INDIAN ECONOMY TEST - 3-Indian Economy-Quiz

Civil Services Exams-INDIAN ECONOMY TEST - 3

Q 11.
In which of the following fertilizers, neem coating has been made mandatory?

a.)
Phosphorus
b.)
Nitrogen
c.)
Entire Phosphorus and Potash fertilizers
d.)
Urea

Q 12.
When the government is issuing new bonds in the market to finance its fiscal deficit, the cost of the government’s borrowing from the open market can be gauged from:

a.)
The cut-off price for G-Secs
b.)
The cut-off yield for G-Secs
c.)
The crowding out effect
d.)
The overall interest payments

Q 13.
Consider the following matches of deficits in the budget and their meaning and identify the wrong match among them.

a.)
Fiscal Deficit – Stands for borrowings by the government
b.)
Revenue Deficit – Higher current expenditure
c.)
Budget Deficit – Printing of Currency
d.)
Primary Deficit – Borrowings from the RBI

Q 14.
In terms of public expenditure, crowding-out effect implies:

a.)
Excess government subsidies distorting resource allocation
b.)
Excess private expenditure producing inflation
c.)
Market exploitation by the private sector due to reckless government expenditure.
d.)
Excess government expenditure, raising interest rate and depressing the availability of funds.

Q 15.
When the economy grows at a higher rate, its benefit to the government in terms of tax revenue is reflected in the concept of:

a.)
Tax buoyancy
b.)
Tax elasticity
c.)
Taxable capacity
d.)
Tax rigidity

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