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Economic SurveyEconomic Survey 2017-18

Economic Survey 2017-18 | UPSC Prelims 2019

Q.1) Which of the following is incorrect about Indian Economy?

a) States that export more internationally, and trade more with other states, tend to be richer.

b) Indian society exhibits strong son “Meta” Preference.

c) To re-ignite growth, raising savings is more important than raising investment.

d) There is substantial avoidable litigation in the tax arena which government action could reduce.

Q.2) Which of the following groups would not prefer low interest rates in the economy?

a) Domestically oriented Firms

b) Households

c) Equity Investors

d) Infrastructure Companies

Q.3) Which of the following is/are correct regarding savings and investment (as a percentage of GDP) trends in India over the past 10 years?

1.The ratio of gross fixed capital formation to GDP has declined.

2.The ratio of domestic saving to GDP has declined.

3.As compared to savings, investment has fallen to a lower level.

a) 1 & 2

b) 2 & 3

c) 1 & 3

d) All of the above

Q.4) Which of the following is/are correct regarding Learning Poverty Count (LPC) and Learning Poverty Gap (LPG)?

1.LPG simply measures the number of children who do not meet the basic learning benchmark.

2.LPC takes into account how far each student is from the basic learning benchmark.

  1. There are no significant differences in the LPC for boys and girls.

a) 1 & 2

b) 3 only

c) 1, 2 & 3

d) None of the above

Q.5) Which of the following parameter can be used to assess strong meta son preference in Indian Society?

a)Sex ratio at Birth

b)Child Sex Ratio

c) Sex ratio of the last child

d) Sex Ratio (General)

Q.6) India’s average growth of GDP during 2014-17 is higher than which of the following ?

1.China

2.Emerging market & developing economies

3.Advanced Economies

a) 1 & 2

b) 2 & 3

c) 3 only

d) All of the above

Q.7) Which of the following key economic indicators have shown positive growth over the past few years?

a) GDP at constant market prices

b) GVA at constant basic prices

c) Per Capita Net National Income (at current prices)

d) All of the above

Q.8) Which of the following facts is/are incorrect in context of different sectors of Indian Economy?

1.Agriculture, forestry & fishing sector has never shown negative GVA/GDP growth rate in the past five years.

2.Over the past five years, industrial sector has shown higher GVA/GDP growth rate than services sector.

a) 1 only

b) 2 only

c) Both of the above

d) None of the above

Q.9) Which of the following is/are true in context of India’s Balance of Payment scenario?

a) Current Account Deficit has declined over the past few years.

b) Over the past 10 years, imports have always remained higher than exports.

c) Trade deficit sunk to its lowest levels in 2012-13 after which it has consistently risen.

d) All of the above are true

Q.10) The differences in the nominal growth between GVA and GDP have increased in the last few years. This is indicative of :

a) increase in the share of net indirect taxes in GDP

b) decrease in the share of net indirect taxes in GDP

c) increase in the share of net direct taxes in GDP

d) decrease in the share of net direct taxes in GDP

Q.11) Which of the following statements is/are true in context of India’s GDP growth vis-à-vis consumption angle?

1.Consumption expenditure has been the major driver of GDP growth in the past few years.

2.The share of investment, and in particular that of fixed investment in the GDP continuously increased over the past few years.

a) 1 only

b) 2 only

c) 1 & 2

d) None

Q.12) In the context of India’s economic scenario, consider the following statements and identify the correct code:

1.The share of non-durable goods (bulk of which is food products) in private final consumption expenditure drastically increased between 2011-12 and 2015-16.

2.As per Engel’s law, as household’s income increases, the percentage of income spent on food drastically increases.

a) 1 only

b) 2 only

c) Both

d) None

Q.13) Which among the following sectors accounts for bulk of the savings in the context of Indian economy?

a) Household Sector

b) Private Corporate Sector

c) Public Sector

d) All contribute almost equally

Q.14) In the RBI’s newly adopted flexible inflation-targeting framework, which among the following is being used as the headline inflation measure?

a) WPI

b) CPI

c) PPI

d) Deflator

Q.15) The appreciation of the rupee (in real effective exchange rate (REER) terms) indicates that India’s exports may have:

a) become slightly more competitive

b) become slightly less competitive

c) reached an all time high

d) declined to their lowest level

Q.16) Which of the following statements is/are correct?

1.Housing Price Index is compiled by Reserve Bank of India (RBI).

2.RESIDEX Index is released by Ministry of Housing and Urban Affairs.

a) 1 only

b) 2 only

c) Both

d) None

Q.17) Which of the following statements is/are correct?

  1. Tax buoyancy explains this relationship between the changes in government’s tax revenue growth and the changes in GDP.
  2. Tax Elasticity refers to changes in tax revenue in response to changes in tax rate.

a) 1 only

b) 2 only

c) Both

d) None

Q.18) If the actual fiscal deficit is more than what was expected it is called as:

a) deficit financing

b) fiscal drag

c) fiscal stimulus

d) fiscal slippage

Q.19) In the Central government’s receipts, the difference between the gross tax revenue and net tax revenue is mainly:

a) tax foregone due to subsidies

b) tax devolution to the States

c) tax not collected due to inefficiencies of tax department

d) tax paid by the government on its incomes

Q.20) In Banking Parlance, non-food credit refers to:

a) bank lending less advances to agricultural sector

b) bank lending less advances to the Food Corporation of India to buy food

c) bank lending less advances to FMCG industry

d) None of the above

Q.21) Which of the following statements is/are correct about stressed assets in banking parlance?

1.Stressed Assets is a wider term than NPAs.

2.Apart from NPAs, stressed assets include restructured loans and written off assets.

a) 1 only

b) 2 only

c) Both

d) None

Q.22) The potential and performance of the insurance sector should be assessed on the basis of two parameters, viz., Insurance Penetration and Insurance Density. Which of the following is/are correct about the two parameters?

1.Insurance density is defined as the ratio of premium underwritten in a given year to the gross domestic product (GDP).

2.Insurance  penetration is defined as the ratio of premium underwritten in a given year to the total population.

a) 1 only

b) 2 only

c) Both

d) None

Q.23) Which of the following are to be excluded from CPI inflation to arrive at core inflation?

1.Food component

2.Fuel component

3.Housing component

a) 1 & 2

b) 2 & 3

c) 1 & 3

d) All of the above

Q.24) According to the UN World Cities Report 2016, by 2030, India is expected to be home to _______ mega-cities with population above 10 million.

a) 3

b) 5

c) 7

d) 10

Q.25) India is witnessing declining share of agriculture in Gross Value Added (GVA). Which of the following reason can be attributed towards this scenario?

a) The export of agriculture products from foreign countries have flooded India’s domestic market.

b) The process of development inter alia results in declining share of agriculture in Gross Value Added (GVA).

c) Declining soil fertility has reduced the agricultural production in the country.

d) Farmers have lost interest in agriculture.

Q.26) The project ‘RAPID- revenue, accountability, probity, information and digitalization’ introduced by the Government relates to:

a) Banking Reforms

b) Tax reforms

c) Corporate Governance in Listed Entities

d) Power Sector Reforms

Q.27) Which of the following is/are correct about Baltic Dry Index?

1.It is a freight index.

2.It is a good proxy for the robustness of trade and shipping services.

3.It is issued monthly by the London-based Baltic Exchange.

a) 1 & 2

b) 2 & 3

c) 1 & 3

d) All of the above

 

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