Indian Economy Questions Practice Question and Answer
8 Q: Which of the following statements is correct?
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6336e8b55c208a6bf71b7807- 1Most workers will work for less than their reservation wagefalse
- 2The reservation wage is the maximum amount of any firm will pay for a workerfalse
- 3Economic rent is the difference between the market wage and the reservation wagetrue
- 4Economic rent is the amount one must pay to enter a desirable labour marketfalse
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Answer : 3. "Economic rent is the difference between the market wage and the reservation wage"
Q: As per estimates of the Planning Commission of India the target growth rate of 12th Five-Year Plan is set to
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601bc4847c5c886562ae88c5- 17 to 8%false
- 28.0% to 8.5%true
- 39% to 9.5%false
- 410 to 10.5%false
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Answer : 2. "8.0% to 8.5%"
Explanation :
The Approach Paper has proposed a target of 8 per cent growth for the Twelfth Plan. Health, education and skill development, environment and natural resources, and infrastructure development were the focus areas of the Twelfth Plan.
Q: Externality theory is the basic theory of the following branch of Economics–
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60123f07178b94051cee4942- 1International Economicsfalse
- 2Environomicstrue
- 3Fiscal Economicsfalse
- 4Macro Economicsfalse
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Answer : 2. "Environomics"
Q: Which method is used in calculating national income in India?
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5f029be8ce72ee4f9c9c132b- 1Origin calculation methodfalse
- 2Income Lawfalse
- 3both of the abovetrue
- 4None of thesefalse
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Answer : 3. "both of the above"
Q: Who among the following formulates the monetary policy in India?
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60939266b8018e6486aedf6b- 1Finance Commission of Indiafalse
- 2Reserve Bank of Indiatrue
- 3NITI Aayogfalse
- 4The Ministry of Statistics and Programme Implementationfalse
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Answer : 2. "Reserve Bank of India "
Q: In Economics, buying an asset in one market and simultaneously selling an identical asset in another market at a higher price is termed as ____________.
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5f572bd6f13b91397f39d344- 1Depreciationfalse
- 2Mortgagefalse
- 3Devaluationfalse
- 4Arbitragetrue
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Answer : 4. "Arbitrage"
Q: Diamonds are priced higher than water because–
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60123fc3178b94051cee4ac7- 1consumers do not buy them at lower prices.false
- 2they are sold by selected firms with monopolistic powers.true
- 3their total utility to buyers is higher than that of water.false
- 4their marginal utility to buyers is higher than that of waterfalse
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Answer : 2. "they are sold by selected firms with monopolistic powers."
Q: In which year did the Government of India set up the first mutual fund by an Act of Parliament?
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64c399c196ae1f484204f7eb- 11979false
- 21982false
- 31963true
- 41971false
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Answer : 3. "1963"
Explanation :
1. The mutual fund industry in India began in 1963 with the formation of UTI by an Act of Parliament in 1963 and functioned under the regulatory and administrative control of the Reserve Bank of India (RBI).
2. Unit Trust of India (UTI) was established by an Act of Parliament in 1963.
3. UTI is the first mutual fund company established in India.