Indian Economy - A Profile
- 1.
Generally an economy is considered under developed if
- A.
The standard of living of people is low and productivity is also considerably low.
- B.
Agriculture is the main occupation of the people and productivity in agriculture is quite low.
- C.
The production techniques are backward.
- D.
All of the above.
Correct Answer
D. All of the above.Explanation
An economy is considered underdeveloped if the standard of living of people is low, indicating a lack of access to basic necessities and a lower quality of life. Additionally, if productivity is considerably low, it suggests that the economy is not efficiently utilizing its resources and is unable to generate sufficient output. Agriculture being the main occupation with low productivity further indicates a lack of diversification and reliance on traditional, less efficient methods. Lastly, the presence of backward production techniques implies a lack of technological advancements and modernization. Therefore, all of these factors collectively contribute to categorizing an economy as underdeveloped.Rate this question:
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- 2.
Which of the following statements is correct?
- A.
Agriculture occupies 10 per cent population of India.
- B.
Nearly 5 per cent population of India is below the poverty line.
- C.
The production techniques are backward.
- D.
None of the above.
Correct Answer
C. The production techniques are backward.Explanation
The correct answer is "The production techniques are backward." This statement suggests that the methods used in agriculture in India are outdated and not efficient. This could imply that there is a need for modernization and improvement in agricultural practices to increase productivity and meet the demands of a growing population.Rate this question:
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- 3.
Which of the statements is correct?
- A.
The tertiary sector contributes the maximum to the GDP.
- B.
India is basically a socialist economy.
- C.
The distribution of income and wealth is quite equitable.
- D.
None of the above.
Correct Answer
A. The tertiary sector contributes the maximum to the GDP.Explanation
The correct answer is that the tertiary sector contributes the maximum to the GDP. This means that the services sector, which includes industries such as banking, retail, tourism, and healthcare, contributes the most to the overall economic output of the country. This statement suggests that the services sector is a significant driver of economic growth in India.Rate this question:
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- 4.
_________________ is the apex bank for agriculture credit in India.
- A.
RBI
- B.
SIDBI
- C.
NABARD
- D.
ICICI
Correct Answer
C. NABARDExplanation
NABARD is the apex bank for agriculture credit in India. NABARD, which stands for National Bank for Agriculture and Rural Development, is responsible for providing and regulating credit for agriculture and rural development in the country. It plays a crucial role in promoting and supporting agricultural activities, rural development, and overall financial inclusion. NABARD works closely with other financial institutions, government agencies, and stakeholders to ensure the availability of credit for the agricultural sector and to enhance the overall productivity and sustainability of rural areas.Rate this question:
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- 5.
The share of agriculture in India's national income has__________________ over the years.
- A.
Remained constant.
- B.
Decreased.
- C.
Increased.
- D.
First decreased and then increased.
Correct Answer
B. Decreased.Explanation
The share of agriculture in India's national income has decreased over the years. This suggests that the contribution of agriculture to the overall economy has become relatively smaller compared to other sectors. This could be due to various factors such as the growth of other industries, urbanization, and changes in the economic structure of the country.Rate this question:
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- 6.
The green revolution is also known as
- A.
Wheat revolution.
- B.
Rice revolution.
- C.
Maize revolution.
- D.
Forest revolution.
Correct Answer
A. Wheat revolution.Explanation
The correct answer is "Wheat revolution." The green revolution refers to a period of technological advancements in agriculture that occurred in the mid-20th century, leading to increased agricultural production. It primarily focused on the development and adoption of high-yielding varieties of wheat, which significantly increased wheat production and helped alleviate food shortages in many parts of the world. The term "Wheat revolution" accurately captures the central role of wheat in this agricultural transformation.Rate this question:
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- 7.
The area under irrigation has __________over the years in India.
- A.
Remained constant.
- B.
Decreased
- C.
Increased.
- D.
First increased and then decreased.
Correct Answer
C. Increased.Explanation
The correct answer is "Increased." This means that the area under irrigation in India has grown over the years. This suggests that more land has been brought under irrigation, indicating an expansion in agricultural practices and potentially improved water management strategies.Rate this question:
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- 8.
Which of the following statements is correct?
- A.
Under zamindari system, farmers directly paid land revenue to the state.
- B.
At present, income tax revenues from the agriculture sector are negligible.
- C.
Commercial banks are providing loans to the agriculture sector at zero interest rate.
- D.
None of the above.
Correct Answer
B. At present, income tax revenues from the agriculture sector are negligible.Explanation
The correct answer is "At present, income tax revenues from the agriculture sector are negligible." This statement is correct because in many countries, including India, agricultural income is exempt from income tax. This exemption is aimed at supporting and promoting the agricultural sector, which is considered essential for food security and rural development. As a result, the income tax revenues generated from the agriculture sector are minimal or negligible.Rate this question:
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- 9.
