introduction to indian economy section 9 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (a)

The concept of a mixed economy evolved from the ideas of Keynes. The concept of a mixed economy means that both private enterprises and public enterprises coexist.

However, the condition attached is that the private enterprises must work for serving society rather than having only self-interest.

Further, private enterprises may not be allowed in every sector of the economy like area of national importance.

Answer: (a)

Central Value Added Tax (CENVAT), popularly known as Central Excise Duty, is a duty on the manufacture/ production of goods in India. It is an adaptation of VAT, which came into force in the country in 1986 in the form of MODVAT (Modified Value Added Tax).

MODVAT was re-named as CENVAT on 1 April 2000.

Answer: (c)

Fiscal policy is the use of government revenue collection (mainly taxes) and expenditure (spending) to influence the economy. In India, the fiscal policy is formulated by the Union Ministry of Finance.

Fiscal policy is distinguished from monetary policy that deals with the money supply, lending rates and interest rates and is formulated by the Reserve Bank of India.

Answer: (d)

The labour force of an economy is known as the activity rate (also called the participation rate). It is shown in per cent and always as a proportion of an economy.

The concept of the ‘demographic dividend’ is related to this rate.

Answer: (a)

There are 5 Maharatna companies: Coal India Limited, Indian Oil Corporation Limited, NTPC Limited, Oil and Natural Gas Corporation Limited and Steel Authority of India limited. Bharat Heavy Electricals Limited (BHEL) is a navaratna company.