introduction to indian economy section 10 MCQ Questions & Answers Detailed Explanation

Answer: (b)

NABARD doesn’t give “direct” credit assistance.

It provides credit via intermediaries such as microfinance companies, co-operative society, RRB.

Therefore, 2 is false.

Answer: (a)

The National Bank for Agriculture and Rural Development (NABARD) is the apex development Bank for agriculture and rural development. It was set up on July 12, 1982.

Answer: (d)

Per capita income is obtained by dividing national income by the total population of the country per capita income, also known as income per person, is the mean income of the people in a country.

It is calculated by taking a measure of all sources of income in the aggregate (such as GDP or Gross national income) and dividing it by the total population.

Answer: (b)

Different types of economy are dependent on time which helps in providing several ways to structure an economy.

Answer: (d)

Expenditure incurred on the non-development plans is called non-plan expenditure which includes subsidies, interest payments etc.

Non-plan revenue expenditure is accounted for by,

1. interest payments,
2. subsidies,
3. wage and salary payments to government employees,
4. grants to States and Union Territories governments,
5. pensions,
6. police,
7. economic services in various sectors,
8. other general services such as tax collection,
9. social services, and grants to foreign governments.

Non-plan capital expenditure mainly includes,

1. defence,
2. loans to public enterprises,
3. loans to States, Union Territories and foreign governments.

Answer: (c)

The taxing powers of the central government encompass taxes on income (except agricultural income), excise on goods produced (other than alcohol), customs duties, and inter-state sale of goods.

The authority to levy a tax is coming from the Constitution which allocates the power to levy various taxes between the Centre and the State.