Economics Questions and Answers updated daily – General Knowledge

Economics Questions: Solved 100 Economics Questions and answers section with explanation for various online exam preparation, various interviews, General Knowledge Category online test. Category Questions section with detailed description, explanation will help you to master the topic.

Economics Questions

1. What is the eligibility criteria of PM Shram yogi mandhan yojna?




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Correct Ans:age group 18-40 and monthly income 15000
Explanation:
• The eligibility criteria of PM Shram yogi mandhan yojna include -age group 18-40 and monthly income 15000.

• Minimum assure pension of 3000 per month after age of 60.
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2. A substantial increase in capital expenditure or revenue deficit leads to _____.




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Correct Ans:Fiscal Deficit
Explanation:
• Budget deficit = total expenditure – total receipts.

• Revenue deficit = revenue expenditure – revenue receipts.

• Fiscal Deficit = total expenditure – total receipts except borrowings.

• Primary Deficit = Fiscal deficit- interest payments.

Hence Fiscal Deficit is the right answer.
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3. Osborne Smith served 20 years in which bank?




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Correct Ans:Bank of New south Wales
Explanation:
• Osborne smith was the first governor of RBI. Prior to his appointment as RBI governor he served 20 Years in Bank of new South Wales.

• He served as governor of RBI from 1935-37.
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4. The Ayushman Bharat Scheme introduced by the Government of India provides medical coverage of up to ₹ _______ per family per year.




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Correct Ans:5 lakhs
Explanation:
• The Ayushman Bharat Scheme introduced by the Government of India provides medical coverage of up to ₹ 5 lakh per family per year.

• It was launched on 23rd September 2018 by Prime Minister Narendra Modi in Ranchi, Jharkhand.

• The scheme aims at making interventions in primary, secondary and tertiary care systems, covering both preventive and promotive health, to address healthcare holistically.
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5. Which among the following comes under tertiary sector of Indian Economy?




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Correct Ans:Transport of goods
Explanation:
Transport of goods comes under tertiary sector of Indian Economy. The tertiary sector or service sector is the third of the three economic sectors of the three-sector theory. The others are the secondary sector (approximately the same as manufacturing), and the primary sector (raw materials). The tertiary sector of industry involves the provision of services to other businesses as well as final consumers. Services may involve the transport, distribution and sale of goods from producer to a consumer, as may happen in wholesaling and retailing, pest control or entertainment.
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6. The new Agricultural Strategy in India was introduced in _______.




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Correct Ans:1966
Explanation:
The new strategy of agricultural development introduced in India from 1966 kharif season. It was based on focus on high yielding varieties of seed and complimentary inputs on selected water-assured arias. This was the start of Green revolution in India.
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7. Golden Handshake Scheme is associated with




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Correct Ans:Voluntary retirement
Explanation:
A golden handshake is usually provided to top executives for loss of employment through layoffs, firing or even retirement. Payment can be made several ways, such as cash, or stock options.
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8. When did the Kisan Credit card (KCC) Schemes for the farmers started in India?




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Correct Ans:1998-1999
Explanation:
Kisan Credit Card was started by the Government of India, Reserve Bank of India (RBI), and National Bank for Agricultural and Rural Development (NABARD) in 1998-99 to help farmers access timely and adequate credit.
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9. Who are the price-takers under Perfect Competition?




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Correct Ans:Firms
Explanation:
--- >Firms are the price-takers under Perfect Competition. By definition a perfectly competitive market is one in which no single firm has to influence either the equilibrium price of the market or the total quantity supplied in the market.
--- >Thus, a firm operating in a competitive market has no incentive to supply at a price lower than market equilibrium price, as it can sell all it wants to supply at equilibrium. At the same time, the firm cannot sell at price higher than the market price, because it will be able find no buyers at that price, and its sales volume will drop down to zero.
--- >Thus, a firm operating in perfectly competitive market has to accept whatever is the market equilibrium price, and therefore it is called a price taker.
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10. Who advocated the adoption of "˜PURA model to eradicate rural poverty?




