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

Question : 1

GDP deflator is used to :

a) measure the inflation in a country.

b) compare the GDP of a country vis a vis other countries of the world.

c) measure the relative reduction in GDP growth rate of a country.

d) estimate the purchasing power of the citizen of a country.

Question : 2

ICI is the name associated with

a) Indian Cement Industry

b) a MNC which manu-factures chemicals

c) Chamber of Commerce and Industry

d) a private sector bank

Question : 3

Which one is not the main objective of fiscal policy in India?

a) To promote price stability

b) To increase liquidity in the economy

c) To minimize the inequalities of income & wealth

d) To promote employment opportunity

Question : 4

Among the socio-economic factors responsible for the high birth rate in India we may include

1. large scale poverty
2. high mortality rate of children of poor parents
3. prevalence of child marriage
4. adverse sex ratio

a) 1, 2 and 4

b) 2, 3 and 4

c) 1 and 2

d) 1, 2 and 3

Question : 5

In free economy, inequalities in income is due to

a) private property and inheritance

b) private property only

c) differences in the marginal productivity of labour

d) free competition

Question : 6

Tick the correct option with regards to the contribution towards GDP (Gross Domestic Product) from Agriculture

a) During 1950-51 (GDP 11-00%) and 2011-12 (GDP 25%)

b) During 1950-51 (GDP 51-88%) and 2011-12 (GDP 14-01%)

c) During 1990-91 (GDP 29-53%) and 2011-12 (GDP 66-77%)

d) During 1980-81 (GDP 35-69%) and 2011-12 (GDP 20-69%)