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Set 1: Part 3: Economics MCQ For Prelims!!
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Set 1: Part 3: Economics MCQ For Prelims

Akshay Kadam is teaching live on Unacademy Plus

Akshay Kadam
I have 4 Years of Experience in Coaching. My Wife & My First Student in UPSC journey, Mrs. Madhulika Kadam, Cracked UPSC with AIR 190 Rank.

Unacademy user
Very nice Thank you sir
Q 17. Sir, I think option 4 is incorrect here. Because, grants given for creation of capital assets is a good step for the economy. I'd rather say for fiscal consolidation, reduction in grants given for current account expenditure needs to be rationalised. Please correct me if my understanding is not correct.
Akshay Kadam
2 months ago
See doesn't matter whether money goes in to productive expenditure or not. If govt has to borrow money for that purpose it will cause fiscle deficit. So reducing govts borrowing by reducing expenditure either Productive or non productive. Or increasing govts revenue by taxation or disinvestment all come under fiscle consolidation. Thank you.
  1. Economics Test Series For Prelims unacademy Master Economics with the help of Conceptual Objective Practice Questions, By Prof. Akshay D Kadam

  2. Economics Sample Questions 11. Weighted average of a country's currency 12. Which of the following are effects of relative to an index or basket of other major currencies, adjusted for the effects of inflation' is typically known as: a. Special drawing rights b. Managed exchange rate c. Nominal effective exchange rate d. Real effective exchange rate inflation on economy? i. Increases cost of borrowing due to increase in interest rates ii. Lowers cost of borrowing due to decrease in real interest rates ii. Reduces unemployment Select correct answer using codes given below: a. 1 only b. 2 only c. 1 and 3 only d. 1, 2 and 3

  3. Economics Sample Questions 13. Consider the following actions which the 14. The lowering of Marginal Standing Facility Government can take: i. Reducing supply of domestic currency ii. Increase in the export subsidy ii. Adopting suitable policies which attract C. No change in the liquidity in the market greater FDI Which of the above action/actions can help in commercial banks reducing the current account deficit? a. 1 only b. 1 and 2 c. 2 only d. 1 and 3 Rate by the Reserve Bank of India leads to: a. More liquidity in the market b. Less liquidity in the market d. Mobilization of more deposits by

  4. Economics Sample Questions 15. Which one of the following is not a feature of "Goods and Services Tax"? a. It is a single point destination-based system of taxation b. It is a tax levied on value addition at each stage of transaction in the production- distribution chain c. GST subsumes countervailing duty on imported products d. GST seeks to promote a single, pan-Indian market 16. Which of the following are being implemented for furthering the Government's objective of inclusive growth? i. MUDRA scheme ii. StandUp India scheme ili JAM Trinity Select the correct answer using the codes given below a. 1 only b. 1 and 2 only c. 2 and 3 only d. 1, 2 and 3

  5. Economics Sample Questions 17. Which of the following constitute fiscal consolidation? i. Reduction in subsidies ii. Rationalization of tax regime ii Disinvestment from public sector enterprises iv. Reduction in grants given for creation of capital assets Select the correct answer using the codes given below a. 1 only b. 1 and 2 only c. 1, 2 and 3 only d. 1, 2, 3 and 4 18. Effective revenue deficit' is best described as: a. Central revenue deficit sans interest payment b. Central Revenue deficit sans grants givern to states for creation of capital assets c. Fiscal deficit breached by monetisation d. Revenue deficit adjusted for inflation

  6. Economics Sample Questions 19. Which of the following qualify for capital receipts in government budget? i. Receipts from sale of capital assets ii. Sale proceeds of government bonds ii. Receipts from small savings schemes iv. Income from PSUs Select the correct answer using the codes given below: a. 1 only b. 1 and 2 only c. 1, 2 and 3 only d. 1, 2, 3 and 4 20. Which of the following combinations of economic policies would be most effective to correct a severe recession? a. Taxes increase, money supply increases b. Taxes increase, money supply decreases c. Taxes increase, money supply doesn't change d. Taxes decrease, money supply increases