[Test 2] Rajasthan RPSC College Lecturer Test Series 2021 for Economics

Rajasthan RPSC College Lecturer Exam 2021 Test Series for Economics in English and HindiRajasthan Public Service Commission conducts the recruitment for Technical and Non Technical Education Department for the post of Lecture. The Rajasthan Public Service Commission has released the recruitment for Assistant Professor and lecturer (Technical Education) Posts. There are 918 vacancies for these posts. This is a big opportunity for candidates who waiting for jobs in RPSC. It is essential to know details like Exam Pattern, Syllabus, Exam Date, Previous Year Papers, and Admit Card.

RPSC Lecturer Exam 2021 Test Series: 25 High Quality Economics Mock Tests with answers PDF in English and Hindi Medium as per syllabus, Based on Trending and Previous Papers Analysis, which will definitely improve your confidence and score in real exam.


Rajasthan RPSC College Lecturer Test Series 2021 for Economics – Click Here


Practice Test 2

1. Consider the following statements:

1.    Macroeconomics is a study of individual markets of demand and supply and the players or the decision-maker seen as trying to maximize their profits(as producers or sellers) and their personal satisfaction or welfare levels(as consumers).

2.    Even a large company is ‘micro’ in the sense that it had to act in the interest of its own shareholders and not necessarily in the interest of the country as a whole.

Which of the statements given above is/are correct?

  (a) 1 only

  (b) 2 only

  (c) Both 1 and 2

  (d) None of these

2. Macroeconomic policies of India are pursued by which of the followings:

1.    Government of India

2.    RBI

3.    SEBI

Select the correct answer using the codes given below

(a) 1 and 2

(b) 2 and 3

(c) 1, 2 and 3

(d) 1 only

3. Macroeconomics as a separate branch of economics, emerged after the British economist John Maynard Keynes published is celebrated book

(a) The Wealth of Nations

(b)On the Principles of political Economy and Taxation

(c)The Affluent Society

(d) The General Theory of Employment, Interest and Money

4. Which of these are the factors of production?

1. Land

2. Labour

3. Revenue

4. Capital

Select the correct answer using the codes given below:

(a) 1 and 2 only

(b) 1, 2 and 4 only

(c) 1, 2, 3 and 4

(d) 1, 2 and 3 only

5. “An Enquiry into the Nature and Cause of the Wealth of Nations” book is written by?

(a) Adam Smith

(b) John Maynard Keynes

(c) Sir Richard Hicks

(d) Joseph Stiglitz

6. Consider the following statements:

1.    Final goods produced in an economy can be classified into consumption goods and capital goods.

2.    Consumption goods can be further classified into consumer durables and non durable.

Which of the statements given above is/are correct?

 (a) 1 only

 (b) 2 only

 (c) Both 1 and 2

 (d) None of these

7. Choose the false statement among the following statements:

(a) The deletion, which is made from the value of gross investment in order to accommodate regular wear and tear of capital, is called depreciation.

(b) Net Investment = Gross investment – Depreciation

(c)As per policy viewpoint, markets can be free market or Government controlled.

(d)If more capital goods are produced now, less will be the productive capacity of the system in the future

8. Match the following pairs:

      Economic Systems    Ownership

1.    Capitalism (market economy)A.  Private ownership

2.    Socialism B.  Essential and monopolies, government ownership

3.    Communism   C. Government ownership for almost everything

Which of the followings are correctly matched?

(a) 1-B 2-A 3-C

(b) 1-A 2-B 3-C

(c) 1-C 2-A 3-B

(d) 1-B 2-C 3-A

9. Who among the followings gave the Communist doctrine?

(a)    Adam Smith

(b)    Karl Marx and Frederick Engels

(c)    John Maynard Keynes

(d)    Joseph Stiglitz

10. With reference to calculation of Aggregate value of goods and services produced during a year, consider the following:

1. Expenditure method

2. Product method

3. Revenue method

4. Income method

Which of the statements given above is/are correct?

