the Government to boost economic activity in the country.

  3. It is Government’s intensive action on financial institutions to ensure disbursement of loans to agriculture and allied sectors to promote greater food production and contain food inflation.

  4. It is an extreme affirmative action by the Government to pursue its policy of financial inclusion.

 

  1.  Which one of the following is not a feature of Value Added Tax?

    1. It is a multi-point destination-based system of taxation

    2. It is a tax levied on value addition at each stage of transaction in the production-distribution chain

    3. It is a tax on the final consumption of goods or services and must ultimately be borne by the consumer.

    4. It is basically a subject of the Central Government and the State governments are only a facilitator for its successful implementation.

 

11. Micro finance is the provision of financial services to people of low-income groups. This includes both the consumers and the self-employed. The service/services rendered under micro-finance is/are:

1. Credit facilities

2. Savings facilities

3. Insurance facilities

4. Fund Transfer facilities

 Select the correct answer using the codes given below the lists:

(a) 1 only

(b) 1 and 4 only

(c) 2 and 3 only

(d) 1, 2, 3 and 4

 

12. India has experienced persistent and high food inflation in the recent past. What could be the reasons?

 

  1. Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30%

  2. As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change.

  3. The food supply chain has structural constraints.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

 

13. With what purpose is the Government of Indian promoting the concept of Mega Food Parks?

  1. To provide good infrastructure facilities for the food processing industry.

  2. To increase the processing of the perishable items and reduce wastage.

  3. To provide emerging and eco-friendly food processing technologies to entrepreneurs.

Select the correct answer using the codes given below:

(a) 1 only

(b) 1 and 2 only

(c) 2 and 3 only

(d) 1, 2 and 3

 

14.  With reference to micro-irrigation, which of the following statements is/are correct?

1. Fertilizer/nutrient loss can be reduced.

2. It is the only means of irrigation in dry land farming.

3. In some areas of farming, receding of ground water table can be checked.

 Select the correct answer using the codes given below:

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

 

15. Among the following States, which one has the most suitable climatic conditions for the cultivation of a large variety of orchids with minimum cost of production, and can develop an export oriented industry in this field?

(a) Andhra Pradesh

(b) Arunachal Pradesh

(c) Madhya Pradesh

(d) Uttar Pradesh

 

16. Salinization occurs when the irrigation water accumulated in the soil evaporates, leaving behind salts and minerals. What are the effects of salinization on the irrigated land?

(a) It greatly increases the crop production

(b) It makes some soils impermeable

(c) It raises the water table

(d) It fills the air spaces in the soil with water

 

17. The lower Gangetic plain is characterized by humid climate with high temperature throughout the year. Which one among the following pairs of crops is the most suitable for this region?

 

(a)Paddy and cotton

(b) Wheat and Jute

(c) Paddy and Jute

(d) Wheat and cotton

 

18. A rapid increase in the rate of inflation is sometimes attributed to the base effect. What is base effect?

  1. It is the impact of drastic deficiency in supply due to the impact of crops

  2. It is the impact of the surge in demand due to rapid economic growth

  3. It is the impact of the price levels of previous year on the calculation of inflation rate.

  4. None of the statements (a), (b) and (c) given above ids correct in this context.

 

19. Economic growth is usually coupled with

(a) Deflation

(b) Inflation

(c) Stagflation

(d) Hyperinflation

 

20.  In the context of Indian economy, consider the following statements.

  1. The growth rate of GDP has steadily increased in the last five years

  2. The growth rate in per capita income has steadily increased in the last five years

Which of the statements given is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

 

21. Which of the following can aid in furthering the Government’s objective of inclusive growth?

1. Promoting Self-Help Groups

2. Promoting Micro, Small & Medium Enterprises

3. Implementing the Right to Education Act

Select the correct answer using the codes given below:

(a) 1 only

(b) 1 and 2 only

(c) 2 and 3 only

(d) 1, 2 and 3

 

22. Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs)?

  1. 1.The Government intends to use the revenue earned from the disinvestment mainly to pay back the external debt.

  2. 2.The Government no longer intends to retain the management control of the CPSEs.

 Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

 

23. In the context of global oil prices, “Brent crude oil” is frequently referred to in the news. What does this term imply?

1.It is a major classification of crude oil.

2. It is sourced from North Sea.

3. It does not contain sulphur.

Which of the statements given above is/are correct?

(a) 2 only

(b) 1 and 2 only

(c) 1 and 3 only

(d) 1, 2, and 3

 

24.  India is regarded as a country with Demographic Dividend. This is due to

(a) Its high population in the age group below 15 years.

(b) Its high population in the age group of 15-64 years.

