IAS Prelims : Economics(01)

IAS Prelims : Economics

1.    Consider the following statements 
I.    Multidimensional poverty index was introduced in 2010
II.    It uses different factors to determine poverty beyond income-          based lists
III.    It has replaced Human Poverty Index
IV.    It reflects deprivations in very rudimentary services and core            human functioning for        people.

Which of above statement is/are correct?
a.    I and II
b.    all are correct 
c.    only III
d.    II and IV

Answer: b

2.    Amartya Sen is known for 
a.    Welfare Economics
b.    Money and Banking 
c.    Industrial Economics 
d.    Behavioral Economics

Answer:  a 

3.  Liquidity refers to:
a.  Wealth available with investors
b.  Ease with which assets can be converted into the money
c.  Currency convertibility 
d.  All of above

Answer: b

4.  Which of following statement is true about the Primary deficit?
a.    It is difference between Revenue receipts and Revenue                      Expenditure
b.    It is difference between capital receipts and Interest Payment    
c.    It is difference between the Fiscal Deficit and Interest Payment
d.    It is addition of Fiscal Deficit and Interest Payment

Answer: c

5. Base Effect always remains in news, which of following                   statement is true about Base Effect:
a.    It is Change in numbers of items for which price quotations are        taken
b.    It measures Impact of fuel items on inflation 
c.    It is related to Impact of the rise in price level  in the previous          year over the rise in price levels in the current year
d.    It is related Problems which arises due to miscalculation 

Answer: c 

6.  What percent branches are to be established in unbanked areas        under the provision of new Banking licensing scheme?
a.    20%
b.    40%
c.    22%
d.    25%

Answer: d

7. What does the tax heaven mean?
a. Important source of tax revenue for government 
b. countries or states which impose no tax or very low tax that             attract wealth from all over the world. 
c. Rich class of society that pays the tax
d. Particular section of society that does not pay the tax

Answer: b

8. Our first five year plan primary focused on 
a. Agricultural Sector
b. Manufacturing Sector
c. Defense up gradation 
d. Service sector

Answer: a

9. Consider the following statements 
I) Recession reduces the demands for goods and services
II) Recession leads to unemployment 
III) Government interference is desirable to reverse the                            recessionary trends

Which of above statements is/ are true about Recession 
a.    Only I
b.    Only II
c.    I,II,III
d.    None of above

Answer: c

10.  Consider the following statement:
I) Government disinvesting its share in various public sector                 undertakings
II) Process of disinvestment is very fast
III) Process of disinvestment is very slow and government always         falls short of target

Which of above statements is/ are true about government policy of disinvestment
a.    Only I
b.    I and III
c.    I and II
d.    I, II and III

Answer: b