Economic Concepts Quiz 1

Consider the following statements regarding Autonomous and Accommodating transactions in BoP
1) Autonomous items in BOP take place due to some economic motives like earning income and profit maximization
2) Accommodating items in BOP refer to transactions that take place to cover deficit (or surplus) arising from autonomous transactions
Select the correct answer using the code given below.

• Only 1

• Only 2

• All of the above

• None of the above

Look at the following statements about Nifty
1) It is based upon 50 firms in India.
2) It is regulated by the Reserve Bank of India.
3) It does not trade in mutual funds
Select the correct answer using the code given below:

• 1 only

• 2 only

• 3 only

• 1 and 3

J curve in the economics is related to

• Index is a type of cost-of-living index that uses an expenditure function such as one used in assessing expected compensating variation

• Show the relationship between tax rates and the amount of tax revenue collected by governments

• The inverse relationship between unemployment rate and inflation

• Refers to the trend of a country's trade balance following a devaluation

With reference to the Baltic Dry Index, consider the following statements
1) It is an economic indicator issued daily by the London-based Baltic Exchange
2) They are restricted to Baltic Sea Countries
Select the correct answer using the code given below.

• Only 1

• Only 2

• All of the above

• None of the above

Consider the following about National Capital Goods policy
1) Department of Heavy Industries implements it
2) It proposes for Enhancing the export of Indian made capital goods
Which of the following is/are correct?

• Only 1

• Only 2

• Both 1 and 2

• None of them

Tax buoyancy is defined as

• Percentage change in tax revenue in response to change in tax rate and extension of coverage

• Refers to the % change in the tax revenue with the growth of national income i.e. growth based increase in tax collection

• The entity who bears the tax burden

• None of the above

Look at the following statements about chit funds
1) It is a saving institution
2) They have regular members who make periodical subscriptions to the fund
3) Chit funds are included in the definition of Non- Banking Financial Companies
Which of the statements given above are correct?

• Only 1 and 2

• Only 2 and 3

• Only 1 and 3

• All of the above

Consider the following statements
1) Surcharge is tax on tax
2) Cess in charge on the tax
Which of the following is/are not correct?

• Only 1

• Only 2

• All of the above

• None of the above

Consider the following about International Financial Corporation
1) It lends money to the private sector companies of the member nations
2) It encourages foreign investment in developing economies by offering insurance to foreign private investors against loss caused by non-commercial risks
Which of the following is/are not correct?

• Only 1

• Only 2

• Both 1 and 2

• None of them

Gender Budgeting is

• Funds are allocated only to the schemes that support women development

• Allocation of resources to the agencies are done by periodic re-evaluation through incrementalism

• Funds and responsibilities are allocated on the basis of gender

• None of them