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Set 5: Part 1: Economics MCQ for Prelims
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Set 5: Part 1: Economics MCQ For Prelims!!

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

U
Unacademy user
  1. Economics Test Series For Prelims Master Economics with the help of Conceptual Objective unacademy Practice Questions, By Prof. Akshay D Kadam https://unacademy.com/user/AkshayDKadan


  2. Which of the following is the correct descending sequence of composition of Country's Forex reserve? Consider the following statements about Beef exports from India and mark the correct ones 1) India is the world's third-biggest exporter of beef according to a report by the Food and Agriculture Organisation (FAO) and the Organisation for a) Foreign Currency Assets> Gold> SDRs> Economic Cooperation (OECD). Reserve Position in the IMF b) Foreign Currency Assets> SDRs> Gold European countries- 11 of the top 15 Reserve Position in the IMF c) Gold > Foreign Currency Assets > SDRs> were in Europe. Reserve Position in the IMF d) Gold> Foreign Currency Assets> Reserve meat is Vietnam Position in the IMF> SDRs 2) The bulk of India's buffalo meat exports are to destinations for buffalo meat by value in 2015-16 3) The biggest export market for Indian buffalo Options a) 1 and 3 b) Only 1 c) 1 and 2 d) 2 and 3 https://unacademy.com/userlAkshayDKadam


  3. Unemployment which exists in Which of the following comes under the ambit of any economy due to people Consolidated Fund of India? being in the process of moving 1)All revenues received by the Government of from one job to another is termed as? a) Cyclical unemployment b) Structural unemployment of advances. c)Frictional unemployment3)All money received by the government in d) None of the above India. 2)All loans raised by the Government by the issue of treasury bills, loans or ways and mean:s repayment of loans. Select the correct answer using the codes given below a) 1 and 2 only b) 2 and 3 only c) 1 and 3 only d) 1, 2 and 3 https://unacademy.com/userlAkshayDKadam


  4. Gilt-edged market means a) Bullion market b) Market of government securities a) Most favoured nation treatment c) Market of guns d) Market of pure metal Which one among the following is not a mandate of World Trade Organization? b) Lowering trade barriers with negotiations c) Providing financial support to the countries having deficit balance of payments d) Discouraging unfair trade practices such as anti-dumping and export subsides https:/lunacademy.com/userlAkshayDKadam


  5. 82) Which of the following measures The present Indian monetary should be taken when an economy is system is based on going through inflationary pressures? a)Gold Reserve System 1) The direct taxes should be increased. b)Proportional Reserve System 2) The interest rate should be increased. c)Convertible Currency System 3) The public spending should be ncreased Select the correct answer using the code given below: Code: a)1 only b)2 only c)2 and 3 d)Minimum Reserve System 1 d) and 2 https://unacademy.com/userlAkshayDKadam


  6. Which of the following is Which of the following is India's largest agricultural used for the measurement of commodity by export value and Import Value? distribution of income? a) Laffer Curve b) Engel's Law c) Lorenz Curve d) Philip Curve a) Basmati Rice By Export Value and Vegetible Edible Oil by Import Value b) Tea By Export Value and Vegetible Edible Oil by Import Value C) Basmati Rice By Export Value and Pulses Import Value d) Tea By Export Value and Pulses by Import Value https://unacademy.com/user/AkshayDKadam


  7. Consider the following statements and Consider the following statements and mark the correct one - 1) India is one of the largest producers of 1) Gross cropped area is the total area oilseeds in the world and this sector occupies an important position in the agricultural economy. 2) Edible Oils have been India's largest crops but is counted only once. import commodity. This is because the Which of the above statements are consumption is high, and productivity is true? low. Which of the above statements are true? b) Only 2 is correct a) Only 1 is correct b) Only 2 is correct c) Both 1 and 2 are correct d) Neither 1 nor 2 is correct mark the correct one - 5 sown once as well as more than once in particular year. 2) Net Sown Area is the area sown with a) Only 1 is correct c) Both 1 and 2 are correct d) Neither 1 nor 2 is correct https://unacademy.com/user/AkshayDKadam


