IAS Prelim : Indian Economy(06)

Indian Economy

1. Consider the following statements:

1.    Macroeconomics is a study of individual markets of demand and supply and the players or the decision-maker seen as trying to maximise their profits(as producers or sellers) and their personal satisfaction or welfare levels(as consumers).

2.    Even a large company is ‘micro’ in the sense that it had to act in the interest of its own shareholders and not necessarily in the interest of the country as a whole.

Which of the statements given above is/are correct?

  (a) 1 only

  (b) 2 only

  (c) Both 1 and 2

  (d) None of these

Answer .b

2. Macroeconomic policies of India are pursued by which of the followings:

1.    Government of India

2.    RBI

3.    SEBI

Select the correct answer using the codes given below

(a) 1 and 2

(b) 2 and 3

(c) 1, 2 and 3 

(d) 1 only

Answer .c

3. Macroeconomics as a separate branch of economics, emerged after the British economist John Maynard Keynes published is celebrated book

  (a) The Wealth of Nations

  (b)On the Principles of political Economy and Taxation

  (c)The Affluent Society

  (d) The General Theory of Employment, Interest and Money

Answer .d

4. Which of these are the factors of production?

       1. Land

       2. Labour

       3. Revenue

       4. Capital

Select the correct answer using the codes given below.

(a) 1 and 2 only

(b) 1, 2 and 4 only

(c) 1, 2, 3 and 4

(d) 1, 2 and 3 only

Answer .b

5. “An Enquiry into the Nature and Cause of the Wealth of Nations” book is written by?

(a) Adam Smith

(b) John Maynard Keynes

(c) Sir Richard Hicks

(d) Joseph Stiglitz

Answer .a

6. Consider the following statements:

1.    Final goods produced in an economy can be classified into consumption goods and capital goods.

2.    Consumption goods can be further classified into consumer durables and non durable.

Which of the statements given above is/are correct?

 (a) 1 only

 (b) 2 only

 (c) Both 1 and 2

 (d) None of these

Answer.c

7. Choose the false statement among the following statements:

  (a) The deletion, which is made from the value of gross investment in order to accommodate regular wear and tear of capital, is called depreciation.

  (b) Net Investment = Gross investment – Depreciation

  (c)As per policy viewpoint, markets can be free market or Government controlled.

  (d)If more capital goods are produced now, less will be the productive capacity of the system in the future

Answer .d

8. Match the following pairs:

             Economic Systems                                Ownership

1.    Capitalism (market economy)              A.  Private ownership

2.    Socialism                                           B.  Essential and monopolies, government ownership 

3.    Communism                                      C. Government ownership for almost everything

Which of the followings are correctly matched?

(a) 1-B 2-A 3-C

(b) 1-A 2-B 3-C

(c) 1-C 2-A 3-B

(d) 1-B 2-C 3-A

Answer .b

9. Who among the followings gave the Communist doctrine?

(a)    Adam Smith 

(b)    Karl Marx and Frederick Engels

(c)    John Maynard Keynes

(d)    Joseph Stiglitz

Answer .b

10. With reference to calculation of Aggregate value of goods and services produced during a year, consider the following:

1. Expenditure method

2. Product method

3. Revenue method

4. Income method

Which of the statements given above is/are correct?

 (a) 1 and 2 only

 (b) 2 and 3 only

 (c) 1, 2, 3 and 4

 (d) 1, 2 and 4

Answer .d