Economics Questions & Answers (Compiled from UPSC, SSC ,PSC ,IBPS previous question papers)

Match List I and List II and select the correct answer :

List I	List II
a) Expenditure on defence service	1. Non-development expenditure
b) Running of Government Department	2. Development expenditure
c) Expenditure on public health	3. Revenue expenditure
d) Expenditure on external affairs	4. Capital expenditure

Which one of the following is not under the functions of State Government
Public health
Forests
Police
Defence

The classical theory of public debt assumed
Full employment and unproductiveness of public expenditure
Full employment and productiveness of public expenditure
Unemployment and productiveness of public expenditure
Unemployment and unproductiveness of public expenditure

A tax imposed in one person and the real burden is also borne by him is
Progressive tax
Direct tax
Indirect tax
Value added tax

Which one of the following is not a method of debt redemption
Repudiation
Refunding
Conversion
Credit creation

Which authority is responsible for framing the budget of the Union Government
Reserve Bank of India
Planning Commission
Finance Ministry
Finance Commission

The expenditures incurred out of the proceeds of taxes and other revenue receipts
Expenditure on capital account
Expenditure on revenue account
Expenditure on central plans
Central assistance for the plans of the state and union territories

CRIS stands for
Comparative Rating Index of Sovereigns
Comparative Ratio Index of Sovereigns
Consolidated Rating Index of Sovereigns
Consolidated Rating for Indian Systems

Conside the statements and choose the correct answer. Which of the following taxes is/are levied and collected by union and distributed to states

a) Taxes on income other than agricultural income

b) Tax on tobacco

c) Sales tax

d) Corporation tax
Only
(a) and (b)
(b) and (c)
(a), (b) and (c)

Which of the following world body helped India to solve river dispute with Pakistan
IBRD
IMF
ADB
UNO

In the balance of payment account, the transfer payments are included in which one of the following
Current account
Capital account
Service account
Official reserve account

Value of Imports / Value of Exports = ..............
terms of trade
balance of payment
comparative cost
none of the above

Match the following and select the correct response :

a) Extended fund facilities	1. Establish commodity prices
b) Structural adjustment facility	2. External shocks
c) Buffer stock financing facility	3. Medium term macro economic problem
d) Compensatory and contigency financing facilities	4. Long period balance of payment problem

Import of raw material and intermediate goods are called as
Consumer goods import
Anti - inflationary import
Maintenance import
Developmental import

Which is not the immediate causes for the creation of New International Economic order
Cold war was at its peak level
Formation of OPEC
Failure of Bretton woods system
High inflation and unemployment in developing countries

GATT was replaced of
GATS
WTO
EU
The International Development Association

Special Drawing Rights (SDRs) are created to
Improve International Liquidity
Promote Export
Promote Import
Promote Saving

A subsidiary money issued by the government is a
Limited legal tender
Unlimited legal tender
Convertible money
Standard money

In Friedman's Restatement of Quantity theory of money, the supply of money is
Stable
Unstable
Stock
Static

"Money, interest and prices" is a moumental work of
J.M. Keynes
James Tobin
Don Patinkin
W. Baumol

Which one of the following is not the objective of portfolio management of commercial banks
Liquidity
Safety
Risk taking
Profit

The principal motive of open market operation is to influence the reserves of commercial banks and
money supply
size of investment
market rate of interest
purchase of bonds

The variable Reserve ratio as a method of credit control was first suggested by
International monetary fund
Keynes
De Kock
Reserve Bank of India

According to Friedman, the relationship between Demand for money and general price level is
Direct Proportional
Inverse
Indeterminate relation
No relationship

When price rises very faster rate, such inflation is
Creeping Inflation
Walking Inflation
Running Inflation
Hyper Inflation

According to Friedman, Inflation is always a
Social Phenomenon
Fiscal Phenomenon
Monetary Phenomenon
Political Phenomenon

Capital consumption allowance refers to
Consumption of goods
Consumption of service
Depreciation
Final goods

The economic freedom enjoyed in a market economy implies
Freedom of contract
Freedom of choice
Freedom of profit motive
Freedom of competition

The concept of Liberal Socialism was propounded by
Karl Marx
Lange and Taylor
Weldon Hoot
Joan Robinson

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