  8. Consider the following statements and Consider the following statements and mark the correct one - 1) Thailand, Indonesian and Malaysia1) In terms of Million tons; India are the top natural r bber producingproduces more Fruits and Vegetables countries 2) Kerala accounts for more than 90 2) India has emerged as Second largest Percent of total rubber production of the producer of Fruits and vegetables after Country Which of the above statements are true? Which of the above statements are true? a) Only 1 is correct b) Only 2 is correct c) Both 1 and 2 are correct d) Neither 1 nor 2 is correct mark the correct one - than Food grains. China. a) Only 1 is correct b) Only 2 is correct c) Both 1 and 2 are correct d) Neither 1 nor 2 is correct https://unacademy.com/user/AkshayDKadam


  9. Consider the following statements about distribution of Food Grains through Public Type of revolution Product distribution system 1) Minimum Support Price (MSP) is the price 2) Silver Revolution B) Fruits at which Central Government Procures food 3) Pink Revolution C) Meat grains 2) Central Issue Price(CSP) is the price at Options which government makes these food grains a) 1-A, 2-B, 3-C, 4-D available to states. Match the following pairs 1) Golden Revolution A) Eggs 4) Grey Revolution D) Fertilizers b) 1-B, 2-A, 3-C, 4-D | c) 1-A, 2-B, 3-D, 4-C d) 1-8, 2A, 3-D: 4-C 3) FCI fix Retail price to be charged at Fair price shops under PDS Which of the above statements are Correct? a) 1 and 2 is correct b) 2 and 3 is correct c) 1 2 and 3 are correct d) 1 and 3 are wrong https://unacademy.com/userlAkshayDKadam


  10. Arrange the stages of Economic Consider the following statements about GVA Integration in correct sequence: and GDP 1.) Free Trade Agreement 2.) Preferential trade Agreement Production taxes Production subsidies. 3.) Common Market 4.) Custom Union Select the correct answer using Which of the above statements are correct the codes given below a) 1-2-3-4 b) 2-1-3-4 c) 2-1-4-3 d) 1-3-2-4 1) GVA at basic prices GVA at factor cost + 2) GDP at market prices GVA at basic prices + Product taxes- Product subsidies. a) Only 1 b) Only 2 c) Both are correct d) None of the above https://unacademy.com/userlAkshayDKadam


  11. Consider the following statements Consider the following statements about India's Forex about different economic terms- 1) Higher value of Primary deficit is a 1) Indian Forex reserves are on account of capital key vulnerability of India compared to account surplus while Chinese forex reserves are on other emerging economies. 2) Fiscal deficit includes SLR in it. 3) Fiscal deficit includes debt creating Chinese Forex reserves as they got accumulated as well as non debt creating capital through capital account flows instead of trade surplus. receipts Which of the above statements are a) Only 1 correct a) 2 and 3 b) 1 and 3 c) 1 and 2 d) 2 Reserve viz viz China's and mark correct statements - account current account surplus. 2) Quality of Indian Forex reserves is much better than Options - b) Only 2 c) Both 1 and 2 are correct d) Both 1 and 2 are wrong https://unacademy.com/user/AkshayDKadam


  12. Unemployment which exists in Nirbhaya Fund is Administered by? any economy due to changes in a) Ministry of Women and Child economic factors like introduction Development of computers or Artificial intelligence is termed as? a) Cyclical unemployment b) Structural unemployment c)Frictional unemployment d) None of the above b) Department of Economic Affairs (DEA) c) Ministry of Home affairs d) Empowered Committee of Officers appointed by Women and child development Minister. https://unacademy.com/userlAkshayDKadam


  13. Which of the following Consider the following statements about WPI and factors increase the Velocity of Money in 1) WPl is Compiled by Office of Economic Circulation? 1) Money in the hands of with base year of 2011-12 rich people 2) Inflationary times in prepared by Central Statistical Organisation economy 3) Financial inclusion Programme Implementation with base year of 4) Developed economy. 2011-12. Options- a) 1 2 and 4 b) 1 3 4 c) 2 3 4 d) 3 and 4 CPI Adviser under Ministry of Commerce and Industry 2) CPI Urbal, Rural and consolidated are (CSO) under Ministry of Statistics and Which of the above statements are correct a) Only 1 b) Only 2 c) Both are correct d) None of the above


