October 16, 2022

Micro & Macro Economics – WBCS Main Question Paper

By Sutirtha Datta WBCS Mains Question Paper 0 Comments

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Micro, Macro Economics WBCS Main Question Paper

wbcs main economics questions

WBCS Main Question Paper – 2021

3. The per capita income has been low in India because

(A) of population growth.

(B) of price rise.

(D) of regional imbalances.

15. Which among the following cannot be called an anti-inflationary measure?

(A) Raising the bank rates

(B) Raising the Reserve Ratio Requirements

(D) Rationing of the credit

34. ‘Take off stage’ in an economy means

(Rostow’s stages)

(A) steady growth begins.

(B) economy is stagnant.

(D) all controls are removed.

42. Devaluation of a currency means

(A) reduction in the value of a currency vis-a-vis major internationally traded currencies.

(B) permitting the currency to seek its worth in the international market.

(D) fixing the value of currency in multilateral consultation with the IMF and World Bank.

57. Since the inception of the co-operative movement, rural credits has been

(A) institutionalised

(B) rationalized

(D) All of the above

72. The Laffer curve is the graphical representation of

(A) the relationship between tax rates and absolute revenue which these rates generate for the government.

(B) the inverse relationship between the rate of unemployment and the rate of inflation in an economy.

(D) the relationship between environmental quality and economic development.

74. Population explosion in a country means

(A) high birth rate and high death rate.

(B) high birth rate and low death rate.

(D) low birth rate and low death rate.

95. The vicious circle argument points out the supply side connection between

(A) Productivity and Income

(B) Income and Population

(D) Saving and Capital

96. The value of national income adjusted for inflation is called

(A) Per capita income

(B) Disposable income

(D) Real National Income

108. Which of the following explains the term ‘economic development’?

(A) Improvement in the technology involved

(B) Improvement in production

(D) All of the above

113. Which of the following measures is not likely to help in improving India’s balance of payments position?

(A) Devaluation of the rupee

(B) Encouragement of import substitutions

(D) Imposition of higher duty on exports

114. National expenditure includes

(A) Consumption expenditure

(B) Investment expenditure

(D) All of the above

138. Which of the following groups suffer the most from inflation?

(A) Debtors

(B) Creditors

(D) Holders of real assets

141. Which of the following groups of states has the largest concentration of rural poor and people living below the poverty line?

(A) Karnataka, Maharashtra, Goa

(B) Goa, Andhra Pradesh, Maharashtra

(D) Andhra Pradesh, Karnataka, Tamil Nadu

161. The competitive devaluation by the countries would badly affect which among the following?

(A) Exporters

(B) Importers

(D) Service providers

166. India is said to be in the second stage of the demographic transition because

(A) both birth and death rates are high.

(B) birth rate is high but death rate is declining due to improvement in health services.

(D) None of the above

169. Devaluation of currency will be more beneficial if

(A) prices of domestic goods remain constant.

(B) prices of exports become cheaper to importers.

(D) prices of exports rise proportionately.

182. Persons below the poverty line in India are classified as such based on whether

(Tendulkar poverty line, 2011-12)

(A) they are entitled to a minimum prescribed food basket.

(B) they get work for a prescribed minimum number of days in a year.

(D) their daily wages fall below the prescribed minimum wages.

190. Exchange rates for one currency against another currency, is known as

(A) Real exchange rate

(B) Nominal exchange rate

(D) None of the above

WBCS Main Question Paper – 2020

106. Find which statement is correct.

Sales Tax

(A) is progressive.

(B) is regressive.

(D) brings distributive justice.

119. Inflation appears when there occurs,

(A) increase in money supply.

(B) one time increase in price level.

(D) continuous increase in price level

124. Which of the following items does not come under National Income measurement ?

(A) Wages to agricultural labourer paid in kind.

(B) Receipt from second hand sale of an automobile.

(D) Value of the product kept for self-consumption.

164. Inflationary pressure in the domestic market

(A) makes balance of trade unfavorable

(B) improves balance of trade.

(D) the relationship is uncertain.

168. Structural Adjustment Programme in India required

(A) fiscal deficit zero

(B) fiscal deficit very low

(D) fiscal deficit moderately high

WBCS Main Question Paper – 2019

170. Devaluation of currency leads to:

(A) Fall in domestic price

(B) Increase in domestic price

(D) None of the above

177. GNP = GDP + X – M

where M means

(A) income earned and received by nationals within the boundaries of foreign countries

(B) income received by foreign nationals from within the country.