(c) Its high population in the age group above 65 years

(d) Its high total population

 

25.  With reference to AamAdmiBima Yojana. Consider the following statements:

  1. The member insured under the scheme must be the head of the family or an earning member of the family in a rural landless house-hold.

  2. The member insured must be in the age group of 30 to 65 years

  3. 3.There is a provision for free scholarship for up to two children of the insured who are studying between classes 9 and 12.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

 

26. Among the following who are eligible to benefit from the Mahatma Gandhi National Rural Employment Guarantee Act?

(a) Adult members of only the scheduled case and scheduled tribe households

(b) Adult member of below poverty line (BPL) households

(c) Adult members of households of all backward communities

(d) Adult members of any household

Last 8 Year Mains Question asked from Economy Subject (Year Wise)

2018

Total Questions  asked  9 /20: 3 Qs. of 15 Marks, 6 Qs. of 10 Marks.

Total Marks allotted to Economy is 105 Marks / 250 Total Marks.

Q. 1 

 “Access to affordable, reliable, sustainable and modern energy is the sine qua non to achieve Sustainable Development Goals (SDGs)”.Comment on the progress made in India in this regard.

(150 Words, 10 Marks)

Q. 2 

Comment on the important changes introduced in respect of the Long term Capital Gains Tax (LCGT) and Dividend Distribution Tax (DDT) in the Union Budget for 2018-2019.

(150 Words, 10 Marks)

Q. 3 

What do you mean by Minimum Support Price (MSP)? How will MSP rescue the farmers from the low-income trap?

(150 Words, 10 Marks)

Q. 4 

Examine the role of supermarkets in supply chain management of fruits, vegetables and food items. How do they eliminate number of intermediaries?

(150 Words, 10 Marks)

Q. 5 

The China Pakistan Economic Corridor (CPEC) is viewed as a cardinal subset of China’s larger ‘One Belt One Road’ initiative. Give a brief description of CPEC and enumerate the reasons why India has distanced itself from the same.

(150 Words, 10 Marks)

Q. 6 

Left Wing Extremism (LWE) is showing a downward trend, but still affects many parts of the country. Briefly explain the Government of India’s approach to counter the challenges posed by LWE.

(150 Words, 10 Marks)

Q. 7 

How are the principles followed by NITI Aayog different from those followed by the erstwhile planning commission in India?

(250 Words, 15 Marks)

Q. 8 

How would the recent phenomena of protectionism and currency manipulations in world trade affect macroeconomic stability of India?

(250 Words, 15 Marks)

Q. 9 

Assess the role of National Horticulture Mission (NHM) in boosting the production, productivity and income of horticulture farms. How far has it succeeded in increasing the income of farmers?

(250 Words, 15 Marks)

2017

Total Questions asked  9 /20: 4 Qs. of 15 Marks, 5 Qs. of 10 Marks.

Total Marks allotted to Economy is 110 Marks / 250 Total Marks.

 

Q. 1 

Among several factors for India’s potential growth, savings rate is the most effective one. Do you agree? What are the other factors available for growth potential?

( 150 words, MARKS 10)

Q. 2 

Account for the failure of manufacturing sector in achieving the goal of labour-intensive exports rather than capital-intensive exports. Suggest measures for more labour-intensive rather than capital-intensive exports.

( 150 words, MARKS 10)

Q. 3 

Explain various types of revolutions, took place in Agriculture after Independence in India. How these revolutions have helped in poverty alleviation and food security in India?

( 150 words, MARKS 10)

Q. 4 

What are the reasons for poor acceptance of cost effective small processing unit? How the food processing unit will be helpful to uplift the socio-economic status of poor farmers?

( 150 words, MARKS 10)

Q. 5 

India has achieved remarkable successes in unmanned space missions including the Chandrayaan and Mars Orbitter Mission, but has not ventured into manned space mission, both in terms of technology and logistics? Explain critically

( 150 words, MARKS 10)

Q. 6 

One of the intended objectives of Union Budget 2017-18 is to ‘transform, energize and clean India’. Analyse the measures proposed in the Budget 2017-18 to achieve the objective.

( 250 words, MARKS 15)

Q. 7 

 “Industrial growth rate has lagged behind in the overall growth of Gross-Domestic-Product(GDP) in the post-reform period” Give reasons. How far the recent changes is Industrial Policy are capable of increasing the industrial growth rate?

( 250 words, MARKS 15)

Q. 8 

What are the salient features of ‘inclusive growth’? Has India been experiencing such a growth process? Analyze and suggest measures for inclusive growth.

( 250 words, MARKS 15)

Q. 9 

How do subsidies affect the cropping pattern, crop diversity and economy of farmers? What is the significance of crop insurance, minimum support price and food processing for small and marginal farmers?

( 250 words, MARKS 15)

2016

Total Questions asked 10 / 20: 10 Qs. of 12.5 Marks, 0 Qs. of 10 Marks.

