The 'Relative Deprivation' approach for measuring poverty has been adopted by: developing countries .

The largest share of Indias national income originates in the Tertiary sector. Tertiary sector.
The difference between monetary policy (MP) and fiscal policy (FP) is that: FP tries to control aggregate
demand through budgetary means, MP through the quantity of money and the rate of interest
The Duburi Thermal Power Plant Project approved by the Cabinet Committee on Foreign Investment will
be set up in which of the following States? Orissa
Which of the following is not likely to cause an increase in the population? a rise in the ratio of legitimate
to illegitimate births
Which of the following bodies finalizes the Five Year Plan proposals? National Development Council
Which of the following is not a part of national income? Interest on national debt.
The goals of monetary policy do not include Maximum tax revenue
The principal source of revenue to the State Government in India is: Sales Tax
VAT scheme is expected to avoid repeated payment of duty from the raw materials stage to the final
product and thus reduce the burden of duty on the final product
In which of the following industries in India are the maximum number of workers employed? Textiles
The effort of a fall in investment on income is normall greater than the fall in investment
The National Debt consists of: the total financial liabilities of the government
To find the value of closing stock at the end of a period we: do this by stocktaking
What is the targeted additional power generation capacity during the Ninth Plan period in order to keep
the shortage within manageable limits? 10, 000 MW
Purchase of a tractor by a farmer is: fixed investment
The Planning Commission is: an Advisory body
A consumers equilibrium choice or position is one at which his satisfaction is maximum
In order to be scheduled to the Reserve Bank of India, a bank should have capital and reserve of not less
than: 5 lakhs
The supply schedule for a commodity is usually assumed to be directly open to influence by all the
following, except the quantity demanded
Inflation is caused by: increase in money supply and decrease in production
In India, principal source of State revenue is: taxes and loans
Carriage inwards is charged to the trading account because: it is an expense connected with buying
goods
What do open market operations of the RBI mean? Trading in securities
The term 'devaluation' means: Reducing the value of a currency in terms of another currency
For which one of the following items, is Triupur well-known as a huge exporter to many parts of the world?
Knitted garments
Private Banks in India account for what share of the total banking sector? 8%
Out of following, which one is the best example of progressive tax in India? Income-tax
Which Committee's recommendations are being followed for estimating Poverty Line in India? Lakdawala
Committee
Food for Work Programme was introduced during which one of the following Five-Year Plans? First
The national debt: differs greatly from private debt because 'we owe it to ourselves'
Disguised unemployment is the prominent feature of primary sector
The statement "India is a rich country inhabited by poor people" means: country has rich, vast resources
but they are not properly exploited
What is Laissez-faire? Non-interference of Government in economic affairs
The movement of a consumers budget line, on an indifference map, to a parallel position to the right
indicates that the consumers income has increased
The consumers surplus can be defined as difference between actual price and potential price
In a capitalist economy, the pattern of output is determined by the demand and supply powers
'MODVAT' stands for: Ad Valorem tax on output
The sum of the marginal propensity to consume and the marginal propensity to save must be equal to
one
A demand curve for a commodity is usually drawn on the assumption that factors influencing demand
other than price are held constant
Deflation is Contraction in volume of money or credit that results in a decline of price level
Hawala market is related to Illegal Foreign Exchange.

The Sunrise Industry is one which is non-conventional and expected to grow rapidly.
A public enterprise is distinguished from a private enterprise by whether it is owned by the government
As output increases, average fixed cost falls.
Which of the following could explain why the supply curve for a commodity slopes downwards? Costs fall as

production increases
A consumer with a given income will obtain maximum utility when

the marginal utility of each commodity

is in he same ratio to its price

Which one of the following contributes most to the National Income in India? Agricultural Sector
The budget is presented to the Parliament on: the last day of February
The total utility which a consumer derives from n units of a commodity minus the total utility he drives from n-1
units is consumers surplus from n-1 units
Which of the following is not a function of Reserve Bank of India? It is a foreign exchange detector
Largest revenue in India is obtained from: Excise duties
When the price of a substitute of a commodity X falls, the demand for X falls.
MAT is a new tax introduced in the 1996-97 Budget. It relates to Minimum corporate tax for zero tax

companies.
The agency estimating the national income of India is Central Statistical Organization
National Income of India is compiled by Central Statistical Organization
In public budgets, zero-based budgeting was first introduced in USA
If the elasticity of demand for a good is equal to (-)2 then a 1 percent price rise will lower the

quantity

demanded by 2 percent
Price in the market is fixed by: The demand and supply ruling in the market at a particular time
In India, the first bank of limited liability managed by Indians and founded in 1881 was: Oudh Commercial

