Practice test

Indian economy - Test Set 4

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

    Which was the only Indian state to record a negative decadal population growth rate in the 2011 Census?
    1. Goa
    2. Nagaland
    3. Nagaland
    4. Kerala
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  2. Question 2

    The Statutory Liquidity Ratio (SLR) maintained by commercial banks in India includes which of the following?
    1. Only physical gold reserves.
    2. Only approved government securities.
    3. Cash, gold, and approved government securities.
    4. Cash reserves kept exclusively with the RBI.
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  3. Question 3

    The theoretical relationship between taxation rates and the resulting levels of government tax revenue is illustrated by the:
    1. Lorenz Curve
    2. Laffer Curve
    3. Kuznets Curve
    4. Engel Curve
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  4. Question 4

    In microeconomic production theory, marginal cost is strictly defined as what?
    1. The change in total cost resulting from producing one additional unit.
    2. The total fixed cost divided by the quantity produced.
    3. The total variable cost divided by the quantity produced.
    4. The revenue generated from selling one additional unit.
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  5. Question 5

    What is the primary intended economic effect of devaluing a national currency?
    1. To make domestic imports cheaper and exports more expensive.
    2. To lower the domestic inflation rate immediately.
    3. To make domestic exports cheaper and imports more expensive.
    4. To increase the overall foreign exchange reserves by borrowing.
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  6. Question 6

    Which Five-Year Plan fundamentally failed to achieve its targeted growth rate due to the Sino-Indian War and the Indo-Pakistani War?
    1. Second Five-Year Plan
    2. Third Five-Year Plan
    3. Fourth Five-Year Plan
    4. Fifth Five-Year Plan
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  7. Question 7

    The Contingent Reserve Arrangement (CRA) is a financial framework established by which international group?
    1. ASEAN
    2. SAARC
    3. G20
    4. BRICS
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  8. Question 8

    According to the 2011 Census data, which district emerged as the most populous district in India?
    1. North Twenty Four Parganas, West Bengal
    2. Pune, Maharashtra
    3. Thane, Maharashtra
    4. Bangalore Urban, Karnataka
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  9. Question 9

    Which financial year currently serves as the base year for calculating the Gross Domestic Product (GDP) of India?
    1. 2004-05
    2. 2011-12
    3. 2014-15
    4. 2017-18
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  10. Question 10

    The Suresh Tendulkar Committee was officially appointed by the Government of India to review the methodology of what?
    1. Direct tax code simplification
    2. Banking sector reforms
    3. Poverty line estimation
    4. Disinvestment in Public Sector Undertakings
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  11. Question 11

    Engel's Law in microeconomics observes that as a household's income increases, what happens to their spending behavior?
    1. The proportion of income spent on luxury goods strictly decreases.
    2. The absolute amount of money spent on food decreases.
    3. The proportion of income spent on food decreases.
    4. The proportion of income saved decreases to zero.
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  12. Question 12

    Which was the final Five-Year Plan implemented in India before the planning mechanism was replaced?
    1. Tenth Five-Year Plan
    2. Eleventh Five-Year Plan
    3. Twelfth Five-Year Plan
    4. Thirteenth Five-Year Plan
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  13. Question 13

    Where are the official headquarters of the Asian Development Bank (ADB) located?
    1. Tokyo, Japan
    2. Beijing, China
    3. Mandaluyong, Philippines
    4. Singapore City, Singapore
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  14. Question 14

    The kinked demand curve model is an economic theory primarily used to explain price rigidity in which market structure?
    1. Perfect competition
    2. Oligopoly
    3. Monopoly
    4. Monopolistic competition
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  15. Question 15

    The Gini Coefficient is a statistical measure frequently used by economists to represent what?
    1. The level of inflation in consumer goods.
    2. Income or wealth inequality within a population.
    3. The ease of doing business in a country.
    4. The overall human development index.
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  16. Question 16

    What happens to the overall money supply when the Reserve Bank of India strictly increases the Cash Reserve Ratio (CRR)?
    1. The money supply increases proportionally.
    2. The inflation rate immediately rises.
    3. The money supply remains unaffected.
    4. The money supply decreases.
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  17. Question 17

    Consider the following statements regarding the core properties of an Indifference Curve:

    1. It always slopes downwards from left to right.

    2. It is strictly concave to the origin.

    3. Two distinct indifference curves can never intersect each other.

    Which of the statements given above are correct?
    1. 1 and 2 only
    2. 2 and 3 only
    3. 1 and 3 only
    4. 1, 2, and 3
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  18. Question 18

    The National Bank for Agriculture and Rural Development (NABARD) was officially established during which Five-Year Plan?
    1. Fourth Five-Year Plan
    2. Sixth Five-Year Plan
    3. Fifth Five-Year Plan
    4. Eighth Five-Year Plan
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  19. Question 19

    Which of the following prominent international organizations publishes the annual 'Global Competitiveness Report'?
    1. World Bank Group
    2. International Monetary Fund (IMF)
    3. World Economic Forum (WEF)
    4. United Nations Development Programme (UNDP)
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  20. Question 20

    According to the official 2011 Census, which Indian state recorded the lowest sex ratio?
    1. Punjab
    2. Haryana
    3. Uttar Pradesh
    4. Rajasthan
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