Economic Survey 2017 Based MCQ Pdf Download -mcq of economic survey 2017

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Economic Survey 2017 Based MCQ Pdf Download -mcq of economic survey 2017

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Economic Survey 2017 Based MCQ Pdf Download -mcq of economic survey 2017

Economic Survey 2017 Based MCQ Pdf Download -mcq of economic survey 2017

Economic Survey 2017 Based MCQ Pdf Download -mcq of economic survey 2017

Economic Survey 2017 Based MCQ Pdf Download -mcq of economic survey 2017 -Economic Survey 2017 Based MCQ Pdf Download -mcq of economic survey 2017

Question 1

Consider the following statements regarding fiscal consolidation in India:

  1. India like several other countries, embarked in the mid-2000s on an ambitious project of fiscal consolidation.
  2. Fiscal Responsibility and Budget Management (FRBM) Act was adopted by the centre in 2003.

Identify the correct statements

a- 1 only

b- 2 only

c- Both

d- Neither of the above

Question 2

Consider the following statements:

Assertion: After Fiscal Responsibility legislations were passed states expanded more discretionary spending.

Reason: It which would be easier to scale back discretionary spending, if needed to achieve the deficit targets.

Identify the correct statements (Assertion – A & Reason – R)

a- Both A and R are true but R is the correct explanation of A

b- Both A and R are true but R is not a correct explanation of A

c- A is true but R is false

d- A is false but R is true

Question 3

Which factors provided impetus to the impressive fiscal performance by the states?

  1. Passing of Fiscal responsibility legislations
  2. Acceleration of GDP growth
  3. Decline in interest payments
  4. increased transfers from the Centre and central CSS expenditure

Identify the incorrect statements

a- 1 & 2 only

b- 2 & 3 only

c- All

d- None

Question 4

Article 293 (3) of the Constitution is tool in the hands of centre to check fiscal deterioration on part of states. What is Article 293(3)?

a- States must take consent of the Centre for additional borrowing

b- States must reduce their fiscal expenditure on centre’s instructions

c- Centre may introduce financial emergency in state to check deteriorating financial situation

d- Centre may raise interest rates on loans given to states

Question 5

Which of following constitute future fiscal challenges for the states?

  1. Pay Commission recommendations
  2. slowing growth
  3. rising payments from the UDAY bonds
  4. Increased discretionary spending

Identify the correct statements

a- 1 & 2 only

b- 1, 2 & 3 only

c- All are correct

d- None are correct

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Question 6

Identify correct statements:

  1. 13th FC’s recommended allocating resources across states (the so-called “horizontal” criteria) based on states’ own fiscal performance.
  2. 14th FC’s attempted to shift towards incentive by relaxing some of the FRL limits for better performing states.

a) 1 only

b) 2 only

c) Both

d) None

Question 7

What are components of Universal Basic Income in true sense?

  1. universality,
  2. unconditionality,
  3. agency

Identify the correct statements

a- 1 only

b- 1 & 2 only

c- All

d- Neither of the above

Question 8

Consider the following statements w.r.t UBI:

  1. The economy-wide cost of UBI will be 4.9 percent of GDP
  2. The survey assumes that in practice any program cannot strive for strict universality, so a target quasi-universality rate of 75 percent is set (de facto UBI).

Identify the correct statements

a- 1 only

b- 2 only

c- Both

d- Neither of the above

Question 9

Which of following are arguments in favour of opting UBI?

  1. Poverty & vulnerability reduction
  2. Better targeting of poor
  3. Insurance against shocks
  4. Improvement in financial inclusion
  5. Psychological benefits
  6. Exposure to market risks

Identify the correct statements

a- All except 5 & 6

b- All except 6

c- All are correct

d- Neither of the above

Economic Survey 2017 Based MCQ Pdf Download -mcq of economic survey 2017

Question 10

Which of following are arguments against UBI?

  1. Fear of wasteful spending
  2. Reduction in labour supply
  3. Male domination over Cash transfers under UBI
  4. Too much stress on banking system
  5. Administrative efficiency
  6. Fiscal cost of roll back in case of failure

Identify the correct statements

a- All except 5

b- All except 6

c- All are correct

d- Neither of the above

Question 11

According to economic survey, which of following approaches can be used for gradual introduction of UBI in India?

