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

Answer: (d)

The income approach equates the total output of a nation to the total factor income received by residents or citizens of the nation.

The main types of factor income are:

1. Employee compensation (cost of fringe benefits, including unemployment, health, and retirement benefits);
2. Interest received net of interest paid;
3. Rental income (mainly for the use of real estate) net of expenses of landlords; and
4. Royalties paid for the use of intellectual property and extractable natural resources.

All remaining value-added generated by firms is called the residual or profit. If a firm has stockholders, they own the residual, some of which they receive as dividends.

Profit includes the income of the entrepreneur - the businessman who combines factor inputs to produce a good or service.

Answer: (c)

Himayat is a training-cum-placement programme for unemployed youth in Jammu and Kashmir. Under the program, the youth of the state will be provided short-term training for at least 3 months, in a range of skills for which there is good market demand.

The scheme aims to train 1,00,000 youth in 5 years and provide at least 75% of them with jobs.

Answer: (b)

It will remain the same, because banks do not increase the national income. So it remains the same immaterial whether banks are there or not.

Answer: (d)

A scheduled bank, in India, refers to a bank that is listed in the 2ndSchedule of the Reserve Bank of India Act, 1934.

Banks not under this Schedule are called non-scheduled banks. Scheduled banks are usually private, foreign, and nationalized banks operating in India.

Answer: (c)

Open Market Operations (OMO) is the buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system.

Purchases inject money into the banking system and stimulate growth while sales of securities do the opposite.

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.