Practice National income human development index - indian economy mcq Online Quiz (set-2) For All Competitive Exams
Q-1) Human Poverty Index was developed in the year
(a)
(b)
(c)
(d)
Q-2) National Sample Survey Office (NSSO) was established in the year
(a)
(b)
(c)
(d)
Q-3) Consider the following statements :- In the history of Indian planning, the actual growth rate of the GDP has never been higher than the targeted growth rate.
- In the first five year plan, the actual GDP growth rate was more than the targeted growth rate.
Which of the statements given above is/are correct?
(a)
(b)
(c)
(d)
In the first Five Year Plan, the actual GDP growth rate was more than the targeted growth rate.
Q-4) Harrod-Domar model of growth is based on the concepts of and their equality. - Population and productivity growth.
- Investment and average growth rate of income.
- Actual, warranted and natural growth rate.
- Productivity growth and investment growth. Codes:
(a)
(b)
(c)
(d)
Q-5) In which year was the 20 point economic programme was announced for the very first time?
(a)
(b)
(c)
(d)
The Twenty Point Programme was initially launched by Prime Minister Indira Gandhi in 1975 and was subsequently restructured in 1982 and again in 1986. With the introduction of new policies and programmes, it has been finally restructured in 2006 and it has been in operation at present.
The basic objective of the 20-Point Programme is to eradicate poverty and to improve the quality of life of the poor and the underprivileged population of the country.
Q-6) Consider the following statements:
- Minimum Wages Act is only applicable to the scheduled employments of the centres and the states.
- Minimum Wages Act has allowed discrimination between male and female workers or different minimum wages for them.
Which of the statements given above is/are correct?
(a)
(b)
(c)
(d)
The Minimum Wages Act, 1948 is Indian legislation enacted by the Parliament of India for statutory fixing of minimum wages to be paid to skilled and unskilled labours of centre and state.
Minimum Wages Act does not allow discrimination between male and female workers.
Q-7) Consider the following statements:
- The state sets broad parameters and goals for the economy.
- The targets to be achieved are broadly set by the state.
- The plan is made for the specific time period of about 15 years.
Which of the statements given above is/are correct about the Indicative planning?
(a)
(b)
(c)
(d)
Indicative planning is a form of economic planning implemented by a state in an effort to solve the problem of imperfect information in the market and mixed economies in order to increase economic performance.
Regarding indicative planning, the state sets broad parameters and goals for the economy and the targets to be achieved are broadly set by the state.
Q-8) The ‘activity rate’ of an economy depends upon so many factors, such as :
- School leaving age
- Popularity of higher education
- Social customs
- Retirement age
Code :
(a)
(b)
(c)
(d)
The labour force of an economy is known as the activity rate (also called the participation rate).
It is shown in per cent and always as a proportion of an economy. The concept of the ‘demographic dividend’ is related to this rate.
Q-9) In India, rural incomes are generally lower than the urban incomes. Which of the following reasons account for this?
- A large no. 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 industry:
(a)
(b)
(c)
(d)
In India, a large no. of farmers are illiterate and know little about scientific agriculture. 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) While calculating HDI, the maximum value and minimum value for life expectancy at birth (years) are taken as
(a)
(b)
(c)
(d)
Q-11) Indian economy has witnessed highest growth rate in GDP in the year
(a)
(b)
(c)
(d)
In the year 2006 – 07, the Indian economy has witnessed the highest growth rate in GDP.
The economy grew by 7.7 %. Highest growth rate GDP - in 2010 (10.26%)
Q-12) Which of the following is not included in Human Development Index?
(a)
(b)
(c)
(d)
Q-13) In an open economy, the National Income (y) of the economy is (C, I, G, X, M, Y stand for Consumption, Investment, Government Expenditure, Total Exports, Total Imports and National Income, respectively). Select the correct answer from the following.
(a)
(b)
(c)
(d)
Q-14) To obtain full benefits of demographic dividend, what should India do ? - Promoting skill development
- Introducing more social security schemes
- Reducing infant mortality rate
- Privatisation of higher education
Which of the above statements is/are correct ?
(a)
(b)
(c)
(d)
To rip maximum demographic dividend, India has to promote skill development. This is what Economic Survey and 12th FYP have been advocating.
Q-15) In India, planned economy is based on?
(a)
(b)
(c)
(d)
The planned economy is based on the mixed economy system. The concept of a mixed economy evolved from the ideas of Keynes. The concept of Mixed Economy means that both private enterprises and public enterprises coexist.
However, the condition attached is that the private enterprises must work for serving society rather than having only self-interest. Further, private enterprises may not be allowed in every sector of the economy like areas of national importance. Gandhian Economic order is based on co-operation equality, human values self-sufficient village, nationalisation of basic industries & theory of trusteeship.
A socialistic economic system is characterised by social ownership and democratic control of the means of production.
Capitalist system: It is the system where means of production are owned by private individuals profit is the main motive & there is no interference by the Govt in the economic activity.
Q-16) The effect of a government surplus upon the equilibrium level of NNP [Net National Product] is substantially the same as
(a)
(b)
(c)
(d)
The effect of a government surplus upon the equilibrium level of NNP (Net National Product) is substantially the same as an increase in consumption.
Q-17) The term mixed economy denoted the existence of both
(a)
(b)
(c)
(d)
The concept of a mixed economy evolved from the ideas of Keynes. The concept of a mixed economy means that both private enterprises and public enterprises coexist.
However, the condition attached is that the private enterprises must work for serving society rather than having only self-interest. Further, private enterprises may not be allowed in every sector of the economy like an area of national importance.
There are 3 types of economic systems:-
- Capitalism - the private ownership of the means of production (capital) and a market economy for coordination. As-corporate capitalism
- Mixed Economy Example - American school, Japanese system, Nordic model, Social corporatism etc
- Socialism - In this economic system, two coordinating mechanisms (planning and market) are suspended into a planned socialist and market socialist systems.
Q-18) The National Income of a country is
(a)
(b)
(c)
(d)
National income is the sum total of wages, rent, interest, and profit earned by the factors of production of a country in a year.
Thus it is the aggregate values of goods and services rendered during a given period counted without duplication.
Q-19) Which one of the following is the correct sequence in the decreasing order of contribution of different sectors to the Gross Domestic Product of India?
(a)
(b)
(c)
(d)
Q-20) Which is not included in the private income arising in a country?
(a)
(b)
(c)
(d)
Private income arising in a country does not include current payments on foreign loans.
Private income includes any type of income received by a private individual or household, often derived from occupational activities, or income of an individual that is not in the form of a salary (e.g. income from investments).
Thus private income includes factor income from the net domestic product, net factor income from abroad & current transfers from the government.
Private income = Domestic product accruing to the private sector + Net factor income from abroad + Net other transfer income.