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

Answer: (b)

Inclusive growth is a concept that includes an equitable allocation to every section of society.

It creates an environment of equality in opportunity in all dimensions such as employment creation, market, consumption, and production and has created a platform for people who are poor to access a good standard of living.

Answer: (a)

Navratna was the title given originally to nine Public Sector Enterprises (PSEs) identified by the Government of India in 1997 as “public sector companies that have comparative advantages”, giving them greater autonomy to compete in the global market so as to “support [them] in their drive to become global giants”.

The number of PSEs having Navratna status has been raised to 16, the most recent addition being Oil India Limited.

Answer: (d)

The Department of Posts, trading as India Post, is a government-operated postal system in India. Owing to its far-flung reach and its presence in remote areas, the Indian postal service is involved in other services such as small savings banking and financial services.

The post office has offered and continues to offer various savings schemes, including National Savings Certificates, the Public Provident Fund, Savings Bank Accounts, Monthly Income Schemes, Senior Citizen Saving Schemes, and Time Deposit Accounts.

Small savings accounts in rural post offices were a keystone to the department’s policy and the department had the largest number of savings accounts across the country.

Answer: (d)

Expenditure incurred on the non-development plans is called non-plan expenditure, which includes subsidies, interest payments, etc.

Non-plan revenue expenditure is accounted for by,

1. interest payments,
2. subsidies,
3. wage and salary payments to government employees,
4. grants to States and Union Territories governments,
5. pensions,
6. police, and economic services in various sectors,
7. other general services, such as tax collection, social services, and grants to foreign governments.

Non-plan capital expenditure mainly includes defence, loans to public enterprises, loans to states, Union territories and foreign governments.

Answer: (d)

Provision of public goods like defence which no private agency can be entrusted with.

Provision of merit goods - goods like education and housing - through policies which encourage the consumption of such goods and discourage the use of non-merit goods like cigarettes.

Poverty reduction is considered a prime responsibility of all modern governments, as the market caters to the needs of only those who can afford to pay, not of the poor.