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GK Questions: Indian Economy – Set 28

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Hello Aspirants.

Welcome to Online General Knowledge section in Affairs cloud, which is important for all the competitive exams. We have created Some questions related to Indian GK(Indian Economy) !!!

  1. In Economy, Amalgamation means the process of
    1.Mixing
    2.Merging
    3.Fixing
    4.Seperation
    5.None of these
    Answer – 2.Merging
    Explanation :
    Amalgamation is done as a method of acquiring cash resources, eliminating competition, saving on taxes or influencing the economies of large-scale operations

  2. An ad valorem tax (Latin for “according to value”) is a kind of
    1.Direct Tax
    2.State Tax
    3.Corporate Tax
    4.Indirect Tax
    5.None of these
    Answer – 4.Indirect Tax
    Explanation :
    An ad valorem tax (Latin for “according to value”) is an indirect  tax whose amount is based on the value of a transaction or of property. It is typically imposed at the time of a transaction, as in the case of a sales tax or value-added tax (VAT).

  3. Autarky is an economic policy to have a which type of economy ?
    1.Open Economy
    2.Mixed Economy
    3.Closed Economy
    4.All of these
    5.None of these
    Answer – 3.Closed Economy
    Explanation :
    Autarky is an economic policy to have a closed economy and not allow any external trade. The meaning of Autarky is self sufficient.

  4. A Tobin tax is related to
    1.Agriculture
    2.Banking
    3.Trade
    4.Currency
    5.None of these
    Answer – 4.Currency
    Explanation :
    A Tobin tax is a levy on financial transactions, in particular currency transactions. It was suggested by Nobel Memorial Prize in Economic Sciences Laureate economist James Tobin, was originally defined as a tax on all spot conversions of one currency into another.

  5. The Safe investment in stock exchange is also called as
    1.Black chip
    2.Red Chip
    3.Blue Chip
    4.White Ship
    5.None of these
    Answer – 3.Blue Chip
    Explanation :
    Blue Chip in stock is concerned with such equity shares whose purchase is extremely safe

  6. A tax is said to bebuoyantif the tax revenues……………… proportionately in response to a rise in national income or output.
    1.Increase more than
    2.Decreases less than
    3.Decreases more than
    4.Increases less than
    5.None of these
    Answer – 1.Increase more than
    Explanation :
    A tax is said to be buoyant if the tax revenues increase more than proportionately in response to a rise in national income or output.

  7. …………… is the money which can only be borrowed at a high rate of interest
    1.Token Money
    2.Dear Money
    3.Commodity Money
    4.Standard Money
    5.None of these
    Answer – 2.Dear Money
    Explanation :
    Dear Money is when it is expensive to borrow money because of high real interest rates. For example, if bank rates are 10% and inflation is 6%. The effective real interest rate is 4% which is quite high.

  8. Which law is used to relate income and money spent on food ?
    1.Okun’s law
    2.Gossen’s law
    3.Law of supply
    4.Engel’s law
    5.None of these
    Answer – 4.Engel’s law
    Explanation :
    Engel’s Law: Economic theory that the proportion of income spent on food decreases as income increases, other factors remaining constant.

  9. GEM is abbreviated as
    1.Gender Empowerment Measure
    2.Global Economic Market
    3.General Education Measure
    4.Gender Education Mature
    5.None of these
    Answer – 1.Gender Empowerment Measure
    Explanation :
    The Gender Empowerment Measure (GEM) is a measure of inequalities between men’s and women’s opportunities in a country.

  10. Laissez-faire is an economic system in which transactions between ……………..
    1.Public Parties
    2.Private and Public
    3.Private and Govenment
    4.Private parties
    5.None of these
    Answer –4.Private parties
    Explanation :
    Laissez-faire is an economic system in which transactions between private parties are free from government interference such as regulations, privileges, tariffs, and subsidies.