introduction to indian economy section 14 MCQ Questions & Answers Detailed Explanation

Answer: (d)

Austerity describes policies used by governments to reduce budget deficits during adverse economic conditions. These policies may include spending cuts, tax increases.

This is done in an economic crisis situation to improve the credit rating of the countries going through adverse economic conditions.

Answer: (d)

A sales tax is a consumption tax charged at the point of purchase for certain goods and services. The tax is usually set as a percentage by the government charging the tax.

Sales tax can be levied either by the Central or State Government or Central Sales tax department.

The revenue from this tax was assigned to the States by amending Article 269 of the Constitution.

Thus, sale within the State (IntraState sale) is within the authority of State Government, while sale outside State (Inter-State sale) is within the authority of Central Government.

Answer: (c)

ICICI Bank has adopted Akodara village of Sabarkantha district under its ‘Digital Village’ pilot project to boost Centre’s ‘Digital India’ drive.

Answer: (a)

Between 1951 and 2000 the share of agriculture in GDP fell from around 59% to around 25%.

The share of the services sector in GDP was more than the industrial sector. Between 1951 and 2000 it was around 28% for services and 13 % for manufacturing in 1950.

In 1990 it was around 40 % services and 24 % manufacturing. It was around 51 % services in 2000.

Answer: (c)

By merging the two erstwhile wage employment programme -

1. National Rural Employment Programme (NREP),
2. Rural Landless Employment Guarantee Programme (RLEGP), and
3. Jawahar Rozgar Yojana (JRY) was started with effect from April 1, 1989, on an 80:20 cost-sharing basis between the centre and the States.

The main objective of the Yojana was additional gainful employment for the unemployed and under-employed persons in rural areas.

The other objective was the creation of sustained employment by strengthening rural economic infrastructure and assets in favour of rural poor for their direct and continuing benefits.

Answer: (a)

In 1991, India faced a serious balance of payment crisis and was forced to sharply devalue its currency.

The country was in the grip of high inflation, low growth and the foreign reserves were not even worth meeting three weeks of imports. Under these situations, the currency was devalued to 17.90 against the dollar.