List of top Economics Questions

Distinguish between Net Factor Income from Abroad (NFIA) and Net Exports (X -- M).

Suppose for an economy, the government proposes a project for the construction of expressways with an incremental investment of ₹1,200 crore. Assuming 80% of the increase in income is spent on consumption. Estimate the following on the basis of the above information:

• Change in income (\(\Delta Y\))
• Change in consumption (\(\Delta C\))

Suppose, the saving curve of an economy makes an intercept at a negative value of ₹ 50 crores. In the economy, 20\% of an increase in income is saved.
In the light of the above context, identify the value of investment multiplier (K). (Choose the correct option)

Suppose in an economy, primary deposits are ₹ 500, if the Reserve Ratio is 25\%. Estimate the total deposits created and the total lending by the banking system.

Read the following text carefully and compare the impact of subsequent reforms initiated by China and India.
China underwent substantial policy changes to stimulate their economy. China's economic growth was rapid in the late 1970s across various sectors. However, India had to wait much longer for its economic transformation. India's significant economic progress was only realised after the economic reforms of 1991, which were implemented out of compulsion.
On the basis of given text and common understanding, compare the impact of subsequent reforms initiated by China and India.

Discuss briefly, causes and consequences of tax reforms taken by the Indian Government during economic reforms.

From the set of terms given in Column-I and Column-II, choose the correct pair:

Column-I	Column-II
(a) Non-tax Revenue	(ii) Free-rider
(b) Indirect Tax	(i) Goods and Services Tax
(c) Capital expenditure	(iii) Borrowings
(d) Private goods	(iv) Rivalrous in nature

"Taxation is an effective tool to reduce the inequalities of income." Justify the given statement with valid reasons.

Identify, which of the following is not to be considered while estimating Revenue Deficit of a country.

Suppose, the value of Average Propensity to Consume (APC) is 0.8 and National Income is ₹ 4,000 crores, the value of saving would be ₹ ____ crores. (Choose the correct option to fill up the blank)

"Import substitution policy, if not applied carefully, can be a double-edged sword for any economy."
Do you agree with the given statement? Justify your answer with valid arguments.

"Under the Ayushmaan Bharat Scheme, the government provides free medical treatment to the poorer section of the society.
"Identify and explain the nature of budget expenditure and its objective in the Ayushmaan Bharat Scheme statement.

To arrive at the value of Net Value Added at Market Price (NVA$_{MP}$), ....... must be ....... to/from Gross Value Added at Market Price (GVA$_{MP}$). (Choose the correct option to fill in the blanks)

"The Government had launched Incredible India Campaign to promote tourism in various parts of the country."
Elaborate the impact of Incredible India Campaign on foreign exchange reserves and Balance of Payment of India.

Distinguish between stabilising measures and structural measures, as taken up by the Government of India in 1991.