IAS Prelims 2015: GS Economy MCQ – Set 1

Economy is very crucial for IAS Prelims Exam. Substantial number of questions is asked from Economy.  In the past two or three years, pattern of questions has changed from factual to conceptual. Now Candidates not only need to have command over the factual questions but also conceptual. Jagran Josh has taken initiative to provide the comprehensive coverage of economy to candidates who wish to appear in IAS Prelims 2015. Following are some MCQ which would help candidate to understand types of questions they are supposed to face in IAS Prelims 2015:

1.    Consider the following statements
I.    Multidimensional poverty index was introduced in 2010
II.    It uses different factors to determine poverty beyond income-based lists
III.    It has replaced Human Poverty Index
IV.    It reflects deprivations in very rudimentary services and core human functioning for people.
Which of above statement is/are correct?
a.    I and II
b.    all are correct
c.    only III
d.    II and IV
Answer: b

2.    Amartya Sen is known for
a.    Welfare Economics
b.    Money and Banking
c.    Industrial Economics
d.    Behavioral Economics
Answer:  a

3.  Liquidity refers to:
a.  Wealth available with investors
b.  Ease with which assets can be converted into the money
c.  Currency convertibility
d.  All of above

Answer: b


4.  Which of following statement is true about the Primary deficit?
a.    It is difference between Revenue receipts and Revenue  Expenditure
b.    It is difference between capital receipts and Interest Payment    
c.    It is difference between the Fiscal Deficit and Interest Payment
d.    It is addition of Fiscal Deficit and Interest Payment
Answer: c

5. Base Effect always remains in news, which of following statement is true about Base Effect:
a.    It is Change in numbers of items for which price quotations are taken
b.    It measures Impact of fuel items on inflation
c.    It is related to Impact of the rise in price level  in the previous year over the rise in price levels in the current year
d.    It is related Problems which arises due to miscalculation
Answer: c


6.  What percent branches are to be established in unbanked areas under the provision of new Banking licensing scheme?
a.    20%
b.    40%
c.    22%
d.    25%
Answer: d

7. What does the tax heaven mean?
a. Important source of tax revenue for government
b. countries or states which impose no tax or very low tax that attract wealth from all over the world.
c. Rich class of society that pays the tax
d. Particular section of society that does not pay the tax
Answer: b


8. Our first five year plan primary focused on
a. Agricultural Sector
b. Manufacturing Sector
c. Defense up gradation
d. Service sector
Answer: a


9. Consider the following statements
I) Recession reduces the demands for goods and services
II) Recession leads to unemployment
III) Government interference is desirable to reverse the recessionary trends
Which of above statements is/ are true about Recession
a.    Only I
b.    Only II
c.    I,II,III
d.    None of above
Answer: c


10.  Consider the following statement:
I) Government disinvesting its share in various public sector undertakings
II) Process of disinvestment is very fast
III) Process of disinvestment is very slow and government always falls short of target
Which of above statements is/ are true about government policy of disinvestment
a.    Only I
b.    I and III
c.    I and II
d.    I, II and III
Answer: b