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Indian Economy Previous Year Questions (PYQ) with Answers – Page 25

हिंदी में पढ़ें

Indian Economy questions asked in previous year papers of SSC, Banking, Railway and other exams, with the exam and year, answers and explanations.

580 previous-year questions

All Indian Economy questionsIndian Economy NotesPYQs by exam
Q481.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2018, GS Paper IMedium

With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements : 1. It is the flagship scheme of the Ministry of Labour and Employment. 2. It, among other things, will also impart training in soft skills, entrepreneurship, financial and digital literacy. 3. It aims to align the competencies of the unregulated workforce of the country to the National Skill Qualification Framework. Which of the statements given above is/are correct ?

  1. A.1 and 3 only
  2. B.2 only
  3. C.2 and 3 only
  4. D.1, 2 and 3
Show answer
Correct answer: C. 2 and 3 only

Pradhan Mantri Kaushal Vikas Yojana, launched in 2015, is the flagship skill training scheme of the Ministry of Skill Development and Entrepreneurship, not of the Ministry of Labour and Employment.

Q482.Indian EconomyAsked in: UPSC CAPF · CAPF 2018, Paper IMedium

Multipliers will be lower with which one of the following?

  1. A.High marginal propensity to consume
  2. B.Low marginal propensity to consume
  3. C.High marginal propensity to invest
  4. D.Low marginal propensity to save
Show answer
Correct answer: B. Low marginal propensity to consume

The investment multiplier equals 1 ÷ (1 − MPC), so the smaller the share of extra income people spend, the smaller the multiplier.

Q484.Indian EconomyAsked in: UPSC CAPF · CAPF 2018, Paper IMedium

The Reserve Bank of India defines narrow money as

  1. A.CU (currency notes + coins) + DD (net demand deposits held by commercial banks)
  2. B.CU + DD + saving deposits with post office savings banks
  3. C.CU + DD + net time deposits of commercial banks
  4. D.CU + DD + net time deposits of commercial banks + total deposits of post offices
Show answer
Correct answer: A. CU (currency notes + coins) + DD (net demand deposits held by commercial banks)

Narrow money, M1, is currency held by the public plus net demand deposits with commercial banks, the most liquid forms of money.

Q485.Indian EconomyAsked in: UPSC CAPF · CAPF 2018, Paper IHard

In National Income (NI) accounts, Personal Income (PI) is defined as

  1. A.NI - undistributed profits - net interest payments made by households - corporate tax + transfer payments to the households from the government and firms
  2. B.NI - undistributed profits - corporate tax + transfer payments to the households from the government and firms
  3. C.undistributed profits - net interest payments made by households + transfer payments to the households from the government and firms
  4. D.undistributed profits - net interest payments made by households - corporate tax
Show answer
Correct answer: A. NI - undistributed profits - net interest payments made by households - corporate tax + transfer payments to the households from the government and firms

Personal Income is the part of National Income that actually reaches households, plus the transfers they receive. National Income counts all factor incomes earned in the economy, but not all of it is paid out to people.

Q486.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2018, GS Paper IMedium

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 are issued at a discount from the par value. Which of the statements given above is/are correct ?

  1. A.1 and 2 only
  2. B.3 only
  3. C.2 and 3 only
  4. D.1, 2 and 3
Show answer
Correct answer: C. 2 and 3 only

Only the Centre issues treasury bills and they are sold at a discount, but the RBI also manages state government securities.

Q487.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2018, GS Paper IMedium

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

  1. A.weak administrative machinery
  2. B.illiteracy
  3. C.high population density
  4. D.high capital-output ratio
Show answer
Correct answer: D. high capital-output ratio

When the capital-output ratio is high, a large amount of investment produces only a small rise in output. The capital-output ratio, or incremental capital-output ratio (ICOR), tells how many units of capital are needed to produce one extra unit of output.

Q488.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2018, GS Paper IMedium

Consider the following statements : Human capital formation as a concept is better explained in terms of a process which enables

1. individuals of a country to accumulate more capital.

2. increasing the knowledge, skill levels 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 ?

  1. A.1 and 2
  2. B.2 only
  3. C.2 and 4
  4. D.1, 3 and 4
Show answer
Correct answer: C. 2 and 4

Human capital formation means raising people's knowledge, skills and abilities, which is a form of intangible wealth. Human capital is the stock of education, skill, health and experience that makes people productive.

Q489.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2018, GS Paper IMedium

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

  1. A.industrial output fails to keep pace with agricultural output.
  2. B.agricultural output fails to keep pace with industrial output.
  3. C.poverty and unemployment increase.
  4. D.imports grow faster than exports.
Show answer
Correct answer: C. poverty and unemployment increase.

Economic development means better lives for people, so rising income alone is not development if poverty and joblessness are growing.

