introduction to indian economy section 8 MCQ Questions & Answers Detailed Explanation
MOST IMPORTANT indian economy mcq - 14 EXERCISES
-
Top 500+ Basic Indian Economy GK MCQ Quiz For SSC IBPS »
-
New Indian Economy GK MCQ Quiz PDF For UPSC/IAS Prelims »
-
Basic Indian Economy Concepts MCQs Quiz For RRB NTPC Exam »
-
New 499+ Fundamentals of Indian Economy MCQ Quiz For IBPS »
-
555+ Indian Economy Concepts Basics Fundamentals MCQ Quiz »
-
Top 500+ Indian Economy GK MCQs Quiz PDF For SSC UPSC RRB »
-
New 499+ Indian Economy GK Question And Answers Quiz PDF »
-
Best 500+ Indian Economy General Knowledge MCQ Quiz PDF »
-
500+ Indian Economy General Studies Online MCQ Quiz PDF »
-
New 500+ Indian Economy Basic Static GK MCQ Quiz For IBPS »
-
500+ Introduction to Indian Economy GK MCQ Quiz For SSC »
-
800+ Latest Indian Economy GK Questions & Answers MCQ PDF »
-
1000+ Indian Economy GK Questions And Answers Quiz PDF »
-
1000+ Indian Economy Basic Concepts GK MCQ PDF For SBI PO »
The following question based on Introduction to Indian Economy topic of indian economy mcq
(a) GNP minus depreciation allowances
(b) GDP minus subsidies plus indirect taxes
(c) NNP plus depreciation allowances
(d) GDP minus indirect taxes plus subsidies
The correct answers to the above question in:
Answer: (d)
GDP at factor cost is GDP at market price minus indirect taxes plus subsidies. GDP at factor cost measure the value of output in terms of what it really costs to produce.
However, adjustments have to be made for government subsidies to firms that make up market prices purchasers pay so price plus subsidy represent the true income to the factor of production.
Therefore, We can value domestic output at prices received by producers after indirect taxes and subsidies have been taken into account.
Discuss Form
Read more introduction Based Indian Economy Questions and Answers
Question : 1
Identify the Navratna Company in the following
a) Infosys
b) ICICI Bank
c) HPCL Ltd
d) Air India
Answer »Answer: (c)
Navratna was the title given originally to nine Public Sector Enterprises (PSEs) identified by the Government of India in 1997 as “public sector companies that have comparative advantages”, giving them greater autonomy to compete in the global market so as to “support [them] in their drive to become global giants”.
The number of PSEs having Navratna status has been raised to 16, the most recent addition being Oil India Limited.
The list of such companies is:
- Bharat Heavy Electricals Limited;
- Bharat Electronics Limited;
- Bharat Petroleum Corporation Limited;
- Hindustan Aeronautics Limited;
- Hindustan Petroleum Corporation Limited;
- Mahanagar Telephone Nigam Limited;
- National Aluminium Company Limited;
- National Mineral Development Corporation Limited;
- Neyveli Lignite Corporation Limited;
- Oil India Limited;
- Power Finance Corporation Limited;
- Power Grid Corporation of India Limited;
- Rashtriya Ispat Nigam Limited;
- Rural Electrification Corporation Limited;
- Shipping Corporation of India Limited;
- GAIL (India) Limited.
Question : 2
Arrange the following stages of population growth in chronological order
- population explosions
- low birth rates and low death rates
- stable or slow population growth
a) 3, 1, 2
b) 3, 2, 1
c) 1, 2, 3
d) 1, 3, 2
Answer »Answer: (a)
The first stage of stable or slow population growth:
The growth of the population was slow due to the high death rate which nullified the high birth rate. In this stage, these economies were primitive and primarily agrarian, with widespread illiteracy, poor sanitation and health care conditions, negligible knowledge of family planning and large family sizes which contributed to factors such as high fertility rate and high death rate.
In the period between the first and the second stages, the death rates start reducing and birth rates remain stable which brings an imbalance in the economy. Measures like diseases control, improving nutrition levels, and sanitation improvement are implemented to reduce death rates, but the measures for controlling birth rates are not implemented, which results in a population explosion. This required a period of transition for adjustment, thus bringing the second stage of transition.
The second stage of population explosions:
In this stage rise in income levels contributed to improvement in health care, education, disease control and so on which in turn contributed to reducing the death rates. This accelerated the growth of the population. The family size reduced and improved trade and economic conditions resulted in more food and better food habits which further helped the population to grow at a much higher rate than in the first stage. The demographic changes brought imbalances in the economy, creating conditions for further transition of society.
