List of practice Questions

“Depreciation of currency may promote exports of a nation.” 
Defend or refute the given statement with valid arguments.

“Accommodating transactions are undertaken to maintain stability in the Balance of Payments Account.” 
Justify the given statement with a valid explanation.

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.

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.

Suppose in an imaginary economy, autonomous consumption = ₹ 500 crore and marginal propensity to consume = 0.8. The saving function for the economy would be _________ .  

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.

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

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

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.

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.

Identify which of the following is not one of the merits of a fixed exchange rate system:

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

Define disguised unemployment. State its implications on output and employment in a country.
Elaborate the need to promote women’s education in India.
State any two sources of data on unemployment in India.
Discuss any two benefits accruing from human capital formation.
Discuss any two factors that lead to stagnating Indian agriculture sector during British rule.
State any two strategies to achieve the objective of sustainable development.

Interpret the given picture and explain any one strategy to control it from becoming an ecological disaster. 
 


 

“The Government of India has taken various measures to align the agricultural marketing system with the growing production activities in the rural areas.”
Do you agree with the given statement? Give any two valid reasons in support of your answer.
“Recently, the Government of India launched Jan-Dhan Yojana.”
In the light of the given statement, discuss briefly the objectives of this scheme.
\[ \begin{array}{|c|l|} \hline \textbf{Column I} & \textbf{Column II} \\ \hline \text{1. Cement shop owner} & \text{(iii) Self-employed} \\ \hline \text{2. Construction worker} & \text{(ii) Casual wage workers} \\ \hline \text{3. Civil engineer} & \text{(i) Regular salaried} \\ \hline \end{array} \]

Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below: 
Assertion (A): In the recent past, Indian economy has been facing the problem of jobless growth. 
Reason (R): Jobless growth refers to a situation where an economy is able to produce more goods and services without generating additional employment.

Read the following statements carefully: Statement 1: India, Pakistan and China have similar physical endowments, but totally different political systems.
Statement 2: Both India and Pakistan laid great emphasis on creating a large private sector.