Indian Economy Questions and Answers

1.

Which kind of power accounts for the largest share of power generation in India

   A.) Hydro - electricity
   B.) Thermal
   C.) Nuclear
   D.) Solar

Answer: Option 'B'

Thermal

2.

The Minimum Alternative Tax (MAT) was introduced in the Budget of the Government of India for the year

   A.) 1991-92
   B.) 1992-93
   C.) 1995-96
   D.) 1996-97

Answer: Option 'D'

1996-97

3.

When development in economy takes place, the share of tertiary sector in National Income

   A.) first falls and the rises
   B.) first rises and then falls
   C.) keeps on increasing
   D.) remains constant

Answer: Option 'C'

keeps on increasing

4.

Under the minimum reserve system, the Reserve Bank of India as the sole authority of note issuse is required to maintain  assets worth not less than:

   A.) 85 crore of rupees
   B.) 115 crore of rupees
   C.) 200 crore of rupees
   D.) 210 crore of rupees

Answer: Option 'B'

115 crore of rupees

5.

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

6.

Which is not include in the private income arising in a country

   A.) Factor income from net domestic product
   B.) Net factor income from abroad
   C.) Current transfers from Government
   D.) Current Payment on foreign loans

Answer: Option 'D'

Current Payment on foreign loans

7.

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.

8.

The State having the highest density of population is 

   A.) Kerala
   B.) Tamil Nadu
   C.) West Bengal
   D.) Uttar Pradesh

Answer: Option 'C'

West Bengal

9.

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. 

10.

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

11.

STEP is the abbreviated name of the welfare programme to help

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

Answer: Option 'B'

Woman

12.

The Standard of living in a country is represented by its

   A.) National Income
   B.) Per Capita Income
   C.) Unemployment Rate
   D.) Poverty Ratio

Answer: Option 'B'

Per Capita Income

13.

In India, Agriculture income is calculated by

   A.) Output method
   B.) Input method
   C.) Expenditure method
   D.) Commodity flow method

Answer: Option 'A'

Output method

14.

In the history of Indian population, Which duration period is referred to as ' a great leap forward '

   A.) 1921 - 1931
   B.) 1941 - 1951
   C.) 1951 - 1961
   D.) 1971 - 1981

Answer: Option 'C'

1951 - 1961

15.

The first Census in India during the British period was held during the tenure of

   A.) Lord Dufferin
   B.) Lord Lytton
   C.) Lord Mayo
   D.) Lord Ripon

Answer: Option 'C'

Lord Mayo

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