EconomicsOnline Test
Indian Economy Model Test 3 in English
Indian Economy Model Test Questions 3 in English
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Question 1 |
TIDCO is the abbreviation of
Tamil Nadu Information Development Corporation Limited | |
Tamil Nadu Industrial Development Corporation Limited | |
Tamil Nadu Investment Development Corporation Limited | |
Tamil Nadu Information Development Control Limited |
Question 2 |
On which of the following do people of India spend most of their income?
Clothing | |
Food | |
Fuel and lighting | |
Household durables |
Question 3 |
Which of the following was not a characteristic of our economy at the time of Independence?
we were expecting capital goods | |
India was industrially under developed | |
Indian farmers were following primitive methods | |
none of these |
Question 4 |
Which of the following does not contribute to the development of the Indian economy?
Population growth | |
Rising Industrial output | |
Modern technology | |
Green Revolution |
Question 5 |
Which Government undertaking is responsible for the management of public steel plants in India?
SAIL | |
GAIL | |
ONGC | |
BHEL |
Question 6 |
A major irrigational project is one which covers the minimum area of
2000 hectares | |
5000 hectares | |
8000 hectares | |
10,000 hectares |
Question 7 |
Average size of land holding in India is
7 hectares | |
5 hectares | |
4 hectares | |
less than 2 hectares |
Question 8 |
Per capita income is calculated as
income of each state divided by its population | |
per head individual income divided by total population | |
gross national income divided by total population | |
total population multiplied by factor income |
Question 9 |
The minimum number of persons required to form primary co-operative society is
2 | |
6 | |
10 | |
25 |
Question 10 |
Multinational is
a joint venture at government level between more than two countries | |
a company making use of foreign countries | |
an enterprise operating in many countries | |
a joint venture at private level between more than two countries |
Question 11 |
Agricultural Income is exempted from
Sales Tax | |
Income Tax | |
neither Sales nor Income Tax | |
Local Tax |
Question 12 |
Land ceiling for a small farmer to avail subsidy from Tamil Nadu Government
2 hectares | |
3.5 hectares | |
5 hectares | |
2.5 hectares |
Question 13 |
Expand NABARD
National Bank for Agricultural and Research Development | |
National Bank for Agricultural and All India Rural Development | |
National Bank for Agriculture and Rural Financing | |
National Bank for Agriculture and Rural Development |
Question 14 |
Balance of Trade means
balance amount due to a foreign trader | |
balance amount due from a foreign dealer | |
the difference between the value of exports and imports | |
none of these |
Question 15 |
Consider the following statements:
- EXIM Policy refers to export and import
- EXIM Policy refers to export of Indian machineries
- EXIM Policy refers to import of capital goods
- IV.EXIM Policy refers to trade fairs in foreign countries
I alone is correct | |
I and II are correct | |
I, II and III are correct | |
All are correct |
Question 16 |
Based on investment which industrial unit is called a Small Scale unit?
Rs. 50 lakhs | |
Rs. 25 lakhs | |
Rs. 60 lakhs | |
Rs. 40 lakhs |
Question 17 |
How many Five year Plans have been implemented in India so far?
7 | |
8 | |
5 | |
4 |
Question 18 |
Who framed the fundamental principles of Taxation?
Adam Smith | |
Marshall | |
R.K. Shanmugam Chettiar | |
None of these |
Question 19 |
The main function of SIPCOT in Tamil Nadu is to
give only advice to entrepreneurs | |
provide balancing finance | |
provide raw materials | |
provide electricity |
Question 20 |
The condition of agriculture towards the national income of the country approximately is
58% | |
54% | |
45% | |
41% |
Question 21 |
The strategy for large scale industrialization was adopted for the first time in
First Plan | |
Second Plan | |
Fourth Plan | |
Fifth Plan |
Question 22 |
Which organization promotes trade?
