Clear UPSC IAS Prelims 2021 through 10000 Expected MCQs: Practice Solved Test 31

Clear UPSC IAS Prelims 2021 through 10000 MCQs: Most Probable Prelims Questions – New PDF Compilations of Important MCQs Also Available for Download. These questions will be highly useful for aspirants preparing as it covers both static and current topics. Clear UPSC IAS Prelims 2021 through 10000 Expected MCQs: Practice Solved Test 31.

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Q1. With reference to tea crop, consider the following statements:

1. Tea was first introduced in India with seeds and plants imported from China.

2. Assam accounts for more than half of the total production of tea in the country.

3. Tea leaves have rich content of caffeine.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 3 only

(d) 1, 2 and 3

Q2. Which among the following taxes have been replaced by Goods and Services Tax (GST)?

1. Central Excise Duty

2. Additional Duty of Customs

3. State VAT

4. Purchase Tax

5. Corporation Tax

6. Security Transactions Tax

Select the correct answer using the code given below:

(a) 1, 5 and 6 only

(b) 2, 3 and 4 only

(c) 1, 3 and 4 only

(d) 1, 2, 3 and 4 only

Q3. Which of the following statements about Product Approach of National Income Accounting is/are correct?

1. The National Income is calculated by adding the value of final goods from all the sectors of an economy during a given accounting year.

2. In this method the value of final and intermediate goods are included.

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

Q4.  The term ‘Lack of Internal democracy’ is sometimes heard in the context of Indian political parties.

The term implies that

1. Power is concentrated at the top and participatory decision-making is largely absent

2. There are no provincial or local branches of the party and workers are drawn from the Central pool only

3. There is no constitutional document for the party.

Which of the above is/are correct?

A. 1 only

B. 2 and 3 only

C. 1 and 3 only

D. 1, 2 and 3

Q5. With reference to the Lorenz Curve, consider the following statements:

1. It represents inequality of Income distribution

2. It cannot rise above the Line of Perfect Equality.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q6. The disinvestment of national carrier- Air India has been in news recently. In this regard consider the following statements:

1. Strategic Disinvestment involves transfer of managerial control to the Private sector.

2. Crossholding of shares is a method used to achieve disinvestment targets.

3. The proceeds from disinvestment are a part of government’s revenue receipt.

Which of the above statements is/are correct?

(a) 3 only

(b) 2 only

(c) 1 and 2 only

(d) 1, 2 and 3

Q7. Which of the following are the major traits of Recession?

1. General fall in demand

2. Fall in employment rate

3. Industries resort to ‘price cuts’

4. Enhancement in the personal disposable income

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2 and 4 only

(c) 3 and 4 only

(d) 1, 2 and 3 only

Q8. Consider the following statements regarding PM- Kisan Scheme:

1. Only those farmers are eligible for the scheme who have cultivable land upto 2 hectares.

2. It is a central sector scheme.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q9. Which of the following is responsible for bringing out the reports on National Income and Per Capita Income in India?

(a) NITI Aayog

(b) Ministry of Human Resource Development

(c) Ministry of Home Affairs

(d) Ministry of Statistic and Programme Implementation

Q10. Multidimensional Poverty Index (MPI) provides a comprehensive picture of global poverty in all its dimensions. In this context, consider the following statements:

1. Both MPI and Human Development Index (HDI) use the same dimensions to assess poverty levels.

2. MPI reflects both the incidence and intensity of poverty.

3. According to a report of United Nations Development Programme (UNDP), India recorded the fastest reduction in MPI values in last decade.

Which of the above statements is/are correct?

(a) 1 only

(b) 1 and 2 only

(c) 2 and 3 only

(d) 1, 2 and 3

Q11. Monopolistic Competition is a:

(a) Market environment wherein all firms produce the same goods.

(b) Market structure where a very large number of sellers sell differentiated products.

(c) Market structure where large number of sellers makes supernormal profits in the long run.

(d) Market in which there is a single seller and there are sufficient restrictions to prevent any other seller from entering the market.