  1. Offering UBI as a choice to beneficiaries of existing programs
  2. Offering UBI to Women
  3. Introduction of UBI for certain vulnerable groups like widows, pregnant women, old etc.
  4. Introduce UBI in urban areas first

Identify the correct statements

a- 1 & 2 only

b- 2 & 3 only

c- All are correct

d- None are correct

Question 12

According to the Economic Survey, what are pre requisites to Universal Basic Income:

a- JAM: Jan Dhan, Aadhar and Mobile
b- Centre-state negotiations for program cost sharing
c- Both of the above
d- Neither of the above

Question 13

As per Economic survey, what is twin balance sheet problem?

a- overleveraged companies and bad-loan-encumbered banks

b- underleveraged companies and bad-loan-encumbered banks

c- underleveraged government and bad-loan-encumbered banks

d- overleveraged economy and bad-loan-encumbered banks

Question 14

Assertion: During the mid 2000s debt of the companies increased.

Reason: The period witnessed high growth rates of economy with increasing investment-GDP ratio and overseas spending.

Identify the correct statements (Assertion – A & Reason – R)

a- Both A and R are true but R is the correct explanation of A

b- Both A and R are true but R is not a correct explanation of A

c- A is true but R is false

d- A is false but R is true

Question 15

Which of following are reasons for India’s twin balance sheet problem?

  1. Difficulty in obtaining land and environmental clearances
  2. Dampening impact of Global financial crisis
  3. Increase in the interest rates by RBI to curb inflation

Identify the correct statements

a- 1 & 2 only

b- 2 & 3 only

c- All are correct

d- None are correct

Question 16

Economic survey envisages certain scenarios in which India’s TBS may be sustainable. With regard to it, consider the following scenarios:

  1. Under Containment scenario, Economy grows with improvement in cash flows to stressed companies so that they can service debts.
  2. Under Phoenix scenario, NPAs are limited to a small proportion of the GDP and GDP growth is increased. In this way problem is not solved but fades in importance.

Identify the correct statements

a- 1 only

b- 2 only

c- Both

d- Neither of the above

Hint: Both are opposite.

Question 17

Assertion: More than four-fifths of the non-performing assets were in the public sector banks, still there was no banking crisis because of TBS

Reason: Public Sector Banks are ultimately backed by the government. So, the creditors did not lose their faith on the banking system.

Identify the correct statements (Assertion – A & Reason – R)

a- Both A and R are true but R is the correct explanation of A

b- Both A and R are true but R is not a correct explanation of A

c- A is true but R is false

d- A is false but R is true

Question 18

One of the corporate trouble linked to TBS was that Interest coverage ratio less than 1. What does this mean?

a- corporates did not earn enough to even pay the interest obligations on their loans.

b- debt of corporates has become equal to interest

c- corporate earnings are just enough to pay the interest

d- corporates are not able to meet their principal obligations let alone interest

Question 19

What was response of Public Sector Banks in wake of Twin Balance Sheet problem?

  1. They scaled back their new lending.
  2. They increased their interest margins for performing borrowers and depositors, thus effectively burdening MSME sector for no fault of their own.

Identify the correct statements

a- 1 only

b- 2 only

c- Both

d- Neither of the above

Question 20

Why TBS has proved to be devastating for MSME sector?

  1. PSBs increased their interest margins on account of loss suffered on account of huge NPAs, thus increasing borrowing costs for MSMEs.
  2. MSMEs had no or minimal access to alternate means of funding.

Identify the correct statements

a- 1 only

b- 2 only

c- Both

d- Neither of the above

Economic Survey 2017 Based MCQ Pdf Download -mcq of economic survey 2017

Question 21

Consider the following statements regarding PARA (Public Sector Asset Rehabilitation Agency):

  1. It will be charged with working out the largest and most complex cases of stressed assets.
  2. It could solve the coordination problem, since debts would be centralised in one agency.
  3. It would purchase specified loans from banks and then work them out, either by converting debt to equity and selling the stakes in auctions or by granting debt reduction.

