introduction to indian economy section 14 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (b)

Gross value added at factor cost (formerly GDP at factor cost) is derived as the sum of the value-added in the agriculture, industry and services sectors.

If the value-added of these sectors is calculated at purchaser values, gross value added at factor cost is derived by subtracting net product taxes from GDP.

GDP at Factor Cost is called Real GDP. This is because it takes into account various other factors which give a clearer picture of the GDP.

Answer: (b)

Net National Product (NNP) of a country is GNP minus depreciation allowances.

NNP is the actual addition to the year’s wealth. While calculating GNP, we ignore depreciation of assets but in reality, the process of production uses up the fixed assets or there is some wear and tear or fixed assets by process of depreciation.

In order to arrive at NNP, we deduct depreciation from GNP.

Answer: (a)

Swachh Bharat is India’s biggest ever cleanliness campaign that was originally known as Nirmal Bharat Abhiyan and Total Sanitation Campaign from 1999 to 2012.

On 2 October 2014, the Nirmal Bharat Abhiyan campaign was relaunched as Swachh Bharat Abhiyan (Clean India Mission) which aims to eradicate open defecation by 2019.

Answer: (c)

Fiscal Deficit: When a government’s total expenditure exceeds the revenue that it generates (excluding money from borrowings).

Deficit differs from debt, which is an accumulation of yearly deficits.

Answer: (d)

As per data released by Brickwork Ratings in December 2015, Maharashtra earns approximately 70 per cent of its total receipts through tax revenues — the highest among the bigger states — followed by Gujarat and Tamil Nadu.

It is the biggest economy within India at Rs 16.87 lakh crore in terms of gross state domestic product (GSDP). The state also contributes to about 40 per cent of India’s income tax collections.