DAILY MCQS WITH EXPLANATIONS (20-06-23)

USEFUL FOR GROUP-I, II, III, IV (TSPSC / APPSC)

ENGLISH
1. Consider the following statements:
1. The responsibility of conducting socio-economic survey lie with the CSO.
2. The CSO is responsible for compilation of National Accounts
3. The NSSO conducts surveys on Consumer Expenditure, Employment-Unemployment, Social
Consumption, Manufacturing Enterprises and Service Sector Enterprises once in 10 years
4. The NSSO conducts surveys on Land and Livestock Holding and Debt and Investment once in
5 years
Which of the following statements are true?
a) 2 only b) 1,2,3 only c) 1,3,4 only d) 2,1 only
Answer: a
Explanation:
1. false, it is the NSSO that is responsible for conducting socio-economic surveys.
3. false, The NSSO conducts surveys on Consumer Expenditure, Employment-Unemployment,
Social Consumption, Manufacturing Enterprises and Service Sector Enterprises once in 10
years.
4. false, The NSSO conducts surveys on Land and Livestock Holding and Debt and Investment
once every decade

2. Consider the following statements:

1.Demerit goods have positive externalities.
2.Private goods have positive externalities.
3.Public goods are both rival and excludable.
4.Giffen goods have an increased demand as prices increase.
Which of the following statements are true?
a) 1,2,3 only b)2,3 only c) 4 only d) 2,4
Answer: c
Explanation: Public goods are non-rival in consumption, meaning one person's use does not diminish
its availability for others, and non-excludable, meaning everyone can use it, such as a park or
national defense.

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 Private goods are both rival in consumption, such as a club membership, and excludable,
such as a private house.
Demerit goods have negative externalities, such as cigarettes or alcohol, meaning they
impose costs on society beyond those who consume them.
Giffen goods may be seen as a symbol of status, and people may buy more of them as the
price increases.

3. Consider the following statements:

1. An increase in price of Veblen/Snob goods leads to a higher quantity demanded because
people perceive them to be of higher quality or status.
2. Substitute goods are goods that are used together
3. Luxury goods have an increased demand as income increases.
4. Complementary goods are goods used together
Which of the following statements are true?
A) 1,2 only b) 1,3,4 only
c) 2,3 only d) 3,4,1 only
Answer: b
Explanation: Veblen/Snob goods leads to a higher quantity People may believe more expensive
goods are better, leading to an increase in demand.
Substitute goods are alternatives to each other, such as tea and coffee.
Luxury goods are in higher demand as people's income increases, such as gold or designer
clothes.
Complementary goods are goods used together, such as a TV and a DVD player

4. Consider the following statements:

1. Capital goods are non-durable goods used in the production process.
2. pollution is considered as merit good while education is considered as demerit good
3. DVD and tv considered as complementary good
4. Consumer goods are goods that are purchased by their ultimate consumers for final use.
5. Final goods are items that have to undergone one or more stages of production or
transformation.
Which of the following statements are true?
a)1,2 only b) 3 only c) 1 only d) all the above
Answer: b
Explanation: Capital goods are durable and used in the production process.
pollution is considered as demerit good while education is considered as merit good

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 Final goods are items that are meant for final use and will not pass through any more stages
of production or transformation.
Consumer goods are those goods that are consumed when purchased by their ultimate
consumers, such as clothes, food, and electronics.

5) Which economist is associated with the idea of laissez-faire economics?

a) Adam Smith b) John Keynes
c) Both Adam Smith and John Keynes d) None of the above
Answer: a) Adam Smith
Explanation: Adam Smith, a classical economist, believed that if buyers and sellers can make
decisions based on individual self-interest, it automatically ensures the welfare of the
country. He believed that the state should not intervene in the economy.

