IAS Questions of Economy - Set 7 for Prelims Exam

1. “Equity Reference Framework” is related to

(a) SEBI guidelines on stock market
(b) Initiatives by UNDP to bring in equity in society
(c) New Bank licensing policy by RBI
(d) Initiatives by UNFCCC against Climate change

Answer. d

2. The Human Development Report focus on

(1) Sustaining development momentum
(2) Peace and security
(3) Confronting environmental pressure
(4) Managing demographic change

Codes:
(a) 1, 2 and 3 only
(b) 1, 3 and 4 only
(c) 1 and 4 only
(d) All of these

Answer. b

3. The term budget deficit means

(a) Borrowing from the market
(b) Borrowing from RBI
(c) Borrowing from international agencies
(d) Total borrowings

Answer. b

4. Which of the following taxes are regressive taxes?

(1) Income tax
(2) Corporate tax
(3) Excise duty
(4) Sales tax

Codes:
(a) 1 and 2 only
(b) 3 and 4 only
(c) 2, 3 and 4 only
(d) All of these

Answer. a

5. WTO divides supports given to agricultural sector into three groups, Which of the following pair(s) is/are not correctly matched?

(1) Public Distribution System  :   Green Box Subsidy
(2) Production limiting Subsidy :   Amber Box Subsidy
(3) Minimum Support Price      :   Blue Box Subsidy

Codes:
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 3 only

Answer. b

6. Which of the following statements regarding Laffer curve are correct?
 
(1) It shows the relationship between tax rate and tax payment behavior of the people.
(2) If tax rate increase beyond a critical point, tax collection starts falling.

Codes:
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 Nor 2

Answer. c

7. Which country became the 19^th member to join the Eurozone?

(a) Latvia
(b) Lithuania
(c) Azerbaijan
(d) Ukraine

Answer. b

8. India is a regular member of which of the following organizations?

(1) BIMSTEC
(2) Shanghai Cooperation Organization
(3) ASEAN
(4) G-20

Codes:
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 4 only
(d) All of these

Answer. c

9. Which of the following statement(s) regarding e-Biz is/are correct?

(1) It is one of the Mission Mode Projects under the National e-Governance Programme
(2) It is to provide a single window mechanism for number of services to business users

Codes:
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 Nor 2

Answer. c
 
10. Which of the following statements are correct?

(1) The headquarter of the World Intellectual Property Organization (WIPO) is at Rome
(2) It is an agency of United Nations
(3) The trade Related Aspects of Intellectual Property (TRIPS) are binding on all WTO members.

Codes:
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) All of these

Answer. d