introduction to indian economy section 7 MCQ Questions & Answers Detailed Explanation

Answer: (b)

Disguised unemployment exists where part of the labour force is either left without work or is working in a redundant manner where worker productivity is essentially zero.

It is unemployment that does not affect aggregate output. When more people are engaged in a job than actually required, a state of disguised unemployment is created.

Disguised, or hidden, unemployment is primarily found in the agricultural and the unorganized sectors of rural India.

Answer: (d)

The Tenth Finance Commission was incorporated in the year 1995 consisting of Shri Krishna Chandra Pant as the Chairman. The operational duration of the Commission was 1995-2000.

Note : The chairman of 14th and current finance commission is former RBI governor Y.V.Reddy.

Answer: (d)

The gap between poor and rich will be wide and it must be increase when their investment lean towards capital sector. They only prefer profit.

Answer: (a)

Headline inflation also called WPI inflation is a measure of the total inflation within an economy and is affected by areas of the market which may experience sudden inflationary spikes such as food or energy.

As a result, headline inflation may not present an accurate picture of the current state of the economy as it doesn’t take account of the service sector.

Answer: (a)

The Voluntary Severance Scheme (VSS) is popularly known as Golden Hand Shake. It is a stipulation in an employment agreement that states that the employer will provide a significant severance package if the employee loses their job.

A golden handshake is usually provided to top executives for loss of employment through layoffs, firing or even retirement.

Answer: (a)