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

Answer: (b)

Generally, the small-scale sector is defined in terms of investment ceilings on the original value of the installed plant and machinery.

As per the Ministry of Micro, Small & Medium Enterprises of India, a small scale industry is an industrial undertaking in which the investment in fixed assets in plant and machinery whether held on ownership terms on lease or on hire purchase does not exceed Rs 10 million.

Fixed capital investment in a unit has been adopted as criteria to make a distinction between small-scale and largescale industries. This limit is being continuously raised upwards by the government.

Answer: (c)

Aditya Birla Retail Limited (ABRL), the retail arm of Aditya Birla Group company, operates two store formats - Supermarket and Hypermarket under the brand ‘more’. ABRL is the 4th largest supermarket chain in India after Future Group, Reliance Retail and D-Mart.

Answer: (b)

The total value of all goods and services produced in the economy during a particular period of time is called National Income. The largest component of National Income in India is service sector.

Answer: (b)

Population growth directly impacts the Indian economy. The three stages of population growth are:

The first stage of stable or slow population growth:

The growth of the population was slow due to the high death rate which nullified the high birth rate.

In this stage, these economies were primitive and primarily agrarian, with widespread illiteracy, poor sanitation and health care conditions, negligible knowledge of family planning and large family sizes which contributed to factors such as high fertility rate and high death rate. In the period between the first and the second stages, the death rates start reducing and birth rates remain stable which brings an imbalance in the economy.

Measures like diseases control, improving nutrition levels, and sanitation improvement are implemented to reduce death rates, but the measures for controlling birth rates are not implemented, which results in a population explosion. This required a period of transition for adjustment, thus bringing the second stage of transition.

The second stage of population explosions:

In this stage rise in income levels contributed to improvement in health care, education, disease control and so on which in turn contributed to reducing the death rates. This accelerated the growth of the population. The family size reduced and improved trade and economic conditions resulted in more food and better food habits which further helped the population to grow at a much higher rate than in the first stage. The demographic changes brought imbalances in the economy, creating conditions for further transition of society.

The third stage of low birth rates and low death rates:

Modernization and industrialization changed the living pattern in such nations, the rural population shifted to cities and family sizes were reduced to become nuclear families. The standard of living increased which further brought down mortality rates and birth rates. As a result, the growth of the population declined.

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: (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.