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MCQs

Total Questions : 150 | Page 3 of 15 pages
Question 21. Which among the following are the factors that determine the national income of a country?
  1.    The state of technical knowledge
  2.    Quantity and Quality of factors of produced
  3.    All of the above
  4.    Economic and Political stability
 Discuss Question
Answer: Option C. -> All of the above
Answer: (c)
Question 22. Consider the following statements :
  1. In the history of Indian planning, the actual growth rate of the GDP has never been higher than the targeted growth rate.
  2. In the first five year plan, the actual GDP growth rate was more than the targeted growth rate.
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 A. -> 2 only
Answer: (a)In the first Five Year Plan, the actual GDP growth rate was more than the targeted growth rate.
Question 23. The National Income of a country is
  1.    sum total of factor incomes
  2.    the annual revenue of the government
  3.    surplus of PSU’S
  4.    export minus import
 Discuss Question
Answer: Option A. -> sum total of factor incomes
Answer: (a)
National income is the sum total of wages, rent, interest, and profit earned by the factors of production of a country in a year.
Thus it is the aggregate values of goods and services rendered during a given period counted without duplication.
Question 24. The philosophy of ‘Laissez-Faire’ is associated with
  1.    Industrial state
  2.    Gandhian state
  3.    Socialist state
  4.    Welfare state
 Discuss Question
Answer: Option A. -> Industrial state
Answer: (a)The philosophy of ‘Laissez-Faire’ is associated with industrial state. Laissez Faire - Abstention by Govt. from interfering in the working of free market.
Question 25. Consider the following statements about ‘World Happiness Report 2018’ released by United Nations in March 2018.
  1. India dropped 11 spots from its ranking in the previous year 2017.
  2. Finland with 1st rank is the happiest country.
  3. This report includes only 155 countries.
Of the above, the correct statement(s) is/are
  1.    Only 1 and 3
  2.    Only 1
  3.    Only 2 and 3
  4.    Only 1 and 2
 Discuss Question
Answer: Option D. -> Only 1 and 2
Answer: (d)
Question 26. Harrod-Domar model of growth is based on the concepts of and their equality.
  1. Population and productivity growth.
  2. Investment and average growth rate of income.
  3. Actual, warranted and natural growth rate.
  4. Productivity growth and investment growth. Codes:
  1.    3 only
  2.    1 and 4
  3.    1 and 3
  4.    1, 2 and 3
 Discuss Question
Answer: Option A. -> 3 only
Answer: (a)
Question 27. Which of the following would cause consumption to rise?
  1.    a greater proportion of the population is between age 20 and 30
  2.    the GDP Deflator rises
  3.    transitory income increases
  4.    income is taken from poor people and given to rich people
 Discuss Question
Answer: Option A. -> a greater proportion of the population is between age 20 and 30
Answer: (a)A greater proportion of the population is between age 20 and 30.
Question 28. Indicate the vital change in the measurement of National Income of India.
  1.    Calculation has been changed from factor cost to market prices
  2.    Base year has been changed from 2004-05 to 2011-12
  3.    Both the base year and calculation method have been changed
  4.    Calculation has been changed from current prices to constant prices
 Discuss Question
Answer: Option C. -> Both the base year and calculation method have been changed
Answer: (c)
Question 29. The term mixed economy denoted the existence of both
  1.    private and public sector
  2.    rural and urban sector
  3.    heavy and small industry
  4.    developed and under developed sector
 Discuss Question
Answer: Option A. -> private and public sector
Answer: (a)
The concept of a mixed economy evolved from the ideas of Keynes. The concept of a 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 an area of national importance.
There are 3 types of economic systems:-
Capitalism - the private ownership of the means of production (capital) and a market economy for coordination. As-corporate capitalism
Mixed Economy Example - American school, Japanese system, Nordic model, Social corporatism etc
Socialism - In this economic system, two coordinating mechanisms (planning and market) are suspended into a planned socialist and market socialist systems.
Question 30. In which year was the 20 point economic programme was announced for the very first time?
  1.    2006
  2.    1975
  3.    1986
  4.    1982
 Discuss Question
Answer: Option B. -> 1975
Answer: (b)
The Twenty Point Programme was initially launched by Prime Minister Indira Gandhi in 1975 and was subsequently restructured in 1982 and again in 1986. With the introduction of new policies and programmes, it has been finally restructured in 2006 and it has been in operation at present.
The basic objective of the 20-Point Programme is to eradicate poverty and to improve the quality of life of the poor and the underprivileged population of the country.

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