42 Objective questions on Structure of the Indian Economy Part-2 (Civil Service Examination)

43. Which one of the following statements is false? [2000]

(a) All countries other than India have over 80% literacy

(b) Malaysia and Korea have life expectancy higher than all other countries

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(d) The life expectancy at birth in India is almost the same as that of Indonesia

44. The best performance in terms of Human Development among Asian countries is by: [2000]

(a) China (b) Malaysia

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45. Which one of the following countries occupies the first place in the “Global Competitive Report” of World Economic Forum? [2000]

(a) U.S.A (b) Singapore

46. The most appropriate measure economic growth is its: [2001]

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(a) Gross Domestic Product of a country’s

(b) Net Domestic Product

(d) Per Capita Real Income

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47. Match List I with List II and select the correct answer using the codes given below the lists: [2001]

List-I (Term)

A. Fiscal deficit

B. Budget deficit

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C. Revenue deficit

D. Primary deficit

List-II (Explanation)

1. Excess of Total Expenditure over Total Receipts

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2. Excess of Revenue Expenditure

3. Excess of Total Expenditure over Total Receipts less borrowings

4. Excess of Total Expenditure over

Total Receipts less borrowings and Interest Payments

Codes:

(a) A-3; B-1; C-2; D-4

(b) A-4; B-3; C-2;D-1

(d) A-3; B-1; C-4; D-2

48. Consider the following taxes: [2001]

1. Corporation tax

2. Customs duty

3. Wealth tax

4. Excise duty

Which of these is/are indirect taxes?

(a) 1 only (b) 2 and 4

49. The new series of Wholesale Price Index (WPI) released by the Government of India is with reference to the base prices of: [2001]

(a) 1981-82 (b) 1990-91

50. The term National Income represents: [2001]

(a) gross national product at market prices minus depreciation

(b) gross national product at market prices minus depreciation plus net factor income from abroad

(d) gross national product at market prices minus net factor income from abroad

51. Assertion (A): Ceiling on foreign exchange for a host of current account transaction heads was lowered in the year 2000.

Reason (R): There was a fall in foreign currency assets also. [2001]

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

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

(d) A is false but R is true

52. The prices at which the government purchases food grains for maintaining the public distribution system and for building up buffer-stock is known as: [2001]

(a) minimum support prices

(b) procurement prices

(d) ceiling prices

53. India’s population growth during the 20th century can be classified into four distinct phases. Match List I (Period) with List II (Phase) and select the correct answer using the codes given below the lists: [2002]

List I (Period)

A. 1901-1921

B. 1921-1951

C. 1951-1981

D. 1981-2001

List II

1. Steady growth

2. Rapid high growth

3. Stagnant growth

4. High growth with definite signs of slowdown

Codes:

(a) A-3; B-1;C-4;D-2

(b) A-1; B-3;C-2; D-4

(d) A-1;B-3;C-4;D-3

54. With reference to Power Sector in India, consider the following statements: [2002]

1. Rural electrification has been treated as a Basic Minimum Service under the Prime Minister’s Gramodaya Yojana

2. 100 percent Foreign Direct Investment in power is allowed without upper limit

3. The Union Ministry of Power has signed a Memoranda of Understanding with 14 States

Which of these statements is/are correct?

(a) 1 only (b) 1 and 2

55. Consider the following statements: [2002]

Full convertibility of the rupee may mean:

1. Its free float with the international currencies

2. Its direct exchange with any other international currency at any prescribed place inside and outside the country

3. It acts just like any other international currency

Which of these statements are correct?

(a) 1 and 2 (b) 1 and 3

56. Consider the following statements: [2003] In India, stamp duties on financial transactions are:

1. levied and collected by the State Government

2. appropriated by the Union Government Which of these statements is/are correct?

