Economy Set 1 MCQs

Economy GK

Economy Set 1 MCQs

Practice Economy GK MCQs on basic economic concepts including economy, economics, microeconomics, macroeconomics, goods and services, demand and supply, factors of production, opportunity cost, economic activities, sectors of economy and other fundamental concepts frequently asked in SSC, Railway, Banking, UPSC, JKSSB, JKPSC, Police, Defence and other competitive examinations.

2220
Total Questions

Practice Questions

Page 51 of 111
Question #1001
Human capital formation mainly involves:
A. accumulation of physical capital
B. increase in foreign exchange reserves
C. investment in education, health and skill development
D. increase in natural resources
Discuss
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Correct Answer: Option C

Explanation:
Human capital formation involves investment in education, health and skills.
This question belongs to: Economy GK Economy Set 1
Question #1002
Labour productivity is measured as:
A. wages divided by profit
B. total population divided by labour force
C. output per unit of labour input
D. capital divided by labour
Discuss
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Correct Answer: Option C

Explanation:
Labour productivity is output per unit of labour input.
This question belongs to: Economy GK Economy Set 1
Question #1003
The four labour codes in India consolidate how many existing central labour laws?
A. 10
B. 44
C. 100
D. 29
Discuss
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Correct Answer: Option D

Explanation:
The four labour codes consolidate 29 central labour laws.
This question belongs to: Economy GK Economy Set 1
Question #1004
The Skill India Mission aims to:
A. provide direct income support
B. promote imports
C. train a large number of people in various skills
D. reduce population growth
Discuss
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Correct Answer: Option C

Explanation:
Skill India aims to provide skill training to the workforce and improve employability.
This question belongs to: Economy GK Economy Set 1
Question #1005
Sustainable Development Goal 1 is related to:
A. ending poverty in all its forms
B. quality education
C. gender equality
D. climate action
Discuss
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Correct Answer: Option A

Explanation:
SDG 1 aims to end poverty in all its forms everywhere.
This question belongs to: Economy GK Economy Set 1
Question #1006
Which Sustainable Development Goal relates to decent work and economic growth?
A. SDG 8
B. SDG 5
C. SDG 13
D. SDG 17
Discuss
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Correct Answer: Option A

Explanation:
SDG 8 promotes sustained, inclusive economic growth and decent work for all.
This question belongs to: Economy GK Economy Set 1
Question #1007
Green GDP is an indicator that adjusts GDP for:
A. environmental degradation and natural resource depletion
B. inflation
C. population growth
D. foreign debt
Discuss
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Correct Answer: Option A

Explanation:
Green GDP adjusts conventional GDP for environmental degradation and natural resource depletion.
This question belongs to: Economy GK Economy Set 1
Question #1008
A carbon tax is a tax on:
A. electricity consumption only
B. emissions of carbon dioxide or carbon content of fuels
C. renewable energy
D. all imports
Discuss
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Correct Answer: Option B

Explanation:
A carbon tax is levied on carbon emissions or the carbon content of fossil fuels.
This question belongs to: Economy GK Economy Set 1
Question #1009
The circular economy concept emphasizes:
A. linear production and disposal
B. unlimited resource extraction
C. reuse, recycling and regeneration of resources
D. increasing waste generation
Discuss
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Correct Answer: Option C

Explanation:
A circular economy emphasizes reuse, recycling and regeneration to minimize waste.
This question belongs to: Economy GK Economy Set 1
Question #1010
The term inclusive growth refers to economic growth that:
A. focuses only on manufacturing
B. benefits all sections of society and reduces inequality
C. ignores employment
D. benefits only the rich
Discuss
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Correct Answer: Option B

Explanation:
Inclusive growth ensures that the benefits of growth are widely shared and inequality is reduced.
This question belongs to: Economy GK Economy Set 1
Question #1011
The Marginal Standing Facility rate is generally set how much above the repo rate?
A. 0.50 percentage points
B. 2.00 percentage points
C. 0.25 percentage points
D. 1.00 percentage point
Discuss
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Correct Answer: Option C

Explanation:
The MSF rate is usually 0.25 percentage points above the repo rate.
This question belongs to: Economy GK Economy Set 1
Question #1012
In a liquidity adjustment facility, the reverse repo rate is typically how much below the repo rate?
A. 0.25 percentage points
B. 2.00 percentage points
C. 1.00 percentage point
D. 0.50 percentage points
Discuss
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Correct Answer: Option D

Explanation:
The reverse repo rate is usually 0.50 percentage points below the repo rate, though the actual gap may vary.
This question belongs to: Economy GK Economy Set 1
Question #1013
Currency with the public plus demand deposits is called:
A. high-powered money
B. narrow money
C. broad money
D. reserve money
Discuss
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Correct Answer: Option B

Explanation:
Currency with the public plus demand deposits is narrow money, M1.
This question belongs to: Economy GK Economy Set 1
Question #1014
The expenditure on old age pension is classified as:
A. revenue expenditure
B. capital expenditure
C. plan expenditure
D. developmental expenditure
Discuss
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Correct Answer: Option A

Explanation:
Old age pension is a recurring revenue expenditure that does not create assets.
This question belongs to: Economy GK Economy Set 1
Question #1015
Expenditure on construction of a national highway is classified as:
A. capital expenditure
B. revenue expenditure
C. non-plan expenditure
D. transfer payment
Discuss
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Correct Answer: Option A

Explanation:
Construction of a highway creates a capital asset and is capital expenditure.
This question belongs to: Economy GK Economy Set 1
Question #1016
Interest payment on government debt is classified as:
A. non-tax revenue
B. revenue expenditure
C. capital expenditure
D. plan expenditure
Discuss
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Correct Answer: Option B

Explanation:
Interest payment on debt is a recurring revenue expenditure.
This question belongs to: Economy GK Economy Set 1
Question #1017
Which of the following is a non-tax revenue receipt for the central government?
A. Income tax
B. Dividends from public sector enterprises
C. Corporate tax
D. GST
Discuss
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Correct Answer: Option B

Explanation:
Dividends from public sector enterprises are non-tax revenue receipts.
This question belongs to: Economy GK Economy Set 1
Question #1018
The total expenditure of the government is divided into:
A. plan and non-plan expenditure only
B. direct and indirect expenditure
C. revenue expenditure and capital expenditure
D. mandatory and voluntary expenditure
Discuss
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Correct Answer: Option C

Explanation:
Total government expenditure is classified into revenue expenditure and capital expenditure.
This question belongs to: Economy GK Economy Set 1
Question #1019
A zero-primary deficit indicates that:
A. there is no fiscal deficit
B. total expenditure equals revenue receipts
C. fiscal deficit equals interest payments
D. revenue deficit is zero
Discuss
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Correct Answer: Option C

Explanation:
Primary deficit is fiscal deficit minus interest payments; zero primary deficit means fiscal deficit equals interest payments.
This question belongs to: Economy GK Economy Set 1
Question #1020
Disinvestment in a public sector enterprise is classified in the government budget as:
A. transfer payment
B. revenue expenditure
C. capital receipt
D. revenue receipt
Discuss
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Correct Answer: Option C

Explanation:
Disinvestment proceeds are capital receipts as they arise from sale of assets.
This question belongs to: Economy GK Economy Set 1
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