The resources transfer to the States
Correct Answer
b.
The resources transfer to the various departments
c.
The finances of Government of India
d.
None of the above
Step-by-Step AI Explanation
Verified Method
The Finance Commission is a constitutional body under Article 280, primarily tasked with defining the financial relations between the Central Government and the State Governments, specifically regarding the distribution of tax revenues (resource transfer).
Q2mcq1 mark
Expansion of NITI Aayog :
a.
National Institute for Tomorrow’s India
b.
National Institute for Transport in India
c.
National Institution for Transforming India
Correct Answer
d.
National Institute for Trade in India
Step-by-Step AI Explanation
Verified Method
NITI Aayog stands for National Institution for Transforming India. It was formed on January 1, 2015, replacing the Planning Commission to provide strategic and technical advice to the government.
Q3mcq1 mark
According to Classical theory, rate of interest is a reward for __________.
a.
Capital
b.
Investment
c.
Saving
Correct Answer
d.
Demand
Step-by-Step AI Explanation
Verified Method
According to Classical economists, the rate of interest is the reward for 'waiting' or 'abstinence' from consumption, which is equivalent to saving. It is the price that equilibrates the supply of savings and the demand for investment.
Q4mcq1 mark
Which of the following is not an example of Foreign Direct Investment ?
a.
the purchase of bonds or stock issued by a textile company overseas.
Correct Answer
b.
the construction of a new auto assembly plant overseas.
c.
the creation of a wholly owned business firm overseas.
d.
the acquisition of an existing steel mill overseas.
Step-by-Step AI Explanation
Verified Method
Foreign Direct Investment (FDI) involves a lasting interest and significant control in an enterprise. Purchasing bonds or stocks (portfolio investment) is not considered FDI because it does not involve management control or a lasting interest in the foreign entity.
Q5mcq1 mark
PQLI is the indicator of __________.
a.
Economic progress
b.
Economic growth
c.
Economic development
Correct Answer
d.
Economic welfare
Step-by-Step AI Explanation
Verified Method
PQLI (Physical Quality of Life Index) measures the quality of life and well-being of a population, which is a core component of economic development, distinguishing it from purely numerical economic growth.
Q6mcq1 mark
The other name for “Macro Economics” is :
a.
Market Theory
b.
Price Theory
c.
Micro Theory
d.
Income Theory
Correct Answer
Step-by-Step AI Explanation
Verified Method
Macroeconomics deals with the economy as a whole, focusing on aggregate variables like national income, output, and employment. Therefore, it is commonly referred to as 'Income Theory' or 'Income and Employment Theory'. Price Theory refers to Microeconomics.
Q7mcq1 mark
Method of Repayment of Public Debt is __________.
a.
Sinking Fund
b.
Terminal Annuity
c.
Conversion of Loans
d.
All of the above
Correct Answer
Step-by-Step AI Explanation
Verified Method
Public debt repayment methods include Sinking Fund (setting aside money periodically), Terminal Annuity (repayment in installments), and Conversion of Loans (issuing new bonds to pay old ones). Thus, all are valid methods.
Q8mcq1 mark
The core of the Classical theory of employment is __________.
a.
Law of Markets
Correct Answer
b.
Law of Diminishing Return
c.
Law of Consumption
d.
Law of Demand
Step-by-Step AI Explanation
Verified Method
The core of the Classical theory of employment is J.B. Say's 'Law of Markets', which states that 'supply creates its own demand', implying that there cannot be general overproduction or involuntary unemployment in the long run.
Q9mcq1 mark
The country following Capitalism is __________.
a.
India
b.
Russia
c.
China
d.
America
Correct Answer
Step-by-Step AI Explanation
Verified Method
The correct answer is (D) America. Capitalism is an economic system characterized by private ownership of the means of production and the operation of the economy for profit. America is a classic example of a capitalist economy. India, China, and Russia, while having market elements today, have historically or currently featured significant state control, planning, or mixed-economy characteristics (e.g., India's mixed economy).
Q10mcq1 mark
The study of alternating fluctuations in business activity is referred to in Economics as :
a.
Recovery
b.
Boom
c.
Trade cycle
Correct Answer
d.
Recession
Step-by-Step AI Explanation
Verified Method
The correct answer is (C) Trade cycle. A trade cycle (also known as a business cycle) refers to the periodic but irregular up-and-down movements in economic activity, measured by fluctuations in real GDP and other macroeconomic variables. Recovery, Boom, and Recession are individual phases of the trade cycle, not the cycle itself.
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Calculate the Karl Pearson correlation co-efficient for the following data.
Demand of Product X 23 27 28 29 30 31 33 35 36 39
Sale of Product Y 18 22 23 24 25 26 28 29 30 32
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