STC | |
MMTC | |
ECGC | |
UNICEF |
Question 23 |
The profit which can be legally distributed to the shareholders of a company in the form of dividend is called
Secret Profit | |
Capital Profit | |
Divisible Profit | |
Correct Profit |
Question 24 |
If a single Director, his eligible share should be kept
2 months from the date of his appointment | |
Until he retires | |
At the time of appointment | |
None of these |
Question 25 |
Match List I with List II correctly and select your answer using the codes given below:
List I List II
- Kimbal D.S.and Kimbal (Jr) D.S. 1. Co-operatives
- Robert Owen 2. Scientific Management
- F.W.Taylor 3. Sole proprietorship
- Lord Lindley 4. Company
3 1 2 4 | |
1 3 4 2 | |
3 2 1 4 | |
2 4 3 1 |
Question 26 |
Consider the following statements:
- Assertion(A): As per the partnership Deed, a legal heir of decreased, Mr. A is admitted as partner.
- Reason(R): Mr.A is mad
Both (A) and (R) are true and (R) is the correct explanation of(A) | |
Both (A) and (R) are true and (R) is not the correct explanation of(A) | |
(A) is true , but (R) is false | |
(A) is false, but (R)is true |
Question 27 |
Distribution of free samples to the consumers is an example for
dealer promotion | |
sales force promotion | |
consumer promotion | |
trade promotion |
Question 28 |
The strategy of expansion of product line is called
Trading down | |
Expansion of product mix | |
Development of new uses for the existing products | |
Trading up |
Question 29 |
The promissory note, bill of exchange or cheque payable either to order or bearer is a
Government Instrument | |
Public Instrument | |
Negotiable Instrument | |
Foreign Instrument |
Question 30 |
An agreement with a minor is a
void contract | |
voidable contract | |
valid contract | |
none of these |
Question 31 |
Clearing house of Banks are normally held in
Bank of India | |
IDBI | |
Reserve Bank of India | |
State Co-operative Bank |
Question 32 |
Land Development Banks provide loans on
short term basis | |
medium term basis | |
long term basis | |
all basis |
Question 33 |
Sericulture Co-operative are concentrated in
Gujarat | |
Assam | |
Uttar Pradesh | |
Karnataka |
Question 34 |
Grapevine refers to
channel of formal communication | |
channel of informal communication | |
upward communication | |
downward communication |
Question 35 |
The functions of a modern office are classified into
basic and administrative | |
primary and secondary | |
traditional and modern | |
routine and changing |
Question 36 |
Who gave the concept of PODSCORB?
Lyndall Urwick | |
Luther Gullick | |
Ralph Davis | |
Peter F. Drucker |
Question 37 |
Which of the following accounts is prepared to find out the cost of good produced?
Trading Account | |
Manufacturing Account | |
Profit and loss Account | |
Balance Sheet |
Question 38 |
Refusing the payment of a cheque is called
Endorsement | |
Special crossing | |
Dishonor | |
Standing instruction |
Question 39 |
Which of the following is the leading Export item among Indian Plantation crops?
Coffee | |
Rubber | |
Spices | |
Tea |
Question 40 |
The apex institution in the field of industrial finance is
RBI | |
IDBI | |
IFC | |
ICICI |
Question 41 |
Among the following, which is not a mere cause for inflation?
Increase in money supply | |
Increase in Government expenditure | |
Deficit financing | |
Over-production |
Question 42 |
Reason for high birth rate is
the average age of marriage among females is low | |
depressed agriculture | |
lack of industrial development | |
family planning |
Question 43 |
Balance of trade refers to
value of invisible items of export and import | |
export surplus | |
value of visible items of export and import | |
value of visible and invisible items of export and import |
Question 44 |
Government of India appointed the Monopolies inquiry Commission under the Chairmanship of
Mahalanobis | |
K.C. Dasgupta | |
Nehru | |
Indira Gandhi |
Question 45 |
The essential part of a general crossing is
cross lines of the cheque | |
three parallel lines | |
two parallel lines | |
four parallel lines |
Question 46 |
The Central Bank of our country is
Central Bank of India | |
State Bank of India | |
Indian Bank | |
Reserve Bank of India |
Question 47 |
Match List I with List II correctly and select your answer using the codes given below:
List I List II
- Dutt Committee(1969) 1. Industrial Licensing
- Wanchoo Committee(1971) 2. Direct taxes
- Raj Mannar Committee(1971) 3. Centra-State Fiscal Realations
- Chakravarthy Committee(1985) 4. Monetary System
4 3 2 1 | |
1 2 4 3 | |
1 2 3 4 | |
4 1 3 2 |
Question 48 |
Unfavorable balance to trade means
export is equal to import | |
export is less than import | |
export is greater than import | |
none of these |
Question 49 |
“Supply Creates its Own Deman”. Who said this?
