Question : Which part of the Constitution of India deals with Fundamental Rights?
Part III
Part II
Part IV
Part V
Correct Answer : Part III
Question : Who is the ex-officio Chairman of the Rajya Sabha?
President of India
Vice-President of India
Prime Minister of India
Speaker of the Lok Sabha
Correct Answer : Vice-President of India
Question : The Directive Principles of State Policy in the Indian Constitution were inspired mainly by the Constitution of which country?
Ireland
Canada
Australia
France
Correct Answer : Ireland
Question : Which Article of the Indian Constitution guarantees equality before law and equal protection of laws?
Article 12
Article 14
Article 16
Article 18
Correct Answer : Article 14
Question : The minimum age required to become a member of the Lok Sabha is:
21 years
25 years
30 years
35 years
Correct Answer : 25 years
Question : Which Constitutional Amendment introduced the Anti-Defection Law in India?
42nd Amendment
44th Amendment
52nd Amendment
61st Amendment
Correct Answer : 52nd Amendment
Question : The power of the Supreme Court to issue writs for the enforcement of Fundamental Rights is provided under:
Article 32
Article 136
Article 226
Article 368
Correct Answer : Article 32
Question : Which of the following is NOT a Fundamental Right under the Constitution of India?
Right to Equality
Right to Freedom
Right to Property
Right against Exploitation
Correct Answer : Right to Property
Question : A Money Bill can be introduced in the Lok Sabha only with the prior recommendation of the:
President
Prime Minister
Speaker of the Lok Sabha
Finance Minister
Correct Answer : President
Question : Who appoints the Comptroller and Auditor General of India?
Prime Minister
President
Parliament
Chief Justice of India
Correct Answer : President
Question : The concept of judicial review in the Indian Constitution is primarily based on the constitutional system of:
United States of America
United Kingdom
Ireland
South Africa
Correct Answer : United States of America
Question : Which Schedule of the Constitution contains provisions relating to the allocation of seats in the Rajya Sabha?
Third Schedule
Fourth Schedule
Fifth Schedule
Seventh Schedule
Correct Answer : Fourth Schedule
Question : Under which Article can the President of India proclaim a National Emergency on the ground of war, external aggression or armed rebellion?
Article 352
Article 356
Article 360
Article 365
Correct Answer : Article 352
Question : Which body recommends the distribution of the net proceeds of certain taxes between the Union and the States?
Finance Commission
Election Commission
Planning Commission
Union Public Service Commission
Correct Answer : Finance Commission
Question : The 73rd Constitutional Amendment is primarily associated with:
Urban local government
Panchayati Raj institutions
Fundamental Duties
Cooperative societies
Correct Answer : Panchayati Raj institutions
Question : Which of the following constitutional authorities is appointed for a fixed term of six years or until attaining the age of 65 years, whichever is earlier?
Comptroller and Auditor General
Chief Election Commissioner
Chairman of UPSC
Attorney General of India
Correct Answer : Chairman of UPSC
Question : If the President of India returns a non-Money Bill passed by Parliament for reconsideration and Parliament passes it again, the President:
Can return it again
Must give assent
May refer it to the Supreme Court
Can withhold assent permanently
Correct Answer : Must give assent
Question : Which Fundamental Duty was added to the Constitution by the 86th Constitutional Amendment?
To protect the environment
To develop scientific temper
To provide opportunities for education to children between 6 and 14 years
To safeguard public property
Correct Answer : To provide opportunities for education to children between 6 and 14 years
Question : Which of the following is a feature of the parliamentary form of government in India?
Fixed executive tenure independent of the legislature
Collective responsibility of the Council of Ministers to the Lok Sabha
Complete separation between executive and legislature
Direct election of the Prime Minister
Correct Answer : Collective responsibility of the Council of Ministers to the Lok Sabha
Question : The procedure for amendment of the Constitution is primarily laid down in:
Article 123
Article 280
Article 324
Article 368
Correct Answer : Article 368
Question : Gross Domestic Product (GDP) measures the:
Total wealth owned by citizens of a country
Market value of final goods and services produced within a country during a given period
Total government expenditure during a year
Total exports minus total imports
Correct Answer : Market value of final goods and services produced within a country during a given period
Question : Which institution is the central monetary authority of India?
Securities and Exchange Board of India
Reserve Bank of India
NITI Aayog
Finance Commission
Correct Answer : Reserve Bank of India
Question : Inflation refers to:
A sustained rise in the general price level
A sustained fall in the general price level
A fall in money supply only
An increase in exports only
Correct Answer : A sustained rise in the general price level
Question : Which of the following is included in the primary sector of the Indian economy?
Banking
Agriculture
Manufacturing
Transport
Correct Answer : Agriculture
Question : Fiscal deficit is broadly defined as the excess of:
Total expenditure over total receipts excluding borrowings
Revenue receipts over revenue expenditure
Exports over imports
Tax revenue over non-tax revenue
Correct Answer : Total expenditure over total receipts excluding borrowings
Question : Which of the following is a direct tax?
