190+ General Economics 2 Solved MCQs

1.

Trade as an engine of growth was propounded by :

A. Hirschman
B. Nurkse
C. Marshall
D. Robinson
Answer» B. Nurkse
2.

A decrease in the domestic currency price of foreign currency is:

A. Depreciation
B. Appreciation
C. Euro currency
D. Hedging
Answer» B. Appreciation
3.

Normal rate quoted in foreign exchange market is:

A. Arbitrage
B. Balance of trade
C. Exchange rate
D. Price rate
Answer» C. Exchange rate
4.

Balance of payment consist of:

A. Trade in visible
B. Trade in invisibles
C. International capital flows
D. All of the above
Answer» D. All of the above
5.

Invisible item are the part of ‐‐‐‐‐‐ account of balance of payment.

A. Current
B. Capital
C. Merchandise
D. None of the above
Answer» A. Current
6.

Devaluation of currency may result in:

A. Increase in export
B. Increase in import
C. Increased capital flow
D. Capital outflow
Answer» A. Increase in export
7.

Balance of payment take in to account:

A. Visible items
B. Invisible items
C. Both visible and invisible item
D. None of the above
Answer» C. Both visible and invisible item
8.

A fall in the price of Rupee in terms of foreign exchange is termed as:

A. Depreciation
B. Appreciation
C. Devaluation
D. Revaluation
Answer» A. Depreciation
9.

Transaction in travel, transportation and insurance between countries is included under:

A. Merchandise
B. Official reserves
C. Invisibles
D. None of the above
Answer» C. Invisibles
10.

Which of the following transaction is debit in balance of payment;

A. Export of merchandise
B. Export of service
C. Gift from foreigners
D. Gift to foreigners
Answer» D. Gift to foreigners
11.

Which is the component of capital account of balance of payment:

A. Service payments
B. Portfolio investment
C. Export
D. Interest receipts
Answer» B. Portfolio investment
12.

Under fixed exchange rate system, when domestic currency is moved to a higher parity in terms of vehicle currency is:

A. Appreciation
B. Depreciation
C. Devaluation
D. Revaluation
Answer» D. Revaluation
13.

Which one of the following is correct when there is under valuation of domestic currency:

A. Encouraging exports and inflow of capital
B. Foreign goods cheaper and exports dearer
C. Country imports more and exports less
D. There is outflow of capital
Answer» A. Encouraging exports and inflow of capital
14.

In balance of payment , if current account registers a deficit, the capital and financial account must register a:

A. Deficit
B. Balance
C. Surplus
D. Capital outflow
Answer» C. Surplus
15.

In all balance of payment accounts, there are a fictitious head of account called:

A. Invisibles
B. Deficits
C. Reserves
D. Errors and omissions
Answer» D. Errors and omissions
16.

Balance on merchandise and service trade is called:

A. Balance of payment
B. Trade balance
C. Current account
D. Balance on goods and services
Answer» C. Current account
17.

When demand for US dollars increases under flexible exchange rate system, then:

A. The rupee depreciates
B. The dollar appreciates
C. Both A and B
D. None of the above
Answer» C. Both A and B
18.

An economic transaction is entered in the balance of payment as a credit, if it leads to:

A. Receipt of payment from foreigners
B. Either the receipt of payment or making of payment
C. A payment to foreigners
D. Neither the receipt nor making of a payment
Answer» A. Receipt of payment from foreigners
19.

Remittances foe abroad is included in which account of balance of payment:

A. Current account
B. Capital account
C. Visible account
D. Official account
Answer» A. Current account
20.

Assertion (A) : Devaluation in general is resorted to increase the exports. Reason (R) : It makes exports cheaper.

A. Both (A) and (R) are correct
B. (A) is correct, but (R) is not correct.
C. Both (A) and (R) are incorrect
D. A) is incorrect, but (R) is correct
Answer» A. Both (A) and (R) are correct
21.

The continuous deficit in the balance of payments of India is due to

A. Continued rise in imports
B. Slow rise in exports
C. Exchange rate volatility
D. All of the above
Answer» D. All of the above
22.

The ongoing weakening of Rupee against Dollar will cause

A. Indian exports to US will rise
B. Indian exports to US will fall
C. Import from US to India will remain constant
D. Indian exports to US remain constant
Answer» A. Indian exports to US will rise
23.

