MCQs
Total Questions : 112
| Page 4 of 12 pages
Answer: Option C. -> Only 4
Answer: (c)
Answer: (c)
Answer: Option C. -> encouragement to foreign direct investment in agriculture
Answer: (c)
Answer: (c)
Question 33. The decrease in dependency ratio (ratio of dependent population to working-age population) of a country may lead to which of the following situation:
Select the correct answer using the code given below:
- Increase in the savings rate
- Decrease in the savings rate
- Increase in Capital Formation
- Decrease in Capital Formation
Select the correct answer using the code given below:
Answer: Option C. -> (i) & (iii) only
Answer: (c)
Whenever in any country, the working population increases and dependent population decreases, the savings in the economy increases. (This also happens at the family level.
If a family has more working members and fewer dependents then the savings of the family increases). The increased savings leads to an increase in investments.
So, (i) & (iii) statements are true.
Answer: (c)
Whenever in any country, the working population increases and dependent population decreases, the savings in the economy increases. (This also happens at the family level.
If a family has more working members and fewer dependents then the savings of the family increases). The increased savings leads to an increase in investments.
So, (i) & (iii) statements are true.
Answer: Option B. -> 1, 3 and 4
Answer: (b)
Answer: (b)
Question 35. Consider the following statements regarding Capital formation:
Select the correct answer using the code given below:
- Gold and valuable metals are part of Fixed Capital Formation
- Intellectual properties are part of Fixed capital formation
- Construction of buildings and other structures are part of Capital Formation
Select the correct answer using the code given below:
Answer: Option A. -> (ii) & (iii) only
Answer: (a)
Gross Capital Formation = Gross Fixed Capital Formation (machinery + equipment + building + cultivated biological resources + intellectual property) + Valuable Metals + Change in stock/inventory
Gross fixed capital formation is around 30% and valuable metals and change in the stock is one per cent each.
So Gross Capital Formation or Gross Investment is around 32%. Mostly we use the gross fixed investment for all calculations and growth purposes.
Answer: (a)
Gross Capital Formation = Gross Fixed Capital Formation (machinery + equipment + building + cultivated biological resources + intellectual property) + Valuable Metals + Change in stock/inventory
Gross fixed capital formation is around 30% and valuable metals and change in the stock is one per cent each.
So Gross Capital Formation or Gross Investment is around 32%. Mostly we use the gross fixed investment for all calculations and growth purposes.
Question 36. With reference to the provisions made under the National Food Security Act, 2013, consider the following statements.
Which of the statement(s) given above is/are correct?
- The families coming under the category of ‘below poverty line (BPL)’ only are eligible to receive subsidised food grains.
- The eldest woman in a household of age 18 years or above, shall be the head of the household for the purpose of issuance of a ration card.
- Pregnant women and lactating mothers are entitled to a ‘takehome ration’ of 1600 calories per day during pregnancy and for six months thereafter.
Which of the statement(s) given above is/are correct?
Answer: Option A. -> Only 2
Answer: (a)
Answer: (a)
Answer: Option B. -> Net National Product at Market Prices
Answer: (b)
National Income (NI) and Net National Income (NNI) are the same terms and are used interchangeably.
National Income = Net National Income (NNI) = Net National Product (NNP)
Earlier (before January 2015) NSO was using factor cost to calculate NNP but now it uses Market Prices to calculate NNP.
Answer: (b)
National Income (NI) and Net National Income (NNI) are the same terms and are used interchangeably.
National Income = Net National Income (NNI) = Net National Product (NNP)
Earlier (before January 2015) NSO was using factor cost to calculate NNP but now it uses Market Prices to calculate NNP.
Answer: Option C. -> Constant market prices
Answer: (c)
Answer: (c)
Answer: Option A. -> High interest rate
Answer: (a)
Answer: (a)
Answer: Option D. -> All of the above
Answer: (d)
Wholesale Price Index (WPI) is released by the Office of Economic Advisor, Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry. The Base year has been revised to 2011-12 and includes 697 items.
WPI inflation measures the average change in prices of commodities for bulk sale at the level of the early stage of transactions pertaining to four sectors namely agriculture, mining, manufacturing and electricity. WPI does not cover services. WPI covers commodities falling under three Major Groups namely:
"Primary Articles" (weight 22.62%) like agricultural commodities and minerals
"Fuel and Power" (weight 13.15%) like coal and electricity and
"Manufactured Products" (weight 64.23%) like textiles, leather, machine tools
The prices tracked are agri-market (mandi) prices for agricultural commodities, ex-factory prices for manufactured products and ex-mines prices for minerals. The prices used for compilation do not include indirect taxes in order to remove the impact of fiscal policy. This is in consonance with best international practices and makes the new WPI conceptually closer to the "Produce Price Index" used internationally.
The weight given to each commodity covered in the WPI basked is based on the net traded value of the item in the year 2011-12. The net traded value is the value of output in the year 2011-12 adjusted for net imports. Thus, the net traded value represents the total transactions of each product in the economy during the base year.
Answer: (d)
Wholesale Price Index (WPI) is released by the Office of Economic Advisor, Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry. The Base year has been revised to 2011-12 and includes 697 items.
WPI inflation measures the average change in prices of commodities for bulk sale at the level of the early stage of transactions pertaining to four sectors namely agriculture, mining, manufacturing and electricity. WPI does not cover services. WPI covers commodities falling under three Major Groups namely:
"Primary Articles" (weight 22.62%) like agricultural commodities and minerals
"Fuel and Power" (weight 13.15%) like coal and electricity and
"Manufactured Products" (weight 64.23%) like textiles, leather, machine tools
The prices tracked are agri-market (mandi) prices for agricultural commodities, ex-factory prices for manufactured products and ex-mines prices for minerals. The prices used for compilation do not include indirect taxes in order to remove the impact of fiscal policy. This is in consonance with best international practices and makes the new WPI conceptually closer to the "Produce Price Index" used internationally.
The weight given to each commodity covered in the WPI basked is based on the net traded value of the item in the year 2011-12. The net traded value is the value of output in the year 2011-12 adjusted for net imports. Thus, the net traded value represents the total transactions of each product in the economy during the base year.
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