(a) Only 1 (b) Only 2

57. Which amongst the following States has the highest population density as per Census-2001 ? [2003]

(a) Kerala (b) Madhya Pradesh

58. Life expectancy is the highest in the world in : [2003]

(a) Canada (b) Germany

59. Which one among the following States has the highest female literacy rate as per the Census 2001 ? [2003]

(a) Chhattisgarh (b) Madhya Pradesh

60. Which of the following is not a recommendation of the task force on direct taxes under the chairmanship of Dr. Vijay L. Kelkar in the year 2002? [2004]

(a) Abolition of Wealth Tax

(b) Increase in the exemption limit of personal income to Rs. 1.20 lakh for widows

(d) Exemption from tax on dividends and capital gains from the listed equity

61. As per 1991 Census, which one of the following groups of Union Territories had the highest literacy rate? [1999]

(a) Chandigarh and Dadra & Nagar Haveli

(b) Delhi and Andaman & Nicobar Islands

(d) Pondicherry and Delhi

62. Consider the following statements:

As per 2000 Census [2004]

1. the two States with the lowest sex ratio are Haryana and Punjab

2. the two States with the lowest population per sq. km. of area are Meghalaya and Mizoram

3. Kerala has both the highest literacy rate and sex ratio

Which of the statements given above is/are correct?

(a) 3 only (b) 2 and 3

63. Consider the following statements: [2005]

1. Poverty Reduction and Growth Facility (PRGF) has been established by the International Development Association (IDA) to provide further assistance to low income countries facing high level of indebtedness.

2. Singapore regional Training Institute (STI) is one of the institutes that provides training in macroeconomic analysis and policy and related subject as a part of programme of the IMF institute.

Which of the statements given above is/are correct?

(a) 1 only (b) 2 only

64. Which one of the following statements is not correct? [2005]

(a) There is no definition of the Scheduled Tribe in the constitutions of India.

(b) North-East India accounts for a little over half of the country’s tribal population.

(d) Lotha is a language spoken in Nagaland

65. Consider the following statements: [2005]

1. India is the second country in the world to adopt a National Family Planning Programme

2. The National Population Policy of India 2000 seeks to achieve replacement level of fertility by 2010 with a population of 111 crores.

3. Kerala is the first state in India to achieve replacement level of fertility.

Which of the statements given above is/are correct?

(a) 1 only (b) 1 and 2

66. Which one of the following statements is true on the basis ofcensus-2001? [2005]

(a) Bihar has the highest percentage of the scheduled castes of its population.

(b) The decadal growth of population of India (1991 -2001) has been below 20%

(d) Pondicherry has the highest sex ratio’ among the Union Territories

67. According to the census 2001, which one of the following Indian States has the maximum population in India after Uttar Pradesh? [2005]

(a) West Bengal (b) Maharashtra

68. Which one of the following statements is correct? Fiscal Responsibility and Budget Management Act (FRBMA) concerns: [2006]

(a) Fiscal Deficit only

(b) Revenue deficit only

(d) Neither fiscal deficit nor revenue deficit

69. Which one of the following is the correct sequence in the decreasing order of contribution of different sectors to the Gross Domestic Product of India? [2007]

(a) Services – Industry – Agriculture

(b) Services – Agriculture – Industry

(d) Industry – Agriculture – Services

70. Which one among the following States of India has the lowest density of population? [2007]

(a) Himachal Pradesh (b) Meghalaya

71. As per India’s National Population Policy, 2000 by which one of the following years is it our long-term objective to achieve population stabilization? [2008]

(a) 2025 (b) 2035

72. What is the approximate percentage of persons above 65 years of age in India’s current population? [2008]

(a) 14-15% (b) 11-12%

73. Amongst the following States, which one has the highest percentage of rural population to its total population (on the baiss of the Census, 2001)? [2008]

(a) Himachal Pradesh (b) Bihar

74. Among the following, which one has the minimum population on the baiss of data of Census of India, 2001? [2008]

(a) Chandigarh (b) Mizoram

75. Which of the following pairs about India’s economic indicator and agricultural production (all in rounded figures) are correctly matched? [2008]

1. GDP per capita (current prices): Rs 37,000

2. Rice: 180 million tons

3. Wheat: 75 million tons

Select the correct answer using the code given below: Codes:

(a) 1, 2 and 3 (b) 1 and 2 only

76. Consider the following statements with reference to Indira Gandhi National Old Age Pension Scheme (IGNOAPS): [2008]

1. All persons of 60 years or above belonging to the households below poverty line in rural areas are eligible.

2. The Central Assistance under this Scheme is at the rate of Rs 300 per month per beneficiary. Under the Scheme, States have been urged to give matching amounts.

