Practice Quiz set 11 - indian economy mcq Online Quiz (set-1) For All Competitive Exams
Q-1) Consider the following statements: - Human Development Report is an authoritative annual publication brought out by the World Bank.
- It measures longevity by life expectancy at birth.
- Knowledge is measured by adult literacy rate.
- Standard of living is measured by GDP per capita (US $ PPP)
Which of the following statements is not correct?
(a)
(b)
(c)
(d)
Q-2) In how many denominations is Indian paper currency printed at present ?
(a)
(b)
(c)
(d)
At present, notes in India are issued in the denomination of Rs.5, Rs.10, Rs.20, Rs.50, Rs.100, Rs.500 and Rs.1000. These notes are called banknotes as they are issued by the Reserve Bank of India (Reserve Bank).
The printing of notes in the denominations of Rs.1 and Rs.2 has been discontinued as these denominations have been coined. However, such notes issued earlier are still in circulation.
The printing of notes in the denomination of Rs.5 had also been discontinued.
Q-3) After ONGC, OIC, NTPC and SAIL, the ‘Navratna’ PSU which was awarded ‘Maharatna’ status is
(a)
(b)
(c)
(d)
In April 2011, Coal India Limited (CIL) was conferred the Maharatna status by the Union Government of India.
CIL is an Indian state-controlled coal mining company headquartered in Kolkata. It contributes around 85% of coal production in India.
It is currently 90% owned by the Government of India with the remaining 10% owned by the public.
Q-4) Consider the following statement: - Increase in annual private investment.
- Increase in real national income.
- Increase in real per capita income.
- Increase in net annual investment.
Which among the following is considered to be the best measure of an increase in a country’s economic efficiency?
(a)
(b)
(c)
(d)
Indian economy is increased by real per capita income
Q-5) When was RBI established?
(a)
(b)
(c)
(d)
The Reserve Bank of India (RBI) was founded on 1 April 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934.
Following India’s independence on 15 August 1947, the RBI was nationalised on 1 January 1949.
Q-6) Reserve bank of India was nationalised in :
(a)
(b)
(c)
(d)
The Reserve Bank of India was nationalised on 1 January 1949 under the Reserve Bank (Transfer of Public Ownership) Act, 1948.
Since then, RBI started working as a government-owned central bank of India. It was founded on 1 April 1935.
Q-7) National Income is defined as: - It is the total amount of money government earns through direct tax collection.
- It measures the flow of goods and services in an economy
- It is the total value of stocks held by a country at a particular point of time
(a)
(b)
(c)
(d)
National income measures the net value of goods and services produced in a country during a year and it also includes net earned foreign income.
Q-8) The upper limit of investment in plant and machinery for smallscale industries has been fixed currently at
(a)
(b)
(c)
(d)
The upper limit of investment in plant and machinery for small-scale industries has been fixed at Rs. one crore.
Q-9) With reference to ‘Economics’ which statement is correct? - Economics is an area where people, society and government prioritize their choices in the process of using the infrequent reserves to satisfy the various needs and wants of life.
- Economics is considered an exercise in the spacetime continuum.
- Economics is considered an exercise in the time continuum.
(a)
(b)
(c)
(d)
Economics takes care of various needs and wants of life.
Q-10) Consider the following Statement
- The relationship between population growth and economic development can be explained by the Theory of Demographic Transition for contemporary developed nations.
- The three stages of population growth are stable or slow population growth, population explosions, low birth rates and low death rates.
Select the correct statement using the code given below:
(a)
(b)
(c)
(d)
Population growth directly impacts the Indian economy. The three stages of population growth are:
The first stage of stable or slow population growth:
The growth of the population was slow due to the high death rate which nullified the high birth rate.
In this stage, these economies were primitive and primarily agrarian, with widespread illiteracy, poor sanitation and health care conditions, negligible knowledge of family planning and large family sizes which contributed to factors such as high fertility rate and high death rate. In the period between the first and the second stages, the death rates start reducing and birth rates remain stable which brings an imbalance in the economy.
Measures like diseases control, improving nutrition levels, and sanitation improvement are implemented to reduce death rates, but the measures for controlling birth rates are not implemented, which results in a population explosion. This required a period of transition for adjustment, thus bringing the second stage of transition.
The second stage of population explosions:
In this stage rise in income levels contributed to improvement in health care, education, disease control and so on which in turn contributed to reducing the death rates. This accelerated the growth of the population. The family size reduced and improved trade and economic conditions resulted in more food and better food habits which further helped the population to grow at a much higher rate than in the first stage. The demographic changes brought imbalances in the economy, creating conditions for further transition of society.
The third stage of low birth rates and low death rates:
Modernization and industrialization changed the living pattern in such nations, the rural population shifted to cities and family sizes were reduced to become nuclear families. The standard of living increased which further brought down mortality rates and birth rates. As a result, the growth of the population declined.