Economics PYQs

2024

Q1: Which one among the following does not match properly the Noble Prize category with its 2024 laureate?

  • (A) Peace - Narges Mohammadi
  • (B) Literature - Han Kang
  • (C) Economics - Daron Acemoglu, Simon Johnson & James Robinson
  • (D) Physics - John Hopfield & Geoffrey Hinton

Q2: Match the initiative with its year of launch:

Scheme Year
a) Ayushman Bharat 1) 2006
b) National Skill Development Mission 2) 2018
c) MGNREGS 3) 2015
d) Pradhan Mantri Jan Dhan Yojana 4) 2014

Options: (A) a-2, b-3, c-1, d-4; (B) a-4, b-1, c-2, d-3; (C) a-3, b-2, c-4, d-1; (D) a-1, b-4, c-3, d-2

Q3: Consider the following statements regarding the structural transformation of the Indian economy:

  1. India's economic growth since the 1990s has been primarily led by the services sector, with a relatively smaller contribution from manufacturing.
  2. The "Make in India" initiative aims to increase the manufacturing sector's share in GDP to 25% and create 100 million additional jobs by 2022.
  3. Despite rapid economic growth, the share of the agricultural sector in India's GDP has consistently declined, while its share in employment remains significant.
  4. The phenomenon of "premature deindustrialization" in India refers to the services sector growing rapidly without a strong manufacturing base.

Which of the above statements are correct? (A) 1, 2 and 3 only; (B) 1, 3 and 4 only; (C) 2, 3 and 4 only; (D) All of the above

Q4:Consider the contributions and challenges of the Services Sector in India:

  1. The Services sector is the largest contributor to India's GDP and has been the primary driver of economic growth in recent decades.
  2. Despite its large share in GDP, the services sector's share in total employment is significantly lower than that of agriculture.
  3. The growth in services has often been termed "jobless growth" in the formal sector, leading to a rise in informal service sector's employment.
  4. Digitalization and the rise of the IT/ITES sector have further solidified India's position as a global service hub, but the benefits are not uniformly distributed across the workforce.

Which of the above statements are correct? (A) 1, 2 and 3 only; (B) 1, 3 and 4 only; (C) 2, 3 and 4 only; (D) All of the above

Q5: Consider the following statements concerning India's Multidimensional Poverty Index (MPI):

  1. India's MPI uses health, education and standard of living as dimensions, aligning with the global MPI methodology.
  2. The MPI is published by NITI Aayog using data primarily from the National Family Health Survey (NFHS).
  3. The Global MPI is released annually by the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI).
  4. India's MPI includes indicators such as nutrition, school attendance and access to clean cooking fuel, among others.

Which of the above statements are correct? (A) 1 and 2 only; (B) 1, 2 and 4 only; (C) 2 and 3 only; (D) All of the above

Q6: The basic foundation of global economic governance in the post second World War was laid by various institutional frameworks. Which of the following combinations is correct?

  • a) IMF, World Bank, GATT
  • b) IMF, World Bank, Asian Development Bank
  • c) World Bank, GATT, BRICS
  • d) Asian Development Bank, IMF, IBRD

Options: (A) a and b; (B) a, b and c; (C) a, c and d; (D) a, b, c and d

Q7: With respect to inflation in the Indian context, consider the following statements:

  1. Retail inflation, measured by the Consumer Price Index (CPI), is the primary metric used by the Reserve Bank of India (RBI) for monetary policy formulation.
  2. Core inflation includes volatile components like food and fuel prices, providing a more stable measure of underlying inflationary pressures.
  3. Supply-side factors, such as monsoons affecting agricultural output and global crude oil prices, play a significant role in India's inflation dynamics.
  4. Headline inflation refers to the total inflation in an economy, including volatile components such as food and energy prices.

Which of the above statements are correct? (A) 1, 2 and 3 only; (B) 1, 3 and 4 only; (C) 2, 3 and 4 only; (D) All of the above

Q8: Which of the following best defines the concept of Pareto Optimality?

