190+ General Economics 2 Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Arts in Political Science (BA political science) , Union Public Service Commission (UPSC) , Indian Administrative Service (IAS) .

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151.	Attainment of economic self reliance and removal of poverty were the main objectives of :
A.	First Five Year Plan
B.	Fourth Five Year Plan
C.	Fifth Five Year Plan
D.	Sixth Five Year Plan
Answer» C. Fifth Five Year Plan

152.	For internal financing of Five Year Plans, the government depends on:
A.	Taxation only
B.	Taxation and public borrowing
C.	Public borrowing and deficit financing
D.	Taxation, public borrowing & deficit financing
Answer» D. Taxation, public borrowing & deficit financing

153.	The Eighth Five Year Plan gave priority to:
A.	Industrial growth
B.	Promotion of exports
C.	Increasing agricultural productivity
D.	Employment generation
Answer» D. Employment generation

154.	The strategy of rolling plan was adopted during the Prime Ministership of ;
A.	Lal Bahadur Shastri
B.	Indira Gandhi
C.	Morarji Desai
D.	Rajiv Gandhi
Answer» C. Morarji Desai

155.	Who among the following authored the book 'Planned Economy for India' in 19
A.	D.R. Gadgil
B.	M.N. Roy
C.	M. Viswesvaraya
D.	V.K.R.V Roy
Answer» C. M. Viswesvaraya

156.	The Planning Commission implemented three Annual Plans instead of Five Year Plans between:
A.	The Third and Fourth Plan
B.	The Fifth and Sixth Plan
C.	The Sixth and Seventh plan
D.	The Seventh and Eighth Plan
Answer» A. The Third and Fourth Plan

157.	What is the correct sequence of the following strategies used for Five Year Plans in India? 1. Balanced growth 2. Rehabilitation of the economy 3. Industrial development
A.	1,3,2
B.	2,1,3
C.	2,3,1
D.	3,2,1
Answer» C. 2,3,1

158.	The steel plants at Durgapur, Bhilai and Rourkela were established during the period of:
A.	First Five Year Plan
B.	Second Five Year Plan
C.	Third Five Year Plan
D.	Fourth Five Year Plan
Answer» B. Second Five Year Plan

159.	Eighth Five Year Plan covered the period:
A.	1990‐95
B.	1989‐94
C.	1991‐96
D.	1992‐97
Answer» D. 1992‐97

160.	The term 'Hindu rate of growth' refers to the 3.70% per annum growth rate achieved by the Indian economy over the first six Five Year Plans'. The term was coined by:
A.	J.N. Bhagwati
B.	K.N. Raj
C.	Raj Krishna
D.	Sukhamoy Chakravarty
Answer» C. Raj Krishna

161.	Which of the following statements is correct?
A.	Planning Commission is a constitutional body
B.	The Prime Minister is the Chairman of the Planning Commission.
C.	The Minister of Planning is always necessarily the Deputy Chairman of Planning Commission
D.	The draft plan is prepared by the National Development Council
Answer» B. The Prime Minister is the Chairman of the Planning Commission.

162.	Economic planning is an essential feature of:
A.	Dual economy
B.	Mixed economy
C.	Capitalist economy
D.	Socialist economy
Answer» D. Socialist economy

163.	The main model that formed the basis of the strategy of the Second Five Year Plan was formulated by :
A.	V.K. R.V. Rao
B.	PC. Mahalonobis
C.	Dr.Gadgil
D.	P.R.Brahamandas
Answer» B. PC. Mahalonobis

164.	A major shift in the Eighth Five Year Plan from it preceding ones was:
A.	The concentration of investment in infrastructural sector
B.	Major investment in agriculture with a view to promoting exports
C.	Major investment in sectors where industrial sickness has been a chronic problem
D.	The significant reduction in public sector outlays
Answer» B. Major investment in agriculture with a view to promoting exports

165.	The objective of ‘inclusive growth’ was first used in which of the following plans?
A.	First
B.	Eighth
C.	Tenth
D.	Eleventh
Answer» D. Eleventh

166.	Which one of the following is related to the commodity money?
A.	Stones
B.	Cattles
C.	Grains
D.	All of the above
Answer» D. All of the above

167.	Which of the following is not related to commodity money?
A.	All commodities were not uniform in quality
B.	It is difficult to store and prevent the loss of value
C.	They lacked portability
D.	There was no problem of coincidence of wants
Answer» D. There was no problem of coincidence of wants

168.	Find the odd man out with reference to money
A.	Copper
B.	Silver
C.	Cattles
D.	Gold
Answer» C. Cattles

169.	Which of the following is not correctly matched?
A.	Bows and arrows – used as money in the hunting society
B.	Cattles – used as money in the pastoral society
C.	Grains – used as money by the agricultural society
D.	Gold and silver coins – used as money in which the face value is greater
Answer» C. Grains – used as money by the agricultural society

170.	Assertion (A): Necessity led to the invention of money. Reason(R) : Barter system failed to perform the major functions of money.
A.	(A) is true but (R) is false.
B.	Both (A) and (R) are false
C.	Both (A) and (R) are true and (R) is the correct explanation of (A)
D.	Both (A) and (R) are true but (R) is not the correct explanation of (A)
Answer» C. Both (A) and (R) are true and (R) is the correct explanation of (A)

