WorksheetsCA Foundation Economics Chapter 6 to 10
Total questions: 50
Worksheet time: 17mins
Name
Class
Date
1.
Which of the following is included in national income?
a)
Transfer payments
b)
Government subsidies
c)
Net factor income from abroad
d)
Capital receipts
2.
GDP at factor cost is equal to:
a)
GDP at market prices – indirect taxes + subsidies
b)
GNP – depreciation
c)
NNP + indirect taxes
d)
NNP – subsidies
3.
Net National Product (NNP) at factor cost is also known as:
a)
Gross Domestic Product
b)
National Income
c)
Personal Income
d)
Disposable Income
4.
Which method measures national income by adding value at each production stage?
a)
Income method
b)
Expenditure method
c)
Value added method
d)
Output method
5.
Which of the following is a flow concept?
a)
Wealth
b)
Capital
c)
National Income
d)
Assets
6.
The Keynesian theory emphasizes:
a)
Supply-side determination
b)
Demand-side determination
c)
Both supply and demand
d)
Only money supply
7.
If savings exceed investment, according to Keynes:
a)
National income rises
b)
National income falls
c)
National income stable
d)
No effect
8.
Consumption function shows relationship between:
a)
Consumption and savings
b)
Consumption and investment
c)
Consumption and income
d)
Income and savings
9.
Multiplier is defined as:
a)
Change in consumption / change in income
b)
Change in investment / change in income
c)
Change in income / change in investment
d)
Change in savings / change in income
10.
Which of the following is not included in national income?
a)
Wages of workers
b)
Profits of firms
c)
Illegal income
d)
Rent of land
11.
Which of the following is not a function of public finance?
a)
Resource allocation
b)
Income distribution
c)
Stabilization
d)
Private profit maximization
12.
The main source of government revenue is:
a)
Taxes
b)
Borrowings
c)
Donations
d)
Gifts
13.
Which of the following is a direct tax?
a)
Excise duty
b)
Income tax
c)
Customs duty
d)
GST
14.
Fiscal deficit means:
a)
Revenue expenditure > revenue receipts
b)
Total expenditure > total receipts excluding borrowings
c)
Capital receipts > capital expenditure
d)
None
15.
Public goods are characterized by:
a)
Excludability
b)
Non-rival consumption
c)
Private ownership
d)
Rival consumption
16.
When government expenditure > revenue, the budget is:
a)
Balanced
b)
Deficit
c)
Surplus
d)
None
17.
Which is not a merit of direct tax?
a)
Equity
b)
Certainty
c)
Elasticity
d)
Regressiveness
18.
Which body prepares the Union Budget in India?
a)
President
b)
Finance Commission
c)
Ministry of Finance
d)
NITI Aayog
19.
Which type of tax causes burden shifting?
a)
Direct tax
b)
Indirect tax
c)
Wealth tax
d)
Income tax
20.
Crowding out effect is related to:
a)
Private investment increase
b)
Private investment reduction
c)
Public revenue
d)
Foreign loans
21.
Which of the following is the most liquid asset?
a)
Land
b)
Money
c)
Shares
d)
Gold
22.
According to Keynes, demand for money arises due to:
a)
Transaction, precautionary, speculative motives
b)
Saving motives
c)
Production motives
d)
Profit motives
23.
High-powered money is also known as:
a)
Broad money
b)
Narrow money
c)
Reserve money
d)
Fiat money
24.
Monetary policy is formulated by:
a)
SEBI
b)
Ministry of Finance
c)
RBI
d)
SBI
25.
Which of the following is not a quantitative tool of monetary policy?
a)
Repo rate
b)
CRR
c)
SLR
d)
Credit rationing
26.
Money supply in India is measured by:
a)
SEBI
b)
RBI
c)
Finance Ministry
d)
World Bank
27.
Which is a qualitative tool of monetary policy?
a)
CRR
b)
SLR
c)
Margin requirements
d)
Open market operations
28.
Liquidity trap means:
a)
Zero interest rate and ineffective monetary policy
b)
High liquidity in economy
c)
High inflation
d)
None
29.
Broad money in India is denoted as:
a)
M1
b)
M2
c)
M3
d)
M0
30.
An increase in repo rate leads to:
a)
Increase in borrowing
b)
Reduction in borrowing
c)
No change
d)
More liquidity
31.
Comparative advantage theory was given by:
a)
Adam Smith
b)
David Ricardo
c)
Keynes
d)
Marshall
32.
Terms of trade means:
a)
Import-Export ratio
b)
Export-Import price ratio
c)
Balance of payments
d)
Exchange rate
33.
Which of the following is a tariff barrier?
a)
Quota
b)
Import duty
c)
Subsidy
d)
Exchange control
34.
Balance of payments includes:
a)
Only exports
b)
Only imports
c)
Exports and imports
d)
All transactions with rest of the world
35.
Which of the following is not an instrument of trade policy?
a)
Tariffs
b)
Quotas
c)
Subsidies
d)
Investment allowance
36.
Devaluation of currency makes:
a)
Exports cheaper, imports costlier
b)
Exports costlier, imports cheaper
c)
Both cheaper
d)
Both costlier
37.
Dumping means:
a)
Selling at high price abroad
b)
Selling at low price abroad
c)
Export subsidy
d)
Import quota
38.
WTO was established in:
a)
1945
b)
1980
c)
1995
d)
2001
39.
Flexible exchange rate is determined by:
a)
Government
b)
Central bank
c)
Market forces
d)
Finance Ministry
40.
Capital account in BOP includes:
a)
Investment flows
b)
Trade in goods
c)
Remittances
d)
Grants
41.
India’s economic system is:
a)
Capitalist
b)
Socialist
c)
Mixed
d)
Traditional
42.
Largest contributor to India’s GDP is:
a)
Agriculture
b)
Industry
c)
Services
d)
Mining
43.
Which plan was called ‘Gadgil Yojana’?
a)
First plan
b)
Third plan
c)
Fourth plan
d)
Fifth plan
44.
NITI Aayog replaced:
a)
Finance Commission
b)
Planning Commission
c)
RBI
d)
SEBI
45.
Which sector is the largest employer in India?
a)
Agriculture
b)
Industry
c)
Services
d)
Public sector
46.
Disinvestment policy relates to:
a)
Private sector
b)
Public sector undertakings
c)
Agriculture
d)
Foreign trade
47.
Green Revolution was associated with:
a)
Wheat production
b)
Cotton
c)
Rice
d)
Tea
48.
MSME sector in India contributes mainly to:
a)
Large industries
b)
Exports and employment
c)
Agriculture
d)
Infrastructure
49.
Which state is the largest contributor of IT exports?
a)
Maharashtra
b)
Karnataka
c)
Tamil Nadu
d)
Telangana
50.
Make in India initiative was launched in:
a)
2012
b)
2014
c)
2016
d)
2018
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