IASbaba’s Daily Prelims Test- [Day 9]

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IASbaba’s Daily Prelims Test- [Day 9]

Topic- Economics and Current Affairs

1. Which of the following is/are considered as “secondary sector”?

1. Manufacturing
2. Mining and Quarrying
3. Electricity, Gas and Water Supply
4. Construction

Select the correct code

1. 1, 2 and 4 only
2. 1, 3 and 4 only
3. 2 and 4 only
4. 1 and 2 only

2. The difference between the market prices and factor cost is equal to

1. Indirect taxes paid
2. Subsidies received
3. Capital consumption
4. Indirect tax paid minus subsidies received

3. Recently union government made some changes to the GDP calculation method. Which of the following is/are correct with regards to these changes?

1. The base year for the calculation of GDP was changed to 2011-12 from 2004-05.
2. GDP will be measured by using gross value added (GVA) at market price, rather than factor cost.
3. The change in method of calculation has brought Indian GDP calculations more in line with global practice.

Select the correct code-

1. 1 and 3 only
2. 1 and 2 only
3. 2 and 3 only
4. All of the above

4. Which one of the following statement is true?

1. GDP is always greater then GNP
2. GDP is always lower than GNP
3. GDP is equal to GNP when “income from Abroad” is zero
4. GDP is equal to GNP when “depreciation” is zero

5. Consider the following statements regarding the “GDP deflator”.

1. GDP deflator is a comprehensive measure of inflation.
2. The GDP deflator is based on a fixedbasket of goods and services.

Which of the above statement is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

6. Which of the following is not a feature of “capitalist economy”?

1. Ownership of means of production is with the private
2. A great part of the production is used for private consumption
3. Labour services are purchased and sold at a price
4. Production takes place for selling the output in the market

7. Consider the following statements regarding Gross Domestic Production.

1. It is a ‘quantitative’ concept which indicates the internal strength of the economy.
2. It is used by IMF/WB in the comparative analyses of its member nations.
3. GDP is widely criticized for not considering ‘qualitative’ aspect of the economy.

Which of the following is/are correct?

1. 1 and 3 only
2. 1 and 2 only
3. 1 only
4. All of the above

8. Consider the following statements regarding purchasing power parity.

1. It is a technique used to determine the relativevalue of different currencies.
2. This concept works on the assumption that markets work on the law of one price.
3. This is a popular method used by the IMF and WB in studying the living standards of people in different economies.

Which of the following is/are correct?

1. 1 and 2 only
2. 1 and 3 only
3. 1 only
4. All of the above

9. Consider the following statements with respect to state economy.

1. Socialist & Communist economies are the forms of state economy
2. Planning is the central theme of state economy.
3. India at present is pursuing state economy.

Which of the following is/are correct?

1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. All of the above

10. Company ‘X’ is headquartered at Delhi, India and it has a production facility at Beijing, China. The output of production facility is part of China’s ____. The profits of the company which are repatriated to the India are part of India’s ____.

1. GDP; GNP
2. GDP; GDP
3. GNP; GDP
4. GNP; GNP

Current Affairs

11. Consider the following bills passed by Parliament in recent times

1. Finance Bill 2015
2. National Judicial Appointments Commission Bill, 2014
3. Insurance laws (Amendment) bill, 2015
4. Motor Vehicles Amendment Bill, 2015

Select the bills passed through ‘Voice Vote’?

1. 2 and 4
2. 1 and 4
3. 1, 2, 3 and 4
4. None

12. Suppose you hold license in Mining sector in India. Consider the following statement/s

1. Mining leases can be granted to you up to 50 years except for atomic minerals.
2. Seeing your productive performance, Central government may permit you to acquire one or more licences or leases covering additional area.

Select the correct code-

1. Only 1
2. Only 2
3. Both
4. None

13. Which among the following are called ‘Notified Minerals’?

1. Bauxite
2. Iron ore
3. Coal
4. Uranium
5. Limestone
6. Manganese ore

 Select the correct ones

1. 2, 3, 4, 5 and 6
2. 1, 2, 5 and 6
3. 2, 3, 4 and 5
4. 3, 4, 5 and 6

14. Consider the following statements w.r.t Enforcement Directorate

1. It looks after investigation cases related to Foreign Exchange Management Act, 1999 and Prevention of Money Laundering Act, PMLA
2. It falls under Ministry of Finance, Department of Expenditure
3. ED can arrest the offenders in relation to PMLA offence

Select the correct code

1. 1 and 2
2. 2 and 3
3. 1 and 3
4. All

15. Which of the following treaties are related to Nuclear Weapons?

1. Antarctica Treaty
2. Seabed Treaty
3. START
4. NPT
5. SORT

Select the correct code

1. 1, 4, 5
2. 3, 4 and 5
3. 1, 2,3,4 and 5
4. 2, 3 and 4

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