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Indian Economy Model Test 9 in English
Indian Economy Model Test Questions 9 in English
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 | Question 1 | 
Human Development Index (HDI) does not include which of the following socio-economic indicators?
| Infant mortality rate	 | |
| GNP per capita | |
| Life expectancy	 | |
| Literacy  rate | 
| Question 2 | 
Structural unemployment arises due to
| deflationary condition | |
| heavy industry bias | |
| shortage of raw materials | |
| inadequate productive capacity | 
| Question 3 | 
Which committee fixed poverty line in India?
| Laksawala Committee | |
| Narshiman Committee | |
| Rangarajan Committee | |
| None of these | 
| Question 4 | 
The Rao-Manmohan model of Economic development was initiated in the year
| 1982 | |
| 1985 | |
| 1991 | |
| 1995 | 
| Question 5 | 
Chronic poverty, refers to the persons/ households who have been
| poor for a long duration | |
| poor by birth | |
| poor in terms of low food consumption | |
| living below the poverty line | 
| Question 6 | 
Prevention of scheduled castes from the use of public wells and from entering schools is called
| social disabilities | |
| religious disabilities | |
| economic disabilities | |
| intellectual disabilities | 
| Question 7 | 
Where in India are coins minted?
| Delhi, Mumbai and Kolkata | |
| Delhi, Kolkata and Hyderabad | |
| Mumbai, Delhi and Bangalore | |
| Mumbai, Kolkata and  Hyderabad | 
| Question 8 | 
The reason for decrease in national income is not due to
| growth of population | |
| growth of production | |
| growth of expenditure	 | |
| growth of consumption | 
| Question 9 | 
Population explosion is associated with
| high birth rate and low death rate | |
| high birth rate and high death rate | |
| low birth rate and high  death rate | |
| low birth rate and low death rate | 
| Question 10 | 
Productivity in Indian Agriculture is low because of
| inefficient farming techniques		 | |
| lack of cheap and easy availability of credit | |
| absence of irrigation over a large part of the sown area	 | |
| all of these | 
| Question 11 | 
“Capital is essential only but it is not enough for the development”. This was said by
| Nurkse | |
| Dorner | |
| Adam Smith		 | |
| Marshall | 
| Question 12 | 
Which of the following is not included in the primary sector?
| forestry | |
| fishing | |
| water supply	 | |
| mining and quarrying | 
| Question 13 | 
Among the following products exported to western countries in which India stood first?
| Pepper | |
| Sandal | |
| Pearl | |
| Ivory | 
| Question 14 | 
The lead bank scheme was introduced during
| 1960 | |
| 1965 | |
| 1968 | |
| 1972 | 
| Question 15 | 
The basic distinction between urban and rural settlements is the
| population size | |
| population density | |
| function | |
| location | 
| Question 16 | 
In export trade, letter of credit  is produced by
| an exporter | |
| an importer | |
| customs authority | |
| shipping company | 
| Question 17 | 
The per capita income of an economy can be calculated by
| dividing GDP by population | |
| dividing GNP by population | |
| multiplying GNP by population | |
| dividing GNP by number of people employed | 
| Question 18 | 
Bank rate is raised during
| deflation | |
| inflation | |
| stable prices | |
| unemployment | 
| Question 19 | 
The three tier Panchayat Raj system was introduced by
| Ashok Mehta Committee | |
| Balwani Rai Mehta Committee | |
| Reforms Committee	 | |
| Administrative Committee | 
| Question 20 | 
The ‘Great Depression’ occurred in
| 1830 | |
| 1930 | |
| 1980 | |
| 1880 | 
| Question 21 | 
The first Five-year plan of India was launched n
| 1947 | |
| 1951 | |
| 1956 | |
| 1961 | 
| Question 22 | 
Which one of the following public enterprises is not a ‘Navaratna’ category?
