Practice Quiz set 1 - indian economy mcq Online Quiz (set-1) For All Competitive Exams
Q-1) Yellow Revolution is concerned with the production of
(a)
(b)
(c)
(d)
Q-2) Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs)? - Government intends to use the revenue earned from the disinvestment mainly to pay back the external debt.
- The government no longer intends to retain the managements control of the CPSEs.
Which of the statement(s) given above is/are correct?
(a)
(b)
(c)
(d)
Q-3) Consider the following statements. - Regarding the procurement of food grains, Government of India following a procurement target rather than open-ended procurement policy.
- Government of India announces minimum support prices only for cereals.
- For distribution under Targeted Public Distribution System (TPDS), Wheat and rice are issued by the government of India at uniform central issue prices to the State/Union Territories.
Which of the statement(s) given above is/are correct?
(a)
(b)
(c)
(d)
Q-4) If a factory is running at peak production with certain number of labourers then the marginal productivity of labour will be:
(a)
(b)
(c)
(d)
Marginal productivity of labour = $\text"Change in output"/\text"Change in labour"$
Marginal productivity of labour means how much extra production will increase by adding one extra labour.
When a factory is running at peak production, then its production cannot be increased even by adding more labourers. So, the marginal productivity of labour will be zero.
Q-5) What is/are the recent policy initiative(s) of government of India to promote the growth of manufacturing sector? - Setting up of National Investment and manufacturing Zones.
- Providing the benefits of ‘single window clearance’.
- Establishing the technology acquisition and development fund.
Select the correct answer using the codes given below.
(a)
(b)
(c)
(d)
Q-6) Public procurement of food grains at support prices insures the following. - Stability in farm prices
- Remunerative prices to the farmers
- Building food stocks for public distribution
Which of the above statements are correct?
(a)
(b)
(c)
(d)
Q-7) Which one of the following is the primary sector of India’s economy?
(a)
(b)
(c)
(d)
Q-8) Actively associated with Green Revolution
(a)
(b)
(c)
(d)
Q-9) Capital formation in a country will necessarily lead to which of the following:
- Increase in ICOR
- Decrease in ICOR
- Economic growth
Select the correct answer using the code given below:
(a)
(b)
(c)
(d)
Capital formation means the production of capital goods. Production of capital goods leads to the future production of goods and services and hence economic growth. So, statement (iii) is true
Production of capital goods increases the capital stock in the economy but does not tell whether there is an increase in efficiency of that capital.
Efficiency is measured as how much output is produced from how much of inputs. So, we can’t say that ICOR will increase or decrease with capital formation.
Basically, if you increase the number of hours you study, still you cannot say that the “number of pages per hour” that you study will increase or decrease.
Q-10) In domestic savings, generally which sector has the highest share?
(a)
(b)
(c)
(d)
Domestic savings consist of Household savings, Corporate (Private) savings and Government (Public) savings.
Household savings (17.2%), Private Corporate (11.6%), Public Sector (1.7%). Total domestic savings around 30.5% in FY 2017-18.
Investment also consists of household, Corporate (Private) and Government (Public). Here household investment includes unregistered/informal business and construction of houses etc.
Household investment (10.5%), Private Corporate (11.5%) and Government (Public) (7.3%). Total fixed capital formation (investment) is 29.3% in 2018-19. The maximum decline in investment in the last 8 years is in household sector from 16% to 10.5%.