171.	Which one of the following is an example of “fiat money?”
A.	Precious stones
B.	Grains
C.	Gold coins
D.	Currency notes
Answer» D. Currency notes

172.	In the case of paper currency
A.	Intrinsic value and face value are equal
B.	Intrinsic value is less than face value
C.	Intrinsic value is greater than face value
D.	None of the above
Answer» B. Intrinsic value is less than face value

173.	‐‐‐‐‐‐ is not an example of ‘near money’
A.	Bill of exchange
B.	Treasury bills
C.	Bond
D.	Currency notes
Answer» D. Currency notes

174.	Which of the following is a primary function of money?
A.	Measure of value
B.	Store of value
C.	Standard of deferred payments
D.	Basis of credit
Answer» A. Measure of value

175.	The most liquid form of all assets is
A.	Bonds
B.	Debentures
C.	Bill of exchange
D.	Currency note
Answer» D. Currency note

190+ General Economics 2 Solved MCQs

Attainment of economic self reliance and removal of poverty were the main objectives of :

For internal financing of Five Year Plans, the government depends on:

The Eighth Five Year Plan gave priority to:

The strategy of rolling plan was adopted during the Prime Ministership of ;

Who among the following authored the book 'Planned Economy for India' in 19

The Planning Commission implemented three Annual Plans instead of Five Year Plans between:

What is the correct sequence of the following strategies used for Five Year Plans in India? 1. Balanced growth 2. Rehabilitation of the economy 3. Industrial development

The steel plants at Durgapur, Bhilai and Rourkela were established during the period of:

Eighth Five Year Plan covered the period:

The term 'Hindu rate of growth' refers to the 3.70% per annum growth rate achieved by the Indian economy over the first six Five Year Plans'. The term was coined by:

Which of the following statements is correct?

Economic planning is an essential feature of:

The main model that formed the basis of the strategy of the Second Five Year Plan was formulated by :

A major shift in the Eighth Five Year Plan from it preceding ones was:

The objective of ‘inclusive growth’ was first used in which of the following plans?

Which one of the following is related to the commodity money?

Which of the following is not related to commodity money?

Find the odd man out with reference to money

Which of the following is not correctly matched?

Assertion (A): Necessity led to the invention of money. Reason(R) : Barter system failed to perform the major functions of money.

Which one of the following is an example of “fiat money?”

In the case of paper currency

‐‐‐‐‐‐ is not an example of ‘near money’

Which of the following is a primary function of money?

The most liquid form of all assets is

In India the standard money is

In the case of a ‘full bodied money’:

In the case of a ‘token money’

Demand for money arises from

People are said to be suffered from “money illusion” since:

Which of the following is a concept of ‘broad money”:

In the Quantity Theory of Money, Fischer states that while other things remains the same:

Inflation is a situation where

‘Stagflation’ is a situation where the economy faces:

Cost – push inflation arises due to:

Which of the following is not a function of a commercial bank:

Which of the following represents the major functions of the central bank?

Find the odd man out:

Bank rate refers to:

Open market operation influences:

Which of the following is an anti‐deflationary monetary policy?

Which of the following is not a measure of selective credit control?

176.	In India the standard money is
A.	Gold coins
B.	Rupee
C.	Dollar
D.	Paisa
Answer» B. Rupee

177.	In the case of a ‘full bodied money’:
A.	Intrinsic value is less than face value
B.	Intrinsic value is equal to face value
C.	Intrinsic value is greater than face value
D.	None of the above
Answer» B. Intrinsic value is equal to face value

178.	In the case of a ‘token money’
A.	Face value is less than the metal value
B.	Face value is equal to the metal value
C.	Face value is greater than the metal value
D.	None of the above
Answer» C. Face value is greater than the metal value

179.	Demand for money arises from
A.	Money acts as a medium of exchange
B.	Money acts as a store of value
C.	Both A and B
D.	Neither A nor B
Answer» C. Both A and B

180.	People are said to be suffered from “money illusion” since:
A.	People merely consider with nominal money holdings
B.	People consider the real money balances
C.	Both A and B
D.	None of the above
Answer» A. People merely consider with nominal money holdings

181.	Which of the following is a concept of ‘broad money”:
A.	M1
B.	M2
C.	M3
D.	All of the above
Answer» C. M3

182.	In the Quantity Theory of Money, Fischer states that while other things remains the same:
A.	Price level varies directly with the quantity of money
B.	Price level varies inversely with the quantity of money
C.	Value of money varies directly with the quantity of money
D.	None of the above
Answer» A. Price level varies directly with the quantity of money

183.	Inflation is a situation where
A.	Prices are falling
B.	Value of money is falling
C.	Value of money is rising
D.	All of the above
Answer» B. Value of money is falling

184.	‘Stagflation’ is a situation where the economy faces:
A.	Inflation
B.	Inflation as well as stagnation
C.	Stagnation
D.	None of the above
Answer» B. Inflation as well as stagnation

185.	Cost – push inflation arises due to:
A.	Rise in wages
B.	Rise in the prices of raw materials
C.	Rise in profit
D.	All of the above
Answer» D. All of the above