List of top Economics Questions

Read the following text carefully :

“A country’s total National Income (NI) at the end of the year is ₹ 80,000 crore. During the same year, the Gross Domestic Product (GDP) increased by ₹ 10,000 crore. The depreciation on capital goods was ₹ 2,000 crore and National savings at the end of year is ₹ 15,000 crore. Additionally, country invested ₹ 8,000 crore in new capital goods industries.”

In the light of above text, categorise the items as ‘stock’ or ‘flow’ variables with valid arguments.

Explain the likely impacts of the ‘Make in India’ policy initiated by Government of India on the Balance of Payments (BoP) of India (assuming all other factors constant).

State the meaning of Balance of Payment (BoP) surplus and deficit.

The value of Nominal Gross National Product (GNP) of an economy was ₹ 2,500 crore in a particular year. The value of Gross National Product (GNP) of that country during the same year, estimated at the prices of base year was ₹ 3,000 crore.

“The price level has risen between the base year and the year under consideration.” Defend or refute the statement with suitable argument.

The value of Nominal Gross National Product (GNP) of an economy was ₹ 2,500 crore in a particular year. The value of Gross National Product (GNP) of that country during the same year, estimated at the prices of base year was ₹ 3,000 crore.

Estimate the value of Gross National Product (GNP) deflator (in percentage).

Sumit deposited ₹ 10 lakh in his savings account. The deposits made by him is a part of __________ in the M₁ measure of money supply.

(Choose the correct option to fill in the blank)

“When initial deposits in the credit creation process remains same, the total amount of credit created rises as the value of money multiplier increases.”

Defend or refute the above statement with the help of hypothetical numerical example.

Read the following statements – Assertion (A) and Reason (R). Choose the correct option from those given below :

Assertion (A) : Increase in exchange rate implies that the price of foreign currency in terms of domestic currency has increased.

Reason (R) : Balance of trade records the inflows and outflows of foreign exchange.

Calculate compensation of employees from the data given below :

Read the following statements carefully :

Statement 1 : Brokerage earned by a dealer of second hand cars is included in the estimation of National Income.

Statement 2 : Imputed value of production for self-consumption is included in National Income.

In the light of the above given statements, choose the correct option from the following :

The Aggregate Demand (AD) curve lies parallel to consumption curve, indicating that both have __________.

(Choose the correct option to fill in the blank)

Income generated from Aircrafts of Air India operating between Canada and England would be added to the domestic income (NDP_FC) of __________.

(Choose the correct option to fill in the blank)

“The Industrial Sector has performed poorly in the reform period (1991).”

Justify the given statement with valid argument.

Explain any two objectives which British intend to achieve through their policy of infrastructure in India.

For a hypothetical economy, assuming there are only two firms (X and Y) with equal values of Gross Value Added (GVA). On the basis of the following data, estimate the values of Domestic sales of firm X :

Income of an economy increased from ₹ 50,000 to ₹ 1,00,000 crore. Savings of the economy increased from ₹ 5,000 crore to ₹ 20,000 crore.

Draw appropriate conclusion regarding the behaviour of Average Propensity to Save (APS) as his income increases.

Income of an economy increased from ₹ 50,000 to ₹ 1,00,000 crore. Savings of the economy increased from ₹ 5,000 crore to ₹ 20,000 crore.

Calculate Average Propensity to Consume (APC) and Average Propensity to Save (APS) before and after the rise in Income.

Income of an economy increased from ₹ 40,000 to ₹ 1,00,000 crore. Savings of the economy increased from ₹ 4,000 crore to ₹ 20,000 crore.

Draw appropriate conclusion regarding the behaviour of Average Propensity to Save (APS) as his income increases.

Income of an economy increased from ₹ 40,000 to ₹ 1,00,000 crore. Savings of the economy increased from ₹ 4,000 crore to ₹ 20,000 crore.

Calculate Average Propensity to Consume (APC) and Average Propensity to Save (APS) before and after the rise in income.

For a hypothetical economy, assuming there are only two firm (X and Y) with equal values of Gross Value Added (GVA).

On the basis of the following data, estimate the values of Domestic Sales by firm X :

“Employment in the formal sector guarantees better income and social benefits compared to informal sector job.”

Defend or refute the above statement with valid reason and example.

State and explain any two changes which were observed in India’s occupational structure during the British Rule.

‘Strategic sale of a public sector undertaking and minority sale of their shares are methods of disinvestment.’ Defend or refute the given statement with valid argument.

“In the post-independence era, India adopted a protective tariff policy.”

Do you agree with the given statement ? Justify your answer with any two valid arguments.

Discuss briefly, how bilateral trade agreements are different from multilateral trade agreements ?