← General Awareness

Economy — Questions with Solutions

16 solved Economy questions from General Awareness, as asked in SSC CGL and other SSC exams. Read the answer and explanation below, then practise the full set in the practice section.

Practise this topic

Q1. The PM-PRANAM scheme aims to:

पीएम-प्रणाम (PM-PRANAM) योजना का उद्देश्य क्या है?

  1. A. Promote religious tourism
  2. B. Reduce the use of chemical fertilizers by promoting alternatives
  3. C. Provide pension to small shopkeepers
  4. D. Digitalize land records

Solution

PM-PRANAM aims to reduce chemical fertilizer use by promoting alternatives.

Q2. Assertion (A): In the Demographic Transition Model, India is currently in the late third stage. Reason (R): Birth rates are falling significantly while death rates have already stabilized at a low level.

कथन (A): जनसांख्यिकीय संक्रमण मॉडल में, भारत वर्तमान में तीसरे चरण के अंत में है। कारण (R): जन्म दर काफी गिर रही है जबकि मृत्यु दर पहले ही निम्न स्तर पर स्थिर हो चुकी है।

  1. A. Both A and R are true, and R is the correct explanation of A.
  2. B. Both A and R are true, but R is not the correct explanation of A.
  3. C. A is true, but R is false.
  4. D. A is false, but R is true.

Solution

India is in the late third stage of demographic transition, characterized by declining birth rates and low, stable death rates.

Q3. As per the definition of Census of India, a 'marginal worker' is a person who works for:

भारत की जनगणना की परिभाषा के अनुसार, 'सीमांत कार्यकर्ता' (marginal worker) वह व्यक्ति है जो काम करता है:

  1. A. less than 183 days (or six months) in a year
  2. B. more than 183 days (or six months) in a year
  3. C. eight months in a year
  4. D. 83 days in a year

Solution

A marginal worker is officially defined as someone who works for less than 183 days in a year.

Q4. Which of the following statements is correct?

निम्नलिखित में से कौन सा कथन सही है?

  1. A. The five-year plan focuses mostly on private intervention in the economy.
  2. B. The five-year plan always focused on the growth of the tertiary sector.
  3. C. The five-year plan permits long-term intervention by the government in the economy.
  4. D. A five-year plan always stresses market-oriented activities.

Solution

Five-year plans historically allowed the state/government to make long-term structural interventions in the economy.

Q5. Which Five-Year Plan primarily focused on the 'Garibi Hatao' initiative?

किस पंचवर्षीय योजना ने मुख्य रूप से 'गरीबी हटाओ' पहल पर ध्यान केंद्रित किया?

  1. A. Sixth Five-Year Plan
  2. B. Fourth Five-Year Plan
  3. C. Fifth Five-Year Plan
  4. D. Third Five-Year Plan

Solution

The 'Garibi Hatao' (Poverty Alleviation) slogan was given by Indira Gandhi and became the main objective of the Fifth Five-Year Plan.

Q6. Which of the following is NOT correct with regards to the history of calculating National Income (NI) in India?

भारत में राष्ट्रीय आय (NI) की गणना के इतिहास के संबंध में निम्नलिखित में से कौन सा कथन सही नहीं है?

  1. A. First attempt to compute NI was made by Dadabhai Naoroji.
  2. B. First official attempt to compute NI was made by PC Mahalanobis.
  3. C. Dadabhai Naoroji divided the Indian economy into two parts: primary sector and secondary sector.
  4. D. First scientific method to compute NI was used by Dr VKRV Rao.

Solution

Dadabhai Naoroji did not systematically divide the economy into primary and secondary sectors. This statement is incorrect.

Q7. Which defines light industries accurately?

हल्के उद्योगों (light industries) को कौन सटीक रूप से परिभाषित करता है?

  1. A. Processing of heavy ores and minerals
  2. B. Manufacturing of large industrial equipment
  3. C. Dependence on bulky raw materials
  4. D. Utilizing lightweight inputs for consumer products

Solution

Light industries are typically less capital-intensive and more consumer-oriented, utilizing lightweight raw materials to manufacture goods.

Q8. Assertion (A): UDAN Scheme boosts regional air links. Reason (R): It offers viability gap funding to airlines.