 (a) 1 and 2 only

 (b) 2 and 3 only

 (c) 1, 2, 3 and 4

 (d) 1, 2 and 4

11. The colonial government never made any sincere attempt to estimate India’s national and per capita income. Who among the following were the Indian estimators who attempted to measure such incomes?

i) Dadabhai Naoroji  

 ii) William Digby   

iii) V.K.R.V. Rao   

iv) Motilal Nehru

a) I and ii   

b) i and iii   

c) 1, iii and iv   

d) All of these

12. Which of the following statements are correct with reference to the zamindari system?

i) The profit accruing out of the agriculture sector was proposed to go to the cultivators.

ii) The main interest of the Zamindars was only to collect rent regardless of the economic condition of the cultivators.

a) Both are correct

b) Both are incorrect

c) (i) correct (ii) incorrect

d) (ii) correct (i) incorrect

13. With reference to revenue settlement, evaluate the following:

i) The Zamindars adopted coercive attitude irrespective of the provisions of the revenue settlement.

ii) The Zamindars demanded revenues anytime, at their will.

a) Both are correct

b) Both are incorrect

c) (i) correct (ii) incorrect

d) (ii) correct (i) incorrect

14. Which of the following contributed to the dismal level of agricultural productivity during the colonial times?

i) Low levels of technology,

ii) Lack of irrigation facilities

iii) Abundant use of fertilizers

a) (i) and (ii)

b) (i) and  (iii)

c) (ii) and (iii)

d) All of the above

15. There was a relatively higher yield of cash crops in certain areas of the country due to commercialization of agriculture.

i) This greatly helped the farmers in improving their economic condition

ii) The cash crops produced was ultimately consumed by the urban Indian classes

a) Both are correct

b) Both are incorrect

c) (i) correct (ii) incorrect

d) (ii) correct (i) incorrect

16. Which of the following were/was part of strategy of the colonial government regarding Indian industry?

i) The intention was to first turn India into a sprawling market for raw materials from other colonies of the British.

ii) Second, it wanted India to become exporter of its unique handicrafts cheaply to Britain and its colonies.

a) Both are correct

b) Both are incorrect

c) (i) correct (ii) incorrect

d) (ii) correct (i) incorrect

17. Which of the following are correct with reference to the decline of the indigenous handicraft industries during the colonial time?

i) The demand in the Indian consumer market also declined

ii) It created massive unemployment

a) Both are correct

b) Both are incorrect

c) (i) correct (ii) incorrect

d) (ii) correct (i) incorrect

18. The modern industry during the second half of the nineteenth century was confined to the setting up of cotton and jute textile mills.

i) The jute mills, mainly dominated by Indians, were located in the western parts of the country, namely, Maharashtra and Gujarat

ii) The cotton textile mills, dominated by the foreigners, were mainly concentrated in Bengal.

a) Both are correct

b) Both are incorrect

c) (i) correct (ii) incorrect

d) (ii) correct (i) incorrect

19. i) Capital goods industry means industries which provide financial capital for setting up of industries and factories only

ii) A large number of capital goods industries came up in second half of the nineteenth century

Which of the above sentences are incorrect?

a) Only (i)

b) Only (ii)

c) Both (i) and (ii)

d) Neither (i) nor (ii)

20. Which of the above are correct with regard to industrial sector in the second half of the nineteenth century?

a) Only (i)

b) Only (ii)

c) Both (i) and (ii)

d) Neither (i) nor (ii)

21. Consider the following Statements:

i) India had to import certain primary products such as raw silk, cotton, wool, sugar, indigo, jute etc.

ii) Finished consumer goods like cotton, silk and woolen clothes and capital goods were exported from Britain.

Which of the above is/are correct with regard to foreign trade during colonial rule?

a) Only (i)

b) Only (ii)

c) Both (i) and (ii)

d) Neither (i) nor (ii)

22. Consider the following Statements:

i) Nearly three-forth parts of Indian foreign trade during colonial rule was with nearby countries like China, Ceylon (Sri Lanka) and Persia (Iran)

ii) The remaining foreign trade was with Britain only.

