Indian Economy Flashcards
The term ‘mixed economy denoted
Existence of both private and public sectors
In an economy,the sectors are classified into public and private on the basis of
Ownership of enterprises
The “ Dual economy’ is a mixture of
Traditional agriculture sector and modern industrial sector
Which sector of Indian economy has shown remarkable expansion during the last decade?
Tertiary sector
When development in economy takes place, the share of tertiary sector in National income
Keeps on increasing
It will be true to classify India as
A labour surplus economy
Mixed Economy
Where public sector exits along with the private sector in national economy
The Indian Economy is characterised by
- Pre-dominance of agriculture
- Low per capita income
- Massive Unemployment
In India, planned economy is based on
Socialist system
Economic liberation in India started with
Substantial changes in industrial licensing policy
A firm sells new shares worth 1000INR direct to individuals. This transaction will cause
No impact on Gross National Product
Which is included in the private income arising in a country
- Factor income from net domestic product
- Net factor income from abroad
- Current transfers from government
NOT: Current Payments on Foreign loans
In India, agriculture income is calculated by
Output method
Who coined the term ‘Hindu rate of growth’ for Indian economy?
Raj Krishna
GDP at factor cost is
GDP minus indirect taxes plus subsidies
Per capita income is obtained by dividing National Income by
Total population of the country
Which one of the following is a development expenditure?
Irrigation expenditure
Gross Domestic Produt GDP is defined as the value of all
Final goods and services produced in an economy in a year
Depreciation is equal to
Gross National Product - Net National Product
Which one of the following is a method of measurement of national Income?
- Value Added Method
- Income Method
- Expenditure Method
NOT: Investment Method
Net National Product NNP of a country is
GNP minus depreciation allowances
National Income is based on the
Production of goods and services
Which of the following is definitely a major indication of the state of the economy of a country?
Rate of GDP growth
Which of the following can be called as a part of the service sector?
Banking
Many a times we read a term in financial newspapers GDP. What is the full form of the same?
A gross domestic product
In terms of economics, the total value of the output (goods and services) produced and income received in a year by a domestic residents of a country put together is called
Gross National Product
Which of the following is the correct definition of the term National income?
This is the measure of the volume of commodities and services turned out during a given period counted without duplication
Which of the following is equivalent to National Income?
Net National Product at factor cost
Fact
- Per Capita Income of India does not give a complete picture of the economic growth of the country
- per capita income of a country is not independent of the size of its population
Which sector of Indian Economy contributes largest to the Gross National Product?
‘Tertiary sector
National Income estimates in India are prepared by
Central statistical organisation
Per capita income of a country derived from
National Income and Population both
The main source of National income in India is
Service Sector
The base year for computation of National lncome in India is
1993-94
In India, Hindu Rate of Growth is associated with which of the following
National Income
Which one of the following is an example of economic overheads?
- Schools
- Sanitary Facilities
- Roads and Railways
NOT: Coal Mines
In India, service sector includes
Transport and communication
Hotels
In India, tertiary sector includes
Trade and transport
Finance and Real Estate
Hindu Rate of Growth refers to the rate of growth of
GDP
Who had estimated National Income in India first?
Dadabhai Naoroji
Who wrote a book describing the theory of economic drain of India during British rule?
Dadabhai Naoroji
As the economy develops, the share of the tertiary sector in the GDP
Increases
The National Income of a country is
Sum total of factor incomes
In an open economy, the National Income (Y) of the economy is ( C = Consumption, I = Investment, G = Government expenditure, X = Total exports, M = Total import)
Y=C+I-G+(X-M)
The new GDP series released by the CSO in February, 1999 is with reference to base price of
1993-94
The per capita income in India was 20INR in 1967-68 was ascertained for the first time by
Dadabhai Naoroji
The growth rate of Per capita income at current prices is higher than that of Per Capita Income at constant prices, because the latter takes into account the rate of
Increase in price level
The most appropriate measure of a country’s economic growth is its
Gross Domestic Product
The term National Income represents
Gross National Product at market price minus depreciations and indirect taxes plus subsidies
The descending order of these states with reference to their level of Per Capita Net State Domestic Product is
- Maharashtra
- Gujarat
- Karnataka
- Tamil Nadu
Which one among the following countries has the lowest GDP per capita
India
Which one of the following is correct sequence in the decreasing order of contribution of different source to the Gross Domestic Product of India?
Service-Industry-Agriculture
Under which of the following circumstances may ‘capital gains’ arise?
- When there is a natural increase in the value of the property owned
- When you purchase a painting and there is a growth in its value due to increase in its popularity
In India, in the overall Index of Industrial production, the Indices of Eight core Industries have a combined weight of 37.90% Which of the following are among those eight core industries ?
- Cement
- Fertilizers
- Natural Gas
- Refinery products
- Textiles
Hindu growth rate is related to
GDP
Under which plan did the Government introduce an agricultural strategy which gave rise to Green Revolution/
Third five year plan
The second five year plan was based on
Mahalanobis Model
The planning commission of India is
A non statutory body
Mahalanobis Model has been associated with which give year plan?
