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

Answer: (d)

LIC (Life Insurance Corporation, India) introduces its pension plan to offer individuals regular income during their old age. Pension also well-known as retirement plans are predominantly intended for the citizens who are disposed to make their old age financially secure.

Jeevan Kishore is a children’s plan under which the child becomes the owner of the policy automatically at the age of 18 yeaRs.Jeevan Chhaya is beneficial for a partner having less than a year old child (not an adopted child).

It makes provision for higher education/marriage of the child. Jeevan Sanchay is a without profit money-back plan available for the age group between 14 years and 58 yeaRs.LIC’s Jeevan Akshay- VI is a pension plan for people who are at present in their retirement age and have no pension.

Under this policy, LIC will pay the policyholders a reliable payment at normal time periods starting right after the holder pays a lump sum premium towards the cost of the policy. The annuitant can accept the payment as per his aspiration either monthly, quarterly, half-yearly or yearly.

Answer: (b)

Dadabhai, known as the Grand old man, wrote the book ‘Poverty and Un-British Rule in India’ describing the theory of economic drain of India during British rule.

Answer: (b)

The Indian Institute of Foreign Trade (IIFT) is an autonomous public business school established in 1963 by the government of India to help professionalize the country’s foreign trade management and increase exports by developing human resources, generating, analyzing and disseminating data. It is located in New Delhi, India.

Answer: (d)

The National Development Council (NDC) or the Rashtriya Vikas Parishad is the apex body for decision making and deliberations on development matters in India, presided over by the Prime Minister.

The functions of the Council are

1. to prescribe guidelines for the formulation of the National Plan;
2. to consider the National Plan as formulated by the NITI Aayog;
3. to consider important questions of social and economic policy affecting national development; and
4. to review the working of the Plan from time to time and to recommend such measures as are necessary for achieving the aims and targets set out in the National Plan.

Answer: (d)

According to Prof. Kindleberger, Todaro, Lewis and Nurkse etc., agriculture makes its contribution to economic development in several ways, viz.,

By providing food and raw material to non-agricultural sectors of the economy,

By creating demand for goods produced in non-agricultural sectors, by the rural people on the strength of the purchasing power, earned by them on selling the marketable surplus,

By providing investable surplus in the form of savings and taxes to be invested in non-agricultural sector,

By earning valuable foreign exchange through the export of agricultural products, etc.

Answer: (c)

During the last decade, the tertiary sector has shown remarkable expansion. The economy is divided into three sectors on the basis of activities–primary, secondary and tertiary.

Primary sector is involved in agriculture, the secondary sector is involved in manufacturing, mining, construction while the tertiary sector is involved in trade, transport, communication, banking & other services. In the last decade, India has expanded maximum in providing services like IT, Telecommunication, Healthcare, Tourism which is contributing around 60% to GDP.