If the Rupees per Dollar($) exchange rate changes from Rs 44 to 46 in an year by the market force, it implies

A. Appreciation of $
B. Depreciation of $
C. Devaluation of $
D. Revaluation of $
Answer» A. Appreciation of $
24.

Public finance is said to be:

A. Science of income and expenditure
B. Science of money and cost
C. Science of demand and supply of money.
D. Science of taxes and spending.
Answer» A. Science of income and expenditure
25.

All the accounts of public authority are subject to:

A. Conceal
B. Audit and inspection
C. Publicity
D. None of above.
Answer» B. Audit and inspection
26.

Price revenue is popularly known as:

A. Market borrowing
B. Government borrowing
C. Commercial revenue
D. Surplus of public undertakings
Answer» C. Commercial revenue
27.

Who propounded the doctrine of sound finance:

A. German Historical economists
B. Classical Economists
C. Neo‐ classical economists
D. None of the above
Answer» B. Classical Economists
28.

The basic principle of Public Finance is:

A. Maximum social advantage
B. Welfare of the government
C. Welfare of the individual
D. All the above.
Answer» A. Maximum social advantage
29.

A tax is:

A. Voluntary contribution with direct benefit
B. Compulsory contribution with indirect benefit.
C. Compulsory Contribution with no direct benefit.
D. None of the above.
Answer» C. Compulsory Contribution with no direct benefit.
30.

Which of the following are direct taxes:

A. Gift tax
B. Corporation tax
C. Income tax
D. All of the above.
Answer» D. All of the above.
31.

From the following which is not a direct tax:

A. Tax income
B. Tax on wealth
C. Tax on expenditure
D. Tax on entertainment
Answer» A. Tax income
32.

The name of indirect tax is:

A. Sales tax
B. Income tax
C. Corporation tax
D. Wealth tax.
Answer» A. Sales tax
33.

Taxes raised are credited into:

A. Public Accounts
B. Consolidated Fund
C. Contingency Fund
D. Private Accounts.
Answer» B. Consolidated Fund
34.

All taxes come under:

A. Capital receipts
B. Public debt
C. Revenue receipts
D. Both (b) and (c).
Answer» C. Revenue receipts
35.

Who favoured an unbalanced budget:

A. German historical economists
B. Keynesian economists
C. Neo‐ classical economists
D. All of the above.
Answer» B. Keynesian economists
36.

The concept of functional finance was first developed by:

A. Hugh Dalton
B. Taussig
C. A.P. Lerner
D. None the above.
Answer» C. A.P. Lerner
37.

Deficit budgeting should be resorted to at a time of:

A. Inflation
B. Depression
C. Boom
Answer» B. Depression
38.

Fiscal policy is related to:

A. Public revenue and expenditure
B. Exports and Imports
C. Issues and circulation of currencies.
D. Money supply.
Answer» A. Public revenue and expenditure
39.

“The Law of Increase of state Activities” was explained by:

A. Dalton
B. AC.Pigou
C. Adolph Wagner
D. None of the above
Answer» C. Adolph Wagner
40.

The Critical limit Hypothesis was explained by:

A. Wiseman
B. A. Wagner
C. Colin Clark
D. None of the above
Answer» C. Colin Clark
41.

Public debt implies loans raised by a government:

A. Within the country
B. Outside the country
C. Both (a) and (b)
D. None of the above
Answer» C. Both (a) and (b)
42.

Who is the chairman of the first finance commission?

A. KC.Neogi
B. AK.Chanda
C. K.Santhanam
D. None of the above
Answer» A. KC.Neogi
43.

Loans on projects yielding income is:

A. Productive
B. unproductive
C. Short term
D. None of the above
Answer» A. Productive
44.

When income of the government is greater than its expenditure, the budget is:

A. balanced
B. surplus
C. deficit
D. none of the above
Answer» B. surplus
45.

Chairman of the Thirteenth Finance Commission is:

A. AM.Khusro
B. KC.Pant
C. Vijay Khelkar
D. C.Rangarajan
Answer» C. Vijay Khelkar
46.

Chairman of the Finance Commission is appointed by:

A. Prime Minister
B. President
C. Chief Justice
D. None of the above
Answer» B. President
47.

When income and expenditure of the government are equal, the budget is:

A. deficit
B. surplus
C. balanced
D. none of the above
Answer» C. balanced
48.

Budget is presented in the Parliament as per:

