Revision Series | Economy | Miscellaneous | 16

October 22, 2023

Which of the following statement(s) is/are incorrect regarding unemployment?
1. Structural Unemployment is a category of unemployment due to mismatch between the jobs available in the market and the skills needed for them.
2. Cyclical Unemployment is a result of the business cycle, where unemployment rises during recessions and declines with economic growth
Select the answer using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) None of the above

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Answer: (d)

Structural Unemployment: it is a category of unemployment arising from the mismatch between the jobs available in the market and the skills of the available workers in the market

Hence statement 1 is correct.

Cyclical Unemployment: It is the result of the business cycle, where unemployment rises during recessions and declines with economic growth

Hence statement 2 is correct.

Which among the following is/are correct regarding deflation?
1. It is a persistent fall in the value of money.
2. It is negative rate of inflation over a period of time.
Select the answer using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) None of the above

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Answer: (b)

Deflation is defined as a fall in the general price level of goods and services.
It is a negative rate of inflation.
It means the value of money increases rather than decreases.

Hence statement 1 is incorrect.

Hence statement 2 is correct.

Which of the following is/are responsible for the decrease of per capita holding of cultivated land in India?
1. Practice of dividing land equally among the heirs.
2. Rapid rate of increase of population
3. Use of traditional techniques of ploughing.
Select the answer using the codes given below:

(A) 1 and 2 only
(B) 2 and 3 only
(C) 1, 2 and 3
(D) 1 and 3 only

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Answer: (a)

Rapid rate of increase of population and practice of dividing land equally among the heirs are responsible for the decrease of per capita holding of cultivated land in India.

Hence statement 1 and 2 are correct.

Hence statement 3 is incorrect.

Which of the following statement(s) is/are not correct regarding Statutory Liquidity Ratio (SLR)?
1. SLR is maintained by the banks with themselves.
2. To meet SLR requirements, commercial banks are permitted to use only cash.
Select the answer using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

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Answer: (b)

Statutory Liquidity Ratio or SLR is the minimum percentage of deposits that a commercial bank has to maintainin the form of liquid cash, gold or other securities with themselves.

Hence statement 1 is correct.

Hence statement 2 is incorrect.

Which of the following statement(s) is/are correct?
1. Deficit financing does not lead to inflation if adopted in small doses.
2. Deficit financing is used tool for financing budgetary deficits.
Select the answer using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) None of the above

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Answer: (c)

Deficit financing means generating funds to finance the deficit which results from excess of expenditure over revenue.
The gap being covered by borrowing from the public by the sale of bonds or by printing new money.

Hence statement 1 and 2 are correct.

Which of the following statement(s) is/are correct regarding base year for calculation of GDP?
1. It must not experience any abnormal incidents such as droughts, floods, earthquakes etc.
2. It is a benchmark with reference to which the national account figures such as gross domestic product are determined.
Select the answer using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) None of the above

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Answer: (c)

The base year is a benchmark with reference to which the national account figures such as gross domestic product (GDP), gross domestic saving, gross capital formation are calculated.
Gross domestic product is the value of all goods and services produced in a country. The base year must be a representative year and must not experience any abnormal incidents such as droughts, floods, earthquakes etc.

Hence statement 1 and 2 are correct.

Which of the following statement(s) is/are correct regarding Sustainable Development Goals ?
1. They were adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet.
2. In 2013, the UN General Assembly set up a 30-member Open Working Group to develop a proposal on the SDGs.
Select the answer using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) None of the above

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Answer: (c)

In 2013, the General Assembly set up a 30-member Open Working Group to develop a proposal on the SDGs.
In January 2015, the General Assembly began the negotiation process on the post-2015 development agenda. The process culminated in the subsequent adoption of the 2030 Agenda for Sustainable Development, with 17 SDGs at its core, at the UN Sustainable Development Summit in September 2015.

Hence statement 1 and 2 are correct.

Which of the following statement(s) is/are correct regarding Depression in an economy?
1. It has an extremely low aggregate demand in the economy causes activities to decelerate.
2. The employment avenues start shrinking forcing unemployment rate to grow fast.
Select the answer using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) None of the above

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Answer: (c)

The major traits of depression could be as given below:

An extremely low aggregate demand in the economy causes activities to decelerate;
The inflation being comparatively lower;
The employment avenues start shrinking forcing unemployment rate to grow fast;
To keep the business going, production houses go for forced labour-cuts or retrenchment
(To cut down production cost and be competitive in the market,) etc.

Hence statement 1 and 2 are correct.

Which of the following statement(s) is/are correct?
1. Infant Mortality Rate indicates the number of children that die before the age of one year as a proportion of 1000 live children born in that particular year.
2. Maternal Mortality Rate indicates the number of maternal deaths during a given time period per 100,000 live births during the same time period.
Select the answer using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) None of the above

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Answer: (c)

Which of the following statement(s) is/are correct regarding Securities and Exchange Board of India?
1. It is non-statutory and non-constitutional body.
2. SEBI Chairman has the authority to order "search and seizure operations".
Select the answer using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) None of the above

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Answer: (b)