MCQ on Economic Survey 2021 : Prelims Booster

These Multiple Choice Questions (MCQs) derived from PIB, The Hindu, Rajya Sabha Tv, Ministry of Finance, etc. MCQs on Economic Survey 2020-2021 are conceptual as well as factual. 

These questions-answer will be useful for UPSC, UPPSC, and other Civil Service Prelims Examinations...

Note : These MCQ's covered almost all the important facts and concepts of the Economic Survey 2020-2021.

MCQ's on Economic Survey 2020-21

1. The Economic Survey is Annual Document prepared by Department of Economic Affairs, the Ministry of Finance under the guidance of 

a. Chief Secretary of the Ministry of Finance

b. Chief Economic Advisor

c. Finance Minister

d. Chairman of Finance Commission

✔️ b. Chief Economic Advisor

2. The Economic Survey 2020-2021 is dedicated to ?

a. COVID-19 Pandemic

b. COVID-19 Warriors

c. COVID-19 Vaccination

d. Fight against COVID-19

✔️ b. COVID-19 Warriors

The Economic Survey 2020-21 has been dedicated to extraordinary work of COVID-19 Warriors.

3. What is the theme of the Economic Survey 2020-2021 ?

a. Fight Against COVID-19

b. Saving Lives and Livelihoods

c. Health and Wellness

d. Boost Immunity

✔️ b. Saving Lives and Livelihoods

The theme of Economic Survey 2020-2021 is "Saving Lives and Livelihoods".

4. Who presented the Economic Survey 2020-2021 (annual document) ?

a. Finance Minister

b. Chairman of Finance Commission

c. Chief Economic Advisor

d. Prime Minister

 ✔️ a. Finance Minister

On 29 January 2021, The Union Finance Minister Nirmala Sitharaman presented Economic Survey 2020-2021 in Parliament immediately before the Budget 2021-22.

5. Which are Twin Economic Shocks by the COVID-19 Pandemic ?

a. Demand and Supply Shocks

b. Supply and Price Shocks

c. Demand and Price Shocks

d. None of these

✔️ a. Demand and Supply Shocks

6. According to Chief Economic Advisor Krishanamurthy Subramaniam (Economic Survey 2020-21), what may be the shape of Economic recovery ?

a. U-shape

b. S-shape

c. V-shape

d. Z-shape

✔️ c. V-shape

According to Economists, V-shaped recovery is a type of economic Recession and Recovery. (Recession - due COVID-19 Pandemic and Recovery by COVID-19 Vaccination & other factors)

Also Read : Important Highlights of Union Budget 2021-2022

7. How much will increase in public Healthcare spending of Gross Domestic Product (GDP) ?

a. Approx. 3%

b. Approx. 2%

c. Approx. 4%

d. Approx. 5%

✔️ a. Approx. 3%

8. Due to increasing public healthcare spending, how much will be decrease the out-of-pocket expenditure (OOPE) of overall healthcare spending ?

a. From 65% to 45%

b. From 65% to 35%

c. From 65% to 25% 

d. From 65% to 15% 

✔️  b. From 65% to 35%

9. Consider the key suggestions for Healthcare amid COVID-19 by Economic Survey 2020-2021

I. A regulator for healthcare sector

II. Telemedicine need to be harnessed to fullest

III. Emphasis on National Health Mission (NHM) in conjunction with Ayushman Bharat should continue

Select the CORRECT code given below

a. I, II and III

b. I and II Only

c. I and III Only

d. II and III Only

✔️ a. I, II and III

10. India adopted a unique four pillar strategy for economic recovery. The four pillars strategy are 

a. Containment, fiscal, financial, and short-term structural reforms

b. Containment, fiscal, financial, and long-term structural reforms

c. Containment, Capital , financial, and short-term structural reforms

d. None of These

✔️ b. Containment, fiscal, financial, and long-term structural reforms

11. What will be the India's real GDP estimation in 2021-22 ?

a. 10%

b. 11%

c. 12%

d. 13%

✔️ b. 11%

India's real GDP to record a growth of 11% in 2021-22 and nominal GDP by 15.4%. Its highest growth since Independence.

12. How much is Net Foreign Direct Investment (FDI) inflows during April-October, 2020 ?

a. $ 25.5 billion

b. $ 26.5 billion

c. $ 27.5 billion

d. $ 28.5 billion

✔️ c. $ 27.5 billion

13. Which Sector has the highest FDI inflows in India ?

a. Agriculture Sector

b. Manufacturering Sector

c. Service Sector

d. None of These

✔️ c. Service Sector

Nearly Four-Fifth of total Foreign Direct Investment (FDI) inflow into India.

