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STATIC GK

Assignment 01

Indian Economy

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Economic Practice Assignment 01

DIRECTION for questions 1 - 40: Mark the best option: 1. IMF has lowered India’s growth projections for

FY2019 to_________In its World Economic Outlook (WEO) released recently.

A) 7.2 per cent B) 7.5 per cent C) 7.7 per cent D) 7.4 per cent 2. Credit Information Bureau (India) Limited is India’s

first_________founded in August 2000. A) Debit Information Company B) Credit Insurance Company C) Debit Insurance Company D) Credit information Company 3. When price of a substitute of commodity 'x' falls,

the demand for 'x' :

A) falls B) remains unchanged C) Increases at increasing rate D) Rises

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4. Mixed Economy means

A) Promoting both agriculture and Industries in the economy

B) Co -existence of public and private sectors C) Co - existence of rich and poor D) Co - existence of small and large Industries

5. Which Commission have approved a wage hike along with a hike in Market Development Assistance?

A) Micro and Macro Industries Commissionq B) Cotton and Wool Industries Commission C) Small and Cottage Industries Commission D) Khadi and Village Industries Commission 6. Consumers are likely to get a variety of goods

under A) Oligopoly B) Perfect competition C) Monopoly D) Imperfect Competition

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7. The 12th Five Year Plan A) Faster, More Inclusive and Sustainable Growth B) Eradication of poverty in India C) India's Education D) Development of Rural India 8. Which off the following sectors is included in the

primary sector of the economy? A) Education B) Forestry C) Textile industry D) Tourism 9. Which of the following sectors is included in the

secondary sector of the economy? A) Hotels & restaurants B) Water and Gas supply C) Railways D) Real estate

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10. Which of the following is not a factor of production?

A) Capital B) Labour C) Sale D) Entrepreneurship 11. A micro enterprise is an enterprise where

investment in plant and machinery does not exceed

A) Rs. 25 lakh B) Rs. 5 crore C) Rs. 50 lakh D) Rs. 10 crore 12. In India, which city is known as the "Manchester of

the South "? A) Vijayawada B) Coimbatore C) Kochi D) Thiruvananthapuram

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13. The first ever “Agricultural Marketing and Farmer Friendly Reforms Index” was launched by

A) Ministry of Agriculture and Farmers Welfare B) NITI Aayog C) National Sample Survey Organization (NSSO) D) Central Statistics Organisation (CSO) 14. The Union Government has constituted a

committee to form a strategy to expedite the process of transforming India into a cashless economy. The name of the committee is

A) Tarapore committee B) Shah Committee C) Amitabh Kant Committee D) Bimal Julka Committee 15. Who has become the new brand ambassador to

promote Goods and Services Tax (GST)? A) Aamir Khan B) Amitabh Bachchan C) Sachin Tendulkar D) P T Usha

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16. Which among the following is NOT a ‘Core Sector’ of Indian Economy?

A) Pharmaceutical B) Steel C) Coal D) Cement 17. Private Sector Mutual Funds in India were

permitted in A) 1964 B) 1993 C) 1994 D) 2001 18. Which of these taxes has been removed? A) Estate duty B) Value added tax C) Central Sales Tax D) Property tax 19. Income that is reduced from total income for

purposes of taxation is a/an: A) Exemption B) Rebate C) Deduction D) None of these

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20. Which of the following does not describe the nature of inflation ?

A) Too much money chasing few goods and

services in an economy B) Expansionary impact on the level of economic

activities in an economy C) Increasing level of interest rates D) Increasing exchange rate of domestic currency

with respect to a foreign currency 21. India's share in world trade is currently around: A) 10 per cent B) 5 per cent C) 1.8 per cent D) 0.7 per cent 22. Which of the following oil refineries is the second

biggest oil refinery of India in the Public sector? A) Digboi (IOC) B) Mumbai (HPCL) C) Haldia (IOC) D) Mathura (IOC)

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23. It will be true to classify India as_______ A) A food-deficit economy B) A labour-surplus economy C) A trade surplus economy D) A capital surplus economy 24. CENVAT is related to________ A) Sales Tax B) Wealth Tax C) Income Tax D) Excise Duty 25. Fiscal-deficit is_______ A) Total expenditure—Total receipts B) Revenue expenditure—Revenue receipts C) Capital expenditure—Capital receipts—

Borrowings D) Sum of budget deficit and Government’s market

borrowings and Liabilities

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26. The Reserve Bank of India (RBI) recently opened a Rs. 5000 crore refinance window for a period of one year for the Micro, Small and Medium Enterprises (MSME) sector in order to ease liquidity. With respect to the all-important MSME sector in India, which of the following statements is incorrect:

A) MSMEs account for about 45% of India’s

manufacturing output B) MSME sector contributes significantly to the

country’s employment and exports C) The major advantage of the MSME sector is its

employment potential at comparatively higher capital cost than large industries.

