TNPSC Exam-GROUP- II - Subject wise analysed questions and Answers- Economics-Part-1

TNPSC Exam-GROUP- II - Subject wise analysed questions and Answers- Economics-Part-1

TNPSC GROUP – II

NOVEMBER – 2012

(ECONOMY)

1.         If the GDP is measures at the price prevailing at a point of time, then it is called

            A)        GDP Current price               B)        GDP market price

            C)        GDP constant price             D)        (A) + (B) + (C)

           

            Ans :(C)

2.         The product method of measuring GDP involves

 A) incomes generated from the production of goods and services                    

 B)adding up the value of everything produced in the country during the year

 C) adding up all expenditures on final output        

 D)   none of the above

           

            Ans :(B)

3.         A higher interest rate might induce households to _____but business to ____

            A)        save more, borrow less

            B)        save less, borrow more

            C)        save more, borrow more    

            D)        save less, borrow less

           

            Ans :(A)

4.         An developing economy had the following features

A) Low per capital income, chronic unemployment occupational pattern

B)  Population pressure

C) Only (A)        

 D) (A) + (B)

           

            Ans :(D)

5.         Deflation refers to a condition of ____ prices

      A)  falling                   B)  rising                   

     C)  constant              D)  moderate

            Ans :(A)

TNPSC GROUP – II  2012

Economics

6.         Match List I with List II correctly and select your answer using the codes given below:

                                    List I                                                               List II

A)   GNP  1. Value of output produced by factors of production by domestic residents 
 

B)  GDP    2.         GNP - depreciation

C)  NNP     3.         GDP - depreciation 

D)  NDP     4.         GDP + Income from abroad

            Codes:

           

                        a          b          c          d

            A)        2          3          1          4

            B)        3          4          1          2

            C)        4          1          2          3

            D)        1          2          3          4

           

                                                                                               

            Ans : (C)

7.         Am example of indirect tax is

            A)        Income tax                                         B)        Sales tax

            C)        Wealth  tax                                        D)        Gift tax

           

            Ans : B)

8.         The non- tax revenue of the Central Government does  not include

            A)        fiscal services

            B)        dividend and profits

            C)        economic services

            D)        customs duties

            Ans : (D)

9.         Which one of the following comes under NBFIs?

            A)        Commercial Bank                B)        Co-operative Bank

            C)        UTI                                          D)        None of these

            Ans : (C)

10.       In money supply M₂ = M₁ +

            A)        net time deposits of banks

            B)        total deposits with post Office savings bank

            C)        net demand deposits of banks

            D)        none of these

            Ans : (A)

11.       Inflation is most often caused by

A) supply side forces increase costs to producers

B) demand side force which depress the level of consumer spending

C) rapid expansion of money supply

D) unreasonable wage demands by labour unions

            Ans : (C)

12.       An increase in the growth rate of money supply is most likely to be followed by

            A)        recession

            B)        decline in economic activity

            C)        recession and decline in economic activity

            D)        inflation

            Ans : (D)

(July - 2011)

TNPSC GROUP - II

Economy

13.       Rourkela steel plant was set up with the assistance of

            A)        USSR                                     B)        West Germany

            C)        UK                                          D)        USA

            Ans : (B)

14.       What is Broad money?

            A)        Currency with Public + demand deposits

            B)        Currency  with public  + post office savings deposits

            C)        Currency  with Public + demand deposits

            D)        Currency with public + derived deposits

            Ans : (C)

15.       Which one of the following factors does not influence velocity if circulation   of money?

            A)        Quantity of money

            B)        Selling cost of business firms

            C)        Credit facilities

            D)        Business conditions

            Ans : (A)

16.       Annual rate of inflation of all commodities in 2009 - 2010 was

            A)        14.4%                                     B)        10%

            C)        8%                                          D)        11%

            Ans : (D)

17.       Disposable income is equal to

            A)        Personal income minus subsidies

            B)        Personal income minus taxes

            C)        Personal income minus transfer payment

            D)        National income minus depreciation

            Ans : (B)

TNPSC GROUP – II 

Economy  (April – 2010)

18.       Which one of the following is considered as a non – economic activity?

            A)        Teaching in a class

            B)        Patient attended by a doctor

            C)        Mother taking care of her child                             

D)        Travelling in a bus

Ans : (C)

19.       The expansion of HDI is

            A)        Hindi Development Institute                     

B)        Human Development Index

            C)        Human Development Investment

D)        None of these

Ans : (B)

20.       During the Second Five- Year Plan period, the planner worked out the capital output ratio at

            A)        1.5 : 1                         B)        5.4 : 1

            C)        2.3 : 1                         D)        4.3 : 7

Ans : (C)

21.       The indicator(s) of development according to modern ideology is / are

            A)        Growth in national income

            B)        Growth in per capital income

            C)        High rate of capital

D)        all of these

Ans : (D)

22.       New Entrepreneurs Agency was established in

            A)        1956                           B)        1961

            C)        1980                           D)        1986

Ans : (C)

23.       Industrial sickness is nothing but

            A)        any one part of the factory is being affected                  

            B)        unable to pay back the debt

            C)        unable to create surplus income and running the industry

only by receiving the debt                         

D)        change in the ownership of 3industry

Ans : (C)

TNPSC GROUP – II 

Economy  (March – 2009)

24.       Human Development Index (HDI) does not include which of the following socio-economic indicators?

            A)        Infant mortality rate

            B)        GNP per capita

            C)        Life expectancy

D)        Literacy rate

Ans : (A)

25.       Structural unemployment sisters due to

            A)        deflationary condition

            B)        heavy industry bias

            C)        shortage of raw materials

D)        inadequate productive capacity

Ans : (D)