Mock Test

Exam: BPSC Subject: General Studies Topic: Economics

Total Questions: 20

Q1. Globalization can contribute to structural unemployment in a country by:

Increasing demand for domestic goods. Encouraging businesses to relocate to countries with lower labor costs. Boosting overall economic growth. Creating new job opportunities in export sectors.
Q2. The 'Industry 4.0' concept, involving automation and data exchange in manufacturing technologies, is gaining traction in India primarily in which sectors?

Traditional handicraft sectors Labor-intensive sectors like textiles and garments Advanced manufacturing and automotive sectors Agriculture and food processing
Q3. The Economic Survey of India reflects the government's assessment of the economy.

Only past performance Future projections Past performance and future projections International economic trends only
Q4. In a command economy, economic decisions are primarily made by:

Individual consumers and producers through market forces The government or a central authority A decentralized network of individuals Custom and tradition
Q5. The 'Garibi Hatao' slogan, popularized by Indira Gandhi, aimed to address the issue of:

Industrial unemployment Rural poverty and inequality Urban slums Inflationary pressures
Q6. The HDI is a composite index, meaning it combines multiple indicators. What is the primary benefit of using a composite index?

It provides a single, easily understandable measure of development It eliminates the need for disaggregated data It allows for a more nuanced understanding of development than single indicators It is less prone to data errors
Q7. The concept of 'urban resilience' refers to a city's ability to:

Attract the maximum number of tourists and international investment. Withstand, adapt to, and recover from shocks and stresses, such as natural disasters, economic downturns, or social unrest. Maintain its historical urban fabric and resist any form of modernization or change. Achieve the highest possible GDP growth rate through intensive industrialization.
Q8. Which sector is crucial for inclusive growth in a country like India?

Manufacturing only Services only Agriculture and rural development Information Technology only
Q9. If the income elasticity of demand for a good is 1.5, it means that as income rises by 1%, the quantity demanded of the good rises by:

0.67% 1% 1.5% 50%
Q10. The expansion of India's railway network is crucial for economic growth. Which of the following is a significant challenge faced by Indian Railways in improving its infrastructure and operational efficiency?

Underutilization of existing track capacity Excessive competition from road transport High capital expenditure required for modernization and expansion Low cost of land acquisition for new lines
Q11. The 'Ricardian Equivalence' proposition suggests that:

Government spending financed by taxes is equivalent in its economic effects to government spending financed by debt. Increased government spending leads to increased private consumption. Tax cuts always stimulate economic growth. Budget deficits always lead to higher interest rates.
Q12. The 'Smart Cities Mission' aims to develop:

Rural areas Backward regions Sustainable and citizen-friendly cities Special Economic Zones
Q13. Which sector is crucial for inclusive growth in a developing economy like India?

Only the IT sector Agriculture and rural development Luxury goods manufacturing Foreign tourism
Q14. A marketing strategy in Bihar that emphasizes the 'social proof' for a new type of iodized salt would aim to leverage the tendency of consumers to:

Independently research the scientific benefits of iodized salt. Follow the actions and recommendations of others, especially those they perceive as similar or authoritative. Critically evaluate the nutritional information provided on the packaging. Prioritize the lowest price option available in the market.
Q15. What is a significant challenge for tribal or indigenous communities in achieving inclusive growth?

Excessive government support Loss of traditional livelihoods and cultural identity Easy access to markets High levels of literacy
Q16. In a situation of stagflation, which of the following combinations of monetary policy actions would be most consistent with an attempt to stabilize the economy, acknowledging the inherent trade-offs?

A significant increase in the policy interest rate and quantitative easing. A moderate decrease in the policy interest rate and a reduction in reserve requirements. A credible commitment to forward guidance for a prolonged period of low interest rates. A contractionary monetary policy focused on reducing inflation, even at the risk of a short-term increase in unemployment.
Q17. Which of the following is NOT a primary objective of the Economic Survey of India?

To provide a factual and analytical account of the Indian economy To forecast economic growth and inflation rates To critically analyze the performance of various sectors of the economy To suggest policy measures for economic development
Q18. Which of the following indicators is MOST relevant for assessing the inclusivity of labor market outcomes?

Average wage rate in the formal sector. Employment-to-population ratio across different demographic groups and skill levels. Growth in the manufacturing sector's output. Volume of exports.
Q19. The Bihar Budget 2023-24 proposed a special package for the development of which district, known for its tourism potential?

Madhubani Katihar Nawada Jamui
Q20. The Bihar budget allocates funds for the development of industries, which is part of...

Agricultural reform Industrial policy Education policy Healthcare policy

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