UPSC CAPF (AC) Exam 2016 – 2020:
ECONOMY MCQS
1. Which of the following sectors contribute in
recent years to the deterioration of asset quality of commercial banks by way
of Non-performing assets?
1.
Agriculture and allied sector
2.
Industrial sector
3.
Infrastructure sector
4.
Information technology sector
Select the correct answer using the code given
below:
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 4 only
(d) 1, 2, 3 and 4
2. Mobile phone operators market in India is an
example of
(a) Monopoly
(b) Monopolistic competition
(c) Oligopoly
(d) Perfect competition
3. Fixation of price levels for wheat and rice
by the Commission for Agriculture costs and Prices (CACP) is an example of?
(a) Administered price
(b) Market price
(c) Control price
(d) Support price
4. Which one of the following was recognized as
“invisible hand” by adam smith?
(a) Government
(b) Market/ Price Mechanism
(c) Judiciary
(d) Legislature
5. Which one of the following central Public
sector Undertakings (CPSUs) is recognized as Miniratnas?
(a) Airport Authority of India
(b) Indian oil corporation Limited
(c) Hindustan Aeronautics Limited
(d) Steel Authority of India Limited
6. In which of the following states high
yielding varieties of food grains were introduced as part of the first phase of
Green revolution (1966 – 72)?
1. Andhra
Pradesh
2. Tamil
Nadu
3. Punjab
4.
Haryana
Select the correct answer using the code given
below:
(a) 1, 2 and 3
(b) 2, 3 and 4
(c) 1 and 2 only
(d) 3 and 4 only
7. Which of the following goods are included to
estimate food inflation in India?
1. Wheat
2. Paddy
3.
Tobacco
4. Sugar
Select the correct answer using the code given
below:
(a) 1, 2 and 3
(b) 2, 3 and 4
(c) 1, 3 and 4
(d) 1, 2 and 4
8. What is meant by MSME?
(a) Medium, small and Marginalised Enterprises
(b) Micro, small and Marginalised Enterprises
(c) Medium, strategic and Micro Enterprises
(d) Micro, small and Medium enterprises
9. Which one of the following has the largest
contribution to the Gross Tax Revenue of Government of India in 2019 – 20 (BE)?
(a) Goods and Services Tax
(b) Corporation Tax
(c) Customs
(d) Union Excise Duties
10. Who coined the concept of “Paradox of
Thrift”?
(a) Adam Smith
(b) Alfred Marshall
(c) John Maynard Keynes
(d) Paul A. Samuelson
11. Which one of the following statements is
true with regard to an economy which is on its production possibility frontier?
(a) The economy has to sacrifice some production
of one commodity in order to increase the production of another commodity
(b) There is no limit or constraint for the
economy in the production of goods and services
(c) The economy can produce more of one
commodity up to a point without reducing the production of any other commodity
(d) Its production possibility frontier is an
upward sloping curve
12. Which one of the following is an example of
a price ceiling?
(a) Fares charged by Airlines in India
(b) Price printed on biscuit packets
(c) Minimum support price for cane growers
(d) Minimum wages fixed by state governments
13. According to simple Keynesian theory, the
slope of the aggregate consumption curve against income is
(a) Positive
(b) Negative
(c) Zero
(d) Infinity
14. In a closed economy with no taxes, if the
marginal propensity to consume is always 0 -90, then the value of the
multiplier will be
(a) 10 -00
(b) 1 -00
(c) 0-90
(d) 0-10
15. What is the real interest rate on a credit
card loan bearing 24% interest per year, if the rate of inflation is 10%?
(a) 240%
(b) 34%
(c) 14%
(d) 4%
16. Suppose that the price of a commodity
increases from Rs.90 to Rs.110 and the demand curve shows that the
corresponding reduction in quantity demanded is from 240 units to 160 units.
Then, the coefficient of the price elasticity of demand will be
(a) 1-0
(b) 2-4
(c) 0-5
(d) 2-0
17. Zero price elasticity of demand means
(a) whatever the change in price, there is
absolutely no change in demand
(b) for a small change in price there is a small
change in demand
(c) for a small change in price, there is a
large change in demand
(d) for a large change in price, there is a
small change in demand
18. Which one of the following is NOT correct?
(a) The Average Revenue and Marginal Revenue
curves of a perfectly competitive firm are perfectly elastic
(b) The Marginal Revenue curve of the monopoly
firm is above its Average Revenue curve
(c) In the long run, a competitive firm earns
only normal profits
(d) In equilibrium, the marginal cost curve of
the monopoly firm may be rising, falling or constant
19. According to the Law of Diminshing Returns,
in a production function when more and more units of the variable factor are
used, holding the quantities of a fixed factor constant, a point is reached
beyond which
(a) the marginal revenue will diminish
(b) the average revenue will diminish
(c) the marginal product will diminish
(d) the marginal product will increase
20. If farmers’ loans are waived in India, how
will it affect the aggregate demand in the economy?
