Mock Test

Exam: AFCAT Subject: General Awareness Topic: Economics

Total Questions: 20

Q1. Which market structure has the highest barriers to entry?

Monopoly Oligopoly Monopolistic Competition Perfect Competition
Q2. What is the significance of budgeting in public finance?

To control inflation To allocate resources efficiently To promote excessive government spending To encourage private investments
Q3. What is the purpose of a bank guarantee?

To secure a loan To transfer money To issue credit cards To provide insurance
Q4. Which sector requires infrastructure for efficient operations?

Agriculture Media Entertainment Manufacturing
Q5. Which market structure has the highest level of market power?

Perfect competition Monopoly Oligopoly Monopolistic competition
Q6. What is the term used to describe the total value of goods and services produced within a country in a specific period?

A. Gross National Product B. Net Domestic Product C. Gross Domestic Product D. National Income
Q7. What is the purpose of a budget surplus?

A. To increase debt B. To save or invest C. To overspend D. None of the above
Q8. Which game theory concept involves players making decisions in a specific order?

Sequential games Simultaneous games Cooperative games Perfect information games
Q9. Which type of infrastructure is crucial for communication?

Hospitals Airports Telecommunication Power plants
Q10. What is the purpose of using selective credit controls in monetary policy?

To regulate interest rates To control money supply to specific sectors To stabilize exchange rates To reduce government debt
Q11. Which of the following is not a key principle of classical economics?

Division of labor Free trade Centralized planning Specialization
Q12. Which of the following is a component of national income?

Imports Exports Investment Government spending
Q13. What is the relationship between poverty and health outcomes?

Higher poverty leads to better health Lower poverty leads to poor health No correlation between poverty and health Poverty has no impact on health
Q14. What is the role of a depository in the stock market?

Facilitating trading of securities Holding securities in physical form Approving IPOs Regulating stock exchanges
Q15. What is the role of subsidies in promoting inclusive growth in an economy?

To widen income inequality To restrict access to resources To support marginalized sections To favor only the wealthy
Q16. What is the primary goal of Keynesian economics during times of high unemployment?

Reduce government intervention Increase taxes Achieve full employment Promote deflation
Q17. What is the purpose of public finance in education funding?

To limit access to education To promote illiteracy To fund educational institutions To discourage skill development
Q18. Which of the following is not a stock exchange in India?

BSE NSE NSE NYSE
Q19. Which of the following is a consequence of income inequality?

Improved social cohesion Reduced economic disparities Increased poverty rates Equal distribution of resources
Q20. Which of the following is not a factor that affects exchange rates?

Supply and demand Government policies Weather conditions Market sentiment

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