Goods and Services Tax
Customs duty
Income tax
Excise duty
Correct Answer : Income tax
Question : When the Reserve Bank of India purchases government securities in the open market, the immediate effect is generally to:
Reduce liquidity in the banking system
Increase liquidity in the banking system
Increase the tax burden
Reduce government expenditure
Correct Answer : Increase liquidity in the banking system
Question : Which of the following is a component of the current account of India's Balance of Payments?
Foreign direct investment
Foreign exchange reserves
Export and import of goods
External commercial borrowings
Correct Answer : Export and import of goods
Question : Disguised unemployment is most commonly associated with:
Agriculture
Banking
Information technology
Heavy manufacturing
Correct Answer : Agriculture
Question : If the nominal GDP of an economy is ₹220 lakh crore and the GDP deflator is 110, the real GDP at base-year prices is:
₹180 lakh crore
₹200 lakh crore
₹210 lakh crore
₹242 lakh crore
Correct Answer : ₹200 lakh crore
Question : Which of the following would most directly reduce the money multiplier, other things remaining equal?
Increase in the cash reserve ratio
Decrease in the cash reserve ratio
Increase in currency held by banks
Decrease in the statutory liquidity ratio
Correct Answer : Increase in the cash reserve ratio
Question : The term 'repo rate' refers to the rate at which:
Commercial banks lend to their customers
The Reserve Bank lends short-term funds to commercial banks against eligible securities
The government lends money to the Reserve Bank
Commercial banks lend to one another for long-term periods
Correct Answer : The Reserve Bank lends short-term funds to commercial banks against eligible securities
Question : Which of the following best describes a progressive tax?
The tax rate decreases as income increases
The tax rate remains identical for all income levels
The proportion of income paid as tax increases as income increases
Only indirect taxes are included
Correct Answer : The proportion of income paid as tax increases as income increases
Question : Which institution replaced the Planning Commission of India?
Finance Commission
NITI Aayog
National Development Council
Inter-State Council
Correct Answer : NITI Aayog
Question : A persistent increase in the general price level accompanied by a decline in the purchasing power of money is known as:
Deflation
Inflation
Disinflation
Stagflation
Correct Answer : Inflation
Question : Which of the following is considered a capital receipt of the government?
Income tax collection
Fees and fines
Borrowings
Interest received on loans
Correct Answer : Borrowings
Question : In national income accounting, depreciation refers to:
Increase in the value of capital goods
Consumption of fixed capital due to wear and tear and obsolescence
Increase in household savings
Reduction in government expenditure
Correct Answer : Consumption of fixed capital due to wear and tear and obsolescence
Question : If the price of a commodity rises while consumers' income and prices of other goods remain unchanged, the purchasing power of their income with respect to that commodity will generally:
Increase
Decrease
Remain exactly unchanged
Become zero
Correct Answer : Decrease
Question : Which of the following is NOT a function of money?
Medium of exchange
Measure of value
Store of value
Determination of rainfall
Correct Answer : Determination of rainfall
Question : Which type of unemployment occurs when workers are temporarily unemployed while moving from one job to another?
Structural unemployment
Frictional unemployment
Seasonal unemployment
Disguised unemployment
Correct Answer : Frictional unemployment
Question : Which Article of the Indian Constitution deals with the abolition of untouchability?
Article 15
Article 17
Article 19
Article 21
Correct Answer : Article 17
Question : Who has the power to dissolve the Lok Sabha?
President
Prime Minister
Speaker of the Lok Sabha
Chief Justice of India
Correct Answer : President
Question : Which of the following is NOT a feature of the Indian federal system?
Written Constitution
Division of powers
Independent judiciary
Dual citizenship
Correct Answer : Dual citizenship
Question : The President of India is elected by:
Members of both Houses of Parliament only
Elected members of Parliament and elected members of State Legislative Assemblies
All members of Parliament and State Legislatures
Direct vote of the people
Correct Answer : Elected members of Parliament and elected members of State Legislative Assemblies
Question : Which writ is issued by a court to produce a person who has been unlawfully detained?
Mandamus
Certiorari
Habeas Corpus
Quo Warranto
Correct Answer : Habeas Corpus
Question : The Council of Ministers is collectively responsible to:
The President
The Rajya Sabha
The Lok Sabha
The Supreme Court
Correct Answer : The Lok Sabha
Question : Which Schedule of the Constitution deals with the division of powers between the Union and the States?
Fifth Schedule
Sixth Schedule
Seventh Schedule
Ninth Schedule
Correct Answer : Seventh Schedule
Question : The voting age in India was reduced from 21 years to 18 years by which Constitutional Amendment?
42nd Amendment
44th Amendment
61st Amendment
73rd Amendment
Correct Answer : 61st Amendment
Question : Which of the following can be abolished by an ordinary law of Parliament?