Which of the following is incorrect?
- A.
Special schemes have been started to promote export of agro-products.
- B.
India has been a big importer of food grains especially since 1990s.
- C.
High yielding varieties programme has resulted in improvement in production and productivity of food grains in India.
- D.
None of the above.
Correct Answer
B. India has been a big importer of food grains especially since 1990s.Explanation
The statement "India has been a big importer of food grains especially since 1990s" is incorrect. India has been a big exporter of food grains, not an importer. This is supported by the first statement which mentions special schemes to promote export of agro-products.Rate this question:
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- 10.
Abolition of intermediaries and tenancy reforms are both parts of
- A.
Industrial reforms in India.
- B.
External sector reforms in India.
- C.
Land reforms in India.
- D.
Banking reforms in India.
Correct Answer
C. Land reforms in India.Explanation
The abolition of intermediaries and tenancy reforms are both measures that are part of land reforms in India. Land reforms aim to address issues related to land ownership, distribution, and tenancy. The abolition of intermediaries refers to the elimination of intermediaries or middlemen who traditionally controlled and exploited agricultural land, while tenancy reforms focus on providing security of tenure and fair treatment to tenants. These reforms aim to redistribute land and promote equitable access and ownership, particularly for marginalized and landless farmers.Rate this question:
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- 11.
Agriculture sector laces the problem of
- A.
Slow and uneven growth.
- B.
Inadequate and incomplete land reforms.
- C.
Inadequate finance.
- D.
All of tine above.
Correct Answer
D. All of tine above.Explanation
The correct answer is "All of the above." This is because the statement mentions three problems in the agriculture sector: slow and uneven growth, inadequate and incomplete land reforms, and inadequate finance. The phrase "All of the above" indicates that all three of these problems are applicable to the agriculture sector.Rate this question:
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- 12.
In absolute terms, the number of people engaged in agricultural activities over the planning period has
- A.
Remained constant.
- B.
Increased.
- C.
Decreased.
- D.
First increased and then decreased.
Correct Answer
B. Increased.Explanation
The correct answer is "Increased." This means that the number of people engaged in agricultural activities has grown over the planning period.Rate this question:
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- 13.
We can say Indian agriculture has become modern since
- A.
There has been an increase in the use of high yielding varieties of seeds, fertilizers, pesticides etc.
- B.
There has been noticeable positive change in the attitude of farmers towards new techniques of production.
- C.
Farmers are increasingly resorting to intensive cultivation, multiple cropping, scientific water management
- D.
All of the above.
Correct Answer
D. All of the above.Explanation
The correct answer is "All of the above" because all the given statements contribute to the modernization of Indian agriculture. The increased use of high yielding varieties of seeds, fertilizers, and pesticides indicates the adoption of advanced techniques and technologies in farming. The positive change in the attitude of farmers towards new production techniques shows their willingness to embrace modern methods. The adoption of intensive cultivation, multiple cropping, and scientific water management practices further indicates the modernization of agriculture. Therefore, all the given statements collectively support the claim that Indian agriculture has become modern.Rate this question:
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- 14.
Which of the following has been specifically established to meet the requirements of credit of the farmers and villagers?
- A.
ICICI bank.
- B.
Regional Rural Banks.
- C.
State Bank of India.
- D.
EXIM bank.
Correct Answer
B. Regional Rural Banks.Explanation
Regional Rural Banks have been specifically established to meet the requirements of credit of the farmers and villagers. These banks were set up to provide banking services in rural areas and cater to the financial needs of the agricultural sector. They focus on providing credit facilities to small and marginal farmers, agricultural laborers, and rural artisans. Regional Rural Banks play a crucial role in promoting rural development and supporting the agricultural economy of the country.Rate this question:
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- 15.
Which of the following statements is incorrect?
- A.
About 80 per cent of agricultural area has irrigation facilities.
- B.
About 60 per cent area is rain fed in India.
- C.
Productivity per worker in agriculture is much lower than that in industry.
- D.
Cropping pattern is quite skewed in India.
Correct Answer
A. About 80 per cent of agricultural area has irrigation facilities.Explanation
The statement "About 80 per cent of agricultural area has irrigation facilities" is incorrect because the correct statement is that about 40 per cent of agricultural area has irrigation facilities in India.Rate this question:
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- 16.
Which of the following statements is correct?
- A.
Countries which are industrially well-developed generally have higher per capita income than countries which are not.
- B.
India is a capital surplus economy.
- C.
Agriculture sector need not depend upon industrial sector for its growth.
- D.
None of the above.
