CBSE Questions for Class 8 General Knowledge Indian Economy Quiz 2 - MCQExams.com

Which of the following does not come under the taxes levied by the Centre but collected and appropriated by the States?
Stamp duties.
Excise duties on medicinal and toilet preparations containing alcohol.
Taxes on inter-state sale and purchase.
Surcharge on taxes and duties.
Codes
  • 1, 3 and 4
  • 1 and 3
  • 2 and 3
  • 1 and 4
Who can levy tax on commerce?
  • Union
  • State
  • Both (a) and (b)
  • Either (a) or (b)
Consider the following statements
1.India's Gini index is more favourable than that of China which has higher HDI ranking.
India has higher relative inequality in urban areas than the rural areas.
Which of the statements given above is/are correct?
  • Only 1
  • Only 2
  • Both 1 and 2
  • Neither 1 nor 2
In India, increase in population and diversion of agricultural land for non-agricultural purposes have resulted in the decrease of ________________.
  • forested land
  • cultivable wasteland
  • net sown area
  • double cropped area
Which of the following is true about Conditional Cash Transfers (CCTs)?
Government transfers cash to the beneficiaries.
Not only providing cash but also inducing positive behaviour in the people through the conditions.
Government transfers cash to the beneficiaries through mediators.
One and only function of CCT is to provide cash to the needy households.
Choose the correct answer using the codes given below
  • 2 and 3
  • 1 and 4
  • 3 and 4
  • 1 and 2
Which of the following can be the property(ies) of the Lorenz Curve?
Lorenz Curve cannot rise above the line of perfect equality.
It cannot sink below the line of perfect inequality.
It is increasing and convex.
Select the correct answer using the codes given below
  • 1,2 and 3
  • 1 and 2
  • Only 2
  • Only 1
Disguised unemployment generally means that ________________.
  • large number of people remain unemployed.
  • alternative employment is not available.
  • marginal productivity of labour is zero.
  • productivity of workers is low.
Consider the following 
Hotels and restaurants
Motor transport undertakings
Newspaper establishments
Private medical institutions
The employees of which of the above can have the 'Social Security' coverage under Employees State Insurance Scheme?
  • 1,2, 3 and 4
  • 1,2 and 3
  • 2 and 3
  • 2 and 4
Consider the following statements about the inflation?
(1) Inflation can lead to inequality in the distribution of income in an economy.
(2) Inflation can lead to recession in the many sectors of an economy.
Which of the statements given above is/are correct?
  • Only 1
  • Only 2
  • Both 1 and 2
  • Neither 1 nor 2
Labour Force Participation Rate indicates_____________.
  • $$\dfrac{Number \,of \, employed \,persons }{Total\, population} \times 1000$$
  • $$\dfrac{Number \,of \, employed \,persons  + Number \,of\, unemployed\, persons }{Total\, population} \times 1000$$
  • $$\dfrac{Number \,of\, unemployed\, person }{Number\, of\, employed\, persons + Number\, of\, unemployed \,persons}\times 1000$$
  • $$\dfrac{Number \,of \,employed \,persons}{Number \,of \,unemployed\, persons} \times 1000$$
Unemployment which occurs when workers move from one job to another is known as _______________.
  • Seasonal unemployment
  • Frictional unemployment
  • Cyclic unemployment
  • Technological unemployment
When the productive capacity of the economic system of a state is inadequate to create sufficient number of jobs, it is called _______________.
  • Seasonal Unemployment
  • Structural Unemployment
  • Disguised Unemployment
  • Cyclic Unemployment
The main objective of TRYSEM was _______________.
  • to train urban youth for self employment.
  • to train rural youth for self employment.
  • Both 'a' and 'b'
  • None of the above
What does cyclical unemployment mean?
  • Unemployment during recessionary phase of trade cycle
  • Disguised unemployment
  • Seasonal unemployment
  • Voluntary unemployment
Which one of the following is likely to be the most inflationary, in its effect?
  • Repayment of public debt
  • Borrowing from the public to finance a budget deficit
  • Borrowing from banks to finance a budget deficit
  • Creating new money to finance a budget deficit
Consider the following statements
Disguised unemployment exists frequently in developing countries.
Disguised unemployment is characterised by informal labour and agricultural labour markets.
Which of the statements given above is/are correct?
  • Only 1
  • Only 2
  • Both 1 and 2
  • Neither 1 nor 2
Which of the statements is/are true with respect to Philips Curve?