14. What was the share of Agriculture and Allied Sectors in Gross Value Added of the Country at Current Price for the year 2019-20 ?

a. 16.8%

b. 17.8%

c. 17.7% 

d. 17.6%

✔️ b. 17.8% 

15. Which was not a major Agriculture and Allied export destination ?

a. USA

b. Saudi Arabia

c. Iran

d. United Kingdom

✔️ d. United Kingdom

In 2019-20, the major Agriculture and Allied export destinations were the USA, Saudi Arabia, Iran, Nepal and Bangladesh.

16. The contribution of Livestock in total agriculture and allied sector GVA (at Constant prices) has increased from 24.32% (2014-2015) to ______(2018-2019) 

a. 21.32%

b. 22.32%

c. 23.32%

d. 24.32%

✔️ d. 24.32%

17. Consider the following statements regarding P.J. Nayak Committee (2014) highlighted concern

I. Evergreening of loans by classifying NPAs as restructured assets

II. The resultant under capitalization of banks

Select the CORRECT code given below 

a. I Only

b. II Only

c. Both I and II

d. None of These

✔️ c. Both I and II

18. Consider the following

I. India enter the top-50 innovating countries in 2020 

II. India ranked first in Central and South Asia

III. India ranked third amongst lower middle-income group economies

Which is/are CORRECT statement regarding India's ranked in Global Innovation Index 

a. I, II and III

b. I and II Only

c. II and III Only

d. I and III Only

✔️ a. I, II and III

Additional Read : MCQ's on Union Budget 2021-2022

19. India's gross domestic expenditure on R&D (GERD), _______of GDP ?

a. 1%

b. 0.55%

c. 0.65%

d. 0.75%

✔️ c. 0.65%

20. Consider the following statements regarding Pradhan Mantri Jan Arogya Yojana (PM-JAY)

I. Launched in 2018

II. It's aim to provide Healthcare access to the most vulnerable sections

III. Declined in Infant Mortality Rate (IMR) by 12% for the States that adopted it

IV. Decline in under-5 mortality rate

Select the CORRECT code given below

a. I, II and III

b. II, III and IV

c. I, II and IV

d. I, II, III and IV

✔️ c. I, II and IV

IMR declined by 12% for States that did not adopt PM-JAY and 20% in States that adopted it.

21. Highest ranked State in Bare Necessities Index (BNI) ?

a. Punjab

b. Haryana

c. Gujarat

d. Maharashtra

✔️ Punjab

BNI is highest in States such as Kerala, Punjab, Haryana, and Gujarat respectively.

Additional Read : Bare Necessities Index 

22. Despite the COVID-19 crisis, which sector has remained a silver lining ?

a. Service Sector

b. Agriculture Sector

c. Manufacturing Sector

d. Construction Sector

✔️ b. Agriculture Sector

23. Consider the following statements regarding External Sector of the Economy 

I. India to end with an Annual Current Account Surplus after a period of 17 years

II. Trade balance with China and US improved as import slowed

III. Remittance declined by 6.7%

Select the CORRECT code given below

a. I, and II Only

b. I, II and III

c. II and III Only

d. I and  III Only

✔️ b. I, II and III

24. India's Forex reserves at an all time high of US $ _______ as on January 08, 2021 ?

a. $ 568.1 billion

b. $ 586.1 billion

c. $ 578.1 billion

d. $ 598.1 billion

✔️ b. $ 586.1 billion

25. The International Solar Alliance (ISA) launched new initiatives -

a. World Solar Bank

b. One Sun One World One Grid Initiative

c. Both (a) and (b)

d. None of These

✔️ c. Both (a) and (b)

ISA launched two new initiatives - "World Solar Bank" and "One Sun One World One Grid Initiative" - poised to bring about a solar energy revolution globally.

26. When is the economic survey (annual financial documents) generally presented in the Parliament ?

a. Immediate after the Budget

b. Immediate before the Budget

c. With Budget

d. Anytime in the Financial Year

✔️ b. Immediate before the Budget

27. Consider the following statements regarding Defence structural reforms 

I. Corporatization of Ordnance Factory Board

II. FDI limit in the Defence manufacturing under automatic route : 74%

III. Time-bound defence procurement process

Select the CORRECT code given below

a. I, II and III

b. II and III Only

c. I and III Only

d. I and II Only

✔️ a. I, II and III

28. What led to the "Economic Under Heating" during COVID-19 ?

a. Twin shocks - Demand and Supply

b. Government Start Supply side measure first

c. Increase consumption

d. Decrease Savings

✔️ a. Twin shocks - Demand and Supply

29. According to Economic Survey 2020-21, Consider the following statements regarding the impacts of the COVID-19 on Demand and Supply

I. Supply chain Broken

II. Factories shutdown

III. Reduced Consumption

IV. Reduced Investment

Select the CORRECT code given below

a. I, II, and IV Only

b. II, III and IV Only

c. I, III and IV Only

d. I, II, III and IV

✔️ d. I, II, III and IV

30. Why is India vulnerable due to COVID-19 Crisis ?

I. Huge Population

II. High Population Density

III. High number of elderly population (in absolute term)

IV. Overburden Health Infrastructure

Select the CORRECT code given below

a. I, II and IV Only

b. I, II, III and IV

c. II, III and IV Only

d. I, III and IV Only

✔️ b. I, II, III and IIV

31. Which is/are the CORRECT statements regarding Population Density of India ?

a. India's population density higher than Global average

b. India's population density is 382 persons per square kilometre

c. Both (a) and (b)

d. None of the Above

✔️ c. Both (a) and (b)

The Global average of population density is 58 persons per square kilometre.

