JKSSB Economics MCQs

1. Responsible for accounting in India?

A

Controller General of Accounts

B

NITI Aayog

C

RBI

D

SEBI

Economy ? Accounts JKP Photographer 2024 REPORT ERROR
Correct Answer: A
Explanation:

CGA responsible for accounts.

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2. What does the Lorenz curve represent?

A

Taxable income elasticity

B

Relationship between the price of a certain commodity and its demand

C

Income distribution

D

Rate of employment

Economics - Lorenz Curve Account Ast. 2024 REPORT ERROR
Correct Answer: C
Explanation:

Lorenz curve shows the distribution of income or wealth within an economy.

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3. Which is not one of the four main factors of production?

A

Land

B

Labour

C

Manufacturing

D

Capital

Economics - Factors of Production Account Ast. 2024 REPORT ERROR
Correct Answer: C
Explanation:

The four main factors are land, labour, capital, and entrepreneurship. Manufacturing is not a factor.

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4. Which five year plan of India was based on Mahalanobis model?

A

First

B

Second

C

Third

D

Fourth

Indian Economy - Five Year Plans Account Ast. 2024 REPORT ERROR
Correct Answer: B
Explanation:

The Second Five Year Plan (1956?61) was based on the Mahalanobis model emphasizing heavy industries.

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5. ?Agreement on Technical Barriers to Trade (TBT)? is related with which institution?

A

World Bank

B

NITI Aayog

C

World Trade Organization

D

World Economic Forum

International Trade - WTO Account Ast. 2024 REPORT ERROR
Correct Answer: C
Explanation:

The TBT Agreement is administered by the WTO to ensure standards do not create unnecessary trade barriers.

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6. What is Gross Domestic Product?

A

The total value of goods and services manufactured in the country.

B

The total value of all the transactions in the country.

C

The reduction in the total value of goods and services produced in the country.

D

The monetary value of all finished goods and services made within a country during a specific period.

Economics - GDP Account Ast. 2024 REPORT ERROR
Correct Answer: D
Explanation:

GDP measures the monetary value of all finished goods and services produced within a country`s borders in a given period.

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7. Which of the following is the relation that the law of demand defines?

A

Income and price of a commodity

B

Price and quantity of a commodity

C

Income and quantity demanded

D

Quantity demanded and quantity supplied

Economics - Demand Account Ast. 2024 REPORT ERROR
Correct Answer: B
Explanation:

Law of demand shows inverse relation between price and quantity demanded.

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8. What is the meaning of a `Mixed Economy`?

A

Traditional and modern industries

B

Both the public and private sectors are involved

C

Involvement of both foreign and domestic investors

D

Subsistence and commercial farming

Economics - Mixed Economy Account Ast. 2024 REPORT ERROR
Correct Answer: B
Explanation:

A mixed economy is one where both public and private sectors play significant roles.

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9. Which of the below statement is correct?

A

Microeconomics is primarily concerned with the overall economy.

B

Individual markets are the focus of macroeconomics.

C

Governments do not have any control over market prices.

D

When economists study a market`s price, their main goal is to figure out why the price is what it is and how it might change.

Economics - Micro & Macro Account Ast. 2024 REPORT ERROR
Correct Answer: D
Explanation:

Microeconomics studies individual markets; macroeconomics studies overall economy. Statement D correctly describes the focus of economists.

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10. An economist estimated that a commodity Y had a price index of 100, calculated for 1993 with base year of 1990, and a quantity index of 0.5 when calculated for 1990 with base year of 1993. What is the Fisher Ideal Value Index for 1993 with the base year taken to be 1990?

A

10.5

B

20

C

15

D

12

Economics - Index Numbers Account Ast. 2024 REPORT ERROR
Correct Answer: C
Explanation:

Fisher?s Ideal Index = ?(Price index ? Quantity index) = ?(100 ? 0.5 ? 100) = 15.

