11. Per Capita Income of a country is obtained by dividing National Income by which of the following?
[A] Total working population
[B] Total population of the country
[C] Area of the country
[D] Volume of the capital used
Show Answer
Correct Answer: B [ Total population of the country ]
Notes:
Per capita income or average income measures the average income earned per person in a given area in a specified year. It is calculated by dividing the area’s total income by its total population.
12. Which of the following is facilitated by Foreign Exchange Reserves?
[A] External trade
[B] Orderly development
[C] Maintenance of foreign exchange market
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
Foreign exchange reserves are crucial for a country’s economic stability. They facilitate external trade by providing the necessary currency for imports and exports. They also support orderly development by ensuring that a country can meet its international payment obligations. Additionally, reserves help maintain a stable foreign exchange market by allowing central banks to intervene in currency fluctuations. Countries like China and Japan hold important reserves to manage their economies effectively. Thus, the correct answer is “All of the above.”
13. Which tax causes a burden on the poorer section of the society?
[A] Indirect Tax
[B] Direct Tax
[C] Both Direct and Indirect Tax
[D] None of these
Show Answer
Correct Answer: A [Indirect Tax]
Notes:
Indirect taxes make the distribution of income more unequal because of their regressive effects. The poor will get taxed a higher proportion of their income than the rich, making it a regressive tax.
14. What is the disadvantage of Capital intensive industries?
[A] Increase employment in rural areas
[B] Increase unemployment
[C] Give blow to the growth of large scale industries
[D] Provide opportunities for workers’ participation in management
Show Answer
Correct Answer: B [Increase unemployment]
Notes:
The following are the disadvantages of capital intensive industries: Initial high costs of investment and possible training costs, Lack of flexibility in responding to a fall in demand. Labour is used flexibly, e.g. using temporary workers so increasing unemployment.
15. Which of the following is the traditional market place in India?
[A] Marketing cooperatives
[B] Fairs
[C] Janata shops
[D] Government shops
Show Answer
Correct Answer: C [Janata shops]
Notes:
A marketplace is a location where people regularly gather for the purchase and sale of provisions, livestock, and other goods. Janata shops are the traditional market place in India.
16. Which one of the following schemes was intended to tap the black money?
[A] UTI Bonds
[B] India Development Bonds
[C] Long term operations scheme
[D] SBI Deposit scheme
Show Answer
Correct Answer: B [India Development Bonds]
Notes:
India Development Bonds schemes was intended to tap the black money.
17. Which economic system is known as the Keynesian Economic system?
[A] Market economic system
[B] Mixed economic system
[C] Socialist economic system
[D] None of the above
Show Answer
Correct Answer: B [Mixed economic system]
Notes:
The mixed economic system combines the command economy and free-market economy, so it has the features of both of these two economic systems. It is also known as the Keynesian economic system or dual economic system.
18. The unemployment in agriculture to Mechanization is called?
[A] Disguised Unemplyment
[B] Technical Unemployment
[C] Structural Unemployment
[D] Seasonal Unemployment
Show Answer
Correct Answer: C [Structural Unemployment]
Notes:
The unemployment resulting from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand.
19. Which is major cause of the poor development of India?
[A] High Population
[B] Less Exports
[C] Market Imperfections
[D] Poor infrastructure
Show Answer
Correct Answer: A [High Population]
Notes:
There are many reasons for the underdevelopment of India but the root cause that gives rise to every problem like poverty and others is a high population combined with less income.
20. Which of the following is a GM crop?
[A] Basmati Rice
[B] Golden Rice
[C] Sticky Rice
[D] All the above
Show Answer
Correct Answer: B [Golden Rice]
Notes:Golden rice is a type of GM crop. It is a variety of rice variety that is rich in Vitamin A.
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