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.

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Total Questions

Practice Questions

Page 6 of 111
Question #101
The Rolling Plan concept was introduced in India during:
A. Third Plan
B. Eighth Plan
C. First Plan
D. Janata Party government after the Fifth Plan
Discuss
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Correct Answer: Option D

Explanation:
The Janata government introduced the Rolling Plan after the Fifth Five Year Plan.
This question belongs to: Economy GK Economy Set 1
Question #102
The National Development Council in India is headed by:
A. Home Minister
B. President
C. Prime Minister
D. Finance Minister
Discuss
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Correct Answer: Option C

Explanation:
The National Development Council is headed by the Prime Minister.
This question belongs to: Economy GK Economy Set 1
Question #103
The guiding philosophy of NITI Aayog is:
A. import substitution
B. centralized planning
C. command economy
D. cooperative federalism
Discuss
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Correct Answer: Option D

Explanation:
NITI Aayog works on the principle of cooperative federalism.
This question belongs to: Economy GK Economy Set 1
Question #104
Which of the following bodies was responsible for approving five year plans in India before the establishment of NITI Aayog?
A. Cabinet Committee on Economic Affairs
B. Finance Ministry
C. Parliament
D. National Development Council
Discuss
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Correct Answer: Option D

Explanation:
The National Development Council approved the Five Year Plans before NITI Aayog was formed.
This question belongs to: Economy GK Economy Set 1
Question #105
The concept of indicative planning in India refers to:
A. planning in a mixed economy with public and private sectors
B. planning without any state intervention
C. state ownership of all means of production
D. planning based on forced targets
Discuss
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Correct Answer: Option A

Explanation:
Indicative planning in India is planning in a mixed economy with both public and private sectors.
This question belongs to: Economy GK Economy Set 1
Question #106
Which of the following was a central objective of the Mahalanobis strategy in the Second Plan?
A. land reforms
B. promotion of cottage industries
C. investment in heavy and capital goods industries
D. export promotion
Discuss
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Correct Answer: Option C

Explanation:
The Mahalanobis strategy emphasized investment in heavy and capital goods industries.
This question belongs to: Economy GK Economy Set 1
Question #107
Which of the following is not a member of the NITI Aayog Governing Council?
A. RBI Governor
B. Prime Minister
C. Chief Ministers of states
D. Lieutenant Governors of union territories
Discuss
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Correct Answer: Option A

Explanation:
The RBI Governor is not a member of the NITI Aayog Governing Council.
This question belongs to: Economy GK Economy Set 1
Question #108
The primary goal of the Twelfth Five Year Plan was:
A. faster, more inclusive and sustainable growth
B. full employment
C. universal literacy
D. poverty eradication
Discuss
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Correct Answer: Option A

Explanation:
The Twelfth Five Year Plan aimed at faster, more inclusive and sustainable growth.
This question belongs to: Economy GK Economy Set 1
Question #109
The New Economic Policy of 1991 was based on the principles of:
A. import substitution and trade restrictions
B. liberalization, privatization and globalization
C. nationalization and central planning
D. land reforms and cooperatives
Discuss
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Correct Answer: Option B

Explanation:
The 1991 New Economic Policy was based on liberalization, privatization and globalization.
This question belongs to: Economy GK Economy Set 1
Question #110
The immediate cause of the 1991 economic crisis in India was:
A. a severe drought
B. a balance of payments crisis
C. fall in agricultural production
D. industrial stagnation
Discuss
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Correct Answer: Option B

Explanation:
The 1991 economic crisis was triggered by a severe balance of payments crisis.
This question belongs to: Economy GK Economy Set 1
Question #111
Which of the following was NOT part of the 1991 economic reforms?
A. Opening up to foreign investment
B. Nationalization of commercial banks
C. Reduction of import tariffs
D. Abolition of industrial licensing for most industries
Discuss
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Correct Answer: Option B

Explanation:
Nationalization of commercial banks was done earlier in 1969 and 1980, not in the 1991 reforms.
This question belongs to: Economy GK Economy Set 1
Question #112
The World Trade Organization came into existence in which year?
A. 1947
B. 2001
C. 1995
D. 1944
Discuss
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Correct Answer: Option C

Explanation:
The WTO was established in 1995, replacing GATT.
This question belongs to: Economy GK Economy Set 1
Question #113
The International Monetary Fund and the World Bank were established at:
A. the Geneva Conference
B. the Bretton Woods Conference
C. the UN General Assembly
D. the Doha Round
Discuss
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Correct Answer: Option B

Explanation:
The IMF and World Bank were established at the Bretton Woods Conference in 1944.
This question belongs to: Economy GK Economy Set 1
Question #114
Which institution primarily provides short-term financial assistance to countries facing balance of payments problems?
A. IMF
B. World Bank
C. ADB
D. WTO
Discuss
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Correct Answer: Option A

Explanation:
The IMF provides short-term financial assistance to countries with balance of payments problems.
This question belongs to: Economy GK Economy Set 1
Question #115
The soft loan window of the World Bank is:
A. IDA
B. MIGA
C. IFC
D. IBRD
Discuss
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Correct Answer: Option A

Explanation:
The International Development Association is the World Bank's soft loan window.
This question belongs to: Economy GK Economy Set 1
Question #116
Special Drawing Rights are:
A. a type of bond issued by ADB
B. loans given by WTO
C. currency of the World Bank
D. an international reserve asset created by the IMF
Discuss
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Correct Answer: Option D

Explanation:
SDRs are an international reserve asset created by the IMF.
This question belongs to: Economy GK Economy Set 1
Question #117
The value of the SDR is based on a basket of how many currencies?
A. 4
B. 5
C. 6
D. 3
Discuss
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Correct Answer: Option B

Explanation:
The SDR basket consists of five currencies: US dollar, euro, Chinese yuan, Japanese yen and British pound.
This question belongs to: Economy GK Economy Set 1
Question #118
TRIPS is an agreement of the WTO dealing with:
A. intellectual property rights
B. agricultural subsidies
C. trade in services
D. anti-dumping measures
Discuss
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Correct Answer: Option A

Explanation:
TRIPS deals with Trade-Related Aspects of Intellectual Property Rights.
This question belongs to: Economy GK Economy Set 1
Question #119
The Most-Favoured-Nation principle under the WTO implies:
A. prohibition of all tariffs
B. favourable treatment to developed countries
C. non-discriminatory treatment between trading partners
D. special tariff concessions to neighbours
Discuss
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Correct Answer: Option C

Explanation:
The MFN principle requires non-discriminatory treatment among WTO members.
This question belongs to: Economy GK Economy Set 1
Question #120
The Doha Development Round of WTO negotiations primarily focused on:
A. exchange rate management
B. intellectual property only
C. military alliances
D. concerns of developing countries
Discuss
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Correct Answer: Option D

Explanation:
The Doha Round focused on development concerns of developing countries.
This question belongs to: Economy GK Economy Set 1
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Select the antonym of 'KNOTTY'.
A man buys a book for Rs. 150 and sells it for Rs. 180. What is the gain percent?