Economics -Questions and Answers (Chapter- 01)

Economics - Questions and Answers 

PSC Degree Level Syllabus Based Questions and Answers: National Income - Per Capita Income – Factors of Production- Economic Sectors of Production – Indian Economic Planning- Five Year Plans- NITI Aayog – Types and Functions of  Economic Institutions – Reserve Bank & Functions – Public revenue – Tax and  Non  Tax revenue  –  Public  Expenditure  –  Budget  –  Fiscal  Policy  –  Consumer Protection  & Rights- Questions and Answers

പി.എസ്.സി. ഡിഗ്രിലെവൽ സിലബസിനെ അടിസ്ഥാനമാക്കി തയ്യാറാക്കിയ വിവരങ്ങൾ. 

* PSC Degree Level Questions and Answers

1. Nehru Rozgar Yojana (NRY) was started in:

(a) 1989 (b) 1990

(c) 1992 (d) 1994

Answer: (a)

2. Which five-year plan was called the Mahalanobis model?

(a) First (b) Second

(c) Third (d) Fourth

Answer: (b)

3. Swarna Jayanti Grama Swarozgar Yojana (SGSY) was started in

(a) 1996 (b) 1998

(c) 2000 (d) 1999

Answer: (d)

4. The first deputy chairman of the Planning Commission was:

(a) Sukumar Sen (b) John Mathai

(c) KC Neogi (d) Gulsarilal Nanda

Answer: (d)

5. Which of the following taxes is not levied by the Union Government?

(a) Excise duty (b) Income tax

(c) Profession tax (d) Wealth Tax

Answer: (c)

6. Which one of the following is an indirect tax?

(a) Excise duty (b) Capital gains tax

(c) Wealth tax (d) Corporation tax

Answer: (a)

7. Repo rate is decided by which one of the following organizations?

(a) SEBI (b) IMF

(c) All banks (d) RBI

Answer: (d)

8. The term ‘demographic gap’ signifies the difference:

(a) in sex ratio  (b) in age

(c) in child/woman ratio

(d) between the birth and death ratio

Answer: (d)

9. In India, inflation is calculated on the basis of which of the following indexes?

(a)Wholesale Price Index(WPI)

(b) Consumer Price Index(CPI)

(c) Cash Reserve Ratio

(d) Sensitive Index of Bombay Stock Exchange

Answer: (a)

10. Which five-year plan was terminated prematurely by the Janata Government of Morarji Desai in 1978?

(a) Sixth (b) Third

(c) Fifth (d) Fourth

Answer: (c)

11. The term ‘Hindu Growth Rate’ was coined by

(a) Santhanam (b) Raj Krishna

(c) Mahalanobis (d) V.N.Gadgil

Answer: (b)

12. Where is the National Institute of Rural Development situated?

(a) Hyderabad (b) Chennai

(c) New Delhi (d) Ahmedabad

Answer: (a)

13. The acronym SEBI stands for:

(a) State Earning Board of India

(b) Securities and Exchange Bank of India

(c) Securities and Exchange Board of India

(d) State Exchange Bank of India

Answer: (c)

14. Which institution was established on 1st  April 1935 and headed by Sir Osborn Smith?

(a) IDBI                          (b) Reserve Bank of India

(c) Bombay Dyeing     (d) LIC

Answer: (b)

15. Compensatory and Contingency Financing Facility is a fund for helping member countries and is maintained by:

(a) ADB                                        (b) World Bank

(c) European Community     (d) IMF

Answer: (d)

16. An individual’s actual standard of living can be assessed by:

(a) Gross National Income

(b) Net National Income

(c) Disposable Personal Income

(d)  Per Capita Income

Answer: (c)

17. ICICI is the name of a

(a)News Bureau (b) Chemical Industry

(c) Financial institution (d) Hospital

Answer: (c)

18. Family Planning was started in India in

(a) 1953 (b) 1948

(c) 1950 (d) 1952

Answer: (d)

19. Planning Commission is a/an

(a) Executive body(b) Constitutional body

(c) Advisory body (d) Elected body

Answer: (c)

