introduction to indian economy section 1 MCQ Questions & Answers Detailed Explanation

Answer: (d)

An excise or excise tax (sometimes called an excise duty) is a type of tax charged on goods produced within the country (as opposed to customs duties, charged on goods from outside the country).

It is charged on many goods like cars, writing paper, printing paper and packing paper, drugs and pharmaceuticals, alcoholic liquor, water filtration and purification devices, pan masala, etc.

Answer: (d)

The total of national income measures the flow of goods and services in an economy.

The increasing population of India hinders the growth and progress of country.

The National Commission on Population was constituted on May 11, 2000 under the Chairmanship of the Prime Minister Shri Atal Bihari Vajpayee to provide overall guidance for population stabilisation by promoting synergy between demographic, educational, environmental and development programmes.

Answer: (c)

Under Section 22 of the Reserve Bank of India Act, the Bank has the sole right to issue banknotes of all denominations.

The distribution of one rupee notes and coins and small coins all over the country is undertaken by the Reserve Bank as an agent of the Government. The system as it exists today is known as the minimum reserve system.

Answer: (a)

India, among the countries, has the lowest GDP per capita.

GDP per capita is as follows-

1. India 1509 USD,
2. China 6959 USD,
3. Sri Lanka 3204 USD,
4. Indonesia 3510 USD.

Answer: (b)

The current account deficit is a measurement of a country’s trade in which the value of goods and services it imports exceeds the value of goods and services it exports. An increase in crude oil price and rise in services of import of oil, increase the current account deficit.

However, an increase in export software services will reduce the deficit.

Answer: (c)

India switched over to decimal currency in 1957 with the amendment of the Indian Coinage Act. The rupee remained unchanged in value and nomenclature. It, however, was now divided into 100 ‘Paisa’ instead of 16 Annas.