introduction to indian economy section 3 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (d)

Worldwide, the first known instance of an SEZ seems to have been an industrial park set up in Puerto Rico in 1947 to attract investment from the US mainland.

In the 1960s, Ireland and Taiwan followed suit, but in the 1980s China made the SEZs gain global currency with its largest SEZ being the metropolis of Shenzhen.

Answer: (d)

India is a developing economy. Its per capita income level is much low than compared of other developed countries. According to World Development Report (2011), India’s per capita income was the US $ 1499 in 2014.

The per capita income in the United States is US $ 47240 and hence India’s per capita income is about 1/40 of the US level of per capita.

The per capita income of 2015 has increased by 10.1%, (as compared to 2014) as stated by Minister of State for Statistics and Programme Implementation Gen. V K Singh.

The national income in 2014-15 stood at Rs. 11,217,079 crore. With the mentioned per capita income, India falls in the category of Lower Middle-Income Countries(LMC)

Answer: (c)

There are different types of economic types.

1. The benefit of a mixed economy is to achieve a welfare state with a socialistic pattern of society.
2. India is a federal economy.
3. India is a developing economy.
4. India’s population is getting increased in each decade.

Answer: (d)

Gross National Product refers to the money value of total output or production of final goods and services produced by the nationals of a country during a given period of time, generally a year.

In the calculation of GNP, we include the money value of goods and services produced by nationals outside the country.

Answer: (d)

The service sector, also called the tertiary sector, is one of the three parts of the economy in the Threesector hypothesis. It involves the provision of services to businesses as well as final consumers.

Services may involve the transport, distribution and sale of goods from producer to consumers as may happen in wholesaling and retailing, or may involve the provision of a service, such as in pest control or entertainment.