1. India has ________?

a) Socialistic economy Mixed economy b) Free economy c) a&c d) b&c e) a&b Answer: Mixed economy, Free economy 2. The most important source of capital formation in India has been? a) Public sector savings b) Government revenue surpluses c) Corporate savings d) Household savings Answer: Household savings 3. In India, the Public Sector is most dominant in? Transport Steel production Answer: commercial banking organised term lending financial institutions. 4.Goas economy is mainly based on ? tourism Answer: export of ores agriculture None of these 5.Indias wage policy is based on ? Answer: Cost Of Living Standard of living productivity None of these 6.One of the reasons for Indias occupational structure remaining more or less the same over the years has been that Productivity in agriculture has been high enough to induce people to stay with agriculture Answer: People are largely unaware of the significance of transition from agriculture to industry for economic development. Investment pattern has been directed towards capital intensive industries. ceilings-on land holdings have enabled more people to own land and hence their preference to stay with agriculture 7. Which of the following is correct regarding the Gross Domestic Savings in India? Answer: Contribution of Household sector is the largest

Contribution of Government sector is the largest Contribution of Corporate sector is the largest None of these. 8.Which of the following governmental steps has proved relatively effective in controlling the double digit rate of inflation in the Indian economy during recent years Answer: Containing budgetary deficits and unproductive expenditure Streamlined public distribution system Enhanced rate of production of all consumer goods Pursuing an export -oriented strategy 9.The modern economy is not characterised by? capital intensive mode of production development of money economy production for market Answer: self-sufficient village system 10.One of the problems in calculating the national income in India correctly is? under - employment inflation Answer: non -monetised consumption low savings 11.The main source of Indias national income is? Industry Answer: Agriculture Forestry None of these 12.Which of the following are the main causes of slow rate of growth of per capita income in India? I. High capital - output ratio 2. High rate of growth of population 3. High rate of capital formation 4. High level of fiscal deficits Answer: 1,2 2,3,4 1,4 All of the Above 13. Among Indian Economists who had done pioneering work on National Income? P. N. Dhar Jagdish Bhagwati Answer: V. K. R. V. Rao Prof. Shenoi 14.Which of the following is not a method of estimating national income? Income method Value - added method

Expenditure method Answer: Export - import method 15. In our country, which of the following affects poverty line the most? Level of prices Production quantum Answer: Per capita income Quantum of gold reserve 16.To know whether the rich are getting richer and the poor getting poorer, it is necessary to compare The availability of food grains among two sets of people, one rich and the other poor, over different periods of time Answer: The distribution of income of an identical set of income recipients in different periods of time The wholesale price index over different periods of time for different regions The distribution of income of different sets of income recipients at a point of time 17.The largest revenue in India is obtained from? Sales Tax Direct Taxes Answer: Excise Duties None of these 18.Which of the following is not true about vote on-account? Answer: It is a budget presented in the Parliament to cover the deficit left by the last budget. It does not allow the Government to set for the economic policies of the new plan which starts from April 1. It prevents the Government from imposing fresh taxes or withdrawing old one. This allows the Government to withdraw an amount for a period with the consent of Parliament. 19.Fresh evaluation of every item of expenditure from the very beginning of each financial year is called ? Fresh Budgeting Deficit Budgeting Performance Budgeting Answer: Zero-based Budgeting 20. Government imposes taxes to ? check the accumulation of wealth among the rich Answer: Run the machinery of state uplift weaker sections None of these 21.An ad valorem duty is a tax on the basis of Answer: the price of a commodity the value added the advertisement expenditure the unit of the commodity

22. The budget is presented to the Parliament on Answer: the last day of February 15th March the last day of March 1st April 23.The income tax in India is indirect and progressive direct and proportional Answer: direct and progressive indirect and proportional 24. Fiscal Policy is connected with Issue of currency exports and imports Answer: public revenue and expenditure None of these 25.Which of the following is not a direct tax? Wealth Tax Income Tax Estate Duty Answer: Sales Tax