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Indian Economy Test
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Indian Economy Test 25
Read Instructions for the test.
Negative marks are -0.33 per wrong answer
Right answer is 1 mark
No time limit but finish in 30 mins
Solution can be found at below chapters:
Test series is based on following chapters.
Indian Economy Chapter 18: MICROECONOMICS
Indian Economy Chapter 19: INDIAN BUDGET 2017
Monopoly of the buyer but multiple sellers present.
Entry closed for other buyers
Seen where government wants to make a defense related purchase and multiple sellers are bidding for it.
Q2: Buyer is price maker under which market:
Q3: Seller is price maker in which market goals
b and c
Q4:Economic cost is the summation of
Q5: Which is true ?
Economic cost is accounting cost plus opportunity cost.
Explicit cost is needed for hiring or purchasing, implicit cost is incurred from own land or capital
normal profit is seen in monopolistic competition / perfect competition whereas abnormal profit is seen in monopsony, monopoly and oligopoly.
Q6: Which are true ?
Social cost is economic cost plus external cost
External cost is externalities like damage to environment done by the venture.
Q7:Which is true ?
Total cost is sum of total fixed costs and total variable costs.
Fixed costs are taxes, rents, license fee, depreciation
Variable costs are salary of casual workers, raw materials etc.
Q8:Which is true ?
Primary wants are food, shelter, clothing and secondary wants are comfort and luxury.
Consumption - Using goods and services to satisfy wants..
Q9:Which is true ?
Utility - Satisfying power of a good or service. Marginal utility is the maximum price a consumer is willing to pay.
Production - Making goods or services that have utility. Marginal price of production is minimum profit a producer expects.
Demand - Willingness to buy a good at a certain price at a certain time.
Q10:Agenda for 2017 - 18 is
Faster, sustainalbe, inclusive growth
Transform, Energize and Clean India
Q11: Features of the budget 2017-2018 are
No distinction between plan and non plan expenditure.
Advancing in Budget date of presentation by 1 month to ensure departments get to spend from start of financial year.
Merger of railways and General budget.
Q12: Dairying projects sanctioned in budget are
‘Nakul Swasthya Patra
Q13: Schemes of budget 2017-18 include
RAPID (Revenue, Accountability, Probity, Information and Digitisation)
E-Assessment of tax to be the focus with minimum inconvenience to taxpayers.
Q14:TRANSPARENCY IN ELECTORAL FUNDING is done by
All parties can accept cash donation of Rs. 2000 maximum and above this donations shall be in digital mode or cheque/DD.
Political parties must file returns if they wish to avail of tax exemption.
Electoral bonds can be issued by RBI
Q15: Steps taken in budget 2017 include
Foreign Investment Promotion Board to be abolished in 2017 - 18 and further liberalisation of FDI policy is under consideration
Rashtriya Rail Sanraksha Kosh will be created with a corpus of Rs. 1 lakh crores over a period of 5 years
Q16: Coach Mitra is
to register all coach related complaints and requirements to be launched
coach cleaning service
Skill Acquisition and Knowledge Awareness for Livelihood Promotion
Software Acquisition and Knowledge Awareness for Livelihood Promotion
Skill Acquisition and traditional Knowledge Awareness for Livelihood Promotion
Q18: Infrastructure tag given to Low cost housing means
Real estate developers can get access to low cost, long term funding
shall ensure that the price of construction also comes down.
Q19: Negatives of budget 2017 are
The twin balance sheet problem of banks and corporates wasn’t considered in the budget.
The budget did not allocate finances for recapitalizing banks.
Q20: When a government can’t meet its expenditure from its income it has to borrow and this borrowing is the ?
Q21:Public Sector Asset Rehabilitation Agency is an
asset reconstruction company
Q22: Reasons why we need a PARA:
Asset reconstruction companies are too small to solve large cases.
Bankruptcy code isn’t yet fully in place.
Since large borrowers have many lenders there is a coordination problem between them and a centralized agency needed.
Q23: How a PARA would help:
The agency would buy the bad loans from the banks and then work to resolve them
PARA shall allocate the responsibility for the losses and take action.
Bad loan problem shall be solved as effectively as possible.
Q24: Contract farming” law ?
shall allow farmers to enter into long term contracts for production and marketing
integrate farmers better with the market
Q25: e-National Agriculture Market is
a spot exchange market
commodities can be sold by farmers to buyers from around the country
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