introduction to indian economy section 11 MCQ Questions & Answers Detailed Explanation

Answer: (a)

In a first-of-its-kind move in the country, Kerala, in July 2016, introduced a ‘fat tax’ on the consumption of junk food items like pizzas and burgers sold through branded restaurants.

The state government imposed a 14.5% tax on branded restaurants selling items like tacos, pizzas, burgers, sandwiches, among others.

Answer: (d)

Basel III (or the Third Basel Accord) is a global, voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity risk.

So all the given statements are correct.

Answer: (b)

The Command Area Development Programme was launched in the year 1974-75 under Centrally Sponsored Scheme, with the objective of fast utilization of created irrigation potential and optimum agriculture production from irrigable land.

It aimed at:

1. reclamation of waterlogged areas;
2. construction of field irrigation channels;
3. construction of field drains;
4. all-around development of areas pertaining to agriculture, etc.

Answer: (b)

The exchange rate can be defined as the value of one currency in terms of another. India follows a floating exchange rate system for the determination of the exchange rate.

A floating exchange rate system can be defined as a system where the exchange rate between currencies is not fixed but keep fluctuating, as they are determined by the demand and supply for the domestic currency in the international market.

India has been operating on a managed floating exchange rate regime since March 1993, marking the start of an era of a market-determined exchange rate regime of the rupee with provision for timely intervention by the central bank.

Answer: (a)

National income measures the net value of goods and services produced in a country during a year and it also includes net earned foreign income.

Answer: (d)

The service sector is one of the three economic sectors. it includes:

1. telecommunication,
2. hospitality industry/tourism,
3. mass media,
4. healthcare/ hospitals,
5. information technology,
6. banking,
7. insurance,
8. investment management,
9. accountancy,
10. legal services,
11. consulting,
12. retail sales,
13. real estate,
14. education.

The maximum contribution to national income comes from the service sector which contributes around 60%.