D) The sector plays a critical role in industrialization of rural and backward areas and reducing regional imbalances.

27. India’s first private international airport to be built

in the state of ________recently got green nod, the final from the Ministry of Environment and Forests.

A) Maharashtra B) Karnataka C) Tamil Nadu D) Kerala

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28. Consider the following statements: 1. Matters relating to the levy and collection of all

direct taxes are looked after by CBDT. 2. Matters relating to levy and collection of

customs and central excise duties, service tax and other indirect taxes fall within the purview of CBEC.

Which of the statements given above is/are

correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 29. Non-tax revenue of Union Government largely

comprises: 1. Interest receipts 2. Loan repayments 3. Income tax 4. Dividends and Profits A) 1 and 2 B) 1, 2 and 3 C) 1, 3 and 4 D) 2, 3 and 4

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30. Consider the following statements : 1. According to WTO, India's share in global exports

and imports is 1.7% and 2.5% in 2013 2. India's rankings in terms of global exporters and

importers is 19 and 12 respectively in 2013 Which of the above statements is / are correct?

A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 31. Consider the following statements: 1. In India, anti-dumping investigations are

conducted by Directorate General of Anti-Dumping and Allied Duties

2. USA's anti-dumping investigations were highest during the last 5 years Which of the above statements is / are correct ?

A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2

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32. Consider the following statements: 1. Wholesale Price Index represents the price of

goods at a whole stage i.e. goods that are sold in bulk and traded between organisations instead of consumers

2. The percentage increase in WPI. Over the year gives the rate of inflation for that year

Which of the following is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 33. Consider the following statements : 1. During 2014-15, agriculture and allied sector was

the major' driver of economic growth contributing over 70°/o in GDP growth

2. India's rank in terms of global exports of services is first Which of the following is/are correct?

A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2

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34. Consider the following expenditure : 1. Expenditure on electricity generation 2. Expenditure on construction of roads 3. Expenditure on S&T 4. Expenditure on Environment. Which of the above comes under the head 'Plan

expenditure' ? A) 1, 2 and 3 B) 1, 3 and 4 C) 2, 3 and 4 D) 1, 2, 3 and 4 35. Which budget has given the highest ever allocation

for MGNREGA? A) Budget 2013 B) Budget 2015 C) Budget 2017 D) Budget 2016

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36. The Appointments Committee of Cabinet (ACC) has appointed three economists as the external appointees on the Monetary Policy Committee (MPC). They will have a fixed four year term and it is non-renewable. Which of following is not one of those.

A) Pami Dua B) Chetan Ghate C) Ravindra Dholakia D) Sriram Panerru 37. Which of the following strategies can be used to

reduce Current Account Deficit ? A) Devaluation of currency B) Reduction of imports C) Increase in exports D) All of the above 38. Participatory Notes commonly known as P-Notes

are instruments to get the foreign investment. It comes under the category of

A) FII B) FDI C) ECB D) NRI deposits

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39. Fiscal Responsibility and Budget Management (FRBM) Act is a fiscal sector legislation enacted by the government of India in

A) 2003 B) 2006 C) 2009 D) 2013 40. For the first time in nearly 150 years, India's

economy surpasses that of which of the following countries economy?

A) USA B) Germany C) United Kingdom D) China

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Answer Keys

Q. No. Key Q. No. Key 1. D 21. C 2. D 22. D 3. B 23. A 4. B 24. D 5. D 25. D 6. C 26. C 7. A 27. D 8. B 28. C 9. B 29. C

10. C 30. C 11. A 31. A 12. B 32. C 13. B 33. D 14. C 34. D 15. B 35. C 16. A 36. D 17. B 37. D 18. A 38. A 19. C 39. A 20. D 40. C