(D) indirect taxes and subsidies.

178. GDP (at market price) – NIT = ?

(Ans = GDP at factor cost, NIT = Net Indirect Tax)

(A) NNP (at market price)

(B) GNP (at factor cost)

(D) NNP (at factor cost)

179. Who is the author of the book ‘Poverty and Un-British Rule in India’?

(A) Dadabhai Naoroji

(B) Amartya Sen

(D) Amit Mitra

183. Industrial sickness due to the managerial incompetence and wrong policies pursued deliberately for want of genuine stake is known as

(A) Genuine sickness

(B) Incipient sickness

(D) None of the Above

195. A currency with a value that fluctuates as a result of the country’s political or economic uncertainty is known as

(A) Hard Currency

(B) Soft Currency

(D) None of the above

196. A condition of slow economic growth and relatively high unemployment – economic stagnation – accompanied by rising prices is known as

(A) Stagflation

(B) Hyper-inflation

(D) Cost push inflation

197. Since April 2014 the Reserve Bank of India has adopted the new measure of inflation which is known as

(A) Consumer Price Index

(B) New Consumer Price Index

(D) None of the above

WBCS Main Question Paper – 2018

20. As per 2011 Census, the Indian State with highest literacy rate is

a) Goa

b) Kerala

c) Mizoram

d) Tripura

21. Women to men ratio in India as per 2011 Census is

a) 920 : 1000

b) 930 : 1000

c) 940 : 1000

d) 980 : 1000

24. GDP at factor cost is

a) GDP minus indirect taxes plus subsides

b) GNP minus depreciation allowances

c) NNP plus depreciation allowances

d) GDP minus subsides plus indirect taxes

29. Who wrote a book describing the theory of economic drain of India during British rule?

a) Late Lajpat Rai

b) Mahatma Gandhi

c) Jawaharlal Nehru

d) Dadabhai Naoroji

27. Select the correct answer about the Indian states in Health-Sector:

a) Kerala is the best performer in term of the expectancy at birth (both male and female) in last decade.

b) Madhya Pradesh the worst in terms of life expectancy at birth (both male and female) in last five years.

c) The highest birth rate in India is found in Goa.

d) Both the statement given in (a) and (b) are correct.

36. India is said to be in the second stage of demographic transition because

a) both birth and death rates are high.

b) birth rate is high but death rate is declining due to improving healthcare

c) death rates and birth rates are falling

d) None of the above

41. In India GDP is higher than GNP because

a) Import is higher than exports

b) capital inflow is higher than capital outflow.

c) net factor income is negative

d) government expenditure is more than income

42. National Income of India is compiled by

a) Finance Commission

b) Indian Statistical Institute

c) National Development Council

d) Central Statistical Organisation

44. People below poverty line in India are classified as such based on whether

(based on the consumption expenditure)

a) they are entitled to a minimum prescribed food basket.

b) they get work for a minimum number of days in a year.

c) they belong to minority groups

d) their daily wages follows below prescribed minimum wages.

168. Which of the following is likely to cause current account deficit in India?

I. Reduced excise duties on Sports Utility Vehicles

II. Reduced duties on Gold

III. Ban of export of Onions

a) Both I & II

b) Both II & III

c) Only I & III

d) I, II & III

176. National income calculated at current price in India has shown a tendency to rise at a faster rate than national income at constant prices because

a) General price level has been rising fast

b) India’s population has been rising.

c) Base year chosen is abnormal

d) None of the above

200. Which among the following is popularly known as mercantile law of India?

a) Contract Law

b) Law of Torts

c) Labour Law

d) Property Law

WBCS Main Question Paper – 2017

124. The data of estimation of India’s National Income is issued by

(A) Planning Commission

(B) National Data Centre

(D) None of the above

116. One of the problems in calculating the national income in India correctly is

(A) under-employment

(B) inflation

(D) low savings

117. India’s wage policy is based on

(A) Cost of living

(B) Standard of living

(D) None of the above

118. The most important source of capital formation in India has seen

(A) Household savings

(B) Public sector savings

(D) Corporate savings

127. Which is not added in the calculation of national income of India ?

(A) The value of goods and services

(B) The sold value of the old fridge

(D) Both (B) and (C)

