introduction to indian economy section 3 MCQ Questions & Answers Detailed Explanation

Answer: (a)

Navratna was the title given originally to nine Public Sector Enterprises (PSEs) identified by the Government of India in 1997 as “public sector companies that have comparative advantages”, giving them greater autonomy to compete in the global market so as to “support [them] in their drive to become global giants”.

The number of PSEs having Navratna status has been raised to 16, the most recent addition being Oil India Limited.

Answer: (d)

The Department of Posts, trading as India Post, is a government-operated postal system in India. Owing to its far-flung reach and its presence in remote areas, the Indian postal service is involved in other services such as small savings banking and financial services.

The post office has offered and continues to offer various savings schemes, including National Savings Certificates, the Public Provident Fund, Savings Bank Accounts, Monthly Income Schemes, Senior Citizen Saving Schemes, and Time Deposit Accounts.

Small savings accounts in rural post offices were a keystone to the department’s policy and the department had the largest number of savings accounts across the country.

Answer: (d)

Expenditure incurred on the non-development plans is called non-plan expenditure, which includes subsidies, interest payments, etc.

Non-plan revenue expenditure is accounted for by,

1. interest payments,
2. subsidies,
3. wage and salary payments to government employees,
4. grants to States and Union Territories governments,
5. pensions,
6. police, and economic services in various sectors,
7. other general services, such as tax collection, social services, and grants to foreign governments.

Non-plan capital expenditure mainly includes defence, loans to public enterprises, loans to states, Union territories and foreign governments.

Answer: (b)

The poverty line in India defines a threshold income; households earning below this threshold are considered poor.

In 2011, the Suresh Tendulkar Committee defined the poverty line on the basis of monthly spending on food, education, health, electricity and transport.

According to this estimate, a person who spends Rs.27.2 in rural areas and Rs.33.3 in urban areas a day are defined as living below the poverty line.

Answer: (c)

Answer: (c)

Commercial agriculture is the large-scale production of crops for sale, intended for widespread distribution to wholesalers or retail outlets.

In commercial farming crops such as wheat, maize, tea, coffee, sugarcane, cashew, rubber, banana, and cotton are harvested and sold into world markets.