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

Answer: (c)

Dr. Manmohan Singh, the then Union Finance Minister, in his Budget speech for the year 1994-95 introduced the new concept of Service Tax. It was given constitutional status by Chapter VA of the Finance Act, 2003.

Answer: (a)

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.

Answer: (a)

Tertiary sector of the Indian Economy contributes the largest to the GNP. During the last decade tertiary sector has shown remarkable expansion. The economy is divided into three sectors on the basis of activities-Primary, Secondary and tertiary.

Primary sector is involved in agriculture, Secondary sector is involved in manufacturing, mining, construction while tertiary sector is involved in trade, transport, communication, banking & other services.

In the last decade, India has expanded maximum in providing services like IT, Telecommunication, Healthcare, Tourism which is contributing around 60% to GDP.

Answer: (c)

Antyodaya Anna Yojana (AAY) is a centrally sponsored scheme that was launched in December 2000 for one crore of the poorest families.

It is on the lookout for the 'poorest of the poor' by providing them 35 kilos of rice and wheat at Rs.2 per kg.

Answer: (d)

During first FiveYear Plan ( 1951–56) the price level in Indian economy showed a decline because of rapid agricultural development and measures to control inflation as there was disequilibrium due to second world war and partition of economy.