INSIGHT UPSC QUIZ

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:

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?

With reference to a normal Union Budget, consider the following types of deficits:

1. Fiscal Deficit.

2. Revenue Deficit.

3. Effective Revenue Deficit.

4. Primary Deficit.

Arrange the types of deficits mentioned above in decreasing order and select the correct answer using codes given below:

Which among the following are the effects of Globalisation?

1. Increase in employment opportunities.

2. Upliftment of standards of living. 

3. Reduction in economic disparities.

4. Rising income of the masses.

Select the correct answer using the code given below:

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?

Read the following statements carefully in the context of ‘Gross Domestic Product at Market Prices’:

1. It is the market value of all final goods and services produced within a domestic territory of a country measured in a year.

2. It includes all production done by national residents or the non-residents in a country.

3. It excludes all production done by residents in a country if the production is owned by a foreign company.

Which of the statements given above is/are correct?

Which among the following are the merits of ‘flexible exchange rate system’ over ‘fixed exchange rate system’?

1. The government does not need to maintain large stock of foreign exchange reserves.

2. Movements in the exchange rate are managed by the central banks by buying and selling foreign currencies.

3. The countries gain autonomy in conducting their monetary policies.

Select the correct answer using the code given below.

Which of the following economic terms reflects the total borrowing requirement of the Government?  

1. Fiscal Deficit

2. Revenue Deficit 

3. Effective Revenue Deficit 

4. Primary Deficit  

Select the correct answer using the code given below:

Which of the following statements regarding the differences between Consumer Price Index (CPI) and GDP Deflator are correct?

1. While CPI does not represent all the goods which are produced in a country, GDP deflator takes into account all such goods and services.

2. While CPI does not include prices of imported goods, GDP deflator includes prices of imported goods.

3. While the weights are constant in CPI, they differ according to production level of each good in GDP deflator.

Select the correct answer using the code given below.