81. From which of the following, is the GDP of a country not derived from?
1. Agricultural sector
2. Industrial sector
3. International sector
4. Service sector
Option “C” is correct Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period.
82. Which one of the following countries is not a member of the “BRICS” group?
1. Brazil
2. Russia
3. China
4. Indonesia
Option “D” is correct BRICS is the acronym for an association of five major emerging national economies: Brazil, Russia, India, China and South Africa. Indonesia is not a member of BRICS group.
83. Which one of the following is not a scheme or project ?
Option “C” is correct Department of Indian Systems of Medicine and Homoeopathy (ISM&H) was established in 1995 and renamed as Department of Ayurveda, Yoga & Naturopathy, Siddha, Unani and Homoeopathy (AYUSH) in November, 2003. It is not a scheme/project of present Government.
84. The major objective of monetary policy is to?
1. Increase government’s tax revenue
2. Revamp the Public Distribution System
3. Promote economic growth with price stability
4. Weed out corruption in the economy
Option “C” is correct Monetary policy is designed as to maintain the price stability in the economy. Thus, its main objective is to promote economic growth with Price stability.Monetary policy is the macroeconomic policy laid down by central bank.
85. Trickle down theory ignores the impact of economic growth on –
1. Investment
2. Savings
3. Income distribution
4. Consumption
Option “C” is correct Trickle-down economics, or “trickle-down theory,” states that tax breaks and benefits for corporations and the wealthy will trickle down to everyone else. It argues for income and capital gains tax breaks or other financial benefits to large businesses, investors and entrepreneurs to stimulate economic growth.It ignores the impact of economic growth on income distribution.
86. A manufacturer faces price elasticity of demand of a -2 for its product. If it lowers its price by 5%, the increase in quantity sold will be –
1. 3%
2. 10%
3. 2.50%
4. 7%
Option “B” is correct Elasticity =( % Change in Quantity) /( % Change in Price).
87. If cash reserve ratio decreases, credit creation will _______.
1. Increase
2. Decrease
3. Does not change
4. First decreases than increases
Option “A” is correct When the Federal Reserve lowers the reserve ratio, it lowers the amount of cash banks are required to hold in reserves and allows them to make more loans to consumers and businesses. This increases the money supply and expands the economy.
88. If at a price, market supply is greater than market demand, we say that there is ________ in the market at that price.
Option “C” is correct In economics, an excess supply or economic surplus is a situation in which the quantity of a good or service supplied is more than the quantity demanded.
89. In India the reform policies were first introduced in which year?
1. 1951
2. 1971
3. 1991
4. 2001
Option “C” is correct The Indian Government has introduced Economic Reforms in India in 1991 for the first time.
90. The demand for a inferior good increases with ________ in the consumer’s income.
1. Increase
2. Decrease
3. Constant
4. Double
Option “B” is correct Demand for inferior goods increases when income falls or the economy contracts in other words demand of inferior good increases with decrease in the consumer’s income.
