Practice test

Indian economy - Test Set 6

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

    In macroeconomics, what exactly does the term "Disinflation" represent?
    1. A decrease in the overall rate of inflation.
    2. A sustained decrease in the general price level of goods.
    3. High inflation occurring alongside high unemployment.
    4. A sudden increase in prices strictly due to supply chain shocks.
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  2. Question 2

    When the percentage change in quantity demanded is exactly equal to the percentage change in price, the demand is considered to be:
    1. Perfectly elastic
    2. Relatively inelastic
    3. Unitary elastic
    4. Perfectly inelastic
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  3. Question 3

    The 'Minimum Needs Programme' (MNP) was officially introduced during which Five-Year Plan?
    1. Fourth Five-Year Plan
    2. Fifth Five-Year Plan
    3. Sixth Five-Year Plan
    4. Seventh Five-Year Plan
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  4. Question 4

    The International Labour Organization (ILO), a specialized agency of the United Nations, is headquartered in:
    1. Paris, France
    2. New York, USA
    3. Geneva, Switzerland
    4. Vienna, Austria
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  5. Question 5

    According to the 2011 Census, which Indian state holds the record for the lowest total population?
    1. Goa
    2. Mizoram
    3. Arunachal Pradesh
    4. Sikkim
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  6. Question 6

    In the context of the Indian economy, 'Open Market Operations' specifically refers to:
    1. Borrowing by scheduled banks from the Reserve Bank of India.
    2. Borrowing by scheduled banks from the Reserve Bank of India.
    3. Buying and selling of government securities by the RBI.
    4. Deposit mobilization by cooperative banks.
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  7. Question 7

    Which of the following market structures is fundamentally characterized by an individual firm being a "price taker"?
    1. Monopoly
    2. Perfect Competition
    3. Oligopoly
    4. Monopolistic Competition
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  8. Question 8

    The concept of 'Indicative Planning' was comprehensively adopted in India starting from 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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  9. Question 9

    Which international organization successfully publishes the annual 'World Investment Report'?
    1. World Trade Organization (WTO)
    2. International Monetary Fund (IMF)
    3. United Nations Conference on Trade and Development (UNCTAD)
    4. World Economic Forum (WEF)
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  10. Question 10

    Which state officially recorded the lowest percentage of urban population in the 2011 Census?
    1. Bihar
    2. Odisha
    3. Assam
    4. Himachal Pradesh
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  11. Question 11

    Personal Disposable Income (PDI) is mathematically defined as:
    1. National Income minus Corporate Taxes.
    2. Personal Income minus Personal Direct Taxes.
    3. Gross Domestic Product minus Depreciation.
    4. Personal Income minus Indirect Taxes.
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  12. Question 12

    According to the Law of Diminishing Marginal Utility, as consumption of a good continuously increases, what happens to total utility?
    1. Total utility increases at an increasing rate.
    2. Total utility decreases initially and then increases.
    3. Total utility increases at a decreasing rate.
    4. Total utility remains constant.
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  13. Question 13

    The 'Twenty-Point Programme' for massive poverty eradication was first launched by the Government of India in which year?
    1. 1969
    2. 1975
    3. 1980
    4. 1982
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  14. Question 14

    The Financial Action Task Force (FATF), an intergovernmental organization combating money laundering, is headquartered in:
    1. London, UK
    2. New York, USA
    3. Paris, France
    4. Brussels, Belgium
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  15. Question 15

    What was the exact national literacy rate of India as recorded in the 2011 Census?
    1. 72.99%
    2. 73.00%
    3. 74.04%
    4. 75.06%
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  16. Question 16

    The 'Hindu Rate of Growth', a term coined by Prof. Raj Krishna, strictly refers to the low historical growth rate of which economic variable?
    1. Population growth rate
    2. Gross Domestic Product (GDP)
    3. Per Capita Income
    4. Industrial Production Index
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  17. Question 17

    In microeconomic production theory, the 'Long-Run' is strictly defined as a period in which:
    1. Only labor is considered a variable input.
    2. Capital is fixed but labor is variable.
    3. All factors of production are variable.
    4. The firm cannot change its scale of production.
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  18. Question 18

    The period specifically between 1990 and 1992 in Indian economic planning is officially marked by:
    1. A complete Plan Holiday
    2. Two separate Annual Plans
    3. A Rolling Plan
    4. The extension of the Seventh Five-Year Plan
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  19. Question 19

    The institution commonly known as the "World Bank" is primarily composed of which two foundational entities?
    1. IBRD and IDA
    2. IFC and MIGA
    3. IBRD and IFC
    4. IDA and ICSID
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  20. Question 20

    According to the 2011 Census, which state has the highest percentage of Scheduled Caste (SC) population relative to its total state population?
    1. Uttar Pradesh
    2. Himachal Pradesh
    3. Punjab
    4. West Bengal
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