macro fundamentals, GDP, investment & growth section 4 MCQ Questions & Answers Detailed Explanation
MOST IMPORTANT indian economy mcq - 4 EXERCISES
The following question based on Macro fundamentals, GDP, Investment, Growth topic of indian economy mcq
- Capital investment
- Business turnover
- Labour force
- Power consumption
(a) 1, 2 and 4
(b) 1, 3 and 4
(c) 2 and 3
(d) 2, 3 and 4
The correct answers to the above question in:
Answer: (b)
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Question : 1
The decrease in dependency ratio (ratio of dependent population to working-age population) of a country may lead to which of the following situation:
- Increase in the savings rate
- Decrease in the savings rate
- Increase in Capital Formation
- Decrease in Capital Formation
a) (i) & (iv) only
b) (ii) & (iv) only
c) (i) & (iii) only
d) (ii) & (iii) only
Answer »Answer: (c)
Whenever in any country, the working population increases and dependent population decreases, the savings in the economy increases. (This also happens at the family level.
If a family has more working members and fewer dependents then the savings of the family increases). The increased savings leads to an increase in investments.
So, (i) & (iii) statements are true.
Question : 2
Consider the following statements regarding Capital formation:
- Gold and valuable metals are part of Fixed Capital Formation
- Intellectual properties are part of Fixed capital formation
- Construction of buildings and other structures are part of Capital Formation
a) (ii) & (iii) only
b) (i) & (iii) only
c) (i) only
d) (iii) only
Answer »Answer: (a)
Gross Capital Formation = Gross Fixed Capital Formation (machinery + equipment + building + cultivated biological resources + intellectual property) + Valuable Metals + Change in stock/inventory
Gross fixed capital formation is around 30% and valuable metals and change in the stock is one per cent each.
So Gross Capital Formation or Gross Investment is around 32%. Mostly we use the gross fixed investment for all calculations and growth purposes.
Question : 3
With reference to the provisions made under the National Food Security Act, 2013, consider the following statements.
- The families coming under the category of ‘below poverty line (BPL)’ only are eligible to receive subsidised food grains.
- The eldest woman in a household of age 18 years or above, shall be the head of the household for the purpose of issuance of a ration card.
- Pregnant women and lactating mothers are entitled to a ‘takehome ration’ of 1600 calories per day during pregnancy and for six months thereafter.
a) Only 2
b) Only 1 and 2
c) Only 3
d) Only 1 and 3
Answer »Answer: (a)
Question : 4
Indian agriculture has the following features.
- Dependence of agriculture on the monsoons
- Abolition of zamindari
- Absence of trade unions in the agricultural sector
- Heavy pressure of population on land
a) Only 1 and 2
b) Only 1
c) Only 4
d) 1, 2 and 3
Answer »Answer: (c)
Question : 5
The second Green Revolution proposed by the Prime Minister does not include
a) minimisation of the post harvest wastage
b) help to Indian farmers to participate in global agricultural trade
c) encouragement to foreign direct investment in agriculture
d) improvement in storage of crops
Answer »Answer: (c)
Question : 6
Which of the following agencies is not engaged in exporting agricultural goods from India?
a) State Trading Corporation
b) NAFED
c) MMTC
d) IFFCO
Answer »Answer: (c)
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