A. Article 280
B. Article 112
C. Article 202
D. None of the above
Answer» B. Article 112
49.

The largest contributing sector to GDP at the time of independence in India is:

A. Agriculture
B. Industry
C. Service
D. None
Answer» A. Agriculture
50.

The contribution of Primary sector to GDP in 2011‐12 is:

A. 13.9
B. 14.5
C. 56.5
D. 29.1
Answer» A. 13.9
51.

The average annual growth rate of agriculture realized in the 11th Five Year Plan:

A. 4%
B. 3.3%
C. 5%
D. 6%
Answer» B. 3.3%
52.

The targeted growth rate of agriculture in the 11 th Five Year Plan:

A. 3.3%
B. 2.5%
C. 4%
D. 9%
Answer» C. 4%
53.

The largest employment providing sector in Indian economy at present is:

A. Agriculture
B. Industry
C. Service
D. None
Answer» A. Agriculture
54.

According to 2010‐11 estimates the percent of people worked with agriculture is:

A. 80.5%
B. 52.1%
C. 27%
D. 23%
Answer» B. 52.1%
55.

Which one is the least important exportable item of agriculture sector?

A. Tea
B. Sugar
C. spices
D. Vegetables
Answer» D. Vegetables
56.

The contribution of Industrial sector to GDP in 2011‐12 is:

A. 13.9
B. 14.5
C. 27%
D. 29.1
Answer» C. 27%
57.

Who is considered as the Father of Indian Green Revolution?

A. Norman Borlaug
B. Varghese Kurian
C. M.S. Swaminathan
D. None
Answer» C. M.S. Swaminathan
58.

Green Revolution takes place in the year:

A. 1950
B. 1960
C. 1966
D. 1963
Answer» C. 1966
59.

High Yielding Varieties Programme was launched in:

A. 1966.
B. 1960
C. 1965
D. 1963
Answer» A. 1966.
60.

Intensive Agricultural District Programme was introduced as a pilot project in:

A. 1960‐61
B. 1964‐65
C. 1965‐66
D. 1963‐64
Answer» A. 1960‐61
61.

HYV is related mainly with the input of agriculture:

A. Water
B. Seeds
C. Implements
D. All
Answer» B. Seeds
62.

The apex institution in agriculture credit is :

A. RBI
B. RRBs
C. NABARD
D. None
Answer» C. NABARD
63.

Food Corporation of India was established in the year:

A. 1960
B. 1966
C. 1965
D. 1969
Answer» C. 1965
64.

The Green Revolution is otherwise known as :

A. White Revolution
B. Blue Revolution
C. Wheat Revolution
D. None
Answer» C. Wheat Revolution
65.

The Green Revolution does not increase the production of :

A. Rice
B. Wheat
C. Maize
D. Pulses
Answer» D. Pulses
66.

The Green Revolutionin India is mainly centered

A. UP
B. Tamil Nadu
C. Kerala
D. Punjab
Answer» D. Punjab
67.

The ‘Permanent Settlement Act’ was introduced in India in:

A. 1793.
B. 1760
C. 1965
D. 1963
Answer» A. 1793.
68.

Which is the least oppressive system of land tenure in India?

A. Zamindari system
B. Mahalwari System
C. Ryotwari system
D. All
Answer» C. Ryotwari system
69.

The major parts of the land area covered by the land tenure system is:

A. Zamindari system
B. Mahalwari System
C. Ryotwari system
D. All
Answer» B. Mahalwari System
70.

The first Industrial Policy Resolution was passed in India in:

A. 1948.
B. 1950
C. 1947
D. 1958
Answer» A. 1948.
71.

Which plan is known as Industrial Plan?

A. First
B. Second
C. Third
D. Eleventh
Answer» B. Second
72.

The latest Index of Industrial Production(IIP) is based on:

A. 2004‐05
B. 1993‐94
C. 1965‐66
D. 1963‐64
Answer» A. 2004‐05
73.

Which is the largest contributing sector to India’s GDP?