Total Marks allotted to Economy is 125 Marks / 250 Total Marks.

Q. 1 

How globalization has led to the reduction of employment in the formal sector of the Indian economy? Is increased informalization detrimental to the development of the country?

(200 Words, 12.5 Marks)

Q. 2 

Women empowerment in India needs gender budgeting. What are the requirements and status of gender budgeting in the Indian context?

(200 Words, 12.5 Marks)

Q. 3 

Pradhan Mantri Jan-Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional finance fold. Do you agree with this for financial inclusion of the poorer section of the Indian society? Give arguments to justify your opinion.

(200 Words, 12.5 Marks)

Q. 4 

What are ‘Smart Cities’? Examine their relevance for urban development in India. Will it increase rural- urban differences? Give arguments for ‘Smart Villages’ the light of PURA and RURBAN Mission.

(200 Words, 12.5 Marks)

Q. 5 

Justify the need for FDI for the development of the Indian economy. Why there is gap between MOUs signed and actual FDIs? Suggest remedial steps to be taken for increasing actual FDIs in India.

(200 Words, 12.5 Marks)

Q. 6 

Comment on the Challenges for inclusive growth which include careless and useless manpower in the Indian context. Suggest measures to be taken for facing these challenges.

(200 Words, 12.5 Marks)

Q. 7 

What is water-use efficiency? Describe the role of micro-irrigation in increasing the water use efficiency.

(200 Words, 12.5 Marks)

Q. 8 

What is allelopathy? Discuss its role in major cropping systems of irrigated agriculture.

(200 Words, 12.5 Marks)

 

Q. 9 

Discuss the role of land reforms in agricultural development. Identify the factors that were responsible for the success of land reforms in India.

 

(200 Words, 12.5 Marks)

Q. 10 

Given the vulnerability of Indian agriculture to vagaries of nature, discuss the need for crop insurance and bring out the salient features of the Pradhan Mantri FasalBima Yojana (PMFBY).

 

(200 Words, 12.5 Marks)

 

2015

Total Questions asked 10 / 20: 10 Qs. of 12.5 Marks, 0 Qs. of 10 Marks.

Total Marks allotted to Economy is 125 Marks / 250 Total Marks.

 

Q. 1 

The nature of economic growth in India in recent times is often described as jobless growth. Do you agree with this view? Give arguments in favour of your answer.

(200 Words, 12.5 Marks)

Q. 2 

Livestock rearing has a big potential for providing non-farm employment and income in rural areas. Discuss suggesting suitable measures to promote this sector in India.

(200 Words, 12.5 Marks)

Q. 3 

In view of the declining average size of land holdings in India which has made agriculture non-viable for a majority of farmers, should contract farming and land leasing be promoted in agriculture? Critically evaluate the pros and cons.

(200 Words, 12.5 Marks)

Q. 4 

How can the ‘Digital India’ programme help farmers to improve farm productivity and income? What steps has the Government taken in this regard?

(200 Words, 12.5 Marks)

Q. 5 

In what way could replacement of price subsidy with Direct Benefit Transfer (DBT) change the scenario of subsidies in India? Discuss.

 

(200 Words, 12.5 Marks)

Q. 6 

What are the impediments in marketing and supply chain management in developing the food processing industry in India? Can e-commerce help in overcoming these bottlenecks?

(200 Words, 12.5 Marks)

Q. 7 

Craze for gold in Indians has led to a surge in import of gold in recent years and put pressure on balance of payments and external value of rupee. In view of this, examine the merits of the Gold Monetization Scheme.

(200 Words, 12.5 Marks)

Q. 8 

 “Success of ‘Make in India’ programme depends on the success of ‘Skill India’ programme and radical labour reforms.” Discuss with logical arguments.

(200 Words, 12.5 Marks)

Q. 9 

To what factors can the recent dramatic fall in equipment costs and tariff of solar energy be attributed? What implications does the trend have for the thermal power producers and the related industry?

(200 Words, 12.5 Marks)

Q. 10 

There is a clear acknowledgement that Special Economic Zones (SEZs) are a tool of industrial development, manufacturing and exports. Recognizing this potential, the whole instrumentality of SEZs requires augmentation. Discuss the issues plaguing the success of SEZs with respect to taxation, governing laws and administration.

 

(200 Words, 12.5 Marks)

2014

Total Questions asked 9 / 20: 9 Qs. of 12.5 Marks, 0 Qs. of 10 Marks.

Total Marks allotted to Economy is 112.5 Marks / 250 Total Marks.

Q. 1 

Normally countries shift from agriculture to industry and then later to services, but India shifted directly from agriculture to services. What are the reasons for the huge growth of services vis-à-vis industry in the country? Can India become a developed country without a strong industrial base?

