Mock Test-1 (Paper-1) (Question 51-100)

Total Questions: 50

11. A closed economy is an economy in which

Correct Answer: (d) neither exports nor imports takes place
Solution:A closed economy has no trade activity with outside economies. A closed economy is self-sufficient, which means no imports come into the country and no exports leave the country. The purpose of a closed economy is to provide domestic consemers with everything they need from within the country's borders.

12. In the Indian context, the studies of poverty were made by —

(i) Dandekar and Rath

(ii) P.K. Bardhan

(iii) B.S. Minhas

(iv) I.J. Ahluwalia

Select the correct answer from the codes given below:

Correct Answer: (c) (i), (ii) and (iii)
Solution:Dr. V. M. Dandekar and Mr. Nilkantha Rath, B. S. Minhas and Dr. P. K. Bardhan studied about poverty in India.

13. To obtain full benefits of demographic dividend, what should India do ?

1. Promoting skill development

2. Introducing more social security schemes

3. Reducing infant mortality rate

4. Privatisation of higher education

Which of the above statements is/are correct?

Correct Answer: (a) 1 only
Solution:To rip maximum demographic dividend, India has to promote skill development.

14. The farmers are provided credit from a number of sources for their short and long term needs. The main sources of credit to the farmers include:

1. the Primary Agricultural Co-operative Societies, Commercial Banks, RRBs and Private money lenders.

2. the NABARD, RBI, Commercial banks and Private money lenders.

3. the District Central Co-operative Banks (DCCB), the lead banks, IRDP and JRY

4. the Large Scale Multi-purpose programme, DCCB, IFFCO and Commercial banks.

Correct Answer: (c) 1 only
Solution:Statement I lists all the main and primary sources of agriculture credit institutions exclusively for farmers.

15. Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes ?

1. Working capital for maintenance of farm assets

2. Purchase of combine harvesters, tractors and mini trucks

3. Consumption requirements of farm households

4. Post-harvest expenses

5. Construction of family house and setting up of village cold storage facility

Select the correct answer using the code given below :

Correct Answer: (b) 1, 3 and 4 only
Solution:Kisan Credit Card primarily meant for buying farm inputs. So construction of 'family house' seems far-fetched. So, #5 wrong. Further, setting up a village up a village cold storage facilities cannot be done through a short-term credit (a given in the question premise) it will require a very long term loan. So, #5 is wrong. By elimination we are left with answer (b).

Interestingly no questions from the government schemes related to insurance and pension. Although in the last two years many initiatives were undertaken such a PM Shram Yogi Maan Dhan, Laghu Vyapari Maan Dhan, Kisan Maan Dhan etc. schemes

16. Economic liberalisation in India started with

Correct Answer: (a) substantial changes in industrial licensing policy
Solution:Economic Liberalisation in India started with substantial changes in industrial licensing policy. The LPG Model (Liberalisation, Privatisation & Globalisation) was introduces by Dr. Manmohan Singh in 1991 as India was facing problems of depleting reserves.

17. With reference to the World Bank's Ease of Doing Business Report, which of the following statement(s) is/are correct?

1. In Ease of Doing Business Report 2020, India's rank is 63.

2. India ranking for Ease of Doing Business in the year 2019 was 77.

Select the correct answer using the codes given below.

Correct Answer: (b) 2 only
Solution:The ease of doing business index is an index created jointly by Simeon Djankov and Gerhard Pohl, two leading economists at the Central and Eastern Europe sector of the World Bank Group. India jumps to 63rd position in World Bank's Ease of Doing Business 2020 report. In the 2019 report, India had improved its rank on six out of the 10 parameters relating to starting and doing business in a country.

18. A country is said to be in a debt trap if :

Correct Answer: (b) it has to borrow to make interest payments on outstanding loans.
Solution:In debt trap fresh loans are taken forcibly to repay previous loans.

19. Which one of the following is not an adverse effect of population growth in an economy?

Correct Answer: (a) Increase in the size of working population.
Solution:Increase of size of working population is one of the positive effects of population growth in an economy. Human resources increases with increase in population.

20. The 'Ease of Doing Business Index' is prepared and published by-

Correct Answer: (b) World Bank Group
Solution:The Ease of Doing Business Index is prepared by World Bank Group.