20. Who presides over the National Development Council?

(a) President (b) Prime Minister

(c) Vice President (d) Speaker

Answer: (b)

21. Who was the exponent of the Sreeniketan Project?

(a) F.L.Brane (b) Rabindranath Tagore

(c) Vinoba Bhave (d) S.K. Dey

Answer: (b)

22. Who was the architect of the Gurgaon Project?

(a) SK Dey (b) Spencer Hatch

(c) Gandhiji (d) F.L. Brane

Answer: (d)

23. Community Development Programme was introduced in India in:

(a) 1947 (b) 1948

(c) 1950 (d) 1952

Answer: (d)

24.National Rural Employment Programme (NREP) was launched in:

(a) 1977 (b) 1979

(c) 1980 (d) 1982

Answer: (c)

25. Prime Minister’s Rozgar Yojana was started in:

(a) 1992 (b) 1993

(c) 1994 (d) 1995

Answer: (b)

26. Who was the exponent of Sreeniketan Project?

(a) F.L Brane (b) Rabindranath Tagore

(c) Vinoba Bhave (d) S.K. Dey

Answer: (b)

27. Who was the architect of Gurgaon Project?

(a) SK Dey      (b) Spencer Hatch

(c) Gandhiji    (d) F.L. Brayne

Answer: (d)

28.Community Development Programme was introduced in India in:

(a)1947       (b) 1948

(c) 1950      (d) 1952

Answer: (d)

29. National Rural Employment Programme (NREP) was launched in;

(a)1977    (b) 1979

(c) 1980   (d) 1982

Answer: (c)

30. Prime Minister’s Rozgar Yojana was started in:

(a) 1992                  (b) 1993

(c)  1994                  (d) 1995

Answer: (b)

31. National Rural Employment Guarantee Act (NREGA) was brought into effect in:

(a)2001         (b) 2003

(c) 2004        (d) 2005

Answer: (d)

32. Nehru Rozgar Yojana was started in:

(a) 1989      (b) 1991

(c) 1993       (d) 1990

Answer: (a)

33. Integrated Rural Development Programme (IRDP) was launched in:

(a) 1980             (b) 1982

(c) 1983             (d) 1986

Answer: (a)

34. Jawahar Rozgar Yojana (JRY) was started in:

(a) 1987 (b) 1989

(c) 1990 (d) 1992

Answer: (b)

35. Development of Women and Children in Rural Area (DWCRA) was launched in: 

(a)1977-78                        (b) 1982-83

(c) 1991-92                        (d) 1989-90

Answer: (b)

36. Who is called the father of Planning In India?

(a) M. Visvesvaraya

(b) Subhas Chandra Bose

(c) P.C. Mahalanobis

(d) Jawaharlal Nehru

Answer: (a)

37. Which five-year plan was suffered by the Chinese attack of 1962?

(a) Second   (b) Third

(c) Fourth    (d) Fifth

Answer: (b)

38. The first chairman of the Planning Commission was:

(a)Gulsariial Nanda                    (b) K.C. Neogi

(c) Dr.Rajendraprasad              (d) Jawaharlal Nehru

Answer: (d)

39.The Planning Commission in India was formed after :

(a) A resolution of Union Cabinet (b) Constitutional provision

 (c) Amendment of Constitution     (d) Order of Prime Minister

Answer: (a)

40. Which of the following is not a member of the National Development Council?

(a) Prime Minister                   

(b) Members of Planning Commission

(c) Chief Ministers of State

(d) The President of India

Answer: (d)

41. The concept ‘of the mixed economy was introduced during the

(a) First Five Year Plan (b) Second Five Year Plan

(c) Rolling Plan (d) Third Five Year Plan

Answer: (b)

42. The main model that formed the basis of the strategy of the Second Five Year Plan was formulated by

(a) K.N.Rai                          (b) P.C.Mahalanobis

(c) Gulsarilal Nandha     (d) Jawaharlal Nehru

Answer: (b)

43. The concept of the Five Year Plan in India was introduced by

(a) Sardar Patel (b) Dr Rajendra Prasad

(c) Gulsarilal Nanda (d) Jawaharlal Nehru

Answer: (d)

