Free Test Basic concepts of Econ... – Civil S...

Q1: Which of the following best defines GDP?

A. Total income of the population B. Total value of goods and services produced in a country in a year C. Total exports of a country D. Total national debt

Q2: What does inflation refer to?

A. Rise in employment B. Rise in the general price level of goods and services C. Fall in GDP D. Increase in exports

Q3: Which of the following is NOT included in GDP calculation?

A. Consumer spending B. Government spending C. Intermediate goods D. Investment

Q4: Which index is commonly used to measure inflation in India?

A. WPI B. CPI C. GDP Deflator D. All of the above

Q5: What is "real GDP"?

A. GDP without adjusting inflation B. GDP adjusted for inflation C. Nominal GDP D. GDP per capita

Q6: Which sector contributes the most to India’s GDP?

A. Agriculture B. Industry C. Services D. Mining

Q7: What does "deflation" mean?

A. Increase in prices B. Decrease in general price level C. Increase in GDP D. Decrease in interest rates

Q8: What does "monetary policy" control?

A. Taxes B. Imports C. Interest rates and money supply D. Government spending

Q9: Which of the following is NOT a tool of monetary policy?

A. Repo rate B. CRR C. SLR D. GST

Q10: Which organisation publishes GDP data in India?

A. RBI B. SEBI C. CSO D. NABARD

Q11: GDP per capita is calculated as:

A. GDP × population B. GDP ÷ total exports C. GDP ÷ population D. GDP ÷ number of states

Q12: Nominal GDP is measured at:

A. Base year prices B. Current market prices C. Discounted prices D. Wholesale prices

Q13: Stagflation is a situation where:

A. Inflation and unemployment are both high B. Only inflation is high C. Only unemployment is high D. GDP is rising fast

Q14: The base year for India’s GDP calculation (as of 2024) is:

A. 2004-05 B. 2011-12 C. 2016-17 D. 2020-21

Q15: Which is a component of Aggregate Demand?

A. Consumption B. Investment C. Government Spending D. All of the above

Q16: Fiscal deficit is calculated as:

A. Total income – total spending B. Total spending – total income C. Export – Import D. Current account – capital account

Q17: The term "headline inflation" refers to:

A. Core inflation only B. Inflation including food and fuel prices C. Wage inflation D. Inflation adjusted for GDP

Q18: Which of the following is an example of direct tax?

A. GST B. Income Tax C. Customs Duty D. Excise Duty

Q19: Which of the following can reduce inflation?

A. Decreasing interest rates B. Increasing money supply C. Increasing interest rates D. Decreasing taxes

Q20: Balance of payments includes:

A. Only exports B. Only imports C. All economic transactions with rest of the world D. Only foreign investments

Quiz for Basic concepts of Economy (GDP, Inflation, etc.)