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

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: (b)

As defined by the Brundtland Commission in its 1987 report Our Common Future, sustainable development is the “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”

Answer: (b)

The Central Indian Government that is officially named the “Union Government” is responsible for the imposition of both direct taxes as well indirect taxes.

Listed below are some of the taxes that are levied by the Indian Government:

1. Banking Cash Transaction Tax;
2. Capital Gains Tax;
3. Corporate Income Tax;
4. Fringe Benefits Tax;
5. Personal Income Tax; and
6. Securities Transaction Tax.

The indirect taxes are:

1. Customs Duty;
2. Excise Duty and
3. Service Tax.

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: (b)

Zero-based budgeting is an approach to planning and decision-making which reverses the working process of traditional budgeting. In zero-based budgeting, every line item of the budget must be approved, rather than only changes. During the review process, no reference is made to the previous level of expenditure.

Regarding Zero Base Budgeting (ZBB) Existing Government programmes can be discarded under ZBB if they are found to be outdated.

Moreover, ZBB is difficult to be applied to Human Development programmes as the outcome of such programmes is intangible in nature.

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.