44. Which the body gives the final approval for the draft of the five-year plans in India?

(a) Planning Commission                        (b) Finance commission

 (c) National Development Council      (d) Supreme Court of India

Answer: (c)

45. Name the Prime Minister who appointed Ashok Mehta Committee in 1977

(a) Charan Singh (b) Morarji Desai

(c) Indira Gandhi (d) None of these

Answer: (b)

46. During times of inflation bank rate is:

(a) kept constant                                    (b) raised

(c) lowered                                               (d)  None of these

Answer: (b)

47. The stock market index of the London Stock Exchange is:

(a) Footsie (FTSE)                                    (b) NIFTY

(c) Sensex                                                     (d) Bullish

Answer: (a)

48. ‘Money is what money does’-whose definition is this?

(a) Walras                                                (b) Williamson

(c) Wagner                                               (d) Walker

Answer: (d)

49. Which of the following is a non-economic good?

(a) Gold                                                    (b) Milk

(c) Water in rivers                               (d) Cinema Ticket

Answer: (c)

50. ‘Participatory Notes’ are associated with:

(a) Life Insurance                                            (b) Foreign Direct Investment

(c) Foreign Institutional Investment         (d) Mutual Funds

Answer: (c)

51. The committee set up to review the concept of the poverty line was:

(a) Dutt Committee                                        (b) Wanchoo Committee

(c) Lakdawala Committee                            (d) Chakravarthy Committee

Answer: (c)

52. The first Chairman of the Indian Planning Commission:

(a) Jawaharlal Nehru                                        (b) C.Rangarajan

(c) Dr.S.Radhakrishnan                                    (d)Dr.Rajendraprasad

Answer: (a)

53. The celebrated work on Indian economic history ‘The Industrial Evolution in India in Recent Times’ was written by:

(a) R.C.Dutt                                                             (b) D.R.Gadgil

(c) D.Naoroji                                                           (d) William Digby

Answer: (b)

54. When there is a market dominated by a small number of sellers- what is this condition called?

(a) Monopoly                                                        (b) Monopsony

(c) Monopoly                                                        (d) Oligopoly

Answer: (d)

55. ‘The World’s Local Bank’ is the tag line of which bank?

(a) ABN Amro                                                (b) Standard Chartered Bank

(c) HSBC                                                           (d) City Bank

Answer: (c)

56. The SEBI stands for:

(a) State Earning Board of India

(b) Securities and Exchange Bank of India

(c) Securities and Exchange Board of India

(d) State Exchange Bank of India

Answer: (c)

57. Who has designed the symbol of Indian Rupee?

(a) D.Ramkumar                                         (b) D.Udayakumar

(c) D.Jyothikumar                                       (d) D.Ajayakumar

Answer: (b)

58. The high performance delivered- is the tag line of which company?

(a) IBM                                                           (b) Accenture

(c) Apple Macintosh                                   (d) Microsoft

Answer: (b)

59. Which one of the following is not a function of the Reserve Bank of India?

(a) Banker to the Government

(b) Keeping foreign exchange reserve

(c) Issuing one rupee coin and note

(d) Regulating credit in the country

Answer: (c)

60. Marrakesh is famous for:

(a) International Criminal Court                  (b) World Bank

(c) World Trade Organisation                       (d) GATT

Answer: (c)

61. Which institution established on 1^st  April 1935 and headed by Sir Osborn Smith?

(a) IOA                                                            (b) Reserve Bank of India

(c) Bombay Dyeing                                       (d) LIC

Answer: (b)

62. ‘Life is Good’ is the tag line of which of the following consumer durable company in India?

