Tnpsc group 2/2a 2021 model exam – Indian Economy

TNPSC GROUP 2 MODEL QUESTION 1

INDIAN ECONOMY

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1. Which among the following are the demerits of Socialism ?

1. Red Tapism

2. Limited Freedom Of choice

3. End of Trade cycles

Answer the correct choice

A. 1 and 2 only

B. 1 and 3 only

C. 2 and 3 only

D. 1,2 and 3

 

2. Mixed Economy has the following Merits . Which among the following is correct about that ?

1. Rapid Economic Growth

2. Fear Of Nationalism

3. Widening Inequality

Answer the correct choice

A. 1 only

B. 2 only

C. 2 and 3 only

D.1 and 3 only

 

3. The GDP includes ?

1. The Final Value of goods and services produced within the country .

2. The market value of final goods and services produced within the country .

Answer the correct choice .

A. 1 only

B. 2 only

C. Both 1 and 2

D. None

 

4. The Value of Gross National income doesnot include ?

A. Net income from abroad

B. Goods and services produced by the government

C. Net export of Goods and services

D. Windfall gains

5. Net National product is obtained by deducting depreciation from GNP . Here the depreciation is also known as ?

A. Capital Consumption Allowance

B. Capital Investment allowance

C. Intermediate consumption allowance

D. Intermediate investment allowance

6. Which among the following correctly explains about Disposable Income ?

A. Disposable income denotes addition of Consumption and Paying Interest .

B. Disposable income denotes subtraction of Direct tax from personal income

C. It denotes subtraction of indirect tax from personal income.

D. None of the above are correct

 

7. Black Money in the economy causes ?

1. Inflation

2. Price rise of goods

3. Depression

Answer the correct choice ?

A. 1 and 2 only

B. 2 and 3 only

C. 1 and 3 only

D. 1,2 and 3 only

 

8. Non Performing Assets in banking sector denotes which among the following ?

A. Asset kept in the bank sector which cannot be sold out

B. Asset of reserve Bank of India kept by government of India .

C. loan or advance for which the principal or interest payment remained overdue

D. None of the above are correct

 

9. Tamilnadu State Agricultural Produce Marketing (Regulation) Act was enacted in the year ?

A. 1987

B. 1956

C. 1999

D. 2003

 

10 . The objective of Special Economic Zone is

1. To improve the trade

2. To generate Employment

3. To improve exports

4. To construct lot of industrial corridors in india

Answer the correct choice

A. 1 and 3 only

B. 2 and 4 only

C. 1 and 2 only

D. 1 , 2 and 3

 

11. Which among the following is correct about Mega Food Parks ?

1. Still now their is no Mega Food Parks In Tamilnadu .

2. PMSAMPADA yojana is related to Mega Food Park Scheme .

Answer the correct choice

A. 1 only

B. 2 only

C. Both 1 and 2

D. None

 

12. Which industry is called as oldest industry in India ?

A. Jute industry

B. Iron and Steel industry

C. Cotton industry

D. None of the above

 

13. Match the incorrect option

A. First public sector unit – TISCO unit at Jamshedpur

B. First steel industry – Kulti

C. Steel Authority of India – 1974

D. Jute industry – Reshra

 

14. According to MSME amendment act 2020, the total investment in plant and machinery for Micro Manufacturing Enterprises does not exceed ?

A. 5 crore

B. 10 crore

C. 10 lakhs

D. 25 lakhs

 

15. Which among the following is correct about India planning ?

1. P.C . Mahalanobis plan was associated with Third planning

2. The second planning gave importance to Agriculture development .

Answer the correct choice

A. 1 only

B. 2 only

C. Both 1 and 2

D. None

 

16. India’s rank for Human Development Index in the year 2020 is ?

A. 130

B. 131

C. 132

D. 134

 

17. De licensing , decontrol , de regulations are related to ?

A. Privatisation

B. Globalization

C. Liberalisation

D. All the above

 

18. Which among the following does not comes under Industrial policy of 1991 ?

1. Industrial licensing

2. De reservation and reform of Public sector units

3. Forest Investment policy

4. De reservation of the industrial sector

Answer the correct choice ?

A. 1 and 4 only

B. 2 and 4 only

C. 2,3 and 4

D. All the above

 

19. Competition commission of India was established by government of India after abolishing which law ?

A. Foreign exchange act

B. Industrial dispute act

C. Monopoly and Restrictive Trade practices act

D. Trade union act

 

20 . Through which among the following things,foods can be preserved ?

