Quiz 280 – Previous year’s Economics Questions with Explained Answers

A country is said to be in a debt trap if:

(a) it has to borrow to make interest payment on to standing loans

(b) it has been refused loans or aid by creditors abroad

(c) the World Bank charges a very high rate of interest n outstanding as well as new loans

(d) if has to borrow to make interest payments on outstanding loans

Explanation:

A country is said to be in a debt trap if it has to borrow to make interest payment on to standing loans.

Ans- (a)


 

Consider the following statements:

Full convertibility of the rupee may mean:

  1. Its free float with other international currencies
  2. Its direct exchange with any other international currency at any prescribed place inside and out side the country
  3. It acts just like any other international currency

Which of these statements are correct?

(a) 1 and2

(b) 1 and 3

(c) 2 and 3

(d) 1, 2 and 3

Explanation:

When domestic currency float freely with other international currencies for the foreign exchange transaction it will called fully converliable currency.

Ans- (a)


 

“World Development Report” is an annual publication of:

(a) International Bank of Reconstruction and Development

(b) World Trade Organization

(c) International Monetary Fund

(d) United Nations Development Progamme

Explanation:

“World Development Report” is an annual  publication of International Bank of Reconstruction and Development (World Bank).

Ans- (a)


 

Consider the following statements:

  1. The World Intellectual Property Organization (WIPO) is a specialized agency of United Nations System of Organizations
  2. WIPO has its headquarter at Rome
  3. The Trade Related Aspects of Intellectual Property Rights (TRIPS) Agreement is binding on all WTO members
  4. Least development country members of WTO are not required to apply the provisions of TRIPS Agreement for a period of 20 years from the general date of application of the Agreement.

Which of these statements are correct?

(a) 1, 2, 3 and 4

(b) 2, 3, and 4

(c) 1, 2and 4

(d) 1 and 3

Explanation:

Statement 1 and 3 are correct, 2 and 4 are not correct.

Ans- (d)


 

Which one of the following committees recommended the abolition of reservation of items for the small scale sector in Industry?

(a) Nayak Committee

(b) Abid Hussian Committee

(c) Rakesh Mohan Committee

(d) Narasimham Committee

Explanation:

It was Abid Hussian Committee that recommended the abolition of reservation of items for the small scale sector in Industry.

Ans- (b)


 

The Kelkar proposals (which were in the news recently) were the-

(a) guidelines for reducing vehicular population, and the promotion of CNG use

(b) recommendations for reforms in the power sector

(c) Recommendations for tax reform

(d) guidelines for the privatization of public sector undertakings

Explanation:

theKelkar proposal which were in the news recently were the recommendations for tax reform. Kelkar Committee has now recommended for the abolition of MAT, to increase tax in service area.

Ans- (c)


 

Consider the following statements:

  1. The maximum limit of shareholding of Indian promoters in private sector banks in India is 49% of the paid up capital
  2. Foreign Direct Investment up to 40% from all sources is permitted in private sector banks in India under the automatic route.

Which of the statements is/are correct?

(a) only 1

(b) only 2

(c) Both 1 and 2

(d) Neither 1 nor 2

Ans- (b)


 

Assertion (A): The new EXIM policy is liberal, market-oriented and favours global trade.

Reason (R): GATT has played a significant role in the liberlsation of the economy.

(a) Both A and R is true and R is the correct explanation of A.

(b) Both A and R is true but R is not the correct explanation of A.

(c) A is true but R is false

(d) A is false but R is True

Explanation:

Bothe A and R are true but Reason is not correct explanation of Assertion.

Ans- (b)


 

Agricultural income tax is assigned to the State Government by:

(a) National Development Council

(b) Inter-State Council

(c) Finance Commission

(d) The Constitution of India

Explanation:

Agriculture income tax is assigned to the States Government by the Finance Commission.

Ans- (c)


 

National Income is:

(a) Net National Product at market price

(b) Net Domestic Product at factory cost

(c) Net Domestic Product at market price

(d) Net National Product at factor cost

Explanation:

National Income can be defined as the monetary value of all final goods and services produced during a financial year in an economy. It is also called Net National Product at Factor coast.

Ans- (d)


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2 COMMENTS

    • I am a mechanical engineering student from VIT.. And my suggestion is that u should focus on ur current graduation course… Last 1 and half year u can study both but maintaining balance bcoz quality study is preferable and during initial graduation years just tyr to inculcate the behavior of understanding.. ..acceptance..analysis..of the things going on in ur local environment and try to become decisive.. And responsible bcoz lots of people can study the syllabus but inculcating these habits will seperate u from others.. As UPSC is all about analysis and decision.. And this is my personal opinion… and it completely depends on someone to analyze it and conclude it..

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