Economics Jkssb Economics Set 2 Mcqs (342 MCQs) | JKSSB & SSC Quiz

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jkssb economics set 2 mcqs

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Practice Questions

342 Total
Question 291 Discuss
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Which of the following is the correct formula for calculating gross primary deficit?

A
Gross fiscal deficit - Borrowings from abroad
B
Gross fiscal deficit - Borrowing from RBI
C
Gross fiscal deficit + Net interest liabilities
D
Gross fiscal deficit - Net interest liabilities

Answer & Explanation

Correct Option: D

The primary deficit is calculated by subtracting interest payments on past borrowing from the current year's gross fiscal deficit, illustrating the government's current fiscal stance.
Question 292 Discuss
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Which of the below mentioned elements is NOT a method to finance a fiscal deficit?

A
Higher taxation
B
Non-tax revenues
C
Deficit financing
D
Borrowings from domestic and international sources

Answer & Explanation

Correct Option: B

Deficits are financed through extraordinary measures like borrowing or deficit financing (money creation), whereas non-tax revenues are simply regular ongoing receipts.
Question 293 Discuss
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Which of the following statements is true about the share of agriculture in India's international export trade over the last few decades?

A
remained the same
B
did not increase significantly
C
declined significantly
D
did not decline significantly

Answer & Explanation

Correct Option: C

As the Indian economy modernized, diversified, and expanded its manufacturing and services sectors, the percentage share of agricultural products in its total exports declined significantly.
Question 294 Discuss
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Section 56 (2) (vii B) in the Income Tax Act is referred to as:

A
Normal Investments
B
Angel Fund
C
Normal Taxing
D
Angel Tax

Answer & Explanation

Correct Option: D

Colloquially known as the "Angel Tax," Section 56(2)(viib) levies a tax on closely held companies when they issue shares to resident investors at a price exceeding fair market value.
Question 295 Discuss
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The Primary Deficit is zero in which of the following situations?

A
When fiscal deficit is zero
B
When the government stops borrowing entirely
C
When revenue deficit is zero
D
When fiscal deficit is exactly equal to interest payments

Answer & Explanation

Correct Option: D

Since primary deficit equals fiscal deficit minus interest payments, it drops to zero when a government's total borrowing is used entirely and exclusively to pay interest on past debt.
Question 296 Discuss
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What was the contribution of the agriculture sector to the GDP in 1950 ?

A
48.6%
B
72.3%
C
67.5%
D
56.6%

Answer & Explanation

Correct Option: C

At the inception of the republic in 1950, India was predominantly an agrarian economy with agriculture acting as the primary driver and largest contributor to its GDP.
Question 297 Discuss
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Hill Area Development Programmes were initiated during the Five-Year Plan covering 15 districts.

A
Fifth
B
Second
C
Fourth
D
Sixth

Answer & Explanation

Correct Option: A

To ensure balanced regional development in ecologically fragile and topographically difficult regions, the Hill Area Development Programme was launched during the Fifth Five-Year Plan.
Question 298 Discuss
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Which of the following states have witnessed effective implementation of land reform measures?

A
Andhra Pradesh and West Bengal
B
Kerala and West Bengal
C
Tamil Nadu and Gujarat
D
Uttar Pradesh and Kerala

Answer & Explanation

Correct Option: B

Due to sustained political will and organized peasant movements, Kerala and West Bengal stand out historically as the most successful Indian states in implementing robust land reforms.
Question 299 Discuss
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The RBI launched the Lead Bank Scheme (LBS) to mobilise deposits and step-up lending to weaker sections of the economy. When was the scheme launched?

A
1973
B
1969
C
1962
D
1958

Answer & Explanation

Correct Option: B

Following the nationalization of banks and the recommendations of the Gadgil Study Group, the RBI introduced the Lead Bank Scheme in 1969 to foster localized rural banking development.
Question 300 Discuss
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In the context of a consumption function for an economy, if MPC = 0.6, then what is the likely value of MPS?

A
0.16
B
0.36
C
-0.6
D
0.4

Answer & Explanation

Correct Option: D

Because any additional unit of income must mathematically be either consumed or saved, the Marginal Propensity to Consume (MPC) and Marginal Propensity to Save (MPS) always equal 1 (0.6 + 0.4 = 1).
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