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11. Match the different types of taxes in India with their corresponding impositions: 

A

i-4, ii-1, iii-2, iv-3

B

i-3, ii-1, iii-4, iv-2

C

i-4, ii-2, iii-1, iv-3

D

i-1, ii-3, iii-2, iv-4

Economy - Taxation Panchayat Secretary 2025 REPORT ERROR
Correct Answer: C
Explanation:

Income tax is on income (4), CGST is levied by center on intrastate (2), Customs duty on imports/exports (1), IGST on inter-state supply (3).

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12. Which sector is the primary contributor to Jammu and Kashmir`s economy?

A

Agriculture

B

Manufacturing

C

Services

D

Mining

Economy of J&K Panchayat Secretary 2025 REPORT ERROR
Correct Answer: A
Explanation:

Agriculture is the backbone of J&K’s economy, employing a major portion of the population.

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13. What does “consumer sovereignty” in a free market economy refer to?

A

The government`s ability to control consumer preferences.

B

Producer`s decision about production of goods and services based on their preferences.

C

Consumer preferences guide the production of goods and services.

D

Consumers and producers equally share the decision-making process.

Economics Panchayat Secretary 2025 REPORT ERROR
Correct Answer: C
Explanation:

Ans: (C) Consumer preferences guide the production of goods and services.

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14.  Government strategy regarding exporters and importers is called

A

Commercial Policy

B

Monetary Policy

C

Fiscal Policy

D

Finance Policy

Economics JKP Constable 2024 REPORT ERROR
Correct Answer: A
Explanation:

The correct answer is: commercial policy.

Explanation:

  • Commercial Policy refers to the government`s strategy and regulations related to exports and imports, including tariffs, trade restrictions, and incentives.

  • It governs how a country manages its trade with other nations.

The other options:

  • Monetary Policy: Deals with money supply, interest rates, and banking.

  • Fiscal Policy: Relates to government revenue (taxation) and expenditure.

  • Finance Policy: Broad term often related to government financial management, but not specifically trade.

So, for exporters and importers, the commercial policy is the relevant government strategy.

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15. Which of the following taxes are abolished by the Goods and Services Tax?

A

Property Tax

B

Corporation Tax

C

VAT

D

All of the above

Tax Stock Assistant 2024 REPORT ERROR
Correct Answer: C
Explanation:

The Goods and Services Tax (GST) has replaced several indirect taxes in India. Among the options listed, VAT (Value Added Tax) is one of the taxes that has been abolished by GST. Therefore, the correct answer is VAT.

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16. Which of the following is a form of indirect tax?

A

Income Tax

B

Wealth Tax

C

Corporation Tax

D

Sales Tax

Tax Stock Assistant 2024 REPORT ERROR
Correct Answer: D
Explanation:

Among the options given, Sales Tax is a form of indirect tax.

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17. Due date of a bill exchange drawn on 30th January 2011 for one month will be _____

A

5th March 2011

B

3rd March 2011

C

29th February 2011

D

4th March 2011

Economics Finance Inspector 2024 REPORT ERROR
Correct Answer: B
Explanation:

To calculate the due date of a bill of exchange drawn on January 30, 2011, for one month, we follow these steps:

1. **Calculate one month from January 30, 2011.** 
   - One month from January 30 is February 28, 2011, because February only has 28 days in 2011 (not a leap year).

2. **Add the grace period.** 
   - In many financial transactions, a grace period of 3 days is typically added to the due date.

So, adding the 3-day grace period to February 28, 2011, we get:

February 28 + 3 days = March 3, 2011.

Therefore, the due date of the bill of exchange drawn on January 30, 2011, for one month is **March 3, 2011**.

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18. In periods of inflation, the impact of change in the method of valuation of inventories from LIFO method a FIFO method will cause:

A

Increase in profit and decrease in the cost of goods sold

B

Decrease in profit and increase in the cost of goods sold

C

Increase in profit and decrease in the value of closing stock

D

Decrease in profit and decrease in the value of closing stock

Economics Finance Inspector 2024 REPORT ERROR
Correct Answer: A
Explanation:

n periods of inflation, changing the method of inventory valuation from Last In, First Out (LIFO) to First In, First Out (FIFO) will typically cause:

Increase in profit and decrease in cost of goods sold.