Which of the above is/are correct?

a) Both are correct

b) Both are incorrect

c) (i) correct (ii) incorrect

d) (ii) correct (i) incorrect

23. Which of the following led to the drain of Indian wealth?

i) Payments for the expenses incurred by an office set up by the colonial government in Britain

ii) Expenses on war, fought by the Indian kings

iii) Import of invisible items

Which of the above is/are correct?

a) All are correct

b) (i), (iii) correct and (ii) incorrect

c) (i), (ii) correct and (iii) incorrect

d) (ii), (iii) correct and (i) incorrect

24. Consider the following Statements:

i) Various details about the population of British India were first collected through a census in 1831.

ii) Though suffering from certain limitations, it revealed the evenness in India’s population growth.

Select the correct alternative:

a) Both are correct

b) Both are incorrect

c) (i) correct (ii) incorrect

d) (ii) correct (i) incorrect

25. Which of the below statements are incorrect about the Suez Canal?

i) It connects Gulf of Suez on the Mediterranean Sea with the Port Said, an arm of the Red Sea.

ii) It is one of the most important waterways in the world, whose opening in 1869 reduced the cost of transportation and made access to the Indian market easier.

a) Only (i)

b) Only (ii)

c) Both (i) and (ii)

d) Neither (i) nor (ii)

26.  Consider the following Statements:

i) The second stage of demographic transition began after 1931.

ii) Both the total population of India and the rate of population growth at this stage were very high.

Which of the above are true?

a) Only (i)

b) Only (ii)

c) Both (i) and (ii)

d) Neither (i) nor (ii)

27. Consider the following characteristics of various social development indicators at the time of the second demographic transition:

i) Public health facilities were either unavailable to large chunks of population or, when available, were highly inadequate.

ii) However, water and air-borne diseases were not very rampant and considerably less life-threatening.

Which of the above are not correct?

a) Only (i)

b) Only (ii)

c) Both (i) and (ii)

d) Neither (i) nor (ii)

28. Consider the following statements regarding the occupational structure of India during the colonial period:

i) The distribution of working persons across different industries and sectors, showed a dramatic change.

Ii) The agricultural sector accounted for the largest share of workforce, which usually remained at a high of 70-75 % while the manufacturing and the services sectors accounted for only 10 and 15-20 % respectively.

Select the correct statements:

a) Only (i)

b) Only (ii)

c) Both (i) and (ii)

d) Neither (i) nor (ii)

29. The inland water transport is being emphasized today. Consider the following with regard to inland waterways during the colonial time:

i) Along with the development of roads and railways, the colonial dispensation also took measures for developing the inland trade and sea lanes.

ii) Though the Coast Canal on the Orissa coast was built at a meager cost to the government exchequer, yet, it strongly competed with the railways.

Select the correct statements:

a) Only (i)

b) Only (ii)

c) Both (i) and (ii)

d) Neither (i) nor (ii)

30. The inland water transport is being emphasized today. Consider the following with regard to inland waterways during the colonial time:

i) Along with the development of roads and railways, the colonial dispensation also took measures for developing the inland trade and sea lanes.

ii) Though the Coast Canal on the Orissa coast was built at a meager cost to the government exchequer, yet, it strongly competed with the railways.

Select the correct statements:

a) Only (i)

b) Only (ii)

c) Both (i) and (ii)

d) Neither (i) nor (ii)

31. Which of the following methods can be used to estimate national income?

(1) Expenditure method

(2) Output method

(3) Matrix method

(4) Income method

Codes

(a) 1 and 2 only

(b) 3 and 4 only

(c)  1, 2 and 4 only

(d) All of these

32. National Income statistics can help in?

(1) Economic planning

(2) Estimating poverty

(3) Formulating trade policy

Codes

(a) 1 and 2 only

(b) 1 and 3 only

(c) 2 and 3 only

(d) All of these

33. Which of the following is most liquid asset?

(a) Shares

(b) Bonds

(c) Demand Deposit

(d) Term Deposit

34. Generally, cost push inflation will lead to?

(a) Increase in Profit

(b) Decrease in profit

(c) Constant Profit

(d) No relation

35. Which of the following statements are correct?

(1) Disguised unemployment is highest in primary sector.

(2) The production is almost zero in disguised unemployment.

Codes:

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 Nor 2

36.  Which of the following statements are correct?

(1) People’s desire for transactions balance increases with increase in income.

