Mock Test

Exam: AFCAT Subject: General Awareness Topic: Economics

Total Questions: 20

Q1. Which account in the balance of payments includes transactions related to changes in ownership of financial assets?

Current account Capital account Financial account Trade account
Q2. Which of the following is a measure of the average price level of a basket of consumer goods and services?

CPI GDP GNI GNP
Q3. What is the term used to describe the total value of all final goods and services produced within a country's borders in a given period?

Gross Domestic Product (GDP) Net Profit Margin Inflation Rate Consumer Price Index (CPI)
Q4. Which of the following is not a major currency in the foreign exchange market?

Euro Yen Rupee Pound
Q5. Who is considered the father of classical economics?

Adam Smith John Maynard Keynes Karl Marx David Ricardo
Q6. What is the natural rate of unemployment?

The rate at which all individuals are employed The rate at which the economy is at full employment The rate at which frictional unemployment is zero The rate at which cyclical unemployment is zero
Q7. Which of the following is not a benefit of GST for businesses?

Simplified tax compliance Reduced tax burden Increased tax rates Uniform tax structure
Q8. FII is considered more ________ for investors compared to FDI.

Long-term Short-term Controlled Collaborative
Q9. FII involves investing in ________.

Stock markets Real estate Government bonds All of the above
Q10. Which concept is central to neoclassical theories of production?

Economic growth Labor unions Marginal productivity Government subsidies
Q11. Which of the following is not a stock exchange in India?

BSE NSE NSE NYSE
Q12. Which of the following is a key feature of the Public Distribution System (PDS) in India?

High prices Limited availability Corruption-free distribution Exclusive for urban areas
Q13. Which indicator measures the flow of money in an economy over a specific period of time?

GDP CPI Velocity of money GNI
Q14. What is the process of selecting, purchasing, using, and disposing of products and services?

Marketing Consumer Behavior Production Finance
Q15. Which of the following is a component of national income?

Imports Exports Government spending Private consumption
Q16. What is the most traded commodity in the world?

Oil Gold Wheat Coffee
Q17. What does GPD stand for in economics?

Gross Product Development Gross Domestic Price Global Production Demand Gross Product Distribution
Q18. What is the law of supply?

As price increases, quantity supplied decreases As price decreases, quantity supplied decreases As price increases, quantity supplied increases As price decreases, quantity supplied increases
Q19. Which sector consumes the most energy globally?

Residential Industrial Transportation Commercial
Q20. What is the tax levied on the transfer of goods and services?

Income Tax Excise Duty Service Tax Sales Tax

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