Practice test

Basics of economics - Test Set 2

Review 20 exam-focused questions with detailed explanations, then start the interactive test when you are ready.

20 questions

Questions and explanations

  1. Question 1

    Machines, tools and implements, and buildings are examples of which type of goods?
    1. Consumer goods
    2. Interior goods
    3. Intermediate goods
    4. Capital goods
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  2. Question 2

    Hindustan Aeronautics Limited comes under which sector?
    1. Co-operative sector
    2. Private sector
    3. Foreign sector
    4. Public sector
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  3. Question 3

    In migration the factors which cause people to leave their place of residence or origin are called ______.

    1. Pull factors
    2. Regular factors
    3. Push factors
    4. Irregular factors
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  4. Question 4

    Change in the inventory of a firm is treated as ______.

    1. Disinvestment
    2. Investment
    3. Liability
    4. Asset
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  5. Question 5

    Which of the following is an example of joint-sector industry?
    1. Steel Authority of India Limited
    2. Hindustan Aeronautics Limited
    3. Maruti Udyog Limited
    4. Anand Milk Union Limited
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  6. Question 6

    The best example of capital intensive industry in India is:
    1. Textile industry
    2. Steel industry
    3. Tourism industry
    4. Spare goods industry
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  7. Question 7

    The removal of prohibitions and hindrance by government is called:
    1. Globalisation
    2. Privatisation
    3. Liberalisation
    4. Bilateral understanding
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  8. Question 8

    Arthashastra by “Kautilya” is related with:
    1. Military Phase
    2. Political Reign
    3. Social Phase
    4. Economic Postulates
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  9. Question 9

    One of the objectives of Industrial Licensing Policy in India was to ensure:
    1. Creation of adequate employment opportunities
    2. Free flow of foreign capital in Indian industries
    3. Use of modern technology
    4. Balanced (industrial) development across regions
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  10. Question 10

    The Indian economy can be most appropriately described as a:
    1. Capitalist economy
    2. Socialist economy
    3. Traditional economy
    4. Mixed economy
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  11. Question 11

    Which is the first Public Sector Corporation of independent India?
    1. Hindustan Steel Corporation, Bhilai
    2. State Trading Corporation of India
    3. Food Corporation of India
    4. Damodar Valley Corporation
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  12. Question 12

    Which of the following is not the infrastructure Sector?
    1. Power generation
    2. Construction of roads
    3. Food Production
    4. Expansion of air ports
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  13. Question 13

    The term ‘Mixed Economy’ denotes:
    1. Existence of both rural and urban sectors
    2. Existence of both private and public sectors
    3. Existence of both heavy and small industries
    4. Existence of both developed and underdeveloped sectors
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  14. Question 14

    India is called a mixed economy because of the existence of:
    (a) Public Sector
    (b) Private Sector
    (c) Joint Sector
    (d) Cooperative Sector

    Options:
    1. a, d
    2. a, b
    3. c, d
    4. b, d
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  15. Question 15

    Which of the following sectors contributed more of the savings in India?
    1. Public Sector
    2. Household Sector
    3. Corporate Sector
    4. Private Sector
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  16. Question 16

    The concept of mixed economy means:
    1. To have balanced development in the agricultural and industrial sector
    2. Simultaneous development of the rural and urban sector
    3. To have equal distribution of wealth among the rural and the urban poor
    4. Simultaneous existence of the private and public sector
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  17. Question 17

    Over use of resource is called “Tragedy of Commons”. It was propounded by:
    1. Garrett Hardin
    2. Seligman
    3. Adolph Wagner
    4. A.P Lernier
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  18. Question 18

    In the national context which of the following indicates Macro Approach?
    1. Inflation in India
    2. Sales of Bata shoe Company
    3. Exports of Mangoes to UK
    4. Income from Railways
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  19. Question 19

    Indian economy is an example of a mixed economy because:
    1. Urban sector coexists with vast rural sector
    2. Traditional subsistence economy coexists with modern economy
    3. Private sector coexists with public sector enterprises
    4. Monopoly elements coexist with competitive elements
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  20. Question 20

    Indian Economy is a/an:
    1. Independent Economy
    2. Mixed Economy
    3. Capitalist Economy
    4. Communist Economy
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