PET Practice Set 10

Primary deficit is calculated as:

1. A.Fiscal deficit plus interest payments
2. B.Fiscal deficit minus interest payments✓
3. C.Revenue deficit minus capital expenditure
4. D.Total receipts minus total expenditure

Correct answer: B

FDI stands for:

1. A.Foreign Direct Investment✓
2. B.Foreign Domestic Investment
3. C.Federal Direct Investment
4. D.Financial Direct Investment

Correct answer: A

FII stands for:

1. A.Foreign Institutional Investors✓
2. B.First Institutional Investors
3. C.Foreign Insurance Investors
4. D.Federal Institutional Investment

Correct answer: A

A key difference between FDI and FII is that FDI typically involves:

1. A.Short-term investment in the stock market only
2. B.Long-term investment with management control in a business✓
3. C.No transfer of funds
4. D.Investment only in government bonds

Correct answer: B

Which of the following would be classified as FDI?

1. A.A foreign investor buying shares on the stock exchange
2. B.A foreign pension fund investing in government bonds
3. C.A foreign company setting up a manufacturing plant in India✓
4. D.A foreign fund buying mutual fund units in India

Correct answer: C

Inflation caused by an increase in the cost of production is known as:

1. A.Demand-pull inflation
2. B.Cost-push inflation✓
3. C.Structural inflation
4. D.Creeping inflation

Correct answer: B

Stagflation refers to:

1. A.High growth with low inflation
2. B.High inflation combined with stagnant growth and high unemployment✓
3. C.Falling prices with high growth
4. D.Zero inflation

Correct answer: B

A key difference between WPI and CPI in India is that:

1. A.WPI includes services while CPI does not
2. B.CPI includes services while WPI does not✓
3. C.Both include only agricultural goods
4. D.WPI is released quarterly while CPI is annual

Correct answer: B

India's 1991 economic reforms were introduced under PM:

1. A.Rajiv Gandhi
2. B.P.V. Narasimha Rao✓
3. C.Atal Bihari Vajpayee
4. D.V.P. Singh

Correct answer: B

Who was the Finance Minister when the 1991 reforms were introduced?

1. A.Manmohan Singh✓
2. B.Yashwant Sinha
3. C.P. Chidambaram
4. D.R. Venkataraman

Correct answer: A

The immediate trigger for India's 1991 economic reforms was:

1. A.High literacy rate
2. B.A severe Balance of Payments crisis✓
3. C.A bumper agricultural harvest
4. D.Excess foreign exchange reserves

Correct answer: B

The 'Make in India' initiative was launched in:

1. A.2012
2. B.2014✓
3. C.2016
4. D.2019

Correct answer: B

The 'Digital India' programme was launched in:

1. A.2014
2. B.2015✓
3. C.2017
4. D.2019

Correct answer: B

Which body determines the poverty line in India?

1. A.RBI
2. B.NITI Aayog
3. C.Planning Commission (now NITI Aayog)✓
4. D.Ministry of Finance

Correct answer: C

The Mudra Yojana provides loans to:

1. A.Large industries
2. B.Micro and small enterprises✓
3. C.State governments
4. D.Foreign companies

Correct answer: B

BPL stands for:

1. A.Basic Poverty Line
2. B.Below Poverty Line✓
3. C.Backward Population List
4. D.Basic Population Level

Correct answer: B

The Tendulkar Committee (2009) is associated with:

1. A.Banking reforms
2. B.Revising the methodology for estimating the poverty line✓
3. C.Tax reforms
4. D.Industrial licensing

Correct answer: B

The type of unemployment most common in Indian agriculture, where more people are engaged than needed, is called:

1. A.Frictional unemployment
2. B.Disguised unemployment✓
3. C.Structural unemployment
4. D.Cyclical unemployment

Correct answer: B

Seasonal unemployment refers to:

1. A.Unemployment due to lack of skills
2. B.Unemployment due to the seasonal nature of work✓
3. C.Unemployment due to economic recession
4. D.Unemployment due to technological change

Correct answer: B

Income tax is an example of:

1. A.Indirect tax
2. B.Direct tax✓
3. C.Value Added Tax
4. D.Excise duty

Correct answer: B

The GST Council is established under which Article of the Constitution?

1. A.Article 246A
2. B.Article 279A✓
3. C.Article 280
4. D.Article 324

Correct answer: B

Which of the following taxes was subsumed (replaced) by GST?

1. A.Income Tax
2. B.Service Tax✓
3. C.Corporation Tax
4. D.Wealth Tax

Correct answer: B

Which state was the first to pass the GST bill in its state assembly?

1. A.Gujarat
2. B.Tamil Nadu
3. C.Assam✓
4. D.Madhya Pradesh

Correct answer: C

National Income is best represented by:

1. A.Gross Domestic Product at market price
2. B.Net National Product at factor cost✓
3. C.Gross National Product at market price
4. D.Net Domestic Product at market price

Correct answer: B

Steel plants at Bhilai, Durgapur, and Rourkela were set up during which Five-Year Plan?

1. A.First
2. B.Second✓
3. C.Third
4. D.Fourth

Correct answer: B

In which year was India's Planning Commission established?

1. A.1947
2. B.1950✓
3. C.1951
4. D.1961

Correct answer: B

Data for estimating poverty in India is primarily drawn from surveys conducted by:

1. A.Reserve Bank of India
2. B.National Sample Survey Office (NSSO)✓
3. C.NITI Aayog
4. D.Ministry of Finance

Correct answer: B

The Preamble of the Indian Constitution begins with:

1. A."In the name of God"
2. B."We, the People of India"✓
3. C."The Parliament of India"
4. D."The President of India"

Correct answer: B

The words "Socialist" and "Secular" were added to the Preamble by which amendment?

1. A.41st Amendment
2. B.42nd Amendment✓
3. C.44th Amendment
4. D.46th Amendment

Correct answer: B

Constitution Day of India is celebrated on:

1. A.26 January
2. B.15 August
3. C.26 November✓
4. D.2 October

Correct answer: C