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Correct Ans:Dr. A. P. J. Abdul Kalam
Explanation:
Provision of Urban Amenities to Rural Areas (PURA), concept given by former president Dr. A.P.J. Abdul Kalam and framed by Prof. Emerson, is a strategy for rural development in India.
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11. Economics is the Science of Wealth' who gave this definition?




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Correct Ans:Adam Smith
Explanation:
Adam Smith was the founder of economics described it as a body of knowledge which relates to wealth. He defined economics as ' The study of nature and causes of generating of wealth of a nation '.
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12. The excess of price a person is to pay rather than forego the consumption of the commodity is called




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Correct Ans:Producer's surplus
Explanation:
---> A producer surplus is generated by market prices in excess of the lowest price producers would otherwise be willing to accept for their goods.

---> Consumer surplus is an economic measure of consumer benefit. It is calculated by analyzing the difference between what consumers are willing and able to pay for a good or service relative to its market price, or what they actually do spend on the good or service.
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13. Devaluation of a currency means _________.




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Correct Ans:reduction in the value of a currency vis-a-vis major internationally traded currencies
Explanation:
Devaluation of a currency means official lowering of the value of a country's currency within a fixed exchange rate system.

Devaluation is a tool used by monetary authorities to improve the country's trade balance by boosting exports at moments when the trade deficit may become a problem for the economy.
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14. Government has approved __________ interest rate on deposits in Employees Provident Fund for 2018-19.




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Correct Ans:8.65%
Explanation:
Government has approved 8.65% interest rate on deposits in Employees Provident Fund for 2018-19.

Ministry of Labour and Employment has notified 8.65% rate of interest on EPF deposits for its over six crore subscribers. The EPFO has been settling EPF withdrawal claims at 8.55% interest rate, approved for 2017-18. Now, the EPFO will settle accounts on higher rate of 8.65% for 2018-19.
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15. What is the term which refers to an economy where the government imposes few or no restrictions and regulations on buyers and sellers?




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Correct Ans:Free-market Economy
Explanation:
Free market refers to an economy where the government imposes few or no restrictions and regulations on buyers and sellers. In a free market, participants determine what products are produced, how, when and where they are made, to whom they are offered, and at what price - all based on supply and demand.
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16. What is called Tax heaven?




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Correct Ans:A country which gives tax exemptions to the foreign citizens that there will be no tax on investing the money in their country.
Explanation:
A country that gives foreign citizens the facility to invest in their country and do not pay any tax on the profit earned by the invested money. Mauritius and Cyprus provide this facility.
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17. The situation to make someone better-off without making someone worse-off in terms of economics is called?




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Correct Ans:Pareto efficiency
Explanation:
Pareto efficiency or Pareto optimality is a state of allocation of resources from which it is impossible to reallocate so as to make any one individual or preference criterion better off without making at least one individual or preference criterion worse off.
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18. In economics, a good whose demand decreases when consumer income rises is called _________.




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Correct Ans:Inferior good
Explanation:
In economics, an inferior good is a good whose demand decreases when consumer income rises (or demand increases when consumer income decreases), unlike normal goods, for which the opposite is observed.
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19. In Economics the capital mainly owned by the government that is the basic infrastructure facilities and services needed for the functioning of a community or society is known as __________.




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Correct Ans:Social overheads capital
Explanation:
A Social Overhead Capital (SOC) is the social capital mainly owned by the government that is the basic facilities and services needed for the functioning of a community or society, such as transportation (roads), education and health (schools, public libraries, and hospitals), communications and utilities (telephones, water, electricity), etc. The SOC term can be used as the economic overhead facilities and economic infrastructure.
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20. Global Hunger Index (GHI) is published by 




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Correct Ans:International Food Policy Research Institute (IFPRI)
Explanation:
TheGlobal Hunger Index(GHI) is tool that measures and tracks hunger globally, by region, and by country. The GHI is updated once a year.

The Index was adopted and further developed by the International Food Policy Research Institute (IFPRI), and was first published in 2006 with the Welthungerhilfe, a German nonprofit organization (NPO). Since 2007, the Irish NGO Concern Worldwide also become a co-publisher.
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