EconomicsOnline Test

Indian Economy Model Test 3 in English

Indian Economy Model Test Questions 3 in English

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

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close
Close