introduction to indian economy section 2 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (d)

The medium and long term loans are disbursed to the farmers through Primary Land Development Banks who draw their finances from Central Land Development Banks who in turn draw their finances from NABARD.

As for the short term credit, this is disbursed to the farmers through Primary Agricultural Credit Societies who draw their finances from Central Cooperative Banks who in turn draw their finances from the State Cooperative Banks.

Answer: (c)

The Second Plan between years 1956-1961 was focused on the development of India by establishing heavy industries under the public sector.

The total money allotted for this 5-year plan was 48 Billion rupees. The plan followed the Mahalanobis model of economic development.

Answer: (a)

Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a year.

GDP can be determined in three ways: the production (or output) approach, the income approach, or the expenditure approach.

Answer: (c)

Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period of time.

The United Nations Conference on the Law of the Sea has defined sovereign rights over international waters by defining such concepts as Internal Waters, exclusive economic zones (EEZs), continental shelf jurisdiction, etc. According to this law, the income generated by Indian fishermen would be accounted for in the GDP of India.

Answer: (d)

Dadabhai Naoroji had estimated national income in India first. National income estimate before independence was prepared by Dada Bhai Naoroji in 1876.

He estimated national income by estimating the value of agricultural production and then adding some percentage of non–agricultural production. This method was non–scientific.