Top 550+ Solved Indian Economy MCQ Questions Answer
Q. When the productive capacity of the economic system of a State is inadequate to create sufficient number of jobs, it is called [CDS 2012]
a. seasonal unemployment
b. structural unemployment
c. disguised unemployment
d. cyclical unemployment
Q. Under Indira Gandhi National Old Age Pension Scheme (lGNOAPS), the benefits are available to the people having minimum age of ____ [Bank of India PO 2010]
a. 50 years
b. 55 years
c. 65 years
d. 60 years
Q. Poverty in less developed countries is largely due to [CPO SI 2010]
a. voluntary idleness
b. income inequality
c. lack of cultural activities
d. lack of intelligence of the people
Q. Among the causes of inflation can be listed: 1. slow growth in agricultural output 2. increasing non-development expenditure of Government 3. rapid population growth 4. rapid growth in costly imports
a. 1 and 2
b. 2 and 3
c. 1, 2, 3 and 4
d. 1 and 4 only
Q. Among the remedies of inflation we cannot include:
a. better capacity utilisation
b. lowering bank rate
c. reducing budgetary deficit
d. an efficient public distribution system
Q. A very rapid growth in prices in which money loses its value to the point where even barter may be preferable is known as:
a. inflation
b. hyper-inflation
c. deflation
d. disinflation
Q. Inflationary Gap is a situation characterized by:
a. excess of Aggregate Demand over Aggregate Supply at the full employment level
b. gap between Galloping Inflation and Runaway Inflation
c. Inflation coupled with recession
d. Inflation that usually prevails in a developing country
Q. Which of the following is wrongly matched?
a. Depression: Insufficient demand causing large scale unemployment of men and machinery over a long period of time
b. Recession: Reduction in demand and production/ investment over a short period of time
c. Stagflation: slow pace of economic activity due to falling prices
d. Boom: Rapid and all-round spurt in economic activity
Q. The cause of inflation is:
a. increase in money supply
b. fall in production
c. increase in money supply and fall in production
d. decrease in money supply and fall in production
Q. Who among the following is most benefitted from inflation? [IAS 1989]
a. Government pensioners
b. Creditors
c. Savings Bank Account holders
d. Debtors
Q. Which of the following groups suffer the most from inflation? [CPO SI 2003]
a. Debtors
b. Creditors
c. Business class
d. Holders of real assets
Q. Inflation is caused as a result of:
a. increase in money supply
b. fall in production
c. increase in money supply without a corresponding increase in production
d. decrease in money supply without a corresponding decrease in production
Q. Which of the following accounts for Cost-Push Inflation?
a. Increase in money supply
b. Increase in indirect taxation
c. Increase in population
d. Increase in non-plan expenditure