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

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: (b)

Answer: (b)

The Reserve Bank of India was nationalised on 1 January 1949 under the Reserve Bank (Transfer of Public Ownership) Act, 1948.

Since then, RBI started working as a government-owned central bank of India. It was founded on 1 April 1935.

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.