List of top Economics Questions

From the following, identify the correct reasons that may affect the supply of foreign exchange in an economy:
I. Purchase of land in England by an Indian
II. Foreign tourists visiting Taj Mahal
III. Donation of 500 million dollars from Microsoft
IV. Indian students going to Australia for studies

The measurement of Balance of Payments deficit is based on transactions.

Identify, what does the shaded area (change in EFG), in the given figure indicate?

I. Consumption > Income
II. Saving = Zero (0)
III. Consumption < Income
IV. Saving < Zero (0)

From the given table, identify that level of income, where Average Propensity to Save (APS) becomes zero: \[ \begin{array}{|c|c|c|} \hline \textbf{Income (Rs. crore)} & \textbf{Consumption (Rs. crore)} & \textbf{Savings (Rs. crore) (Y - C)} \\ \hline 0 & 50 & -50 \\ \hline 50 & 75 & -25 \\ \hline 100 & 100 & 0 \\ \hline 200 & 150 & 50 \\ \hline 300 & 200 & 100 \\ \hline 400 & 250 & 150 \\ \hline \end{array} \]

The level of income where Average Propensity to Save (APS) becomes zero is at Income = Rs. 100 crore, since savings (\( S = Y - C \)) equals zero at this point.

In a hypothetical economy, if entire additional income is consumed, the value of investment multiplier would be . (Fill up the blank with the correct alternative.)

Read the following statements carefully:
Statement 1: Expost savings and Expost investments are equal at all levels of income.
Statement 2: Under the effective demand principle, the equilibrium output is equal to exante Aggregate Demand (AD). In the light of the given statements, choose the correct alternative from the following:

Identify which of the following is not considered as ‘Normal Resident’ of India?

If in an economy the initial deposits are Rs.4,000 crore and Reserve Ratio (RR) is 10 percent. The value of total deposit created would be Rs. crore.

“Mr. Sahotra borrowed funds from bank for purchasing a new house.” From the above statement, identify the indicated function of money:

Explain the need and type of land reforms implemented in the agriculture sector.

"In the post-reform period the government of India decided to privatise profit making Public Sector Undertakings (PSUs)." Do you agree with the given statement? Give valid arguments in support of your answer.

"Industrial sector performed poorly in the economic reform period." Elucidate the given statement.

Meaning of 'Human Development':

"In a nation like India, self employment provides an important avenue for employment generation." Defend or refute the given statement with valid arguments.

Explain the role of affordable healthcare facilities in promoting human capital in a country.

"Infrastructural development is an essential element to obtain the full potential of the rural sector in India". Justify the given statement with valid arguments.

Read the following statements carefully: Statement 1: China has used the Market system mechanism without losing political commitment to create additional social and economic opportunities. Statement 2: India, Pakistan, and China have similar physical endowments but totally different Political systems.

"Opening up of Suez Canal helped in establishing the British monopoly control over India's foreign trade". Justify the given statement with valid arguments.