introduction to indian economy section 5 MCQ Questions & Answers Detailed Explanation

Answer: (c)

The Constitution allocates the taxation of agricultural income to states. Lan revenue is a major source of revenue for states in India.

For purpose of revenue management, a State is divided into various districts, each in the charge of a Deputy Commissioner, also known as Collector indicating his responsibility for the realization of all Government revenues.

Answer: (b)

C. Rangrajan panels have recently recommended the pricing of natural gas by a complex methodology of arriving at an average of international gas hub prices to replace current gas prices.

Answer: (c)

GDP deflator is an economic metric that accounts for inflation by converting output measured at current prices into constant-collar GDP. The GDP deflator shows how much a change in the base year’s GDP relies upon changes in the price level.

Answer: (c)

The per capita income of a country is derived from both National income and population both. Per capita income is obtained by dividing national income by the total population of the country. Per capita income, also known as income per person, is the mean income of the people in a country.

It is calculated by taking a measure of all sources of income in the aggregate (such as GDP or Gross national income) and dividing it by the total population.

Answer: (c)

The Government of India issued an ordinance (‘Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969’)) and nationalised the 14 largest commercial banks with effect from the midnight of July 19, 1969.

These banks contained 85 per cent of bank deposits in the country. A second dose of nationalization of 6 more commercial banks followed in 1980. As of now, there are 26 Nationalized Banks in India.

Note: As of 2017, There are 21 Nationalized Bank in India. These are Allahabad Bank, Andhra Bank, Bank of India, Bank of Baroda, Bank of Maharashtra, Canara Bank, Central Bank of India, Corporation Bank, Dena Bank, Indian Bank, Indian Overseas Bank, IDBI Bank, Oriental Bank of Commerce, Punjab & Sindh Bank, Punjab National Bank, State Bank of India, Syndicate Bank, UCO Bank, Union Bank of India, United Bank of India, Vijaya Bank.

Answer: (c)

India is a labour-surplus economy because in India there is disguised unemployment along with underemployment which means that qualified, skilled workforce willing to work is available but there are not enough employment opportunities.