128. How much does the primary sector contribute to India’s GDP ?

(A) 26%

(B) 20%

(D) 14%

129. What base year is used to calculate per capita income in India ?

(base year – 2011-12 in 2019)

(A) 2004-05

(B) 2011-12

(D) 2014-15

130. Who among the following did not estimate the incidence of poverty in India ?

(A) B. S. Minhas

(B) P. K. Bardhan

(D) Raj Krishna

139. In India, which of the following affects poverty line the most ?

(A) Level of prices

(B) Production quantum

(D) Quantum of gold reserve

140. Which of the following are the main causes of slow rate of growth of per capita income in India ?

1. High capital – output ratio

2. High rate of growth of population

3. High rate of capital formation

4. High level of fiscal deficits

(A) 1, 2

(B) 2, 3, 4

(D) All of the above

141. National Sample Survey Organisation (NSSO) was established in

(National Sample Survey Office)

(A) 1947

(B) 1948

(D) 1950

143. Which state has the highest per capita income in India ?

(A) Delhi

(B) Punjab

(D) West Bengal

151. The average rate of domestic savings (gross) for the Indian economy is currently estimated to be in the range of

(A) 15% to 20%

(B) 20% to 25%

(D) 30% to 35%

166. The Human Development Index (HDI) is a composite of three indicators such as

(A) longevity, educational attainment and standard of living

(B) longevity, poverty and change in output

(D) poverty, standard of living and educational attainment

172. Mixed economy means an economy where

(A) there is co-existence of public sector along with private sector.

(B) both agriculture and industry are equally promoted by the state.

(D) there is importance of small scale industries along with heavy industries.

179. Which one of the following is / are a / an indicator of the financial health of a country ?

(i) GDP

(ii) PPP

(iii) FDI in a year

(A) Only (i)

(B) Only (ii)

(D) All (i), (ii) & (iii)

180. Which one of the following is a driving force influencing the industrial growth of an economy ?

(A) Economic factors only

(B) Investment only

(D) All of the above

105. Consider the following statements :

(1) India’s GDP is more than its GNP.

(2) Net Factor Income from Abroad (NFIA) is positive for India.

Which of the statements given above is / are correct ?

(A) 1 only

(B) 2 only

(D) Neither 1 or 2

106. The largest percentage of bonded labour in India belongs to

(A) scheduled castes

(B) scheduled tribes

(D) None of the above

112. In India, inflation is measured by

(A) wholesale price index number

(B) consumer price index number for urban non-manual workers

(D) gross national product at market prices

191. How much population is living below poverty line in India ?

(A) Approx. 23.6%

(B) Approx. 25%

(D) Approx. 27%

193. India is regarded as a country with ‘Demographic Dividend‘. This is due to

(A) its high population in the age group below 15 years

(B) its high population in the age group of 15-64 years

(D) its high total population

36. India opted for ‘mixed economy’ in

(A) framing of the constitution

(B) Industrial Policy of 1948

(D) None of the above

WBCS Main Question Paper – 2016

72. What is the percentage of people below Poverty line according to Rangarajan Committee ?

(A) 32 per cent

(B) 29.5 per cent

(D) 40 per cent

61. Consider the following specific stages of demographic transition associated with economic development-

(1) Low birth rate with low death rate

(2) High birth rate with high death rate

(3) High birth rate with low death rate

Select the correct answer using the codes given below

(A) 1, 2, 3

(B) 2, 1,3

(D) 3, 2, 1

90. Which of the following benefits from inflation ?

(A) Lender

(B) Borrower

(D) None of the above

102. Which of the following states has the literacy rate lower than the national average ?

(A) Karnataka

(B) West Bengal

(D) Maharashtra

113. On the basis of the Report of the Census Commission, the biggest city in India is-

(A) Kolkata

(B) Mumbai

(D) Nagpur

117. The contribution of agriculture and allied sectors to the Gross Domestic Product of India in 2012-13 was –

(A) 15%

(B) 14.1%

(D) 20%

119. Has the inequality of income been reduced very much because of increased national income in India in the last three decades ?

(A) Yes

(B) No

(D) May be not

122. Arrange the following Indian states in descending order from urbanisation point of view.

(1) West Bengal

(2) Tamil Nadu

(3) Maharashtra

(4) Gujarat

Select the correct answer using the codes given below.