  • (A) A situation where everyone is equally well off
  • (B) A situation where no one can be made better off without making someone else worse off
  • (C) A situation where total wealth is maximized
  • (D) A situation where the government redistributes resources equally

2023

Q1: Which of the following statements are correct in respect of Union Budget 2024-25?

(1) Total expenditure projected at Rs. 48.21 Lakh Crore
(2) Receipts excluding Borrowings Rs. 32.07 Lakh Crore
(3) Fiscal Deficit projected at 6.8% of GDP
(4) Net Tax Receipts Rs. 34.83 Lakh Crore

(A) 1 and 2
(B) 2 and 3
(C) 1 and 4
(D) 3 and 4

Q2: Which of the following policies provide a Tax refund on all or part of a poor family's Social Security Tax?

(A) Temporary Assistance to needy families
(B) Earned Income Tax Credit
(C) Food Stamps
(D) Supplemental Security Income

Q3: "Land degradation in India happens at a very large scale", because

(A) Inadequate soil conservation measures
(B) Overgrazing
(C) Both (A) and (B)
(D) None of the above

Q4: "There is a huge loss of valuable nutrients and fertility in India". What are the reasons for this?

(A) Soil erosion
(B) Land degradation
(C) Water logging
(D) Air Pollution

Q5: Which of the following organization collects every data on poverty in India?

(A) MGNERGA
(B) NSSO
(C) SJSRY
(D) None of these

Q6: Which of the following helps to measure the Poverty Determination?

(A) Poverty Gap Index
(B) Head Count Ratio
(C) Sen Index
(D) All of these

Q7: In India, which of the following determines the wage policy?

(A) Productivity
(B) Cost of Living
(C) Standard of Living
(D) None of these

Q8: Which of the following three states in India are considered the poorest?

(A) Bihar, Madhya Pradesh, Haryana
(B) Jharkhand, Bihar, Uttar Pradesh
(C) Andhra Pradesh, Jharkhand, Bihar
(D) Madhya Pradesh, Haryana, Jharkhand

Q9: Consider the following statements about Atal Bhujal Yojana

(1) It is conceived to arrest the rampant overuse of groundwater in India
(2) It is supported by the World Bank
(3) It is a sub-scheme under National Groundwater Management Improvement Scheme (NGMIS)

Select the correct statements

(A) 2 and 3
(B) 1 and 3
(C) 1 and 2
(D) All of the above

Q10: Which year is known as the year of demographic divide?

(A) 1921
(B) 1920
(C) 1919
(D) 1918

Q11: Consider the following statements:

(1) Meteorological Drought is based on the impact of rainfall deficits on the water supply.
(2) Socioeconomic Drought refers to the impact of drought conditions on supply and demand of economic goods.

Which of the statements given above is/are correct?

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

2022

Q1: Which of the following statements are correct in respect of withdrawal of Rs. 2000 Currency Notes from circulation?

  • (1) This move is a part of RBI's Compound Note Policy
  • (2) It's aim is to provide the Public with high quality Currency Notes
  • (3) Rs. 2000 Currency Notes were introduced in the year 2015
  • (4) Printing of Rs. 2000 Currency Notes were stopped in the year 2018-19

Options: (A) 2 and 4,
(B) 1 and 3,
(C) 2, 3 and 4,
(D) 1 and 4

Q2: Which of the following statements are not correct? According to the Second Edition of National Multidimensional Poverty Index-2023 released by NITI Aayog -

  • (1) 13.5 Crore people escaped from multidimensional poverty
  • (2) In rural areas there is rapid decline in poverty from 32.59% to 19.28%
  • (3) Bihar registered the largest decline in the number of poor individuals.
  • (4) This Report covered a comprehensive analysis of poverty across 1075 Administrative Districts

Options: (A) 2 and 4,
(B) 1 and 2,
(C) 3 and 4,
(D) 1 and 3

Q3: Which of the following statements are correct in respect of 'Agreement on use of Local Currencies for cross-border transactions'?

  • (1) India and UAE have signed a memorandum in this Agreement.
  • (2) This agreement enables a framework for trade settlements in their respective national currencies.
  • (3) This Agreement was signed by the Prime Ministers of India and UAE.
  • (4) Peekay Intermark Ltd. and Reserve Bank of India were the first users of this system.

