introduction to indian economy section 8 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (b)

National Income is defined as the sum total of all the goods and services produced in a country, in a particular period of time. Normally this period consists of a one-year duration, as a year is neither too short nor long a period. National product is usually used synonymously with National income.

The Central Statistical Organization defines National income as “National Income is the sum of factor income earned by the normal residents of a country in the form of wages, rent, interest and profit in an accounting year.”

Answer: (a)

Dadabhai Naoroji prepared the first estimates of National income in 1876. He estimated the national income by first estimating the value of agricultural production and then adding a certain percentage as non-agricultural production.

However, such a method can only be called a non-scientific method. The first person to adopt a scientific procedure in estimating the national income was Dr VKRV Rao in 1931.

Answer: (c)

Monetary policy is the process by which the monetary authority of a country, generally a central bank controls the supply of money in the economy by exercising its control over interest rates in order to maintain price stability and achieve high economic growth.

In India, the central monetary authority is the Reserve Bank of India (RBI). is so designed as to maintain the price stability in the economy.

Answer: (e)

Tata Power, in March 2012, synchronized the second unit of its Maithon power project in Jharkhand. With this 525 megawatt (Mw) unit, the company has a total power generation capacity of 5,297 Mw, making it the country’s largest private sector power generating firm.

The Maithon project's first unit was commissioned in September 2011. It is a 74:26 joint venture between Tata Power and Damodar Valley Corporation.

Answer: (a)

The gems and jewellery sector is a major foreign exchange earner. At present, gems and jewellery is the second largest foreign exchange earner in the country surpassing even what was earned by the textile and apparel sector.

The countries where demand is increasing for Indian jewellery include the UAE, the US, Russia, Singapore, Hong Kong, Latin America and China.