(2) People’s spend an increasing proportion of their income on consumption.

(3) Consumption is high when saving is high.

Codes

(a) 1 and 2 only

(b) 1 and 3 only

(c) 2 and 3 only

(d) All of these

37.  Which of the following statements are correct?

(1) In developing countries, taxation is preferred over government borrowing in financing public expenditure.

(2) Taxation would require a curtailment in current consumption.

(3) Investment is high, when rate of interest is low.

Codes

(a) 1 and 2 only

(b) 1 and 3 only

(c) 2 and 3 only

(d) All of these

38. Which of the following statements are correct?

(1) There is an inter-locking of product and factor markets in Indian agriculture.

(2) India’s agricultural economy is overwhelmingly market oriented.

Codes:

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 Nor 2

39. Which of the following pairs are correctly matched?

(1) Recession accompanied by inflation: Stagflation

(2) Fall in prices    : Disinflation

(3) Inflation rate increasing exponentially:  Hyper-inflation

(4) Raise in price due to increased money supply during recession: Reflation

Codes:

(a) 1 and 2 only

(b) 3 and 4 only

(c) 1, 2 and 4 only

(d) All of these

40. Bargadar is persons lawfully cultivating any land belonging to another person. The Bargadar system was part of Land Reform Act of which of the following states of India?

a. Maharashtra

b. West Bengal

c. Bengal

d. Uttar Pradesh

41. The nutrient based subsidy policy was launched by the Central Government for Phosphorous and Potassium fertilisers. Consider the following statements regarding the Nutrient based subsidy policy:

I. The policy was formulated with the objective of promoting a balanced use of N, P and K fertilizers.

II. The policy allowed the manufacturers of P and K fertilizers to fix their maximum retail prices (MRPs) at reasonable levels.

III. The Comptroller and Auditor General of India, in its report on the performance of the NBS policy stated that in the five years since its implementation, the policy had succeeded in bringing about a balanced use of fertilizers.

Which of the following statement(s) is/are correct?

a. Only I

b. I and II

c. II and III

d. All of the above

42. Under the existing regulatory process, the Genetic Engineering Appraisal Committee (GEAC) under the Ministry of Environment, Forest and Climate Change, approves proposals for the commercial use of GM seeds. Consider the following statements regarding the genetically modified seed varieties in India:

I. Bt cotton is currently the only approved GM technology seed in India which was adopted in India in 2002.

II. Over the years, various GM crops such as Bt Brinjal have been developed and they have also received the regulatory approval to be released in Indian markets.

III. After releasing Bt cotton in the country, the crop’s yield increased from 190 kg/ha in 2000-01 to 436 kg/ha in 2019-20.

Which of the following statement(s) is/are correct?

a. Only I

b. II and II

c. I and III

d. All of the above

43. The Mega Food Parks scheme was launched by the Ministry of Food Processing Industries in 2008. Consider the following statements regarding the Mega Food Parks scheme:

I. The scheme aims to create food parks where the farmers can get instructions and knowledge regarding better varieties of seeds.

II. Under the scheme, the MSPs of various crops have decided after the consultation of farmer’s Union.

Which of the following statement(s) is/are correct?

a. Only I

b. Only II

c. Both I and II

d. Neither I nor II

44. India enacted the National Food Security Act in 2013. Consider the following statements regarding the National Food Security Act 2013:

I. The National Food Security Act 2013 Act aims to provide food and nutritional security to people by ensuring access to adequate amount of quality food at affordable prices.

II. Under the National Food Security Act 2013, persons belonging to certain categories are provided with food grains (wheat, rice and coarse cereals) at subsidised prices.

Which of the following statement(s) is/are correct?

a. Only I

b. Only II

c. Both I and II

d. Neither I nor II

45. NITI Aayog has proposed a Model Land Leasing Law to provide for the legalization of land leasing. Consider the following statements regarding the proposed Model Land Leasing Law:

I. the Model Land Leasing Law would ensure that land owners have the security of ownership rights, and land tenants are secure in their tenancy.

II. Legalization of land tenancy would also ensure that farmers get access to formal credit, insurance, and inputs such as fertilizers.

