Economics Topics
Undergraduate level — Economics
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Microeconomics
Macroeconomics
Indian Economy
Bihar Economy
Budget & Fiscal Policy
quiz Questions
Q101
Which regulatory framework replaced the Monopolies and Restrictive Trade Practices (MRTP) Act, 1969, to foster open market competition in the Indian economic landscape?
FEMA, 1999
Competition Act, 2002
SEBI Act, 1992
Companies Act, 2013
Explanation
The Competition Act, 2002 was passed following the Raghavan Committee report, shifting focus from curbing monopolies to actively regulating anti-competitive practices.
Q102
What dynamic parameter tracks the absolute volume of money that a commercial bank must hold in the form of liquid cash assets within its own vaults relative to its net demand and time liabilities (NDTL), separate from central bank reserves?
Cash Reserve Ratio (CRR)
Statutory Liquidity Ratio (SLR)
Repo Rate
Marginal Standing Facility
Explanation
The Statutory Liquidity Ratio (SLR) mandates that banks maintain a specific percentage of their NDTL in liquid gold, cash, or approved government securities within their own custody, distinct from the CRR.
Q103
Which type of unemployment profile represents workers who appear engaged in a productive task, but their marginal productivity is mathematically zero, common in Indian agriculture?
Structural unemployment
Disguised unemployment
Voluntary frictional drag
Open cyclical gap
Explanation
Disguised unemployment occurs when more labor is deployed than structurally required. Withdrawing surplus workers leaves total physical output unchanged.
Q104
The current standard concept of 'Core Inflation' differs from 'Headline Inflation' because it excludes which specific commodity groups from its pricing adjustments?
Manufactured industrial products
Food and Fuel items
Service sector charges
Electronic goods and luxury items
Explanation
Core inflation isolates underlying price trends by removing volatile components—specifically food and fuel items—from the broader headline inflation matrix.
Q105
What macro-analytical model utilizes structural capital parameters ($ICOR$) to argue that an economy's output growth rate is directly proportional to its savings rate?
Solow-Swan neoclassical model
Harrod-Domar growth model
Endogenous growth theory
Kaldor distribution model
Explanation
The Harrod-Domar growth model states that growth is driven by the savings rate ($s$) divided by the Incremental Capital-Output Ratio ($g = s / c$). This model was highly influential in India's First Five-Year Plan.
Q106
Which regulatory entity manages the corporate governance norms and structural safety lines of secondary stock exchange platforms in India?
Reserve Bank of India
Securities and Exchange Board of India (SEBI)
IRDAI
PFRDA
Explanation
The Securities and Exchange Board of India (SEBI), established statutory powers in 1992, regulates financial market platforms and capital market rules.
Q107
Under the current priority sector lending (PSL) rules issued by the RBI, what percentage of net bank credit must domestic commercial banks allocate to designated priority fields?
20%
40%
50%
60%
Explanation
RBI rules mandate that domestic commercial banks route a minimum of 40% of their Adjusted Net Bank Credit (ANBC) into target priority sectors like agriculture and MSMEs.
Q108
Which fiscal concept measures the total borrowing requirements of the government, including interest liabilities, calculated as the excess of total expenditure over total non-debt receipts?
Revenue Deficit
Fiscal Deficit
Primary Deficit
Budgetary Surplus
Explanation
Fiscal Deficit tracks the structural resource gap of the state budget, revealing the total credit or market borrowing reliance of the government over a fiscal year.
Q109
What algebraic step separates Primary Deficit from Fiscal Deficit in state accounting budgets?
Adding capital receipts to revenue expenditures
Subtracting interest payments from the fiscal deficit
Deducting state tax grants from central collections
Multiplying the revenue deficit by depreciation multipliers
Explanation
Primary Deficit isolates the government's current net borrowing needs by subtracting past interest payment liabilities from the total fiscal deficit: $ ext{Primary Deficit} = ext{Fiscal Deficit} - ext{Interest Payments}$.
Q110
Which article of the Constitution of India mandates the tabling of the 'Annual Financial Statement' before Parliament every fiscal year?
Article 110
Article 112
Article 280
Article 265
Explanation
Article 112 directs the President of India to cause to be laid before both Houses of Parliament an annual financial statement detailing estimated receipts and expenditures.