Lok Sabha
Rajya Sabha
State Legislative Council
Supreme Court
Correct Answer : State Legislative Council
Question : The Attorney General of India has the right to:
Vote in either House of Parliament
Participate in the proceedings of Parliament without the right to vote
Dissolve the Lok Sabha
Preside over the Rajya Sabha
Correct Answer : Participate in the proceedings of Parliament without the right to vote
Question : Which constitutional body conducts elections to Parliament and State Legislatures?
Finance Commission
Election Commission of India
Union Public Service Commission
Inter-State Council
Correct Answer : Election Commission of India
Question : The Fundamental Duties are included in which part of the Constitution?
Part III
Part IV
Part IVA
Part V
Correct Answer : Part IVA
Question : Which of the following subjects is included in the Union List?
Police
Public health
Defence
Agriculture
Correct Answer : Defence
Question : A joint sitting of the two Houses of Parliament is presided over by:
The President
The Vice-President
The Speaker of the Lok Sabha
The Chairman of the Rajya Sabha
Correct Answer : The Speaker of the Lok Sabha
Question : Which Article empowers the Supreme Court to review its own judgments?
Article 137
Article 143
Article 145
Article 147
Correct Answer : Article 137
Question : The term 'Zero Hour' in the Indian Parliament refers to:
The first hour of a parliamentary sitting
The period immediately following Question Hour when members raise matters without prior listing
The last hour of a parliamentary sitting
The period during which Parliament remains adjourned
Correct Answer : The period immediately following Question Hour when members raise matters without prior listing
Question : Which of the following is the largest source of tax revenue for the Union Government among the listed taxes?
Income tax
Corporation tax
Goods and Services Tax
Customs duty
Correct Answer : Goods and Services Tax
Question : The term 'repo rate' is used in the context of:
Fiscal policy
Monetary policy
Trade policy
Industrial policy
Correct Answer : Monetary policy
Question : Which of the following is an example of a public good?
Private car
Street lighting
Personal computer
Packaged food
Correct Answer : Street lighting
Question : Balance of trade is the difference between:
Total capital inflows and capital outflows
Exports and imports of goods
Government revenue and expenditure
Savings and investment
Correct Answer : Exports and imports of goods
Question : If the Reserve Bank of India increases the Cash Reserve Ratio, the lending capacity of commercial banks will generally:
Increase
Decrease
Remain unchanged
Become unlimited
Correct Answer : Decrease
Question : Which of the following is counted while calculating India's GDP?
Sale of second-hand goods
Unpaid household services
Final goods and services produced within the country
Transfer payments such as pensions
Correct Answer : Final goods and services produced within the country
Question : Stagflation is characterized by:
High inflation and high unemployment
Low inflation and high employment
Deflation and high economic growth
High growth and zero inflation
Correct Answer : High inflation and high unemployment
Question : Which of the following is a qualitative instrument of monetary policy?
Bank Rate
Open Market Operations
Credit rationing
Cash Reserve Ratio
Correct Answer : Credit rationing
Question : An increase in government expenditure without a corresponding increase in taxation is most likely to:
Reduce aggregate demand
Increase aggregate demand
Eliminate inflation automatically
Reduce money supply automatically
Correct Answer : Increase aggregate demand
Question : Which of the following is included in the secondary sector?
Fishing
Mining
Manufacturing
Banking
Correct Answer : Manufacturing
Question : Human capital formation primarily refers to:
Accumulation of physical machinery
Development of people's skills, knowledge and health
Increase in the quantity of money
Expansion of government buildings
Correct Answer : Development of people's skills, knowledge and health
Question : If the marginal propensity to consume is 0.75, the simple expenditure multiplier is:
2
3
4
5
Correct Answer : 4
Question : Which of the following would be recorded as a credit item in India's Balance of Payments?
Imports of goods
Payment of freight to foreign companies
Exports of goods
Purchase of foreign assets by Indian residents
Correct Answer : Exports of goods
Question : Which of the following best explains the concept of opportunity cost?
The total monetary cost of producing a commodity
The value of the next best alternative foregone when a choice is made
The difference between fixed and variable costs
The cost incurred only by the government
Correct Answer : The value of the next best alternative foregone when a choice is made
Question : Which Article of the Constitution provides for the establishment of a Supreme Court of India?
Article 124
Article 129
Article 131
Article 136
Correct Answer : Article 124
Question : The Fundamental Right to freedom of speech and expression is guaranteed under:
Article 14
Article 19
Article 21
Article 25
Correct Answer : Article 19
Question : Who decides whether a bill is a Money Bill or not?
President of India
Prime Minister
Speaker of the Lok Sabha
Chairman of the Rajya Sabha
Correct Answer : Speaker of the Lok Sabha
Question : Which of the following is NOT included in the Preamble to the Constitution of India?
Justice
Liberty
Equality
Federalism
Correct Answer : Federalism
Question : The power to grant pardons, reprieves, respites or remissions of punishment in certain cases is vested in the:
Prime Minister
President
Chief Justice of India
Speaker of the Lok Sabha
Correct Answer : President
Question : Which Constitutional Amendment is associated with the addition of the words "Socialist", "Secular" and "Integrity" to the Preamble?
24th Amendment
42nd Amendment
44th Amendment
73rd Amendment
Correct Answer : 42nd Amendment
Question : The Governor of a State is appointed by:
Chief Minister of the State
President of India
State Legislature
Prime Minister directly
Correct Answer : President of India
Question : Which of the following is a constitutional emergency under Article 356?
Financial Emergency
National Emergency
President's Rule in a State
War Emergency
Correct Answer : President's Rule in a State
Question : The maximum strength of the Rajya Sabha as provided in the Constitution is:
238
245
250
252
Correct Answer : 250
Question : Which of the following authorities can establish a Finance Commission?
President of India
Parliament
Reserve Bank of India
Union Cabinet
Correct Answer : President of India
Question : The right to constitutional remedies primarily enables citizens to:
Vote in elections
Approach courts for enforcement of Fundamental Rights
Acquire government employment
Amend the Constitution
Correct Answer : Approach courts for enforcement of Fundamental Rights
Question : Which of the following is an example of a federal feature of the Indian Constitution?
Single citizenship
Integrated judiciary
Division of legislative powers between Union and States
Appointment of Governors by the President
Correct Answer : Division of legislative powers between Union and States
Question : The Eleventh Schedule of the Constitution is associated with:
Municipalities
Panchayats
Languages
Tribal areas
Correct Answer : Panchayats
Question : Which of the following is the minimum age prescribed for election as President of India?
25 years
30 years
35 years
40 years
Correct Answer : 35 years
Question : The President can promulgate an Ordinance when:
Parliament is not in session
The Lok Sabha is dissolved permanently
The Supreme Court permits it
The Prime Minister requests it during a parliamentary session
Correct Answer : Parliament is not in session
Question : Which of the following taxes is collected by the Union but distributed between the Union and the States according to constitutional provisions?
Income tax
Property tax
Entertainment tax
Agricultural income tax
Correct Answer : Income tax
Question : National income is generally calculated by aggregating the value of:
Only agricultural output
Final goods and services produced in an economy, subject to the chosen national-income measure
Only manufactured goods
Only government services
Correct Answer : Final goods and services produced in an economy, subject to the chosen national-income measure
Question : Which of the following is a non-tax revenue receipt of the government?
Corporation tax
Income tax
Fees and fines
Customs duty
Correct Answer : Fees and fines
Question : The term 'deflation' refers to:
A persistent increase in the general price level
A persistent decrease in the general price level
A temporary increase in the price of one commodity
An increase in money supply
Correct Answer : A persistent decrease in the general price level
Question : Which of the following is an instrument of fiscal policy?
Open Market Operations
Bank Rate
Government taxation
Cash Reserve Ratio
Correct Answer : Government taxation
Question : When the demand for a commodity changes by a larger percentage than the change in its price, the demand is said to be:
Perfectly inelastic
Inelastic
Elastic
Unitary inelastic
Correct Answer : Elastic
Question : Which of the following is generally regarded as a component of the capital account of the Balance of Payments?
Exports of merchandise
Imports of services
Foreign direct investment
Remittances for current consumption
Correct Answer : Foreign direct investment
Question : If the Reserve Bank of India sells government securities in the open market, the immediate effect is generally to:
Increase liquidity in the banking system
Decrease liquidity in the banking system
Increase currency printing
Reduce the statutory tax rate
Correct Answer : Decrease liquidity in the banking system
Question : Which of the following best describes a recession?
A sustained period of exceptionally high economic growth
A significant decline in economic activity
A permanent increase in exports
A rise in the general price level only
Correct Answer : A significant decline in economic activity
Question : The Gross Value Added (GVA) of an industry is broadly equal to:
Value of output minus intermediate consumption
Value of output plus intermediate consumption
Intermediate consumption minus value of output
Exports minus imports
Correct Answer : Value of output minus intermediate consumption
Question : Which of the following would most likely increase aggregate demand, other things remaining equal?
Increase in income tax rates
Decrease in government expenditure
Increase in government expenditure
Decrease in exports
Correct Answer : Increase in government expenditure
Question : A market structure in which there is only one seller of a commodity is called:
Perfect competition
Monopolistic competition
Oligopoly
Monopoly
Correct Answer : Monopoly
Question : Which of the following is an example of indirect taxation?
Income tax
Corporate income tax
Goods and Services Tax
Wealth tax
Correct Answer : Goods and Services Tax
Question : If the nominal interest rate is 8% and the inflation rate is 5%, the approximate real interest rate is:
3%
5%
8%
13%
Correct Answer : 3%
Question : Which of the following measures is most directly associated with poverty estimation based on the ability to meet a specified minimum level of consumption?
Poverty line
Balance of trade
Fiscal deficit
GDP deflator
Correct Answer : Poverty line
Question : Which Article of the Constitution of India guarantees protection of life and personal liberty?