Which of the statements given above is/are correct?

(a) 1 only (b) 2 only

77. Which one among the following South Asian countries has the highest population density? [2009]

(a) India (b) Nepal

78. Consider the following statements: [2009]

1. Infant mortality rate takes into account the death of infants within a month after birth.

2. Infant mortality rate is the number of infant deaths in a particular year per 100 live births during that year.

Which of the above statements is/are correct?

(a) 1 only (b) 2 only

79. Consider the following statements: [2009]

1. Between Census 1951 and Census 2001, the density of the population of India has increased more than three times.

2. Between Census 1951 and Census 2001, the annual growth rate (exponential) of the population of India has doubled.

Which of the statements given above is/are correct?

(a) 1 only (b) 2 only

80. Which one of the following statements is an appropriate description of deflation? [2010]

(a) It is a sudden fall in the value of a currency against other currencies

(b) It is a persistent recession in both the financial and real sectors of economy

(d) It is a fall in the rate of inflation over a period of time

81. Which of the following is/are treated as artificial currency?

[2010]

(a) ADR (b)GDR

82. When the Reserve Bank of India announces an increase of the Cash Reserve Rate, what does it mean? [2010]

(a) The commercial banks will have less money to lend

(b) The Reserve Bank of India will have less money to lend

(d) The commercial banks will have more money to lend

83. With reference to India, consider the following statements: [2010]

1. The Wholesale Price Index (WP1) in India is available on a monthly basis only.

2. As compared to Consumer Price Index for Industrial Workers (CPIIW), the WP1 gives less weight to food articles.

Which of the statements given above is/are correct?

(a) 1 only (b) 2 only

84. With reference to’ Indian economy, consider the following statements: [2010]

1. The Gross Domestic Product (GDP) has increased by four times in the last 10 years.

2. The percentage share of Public Sector in GDP has declined in the last 10 years.

Which of the statements, given above is/ are correct?

(a) 1 only (b) 2 only

Answers:

43. (c) According to given data, infant mortality rate is both high and low.

44. (c) Human development of a country depends on its life expectancy of the population and standard of living of the population. In Asian countries Korea has the best performer in human development index. The infant mortality rate is low i.e. 6 and literacy of Korea is 98%.

45. (b) According to Global competitive Report of ‘World Economic Forum’ in 1999, Singapore occupies the first place, India was at 52^nd, Russia was at 59^th place.

46. (d) Per capita real income is nothing but NNP at factor cost. It means national income is sum total of all factor incomes.

47. (a) Revenue deficit = revenue receipts – Revenue expenditure; Budget deficit = Total receipts – total expenditure; Fiscal deficit = Revenue receipts + Non- debt creating capital receipts – Total expenditure (F.D. is nothing but government borrowings); Primary deficit = Fiscal deficit – Interest payments.

48. (b) Corporation tax and wealth tax are direct taxes.

49. (c) Base year for WPI is 1993-94 since April 2000. Earlier it was 1981-82.

50. (c) The option (c) is Net National Product at factor cost.

National income = NNP at Factor cost

51. (a)

52. (b) Minimum support price is the floor price at which the government offers to buy whatever quantum farmers wanted to sell to the government in the event of over production.)

53. (c)

Period

A. 1901-1921

B. 1921-1951

C. 1951-1981

D. 1981-2001

Phase

Stagnant growth phase

Steady growth phase

Rapid high growth

High growth with definite signs of slowdown.

