Prelims MCQs Quiz 38 : Economy


1. The term ‘micro-finance’ frequently appears in newspapers. Micro-finance includes

1. small loans
2. small deposits
3. money transfer
4. payment services
Select the correct answer using the codes given below.
a) 1, 2 and 3 only
b) 1 ,3 and 4 only
c) 2 ,3 and 4 only
d) 1 ,2, 3 and 4 

Answer & Explanation

2. Consider the following statements about International Finance Corporation:
1. It is known as the private arm of the world bank.
2. It lends money to private sector companies of all countries.
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

3. Inclusive growth is an important objective of the development process. In this context, which of the following would amount to inclusive growth?
1. poverty reduction.
2. disinvestment.
3. good governance.
4. skill building.
Select the correct answer using the codes given below.
a) 1, 2 and 3 only
b) 1 ,3 and 4 only
c) 2 ,3 and 4 only
d) 1 ,2, and 4 only

Answer & Explanation

4. National treatment (NT) is an important policy of WTO. NT means
a) All countries must not discriminate between imported and domestic product
b) WTO members must not discriminate between imported and domestic product
c) Exported products of a WTO member state must not be discriminate by other members via-a-vis domestic products
d) Both (b) & (c) 

Answer & Explanation

5. Which of the following is/are a part of the participatory development process?

1. State
2. NGOs
3. Pressure groups
4. Cooperatives
Select the correct answer using the codes given below.
a) 1, 2 and 3 only
b) 1 ,3 and 4 only
c) 2 ,3 and 4 only
d) 1 ,2, 3 and 4 

Answer & Explanation

6. The Trade facilitation agreement (TFA) of the WTO says that farm subsidies cannot be more than 10 percent of the

a) Gross Domestic Product of a country.
b) Value of agricultural production.
c) National income of a country.
d) Value of agricultural exports.

Answer & Explanation

7. The mandate of the 14th finance Commission includes suggesting
1. mechanism for pricing of public utilities.
2. the implementation process for GST.
3. fiscal consolidation measures.
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. Which of the following is/are used as an indicator in calculating Multidimensional Poverty Index (MPI)?
1. maternal mortality
2. nutrition
3. access to electricity
4. access to telephone
Select the correct answer using the codes given below.
a) 1, 2 and 3 only
b) 1, 3 and 4 only
c) 2 and 3 only
d) 1, 2, and 4 only

Answer & Explanation

9. India maintains buffer stocks of food grains. The buffer stocks helps in

1. providing food security
2. incentivizing farmers
3. stabilizing prices
4. running PDS
Select the correct answer using the codes given below.
a) 1, 2 and 3 only
b) 1 ,3 and 4 only
c) 2 ,3 and 4 only
d) 1 ,2, and 4 only

Answer & Explanation

10. Consider the following economy traits
1) Prolonged increase in demand
2) Heating up of economy
3) Demand-supply lag
They are the characteristic feature of which phase of business/economy cycle?
a) Recession
b) Depression
c) Recovery
d) Boom

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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