SAMVEG IAS’30Day Plan for UKPCS Prelims2016 test (Day18);economic

SAMVEG IAS’30Day Plan for UKPCS Prelims2016 test (Day18);economic

Q1 The main reason for low growth rate in India, inspite of high rate of savings and capital formation is

(a) high birth rate

(b) low level of foreign and

(c) low capital output ratio

(d) high capital output ratio

Q2 One of the important goals of the economic liberalisation policy is to achieve full convertibility ' of the Indian rupee.

This is being advocated because

(a) convertibility of the rupee will stabilize its exchange value against major currencies of the world

(b) it will attract more foreign capital inflow in India

(c) it will help to promote exports

(d) it will help India secure loans from the world financial markets at attractive terms

Q3 A redistribution of income in a country can be best brought about through:

(a) progressive taxation combined with progressive expenditure

(b) progressive taxation combined with regressive expenditure

(c) regressive taxation combined with regressive, expenditure

(d) regressive taxation combined with progressive expenditure

Q4 In India, inflation is measured by the:

(a) Wholesale Price Index number

(b) Consumers Price Index for urban non-manual

workers

(c)   Consumers Price Index for agricultural workers

(d)   National Income Deflation

Q5. National Income is:

(a)   Net National Product at market price

(b)   Net National Product at factor -cost

(c)   Net Domestic Product at market price

(d)   Net Domestic Product at factor cost

Q6 The Capital Account Convertibility of the Indian Rupee implies:     

(a)   that the Indian Rupee can be exchanged by the authorised dealers for travel

(b)   that the Indian Rupee can be exchanged for anjj major currency for the purpose of trade in gc and services

(c)   that the Indian Rupee can be exchanged for anyl major currency for the purpose of tradingf financial assets

(d)   None of the above

Q7. Assertion (A) : Fiscal deficit is greater than budgetary deficit.

Reason (R) : Fiscal deficit is the borrowing from the reserve Bank of India plus other liabilities of the Government to meet its expenditure.

A)Both A and R true and R is the correct explanation of A

B)Both A and R are true but R is not a correct explanation of A

C)A is true but R is false

D)A is false but R is true

Q8 The most appropriate measure economic growth is its:

(a) Gross Domestic Product of a country's

(b) Net Domestic Product

(c) Net National Product

(d) Per Capita Real Income

Q9 Match List I with List II and select the correct answer using the codes given below the lists:

List-I (Term)

A)Fiscal deficit

B)Budget deficit

C)Revenue deficit

D)Primary deficit

List-II (Explanation)

1.Excess of Total Expenditure over Total Receipts

2.Excess of Revenue Expenditure

3.Excess Total Expenditure over Total Receipts less borrowings

4.Excess of Total Expenditure and interest payments

Q10Consider the following taxes:   

1. Corporation tax     2. Customs duty

3. Wealth tax          4. Excise duty

Which of these is/are indirect taxes?

(a) 1 only                               (b) 2 and 4

(c) land 3                               (d) 2 and 3

Q11. The new series of Wholesale Price index (WP1) released by the Government of India is with reference to the base prices of:

(a)   1981-82                   (b)    1990-91

(c)    1993-94                   (d)   2010-11

Q12 The term National Income represents:  

(a)   gross national product at market prices minus depreciation

(b)   gross national product at market prices minus depreciation plus net factor income from abroad

(c)   gross national product at market prices minus depreciation and indirect taxes plus subsidies

(d)   gross national product at market prices minus net factor income from abroad