1. What is the main objective of the economic planning process in India?
a) Rapid industrialization
b) Balanced regional development
c) Increase in foreign trade
d) Growth with social justice
Answer:
d) Growth with social justice
Explanation:
- The main objective of India's economic planning is to achieve growth with social justice, ensuring equitable distribution of resources and opportunities across all sections of society.
2. Which sector contributes the most to India's Gross Domestic Product (GDP) as of recent data?
a) Agriculture
b) Industry
c) Services
d) Mining
Answer:
c) Services
Explanation:
- The services sector is the largest contributor to India's GDP, encompassing IT, telecommunications, finance, and hospitality, among others.
3. Which of the following is a measure of the money supply in the economy?
a) Consumer Price Index (CPI)
b) Gross Domestic Product (GDP)
c) M1
d) Fiscal Deficit
Answer:
c) M1
Explanation:
- M1 is a measure of the money supply, including physical currency and demand deposits. It's a component of the broader money supply indicators like M2 and M3.
4. What is the primary goal of the Public Distribution System (PDS) in India?
a) Increase agricultural production
b) Provide employment to rural youth
c) Distribute essential commodities at subsidized prices
d) Promote exports of food grains
Answer:
c) Distribute essential commodities at subsidized prices
Explanation:
- The Public Distribution System (PDS) aims to distribute essential commodities like rice, wheat, and kerosene to the economically weaker sections at subsidized prices to ensure food security.
5. Which of the following is a direct tax in India?
a) Goods and Services Tax (GST)
b) Excise Duty
c) Corporate Tax
d) Customs Duty
Answer:
c) Corporate Tax
Explanation:
- Corporate Tax is a direct tax levied on the income or profit of corporations, whereas GST, excise duty, and customs duty are indirect taxes.
6. What does the term "Inclusive Growth" refer to?
a) Growth concentrated in urban areas
b) Growth that includes equitable distribution of wealth
c) Growth focused on increasing exports
d) Growth achieved through increased industrial output
Answer:
b) Growth that includes equitable distribution of wealth
Explanation:
- Inclusive Growth refers to economic growth that is distributed fairly across society and creates opportunities for all, ensuring that benefits reach marginalized and disadvantaged groups.
7. What is the primary role of the Reserve Bank of India (RBI)?
a) To control the supply of gold in the economy
b) To print currency notes
c) To act as a banker to the government and regulate the monetary policy
d) To provide loans to industries
Answer:
c) To act as a banker to the government and regulate the monetary policy
Explanation:
- The Reserve Bank of India (RBI) regulates the country's monetary policy, manages foreign exchange, and acts as a banker to the government, among other functions.
8. Which of the following is considered an indicator of economic development?
a) Increase in population growth rate
b) Increase in per capita income
c) Increase in the fiscal deficit
d) Increase in the number of people employed in agriculture
Answer:
b) Increase in per capita income
Explanation:
- Per capita income is an indicator of economic development, reflecting the average income earned per person in a given area in a specified year, adjusted for inflation.
9. Which of the following programs was launched to improve the nutritional status of children in India?
a) Sarva Shiksha Abhiyan
b) Mid-Day Meal Scheme
c) Pradhan Mantri Gram Sadak Yojana
d) Make in India
Answer:
b) Mid-Day Meal Scheme
Explanation:
- The Mid-Day Meal Scheme was launched to provide free lunches to school children to improve their nutritional status and encourage school attendance.
10. What does "Balance of Payments" refer to in economics?
a) A record of all financial transactions made between consumers in a country
b) A record of all economic transactions between residents of a country and the rest of the world
c) The balance between the government’s income and expenditure
d) The balance between imports and exports
Answer:
b) A record of all economic transactions between residents of a country and the rest of the world
Explanation:
- Balance of Payments (BoP) is a comprehensive record of all economic transactions between a country’s residents and the rest of the world, including trade, investment, and transfers.
11. What is the primary aim of the Pradhan Mantri Jan Dhan Yojana (PMJDY)?
a) To promote digital payments
b) To provide insurance to farmers
c) To ensure access to financial services for all
d) To support micro, small, and medium enterprises (MSMEs)
Answer:
c) To ensure access to financial services for all
Explanation:
- The Pradhan Mantri Jan Dhan Yojana (PMJDY) aims to provide universal access to banking facilities, including savings accounts, remittances, credit, insurance, and pensions.
12. Which of the following is not a factor of production?
a) Land
b) Labor
c) Capital
d) Profit
Answer:
d) Profit
Explanation:
- Factors of production include land, labor, capital, and entrepreneurship, which are essential inputs for the production process. Profit is a return on these factors but not a factor itself.
13. The term "Green Revolution" in India refers to:
a) Industrialization of agriculture
b) Increase in agricultural production through high-yielding varieties and advanced technology
c) Promotion of organic farming
d) Expansion of agricultural land
Answer:
b) Increase in agricultural production through high-yielding varieties and advanced technology
Explanation:
- The Green Revolution in India refers to the significant increase in agricultural production due to the adoption of high-yielding varieties (HYVs), improved irrigation, fertilizers, and advanced agricultural techniques in the 1960s and 1970s.
14. What is "Fiscal Policy" primarily concerned with?
a) Regulation of money supply
b) Government revenue and expenditure
c) Control of inflation
d) Management of exchange rates
Answer:
b) Government revenue and expenditure
Explanation:
- Fiscal Policy deals with government revenue and expenditure to influence the economy, including taxation, government spending, and borrowing.
15. Which of the following is an example of a renewable resource?
a) Coal
b) Natural gas
c) Solar energy
d) Petroleum
Answer:
c) Solar energy
Explanation:
- Solar energy is a renewable resource that is continuously replenished by nature, unlike fossil fuels like coal, natural gas, and petroleum, which are non-renewable.
