introduction to indian economy section 6 MCQ Questions & Answers Detailed Explanation

Answer: (d)

In India, there are some regulations and restrictions with regard to establishing industries in certain categories. This is done by making it mandatory to obtain licenses before setting up such an industry.

The Licence Raj continued till 1991 (liberalization was introduced) as a result of India’s decision to have a planned economy where all aspects of the economy are controlled by the state and licences are given to a select few.

Up to 80 government agencies had to be satisfied before private companies could produce something and, if granted, the government would regulate production. The Industrial Policy Resolution 1956 aimed at the removal of regional disparities through the development of regions with low industrial bases.

The Indian economy was then guided by the socialistic model of planned development rather than being guided by profit.

Answer: (d)

The Gujarat government, on 22 May 2014, launched the Smart Village programme to improve public facilities in villages. The objective of the programme is to make villages self-reliant, clean, and hygienic.

It has been conceptualized on the lines of the Smart Cities initiative of the Union Government under which 100 cities were chosen for infrastructure development.

Answer: (d)

National Income ignores sale of land.

Answer: (a)

Dadabhai Naoroji prepared the first estimates of National income in 1876. He estimated the national income by first estimating the value of agricultural production and then adding a certain percentage as non-agricultural production.

Answer: (d)

A non-bank financial institution (NBFI) is a financial institution that does not have a full banking license or is not supervised by a national or international banking regulatory agency.

LIC is an example of a NonBanking Financial institution.

Answer: (b)

Stagflation is a condition of slow economic growth and relatively high unemployment.

It is accompanied by a rise in prices, or inflation. Stagflation occurs when the economy isn’t growing but prices are increasing, which is not a good situation for a country to be in.