30 Days Revision Module Day 12 - Economy I (UPSC Prelims 2021)

1) Consider the following statements with reference to Public Expenditure

1. The expenditure incurred on the purchase of defence equipment will come under the category of Capital expenditure
2. The grant in aids given during disaster and natural calamities to all foreign countries constitute as Revenue expenditure

Which of the statements given above is/are correct?

2) Which one of the following correctly reflects the meaning of the term “Fiscal Slippage”?

3) Consider the following statements, with reference to Gig economy

1. In a gig economy, jobs are permanent and flexible in nature
2. The gig economy tends to be costlier but efficient in nature

Which of the statement given above is/are correct?

4) With reference to ‘Angel tax’ sometimes seen in the news, which one of the following is the main purpose of the angel tax?

5) Which of the following are not among the key identifying characters of tax havens?

6) Consider the following statements regarding the Human Development Index (HDI)

1. It is prepared by the United Nations Development Programme (UNDP).
2. The real per capita income adjusted for the Purchasing Power Parity (PPP) is given more weightage than the other two parameters.

Which of the statements given above is/are correct?

7) Which of the following funds is a part of Public Account of India?

1. Provident fund
2. Interest from loans
3. Small saving schemes
4. National investment fund
5. Surcharge on Income tax

Select the correct answer using the code given below

8) A higher Gross National Product in comparison to Gross Domestic Product may imply which of the following with respect to the Indian economy?

9) Which of the following fiscal measures of government will lead to reduction in inflation?

1. Reduction in government borrowing
2. Reduction in government spending.
3. Reduction in government tax collection

Select the correct answer using the codes given below

10) Which of the following is exempted for calculating National Income in India?

1. Allowances by the Government for unemployed youths.
2. Money transferred for education by a father to his son.
3. Remittances from a husband from UAE to his wife.

Select the correct answer using the codes given below

11) Consider the following statements regarding Disinvestments

1. It is the sale of shares of PSUs without change in ownership.
2. RBI sells the shares in stock exchanges on behalf of the government.
3. Money from sale of shares goes to Consolidated Fund of India.

Which of the statements given above is/are correct?

12) What is Tax expenditure?

13) Under public debt of India, which among the following will not be included under internal debt?

14) The reduction in personal disposable income which results from tax rates not being adjusted for inflation. It is termed as

15) The government has identified champion sectors in order to focus on improving India's manufacturing capabilities. Which of the following is/are identified as Champion sectors?

1. Construction

2. Railways

3. Shipping

Select the correct code

16) Consider the following statements regarding criteria for classification of micro, small and medium enterprises

1. The composite criteria include Investment in Plant & Machinery/equipment and Annual Turnover.
2. There will be no difference between manufacturing and service sectors

Which of the given statements above is /are correct?

17) Consider the following statements regarding Securities Transaction Tax

1. It is an indirect tax
2. It is a financial transaction tax levied on transactions done by Indians on foreign stock exchanges

Which of the statements given above is/are correct?

18) Consider the following:

1. Product method
2. Expenditure method
3. Export-Import method
4. Income method

Which of the above are the methods of estimating national income of India?

19) Quantitative Easing involves which of the following?

1. Buying of government securities by the Central Bank from the market
2. Short-term interest rates approaching near zero level
3. Printing of new currency

Select the correct answer using the code given below

20) Which one of the following is generally regarded as the true index of economic growth?