Second Five Year Plan
Which plan gave emphasis on removal of poverty for the first time?
Fifth
The period of the Eleventh Five Year plan is
2007-2012
The planning commission of India was constituted in the year
1950
Which one of the following is correct
- First five year plan : 1951-56
- Second Five year plan : 1956-61
- Third Five year plan : 1961-66
Not : Fourth five year plan : 1966-71
In the post independence period, economic reforms were first introduced in India under
PV Narasimha Rao Government 1990
Only one of the following can be the ex-officio chairman of the planning commission. He is the
Prime Minister
Which of the following is an extra-constitutional and non-statutory body?
Planning commission
A rolling plan refers to a plan which
Changes its allocations and targets every year
Which one of the following Fiver Year plans of India had growth with social justice and equality for achieve in its goal as the main focus
IX
Which of the following is/ are included in ‘Deficit Financing’ in India. There term is used frequently in economic planning
- Borrowing from the Reserve Bank of India
- Issue of new currency notes
- Withdrawal of past balances/surpluses etc
Which one of the following is within the duties of the planning commission?
- To define the stage of growth and suggest allocation of resources
- To make an assessment of the material, capital and Human Resources of the country
- To prepare the annual central budget
NOT: To determine the nature of machinery required for implementation of plan proposals
Which Five year plan had an objective of ‘Rapid industrialisation with particular emphasis on development of basic and heavy industries?
Second
Which is the highest body that approves Five year plans in the country?
national Development council
In India, the concept of ‘minimum needs’ and directed anti - poverty programmes’ were the innovation of
Five five year plan
9th Plan in India covers the period of
1997-2002
What is the Tenth Plan period?
Year 2002 - 2007
When was the Planning Commission established?
15th March 1950
Economic Planning on
Concurrent list
The outline of second five year plan was made by
PC Mahalanobis
NABARD was established in
6th Five year plan
The main objective of the 12th five year plan 2012-17
Faster, sustainable and more inclusive growth
The period of Plan holiday in India was
1966-69
The rolling plan concept in national planning was introduced by
The JANTA PARTY Government
In which Five year plan, the main objective was the eradication of poverty
Fifth five year plan
Which of the following is a constitutional group?
- Election commission
- Finance Commission
- Inter-State Council
NOT: Planning Commission
The rolling plan for backward countries was suggested by
Gunnar Myrdal
Which one of the following statements not is true?
Planning commission is the highest decision-making body for planning in India
__________ is the chairman of planning commission
Prime Minister
The national development council is preside over byt he
Prime minister of India
Secretary of the planning commission is also the
Secretary for the National Development council
The final authority in India to adopt the Five Year plan for the country vests in
The national development council
The National Development council
- Discuss progress of the National Plan
- Suggests the way to achieve goals of the National Plan
- Gives guidelines to formulate the National Plan
The slogan ‘Garibi Unmulan’ (Poverty eradication) was given in which Five year plan?
Fifth plan
In which Five year plan, Economic development Rate was maximum/
10th Five year plan
In which one of year ‘Rolling plan’ was in operation in India/
1978-79
Inclusive growth would necessitate
- Development of infrastructure facilities
- Revival of agriculture
- Increase availability of social service such as education and health
The theme of the approach paper of the Eleventh Five Year Plan has been
Towards faster and more inclusive growth
National Development council was constituted on
August 6, 1952
Planning was considered a prerequisite
- For balanced socio-economic development
- For extending the benefits of development in an even manner
- For focussing on removal of regional disparities
- For maximising the utilisation of available resources
National Horticulture Mission was launched in which of the following Five Year Plans?
10th Five Year Plan
‘Twenty Point Programme’ (Beessutri Karyakrama) was first launched in the year?
1975
Which of the following is an extra-constitutional body?
Nithi Ayog
Who was the first chairman of Planning commission of India?
Pt. Jawahar Lal Nehru
Who presides over the National Development Council of India?
Prime Minister of India
Planning in India, in real sense, began with the second five year plan. Who was the architect of Indian Planning?
PC Mahalanobis
Which of the following experienced the fastest expansion during the plan in India?
Services
Whose name is associated with formulation of planning strategy in Second Five Year Plan?
Prasanta Chandra (PC) Mahalanobis
Primary emphasis during Second Plan was laid on the development of
basic and key industries
The iron and steel plants of Rourkela and Durgapur were conceived under the
Second five year plan
National Development Council (NDC) deals with
The approval of Five year plans
The real introduction of Decentralized Planning in India was made for the first time during the
9th plan
The major emphasis in the First Five year plan was on
Agriculture
Rourkela Steel plant was set up with the assistance from
West Germany
Planning Commission was established in 1950 through
An executive order
During the Five Year Plan was the Emergency clamped, new elections took place and the Janata party was elected?
Fifth
The ___________ plan emphasized on the establishment of heavy industries
Second Five year
