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ECONOMIC SURVEY 2014-15

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1. Which of the following reasons are (a) Power (b) Coal
expected to maintain cost of energy imports (c) Steel (d) Transport
down?
6. Which of the following is/are the likely
i. Decline in oil prices. impacts of SLR reduction?
ii. Increase in shale gas production by
i. Increase in cost of Govt. borrowing.
USA.
ii. Reduction in cost of infrastructure
iii. Rise of Russia as an alternate energy
financing.
provider and challenger to OPEC.
iii. Recapitalization of PSUs.
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(a) i Only
(b) i and ii (a) i Only
(c) ii and iii (b) i and iii Only
(d) All of the above (c) ii and iii Only
2. Which of the following is not a likely risk (d) All of the above
from private sector firms failure? 7. Which of the following was not a valid

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(a) Increase in public sector bank NPAs. reason to award special category status to
a state?
OR
(b) Stalling of PPP projects.
(c) Decline in investors confidence and (a) Difficult terrain.
fall in capital markets. (b) Presence of International borders.
(d) Increase in inflation. (c) High share of tribal population.
3. Which of the following is/are primary (d) Large income gap.
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reason of non-implementation of Model

8. Reduction in CSS (Centrally sponsored
APMC act recommendations?
schemes) is expected to bring progressivity
i. Presence of a large business lobby with to the Expenditure side to the government.
vested interests. Which of the following is a valid
ii. Lack of funds to upgrade market explanation for such effect?
infrastructure.
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i. CSS is poorly targeted and often the

Codes benefits are received by relatively well-
(a) i Only (b) ii Only off.
(c) Both (d) None ii. There are huge leakages in the CSS,
which also benefit the non-needy.
4. Domestic convergence of industrial
productivity lacks in India and is one of the Codes
major reasons for unbalanced regional
(a) i Only
growth. Which of the following is not a
reason for such lack of convergence? (b) ii Only
(c) Both
(a) Distortions in labour market.
(d) None
(b) Development on the lines of
comparative advantage favors already 9. Which of the following is an example of
industrialized states. Pigouvian tax?
(c) Distortions in capital markets. (a) Tax on Diesel.
(d) Lack of transparency and hurdles in (b) Education Cess.
land acquisition.
(c) Health Cess.
5. Which of the following sectors is not a likely
(d) Compulsory contribution for disaster
beneficiary of the backward linkages of
relief.
growth in Railway infrastructure?
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10. According to Economic Survey, which of 14. Which of the following statements best
the following have been identified as risk explain the agricultural credit puzzle in
factors on external sector in the coming India?
fiscal year?
i. Despite high growth in financial
i. Politics over Greece membership in EU. sector; there is decline in agricultural
ii. Increasing protectionism and rise of credit.
trade-blocs. ii. Despite high credit creation; there is
iii. Strengthen of US Economy and exit no decrease in farm suicides.
of FPI from emerging markets. iii. Despite high credit creation in
Codes: agriculture; there is limited capital
(a) i and ii Only creation.
(b) i and iii Only iv. Most of agricultural credit is disbursed
from urban and metropolitan
(c) ii and iii Only
branches.

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(d) All of the above
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11. Which of the following is not an example
of market distortionary force?
(a)
(b)
High MSP on rice and wheat.
Potassium based fertilizers subsidy.
OR (a) i, ii and iii
(b) ii and iii
(c) iii and iv
(c) Diesel subsidy (before Oct 2014). (d) All of the above
15. Which of the following measures is most
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(d) LPG subsidy.
12. Since the Balance of Payment crisis in Aug, appropriate for long term inflation control?
2013, Gold imports have declined steadily. (a) Increase in production capacity.
Which of the following are the valid reasons
(b) Elimination of Government deficit.
for such a decline?
(c) Active Inflation targeting by RBI.
i. Elimination of quantitative restric-
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(d) Elimination of non-merit subsidies.

tions.
ii. Reduction in its value as a asset after 16. Which of the following are among the
a steep decline in its price. benefits provided by Direct Cash Transfers
over the product subsidy?
iii. Curbs on gold imports.
Codes i. Non-distortionary
ii. Lesser leakages
(a) i Only
iii. Last mile outreach
(b) i and ii Only
(c) ii and iii Only Codes
(d) i and iii Only (a) i and ii
13. According to Economic Survey 2014-15, a (b) ii and iii
large number of infrastructure projects are (c) i and iii
stuck with private sector. Which of these is
(d) All of the above
not among the causes for such delays?
17. Which of the following is/are not used as a
(a) Weak balance sheets. parameter for horizontal devolution by 14th
(b) Poor market conditions. Finance Commission?
(c) Deterioration in macro-economic
(a) Population (b) Forest Cover
environment.
(c) Fiscal Discipline (d) Income Gap
(d) Regulatory clearances.
ECONOMIC SURVEY [3]
18. Which of the following factors affect the (b) A regressive subsidy is one whose
overall welfare impact of the Subsidy benefits increase with increasing level
allocated? of consumption
(c) A regressive subsidy is one whose
i. Demand elasticity of the product
benefits increase with increasing levels
among targeted population.
of income.
ii. Income elasticity of the product
(d) None of the above.
among non-targeted population.
23. An increase in Investment in Indian
Codes:
Railways increases investment in private
(a) i Only sector too. Which of the following are
(b) ii Only among the reasons that lead to such
increase?
(c) Both
(d) None i. Spillover effects to other sectors.
19. Which of the following is not a spill-over ii. Improvement in service quality.
effect of improvement in railway freight iii. Backward linkages of railways.

