national income & human development index section 3 MCQ Questions & Answers Detailed Explanation

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The following question based on National Income & Human Development Index topic of indian economy mcq

Questions : Which one of the following is not a feature of India’s economic planning?

(a) limited centralisation

(b) imperative planning

(c) democratic socialism

(d) indicative planning

The correct answers to the above question in:

Answer: (b)

Imperative planning is not a feature of the economic planning of India. In the case of imperative planning economic activities belong to the public sector.

In this type of planning economic decisions are made through a central planning authority instead of a market system. There is the absence of institutions of private property, competition and profit motive of industrialists.

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Read more national income human development index Based Indian Economy Questions and Answers

Question : 1

Which of the following dimensions is exclusively considered in HPI-2 (Human Poverty Index-2)?

a) Economic Exclusion

b) Social Exclusion

c) Gender Inequalities

d) Knowledge Exclusion

Answer: (b)

Question : 2

Which of the following is not a feature of India’s economic planning?

a) Democratic solution

b) Limited centralisation

c) Planning of imperative nature

d) Planning of indicative nature

Answer: (c)

Indicative planning is peculiar to the mixed economy. In a mixed economy, the public and private sectors work together. In indicative planning, the private sector is neither rigidly controlled nor directed to fulfil the targets and priorities of the plan.

The state provides all types of facilities to the private sector but does not direct it, rather indicates the areas in which it can help in implementing the plan.

Under imperative planning, all economic activities and resources of the economy operate under the direction of the state. There is complete control over the factors of production by the state. There is no consumer’s sovereignty in such planning.

Question : 3

Consider the following statements in regard to the GDP of a country :

  1. Real GDP is calculated by keeping inflation into consideration.
  2. Nominal GDP is calculated on the basis of the prices of goods and services produced in the current year.
Which of the statements given above is/are correct?

a) 2 only

b) 1 only

c) Both 1 and 2

d) Neither 1 nor 2

Answer: (c)

Real Gross Domestic Product (real GDP) is a macroeconomic measure of the value of economic output adjusted for price changes (i.e., inflation or deflation).

Nominal gross domestic product is defined as the market value of all final goods produced in a geographical region.

Question : 4

Which of the following is not a measure of Human Development Index?

a) Literacy Rate

b) Life Expectancy

c) Gross Enrolment

d) Sex Ratio

Answer: (d)

Question : 5

‘Saving energy and other resources for the future without sacrificing people’s comfort in the present’ is the definition of which of the following concepts?

a) Sustainable development

b) Economic growth

c) Human development

d) Economic development

Answer: (a)

Question : 6

Consider the following statements:

  1. The India Human Development Survey (IHDS) is a nationally representative, multi-topic survey of households across India.
  2. IHDS is conducted by the NCAER.
Which of the statements given above is/are in correct?

a) 1 and 2

b) 2 only

c) 1 only

d) None

Answer: (d)

Both the statements are correct.

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