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19. What is the amount of capital expenditure (capex) outlay announced by the India government in the union budget 2024-25?

A

Rs. 10.10 Lakh Crore

B

Rs. 11.11 lakh crore

C

Rs. 12.12 lakh crore

D

Rs. 13.45 lakh crore

Economics Finance Inspector 2024 REPORT ERROR
Correct Answer: B
Explanation:

In the Union Budget 2024-25, the Indian government announced a capital expenditure (capex) outlay of ₹11.11 lakh crore. This represents an 11.1% increase from the previous year`s budget estimate of ₹10 lakh crore​

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20. In the situation of bankruptcy, a stock which is recorded above common stock and below debt account is

A

Preferred Stock

B

Debt Liabilities

C

Common Liabilities

D

Hybid Stock

Economics Finance Inspector 2024 REPORT ERROR
Correct Answer: A
Explanation:

In the situation of bankruptcy, a stock which is recorded above common stock and below debt is **preferred stock**. Preferred stockholders have a higher claim on assets and earnings than common stockholders, but they are subordinate to debt holders.

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21. Which of the following is not an error of principle?

A

Purchase of furniture debited to purchases account

B

Repairs on the overhauling of second had machinery purchased debited to repairs account

C

Cash received from Meena posted to Sharin

D

Sale of old car credited to sales account

Economics Finance Inspector 2024 REPORT ERROR
Correct Answer: C
Explanation:

The error **Cash received from Meena posted to Sharin** is not an error of principle. This is a clerical or posting error where the wrong account was credited.

Errors of principle involve incorrect classification of expenditure or income, such as:

- **Purchase of furniture debited to purchases account**
- **Repairs on the overhauling of second-hand machinery purchased debited to repairs account**
- **Sale of old car credited to sales account**

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22. The temporary tax levied to obtain additional revenue is called

A

Cess

B

Rate

C

Fee

D

Surcharge

Economics Finance Inspector 2024 REPORT ERROR
Correct Answer: D
Explanation:

The temporary tax levied to obtain additional revenue is called a **surcharge**. Surcharges are additional taxes imposed temporarily on top of regular taxes to raise extra revenue for specific purposes or to address short-term financial needs of the government.

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23.

Balance of trade is

A

Difference between export and import of goods

B

Sum total of export and import of goods

C

Difference between export and import of services

D

Sum total of export and import of services

Economics Finance Inspector 2024 REPORT ERROR
Correct Answer: A
Explanation:

The balance of trade is the:

**Difference between export and import of goods**

It specifically refers to the difference in value between a country`s exports (goods sold to other countries) and its imports (goods bought from other countries) over a specific period, usually a year.

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24. Which of the following is the definition of a budget deficit?

A

Excess of the total expenditure over the total receipts minus interest payments and borrowings

B

Excess of the total expenditure over the total receipts minus borrowings

C

Excess of the revenue expenditure over the revenue receipts

D

Excess of the total expenditure over total receipts

Economics Finance Inspector 2024 REPORT ERROR
Correct Answer: B
Explanation:

The correct definition of a budget deficit is:

**Excess of the total expenditure over the total receipts minus borrowings**

This definition highlights that a budget deficit occurs when a government`s total expenditures exceed its total revenues (excluding borrowings) during a specific period, typically a fiscal year.

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25. What is the maximum insurance provided for bank deposits?

A

1 Lakh

B

2.5 Lakh

C

5 Lakh

D

7 Lakh

Banking JKPSI 2022 CBT VERIFIED
Correct Answer: C
Explanation:

Each depositor in a bank is insured upto a maximum of ₹ 5,00,000 (Rupees Five Lakhs) for both principal and interest amount held by him in the same right and same capacity as on the date of liquidation/cancellation of bank`s licence or the date on which the scheme of amalgamation/merger/reconstruction comes into force.

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26. ____ is the first bank in India to launch a mobile application for opening a current account.