32. Which is the CORRECT statement regarding the research of the nobel winner Hasen and Sargent ?

a. To minimising losses in a worst case 

b. To Identify the worst outcome

c. To Update Response

d. None of these

✔️ To minimising losses in a worst case 

33.  Consider the following statement regarding the sources of motivation for Indian Economic Recovery

I. Research of Hansen and Sargent 

II. Spainish Flue Pandemic

III. Barbell Strategy in Finance

Select the CORRECT answer using code given below

a. I Only

b. II Only

c. I and II Only

d. I, II and III

✔️ I, II and III

Research of Hansen and Sargent : Its a Nobel prize winning research - During high uncertainty, the policy will focus on minimising losses in a worst case scenario.

Spainish Flue Pandemic : It happened in 1918-19 - infected around 500 million people and killed 50 to 100 million people.

Barbell Strategy in Finance : Identify the worst outcome; Hedge against above outcomes l (Lockdown); Take Feedback; Up-to-date response.

34. If growth is greater than debt, the debt-to-GDP ratio will be

a. Sustainable

b. Economic Plunge

c. Both (a) and (b)

d. None of these

✔️ a. Sustainable

35. According to Economic Survey 2020-21, In the context of India, the relationship between GDP and debt, which of the following statements is/are CORRECT?

a. If GDP increases, the debt decreases 

b. If GDP increases, the debt also increases

c. If GDP decreases, the debt increases

d. If GDP decreases, the debt also decreases

✔️ a. If GDP increases, the debt decreases 

36. Which of the following statements is/are correct regarding Expansionary Fiscal Policy?

I. Expenditure increases and tax reduces

II. Expenditure reduces and tax increases

Select the CORRECT answer using code given below

a. I Only

b. II Only

c. Both I and II

d. None of these

✔️a. I Only

37. In the context of Sovereign Rating methodology, what is/are India’s and other Asian country demands?

a. More transparent

b. Less subjective

c. Both (a) and (b)

d. None of These

✔️ c. Both (a) and (b)

 

38. With reference to Indian Economy, consider the following statements :

I. The fifth largest economy in the world

II. The investment grade (BBB-/Baa3) in sovereign credit ratings

Which of the statements given above is/are correct?

a. I Only

b. II Only

c. Both I and II

d. Neither I nor II 

✔️ c. Both I and II

39. Which of the following statements is/are correct regarding the Inequality and Growth in India?

I. Both inequality and per-capita income (growth) have different relationships with socio-economic indicators

II. Economic growth has a greater impact on poverty alleviation than inequality    

III. Expanding the overall pie - redistribution in a developing economy is feasible only if the size of the economic pie grows

Select the correct answer using the code given below.

a. I and II Only

b. II and III Only

c. I and III Only

d. I, II and III

✔️ b. II and III

Explanation for Statements I:

The relationship between inequality and socio-economic outcomes vis-à-vis economic growth and socio-economic outcomes, is different in India from that in advanced economies.

Both inequality and per-capita income (growth) have similar relationships with socio-economic indicators in India, unlike in advanced economies.

 

40. With reference to National Health Mission, consider the following statements :

 I. Emphasis on NHM in conjunction with Ayushman Bharat should continue

II. An increase in public healthcare spending from 1% to 2.5-3% of GDP

III. It can decrease the out-of-pocket expenditure from 75% to 35% of overall healthcare spending

Which of the statements given above is/are correct?

a. I and II Only

b. II and III Only

c. I and III Only

d. I, II and III

✔️ d. I, II and III

Explanation for Statement III:  

An increase in public healthcare spending from 1% to 2.5-3% of GDP can decrease the out-of-pocket expenditure from 65% to 35% of overall healthcare spending.

 

41. Consider the following statements related to India’s GDP growth rate :

I. India’s real GDP to record a 11.0% growth in FY2021-22

II. India’s nominal GDP to record a 15.4% growth in FY2021-22

  Which of the statements given above is/are correct?

 a. I Only

b. II Only

c. Both I and II

d. Neither I nor II

 ✔️ c. Both I and II

Sources

PIB

News Papers

RSTv