introduction to indian economy section 4 MCQ Questions & Answers Detailed Explanation

Answer: (c)

In a bid to make AIDS prevention a mission, the Employees’ State Insurance Corporation of India (ESIC) announced the launch of ‘Project Sankalp’ for strengthening ESIC’s intervention on HIV/AIDS and Family welfare at Mangalore, Karnataka, on 17 August 2008.

It aimed at counselling and treatment to ESIC beneficiaries affected with HIV in the State.

Answer: (b)

National income is also computed by the expenditure approach wherein the focus is on finding the total output of a nation by finding the total amount of money spent.

As per this approach,

GDP = C+I+G+ (X-M)

where, C = household consumption expenditures / personal consumption expenditures;

I = gross private domestic investment;

G = government consumption and gross investment expenditures;

X = gross exports of goods and services; and

M = gross imports of goods and services.

(X - M) is often written as XN, which stands for "net exports".

Answer: (b)

Maruti Udyog Ltd. came into being in the year 1982 when Suzuki Motor Corporation (SMC) entered into a joint venture with the Government of India to manufacture fuel-efficient passenger cars under the brand name Maruti.

Maruti cars, based on the Japanese philosophy for super-efficient manufacturing, brought about the renaissance of the Indian components industry.

Answer: (c)

NABARD provides its refinance for the promotion of agriculture in India.

Answer: (d)

Austerity describes policies used by governments to reduce budget deficits during adverse economic conditions. These policies may include spending cuts, tax increases.

This is done in an economic crisis situation to improve the credit rating of the countries going through adverse economic conditions.

Answer: (a)

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.