The third stage of low birth rates and low death rates:
Modernization and industrialization changed the living pattern in such nations, the rural population shifted to cities and family sizes were reduced to become nuclear families. The standard of living increased which further brought down mortality rates and birth rates. As a result, the growth of the population declined.
Question : 3
Merchant Banking is an institution which provides finances to :
a) international trade among countries
b) domestic whole sale trade
c) domestic retail trade among
d) international aid agencies.
Answer »Answer: (a)
A merchant bank is a financial institution which provides capital to companies in the form of share ownership instead of loans. It is a bank that deals mostly in (but is not limited to) international finance, long-term loans for companies and underwriting. Merchant banks do not provide regular banking services to the general public.
Question : 4
The financial capital of India is
a) Chennai
b) Mumbai
c) Delhi
d) Chandigarh
Answer »Answer: (b)
Mumbai is the commercial capital of India. It is one of the world's top 10 centres of commerce in terms of global financial flow, generating 5% of India's GDP, and accounting for 25% of industrial output, 70% of maritime trade in India (Mumbai Port Trust & JNPT), and 70% of capital transactions to India's economy.
The city houses important financial institutions such as the Reserve Bank of India, the Bombay Stock Exchange, the National Stock Exchange of India, the SEBI and the corporate headquarters of numerous Indian companies and multinational corporations.
Question : 5
With reference to Indian economy, consider the following statements:
- The rate of growth of Real Gross Domestic Product has steadily increased in the last decade.
- The Gross Domestic Product at market prices (in rupees) has steadily increased in the last decade.
a) 2 only
b) Both 1 and 2
c) 1 only
d) None of these
Answer »Answer: (b)
Both statements are correct.
Question : 6
Gilt-edged market means :
- bullion market
- market of government securities
- market of guns
- market of pure metals
a) 4 and 3 only
b) 1 and 3 only
c) 2 only
d) 3 only
Answer »Answer: (c)
Gilts are bonds issued by certain, national governments. The term is of British origin and originally referred to the debt securities issued by the Bank of England, which had a gilt (or gilded) edge.
Hence, they are called gilt-edged securities, or gilts for short. The term is also sometimes used in Ireland and some British Commonwealth Countries, South Africa and India.
The term “Gilt Account” is also a term used by the RBI of India to refer to a constituent account maintained by a custodian bank for maintenance and servicing of dematerialised Government Securities owned by a retail customer.
GET Introduction to Indian Economy PRACTICE TEST EXERCISES
introduction to indian economy section 1
introduction to indian economy section 2
introduction to indian economy section 3
introduction to indian economy section 4
introduction to indian economy section 5
introduction to indian economy section 6
introduction to indian economy section 7
introduction to indian economy section 8
introduction to indian economy section 9
introduction to indian economy section 10
introduction to indian economy section 11
introduction to indian economy section 12
introduction to indian economy section 13
introduction to indian economy section 14
Introduction to Indian Economy Shortcuts and Techniques with Examples
Verbal Reasoning
Question & Answer Quiz
Non Verbal Reasoning
Question & Answer Quiz
Quantitative Aptitude
Question & Answer Quiz
Computer MCQ
Question & Answer Quiz
General English
Question & Answer Quiz
History GK
Question & Answer Quiz
Polity GK
Question & Answer Quiz
Geography GK
Question & Answer Quiz
Economy GK
Question & Answer Quiz
General Awareness GK
Question & Answer Quiz
Recently Added Subject & Categories For All Competitive Exams
Syllogism Practice Questions Answers PDF - IBPS Clerk 2024
Practice Verbal Reasoning Syllogism multiple choice questions and answers with Fully solved explanation, PDF for the IBPS Clerk Prelims 2024 Bank Exam
Continue Reading »
IBPS Clerk Prelims 2024 Synonyms Questions Solved Answers
Most important IBPS Clerk Prelims 2024 Synonyms and Antonyms multiple choice questions and answers with detailed solutions, English vocabulary PDF Download
Continue Reading »
New Cloze Test Questions and Answers PDF - IBPS Clerk 2024
The most important Cloze Test questions with detailed answers for upcoming IBPS Clerk prelims 2024. Latest English verbal ability practice MCQs, PDF
Continue Reading »
Mensuration Aptitude Practice Mcq Questions IBPS Clerk 2024
Most Important Practice Mensuration aptitude multiple choice questions, answers with detailed solutions, PDF beginner to advanced for IBPS Clerk Prelims 2024
Continue Reading »