national income & human development index section 2 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (c)

The term was coined by Indian economist Raj Krishna.

The Hindu rate of growth is a derogatory term referring to the low annual growth rate of the socialist economy of India before 1991, which stagnated around 3.5% from the 1950s to the 1980s.

Answer: (a)

National Income is based on the production of goods and services.

A variety of measures of national income and output are used in economics to estimate total economic activity in a country or region, including

1. gross domestic product (GDP),
2. gross national product (GNP),
3. net national income (NNI), and
4. adjusted national income (NNI* adjusted for natural resource depletion).

Answer: (a)

HDI combines three dimensions:

• A long and healthy life: Life expectancy at birth,
• Education index: Mean years of schooling and
• Expected years of schooling and a decent Standard of living.

Answer: (a)

Answer: (d)

The planned economy is based on the mixed economy system. The concept of a mixed economy evolved from the ideas of Keynes. The concept of 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 areas of national importance. Gandhian Economic order is based on co-operation equality, human values self-sufficient village, nationalisation of basic industries & theory of trusteeship.

A socialistic economic system is characterised by social ownership and democratic control of the means of production.

Capitalist system: It is the system where means of production are owned by private individuals profit is the main motive & there is no interference by the Govt in the economic activity.