List of top Economics Questions

Read the following statements carefully:
Statement 1: The British policies were accountable for commercialisation of Indian agriculture.
Statement 2: In the larger interest of Indians, the British rulers focused on the infrastructural growth of India.
In the light of the given statements, choose the correct option from the following:
On the basis of the following data, estimate the value of National Income (NNP\textsubscript{FC}):
S.No.ItemsAmount (in ₹ crore)
(i)Household Consumption Expenditure\( 800 \)
(ii)Gross Business Fixed Capital Formation\( 150 \)
(iii)Gross Residential Construction Investment\( 120 \)
(iv)Government Final Consumption Expenditure\( 270 \)
(v)Excess of Imports over Exports\( 20 \)
(vi)Inventory Investments\( 50 \)
(vii)Gross Public Investments\( 130 \)
(viii)Net Indirect Taxes\( 20 \)
(ix)Net Factor Income from Abroad\( -25 \)
(x)Consumption of Fixed Capital\( 40 \)
Elaborate the likely impact of construction of two new Express Highways on the Gross Domestic Product (GDP) and Welfare in an economy.
Assuming for a hypothetical economy:
[(i)] Autonomous Consumption Expenditure ($\bar{C}$) = ₹ 250 crore
[(ii)] Marginal Propensity to Save (MPS) = 0.2
[(iii)] Autonomous Investments ($I_0$) = ₹ 200 crore Estimate the Break-even level of Income and Equilibrium level of Income, on the basis of information given above.
Read the following text carefully:
According to a report issued by a research organisation, there is a sharp decline in the overall demand in the economy, particularly in the private consumption segment. This dip in the macroeconomic variables highlights the urgent need for strategic actions to stimulate economic activities.
On the basis of the given text and common understanding, explain the measure which the government may take to solve the indicated problem.
Suppose there are only three firms in an imaginary economy, viz. X, Y and Z. During a year, the following transactions took place in the economy:
(I) Firm X sold goods worth ₹ 20,000 to Firm Y and ₹ 12,000 to Firm Z.
(II) Firm Y sold goods worth ₹ 11,000 to Firm X and ₹ 35,000 to Firm Z.
(III) Firm Z sold goods worth ₹ 57,000 to households for final consumption.
On the basis of the given transactions, calculate the value of Gross Domestic Product at Market Price (GDP\textsubscript{MP}) in the economy.
"Taxation is an effective tool to reduce the inequalities of income." Justify the given statement with valid reasons.
On the basis of the following hypothetical data:
YearNominal GDP (in ₹ crores)Real GDP (Adjusted to base year prices, in ₹ crores)
2020 – 21\( 3{,}000 \)\( 5{,}000 \)
2022 – 23\( 4{,}000 \)\( 6{,}000 \)
Calculate the percentage change in Real Gross Domestic Product (GDP) in the year 2022 – 23 using 2020 – 21 as the base year.
Distinguish between Autonomous transactions and Accommodating transactions.
Elaborate any two components of the Capital Account under the Balance of Payments Account.
Under the Keynesian theory, ‘Reference Line’ is a straight line passing through the origin drawn at an angle of _______.
(Choose the correct option to fill in the blank)
In a two-sector economy, the Aggregate Demand can be determined by adding ............ and ...............
Explain any two precautions pertaining to the Value Added Method of Estimation of National Income in a country.
Read the following statements carefully:
Statement 1: Marginal Propensity to Consume (MPC) refers to the consumption per unit of income.
Statement 2:As the income increases, the proportionate increase in the level of consumption is always more than the increase in the level of income.
In the light of the given statements, choose the correct option from the following:
The main objective of measuring the primary deficit is to highlight present ___________.
(Choose the correct option to fill in the blank)
Read the following statements carefully :
Statement 1: Import of heavy machinery from Japan is a source of demand for foreign exchange.
Statement 2: Financial aid by International Bank for Reconstruction and Development (IBRD) for landslide in Wayanad (Kerala) is a source of supply of foreign exchange.
In the light of the given statements, choose the correct option from the following :
To arrive at the value of Gross Value Added at Factor Cost (GVA\(_{FC}\)), .......... must be ................. to/from Gross Value Added at Market Price (GVA\(_{MP}\)).
Read the following statements carefully :
Statement 1: Public goods are those goods for which the payments are made by all the entities in the country.
Statement 2: Private goods are those goods which are provided by the government of a country at subsidised rates.
In the light of the given statements, choose the correct option from the following :
Under the ............ Exchange Rate System, the Central Bank can control the foreign exchange rate in a range bound manner.
Read the following statements – Assertion (A) and Reason (R). Choose the correct alternative from the options given below:
Assertion (A): Direct taxes are imposed on income/profits of individuals/companies.
Reason (R): The burden of payment of direct taxes cannot be shifted to any other entity.
Read the following statements carefully :
Statement 1: The government may reduce the repo rate, to control deflationary gap prevailing in the economy.
Statement 2: The government may reduce the deflationary gap, by selling off government securities (G-Sec) in the open market.
In the light of the given statements, choose the correct option from the following :

“British colonial rule in India executed a systematic economic exploitation that involved the extraction of India’s resources and wealth to benefit Britain.” Justify the given statement with valid explanation.

“The disinvestment policy of India under the 1991 reforms involved selling of part of the government’s stakes in Public Sector Undertakings (PSUs).”
Explain the rationale behind the decision undertaken by the government.

(a) (i) Distinguish between human capital and physical capital.
(ii) Define Sustainable Development.
OR 
(b) 
(i) Describe briefly the importance of micro-credit programmes in Rural India.
(ii) State any one strategy involved in attaining sustainable development in India.

(a) (i) Import substitution policy, if not applied carefully, can be a double-edged sword for any economy. Do you agree with the given statement? Justify your answer with valid arguments.
(ii) State how multilateral trade is different from bilateral trade.
OR 
(b) 
(i) Discuss briefly, causes and consequences of the tax reforms initiated during economic reforms in India.
(ii) Give one example each of a Navratna and a Maharatna company in the public sector in India.