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Set 2: Part 1: Economics MCQ For Prelims
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Set 2: Part 1: Economics MCQ For Prelims

Akshay Kadam is teaching live on Unacademy Plus

Akshay Kadam
With 5 yr UPSC coaching experience; I wl help u get conceptual clarity of topics & their Applied Understanding to score more.

Unacademy user
Mahesh Verma
2 years ago
thankx alot
  1. 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

  2. Economics Test Series For Prelims unacademy Master Economics with the help of Conceptual Objective Practice Questions, By Prof. Akshay D Kadam

  3. Economics Sample Questions 1. If nominal gross domestic product in a 2. An increase in which of the following would country is 21,600 and the money supply is most likely cause the gross domestic product 2400, what is the velocity of money? a.400 b.0.5 c. 10 d.4 of a country to decrease in the short run? a.Consumption spending by households b.Imports c.Government spending d.Investment spending by domestic firms

  4. Economics Sample Questions 3. In the short run, which of the following will 4. Which of the following is a determinant of most likely result if wages in an economy rise the amount of money the commercial banking faster than workers' productivity? a.An increase in the price level b.An increase in firms' profits c.An increase in efficiency in labor-intensiveC.The size of the federal debt industriess d.A larger increase in property income than in labor income system can create? a.The marginal propensity to consume b. The marginal propensity to save d.The reserve requirement

  5. Economics Sample Questions 5. Crowding out is most likely to occur with which of the following changes? a.Decrease in government spending b.Increase in budget surplus c.Increase in budget deficit d.Decrease in the real interest rate 6. The unemployment rate is calculated as a.the number of people not working divided by the population b.the number of people not working divided by the number of people working both full- time and part-time c.the number of people working part-timebut actively seeking full-time employment divided by the number of people in the labor force d.the number of people not working but actively seeking employment divided by the number of people in the labor force fppt.comm

  6. Economics Sample Questions 7. The value of which of the following would be included in India's gross domestic product? a. Time spent volunteering at a local hospital b.A masala bond received as a birthday gift c.A movie ticket purchased at a local theatre d.A new handbag made in Vietnam by an Indian firm 8. Structural unemployment is best described as unemployment arising from a.the elimination of jobs as a result of technological change increase in the number of workers searching for better-paying jobs increase in the number of jobs demanding unskilled labor d.the temporary reduction of jobs during a downturn in the business cycle

  7. Economics Sample Questions 9. The recent popularity of job search Web sites that enable job seekers and potential employers to more efficiently contact each other is most likely to cause: a.a reduction in the labor force participation rate b.a reduction in structural, but not in frictional, unemployment rates c.a reduction in the frictional unemployment rate increase in the overall unemployment rate 10. An increase in inflationary expectations will most likely affect nominal interest rates and bond prices in which of the following ways in the short run? a.Nominal Interest Rates Increase, Bond Prices don't change b.Nominal Interest Rates Increase, Bond Prices decrease c.Nominal Interest Rates decrease, Bond Prices increase d.Nominal Interest Rates decrease, Bond Prices decrease fppt.comm

  8. Economics Sample Questions 11. Last year both a borrower and a lender 12. The consumer price index (CPI) expected an inflation rate of 3 percent when measures the: they signed a long-term loan agreement with a.value of current gross domestic product in fixed nominal interest rates of 5 percent. If the base-year dollars actual inflation rate were lower than expected, b.prices of all consumer goods and services then which of the following would be true? a.The borrower would benefit b.The lender would benefit c.The real interest rate would be lower than d.prices of a specific group of goods and expected d. The nominal interest rate would be higher than expected produced in the economy c.prices of selected raw materials purchased by firms services purchased by consumers fppt.comm

  9. Economics Sample Questions 13. Assume that RBl pursues a tight monetary policy. Based on the resulting change in the interest rate, what will happena.Rapid growth of real gross domestic product to the international value of the rupee, Indian b.Rapid growth of the money supply imports, and Indian exports? a.Increase, Increase, Increase b.Increase, Increase, Decrease C. Increase, Decrease, Increase d.Decrease, Increase, Decrease 14. Which of the following is a cause of hyperinflation? c.Unanticipated decrease in aggregate demand d.Unanticipated increase in aggregate supply

  10. Economics Sample Questions 15. The balance of trade of a country is a systematic record of a.all import and transactions of a during a ii.Inflation benefits the bond-holders. given period normally a year b.Difference between the imports and exports correct? of goods c.economic transaction between the government of one country to another d.Difference between the imports and exports iv.Neither 1 nor 2 of goods and services 16. Consider the following statements: i.Inflation benefits the lenders. Which of the statements given above is/are i.1 only ii.2 only iii.Both 1 and 2

  11. Economics Sample Questions 19. In the context of Indian economy, 'sterilization' refers to: a.Clearing bank's balance sheet of non- performing assets b.Undertaking of 'bad loans' by asset reconstruction companies c.purchase and sale of government securities by the RBI d.regulation of P-notes by SEBI 20. Priority Sector Lending by banks in India constitutes a.Lending to agriculture b.Holding NABARD bonds c.Lending to renewable energy sector d.All of the above