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

Answer: (a)

Microeconomics is a branch of economics that studies the behaviour of individuals and firms in making decisions regarding the allocation of limited resources. Typically, it applies to markets where goods or services are bought and sold.

This is in contrast to macroeconomics, which involves the “sum total of economic activity, dealing with the issues of growth, inflation, and unemployment.”

So the study of sales of TISCO will come under microeconomics.

Answer: (b)

All expenditures that promote economic growth and development are termed development expenditure.

Expenditure on infrastructure development, public enterprises or the development of agriculture increase productive capacity in the economy and bring income to the government.

Expenditures in the nature of consumption such as Defence, interest payments, expenditure on law and order, public administration, do not create any productive asset which can bring income or returns to the government are non-development expenditures.

Answer: (d)

For calculating national income, the Indian economy is divided into 14 broad sectors, which are then grouped into three main categories A, B and C.

In India, agriculture, forestry and logging, fishing, mining and quarrying, registered manufacturing and construction units are included in category A. The output method is applied to category A.

The value added by this category is found by subtracting the value of raw materials and other inputs from the aggregate of commodity-wise output.

Answer: (c)

Rajiv Awas Yojana (RAY) envisages a “Slum Free India" with inclusive and equitable cities in which every citizen has access to basic civic infrastructure and social amenities and decent shelter.

It aims to make India slum-free by 2022 by providing people with shelter or housing, free of cost. It was introduced by the Union Ministry of Housing and Alleviation.

Answer: (d)