introduction to indian economy section 1 MCQ Questions & Answers Detailed Explanation

Answer: (b)

Higher growth in GDP and population can occur together. Per capita income always decreases with high population growth as income per person decreases with rise in population.

Answer: (d)

The rate of GDP growth is a major indication of the state of the economy of a country. Economic growth is the increase in the market value of the goods and services produced by an economy over time. It is conventionally measured as the per cent rate of increase in gross domestic product.

Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a year, or another given period of time.

Answer: (d)

National Income is the money value of all goods and services produced in a country during a year. The income method of the calculation of National Income adds up all incomes received by the factors of production generated in the economy during a year.

This includes wages from employment and self-employment, profits to firms, interest to lenders of capital and rents to owners of the land.

Answer: (a)

The Securities and Exchange Board of India (SEBI) is the designated regulatory body for the finance and investment markets in India.

It was established in the year 1988 and given statutory powers on 30 January 1992 through the SEBI Act, 1992. It is an autonomous body.

Answer: (c)

ISI mark is a certification mark for industrial products in India, which is mandatory for certain products to be sold in India, like most of the electrical appliances viz; switches, electric motors, wiring cables, heaters, kitchen appliances etc., and other products like portland cement, LPG valves, LPG cylinders, automotive tyres.

Answer: (a)

India’s large service industry accounts for 57.2% of the country’s GDP while the industrial and agricultural sectors contribute 28.6% and 14.6% respectively.

Agriculture is the predominant occupation in Rural India, accounting for about 52% of employment. The service sector makes up a further 34% and the industrial sector around 14%.