Article 14
Article 19
Article 21
Article 32
Correct Answer : Article 21
Question : The Directive Principles of State Policy are:
Justiciable and enforceable by courts
Non-justiciable but fundamental in the governance of the country
Applicable only during emergencies
Enforceable only by Parliament
Correct Answer : Non-justiciable but fundamental in the governance of the country
Question : Which of the following is the final authority to interpret the Constitution of India?
Parliament
President
Supreme Court
Election Commission
Correct Answer : Supreme Court
Question : The Speaker of the Lok Sabha submits their resignation to the:
President of India
Prime Minister
Deputy Speaker of the Lok Sabha
Chairman of the Rajya Sabha
Correct Answer : Deputy Speaker of the Lok Sabha
Question : Which of the following subjects is included in the State List?
Defence
Foreign affairs
Police
Banking
Correct Answer : Police
Question : The President of India can be removed from office by:
A simple majority of Parliament
Impeachment by Parliament
The Supreme Court directly
The Union Council of Ministers
Correct Answer : Impeachment by Parliament
Question : Which of the following is NOT a constitutional body?
Election Commission of India
Finance Commission
Union Public Service Commission
NITI Aayog
Correct Answer : NITI Aayog
Question : The concept of single citizenship in India means that:
Every person has both Indian and State citizenship
A person is a citizen only of the State in which they reside
Citizenship is exclusively Indian, not separately of individual States
Only government employees have Indian citizenship
Correct Answer : Citizenship is exclusively Indian, not separately of individual States
Question : Which Article provides for the formation of a new State or alteration of the boundaries of existing States?
Article 1
Article 2
Article 3
Article 4
Correct Answer : Article 3
Question : Which of the following is required for a person to be appointed as a Governor of an Indian State?
The person must be a resident of that State
The person must be at least 35 years old and a citizen of India
The person must be a member of the State Legislature
The person must have served as a judge
Correct Answer : The person must be at least 35 years old and a citizen of India
Question : The quorum to constitute a meeting of either House of Parliament is:
One-third of the total membership
One-fourth of the total membership
One-tenth of the total membership
One-half of the total membership
Correct Answer : One-tenth of the total membership
Question : Which Constitutional Amendment gave constitutional status to municipalities?
71st Amendment
73rd Amendment
74th Amendment
76th Amendment
Correct Answer : 74th Amendment
Question : Which of the following is a Fundamental Duty of an Indian citizen?
To vote in every election
To pay income tax
To protect and improve the natural environment
To provide free education to all children
Correct Answer : To protect and improve the natural environment
Question : The Vice-President of India is elected by:
Elected members of Parliament only
All members of both Houses of Parliament
Elected members of State Legislative Assemblies
Direct election by the people
Correct Answer : All members of both Houses of Parliament
Question : Which writ is issued to prevent a person from illegally holding a public office?
Habeas Corpus
Mandamus
Quo Warranto
Certiorari
Correct Answer : Quo Warranto
Question : Which of the following is the primary objective of monetary policy?
To regulate money and credit conditions in the economy
To determine the annual government budget
To regulate agricultural land ownership
To determine the country's population
Correct Answer : To regulate money and credit conditions in the economy
Question : Which institution is known as the lender of last resort in India?
State Bank of India
Reserve Bank of India
Finance Commission
Ministry of Finance
Correct Answer : Reserve Bank of India
Question : When the value of a country's exports exceeds the value of its imports of goods, it has:
Trade deficit
Trade surplus
Fiscal surplus
Current account deficit
Correct Answer : Trade surplus
Question : Which of the following would be classified as a variable cost for a manufacturing firm?
Rent of a factory building under a fixed lease
Annual insurance premium
Cost of raw materials used in production
Permanent administrative salary
Correct Answer : Cost of raw materials used in production
Question : The Consumer Price Index (CPI) primarily measures:
Changes in the prices of a basket of goods and services consumed by households
Changes in stock market prices
Changes in government tax revenue
Changes in the quantity of money
Correct Answer : Changes in the prices of a basket of goods and services consumed by households
Question : Which of the following is most likely to occur when the central bank raises the policy interest rate, other things remaining equal?
Borrowing generally becomes more expensive
Borrowing becomes completely free
Money supply automatically becomes infinite
Exports automatically become zero
Correct Answer : Borrowing generally becomes more expensive
Question : In economics, the term 'liquidity' refers to:
The profitability of an asset
The ease with which an asset can be converted into cash without significant loss in value
The physical size of an asset
The tax payable on an asset
Correct Answer : The ease with which an asset can be converted into cash without significant loss in value
Question : Which of the following is an example of transfer payment?
Payment for government construction work
Pension paid by the government
Salary paid to a government employee
Payment for raw materials purchased by a public enterprise
Correct Answer : Pension paid by the government
Question : If the marginal propensity to consume is 0.8, the simple Keynesian investment multiplier is:
2
4
5
8
Correct Answer : 5
Question : Which of the following is likely to cause cost-push inflation?