कथन (A): उड़ान (UDAN) योजना क्षेत्रीय हवाई संपर्कों को बढ़ावा देती है। कारण (R): यह एयरलाइनों को 'वायबिलिटी गैप फंडिंग' (viability gap funding) प्रदान करती है।

  1. A. Both true, R explains A
  2. B. Both true, R does not explain A
  3. C. A true, R false
  4. D. A false, R true

Solution

The UDAN scheme boosts regional connectivity specifically by offering Viability Gap Funding to airlines to make regional routes financially feasible.

Q9. A higher Human Development Index (HDI) indicates:

उच्च मानव विकास सूचकांक (HDI) क्या दर्शाता है?

  1. A. Lower literacy
  2. B. Higher life expectancy and education
  3. C. High inflation
  4. D. Poor income levels

Solution

HDI is a summary measure of average achievement in life expectancy, education, and per capita income.

Q10. A higher Human Development Index (HDI) indicates:

उच्च मानव विकास सूचकांक (HDI) क्या दर्शाता है?

  1. A. Lower literacy
  2. B. Higher life expectancy and education
  3. C. High inflation
  4. D. Poor income levels

Solution

HDI is a summary measure of average achievement in life expectancy, education, and per capita income.

Q11. Match the concepts in column A with their respective descriptions in column B. Column A: a. Gross national product, b. Net national product, c. Personal income, d. Disposable personal income. Column B: 1. Annual income received by the individuals, 2. After the tax of personal income, 3. Money value of the national output, 4. Net production of goods services during the year.

कॉलम A में दी गई अवधारणाओं का कॉलम B में दिए गए उनके संबंधित विवरणों के साथ मिलान करें। कॉलम A: a. सकल राष्ट्रीय उत्पाद, b. शुद्ध राष्ट्रीय उत्पाद, c. व्यक्तिगत आय, d. प्रयोज्य व्यक्तिगत आय। कॉलम B: 1. व्यक्तियों द्वारा प्राप्त वार्षिक आय, 2. व्यक्तिगत आय के कर के बाद, 3. राष्ट्रीय उत्पादन का मौद्रिक मूल्य, 4. वर्ष के दौरान वस्तुओं और सेवाओं का शुद्ध उत्पादन।

  1. A. a-2, b-1, c-3, d-4
  2. B. a-3, b-1, c-2, d-4
  3. C. a-3, b-4, c-1, d-2
  4. D. a-4, b-3, c-2, d-1

Solution

Gross National Product (a) is the money value of national output (3). Net National Product (b) is the net production during the year (4). Personal income (c) is the annual income received by individuals (1). Disposable personal income (d) is income left after personal taxes (2).

Q12. Which of the following options is the most appropriate cause for unemployment in India?

भारत में बेरोजगारी के लिए सबसे उपयुक्त कारण निम्नलिखित में से कौन सा विकल्प है?

  1. A. Over population
  2. B. Environment conditions
  3. C. High educational systems
  4. D. Lack of labour force

Solution

A massive population growth creates a mismatch between the supply of labour and available job opportunities, making over-population a primary cause of unemployment in India.

Q13. What challenge does foreign investment often face in India?

  1. A. Excessive foreign competition
  2. B. Inconsistent regulatory environment
  3. C. Lack of skilled labour
  4. D. Lack of consumer base

Solution

Foreign investors often cite India's inconsistent regulatory environment and complex bureaucratic hurdles as major challenges.

Q14. ____ is an industry association and self-regulatory organisation (SRO) whose primary objective is to work towards the robust development of the microfinance sector.

  1. A. Self-help Group Association
  2. B. Microfinance Institutions Network
  3. C. Microfinance and Investments Regulatory Authority
  4. D. NABARD

Solution

Microfinance Institutions Network (MFIN) is an SRO for the regulated microfinance sector in India.

Q15. Which of the following goods needs further transformation in the economic process?

निम्नलिखित में से किस वस्तु को आर्थिक प्रक्रिया में आगे परिवर्तन (transformation) की आवश्यकता है?

  1. A. Consumer durable goods
  2. B. Finished goods
  3. C. Intermediate goods
  4. D. Capital goods

Solution

Intermediate goods are used as inputs for producing other goods and need further transformation.

Q16. What is the relationship between interest rate and demand for money?

  1. A. No relationship exists
  2. B. Inverse
  3. C. Direct
  4. D. Proportionate

Solution

There is an inverse relationship between the interest rate and the demand for money. When interest rates are high, people prefer to hold less cash and save more to earn returns, lowering money demand.