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MCQs

Total Questions : 150 | Page 15 of 15 pages
Question 141. Economic liberalization in India started with?
  1.    Doing away with procedural formalities for foreign direct investment
  2.    The convertibility of Indian rupees
  3.    Substantial changes in industrial licensing policy
  4.    Significant reduction in tax rates
 Discuss Question
Answer: Option C. -> Substantial changes in industrial licensing policy
Answer: (c)
With the introduction of Economic liberalisation requirement for government licensing has been abolished except for a small list of strategic and potentially hazardous industries and a few industries which are reserved for the small scale sector.
For most industries however industrial investment has been effectively delicensed and investors are free to set up new units or expand existing units subject only to environmental clearances.
Question 142. Consider the following statements:
  1. Since 2005, Indian government adopted Tendulkar methodology which moved away from calorie anchor to a basket of goods and used rural urban and regional minimum expenditure per capita necessary to survive.
  2. C. Rangrajan committee was set up in 2013 for poverty estimation in India.
Which of the statements given above is/are in correct?
  1.    1 and 2
  2.    2 only
  3.    1 only
  4.    None
 Discuss Question
Answer: Option B. -> 2 only
Answer: (b)C. Rangrajan committee was set up in 2012.
Question 143. The Multi-Dimensional Poverty India developed by Oxford Poverty and Human Development Initiative with UNDP support covers which of following?
  1. Deprivation of Education, health, assets and services at household level.
  2. Purchasing power parity at national level.
  3. Extent of budget deficit and GDP growth rate at national level.
Select the correct answer using the codes given below.
  1.    1 and 3
  2.    Only 1
  3.    1, 2 and 3
  4.    2 and 3
 Discuss Question
Answer: Option B. -> Only 1
Answer: (b)
Question 144. Which of the following causes have been mainly responsible for the slow growth of real per capita income in India?
  1. Rapid rise in population
  2. Rapid rise in prices
  3. Slow pace of progress in agriculture and industrial fields
  4. Non-availability of foreign exchange
Choose the correct answer from the codes given below.
  1.    Only 1 and 3
  2.    Only 1 and 2
  3.    All of these
  4.    Only 1 and 4
 Discuss Question
Answer: Option A. -> Only 1 and 3
Answer: (a)
Question 145. Consider the following statements about the LPG model of economic development process in India?
  1. Disinvestment of profit making public sector Enterprises.
  2. Permitting private sectors to establish Industrial Units without taking a licence.
  3. Chronically sick industries were referred to BIFR for the formulation of revival or rehabilitation plan.
Which of the processes given above is/are taken after adoption of LPG model?
  1.    1 and 3
  2.    1, 2 and 3
  3.    2 and 3
  4.    only 2
 Discuss Question
Answer: Option B. -> 1, 2 and 3
Answer: (b)LPG model of economic development process in India involves disinvestment of profit making public sector enterprises, permitting private sectors to establish industrial units without taking a licence and chronically sick industries were referred to BIFR for the formulation of revival or rehabilitation.
Question 146. Human Development Index (HDI) comprises literacy rates, life expectancy at birth and
  1.    Gross Domestic Product per head at real purchasing power
  2.    Gross Domestic Product per head in US Dollars
  3.    National Income per head in US Dollars
  4.    Gross National Product in US Dollars
 Discuss Question
Answer: Option C. -> National Income per head in US Dollars
Answer: (c)
Question 147. To obtain full benefits of demographic dividend, what should India do ?
  1. Promoting skill development
  2. Introducing more social security schemes
  3. Reducing infant mortality rate
  4. Privatisation of higher education
Which of the above statements is/are correct ?
  1.    None of the above
  2.    2 only
  3.    1 only
  4.    3 and 4 only
 Discuss Question
Answer: Option C. -> 1 only
Answer: (c)To rip maximum demographic dividend, India has to promote skill development. This is what Economic Survey and 12th FYP have been advocating.
Question 148. Depreciation is equal to
  1.    NNP – GNP
  2.    GNP – NNP
  3.    GNP – Personal Income
  4.    Personal Income – Personal Taxes
 Discuss Question
Answer: Option B. -> GNP – NNP
Answer: (b)Depreciation is equal to GNP–NNP (Gross national products–Net national products) In economic, Depreciation is the gradual decrease in the economic value of the capital stock of a form nation or other entity.
Question 149. When National Income is calculated with reference to a base year, it is called
  1.    Real national income
  2.    Nominal national income
  3.    Gross national income
  4.    Net national income
 Discuss Question
Answer: Option A. -> Real national income
Answer: (a)
Question 150. Consider the following statements :

  1. LPG model of the Indian Economy was fully implemented in the Eighth Five Year plan.

  2. The Eighth plan envisaged an annual average growth rate of 5.6% but the real growth rate was 6.8%.


Which of the statements given above is/are correct?
  1.    only 2
  2.    only 1
  3.    Both 1 and 2
  4.    Neither 1 nor 2
 Discuss Question
Answer: Option C. -> Both 1 and 2
Answer: (c)
The economy of India had undergone significant policy shifts at the beginning of the 1990s at the time of the eighth plan. 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.
Moreover, the Eighth plan envisaged an annual average growth rate of 5.6% but the real growth rate was 6.8%.

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