Q12. Consider the following statements regarding the Cash Reserve Ratio (CRR) and the Statutory Liquidity Ratio (SLR):

1. Both CRR and SLR are kept with the Reserve Bank of India.

2. CRR is kept in both cash and non-cash forms, while SLR is kept only in cash form.

Which of the above statements is/are incorrect?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q13. With reference to the Monetary Policy Framework Agreement, consider the following statements:

1. The inflation targets in India are set by Central Government once in every 5 years.

2. The primary objective of monetary policy is price stability.

3. Monetary Policy Committee headed by RBI Governor has no statutory backing.

Which of the above statements is/are correct?

(a) 2 only

(b) 1 and 2 only

(c) 1 and 3 only

(d) 1, 2 and 3

Q14. Injeti Srinivas Committee, seen in news recently, is associated with:

(a) Governance of Public Sector Banks

(b) Police Reforms

(c) Corporate Social Responsibility

(d) Financial Inclusion

Q15. Which of the following curves is largely used by the central banks of developed countries to frame their Monetary Policies?

(a) Lorenz Curve

(b) Phillips Curve

(c) Laffer Curve

(d) Kuznets Curve

Q16. Which of the following statements regarding CSR (Corporate Social Responsibility) in India is/are correct?

1. India is the first country in the world to make CSR expenditure mandatory.

2. Non-compliance to CSR rules is not a punishable offence.

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

Q17. Which of the following statements is/are correct regarding Purchasing Power Parity (PPP)?

1. It compares different currencies of the countries through a “basket of goods” approach.

2. China is the world’s largest economy based on PPP.

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

Q18. Consider the following statements:

1. The main cause of Fiscal Drag is an increase in progressive taxation.

2. The balanced budget is an example of fiscal neutrality.

Which of the above statements is/are incorrect?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q19. “Gross National Product (GNP) = Gross Domestic Product (GDP) – Net Factor Income from Abroad (NFIA)”. Which of the following are the components of ‘Net Factor Income from Abroad’?

1. Private Remittances

2. External Grants

3. Interest on Internal Loans

4. Grants to States

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 3 and 4 only

(c) 1, 2 and 3 only

(d) 2, 3 and 4 only

Q20. What are the possible consequences of increasing the tax rate on the people in an economy?

1. It decreases their personal income.

2. It reduces the per-capita income and Gross Domestic Product (GDP).

3. It reduces the purchasing power of an individual.

4. It increases the investment in the economy.

Select the correct answer using the code given below:

(a) 2 and 3 only

(b) 1 and 4 only

(c) 1, 2 and 3 only

(d) 2, 3 and 4 only

Q21. Consider the following statements about the measurements of Per Capita Income:

1. At the International level, Per Capita Income is calculated on the basis of the Exchange Rate of Currencies.

2. The old method of Per Capita Income calculation was based on the purchasing power of currency.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q22. Recently, World Resources Institute (WRI) along with World Bank, UNEP and UNDP released report titled “World Resources Report: Creating Sustainable Food Future”. According to this report, sustainable food future can be obtained by:

1. Reducing human birth rate

2. Crop breeding through molecular biology

3. Reforestation and Peat land restoration

4. Shift to plant based foods

5. Agricultural Land Expansion

Which of the above statements are correct?

(a) 2 and 5 only

(b) 4 and 5 only

(c) 1, 2, 3 and 4 only

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

Q23. Select the correct statement from the following:

(a) National Income (NI) is equal to Net National Product (NNP) at Market Prices.

(b) Market Cost = Factor Cost + Net Indirect Taxes

(c) Gross Domestic Product (GDP) does not include Government Expenditure.

(d) GDP is the sum of Gross Value Added (GVA) at basic prices which includes subsidies but excludes taxes.