Identify the correct statements

a- 1 & 2 only

b- 2 & 3 only

c- All are correct

d- None are correct

Question 22

While advanced economies (AEs) are increasingly opting for fiscal activism, India should not go for such a move. Which of following are reasons for continuing with fiscal prudence:

  1. Indian growth rates are substantially higher, while inflation rates are also substantially greater.
  2. India’s own recent experience highlights the risks associated with increasing growth rates through fiscal activism. The two episodes of Indian macro vulnerability in the last 35 years—1991 and 2013—were associated with large increases in fiscal deficits.

Identify the correct statements

a- 1 only

b- 2 only

c- Both

d- Neither of the above

Question 23

Consider the following statements regarding the convergence patterns between different Indian states.

  1. On the financial front, though there has been income convergence but consumption divergence.
  2. On health front, there has been convergence across both fronts i.e. life expectancy at birth and infant mortality rate.

Identify the correct statements

a- 1 only

b- 2 only

c- Both

d- Neither of the above

Hint: On the financial front, there has been divergence on both income and convergence

Question 24

Within India, where borders are porous, convergence has failed whereas in China, we observe successful convergence. What reason does economic survey attributes for this strange situation in India?

  1. Governance or institutional traps.
  2. India’s reliance on growth of skill-intensive sectors rather than low-skill ones. Unless the less developed regions are able to generate skills, (in addition to providing good governance) convergence may not occur.

Identify the correct statements

a- 1 only

b- 2 only

c– Both

d- Neither of the above

Question 25

Consider the following statements:

  1. 1991- One-Quarter of the population living in cities.
  2. 2011- One-Third of the population living in cities.
  3. Cities produce more than 60% of India’s GDP.
  4. 74th amendment leaves it to the discretion of state legislatures to devolve finances to the ULBs.

Identify the correct statements

a- 1 & 2 only

b- 2 & 3 only

c- All are correct

d- None are correct

Question 26

Consider the following statements:

  1. As per Zipf’s law, the city with the largest population in any country is generally twice as large as the next-biggest; three times the size of the third biggest, and so on.
  2. India’s pattern of Urbanisation adheres to Zipf’s Law.

Identify the correct statements

a- 1 only

b- 2 only

c- Both are correct

d- None are correct

Question 27

Consider the following w.r.t. urbanisation in India?

  1. India’s urbanisation rate appears to have been similar to that in other countries.
  2. Countries follow a pattern of urbanisation where the level of urbanisation has increased with the per capita GDP.
  3. A large part of the difference in the levels of urbanisation seen between India and China can be mainly attributed to the different levels of development of each country.

Identify the correct statements

a- 1 & 2 only

b- 2 & 3 only

c- All are correct

d- None are correct

Question 28

Which of following constitute key challenges for Urban Local Bodies in India?

  1. Poor governance capacities
  2. Large infrastructure (water and power supply, waste management, public transport, education, healthcare etc.) deficits.
  3. Inadequate finances.

Identify the correct statements

a- 1 & 2 only

b- 2 & 3 only

c- All are correct

d- None are correct

Question 29

What are common challenges for India in regaining competitiveness in Apparel and Leather Sector?

  1. Stringent Labour regulations.
  2. Skewed taxation & tariff policies.
  3. Poor logistics
  4. Discrimination in export markets
  5. Limited availability of cattle for slaughter despite a large cattle population.

Identify the correct statements

a- All except 5

b- 2 & 3 only

c- All are correct

d- None are correct

Hint: 5 is only for leather sector.

Question 30

To which of following countries is India losing the space vacated by China due to rising wages in apparel and leather sector:

a- Bangladesh, Vietnam & Indonesia

b- Vietnam, Myanmar and Uganda

c- Bangladesh, Philipines & Laos

d- Uganda, Laos & Rwanda

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Economic Survey 2017 Based MCQ Pdf Download -mcq of economic survey 2017

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2 Comments

  1. kiran April 1, 2017 at 3:59 pm - Reply

    Sir can you please provide economic survey 2017 pdf download link.

    • Ajit OmGhyan April 5, 2017 at 11:40 pm - Reply

      download link is given below you can download economic survey 2017

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