Correct Answer
A. Countries which are industrially well-developed generally have higher per capita income than countries which are not.Explanation
Industrially well-developed countries tend to have higher per capita income because industrialization leads to increased productivity, higher wages, and technological advancements. This allows these countries to produce more goods and services, leading to higher incomes for their citizens. On the other hand, countries that are not industrially well-developed often have lower levels of productivity and limited access to technology, resulting in lower per capita income.Rate this question:
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- 17.
Mahalanobis model stressed upon the establishment of
- A.
Consumer goods industries.
- B.
Export oriented industries.
- C.
Agro-based industries.
- D.
Capital and basic goods industries.
Correct Answer
D. Capital and basic goods industries.Explanation
The Mahalanobis model emphasized the development and growth of capital and basic goods industries. This means that the focus was on industries that produce machinery, equipment, and other essential goods needed for the overall economic development of a country. By prioritizing the establishment of these industries, the model aimed to create a solid foundation for industrialization and economic self-sufficiency. This approach is based on the belief that a strong industrial sector is crucial for achieving sustainable economic growth and reducing dependency on imports.Rate this question:
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- 18.
Three steel plants in Bhilai, Rourkela and Durgapur were set up in the
- A.
First plan.
- B.
Second plan.
- C.
Third plan.
- D.
Fourth plan.
Correct Answer
B. Second plan.Explanation
The correct answer is the Second plan. The question is asking about the time period in which the steel plants in Bhilai, Rourkela, and Durgapur were set up. The First plan was implemented from 1951 to 1956, and the Second plan was implemented from 1956 to 1961. Since the steel plants were set up during the Second plan, it is the correct answer.Rate this question:
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- 19.
The industrial sector faced the process of retrogression and deceleration during
- A.
1950-1965.
- B.
1990-2005.
- C.
1980-1995.
- D.
1965-1980.
Correct Answer
D. 1965-1980.Explanation
During the period of 1965-1980, the industrial sector experienced retrogression and deceleration. This means that there was a decline or regression in the growth and development of the industrial sector during this time. The sector was facing challenges and obstacles that hindered its progress and caused a slowdown in its activities. This could be due to various factors such as economic downturns, political instability, changes in government policies, or technological disruptions. Overall, this period was characterized by a decline in industrial growth and a slower pace of development.Rate this question:
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- 20.
Which of the following has resulted in failure to achieve targets of industrial production?
- A.
Poor planning.
- B.
Power, finance and labour problems.
- C.
Technical complications.
- D.
All of the above.
Correct Answer
D. All of the above.Explanation
All of the above options can contribute to the failure to achieve targets of industrial production. Poor planning can lead to inefficient allocation of resources and lack of coordination, resulting in lower production levels. Power, finance, and labor problems can disrupt the production process, leading to delays or stoppages. Technical complications, such as equipment malfunctions or technological limitations, can also hinder production. Therefore, all these factors combined can lead to the failure to achieve industrial production targets.Rate this question:
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- 21.
Which of the following statements is correct?
- A.
A large number of industries face under utilization of production-capacity.
- B.
The incremental capital -output ratio has been falling over the planning period.
- C.
In terms of regions, industrial development is quite balanced.
- D.
None of the above.
Correct Answer
A. A large number of industries face under utilization of production-capacity.Explanation
A large number of industries facing underutilization of production capacity means that many industries are not using their full potential to produce goods and services. This could be due to various reasons such as lack of demand, inefficient production processes, or economic downturns. This statement suggests that there is room for improvement in the utilization of production capacity in these industries.Rate this question:
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- 22.
About ______________ per cent of the sick units in India are small units.
- A.
10 percent.
- B.
5 percent.
- C.
30 percent.
- D.
96 percent.
Correct Answer
D. 96 percent.Explanation
The correct answer is 96 percent. This means that a large majority (almost all) of the sick units in India are small units. This suggests that there is a higher prevalence of small businesses facing financial difficulties and operational challenges in the country.Rate this question:
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- 23.
The Eleventh Plan aimed at achieving a growth rate of__________________ in the industrial scctor.
- A.
5 percent
- B.
8 percent
- C.
10 percent
- D.
6 percent
Correct Answer
C. 10 percentExplanation
The Eleventh Plan aimed at achieving a growth rate of 10 percent in the industrial sector. This indicates that the plan had set a target for the industrial sector to grow at a rate of 10 percent during the specified period. This growth rate goal suggests that the plan aimed to promote and support the development and expansion of industries, which would contribute to overall economic growth and development.Rate this question:
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- 24.
Oil and Natural Gas Corporation Indian Oil Corporation, Steel Authority of India, and Bharat Heavy lilectricals are all examples of
- A.
Small scale units.
- B.
Private sector units.
- C.
Public sector units.
- D.
Sick units.
Correct Answer
C. Public sector units.Explanation
The given organizations, Oil and Natural Gas Corporation, