TGPSC MPSO / ASO · Paper I · Topic 5
TGPSC MPSO / ASO Indian Economy & Development questions with answers
10 questions from TGPSC ASO Paper I Mock 1 with answers. Try each one, then tap Show answer.
5.1.1National income, planning & reformsNotesPractise this chapter · Set 1 free
-
According to NCERT, as part of financial sector reforms the foreign investment limit in Indian banks was raised to around
Show answerHide answer
Answer B. 74 per cent
NCERT states the foreign investment limit in banks was raised to around 74 per cent.
Source: NCERT Class 11 Indian Economic Development ch.3 (p.58)
-
Consider the following statements about India between 1950-51 and 1990-91:
Statement I: The share of agriculture in GDP declined sharply.
Statement II: The share of the workforce in agriculture fell below 50 per cent.
Which of the statements given above is/are correct?
Show answerHide answer
Answer A. I only
Only Statement I is correct. Agriculture's share of GDP fell from 59% to about 35%, but its share of the workforce was still about two-thirds in 1990-91.
Source: NCERT Class 11 IED ch.2 (p.43-47)
-
Assertion (A): Old-age pensions paid by the government are added while computing Personal Income from National Income.
Reason (R): Such pensions are received by households, but they are not part of National Income because they are not payments for factor services.
Show answerHide answer
Answer A. Both A and R are true, and R is the correct explanation of A
Pensions are transfer payments: households receive them, but they are excluded from National Income, so they must be added to get Personal Income. R gives NCERT's own reason for A.
Source: NCERT Class 12 Introductory Macroeconomics ch.2 (p.36)
5.2.1Money, banking & inflationNotesPractise this chapter · Set 1 free
-
Consider the following statements about consumer price indices in India:
I. CPI for Industrial Workers is compiled by the Labour Bureau.
II. The CPI-IW series with base 2016 replaced the series with base 2001.
III. CPI (Rural), CPI (Urban) and CPI (Combined) are compiled by the Labour Bureau.
Which of the statements given above is/are correct?
Show answerHide answer
Answer B. I and II only
I and II are correct. CPI (Rural, Urban and Combined) are compiled by the NSO, MoSPI.
-
Consider the following statements about payment systems in India:
I. NPCI was set up as an initiative of the RBI and the Indian Banks' Association under the Payment and Settlement Systems Act, 2007.
II. UPI was developed by NPCI.
III. RTGS is operated by NPCI.
Which of the statements given above is/are NOT correct?
Show answerHide answer
Answer C. III only
Only III is not correct. RTGS and NEFT are operated by the RBI, while UPI, IMPS and NACH are NPCI systems.
5.3.1Public finance & budgetNotesPractise this chapter · Set 1 free
-
Match List I with List II:
List I
a. Base Erosion and Profit Shifting
b. Place of Effective Management
c. General Anti-Avoidance Rules
d. Double Taxation Avoidance Agreement
List II
I. A treaty that prevents the same income from being taxed in two countries
II. A test of where key management and commercial decisions of a company are made
III. Strategies of multinationals to move profits to low-tax jurisdictions
IV. Provisions to deny tax benefits from arrangements made mainly to avoid tax
Show answerHide answer
Answer C. a-III, b-II, c-IV, d-I
BEPS is profit shifting to low-tax places, PoEM tests where key decisions are made, GAAR denies benefits of tax-avoidance arrangements, and a DTAA prevents double taxation.
Source: Indian Economy (reference) ch.5 p.59
-
Consider the following statements:
I. Subject to the assignment of certain taxes to the States, all revenues received by the Union Government form part of the Consolidated Fund of India.
II. The Contingency Fund of India is placed at the disposal of the President to meet unforeseen expenditure.
III. Money in the Public Account of India, such as provident fund deposits, can be paid out only after appropriation by Parliament.
Which of the statements given above are correct?
Show answerHide answer
Answer A. I and II only
Statements I and II are correct. Payments from the Public Account are made by executive action without parliamentary appropriation.
Source: Constitution Arts. 266-267; Polity reference (Parliament; Federal Dynamics) (p.98)
5.4.1External sector & tradeNotesPractise this chapter · Set 1 free
-
Consider the following statements regarding the sixth edition of the Balance of Payments and International Investment Position Manual (BPM6):
I. Under it, the balance of payments is divided into the current account, the capital account and the financial account.
II. Under it, transactions in financial assets such as bonds and equity shares are placed in the financial account.
III. It was published by the World Bank.
Which of the statements given above is/are INCORRECT?
Show answerHide answer
Answer A. III only
Statement III is incorrect: BPM6 was published by the International Monetary Fund, not the World Bank. Statements I and II are correct.
Source: NCERT Class 12 Introductory Macroeconomics ch.6 (Open Economy)
-
Assertion (A): The SDR is a currency used by member countries to pay for goods in international markets.
Reason (R): The SDR is an international reserve asset created by the IMF to supplement member countries' official reserves.
Choose the correct answer using the codes below.
Show answerHide answer
Answer D. A is false, but R is true
A is false and R is true. The SDR is not a currency for buying goods; it is a reserve asset (a book-keeping entry) that can be exchanged among official holders for usable currencies.
5.1.5Agriculture, industry & developmentNotesPractise this chapter · Set 1 free
-
Consider the following:
Assertion (A): The calorie norm for the poverty line is higher for rural areas than for urban areas in India.
Reason (R): People in rural areas generally do more physical work.
Choose the correct answer.
Show answerHide answer
Answer A. Both A and R are true, and R is the correct explanation of A
Both are true and R explains A: rural norms (2,400 kcal) are higher than urban (2,100 kcal) because rural work is more physical.
Source: AP SCERT Class 9 Economics ch.3 Poverty as a Challenge (p.74)
Practise Indian Economy & Development chapter by chapter. In the app every chapter is split into numbered sets of 20 questions, easier first, with your score on each set. Set 1 of every chapter is free.
All TGPSC MPSO / ASO topics · TGPSC MPSO / ASO syllabus · Start free
Medha AI is an independent preparation service. It is not affiliated with, endorsed by or connected to APPSC, TGPSC (formerly TSPSC), MPSC, UPSC or any other commission or government body.