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transport? Codes
(a) Reduction in environmental pollution. (a) i and ii
OR
(b) Reduction in highway congestion. (b) i and iii
(c) Last mile delivery. (c) ii and iii
(d) Reduction in transportation costs. (d) All of the above
20. Which of the following reason have been 24. Most of the states in India are experiencing
responsible for a rise in Debt-GDP ratio pre-mature de-industrialization. Which of
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since 2007? the following features is/are a symptom of

pre-mature de-industrialization?
i. Global financial crisis.
ii. Excessive spending on social sector. i. Decline in occupational share of
iii. Increase in spending on infrastructure. Industry.
ii. Reaching the peak production at least
Code:
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5 years ago.
(a) i only iii. Decline in share of organized or
(b) i and ii only registered industries.
(c) i, ii and iii iv. Share of manufacturing peaking at less
(d) i and iii only than 20 per cent share of GDP.
21. Which of the following is an example of Codes
virtual currency? (a) i, ii and iii
(a) Bitcoins (b) ii, iii, and iv
(b) Credit Cards (c) iii and iv
(c) Mobile money (d) All of the above
(d) Online Wallets (e.g., Paytm) 25. Which of the following factor is responsible
for achievement of prosperity under Lewis
22. Most subsidies in India are regressive in
model of structural transformation?
nature. Which of the following statements
is appropriate definition of regressive (a) Labor productivity
subsidy? (b) Industrial Growth
(a) A regressive subsidy is one which is (c) Services Growth
in favor of rich instead of poor. (d) Employment generation
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26. Which of the following options is/are
appropriate reason(s), because of which
Indian Government is not opting for big
bang reforms like 1991?
i. Currently Indian economy is not
facing any economic crisis.
ii. Big-bang economic reforms would
require constitutional changes in some
cases.
iii. There is no major demand for big-
bang reforms from the private sector.
Codes
(a) i and ii
(c) It is not enough to counter dumping
of untaxed or subsidized goods.
(d) It wouldnt be useful once GST is
implemented.
30. The Indian banking sector suffers from
double repression; one side of such
repression is called liability side repression.
Which of the following statements are true
regarding liability side repression?
i. Liability side repression means that
banks balance-sheet suffer from poor
quality and risky loans due to PSL
(Priority Sector Lending) targets.
ii. Liability side repression means that

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(b) i and iii banks are losing their deposits to
(c) ii and iii physical assets due to poor returns.

27.
(d) iii only
Policy Paralysis is credited as one of the
most depressing feature of economic
OR iii. Liability side repression is also

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increased by high SLR requirements.

performance of India in recent past. Which a. i and ii

of the following bottleneck was recognized b. i and iii
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as the most stifling as per the economic

c. ii and iii
survey?
d. All of the above
(a) Environmental clearance 31. AAI has inaugrated 4 new airports in year
(b) Lack of Funds 2014-15. Which of the following are among
(c) Bureaucratic indifference the newly built airports?
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(d) Financial crisis 2008-09 i. Bhatinda

28. Which of the following factors is/are ii. Bikaner
among the variables that increase the Asset iii. Jodhpur
side repression on financial sector?
iv. Cuddapah
i. High SLR Codes:
ii. CRAR
(a) i, ii and iii
iii. PLR
(b) i, iii and iv
Codes
(c) i, ii and iv
(a) i Only (d) All of the above
(b) i and ii 32. The Govt. of India has launched a new TV
(c) i and iii Channel, Kissan TV. The funding towards
(d) All of the above this channel would be considered as part
of which of the following subsidies of WTO?
29. Countervailing duty doesnt suffers from
which of the following shortcomings in its (a) Green Box Subsidy
present implementation form in India? (b) Blue Box Subsidy
(a) It is market distorting. (c) Amber Box Subsidy
(b) It is against WTO norms. (d) None of the above

ECONOMIC SURVEY [5]

