Railway/SSC JE Civics quiz for (Phase I), RRB NTPC, SSC various exams and other competitive exams.
Q1. Which among the following is the Biggest Borrower in India?
(a) Indian Government
(b) Reserve Bank of India
(c) Indian Railways
(d) State Governments
Answer & Explanation
Ans.1.(a)
Exp.Indian government is the biggest borrower in India and its prime lender is RBI.
Q2. The existence of a parallel economy (black money) ___________.
(a) Makes economy more competitive
(b) Makes the monetary policies less effective
(c) Ensures a better distribution of income and wealth
(d) Ensures increasing productive investment
Answer & Explanation
Ans.2.(b)
Exp.The Parallel Economy (black money) will ruin the entire economic development of the country and adversely affect the monetary policy.
Q3. What does GDP mean ?
(a) The total value of all goods and services produced in the country during a period of 1 year
(b) The total value of all stocks and shares in the country during a period of 1 year
(c) The total value of all capital goods produced in the country during a period of 1 year
(d) The total value of all consumer goods produced in the country during a period of 1 year
Answer & Explanation
Ans.3.(a)
Exp. National Income is one of the basic concepts in macro economics. National Income means the total income of the nation.The aggregate economic performance of the whole economy is measured by the National Income data. National Income refers to the total value of all final goods and services produced in the country during a period of 1 year.
Q4. Subsidies are payment by government to
(a) Consuming units
(b) Producing units
(c) Both (a) & (b)
(d) Retired persons
Answer & Explanation
Ans.4.(c)
Exp. A subsidy is an amount of money given directly to firms by the government to encourage production and consumption.
Q5.Special Economic Zone (SEZ) concept was first introduced in
(a) China
(b) Japan
(c) India
(d) Pakistan
Answer & Explanation
Ans.5.(a)
Exp. Special Economic Zone (SEZ) concept was first introduced in China in the 1980s. The most successful SEZ in China, Sherizhen, has developed from a small village into a city with a population over 10 million within 20 years. Commerce Minister Mr Maran Had introduced SEZ concept in year 1997 for first times in India.
Q6. “Interest is a reward for parting with liquidity” is according to
(a) Keynes
(b) Marshall
(c) Haberler
(d) Ohlin
Answer & Explanation
Ans.6.(a)
Exp.This theory has been given by JM Keynes
Q7. According to the Classical System, saving is a function of
(a) income
(b) the interest rate
(c) the real wage
(d) the price level
Answer & Explanation
Ans.7.(a)
Exp.Saving function is a mathematical relation between saving and income by the household sector, according to classical theory, saving is a function of the level of income.
Q8.Who propounded the market law?
(a) Adam Smith
(b) JB Say
(c) TR Malthus
(d) David Recardo
Answer & Explanation
Ans.8. (b)
Exp. The JB Say’s law of market has been given J B Say. Which stated as “supply creates its own demand.”
Q9. How many key infrastructure sectors are known as Core sector in Indian Economy,used for Index of Industrial Production (IIP) data ?
(a) 5
(b) 6
(c) 7
(d) 8
Answer & Explanation
Ans.9. (d)
Exp. The Index of Industrial Production (IIP) is an index for India which details out the growth of various sectors in an economy such as mineral mining, electricity and manufacturing. The Eight Core Industries comprise nearly 40.27% of the weight of items included in the Index of Industrial Production (IIP).
Q10.Who gave the ‘General Equilibrium Theory’?
(a) J. M. Keynes
(b) Leon Walras
(c) David Ricardo
(d) Adam Smith
Answer & Explanation
Ans.10.(b)
Exp. French economist Leon Walras in his pioneering work Elements of Pure Economics in 1874 gave General Equilibrium theory. It attempts to explain the behavior of supply, demand, and prices in a whole economy with several or many interacting markets, by seeking to prove that the interaction of demand and supply will result in an overall general equilibrium.
