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

Answer: (d)

Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period of time.

GDP was first developed by Simon Kuznets for a US Congress report in 1934. After the Bretton Woods conference in 1944, GDP became the main tool for measuring the country’s economy.

Answer: (b)

Indian economy is increased by real per capita income

Answer: (b)

Net national income (NNI) is an economics term used in national income accounting. It can be defined as the net national product (NNP) minus indirect taxes. Net national income encompasses the income of households, businesses, and the government.

Answer: (d)

National Income ignores sale of land.

Answer: (c)

Occupational structure refers to the distribution of the workforce in the different occupations of the country.

As the economy grows, the labour force shifts from the primary sector to the secondary and tertiary sector.

Answer: (a)

As per the Union Budget 2011-12, direct taxes contributed between 50-60 per cent of tax revenue. Corporation Tax is the single biggest income source for the government.

The contributions of excise and customs duties have been gradually declining after 1990-91 reform due to rationalization of tax structures and reduction of levy rates.

Excise duties, at present, contribute 17 per cent; Custom duties: 17 per cent, while Service Duty contributes 9 per cent. In the early 1990s, the share of net corporate tax revenues in the total tax revenues (from direct and indirect tax) stood at 12.4 per cent, while that of net excise duty was 32 per cent.

However, over the years, economic gains in India Inc have trickled down to the exchequer in the form of higher Corporate Tax collections.