ECONOMY MCQS SET 64

ECONOMY MCQS SET 64

631) Government of India has completely eliminated negative list for less developed countries (LDCs) in South Asia Free Trade Area (SAFTA), except for two commodities, in order to encourage exports from SAARC LDC countries to India. The two commodities exempted are:
A) Coconut and arecanut
B) Beef and buffalo meat
C) Tobacco and alcohol
D) Palm oil and sugar
Answer:  Tobacco and alcohol
   
632) The purpose of the Fiscal Responsibility and Budget Management Act is, among other things:
A) to regulate government borrowing
B) to allow urban local bodies to incur debts
C) to make the state governments responsible for the implementation of central schemes
D) none of the above
Answer:  to regulate government borrowing
   
633) As the Indian economy develops, the share of agriculture in the GDP has been on the decline, touching around 18 per cent now.Still,agriculture is important in the economy of the country because:
A) India has traditionally been an agricultural economy
B) agriculture produces raw material for industries
C) agricultural sector is heavily subsidized
D) it employs more than 50 per cent of the people directly
Answer:  it employs more than 50 per cent of the people directly
   
634) The practice of monoculture is not favored in farming because:
A) it leads to a glut in production
B) it causes a fall in prices of farm produce
C) it is susceptible to diseases
D) it is not suited for small holdings
Answer:  it is susceptible to diseases
   
635) In India, monetization of the fiscal deficit is achieved through:
A) reducing public expenditure
B) printing new currency notes
C) increasing interest rates
D) borrowing by the government
Answer:  printing new currency notes

636) Our Constitution stipulates that the State shall ensure that the economic system does not promote concentration of wealth and means of production. This principle is enshrined in
A) Art.14
B) Art.39
C) Art.41
D) Art.19
Answer:  Art.39
   
637) Trickle Down Theory of Development' holds that;
A) global prosperity spreads to domestic economy
B) development spreads downwards through greater demand for labour
C) rate of growth of an economy is inversely proportional to the rates of taxation
D) none of the above
Answer:  development spreads downwards through greater demand for labour
   
638) Insider Trading is an offence under Indian laws. Who among the following will not, in the normal circumstances, be accused of insider trading?
A) A financial journalist covering a company
B) A director of the company
C) An auditor of the company
D) An employee of the company
Answer:  A financial journalist covering a company
   
639) Discomfort index is
A) a combination of longevity and literacy
B) a composite of standard of living and health indices
C) an index of cost of living
D) a composite of annual inflation and unemployment rate
Answer:  a composite of annual inflation and unemployment rate
   
640) Open Market Operations are:
A) activities of SEBI-registered brokers
B) selling of currency by RBI
C) issue of gilt-edged securities by the government
D) sale of shares by FIIs
Answer:  selling of currency by RBI