Ref: GAT1002202 GENERAL AWARENESS TEST Time: 15 min.

(Economics)
Directions for questions 1 to 50: Select the correct alternative from the given choices.

1. ‘Poverty line’ is determined by _____ 10. Bad loans, in banking terminology are generally
(A) Housing and clothing habits of the people known as _____.
(B) General health of the people (A) CBS (B) PLR
(C) Income of the Family (C) NPAs (D) CRR
(D) Per Capita Calories intake
11. The incidence of poverty is the highest for
2. Which of the following is a direct method of reducing (A) Business people
economic inequalities? (B) regular wage and salaried employees
(A) Wealth tax (C) Self employees
(B) Estate duty (D) Casual workers
(C) Ceiling on Land holding
(D) Capital gains tax 12. Divisible tax revenue is shared by centre and the
state on the basis of recommendations of
3. Privatization in India implies _____
(A) RBI
(A) denationalization of Nationalized industries
(B) allowing private investment in new areas (B) Niti Aayog
(C) reducing government equities in PSUs (C) Finance Commission
(D) All the above (D) Parliament

4. The Lorenz curve shows the relationship between 13. The main objective of ‘monetary policy’ in general
(A) wages, labour hours and leisure is to regulate _____.
(B) unemployment and inflation (A) Private banks in the country
(C) population groups and their respective income (B) The stock Market
shares (C) Money supply in the Economy
(D) asset creation and income generation (D) the bullion Market

5. The largest component of Gross National Product 14. Which of the following is a measure of solvency of
(GNP) is a bank?
(A) Investment (A) Bank Rate
(B) Net exports (B) Repo Rate
(C) Government purchase of good and services (C) Capital Adequacy Ratio
(D) Consumption (D) Cash Reserve Ratio
6. The way of listing receipts and payments in International
15. In closed Economy
transactions of a country is called
(A) both imports and exports are positive
(A) Balance of payments
(B) both imports and exports are zero
(B) capital account
(C) Exports are positive, and imports are zero
(C) current account
(D) International capital flow (D) Exports are zero and imports are positive

7. The largest component of subsidy to the agriculture 16. Which one of the following is a source of non-tax
sector in India is revenue for government?
(A) output subsidy (A) Excise duty on beverages
(B) power subsidy (B) Entrance fee to museums
(C) Fertilizer subsidy (C) Import duty on cars
(D) Irrigation subsidy (D) Octroi at check points on Roads

