introduction to indian economy section 2 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
Assertion (A): The emergence of economic globalism does not imply the decline of socialist ideology.
Reason (R): The ideology of socialism believes in Universalism and globalism.
Which one of the following is correct?
(a) Both A and R are true but R is not the correct explanation of A.
(b) A is true but R is false.
(c) Both A and R are true and R is the correct explanation.
(d) A is flase but R is true.
The correct answers to the above question in:
Answer: (c)
Both A and R are true and R gives correct explanation of A. It believes in universalism and globalism.
Discuss Form
Read more introduction Based Indian Economy Questions and Answers
Question : 1
The Report of Vijay Kelkar Committee relates to
a) Centre-State Financial Relations
b) Trade Reforms
c) Disinvestment in Public Sector Enterprises
d) Tax Reforms
Answer »Answer: (d)
Vijay Kelkar, former finance secretary and advisor to the finance minister almost a decade ago, was mandated by the finance minister to give a report outlining a roadmap for fiscal consolidation. Kelkar, who headed the 13th Finance Commission, was told to present a fiscal road map for the medium term
Question : 2
Which of the following is/are the functions of the National Development Council of India?
- To prescribe guidelines for the preparation of the national economic plan.
- To review the working of the national economic plan from time to time.
- To consider important questions of social and economic policy affecting national development
a) 2 only
b) 3 only
c) 1 only
d) 1, 2 and 3
Answer »Answer: (d)
The National Development Council (NDC) or the Rashtriya Vikas Parishad is the apex body for decision making and deliberations on development matters in India, presided over by the Prime Minister.
The functions of the Council are to prescribe guidelines for the formulation of the National Plan;
- to consider the National Plan as formulated by the Planning Commission;
- to consider important questions of social and economic policy affecting national development; and
- to review the working of the Plan from time to time and to recommend such measures as are necessary for achieving the aims and targets set out in the National Plan.
Question : 3
To achieve high rates of growth of national output, the economy has to
a) borrow foreign capital
b) reduce the rate of growth of population
c) step up the rate of savings
d) increase the rate of investment and reduce the capital output ratio
Answer »Answer: (d)
The immediate effect of devoting a larger share of national output to investment is that the economy devotes a smaller share to consumption; that is, “living standards” as measured by consumption fall. The higher investment rate means that the capital stock increases more quickly, so the growth rates of output and output per worker rise.
According to Smith, in a developing economy, both income level and capital stock rise. In addition to this, the rate of capital accumulation also shows a tendency to increase.
This leads to an increase in the capital stock in successive periods as investment keeps on increasing. Another important factor that contributes to the progress of an economy is the successive decline in the incremental capital-output ratio due to the influence of capital on the productivity of labour.
Question : 4
What does the term ‘Green shoots’ represent in an Economy?
a) signs of economic recovery during an economy downturn
b) signs of growth of agriculture sector in a declining economy
c) signs of growth of agriculture sector in a growing economy
d) signs of economic decline in a developed economy.
Answer »Answer: (a)
Green shoots is the first signs of an improvement in an economy that is performing badly. It was first used in this sense by Norman Lamont, the then Chancellor of the Exchequer of the United Kingdom, during the 1991 recession.
Question : 5
Which of the following is not an objective of the monetary policy of the RBI ?
a) Direct credit in desirable direction
b) Boost economic development
c) Control inflationary pressure
d) Ensure social justice
Answer »Answer: (d)
Monetary policy is the process by which the monetary authority of a country, generally a central bank controls the supply of money in the economy by exercising its control over interest rates in order to maintain price stability and achieve high economic growth.
In India, the central monetary authority is the Reserve Bank of India (RBI). It is so designed to maintain price stability in the economy.
Question : 6
As per the statistics on foreign debt at the end of March 2014, the ratio of long term debt and short term debt stands at—
a) About 81.5 : 18.5
b) About 61.5 : 29.5
c) About 70 : 30
d) About 80 : 20
Answer »Answer: (a)
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
100+ Quadratic Equation Questions Answers PDF for Bank
Quadratic Equation multiple choice questions with detailed answers for IBPS RRB SO. more than 250 Attitude practice test exercises for all competitive exams
Continue Reading »
IBPS Aptitude Linear Equations MCQ Questions Answers PDF
Linear equations multiple choice questions with detailed answers for IBPS RRB SO. more than 250 Attitude practice test exercises for all competitive exams
Continue Reading »
New 100+ Compound Interest MCQ with Answers PDF for IBPS
Compound Interest verbal ability questions and answers solutions with PDF for IBPS RRB PO. Aptitude Objective MCQ Practice Exercises all competitive exams
Continue Reading »
100+ Mixture and Alligation MCQ Questions PDF for IBPS
Most importantly Mixture and Alligation multiple choice questions and answers with PDF for IBPS RRB PO. Aptitude MCQ Practice Exercises all Bank Exams
Continue Reading »