introduction to indian economy section 11 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (d)

The important heads of developmental expenditure within the revenue account are,

1. social and community services,
2. economic services and
3. grants-in-aid to states and union territories.

The largest component in this group is economic services.

Economic services include,

1. general economic services,
2. agriculture and allied services,
3. industry; and minerals,
4. water and power and power development,
5. transport and communication,
6. railways,
7. post and telegraphs etc.

Answer: (d)

Income Tax (corporate and non-corporate combined) contribute about 56 per cent of the tax revenue of India. But, income tax, apart from agricultural income is shared between the Union and states.

Among the given options, Excise duty is the chief and single largest source of revenue income. The Government of India earns maximum from Union Excise Duty.

Answer: (a)

India’s exports for the month of August 2012 stood at USD 22.3 billion compared to August 2011 when it stood at USD 24.7 billion registering a decline of (-) 9.7%.

During August 2012, the imports were $ 38 billion as compared to 40 billion dollars in August 2011 registering a decline of (-) 5.08%.

Answer: (a)

The Reserve Bank of India (RBI) was founded on 1 April 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934.

Following India’s independence on 15 August 1947, the RBI was nationalised on 1 January 1949.

Answer: (a)

With the increase in GDP, aggregate demand increases, because more production means people have more disposable income, which means more consumer spending.

As a result, prices rise in response, and in conclusion, because aggregate demand grows faster than long-term aggregate supply, economic growth will be coupled with inflation.