INDIAN ECONOMY TEST - 5-Indian Economy-Quiz

Civil Services Exams-INDIAN ECONOMY TEST - 5

Q 1.
Paradox of thrift illustrates that:

a.)
When people get less income, they save more.
b.)
When people try to save more, they actually end up saving less.
c.)
Savings may not be always helpful for the economy.
d.)
Large amount of savings actually discourages investment.

Q 2.
Wage goods are:

a.)
Goods produced by wage earners
b.)
Goods produced by employment guarantee labourers
c.)
Goods produced for wage earners
d.)
Goods produced by the government and provided freely to the low-income people

Q 3.
In a seller’s market:

a.)
There is high demand and low supply
b.)
There is low demand and high supply
c.)
Sellers have monopoly control over price
d.)
Buyers have complete control over large number of sellers

Q 4.
Aggregate demand in an economy can be increased by:

1. Increasing government expenditure

2. Reducing taxes

3. Enhancing savings

Which of these are/is correct?

a.)
1, 2, and 3
b.)
1 and 2
c.)
2 and 3
d.)
3 only

Q 5.
If there is a preference for the production of consumption goods rather than the production of capital goods it implies:

a.)
There is a preference for future consumption
b.)
There is a preference for current consumption
c.)
There is the possibility of high level of imports
d.)
There is the chance for boom in the near future

Q 6.
Consider the following statements about the difference between the secondary sector and the tertiary sector in an economy:

1. There is high skill/knowledge requirement in the tertiary sector whereas even semi-skilled people can be employed in the secondary sector.

2. There is high tradability for the secondary sector goods compared to tertiary sector items.

Of these:

a.)
1 and 2 correct
b.)
Only 1 is correct
c.)
Only 2 is correct
d.)
Neither 1 nor 2 is correct

Q 7.
Consider the following industries:

1. Automobile equipments

2. Electronics machineries

3. Coal Mining Industry

Which of these are/is capital goods industries?

a.)
1, 2, and 3
b.)
1 and 2
c.)
2 and 3
d.)
3 only

Q 8.
Which of the following directly influences the production of capital goods?

a.)
Demand for consumer goods
b.)
Saving level in the economy
c.)
Interest rate
d.)
Money supply

Q 9.
Merit goods are provided to:

a.)
All sections of the society
b.)
People from other countries
c.)
Provided to people who make a compulsory payment
d.)
Provided to certain sections of the society

Q 10.
Which of the following are features of public goods? Choose the correct answer using the codes given below.

1. Rivalry in consumption

2. Excludability in consumption

Codes:

a.)
1 and 2 correct
b.)
Only 1 is correct
c.)
Only 2 is correct
d.)
Neither 1 nor 2 is correct

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