macro fundamentals, GDP, investment & growth section 4 Practice Questions Answers Test with Solutions & More Shortcuts
Macro fundamentals, GDP, Investment, Growth PRACTICE TEST [4 - EXERCISES]
macro fundamentals, GDP, investment & growth section 1
macro fundamentals, GDP, investment & growth section 2
macro fundamentals, GDP, investment & growth section 3
macro fundamentals, GDP, investment & growth section 4
Question : 16 [UPPCS (Mains) 2008]
The second Green Revolution proposed by the Prime Minister does not include
a) minimisation of the post harvest wastage
b) help to Indian farmers to participate in global agricultural trade
c) encouragement to foreign direct investment in agriculture
d) improvement in storage of crops
Answer »Answer: (c)
Question : 17 [HPPSC (Pre) 2010]
Indian agriculture has the following features.
- Dependence of agriculture on the monsoons
- Abolition of zamindari
- Absence of trade unions in the agricultural sector
- Heavy pressure of population on land
a) Only 1 and 2
b) Only 1
c) Only 4
d) 1, 2 and 3
Answer »Answer: (c)
Question : 19
The decrease in dependency ratio (ratio of dependent population to working-age population) of a country may lead to which of the following situation:
- Increase in the savings rate
- Decrease in the savings rate
- Increase in Capital Formation
- Decrease in Capital Formation
a) (i) & (iv) only
b) (ii) & (iv) only
c) (i) & (iii) only
d) (ii) & (iii) only
Answer »Answer: (c)
Whenever in any country, the working population increases and dependent population decreases, the savings in the economy increases. (This also happens at the family level.
If a family has more working members and fewer dependents then the savings of the family increases). The increased savings leads to an increase in investments.
So, (i) & (iii) statements are true.
Question : 20
Consider the following statements regarding Capital formation:
- Gold and valuable metals are part of Fixed Capital Formation
- Intellectual properties are part of Fixed capital formation
- Construction of buildings and other structures are part of Capital Formation
a) (ii) & (iii) only
b) (i) & (iii) only
c) (i) only
d) (iii) only
Answer »Answer: (a)
Gross Capital Formation = Gross Fixed Capital Formation (machinery + equipment + building + cultivated biological resources + intellectual property) + Valuable Metals + Change in stock/inventory
Gross fixed capital formation is around 30% and valuable metals and change in the stock is one per cent each.
So Gross Capital Formation or Gross Investment is around 32%. Mostly we use the gross fixed investment for all calculations and growth purposes.
IMPORTANT indian economy mcq EXERCISES
Macro fundamentals, GDP, Investment, Growth Shortcuts »
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indian economy MCQ CATEGORIES
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» Introduction to Indian Economy
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» Planning, Economic Development & Five year Plans
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» National Income & Human Development Index
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» Agriculture Sector, Subsidy and Food Processing
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» Industries, Manufacturing & Service Sectors
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» Inclusive growth, Sustainable development and employment
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» Poverty & Unemployment
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» Introduction to Micro Economics
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» Introduction to Macro Economics
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» Macro fundamentals, GDP, Investment, Growth
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» Demand & Supply, Profit Loss, Inflation & Price Index
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» Fiscal Policy, Public Finance and Monetary Policy
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» Money Supply, Banking and Financial Institutions
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» Taxes Types, Methods & Budgeting Process
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» Banking, Security Market & Insurance
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