| Oil and Natural Gas Corporation (ONGC) | |
| Mahanagar Telephone Nigam Limited (MTNL) | |
| Bharat Sanchar Nigam Limited (BSNL) | |
| Indian Oil Corporation (IOC) | 
| Question 23 | 
The first Indian Bank was
| Trade Bank	 | |
| Imperial Bank | |
| Presidency Bank Calcutta | |
| None of these | 
| Question 24 | 
C2C is
| Consumer to Consumer | |
| Customer to Customer | |
| Customer to Consumer	 | |
| All of these | 
| Question 25 | 
By which type of Bank Account can the holder deposit or withdraw money many numbers of times in a day without restriction?
| Savings Account	 | |
| Fixed Deposit	 | |
| Current Account | |
| Recurring Deposit | 
| Question 26 | 
Which country stands first in planning?
| Soviet Russia	 | |
| India | |
| America | |
| Japan | 
| Question 27 | 
The first Agricultural Census in India was conducted in
| 1965-66	 | |
| 1970-71 | |
| 1975-76 | |
| 1980-81 | 
| Question 28 | 
- Subba Rao is the Governor of Reserve Bank of India. What does ‘D’ stand for?
| Durvi | |
| Duvvi | |
| Divivi | |
| Duvvuri | 
| Question 29 | 
The GDP growth target of 10th plan was
| 8.7% | |
| 9% | |
| 9.3%	 | |
| 8% | 
| Question 30 | 
The first Planning Commission of India was set up in
| May, 1960 | |
| July, 1953 | |
| March, 1950 | |
| June, 1973 | 
| Question 31 | 
Which of the following non-economic factors determine the economic development of a country?
- Social set up II. Religion
| I and II are correct | |
| I, III and IV are correct | |
| I, II and III are correct	 | |
| IV alone is correct | 
| Question 32 | 
The foremost economic problem of India’s agricultural labourers is
| low income | |
| heavy indebtedness | |
| poor standard of living	 | |
| absence of organized activity | 
| Question 33 | 
Industrial sickness is nothing but
| any one part of the factory is being affected | |
| unable to pay back the dept | |
| unable to create surplus income and running the industry only by receiving the debt | |
| change in the ownership of industry | 
| Question 34 | 
The indicator(s) of development according to modern ideology is/are
| growth in national income | |
| growth in per capita income | |
| high rate of capital | |
| all of these | 
| Question 35 | 
New Entrepreneurs Agency was established in
| 1956 | |
| 1961 | |
| 1980 | |
| 1986 | 
| Question 36 | 
Female literacy rate is below 30% (2001 census) in the districts of
| Kerala | |
| Tamil Nadu | |
| Uttar Pradesh	 | |
| Karnataka | 
| Question 37 | 
During the second Five-year plan period, the planners worked out the capital output ratio at
| 1 : 5 : 1	 | |
| 5 : 4 : 1 | |
| 2 : 3 : 1	 | |
| 4 : 3 : 7 | 
| Question 38 | 
The expansion of HDI is
| Hindi Development Institute | |
| Human Development Index | |
| Human Development Investment | |
| None of these | 
| Question 39 | 
Who is the Governor of Reserve Bank of India at present?
| B.Y. Reddy | |
| C. Rangarajan | |
| Bimal Jalan		 | |
| D. Subbarao | 
| Question 40 | 
Who is the chairman of 12th Finance Commission?
| C. Rangarajan | |
| K.C. Panti | |
| Kelkar | |
| Madhavan Ravindra | 
| Question 41 | 
Which of the following is not correctly matched?
| Central Vigilance Commission	- Kripalani Committee | |
| Father of All India Service		- Sardar Vallabhai Patel | |
| Secretary Genral of Non-Aligned	- Dr. Rajendra Prasad | |
| Union Public Service Commission	- A.M. Khusru | 
| Question 42 | 
Agricultural holding tax was recommended by
| John Mathai Committee | |
| Bhoothalingam Committee | |
| Wanchoo Committee	 | |
| Raj Committee | 
| Question 43 | 
Indra Awas Yojana (IAY) scheme aimed at
| providing loan assistance	 | |
| providing houses at free of cost | |
| providing transport facilities | |
| none of these | 
| Question 44 | 
Which commodity forms the single largest item if India import?
