ECONOMIC DEVELOPMENT

Q-1. What does RTI stand for?

a) Retail Trade Information

b) Right to information

c) Remedy to Information

d) None of them

Ans. (b) Right to information

Q-2. When was RTI enacted?

a) Oct-05

b) May-06

c) June-05

d) July-06

Ans. (a) Oct-05

Q-3. Which of the following is a private enterprises?

a) Air India

b) Indian Railway

c) All India Radio

d) Sahara Airlines

Ans. (d) Sahara Airlines

Q-4. What is the right to work implementation called in term of act?

a) MRTP

b) WHO

c) NREGA

d) UNESCO

Ans. (c) NREGA

Q-5. In how many districts was the plan ‘Right to Work’ implemented?

a) 299

b) 300

c) 400

d) 500

Ans. (a) 299

Q-6. India has

a) Socialistic economy

b) Gandhi an economy

c) Mixed economy

d) Free economy

Ans. (c) Mixed economy

Q-7. The type of unemployment mostly found in India can be characterized as

a) Structural

b) Frictional

c) Cyclical

d) Disguised

Ans. (d) Disguised

Q-8. India opted for ‘Mixed Economy’ in

a) Framing of the Constitution

b) Second Five Year Plan

c) Industrial Policy of 1948

d) None of these

Ans. (c) Industrial Policy of 1948

Q-9. The contribution of agriculture to India’s economy is

a) Increasing

b) Decreasing

c) Constant

d) None of these

Ans. (b) Decreasing

Q-10. The Structural Adjustment Loan to Support Indian Economy’s leap into a more competitive and efficient environment has been secured from

a) The World Bank

b) Bank of America

c) The Asian Development Bank

d) International Monetary Fund

Ans. (a) the World Bank

 Q-11. Human development index compares countries based on which of the following level of people?

i) Per capita income

ii) Education level

iii) Health status 

iv) Gender ratio

a) A,B,C

b) B,C,D

c) A,C,D

d) All of these

Ans. (a) A, B, C

Q-12. Besides income people want for development.

a) Freedom

b) Security

c) Equal treatment

d) All the above

Ans. (d) Freedom

Q-13. According to the World Development Report 2004, low income countries are those which have per capita income of-

a) $ 900 or less

b) $ 1000 or less

c) $ 825 or less

d) $ 500 or less

Ans. (c) $ 825 or less

Q-14. Per capita income of Sri Lanka in US $ is

a) 4300

b) 4390

c) 4100

d) 4150

Ans. (b) 4390

Q-15. Infant mortality rate per 1000 in Punjab-

a) 40

b) 42

c) 49

d) 57

Ans. (c) 49

Q-16. Countries with per capita income of …………….. Per annum and above are called rich countries-

a) 10066

b) 9000

c) 8000

d) 9500

Ans. (a) 10066

Q-17. Life expectancy age in India is-

a) 50

b) 55

c) 60

d) 64

Ans. (d) 64

Q-18. Life expectancy age in Japan is-

a) 61

b) 63

c) 65

d) 70

Ans. (d) 70

Q-19. HDI rank in the world of Nepal is-

a) 93

b) 63

c) 36

d) 138

Ans. (d) 138

Q-20. HDI rank of India in the world is-

a) 93

b) 126

c) 138

d) 137

Ans. (b) 126

Q-21. Tax on imports is an example of

a) Trade enhancer

b) Trade barrier

c) State regulator

d) None of them

Ans. (b) Trade barrier

Q-22. How can government use a trade barrier?

a) To increase or decrease foreign trade

b) To decide what kinds of goods should come into the country

c) To decided how much of any commodity should come into the country

d) All of them

Ans. (d) All of them

Q-23. What do you mean by Liberalization?

a) Removing barrier or restrictions set up by the government 

b) Adding more barrier to already existing rules and regulations

c) Making alteration in rules and regulations 

d) None of them

Ans. (a) Removing barrier or restrictions set up by the government 

Q-24. What does WTO stand for?

a) World Telecommunication Operator

b) World Toll Organization 

c) World Trade Organization

d) World Temple Organization

Ans. (c) World Trade Organization

Q-25. What is the aim of WTO?

a) To liberalize international trades

b) To support only the least developed countries

c) To promote trade only in developed countries

d) All of them

Ans. (a) to liberalize international trades

Q-26. How many countries are member of WTO?

a) 130

b) 149

c) 150

d) 206

Ans. (b) 149

Q-27. At the time of counting, what value of goods is considered?

a) Value of raw material

b) Value of minerals

c) Value of chemicals

d) Value of final goods and services

Ans. (d) Value of final goods and services

Q-28. What are international goods?

