national income & human development index section 5 MCQ Questions & Answers Detailed Explanation

Answer: (d)

The Indian Economy is characterised by pre-dominance of agriculture, low per capita income and massive unemployment. In India contribution of agriculture to GDP is around 17.9%.

Answer: (b)

C. Rangrajan committee was set up in 2012.

Answer: (c)

With the introduction of Economic liberalisation requirement for government licensing has been abolished except for a small list of strategic and potentially hazardous industries and a few industries which are reserved for the small scale sector.

For most industries however industrial investment has been effectively delicensed and investors are free to set up new units or expand existing units subject only to environmental clearances.

Answer: (a)

GNP is the total value of all final goods and services produced within a country in a particular year, plus income earned by its citizens (including income of those located abroad), minus income of non-residents located in that country.

GNP measures the value of goods and services that the country’s citizens produced regardless of their location.

Gross National Income - It is total domestic and foreign output claimed by residents of a country consisting of GDP plus factor income earned by foreign residents minus income earned in the domestic income by nonresidents.

Answer: (c)

Central Statistical Organisation (CSO), prepares the estimates of national income in India.

The first official estimates of the national income, prepared by the CSO at constant prices with the base year 1948-49, as well as at current prices, were brought out in 1956.

Planning Commission - It was an institution of Govt. of India which formulated India’s Five-year plans.

Headquarters - New Delhi

Reserve Bank of India - India’s central banking institution, which controls the monetary policy of the Indian Rupee.

Indian Statistical Institute - Institution devoted to research, teaching and application of statistics, natural science & social science.

Answer: (c)

The economy of India had undergone significant policy shifts at the beginning of the 1990s.

This new model of economic reforms is commonly known as the LPG or Liberalization, Privatization and Globalization model.

LPG model of economic development in India was proposed by Dr Manmohan Singh, economist and finance minister at that time.