1.
Private consumption impact via increase in private sector net wealth
2. Public
sector impact via changes in government expenditure/ taxes
3.
Crowding-out impact via higher borrowings by state governments
4.
Crowding-in impact via higher credit availability as bank NPAs fall
Select the correct answer using the code given
below
(a) 1, 2 and 3 only
(b) 1, 2, 3 and 4
(c) 3 and 4 only
(d) 1 and 2 only
21. Consider the following countries:
1. China
2. Spain
3. India
4. Russia
Which one of the following is the correct ascending
order of the above countries in terms of their share if services sector to
Gross Value Added (GVA) during the period 2001 – 2015?
(a) 1,2,3,4
(b) 1,3,4,2
(c) 1,2,4,3
(d) 1,3,2,4
22. Multipliers will be lower with which one of
the following?
(a) High marginal propensity to consume
(b) Low marginal propensity to consume
(c) High marginal propensity to invest
(d) Low marginal propensity to save
23. Suppose the price of mangoes increases from
Rs.50 per kg to Rs75 per kg. Due to this, the demand for mangoes declines from
100kg to 50kg. Which one of the following is the price elasticity of demand for
mangoes?
(a) 4
(b) 3
(c) 2
(d) 1
24. The Reserve Bank of India defines narrow
money as
(a) CU (currency notes + coins) + DD (net demand
deposits held by commercial banks)
(b) CU + DD + saving deposits with post office
savings banks
(c) CU + DD + net time deposits of commercial
banks
(d) CU + DD + net time deposits of commercial
banks + total deposits of post offices
25. In National Income (NI) accounts personal
Income (PI) is defined as
(a) NI – undistributed profits – net interest
payments made by households – corporate tax + transfer payments to the
households from the government and firms
(b) NI – undistributed profits – corporate tax +
transfer payments to the households from the government and firms
(c) undistributed profits – net interest
payments made by households + transfer payments to the households from the
government and firms
(d) Undistributed profits – net interest
payments made by households – corporate tax
26. Which of the following are the reforms
introduced in Budget 2017 – 2018?
1.
Presentation of Budget advanced to 1st February to enable the
ministries to operationalize all activities from the commencement of the
financial year
2. Merger
of railway budget with General Budget to bring Railways to the centre stage of
Government’s Fiscal policy
3.
Removal of plan and non-plan classification of expenditure to facilitate a
holistic view of allocations for sectors and ministries
Select the correct answer using the code given
below:
(a) 1 and 3 only
(b) 2 and 3 only
(c) 1, 2 and 3
(d) 1 and 2 only
27. To which of the following sectors of the
economy, the activity of agriculture and services belong to?
(a) Primary and Teritiary respectively
(b) Primary and secondary respectively
(c) Tertiary and secondary respectively
(d) Secondary and Quaternary respectively
28. Which of the following most suitably
captures the meaning and essence of globalization?
1. It is
about conducting external relations between two or more states of the world
2. It is
a process of coming together of world wide social relations bypassing
territories
3. It
refers to thinking transterritorially about global risks affecting people
4. It has
a wishful vision of suprastate governance
Select the correct answer using the code given
below:
(a) 1 and 4 only
(b) 2 and 3 only
(c) 2, 3 and 4 only
(d) 1,2,3 and 4
29. Department of industrial policy and
promotion, Government of India, has recently decided to set up India’s first
defence industrial park at:
(a) Kochi
(b) Ottappalam
(c) Mysuru
(d) Bengaluru
30. Which of the following are the objectives of
the Khadi and Village Industries Commission?
1. To
provide employment in rural areas
2. To
produce saleable articles
3. To
create self reliance amongst people and building up a strong rural community
spirit
Select the correct answer using the code given
below:
(a) 1, 2 and 3
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1 and 3 only
31. Which one of the following is not an industrial
corridor as per the policy initiatives?
(a) Amritsar – Kolkata
(b) Delhi – Mumbai
(c) Kolkata – Guwahati
(d) Chennai – Bengaluru
32. During 2014 -2015, in which one of the
following industrial sectors, the FDI equity inflow was maximum?
(a) Telecommunications
(b) Services (Financials, Banking and Insurance,
Non Financial/ Business, R & D etc)
(c) Drugs and Pharmaceuticals
(d) Hotel and Tourism