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

Answer: (c)

In the parlance of economy, Gild-edged market is called market of safe securities. “Gildedged” denotes high-grade securities, consequently carrying low yields.

Answer: (a)

Interest payments are the single largest item of expenditure. They account for more than 40% of the total non-development expenditure.

These items of expenditure are charged on the Consolidated Fund of India and are not required to be voted by the Lok Sabha.

Answer: (d)

The Special Economic Zones Rules are associated with the year 2006, though the policy was announced in 2000. The Special Economic Zones Rules, 2006 came into effect on 10 February 2006.

The amendment Rules provided for the simplification of procedures for development, operation, and maintenance of the Special Economic Zones and for setting up and conducting business in SEZ.

Answer: (a)

A mixed economy is an economic system in which both the state and private sector direct the economy, reflecting characteristics of both market economies and planned economies.

The basic idea of the mixed economy is that the means of production are mainly under private ownership; that markets remain the dominant form of economic coordination; and that profit-seeking enterprises and the accumulation of capital remain the fundamental driving force behind economic activity.

However, unlike a free-market economy, the government would wield considerable indirect influence over the economy through fiscal and monetary policies.

Answer: (a)

Gross Domestic Product (GDP) is a measure of the total value of the goods and services produced in a country during one year, excluding income from investment abroad by residents of the country. It is the Gross National Product less net income from property or investment abroad.

Answer: (a)

Geographical Indication (GI) means the name of a region or a locality, a specific place or, in exceptional cases, a country, used to describe a product originating in that region, locality, specific place or country, which possesses a specific quality, reputation or other characteristics attributable to that geographical origin, and the production and/or processing and/or preparation of which take place in the defined geographical area.