Economics Question Bank For FYJC Application based Test

Q.1 A) CHOOSE THE CORRECT OPTION(S): (1 mark each)

1) Factors of production include the following:
a) Land
b) Technology
c) Labour
d) Capital
Options :1) a, b and c 2) b, c and d 3) a ,c and d 4) all of these
2) Arrange in the order of evolution of money:
a) Metallic money
b) Animal money
c) Metallic coins
d) Commodity money
Options: 1) a, b, c, d 2) b, d, a, c 3) d, c, a, b 4) c, a, b, d
3) The value which is repeated maximum number if times is known as :
Options: 1) median 2) mean 3) mode 4) average
4) Problems in Agricultural sector includes:
a) Decreasing average land holding.
b) Dispute amongst family member.
c) Increasing number of marginal farmers.
d) Lack of capital.
Options: 1) a, b and c 2) a, c and d 3) b and c 4) a and b
5) Rural development helps to _______
a) Reduce gender disparity
b) Meet diverse needs of rural women
c) Encourage woman participation in community development
d) Safeguard rights of socially disadvantaged groups
Options: 1) a, c, d 2) a, c, d 3) a, b, c, d 4) None of the above
6) Remedies undertaken to check population explosion.
a) To provide employment
b) To improve women’s quality of life
c) National Population Policy
d) Disaster management
Options: 1) Only d 2) a and c 3) c and d 4) a, b, and c
7) Which of the following(s) is a cause of unemployment?
a) Increasing in labour force
b) Religion preference
c) Seasonal nature of agriculture
d) Migration of Rural People
Options: 1) a, b and c 2) a, c and d 3) b and c 4) a and b
 8) A person who is unable to consume 2400 and 2100 calories per day he is said to be:
a) Rural Poor
b) Absolute Poor
c) Relative Poor
d) Urban Poor
Options: 1) a, and d 2) a, c and d 3) a ,b, c and d 4) a and b
9) Measures taken under Liberalization component include(s):
a) De-licensing
b) Trade without permission
c) Reform in FERA
d) Removal of MRTP
Options: 1) a, and b 2) b and c 3) c and d 4) a, c and d
10) Functions of NITI Aayog Include:
a) Shared National Agenda
a) Decentralised planning
b) Monitoring and EvaluatioN
c) Punish Defaulter state
Options: 1) a, and c 2) a, b and c 3) a, and b 4) a, b, and d

B) FIND THE ODD ONE: (1 mark each)

1) Production, distribution, saving, exchange.
2) Stability, portability, indivisibility, cognizability
3) Quartile, Decile, Percentile, Median.
4) Agro tourism, textiles, food tourism, safaris.
5) Credit from relative’s, banks, agent’s, Friends.
6) First stage, second stage, third stage, fourth stage.
7) Waste of human resource, Poverty, Income Inequality, Helplessness.
8) Ration Card- White, Green, Saffron, Yellow.
9) Liberalisation, Privatisation, Demonetisation, Globalisation.
C) COMPLETE THE CORELATION: (1m each)
1) Economic growth: quantitative :: economic development: qualitative.
2) Divisibility: smaller denomination :: Portability : easy to carry from one place to another.
3) Health : Social Infrastructure :: Energy : Economic infrastructure.
4) Rural Industries: industrial sector: accounting services: Service sector
5) Birth rate : Fertility rate :: Death rate: Mortality rate.
6) Seasonal Unemployment : Tourism Guide : Educated Unemployment : Graduate.
7) FERA : Regulating Foreign Trade ; FEMA : Managing Foreign Trade.
8) N.I : National Income ; PCI : Per Capita Income.

