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

Answer: (c)

The Coal Conservation and Development Act, 1974 provides for imposition of excise duty on coal despatches for meeting activities like conservation of coal, development of coal mines execution of stowing and other operations for the safety in coal mines and research work connected with conservation and utilisation of coal, and assistance in mining operation. The Coking Coal (Nationalisation) Act was enacted in 1972.

Answer: (a)

India has rapidly diversified its exports markets from the traditional export partners towards emerging and developing economies. This has played a crucial role in cushioning India’s exports growth during recent years, which has remained fairly steady despite the global economic slowdown.

The rapid diversification of India’s export destinations is encouraging. The widely spreading export markets can be noted from the narrowing dependence on selected economies for exports.

Answer: (c)

A “subsistence” or necessary level of consumption produces differences in consumption growth rates across income levels. This implies that poor households have lower saving rates because they cannot “afford to save” after buying the necessities.

The institutional and behavioural mechanism also leads to low levels of saving among the poor.

Answer: (d)

Human Development Report the HDI combines three dimensions:

1. A long and healthy life: Life expectancy at birth,
2. Education Index: Mean years of schooling and Expected years of schooling and
3. A decent standard of living: GNI per capita (PPP US$).

Answer: (a)

At present Indian Rupee is fully convertible on the current account. Current account convertibility means that any company that wants to conduct business with outside companies (like TCS, Infy etc.) can convert the dollar payment into a Rupee payment or pay in terms of the dollar itself.

This is fully allowed in India provided that initial permission is taken from RBI.