The primary goal of the Monetary Policy Committee (MPC) in India is to –
(A) Regulate stock markets
(B) Maintain financial inclusion
(C) Target inflation
(D) Control fiscal deficit
Answer: (C)

The “Phillips Curve” shows the trade-off between –
(A) Growth and inequality
(B) Inflation and unemployment
(C) Savings and investment
(D) Interest rate and GDP
Answer: (B)

Amartya Sen’s capability approach focuses on –
(A) GDP growth
(B) Technological efficiency
(C) Freedom and human potential
(D) Fiscal prudence
Answer: (C)

Green GDP accounts for –
(A) Agricultural output
(B) Environmental degradation
(C) Employment growth
(D) Military expenditure
Answer: (B)

A progressive tax system aims to –
(A) Encourage saving
(B) Reduce poverty
(C) Redistribute income
(D) Promote inflation
Answer: (C)

The primary sector in India includes –
(A) Education and health
(B) Manufacturing and construction
(C) Agriculture, forestry, and fishing
(D) Trade and transport
Answer: (C)

An increase in public debt is most likely to –
(A) Raise inflation
(B) Decrease fiscal space
(C) Improve balance of payments
(D) Lower unemployment automatically
Answer: (B)

HDI does not include –
(A) Per capita income
(B) Life expectancy
(C) Literacy
(D) Consumer price index
Answer: (D)

In India, devaluation of the rupee is undertaken by –
(A) SEBI
(B) RBI
(C) Ministry of Finance
(D) Government of India
Answer: (D)

Automatic stabilizers in fiscal policy are –
(A) Exports and imports
(B) GDP and inflation
(C) Taxes and transfer payments
(D) Monetary and fiscal rules
Answer: (C)

The Census of India is conducted every –
(A) 5 years
(B) 7 years
(C) 10 years
(D) 12 years
Answer: (C)

The Golden Rule of Public Finance states that –
(A) Deficits are bad
(B) Borrowings should finance only capital expenditure
(C) Surplus should be maintained
(D) Subsidies must be eliminated
Answer: (B)

The Liquidity Adjustment Facility (LAF) is used by RBI to –
(A) Adjust forex reserves
(B) Stabilize inflation
(C) Manage liquidity in banking system
(D) Issue bonds
Answer: (C)

In India, disinvestment means –
(A) Reducing government equity in PSUs
(B) Selling assets of private firms
(C) FDI in agriculture
(D) Monetizing exports
Answer: (A)

The Capital Output Ratio represents –
(A) Investment needed to produce one unit of output
(B) Fiscal deficit over GDP
(C) Ratio of tax to investment
(D) Output per unit of labor
Answer: (A)

Which organization computes the Index of Industrial Production (IIP) in India?
(A) SEBI
(B) RBI
(C) NSO (MoSPI)
(D) Ministry of Finance
Answer: (C)

Moral suasion as a tool of credit control implies –
(A) Tax incentives
(B) Legal threats
(C) Persuasion by central bank
(D) Bond auctions
Answer: (C)

Net National Product at factor cost is also called –
(A) National Income
(B) Gross Domestic Product
(C) Disposable income
(D) Net Domestic Product
Answer: (A)

The shadow price in economics refers to –
(A) Market price
(B) Inflation-adjusted price
(C) Price of non-marketed goods
(D) Nominal price
Answer: (C)

Human Capital Formation involves –
(A) Machinery building
(B) Infrastructure construction
(C) Health and education investment
(D) Investment in natural resources
Answer: (C)

Value Added Tax (VAT) is levied on –
(A) Final sale price
(B) Import price
(C) Value added at each stage
(D) Agricultural produce
Answer: (C)

The terms of trade worsen for a country when –
(A) Export prices fall relative to import prices
(B) Imports decrease
(C) Trade surplus rises
(D) Forex reserves rise
Answer: (A)

Which of the following is not a function of SEBI?
(A) Regulate capital markets
(B) Protect investor interests
(C) Issue currency
(D) Monitor mutual funds
Answer: (C)

Which of the following causes a rightward shift in aggregate demand?
(A) Fall in government spending
(B) Increase in interest rates
(C) Fall in consumer confidence
(D) Tax cuts
Answer: (D)

