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Total Questions : 150 | Page 4 of 15 pages
Question 31. The growth rate of per capita income at current prices is higher than that of per capita income at constant prices, because the later takes into account the rate of
  1.    increase in price level
  2.    growth of population
  3.    increase in the wage rate
  4.    growth of money supply
 Discuss Question
Answer: Option A. -> increase in price level
Answer: (a)
Question 32. As per the Human Development Report 2015, consider the following statements.
  1. India ranks 130 out of 188 countries.
  2. HDI is based on the indices for life expectancy education and PPP.
  3. In comparison to other nations in the BRICS, India has the lowest rank.
Which of the statement(s) given above is/are correct?
  1.    Only 2
  2.    1 and 2
  3.    1, 2 and 3
  4.    2 and 3
 Discuss Question
Answer: Option D. -> 2 and 3
Answer: (d)
Question 33. One of the problems in calculating National Income in India is
  1.    Inflation
  2.    Under-employment
  3.    Non-monetised consumption
  4.    Low level of savings
 Discuss Question
Answer: Option C. -> Non-monetised consumption
Answer: (c)
Question 34. When did the Government of India established the independent Ministry for ‘Women and Child Development’?
  1.    1987
  2.    1985
  3.    1988
  4.    1986
 Discuss Question
Answer: Option B. -> 1985
Answer: (b)
Question 35. In the post-Independence period, economic reforms were first introduced in India under :
  1.    Indira Gandhi Government (1980)
  2.    Janata Party Government (1977)
  3.    Rajiv Gandhi Government (1985)
  4.    P.V. Narsimha Rao Government (1990)
 Discuss Question
Answer: Option D. -> P.V. Narsimha Rao Government (1990)
Answer: (d)
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 under the PV Narasimha Rao Government in 1990.
Question 36. Who coined the term ‘Hindu rate of growth’ for Indian economy?
  1.    Kirit S. Parikh
  2.    A.K. Sen
  3.    Raj Krishna
  4.    Montek Singh Ahluwalia
 Discuss Question
Answer: Option C. -> Raj Krishna
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.
Question 37. Human Development Index comprises literacy rates, life expectancy at birth and
  1.    GDP per head at real purchasing power.
  2.    GDP per head in the US dollars.
  3.    GNP in US dollars
  4.    National Income per head in US dollars.
 Discuss Question
Answer: Option A. -> GDP per head at real purchasing power.
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.
Question 38. National income is based on the
  1.    production of goods and services
  2.    total revenue of the state
  3.    net profit earned and expenditure made by the state.
  4.    the sum of all factors of income
 Discuss Question
Answer: Option A. -> production of goods and services
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
gross domestic product (GDP),
gross national product (GNP),
net national income (NNI), and
adjusted national income (NNI* adjusted for natural resource depletion).
Question 39. In India, planned economy is based on?
  1.    Socialist system
  2.    Gandhian system
  3.    Capitalist system
  4.    Mixed economy system
 Discuss Question
Answer: Option D. -> Mixed economy system
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.
Question 40. Which one of the following organisations publishes the Human Development Report?
  1.    UNDP
  2.    UNESCO
  3.    IMF
  4.    World Bank
 Discuss Question
Answer: Option A. -> UNDP
Answer: (a)

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