List of top Economics Questions

'Open Market Operation by the Reserve Bank of India (RBI) helps in regulating money supply in the economy." Justify the given statement.
Suppose, an economy is in equilibrium. From the following data, calculate investment expenditure in the economy: Given: National Income (Y) = 10,000 crore Marginal Propensity to Consume (MPC) = 0.8 Autonomous Consumption (C) = 100 crore
"In an economy, Aggregate Demand (AD) is more than Aggregate Supply (AS)." Elaborate the possible impacts of the same, on the level of output, income and employment.
Define Effective Demand Principle.
Define with suitable examples, autonomous transactions and accommodating transactions in the Balance of Payments of an economy.
From the following data, estimate the value of Net Indirect Taxes (NIT): \[ \begin{array}{|c|l|c|} \hline \textbf{S.No.} & \textbf{Particulars} & \textbf{Amount (in Rs. crore)} \\ \hline (i) & \text{Net National Product at Market Price } (NNP_{mp}) & 1,400 \\ \hline (ii) & \text{Net Factor Income from Abroad } (NFIA) & 100 \\ \hline (iii) & \text{Gross National Product at Factor Cost } (GNP_{fc}) & 1,300 \\ \hline (iv) & \text{Consumption of Fixed Capital} & 100 \\ \hline \end{array} \]

Calculate Net Value Added at Factor Cost (NVAfc) from the following data: \[ \begin{array}{|c|l|c|} \hline \textbf{S.No.} & \textbf{Particulars} & \textbf{Amount (in Rs. lakh)} \\ \hline (i) & \text{Fixed capital goods (expected life span 5 years)} & 15 \\ \hline (ii) & \text{Domestic Sales} & 200 \\ \hline (iii) & \text{Change in stock} & 10 \\ \hline (iv) & \text{Exports} & 10 \\ \hline (v) & \text{Single use producer goods} & 120 \\ \hline (vi) & \text{Net indirect taxes} & 20 \\ \hline \end{array} \]

If in an economy the Balance of Trade is showing a deficit of Rs.200 crore and the value of import is Rs.900 crore, then the value of exports would be Rs.crore. (Fill up the blank with the correct alternative.)

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:
"Industrial sector performed poorly in the economic reform period." Elucidate the given statement.
"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.
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.
"Infrastructural development is an essential element to obtain the full potential of the rural sector in India". Justify the given statement with valid arguments.
Explain the role of affordable healthcare facilities in promoting human capital in a country.
------ indicator may be defined as the measure of the extent of demographic participation in Social and Political decision making in a Country.
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.