INSIGHT UPSC QUIZ

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?

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.

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?

Which of the following is generally the largest source for financing the ‘fiscal deficit’ of the Union government? 

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:

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)’?

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?

In context of the difference between ‘devaluation and depreciation’, consider the following statements:

1. Devaluation is the deliberate downward adjustment of a country's currency value, whereas depreciation is a fall in the value of a currency.

2. Devaluation is more relevant in a fixed or semi-fixed exchange rate, whereas depreciation is more relevant in a floating exchange rate.

3. Devaluation makes imports more expensive, and exports more competitive, whereas depreciation makes imports cheaper, and exports less competitive.

Which of the statements given above are correct?

Consider the following statements: 

1. Gross Domestic Product (GDP) at factor cost is gross domestic product at market prices, less net product taxes.

2. Gross Domestic Product (GDP) at factor cost measures final value of output produced by the firms within the domestic boundaries of a country in a year.

Which of the statements given above is/are correct?

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: