introduction to indian economy section 5 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (b)

Coal mines is not an example of economic overheads. Economic overhead is a capital investment into the infrastructure which should encourage new industrial growth and social well being.

The other three schools, sanitary facilities and roads and railways are economic overheads.

Answer: (a)

The Reserve Bank has the sole authority to issue banknotes in India. Reserve Bank, like other central banks the world over, changes the design of banknotes from time to time.

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.100 notes has a picture of Indian Himalayan mountain ranges on its reverse which is of ecological and environmental significance.

Answer: (b)

A firm sells shares worth Rs. 1000 direct to individuals. This transaction will cause no impact on Gross National Product as GNP measures the output generated by a country’s enterprises (whether physically located domestically or abroad) but here no output is generated.

Answer: (a)

The Mahalanobis model is a model of economic development, created by Indian statistician Prasanta Chandra Mahalanobis in 1953.

Mahalanobis became essentially the key economist of India's Second Five Year Plan, becoming subject to much of India's most dramatic economic debates.

Answer: (a)

The operational period of the 12th Five Year Plan is 2012-2017.

This is the last five-year plan since the National Institution for Transforming India (NITI) Aayog, in May 2016, decided to come up with a 15-year vision document instead of five-year plans.

The first 15-year vision document will come into effect from 2017-18.