Worked out from the 140 one-mark questions of the 2020–2026 public exams. The table shows how many board questions came from each chapter; below it are the questions the board asked more than once, with the answer.
Who is regarded as the 'Father of Modern Macro Economics'?
- A. Ragnar Frisch
- B. Adam Smith
- C. Karl Marx
- D. J.M. KeynesCorrect
Explanation. J.M. Keynes, through his General Theory (1936), laid the foundation of modern macroeconomics, so he is called its father.
The RBI Headquarters is located at __________.
- A. MumbaiCorrect
- B. Delhi
- C. Bengaluru
- D. Chennai
Explanation. The Reserve Bank of India has its central office in Mumbai (moved from Calcutta in 1937).
In which sector Foreign Direct Investments is not permitted in India?
- A. Pharmaceutical
- B. Banking
- C. Insurance
- D. Atomic EnergyCorrect
Explanation. FDI is allowed (with limits) in pharmaceuticals, banking and insurance, but atomic energy is a prohibited sector for FDI in India.
Expansion of NITI Aayog :
- A. National Institution to Transform India
- B. National Institute of Transport India
- C. National Institution for Transforming IndiaCorrect
- D. National Institute for Trade in India
Explanation. NITI Aayog, which replaced the Planning Commission in 2015, stands for National Institution for Transforming India.
NABARD was started in __________.
- A. July 1982Correct
- B. July 1992
- C. July 1962
- D. July 1972
Explanation. NABARD was established on 12 July 1982 on the recommendation of the CRAFICARD (B. Sivaraman) Committee.
Planning Commission was set up in the year __________.
- A. 1947
- B. 1950Correct
- C. 1948
- D. 1951
Explanation. The Planning Commission of India was set up in March 1950; the First Five Year Plan began in 1951.
The sum of MPC and MPS is __________.
- A. 0.1
- B. 1Correct
- C. 1.1
- D. 2
Explanation. Any addition to income is either consumed or saved, so ΔC/ΔY + ΔS/ΔY = 1, i.e. MPC + MPS = 1.
Irving Fisher's Quantity Theory of Money was popularized in __________.
- A. 1911Correct
- B. 1908
- C. 1914
- D. 1910
Explanation. Irving Fisher presented the transactions version of the quantity theory (MV = PT) in his book 'The Purchasing Power of Money' in 1911.
Central Bank is __________ authority of any country.
- A. Wage
- B. MonetaryCorrect
- C. National income
- D. Fiscal
Explanation. The central bank controls money supply and credit, so it is the monetary authority; fiscal policy is handled by the government.
The other name for Special Drawing Rights is __________.
- A. Quotas
- B. Voluntary Export Restrictions
- C. Paper goldCorrect
- D. None of the above
Explanation. SDRs, created by the IMF in 1969 as an international reserve asset, are popularly called paper gold.
GST is equivalence of __________.
- A. Income tax
- B. Sales taxCorrect
- C. Local tax
- D. Corporate tax
Explanation. GST is an indirect tax on the supply of goods and services, so it is the equivalent of (and replaced) sales tax.
Acid rain is one of the consequences of __________.
- A. Land Pollution
- B. Air PollutionCorrect
- C. Noise Pollution
- D. Water Pollution
Explanation. Sulphur dioxide and nitrogen oxides released into the air combine with water vapour to form acid rain, so it results from air pollution.
Sustainable Development Goals and targets are to be achieved by __________.
- A. 2040
- B. 2030Correct
- C. 2050
- D. 2035
Explanation. The 17 Sustainable Development Goals adopted by the UN in 2015 are to be achieved by 2030 (Agenda 2030).
Which of the following country adopt Indicative Planning?
- A. Italy
- B. FranceCorrect
- C. Russia
- D. Germany
Explanation. France is the classic example of indicative planning, where the plan guides the private sector without compulsion; Russia followed imperative planning.
The Chairperson of NITI Aayog is __________.
- A. Vice-President
- B. Prime MinisterCorrect
- C. Finance Minister
- D. President
Explanation. The Prime Minister of India is the ex-officio Chairperson of NITI Aayog.
The data collected by questionnaires are __________.
- A. Published data
- B. Primary dataCorrect
- C. Grouped data
- D. Secondary data
Explanation. Data collected first-hand by the investigator through questionnaires are primary data.
Indicate the contribution of J.M. Keynes to Economics :
- A. Capital
- B. Wealth of Nations
- C. Public Finance
- D. General TheoryCorrect
Explanation. Keynes wrote "The General Theory of Employment, Interest and Money" (1936); Capital is by Karl Marx and Wealth of Nations by Adam Smith.
Which of the following plan has focused on the agriculture and rural economy ?
