List of top Economics Questions on Debts

Complete the following table. Construct/Express the Consumption function at ₹ 200 crore level of income. \[ \begin{array}{|c|c|c|c|} \hline \textbf{Income (Y)} & \textbf{Savings (S)} & \textbf{Average Propensity to Consume (APC)} & \textbf{Marginal Propensity to Save (MPS)} \\ \hline 0 & -30 & 1 & 0.2 \\ 100 & 20 & 0.85 & 0.2 \\ 200 & 70 & 0.85 & 0.2 \\ 300 & 120 & 0.8 & 0.2 \\ \hline \end{array} \]

Debts which have to be paid at some specific future date are known as:

“Depreciation of currency may promote exports of a nation.”
Defend or refute the given statement with valid arguments.

\[ \begin{array}{|l|l|} \hline \textbf{Column I} & \textbf{Column II} \\ \hline \text{Cement shop owner} & \text{Self-employed} \\ \hline \text{Construction worker} & \text{Casual wage worker} \\ \hline \text{Civil engineer} & \text{Regular salaried} \\ \hline \end{array} \]

For a hypothetical economy, assume the government increased infrastructural investment by ₹10,000 crore. 80% of additional income is consumed in the economy. Estimate the increase in income and the corresponding increase in consumption expenditure in the economy.

\[ \begin{array}{|c|l|r|} \hline \textbf{S.No.} & \textbf{Items} & \textbf{Amount (₹ crore)} \\ \hline (i) & \text{Wages and Salaries} & 2,000 \\ \hline (ii) & \text{Rent and Interest} & 700 \\ \hline (iii) & \text{Corporate Tax} & 500 \\ \hline (iv) & \text{Undistributed Profit} & 300 \\ \hline (v) & \text{Consumption of Fixed Capital} & 200 \\ \hline (vi) & \text{Dividend} & 150 \\ \hline (vii) & \text{Net Factor Income from Abroad} & -50 \\ \hline \end{array} \]

Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below:
Assertion (A): The maximum value of Marginal Propensity to Save (MPS) can be unity.
Reason (R): At the break-even level of income, savings are zero.

Read the following statements carefully:
Statement 1: Economic territory and political frontier of a nation are one and the same thing.
Statement 2: American Embassy in India is a part of the economic territory of India.
In the light of the given statements, choose the correct alternative from the following:

Identify which of the following is not one of the merits of a fixed exchange rate system: In the light of the given statements, choose the correct alternative from the following:

Identify which of the following is not a member nation of G20:

\[ \begin{array}{|l|l|l|l|} \hline \textbf{Income} & \textbf{Savings} & \textbf{(APC)} & \textbf{(MPS)} \\ \hline 0 & (-)30 & - & - \\ \hline 100 & 20 & 1 & 0.3 \\ \hline 200 & 50 & 0.85 & 0.3 \\ \hline 300 & 80 & 0.8 & 0.3 \\ \hline \end{array} \]

(a) “In an economy, ex-ante Aggregate Supply is more than ex-ante Aggregate Demand.”
Explain its impact on the level of output, income, and employment.

\[ \begin{array}{|l|l|} \hline \textbf{S. No.} & \textbf{Items (in Rs. crore)} \\ \hline (i) & \text{Gross Domestic Fixed Capital Formation = 400} \\ \hline (ii) & \text{Exports = 80} \\ \hline (iii) & \text{Government Final Consumption Expenditure = 500} \\ \hline (iv) & \text{Consumption of Fixed Capital = 70} \\ \hline (v) & \text{Household Final Consumption Expenditure = 640} \\ \hline (vi) & \text{Inventory Investment (Net) = (-80)} \\ \hline (vii) & \text{Imports = 90} \\ \hline (viii) & \text{Net Indirect Taxes = 60} \\ \hline (ix) & \text{Net Factor Income from Abroad = 50} \\ \hline \end{array} \]

Identify the correct equation from the following:

Suppose for a hypothetical economy:
\(C = 100 + 0.75Y\) (where \(C =\) Consumption and \(Y =\) Income)
\(I_0 = 400\) (\(I_0 =\) Autonomous Investment)
Value of Investment Multiplier (\(K\)) would be _________ .
(Choose the correct alternative to fill in the blank)

Total consumption expenditure by households under Keynesian Economics is a combination of ________ and _____ .
(Choose the correct alternative to fill in the blanks)

In the decade of the 1970s, Pakistan nationalized its ________ industries.
(Choose the correct option to fill in the blank)

Read the following text carefully from ‘The Economic Times’ dated 8th June, 2023: “The Reserve Bank of India’s (RBI’s) rate-setting panel unanimously decided to keep the benchmark lending rate unchanged at 6.5%. The committee voted to remain focused on the withdrawal of accommodating monetary policy.” On the basis of the given text and common understanding, answer the following questions: Identify and discuss the economic issue indicated in the above text.

Distinguish between fixed exchange rate system and flexible exchange rate system.

Suppose, the Balance of Trade of an imaginary economy shows a favorable balance of ₹ 500 crore. The values of merchandise exports are ₹ 1200 crore and transfer payments are ₹ 400 crore. The value of merchandise imports would be ₹ ______ .

Find the missing figures and choose the correct option: \[ \begin{array}{|c|c|c|c|} \hline \textbf{Round} & \textbf{Deposits} & \textbf{Loans (80\%)} & \textbf{Reserve Ratio (20\%)} \\ \hline I & 5000 & 4000 & \_\_\_ \\ II & 4000 & \_\_\_ & 800 \\ \vdots & \vdots & \vdots & \vdots \\ \hline \textbf{Total} & \_\_\_ & \_\_\_ & \_\_\_ \\ \hline \end{array} \]

“As per the National Stock Exchange (NSE) data, dated 9th June, 2023, there was a net selling off worth ₹ 309 crore by Foreign Institutional Investors (FIIs) over the period of one month i.e., 9th May, 2023 – 9th June, 2023.” The above-mentioned transactions will be recorded on ______ side of ______ account of Balance of Payments of India.