List of top Economics Questions

Read the following statements carefully: Statement 1: If in an economy the level of income increases (\( \Delta Y \)), it will always proportionately increase the level of consumption (\( \Delta C \)).
Statement 2: Marginal Propensity to Consume (MPC) and Marginal Propensity to Save (MPS) are always equal to each other.

Suppose, the Balance of Trade of an imaginary economy shows a favourable balance of Rs. 500 crore. The values of merchandise exports are Rs. 1200 crore and transfer payments are Rs. 400 crore.
The value of merchandise imports would be ______ .
(Choose the correct alternative to fill in the blank)

Suppose for a hypothetical economy:
\(C = 100 + 0.75Y\) (where \(C =\) Consumption and \(Y =\) Income)
\(I_0 = 400\) (\(I_0 =\) Autonomous Investment)
Value of Investment Multiplier (\(K\)) would be _________ .
(Choose the correct alternative to fill in the blank)

Surplus in Balance of Payments (BOP) refers to the excess of ______ .
(Choose the correct alternative to fill in the blank)

\[ \begin{array}{|c|c|c|c|} \hline \textbf{Round} & \textbf{Deposits} & \textbf{Loans (80\%)} & \textbf{Reserve Ratio (20\%)} \\ \hline I & 5000 & 4000 & \ldots(i)\ldots \\ \hline II & 4000 & \ldots(ii)\ldots & 800 \\ \hline \ldots & \ldots & \ldots & \ldots \\ \hline Total & \ldots(iii)\ldots & \ldots(iv)\ldots & 5000 \\ \hline \end{array} \]

Total consumption expenditure by households under Keynesian Economics is a combination of ________ and _____ .
(Choose the correct alternative to fill in the blanks)

Identify the incorrect feature(s) of money supply (\(M_1\)) from the following:
[(i)] It is measured at a point of time.
[(ii)] It does not include stock of money held by the government.
[(iii)] It is always the currency in the hands of the Central Bank of a nation.

(c) Elaborate any two strategies to ensure sustainable development as adopted by India.

(b) Explain any two functions performed by the Central Pollution Control Board (CPCB).

(a) State any two concerns owing to which the Central Pollution Control Board (CPCB) was established.

(b)(ii) State the importance of “Growth with equity” as the objective of Indian economic planning.

(b)(i) “Every coin has two sides — debate over farm subsidies is one such classic example of the same.”
Justify the given statement with two arguments each in favour of and against the continuation of the farm subsidies.

(a)(ii) Clarify how the Green Revolution enabled the government to procure sufficient food grains to build stocks to be used during times of food shortages.

(b) “In the current situation, Information Technology plays a vital role in achieving food security in a nation like India.”
Justify the given statement.

(a) State any two advantages of the micro-credit system of financing in rural areas of India.

(b)(ii) Mention any two examples of diversification activities in the non-agro processing industries.

(b)(i) Elaborate the need to promote women’s education in India.

(a)(ii) Worker–population ratio is an indicator, used for analyzing the employment situation in a nation.
State and elaborate whether the statement is true or false, with valid arguments.

(a)(i) In the recent past, the Government of India has taken crucial steps, like Jan-Dhan Yojana, for efficient allocation of financial resources.
State and elaborate whether the statement is true or false, with valid arguments.