Sunday, September 4, 2011


1. The basic difference between imperative and indicative planning is that ?
(a) it is easier to achieve targets in imperative type of planning
(b) in the case of imperative planning, all economic activities belong to public sector, while in the other type they belong to the private sector.
(c) in the case of the imperative planning, the market mechanism is entirely replaced by a command hierarchy, while in the case of indicative planning, it is looked upon as a way to improve the functioning of the market system
(d) in the case of indicative planning, there is no need to nationalize any industry
Answer: (b)

2. The principal reason why national economic planning is still being pursued in spite of embracing a market economy since 1991 is that
(a) The vast quantity of capital already deployed in the public sector needs to be nurtured.
(b) The market economy is mainly confined to industry and commerce, and central planning in agriculture is necessary.
(c) It is a constitutional requirement.
(d) Five Year Plans can continue to provide a long-term perspective to the economy in market friendly fashions.
Answer: (d)

3. The type of planning experimented between 1978 and 1980 is known as
(a) Rolling Plan
(b) Annual Plan
(c) Indicative Plan
(d) Collective Plan
Answer: (a)
4 Narasimhan report relates to the restructuring of
(a)sick industries
(b) sales tax
(c)income tax
(d) banks
Answer: (d)

5. Which of the following organizations functions as an apex institution for the agencies engaged in the economic development of Scheduled Castes and Scheduled Tribes?
(a) National Research Development Corporation
(b) National Institute of Rural Development
(c) National Scheduled Castes and Scheduled Tribes Finance and Development Corporation
(d) National Bank For Agriculture and Rural Development
Answer: (c)

6. Rural Development Programmes are related to
(a) Self employment
(b) giving jobs to the poorer graduates
(c) poverty alleviation in states
(d) None of these
Answer: (c)

7. When was the Cooperative Societies Act first passed in India?
(a) 1900
(b) 1902
(c) 1904
(d) 1906
Answer: (c)

8. Sarvodaya aimed at ?
(a) classless society
(b) economic revolution
(c) upliftment of weaker sections
(d) upliftment of all, irrespective of their status
Answer: (d)

9. ‘Utility’ in economics means the capacity to
(a) provide comforts
(b) earn an income
(c) satisfy human wants
(d) satisfy human motives
Answer: (c)

10. Debt service ratio implies ratio between
(a) import and debt
(b) export and principal plus and payment on debt
(c) domestic saving and import
(d)domestic saving and export
Answer: (b)

11. Saving is a function of
(b) income
(c) export
(d) improvement in productivity
Answer: (b)

12. A deflator is a technique of ?
(a) adjusting for changes in price level
(b) adjusting for change in commodity
(c) accounting for higher increase of GNP
(d) accounting for decline of GNP
Answer: (a)

13. Credit is a
(a) Stock concept
(b) Flow concept
(c) Stock flow concept
(d) None of these
Answer: (b)

14, The concept of Joint Sector implies association between
(a) Small and large industries
(b) State and Central Govt enterprises
(c) Indian and multinational companies
(d) Public sector and private sector industries
Answer: (d)

15. Which of the following is the correct description of the term ‘tainted shares’?
(a) The shares purchased by NRIs
(b) The shares which were involved in the case of securities scam
(c) The shares whose price falls by mote than 20 points in a day
(d) The shares the price of which falls continuously for seven days
Answer: (b)

16. A loan bearing low rate of interest is known as
(a)Hard loan
(b) Soft loan
(c) Capital loan
(d)Real loan
Answer: (b)

17. White goods are
(a) basic raw materials
(b) cosmetic articles
(c) goods imported from the western countries
(d) durable consumption goods
Answer: (d)

18. Sellers market denotes a situation where
(a) commodities are available at competitive rates
(b)demand exceeds supply
(c)supply exceeds demand
(d) supply and demand are evenly balanced.
Answer: (b)

19. ‘Mixed Economy’ means
(a) co-existence of small scale and large scale industries
(b) co-existence of the rich and the poor
(c) co-existence of private and public sector
(d) assigning equal importance to both agriculture and heavy industries
Answer: (c)

20. Which of the following best defines the term ‘Letter of Credit’ as used frequently in bank transactions?
(a) An order from a bank to another bank abroad authorizes the payment of a particular amount to a person named in the letter
(b) An unconditional undertaking given by a bank ensuring the payment of a particular amount to the drawee at a given date
(c) Letter by a bank to a person stating the terms and conditions of the loan sanctioned to him by the bank
(d) Statement showing outstanding deposits and credits of a hank for a particular period
Answer: (c)

21, Unemployment which occurs when workers move from one job to another job is known as
(a) Seasonal unemployment
(b) Frictional unemployment
(c) Cyclical unemployment
(d) Technological unemployment
Answer: (b)

22. GNP (Gross National Product) is the money value of
(a) final goods and services produced annually in the economy
(b) annual service generation in the economy
(c) tangible goods available in the economy
(d) tangible goods produced annually in the economy
Answer: (a)

23. Development means economic growth plus
(b) deflation
(c)price stability
(d) social change
Answer: (d)

24. A Multinational is ?
(a) a company operating in several countries
(b) a company having share holders from more than one country
(c) a company which does charitable work in poor countries
(d) a company that operates only in those countries that do not have import restrictions
Answer: (a)

25. ‘Take off stage’ in an economy means
(a) steady growth begins
(b) economy is stagnant
(c) economy is about to collapse
(d) all controls are removed
Answer: (a)

26. ‘A formal evaluation of an individual’s or company’s credit history and capability of repaying obligations’ is known as
(b) Net Asset Value
(c) Credit rating
(d) Cash Credit
Answer: (c)

27. The balance of payment comprises
(a) official settlement account
(b) a current account of goods and services
(c) a capital account of financial assets
(d) All the above
Answer: (d)

28. The State’s action under which a creditor’s right to take action against a debtor for realization of debt - money is kept under suspension for a specified period is called.
(d) Moratorium
Answer: (d)

29. Equilibrium price is that price which
(a) maximizes producers profit
(b) equates consumers and producers surplus
(c) maximizes consumer’s satisfaction
(d) equates supply and demand
Answer: (d)

30. ‘Capital goods’ refer to goods which
(a) serve as a source of raising further capital
(b) help in the further production of goods
(c) directly go into the satisfaction of human wants
(d) find multiple uses
Answer: (b)

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