(a) Philips                                                             (b) LG

(c) Samsung                                                         (d) Videocon

Answer: (b)

63. Kirit Parikh Committee was set up to review:

(a) Petroleum pricing                                      (b) Parliamentary affairs

(c) Telecommunications                                (d) Centre-State relations

Answer: (a)

64. Which of the following is not one of them Bretton Woods institutions?

(a) World Bank                                                  (b) IMF

(c) IFC                                                                   (d) ADB

Answer: (d)

65. The economic planning proposed by eight leading industrialists in 1945 is known as:

(a) People’s plan                                             (b) Five Year Plan

(c) Bombay plan                                             (d) Colombo Plan

Answer: (c)

66. The Indian capital market is under the control of:

(a) RBI                                                                     (b) Ministry of Finance

(c) SEBI                                                                   (d) SBI

Answer: (c)

67. Which is known as ‘Plastic Money’?

(a) Cheque                                                               (b) Coin

(c) Bond                                                                   (d) Credit Card

Answer: (d)

68. What is functioned in Phiroze Jeejeebhoy Towers?

(a) LIC                                                                        (b) SBI

(c) Bombay Stock Exchange                            (d) None of these

Answer: (c)

69. The originator of Human Development Index:

(a) Mahbub ul Haq                                               (b) Sia Ul Haq

(c) Ken Saro Viva                                                (d) Adam Smith

Answer: (a)

70. Who propounded the Innovation Theory of profits?

(a) J.A.Schumpeter                                          (b) P.A.Samuelson

(c) Alfred Marshall                                          (d) David Ricardo

Answer: (a)

71. The headquarters of Allahabad bank is in:

(a) Lucknow                                      (b) New Delhi

(c) Allahabad                                     (d) Kolkata

Answer: (d)

72. The return on debentures is called:

(a) Dividend                                         (b) Interest

(c) Profit                                                (d) None of these

Answer: (b)

73. A speculator in stock markets who buys stocks anticipating that prices will go up is called:

(a) Bull                                                   (b) Bear

(c) Stag                                                    (d) Cow

Answer: (a)

74. Which of the following taxes is not levied by Union Government?

(a) Excise duty                                           (b) Income tax

(c) Profession tax                                      (d) Wealth Tax

Answer: (c)

75. Which is known as the ‘controller of credit’?

(a) NABARD                                                   (b) State Bank of India

(c) Reserve Bank of India                          (d) Indian Bank

Answer: (c)

76. In which date general budget presents in India?

(a) Last working day of February                (b) April 1

(c) March 31                                                       (d) February 28

Answer: (a)

77. The backbone of Indian Economy:

(a) Industry                                                       (b) Agriculture

(c) Transport                                                    (d) Insurance

Answer: (b)

78. Monetary policy is regulated by:

(a)Government policy                                         (b) Central bank

(c) Private entrepreneurs                                  (d) Money lenders

Answer: (a)

79. Deflation is:

(a) Deficit budget                                                   (b) Reduction in taxation

(c) Increase in public expenditure                   (d) Reverse of inflation

Answer: (d)

80. The mixed economy approach was adopted through the Industrial Policy statement of:

(a) 1948                                                                     (b) 1956

(c) 1977                                                                     (d) 1991

Answer: (a)

81. Deficit financing is spending:

(a) by borrowing from abroad                            (b) in excess of revenue

(c) less than what is needed                                (d) by getting foreign aid

Answer: (b)

82. The official rate of interest charged by the Central bank of a country:

(a) Bank rate                                                          (b) Debenture

(c) Equity shares                                                   (d) Reverse Repo

Answer: (a)

83. Estimates of National Income in India are prepared by:

(a) Planning Commission

(b) Reserve Bank of India

(c) Central Statistical Organisation

(d) Ministry of Finance

Answer: (c)

84. A Rolling Plan is a plan for:

(a) Five years                                                       (b) Three years

(c) on year to year basis                                   (d)  None of these

Answer: (c)

85. What is Procurement Price for an agricultural commodity?

(a) The subsidy paid by the government over the market price

(b) The floor price below which it cannot be sold

(c) Money paid to farmers during the drought

(d) The minimum price at which Government is ready to buy

Answer: (d)

86. Mixed Economy is the co-existence of:

(a) Heavy Industry& Small Industry

(b) Private Sector & Public Sector

(c) Industry and Agriculture

(d) Domestic and Foreign Industries

Answer: (b)

87. When was the New Liberalized Industrial Policy was announced in India?

(a) 1989                                                                (b) 1990

(c) 1991                                                                (d) 1992

Answer: (c)