33. Which of the following statement(s) is/are (d) A moderate river inter-linking
true about G-33? program, to connect some water
deficient region with water surplus
i. A coalition of 33 developing countries
region.
in WTO.
36. The change in base year from 2004-2005
ii. Its major contention is protection of
to 2011-2012 in national income statistics
the right of a country to provide PDS
and maintain public stocks. has increased the growth projections and
current growth rates. Which of the
iii. Its suggestions were accepted in Bali
following factors explain such increase
ministerial meet.
correctly?
Codes:
i. Increase in ratio and share of faster
(a) i and ii Only growing sectors.
(b) i and iii Only ii. Better and more relevant calculation
(c) ii and iii Only model.
(d) All of the above iii. Correct indexing and inclusion of new

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34. Government of India has introduced a economic activities.
Special Focus Market Scheme from 2012. Codes:
OR
Which of the following statements correctly
(a) i Only
explain the difference between Special FMS
and FMS scheme? (b) i and ii
(c) i and iii
i. Special FMS provides Duty Credit
(d) ii and iii
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Scrip equivalent to 4% of FOB value

of exports, whereas the figure for FMS 37. Which of the following is correct regarding
is 3%. Effective Revenue Deficit (ERD)?
ii. Special FMS is a temporary scheme (a) ERD = RD CFC
and eventually country moves to FMS
(b) ERD = RD grants for creation of
category.
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capital assets
iii. The cost involved in providing duty
(c) ERD = RD spending on physical
credit strip is covered by Counter
infrastructure
vailing duty.
(d) ERD = RD + external loans for non-
Codes:
plan expenditure
(a) i Only 38. Indias External Debt now stands at about
(b) i and ii 455 Billion USD. Arrange the following
(c) i and iii currencies in decreasing order of their share
(d) All of the above in the Indias external debt.
35. Government has started a new program i. US Dollar
called for Neeranchal from 2014 onwards. ii. Euro
Which of the following sector does the
iii. SDR
program cater?
iv. INR
(a) Watershed development.
Codes:
(b) Drinking water in urban slums.
(a) i > iii > ii > iv
(c) Public provision of drinking water in
market areas and along the highways. (b) i > ii > iii >iv

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 (c) i > iv > iii > ii factors was not responsible for such a
(d) i > iv > ii > iii continuous decline?
39. Which of the following taxes is/are example (a) High interest rates.
of destination based tax? (b) Lack of domestic demand.
i. Sales tax (c) Increase in public sector investment
ii. Excise duty and crowing out.
(d) Lack of global demand.
iii. GST
43.Quantitative easing by US FED (Federal
Codes:
Reserve) has disturbing effects on Indian
(a) i and iii economy at times. Which of the following
(b) ii and iii are most direct and immediate among
them?
(c) iii Only
(d) ii Only i. Creation of excess liquidity in US
domestic market.

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40. The newly launched Kissan TV comes under
ii. Huge FII inflows to emerging markets.
which of the following support programs
to agricultural?
(a) Lab to Farm support.
(b) Research and Development support.
OR iii. Fall in exchange rate of USD.
Codes:
(a) i and ii Only
(b) ii and iii Only
(c) Agricultural extension support.
(c) i and iii Only
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(d) None of the above.
(d) All of the above
41.Govt. of India has increased the sectors with
100 % FDI through automatic route. Which 44.Government of India has increased the
purview of Income Tax Settlement
of the following statement is/are true
Commission in 2014. Which of the
regarding the FDI through automatic
following statement is true regarding ITSC?
route?
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(a) It is Regulatory body.

i. It allows FDI without permission in
any of the designated/listed sectors. (b) It is a Quasi-judicial body.
(c) It is a think-tank that specializes in
ii. It allows the rise in existing share
arbitration.
holding up to 100 % without any
permission, but not the first instance (d) None of the above.
of investment. 45. Gross savings have declined by nearly 4
iii. It is compatible with Ease of Doing percent in India in past 5 years. Which of
the following sector is/are responsible for
Business Program and Make in
such a steep decline?
India.
Codes: i. PSU
ii. Private corporate sector
(a) i and ii
iii. Household sector
(b) i and iii
Codes
(c) ii and iii
(a) i Only
(d) All of the above
(b) iii Only
42.The IIP (Index of Industrial Production) has
(c) i and iii Only
declined continuously since 2011 until third
quarter of 2014. Which of the following (d) All of the above

ECONOMIC SURVEY [7]

46. Which of the following statements iii. It is calculated only for goods crossing
accurately explains Ecological Overshoot from the trade route that falls on Baltic
Problem? sea.
(a) The amount of pollution created iv. Baltic Sea Index has touched its lowest
annually, cant be recharged in a year, level in its recorded history in 2015.
even if all carbon emission is stopped. Codes:
(b) Humanitys annual demand on the (a) i, ii and iv
renewable resources has exceeded
(b) i, iii and iv
what the Earth can renew in a year.
(c) i and iii
(c) Human requirements has increased
from what Earth can produce each (d) i and iv
year. 49. Which of the following initiatives were
(d) The pollution that is spread in a year, taken in 2014 to achieve labour welfare and
takes more than a year before it is ensure labour reforms?
naturally cleaned up by the
i. UAN for EPF
environment.