Bank
Dumping' in the context of international trade refers to: exporting

goods at prices below the actual cost of

production
The standard of living in a country is represented by its: per capita income
The main argument advanced in favour of small scale and cottage industries in India is that: they

generate a

large volume of employment

Which one of the following is the most important item of non-plan expenditure? Interest payment
An indifference curve for an individual consumer represents graphically Combinations of two goods

which

have the same marginal utility

Which of the following businesses would probably find it easiest to borrow money from complete strangers?

public joint stock company

Gross profit is: excess of sales over cost of goods sold
A public enterprise is distinguished from a private enterprise by whether it: is owned by the government
The gilt-edged market deals in: bullion
When was the decimal system of currency introduced in India? 1957
The elasticity of a straight-line demand curve may have varying values along its length
It will pay a monopolist to cut the price of his product if marginal revenue is greater than marginal cost
India's oldest iron and steel plant is: TISCO at Jamshedpur
Gilt-edged market means: Market of Government securities
Which one of the following states produces about 50 per cent of the total silk textiles in India? Karnataka
Turnover represents: the total volume of sales during the year
The most serious economic problems of India are: Poverty and unemployment
The period of high inflation and low economic growth is termed as: stagflation
Inflation implies rise in money supply.

Which of the following is not a financial institution? FICCI

The descending order in which current assets should be shown in the balance sheet are: stock,

debtors, bank,

cash
Perfect market means there are many sellers and many buyers.
The Year of Great divide refers to: rapid growth rate in population after 1921
Which one of the following situations makes a firm most efficient? Lowest average costs
The demand curve shows that price and quantity demanded are inversely proportional and

also inversely

related.
A hard currency is the one which is readily accepted in international transactions,
Which is the best definition of a balance sheet? An account proving the books balance
Human Development Index comprises literacy rates, life expectancy at birth and: gross domestic

product per

head at real purchasing power

Who is the originator of Green Revolution in India? M.S. Swaminathan
A firm will shut down rather than carry on producing in the short run if total

revenue is less than total

variable cost
Nationalization or public control of an industry is often supported by economists because

it is a natural

monopoly
During which Plan did prices show a decline? First
Which one of the following is the task of the Planning Commission? Preparation of the plan
Development means economic growth plus social change
The highest savings in India are recorded by the Household Sector.
A shift to the left of a demand curve, could be due to a rise in the price of a complement
Which one of the following is the largest mutual fund organization in India? Unit Trust of India
'Devaluation' means: lowering of the value of one currency in comparison of some foreign currency
The cost of living index is indicative of the prevailing level of prices as compared to a base year taken as

100.
A 45 supply curve represents unit elastic

supply. What is NABARD's primary role? To provide term loans

to state co-operative banks, To assist state governments for share capital contribution and To act
as re-finance institution
The slope of an indifference curve represents the marginal rate of substitution between two goods
An upward and leftward movement of an upward-sloping supply curve for a commodity could be caused by all of
the following, expect a sift of tastes in favour of the product.
The two -gaps theory refers to savings gap and wage-goods gap
Which of the following is included in the National Income Account? Services of night-watchman.
Which of the following is not shared by the Centre and the States? Sales Tax
Who is called the 'Father of Economics? Adam Smith
Which part of separated UTI is under SEBI's regulation? UTI-II
Legal tender is the name used to describe: money which cannot legally be refused in settlement of a

debt
Which of the following constitute the World Bank? All Three
1. International Bank of Reconstruction and Development
2. International Finance Corporation
3. International Development Association
Which of the following do not enter into marginal costs?fixed costs
The largest area covered by HYV (high yielding varieties) seeds is under: wheat
Which of the following prints currency notes of the denomination of Rs.100? The Bank

Note Press, Dewas

The national income of a nation is the governments annual

revenue., sum total of factor incomes and

surplus of public sector undertakings.

Balanced economic growth can be achieved only if all the interdependent sectors grow in harmony.
Which of the following is the Banker of the Banks? RBI
Who among the following is most benefited from inflation? Debtors
The oldest stock exchange of India is: Bombay Stock Exchange
The inflation experienced in the country at present is: cost-push inflation
The number of Banks nationalized since 1969 is: 20
In a joint-stock company, the ordinary shareholders do not have the right to appoint the sales manager
Select from the following list the costs which are most likely to vary with the output of a car manufacturer during a
period of a year. The wages of the workers in the paint shop
Bank rate is the rate at which: the Reserve Bank of India gives credit to commercial banks
Equilibrium exists in the market for a commodity when at the market price, the amount sellers wish to sell