88. Protectionism in international trade stands for:

(a) Free trade policy                                   (b) Semi-restricted trade

(c) Restricted trade                                     (d) All of these

Answer: (c)

89. A multinational is:

(a) A company established with foreign help

(b) A company operating in many countries

(c)  An international body to help developing countries

(d)  A person who has different types of industries within the countries

Answer: (b)

90. Repo rate:

(a) The rate at which RBI sells securities in Commercial Bank

(b) The rate at which RBI buying securities from the Commercial Banks

(c) Sells securities by the RBI in the open market

(d)   Sells securities by the Commercial Banks in the open market

Answer: (a)

91. Economic growth is usually coupled with:

(a) Deflation                                                          (b) Inflation

(c) Stagflation                                                        (d) Hyperinflation

Answer: (b)

92. Which one of the following is an indirect tax?

(a) Excise duty                                              (b) Capital gains tax

(c) Wealth tax                                               (d) Corporation tax

Answer: (a)

93. The annual growth rate of National Income was recorded lowest during:

(a) Second plan                                              (b) Third plan

(c) Fifth plan                                                  (d) Sixth plan

Answer: (c)

94. Compensatory and Contingency Financing Facility is a fund for helping member countries and is maintained by:

(a) ADB                                                              (b) World Bank

(c) European Community                            (d) IMF

Answer: (d)

95. NAFED is connected with:

(a) Animal husbandry                                (b) Conservation of fuels

(c) Agricultural marketing                        (d) Agricultural implements

Answer: (c)

96. Which committee examined and suggested Financial sector reforms in India? 
Answer: Narasimham Committee 

97. The 11th Five Year Plan envisages the highest growth for which sector?
Answer: Service Sector 

98. Who is called the Father of Economics?
Answer: Adam Smith 

99. National Sample Survey Organisation NSSO was established in which year? 
Answer: 1950 

100. Who introduced the concept of Five Year Plans in India? 
Answer: Jawaharlal Nehru

101. The Mumbai Stock change was set up in which year?
Answer: 1875 

102. The Headquarter of RBI is in which place? 
Answer: Mumbai 

103. Who wrote the book 'Planned Economy for India'? 
Answer: M. Visveswarayya

104. Which is the largest Public Sector Bank in India?
Answer: State Bank of India 

105. In India, the maximum number of workers are employed in which industry?
Answer: Textile Industry

106. What is the rank of India in terms of population in the world?

(a) First (b) Second

(c) Third (d) Fourth

Answer: (b)

107. The Indian state with the largest population as per 2011 Census:

(a) Uttar Pradesh (b) Rajastan

(c) Maharashtra (d) Bihar

Answer: (a)

108. The Indian state with the lowest population as per 2011 Census:

(a) Goa (b) Mizoram

(c) Sikkim (d) Manipur

Answer: (c)

109. Which state has the highest population growth rate (2001-2011):

(a) Kerala (b) Tamil Nadu

(c) Uttar Pradesh (d) Meghalaya

Answer: (d)

110. Which state has the lowest population growth rate (2001-2011):

(a) West Bengal (b) Karnataka

(c) Nagaland (d) Goa

Answer: (c)

111. What per cent of the world population is represented by India as per the 2011 census?

(a) 17.5 (b) 21.05

(c) 25.6 (d) 30.2

Answer: (a)

112. Which state has the highest population density as per 2011 Census?

(a) Kerala (b) Bihar

(c) West Bengal (d) Tamil Nadu

Answer: (b)

113. Which state has the lowest population density as per 2011 Census?

(a) Rajastan (b) Jammu Kashmir

(c) Mizoram (d) Arunachal Pradesh

Answer: (d)

114. Which state has the highest sex ratio as per the 2011 Census?

(a) Bihar (b) Kerala

(c) Goa (d) Mizoram

Answer: (b)

115. Which state has the lowest sex ratio as per the 2011 Census?

(a) Haryana (b) Mizoram

(c) Arunachal Pradesh (d) Kerala

Answer: (a)

