Questions and answers for exam Preparation

MCQs

Total Questions : 150 | Page 7 of 15 pages

Question 61. The effect of a government surplus upon the equilibrium level of NNP [Net National Product] is substantially the same as

an increase in consumption
an increase in investment
an increase in saving
a decrease in saving

Discuss Question

Answer: Option A. -> an increase in consumption
Answer: (a)The effect of a government surplus upon the equilibrium level of NNP (Net National Product) is substantially the same as an increase in consumption.

Question 62. Which of the following is true?

Physical planning is more important than financial planning.
Financial planning is more important than physical planning.
Physical and financial planning are equally important.
Physical and financial planning are complementary.

Discuss Question

Answer: Option D. -> Physical and financial planning are complementary.
Answer: (d)
Physical planning refers to the allocation of resources in terms of men, materials and machinery. In physical planning, an overall assessment is made of the available real resources such as raw materials, manpower, etc., and how they have to be obtained so that bottlenecks may be eliminated during the plan.
Physical planning requires the fixation of physical targets with regard to agricultural and industrial production, socio-cultural and transportation services, consumption levels and in respect of employment, income and investment levels of the economy. Physical planning has to be viewed as overall long-term planning rather than short-term piecemeal planning.
Financial planning refers to the technique of planning in which resources are allocated in terms of money. Financial planning is essential in order to remove maladjustments between supplies and demand and for calculating the costs and benefits of the various projects.
Thus, Financial planning is thought to secure a balance between demands and supplies, avoid inflation and bring about economic stability.

Question 63. Which of the following is not included in Human Development Index?

Social Inequality
Life Expectancy
Adult Literacy
Real per capita income

Discuss Question

Answer: Option A. -> Social Inequality
Answer: (a)

Question 64. According to the UN Department of Economic and Social Affairs (UNDESA), what percentage of world’s total population is currently living in urban areas?

Discuss Question

Answer: Option C. -> 55
Answer: (c)

Question 65. Gilt-edged market means :

bullion market

market of government securities

market of guns

market of pure metals

Find out the correct option from the code:

1 and 3 only
4 and 3 only
2 only
3 only

Discuss Question

Answer: Option C. -> 2 only
Answer: (c)
Gilts are bonds issued by certain, national governments. The term is of British origin and originally referred to the debt securities issued by the Bank of England, which had a gilt (or gilded) edge.
Hence, they are called gilt-edged securities, or gilts for short. The term is also sometimes used in Ireland and some British Commonwealth Countries, South Africa and India.
The term “Gilt Account” is also a term used by the RBI of India to refer to a constituent account maintained by a custodian bank for maintenance and servicing of dematerialised Government Securities owned by a retail customer.

Question 66. ‘Rule of Law Index’ is released by which of the following?

The office of UN Commissioner for Human Rights
Amnesty International
World Justice Project
International Court of Justice

Discuss Question

Answer: Option C. -> World Justice Project
Answer: (c)

Question 67. In an open economy, the National Income (y) of the economy is (C, I, G, X, M, Y stand for Consumption, Investment, Government Expenditure, Total Exports, Total Imports and National Income, respectively). Select the correct answer from the following.