54. (c)

55. (a)Capital account convertibility means free conversion of cross-border capital flows, implying that anybody can convert domestic currency into hard currency at the market rate and take hard currency out of the country for investing, opening bank account etc.

56. (d) Stamp duty is a form of tax that is levied on documents. It is levied by the union and collected and appropriated by the states. (Entry 91 in the union list; entry 63 in the state list of seventh schedule of constitution of India)

57. (d) As per the census 2001, West Bengal has the highest population density. West Bengal has the population density 904, Kerala has 819, Madhya Pradesh has 196 and uttar Pradesh has 689.

58. (c) Life expectancy in Canada has 79.7 years, Germany has 77.8 years, Japan has 80.9, Norway has 78.9 years. So, Japan is the highest in life expectancy.

59. (a) As per the census 2001, Chhatisgarh is the state which has highest female literacy. Chhatisgarh has 51.85, Orissa has 50.51%, Madhya Pradesh 50.29 and Rajasthan has 43.85%.

60. (b) Increase in the exemption limit of personal income to Rs. 1.50 lakh for widows

61. (d)

62. (d) The statement-2 is incorrect. Arunachal is the state where population is per square kilometer is lowest i.e., 13 but in Mizoram is 42 and Meghalaya is 103.

63. (b)

64. (b) The maximum tribal population are found in 5 states, i.e., Madhaya Pradesh, Maharastra, Orissa, Gujrat and Bihar.

65. (c) Family planning programme started in 1952 by Government of India and Kerala is the first state in India to achieve replacement level of fertility.

66. (d) Pondicherry is the Union Territory, where sex ratio is highest highest i.e., 1001.

Chandigarh has 777, Delhi has 861, Daman and Diu has sex ratio 710, Dadra and Nagar Haveli has 812.

67. (b) According to 2001, Maharastra has the maximum

population in India after Uttar Pradesh. The total population in Maharastra is 193,977,000.

68. (c) To bring down F.D. to 20% by 2008 and reveneu deficit to zero by 2008.

69. (a) Services-55.1%, Industry-26.4%, Agriculture-18.5%

70. (c) The population density of Arunachal Pradesh is 13, Himachal Pradesh is 109, Meghalaya is 103, and Sikkim is 76.

71. (c) As per India’s National Population Policy 2000, by 2045 our objective to achieve population stability.

72. (c)

73. (a) On the basis of 2001 census of India 9.8% of population Himachal Pradesh, 10.5% of population of Bihar, 15% of population of Orissa & 20.8 % of population of Uttarpradesh of total is rural population.

74. (d) Population of Sikkam is 82, 999 000. Population of Chandigarh is 901,000, Population of Punducherry is 974000 and Population of Mizoram is 889,000.

75. (d) Rice production was 96.69 Million tones in 2007-08.

76. (d)The programme was launched on 19.11.2007. It covers all senior citizens of age 65 and above in all below poverty level families. The pension will be Rs 400 per month, with Centre giving Rs 200, and the State matching it. The pension will be credited, wherever possible, into a post office or bank account of the beneficiary.

77. (a) Population density of India is 324 Nepal is 102, Pakistan is 146, Sri Lanka is 280 person per square kilometers.

78. (d) Infant mortality rate indicates the number of death of babies under one years of age per 1000 live birth under one year of age.

79. (d) Density 1951 – 117 per sq km, 2001 – 324 per sq km; Annual growth rate 1951-1.25%, 2001 – 1.93% Deflation is a decrease in the general price level of goods and services.

80. (c) Deflation occurs when the annual inflation rate falls below 0% (a negative inflation rate). This should not be confused with disinflation, a slow-down in the inflation rate (i.e. when inflation declines to lower levels).

81. (c) SDR means special drawing rights. It is also known as paper gold. It is created by IMF.

82. (a) CRR is that ratio of the total deposits of a bank which it has to keep with the central bank of country.

83. (b) Weightage to food articles in WPI is 22% and in CPI (IW) 57%. The WPI is available on weekly basis with base year 1993-94.

84. (b)