A sharp increase in production costs
A fall in input prices
A decline in wages
A fall in demand
Correct Answer : A sharp increase in production costs
Question : Per capita income is calculated by dividing:
National income by total population
GDP by total exports
Government expenditure by population
Total savings by national income
Correct Answer : National income by total population
Question : Which of the following best describes an oligopoly?
A market with a single seller
A market with a large number of small sellers selling identical products
A market dominated by a small number of significant sellers
A market with only one buyer
Correct Answer : A market dominated by a small number of significant sellers
Question : Which of the following is an important function of a commercial bank?
Issuing currency notes
Accepting deposits and providing loans
Conducting national elections
Preparing the Union Budget
Correct Answer : Accepting deposits and providing loans
Question : If aggregate demand exceeds aggregate supply at the existing price level, the economy is likely to experience:
Deflationary pressure
Inflationary pressure
A permanent trade surplus
A fall in employment by definition
Correct Answer : Inflationary pressure
Question : Which of the following represents human development more directly than economic growth alone?
Increase in GDP without changes in social indicators
Improvement in health, education and standard of living
Increase in the number of luxury goods produced
Increase in foreign exchange reserves alone
Correct Answer : Improvement in health, education and standard of living
Question : Which Article of the Constitution of India deals with the office of the Vice-President?
Article 52
Article 63
Article 76
Article 80
Correct Answer : Article 63
Question : Which of the following Fundamental Rights is available to both citizens and foreigners, except enemy aliens?
Right to freedom of speech and expression
Right to equality before law
Right to form associations
Right to freedom of movement
Correct Answer : Right to equality before law
Question : The Council of Ministers at the Union level is headed by:
President
Vice-President
Prime Minister
Home Minister
Correct Answer : Prime Minister
Question : Which of the following parliamentary committees examines the reports of the Comptroller and Auditor General of India?
Estimates Committee
Public Accounts Committee
Committee on Public Undertakings
Rules Committee
Correct Answer : Public Accounts Committee
Question : Under the Indian Constitution, residuary legislative powers are vested in:
State Legislatures
Parliament
President
Supreme Court
Correct Answer : Parliament
Question : Which of the following is a condition necessary for a bill to become an Act of Parliament?
It must be approved by the Supreme Court
It must receive the President's assent
It must be approved by the Election Commission
It must be approved by all State Legislatures
Correct Answer : It must receive the President's assent
Question : The 42nd Constitutional Amendment is often referred to as:
Mini-Constitution
People's Amendment
Federal Amendment
Judicial Amendment
Correct Answer : Mini-Constitution
Question : Which of the following provisions was borrowed from the Constitution of Canada?
Directive Principles of State Policy
Parliamentary government
Federation with a strong Centre
Fundamental Duties
Correct Answer : Federation with a strong Centre
Question : A Constitutional Amendment affecting the election of the President requires, in addition to Parliament's special majority:
Approval by at least half of the State Legislatures
Approval by all State Legislatures
Approval by the Supreme Court
Approval by the Union Cabinet
Correct Answer : Approval by at least half of the State Legislatures
Question : Which of the following statements about the Rajya Sabha is correct?
It can be dissolved by the President
It is a permanent House
Its members are directly elected by all citizens
Its maximum term is five years
Correct Answer : It is a permanent House
Question : The power of the President to nominate members to the Rajya Sabha is based on their special knowledge or practical experience in:
Law, medicine and engineering
Literature, science, art and social service
Defence, agriculture and commerce
Politics, administration and sports
Correct Answer : Literature, science, art and social service
Question : Which Article of the Constitution provides for the office of the Comptroller and Auditor General of India?
Article 76
Article 148
Article 280
Article 324
Correct Answer : Article 148
Question : Which of the following is NOT a power of the Election Commission of India?
Superintendence of elections
Preparation of electoral rolls
Recognition of political parties for election purposes
Appointment of the Prime Minister
Correct Answer : Appointment of the Prime Minister
Question : If no party obtains a clear majority in the Lok Sabha, the President normally appoints as Prime Minister the person who:
Is the oldest member of Parliament
Is most likely to command the confidence of the Lok Sabha
Is the leader of the Rajya Sabha
Is nominated by the Supreme Court
Correct Answer : Is most likely to command the confidence of the Lok Sabha
Question : Which of the following can be described as a unitary feature of the Indian Constitution?
Division of powers between Union and States
Written Constitution
Single integrated judicial system
Bicameralism at the Union level
Correct Answer : Single integrated judicial system
Question : Which of the following is the main purpose of the Public Accounts Committee?
To examine government expenditure and the reports of the CAG
To prepare the Union Budget
To appoint judges of the Supreme Court
To conduct elections
Correct Answer : To examine government expenditure and the reports of the CAG
Question : Gross National Product (GNP) differs from Gross Domestic Product (GDP) primarily because GNP takes into account:
Depreciation only
Net factor income from abroad
Indirect taxes only
Government expenditure only
Correct Answer : Net factor income from abroad
Question : Which of the following is known as a quantitative instrument of credit control?
