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

Answer: (a)

In free economy, inequalities in income is due to private property and inheritance.

Answer: (c)

Answer: (a)

Structural unemployment is a form of unemployment resulting from a mismatch between demand in the labour market and the skills and locations of the workers seeking employment.

Structural unemployment is a result of the dynamics of the labour market, such as agricultural workers being displaced by mechanized agriculture, unskilled labourers displaced by both mechanization and automation, or industries with declining employment.

Many of these displaced workers are “left behind” due to costs of training and moving (e.g., the cost of selling one’s house in a depressed local economy), inefficiencies in the labour markets, such as discrimination or monopoly power, or because they are unsuited for work in growing sectors such as health care or high technology.

Answer: (b)

The Gadgil formula was evolved in 1969 for determining the allocation of central assistance for state plans in India. It was adopted for distribution of plan assistance during Fourth and Fifth Five Year Plans.

It was named after the then deputy chairman of the Planning Commission Dr D R Gadgil.

Answer: (d)

Antyodaya Anna Yojana (AAY) is a centrally sponsored scheme launched on December 2000 for one crore of the poorest families. It is on the lookout for the ‘poorest of the poor’ by providing them 35 kilos of rice and wheat at Rs.2 per kg.

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.