Options: (A) 2 and 4,
(B) 3 and 4,
(C) 1 and 2,
(D) 1 and 3

Q4: With reference to inflation targeting by the Reserve Bank of India, consider the following statements:

  • 1. In May 2016, the RBI Act, 1934 was amended to provide a statutory basis for the implementation of the flexible inflation targeting framework.
  • 2. Under Section 45ZA, the Central Government, in consultation with the RBI, determines the inflation target in terms of the Consumer Price Index (CPI), once in five years.
  • 3. On March 31, 2021, the Central Government retained the inflation target of 6 percent with the tolerance band of ±2 percent for the next 5-year period April 1, 2021 to March 31, 2026.

Options: (A) 1 and 2 only,
(B) 1 and 3 only,
(C) 2 and 3 only,
(D) 1, 2 and 3

Q5: Consider the following statements:

  • 1. Poverty line estimation in India has been based on the consumption expenditure and not on the income levels.
  • 2. It is difficult to assess incomes of self-employed people, daily wage laborers etc., and there may be large fluctuations in income due to seasonal factors.

Options: (A) Both 1 and 2 are correct and 1 is the correct explanation of 2, (B) Both 1 and 2 are correct, and 2 is the correct explanation of 1, (C) Both the statements are correct but none is an explanation of the other, (D) Both the statements are correct but unrelated

Q6: Which of the following terms are the components of forex reserves?

  1. Foreign Currency Assets
  2. Gold
  3. Special Drawing Rights
  4. The Reserve in the International Monetary Fund

Options: (A) 1, 2 and 3,
(B) 1, 2 and 4,
(C) 2, 3 and 4,
(D) 1, 2, 3 and 4

Q7: With reference to GST, which of the following statements are true?

  • 1. GST is based on a system of concurrency of indirect taxes, where every transaction attracts central as well as state GST.
  • 2. GST replaced a production-based taxation system by a consumption-based tax system.
  • 3. It brings destination principle for cross-border trading for which the poorer and consuming states are benefiting at the expense of more affluent and industrialized ones.

Options: (A) Only 1 and 2 are true,
(B) Only 1 and 3 are true,
(C) Only 2 and 3 are true,
(D) All the above are true

Q8: Which of the following statements is incorrect about Production Linked Incentive (PLI) scheme?

  • (A) It is one of the several schemes as part of the 'Make in India' initiative.
  • (B) Its aim is to incentivise manufacturers and promote domestic production.
  • (C) This initiative contributes to enhancing self-reliance in the country.
  • (D) This scheme is applicable only to pharmaceuticals, textiles and food processing sectors.

Q9: In discharging its role as a facilitator for rural prosperity, NABARD is entrusted with responsibilities of:

  • (A) Providing refinance to lending institutions in rural areas.
  • (B) Bringing about or promoting development of commercial banks.
  • (C) Evaluating, monitoring and inspecting all banks in rural areas.
  • (D) Monitoring all developmental projects in rural areas.

2021

Q1: The SEBI has set up an Advisory Committee on Hybrid Securities. In respect of Hybrid Securities which of the following statement/s is / are correct?

(i) Hybrid Securities are securities that have a combination of Debt and Equity characters.
(ii) Common Stock was the first type of a hybrid security.
(iii) The holders of common stock receive dividends before the holders of preferred stocks.
(iv) The Hybrid Securities are a way for Banks / companies to borrow money from investors.

(A) (ii) and (iv)
(B) (i) and (iii)
(C) (i) and (iv)
(D) (ii) and (iii)

Q2: The Reserve Bank of India released it's vision on 'Architecture of Digital Finance' in a document for Payment Systems on July 17, 2022. In respect of this, which of the following statements are not correct?

(i) This is called Payment Vision 2025 document.
(ii) This document includes Bigtechs and Finetechs in payments.
(iii) It includes introducing Bitcoin currency.
(iv) It delinks Credit Cards with the Unified Payments Interface.