D) GIVE ECONOMIC TERMS: (1m each)

1) Study of aggregates covering the entire economy. Macroeconomic
2) Money not accounted for in the bank and not disclosed to government. Black Money
3) The sector which consists of insurance, tourism, retail banking and education. Service Sector
4) The type of credit used for personal consumption ad unrelated to production. Unproductive Loan
5) Difference between birth rate and death rate. Survival Rate
6) Unemployment resulting due to fluctuation in the level of business activity. Cyclical
Unemployment
7) Poverty judged on the basis of relative standards of living of the people. Relative Poverty
8) Freedom of investment to other nation. Globalisation

E) ASSERTION AND REASONING QUESTIONS : (1m each)

1) Assertion (A) : Literacy is a powerful instrument of socio-economic change.
Reasoning (R) : Empowerment of women helps to reduce gender disparity.
Options:
1) (A) is True, but (R) is False
2) (A) is False, but (R) is True
3) Both (A) and (R) are True and (R) is the correct explanation of (A)
4) Both (A) and (R) are True but (R) is not the correct explanation of (A)
2) Assertion (A) : Agricultural credit is mostly for unproductive purposes.
Reasoning (R) : Agricultural credit is an important pre-requisite for agricultural growth.
Options :
1) (A) is true, but (R) is false
2) (A) is False, but (R) is True
3) Both (A) and (R) are True but (R) is the correct explanation of (A)
4) Both (A) and (R) are True but (R) is not the correct explanation of (A)

3) Assertion (A) : Non-institutional finance forms an important part of rural credit.

Reasoning (R) : Small farmers are unable to access bank credit because of borrower unfriendly
products.
Options :
1) (A) is True, but (R) is False
2) (A) is False, but (R) is True
3) Both (A) and (R) are True and (R) is the correct explanation of A
4) Both (A) and (R) are True, but (R) is not the correct explanation of A

4) Assertion (A) : Poverty level declines with a rise in agricultural output.

Reasoning (R) : Agricultural incomes have declined due to wide fluctuations in climatic
conditions.
Options :
1) (A) is True, but (R) is False.
2) (A) is False, but (R) is True.
3) Both (A) and (R) are True and (R) is the correct explanation of (A).
4) Both (A) and (R) are True, but (R) is not the correct explanation of (A).

5) Assertion (A) : Relative poverty is found in all the countries of the world.
Reasoning (R) : Differences in the levels of income is the only criteria for judging relative
poverty.

Options :
1) (A) is True, but (R) is False.
2) (A) is False, but (R) is True.
3) Both (A) and (R) are True and (R) is the correct explanation of (A).
4) Both (A) and (R) are True, but (R) is not the correct explanation of (A).

6) Assertion (A) : Poverty is not just lack of money but also lack of capabilities.
Reasoning (R) : Lack of freedom to satisfy hunger, lack of health care facilities, denial of political
freedom leads to poverty.
Options :
1) (A) is True, but (R) is False.
2) (A) is False, but (R) is True.
3) Both (A) and (R) are True and (R) is the correct explanation of (A).
4) Both (A) and (R) are True, but (R) is not the correct explanation of (A).
 7) Assertion (A) Delicensing of industries was an important step taken under liberalization.
Reasoning (R) Unwanted controls and restrictions led to economic stagnation prior to 1991.
Options:
1) (A) is TRUE but (R) is FALSE
2) (A) is FALSE but (R) is TRUE
3) (A) and (R) both are TRUE and (R) is the correct explanation of (A)
4) (A) and (R) both are TRUE but (R) is not the correct explanation of (A)

8) Assertion (A): In 1990-91, India faced an acute shortage of foreign exchange reserves.
Reasoning (R) Import quotas and tariffs led to an increase in the imports.
Options:
1) (A) is TRUE but (R) is FALSE
2) (A) is FALSE but (R) is TRUE
3) (A) and (R) both are TRUE and (R) is the correct explanation of (A)
4) (A) and (R) both are TRUE but (R) is not the correct explanation of (A)

9) Assertion (A) Due to Globalisation, a country cannot achieve self- sufficiency in food production.
Reasoning (R) Globalisation has created a revolution in IT sector.
Options:
1) (A) is TRUE but (R) is FALSE
2) (A) is FALSE but (R) is TRUE
3) (A) and (R) both are TRUE and (R) is the correct explanation of (A)
4) (A) and (R) both are TRUE but (R) is not the correct explanation of (A)