  14. Consider the following statements about Consider the following statements about Revenue budget and Capital Budget Macr 1) Though Loan recovery is capital receipt;, the interest received on thesethat the government is spending most of loans is revenue receipt. 2) Though government borrowing to finance fiscal deficit do not fall under government may lead to higher real capital receipts; the interest paid on such interest rates. borrowings is placed under capital expenditure Which of the above statements are correct? a) 1 Only b) 2 Only c) Both 1 and 2 d) Neither 1 nor 2 Macroeconomics 1) An Expansionary Fiscal policy means its revenue. 2) Excessive domestic borrowing by the Which of the above statements are correct? a) 1 Only b) 2 Only c) Both 1 and 2 d) Neither 1 nor 2 https://unacademy.com/user/AkshayDKadam


  15. Consider the following statements about Which of the following actions are Banks Board Bureau 1) India ranked 130th out of 186 economies in recently released Index of action? Economic Freedom 2018. 2) The index was released by top US Branches based Think Tank, The Heritage Foundation. Which of the above statements are correct? a) 1 Only b) 2 Only c) Both 1 and 2 d) Neither 1 nor 2 instituted by RBI against banks which are brought under Prompt Corrective 1) Restriction on expansion of Bank 2) Restriction on Staff recruitment 3) Higher provisioning for loans 4) Stop on loans and Advances. Options - a) 1 2 and 3 Only b) 1 2 and 4 Only c) 2 3 and 4 Only d) 1 2 3 and 4 https://unacademy.com/userlAkshayDKadam


  16. Which of the following factors can affectConsider the following statements about the exchange rates? 1) Differentials in Inflation 2) Differentials in Interest Rates 3) Political Stability 4) Current-Account Deficits. Which among the above are correct statements? Options ) 2 3 and 4 b) 1 2 and 3 c) 1 2 and 4 d) 1 2 3 and 4 GDP and GVA measures of economic activity - 1) The GDP methodology gives picture of state of economic activity from producers' side or supply side.. 2) The GVA model gives picture from consumers' side or demand perspective. Which of the above statements are correct? a) 1 Only b) 2 Only c) Both 1 and 2 d) Neither 1 nor 2 0 https:/lunaca demy.com/user/AkshayDKadam


  17. Consider the following statements about )India's first Agri commodity options Reserve Tranche Position- 1) It is the primary means of financing the the following products? International Monetary Fund is througha) Onion members' quotas. 2) The difference between a member's c) Guar Seed quota and the IMF's holdings of its foreign d) Palm Oil currency kept with IMF is a country's Reserve Tranche Position (RTP). Which of the above statements are correct? a) 1 Only b) 2 Only c) Both 1 and 2 d) Neither 1 nor 2 contract has been launched for which of b) Pulses https://unacademy.com/userlAkshayDKadam


  18. Consider the following statements about India has agreed to work together for New Development Bank promoted by cooperation in pharmaceutical sector, for BRICS countries 1)In finances projects in BRICS countries Andijan region. Andijan region is part of only for sustainable development 2) In NDB every country has been assigned only one veto and no countryb) Myanmar enjoys any veto. Which of the above statements are correct? a) 1 Only b) 2 Only c) Both 1 and 2 d) Neither 1 nor 2 creating a free pharmaceutical zone in which of the following country? a) Bangladesh c) Iran d) Uzbekistan https://unacademy.com/user/AkshayDKadam


  19. Which of the following is/areWhich of the following is/are advantage of advantage of Fiat currency Bitcoins/Digital currency over Fiat currency? over Barter Trade? 1) It avoids double coincidence coincidence of wants over fiat currency. of wants 2) It offers Divisibility of Valueof Value over fiat currency 3) It offers Fungibility of value. 3) Bitcoins/Digital currency offers higher 4) Better storage of Value ofFungibility of value over fiat currency. labour. Options - a) 1 and 4 b) 1 2 and3 c) 1 2 and 4 d) 1 2 3 and 4 1) Bitcoins/Digital currency avoids double 2) Bitcoins/Digital currency offers more Divisibility 4) Bitcoins/Digital currency allows Deferred Payment, Future contractsover fiat currency. Options - a) 1 and 4 b) 1 2 and 3 c) 1 2 and 4 d) 2 3 and 4 https://unacademy.com/user/AkshayDKadam