IASbaba ’60 Day Plan- Prelims Test 2016 ECONOMIS & CURRENT AFFAIRS [DAY 58]

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IASbaba ’60 Day Plan’ – Prelims Test 2016 [Day 58]


Q.1) Consider the following about Pradhan Mantri Kaushal Vikas Yojana (PMKVY).

  1. Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is the flagship outcome-based skill training scheme of the new Ministry of Skill Development & Entrepreneurship (MSDE).
  2. The scheme will be implemented by the Labour Bureau of India.

Select the correct answer about PMKVY:

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. None of the above

Q.2) Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices. Which of the following is true about MSP?

  1. The minimum support prices are announced by the Government of India at the end of the sowing season for certain crops on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP).
  2. In case the market price for the commodity falls below the announced minimum price due to bumper production and glut in the market, government agencies purchase a minimum quantity specified at the announced minimum price.
  3. Minimum support prices are currently announced for 25 commodities.
  4. Government announces two types of administered prices: Minimum Support Prices (MSP) and Procurement Prices.

Q.3)  Which of the following is correctly matched?

  1. Lorenz Curve – Poverty estimation
  2. J Curve – Taxation
  3. Laffer Curve – Devalutaion
  4. Philip’s Curve – Inflation and unemployment

Q.4) Consider the following about inflation.

  1. When the government doesn’t attempt to curb price rise allowing the free market mechanism to function it is said to be open inflation.
  2. When international bodies interrupts a price rise in a country through price control measures and subsidies it is said to be suppressed or controlled inflation.

Select the correct answer:

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. None of the above

Q.5) Consider the following about revenue and capital receipts.

  1. Interest receipts, dividends and profits are parts of revenue receipts.
  2. Article 112 of the constitution mandates expenditure is shown in revenue and other categories.
  3. Disinvestment proceeds are part of capital receipts.

Select the correct answer

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

Q.6) The Government of India has approved a policy framework for private participation in rail connectivity and capacity augmentation projects, put forward by the Ministry of Railways. The policy contains which of the following models?

  1. Non-Government Railway
  2. Build/Operate/Transfer (BOT)
  3. Maintenance Management Contract
  4. Joint Venture with equity participation by Railways
  5. Design-Build-Operate (DBO)

Select the correct answer using the codes given below:

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

Q.7) Consider the following about Agroforestry.

  1. It is a dynamic, ecologically based, natural resource management system that, diversifies and sustains production and builds social institutions.
  2. Its objective is to Encourage and expand tree plantation in complementarity and integrated manner with crops and livestock to improve productivity, employment, income and livelihoods of rural households, especially the small holder farmers.
  3. Agroforestry has a lot in common with intercropping. Both have two or more plant species (such as nitrogen-fixing plants) in close interaction, both provide multiple outputs.
  4. National Agroforestry Policy is under the nodal ministry of Environment Forests and Climate Change.

Which of the following are correct about Agroforestry

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

Q.8) Consider the following:

  1. Department of Industrial Policy and Promotion (DIPP) has  permitted investments from Pakistan in sectors/activities other than defence, space and atomic energy.
  2. Recently Pakistan has moved from a Positive List regime to a Negative List regime and now subsequently awarded MFN status to India.

Select the correct answer from the codes given below:

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

Q.9) To check the menace of counterfeiting of banknotes, the RBI has initiated several measures. Which of the following are parts of these measures?

  1. New security features were added to banknotes in all denominations during the year 2005-06.
  2. Instructions have been issued to banks to disburse only sorted and genuine notes through their counters/ATMs
  3. RBI regularly conducts training programmes on detection of counterfeit notes for employees/officers of banks and other organizations handling large amount of cash.
  4. Posters on Know Your Banknotes are also displayed at the bank branches.

Select the correct answer from the codes given below:

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

Q.10) With reference to the concept of Food Security as enunciated in the FAO – World Food Summit-1996, which of the following are the integral components of Food Security?

  1. The availability of sufficient quantities of food of appropriate quality, supplied through domestic production or imports, including food aid.
  2. Access by individuals to adequate resources for acquiring appropriate foods for a nutritious diet.
  3. Utilization of food through adequate diet, clean water, sanitation and health care to reach a state of nutritional well-being where all physiological needs are met.
  4. The freedom to choose personally and culturally acceptable foods

Select the correct answer from the codes given below:

  1. 1 and 2
  2. 1 and 3
  3. 1, 2 and 3
  4. All the above

Q.11) Consider the following statements regarding Regional rural Banks (RRBs):

  1. They provide direct loans to small and marginal farmers.
  2. They are co-sponsored by the Reserve Bank of India.
  3. They also perform other banking operations.
  4. State Governments are share holders in RRBs.