- A. Gandhian planCorrect
- B. People's plan
- C. Vishveshwarayya plan
- D. Bombay plan
Explanation. The Gandhian Plan (1944, S.N. Agarwal) stressed agriculture, cottage industries and a decentralised rural economy.
2016 Demonetization of currency includes denominations of :
- A. ₹ 500 and ₹ 1000Correct
- B. ₹ 200 and ₹ 500
- C. ₹ 1000 and ₹ 2000
- D. Both (a) and (b)
Explanation. On 8 November 2016 the old ₹ 500 and ₹ 1000 notes were demonetised; ₹ 200 and ₹ 2000 notes were introduced afterwards.
The core of the classical theory of employment is __________.
- A. Law of Diminishing Returns
- B. Law of MarketsCorrect
- C. Law of Demand
- D. Law of Consumption
Explanation. The classical theory of employment rests on Say's Law of Markets: supply creates its own demand.
International Monetary Fund was an outcome of __________.
- A. Bretton Woods ConferenceCorrect
- B. Bandung Conference
- C. Singapore Conference
- D. Doha Conference
Explanation. The IMF and the World Bank were created at the Bretton Woods Conference held in 1944.
Primary sector is __________.
- A. Construction
- B. Trade
- C. Industry
- D. AgricultureCorrect
Explanation. The primary sector uses natural resources directly: agriculture, forestry, fishing and mining. Construction and industry are secondary; trade is tertiary.
Inflation means :
- A. Value of money is increasing
- B. Prices are risingCorrect
- C. Prices are remaining the same
- D. Prices are falling
Explanation. Inflation is a persistent rise in the general price level, which reduces the value of money; falling prices is deflation.
The average propensity to consume is measured by :
- A. Y/C
- B. C/YCorrect
- C. C+Y
- D. CY
Explanation. APC is the ratio of total consumption to total income: APC = C/Y.
Exchange rates are determined in :
- A. Stock market
- B. Money market
- C. Capital market
- D. Foreign Exchange marketCorrect
Explanation. The exchange rate is the price of one currency in terms of another, determined by demand and supply in the foreign exchange market.
Econometrics is the word coined by :
- A. Karl Pearson
- B. Francis Galton
- C. Spearman
- D. Ragnar FrischCorrect
Explanation. The term "econometrics" was coined by Ragnar Frisch in 1926.
Short-term plan is also known as __________.
- A. Rolling plansCorrect
- B. Controlling plans
- C. De-rolling plans
- D. De-controlling plans
Explanation. Short-term (annual) plans are revised every year as part of a rolling plan, so they are known as rolling plans.
The country following Capitalism is ________.
- A. India
- B. Russia
- C. China
- D. AmericaCorrect
Explanation. The USA (America) is the classic example of a capitalist economy; India is a mixed economy, while Russia and China are associated with socialism.
The Multiplier is calculated as ________.
- A. 1/(1 − MPC)
- B. 1/MPS
- C. 1/MPC
- D. (a) and (b)Correct
Explanation. k = 1/(1 − MPC). Since MPC + MPS = 1, 1 − MPC = MPS, so k = 1/MPS as well; both (a) and (b) are correct.
MV stands for :
- A. Supply of Bank money
- B. Demand for money
- C. Total Supply of money
- D. Supply of Legal Tender moneyCorrect
Explanation. In Fisher's equation PT = MV + M'V', MV is the supply of legal tender (currency) money and M'V' is the supply of bank (credit) money.
J.B. Say is a ________.
- A. Modern Economist
- B. Neo Classical Economist
- C. New Economist
- D. Classical EconomistCorrect
Explanation. J.B. Say, the French economist who gave Say's law of markets, belongs to the classical school.
The term MEC was introduced by :
- A. Ricardo
- B. Adam Smith
- C. Malthus
- D. J.M. KeynesCorrect
Explanation. Keynes introduced the Marginal Efficiency of Capital (MEC) in his General Theory as a determinant of investment.
Per capita Income is obtained by dividing the National Income by :
- A. Expenditure
- B. Production
- C. GNP
- D. Population of a countryCorrect
Explanation. Per capita income = National income ÷ Population of the country.
Trade between two countries is known as ________.
- A. Internal trade
- B. Home trade
- C. External tradeCorrect
- D. None of the above
Explanation. Trade across national borders, between two or more countries, is external (international) trade.
Who will act as the banker to the Government of India ?
- A. ICICI
- B. SBI
- C. RBICorrect
- D. NABARD
Explanation. As the central bank, the Reserve Bank of India acts as banker, agent and adviser to the Government.
The Modern State is :
- A. Welfare stateCorrect
- B. Laissez-faire state
- C. Police state
- D. Aristocratic state
Explanation. Modern states have moved from the laissez-faire/police state role to that of a welfare state that promotes the well-being of citizens.
