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

Answer: (a)

Fiscal drag is an economics term referring to a situation where a government’s net fiscal position (equal to its spending less any taxation) does not meet the net savings goals of the private economy.

Fiscal drag is a concept where inflation and earnings growth may push more taxpayers into a higher tax bracket.

Answer: (d)

Imperative planning is not a feature of the economic planning of India. In case of imperative planning economic activities belong to the public sector.

Answer: (a)

The philosophy of ‘Laissez-Faire’ is associated with industrial state.

Answer: (b)

Hindustan Zinc Limited (HZL) is an integrated mining and resources producer of zinc, lead, silver and cadmium. It is a subsidiary of Vedanta Resources PLC. HZL is the world’s second-largest zinc producer. Hindustan Zinc Limited was incorporated from the erstwhile Metal Corporation of India on 10 January 1966 as a Public Sector Undertaking. In 2001 as part of the BJP Government’s anti-corruption drive, the company was put up for sale.

In April 2002, Sterlite Opportunities and Ventures Limited (SOVL) made an open offer for the acquisition of shares of the company; consequent to the disinvestment of Government of India’s (GOI) stake of 26% including management control to SOVL and acquired an additional 20% of shares from the public, pursuant to the SEBI Regulations 1997.

In August 2003, SOVL acquired additional shares to the extent of 18.92% of the paid-up capital from GOI in the exercise of the “call option” clause in the share holder’s agreement between GOI and SOVL.

Answer: (a)

Since 1955 the national income estimates are being prepared by Central Statistical Organisation (CSO).

The CSO uses different methods like the Product Method, Income Method and Expenditure method for various sectors in the process of estimating the National Income.

Answer: (c)

NTPC Limited (previously known as National Thermal Power Corporation Limited) is an Indian PSU Public Sector Undertaking, engaged in the business of generation of electricity and allied activities.

NTPC’s core business is the generation and sale of electricity to state-owned power distribution companies and State Electricity Boards in India.