introduction to indian economy section 14 MCQ Questions & Answers Detailed Explanation
MOST IMPORTANT indian economy mcq - 14 EXERCISES
-
Top 500+ Basic Indian Economy GK MCQ Quiz For SSC IBPS »
-
New Indian Economy GK MCQ Quiz PDF For UPSC/IAS Prelims »
-
Basic Indian Economy Concepts MCQs Quiz For RRB NTPC Exam »
-
New 499+ Fundamentals of Indian Economy MCQ Quiz For IBPS »
-
555+ Indian Economy Concepts Basics Fundamentals MCQ Quiz »
-
Top 500+ Indian Economy GK MCQs Quiz PDF For SSC UPSC RRB »
-
New 499+ Indian Economy GK Question And Answers Quiz PDF »
-
Best 500+ Indian Economy General Knowledge MCQ Quiz PDF »
-
500+ Indian Economy General Studies Online MCQ Quiz PDF »
-
New 500+ Indian Economy Basic Static GK MCQ Quiz For IBPS »
-
500+ Introduction to Indian Economy GK MCQ Quiz For SSC »
-
800+ Latest Indian Economy GK Questions & Answers MCQ PDF »
-
1000+ Indian Economy GK Questions And Answers Quiz PDF »
-
1000+ Indian Economy Basic Concepts GK MCQ PDF For SBI PO »
The following question based on Introduction to Indian Economy topic of indian economy mcq
- These measures include a reduction in expenditure.
- These measures include an increase in tax.
- These measures include a reduction in the budget deficit.
(a) 2 and 3 only
(b) 1 and 3 only
(c) 1 and 2 only
(d) 1, 2 and 3 all
The correct answers to the above question in:
Answer: (d)
Austerity describes policies used by governments to reduce budget deficits during adverse economic conditions.
These policies may include expenditure cuts, tax increases; this is done in an economic crisis situation to improve the credit rating of the countries going through adverse economic conditions.
Discuss Form
Read more introduction Based Indian Economy Questions and Answers
Question : 1
If the marginal returan encrease at a diminishing rate, the total return
a) decreases
b) increases
c) remains constant
d) becomes income
Answer »Answer: (a)
The question talks about marginal return increasing at a diminishing rate which, in reality, is diminishing marginal return.
In economics, the law of diminishing returns states: “If increasing amounts of a variable factor are applied to a fixed quantity of other factors per unit of time, the increments in total output will first increase but beyond some point, it begins to decline”.
Richard A. Bilas describes the law of diminishing returns as: “If the input of one resource to other resources is held constant, total output will increase but beyond some point, the resulting output increases will become smaller and smaller.”
So as the marginal return increases at a diminishing rate, the total return will eventually decrease.
Question : 2
Who coined the term ‘Hindu rate of growth’ for Indian economy?
a) Kirit S. Parikh
b) A.K. Sen
c) Raj Krishna
d) Montek Singh Ahluwalia
Answer »Answer: (c)
The Hindu rate of growth refers to the low annual growth rate of the socialist economy of India before 1991, which stagnated around 3.5% from the 1950s to the 1980s, while per capita income growth averaged 1.3%. The term was coined by Indian economist Raj Krishnaa.
It suggests that the low growth rate of India, a country with a high Hindu population was in sharp contrast to high growth rates in other Asian countries, especially the East Asian Tigers, which were also newly independent.
This meaning of the term, popularized by Robert McNamara, was used disparagingly and has connotations that refer to the supposed Hindu outlook of fatalism and contentedness.
Question : 3
The most appropriate measure of a country’s economic growth is its
a) Net Domestic Product
b) Per capita real income
c) Net National Product
d) Gross Domestic Product
Answer »Answer: (b)
The most appropriate measure of a country’s economic growth is its per capita real income. Per capita income is average income, a measure of the wealth of the population of a nation. It is used to measure a country’s standard of living thus a better indicator of economic growth.
Question : 4
The existence of a parallel economy or black money
a) makes the monetary policies less effective
b) ensure increasing productive investment
c) ensure a better distribution of income and wealth
d) makes the economy more competitive
Answer »Answer: (a)
The existence of a parallel economy or black money makes the monetary policies less effective.
A parallel economy, based on black money or unaccounted money, causes high circulation of money in the market and thus causes inflation etc.
Question : 5
The largest share of India’s national income originates in the
a) Secondary sector
b) Primary sector
c) Tertiary sector
d) Any of the above
Answer »Answer: (c)
National Income is essentially what a country produces in a given year. It takes into account the value of all the goods and services in an economy.
The term is interchangeable with Gross Domestic Product (GDP) The services industry accounted for over 57% of India's gross domestic product in 2010- 2011 and is by far the largest.
Question : 6
Name the Indian State with the highest tax revenue.
a) Sikkim
b) Assam
c) Karnataka
d) Maharashtra
Answer »Answer: (d)
As per data released by Brickwork Ratings in December 2015, Maharashtra earns approximately 70 per cent of its total receipts through tax revenues — the highest among the bigger states — followed by Gujarat and Tamil Nadu.
It is the biggest economy within India at Rs 16.87 lakh crore in terms of gross state domestic product (GSDP). The state also contributes to about 40 per cent of India’s income tax collections.
GET Introduction to Indian Economy PRACTICE TEST EXERCISES
introduction to indian economy section 1
introduction to indian economy section 2
introduction to indian economy section 3
introduction to indian economy section 4
introduction to indian economy section 5
introduction to indian economy section 6
introduction to indian economy section 7
introduction to indian economy section 8
introduction to indian economy section 9
introduction to indian economy section 10
introduction to indian economy section 11
introduction to indian economy section 12
introduction to indian economy section 13
introduction to indian economy section 14
Introduction to Indian Economy Shortcuts and Techniques with Examples
Verbal Reasoning
Question & Answer Quiz
Non Verbal Reasoning
Question & Answer Quiz
Quantitative Aptitude
Question & Answer Quiz
Computer MCQ
Question & Answer Quiz
General English
Question & Answer Quiz
History GK
Question & Answer Quiz
Polity GK
Question & Answer Quiz
Geography GK
Question & Answer Quiz
Economy GK
Question & Answer Quiz
General Awareness GK
Question & Answer Quiz
Recently Added Subject & Categories For All Competitive Exams
Most Important Antonyms Vocabulary - IBPS Clerk Prelims 2024
Latest Antonyms multiple choice questions and answers with free PDFfor IBPS Clerk Prelims 2024. English Vocabulary practice exercise for all bank exam
Continue Reading »
Syllogism Practice Questions Answers PDF - IBPS Clerk 2024
Practice Verbal Reasoning Syllogism multiple choice questions and answers with Fully solved explanation, PDF for the IBPS Clerk Prelims 2024 Bank Exam
Continue Reading »
IBPS Clerk Prelims 2024 Synonyms Questions Solved Answers
Most important IBPS Clerk Prelims 2024 Synonyms and Antonyms multiple choice questions and answers with detailed solutions, English vocabulary PDF Download
Continue Reading »
New Cloze Test Questions and Answers PDF - IBPS Clerk 2024
The most important Cloze Test questions with detailed answers for upcoming IBPS Clerk prelims 2024. Latest English verbal ability practice MCQs, PDF
Continue Reading »