Supply-side policies aim to –
(A) Control inflation directly
(B) Improve production capacity
(C) Increase fiscal deficit
(D) Boost imports
Answer: (B)

The GDP deflator measures –
(A) Nominal to real GDP
(B) Tax incidence
(C) Core inflation
(D) Income equality
Answer: (A)

Monopsony is a market with –
(A) One buyer, many sellers
(B) Many buyers, one seller
(C) Two buyers and two sellers
(D) Price takers on both sides
Answer: (A)

“Hicksian substitution effect” focuses on –
(A) Income effect of price change
(B) Change in utility
(C) Substitution while maintaining same utility
(D) Price elasticity
Answer: (C)

Fiscal stimulus is generally used to –
(A) Control inflation
(B) Curb exports
(C) Revive economic growth
(D) Encourage saving
Answer: (C)

Which of the following represents stock rather than flow?
(A) Income
(B) Investment
(C) Capital
(D) Consumption
Answer: (C)

Underemployment equilibrium occurs when –
(A) Output exceeds full employment
(B) Resources are fully used
(C) Less than full employment persists
(D) Inflation is very high
Answer: (C)

Balance of Trade includes –
(A) Only goods
(B) Goods and services
(C) Services only
(D) Financial flows
Answer: (A)

Structural unemployment occurs due to –
(A) Lack of demand
(B) Business cycles
(C) Skill mismatch
(D) High wages
Answer: (C)

The Lorenz Curve is used to show –
(A) Inflation trend
(B) Production pattern
(C) Income inequality
(D) Balance of trade
Answer: (C)

The Marginal Efficiency of Capital (MEC) is –
(A) MP of labor
(B) Return on capital
(C) Cost of capital
(D) Output per unit of land
Answer: (B)

Which of the following is not a component of Gross Capital Formation?
(A) Machinery investment
(B) Inventory changes
(C) Land use
(D) Construction
Answer: (C)

The Fisher Equation relates –
(A) Inflation and interest rate
(B) Money and velocity
(C) Unemployment and inflation
(D) Tax and output
Answer: (A)

The multiplier becomes ineffective when –
(A) MPC is 1
(B) MPC is 0
(C) Inflation is rising
(D) Investment is falling
Answer: (B)

A revenue-neutral tax reform implies –
(A) No change in tax structure
(B) Same total revenue after tax changes
(C) Zero fiscal deficit
(D) Balanced budget
Answer: (B)

Import substitution industrialization aims to –
(A) Promote exports
(B) Reduce dependency on imports
(C) Increase foreign aid
(D) Encourage outsourcing
Answer: (B)

In India, the largest share of employment is in –
(A) Services
(B) Manufacturing
(C) Agriculture
(D) Construction
Answer: (C)

The income method of calculating national income includes –
(A) Wages and salaries
(B) Rent
(C) Profits
(D) All of the above
Answer: (D)

Disposable income is –
(A) GDP – indirect taxes
(B) National income – depreciation
(C) Personal income – direct taxes
(D) Private income – corporate tax
Answer: (C)

An increase in marginal cost results in –
(A) Rising profits
(B) Falling average cost
(C) Decreasing supply
(D) Lower marginal utility
Answer: (C)

A perfectly elastic demand curve is –
(A) Downward sloping
(B) Vertical
(C) Horizontal
(D) U-shaped
Answer: (C)

Tariffs are imposed to –
(A) Promote imports
(B) Increase revenue and protect domestic industries
(C) Reduce exports
(D) Encourage outsourcing
Answer: (B)

Inclusive growth implies –
(A) GDP growth only
(B) Growth with equity and participation
(C) Urban growth only
(D) Export-led growth
Answer: (B)

The first census in India was conducted in –
(A) 1872
(B) 1901
(C) 1921
(D) 1951
Answer: (A)

Which is not a component of aggregate demand?
(A) Consumption
(B) Government spending
(C) Investment
(D) Tax collection
Answer: (D)

Twin deficit hypothesis refers to –
(A) Fiscal deficit and revenue deficit
(B) Current account and fiscal deficits
(C) Budget and capital deficits
(D) Trade and debt deficits
Answer: (B)