| Capital goods	 | |
| Food and allied products | |
| Gold | |
| Oil(fuel) | 
| Question 45 | 
As per  RBI stipulation domestic banks are required to provide _______percent of their net bank credit to priority sector
| 32 | |
| 40 | |
| 10 | |
| 25 | 
| Question 46 | 
The Rajiv Gandhi Udyami Mitra Yojana was launched in
| 2006 | |
| 2007 | |
| 2008 | |
| 2009 | 
| Question 47 | 
The National Rural Employment Programme was implemented in Tamil Nadu in the year
| 1980 | |
| 1990 | |
| 1970 | |
| 1960 | 
| Question 48 | 
Economic drain theory was populated by
| The Britishers in India | |
| Dadabhai Naoroji | |
| Vera Anstey	 | |
| V.V. Bhatt | 
| Question 49 | 
The policy RBI follows for control of inflation is
| increase in Repo rate and CRR | |
| decrease in Repo rate and increase in CRR | |
| decrease in Repo rate and CRR | |
| decrease in bank rate | 
| Question 50 | 
Consider the following statements:
- Assertion (A): Increased spending on civil administration and defence expenditure in India’s national income is an unwelcome feature.
- Reason(R): The contribution of these sector does not generate durable income yielding assets to the country.
| Both (A)  and (R) are true, but (R) is not the correct explanation of (A) | |
| Both (A) and (R) are true and (R) is not correct explanation of (A) | |
| (A) and (R) are false | |
| (A) is true but (R) is false | 
| Question 51 | 
Prime Minister Employment Generation Program (PMEGP) was implemented in India by merging the schemes of
| PMRY and REGP | |
| NREP and IRDP | |
| IAY and IRDP		 | |
| SFDA and MFAL | 
| Question 52 | 
The most dominant contributor to GDP in recent years is
| agriculture | |
| industry | |
| services | |
| exports | 
| Question 53 | 
Which of the following is a feature of Tamil Nadu economy?
| High rural – urban migration | |
| Low man-farm employment | |
| High urbanization | |
| Low urbanization | 
| Question 54 | 
Which one of the following sectors is the major contributor(s) to Tamil Nadu state’s gross domestic product?
| Agriculture & Allied sectors | |
| Secondary sector | |
| Service sector	 | |
| Informal sector | 
| Question 55 | 
When there is increase in economic development the share of tertiary (service) sector in National Income will
| increase | |
| decrease | |
| remain constant	 | |
| remain proportional | 
| Question 56 | 
Who was not the member of the first National Income Committee of 1949 ?
| P.C. Mahalanobis | |
| D.R. Gadgil | |
| Dadabhai Naoroji | |
| V.K. R.V. Rao | 
| Question 57 | 
India is a member of which of the following?
| Asian Development Bank | |
| Asia- Pacific Economic Corporation | |
| Colombo Plan		 | |
| Organization for Economic Co-operation and Development | 
| Question 58 | 
Consider the following statements
- Assertion(A): Regional disparities in development have been continuously decreasing in India due to planning.
- Reason(R): New technology in Indian agriculture is size neutral but not resource nrutral.
- Now select your answer according to the coding scheme given below:
| Both (A)  and (R) are true, but (R) is not the correct explanation of (A) | |
| Both (A) and (R) are true and (R) is not correct explanation of (A) | |
| (A) is true but (R) are false | |
| (A) is true but (R) is false | 
| Question 59 | 
The Special Economic Zone Act was passed in Indian Parliament in
| May 2005 | |
| April 2004 | |
| May 2008	 | |
| April 2007 | 
| Question 60 | 
Which is the largest public sector bank in India?
| Indian Bank		 | |
| Indian Overseas Bank | |
| Canara Bank		 | |
| State Bank of India | 
| Question 61 | 
The first ‘Special Economic Zone’ created in Tamil Nadu is in
| Coimbatore | |
| Chennai | |
| Madurai | |
| Salem | 
| Question 62 | 
Which of the following is a direct tax?
| Sales tax | |
| Excise duty		 | |
| Excise duty		 | |
| None of these | 
| Question 63 | 
Double counting means
- Counting the value of a product at the final stage of production.
