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IAS Questions of Economy Set- 9 for Prelims Exam

The Civil Service aspirants find the questions of Economy in IAS Prelims Examination quite difficult. An elaborated and smart study can make them to score maximum in General Studies- Economy part in UPSC Preliminary Examination. Here, you can find such questions for practice may help you to enhance your General Awareness in Economy.

Dec 4, 2015 12:42 IST
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1. GDP (Gross Domestic Product) at factor cost can be calculated as

(a) GDP-indirect taxes+ subsidies
(b) GDP-indirect taxes- subsidies
(c) GDP+ indirect taxes –subsidies
(d) GDP+ indirect taxes+ subsidies

Ans. a

Explanation: The value of the production of goods and services in the country is called its GDP

.



2. Which of the following statements are correct about NITI Aayog?

(1) Prime Minister is the Chairman of Aayog.
(2) Policy making involves bottom-up approach.
(3) It has representations from states.

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

Ans. d

Explanation: NITI Aayog replaced Planning Commission to keep pace with the changing socio-economic environment.

3. National Income is calculated by

(a) CSO
(b) NSSO
(c) Labour Bureau
(d) Ministry of Finance

Ans. a

Explanation: Central Statistical Organization (CSO) is responsible to estimate National Income (NI). National Income is Net National Product at Factor Cost.

4. Devaluation of currency results in

(a) fall in domestic prices
(b) rise in domestic prices
(c) no impact on domestic prices
(d) erratic fluctuation in domestic prices

Ans. b

Explanation: The price of commodities within the country increases as the value of currency is lowered down.

5. Which of the following crops come under Price Stabilization Fund Scheme?

(1) Paddy
(2) Sugarcane
(3) Tea
(4) Tobacco

Codes
(a) 3 only
(b) 1, 2 and 4 only
(c) 3 and 4 only
(d) 2, 3 and 4 only

Ans. c

Explanation: Price Stabilization Fund Scheme was launched against the backdrop of decline in unit value realization of some commodities at times falling below their cost of production. These include tea, coffee, tobacco and rubber.

6. Which of the following statements are correct?

(1) About 50 percent of Indian population is engaged in agriculture.
(2) Primary sector is the largest contributor in GDP.
(3) Food Management is an important aspect of price stability.

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

Ans. c

Explanation: Tertiary sector, in India, is the largest contributor in GDP.

7. Which of the following statements are correct?

(1) Commission of Agricultural Costs and Prices (CACP) decides the Minimum Support Price for crops.
(2) Commercial Banks are the major formal creditor in rural areas

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

Ans. b

Explanation: CACP only recommends the Minimum Support Price for crops.
 
8. Which of the following statements are correct about NABARD?

(1) It provides long term loans to the state governments for contribution to share capital of cooperative credit societies.
(2) It maintains a special fund for Research and Development.
(3) It is empowered to inspect and examine the functioning of cooperative banks and the RRBs.

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

Ans. d

Explanation: NABARD, with it’s headquarter at Mumbai, is the apex bank for rural credit.

9. Which of the following are endogenous factors of industrial sickness?

(1) Shortage of power
(2) Mismanagement
(3) Diversion of funds
(4) Excessive overheads

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

Ans. b

Explanation: Shortage of power is an extrogenous factor of industrial sickness.

10. Which of the following activities come under secondary sector?

(1) manufacturing
(2) construction
(3) mining
(4) quarrying

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

Ans. a

Explanation: Mining and quarrying comes under primary sector.

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