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

Answer: (a)

During last decade tertiary sector has shown remarkable expansion. The economy is divided into three sectors on the basis of activities–primary, secondary and tertiary.

Primary sector is involved in agriculture, Secondary sector is involved in manufacturing, mining, construction while tertiary sector is involved in trade, transport, communication, banking & other services.

In the last decade, India has expanded maximum in providing services like IT, Telecommunication, Healthcare, Tourism which is contributing around 60% to GDP.

Answer: (d)

Broadly speaking, there are three possible methods to correct Balance of Payments (BOP) imbalances.

These methods are adjustments of

1. exchange rates;
2. adjustment of a nations internal prices along with its levels of demand; and
3. rules-based adjustment.

This can be achieved by vigorous import substitution which means export promotion and devaluation of local currency as then it makes export cheaper to the international market.

Answer: (a)

Some of the taxes of the central government are:

1. Taxes on income other than agricultural income;
2. Duties of customs including export duties;
3. Duties of excise on tobacco and other goods manufactured or produced in India except for
   1. alcoholic liquor for human consumption, and
   2. opium, Indian hemp and other narcotic drugs and narcotics, but including medicinal and toilet preparations containing alcohol or any substance; Corporation Tax;

Taxes on the capital value of assets, exclusive of agricultural land, of individuals and companies, taxes on capital of companies; Estate duty in respect of property other than agricultural land; etc.

Central tax means taxes that are levied and collected by the central government.

Answer: (d)

Answer: (d)