//
VisionIAS - Online Self Test
Vision-IAS Logo
*
Questions for practice
1)

Consider the following statements:

  1. CPI measures price changes at the retail level.
  2. CPI is more sensitive to price change than WPI.

Which of the statements given above is/are correct?

(a)1 only

(b)2 only

(c)Both 1 and 2

(d)Neither 1 nor 2

2)

Which of the following are included in the CPI?

  1. Food and beverages
  2. Clothing and footwear
  3. Housing
  4. Services
  5. Pan, Tobacco, and intoxicants
  6. Fuel and light

Select the correct answer using the code given below.

(a)1, 2 and 3 only

(b)2,4 and 5 only

(c)1,2,3,5 and 6 only

(d)1,2,3,4,5 and 6

3)

In India, in the overall Index of Industrial Production, the Indices of Eight Core Industries have a combined weight of 37-90%. Which of the following is/are among those Eight Core Industries? (UPSC 2012)

1. Cement

2. Fertilizers

3. Natural gas

4. Refinery products

5. Textiles

Select the correct answer using the codes given below:

(a)1 and 5 only

(b)2, 3 and 4 only

(c)1, 2, 3 and 4 only

(d)1, 2, 3, 4 and 5

4)

Which of the following inflation indices are released by Central Statistical Office (CSO)?
1. CPI (Combined)
2. Wholesale Price Index (WPI)
3. Consumer Food Price Index (CFPI)
4. CPI (Industrial Worker)

Select the correct answer from the codes given below. 

(a)1 and 3

(b)1, 3 and 4

(c)1, 2 and 4

(d)2 and 3

5)

Consider the following statements with respect to the Purchasing Manager Index

1. It is an indicator of the economic health of the manufacturing sector.

2. If the index value is more than 50 that means there is growth in the industrial sector.

Which of the above statement(s) is/are correct?

(a)1 only

(b)2 only

(c)Both 1 and 2

(d)Neither 1 nor 2

6)

Consider the following statements regarding the liquidity trap:
1. In this situation, the speculative money demand function is infinitely elastic.
2. At this stage, a fall in interest rate is not possible and hence aggregate demand in the economy can not be stimulated. 
Which of the statements given above is/are correct?

(a)1 only

(b)2 only 

(c)Both 1 and 2

(d)Neither 1 nor 2 

7)

Consider the following with respect to Controlling Inflation:

  1. Both demand and supply-side measures are taken to address the problem of inflation
  2. Demand-side measures relate to reducing the aggregate demand in the economy 

Which of the statements given above is/are correct?

(a)1 Only 

(b)2 Only 

(c)Both 1 and 2 

(d)None of the Above 

8)

 In India, which one of the following is responsible for maintaining price stability by controlling inflation? (UPSC 2022)

(a)Department of Consumer Affairs

(b)Expenditure Management Commission

(c)Financial Stability and Development Council

(d)Reserve Bank of India

9)

What is a ‘liquidity trap’? How does it occur? Illustrate.(150 words /10 Marks )

10)

Write a short note on the following: (150 words, 10 marks)

  • CPI
  • IIP
  • Purchasing Managers Index


Answers
1) c
2) d
3) c
4) a
5) c
6) c
7) c
8) d