III. Only Madhya Pradesh has adopted the Model land leasing law so far.

Which of the following statement(s) is/are correct?

a. Only I

b. II and II

c. I and III

d. All of the above

46. The central government had released a Model APMC Act in 2003, to be enacted by states. Consider the following statements regarding the Model APMC Act 2003:

I. The Model APMC Act provides for the direct selling of produce through contract farming.

II. The Model Act permits private persons, farmers and consumers to establish agricultural markets.

III. The Model Act levies a multiple market fee on the sale of the commodity.

Which of the following statement(s) is/are correct?

a. Only I

b. II and II

c. I and III

d. All of the above

47. Which of the following statements is incorrect regarding the Agricultural markets and its regulations?

a. Agricultural markets in the country are regulated by the Central Agricultural Produce Marketing Committee (APMC) laws.

b. Under the state APMC Acts, farmers are required to sell their produce at state-owned mandis.

c. Agricultural markets in the country are regulated by the State Agricultural Produce Marketing Committee (APMC) laws.

d. APMC mandis currently levy a market fee on farmers who wish to sell their produce in the mandis.

48. Consider the following statements:

1.    Macroeconomics is a study of individual markets of demand and supply and the players or the decision-maker seen as trying to maximize their profits(as producers or sellers) and their personal satisfaction or welfare levels(as consumers).

2.    Even a large company is ‘micro’ in the sense that it had to act in the interest of its own shareholders and not necessarily in the interest of the country as a whole.

Which of the statements given above is/are correct?

  (a) 1 only

  (b) 2 only

  (c) Both 1 and 2

  (d) None of these

49. Macroeconomic policies of India are pursued by which of the followings:

1.    Government of India

2.    RBI

3.    SEBI

Select the correct answer using the codes given below:

(a) 1 and 2

(b) 2 and 3

(c) 1, 2 and 3

(d) 1 only

50. Macroeconomics as a separate branch of economics, emerged after the British economist John Maynard Keynes published is celebrated book?

  (a) The Wealth of Nations

  (b)On the Principles of political Economy and Taxation

  (c)The Affluent Society

  (d) The General Theory of Employment, Interest and Money

51. Which of these are the factors of production?

1. Land

2. Labour

3. Revenue

4. Capital

Select the correct answer using the codes given below:

(a) 1 and 2 only

(b) 1, 2 and 4 only

(c) 1, 2, 3 and 4

(d) 1, 2 and 3 only

52. “An Enquiry into the Nature and Cause of the Wealth of Nations” book is written by?

(a) Adam Smith

(b) John Maynard Keynes

(c) Sir Richard Hicks

(d) Joseph Stiglitz

53. Consider the following statements:

1.    Final goods produced in an economy can be classified into consumption goods and capital goods.

2.    Consumption goods can be further classified into consumer durables and non durable.

Which of the statements given above is/are correct?

 (a) 1 only

 (b) 2 only

 (c) Both 1 and 2

 (d) None of these

54. Choose the false statement among the following statements:

(a) The deletion, which is made from the value of gross investment in order to accommodate regular wear and tear of capital, is called depreciation.

(b) Net Investment = Gross investment – Depreciation

(c)As per policy viewpoint, markets can be free market or Government controlled.

(d)If more capital goods are produced now, less will be the productive capacity of the system in the future

55. Match the following pairs:

      Economic Systems    Ownership

1.    Capitalism (market economy) A.  Private ownership

2.    Socialism B.  Essential and monopolies, government ownership

3.    Communism   C. Government ownership for almost everything

Which of the followings are correctly matched?

(a) 1-B 2-A 3-C

(b) 1-A 2-B 3-C

(c) 1-C 2-A 3-B

(d) 1-B 2-C 3-A

56. Who among the followings gave the Communist doctrine?

(a)    Adam Smith

(b)    Karl Marx and Frederick Engels

(c)    John Maynard Keynes

(d)    Joseph Stiglitz

57. With reference to calculation of Aggregate value of goods and services produced during a year, consider the following:

1. Expenditure method

2. Product method

3. Revenue method

4. Income method

Which of the statements given above is/are correct?