(200 Words, 12.5 Marks)

Q. 2 

 “While we flaunt India’s demographic dividend, we ignore the dropping rates of employability.” What are we missing while doing so? Where will the jobs that India desperately needs come from? Explain.

(200 Words, 12.5 Marks)

Q. 3 

There is also a point of view that Agricultural Produce Market Committees (APMCs) set up under the States Acts have not only impeded the development of agriculture but also have been the cause of food inflation in India. Critically examine.

(200 Words, 12.5 Marks)

Q. 4 

 “In the villages itself no form of credit organisation will be suitable except the cooperative society” – All India Rural Credit Survey.

Discuss this statement in the background of agricultural finance in India. What constraints and challenges do financial institutions supplying agricultural finance face? How can technology be used to better reach and serve rural clients?

(200 Words, 12.5 Marks)

Q. 5 

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 has come into effect from 1st January, 2014. What are the key issues which would get addressed with the Act in place? What implications would it have on industrialization and agriculture in India?

(200 Words, 12.5 Marks)

Q. 6 

Capitalism has guided a world economy to unprecedented prosperity. However, it often encourages short sightedness and contributes to wide disparities between the rich and the poor. In this light, would it be correct to believe and adopt capitalism for bringing inclusive growth in India? Discuss.

(200 Words, 12.5 Marks)

Q. 7 

Explain how public-private partnership arrangements, in long gestation infrastructure projects, can transfer unsustainable liabilities to the future. What arrangements need to be put in place to ensure that successive generations’ capacities are not compromised?

(200 Words, 12.5 Marks)

Q. 8 

National Urban Transport Policy emphasizes on ‘moving people’ instead of ‘moving vehicles’. Discuss critically the success of the various strategies of the government in this regard.

(200 Words, 12.5 Marks)

Q. 9 

Foreign Direct Investment (FDI) in the defence sector is now set to be liberalized. What influence this is expected to have on Indian defence and economy in the short and long run?

(200 Words, 12.5 Marks)

2013

Total Questions asked 12 / 25: 0 Qs. of 12.5 Marks, 12 Qs. of 10 Marks.

Total Marks allotted to Economy is 120 Marks / 250 Total Marks.

 

Q. 1 

With a consideration towards the strategy of inclusive growth, the new Companies Bill, 2013 has indirectly made CSR a mandatory obligation. Discuss the challenges expected in its implementation in right earnest. Also discuss other provisions in the Bill and their implications.

(200 Words, 10 Marks)

Q. 2 

What were the reasons for the introduction of Fiscal Responsibility and Budget Management (FRBM) Act, 2003? Discuss critically its salient features and their effectiveness.

(200 Words, 10 Marks)

Q. 3 

What is the meaning of the term ‘tax expenditure’? Taking housing sector as an example, discuss how it influences the budgetary policies of the government.

(200 Words, 10 Marks)

Q. 4 

Food Security Bill is expected to eliminate hunger and malnutrition in India. Critically discuss various apprehensions in its effective implementation along with the concerns it has generated in WTO. (200 words)

(200 Words, 10 Marks)

Q. 5 

What are the different types of agricultural subsidies given to farmers at the national and at state levels? Critically analyse the agricultural subsidy regime with reference to the distortions created by it. (200 words)

(200 Words, 10 Marks)

Q. 6 

India needs to strengthen measures to promote the pink revolution in food industry for ensuring better nutrition and health. Critically elucidate the statement.

(200 Words, 10 Marks)

Q. 7 

Examine the impact of liberalization on companies owned by Indians. Are they competing with the MNCs satisfactorily? Discuss.

(200 Words, 10 Marks)

Q. 8 

Establish relationship between land reforms, agriculture productivity and elimination of poverty in the Indian economy. Discuss the difficulties in designing and implementation of agriculture friendly land reforms in India.

(200 Words, 10 Marks)

Q. 9 

 (a) Discuss the impact of FDI entry into Multi-trade retail sector on supply chain management in commodity trade pattern of the economy.

(100 Words, 5 Marks)

(b) Though India allowed Foreign Direct Investment (FDI) in what is called multi-brand retail through the joint venture route in September 2012, the FDI, even after a year, has not picked up. Discuss the reasons.

(100 Words, 5 Marks)

Q. 10 

Discuss the rationale for introducing Goods and Services Tax (GST) in India. Bring out critically the reasons for the delay in roll out for its regime.

(200 Words, 10 Marks)

Q. 11 

Write a note on India’s green energy corridor to alleviate the problem of conventional energy.

(200 Words, 10 Marks)

Q. 12 

Adoption of PPP model for infrastructure development of the country has not been free of criticism. Critically discuss pros and cons of the model.

(200 Words, 10 Marks)

 

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