Directions: In the questions given below, four options have been given. Click on the option which you think is the RIGHT ANSWER to the question.

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1. When the productive capacity of the economic system of a State is inadequate to create sufficient number of jobs, it is called

2. Fiscal policy in India is formulated by

3. In Economics the terms ‘Utility’ and ‘Usefulness’ have

4. Special Drawings Rights (SDRs) relate to

5. Which of the following measures should be taken when an economy is going through inflationary pressures?

  1. The direct taxes should increased.
  2. The interest rate should be reduced.
  3. The public spending should be increased.

Select the correct answer using the code given below:


6. National income ignores

7. Who said ‘Supply creates its own demand’?

8. Liquidity Preference Theory of Interest was propounded by

9. Who coined the term "Hindu rate of growth for Indian economy"?

10. Who estimated the National Income for the first time in India?

11. Economic development depends on

12. National income is generated from


13. Money supply is governed by the

14. The present Indian monetary system is based on

15. A situation where we have people whose level of income is not sufficient to meet the minimum consumption expenditure is considered as

16. Full convertibility of a rupee means

17. India is called a mixed economy because of the existence of

  1. Public Sector
  2. Private Sector
  3. Joint Sector
  4. Cooperative Sector

18. The term stagflation refers to a situation where

19. Revealed Preference Theory was propounded by

20. Gross Domestic Product is defined as the value of all

21. An exceptional demand curve is one that moves

22. Production function explains the relationship between

23. Nature of unemployment in agriculture in India is