A. Agriculture
B. Industry
C. Service
D. None
Answer» C. Service
74.

The contribution of service sector to GDP in 2011‐12 is:

A. 13.9 %
B. 14.5%
C. 56.3%
D. 29.1%
Answer» C. 56.3%
75.

Which productive sector shows highest growth rate in India in 2011‐12

A. Agriculture
B. Industry
C. Service
D. None
Answer» C. Service
76.

The growth rate of service sector in 2011‐12 is:

A. 3.3 %
B. 9.4%
C. 10.5%
D. 6.3 %
Answer» B. 9.4%
77.

In the service sector which subsector shows highest growth rate?

A. Trade, hotels and restaurants
B. Financing, Insurance, Real Estate
C. Community, Social and Personal services
D. Transport, storage and communication
Answer» A. Trade, hotels and restaurants
78.

Economic reforms were first introduced in India in:

A. 1947
B. 1950
C. 1991
D. 2001
Answer» C. 1991
79.

The most important paradox in the Kerala economy is;

A. Development with growth
B. Development without growth
C. Growth with Development
D. Growth without Development
Answer» B. Development without growth
80.

Kerala was top in the production of:

A. Rice
B. Banana
C. Rubber
D. All
Answer» C. Rubber
81.

The total land area of Kerala is:

A. 37,863 Sq Km
B. 36,863 Sq Km
C. 39,863 Sq Km
D. 38,863 Sq Km
Answer» D. 38,863 Sq Km
82.

In the size of land area Kerala was in the :

A. 20th position.
B. 25th position.
C. 21st position.
D. 15thposition
Answer» C. 21st position.
83.

According to the national HDR 2011 Kerala’s HDI value is:

A. 0.79
B. 0.59
C. 0.50
D. 0.90
Answer» A. 0.79
84.

According to the national HDR 2011 Kerala’s HDI rank is:

A. 1st
B. 2nd
C. 3rd
D. 4th
Answer» A. 1st
85.

According to the 2011 census Kerala’s population is;

A. 3,18,87,677
B. 3,33,87,677
C. 3,40,17,677
D. 3,13,87,677
Answer» B. 3,33,87,677
86.

Infant Mortality rate in Kerala according to the 2011 census is:

A. 15
B. 11
C. 13
D. 9
Answer» C. 13
87.

The growth rate of Kerala economy in 2010‐11 is:

A. 8.7
B. 7.8
C. 6.9
D. 9.13
Answer» D. 9.13
88.

The growth rate of per capita income in the Kerala economy in 2010‐11 is:

A. 7.33
B. 6.33
C. 6.9
D. 8.33
Answer» D. 8.33
89.

The contribution of the tertiary sector to the Kerala economy in 2010‐11 is:

A. 17.33
B. 11.06
C. 20.13
D. 68.81
Answer» D. 68.81
90.

The largest contributor to the state economy in 2010‐11 is:

A. Primary
B. Secondary
C. Tertiary
D. None
Answer» C. Tertiary
91.

The Kerala Land Reforms Act was passed in the year:

A. 1963
B. 1969
C. 1970
D. 1954
Answer» A. 1963
92.

The Kerala state was formed in:

A. 1954
B. 1955
C. 1956
D. 1957
Answer» C. 1956
93.

The Kerala Panchayat Raj Act was enacted by the UDF government in:

A. 1995
B. 1994
C. 1996
D. 1997
Answer» A. 1995
94.

The initial name of the decentralized planning in Kerala is:

A. People's Plan Campaign
B. Kerala Development Plan
C. Both
D. None
Answer» A. People's Plan Campaign
95.

The People's Campaign for Decentralized Planning was formally inaugurated on:

A. 15th August 1995
B. 11th November 1994
C. 17th August 1996
D. None
Answer» C. 17th August 1996
96.

Which is referred as the heath paradox in Kerala:

A. Good health at high cost
B. Good health at low cost
C. Both incorrect
D. None
Answer» B. Good health at low cost
97.

The Couple protection rate in Kerala according to the 2011 estimates:

A. 62.3%
B. 52%
C. 48%
D. 58%
Answer» A. 62.3%
98.

The District Primary Education Program (DPEP) introduced in the State during:

A. 1994‐95
B. 1995‐96
C. 1996‐97
D. 1998‐99
Answer» A. 1994‐95
99.

The literacy rate of Kerala in 2011:

A. 91.91
B. 90.92
C. 93.91
D. 95.94
Answer» C. 93.91
100.

The district with largest number of out‐migrants from Kerala is:

A. Kottayam
B. Ernakulam
C. Palakkad
D. Malappuram
Answer» C. Palakkad
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