Top 50 Practice MCQs for IAS Economy 2023: Sharpen Your Erudition

Title: Top 50 Practice MCQs for IAS Economy 2023: Sharpen Your Erudition

Aspiring IAS economy candidates understand the importance of staying ahead of the game. To optimize your preparation level, you must practice rigorously with MCQs. MCQs can serve as an effective test of your conceptual clarity, and the ability to think analytically and quickly. We’ve put together the top 50 practice MCQs for IAS economy, 2023, to help you shape your preparation strategy.

MCQs on Fiscal and Monetary Policies

Question 1. If we increase the reserve ratio, what happens to the money multiplier effect?
a) It increases
b) It decreases
c) It stays the same
d) None of the above

Question 2. Which of the following is NOT a tool of fiscal policy?
a) Government spending
b) Taxation
c) Quantitative easing
d) Transfer payments

Question 3. What is the point to which a given government is ready to allow its national currency to depreciate against the USD?
a) Dollar backing reserve system
b) Balance of payments
c) Fixed exchange rate system
d) Pegging the exchange rate

Question 4. If the Central Bank reduces the CRR, how will it affect the economy?
a) Increase the available credit
b) Decrease the available credit
c) Increase interest rates
d) Decrease interest rates

Question 5. In what system has the Central Bank been able to fix individual banks’ statutory liquidity ratio?
a) Corridor
b) Fixed rate
c) Direct
d) None

MCQs on Economic Trends

Question 6. Which of the following is the best gauge of economic growth for a country?
a) Gross Domestic Savings
b) Gross Domestic Product
c) Gross Value Added
d) Net National Product

Question 7. What is the limit of the Goods and Services Tax (GST) as per the Indian Constitution?
a) 26%
b) 28%
c) 29%
d) None of the above

Question 8. What does the term ‘The Phillips Curve’ indicate?
a) Interest rate and inflation
b) Unemployment and inflation
c) Economic growth and inflation
d) Trade and inflation

Question 9. What are the ultimate goals of the Fiscal Responsibility and Budget Management Act?
a) Reducing fiscal deficit
b) Increasing the quality of government spending
c) Enforcing transparency
d) All of the above

Question 10. What is the difference between a Recession and a Depression?
a) The length of the following recovery period
b) The severity and length of a economic downturn
c) The cause of a economic downturn
d) None of the above

In conclusion, mastering the IAS economy will require a lot of hard work and dedication. However, with the right practice approach, you can optimize your preparation level. Use these top 50 practice MCQs to sharpen your erudition, boost your confidence, and increase your chances of cracking the IAS examination. Remember, the more you practice, the better you become!

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