(GK) MCQ Quiz : India’s Economy Economics (Solved)

• Socialistic economy
• Gandhian economy
• Answer: Mixed economy
• Free economy

2.The most important source of capital formation in India has been?

• Answer: Household savings
• Public sector savings
• Government revenue surpluses
• Corporate savings

3.In India, the Public Sector is most dominant in?

• transport
• steel production
• Answer: commercial banking
• organised term lending financial institutions.

4.Goa’s economy is mainly based on ?

• tourism
• Answer: export of ores
• agriculture
• None of these

5.India’s wage policy is based on ?

• Answer: Cost Of Living
• Standard of living
• productivity
• None of these

6.One of the reasons for India’s occupational structure remaining more or less the same over the years has been that

• Productivity in agriculture has been high enough to induce people to stay with agriculture
• Answer: People are largely unaware of the significance of transition from agriculture to industry for economic development.
• Investment pattern has been directed towards capital intensive industries.
• ceilings-on land holdings have enabled more people to own land and hence their preference to stay with agriculture

7. Which of the following is correct regarding the Gross Domestic Savings in India?

• Answer: Contribution of Household sector is the largest
• Contribution of Government sector is the largest
• Contribution of Corporate sector is the largest
• None of these.

8.Which of the following governmental steps has proved relatively effective in controlling the double digit rate of inflation in the Indian economy during recent years

• Answer: Containing budgetary deficits and unproductive expenditure
• Streamlined public distribution system
• Enhanced rate of production of all consumer goods
• Pursuing an export -oriented strategy

9.The modern economy is not characterised by?

• capital intensive mode of production
• development of money economy
• production for market
• Answer: self-sufficient village system

10.One of the problems in calculating the national income in India correctly is?

• under - employment
• inflation
• Answer: non -monetised consumption
• low savings

11.The main source of India’s national income is?

• Industry
• Answer: Agriculture
• Forestry
• None of these

12.Which of the following are the main causes of slow rate of growth of per capita income in India?
I. High capital - output ratio
2. High rate of growth of population
3. High rate of capital formation
4. High level of fiscal deficits

• Answer: 1,2
• 2,3,4
• 1,4
• All of the Above

13. Among Indian Economists who had done pioneering work on National Income?

• P. N. Dhar
• Jagdish Bhagwati
• Answer: V. K. R. V. Rao
• Prof. Shenoi

14.Which of the following is not a method of estimating national income?

• Income method
• Value - added method
• Expenditure method
• Answer: Export - import method

15. In our country, which of the following affects poverty line the most?

• Level of prices
• Production quantum
• Answer: Per capita income
• Quantum of gold reserve

16.To know whether the rich are getting richer and the poor getting poorer, it is necessary to compare

• The availability of food grains among two sets of people, one rich and the other poor, over different periods of time
• Answer: The distribution of income of an identical set of income recipients in different periods of time
• The wholesale price index over different periods of time for different regions
• The distribution of income of different sets of income recipients at a point of time

17.The largest revenue in India is obtained from?

• Sales Tax
• Direct Taxes
• Answer: Excise Duties
• None of these

18.Which of the following is not true about ‘vote on-account’?

• Answer: It is a budget presented in the Parliament to cover the deficit left by the last budget.
• It does not allow the Government to set for the economic policies of the new plan which starts from April 1.
• It prevents the Government from imposing fresh taxes or withdrawing old one.
• This allows the Government to withdraw an amount for a period with the consent of Parliament.

19.Fresh evaluation of every item of expenditure from the very beginning of each financial year is called ?

• Fresh Budgeting
• Deficit Budgeting
• Performance Budgeting
• Answer: Zero-based Budgeting

20. Government imposes taxes to ?

• check the accumulation of wealth among the rich
• Answer: Run the machinery of state
• uplift weaker sections
• None of these

21.An ad valorem duty is a tax on the basis of

• Answer: the price of a commodity
• the value added
• the advertisement expenditure
• the unit of the commodity

22. The budget is presented to the Parliament on

• Answer: the last day of February
• 15th March
• the last day of March
• 1st April

23.The income tax in India is

• indirect and progressive
• direct and proportional
• Answer: direct and progressive
• indirect and proportional

24. Fiscal Policy is connected with

• Issue of currency
• exports and imports
• Answer: public revenue and expenditure
• None of these

25.Which of the following is not a direct tax?

• Wealth Tax
• Income Tax
• Estate Duty
• Answer: Sales Tax