- Counting the value of a product at each stage of production
- Counting the value of a product more than once
| I only	 | |
| III only	 | |
| I and II | |
| I and III | 
| Question 64 | 
Which Five Year Plan gave importance to development of basic and heavy industries?
|  I	 | |
| II | |
| III | |
| IV | 
| Question 65 | 
The planning commission was set up in
| 1947 | |
| 1948 | |
| 1949 | |
| 1950 | 
| Question 66 | 
When was Agricultural Price Commission set up?
| 1950 | |
| 1955 | |
| 1965 | |
| 1975 | 
| Question 67 | 
When was National Agricultural Insurance Scheme introduced?
| 1979-1980		 | |
| 1989-1990 | |
| 1999-2000	 | |
| 2009-2010 | 
| Question 68 | 
The architect of the Second Five Year Plan
| Jawaharlal Nehru	 | |
| Indira Gandhi | |
| V.V. Giri | |
| P.C. Mahalanobis | 
| Question 69 | 
SARFAESI Act was introduced for the purpose of
| controlling stock exchanges | |
| regulating capital markets | |
| streamlining the financial system | |
| enabling the banks to realize their views | 
| Question 70 | 
What is Broad money?
| Currency with public + demand deposits of the public | |
| Currency with public + post office savings deposits | |
| Currency with public + time deposits of public with banks + demand deposits | |
| Currency with public + derived deposits | 
| Question 71 | 
Disposable income is equal to
| personal income minus subsidies | |
| personal income minus taxes | |
| personal income minus transfer payment | |
| national income minus depreciation | 
| Question 72 | 
Annual rate of inflation of all commodities is 2009-10 was
| 14.4%	 | |
| 10%	 | |
| 8% | |
| 11% | 
| Question 73 | 
What is the rank of Tamil Nadu in economic growth among the states in India during 2009-10?
| 3rd | |
| 4th	 | |
| 5th	 | |
| 6th | 
| Question 74 | 
The largest contribution to GDP still comes from
| agriculture | |
| manufacturing industries | |
| construction | |
| services | 
| Question 75 | 
Which one of the following factors does not influence velocity of circulation of money?
| Quantity of money | |
| Selling cost of business firms | |
| Credit facilities | |
| Business conditions | 
| Question 76 | 
Commonwealth Bank of _______ in August 2010, opened its first Branch in India in Mumbai
| Denmark | |
| Austrialia | |
| Canada | |
| Ireland | 
| Question 77 | 
Which one of the following comes under NBFIs?
