introduction to indian economy section 4 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (c)

A regressive tax is generally a tax that is applied uniformly. This means that it hits lower-income individuals harder.

The regressive tax imposes a greater burden (relative to resources) on the poor than on the rich — there is an inverse relationship between the tax rate and the taxpayer’s ability to pay as measured by assets, consumption, or income.

Answer: (c)

The Reserve Bank has introduced banknotes in the Mahatma Gandhi Series since 1996 and has so far issued notes in the denominations of Rs.5, Rs.10, Rs.20, Rs.50, Rs.100, Rs.500 and Rs.1000 in this series.

Mahatma Gandhi series of Rs.50 notes has a picture of the Parliament of India on its reverse.

Answer: (d)

At present 74% to 100% FDI is permitted for various telecom services. 100% FDI is permitted in the area of telecom equipment manufacturing and provision of IT-enabled services. This has made telecom one of the major sectors attracting FDI inflows in India.

For Basic and cellular, Unified Access Services, National / International Long Distance, VSat, Public Mobile Radio Trunked Services (PMRTS), Global Mobile Personal Communications Services (GMPCS) and other value-added telecom services - FDI up to 74% (including FDI, FII, NRI, FCCBs, ADRs, GDRs, convertible preference shares, and proportionate foreign equity in Indian promoters/ Investing Company) is permitted. FDI up to 49% is permitted under automatic route and beyond 49% by relevant FIPB guidelines.

For ISP (with gateways), end to end bandwidth and Radio Paging Service - FDI up to 74% is permitted subject to licensing and security requirements. Here also, FDI up to 49% is permitted under automatic route and beyond 49% by FIPB guidelines.

For ISP without gateway, Infrastructure Providers providing dark fibre, right of way, duct space, Tower (Category-I), Electronic Mail and Voice Mail - FDI up to 100% is allowed subject to the conditions that such companies would divest 26% of their equity in favour of Indian public in 5 years if these companies are listed in other parts of the world.

Again, FDI up to 49% is permitted under automatic route and beyond 49% by FIPB guidelines.

Answer: (c)

Garibi Hatao Desh Bachavo (Abolish Poverty to rescue the country) was the theme and slogan of Indira Gandhi’s 1971 election bid. It was part of the 5th Five Year Plan.

The plan prepared by D. Dhar proposed to achieve two main objectives viz, ‘removal of poverty’ (Garibi Hatao) and ‘attainment of self-reliance

Answer: (b)