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ii. Shram Suvidha Portal
47. Service sector contributes most towards
national income in India as well at a iii. Amendments in Industrial Disputes
OR
cumulative level in the global GDP. Which Act
of the following statements is/are true Codes:
regarding the relationship in trends of
(a) i and ii
Indias service sector growth and Global
service sector? (b) i and iii
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(c) ii and iii

i. As a percentage of total output share
of services has increased both in India (d) All of the above
as well as globally. 50. What does a low GVA to GVO ratio in
ii. Average productivity in service sector manufacturing sector in India signifies?
in both India and world are (a) High backward linkages
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converging towards other sectors.

(b) High Forward linkages
iii. Average productivity level of service
(c) Low efficiency
sector labour is highest in both India
and world average, when compared (d) Colonial economy
to other sectors. 51. Service sector has been engine of growth
Codes: for Indias overall growth. On considered
inter-state, which of the state has grown
(a) i Only fastest in India?
(b) ii Only
(a) Bihar
(c) iii Only
(b) Karnataka
(d) i and ii
(c) Gujarat
48. Baltic Dry Index is used in shipping
(d) Pondicherry
industry. Which of the following statements
is/are true regarding the index? 52. RBI decided to anchor its monetary policy
to headline CPI from April 2014; which of
i. It is an assessment of the price of the following is true correct about monetary
moving the major raw materials by policy anchor?
sea.
ii. It is calculated only for Baltic sea (a) It involves targeting inflation in the
countries. monetary policy.

[ 8 ] ECONOMIC SURVEY
 (b) It involves setting a target range for iii. Fines and penalties imposed by courts
inflation and then design policy and government.
accordingly. iv. Recovery of loans.
(c) It involves setting targets to keep Codes:
inflation below the bank rates and
design monetary policy to achieve (a) i and ii
that. (b) i, ii and iii
(d) None of the above. (c) i, ii and iv
53. Indian banking has suffered from lower (d) All of the above
deposits in past 3 years. Which of the 57. Debt service ratio is an important macro
following were the valid reasons for such a economic indicator measuring a countrys
slowdown? financial health. Which of the following is
true regarding Indias External Debt?
i. Negative real returns on deposits.
ii. Reduction in valuation of assets due i. Despite increase in Indias

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to settlements of past bad debts. Governmental Debt, the external debt
has remained within manageable
iii. Emergence of new alternate modes of limits at less than 25 % of GDP.

(a)
investment, such as mutual funds.
Codes:
i and ii
OR ii. The ratio of short-term external debt
to Indias Forex reserves is greater
than 50% and is a cause of worry.
(b) i and iii iii. Debt service ratio measures external
payable debt in ratio to exports
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(c) ii and iii earning.
(d) All of the above iv. Debt service ratio measures external
54. Which of the following represents payable debt in ratio to NDP at Factor
relationship between CRAR and bank Cost.
stability? Codes:
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(a) Inversely proportional. (a) i, ii and iii

(b) Directly proportional. (b) i and iii
(c) hedging indicator for later. (c) i and iv
(d) None of the above. (d) i, ii and iv
55. Gross fixed capital formation in India has 58. Which of the following statement is/are
declined in last 5 years. Which of the true regarding Shanta Kumar committee
following sectors has most downward recommendations?
effect towards this?
i. PDS price shall be slowly anchored to
(a) Decline in House construction. MSP.
(b) Decline in construction of new plants ii. PDS coverage must be limited only for
and factories. BLP card holders exclusively.
(c) Decline in machinery import and iii. Cash transfers shall be introduced over
manufacturing. time.
(d) Decline in investment in IPRs. Codes:
56. Which of the following income heads is part (a) i and ii
of Non- debt receipts? (b) ii and iii
i. Disinvestment receipts. (c) i and iii
ii. Profits of PSUs. (d) All of the above

ECONOMIC SURVEY [9]

59. RESIDEX index is maintained by which of ii. Indias global share among Annual
the financial agency? tourist arrival is very poor at 0.6
percent.
(a) Housing Development Finance
Corporation iii. Indias global share among annual
tourist receipts is even less than its
(b) HDFC bank tourist arrivals due to low cost of
(c) RBI living.
(d) National Housing Bank Codes:
60. Govt. of India has introduced Visa on
(a) i and ii
Arrival for a large number of countries to
boost tourism. Which of the following (b) i and iii
statements captures Indias tourism (c) ii and iii
industry accurately? (d) All of the above
i. India even lags behind Vietnam in
terms of annual Tourist arrivals.

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OR
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[10] ECONOMIC SURVEY