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

Answer: (d)

According to M.S. Swaminathan, agriculture must serve as an instrument of income and livelihood opportunity as well as food production.

He argues that the economic benefits of agro-processing and agribusiness should be taken to poor families through rural value-added enterprises and partnerships with the private sector.

Answer: (a)

Answer: (b)

The Indian Economy is characterised by the predominance of agriculture, low per capita income and massive unemployment.

In India contribution of agriculture to GDP is around 13.7%. Per capita income, a gauge for measuring living standards, is estimated at Rs. 5,729 per month in 2012–13 which is low as compared to other developing nations like China having per capita income to be $6091.

In India, the rate of unemployment is around 9.9 % which is higher than other developing nations like China which has an unemployment rate of 4.1.

Answer: (a)

With the increase in GDP, aggregate demand increases, because more production means people have more disposable income, which means more consumer spending.

As a result, prices rise in response, and in conclusion, because aggregate demand grows faster than long-term aggregate supply, economic growth will be coupled with inflation.

Answer: (a)

The Reserve Bank of India (RBI) was founded on 1 April 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934.

Following India’s independence on 15 August 1947, the RBI was nationalised on 1 January 1949.

Answer: (a)

India’s exports for the month of August 2012 stood at USD 22.3 billion compared to August 2011 when it stood at USD 24.7 billion registering a decline of (-) 9.7%.

During August 2012, the imports were $ 38 billion as compared to 40 billion dollars in August 2011 registering a decline of (-) 5.08%.