Prelims MCQs Quiz 21 : Economy


1. Receipts in budget can be capital or revenue. Which of these is/are capital receipts?
1. Loan recoveries
2. Provident funds deposits
3. Grants
Select the correct answer using the codes given below.
a) 1 and 2 only
b) 1 and 3 only
c) 2 and 3 only
d) 1, 2 and 3

Answer & Explanation

2. If a government is unable to pass the budget in Lok Sabha, then:
a) a totally new budget is presented.
b) the budget is revised and presented again.
c) the government has to resign.
d) none of the above

Answer & Explanation

3. With reference to contribution from taxes, consider the following statements:
1. Contribution from direct taxes is more than that from indirect taxes.
2. Corporation tax is the largest contributor.
Which of the statements given above is/are correct ?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Answer & Explanation

4. The Economic Survey is complied by:
a) Office of economic advisor.
b) Central Statistical office ( CSO )
c) National Sample Survey Organization (NSSO)
d) Department of economic affairs.

Answer & Explanation

5. Gross capital formation will increase if:
1. gross domestic savings increases
2. gross domestic consumption increases
3. GDP increases
Select the correct answer using the codes given below.
a) 1 only
b) 1 and 2 only
c) 1 and 3 only
d) None

Answer & Explanation

6. Consider the following statements:
1. India’s GDP is more than its GNP.
2. Net Factor Income from Abroad (NFIA) is positive for India.
Which of the statements given above is/are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Answer & Explanation

7. Integrated Child Development Services (ICDS) Scheme aims to provide many services to children that includes:
1. school education
2. Nutrition support
3. Immunization
Select the correct answer using the codes given below.
a) 1 and 2 only
b) 1 and 3 only
c) 2 and 3 only
d) 1, 2 and 3

Answer & Explanation

8. Gross budgetary support means:
a) centre’s contribution to budget
b) expenditure in budget on social schemes
c) assistance provided by the Centre to five year plan.
d) none of the above

Answer & Explanation

9. Consider the following data:
1. Revenue deficit (RD) = 3% of GDP |
2. Grants for capital formation = 1.8% of GDP
3. Primary deficit (PD) = 1.2%
4. Non-plan expenditure = 1.5%
In the above scenario, effective revenue deficit (ERD) will be:
a) 1.2%
b) 1.5%
c) 1.8%
d) cannot be calculated

Answer & Explanation

10. Which of the following interest rates is still regulated?
1. Savings account interest rate
2. Fixed deposit interest rate
3. Current account interest rate
Select the correct answer using the codes given below.
a) 1 only
b) 1 and 2 only
c) 3 only
d) None

Answer & Explanation

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Please read these important articles about prelims preparation

1. How UPSC asks current affairs in GS Prelims

2. How to practice prelims MCQs for UPSC

3. Applying logic in UPSC General Studies Prelims

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