Mock Test

Exam: RRB NTPC Subject: General Awareness Topic: Economics

Total Questions: 20

Q1. Which type of tax is most affected by economic cycles?

Property tax Sales tax Income tax Excise tax
Q2. A government policy that provides subsidies to businesses for hiring new employees is intended to:

Decrease employment. Increase unemployment. Boost employment levels. Reduce wages.
Q3. Which sector is often considered the backbone of infrastructure development?

Healthcare Sector Education Sector Transportation Sector Hospitality Sector
Q4. The concept of 'scarcity' is a fundamental problem that all economic systems must address.

True, but only in command economies True, but only in market economies True, as resources are finite and wants are infinite False, as advanced economies have overcome scarcity
Q5. Which factor can contribute to an increase in the 'natural rate of unemployment'?

A strong economy with high job creation. Increased efficiency in job matching. Generous unemployment benefits that discourage job search. A decrease in the skills gap.
Q6. Conditionality is a key feature of World Bank lending, particularly for policy-based loans. These conditions often relate to macroeconomic stability, structural reforms, and sector-specific policies. What is the primary purpose of these conditionalities?

To ensure that the borrowed funds are used for their intended purpose and to promote sustainable development. To impose the Bank's economic ideology on recipient countries. To maximize the Bank's profits through interest rate adjustments. To limit the recipient country's sovereignty in its economic decision-making.
Q7. Which of the following is a crucial factor for successful rural development programs?

Lack of community participation Effective implementation and monitoring Ignoring local needs Centralized decision-making without local input
Q8. Which of the following is LEAST likely to be a factor influencing a consumer's decision to purchase a new smartphone?

Social media trends The brand's perceived status The weather conditions on the day of purchase The availability of financing options
Q9. What is the main purpose of taxation?

To encourage personal savings To generate revenue for the government To reduce competition among businesses To control the supply of money
Q10. The concept of 'Small Scale Industries' gained significant policy focus in which industrial policy?

IPR 1948 IPR 1956 IPR 1991 All of the above
Q11. What role does the government play in the pricing of commodities under the PDS?

Setting market prices Subsidizing prices Increasing prices Outsourcing pricing decisions
Q12. The Human Development Index (HDI) considers which of the following as key dimensions?

Industrial output, trade balance, and foreign reserves Health, education, and standard of living Technological advancement, infrastructure, and innovation Income inequality, poverty rate, and employment
Q13. The 'purchasing power parity' (PPP) adjustment for Gross National Income (GNI) per capita in the HDI is crucial because it:

Increases the nominal value of income Makes income comparisons more accurate across countries with different price levels Only considers the average income Ignores the cost of living
Q14. Which of the following is a psychological factor influencing consumer behavior?

Social class Reference group Personality Family
Q15. What is the main purpose of the RBI's role as a custodian of foreign exchange reserves?

To invest in foreign stock markets To provide stability to the external value of the rupee To fund government projects abroad To hoard gold
Q16. The term 'neocolonialism' in economic development theory refers to:

The process of decolonization and nation-building. Indirect economic and political control exerted by developed countries over developing nations. The establishment of free trade zones. The adoption of socialist economic policies.
Q17. The 'Foreign Exchange Management Act' (FEMA), 1999, replaced the earlier 'Foreign Exchange Regulation Act' (FERA). What fundamental shift did FEMA bring about concerning foreign trade transactions in India?

It tightened controls on all foreign exchange transactions to prevent capital flight. It shifted from a regime of 'regulation' to 'management' of foreign exchange, allowing greater flexibility. It mandated that all import payments must be made in Indian Rupees. It prohibited foreign investment in export-oriented industries.
Q18. Crowding out refers to the potential effect of government borrowing on:

Consumer spending Private investment Government spending Inflation
Q19. What is a key objective of competition policy in a liberalized economy?

Promoting monopolies Preventing anti-competitive practices Limiting market entry Increasing government control over prices
Q20. Which is the largest trading partner of India in terms of total trade volume?

China USA UAE Germany

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