8. What is a sunrise industry? 17. Which of the following is the highest form
(A) A non-polluting industry of economic integration among different nations?
(B) An export oriented industry (A) Common market (B) Customs Union
(C) A large power producing industry (C) Free Trade Area (D) Economic Union
(D) An industry which is in its infancy but is growing
at a rapid pace 18. Who among the following promoted the wage goods
model in Indian economic planning?
9. Which of the following is credit money? (A) P.C Mahalanobis
(A) Bills of exchange (B) Vakil and Bramhananda
(B) Promissory notes (C) A.K Sen
(C) Bank drafts (D) Harrod-Domar
(D) All the above
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19. The Mahalanobis model was developed for which 29. ‘Demonstration effect’ deals with
of the following plans? (A) imitation of consumption habits of others
(A) Fourth Five-year plan (B) effect of entertainment
(B) Third Five-year plan (C) imitating effect of consumption
(C) First Five-year plan (D) effect of advertisement
(D) Second Five-year plan
30. ‘Value added’ means value of
(A) Out put at factors cost
20 Gresham’s Law is in Economics is associated with (B) Output at market prices
(A) Capital Investment and Disinvestment (C) Goods and services less depreciation
(B) Demand and Supply (D) Goods and services less cost of intermediate
(C) Circulation of Money good and services
(D) Distribution of goods and services
31. Which one of the following agencies in India
21. Among the different types of budget deficits, in India is responsible for computation of national income?
the larger one is _____. (A) RBI
(A) Primary deficit (B) NITI Aayog
(B) Budget deficit (C) N.S.S. O
(C) Fiscal deficit (D) C.S. O
(D) Revenue deficit
32. The term SDRs (Special Drawing Rights) is associated
22. Which of the following committees was setup with which of the following?
to review the concept of poverty line? (A) IBRD (B) IDA
(A) R.C Dutt Committee (C) IFC (D) IMF
(B) Wanchoo Committee
(C) S. Chakravarty Committee 33. Which one of the following is not included while
(D) Lakdawala Committee estimation of national income through income
method?
23. Consumer surplus is largest in (A) Retirement Pensions
(A) Perfect competition (B) Mixed Income
(B) Single-price monopoly (C) Undistributed profits
(C) Monopolistic competition (D) Rental income
(D) Discriminating monopoly
34. Unemployment resulting from industrial
24. Which index is the basis for measuring inflation reorganization is termed as
in our country? (A) Frictional unemployment
(A) Wholesale Price Index (WPI) (B) Structural Unemployment
(B) Retail Price Index (RPI) (C) Cyclical Unemployment
(C) Consumer Price Index (CPI) (D) Open Unemployment
(D) Stock Market Indices
35. Giffen paradox occurs, when income effect is
(A) less than the substitution effect
25. ‘Sinking Fund’ is associated with
(B) negative and is greater than the substitution
(A) Public debts
effect
(B) Public expenditure
(C) equal, to the substitution effect
(C) Public money
(D) greater than the substitution effect
(D) None of the above
36. Import quota is a/an
26. ‘Mixed Economy’ means
(A) Non-tariff trade barrier
(A) Combination of advanced and back ward
(B) Concession
economics
(C) Tariff
(B) Combination of public and private sectors
(D) International obligation
(C) Combination of traditional and modern sectors
(D) Combination of agriculture and industries
37. Which of the following Institutions is considered as
‘soft loan window?
27. In India, which one among the following formulates (A) IFC (B) IDA
the fiscal policy? (C) IBRD (D) IMF
(A) Ministry of Finance
(B) Finance Commission 38. Food for work programme was introduced during the
(C) RBI
(A) Seventh plan (B) Sixth plan
(D) Planning Commission (C) Fifth plan (D) Fourth plan
28. Stoppage of a currency note or a coin from
39. Presently ‘SEBI’ is a
circulation by the Reserve Bank of India is known as
(A) Advisory body
(A) disinvestment. (B) Constitutional body
(B) demonetisation. (C) Non-statutory body
(C) Liquidity Adjustment Facility. (D) Statutory body
(D) depreciation.
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40. The basis of determining dearness allowance 46. ‘Depreciation’ is the loss of value of
to employees in India is (A) Final goods
(A) per capita income (B) Consumer goods
(B) Standard of living (C) Capita Stock
(C) National income (D) Fixed Assets
(D) Consumer price Index
47. Excess of total expenditure over total receipts
41. Disinvestment Commission in India was first is known as
established in (A) Fiscal deficit
(A) August 1996 (B) Revenue deficit
(B) August 1992 (C) Budget deficit
(C) July 1998 (D) Financial deficit
(D) December 1994
48. A situation in which the value of money is rising,
42. The regulator of capital markets in India is _____. i.e. prices are falling is know as
(A) SEBI (B) RBI (A) Stagnation
(C) FMC (D) IRDA (B) Disinflation
(C) Deflation
43. NABARD gives loans directly to (D) Inflation
(A) petty traders
(B) village artisans 49. The criteria of HDI in UNDP was developed by
(C) small farmers (A) B.S Minhas
(D) None of the above (B) A.K Sen
(C) Ravallion
(D) Mahabub Ul Haq
44. Who suggested the ‘Rolling plan’ for backward
countries?
50. Kinked Demand Curve is a feature of
(A) Rodan
(A) Oligopoly
(B) Nurkse
(B) Monopoly
(C) Gunnar Myrdal
(C) Duopoly
(D) T.R Malthus
(D) Monopsony
45. ‘Zero base’ budgeting means
(A) No credit and no debit budget
(B) Starting initially with minimum reserves
(C) No deficit in budget
(D) A fresh budget prepared from root

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