Practice Quiz :- 14


1. The representation of the relationship between possible rates of taxation and the resulting levels of government revenue is called
(a) Laffer Curve
(b) Griffin curve
(c) Philips curve
(d) Gini’s curve

Ans.(a) Laffer Curve

2. Which one of the following areas is the main aim of ASIDE scheme started by Indian Government ?
(a) To facilitate the import in the country
(b) To encourage the export
(c) To facilitate the movement of expatriates
(d) None of the above

Ans.(b) To encourage the export

3. India is not a member of which of the following?
(a) CIS
(b) SAARC
(c) SAFTA
(d) WTO
4. Special Drawing Rights (SDRs) is available at
(a) IBRD
(b) IMF
(c) IDA
(d) OECD
5. Which one of the following is the act of stimulating the economy by increasing the money supply or by reducing taxes ?
(a) Disinflation
(b) Reflation
(c) Inertial inflation
(d) Inflation hedge

Ans.(b) Reflation

6. The standard of living in a country is represented by its
(a) Poverty ratio
(b) Per capita income
(c) National income
(d) Unemployment rate

Ans.(b) Per capita income

7. Which one of the following laws / curves stated that the lower the unemployment in an economy, the higher the rate of Inflation ?
(a) Gini’s curve
(b) Verdoorn’s law
(c) Gibrat’s law
(d) Philips curve

Ans.(d) Philips curve

8. Which one of the following is related with the Atkinson’s Index of an economy ?
(a) A method to determine the income inequality
(b) An effect of supply demand mismatch
(c) A method to determine the unemployment
(d) None of the above

Ans.(a) A method to determine the income inequality

9. Which one of the following curves is a graphical representation of the relationship between unemployment and the job vacancy rate ?
(a) Philips curve
(b) Laffer’s curve
(c) Beveridge curve
(d) Friedman’s curve

Ans.(c) Beveridge curve

10. Which of the following sectors of the Indian Economy is prohibited from Foreign Direct Investments (FDIs)?
(a) Retail Trading
(b) Lottery Business
(c) Gambling and Betting
(d) All of the above

Ans.(d) All of the above

11. Which one of the following countries has the highest percentage of the services sector in the GDP of the country ?
(a) United states
(b) France
(c) United Kingdom
(d) Spain

Ans.(a) United states

12. Which one of the following cities is identified as the hottest out sourcing destination in the world ?
(a) Dublin, Ireland
(b) Bengaluru, India
(c) Makati city,the Philippines
(d) Tokyo, Japan

Ans.(b) Bengaluru, India

13. Which one of the following items has gained the highest growth rate in the import composition of the Indian Economy in the last decade ?
(a) pearls, precious and semiprecious stones
(b) gold and silver
(c) oil-cake and other solid residues
(d) none of the above

Ans.(b) gold and silver