introduction to indian economy section 13 MCQ Questions & Answers Detailed Explanation

Answer: (a)

The Employment Guarantee Scheme (EGS) underlying the National Rural Employment Guarantee Act is by far one of the largest social safety-net programmes launched anywhere in the developing world.

Maharashtra became the first state in India to guarantee work in 1979 following a severe drought. The EGS began in 1972 during the drought period.

However, it received a statutory basis in 1977 when the Maharashtra Legislative Assembly unanimously voted it as a law of the land. The law became operative on January 26, 1979, with the consent of the President of India.

Answer: (b)

Higher growth in GDP and population can occur together. Per capita income always decreases with high population growth as income per person decreases with rise in population.

Answer: (b)

Excise duty on production few items including that on liquor is imposed by state governments.

Excise duty on alcohol, alcoholic preparations, and narcotic substances is collected by the State Government and is called “State Excise” duty. For most of the states, excise duty is the second largest tax revenue after sales taxes (State VAT).

Answer: (c)

Green shoot is a term used colloquially and propagandistically to indicate signs of economic recovery during an economic downturn.

It was first used in this sense by Norman Lamont, the then Chancellor of the Exchequer of the United Kingdom, during the 1991 recession.

Answer: (d)

Jeevan Aastha policy of Life Insurance Corporation of India is a single premium assurance plan which offers guaranteed benefits on death and maturity.

The plan has a maximum shelf life of 45 days and offers five and ten-year maturities to customeRs.The scheme has fixed the minimum age at entry as 13 years which would enable parents to make provisions for the higher education of their children.

Similarly, the maximum age at entry has been fixed as 60 years. The plan offers guaranteed addition of Rs100 for every thousand of maturity sum assured for 10 years term and Rs90 per annum for policies with a five-year term.

The policyholder can also avail of the benefits of tax exemption and has the option of surrendering the policy or raising a loan under the policy.

Answer: (b)

MUDRA (Micro Units Development and Refinance Agency) is a public sector financial institution that provides loans at low rates to micro-finance institutions and non-banking financial institutions which then provide credit to MSMEs.

It was launched by Prime Minister Narendra Modi on 8 April 2015.