Practice National income human development index - indian economy mcq Online Quiz (set-1) For All Competitive Exams
Q-1) The concept of Economic Planning in India is derived from which country?
(a)
(b)
(c)
(d)
The concept of Economic planning in India is derived from Russia.
Q-2) According to the UN Department of Economic and Social Affairs (UNDESA), what percentage of world’s total population is currently living in urban areas?
(a)
(b)
(c)
(d)
Q-3) Which one of the following publishes the ‘Global Competitiveness Index’ report?
(a)
(b)
(c)
(d)
Q-4) When did the Government of India established the independent Ministry for ‘Women and Child Development’?
(a)
(b)
(c)
(d)
Q-5) Which one of the following organisations publishes the Human Development Report?
(a)
(b)
(c)
(d)
Q-6) Which one of the following states was having the highest Human Development Index in the year 2012?
(a)
(b)
(c)
(d)
The Human Development Index (HDI) is a composite statistic of life expectancy, education, and income used to rank states.
Among the given states Kerala was having the highest Human Development Index around 0.92 in the year 2012 for achieving the highest literacy rate, quality health services and consumption expenditure of people.
Latest HDI of the Indian state - Kerala - Highest (0.797) - Chhattishgarh lowest (NA)
Q-7) Consider the following statements in regard to inclusive development:
- Inclusive developments refer to the social inclusion of the socially excluded sections of the society.
- Creating productive and gainful employment opportunities.
Which of the statements given above is/are correct?
(a)
(b)
(c)
(d)
Inclusive growth is a concept that includes an equitable allocation to every section of society.
It creates an environment of equality in opportunity in all dimensions such as employment creation, market, consumption, and production and has created a platform for people who are poor to access a good standard of living.
Q-8) Consider the following statements :
- LPG model of the Indian Economy was fully implemented in the Eighth Five Year plan.
- The Eighth plan envisaged an annual average growth rate of 5.6% but the real growth rate was 6.8%.
Which of the statements given above is/are correct?
(a)
(b)
(c)
(d)
The economy of India had undergone significant policy shifts at the beginning of the 1990s at the time of the eighth plan. This new model of economic reforms is commonly known as the LPG or Liberalization, Privatization and Globalization model.
LPG model of economic development in India was proposed by Dr Manmohan Singh, economist and finance minister at that time.
Moreover, the Eighth plan envisaged an annual average growth rate of 5.6% but the real growth rate was 6.8%.
Q-9) In India, rural incomes are generally lower than urban incomes. Which of the following reasons account for this?
- A large number of farmers are illiterate and know little about scientific agriculture.
- Prices of primary products are lower than those of manufactured products.
- Investment in agriculture has been lower when compared to investment in the industry
(a)
(b)
(c)
(d)
In India, a large number of farmers are illiterate and know little about scientific-agriculture methods. Prices of primary products are lower than those of manufactured products and investment in agriculture has been lower when compared to investment in the industry.
All these reasons are responsible for lower rural income.
Q-10) One of the problems in calculating National Income in India is
(a)
(b)
(c)
(d)
Q-11) Which among the following sectors contribute most to GDP of India?
(a)
(b)
(c)
(d)
Q-12) The first measure of India’s National Income was made by
(a)
(b)
(c)
(d)
Q-13) Who coined the term ‘Hindu rate of growth’ for Indian economy?
(a)
(b)
(c)
(d)
The term was coined by Indian economist Raj Krishna.
The Hindu rate of growth is a derogatory term referring to the low annual growth rate of the socialist economy of India before 1991, which stagnated around 3.5% from the 1950s to the 1980s.
Q-14) One of the reasons for India’s occupational structure remaining more or less the same over the years has been that : - invest pattern has been directed towards capital intensive industries
- productivity in agriculture has been high enough to induce people to stay with agriculture
- ceiling on land holdings have enabled more people to own land and hence their preference to stay with agriculture
- people are largely unaware of the significance of transition from agriculture to industry for economic development
Find out the correct option from the code :
(a)
(b)
(c)
(d)
The gap between poor and rich will be wide and it must be increase when their investment lean towards capital sector. They only prefer profit.
Q-15) Which of the following is definitely a major indication of the state of the economy of a country?
(a)
(b)
(c)
(d)
Rate of GDP growth is a major indication of the state of the economy of a country. Economic growth is the increase in the market value of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in gross domestic product.
Q-16) The reason in difference between GNP and GDP is
(a)
(b)
(c)
(d)
NIFA = GNP - GDP
NIFA: refers to the net flow of property income to and from the rest of the world plus the net flow of compensation of employer.
Q-17) Which one of the following is not a constituent of Human Development Index?
(a)
(b)
(c)
(d)
Q-18) In terms of economics, the total value of the output (goods and services) produced and income received in a year by a domestic resident of a country put together is called
(a)
(b)
(c)
(d)
GNP is the total value of all final goods and services produced within a country in a particular year, plus income earned by its citizens (including income of those located abroad), minus income of non-residents located in that country.
GNP measures the value of goods and services that the country’s citizens produced regardless of their location.
Gross National Income - It is total domestic and foreign output claimed by residents of a country consisting of GDP plus factor income earned by foreign residents minus income earned in the domestic income by nonresidents.
Q-19) Per capita income is obtained by dividing national income by
(a)
(b)
(c)
(d)
Per capita income is obtained by dividing national income by the total population of the country per capita income, also known as income per person, is the mean income of the people in a country.
It is calculated by taking a measure of all sources of income in the aggregate (such as GDP or Gross national income) and dividing it by the total population.
Q-20) It will be true to classify India as
(a)
(b)
(c)
(d)
India is a labour-surplus economy because in India there is disguised unemployment along with under-employment which means that a qualified, skilled workforce willing to work is available but there are not enough employment opportunities.
Trade Surplus Economy - Economic measure of positive Balance of trade where a country’s export exceed its imports. Surplus Labour is a concept used by Karl Marx in his critique of political economy.
Capital Surplus - It is equity that cannot otherwise be classified as capital stock or retained earnings.