Q24. Consider the following statements regarding Direct Tax Code in India:

1. Direct tax is a type of progressive tax.

2. The Direct Tax Code was drafted by Akhilesh Ranjan task force.

3. A direct tax code can lead to higher tax buoyancy.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) 2 and 3 only

(d) 1, 2 and 3

Q25. Consider the following statements with respect to National Income:

1. It measures the flow of goods and services in an economy.

2. It measures the stock of commodities held by the nationals of a country at a given point of time.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q26. With reference to National Food Security Act, consider the following statements:

1. The Act covers the entire rural population and 50% of urban population.

2. State Governments shall identify the households for its implementation.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q27. Consider the following statements:

1. The bonus brought by inflation to the lending institutions is known as the inflation premium.

2. The interest banks charge on their lending is known as the nominal interest rate.

3. The real interest rate is always lower than the nominal interest rate if the inflation is taking place.

4. Rising inflation premium shows increasing profits of the lending institutions.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 and 3 only

(c) 3 and 4 only

(d) 1 and 4 only

Q28. Consider the following statements regarding coal sector in India:

1. Jharkhand has the maximum coal reserves in India.

2. Coal Mines in India were nationalized after economic reforms of 1991.

3. Coal India Ltd. has been granted Maharatna status by Government of India.

Which of the above statements is/are correct?

(a) 1 only

(b) 1 and 2 only

(c) 1 and 3 only

(d) 3 only

Q29. Which of the following statements about GDP Deflator is/are incorrect?

1. It represents the ratio of GDP at current prices to GDP at constant prices.

2. It covers only fixed basket of goods and services.

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

Q30. Which of the following are the benefits of the Marginal Cost of Funds based Lending Rate (MCLR)?

1. Competition among banks

2. Fair cost of loans

3. Transparency in the computation of interest rates by banks

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Q31. Consider the following statements regarding Per Capita Income (PCI):

1. Higher the rate of depreciation, lower the PCI of the nation.

2. The slope of the Lorenz Curve is inversely proportional to PCI at each point of the population distribution.

Which of the above statements is/are incorrect?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q32. With reference to the National Commission on Farmers Report on land reforms, consider the following statements:

1. It recommended to prevent diversion of prime agricultural land and forest to corporate sector for non-agricultural purpose.

2. The commission was chaired by M.S. Swaminathan.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q33. Which of the following can be described as ‘Factors of Production’?

1. Land

2. Tools & machines

3. Skilled professionals

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 and 3

Q34. With reference to the fisheries sector in India, consider the following statements:

1. India is the second largest producer of fish in the world.

2. The draft Marine Fisheries Regulation and Management Bill, 2019 deals with only large fish vessels.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q35. Which of the following indices are released by Central Statistical Organization?

1. Consumer Price Index (CPI)

2. Wholesale Price Index (WPI)

3. Index of Industrial Production (IIP)

Select the correct answer using the code given below:

(a) 3 only

(b) 2 and 3 only

(c) 1 and 2 only

(d) 1 and 3 only

Q36. What are the causes of the Middle Income Trap?

1. Productivity-driven growth

2. Situation of Stagnation in the economy

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

Q37. How is the Real GDP different from the Nominal GDP?

1. Real GDP is equal to the economic output adjusted for the effects of inflation whereas Nominal GDP is economic output without the inflation adjustment.

2. Nominal GDP is usually higher than Real GDP.

Which of the above statements is/are incorrect?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q38. With reference to Paramparagat Krishi Vikas Yojana, consider the following statements:

1. It is a sub-component of Soil Health Management scheme.

2. It primarily aims to increase soil fertility through application of agro-chemicals.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q39. With reference to “Washington Consensus”, consider the following statements:

1. It enhanced the role of the State in an economy.

2. It gave birth to Liberalization, Privatization, and Globalization (LPG).

3. It had acted as an alternative to the World Bank and International Monetary Fund (IMF) in providing funds during the Balance of Payment (BoP) Crisis.

Which of the above statements is/are incorrect?

(a) 1 only

(b) 1 and 3 only

(c) 3 and 2 only

(d) 1 and 2 only

Q40. Which of the following reports/indices are released by the Central Statistical Office (CSO)?