1. Cold storage

2. Irradiation

3. Preservatives

A. 1 and 3 only

B. 2 only

C. 3 only

D. 1, 2 and 3

 

21. Kisan Credit card scheme was enacted in 1998 for the purposes of ?

A. Increasing the dependence of Informal sector for credit

B. Reducing the dependence of banking sector for credit

C. Reducing the dependence of Informal sector for credit

D. Both B and C

 

22. New Foreign Trade Policy was enacted in the year ?

A. 2010

B. 2015

C. 2020

D. 2000

 

23. Asia’s first Export Processing Zone was set up in ?

A. Kandla Port

B. Marmagoa port

C. Paradip port

D. Chennai port

 

24. Narasimhan Committee is related to ?

A. Medical sector

B. Banking sector

C. Education sector

D. Tourism sector

 

25. The objective of PURA scheme started by Abdul Kalam is ?

A. To bring rural nature into urban life

B. To bring urban amnesties in to rural life

C. To bring city Life less expensive

D .To make city Life more environmentally sound

 

26. Match the incorrect option

A. National Rural Employment program – 1980

B. Bharat Nirman Yojana – 2005

C. Food For work Program – 1956

D. Indira Awas Yojana – 1985

 

27. Which among the following terms denotes Disguised Unemployment ?

A. Productivity is high with unemployment

B. Zero productivity

C. Full employment

D. None of the above

 

28. The meaning of GDP deflator is ?

1. Price changes of goods and services included in GDP

2. It is calculated by dividing GDP to GNP depreciation .

Answer the correct choice

A. 1 only

B. 2 only

C. Both 1 and 2

D. None

 

29. With respect to Factor Cost in an economy , pick up the most related answer to factor cost ?

A. It is the cost of production that is incurred by a firm when producing goods and services

B. It is a minimum investment that incur for agriculture production

C. The ration basic raw material produced in a company to its output production

D.none of the above are correct

 

30. Which among the following doesnot come while calculating National Income ?

1. Transfer payments

2. Capital gains

3. Domestic work

Answer the correct choice

A. 2 only

B. 1 only

C. 1 and 3 only

D. 1,2 and 3

 

31. An capital sector of an economy indicates ?

A. It includes saving and investment

B. It includes day to day activities of an economy

C. It denotes transfer payment of an economy

D. None of the above are correct

 

32. The currency Deposit Ratio denotes ?

A. The ratio of amount of currency that people hold to that they hold in bank deposit.

B. The amount of currency that people hold in post office saving banks .

C. The ratio of fixed deposit savings to demand deposit savings .

D. The ratio of banks deposit to RBI and RBI loans to Commercial Banks

 

33. If an economy is affected by Stagflation , it means ?

1. Stagnant economic growth

2. High deflation

3. Widening of rich and poor

A. 2 only

B. 1 and 2

C. 1 only

D. 3 only

 

34. Indian economy is recently said to be overcomed from recession .In an an economy recession means ?

A. Slightly increase in money supply

B. Disguised Unemployment

C. Lack of money supply in the economy

D. Liquidity preference of the people decreases

 

35. The first bank of india is ?

A. Imperial Bank of India

B. Bank of Hindustan

C. Bank of Bengal

D. Madras bank

 

36. Reserve Bank of India issue license to commercial banks under which act ?

A. Banking licence act 1956

B. Banking Regulation act 1949

C. Banks nationalisation act 1950

D. Banks reform act 1951

 

37. Foreign Exchang Management act was enacted in the year ?

A. 2001

B. 1999

C. 2003

D. 2007

 

38. Special Drawing Rights is related to which International institutions ?

A. World Bank

B. International Monetary Fund

C. Asian Infrastructure Investment bank

D. National Development Bank

 

39. Reserve Bank Of India introduced the banking ombudsman scheme in the year ?

A. 2000

B. 1999

C. 1995

D. 2003

 

40. Recently we heard that Reserve Bank announced open market operations for some reasons . Which among the following denotes open market operations ?

A. Increasing the bank rate

B. Announcing monetary policy

C. Buying and selling Government securities

D. Auditing the banks

 

41. Which among the following does not comes under non tax revenue ?

A. Grants and Aids

B. Fees

C. Surcharge

D. Fine

 

42. Government imposes Sin taxes on some commodities .Here sin tax is related to ?

A. The commodities that are luxurious

B. The commodities that are harmful to health

C. Superstition things

D. None of the above

 

43. Goods and services tax is a ?

A. Investment based tax

B. Consumption based tax

C. Input based tax

D. Direct tax

 

44. Which article of Indian Constitution represents Vote On Account ?

A. Article 118

B. Article 120

C. Article 116

D. Article 122

 

45. Which article says about ” Taxes Levied and collected by the Union but Assigned to the states ?

A. Article 269

B. Article 270

C. Article 268

D. Article 272

 

46. Who is the chairman of Monitary Police Committee of Reserve Bank Of India ?

A . Finance Minister

B. Prime Minister

C. Governor Of RBI

D. President Of India

 

47 . Which article says about Annual Financial Statement ?

A. Article 115

B. Article 112

C. Article 116

D. Article 111

 

48. The GST Rate for Oxygen cylinder and Medical Drugs are ?

A.12 percentage

B. 0 percentage

C. 18 percentage

D. 5 percentage

 

49 .GST Compensation Cess was levied for the purpose of ?

A. To fund for GSTN network

B. To compensate the states for the loss of revenue arising due to the implementation of GST

C. For using the money for welfare to vulnerable people

D. None of the above

 

50. Indian income tax system is known as ?

A. Regressive tax system

B. Progressive tax system

C. Proportional tax system

D. None of the above

 

 

 

 

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