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

Answer: (b)

A fiscal deficit refers to a situation when a government’s total expenditures exceed the revenue that it generates (excluding money from borrowings). Deficit differs from debt, which is an accumulation of yearly deficits. A fiscal deficit is regarded by some as a positive economic event.

For example, economist John Maynard Keynes believed that deficits help countries climb out of economic recession. On the other hand, fiscal conservatives feel that governments should avoid deficits in favour of a balanced budget policy.

Answer: (a)

The responsibility for coinage lies with central government on the basis of the Coinage Act, 1906. The designing and minting of coins in various denominations is decided by Central government.

Answer: (b)

Social accounting is a method by which a firm seeks to place a value on the impact on society of its operations. It is a systematic analysis of the effects of the organisation on its shareholders, with stakeholder input as part of the data that are analysed for the accounting statement.

One social accounting system primarily attempts to measure National Income, final product, consumption and accumulation of capital.

Answer: (a)

Answer: (c)

The Government launched Kutir Jyoti Programme on the occasion of Nehru Centenary Year (1988-89) for extending single point light connection to the households of rural poor families below the poverty line.

These were to include Harijan and tribal families. The programme had come under criticism for rampant increase in transmission & distribution (T&D) losses.

Answer: (b)