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Wednesday, September 4, 2019

economics -macro-Prelims booster quiz answer day-11


1.With reference to inflation in India, which of the following statements is correct?
(a) Controlling the inflation in India is the responsibility of the Government of India only
(b) The Reserve Bank of India has no role in controlling the inflation
(c) Decreased money circulation helps in controlling the inflation
(d) Increased money circulation helps in controlling the inflation
Ans-C
inflation

2.Which of the following brings out the "Consumer Price Index Number for Industrial Workers ?
(a) The Reserve Bank of India
(b) The Department of Economic Affairs.
(c) The Labour Bureau
(d) The Department of Personnel and Training
Ans-C
Consumer Price Index CPI
  • It measures price changes from the perspective of a retail buyer.
  • It measures changes over time in the level of retail prices of selected goods and services on which consumers of a defined group spend their incomes.
  • Four types of CPI are as follows:
CPI for Industrial Workers (IW).
CPI for Agricultural Labourer (AL).
CPI for Rural Labourer (RL).
CPI (Rural/Urban/Combined).Of these, the first three are compiled by the Labour Bureau in the Ministry of Labour and Employment. Fourth is compiled by the Central Statistical Organisation (CSO) in the Ministry of Statistics and Programme Implementation.
  • Base Year for CPI is 2012.
3.The substitution of steel for wooden ploughs in agricultural production is an example of
(a) labour-augmenting technological progress
(b) capital-augmenting technological progress
(c) capital-reducing technological progress
(d) None of the above
Ans-B

4.There has been a persistent deficit budget year after year. 
Which of the following actions can be taken by the government to reduce the deficit?
1. Reducing revenue expenditure
2. Introducing new welfare schemes
3. Rationalizing subsidies
4. Expanding industries
Select the correct answer using the code given below.
(a) 1 and 3 only
(b) 2 and 3 only
(c) 1 only
(d) 1, 2, 3 and 4
Ans-A
A budget deficit is a financial loss for during a period where expenses exceed revenues

5.With reference to Union Budget, which of the following is/are covered under Non-Plan Expenditure?
1. Defence expenditure 2. Interest payments
3. Salaries and pensions 4. Subsidies
Select the correct answer using the code given below.
(a) 1 only 
(b) 2 and 3 only
(c) 1, 2, 3 and 4 
(d) None
Ans-C
Expenditure


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