national income & human development index section 1 MCQ Questions & Answers Detailed Explanation

Answer: (b)

National product at factor cost is equal to net domestic product at factor cost+ Net factor Income from Abroad.

Answer: (a)

Answer: (b)

In India, a large number of farmers are illiterate and know little about scientific-agriculture methods. Prices of primary products are lower than those of manufactured products and investment in agriculture has been lower when compared to investment in the industry.

All these reasons are responsible for lower rural income.

Answer: (c)

The Second Five Year Plan heralded in a true sense the Socialist Project of the then Prime Minister, Jawaharlal Nehru. The economic policies of Nehru were heavily influenced by the erstwhile Union of Soviet Socialist Republics (USSR) which had followed the path of speedy industrialisation to expand the manufacturing base of its economy.

The Second Five year Plan focused mainly on heavy industry as against the First Plan which was essentially an agricultural plan. This was done to boost domestic production and manufacturing of goods. The third plan aimed to achieve self-sufficiency in foodgrains and to increase agricultural production to meet the requirements of industry and exports.

Answer: (c)

With low economic development, generally, the economy has a high birth rate and high death rate with less awareness and improper healthcare.

As an economy develops, the birth rate remains high but the death rate declines due to improved healthcare. However, with the highest economic development, birth rate and death rate lowers because of max awareness and excellent healthcare.

Answer: (d)

The most appropriate measure of a country’s economic growth is its per capita real income. Per capita income is average income, a measure of the wealth of the population of a nation.

It is used to measure a country’s standard of living thus a better indicator of economic growth. Economic growth is the increase in the inflation-adjusted market value of the Goods and services produced by the economy over time.