introduction to indian economy section 12 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (b)

Pradhan Mantri Ujjwala Yojana is an ambitious social welfare scheme of the Narendra Modi Government launched on 1 May 2016 from Ballia in Uttar Pradesh.

The scheme aims to provide LPG connections to BPL households in the country and, thus, replace the unclean cooking fuels mostly used in rural India with the clean and more efficient LPG (Liquefied Petroleum Gas).

Answer: (c)

The fringe benefits tax (FBT) was introduced in India in the year 2005-2006. Fringe Benefits Tax (FBT) is fundamentally a tax that an employer has to pay in lieu of the benefits that are given to his/her employees. It was an attempt to comprehensively levy tax on those benefits, which evaded the taxman.

The list of benefits encompassed a wide range of privileges, services, facilities or amenities which were directly or indirectly given by an employer to current or former employees, be it something simple like telephone reimbursements, free or concessional tickets or even contributions by the employer to a superannuation fund.

FBT was introduced as a part of the Finance Bill of 2005 and was set at 30% of the cost of the benefits given by the company, apart from the surcharge and education cess that also needed to be paid.

Answer: (d)

The problem of over population can be solved by two ways

An effective employment policy, which can absorb the growing number of workers and promote economic growth.

An imaginative family planning programme to encourage families to adopt the small family norm.

Answer: (c)

The poverty line is a minimum level of income deemed adequate in a particular country. The common international poverty line has in the past been roughly $1 a day.

In 2008, the World Bank came out with a revised figure of $1.25 at 2005 purchasing power parity.

In India, the poverty line is identified in monetary units as the level of income or consumption expenditure required in order to avoid poverty.

Answer: (c)

The term was coined by Indian economist Raj Krishna. The Hindu rate of growth is a derogatory term referring to the low annual growth rate of the socialist economy of India before 1991, which stagnated around 3.5% from the 1950s to the 1980s.

The word “Hindu” implies that the Hindu outlook of fatalism and contentedness was responsible for the slow growth.