(A) (i) and (ii)
(B) (iii) and (iv)
(C) (ii) and (iii)
(D) (ii) and (iv)

Q3: The Nehru-Mahalanobis model was concerned with the:
(A) Planned growth of the Indian Economy
(B) The development of Indian Culture
(C) The improvement of Indian Education
(D) The development of India's Foreign Policy

Q4: According to Weber, the most important factor in locating a factory is:
(A) Raw materials
(B) Transportation cost
(C) Agglomeration
(D) Labour

Q5: The base year for Wholesale Price Index has shifted to _______ against the earlier base year of 2004-05.
(A) 2017-18
(B) 2016-17
(C) 2011-12
(D) 2013-14

Q6: Which of the following items do not come under GST in India?
(A) Agricultural produce
(B) Petroleum products
(C) Gems and jewellery
(D) Handicrafts

Q7: Out of the four concepts of money supply used in India, M1, M2, M3 and M4 the Post Office savings are included in:
(A) M1 only
(B) M3 and M4 only
(C) M4
(D) M2 and M4 only

Q8: Which Indian Plan accepted the strategy of inclusive growth for the first time?
(A) Eleventh plan
(B) Twelfth plan
(C) Tenth plan
(D) None of these

2020

Q1: For each country, Global Hunger Index Values are determined by which of the following indicators?

(1) Under nourishment
(2) Child Mortality
(3) Child Stunting
(4) Child Wasting

The correct answer is:

(A) (1), (2) and (4)
(B) (2), (3) and (4)
(C) (3) and (4)
(D) (1), (2), (3) and (4)

Q2: The reserve held by commercial banks over and above the statutory minimum with the RBI are called:
(A) Cash Reserve
(B) Deposit Reserve
(C) Monetary Reserve
(D) Excess Reserve

Q3: Which of the following promoted the concept of Self Help Groups (SHGs) for financing the poor?
(A) NITI Aayog
(B) RBI
(C) NABARD
(D) Union Ministry of Labour

Q4: Which of the following is not a financial inclusion scheme?
(A) Pradhan Mantri Jandhan Yojana
(B) Suraksha Bandhan Scheme
(C) Atal Pension Yojana
(D) HRIDAY

Q5: Sishu, Kishore and Tarun are the schemes of:
(A) Industrial Development Bank of India
(B) Micro Units Development and Reference Agency Ltd.
(C) Small Industries Development Bank of India
(D) Regional Rural Banks

Q6: Which of the following indicators is not used to calculate Human Development Index?
(A) Education
(B) Per Capita Income
(C) Life Expectancy
(D) Social Inequality

Q7: Which of the following Committees recommended a poverty line based on nutritional requirements exclusively?
(A) Lakdawala Committee
(B) Rangarajan Committee
(C) Alagh Committee
(D) Tendulkar Committee

Q8: The first sustainable development goal aims to eradicate extreme poverty. How does the U. N. currently measure extreme poverty?
(A) People who are unemployed and unable to access welfare benefits from the state
(B) People who live on less than $ 5 a day.
(C) People who claim to be living in poverty
(D) People who live on less than $ 1.25 a day

Q9: Which is the highest allocation Ministry in Budget 2021-22?
(A) Ministry of Defence
(B) Ministry of Education
(C) Ministry of Railway
(D) Ministry of Health and Family Welfare

Q10: Central Government has unveiled a new series of Consumer Price Index for Industrial Workers (CPI-IW) with as the base year.
(A) 2011
(B) 2016
(C) 2017
(D) 2018

Q11: The contribution of the primary sector to GDP of India is:
(A) Increasing over the years
(B) Remaining the same over the years
(C) Decreasing over the years
(D) At times increasing and at times decreasing over the years

Q12: Robinhood effect is related to which of the following?
(A) Income and consumption
(B) Income generation
(C) Income redistribution
(D) Income taxation

Q13: Out of the four concepts of money, supply used in India, M1, M2, M3 and M4 the Post Office Savings are included in:
(A) M1 only
(B) M3 and M4 only
(C) M4 only
(D) M2 and M4 only

Q14: The Insurance Regulatory and Development Authority (IRDA) is which type of body?
(A) Constitutional Body
(B) Statutory Body
(C) Advisory Body
(D) Non-governmental Body

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