a) These goods are used up in producing final goods and services

b) These goods are directly exploited from nature

c) These goods are raw materials 

d) None of them

Ans. (a) these goods are used up in producing final goods and services

Q-29. Which of the following is an MNC dealing in medicines?

a) Ranbaxy

b) Asian Paints

c) Tata Motors

d) Infosys

Ans. (a) Ranbaxy

Q-30. The companies which set up production units in the SEZs do not have to pay taxes for an initial period of _________ years.

a) 2

b) 3

c) 4

d) 5

Ans. (d) 5

Q-31. The most important source of capital formation in India has been

a) Household saving 

b) Public sector saving

c) Government revenue surpluses

d) Corporate saving

Ans. (a) household saving 

Q-32. ‘Globalization of Indian Economy’ means

a) Stepping up  external borrowing

b) Establishing Indian business units abroad

c) Having minimum possible restrictions on economic relations with other countries

d) Giving up programmers  of import substitution

Ans. (c) Having minimum possible restrictions on economic relations with other countries

Q-33. Indian economy since independence can be described as

a) As under developed economy

b) An under developed but developing economy

c) A backward economy 

d) A developed economy

Ans. (b) an under developed but developing economy

Q-34. The decentralization system was recommended by 

a) C. Rajagopalachari

b) J.B. Kripalani

c) Balwant Rai Mehta

d) Ashok Mehta

Ans. (c) Balwant Rai Mehta

Q-35. According to Gandhi ji, private property should 

a) Be abolished

b) Remain but have a ceiling

c) Be taken over and distributed more equitably by the state

d) Remain but should be used by the owner as trustees for common good

Ans. (d) Remain but should be used by the owner as trustees for common good

Q-36. In India, the Public Sector is most dominant in

a) Transport 

b) Steel production 

c) Commercial banking 

d) Organized term-lending financial institutions

Ans. (c) Commercial banking 

Q-37. Goa’s economy is mainly based on

a) Tourism

b) Export of ores

c) Agriculture

d) None of these

Ans.  (b) Export of ores

Q-38. The earliest cooperative societies formed in India were 

a) Housing societies

b) Marketing societies

c) Credit societies

d) Farming societies

Ans. (c) Credit societies

Q-39. India’s wage policy is based on

a) Cost of living

b) Standard of living

c) Productivity

d) None of these

Ans. (a) Cost of living

Q-40. Which of the following organizations has recently rated India as the sixth largest economy in the world?

a) World Bank

b) Asian Development Bank

c) European Economic Community

d) International Monetary Fund

Ans. (d) International Monetary Fund

Q-41. Modern economy is one of

a) Open economy

b) Cash economy

c) Credit economy

d) Planned economy

Ans. (a) Open economy

Q-42. India is experiencing an annual rate of growth of prices which may be characterized as:

a) Suppressed inflation

b) Normal inflation

c) Stagflation

d) Hyper inflation

Ans. (d) hyper inflation

Q-43. Who wrote the book ‘Planned Economy for India’?

a) M. Visvesvaraya

b) Sardar Vllabhbhai Patel

c) Jawaharlal Nehru

d) Mahatma Gandhi

Ans. (a) M. Visvesvaraya

Q-44. In India since Independence

a) The gap between the rich and the poor his been bridged

b) The magnitude of unemployment has decreased 

c) Poverty has been reduced

d) The rate of saving and investment have gone up

Ans. (d) the rate of saving and investment have gone up

Q-45. Which of the following measures is not likely to help in improving India’s balance of payment position?

a) Devaluation of the rupee

b) Encouragement of import substitution

c) Imposition of higher duty on imports

d) Imposition of higher duty on exports

Ans. (d) Imposition of higher duty on exports

Q-46. One of the main factors that led to rapid expansion of Indian exports is

a) Liberalization of the economy

b) Diversification of exports

c) Imposition of import duties

d) Recession in other countries

Ans. (a) Liberalization of the economy

Q-47. Which of the following is correct regarding the Gross Domestic Saving in India? (Assistant Grade, 1992)

a) Contribution of Household sector is the largest 

b) Contribution of Government sector is the largest 

c) Contribution of Corporate sector is the largest 

d) None of these

Ans. (a) Contribution of Household sector is the largest 

Q-48. The main argument advanced in favor of small scale and cottage industries in India is that 

a) Cost of production is low

b) They require small capital investment

c) They advance the goal of equitable distribution of wealth

d) They generate a large volume of employment

Ans. (d) they generate a large volume of employment

Q-49. Which is the least achieved objective of India’s Five Year Plans?

