macro fundamentals, GDP, investment & growth section 4 MCQ Questions & Answers Detailed Explanation

Question : 1

India is planning to become a $5 Trillion economy by 2024-25. Consider the following statements.

1. It is in nominal terms
2. It is in PPP terms
3. It will require compounded annual real growth of around 8%, with 4% inflation

a) (i) & (iii) only

b) (ii) only

c) (i) only

d) (ii) & (iii) only

Question : 2

Consider the statements regarding the various inflation indices published in the country:

1. Wholesale Price Index (WPI) does not represent the inflation in services
2. Consumer Price Index (CPI) represents the inflation in goods and services
3. CPI and WPI represent the inflation of imported goods also
4. GDP deflator captures the inflation of the goods and services produced domestically

a) (ii), (iii) & (iv) only

b) (i), (ii), (iii) only

c) (i) & (ii) only

d) All of the above

Question : 3

Reason for low-productivity in Indian agriculture is

a) small land holdings

b) engagement of more persons in agricultural operations than needed

c) All of the above

d) backward technique of production

Question : 4

Consider the following statements:

1. Investment in the economy increases with a decrease in the capital-output ratio
2. Economic output increases with a decrease in capital-output ratio

a) Both (i) & (ii)

b) (ii) only

c) (i) only

d) Neither (i) nor (ii)

Question : 5

As per Micro, Small and Medium Enterprises Development Act 2006, medium enterprises are defined as those with the investment of

a) Rs. 5 crores to Rs. 10 crores

b) Rs. 25 lakhs to Rs. 5 crores

c) more than Rs. 10 crores

d) less than Rs. 10 crores

Question : 6

The licensing policy for the industries drew strength from

a) Industrial Policy Resolution, 1956

b) Industrial Policy Resolution, 1948

c) Industries Act 1951

d) Congress Party Resolution of establishing Socialistic pattern of society