GKwizard Say's Law' in classical economics states that: A. Demand creates its own supply B. Supply creates its own demand C. Money is neutral in the long run D. Government intervention is always harmful to the economy Answer: Option B Say's Law, attributed to Jean-Baptiste Say, posits that the act of producing goods generates an income sufficient to purchase those goods, thus implying that supply creates its own demand and that general overproduction is impossible.
1 Which of the following best describes the primary objective of India's economic planning since independence? A. Maximizing GDP growth at all costs B. Achieving self-reliance and social justice C. Becoming a global superpower in manufacturing D. Maintaining a balanced trade surplus View Answer
2 The concept of 'Hindu rate of growth' is often used to refer to: A. The rapid economic expansion witnessed in the early 2000s B. The relatively slow growth rate of the Indian economy in the decades following independence C. The growth rate primarily driven by religious tourism and activities D. The fluctuating nature of agricultural output due to monsoon dependence View Answer
3 Which of the following was a key recommendation of the Narasimham Committee I (1991)? A. Strengthening the role of development financial institutions B. Liberalizing the banking sector and reducing statutory reserve requirements C. Promoting small-scale industries through reservations D. Nationalizing all private sector banks View Answer
4 The 'Washington Consensus' generally advocates for which set of economic policies? A. Increased state intervention and protectionism B. Fiscal austerity, privatization, and trade liberalization C. Emphasis on income redistribution and social welfare programs D. Prioritizing agricultural development over industrialization View Answer
5 What is the primary function of the Goods and Services Tax (GST) Council in India? A. To implement and administer the GST across the country B. To adjudicate disputes between taxpayers and the government C. To recommend rates of tax, exemptions, and thresholds under GST D. To collect GST revenues on behalf of the states and the Union View Answer
