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Economics Quiz

Total questions: 40

Worksheet time: 22mins

Name
Class
Date
1.

Assertion (A) : When price decreases, purchasing power increases and vice versa

Reason (R): When the production of goods declines, the prices of goods increase and then the purchasing power is affected

a)

(A) is correct, (R) is false

b)

(A) is correct, but (R) is not correct explanation of (A)

c)

Both (A) and (R) are false

d)

(A) is correct, but (R) is correct explanation of (A)

2.

The monetary policy of the government of India emphasised the following two aims of the economic policy

(i) To control and reduce inflationary pressure in the economy

(ii) Speed up economic development in the country to raise national income and the standard of living of the people

(iii) To increase the per capita income

(iv) To have a cheap money policy Select the correct answer by using the codes given below:

a)

(i) and (ii) are correct

b)

(ii) and (iii) are correct

c)

(i) and (iii) are correct

d)

(iii) and (iv) are correct

3.

The objectives of monetary policy

(i) Price Stability

(ii) Economic Growth

(iii) Social Justice

(iv) Reducing budgetary deficit

a)

(i) only

b)

(ii) and (iii) only

c)

(i), (ii) and (iii) only

d)

(iv) only

4.

What are the correct statement(s) related to T-Bill?

a)

They are issued by RBI

b)

They are issued by Govt of India

c)

Treasury bills pay no interest

d)

They are long term debit instruments

5.

Consider the following statements :

The objectives of fiscal policy are

(i) Capital Formation

(ii) Equitable Distribution

(iii) Unemployment

(iv) Regional Balance

a)

(i), (ii) and (iii)

b)

(ii), (iii) and (iv)

c)

(i), (iii) and (iv)

d)

(i), (ii) and (iv)

6.

The sum of deficit under Revenue account and deficit under capital account is

a)

Budgetary deficit

b)

Fiscal Deficit

c)

Primary deficit

d)

Revenue deficit

7.

Which is not related to direct tax revenue of central government?

a)

Taxes on Income

b)

Taxes on commodities and services

c)

Taxes on property and capital transaction

d)

Taxes on dividends and profits

8.

Which one of the following is the source of direct tax?

a)

Gift Tax

b)

Excise Duty

c)

Customs Duty

d)

Service Tax

9.

Which of the following statements about GST council is true?

a)

The members of the GST council choose one amongst themselves to be vice-chairman of the council

b)

Every decision of GST council shall be taken by a meeting of not less than two-third of the weighted votes of the members present and voting

c)

One-half of the total number of members of the GST council constitute the quorum at its meeting.

10.

Which of the following taxes have been subsumed under GST (Goods and Service Tax)?

a)

Corporate Tax, Customs duty, Service Tax

b)

Minimum alternate tax, sales tax, state VAT

c)

Excise duty, Entertainment tax, Sales tax

d)

Luxury tax, Capital gain tax, cess and surcharges

11.

UDGAM is a

a)

Tool used by RBI to allocate T-Bills

b)

Central agency to monitor RBI

c)

an online portal developed by RBI

d)

An emergency bank created by RBI

12.

Which of the following statement(s) is / are true about NBFCs?

a)

Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 or Companies Act, 2013

b)

NBFCs are engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government

c)

NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself

d)

NBFCs can accept demand deposits

13.

"Poverty is the worst form of violence" - Who said this?

a)

Jawaharlal Nehru

b)

Mahatma Gandhi

c)

Sardar Vallabhai Patel

d)

Swami Vivekananda

14.

When the cost of raw materials and other inputs rises inflation results, this type of inflation is known as ____ inflation

a)

Demand-Pull

b)

Cost-Push

c)

Demand-Push

d)

Supply shock

15.

According to Prof. Suresh Tendulkar's definition, a person would be treated as poor as on 2004-05, if his monthly income is less than ________ in rural areas and ___ in Urban areas?

a)

440.50 and 570.75

b)

446.68 and 578.80

c)

445.00 and 550.00

d)

442.25 and 552.0

16.

The Monopolies and Restrictive Trade Practices Act was passed in the year

a)

1969

b)

1970

c)

1972

d)

1975

17.