is the same as the quantity buyers wish to buy

In which of the following industries is the maximum number of women employed in India? Tea
If income is below equilibrium income will tend to rise
Which of the following combinations is correct? RRB-Agricultural finance
Quota is limit on quantity of imports.
The aim of a rational consumer in allocating his income is to maximize his total utility
Which bank gives long term loan to farmers? Land Development Bank
The credit entry for gross profit is on the credit side of: profit and loss account
Indian economy is most appropriately described as a: mixed economy
Price index numbers are designed to measure: changes in the cost or value of production
Devaluation of currency helps to promote: Exports
What is the main reason for occurrence of structural unemployment? Inflation
"World Development Report" is an annual publication of International Bank of Reconstruction

and

Development
Movement along the same demand curve is known as Contraction of supply
National Income is the Net National Product at market price
Octroi is levied and collected by: local bodies
Per capita net availability of pulses has shown a tendency of: First increase then decrease
National Income is the same as: Net national product at factor cost
Open Sky Policy means involving private agencies in air transport.
A 45 supply curve represents: unit elastic supply
From the balance sheet of a company, it is possible to Judge the extent of profitability of the company
Reserve Bank of India does not provide finance to agriculture
Commercial banking system in India is mixed banking
Which of the following are the main sources of State finances?
I. General Sales Tax
IV. Land Revenues
A tax which is paid by the person on whom the tax is incident is called a: direct tax
Functional unemployment occurs when: people frequently change their job
Who controls the day-to-day action in a joint-stock company? The salaried managers
What was the objective of Command Area Development Programme? To ensure better utilisation of

irrigation potential
Which of the following Mahatma Gandhi series of currency notes issued by the RBI has a drawing of the
'Parliament House' depicted on it? Rs.50

The largest share in our imports is from: European Community

Bank rate means the official rate of interest charged by the central bank of the country
The term Hindu rate of growth refers to the 3.7% per annum growth rate achieved by the Indian economy over the
first six Five-Year Plans. The term was coined by Raj Krishna
Inflation can be contained by: surplus budget, increase in taxation and reduction in public expenditure
Which of the following is the most likely reason why total income tends to fluctuate? Many savings and

investment decisions are taken by different people

Which State stands first in the length of roads in the country? Maharashtra
Which is the least liquid of the following assets of a commercial bank? Treasury bills
A serious effort to tackle the problem of poverty began with: fourth plan
The difference between Gross Domestic Product and Gross National Product is equal to: net

property income

from abroad
A closed economy is the one which: engages in no foreign trade
Which of the following is not a rural development programme? CRY
If two goods are complements, it means that a rise in the price of one commodity will induce

a fall in demand of

the other commodity

When was the Family Planning Programme officially started in India? 1952
Major food-crop of India in terms of production is: rice
Which of the following is not one of the three central problems of an economy? When to produce
In the Keynes model above, which is independent? Investment
What is the percentage of the total workforce employed in Agriculture sector in India? about 64%
Demand means willingness and ability of an individual to buy goods and services at a given

price

and time
Which of the following is a selective Credit Control method? RBI directives
Persons below the poverty line in India are classified as such based on whether: they

are entitled to a

minimum prescribed food basket.

The most important source of capital formation in India has been Household savings.
In recent years the Indian economy has been characterized as a developing economy
Other things being equal a decrease in demand can be caused by a rise in the price of the commodity
India has: Mixed economy
Fixed Cost is known as Overhead Cost.
The First paper mill of the country was started in 1832. Where was it located? Sehramporein West Bengal
Which Five-Year Plan commenced from 1st April, 1997? Ninth Five-Year Plan
Kudremukh is situated in: Karnataka
To achieve economic self-reliance was the main objective of which of the following plans Fourth Plan
Which one of the following Five-Year Plans of India had growth with social justice and equity for achieving its
goals as the main focus? VI
Which of the following are reasons for the Small-Scale Industry in India assuming importance?
I. It is capable of absorbing the surplus work-force in the rural area.
II. It can make use of the agricultural produce.
NNP (Net National Product) or National Income is the money value of final goods and services produced

annually in the economy

Which of the following commodity groups is/are considered for working out average index?
(i) Fuel groups
(ii) Primary articles
(iii) Manufactured products
MODVAT is a/an direct tax.
Total revenue of a firm is maximum when marginal revenue becomes zero

The largest contribution in India's National Income is from: tertiary sector

The law of demand states that when price falls, demand increases
Which of the following taxes is not shared by the Central Government with the States? Customs
Which of the following groups suffer the most from inflation? Creditors
In which of the following cities is the headquarters of the Unit Trust of India located? Mumbai
Economic survey is published by: Ministry of Finance

duty