List of top Economics Questions

Modernization is an important economic planning objective that focuses on _______ . 
(i) Adoption of innovative technology
(ii) Equal distribution of income and wealth 
(iii) Bringing positive changes in the social outlook 

China was able to control its rapid population growth rate owing to ____ .

During the British rule, India’s foreign trade had various features except _________ .

Elaborate how and why carbon pricing should be promoted.
Differentiate between positive and negative externalities.
\[ \begin{array}{|c|l|r|} \hline \textbf{S.No.} & \textbf{Items} & \textbf{Amount (in ₹ Crore)} \\ \hline (i) & \text{Tax Receipts} & 1,200 \\ \hline (ii) & \text{Revenue Expenditure} & 3,700 \\ \hline (iii) & \text{Non-Tax Receipts} & 2,000 \\ \hline (iv) & \text{Recovery of Loans} & 145 \\ \hline (v) & \text{Capital Expenditure} & 500 \\ \hline (vi) & \text{Disinvestment} & 120 \\ \hline (vii) & \text{Interest Payments} & 1,070 \\ \hline \end{array} \]
Distinguish between direct tax and indirect tax with the help of suitable examples.
Reserve Bank of India undertakes the important function of managing the government’s banking transactions.
Discuss the above-stated function performed by the Reserve Bank of India.
\[ \begin{array}{|c|c|c|c|} \hline \textbf{Income (Y)} & \textbf{Savings (S)} & \textbf{(APC)} & \textbf{(MPS)} \\ \hline 0 & -50 & -- & -- \\ \hline 100 & 0 & 1 & 0.5 \\ \hline 200 & 50 & \frac{3}{4} & 0.5 \\ \hline 300 & 100 & \frac{2}{3} & 0.5 \\ \hline \end{array} \]
\[ \begin{array}{|c|l|r|} \hline \textbf{S.No.} & \textbf{Items} & \textbf{Amount (₹ crore)} \\ \hline (i) & \text{Wages and Salaries} & 2,000 \\ \hline (ii) & \text{Rent and Interest} & 700 \\ \hline (iii) & \text{Corporate Tax} & 500 \\ \hline (iv) & \text{Undistributed Profit} & 300 \\ \hline (v) & \text{Consumption of Fixed Capital} & 200 \\ \hline (vi) & \text{Dividend} & 150 \\ \hline (vii) & \text{Net Factor Income from Abroad} & -50 \\ \hline \end{array} \]

Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below: 
Assertion (A): The equilibrium level of income is determined when ex-ante spending and ex-ante output are equal. 
Reason (R): The equilibrium level of income may or may not be the same as the full employment level of output.

Identify the incorrect statement with reference to Cash Reserve Ratio (CRR):

Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below: 
Assertion (A): The maximum value of Marginal Propensity to Save (MPS) can be unity. 
Reason (R): At the break-even level of income, savings are zero. 

Suppose in an imaginary economy, autonomous consumption = Rs. 500 crore and marginal propensity to consume = 0.8. The saving function for the economy would be ________ . (Choose the correct alternative to fill in the blank):

Read the following statements carefully: 
Statement 1: Money is a commodity which is generally accepted as a medium of exchange. 
Statement 2: Money solved the problem of double coincidence of wants. 
In the light of the given statements, choose the correct alternative from the following:

Read the following statements carefully: 
Statement 1: Economic territory and political frontier of a nation are one and the same thing. 
Statement 2: American Embassy in India is a part of the economic territory of India. 
In the light of the given statements, choose the correct alternative from the following:

Study the following figure carefully and choose the correct alternative to fill in the blank:

 Balance of Payments Account 

Identify which of the following will appear on the debit side in the Capital Account of India’s Balance of Payments:

Read the following statements carefully: 
Statement 1: A consumption function describes the relationship between consumption and savings. 
Statement 2: Consumption function consists of two components---autonomous consumption and induced consumption. 
In the light of the given statements, choose the correct alternative from the following:

“Every coin has two sides – debate over farm subsidies is one such classic example of the same.” Justify the given statement with two arguments each in favour of and against the continuation of the farm subsidies.
“Under the liberalisation measures taken by the Government of India, Trade and Investment Policy reforms were extremely crucial.” Reject or support the given statement with valid arguments.
(i) Elaborate the need to promote women’s education in India.

State and elaborate whether the following statements are true or false, with valid arguments:
[i.] In the recent past, the Government of India has taken crucial steps, like Jan-Dhan Yojana, for efficient allocation of financial resources. 
[ii.] Worker–population ratio is an indicator used for analyzing the employment situation in a nation.

Explain the consequences of one-child policy adopted by China in the 1970s.

“In India, National Education Policy 2020 has stressed a lot on in-service training of the teachers.” 
(i) Identify the source of Human Capital Formation (HCF) indicated in the aforesaid statement.