116. The district in India with the largest population as per 2011 Census:

(a) Thane (b) Mumbai

(c) Thane (d) Pune

Answer: (a)

117. The district in India with the lowest population as per 2011 Census:

(a) Mahe (b) Dihang Valley

(c) Yanam (d) Leh

Answer: (b)

118. The sex ratio in India is ..... females per 1000 males as per 2011 Census:

(a) 903 (b) 847

(c) 940 (d) 1058

Answer: (c)

119. The density of population as per 2011 Census:

(a) 324 (b) 747

(c) 903 (d) 382

Answer: (d)

120. Decadal growth rate of India during 2001-2011 is ......percent

(a) 21.34 (b) 31.34

(c) 23.41 (d) 17.64

Answer: (d)

121. Which Union Territory has the highest density of population as per 2011 census?

(a) Puthuchery (b) Delhi

(c) Chandigarh (d) Lakshadweep

Answer: (b)

122. Which Union Territory has the lowest density of population as per 2011 census?

(a) Dadra and Nagar Haveli  (b) Puducherry

(c) Chandigarh  (d) Andaman and the Nicobar Islands

Answer: (d)

123. The second largest religion in India:

(a) Christianity (b) Islam

(c) Jainism (d) Parsi religion

Answer: (b)

124. Which religion has the highest literacy rate as per 2011 census?

(a) Hindu (b) Christianity

(c) Parsi (d) Jain

Answer: (d)

125. The literacy rate in India as per 2011 census is ..... per cent:

(a) 74.04 (b) 90.52

(c) 65.38 (d) 52.11

Answer: (a)

126. The Union Territory in India with the highest literacy as per 2011 census:

(a) Chandigarh (b) Lakshadweep

(c) Delhi (d) Puthuchery

Answer: (b)

127. The largest district in India:

(a) Leh (Ladakh) (b) Jaisalmer

(c) Kachch (d) Medinipur

Answer: (a)

128. The smallest district in India:

(a) Yanam (b) Alappuzha

(c) Chennai (d) Mahe

Answer: (d)

129. Which state has the highest literacy rate among males and females as per 2011 census?

(a) Mizoram (b) Kerala

(c) Goa (d) Karnataka

Answer: (b)

130. Functions of Reserve Bank of India:
Answer: Printing of currency, Controlling credit, Banker to government, Banker's bank

131. ................ are those institutions where financial transactions like deposits, loans etc. take place.

Answer: Financial institutions

132. The Reserve Bank of India is the apex bank of India. It was established in:
Answer: 1935

133. The Bank of Hindustan established in 1770 is India's first ............
Answer: modern bank.

134. In 1993, the nationalised bank, New Bank of India was merged with the ................
Answer: Punjab National Bank.

135. The growth of the banking sector since then can be divided into three phases:
Answer: The first phase stretches from 1770 to the nationalisation of banks in 1969. The second phase stretching from 1969 to 1990, witnessed the speedy development of banks. In the third phase, stretching from 1991 onwards, banks started rendering services, other than their basic functions.

136. This deposit facilitates depositing and withdrawing money many times in a day:
Answer: Current Deposit

137. ................ are ideal for depositing money in banks by individuals and institutions for a specific period of time. 
Answer: Fixed deposits 

138. ................ receive a specific amount every month for a specified period of time.
Answer: Recurring deposits

139. the working principles of co-operative banks.
Answer: Co-operative Banks

140. Apex bank in India which functions for the development of villages and agriculture.
Answer: National Bank for Agricultural and Rural Development (NABARD) 

141. Bharathiya Mahila Bank was started in: 
Answer: November 2013

142. The slogan of this bank is ' Women empowerment is India's empowerment'.
Answer: Bharathiya Mahila Bank

143. .............. provides financial help to small scale entrepreneurs and micro finances.
Answer: MUDRA Bank

144. The Kudumbasree and men self-help groups operating in Kerala and are examples of this.
Answer: Microfinance

145. Which state has the lowest literacy rate as per 2011 census?

(a) Rajastan (b) Jharkhand

(c) Bihar (d) Chhatisgarh

Answer: (c)

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