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

Answer: (a)

Tertiary sector of the Indian Economy contributes the largest to the GNP. During the last decade tertiary sector has shown remarkable expansion. The economy is divided into three sectors on the basis of activities-Primary, Secondary and tertiary.

Primary sector is involved in agriculture, Secondary sector is involved in manufacturing, mining, construction while tertiary sector is involved in trade, transport, communication, banking & other services.

In the last decade, India has expanded maximum in providing services like IT, Telecommunication, Healthcare, Tourism which is contributing around 60% to GDP.

Answer: (c)

Antyodaya Anna Yojana (AAY) is a centrally sponsored scheme that was launched in December 2000 for one crore of the poorest families.

It is on the lookout for the 'poorest of the poor' by providing them 35 kilos of rice and wheat at Rs.2 per kg.

Answer: (d)

During first FiveYear Plan ( 1951–56) the price level in Indian economy showed a decline because of rapid agricultural development and measures to control inflation as there was disequilibrium due to second world war and partition of economy.

Answer: (c)

Dr. Manmohan Singh, the then Union Finance Minister, in his Budget speech for the year 1994-95 introduced the new concept of Service Tax. It was given constitutional status by Chapter VA of the Finance Act, 2003.

Answer: (b)

Regional Rural Banks (RRBs) were set up as government-sponsored, regional based rural lending institutions under the Regional Rural Banks Act, 1976.

Every RRB is owned by three entities with their respective shares as follows:

1. Central Government (50%);
2. State government (15%);
3. .Sponsor bank (35%).

Each Regional Rural Bank is sponsored by a Public-Sector Bank.

Answer: (b)

Real Gross Domestic Product (real GDP) is a macroeconomic measure of the value of economic output adjusted for price changes (i.e., inflation or deflation).

Nominal gross domestic product is defined as the market value of all final goods produced in a geographical region.