1. Infrastructure Statistics

2. Gender Statistics

3. Crop statistics

4. Energy Statistics

Select the correct answer using the code given below:

(a) 1, 2 and 4 only

(b) 2 and 3 only

(c) 3 and 4 only

(d) 1, 2, 3 and 4

Q41. Consider the following statements regarding the growth of the Indian Economy:

1. Indian economy shifted from an Agrarian to Service sector directly like developed countries.

2. An economy where majority of the produced value comes from tertiary section is known as the service economy.

Which of the above statements is/are incorrect?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q42. Which of the following statements is/are incorrect pertaining to the e-way bill system?

1. Transporter of the goods can generate the e-way bill.

2. The e-way bill is required for the transportation of all goods except for handicraft goods.

3. Its validity depends upon the distance the goods have to be transported.

Select the correct answer using the code given below:

(a) 2 only

(b) 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Q43. The inclusive growth focuses on:

(a) Enhancement of education opportunities

(b) Reduction of poverty among backward castes

(c) Diversifying livelihood for tribal population

(d) All of the above

Q44. Consider the following statements regarding the Marginal Standing Facility (MSF) Rate:

1. It is a rate at which banks can borrow from the Reserve Bank of India in a situation of liquidity shortfall.

2. MSF is available for commercial banks as well as co-operative banks.

3. MSF rate is lower than Liquidity Adjustment Facility (LAF).

Which of the above statements is/are correct?

(a) 1 only

(b) 3 only

(c) 1 and 2 only

(d) 1, 2 and 3

Q45. Consider the following statements:

1. Growth recession is when an economy is growing at such a slow pace that more jobs are being lost than are being added.

2. A double-dip recession refers to a recession followed by a short-lived recovery, followed by another recession.

3. During Recovery period of an economy, demand peaks up to such a high level that it exceeds sustainable production levels.

Which of the above statements is/are incorrect?

(a) 1 only

(b) 2 only

(c) 3 only

(d) 2 and 3 only

Q46. With reference to the SWIFT norms, consider the following statements:

1. It aims to provide services around financial crime compliance like Know Your Customer.

2. It is a secure financial message carrier through a standardized system of codes.

Which of the above statements is/are incorrect?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q47. Which of the following are the characteristics of a Capitalist Economy?

1. A Market determined price system

2. Competitive markets

3. Ownership of factors of production by the State

Select the correct answer using the code given below:

(a) 1 and 3 only

(b) 1 and 2 only

(c) 2 and 3 only

(d) 1, 2 and 3

Q48. What steps have been taken by the Government to promote the fiscal consolidation in India?

1. Reduce borrowings from the market.

2. The imposition of Goods and Service Tax (GST)

3. Purchase of foreign high-quality sovereign bonds

4. Interest cut on the Provident Fund (PF)

Select the correct answer using the code given below:

(a) 2 and 3 only

(b) 3 and 4 only

(c) 1 and 3 only

(d) 1, 2, 3 and 4

Q49. Which of the following statements is/are incorrect?

1. World Development Report is published by the World Trade Organization (WTO).

2. GNP is used by the IMF and World Bank in the comparative analysis of the member nations.

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

Q50. Which of the following dimensions are incorporated in Evergreen Revolution?

(a) Better crops

(b) Better soil health and fertility

(c) Use of biological controls methods

(d) All of the above

Q51. Consider the following statements regarding GDP:

1. It does not include externalities such as pollution.

2. It is both a qualitative and a quantitative concept.

3. Salaries earned by foreign employees in Mumbai are included in India’s GDP.

4. Salaries earned by Indian employees in London are not included in India’s GDP.

Which of the above statements are correct?

(a) 1, 2 and 3 only

(b) 2, 3 and 4 only

(c) 1 and 2 only

(d) 1, 3 and 4 only

Q52. With reference to the Capital Gains Tax, consider the following statements:

1. It is a direct tax derived from profit of the sale of a movable and non-movable capital asset.

2. It is applicable to only those assets which are available for the sale only.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q53. In the context of Net Domestic Product (NDP), which among the following statements is correct?

