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

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: (d)

Megacities of India have more than 5 million population. But not all the major megacities are located on the sea coast or are sea ports. Delhi, which is the national capital is not a sea port.

Answer: (b)

Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank.

An increase in CRR means that banks have fewer funds available and money is sucked out of circulation; on the contrary, reduction in CRR leads to credit creation. CRR is used by RBI to control liquidity in the banking system.

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: (c)

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.