Indian Economy GK Question SET-1

Q1.Which among the following is considered to be the main determinant of the level of activity is in national income terms?

[A] The level of taxation
[B] Realized investment
[C] Planned saving
[D] Factor mobility

Correct Answer: B [Realized investment]

Q2.Which among the following does not come under Land Resources:

[A] Fertility of Land
[B] Location of Land
[C] Composition of Land
[D] all of the above are land resources

Correct Answer: D [all of the above are land resources]

Q3.Which among the following does not come under Land Resources:

[A] Fertility of Land
[B] Location of Land
[C] Composition of Land
[D] all of the above are land resources

Correct Answer: D [all of the above are land resources]

Q4.Which of the following is not an essential condition for perfect competition?

[A] Homogeneous products
[B] Many sellers and buyers
[C] Freedom of entry and exit
[D] None of the above

Correct Answer: D [None of the above]

Q5.Which of the following is / are parts of the Public Distribution System in India?

1.Cooperative Stores
2.Military Canteens
3.Super Bazaars
4.Fair Price Shops
Select the correct option from the codes given below:

[A] Only 1 & 2
[B] Only 2 & 3
[C] Only 4
[D] Only 1 & 4

Correct Answer: D [Only 1 & 4]

Q6.Consider the following statements regarding the Rupee Dollar exchange rate in the light of purchasing power parity PPP:

1.Exchange rate of the currencies should be equal to the ratio of price levels in two countries
2.Exchange rate of the currencies should be not equal to the ratio of price levels in the two countries
3.Exchange rate of the currencies should be decided on the basis of value of the third major currency like euro
which among the above statements are correct ?

[A] 1 & 3 only correct
[B] 2 & 3 only correct
[C] 3 only is correct
[D] 1 only is correct

Correct Answer: D [1 only is correct]

Q7.Which among the following has never been an agenda of Financial Sector Reforms in India?

[A] Providing easy credit to all citizens with subsidies guaranteed
[B] Deregulation of the interest rate regime
[C] Enabling regulatory framework for effective supervision
[D] Strengthening the Disclosure norms

Correct Answer: A [Providing easy credit to all citizens with subsidies guaranteed]

Q8.Which of the following exchange rates is the relative price of foreign goods in terms of domestic goods?

[A] Nominal
[B] Real
[C] Artificial
[D] Fixed

Correct Answer: B [Real]

Q9.Which of the following are part of National income?

[A] Value of all goods and services produced in a financial year
[B] An reused good sold in that financial year
[C] Service rendered by housewife
[D] None of the above

Correct Answer: A [Value of all goods and services produced in a financial year]

Q10.What is the largest exporter of fruits and vegetables to India?

[A] China
[B] Afganisthan
[C] USA
[D] Bangladesh

Correct Answer: A [China]

Q11.Which among the following ratio correctly denotes the Insurance Penetration?

[A] Premium Underwritten : Population
[B] Premium Underwritten : GDP
[C] Insured Population : Total Population
[D] Premium Underwritten : Policy Holders

Correct Answer: B [Premium Underwritten : GDP]

Q12.Who among the following will be benefited by Deflation?

[A] Salary Earners
[B] pensioners
[C] Equity Holders
[D] Debtors

Correct Answer: A [Salary Earners]

Q13.Which among the following is related to utility?

[A] Satisfaction and wants
[B] Necessity and wants
[C] Usefulness and need
[D] None of the above

Correct Answer: A [Satisfaction and wants]

Q14.Who wrote the book principles of economics?

[A] Alfred Marshall
[B] Milton Friedman
[C] J S Mill
[D] None of the above

Correct Answer: A [Alfred Marshall]

Q15.What is the contribution of Animal husbandry to Indian GDP?

[A] 5.19%
[B] 4.11%
[C] 3.41%
[D] 2.19%

Correct Answer: B [4.11%]