Indian Economy Questions and Answers

1.

Which sector of Indian Economy contributes largest to the Gross National Product 

   A.) Tertiary sector
   B.) Primary sector
   C.) Secondary sector
   D.) Public Sector

Answer: Option 'A'

Tertiary sector

2.

The term 'mixed economy' denoted

   A.) existence of both rural and urban sectors
   B.) existence of both private and public sectors
   C.) existence of both heavy and small industries
   D.) existence of both developed and underdeveloped sectors

Answer: Option 'B'

existence of both private and public sectors

3.

Hindu rate of growth refers to the rate of growth of

   A.) GDP
   B.) Per captain income
   C.) Population
   D.) Foodgrains

Answer: Option 'A'

GDP

4.

India nationalised 14 major commercial banks in 1969 with deposits not less than

   A.) Rs. 10 crore each
   B.) Rs. 25 crore each
   C.) Rs. 50 crore each
   D.) Rs. 100 crore each

Answer: Option 'C'

Rs. 50 crore each

5.

Which of the following schemes was launched to promote basic education in India and attract children in school going age to attend the classes

   A.) Mid Day Meal scheme
   B.) Pulse Polio Abhiyan
   C.) Operation Flood
   D.) None of these

Answer: Option 'A'

Mid Day Meal scheme

6.

What is the full form of GDP

   A.) Gross depository revenue
   B.) Global domestic Ratio
   C.) Global depository receipts
   D.) Gross domestic product

Answer: Option 'D'

Gross domestic product

7.

The prices at which the government purchases food grains for maintaining the Public Distribution system (PDS) and for building up buffer - stock is known as :

   A.) minimum support prices
   B.) procurement prices
   C.) issue prices
   D.) ceiling prices

Answer: Option 'B'

procurement prices

8.

Which of the following produces maximum crude petroleum in India at present

   A.) Off shore Bombay High
   B.) Coastal Tamil Nadu
   C.) Gujarat
   D.) Assam

Answer: Option 'A'

Off shore Bombay High

9.

During which decade did the population of India record a negative growth rate 

   A.) 1911 - 21
   B.) 1921 - 31
   C.) 1931 - 41
   D.) 1941 -51

Answer: Option 'A'

1911 - 21

10.

An objective of the National Food Security Mission is to increase the production of certain crops through area expansion and productivity enhancement in a sustainable manner in the identified districts of the country. What are those crops?

   A.) Rice and Wheat only
   B.) Rice, Wheat and pulses only
   C.) Rice, Wheat, Pulses and oil seeds only
   D.) Rice, Wheat, Pulses, oil seeds and vegetables

Answer: Option 'B'

Rice, Wheat and pulses only

11.

The most literate Union Territory in India is

   A.) Delhi
   B.) Chandigarh
   C.) Lakshadweep
   D.) Pondicherry

Answer: Option 'C'

Lakshadweep

12.

In India, the state known for its sandalwood is

   A.) Karnataka
   B.) Assam
   C.) Kerala
   D.) West Bengal

Answer: Option 'A'

Karnataka

13.

In India national, National Income is calculated by the method which is known as

   A.) the combined method
   B.) the income method
   C.) the product method
   D.) the expenditure method

Answer: Option 'A'

In India, National Income is calculated by the combined method. It combines two methods i.e product or output method and the income method. This is done to overcome the problem of deficiency of statistics. The product method endeavours to find out the net contribution to national income of all producing units. The income method adds up income and payments accruing of factors of production. This method is used in the tertiary  sector like government services banking etc and also in the commoity sector if output data is not available.

14.

STEP is the abbreviated name of the welfare programme to help

   A.) Children
   B.) Woman
   C.) Farmers
   D.) Senior citizens

Answer: Option 'B'

Woman

15.

Which is the highest form of unemployment in India?

   A.) seasonal
   B.) structural
   C.) cyclical
   D.) casual

Answer: Option 'B'

Basically India's unemployment is structural in nature. It is associated with the inadequacy of the productive capacity to create enough jobs for all those able and willing in india. Not only is the productive capacity  (largely capital stock) much below the needed quantity, it is also found to be increasing at a slow rate. As against this, additions to labour force are being made at a fast rate on account of rapidly rising population. Thus, the absolute level of unemployed persons is rising every year. 

16.

The Mid Day Meal Scheme has been launched by the Union Minister of

   A.) Home Affairs
   B.) Social Welfare
   C.) Human Resource Development
   D.) Rural Development

Answer: Option 'C'

Human Resource Development

17.

Which of the following policies of the financial sectors is basically designed to transfer local financial assets into foreign financial assets freely and at market determined exchange rates?

   A.) Capital Account Convertibility
   B.) Financial Deficit Management
   C.) Mimimum Support Price
   D.) Restrictive Trade Practices

Answer: Option 'A'

Capital Account Convertibility

18.

The minimum forest cover to maintain ecological balance in the plains is

   A.) 40%
   B.) 50%
   C.) 33%
   D.) 25%

Answer: Option 'C'

33%

19.

Who coined the term 'Hindu rate of growth' for Indian economy

   A.) Raj Krishna
   B.) A.K.Sen
   C.) Kirit S.Parikh
   D.) Montek Singh Ahluwalia

Answer: Option 'A'

Raj Krishna

20.

The term stagflation refers to a situation where?

   A.) Growth has no relation with the change in prices
   B.) Rate of growth is slower than the rate of price increase
   C.) Rate of growth is faster than the rate of price increase
   D.) Rate of growth and prices both are decreasing

Answer: Option 'B'

Rate of growth is slower than the rate of price increase


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