| Commercial Bank	 | |
| Co-operative Bank | |
| UTI | |
| None of these | 
| Question 78 | 
In money supply M3= M1+
| net time deposits of banks | |
| total deposits with Post Office savings bank | |
| net demand deposits of banks | |
| none of these | 
| Question 79 | 
Inflation is most often caused by
| supply side forces increase costs to producers | |
| demand side forces which depress the level of consumer spending | |
| rapid expansion of money supply | |
| unreasonable wage demands by labour unions | 
| Question 80 | 
An increases in the growth rate of money supply is most likely to be followed by
| recession | |
| decline in economic activity | |
| recession and decline in economic activity | |
| inflation | 
| Question 81 | 
Match List I correctly with List II and select your answer using the codes given below:
Concepts of National Income
List I                                 List II
- GNP 1. Value of output produced by factors of production by domestic residents
- GDP 2. GNP- depreciation
- NNP 3. GDP_ depreciation
- NDP 4. GDP + Income from abroad
| 2	3	1	4 | |
| 3	4	1	2 | |
| 4	1	2	3 | |
| 1	2	3	4 | 
| Question 82 | 
An example of indirect tax is
| Income tax	 | |
| Sales tax | |
| Wealth Tax	 | |
| Gift tax | 
| Question 83 | 
The non tax  revenue of the Central Government does not include
| fiscal services | |
| dividend and profits | |
| economic services | |
| customs duties | 
| Question 84 | 
If the GDP is measured at the price prevailing at a point of time, then it is called
| GDP current price | |
| GDP market price | |
| GDP constant price | |
| (A)+(B)+(C) | 
| Question 85 | 
The product method of measuring GDP involves
| incomes generated from the production of goods and services | |
| adding up the value of everything produced in the country during the year | |
| adding up all expenditures of final output | |
| none of the above | 
| Question 86 | 
A higher interest rate might induce households to ______ but businesses to _______
| save more, borrow less | |
| save less, borrow more | |
| save more, borrow more | |
| save less, borrow less | 
| Question 87 | 
A developing economy has the following features
| Low per capita income, chronic unemployment occupational pattern | |
| Population pressure | |
| Only (A) | |
| (A) and (B) | 
| Question 88 | 
Deflation refers to a condition of _______ prices.
| falling | |
| rising | |
| constant | |
| moderate | 
| Question 89 | 
Which is the correct sequence of various sectors in GDP of India in the descending  order?
| Primary sector, Secondary Sector, Tertiary sector | |
| Primary sector, Tertiary sector, Secondary sector | |
| Secondary sector, Tertiary sector, Primary sector | |
| Tertiary sector, Secondary sector, Primary sector | 
| Question 90 | 
The National Food Security Act was gazette in
| September, 2013	 | |
| August 2013 | |
| September 2012		 | |
| August 2012 | 
| Question 91 | 
Net National Income (NNI) does not include
| Indirect business taxes | |
| Corporate income taxes | |
| Depreciation charges	 | |
| The rental value of house-owners | 
| Question 92 | 
Till which Five Year Plan, employment strategy had been growth linked?
| Fifth Five Year Plan | |
| Sixth Five Year Plan | |
| Seventh Five Year Plan		 | |
| Eighth Five Year Plan | 
| Question 93 | 
Given below are two statements, one labeled as assertion (A) and the other labeled as:
- Assertion(A): India’s Public Sector helped in the development of a sound industrial base,
- Reason (R): Public Sector is under State Information Appropriate Policies and providing financial and other support has helped the Public Sector.
| (A)  is correct but (R) is wrong | |
| Both (A) and (R) are correct | |
| (A) is wrong but (R) is correct | |
| Both (A) and (R) are wrong | 
| Question 94 | 
Rate of saving is measured as a proportion of Gross Domestic Product (GDP) at
| Constant prices	 | |
| Market prices | |
| Relative prices	 | |
| None of the above	 | 
| Question 95 | 
National Income is
| Income of the Central Government | |
| Income of the Central & State Government | |
| Total of factor incomes | |
| Profits of the Public sector | 
| Question 96 | 
The new agricultural technology can best be described as
| Land augmenting | |
| Labour augmenting | |
| Labour displacing	 | |
| Labour displacing	 | 
| Question 97 | 
The socialist pattern of society was first articulated in the
| first five year plan | |
| Annual plan | |
| Second plan	 | |
| Eighth plan | 
| Question 98 | 
The Eleventh five year plan was implemented during the period
| 2005-2010 | |
| 2002-2007 | |
| 2007-2012 | |
| 2006-2011 | 
| Question 99 | 
According to the National Human Development Report (NHDR) 2001, Tamil Nadu scored the
| 7th rank | |
| 3rd rank | |
| 4th rank | |
| 9th rank | 
| Question 100 | 
Who among the following computed National Income on the basis of scientific method?
| Prof. Mahalanobis | |
| Dr. K.N. Raj | |
| Dr. V.K. R.V. Rao | |
| Dr. Vakil | 
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