economic scene - One Line Questions

1. What is 'outsourcing'? — A company contracting out certain business processes to external suppliers
2. What is 'globalization' in an economic sense? — The increasing interdependence of world economies through trade, investment, and technology
3. What is the 'liquidity trap' in economics? — A situation where monetary policy becomes ineffective because interest rates are already near zero
4. What does 'subsidy' mean in an economic context? — Financial assistance given by the government to an individual or group
5. The 'economic survey' in India is typically presented: — Before the Union Budget
6. Which sector is considered the 'backbone' of the Indian economy, contributing significantly to its GDP? — Services
7. Which of the following is a key component of the 'secondary sector' of an economy? — Manufacturing
8. The 'multiplier effect' in economics suggests that an initial change in spending can lead to: — A larger change in national income
9. What is the term for a situation where the government spends more money than it collects in revenue? — Fiscal Deficit
10. Which economic theory emphasizes the role of government intervention in stabilizing the economy? — Keynesian Economics
11. Which of the following is a measure of national income? — Gross National Product (GNP)
12. Which economic policy aims to increase the total demand for goods and services? — Expansionary Monetary Policy
13. Which of the following is a primary objective of fiscal policy? — Controlling inflation and unemployment
14. What is the term for the difference between a country's exports and imports of goods and services? — Balance of Trade
15. The 'Goods and Services Tax (GST)' in India is an example of which type of tax? — Indirect Tax
16. Which of the following is a measure of poverty in India? — Poverty Line
17. Which of the following is a direct tax in India? — Corporate Income Tax
18. The 'repo rate' is a tool used by the Reserve Bank of India to influence which of the following? — Money supply and inflation
19. What is 'monetary policy' primarily concerned with? — The supply of money and credit
20. What does GDP stand for in economics? — Gross Domestic Product
21. What is the term for the value of goods and services produced per person in a country? — Per Capita Income
22. What is the term for the total value of all goods and services produced by a country's citizens and companies, regardless of location? — Gross National Product (GNP)
23. Which economic concept refers to the total value of all final goods and services produced within a country's borders in a specific time period? — Gross Domestic Product (GDP)
24. The term 'stagflation' refers to a situation characterized by: — Stagnant economic growth and high inflation
25. Which of the following is a characteristic of a 'developing economy'? — Low per capita income and significant agricultural dependence
26. The 'Gini coefficient' is a measure of: — Income inequality
27. Which of the following represents 'indirect taxes' in India? — GST and Excise Duty
28. What does 'liberalization' in economic policy refer to? — Reducing government regulations and restrictions on the economy
29. What does 'demonetization' refer to in an economic context? — The withdrawal of a currency unit from circulation
30. Which sector is characterized by the production of raw materials from natural resources? — Primary Sector
31. Which institution is primarily responsible for issuing currency in India? — Reserve Bank of India
32. Which economic concept describes a situation where demand for a product exceeds its supply? — Shortage
33. The 'service sector' in India includes industries like: — Banking, IT, and tourism
34. What is the 'fiscal deficit'? — The difference between government expenditure and its non-debt receipts
35. Inflation refers to a sustained increase in which of the following? — The general price level of goods and services
36. What is the 'cash reserve ratio' (CRR)? — The percentage of deposits that banks must keep as cash reserves with the RBI
37. What is the 'reverse repo rate'? — The rate at which commercial banks lend to the RBI
38. What is the 'repo rate'? — The rate at which the RBI lends to commercial banks against government securities
39. The 'unemployment rate' measures the percentage of which group that is actively seeking employment but unable to find work? — The labor force
40. What is the primary goal of 'financial inclusion'? — To provide access to financial services for all sections of society
41. What is the primary objective of the Reserve Bank of India's monetary policy? — To maintain price stability while keeping in mind the objective of growth
42. Which of the following is a primary goal of the 'Make in India' initiative? — To boost domestic manufacturing and attract foreign investment
43. What is the primary role of the International Monetary Fund (IMF)? — To promote global monetary cooperation and financial stability
44. What is the primary objective of the World Trade Organization (WTO)? — To ensure free and fair trade between nations
45. What is the main function of a stock exchange? — To facilitate the buying and selling of company shares
46. What is the primary function of the 'World Bank'? — To provide loans and grants for development projects
47. What is 'disguised unemployment'? — A situation where more people are employed than are actually needed
48. Which economic indicator measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services? — Consumer Price Index (CPI)
49. Which organization publishes the 'World Economic Outlook' report? — International Monetary Fund (IMF)
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