introduction to indian economy section 13 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (d)

Absolute poverty is defined as a situation in which the individual’s basic needs are not covered, in other words, there is a lack of basic goods and services (normally related to food, housing and clothes).

This concept of poverty is strongly linked to destitution which is an inability to meet the minimum consumption expenditure. It is a level of poverty as defined in terms of the minimal requirements necessary to afford minimal standards of food, clothing, health care and shelter.

According to a UN declaration that resulted from the World Summit on Social Development in Copenhagen in 1995, absolute poverty is “a condition characterised by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education and information. It depends not only on income but also on access to services.”

Answer: (d)

V.K. R.V. Rao has done pioneering works on national income in India. One of his works on national income was 'Changes in India's National Income-A Static Economy in Progress' (1954). The other was ‘The National Income of British India’ (1941).

Answer: (b)

Open market operations (OMO) refers to the buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system.

A central bank (Reserve Bank of India) uses OMO as the primary means of implementing monetary policy.

Answer: (b)

Indian economy is an example of a mixed economy, an economic system that contains a mixture of markets and economic planning, in which both the private sector and state direct the economy.

It is a mixture of public ownership and private ownership; and market economies with strong regulatory oversight and governmental provision of public goods.

Answer: (d)

The Fourth Five-Year Plan (1969–1974) set before itself the two principal objectives – growth with stability and progress towards self–reliance.

It laid great emphasis on agriculture’s growth rate so that a chain reaction can start. The Fifth Five-Year Plan (1974–1979) also focused on self-reliance in agricultural production and defence.