Economics Miscellaneous (Part – II)

Total Questions: 50

11. Bhakra-Nangal is a joint project of: [U.P.P.C.S. (Mains) 2012]

Correct Answer: (a) Haryana-Punjab and Rajasthan
Solution:Bhakra-Nangal is a joint project of Haryana, Punjab and Rajasthan. It is the most important multipurpose project named after the two dams built at Bhakra and Nangal on the Satluj river.

The Bhakra Nangal Project is one of the oldest development projects for river valleys established after the Independence of India. This project was operated by Sir Chhotu Ram, the minister of Punjab Revenue and the king of Bilaspur in 1944. This project got the consent of the Indian government on January 8, 1945.

The construction of this Dam was started in 1984 by Sir Louis Dane, the Lieutenant Governor of Punjab. Thereafter, this project was delayed and started again under the surveillance of Sir Rai Bahadur, the chief architect of Punjab.

This project was finished in 1963 and Jawaharlal Nehru, the Prime Minister of that time, dedicated the dam to the nation. The total cost of this project was approximately 245.28 crores INR and the total steel used in this project was approximately 101600 tonnes.

12. India's first textile university will be set up in which of And the following States? [B.P.S.C. (Pre) 2016]

Correct Answer: (c) Gujarat
Solution:In 2016, the Gujarat government announced its plan to set up India's first textile university in Surat (Gujarat) with an investment of about Rs. 800-900 crore.

This includes providing technical inputs, research and development support, and skilled manpower training. The university will also play a role in guiding the government on policy matters related to the textile industry. The Gujarat government is fully funding the university's development with an estimated Rs 800-900 crore.

13. Two statements are given below, one labelled as Assertion (A) and the other labelled as Reason (R). [I.A.S. (Pre) 1997]

Assertion (A): The emergence of economic globalism does not imply the decline of socialist ideology.

Reason (R): The ideology of socialism believes in universalism and globalism.

In the context of the above two statements, which one of the following is correct?

Correct Answer: (c) A is true, but R is false
Solution:Socialism is a range of economic and social systems characterized by social ownership and democratic control of the means of production as well as the political theories and movements associated with them. The ideology of capitalism believes in universalism and globalism. But the emergence of economic globalism does not imply the decline of socialist ideology. Hence, Assertion is correct but Reason is not true.

14. Which one of the following is not taken as a factor among the non-economic factors, which contribute in economic growth? [Jharkhand P.C.S. (Pre) 2013]

Correct Answer: (b) Corruption
Solution:Corruption acts as barrier in economic growth. So it is not responsible for economic growth of the country.
  • Corruption erodes public trust in institutions, making it harder to enforce contracts, protect property rights, and ensure fair competition, all of which are crucial for economic development.
  • Businesses are less likely to invest in countries with high levels of corruption due to increased risks, uncertainty, and the potential for unfair competition. Foreign investors are particularly wary of corrupt environments.
  • Corruption diverts resources away from productive uses, leading to inefficient allocation of capital, labor, and other resources.
  • While some argue that corruption can occasionally stimulate economic activity in certain contexts, the overwhelming evidence indicates its detrimental effects on long-term.

15. Which one of the following is not an example of economic infrastructure? [U.P.P.C.S. (Mains) 2004]

Correct Answer: (c) Coal mines
Solution:Coal mines is not an example of economic infrastructure. Schools, Sanitary facilities and Roads and Railways are economic infrastructure.

Economic infrastructure typically refers to the fundamental systems and facilities that support economic activity, such as transportation (roads, railways), communication (telecom networks), energy (power plants, electricity grids), and water supply. Coal mines, on the other hand, are extractive industries focused on the production of a specific resource.

16. Super Bazar is: [U.P.P.C.S. (Mains) 2003]

Correct Answer: (b) Retail-sale organization
Solution:Super market is a large retail store operated on a self-service basis, selling groceries, fresh produce, meat, bakery and dairy products and sometimes an assortment of non-food goods.
  • Super bazars are characterized by their large size and self-service format, offering a wide variety of goods under one roof.
  • A key function of Super Bazar, the cooperative, was to ensure the availability of essential goods at controlled prices for the public.
  • The original Super Bazar was a cooperative society, owned and managed by its members.
  • The Delhi Super Bazar faced financial difficulties, leading to its closure.
  • Despite its closure, Super Bazar is remembered as a pioneering effort in retail and cooperative enterprise in India.
  • Today, the term "Super Bazar" may also be used generically to refer to any large supermarket or grocery store.

17. Match List-I with List-II. [B.P.S.C. (Pre) 2023]

Footwear/Fashion AccessoryDescription
A. Beret 1. A type of men's footwear
B. Stilettos2. A type of sun-glasses
C. Aviators3. A type of hat
D. Chignon4. A type of women's footwear
E. Brogue5. A type of hairstyle

Select the correct answer using the codes given below.

ABCDE
(a)32145
(b)34251
(c)53241
(d)12345
Correct Answer: (b)
Solution:The correctly matched lists are as follows:
Footwear/Fashion AccessoryDescription
BeretA type of hat
StilettosA type of women's footwear
AviatorsA type of sun-glasses
ChignonA type of hairstyle
BrogueA type of men's footwear

18. Who is the Father of 'Modern Economics'? [M.P.P.C.S. (Pre) 2010]

Correct Answer: (a) Adam Smith
Solution:Adam Smith was a Scottish economist and philosopher. He is known as 'The Father of Modern Economics' or 'The Father of Capitalism',

He is best known for his book, An Inquiry into the Nature and Causes of the Wealth of Nations, published in 1776, which laid the foundation for modern economic thought. He argued that specialization of labor increases productivity. Smith believed that individuals pursuing their own self-interest, guided by an "invisible hand," ultimately benefit society as a whole.

He advocated for minimal government intervention in the economy, believing that free markets are the most efficient way to allocate resources. Smith recognized the importance of capital accumulation in economic growth.

19. Which one of the following sets of economists strongly [I.A.S. (Pre) 1993]

Correct Answer: (d) Adam Smith, Ricardo, J.K. Galbraith
Solution:Classical economics is a broad term that refers to the dominant school of thought for economics in the 18th and 19th centuries. Most consider Scottish economist Adam Smith the progenitor of classical economic theory.

Many of the fundamental concepts and principles of classical economics were set forth in Smith's 'An Inquiry into the Nature and Causes of the Wealth of Nations' (1776). Smith argued that free competition and free trade promotes a nation's economic growth. Its other main thinkers are David Ricardo, John Stuart Mill, Jean- Baptiste Say, J.K. Galbraith etc.

20. Who is the author of the book 'Wealth of Nations'? [U.P.P.C.S. (Mains) 2012]

Correct Answer: (a) Adam Smith
Solution:Adam Smith is the author of the book 'An Inquiry into the Nature and Causes of the Wealth of Nations' (1776). It is a fundamental book on Classical Economics.

He argued that specialization of labor increases productivity. Smith believed that individuals pursuing their own self-interest, guided by an "invisible hand," ultimately benefit society as a whole. He advocated for minimal government intervention in the economy, believing that free markets are the most efficient way to allocate resources. Smith recognized the importance of capital accumulation in economic growth.