Quantitative easing (QE) is used by central banks to – (A) Increase taxes (B) Curb inflation (C) Inject liquidity into the economy (D) Encourage exports Answer: (C)
Bank nationalization in India first took place in – (A) 1949 (B) 1955 (C) 1969 (D) 1980 Answer: (C)
Gig economy refers to – (A) Government employment (B) Fixed salaried jobs (C) Freelance and short-term contract work (D) Large corporations Answer: (C)
M3 in money supply refers to – (A) Currency with public + demand deposits (B) M1 + savings deposits + term deposits (C) M1 – cash reserves (D) Only bank reserves Answer: (B)
Gresham’s Law implies – (A) Bad money drives out good money (B) Money chases inflation (C) Higher prices lower demand (D) Better quality products survive Answer: (A)
The Lausanne School is associated with – (A) Keynesian theory (B) Marginal utility analysis (C) General equilibrium theory (D) Fiscal federalism Answer: (C)
Investment multiplier is inversely related to – (A) MPC (B) MPS (C) Inflation (D) Tax rate Answer: (B)
Keynesian economics rejects – (A) Full employment in the long run (B) Role of government in economy (C) Demand-side measures (D) Underemployment equilibrium Answer: (A)
Duesenberry’s relative income hypothesis suggests – (A) Consumption is based on relative income levels (B) Saving is constant (C) Income does not affect consumption (D) Demand creates supply Answer: (A)
Operation Flood is related to – (A) Oil production (B) Water irrigation (C) Milk production (D) Food grain storage Answer: (C)
Capital formation in an economy depends largely on – (A) Inflation (B) Consumption (C) Savings and investment (D) FDI only Answer: (C)
The Phillips Curve becomes vertical in the – (A) Short run (B) Long run (C) Recession (D) Boom Answer: (B)
Index of Industrial Production (IIP) base year is currently – (A) 2004–05 (B) 2011–12 (C) 2017–18 (D) 2009–10 Answer: (B)
The Five-Year Plan model adopted by India was originally based on – (A) US Marshall Plan (B) Soviet Union model (C) Chinese model (D) British model Answer: (B)
Bank rate is – (A) Rate at which banks lend to public (B) Rate at which RBI lends to commercial banks without collateral (C) Repo rate (D) Reverse repo rate Answer: (B)
Disinflation is – (A) Negative inflation (B) Decrease in price level (C) Decline in the rate of inflation (D) Persistent inflation Answer: (C)
Per capita income = (A) GDP / working population (B) National income / total population (C) Net exports / population (D) Consumption / population Answer: (B)
Wage rigidity may result in – (A) Full employment (B) Involuntary unemployment (C) High productivity (D) Hyperinflation Answer: (B)
The money multiplier is – (A) Reserve ratio / bank deposits (B) 1 / CRR (C) 1 / Reserve ratio (D) M1 / M0 Answer: (C)
The output gap measures – (A) The inflation rate (B) Difference between potential and actual output (C) Export-import ratio (D) Fiscal deficit Answer: (B)
Price discrimination is possible only under – (A) Perfect competition (B) Monopoly (C) Monopolistic competition (D) Oligopoly Answer: (B)
The Pigou Effect refers to – (A) Higher government spending leads to inflation (B) Higher real balances increase aggregate demand (C) Inflation reduces real income (D) Crowding out Answer: (B)
Inclusive growth was emphasized in which Five-Year Plan? (A) Ninth (B) Tenth (C) Eleventh (D) Twelfth Answer: (C)
Cross elasticity of demand is positive for – (A) Complementary goods (B) Giffen goods (C) Substitutes (D) Inferior goods Answer: (C)
Which of the following is not included in calculating HDI? (A) Education (B) Life expectancy (C) Gender ratio (D) GNI per capita Answer: (C)
Nominal GDP is GDP measured at – (A) Constant prices (B) Market prices of base year (C) Current market prices (D) Factor cost Answer: (C)
Marshall-Lerner condition is related to – (A) Balance of trade (B) Price elasticity of exports and imports (C) GDP growth (D) Tax revenue Answer: (B)
Green revolution focused primarily on – (A) Oilseeds (B) Fruits and vegetables (C) Cereals, especially wheat (D) Dairy sector Answer: (C)
Negative interest rate policy is adopted to – (A) Encourage saving (B) Control inflation (C) Boost lending and investment (D) Strengthen currency Answer: (C)
A regressive tax affects – (A) Poor and rich equally (B) Rich more than poor (C) Poor more than rich (D) None of the above Answer: (C)
The FDI cap in insurance sector in India (as of 2023) is – (A) 49% (B) 74% (C) 100% (D) 51% Answer: (B)
Elasticity of supply is greater in – (A) Short term (B) Long term (C) At zero output (D) At full capacity Answer: (B)
Revenue receipts of government include – (A) Dividends from PSUs (B) Borrowings (C) Recovery of loans (D) Disinvestment Answer: (A)
A tax imposed on goods produced within the country is – (A) Customs (B) Excise (C) GST (D) Toll Answer: (B)
NITI Aayog is primarily a – (A) Constitutional body (B) Statutory body (C) Policy think tank (D) Regulatory authority Answer: (C)
Sterilization in monetary policy refers to – (A) Export promotion (B) Reducing black money (C) Counteracting forex inflows/outflows (D) Raising interest rates Answer: (C)
The Laffer Curve relates – (A) Tax rate and tax revenue (B) Inflation and employment (C) Demand and supply (D) Cost and production Answer: (A)
Which indicator reflects cost of living? (A) WPI (B) CPI (C) GDP deflator (D) IIP Answer: (B)
A balanced budget multiplier is always – (A) Equal to 0 (B) Equal to 1 (C) Less than 1 (D) Greater than 1 Answer: (B)
Jobless growth refers to – (A) Rising inflation and unemployment (B) GDP growth without employment generation (C) More jobs without GDP rise (D) Stagnation in agriculture Answer: (B)
LM curve shows equilibrium in – (A) Labor market (B) Money market (C) Capital market (D) Foreign exchange Answer: (B)
Productivity in economics means – (A) Output per unit of input (B) Capital formation (C) Export growth (D) Investment rate Answer: (A)
The Reserve Bank of India was nationalized in – (A) 1935 (B) 1949 (C) 1956 (D) 1962 Answer: (B)
Consumer surplus is highest when – (A) Supply is scarce (B) Prices fall sharply (C) Demand is inelastic (D) Prices are fixed Answer: (B)
Public goods are generally provided by – (A) Private firms (B) NGOs (C) Government (D) Foreign investors Answer: (C)
PPP (Purchasing Power Parity) is used to – (A) Compare currencies based on GDP (B) Compare inflation (C) Compare income inequality (D) Compare labor markets Answer: (A)
Minimum Alternate Tax (MAT) is applicable to – (A) Individual taxpayers (B) Farmers (C) Companies with low taxable income (D) State governments Answer: (C)
