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

Answer: (a)

The community development programme was started in India just after independence in 1952. It was a multi project programme with the aim of an overall development of rural people.

Answer: (a)

Answer: (a)

Apart from taxes levied and collected by the States, the Constitution has provided for the revenues for certain taxes on the Union List to be allotted, partly or wholly to the States.

There are taxes that are levied and collected by the Union, but the entire proceeds of which are assigned to the states, in a proportion determined by the Parliament.

These taxes include:

1. Succession and Estate duty;
2. Terminal taxes on goods and passengers;
3. Taxes on railway freight and fares;
4. Taxes on transactions in stock exchanges and
5. future markets; and Taxes on sale and purchase of newspapers and advertisements therein.

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: (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: (a)

At present Indian Rupee is fully convertible on the current account. Current account convertibility means that any company that wants to conduct business with outside companies (like TCS, Infy etc.) can convert the dollar payment into a Rupee payment or pay in terms of the dollar itself.

This is fully allowed in India provided that initial permission is taken from RBI.