(a) NDP = GDP + Depreciation

(b) NDP = GDP – Depreciation

(c) Depreciation Rates are announced by RBI.

(d) NDP is higher than GDP

Q54. Which of the following ministries launched the Minimum Support Price (MSP) for Minor Forest Produce (MFP)?

(a) Ministry of Tribal Affairs

(b) Minister of Environment, Forest and Climate Change

(c) Ministry of Agriculture & Farmers’ Welfare

(d) None of the above

Q55. Consider the following statements regarding poverty estimation in India:

1. Tendulkar Committee was established to review the Rangarajan Committee report.

2. Rangarajan Committee counted expenditure only on food components.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q56. Which of the following services witnessed decelerating growth during 2018-19?

1. Real Estate

2. Tourism

3. Transport

4. Defence

Select the correct answer using the code given below:

(a) 1, 2 and 3 only

(b) 2, 3 and 4 only

(c) 1 and 4 only

(d) 2 and 3 only

Q57. An Escrow account is an:

(a) Account opened by a registered political party to manage its electoral expenses.

(b) Account of a government subsidiary in an offshore bank.

(c) Account in a bank which is held by the third party on behalf of two other parties that are in the process of completing a transaction.

(d) Account which is seized by the Financial Action Task Force (FATF).

Q58. With reference to National Manufacturing Policy 2011, consider the following statements:

1. The policy is based on the principle of industrial growth in partnership with the states.

2. National Investment and Manufacturing Zones (NIMZs) are an important instrument of the policy.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q59. Which of the following statements is/ are correct about the Fiscal Responsibility Management Act (FRBMA), 2003?

1. States need to take prior permission from the central government for market borrowing.

2. It aimed to reduce Fiscal deficit and revenue deficit contingent liabilities and total liabilities.

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

Q60. What is the Reverse Repo Rate?

(a) It is the rate of interest at which central bank borrows money from the commercial banks of the country.

(b) It is the rate of interest at which banks deposit their surplus funds with themselves for short periods.

(c) It is the rate of interest at which banks can borrow additional money.

(d) It is the rate of interest at which the RBI buys or rediscounts bills of exchange.

Q61. The factor(s) responsible for the increase in demand for goods in an economy is/are:

1. Rise in the prices of substitute goods.

2. Rise in the prices of complementary goods.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q62. With reference to National Highways in India, consider the following statements:

1. National Highways constitute only around 2% of the total road length in the country.

2. A part of the fuel cess is used for funding the implementation of National Highway Development Programme.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q63. Select the correct statement regarding the role of taxes in National Income Accounting:

 (a) Direct taxes don’t need to be adjusted if the National Income is accounted at factor cost.

(b) Indirect taxes need to be adjusted if the income is accounted at market cost.

(c) If the National Income is calculated at factor cost, then the corpus of the total indirect taxes needs to be added to it.

(d) Dividend Tax requires adjustment in National Income Accounting.

Q64. With reference to Soil Health Card, consider the following statements:

1. It is a printed report that contains the status of soil with respect to macro and micro nutrients.

2. The scheme covers only less fertile areas of India.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q65. Consider the following statements regarding the Net National Product (NNP) at Market Price:

1. It includes the value of depreciation.

2. It measures output produced by the country’s citizens in the domestic territory and abroad.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q66. Which of the following is/are the part of First Generation Economic Reforms in India?

1. Promotion to Private Sector

2. Tax Reforms

3. Public Sector Reform

4. Legal Sector Reform

Select the correct answer using the code given below:

(a) 1 only

(b) 3 and 4 only

(c) 1, 2 and 3 only

(d) 1, 2, 3 and 4

Q67. A Giffen good is a:

(a) Good on which people spend a small portion of their income.

(b) Good that people buy more as their incomes fall.

(c) Good that has a vertical demand curve parallel to the y-axis.

(d) Good which people buy more as its price increases.

