Practice test

Indian economy - 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

    MPPCS Pre 2008
    Who is called the pioneer of Liberalisation of Indian Economy?
    1. Dr. Manmohan Singh
    2. P.V. Narsimha Rao
    3. Dr. Bimal Jalan
    4. P. Chidambaram
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  2. Question 2

    TSPSC Pre 2020
    Which one of the following organisations publishes the Human Development Report?
    1. UNESCO
    2. World Bank
    3. UNDP
    4. IMF
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  3. Question 3

    UPPCS Mains 2007
    The headquarters of World Trade organisation is at
    1. Doha
    2. Geneva
    3. Rome
    4. New York
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  4. Question 4

    Kerala PSC Pre 2021
    India, foreign Investment Promotion Board now works under
    1. Reserve Bank of India
    2. Ministry of External Affairs
    3. Ministry of Commerce
    4. Ministry of Finance
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  5. Question 5

    WBCS Mains 2020
    National Rural Employment Guarantee Act provides employment to
    1. skill rural workers
    2. semi-skilled rural workers
    3. unskilled workers
    4. Both A and B
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  6. Question 6

    What is the primary definition of the Bank Rate in India?
    1. The rate at which commercial banks lend to the public.
    2. The rate at which the RBI borrows from commercial banks.
    3. The rate at which the RBI lends long-term funds to commercial banks.
    4. The rate at which commercial banks maintain deposits with the RBI.
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  7. Question 7

    According to the law of demand, what happens when the price of a substitute good increase?
    1. The demand for the original good decreases.
    2. The demand for the original good increases.
    3. The supply of the original good increases.
    4. The demand for the original good remains perfectly perfectly elastic.
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  8. Question 8

    Which Five-Year Plan in India was primarily based on the Mahalanobis model?
    1. Fourth Five-Year Plan
    2. Third Five-Year Plan
    3. Second Five-Year Plan
    4. First Five-Year Plan
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  9. Question 9

    The World Trade Organization (WTO) was established in which year?
    1. 1944
    2. 1948
    3. 1991
    4. 1995
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  10. Question 10

    According to the 2011 Census, which Indian state has the highest population density?
    1. West Bengal
    2. Uttar Pradesh
    3. Bihar
    4. Kerala
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  11. Question 11

    Stagflation is a macroeconomic situation characterized by which of the following?
    1. High inflation combined with high economic growth.
    2. Low inflation combined with high unemployment.
    3. High inflation combined with high unemployment and stagnant growth.
    4. Deflation combined with rapid economic expansion.
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  12. Question 12

    A market structure characterized by a single buyer and many sellers is known as what?
    1. Monopoly
    2. Oligopoly
    3. Monopolistic competition
    4. Monopsony
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  13. Question 13

    The concept of the 'Rolling Plan' in India was introduced by which government?
    1. The Congress Government under Indira Gandhi
    2. The Janata Party Government under Morarji Desai
    3. The NDA Government under Atal Bihari Vajpayee
    4. The UPA Government under Manmohan Singh
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  14. Question 14

    Special Drawing Rights (SDR) are created and allocated by which international organization?
    1. World Bank
    2. World Trade Organization (WTO)
    3. International Monetary Fund (IMF)
    4. Asian Development Bank (ADB)
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  15. Question 15

    What is the child sex ratio (0-6 years) in India as per the 2011 Census?
    1. 943
    2. 919
    3. 927
    4. 914
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  16. Question 16

    Which of the following is deducted from Gross National Product (GNP) to calculate Net National Product (NNP)?
    1. Indirect Taxes
    2. Subsidies
    3. Depreciation
    4. Net Factor Income from Abroad
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  17. Question 17

    If the cross-price elasticity of demand between two goods is negative, what are the goods?
    1. Substitute goods
    2. Giffen goods
    3. Independent goods
    4. Complementary goods
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  18. Question 18

    "Garibi Hatao" (Eradicate Poverty) was the primary slogan of which Five-Year Plan?
    1. Third Five-Year Plan
    2. Fourth Five-Year Plan
    3. Sixth Five-Year Plan
    4. Fifth Five-Year Plan
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  19. Question 19

    Which prominent international organization publishes the 'World Economic Outlook' report?
    1. World Economic Forum (WEF)
    2. International Monetary Fund (IMF)
    3. World Bank Group
    4. United Nations Development Programme (UNDP)
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  20. Question 20

    Which Indian state has the highest percentage of urban population according to the 2011 Census?
    1. Maharashtra
    2. Gujarat
    3. Tamil Nadu
    4. Goa
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