WBCS MAIN PAPER V : INDIAN ECONOMY - INFLATION, UNEMPLOYMENT & POVERTY
1.The type of unemployment mostly found in India can be characterised as
(A) structural (B) frictional (C) cyclical (D) disguised
2.Disguised unemployment in India is mainly related to
1. agricultural sector
2. rural area
3. factory sector
4. urban area
(A) 1 and 2
(B) 1 and 3
(C) 2 and 4
(D) 3 and 4
3.Which among the following cannot be called an anti-inflationary measure?
(A) Raising the bank rates
(B) Raising the Reserve Ratio Requirements
(C) Purchase of securities from the open markets
(D) Rationing of the credit
4. Inflation Indexed Bonds is pegged to.
(A) WPI (B) CPI (C) Both WPI and CPI (D) None of the above
5.Which of the following groups suffer the most from inflation?
(A) Debtors (B) Creditors (C) Business class (D) Holders of real assets
6.Persons below the poverty line in India are classified as such based on whether
(A) they are entitled to a minimum prescribed food basket.
(B) they get work for a prescribed minimum number of days in a year.
(C) they belong to agricultural labourer household and the scheduled caste/ tribe social group.
(D) their daily wages fall below the prescribed minimum wages.
7.Exchange rates for one currency against another currency, is known as
(A) Real exchange rate (B) Nominal exchange rate (C) Superfluous exchange rate
(D) None of the above
1.National Rural Employment Guarantee Act provides employment to,
(A) skilled rural workers. (B) semi skilled rural workers. (C) unskilled workers. (D) Both (A) and (B)
2.Indian agriculture mostly shows this type of unemployment _______
(A) Voluntary unemployment
(B) Cyclical unemployment
(C) Disguised unemployment
(D) Frictional unemployment
3.Major part of employment in India arise in this field ______
(A) Organised sector (B) Unorganised sector (C) Public sector (D) Both (A) and (C)
4.Which statement is not correct ?
Small scale industries in India are advantageous as
(A) they have high employment potential.
(B) highly capital intensive.
(C) use of local skill and material.
(D) capital used per worker relatively low.
5.Inflationary pressure in the domestic market
(A) makes balance of trade unfavourable
(B) improves balance of trade.
(C) does not affect foreign exchange reserve & foreign trade.
(D) the relationship is uncertain.
6.Point out the wrong statement.
Increase in money supply through deficit financing,
(A) raises production if supply condition is elastic.
(B) it starts multiplier working.
(C) it helps to employ unutilised resources.
(D) it is always inflationary.
1.A condition of slow economic growth and relatively high unemployment—economic stagnation—accompanied by rising prices is known as
(A) Stagflation (B) Hyper-inflation (C) Demand-pull inflation (D) Cost push inflation
2.Since April 2014 the Reserve Bank of India has adopted the new measure of inflation which is known as
(A) Consumer Price Index (B) New Consumer Price Index (C) Wholesale Price Index (D) None of the above
1.Main argument in favour of small scale and cottage industries in India is that
(A) cost of production is low.
(B) they require small capital investment.
(C) they advance the goal of equitable distribution of wealth.
(D) they generate large volume of employment.
1.In India, inflation is measured by
(A) wholesale price index number
(B) consumer price index number for urban non-manual workers
(C) net national product at market prices
(D) gross national product at market prices
2.What kind of unemployment is found in the agricultural sector of India ?
(A) Situational (B) Voluntary (C) Frictional (D) Disguised
3.Who among the following did not estimate the incidence of poverty in India ?
(A) B. S. Minhas (B) P. K. Bardhan (C) V. M. Dandekar and N. Rath (D) Raj Krishna
4.In India, which of the following affects poverty line the most ?
(A) Level of prices (B) Production quantum (C) Per capita income (D) Quantum of gold reserve
- Which of the following are the main causes of slow rate of growth of per capita income in India ?
- High capital - output ratio
- High rate of growth of population
- High rate of capital formation
- High level of fiscal deficits
(A) 1, 2 (B) 2, 3, 4 (C) 1, 4 (D) All of the above
5.National Sample Survey Organisation (NSSO) was established in
(A) 1947 (B) 1948 (C) 1949 (D) 1950
6.Abid Hussain Committee is related to
(A) reform in taxes
(B) reform in government projects
(C) reform in small industries
(D) reform in middle level industries
7.Deficit financing is termed as
(A) inflationary method of financing
(B) deflationary method of financing
(C) hyper-inflationary method of financing
(D) financing development expenditure
8.Which of the following statement is not correct about INDIA VISION 2020 ?
(A) It expects elimination of poverty, unemployment and illiteracy by 2020
(B) It expects that India's per capita income will get down by 2020
(C) Environment situation will remain as unbalanced as today
(D) It was designed by Dr. Sam Pitroda
9.How much population is living below poverty line in India ?
(A) Approx. 23.6% (B) Approx. 25% (C) Approx. 26% (D) Approx. 27%
1.What is the percentage of people below Poverty line according to Rangarajan Committee ?
(A) 32 per cent (B) 29.5 per cent (C) 26 per cent (D) 40 per cent
2.Which of the following benefits from inflation ?
(A) Lender (B) Borrower (C) Both (D) None of the above
3.In India, inflation measured by the -
(A) Wholesale Price Index Number
(B) Consumer Price Index for urban non-manual workers
(C) Consumer Price Index for agricultural workers
(D) National Income Deflation
4.Factors responsible for current inflation are —
(A) circulation of black money
(B) government expenditure on subsidy
(C) excess of demand over supply of goods
(D) All of the above
5.In India, inflation measured by the -
(A) National Income Deflation
(B) Whole sale Price Index Number
(C) Consumer Price Index
(D) None of the above
1.If withdrawal of workers from employment does not create output loss, this is
(A) Search unemployment (B) Voluntary unemployment
(C) Disguised unemployment (D) Frictional unemployment
2.Contribution of agricultural sector to Indian grow domestic product is
(A) More than its percentage share in total employment
(B) Less than its percentage share in total employment
(C) Both shares are fairly equal
(D) None applies
3.Inflation can be controlled by
(A) surplus budget (B) increase in taxation
(C) reduction in public expenditure (D) All of the above
4.Indian employment is generated mostly in this sector
(A) Registered Sector (B) Government Sector
(C) Un-registered and Un-organised sector (D) Both (A) and (B)
5.Find out the incorrect statement
Cause of inflation is
(A) Parallel economy (B) Low fiscal deficit
(C) High growth of money supply (D) High rate of public expenditure
1.D. A. (Dearness Allowance) is paid on the basis of -
(A) Standard of living (B) Per capita Income (C) Consumer Price index (D) National Income
2.Poverty in less developed countries largely due to
(A) Voluntary idleness
(B) Income inequality
(C) Lack of cultural activities
(D) Lack of intelligence of the people