Q68. Consider the following statements regarding trends in Service sector in India:

1. Foreign exchange earnings from tourism sector have increased in 2018-19.

2. The services sector growth declined due to deceleration in the growth of sub sectors such as trade, hotels etc.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q69. Regarding the role of a state economy, consider the following statements:

1. As a “regulator”, the state regulates only the production network but not the distribution network.

2. Under this system, state plays the roles of producer of both public and private goods.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q70. What are the components of Revenue Expenditure of Central Government?

1. Interest paid to the states

2. Grants given

3. Pension

4. Loan given to the states by the centre

Select the correct answer using the code given below:

(a) 3 and 4 only

(b) 1 and 4 only

(c) 2, 3 and 4 only

(d) 1, 2 and 3 only

Q71. Which of the following transactions is/are not included in calculating the Gross Domestic Product (GDP) of a nation?

1. Money received from selling of an old car

2. Social Security payments

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

Q72. Which of the following is/are correct about National Anti-Profiteering Authority (NAA)?

1. It has been constituted under Income Tax Act.

2. It ensures that the reduction in the rate of tax is passed to the recipients.

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

Q73. Economic Development is dependent on which of the following factors?

(a) Fiscal Policy

(b) Monetary Policy

(c) Taxation

(d) All of the above

Q74. Consider the following statements regarding Service Sector in India:

1. The services sector accounts for more than 50 per cent of India’s Gross Value Added (GVA).

2. In total service export, transport sector has highest share.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q75. Which of the following could be categorized as Capital goods?

1. Steel sheets used in an automobile manufacturing plant.

2. Packaging machine in a wafer chips and wafers manufacturing factory.

3. Warehouse in a bottling plant.

4. Oil rig owned by the oil company.

5. The television set in an office cafeteria.

6. Battleship owned by defence forces.

Select the correct answer using the code given below:

(a) 1, 2 and 5 only

(b) 2 and 5 only

(c) 2, 3, 4 and 6 only

(d) 1, 3, 4 and 6 only

Q76. Consider the following statements regarding Pradhan Mantri Fasal Bima Yojana:

1. There is a uniform premium to be paid by farmers for all the crops.

2. There is no upper limit on Government subsidy.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q77. Consider the following statements regarding the World Happiness Report:

1. The 1st Report was released in 2012.

2. The focus of 2019 report is on Happiness and Community.

3. Finland tops the 2019 World Happiness Report.

Which of the above statements are correct?

(a) 1 and 3 only

(b) 2 and 3 only

(c) 1 and 2 only

(d) 1, 2 and 3

Q78. Consider the following statements regarding FDI in India:

1. The entry of FDI by non-resident citizens is regulated only through automatic route.

2. Government of India has provided 100% FDI under automatic route in single brand retailing.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q79. With reference to the Law of Demand, consider the following statements:

1. There is a direct relationship between demand for a commodity and its price.

2. As the marginal utility of the commodity diminishes, its demand decreases.

Which of the above statements is/are incorrect?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q80. Consider the following statements regarding the tools of monetary policy used by RBI:

1. Liquidity Adjustment Facility (LAF) helps the RBI to transmit interest rate signals to the market.

2. In Open market Operations, central bank purchases or sells bonds in the open market in order to regulate money supply in the economy.

Which of the above statements is/are incorrect?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q81. Which of the following parameters is/are used in the Human Development Index (HDI)?

1. Life expectancy at birth

2. Mean of years of schooling and expected years of schooling

3. Sex Ratio

Select the correct answer using the code given below:

(a) 3 only

(b) 1 and 2 only

(c) 2 and 3 only

(d) 1, 2 and 3

Q82. Which of the following sectors has/have been accorded the ‘infrastructure’ status in India?

(a) Logistics

(b) Shipyard Industry

(c) Water and Sanitation

(d) All of the above

Q83. Which of the following activities come(s) under the Quaternary Sector?

