introduction to indian economy section 8 MCQ Questions & Answers Detailed Explanation

Answer: (b)

2, 3, 1, i.e. High birth rate with high death rate, High birth rate with low death rate, Low birth rate with low death rate.

Answer: (d)

The fiscal deficit is the difference between the government’s total expenditure and its total receipts (excluding borrowing).

The elements of the fiscal deficit are

1. the revenue deficit, which is the difference between the government’s current (or revenue) expenditure and total current receipts (that is, excluding borrowing) and
2. capital expenditure.

The fiscal deficit can be financed by borrowing from the Reserve Bank of India (which is also called deficit financing or money creation) and market borrowing (from the money market that is mainly from banks).

Answer: (c)

Indira Gandhi was the only woman who took over the Finance portfolio from 1970 to 1971. She presented the Union Budget in these years.

Answer: (d)

Human Development Report the HDI combines three dimensions:

1. A long and healthy life: Life expectancy at birth,
2. Education Index: Mean years of schooling and Expected years of schooling and
3. A decent standard of living: GNI per capita (PPP US$).

Answer: (c)

A “subsistence” or necessary level of consumption produces differences in consumption growth rates across income levels. This implies that poor households have lower saving rates because they cannot “afford to save” after buying the necessities.

The institutional and behavioural mechanism also leads to low levels of saving among the poor.

Answer: (a)

India has rapidly diversified its exports markets from the traditional export partners towards emerging and developing economies. This has played a crucial role in cushioning India’s exports growth during recent years, which has remained fairly steady despite the global economic slowdown.

The rapid diversification of India’s export destinations is encouraging. The widely spreading export markets can be noted from the narrowing dependence on selected economies for exports.