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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Practice Questions

Page 81 of 111
Question #1601
The 'World Bank's World Development Indicators' is a publication that:
A. sets interest rates
B. publishes stock prices
C. provides development data on countries
D. tracks military spending
Discuss
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Correct Answer: Option C

Explanation:
World Development Indicators provides comprehensive development data.
This question belongs to: Economy GK Economy Set 1
Question #1602
The 'International Bank for Reconstruction and Development' and International Development Association together are called:
A. World Bank (narrowly)
B. World Bank Group
C. United Nations
D. IMF
Discuss
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Correct Answer: Option A

Explanation:
IBRD and IDA together are often referred to as the World Bank.
This question belongs to: Economy GK Economy Set 1
Question #1603
The 'Bretton Woods Conference' was held in which year?
A. 1940
B. 1947
C. 1944
D. 1950
Discuss
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Correct Answer: Option C

Explanation:
The Bretton Woods Conference was held in 1944.
This question belongs to: Economy GK Economy Set 1
Question #1604
The 'Bretton Woods system' of fixed exchange rates collapsed in which decade?
A. 1990s
B. 1950s
C. 1970s
D. 1980s
Discuss
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Correct Answer: Option C

Explanation:
The Bretton Woods system collapsed in the early 1970s.
This question belongs to: Economy GK Economy Set 1
Question #1605
The 'Nixon shock' of 1971 ended the convertibility of the US dollar into:
A. silver
B. euro
C. yen
D. gold
Discuss
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Correct Answer: Option D

Explanation:
The Nixon shock ended the convertibility of the US dollar into gold.
This question belongs to: Economy GK Economy Set 1
Question #1606
The 'Smithsonian Agreement' of 1971 attempted to:
A. create the euro
B. abolish the IMF
C. realign fixed exchange rates after the collapse of the dollar-gold link
D. ban currency trading
Discuss
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Correct Answer: Option C

Explanation:
The Smithsonian Agreement attempted to establish new fixed exchange rate parities after the dollar-gold link ended.
This question belongs to: Economy GK Economy Set 1
Question #1607
The 'Jamaica Accords' of 1976 formally recognized:
A. floating exchange rates
B. a single world currency
C. the euro currency
D. the gold standard
Discuss
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Correct Answer: Option A

Explanation:
The Jamaica Accords formalized floating exchange rates.
This question belongs to: Economy GK Economy Set 1
Question #1608
The 'exchange rate pass-through' refers to the effect of exchange rate changes on:
A. government spending
B. domestic prices of imports and inflation
C. stock prices only
D. unemployment only
Discuss
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Correct Answer: Option B

Explanation:
Exchange rate pass-through is the impact of exchange rate changes on domestic prices.
This question belongs to: Economy GK Economy Set 1
Question #1609
The 'Dutch disease' term was coined after the discovery of natural gas in:
A. United Kingdom
B. Australia
C. Netherlands
D. Norway
Discuss
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Correct Answer: Option C

Explanation:
Dutch disease was named after the effects of natural gas discoveries in the Netherlands.
This question belongs to: Economy GK Economy Set 1
Question #1610
The 'resource curse' is also called the:
A. invisible hand
B. liquidity trap
C. tragedy of commons
D. paradox of plenty
Discuss
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Correct Answer: Option D

Explanation:
The resource curse is also known as the paradox of plenty.
This question belongs to: Economy GK Economy Set 1
Question #1611
The 'rent-seeking' behaviour in economics refers to:
A. manipulating political or economic environment to obtain benefits without creating wealth
B. earning profit through productive activity
C. paying rent
D. buying real estate
Discuss
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Correct Answer: Option A

Explanation:
Rent-seeking is the pursuit of benefits through manipulation rather than productive activity.
This question belongs to: Economy GK Economy Set 1
Question #1612
The 'corruption perception index' is published by:
A. Transparency International
B. WEF
C. IMF
D. World Bank
Discuss
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Correct Answer: Option A

Explanation:
Transparency International publishes the Corruption Perceptions Index.
This question belongs to: Economy GK Economy Set 1
Question #1613
The 'shadow economy' refers to:
A. banking sector
B. stock market
C. unreported economic activities outside the formal sector
D. formal sector activities
Discuss
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Correct Answer: Option C

Explanation:
The shadow economy consists of unreported economic activities.
This question belongs to: Economy GK Economy Set 1
Question #1614
The 'base erosion and profit shifting' framework is an initiative of:
A. World Bank
B. IMF
C. WTO
D. OECD and G20
Discuss
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Correct Answer: Option D

Explanation:
BEPS is an OECD/G20 initiative against tax avoidance by multinational enterprises.
This question belongs to: Economy GK Economy Set 1
Question #1615
The 'Permanent Establishment' concept in international taxation determines:
A. permanent employment
B. permanent bank accounts
C. where a foreign enterprise has taxable presence
D. permanent residency of individuals
Discuss
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Correct Answer: Option C

Explanation:
Permanent establishment determines a foreign enterprise's taxable presence in a country.
This question belongs to: Economy GK Economy Set 1
Question #1616
The 'General Anti-Avoidance Rule' in India was introduced in which year?
A. 2020
B. 2018
C. 2017
D. 2010
Discuss
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Correct Answer: Option C

Explanation:
GAAR came into effect in India in April 2017.
This question belongs to: Economy GK Economy Set 1
Question #1617
The 'Equalization Levy' in India is imposed on:
A. digital transactions and online advertising services
B. exports
C. agricultural income
D. all imports
Discuss
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Correct Answer: Option A

Explanation:
Equalization Levy is imposed on specified digital transactions and online advertising services.
This question belongs to: Economy GK Economy Set 1
Question #1618
The 'Advance Pricing Agreement' is related to:
A. transfer pricing
B. indirect taxes
C. customs valuation
D. income from salary
Discuss
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Correct Answer: Option A

Explanation:
Advance Pricing Agreements relate to transfer pricing arrangements.
This question belongs to: Economy GK Economy Set 1
Question #1619
The 'Base Erosion and Profit Shifting' concerns tax avoidance by:
A. individual employees
B. non-profit organizations
C. government departments
D. multinational enterprises shifting profits to low-tax jurisdictions
Discuss
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Correct Answer: Option D

Explanation:
BEPS involves multinational enterprises shifting profits to low-tax jurisdictions.
This question belongs to: Economy GK Economy Set 1
Question #1620
The 'International Financial Services Centres Authority' was established in India in which year?
A. 2021
B. 2015
C. 2020
D. 2019
Discuss
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Correct Answer: Option C

Explanation:
IFSCA was established in 2020.
This question belongs to: Economy GK Economy Set 1
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