a) Reduction in disparities of wealth and income 

b) Progress in basic & key industries

c) Education for all

d) Removal of mass poverty

Ans. (d) Removal of mass poverty

Q-50. India’s share in the World Tourist market is

a) Less than 1%

b) Between 1% and 2%

c) More than 2% but less than 3%

d) Slightly more than 3%

Ans. (a) Less than 1%

Q-51. Which of the following governmental steps has proved relatively effective in controlling the double digit rate of inflation in the Indian economy during recent unproductive 

a) Containing budgetary deficits and unproductive expenditure

b) Streamlined public distribution system

c) Enhanced rate of production of all consumer goods

d) Pursuing an export-oriented strategy

Ans. (a) Containing budgetary deficits and unproductive expenditure

Q-52. India’s progress has been reasonably satisfactory in connection with

a) Growth of per capita income

b) Reduction in Inequalities

c) Reduction of unemployment

d) Growth of GNP

Ans. (d) Growth of GNP

Q-53. The most serious economic problems of India are

a) Poverty and unemployment 

b) Stagnation, not poverty

c) Unemployment, not poverty

d) Underdevelopment, not poverty

Ans. (a) Poverty and unemployment 

Q-54. The central banking functions in India are performed by the

I. Central Bank of India

II. Reserve Bank of India

III. State Bank of India

IV. Punjab National Bank

a) I, II

b) II

c) I

d) II, III

Ans. (b) II

Q-55. Development expenditure of the Central government does not include

a) Defense expenditure

b) Expenditure on economic services

c) Expenditure on social community services

d) Grant to states

Ans. (a) Defense expenditure

Q-56. ICICI is the name of a

a) Chemical industry

b) Bureau

c) Corporation

d) Financial institution

Ans. (d) financial institution

Q-57. Gilt-edged market means

a) Bullion market

b) Market of government securities

c) Market of guns

d) Market of pure metals

Ans. (b) Market of government securities

Q-58. In the last one decade, which one among the following sector has attracted the highest foreign direct investment inflows into India?

a) Chemical other than fertilizers

b) Services sector

c) Food processing

d) Telecommunication

Ans. (d) Telecommunication

Q-59. In the second nationalization of commercial bank, _______ banks were nationalized.

a) 4

b) 5

c) 6

d) 8

Ans. (c) 6

Q-60. Depreciation means

a) Closure of a plant due to lock out

b) Closure of a plant due to labour trouble

c) Loss of equipment over time due to wear and tear

d) Destruction of a plant in a fire accident

Ans. (c) Loss of equipment over time due to wear and tear

Q-61. If all the bank in an economy are nationalized and converted into a monopoly bank, the total deposits

a) Will decrease

b) Will increase 

c) Will nether increase nor decrease

d) None of the above

Ans. (c) Will nether increase nor decrease

Q-62. India changed over to the decimal system of coinage in 

a) April 1995

b) April 1957

c) April 1958

d) April 1959

Ans. (b) April 1957

Q-63. The association of the rupee with pound sterling as the intervention currency was broken in

a) 1990

b) 1991

c) 1992

d) 1993

Ans. (c) 1992

Q-64. Gross domestic capital formation is defined as

a) Flow of expenditure devoted to increased or maintaining of the capital stock

b) Expenditure incurred on physical assets only 

c) Production exceeding demand

d) Net addition to stock after deprecation

Ans. (d) Net addition to stock after deprecation

Q-65. On July 12, 1982, the ARDC was merged into

a) RBI

b) NABARD

c) EXIM Bank

d) None of the above

Ans. (b) NABARD

Q-66. Which of the following is the most appropriate cause of exports surplus?

a) Country’s exports promotion value

b) Country’s stringent import policy

c) Developments in national and international markets

d) None of the above

Ans. (c) Developments in national and international markets

Q-67. If the cash reserve ratio is lowered by the RBI, its impact on credit creation will be to

a) Increase it

b) Decrease it

c) No impact

d) None of the above

Ans. (a) Increase it

Q-68. Which of the following items would not appear in a company’s balance sheet?

a) Value of stock of raw materials held 

b) Total issued capital

c) Revenue from sales of the company’s products 

d) Cash held at the bank

Ans. (c) Revenue from sales of the company’s products 

Q-69. India adopted he five year plans from

a) France 

b) Former USSR

c) America 

d) England

Ans. (d) England

Q-70. India’s first Greenfield Special Economic Zone (SEZ) was set up at 

a) Ahmadabad

b) Bangalore

c) Indore

d) Pune

Ans. (c) Indore