6) Which event led to the need for state intervention in the economy at a macro level?
a) Industrial Revolution b) World War I
c) Great Depression d) Cold War
Answer: c) Great Depression
Explanation: The Great Depression of 1929 showed the limitations of laissez-faire economics and
the need for state intervention in the economy at a macro level to address unemployment
and stabilize the economy. John Keynes, a neoclassical economist, advocated for such state
intervention.

7) Which economic philosophy advocates for minimal state intervention in the economy?
a) Classical economics b) Neoclassical economics
c) Liberal economics d) Keynesian economics
Answer: c) Liberal economics
Explanation: Liberal economics, which includes classical and neoclassical economics, advocates for
minimal state intervention in the economy. The idea is that the market should be left to
regulate itself, and the state's role should be limited to protecting property rights, enforcing
contracts, and providing public goods.

8) Which organizations are associated with neoliberal policies?

a) IMF and World Bank b) UN and WTO
c) OPEC and G-20 d) Red Cross and Greenpeace
Answer: a) IMF and World Bank
Explanation: Neoliberalism is an economic philosophy that emphasizes free markets, privatization,
and deregulation. The International Monetary Fund (IMF) and the World Bank are two

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 organizations that promote neoliberal policies, such as structural adjustment programs that
require developing countries to adopt free-market policies in exchange for loans.
9) What is the difference between Nominal GDP and Real GDP?
a) Nominal GDP is adjusted for inflation, while Real GDP is not.
b) Nominal GDP is the current year production of goods and services, while Real GDP is
based on base year prices.
c) Nominal GDP is the value of goods and services produced within a country, while
Real GDP includes exports and excludes imports.
d) Nominal GDP is used to measure economic growth, while Real GDP is used to
measure inflation.
Answer: b) Nominal GDP is the current year production of goods and services, while Real GDP is
based on base year prices.
Explanation: Nominal GDP represents the value of goods and services produced in the present year
without considering inflation. On the other hand, Real GDP adjusts for inflation and is
calculated based on prices from a specific base year. Real GDP provides a more accurate
measure of economic growth over time.

10. Which economic theory believes that buyers and sellers making decisions based on
individual self-interest will automatically ensure the welfare of the country?
a) Socialism b) Keynesian economics
c) Classical economics d) Neoliberalism
Answer: c)
Explanation: Classical economics. Classical economics believes that individual self-interest in the
market will lead to the best allocation of resources and ultimately benefit society as a whole.

11. What are transfer payments?

a) Payments made to employees within an organization
b) Payments made to workers on transferring from one job to another
c) Payments made without any exchange of goods and services
d) None of the above
Answer: c)
Explanation: Payments made without any exchange of goods and services. Transfer payments refer
to payments made to individuals or groups without any exchange of goods or services.

12. What is the consumption of Fixed Capital known as?

A) Depreciation B) Capital Formation
C) Investment D) All of the above

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Answer: A
Explanation: Economically economically consumption of fixed capital, depreciation is best
described as a deduction from income to account for the loss in the capital value owning to
the use of capital goods in production

13. Which of the following is not a salient feature of Indian society?

a) Diversity of religions and cultures
b) Strong family and community values
c) Gender equality and women empowerment
d) Homogeneity of language and customs
Answer: d)
Explanation: Homogeneity of language and customs (India has a rich diversity of languages
and customs)

14. Which of the following is not a significant bottleneck in reaping India's demographic
dividend?
a) Inadequate education and skills training
b) Limited job opportunities
c) Poor healthcare and nutrition
d) Rapid population growth
Answer: d)
Explanation: Rapid population growth is not a significant bottleneck in reaping India's
demographic dividend

15. Which of the following indices is used to measure the severity of hunger and
undernutrition in a country?
a) Human Development Index b) Gender Development Index
c) Global Hunger Index d) Multidimensional Poverty Index
Answer: c)
Explanation: According to the Global Hunger Index (GHI) 2022, India has been ranked 107th
among 121 countries with a score of 29.1, placing it in the "serious" category. This
represents a concerning trend in India's hunger and malnutrition levels.

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