 (a) 1 and 2 only

 (b) 2 and 3 only

 (c) 1, 2, 3 and 4

 (d) 1, 2 and 4

58.    Consider the following statements regarding the Phillip Curve:

I.    It is a graphic curve which advocates a relationship between inflation and unemployment in an economy.

II.    As per the curve there is a ‘trade off’ between inflation and unemployment i.e. an inverse relationship between them.

III.    The curve suggests that lower the inflation, higher the unemployment and higher the inflation, lower the unemployment.

Which of the following statement(s) is/are correct?

a.    Only I

b.    I and II

c.    II and III

d.    All of the above

59.    Consider the following statements regarding NAIRU?

I.    The NAIRU is that rate of unemployment which is consistent with a constant rate of inflation.

II.    At NAIRU, the upward and downward forces on price (inflation) and wage (unemployment) neutralise each other and there is no tendency of change in the rate of inflation.

III.    The NAIRU is the lowest unemployment rate that an economy can sustain without any upward pressure on inflation rate.

Which of the following statement(s) is/are correct?

a.    Only I

b.    I and II

c.    II and III

d.    All of the above

60.    Consider the following statements regarding ‘reflation?

I.    It is a situation often deliberately brought by the government to reduce unemployment and increase demand by going for higher levels of economic growth.

II.    Reflation can also be understood from a different angle—when the economy is crossing a cycle of recession and government takes some economic policy decisions to revive the economy from recession.

III.    It is a situation in an economy when inflation and unemployment both are at higher levels, contrary to conventional belief.

Which of the following statement(s) is/are correct?

a.    Only I

b.    I and II

c.    II and III

d.    All of the above

61.    With reference to the stagflation which of the following statements is correct:

a.    It is a situation often deliberately brought by the government to reduce unemployment and increase demand by going for higher levels of economic growth.

b.    It can also be understood from a different angle—when the economy is crossing a cycle of recession and government takes some economic policy decisions to revive the economy from recession.

c.    It is a situation in an economy when inflation and unemployment both are at higher levels, contrary to conventional belief.

d.    All of the above

62.    Consider the following statements regarding the inflation targeting:

I.    The announcement of an official target range for inflation is known as inflation targeting.

II.    The inflation targeting is done by the Central Bank in an economy as a part of their monetary policy to realise the objective of a stable rate of inflation.

III.    New Zealand was the first economy to go for inflation targeting in 1989 which has been followed by almost all economies since then.

Which of the following statement(s) is/are correct?

a.    Only I

b.    I and II

c.    II and III

d.    All of the above

63.    Consider the following statements regarding the GDP Deflator:

I.    This is the ratio between GDP at Current Prices and GDP at Constant Prices.

II.    If GDP at Current Prices is equal to the GDP at Constant Prices, GDP deflator will be 0, implying no change in price level.

III.    If GDP at Current Prices is equal to the GDP at Constant Prices, GDP deflator will be 1, implying no change in price level.

Which of the following statement(s) is/are correct?

a.    Only I

b.    I and II

c.    I and III

d.    All of the above

64.    Consider the following statements regarding the ‘base effect’:

I.    The base rate refers to the impact of the rise in price level (i.e. last year’s inflation) in the previous year over the corresponding rise in price levels in the current year (i.e., current inflation).

II.    If the price index had risen at a high rate in the corresponding period of the previous year, leading to a high inflation rate then the similar absolute increase in the Price index in the current year will lead to a relatively lower inflation rates.

III.    If the inflation rate was too low in the corresponding period of the previous year, even a relatively smaller rise in the Price Index will arithmetically give a high rate of current inflation.

Which of the following statement(s) is/are correct?

a.    Only I

b.    I and II

c.    I and III

d.    All of the above

65.    Consider the following statements regarding the effects of inflation on an economy:

I.    There are multi-dimensional effects of inflation on an economy both at the micro and macro levels.

II.    Inflation redistributes wealth from creditors to debtors i.e. lenders suffer and borrowers benefit out of inflation.

III.    Rising inflation indicates rising aggregate demand and indicates comparatively lower supply and higher purchasing capacity among the consumers.

