General Economics - Top 50 Mcqs and Answers for Ba llb Entrance Kashmir University

General Economics - Top 50 Mcqs and Answers for Ba llb Entrance KashmirUniversity  

1. What is GDP?
   👉 GDP is the total market value of all final goods and services produced within a country in a year.

2. What is GNP?
   👉 GNP = GDP + Income from abroad – Income to foreigners.

3. What is Inflation?
   👉 Inflation is the sustained increase in the general price level of goods and services.

4. What is Deflation?
   👉 Deflation is a decrease in the general price level of goods and services.

5. What is Fiscal Policy?
   👉 It is the government’s policy on taxation, spending, and borrowing.

6. What is Monetary Policy?
   👉 It is the RBI’s policy on money supply and interest rates to control inflation and growth.

7. What is Repo Rate?
   👉 Repo Rate is the rate at which RBI lends money to commercial banks.

8. What is Reverse Repo Rate?
   👉 Reverse Repo Rate is the rate at which RBI borrows money from banks.

9. What is CRR?
   👉 CRR (Cash Reserve Ratio) is the percentage of deposits banks must keep with RBI.

10. What is SLR?
    👉 SLR (Statutory Liquidity Ratio) is the minimum percentage of deposits banks must maintain in gold, cash, or government securities.

11. What is Demonetization?
    👉 The act of stripping a currency unit of its legal tender status.

12. What is Disinvestment?
    👉 Selling government stake in public sector enterprises.

13. What is a Budget Deficit?
    👉 When government expenditure exceeds its income.

14. What is Balance of Payment?
    👉 A record of all economic transactions between a country and the rest of the world.

15. What is FDI?
    👉 Foreign Direct Investment is when foreign entities invest directly in businesses or assets in another country.

16. What is FII?
    👉 Foreign Institutional Investors invest in the stock markets of a country.

17. What is HDI?
    👉 Human Development Index measures life expectancy, education, and per capita income.

18. What is Poverty Line?
    👉 The minimum level of income deemed adequate to live in a particular country.

19. What is Subsidy?
    👉 Financial assistance by the government to reduce the cost of a product.

20. What is Black Money?
    👉 Income not declared for tax purposes.

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🔹 Indian Economy - One-Liner Questions & Answers

21. Who prepares the Union Budget in India?
    👉 Ministry of Finance.

22. What is the role of NITI Aayog?
    👉 It acts as a policy think tank and replaced the Planning Commission.

23. When was NITI Aayog formed?
    👉 On 1st January 2015.

24. What is Make in India?
    👉 A government initiative to promote manufacturing in India.

25. What is Startup India?
    👉 A campaign to promote entrepreneurship and support startups.

26. What is the largest sector in India by GDP?
    👉 The services sector.

27. What is the largest employer sector in India?
    👉 The agriculture sector.

28. What is Green Revolution?
    👉 A movement to increase agricultural production using HYV seeds and modern techniques.

29. What is White Revolution?
    👉 A movement to increase milk production in India.

30. Who is known as the Father of the Green Revolution in India?
    👉 M.S. Swaminathan.

31. Which sector is called the Primary Sector?
    👉 Agriculture and allied activities.

32. Which sector is called the Secondary Sector?
    👉 Manufacturing and industry.

33. Which sector is called the Tertiary Sector?
    👉 Services sector.

34. What is MNREGA?
    👉 Mahatma Gandhi National Rural Employment Guarantee Act provides 100 days of wage employment.

35. What is GST?
    👉 Goods and Services Tax is a unified indirect tax across India.

36. When was GST implemented in India?
    👉 On 1st July 2017.

37. What is the base year for GDP calculation in India?
    👉 2011-12.

38. Which organization releases GDP data in India?
    👉 National Statistical Office (NSO).

39. What is the current poverty line in India (as per Tendulkar committee)?
    👉 ₹33/day (rural), ₹47/day (urban) – Approx. values.

40. What is the target of PM-KISAN scheme?
    👉 To provide ₹6,000 per year to farmers in three installments.

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🔹 Mixed Important One-Liners

41. Which Indian economist won the Nobel Prize in 1998?
    👉 Amartya Sen.

42. What is Twin Deficit?
    👉 Fiscal deficit and current account deficit occurring simultaneously.

43. What is a cooperative bank?
    👉 A financial entity owned and operated by its members.

44. What is Microfinance?
    👉 Financial services for low-income individuals or groups.

45. What is the base year of IIP (Index of Industrial Production)?
    👉 2011–12.

46. What is the role of NABARD?
    👉 It supports rural and agricultural development.

47. What is PPP model in the economy?
    👉 Public-Private Partnership model for infrastructure development.

48. What is India's rank in global economy (2024 approx)?
    👉 5th largest by nominal GDP.

49. What is the aim of Atmanirbhar Bharat?
    👉 To make India self-reliant in all key sectors.

50. What is a fiscal stimulus?
    👉 Government spending or tax cuts to boost economic activity.