The Mahatma Gandhi National Rural Employment Guarantee act came into force in

a)

2005

b)

2006

c)

2007

d)

2003

18.

As per UNDP report of 2025, Human Development Index of India is

a)

0.785

b)

0.685

c)

0.535

d)

0.972

19.

As per UNDP report of 2025, What rank India holds in the Human Development Index

a)

76

b)

101

c)

130

d)

136

20.

Consumer Protection Act is called as

a)

Valuable consumer shield

b)

World Consumer Right

c)

Consumer's Magna Carta

d)

Citizen's Consumer Right

21.

What is considered as an important indicator of poverty in any society?

a)

Economic wealth

b)

Economic backwardness

c)

Economic prosperity

d)

Economic breakdown

22.

Based on Population growth rate, the year 1951 is termed as

a)

Year of Great divide

b)

Year of Population explosion

c)

Year of population growth

d)

Year of Small Divide

23.

NITI Aayog came into existence in place of

a)

Planning Commission

b)

Finance Commission

c)

Banking Commission

d)

Education Commission

24.

Which committee was constituted to assess the profitability of public sector banks?

a)

Kelkar Committee

b)

Narasimhan Committee

c)

Jha Committee

d)

Raja Chelliah Committee

25.

Which are the following pair(s) are not correctly matched?

a)

Monetary Policy - RBI

b)

Insurance - SEBI

c)

Stock Market - IRDA

d)

Fiscal Policy - Central Government

26.

The Blue revolution is being implemented to achieve economic prosperity of

a)

Textile industry workers

b)

Construction sector workers

c)

Agricultural farmers

d)

Fishermen and fish farmers

27.

What is the primary purpose of the Goods and Services Tax (GST)?

a)

To promote exports

b)

To reduce inflation

c)

To simplify the tax structure

d)

To increase tax revenue

28.

Which of the following is considered a direct tax?

a)

Value Added Tax

b)

Service Tax

c)

Income Tax

d)

Sales Tax

29.

In which year the National Mission for Empowerment of Women (NMEW) was launched?

a)

2007

b)

2008

c)

2009

d)

2010

30.

Compensatory Pension Scheme was followed in Tamil Nadu from

a)

2003

b)

2004

c)

2005

d)

206

31.

The National Income in India was first estimated by

a)

William Digby

b)

Dadabai Naoroji

c)

VKRV Rao

d)

Mahalanobis

32.

DPAP stands for

a)

Drought Prone Agency Plan

b)

Drought Prone Area Programme

c)

Drought Prone Amelioration Program

d)

Drought and Poverty Area Program

33.

The Monopoly and Restrictive Trade Practices Act (MRTP), 1969 was replaced by

a)

PURA model

b)

Competition Act, 2002

c)

Foreign Exchange Regulation Act 2004

d)

Foreign Exchange Management Act 2000

34.

The major objective of Pradhan Mantri Krishi Sinzhayee Yojana (PMKSY) is to achieve

a)

Convergence of investments in irrigation at field level

b)

agricultural credit available to farmers

c)

Crop insurance

d)

Crop improvement

35.

The measurement of multi-dimensional poverty index is based on

a)

Health, Education and living standard

b)

Education and Health

c)

Nutrition and Longevity

d)

National income and inflation

36.

The instrument of monetary policy are

a)

Bank rate

b)

Tax rate

c)

Tax rebate

d)

Cash reserve ratio

37.

Which of the following denote the meaning of Goods and Services Tax?

a)

it is a consoldated indirect tax

b)

it is a single unified tax

c)

imposed only by central government

d)

payable at the final point of consumption

38.

Whcih of the following function(s) is / are performed by RBI?

a)

Issue of currency

b)

control of exchange rate

c)

neutrality of money

d)

control of commerical banking

39.

Which of the following facts are not correct with respect to GDP?

a)

it is not for a specific period of time

b)

it is a tool to measure growth and development

c)

it is a non-monetary measure

d)

It meaures total money value of initial goods and services

40.

Child development inded takes into account which of the following?

a)

Education

b)

Income

c)

Health

d)

Nutritional staus