Moral suasion
Credit rationing
Open Market Operations
Direct action
Correct Answer : Open Market Operations
Question : When the Reserve Bank increases the Statutory Liquidity Ratio, banks generally have:
More funds available for lending
Less funds available for lending
No deposits at all
Unlimited borrowing capacity
Correct Answer : Less funds available for lending
Question : Which of the following is a major objective of fiscal policy?
Regulation of the money supply by the central bank
Management of government revenue and expenditure to influence economic activity
Determination of exchange rates by commercial banks
Control of private company ownership
Correct Answer : Management of government revenue and expenditure to influence economic activity
Question : Revenue deficit occurs when:
Revenue expenditure exceeds revenue receipts
Capital receipts exceed capital expenditure
Total receipts exceed total expenditure
Tax revenue exceeds non-tax revenue
Correct Answer : Revenue expenditure exceeds revenue receipts
Question : Which of the following is an example of a capital expenditure by the government?
Payment of salaries to government employees
Purchase of office stationery
Construction of a new highway
Payment of interest on public debt
Correct Answer : Construction of a new highway
Question : The term 'crowding out' in economics generally refers to:
Increase in private investment due to lower interest rates
Reduction in private investment caused by increased government borrowing
Decrease in exports due to higher foreign demand
Increase in household savings due to higher income
Correct Answer : Reduction in private investment caused by increased government borrowing
Question : Which of the following would most likely appreciate the domestic currency, other things remaining equal?
A substantial increase in demand for foreign currency
A substantial increase in demand for the domestic currency
A sharp increase in imports without capital inflows
A decline in foreign investment inflows
Correct Answer : A substantial increase in demand for the domestic currency
Question : The balance between total injections and total leakages is associated with:
Equilibrium in national income
Trade deficit only
Fiscal deficit only
Inflation only
Correct Answer : Equilibrium in national income
Question : Which of the following is a feature of perfect competition?
A single seller controls the market
Products are differentiated by each seller
There are many buyers and sellers and firms are price takers
Entry into the market is completely prohibited
Correct Answer : There are many buyers and sellers and firms are price takers
Question : If the price elasticity of demand for a product is zero, demand is:
Perfectly elastic
Unitary elastic
Perfectly inelastic
Relatively elastic
Correct Answer : Perfectly inelastic
Question : Which of the following would be classified as a stock variable rather than a flow variable?
Income earned during a year
Savings made during a year
Wealth owned at a particular point in time
Exports during a year
Correct Answer : Wealth owned at a particular point in time
Question : The Lorenz curve is used to study:
Inflation
Income inequality
Unemployment
Balance of payments
Correct Answer : Income inequality
Question : Which of the following situations represents a current account deficit in the Balance of Payments?
Current account receipts exceed current account payments
Current account payments exceed current account receipts
Capital inflows exceed capital outflows
Foreign exchange reserves increase automatically
Correct Answer : Current account payments exceed current account receipts
Question : Which Article of the Constitution of India provides for equality of opportunity in matters of public employment?
Article 14
Article 15
Article 16
Article 17
Correct Answer : Article 16
Question : Which part of the Constitution deals with the Union Executive?
Part V
Part VI
Part VII
Part VIII
Correct Answer : Part V
Question : The President of India can be impeached for:
Violation of the Constitution
Financial irregularities only
Misconduct outside office only
Failure to pass the Union Budget
Correct Answer : Violation of the Constitution
Question : Which of the following is not subject to judicial review in the ordinary sense?
Constitutional amendments
Laws passed by Parliament
Executive actions
Private agreements between individuals
Correct Answer : Private agreements between individuals
Question : The members of a State Legislative Assembly are elected for a normal term of:
Four years
Five years
Six years
Seven years
Correct Answer : Five years
Question : Which of the following is a prerequisite for a person to be appointed as a judge of the Supreme Court of India?
The person must have been a judge of a High Court for at least five years or an advocate of a High Court for at least ten years, or be a distinguished jurist
The person must have served as a Member of Parliament for ten years
The person must have been a Governor of a State
The person must have served as a Union Minister
Correct Answer : The person must have been a judge of a High Court for at least five years or an advocate of a High Court for at least ten years, or be a distinguished jurist
Question : Which Schedule of the Constitution contains provisions related to the administration and control of Scheduled Areas and Scheduled Tribes?
Fourth Schedule
Fifth Schedule
Sixth Schedule
Seventh Schedule
Correct Answer : Fifth Schedule
Question : Which of the following constitutional provisions promotes the independence of the judiciary?
Judges can be removed by a simple executive order
The salaries of Supreme Court judges are charged on the Consolidated Fund of India
Judges are appointed directly by political parties
Parliament can remove judges by ordinary majority
Correct Answer : The salaries of Supreme Court judges are charged on the Consolidated Fund of India
Question : The power of Parliament to legislate on a subject in the State List during a National Emergency is provided under:
Article 249
Article 250
Article 252
Article 253
Correct Answer : Article 250
Question : Which of the following is true regarding the Rajya Sabha?
