Practice test

Indian economy - Test Set 3

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

    Fiscal deficit in the Union Budget is essentially equal to which of the following?
    1. Total expenditure minus total revenue receipts.
    2. Total borrowing requirements of the government.
    3. Revenue expenditure minus revenue receipts.
    4. Primary deficit minus interest payments.
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  2. Question 2

    In microeconomics, opportunity cost is most accurately defined as what?
    1. The total financial cost of producing a good.
    2. The value of the next best alternative forgone.
    3. The fixed cost associated with a business decision.
    4. The sunk cost that cannot be recovered.
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  3. Question 3

    Which specific period is officially referred to as the 'Plan Holiday' in the history of the Indian economy?
    1. 1966 to 1969
    2. 1978 to 1980
    3. 1990 to 1992
    4. 1965 to 1968
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  4. Question 4

    Which institution is commonly known as the "soft loan window" of the World Bank?
    1. International Finance Corporation (IFC)
    2. Multilateral Investment Guarantee Agency (MIGA)
    3. International Development Association (IDA)
    4. International Bank for Reconstruction and Development (IBRD)
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  5. Question 5

    According to the 2011 Census, which district in India recorded the highest literacy rate?
    1. Ernakulam, Kerala
    2. Serchhip, Mizoram
    3. Mahe, Puducherry
    4. Kottayam, Kerala
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  6. Question 6

    Which of the following is a classic example of an indirect tax in India?
    1. Income Tax
    2. Corporation Tax
    3. Wealth Tax
    4. Goods and Services Tax (GST)
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  7. Question 7

    What is the graphical shape of a typical average fixed cost (AFC) curve?
    1. U-shaped
    2. L-shaped
    3. Rectangular hyperbola
    4. Upward sloping
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  8. Question 8

    NITI Aayog was established by the Government of India to replace the Planning Commission on which exact date?
    1. August 15, 2014
    2. January 1, 2015
    3. April 1, 2015
    4. October 2, 2014
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  9. Question 9

    Where is the headquarters of the New Development Bank (NDB), established by the BRICS nations, located?
    1. Beijing, China
    2. Moscow, Russia
    3. Shanghai, China
    4. New Delhi, India
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  10. Question 10

    What was the approximate percentage of the agricultural workforce in India's total workforce as per the 2011 Census?
    1. 42.5%
    2. 54.6%
    3. 65.2%
    4. 38.4%
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  11. Question 11

    The Phillips curve illustrates the macroeconomic relationship between which of the following variables?
    1. Tax rates and total tax revenue
    2. Rate of inflation and rate of unemployment
    3. Economic growth and environmental degradation
    4. Income inequality and economic development
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  12. Question 12

    Which economic indicator is calculated by dividing Nominal GDP by Real GDP and multiplying by 100?
    1. Consumer Price Index
    2. Wholesale Price Index
    3. GDP Deflator
    4. Purchasing Power Parity
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  13. Question 13

    In microeconomics, a Giffen good is characterized by which of the following unique behaviors?
    1. Demand remains completely constant regardless of price changes.
    2. Demand increases proportionately as consumer income increases.
    3. Demand decreases as the price of a complementary good rises.
    4. Demand increases as its own price increases.
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  14. Question 14

    The First Five-Year Plan of India (1951-1956) was fundamentally based on which economic model?
    1. P.C. Mahalanobis Model
    2. Harrod-Domar Model
    3. Gadgil Yojana
    4. John Sandy and S. Chakravarty Model
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  15. Question 15

    The historic Liberalisation, Privatisation, and Globalisation (LPG) reforms were introduced during which Five-Year Plan?
    1. Sixth Five-Year Plan
    2. Seventh Five-Year Plan
    3. Eighth Five-Year Plan
    4. Ninth Five-Year Plan
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  16. Question 16

    "Towards faster and more inclusive growth" was the central theme of which Five-Year Plan?
    1. Tenth Five-Year Plan
    2. Eleventh Five-Year Plan
    3. Twelfth Five-Year Plan
    4. Ninth Five-Year Plan
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  17. Question 17

    Which prominent international institution publishes the 'Global Economic Prospects' report?
    1. World Trade Organization
    2. International Monetary Fund
    3. World Economic Forum
    4. World Bank Group
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  18. Question 18

    The Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement is administered by which organization?
    1. United Nations Educational, Scientific and Cultural Organization (UNESCO)
    2. World Intellectual Property Organization (WIPO)
    3. World Trade Organization (WTO)
    4. International Chamber of Commerce (ICC)
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  19. Question 19

    According to the 2011 Census of India, which state recorded the lowest population density?
    1. Mizoram
    2. Sikkim
    3. Himachal Pradesh
    4. Arunachal Pradesh
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  20. Question 20

    Which Indian state recorded the highest sex ratio according to the 2011 Census?
    1. Kerala
    2. Tamil Nadu
    3. Andhra Pradesh
    4. Chhattisgarh
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