(a) Information Technology

(b) Consultancy

(c) Research and Development

(d) All of the above

Q84. With reference to UDAN Scheme, consider the following statements:

1. It’s a market-based model to develop regional connectivity.

2. It has a provision for Viability Gap Funding (VGF).

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q85. With reference to the challenges of an economy, consider the following statements:

1. Variation in the needs of the people.

2. Lack of a proper production capacity as well as a proper distribution network.

Which of the above statements is/are incorrect?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q86. Which of the following land reform measure(s) was/were taken by the government in post independence period?

(a) Abolition of Intermediaries

(b) Tenancy Reforms

(c) Reorganisation of Agriculture

(d) All of the above

Q87. The National Income of a country for a given period is equal to the:

(a) Consumption and investment expenditure incurred by the government.

(b) Consumption and investment expenditure incurred by citizens abroad.

(c) Consumption and investment expenditure incurred by the private sector.

(d) All of the above

Q88. Which of the following statements is/are correct regarding Make in India Programme?

1. It promotes manufacturing sector only.

2. It is being led by Ministry of Commerce and Industry.

3. New Infrastructure is one of the core pillars of this programme.

Select the correct answer using the codes given below:

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Q89. With reference to the Human Development Index (HDI), consider the following statements:

1. It is a composite index of 3 indicators.

2. It emphasized that people and their capabilities should be the ultimate criteria for assessing the development of a country, not economic growth alone.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q90. Which of the following statements is/are correct about Digital India Programme?

1. High-speed internet as a core utility shall be made to the citizens in urban and semi-urban areas only.

2. Shareable private space on a public cloud.

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

Q91. Consider the following statements:

1. GDP Per capita is used to measure the productivity of a country’s workforce.

2. Personal Income includes personal taxes and non-tax payments.

3. Gross Value Added (GVA) includes gross value of the output produced by the firm excluding the value of intermediate goods.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Q92. With reference to Economic Census, consider the following statements:

1. In 2019 for the first time in the history of Independent India economic census was conducted.

2. It has been the means of measuring the diversity of non-farm economic activities.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q93. Consider the following statements about economic growth:

1. It is a quantitative measure of progress of a country.

2. It is always positive in nature.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q94. Consider the following statements regarding Hybrid Annuity Model for infrastructure projects:

1. It is a mix of EPC (Engineering, Procurement and Construction) and BOT-Annuity (Buil-Operate-Transfer) Model.

2. Under it, the private player is responsible to construct and hand over the roads to the government who will in return collect the toll.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q95. With reference to the Gini Coefficient, consider the following statements:

1. Rise in the Gini Coefficient indicates that income inequality is decreasing in an economy.

2. Its value varies anywhere from zero to 1, where zero indicates perfect equality and one indicates the perfect inequality.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q96. Consider the following statements with respect to taxation of local governments in India:

1. Property taxes are the only sources of direct tax revenue at the third tier of government.

2. The tax collections of local governments from potentially buoyant sources of revenue are generally stacked at very low levels.

Which of the above statement is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1and 2

(d) Neither 1 nor 2

Q97. There is a price rise of one or a small group of commodities over a sustained period of time in an economy. This situation is known as:

(a) Inflation

(b) Stagflation

(c) Skewflation

(d) Bottleneck inflation

Q98. If RBI cuts down the repo rate, it will have the following impact:

1. It may benefit the borrowers as EMIs (equated monthly instalments) will decrease.

2. It will increase investment in the economy.

3. It may lead to inflation in the country.

Which of the above statements are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Q99. A rise in per capita income does not automatically imply an increase in economic welfare because:

1. Distribution of income is not known

2. Rate of economic growth is not known

3. Per capita income suffers from the limitation of averages

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) 1 and 3 only

(d) 1, 2 and 3

Q100. Find the right match

Folk music –          Place

1. Gulraj –   Kashmir

2. Mand –    Rajasthan

3. Bhatiali –          Bengal

Select the correct answer code:

 a) 1, 2

 b) 2, 3

 c) 1, 3

 d) 1, 2, 3

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