Lesson – Indian Economy
Q301. The preparation of National Income Estimates is the responsibility of the
(a) Planning Commission
(b) National Development Council
(c) National Sample Survey Organisation
(d) Central Statistical Organisation
Ans: (d)
Q302. What is the revised upper limit for foreign direct investment in telecom service companies ?
(a) 49 per cent
(b) 51 per cent
(c) 66 per cent
(d) 74 per cent
Ans: (d)
Q303. Commercial banks lend to which of the following Priority sectors ?
(a) Heavy Industries
(b) Agriculture, Small scale industries
(c) Foreign Companies
(d) State Government in emergency situation
Ans: (b)
Q304. The Central Statistical Organisation
(CSO) provides data under a new revised series in which the base year is taken as
(a) 1960-61
(b) 1970-71
(c) 1980-81
(d) 1990-91
Ans: (*)
Q305. Gross Domestic Product is defined as the value of all
(a) goods produced in an economy in a year
(b) goods and services produced in an economy in a year
(c) final goods produced in an economy in a year
(d) final goods and services produced in an economy in a year
Ans: (d)
Q306. As per newspapers report what percent of Government stake will be disinvested in Rashtriya Ispat Nigam Ltd. (RINL) ?
(a) 5%
(b) 50%
(c) 10%
(d) 12%
Ans: (c)
Q307. Which Indian private sector company has the largest sales turnover?
(a) Tata Sons
(b) Reliance Industries
(c) ITC Ltd.
(d) Hindustan Lever Ltd.
Ans: (b)
Q308. Consider the following reasons of continuous decline in average land-holding size in India :
A. Law of inheritance
B. Consolidation
C. Farm mechanisation
D. Desire of land ownership Pick the correct answer from the options given below :
(a) A, B, C and D
(b) A, C and D
(c) A and D
(d) A and B
Ans: (c)
Q309. Which of the following taxes is levied by the State Government only?
(a) Wealth tax
(b) Entertainment tax
(c) Income tax
(d) Gift tax
Ans: (b)
Q310. The first Five Year Plan of the Government of India was based on
(a) Leontief input-output model
(b) Harrod-Domar model
(c) Mahalanobis two-sector model
(d) Mahalanobis four-sector model
Ans: (b)
Q311. Indian Economy is a/an :
(a) Independent Economy
(b) Mixed Economy
(c) Capitalist Economy
(d) Communist Economy
Ans: (b)
Q312. Which one of the following is not an objective of Fiscal Policy in India?
(a) Full Employment
(b) Price Stability
(c) Equitable Distribution of Wealth and Incomes
(d) Regulation of International Trade
Ans: (d)
Q313. In the post-independence period, economic reforms were first introduced in India under
(a) P.V. Narasimha Rao Government (1990)
(b) Indira Gandhi Government (1980)
(c) Rajiv Gandhi Government (1985)
(d) Janata Party Government
Ans: (a)
Q314. The Tarapore Committee recommended that before capital account was made convertible the rate of inflation should be brought down for three years to within :
(a) 3.5%
(b) 0.3%
(c) 4.6%
(d) 5.7%
Ans: (a)
Q315. Beginning from the Financial Year 2017–18 NITI Ayog plans to replace the 5 year plans with which of the following?
(a) 5 year Vision Document
(b) 10 year Vision Document
(c) 15 year Vision Document
(d) 20 year Vision Document
Ans: (c)
Q316. Which from the following is not true when the interest rate in the economy goes up ?
(a) Savings increases
(b) Lending decreases
(c) Cost of production increases
(d) Return on capital increases
Ans: (d)
Q317. What is the accounting year of the Reserve Bank of India ?
(a) April-March
(b) July-June
(c) October-September
(d) January-December
Ans: (b)
Q318. Current Fiscal Deficit percentage in GDP is
(a) 7
(b) 4
(d) 1
Ans: (*)
Q319. The Draft of the Five Year Plans in India is approved by the
(a) National Development Council
(b) Planning Commission
(c) National Productivity Council
(d) Ministry of Finance
Ans: (a)
Q320. How does the consumer benefit with VAT ?
(a) It removes tax on tax and thus reduces prise-rise
(b) Reduces the cost of production
(c) With the abolition of the sales tax
(d) Due to the exemption of small businesses from the tax within certain limits prescribed by the State
Ans: (a)