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Economics Practice Questions

Total questions: 18

Worksheet time: 15mins

Name
Class
Date
1.

On the eve of Independence, India was net exporter of:

a)

primary products

b)

industrial products

c)

capital goods

d)

all of the above

2.

Stagnant economy is the one which shows:

a)

little growth in income

b)

high growth in income

c)

low level of productivity

d)

(a) and (c)

3.

Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:

A: India experienced trade surplus during British Rule.

R: British used the trade surplus to finance their administrative expenses in India.

a)

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

b)

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

c)

Assertion (A) is true but Reason (R) is false.

d)

Assertion (A) is false but Reason (R) is true.

4.

Zamindari system brought stability to cultivation during the British Rule in India. State whether true or false. Give reason.

4 lines
5.

(a)   is one of the positive contribution made by British in India.

6.

(a)   is the situation in which the government of a country does not interfere with the market forces of supply and demand.

7.

Read the following statements - Assertion (A) and Reason (R). Choose correct alternatives given below:

A (Assertion) : Socialist economy achieves equality of income.

Reason (R): To ensure social justice, Indian planners chose socialist economic model for India.

a)

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

b)

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

c)

Assertion (A) is true but Reason (R) is false.

d)

Assertion (A) is false but Reason (R) is true.

8.

Planning Commission, the erstwhile central planning authority in the country, has been replaced by:

a)

Finance Commission

b)

Central Statistical Commission

c)

National Institution for Transforming India (NITI) Aayog

d)

The Planning Commission Committee

9.

Planning that covers both social and economic spheres of growth is called (a)   .

10.

The Industrial Policy Resolution was introduced in:

a)

1948

b)

1950

c)

1991

d)

1921

11.

In the history of demographic transition, 1921 is known as the (a)   .

12.

Agriculture as a means of (a)   implies less focus on occupation for profit.

13.

Increase in the stock of capital is known as:

a)

Capital Loss

b)

Consumption of fixed Capital

c)

Capital Gain

d)

Capital Formation

14.

Loss of value of fixed assets owing to unexpected obsolescence is called:

a)

Capital loss

b)

Consumption of fixed capital

c)

depreciation

d)

unexpected loss

15.

Increase in price of commodities due to increase in taxes assume relevance in the estimation of NNP at MP because:

a)

taxes are compulsory payments

b)

taxes are transfer payments

c)

taxes are paid out of household income

d)

taxes cause a rise in market price of the commodities which otherwise would have been sold at a lower price.

16.

Compensation of employees after retirement will be calculated as:

a)

Wages and salaries + Employers' contribution to social security schemes + Pension on retirement

b)

Wages and salaries + Employees' contribution to social security schemes + Pension on retirement

c)

Wages and salaries in cash + Payment in kind + Employers' contribution to social security schemes

d)

Wages + Salaries + Payments in kind

17.

Given the following information, the Net Value Added at Factor Cost will be _____________:

Durable use of producer goods with a life span of 10 years - 10 lakhs

Single use producer goods - 5 lakhs

Sales - 20 lakhs

Unsold output produced during the year - 2 lakhs

Taxes on production - 1 lakh

a)

14 lakhs

b)

20 lakhs

c)

25 lakhs

d)

15 lakhs

18.

Inventory Investment = ____________ - _______________

(a)