SawaalBoxसवाल बॉक्स

Indian Economy

621 questions asked in UPSC Prelims.

1997 · Q84Indian EconomyHuman Development, Poverty & Employment Schemesmoderate

Match List I with List II and select the correct answer by using the codes given below the lists: List I I. Rashtriya Mahila Kosh II. Mahila Samriddhi Yojana III. Indira Mahila Yojana IV. Mahila Samakhya Programme List II A) Empowerment of women B) Education for Women’s Equality C) Promotion of savings among rural women D) Meeting credit needs of the poor women Codes:

  1. (a)I-C, II-B, III-A, IV-D
  2. (b)I-A, II-C, III-D, IV-B
  3. (c)I-D, II-C, III-A, IV-B
  4. (d)I-D, II-A, III-B, IV-C
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Official answer(c) I-D, II-C, III-A, IV-B

1997 · Q92Indian EconomyInternational Trade & WTOmoderate

Assertion (A): The emergence of economic globalism does not imply the decline of socialist ideology. Reason (R): The ideology of Socialism believes in universalism and globalism. In the context of the above two statements, which one of the following is correct?

  1. (a)Both A and R are true and R is the correct explanation of A
  2. (b)Both A and R are true, but R is not a correct explanation of A
  3. (c)A is true, but R is false
  4. (d)A is false, but R is true
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Official answer(a) Both A and R are true and R is the correct explanation of A

1996 · Q21Indian EconomyFiscal Policy & Budgetmoderate

The following Table shows the percentage distribution of revenue expenditure of Government of India in 1989-90 and 1994-95: (Heads: Defence, Interest Payments, Subsidies, Grants to States/UTs Other) Based on this table, it can be said that the Indian economy is in poor shape because the Central Government continues to be under pressure to

  1. (a)reduce expenditure of defence
  2. (b)spend more and more on interest payments
  3. (c)reduce expenditure on subsidies
  4. (d)spend more and more as grants-in-aid to State Governments/Union Territories
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Official answer(b) spend more and more on interest payments

1996 · Q27Indian EconomyEconomic Planning & Five-Year Plansmoderate

Which one of the following is correct regarding stabilization and structural adjustment as two components of the new economic policy adopted in India?

  1. (a)Stabilization is a gradual, multi-step process while structural adjustment is a quick adaptation process
  2. (b)Structural adjustment is a gradual, multi-step process, while stabilization is a quick adaptation process
  3. (c)Stabilization and structural adjustment are very similar and complementary policies. It is difficult to separate one from the other
  4. (d)Stabilization mainly deals with a set of policies which are to be implemented by the Central Government while structural adjustment is to be set in motion by the State Governments
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Official answer(b) Structural adjustment is a gradual, multi-step process, while stabilization is a quick adaptation process

1996 · Q31Indian EconomyInternational Trade & WTOmoderate

Assertion (A): An important policy instrument of economic liberalization is reduction in import duties on capital goods. Reason (R): Reduction in import duties would help the local entrepreneurs to improve technology to face the global markets. In the context of the above two statements, which one of the following is correct?

  1. (a)Both A and R are true and R is the correct explanation of A
  2. (b)Both A and R are true and R is not a correct explanation of A
  3. (c)A is true but R is false
  4. (d)A is false but R is true
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Official answer(a) Both A and R are true and R is the correct explanation of A

1996 · Q34Indian EconomyExternal Sector & Balance Of Paymentsmoderate

One of the important goals of the economic liberalisation policy is to achieve full convertibility of the Indian rupee. This is being advocated because

  1. (a)convertibility of the rupee will stabilize its exchange value against major currencies of the world
  2. (b)it will attract more foreign capital inflow in India
  3. (c)it will help promote exports
  4. (d)it will help India secure loans from the world financial markets at attractive terms
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Official answer(c) it will help promote exports

1996 · Q40Indian EconomyInternational Trade & WTOmoderate

Which of the following were the aims behind the setting up of the World Trade Organization (WTO)? I. Promotion of free trade and resource flows across countries. II. Protection of intellectual property rights. III. Managing balanced trade between different countries. IV. Promotion of trade between the former East Bloc countries and the western world. Select the correct answer by using the codes given below:

  1. (a)I, II, III and IV
  2. (b)I and II
  3. (c)II and III
  4. (d)I and IV
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Official answer(b) I and II

1996 · Q51Indian EconomyExternal Sector & Balance Of Paymentseasy

Hawala transactions relate to payments

  1. (a)received in rupees against overseas currencies and vice versa without going through the official channels
  2. (b)received for sale/transfer of shares without going through the established stock exchanges
  3. (c)received as commission for services rendered to overseas investors/buyers/sellers in assisting them to get over the red tape and/or in getting preferential treatment
  4. (d)made to political parties or to individuals for meeting election expenses
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Official answer(a) received in rupees against overseas currencies and vice versa without going through the official channels

1996 · Q65Indian EconomyAgriculture & Rural Developmentmoderate

In India, rural incomes are generally lower than the urban incomes. Which of the following reasons account for this? I. A large number of farmers are illiterate and know little about scientific agriculture. II. Prices of primary products are lower than those of manufactured products. III. Investment in agriculture has been low when compared to investment in industry.

  1. (a)I only
  2. (b)I and II only
  3. (c)I and III only
  4. (d)I, II and III
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Official answer(a) I only

1996 · Q70Indian EconomyNational Income & Economic Growthmoderate

Assertion (A): Though India’s national income has gone up several fold since 1947, there has been no marked improvement in the per capita income level. Reason (R): Sizeable proportion of the population of India is still living below the poverty line. In the context of the above two statements which one of the following is correct?

  1. (a)Both A and R are true and R is the correct explanation of A
  2. (b)Both A and R are true but R is not a correct explanation of A
  3. (c)A is true but R is false
  4. (d)A is false but R is true
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Official answer(b) Both A and R are true but R is not a correct explanation of A

1996 · Q89Indian EconomyInternational Institutions & Reportsmoderate

Consider the following statements: Most international agencies which fund development programmes in India on inter-governmental bilateral agreements mainly provide I. Technical assistance. II. Soft loans which are required to be paid back with interest. III. Grants, not required to be paid back. IV. Food assistance to alleviate poverty. Of these statements —

  1. (a)I and IV are correct
  2. (b)I, II and III are correct
  3. (c)I, II and IV are correct
  4. (d)III and IV are correct
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Official answer(b) I, II and III are correct

1996 · Q140Indian EconomyExternal Sector & Balance Of Paymentsmoderate

The changing composition of the export trade is indicative of structural transformation of Indian economy in favour of modernisation. The best indicator of the trend is the

  1. (a)relative share of petroleum products in exports
  2. (b)decline in the share of agricultural products in exports
  3. (c)constant share of ores and minerals in exports
  4. (d)increase in the share of manufactured products in exports
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Official answer(d) increase in the share of manufactured products in exports