It can introduce a Money Bill
It can recommend amendments to a Money Bill
It can reject a Money Bill permanently
It has equal powers with the Lok Sabha over Money Bills
Correct Answer : It can recommend amendments to a Money Bill
Question : Which constitutional body is responsible for recommending measures relating to the distribution of tax revenues between the Union and the States?
Finance Commission
Election Commission
Union Public Service Commission
Goods and Services Tax Council
Correct Answer : Finance Commission
Question : The Goods and Services Tax Council is established under:
Article 270
Article 279A
Article 280
Article 300A
Correct Answer : Article 279A
Question : Which of the following is a feature of the Indian Constitution's Fundamental Rights?
They are absolute and cannot be restricted
Several of them are subject to reasonable restrictions
They apply only to government employees
They cannot be enforced by courts
Correct Answer : Several of them are subject to reasonable restrictions
Question : The power of the Supreme Court to transfer certain cases from one High Court to another is provided under:
Article 139A
Article 141
Article 143
Article 145
Correct Answer : Article 139A
Question : Which of the following is an example of a constitutional convention rather than an explicitly detailed constitutional provision?
The Prime Minister is generally the leader of the majority party or coalition in the Lok Sabha
The President is the head of the Union
The Supreme Court is established under Article 124
The Rajya Sabha is a permanent House
Correct Answer : The Prime Minister is generally the leader of the majority party or coalition in the Lok Sabha
Question : Which of the following is included in India's National Income but is not included in domestic income?
Income earned by foreign factors within India
Net factor income from abroad
Depreciation of fixed capital
Indirect taxes
Correct Answer : Net factor income from abroad
Question : Which economic indicator measures the value of all final goods and services produced within a country's geographical boundaries?
GNP
GDP
NNP
Per capita income
Correct Answer : GDP
Question : Net Domestic Product (NDP) at market prices is obtained by:
Adding depreciation to GDP at market prices
Subtracting depreciation from GDP at market prices
Subtracting exports from GDP
Adding net factor income from abroad to GDP
Correct Answer : Subtracting depreciation from GDP at market prices
Question : Which of the following is an example of structural unemployment?
A worker temporarily searching for a new job
A worker losing employment because the skills demanded by industries have changed
A worker unemployed during the agricultural off-season
A worker voluntarily taking a holiday
Correct Answer : A worker losing employment because the skills demanded by industries have changed
Question : Which of the following would increase the supply of foreign exchange in India, other things remaining equal?
Increase in merchandise imports
Increase in exports
Increase in payments for foreign services
Increase in capital outflow
Correct Answer : Increase in exports
Question : If the value of imports exceeds the value of exports of goods, the country experiences:
Trade surplus
Trade deficit
Fiscal surplus
Primary surplus
Correct Answer : Trade deficit
Question : Which of the following is the primary function of the World Bank?
Providing long-term development assistance and financing to member countries
Regulating global stock exchanges
Issuing currency for all countries
Determining domestic tax rates
Correct Answer : Providing long-term development assistance and financing to member countries
Question : The International Monetary Fund primarily works to:
Promote international monetary cooperation and financial stability
Control agricultural production in member countries
Administer national elections
Set wages for workers worldwide
Correct Answer : Promote international monetary cooperation and financial stability
Question : Which of the following is an example of a subsidy?
Government financial assistance that lowers the effective cost of producing or consuming a good or service
A tax imposed on imports
A compulsory payment to purchase government bonds
A penalty imposed for violating a law
Correct Answer : Government financial assistance that lowers the effective cost of producing or consuming a good or service
Question : If the central bank increases the reserve requirement for commercial banks, the credit creation capacity of banks will generally:
Increase
Decrease
Remain unaffected
Become unlimited
Correct Answer : Decrease
Question : Which of the following is the primary cause of demand-pull inflation?
Excess aggregate demand relative to aggregate supply
Decline in production costs
Fall in consumer demand
Decrease in money circulation
Correct Answer : Excess aggregate demand relative to aggregate supply
Question : Which of the following best represents a progressive tax system?
A taxpayer with higher income pays a higher proportion of income as tax
Every taxpayer pays the same absolute amount of tax
The tax burden falls as income rises
Only consumers pay taxes
Correct Answer : A taxpayer with higher income pays a higher proportion of income as tax
Question : If the marginal propensity to consume is 0.6, the value of the simple expenditure multiplier is:
1.5
2
2.5
4
Correct Answer : 2.5
Question : Which of the following is most likely to increase the demand for a normal good?
A rise in consumers' income
A fall in consumers' income
A rise in the price of the good itself
A decrease in population
Correct Answer : A rise in consumers' income
Question : In economics, a situation in which resources are limited while human wants are unlimited is known as:
Scarcity
Liquidity
Equilibrium
Productivity
Correct Answer : Scarcity