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

Answer: (a)

Fiscal drag is an economics term referring to a situation where a government’s net fiscal position (equal to its spending less any taxation) does not meet the net savings goals of the private economy.

Fiscal drag is a concept where inflation and earnings growth may push more taxpayers into a higher tax bracket.

Answer: (d)

Imperative planning is not a feature of the economic planning of India. In case of imperative planning economic activities belong to the public sector.

Answer: (a)

The philosophy of ‘Laissez-Faire’ is associated with industrial state.

Answer: (b)

All the above given terms are not a financial term. RTGS (Real Time Gross Settlement) is fund transfer system, core banking solutions like treasury and investment are all processes not financial term.

Answer: (d)

Generally, per capita income is the indicator of the progress of any country. According to World Development Report 2009, the per capita income of India was $950. Goa has the highest per capita income in India.

Goa leads the country with a per capita income of Rs.1,92,652. Delhi comes in second after Goa with PCI of Rs.1,75,812 followed by Chandigarh (1,28,634 – 2011) & Haryana (1,09,227).

Note: According to recent data given by the Ministry of Statistics and Programme Implementation, Goa has the highest NSDP per capita among 33 Indian states and union territories.

NSDP per capita of Goa is estimated at 224,138 Indian rupees in 2013-14 at current prices. The ranking of Delhi is two with a per capita income of around 212,219 INR. Sikkim is third, Chandigarh is fourth and Puducherry is the fifth richest economy of India.

Bihar, Uttar Pradesh, Manipur, Assam, and Jharkhand is top 5 poorest state in terms of NSDP per capita. These five states have net state domestic product per capita below Rs.50,000.