Q490.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2018, GS Paper IMedium

If a commodity is provided free to the public by the Government, then

  1. A.the opportunity cost is zero.
  2. B.the opportunity cost is ignored.
  3. C.the opportunity cost is transferred from the consumers of the product to the tax-paying public.
  4. D.the opportunity cost is transferred from the consumers of the product to the Government.
Show answer
Correct answer: C. the opportunity cost is transferred from the consumers of the product to the tax-paying public.

A free good still uses up resources, and taxpayers pay for them. Opportunity cost is the value of the next best alternative given up when resources are used for something.

Q491.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2018, GS Paper IEasy

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

  1. A.The money which is tendered in courts of law to defray the fee of legal cases
  2. B.The money which a creditor is under compulsion to accept in settlement of his claims
  3. C.The bank money in the form of cheques, drafts, bills of exchange, etc.
  4. D.The metallic money in circulation in a country
Show answer
Correct answer: B. The money which a creditor is under compulsion to accept in settlement of his claims

Legal tender is money that the law says must be accepted in payment of a debt. In India, banknotes issued by the Reserve Bank under the RBI Act, 1934 are unlimited legal tender: no one can refuse them for any amount.

Q493.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2018, GS Paper IMedium

Which of the following is/are the aim/aims of "Digital India" Plan of the Government of India?

1. Formation of India's own Internet companies like China did.

2. Establish a policy framework to encourage overseas multinational corporations that collect Big Data to build their large data centres within our national geographical boundaries.

3. Connect many of our villages to the Internet and bring Wi-Fi to many of our schools, public places and major tourist centres.

Select the correct answer using the code given below:

  1. A.1 and 2 only
  2. B.3 only
  3. C.2 and 3 only
  4. D.1, 2 and 3
Show answer
Correct answer: B. 3 only

Connecting villages to the Internet and offering Wi-Fi in schools and public places is part of Digital India; the other two are not its stated aims.

Q495.Indian EconomyAsked in: Madhya Pradesh · 4 Aug 2018, Shift 1Medium

Indirect cost is that cost incurred by the firm which ________.

  1. A.has already been incurred and cannot be avoided
  2. B.can be easily traceable to a product
  3. C.are common to several products
  4. D.are aggregate of variable cost
Show answer
Correct answer: C. are common to several products

Costs are classified as direct or indirect by traceability. A direct cost can be attributed wholly to one product, job or process, such as the raw material in a shirt or the wages of the worker who stitches it.

Q497.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2018, GS Paper IHard

With reference to the provisions made under the National Food Security Act, 2013, consider the following statements :

1. The families coming under the category of 'below poverty line (BPL)' only are eligible to receive subsidised food grains.

2. The eldest woman in a household, of age 18 years or above, shall be the head of the household for the purpose of issuance of a ration card.

3. Pregnant women and lactating mothers are entitled to a 'take-home ration' of 1600 calories per day during pregnancy and for six months thereafter.

Which of the statements given above is/are correct ?

  1. A.1 and 2
  2. B.2 only
  3. C.1 and 3
  4. D.3 only
Show answer
Correct answer: B. 2 only

The Act makes the eldest woman of 18 or above the head of the household for the ration card, but the other two statements misstate it.

Q498.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2018, GS Paper IHard

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 GDP as compared to that of 49% of GDP of the State Governments. 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 statements given above is/are correct?

  1. A.1 only
  2. B.2 and 3 only
  3. C.1 and 3 only
  4. D.1, 2 and 3
Show answer
Correct answer: C. 1 and 3 only

Statement 1 states the FRBM Review Committee's target correctly and statement 3 is Article 293(3), while statement 2 swaps the figures.

Q499.Indian EconomyAsked in: RRB Group D · 16 Oct 2018, Shift 2Medium

The National Mission for Saffron was launched as a sub-scheme under which of the following?

  1. A.Kaushal Vikas Yojana
  2. B.Krishi Vikas Yojana
  3. C.Antyodaya Yojana
  4. D.Gram Jyoti Yojana
Show answer
Correct answer: B. Krishi Vikas Yojana

The National Mission for Saffron, meant to revive saffron cultivation in Jammu and Kashmir through better corms, irrigation and a spice park, runs as a sub-scheme of the Rashtriya Krishi Vikas Yojana, the umbrella fund started in 2007 that lets States plan their own agricultural projects.

Q500.Indian EconomyAsked in: Haryana · 10 Nov 2018, Shift 2Medium

Which among the following countries with which India does not have Free Trade Agreement (FTA) ?

  1. A.South Korea
  2. B.Japan
  3. C.Brazil
  4. D.Thailand
Show answer
Correct answer: C. Brazil

India has no bilateral free trade agreement with Brazil. Its only preferential link with Brazil is through the limited India-MERCOSUR Preferential Trade Agreement, which covers a short list of products at reduced duty and is not a free trade agreement.