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Set 3: Part 1: Economics MCQ for Prelims
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Set 3: 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
in q1 import of gold doesn't comes under current account it falls under capital account payment side
Akshay Kadam
2 months ago
Sure? Let me recheck then.
doubt, sir in Q6 right ans is 'CPI' which is describe as Headline inflation
Akshay Kadam
8 months ago
Yess U r ryt. I got that question wrong. Thanks for Info. The RBI has been using headline Consumer Price Index (Combined) inflation as the benchmark for all monetary policy stance from April 2014 onwards.
  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 1. With reference to Balance of Payments, which of the following constitutes/constitute the Current Account? i.Balance of trade ii.Grants received from other countries ii. Balance of services iv.lmport of gold Select the correct answer using the code given below. a.1 only b.1 and 3only c. 1, 3 and 4 d.1, 2, 3 and 4 2. Which of the following are conditions conducive to Demographic Dividend? i. Large working age population ii. Ageing population of other countries ili. Availability of social sector services Select the correct answer using the code given below a.1 only b.1 and 3 only c.2 and 3 only d.1, 2 and 3

  3. Economics Sample Questions 3. What is order of precedence for the following once a company is declared bankrupt and is liquidated? 1. Lender bank 2. Bond holders of the company 3. Share holders 4. Convertible share holders 5. Debenture holders Select the correct answer using the code given below a. 1-2-3-4-5 b. 5-1-2-3-4 C. 1-2-5-4-3 d. 5-1-2-4-3 4. Those goods which have positive relationship between price and quantity demanded are called as? a. Veblen good b. Essential Goods c. Giffen Good d. Capital Good

  4. Economics Sample Questions 5. Which of the following is correctly explained as 'as income rises, the proportion of income spent on food falls, even if absolute expenditure on food rises'? a.Engel's law b.Laffer curve c.Inflation elasticity of employment d.Lorentz curve 6. Which of the following Price Indices of India is considered for measuring 'Headline Inflation'? a.GDP Deflator b.CPI-AL/RL C.CPI-IW d.WPI

  5. Economics Sample Questions 8. Amber box subsidy' is a term used in context of: 7. Devaluation of currency can correct a Balance of Payments deficit because: a.It lowers price of exports in foreign currency a.WTO and rises price of imports in home currency b.IMF raises price of exports in foreign currency c.Organisation for Economic Co-operation and lowers price of imports in home currency and Development raises price of exports and imports in foreign currency d.It lowers price of exports and imports in home currency d.World Bank

  6. Economics Sample Questions 9. Consider the following statements: i.CPI data is released on bi-monthly basis by money' in context of economics? Central Statistical Organization. ii.WPl data is released every month by Office petroleum products of Economic Adviser in the Ministry of Finance. Select correct answer using codes given below: a.1 only b.2 only c.Both 1 and 2 d.Neither 1 nor 2 10. What is the meaning of the term 'hot a.Revenue generated from export of b.Ecological cost of thermal power plants c.Capital invested which is generated from ambiauous sources d.Capital which is frequently transferred between financial institutions in an attempt to maximize interest or capital gain

  7. Economics Sample Questions 11. Foreign Direct Investment(FDI) and Foreign Institutional Investment(FII) are distinct in terms of? 12. Which among the following correctly denotes the Primary Deficit? a.Revenue Expenditure - Revenue Receipts b.Sum of the net increase in holdings of treasury bills of the RBl and its contributions a.FDI brings capital, technology & management and Fll brings only capital b.FDI targets specific sectors and Fll help in to the market borrowing of the government. increasing foreign capital availability c.Fll is considered more stable d.Fll targets both primary and secondary d.Fiscal Deficit Interest Payments market while FDI targets only primary c.Budgetary Deficit + Govt. market borrowings and liabilities fppt.comm

  8. Economics Sample Questions 13. What is the meaning of 'blue chip stocks' 14. Quantitative Easing' is used to counter in the context of capital markets? a.Stocks of well-established electronics manufacturing companies b.Stocks of deep sea fishing firms c.Stocks of a large, well-established and financially sound company that has operated for many years d.Stocks of minimum risk, government rurn enterprises which of the following? a.Liquidity Trap b.Fiscal Deficit c.Counterfeiting d.Hyperinflation

  9. Economics Sample Questions 15. Wnich of he folowing local defintons of 16. ho opDortunty cost of a cood is: money stand for 'aggregate monetary resources'? a.MO b.M1 . 2 d.M3 a.Time spent on speculation of the price of the good b.Maintenance expenditure of the good .Quantity of other goods sacrificed to get another unit of that good d.Loss of savings due to consumption expenditure

  10. Economics Sample Questions 17. Cost-push inflation is caused by a change in: 18. Which of the following is correct explanation of the Phillips curve? a. Demand b. Supply c. Money supply d. Interest rates a. Inflation causes unemployment b. Inflation reduces unemployment c. Unemployment causes inflation d. Inflation and unemployment are independent of each other