Which of the above statements are correct about RRBs?

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

Q.12) Ultra Mega Power projects are a Government of India initiatives. Consider the following statements regarding UMPP?

  1. Every Ultra Mega Power Plant will have a capacity to generate more than 10,000 MW.
  2. They are all hydro power projects.

Which of the above statements are correct?

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

Q.13) ‘Disguised Unemployment’ refers to:

  1. Persons with no jobs
  2. More people employed for a job which a few can accomplish.
  3. Unemployment amongst women
  4. Unemployment of people above 60 years of age

Q.14) India has ….. % of world’s geographical area and …… % of the world’s population(according to 2011 census).

  1. 4.8, 16
  2. 2.1, 18
  3. 2.4, 17
  4. 1.8, 15

Q.15) Consider the following statements:

  1. The theory that says that the growth will percolate down to all sectors is called ‘Decentralised Growth theory’.
  2. The growth will percolate by creation of jobs and increase in demand for labour.

Which of the above statements are correct?

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

Q.16) Which of the below given statements is/are true about Value Added Tax (VAT)?

  1. VAT is a type of consumption tax.
  2. The amount of value-added tax that the user pays is the cost of the product, less any of the costs of materials used in the product that have already been taxed.

Select the correct code:

  1. 1 only
  2. 2 only
  3. Both
  4. None

Q.17) Which among the following definition(s) is/are incorrectly matched?

  1. Revenue Deficit : : difference between the revenue receipts and the revenue expenditure
  2. Budget Deficit : : when total expenditure exceeds total receipts, where, total expenditure includes aggregate of both revenue expenditure and capital expenditure. Like wise, total receipts includes both revenue receipts and capital receipts.
  3. Fiscal Deficit : : determined by arriving at the gap between the government’s total income and expenditure after excluding interest savings as well as interest payments
  4. None of the above

Q.18) Which of the following are correctly matched?

  1. Government borrowings from the Reserve Bank and treasury bills­ Capital Account
  2. Different proceeds of taxes levied by the government ­ Revenue Account
  3. Market loans raised by the government ­ Capital Account
  4. Divestment of equity holding in public sector enterprises ­ Revenue Account

Select the correct code:

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

Q.19) What is the difference between quaternary and quinary activities?

  1. While, quaternary activities are related to IT enabled services, quinary activities are related to financial services.
  2. Quaternary activities pertain to information processing. Whereas, quinary activities pertain to decision making.
  3. Both a and b
  4. None of the above

Q.20) Which of the following factors determine the location of an industry?

  1. Market
  2. Population density
  3. Industrial policy
  4. Climate of a region

Select the correct code:

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

Q.21) Identify the state that witnessed the lowest services growth in India—

  1. Jharkhand
  2. Odisha
  3. Bihar
  4. Jammu & Kashmir

Q.22) Consider the following:

  1. Interest and dividend receipts
  2. External grants and receipts from fiscal services
  3. External grants and receipts from the Union Public Service
  4. Disinvestment receipts

Choose the correct option that together constitutes Non-tax revenue in the economy—

  1. Only 1 and 2
  2. 1, 2, and 3
  3. 1, 2 , 3 and 4
  4. All of the above

Q.23) Consider the following statements:

  1. CSS funds are released only as central assistance to state plans
  2. The ‘plan’ expenditure of the Centre is greater than the ‘non-plan’ expenditure.

Choose the correct option from the following—

  1. Only 1
  2. Only 2
  3. Both 1 and 2
  4. None of the above

Q.24) Identify the country practicing the following type of agriculture:

  1. Farmers here have developed a unique hydroponics system in which plants can be grown on the water—on the floating organic bed of water hyacinth, algae and other plant residues.
  2. This environmentally friendly traditional cultivation technique utilizes the natural resources of wetlands to grow vegetables and other crops almost all year round and provides social, economic, agricultural and ecological benefits to the local population.
  3. Recently, it was designated by FAO as “Globally Important Agricultural Heritage Systems” for innovation, sustainability and adaptability.

Choose the correct option—

  1. India
  2. Bangladesh
  3. Myanmar
  4. Japan

Q.25) Identify the lake:

  1. It is a freshwater lake.
  2. It hosts the only floating national park in the world.
  3. It is also famous for its floating phumdis.

Choose the correct lake exhibiting the above-mentioned characteristics:

  1. Renuka Lake
  2. Kolleru lake
  3. Loktak Lake
  4. Pong Dam Lake


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