List of top Economics Questions

“The Reserve Bank of India (RBI) is the sole authority for issuing currency notes in India, with an exception of ₹ 1 denomination that is issued by the Ministry of Finance.”

Do you agree with the given statement ? Explain the rationale behind the monopoly enjoyed by the Reserve Bank of India (RBI) on this front.

Define Balance of Payments (BoP) Account.

“Repo Rate and Bank Rate are two different measures, but a change in either of them may have the similar implication on the money supply in an economy.”

Defend or refute the given statement, giving valid explanation in support of your answer.

Estimate the value of ‘Income from Property and Entrepreneurship’ on the basis of the given data :

Liabilities for any firm are its debt/what it owes to others. Contrary to that, for a bank __________ are the main liability.

(Choose the correct option to fill in the blank)

Suppose, for a hypothetical economy, Reserve Ratio (RR) decreases from 25% to 20%, the total deposits would __________ to ₹ __________ , if primary deposits are ₹ 1,000.

(Choose the correct option to fill in the blanks)

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

Assertion (A) : Transfers from Abroad (remittances) are to be recorded on the credit side of capital account of Balance of Payments (BoP).

Reason (R) : All the transactions that lead to inflow of foreign currency from the rest of the world are recorded on the credit side of Balance of Payments (BoP).

Read the following statements carefully :

Statement I : Positive externalities refer to the benefits a firm/an individual provides to another for which they are paid.

Statement II : In case of positive externalities, Gross Domestic Product (GDP) of an economy might lead to an overestimation of the actual welfare.

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

An economy may operate at a level below full employment due to a deficiency in Aggregate Demand (AD) leading to a/an __________ employment equilibrium.

(i) Full

(ii) Over

(iii) Under

(Choose the correct option to fill in the blank)

Following are the steps to measure National Income (NNP_FC) by Value Added method :

(i) Calculate Domestic Income (NDP_FC) by subtracting Depreciation and Net Indirect Taxes from GDP_MP.

(ii) Estimate GDP_MP by adding GVA of each firm.

(iii) Estimate and add Net Factor Income from Abroad to NDP_FC to arrive at NNP_FC.

(iv) Identify and classify the production units into primary, secondary and tertiary sector.

The correct order of arrangement of steps would be :

(Choose the correct option)

Under the flexible exchange rate system, the exchange rate is determined by the __________ .

(i) Government

(ii) Demand and supply

(iii) Intervention of the Central Bank

(Choose the correct option to fill in the blank)

“The Ministry of Statistics and Programme Implementation (MoSPI) is underway to revise the base year of Gross Domestic Product (GDP). The base year is revised periodically to better capture the structural changes happening in the economy. The proposed new base year for the GDP is 2022 – 23.”

The step taken by the Government of India is for revision of __________ Gross Domestic Product (GDP), as it is measured at __________ prices.

(Choose the correct option to fill in the blanks)

Money supply is a __________ variable, as it refers to the total volume of money held by the __________ at a particular point of time.

(Choose the correct option to fill in the blanks)

With reference to the given diagram, OL indicates __________ .

(Choose the correct option to fill in the blank)

(i) Autonomous Consumption

(ii) Autonomous Investment

(iii) Induced Consumption

(iv) Induced Investment

Explain the Great Leap Forward campaign initiated by China.

Explain briefly the rationale behind the ‘License Raj’ under the Industrial Policy Resolution, 1956.

Explain disinvestment.

Explain the process of working of Investment Multiplier, for a hypothetical economy with Marginal Propensity to Consume (MPC) as 0.8 and Incremental Investment as ₹ 3,000 crore.

Explain the adjustment mechanism, if in an economy, ex-ante Savings are more than ex-ante Investments.

Explain any two precautions to be kept in mind while estimating National Income by the Value Added method.

On the basis of the given data, estimate the value of Gross National Product at Market Price (GNP_MP) :

“Liberty Indicators are considered important yardsticks for an economy, in the present times.”

Elaborate the meaning and importance of Liberty Indicators, in the light of the given statement.

Explain any two social development indicators prevailing during the colonial period.

Define Tariffs.

Explain any two precautions to be kept in mind while estimating National Income by the Expenditure method.