Keynes | |
Ricardo | |
Say | |
Mill |
Question 50 |
Consider the following statements
- Assertion(A): Per capita income is low in India
- Reason(R): There is very low population in India
Both (A) and (R) are true and (R) is the correct explanation of(A) | |
Both (A) and (R) are true and (R) is not the correct explanation of(A) | |
(A) is true , but (R) is false | |
(A) is false, but (R)is true |
Question 51 |
The plan holiday period was
1965-67 | |
1966-69 | |
1967-70 | |
1968-71 |
Question 52 |
IDBI stands for
Industrial Development Bank of India | |
Indian Development Bank of Industries | |
Indian Domestic Bank of Industries | |
none of these |
Question 53 |
Current A/C in a bank is normally opened by
individuals | |
business firms | |
salaried persons | |
none of these |
Question 54 |
The need-hierarchy theory motivation is given by
Maslow | |
Herzberg | |
McGregor | |
Vroom |
Question 55 |
Stock exchange deals with the
second hand securities | |
issue of shares | |
issue of debentures | |
none of these |
Question 56 |
Sacrificing ratio is used at the time of
admission of a partner | |
retirements of a partner | |
death of a partner | |
dissolution of a firm |
Question 57 |
UTI is associated with
banking trade | |
foreign trade | |
road transport | |
investment trust |
Question 58 |
Long term solvency is indicated by
rate of return | |
liquid ration | |
debt equity ratio | |
capital gearing ratio |
Question 59 |
Inflation is beneficial to
debtor | |
creditor | |
both debtor and creditor | |
none of these |
Question 60 |
The main aim of monetary policy into
control smuggling | |
eradicate tax evasion | |
regulate production | |
regulate money supply |
Question 61 |
The international liquidity problem is attended by
UNO | |
IMF | |
Central Bank | |
Nationalized Bank |
Question 62 |
Match List I with List II correctly and select your answer using the codes given below:
List I List II
- Consumption 1. Perfect Competition
- Production 2. Rent
- Market 3. Utility
- Distribution 4. Scale
2 3 4 1 | |
3 4 1 2 | |
1 2 3 4 | |
4 1 2 3 |
Question 63 |
Which is the other name given to the average revenue curve?
Profit curve | |
Average cost curve | |
Demand curve | |
Indifference curve |
Question 64 |
Which is the oldest Scale Industry in India?
Cotton Industry | |
Sugar Industry | |
Jute Industry | |
Iron and Steel Industry |
Question 65 |
In India disguised unemployment prevails in
Agricultural sector | |
Industrial sector | |
Transport sector | |
Trade sector |
Question 66 |
Wheat is not suitable for growing in South India because of
winter are too warm | |
low rainfall | |
early summer | |
poor soil condition |
Question 67 |
The second Five year Plan gave importance to
Agriculture Development | |
Industrial Development | |
Social Development | |
Transport and Communication Development |
Question 68 |
Which one of the following Five Year Plan recognized human development as the core of all development efforts?
The Third Five Year Plan | |
The Fifth Five Year Plan | |
The Sixth Five Year Plan | |
The Eighth Five Year Plan |
Question 69 |
The system of Indian economy is
capitalist | |
mixed economy | |
socialist | |
none of these |
Question 70 |
In which Five Year Plan eradication of poverty was main theme?
First | |
Second | |
Fourth | |
Fifth |
Question 71 |
How many Nationalised Banks are therein India?
6 | |
14 | |
20 | |
21 |
Question 72 |
Product differentiation is a special feature of
Monopoly | |
Perfect Competition | |
Monopolistic Competition | |
None of these |
Question 73 |
When was NABARD formed?
1982 | |
1992 | |
1972 | |
1962 |
Question 74 |
Who is connected with Laissez Faire?
Adam Smith | |
Kissinger | |
Keynes | |
Ricardo |
Question 75 |
As per capita income increase, the share of agriculture in labour force
decreases | |
increases | |
remains constant | |
first increases and then decreases |
Question 76 |
Human capital formation refers to the process of
increasing the number of people | |
physical growth of capital | |
increasing knowledge, skills and capacities of people of the country | |
providing more facilities to the people |
Question 77 |
Who were the recipients of Nobel Prize in Economics?