(1) It shows the trade-off between unemployment and inflation.
(2) The downward sloping curve of Philips Curve is generally held to be valid only in the short run.
(3) In the ling run, Philips Curve is usually thought to be horizontal at the Non-Accelerating Inflation Rate of Unemployment (NAIRU).
Select the correct answer using the codes given below
  • Only 1
  • 2 and 3
  • 1 and 2
  • 1, 2 and 3
Which one of the following consequences can be observed when there is an undue expansion or increase of the money supply in an economy?
  • Headline inflation
  • Chronic deflation
  • Chronic inflation
  • Core inflation
Disguised unemployment refers to ______________________.
  • employment of more persons in a job which can accomplish lesser number of person
  • persons with no job
  • unemployment among housewives
  • unemployment among people above 60 years of age
Consider the following statements 
1 . Primary Agricultural Credit Societies are the grass - root level arms of the short - term cooperative credit structure .
2 . Primary Agricultural Credit Societies can be started with ten or more people belonging to a village .
Which of the statement given above is / are correct ? 
  • Only 1
  • Only 2
  • Both 1 and 2
  • Neither 1 nor 2
Which oneof the following unemployment is occurred due to the rise in wages for an employee above what a company is willing to pay?
  • Frictional unemployment
  • Disguised unemployment
  • Seasonal unemployment
  • Classical unemployment
Select the one which is not the responsibility of Gram Sabha under the 'Rural Employment Guarantee Act, 2005'.
  • To recommend projects to the Gram Panchayat and prepare list of possible works
  • To receive application for work and issue a rated receive
  • To monitor the execution of works within the Gram Panchayat
  • To conduct regular social audits of all projects taken up within the Gram Panchayat
Structural unemployment arises due to__________.
  • deflationary condition
  • heavy industry bias
  • shortage of raw materials
  • inadequate productive capacity
Which one of the following curves is a graphical representation of the relationship between unemployment and the job vacancy rate?
  • Phillips curve
  • Laffer curve
  • Beveridge curve
  • Friedman curve
Which one of the following coin the term 'Stagflation' in the economy?
  • lain Macleod
  • Milton Friedman
  • J M Keynes
  • William Philips
Consider the following statements regarding the determination of inflation in India
(1) Food price index consists of two sub-components, namely primary food articles and manufactured food products.
(2) The weight of the primary food articles is less than the manufactured food products.
  • Only 1
  • Only 2
  • Both 1 and 2
  • Neither 1 nor 2
Disguised unemployment in India is mainly related to
Agricultural sector
Rural sector
Factory sector
Urban area 
Select the correct answer using the codes given below
  • 1 and 2
  • 1 and 4
  • 2 and 4
  • 1,2 and 4
Which of the following factors led to a decline in inflation rate in India during 2014-15?
(1) Persistent decline in crude oil prices
(2) Softness in global prices of tradables such as edible oils and coal
(3) Tight monetary policy pursued by the Reserve Bank of India
Select the correct answer using the codes given below
  • Only 1
  • 1 and 2
  • 2 and 3
  • 1, 2 and 3
Indian Development Report does not give for each sample village
  • Infrastructure and Amenities Index
  • Education Related Index
  • Health Related Index
  • Unemployment Related Index
Which of the following income groups has/have benefits during inflation?
(1) Business community
(2) Fixed income groups
(3) Farmers
(4) Investors (who invest in debentures)
Select the correct answer using the codes given below
  • 1 and 4
  • 1 and 3
  • 2 and 4
  • All of these
Which one of the following types of unemployment is common in Indian agriculture?
  • Seasonal
  • Disguised
  • Frictional
  • Structural
Which one of the following States had States had started the Central Land Development  Banking System for the first time in India ?
  • Chennai , Tamil Nadu
  • Pune , Maharashtra
  • Baroda ,Gujrat
  • Bengaluru , Karnataka
In terms of Human Development Index, India falls under which of the following categories?
  • High
  • Medium
  • Low
  • Very low
Which one of the following measures is generally used the government to contain the recession of the economy?
  • Increasing money, supply
  • Increasing government spending
  • Decreasing taxation
  • All of the above
Consider the following statements
(1) Inflation swap is an over-the-counter and exchange-traded derivative that is used to transfer inflation risk from one counter party to another.