Which of the following statement(s) is/are correct?

a.    Only I

b.    I and II

c.    I and III

d.    All of the above

66.    With reference to the effects of inflation on savings which of the following statements is correct?

I.    In the long-run, higher inflation depletes the saving rate in an economy.

II.    In the short run higher inflation means that saving rate increases.

III.    In cases the opposite situation arises when inflation falls or shows falling traits with decreasing saving, in the short-run and increasing saving in the long-run, respectively.

Codes:

a.    Only I

b.    I and II

c.    I and III

d.    All of the above

67.    Consider the following statements regarding the effects of inflation on tax structure of the economy:

I.    Due to inflation, direct tax (income tax, interest tax, etc.) burden of the tax-payers also increases as tax-payer’s gross income moves to the upward slabs of official tax brackets

II.    Inflation increases the nominal value of the gross tax revenue while real value of the tax collection does not compare with the current pace of inflation as there is a lag (delay) in the tax collection in all economies.

Which of the following statement(s) is/are correct?

a.    Only I

b.    Only II

c.    Both I and II

d.    Neither I nor II

68. Which of the following statements are correct?

(1) Consumer Price Index (CPI) measures changes in the price basket of consumer goods and services purchased by households.

(2) It is released by Central Statistical organization.

(3) CPI is used to calculate Dearness Allowance for government employees.

Codes:

(a) 1 and 2 only

(b) 1 and 3 only

(c) 2 and 3 only

(d) All of these

69. Insider Trading refers to?

(a) Trading of goods within the country

(b) Sale and purchase of shares of a company by its own promoter.

(c) Trading of shares by individuals with potential access to non-public information about the company.

(d) Sale of goods produced by the foreign investors inside the home economy

70. An Angel Investor is the one who?

(a) Provides capital to revive a sick company

(b) Provides capital for a business start-up

(c) Provides FDI to a domestic company

(d) Solely provides fund to small scale industries

71. Which of the following statements are correct regarding Kisan Vikas Patra (KVP)?

(1) The maximum age of eligibility is 70 years.

(2) Rs. 50000 is the upper ceiling on investment.

(3) The certificate can be pledged as security to avail loan from bank.

Codes:

(a) 1 only

(b) 3 only

(c) 2 and 3 only

(d) 1 and 2 only

72. Which of the following statements are correct about proposed Goods and Services Tax (GST) Bill?

(1) It is a constitutional amendment bill.

(2) It will confer powers both to the parliament and state legislatures to make laws for levying GST.

(3) GST will simplify and harmonize the direct tax regime in the country.

Codes:

(a) 1 only

(b) 3 only

(c) 2 and 3 only

(d) 1 and 2 only

73. Which of the following statements are correct about Foreign Trade Policy 2015-2020?

(1) It seeks to raise India’s share in world exports to 3.5%.

(2) Foreign Trade Policy will be reviewed annually.

(3) Duty credit scrips could be used to pay custom duty, excise duty and service tax. 

Codes:

(a) 1 only

(b) 1 and 3 only

(c) 2 and 3 only

(d) 1 and 2 only

74. Which of the following statements are true about Indicative Planning?

(1) It is effort to solve the problem of imperfect information in the market

(2) The market is manipulated through incentives and inducements.

Codes:

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 Nor 2

75. Which of the following statements are true about Currency Deposit Ratio?

(1) If banks keep more excess reserves, the money supply will decline.

(2) It reflects people preference for liquidity.

(3) It is a behavioral parameter.

Codes:

(a) 1 and 2 only

(b) 1 and 3 only

(c) 2 and 3 only

(d) All of these

76. Which of the following statements are true?

(1) Higher interest rates will result in appreciation of the domestic currency.

(2) Higher inflation rate will result in appreciation of the domestic currency.

(3) Greater demand for a country’s product means greater demand for country’s currency.

Codes:

(a) 1 and 2 only

(b) 1 and 3 only

(c) 2 and 3 only

(d) All of these

77. Which of the following are types of Non-Tariff Barriers in trade?

(1) Foreign exchange restrictions

(2) Quantity restrictions

(3) Preferential arrangement

Codes:

(a) 1 and 2 only

(b) 1 and 3 only

(c) 2 and 3 only

(d) All of these

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