J.E. Meade and Bertil Ohlin | |
Ragnar Myrdal and Jan Tinbergen | |
Gunnar Myrdal and Koopman | |
J.R.Hicks and Paul Samuelson |
Question 78 |
Unemployment which occurs when workers move from one job to another job is known as
seasonal unemployment | |
frictional unemployment | |
technological unemployment | |
cylical unemployment |
Question 79 |
Which of the following is not positively relevant to growth?
technology | |
population growth | |
natural resources | |
size of the country |
Question 80 |
The weakest economic group in India is represented by
Industrial workers | |
Small and marginal farmers | |
Landless laboures | |
Women workers |
Question 81 |
The aim of the economics planning should be
to increases the National income | |
to increases the Per capita income | |
to improve standard of living of the people | |
all of these |
Question 82 |
The First Five Year Plan was based on
Harrod-Domar model | |
Friedman model | |
Rostow model | |
Mahalanobis model |
Question 83 |
The most serious problem of India is
unemployment, not poverty | |
Poverty, not unemployment | |
underemployment ,not poverty | |
stagnation, not poverty |
Question 84 |
The percentage of the Indian urban population below the poverty line in 1989-90 was
17% | |
18% | |
19% | |
21% |
Question 85 |
India’s agriculture after Independence
has improved steadily and has become fairly advanced | |
has improved only marginally and has created problems for the country | |
has shown very good progress | |
has recorded progress comparable to that of the advanced countries |
Question 86 |
Inequalities in product per worker in under developed countries are perhaps
less than in developed countries | |
more than in developed countries | |
the same as in developed countries | |
nothing is known |
Question 87 |
Development is impossible without
incentive to profit | |
foreign aid | |
savings | |
inflation |
Question 88 |
Developing countries rely on Industry
to grow rapidly | |
to train labour and absorb it into high paying jobs | |
for reasons of security and national pride | |
for all these |
Question 89 |
Per capita income rises when
GNP and population both increase at the same rate | |
GNP and population both remain constant | |
GNP increases faster than population | |
GNP increases slower than population |
Question 90 |
Under development is the result of
economic factors | |
social factors | |
political factors | |
economic, social and political factors all together |
Question 91 |
A closed economy is the one which
does not permit emigration | |
does not immigration | |
does not permit foreign trade | |
does not permit domestic trade |
Question 92 |
The First Five Year Plan formulated in the year
1947 | |
1950 | |
1951 | |
1956 |
Question 93 |
Who appoints the auditor of a Joint Stock company?
Government | |
Directors | |
Share holders | |
None of these |
Question 94 |
Duration of the Eighth Five Year Plan is
1990-95 | |
1991-96 | |
1992-97 | |
1993-98 |
Question 95 |
Which of the following is not an employment programme?
National Rural Development Programme | |
Integrated Rural Development Programme | |
Jawahar Rozgar Yojana | |
Training of Rural Youth for Self employment |
Question 96 |
The expansion of abbreviation IADP is
Internal Agricultural Development | |
intensive Agricultural District Programme | |
Indian Agricultural Development Programme | |
Agricultural Development Programme based on Industrial atmospheres |
Question 97 |
Which one of the following is correctly matched?
Rabinson - Population theory | |
Malthus - Economic theory | |
Adam Smith - Father of Economics | |
Karl Marx - A Famous Economist |
Question 98 |
Consider the following statements:
- Assertion(A): rice is the major crop in Tamil Nadu
- Reason(R): People of Tamil Nadu eat rice in large quantity
Both (A) and (R) are true and (R) is the correct explanation of(A) | |
Both (A) and (R) are true and (R) is not the correct explanation of(A) | |
(A) is true , but (R) is false | |
(A) is false, but (R)is true |
Question 99 |
What is Deficit Financing?
Expenditure exceeding the Revenue | |
The means of financing the deficit | |
Revenue exceeding the expenditure | |
None of these |
Question 100 |
The main feature of our new economic policy is
foreign investment | |
foreign trade | |
foreign technology | |
foreign cosmetics |
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