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Economic Concepts Quiz 1

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
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.

a)

Only 1

b)

Only 2

c)

All of the above

d)

None of the above

2.

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:

a)

1 only

b)

2 only

c)

3 only

d)

1 and 3

3.

J curve in the economics is related to


a)

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

b)

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

c)

The inverse relationship between unemployment rate and inflation

d)

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

4.

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.

a)

Only 1

b)

Only 2

c)

All of the above

d)

None of the above

5.

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?

a)

Only 1

b)

Only 2

c)

Both 1 and 2

d)

None of them

6.

Tax buoyancy is defined as

a)

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

b)

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

c)

The entity who bears the tax burden

d)

None of the above

7.

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?

a)

Only 1 and 2

b)

Only 2 and 3

c)

Only 1 and 3

d)

All of the above

8.

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?

a)

Only 1

b)

Only 2

c)

All of the above

d)

None of the above

9.

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?

a)

Only 1

b)

Only 2

c)

Both 1 and 2

d)

None of them

10.

Gender Budgeting is

a)

Funds are allocated only to the schemes that support women development

b)

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

c)

Funds and responsibilities are allocated on the basis of gender

d)

None of them

11.

Consider the following about Islamic Banking/ No-Interest Banking
1) It is prescribed in the Sharia law
2) It prohibits interests only on loans
Which of the following is/are correct?

a)

Only 1

b)

Only 2

c)

All of the above

d)

None of the above

12.

GDR means:

a)

'Gross domestic ratio' which is a macro aggregate

b)

'Global Depository Receipt' which is the mechanism to raise funds from international market

c)

'Global development range' which has been set up by UNO for developing countries

d)

'Geographically developed regions' as defined by the UNDP

13.

Consider the following about Goods and Service Tax
1) It is a destination based tax
2) All the goods will be taxed at same rate
Which of the following is/are correct?

a)

Only 1

b)

Only 2

c)

Both 1 and 2

d)

None of them

14.

Recession is

a)

An economic contraction when the GDP declines for 2 consecutive years

b)

An economic boom when the GDP increases for 2 consecutive years

c)

An economic contraction when the GDP declines for 2 consecutive quarters

d)

None of them

15.

Consider the following statements about GAAR
1) It was first discussed in Budget 2016-2017
2) It is an anti-tax avoidance Rule of India.
3) It is framed by the Department of Expenditure
Which of the statements given above are correct?

a)

Only 1

b)

Only 2

c)

Only 1 and 3

d)

All of the above

16.

Consider the following taxes of the central government:
1) Personal Income Tax
2) Corporation Tax
3) Excise Duty
The descending order of their allocation size in the 2015-16 budget is:

a)

1, 2, 3

b)

1, 3, 4

c)

2, 1, 3

d)

2, 3, 1

17.

The oil price is falling due to following reasons
1) Demand is low because of weak economic activity
2) America now imports much less than in past due to shale gas exploration
3) Saudis and their Gulf allies have decided not to sacrifice their own market share to restore the price
4) More supply of petrol due to discoveries in Mid Africa
Select the correct answer using the code given below.

a)

1 and 2 only

b)

1, 2 and 3 only

c)

2, 3 and 4 only

d)

All of the above

18.

The ideal recommended ratio of NPK is

a)

4: 2: 1

b)

2: 4: 1

c)

4: 1: 2

d)

4: 3: 2

19.

Consider the following statements with respect to repo rates
1) Rate at which central bank (RBI) lends money to commercial bank for short term liquidity needs.
2) Increase in repo rate helps in controlling inflation
Which of the following is/are correct?

a)

Only 1

b)

Only 2

c)

All of the above

d)

None of the above

20.

Consider the following about Call Money Market

1) It is an inter-bank money market where funds are borrowed and lent for one day

2) Collateral is required to borrow money from this market

Select the correct answer using the code given below.

a)

Only 1

b)

Only 2

c)

All of the above

d)

None of the above