Practice Quiz :- 18

1. Who wrote a book describing the theory of economic drain of India during British rule?
(a) Lala Lajpat Rai
(b) Mahatma Gandhi
(c) J.L.Nehru
(d) Dadabhai Naoroji

Ans.(d) Dadabhai Naoroji

2. As the economy develops, the share of the tertiary sector in the GDP:
(a) Decreases
(b) Decreases then increases
(c) Increases
(d) Remains constant

Ans.(c) Increases

3. The National Income of a country is
(a) the annual revenue of the Government
(b) sum total of factor incomes
(c) surplus of PSU’S
(d) export minus Import

Ans.(b) sum total of factor incomes

4. The most appropriate measure of a country’s economic growth is its
(a) Gross Domestic Product
(b) Net Domestic Product
(c) Net National Product
(d) Per capita Real Income

Ans.(d) Per capita Real Income

5. Which one among the following countries has the lowest GDP per capita?
(a) China
(b) India
(c) Indonesia
(d) SriLanka
6. The major aim of devaluation is to
(a) Encourage exports
(b) Encourage imports
(c) Encourage both exports and imports
(d) Discourage both exports and imports

Ans.(a) Encourage exports

7. Inflation is caused by
(a) Increase in supply of goods
(b) Increase in cash with the government
(c) Decrease in money supply
(d) Increase in money supply

Ans.(d) Increase in money supply

8. Devaluation usually causes the internal price to
(a) Fall
(b) Rise
(c) Remain unchanged
(d) None of these

Ans.(c) Remain unchanged

9. In India, one-rupee coins and notes and subsidiary coins are issued by
(a) The Reserve Bank of India
(b) The Central Government
(c) The State Bank of India
(d) The unit trust of India

Ans.(b) The Central Government

10. The process of curing inflation by reducing money supply is called
(a) Cost-push inflation
(b) Down–pull inflation
(c) Disinflation
(d) Reflation

Ans.(c) Disinflation