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Total Questions : 150 | Page 14 of 15 pages
Question 131. Consider the following statements :
  1. Higher growth in GDP and population can occur together.
  2. Per capita income always decreases with high population growth.
Which of the statements given above is/are correct?
  1.    2 only
  2.    1 only
  3.    Both 1 and 2
  4.    Neither 1 nor 2
 Discuss Question
Answer: Option C. -> Both 1 and 2
Answer: (c)Higher growth in GDP and population can occur together. Per capita income always decreases with high population growth as income per person decreases with rise in population.
Question 132. Which one of the following is not a constituent of Human Development Index?
  1.    Life Expectancy at Birth
  2.    Health and Nutrition
  3.    Gross Enrolment Rate
  4.    Per Capita Income
 Discuss Question
Answer: Option B. -> Health and Nutrition
Answer: (b)
Question 133. The “Dual Economy” is a mixture of ?
  1.    state ownership of the means of production
  2.    industrial sector and manufacturing sectors
  3.    traditional agriculture sector and modern industrial sector
  4.    industrial sector and trading of goods obtained through imports
  5.    None of these
 Discuss Question
Answer: Option C. -> traditional agriculture sector and modern industrial sector
Answer: (c)
A dual economy is the existence of two separate economic sectors within one country, divided by different levels of development, technology, and different patterns of demand.
The concept was originally created by Julius Herman Boeke to describe the coexistence of modern and traditional economic sectors in a colonial economy.
Question 134. Consider the following statements in regard to inclusive development:

  1. Inclusive developments refer to the social inclusion of the socially excluded sections of the society.

  2. Creating productive and gainful employment opportunities.


Which of the statements given above is/are correct?
  1.    2 only
  2.    1 only
  3.    Both 1 and 2
  4.    Neither 1 nor 2
 Discuss Question
Answer: Option C. -> Both 1 and 2
Answer: (c)
Inclusive growth is a concept that includes an equitable allocation to every section of society.
It creates an environment of equality in opportunity in all dimensions such as employment creation, market, consumption, and production and has created a platform for people who are poor to access a good standard of living.
Question 135. In India, rural incomes are generally lower than urban incomes. Which of the following reasons account for this?

  1. A large number of farmers are illiterate and know little about scientific agriculture.

  2. Prices of primary products are lower than those of manufactured products.

  3. Investment in agriculture has been lower when compared to investment in the industry


  1.    1 and 3
  2.    1 and 2
  3.    1, 2 and 3
  4.    2 and 3
 Discuss Question
Answer: Option C. -> 1, 2 and 3
Answer: (c)
In India a large number of farmers are illiterate and know little about scientific agriculture, prices of primary products are lower than those of manufactured products and Investment in agriculture has been lower when compared to investment in the industry.
All these reasons are responsible for lower rural income.
Question 136. Which one of the following economists proposed the LPG model of economic development in India?
  1.    K.V. Kamath
  2.    Y.B. Reddy
  3.    Manmohan Singh
  4.    None of these
 Discuss Question
Answer: Option C. -> Manmohan Singh
Answer: (c)
The economy of India had undergone significant policy shifts at the beginning of the 1990s.
This new model of economic reforms is commonly known as the LPG or Liberalization, Privatization and Globalization model.
LPG model of economic development in India was proposed by Dr Manmohan Singh, economist and finance minister at that time.
Question 137. In terms of economics, the total value of the output (goods and services) produced and income received in a year by a domestic resident of a country put together is called
  1.    Gross National Product
  2.    Net National Product
  3.    Gross National Income
  4.    National income
 Discuss Question
Answer: Option A. -> Gross National Product
Answer: (a)
GNP is the total value of all final goods and services produced within a country in a particular year, plus income earned by its citizens (including income of those located abroad), minus income of non-residents located in that country.
GNP measures the value of goods and services that the country’s citizens produced regardless of their location.
Gross National Income - It is total domestic and foreign output claimed by residents of a country consisting of GDP plus factor income earned by foreign residents minus income earned in the domestic income by nonresidents.
Question 138. Which sector is the backbone of Indian economy?
  1.    Financial Sector
  2.    Service Sector
  3.    Tourism Sector
  4.    Agriculture Sector
 Discuss Question
Answer: Option D. -> Agriculture Sector
Answer: (d)
Agriculture is the pillar of the Indian economy because of its high share in employment and livelihood creation.
Agriculture and allied activities are the largest contributors to GDP accounting for 27% of the total economy.
Question 139. National Income estimates in India are prepared by
  1.    Reserve Bank of India
  2.    Planning Commission
  3.    Central Statistical Organisation
  4.    Indian Statistical Institute
 Discuss Question
Answer: Option C. -> Central Statistical Organisation
Answer: (c)
Central Statistical Organisation (CSO), prepares the estimates of national income in India.
The first official estimates of the national income, prepared by the CSO at constant prices with the base year 1948-49, as well as at current prices, were brought out in 1956.
Planning Commission - It was an institution of Govt. of India which formulated India’s Five-year plans.
Headquarters - New Delhi
Reserve Bank of India - India’s central banking institution, which controls the monetary policy of the Indian Rupee.
Indian Statistical Institute - Institution devoted to research, teaching and application of statistics, natural science & social science.
Question 140. The Indian economy is characterised by
  1.    low per capita income
  2.    pre-dominance of agriculture
  3.    massive unemployment
  4.    all of the above
 Discuss Question
Answer: Option D. -> all of the above
Answer: (d)The Indian Economy is characterised by pre-dominance of agriculture, low per capita income and massive unemployment. In India contribution of agriculture to GDP is around 17.9%.

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