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

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: (a)

When the prices of commodities, goods and services start declining consistently, the phenomenon is known as deflation. Deflation is because of a fall in the aggregate level of demand.

That is, there is a fall in how much the whole economy is willing to buy and the price for goods. Because the price of goods is falling, consumers have an incentive to delay purchases and consumption until prices fall further, which in turn reduces overall economic activity.

Since this idles the productive capacity, investment also falls, leading to further reductions in aggregate demand.

Answer: (b)

Lately, the manufacturing industry has been witnessing positive overall growth across the spectrum. This can be said on the basis of the Industrial Outlook survey that was conducted by the Reserve Bank of India (RBI) for 2010 on the Indian manufacturing sector.

As per UNIDO’s new report titled ‘Yearbook of Industrial Statistics 2010’, India has emerged as one of the world’s top 10 countries in industrial production, while as per the report ‘2010 Global Manufacturing Competitiveness Index’, by Deloitte Touche Tohmatsu and the US Council on Competitiveness, India has ranked second for its manufacturing competence.

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.