A

ICICI Bank

B

Bank of Baroda

C

IndusInd Bank

D

HDFC Bank

Banking JKPSI 2022 CBT REPORT ERROR
Correct Answer: C
Explanation:

IndusInd Bank has recently launched a mobile application-based facility for opening a current account, thereby becoming the first bank in the country to do so.

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27. Real Time Gross Settlement is managed by ____

A

Government of India

B

Asian Development Bank

C

World Bank

D

Reserve Bank of India

Economics JKPSI 2022 CBT REPORT ERROR
Correct Answer: D
Explanation:

The acronym RTGS stands for Real-time gross settlement. The Reserve Bank of India (India`s Central Bank) maintains this payment network. Real-time gross settlement is a funds transfer mechanism where transfer of money takes place from one bank to another on a real time and on gross basis.

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28. ____ has been designated as the Operationalization Agency of the Joint Investment Fund between India and Oman

A

Reserve Bank of India

B

HDFC

C

State Bank of India

D

ICICI

Economics JKPSI 2022 CBT REPORT ERROR
Correct Answer: C
Explanation:

State Bank of India

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29. Which Indian economist has also been the Chief Economist of Asian Development Bank?

A

Arvind Panagariya

B

Amartya Sen

C

P chidambaram

D

Manmohan Singh

Economics JKPSI 2022 CBT REPORT ERROR
Correct Answer: A
Explanation:

Arvind Panagariya

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30. The upper or maximum ceiling of RTGS transaction in India is ____

A

Rs. 10 Lakhs

B

Rs. 15 Lakhs

C

Rs. 25 Lakhs

D

It has no upper limit

Economics JKPSI 2022 CBT REPORT ERROR
Correct Answer: D
Explanation:

The RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is ₹ 2,00,000/- with no upper or maximum ceiling.

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31. Which category of banks came under the regulation of Reserve Bank of India after the passing of the Banking Regulation (Amendments) Bill in 2020?

A

Cooperative Banks

B

ICICI Ltd

C

Land Developments Banks

D

Nidhi Companies

Economics JKPSI 2022 CBT REPORT ERROR
Correct Answer: A
Explanation:

The Banking Regulation (Amendment) Act, 2020 (39 of 2020) has been notified for the State Co-operative Banks (StCBs) and District Central Co-operative Banks (DCCBs) with effect from, April 1, 2021 vide Notification dated December 23, 2020 issued by Government of India.

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32. In June 2022, India`s services sector growth hit an eleven year high in February as per PMI. What does PMI stand for?

A

Purchasing Manager`s Index

B

Public Money Index

C

Purchasing Market Interest

D

Personal Market Investment

Economics JKPSI 2022 CBT REPORT ERROR
Correct Answer: A
Explanation:

Services Sector PMI Hits 11-Year High In June Amid Mounting Cost Pressures. For the eleventh straight month, the services sector witnessed an expansion in output. In Purchasing Manager`s Index (PMI) parlance, a print above 50 means expansion while a score below 50 denotes contraction.

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33. To improve the connectivity of key economic areas in which state, did Asian Development Bank (ADB) recently approve a USD 350 million loan agreement?

A

Maharashtra

B

Uttar Pradesh

C

Punjab

D

Madhya Pradesh

Economics JKPSI 2022 CBT REPORT ERROR
Correct Answer: A
Explanation:

The Asian Development Bank (ADB) and the Government of India on Tuesday (3 January) signed a $350 million loan to improve the connectivity of key economic areas in Maharashtra.

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34. By what kind of curve is the degree of urbanization represented?

A

Exponential

B

Logarithmic

C

Logistic

D

Normal

Economics JKPSI 2022 CBT REPORT ERROR
Correct Answer: C
Explanation:

Logistic

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35. According to the Status Paper on Government Debt for 20-21, what is the amount of Central Government Debt as a percent of GDP?

A

30.5 %

B

5.2 %

C

63.9 %

D

72.3 %

Economics JKPSI 2022 CBT REPORT ERROR
Correct Answer: B
Explanation:

59.2 %

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