Answer is Option B. -> Only 1 Answer: (b)
Negative Inflation is a decrease in price level and economic growth is defined as GDP rise. A decrease in inflation means the prices have fallen.
So, there is an increase in purchasing power of money. It is increased consumption therefore GDP increases.
Question 2. Planning was considered a prerequisite :
For balanced socio-economic development
For extending the benefits of development in an even manner.
For focussing on removal of regional disparities
For maximizing the utilization of available resources
Select the correct answer using the codes given below :Codes :
Answer is Option D. -> All the above Answer: (d)Planning was considered for balanced socio-economic development to focus on removal of regional disparities and maximizing the utilization of available resources.
Question 3. Net National Product (NNP) of a country is
Answer is Option D. -> GNP minus depreciation allowances Answer: (d)
The Net National Product (NNP) of a country is GNP minus depreciation allowances. NNP is the actual addition to the year’s wealth.
While calculating GNP, we ignore depreciation of assets but in reality, the process of production uses up the fixed assets or there is some wear and tear or fixed assets by process of depreciation.
In order to arrive at NNP, we deduct depreciation from GNP.
Question 4. The national income of a country for a given period is equal to the
Sum of total consumption and investment expenditure
Total value of goods and services produced by the nationals
Answer is Option D. -> Per capita real income Answer: (d)
The most appropriate measure of a country’s economic growth is its per capita real income. Per capita income is average income, a measure of the wealth of the population of a nation.
It is used to measure a country’s standard of living thus a better indicator of economic growth. Economic growth is the increase in the inflation-adjusted market value of the Goods and services produced by the economy over time.
Question 8. The most appropriate measure of a country’s economic growth is its
Answer is Option C. -> Both 1 and 2 Answer: (c)
The Second Five Year Plan heralded in a true sense the Socialist Project of the then Prime Minister, Jawaharlal Nehru. The economic policies of Nehru were heavily influenced by the erstwhile Union of Soviet Socialist Republics (USSR) which had followed the path of speedy industrialisation to expand the manufacturing base of its economy.
The Second Five year Plan focused mainly on heavy industry as against the First Plan which was essentially an agricultural plan. This was done to boost domestic production and manufacturing of goods. The third plan aimed to achieve self-sufficiency in foodgrains and to increase agricultural production to meet the requirements of industry and exports.
Question 10. Consider the following stages of demographic transition associated with economic development:
Low birth rate with a low death rate
High birth rate with a high death rate
High birth rate with a low death rate
Select the correct answer using the following codes:
Answer is Option C. -> 2, 3 and 1 Answer: (c)
With low economic development, generally, the economy has a high birth rate and high death rate with less awareness and improper healthcare.
As an economy develops, the birth rate remains high but the death rate declines due to improved healthcare. However, with the highest economic development, birth rate and death rate lowers because of max awareness and excellent healthcare.