(2) Limited price inflation swaps are inflation swaps which are capped and floored between $$0$$% and $$5$$%.
Which of the statements given above is/are correct?
  • Only 1
  • Only 2
  • Both 1 and 2
  • Neither 1 nor 2
Which among the following is an asset for commercial bank ?
  • Credit to farmer.
  • Deposit of public.
  • Borrowing from RBI.
  • Demand deposit of industrial.
In which area is the Public sector the most dominant in Indian Economy?
  • Transport
  • Steel production
  • Commercial banking
  • Trade and hotels
Which one of the following ranges is the percentage of the services sector's contribution to the GDP at the factor cost excluding the construction activities of the Indian economy?
  • $$40$$ to $$45$$
  • $$45$$ to $$50$$
  • $$50$$ to $$55$$
  • $$55$$ to $$60$$
Consider the following statements about The 'Top Five Sectors' of the Services sector of Indian economy
$$1.$$ Finance and non-finance
$$2.$$ Telecommunication
$$3.$$ Compute software and hardware
$$4.$$ Hospital and diagnostic centres/ services
$$5.$$ Construction activities
Which of the Services sector given above the included in the 'Top Five Services Sector' of the Indian economy?
  • $$1, 2, 3$$ and $$5$$
  • $$1, 3, 4$$ and $$5$$
  • $$1, 2, 3$$ and $$4$$
  • All of the above
Special Drawing Rights (SDRs) facilities is available at 
  • International Monetary Fund (IMF)
  • World Bank (WB)
  • International Development Association (IDA)
  • Organisation of Economics Cooperation and Development (OEG)
The Poverty Gap Index or the Foster-Greer-Thorbecke index is the difference between the
  • mean income of poor and poverty line.
  • median income of poor and mean income of poor.
  • median income of poor and poverty line.
  • mode of the income of poor and mean income of poor.
Consider the following statements
$$1.$$ Software is one sector in which India has achieved a remarkable global brand identity.
$$2.$$ The contribution of the services sector to the national economy, both in terms of value addition and employment generation is growing over the years.
Which of the statements given above is/ are correct?
  • Only $$1$$
  • Only $$2$$
  • Both $$1$$ and $$2$$
  • Neither $$1$$ nor $$2$$
Consider the following compounded annual growth rate of the major components of the Services sector in the Eleventh Five Year Plan
$$1.$$ Software Products
$$2.$$ Business Process Outsourcing (BPO)
$$3.$$ Engineering Services
$$4.$$ IT Services
Which of the following is the correct sequence (the highest to the least) of the compounded annual growth rate for the major component of the Services sector in the Eleventh Five Year Plan.
  • $$1, 2, 3, 4$$
  • $$1, 3, 4, 2$$
  • $$3, 2, 4, 1$$
  • $$3, 2, 1, 4$$
India's rank in the World Service Output is
  • $$13th$$
  • $$15th$$
  • $$21st$$
  • $$10th$$
Which one of the following is associated with the NAIRU (Non-Accelerating Inflation Rate of Unemployment) which refers to a level of unemployment below which inflation rises? 
  • JM Keynes
  • Milton Friedman
  • Karl Marx
  • Euler Engel
Which one of the following is not included in the agriculture and allied services of Indian economy?
  • Fishing
  • Forestry
  • Logging
  • Food processing
What is the main objective of Golden Rays Project?
  • To increase the productivity of maize in tribal districts
  • To increase the productivity of wheat in tribal districts
  • To increase the productivity of oil seeds in tribal districts
  • To increase the productivity of turmeric in tribal districts
Consider the following statements
National Rainfed Area Authority (NRAA) was constituted in 2006 to give focused attention to the problem of the rainfed areas of the country.
National Rainfed Area Authority (NRAA) has a two tier structure, the Governing  Board and  Executive Committee.
Union Rural Development Minister is the Chairman of the National Rainfed Area Authority (NRAA).
Which of the statements given above is/are correct? 
  • Only 1
  • Only 2
  • 1 and 2
  • All of these
From which one of the following years, the Rolling Plan of the Indian economy was started?
  • 1966-1969
  • 1978-1983
  • 1980-1985
  • 2002-2007
In which one of the following Five Year Plans in Indian economy did not fix the targets for the crop function for the first time?
  • Fifth Five Year Plan
  • Sixth Five Year Plan
  • Eighth Five Year Plan
  • Tenth Five Year Plan
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