INSIGHT UPSC QUIZ

In context of a centrally planned economy, consider the following statements: 

1. The government always intervenes to achieve an equitable distribution of the final mix of goods and services amongst the population.

2. All important decisions regarding production, exchange and consumption of goods and services are made by the government. 

Which of the statement(s) given above is/are correct?

Consider the following statements:

1. RBI carries out the Open Market Operations (OMOs) through commercial banks and also directly with the public. 

2. If central bank signals that it will move to a ‘neutral’ liquidity stance from a ‘deficit’ stance, it means more liquidity is likely develop in the system in future. 

Which of the statements given above is/are correct?

In context of economic theory, a perfectly competitive market will have which of the following defining features?

 1. The market consists of a large number of buyers and sellers. 

 2. Each firm can produce and sell all types of products. 

 3. Entry into the market as well as exit from the market are free for firms.

Select the correct answer using the code given below:

With reference to market economy, consider the following statements:

1. All economic activities are organised through the market.

2. In a market system, all goods or services come with a price.

3. Information about how much and what to produce is provided by the government.

Select the correct answer using the code given below:

Consider the following statements:

1. A surplus current account means that the nation is a lender to other countries and a deficit current account means that the nation is a borrower from other countries. 

2. The capital account deals with the change in ownership of a country’s assets, and the current account reflects the change in a country’s net income.

3. Developing nations typically run very large capital account deficits in proportion to their GDP, which are financed by loans and grants on the current account.

Which of the statements given above is/are correct?

Consider the following statements with reference to ‘Balance of Trade (BOT)’: 

1. Difference between value of exports and value of imports of goods of a country in a given period of time.

2. Difference between the value of exports and value of imports of services of a country in a given period of time.

3. Difference between the value of exports and value of imports of services and assets of a country in a given period of time.

4. Difference between the value of capital account and the value of current account of a country in a given period of time.

Which of the statements given above correctly defines the term ‘Balance of Trade (BOT)’?

Consider the following statements:

1. The demand for every good in the market has a direct relationship with increase or decrease in its price.

2. Price elasticity is a measure of the change in demand of product/service in response to changes in income of consumers.

Which of the statement(s) given above is/are correct?

To meet the requirements of the fiscal deficit, the Union government not only borrows directly from the public through debt instruments but also indirectly from commercial banks through:

 Consider the following statements:

1. Profit is the difference between total revenue and total cost.

2. With the increase in output the total profit of the company always increases.

Which of the statement(s) given above is/are correct?

Which among the following are the effects of Globalisation?