(A) 1, 2, 3. 4

(B) 2, 3, 4, 1

(D) 4, 3, 2, 1

127. The average rate of domestic savings (gross) for the Indian economy is currently estimated to be in the range of –

(A) 15 to 20 % (2019)

(B) 20 to 25 %

(D) 30 to 35 %

129. More than one-third of India’s population is concentrated in the states of –

(A) Uttar Pradesh, Maharashtra, Bihar

(B) Uttar Pradesh, Bihar, Andhra Pradesh

(D) Uttar Pradesh, Maharashtra, Madhya Pradesh

138. Which among the following items is taken as the real measure of a country’s international competitiveness —

(A) Real Exchange Rate

(B) Nominal Exchange Rate

(D) None of the above

139. What are the conditions to be fulfilled by a country including India to obtain structural adjustment loan from the World Bank ?

(A) Privatisation

(B) Liberalisation

(D) All of the above

152. Devaluation of currency leads to —

(A) fall in domestic prices

(B) increase in domestic prices

(D) None of the above

157. The components of HDI is / are

(A) Life expectancy index

(B) Infant mortality rate

(D) All of the above

174. The most important source of capital formation in India has been –

(A) Household saving

(B) Public sector saving

(D) Corporate saving

178. In India, inflation measured by the –

(A) Wholesale Price Index Number

(B) Consumer Price Index for urban non-manual workers

(D) National Income Deflation

180. Factors responsible for current inflation are —

(A) circulation of black money

(B) government expenditure on subsidy

(D) All of the above

183. Economic growth in India will happen necessarily if there is –

(A) Population growth

(B) Capital formation

(D) All of the above

191. In India, inflation measured by the –

(A) National Income Deflation

(B) Whole sale Price Index Number

(D) None of the above

194. What is the Global rank of India in terms of its purchasing power parity ?

(A) 3rd

(B) 5th

(D) 17th

197. Which of the following governmental steps has proved relatively effective on controlling the double digit rate inflation in the Indian economy during recent years ?

(A) Containing budgetary deficits and unproductive expenditure

(B) Streamlined public distribution system

(D) Pursuing an export oriented strategy

199. India is regarded as a country with ‘Demographic Divide’. This is due to –

(A) its high population in the age group below 15 years

(B) its high population in the age group below 15 – 64 years

(D) its high total population

WBCS Main Question Paper – 2015

103. Which of the following is not true about Indian economy

(A) The contribution of the primary sector in the GDP is increasing regularly

(B) The share of its tertiary sector increased

(D) It is an agrarian economy directly shifting towards service economy

117. World Trade Organisation (WTO) advised less developed countries to

(A) Impose export subsidy

(B) Practice exchange control measures

(D) None of the above

130. Advantages of foreign capital are found in this way (find correct statement)

(A) It is often speculative and creates uncertainty in capital market

(B) It may bring unsuitable technology

(D) It results in economic drain

145. If withdrawal of workers from employment does not create output loss, this is

(A) Search unemployment

(B) Voluntary unemployment

(D) Frictional unemployment

157. The decade 1965-1975 witnessed, in India

(A) Very high growth of Industries

(B) High growth of Industries

(D) None applies

190. A closed economy is in which

(A) money supply is fully controlled

(B) deficit financing takes place

(D) neither export nor import takes place

192. Major burden of excise tax falls on

(A) Very wealthy persons

(B) Rich persons

(D) None of the above

WBCS Main Question Paper – 2014

55. Merit goods are those goods in which

(A) The social benefit is much greater than the sum of private benefits to individual consumers

(B) The private benefits is much greater than the social benefit

(D) None of the above

71. ‘Fiscal Drag‘ implies –

(A) A situation where inflation pushes income into higher tax bracket creep

(B) The situation of decrease in income taxes

(D) None of the above

81. National Income of India is measured by –

(A) C.S.O.

(B) Planning Commission

(D) R.B.I

83. D. A. (Dearness Allowance) is paid on the basis of –

(A) Standard of living

(B) Per capita Income

(D) National Income

95. Devaluation of currency by a country is meant to lead to –

(i) expansion of import trade

(ii) promotion of import substitution

(iii) expansion of export trade

(iv) All the above Options :

(A) (i) only

(B) (ii) and (iii)

(D) (iv)

96. Poverty in less developed countries largely due to

(A) Voluntary idleness

(B) Income inequality

(D) Lack of intelligence of the people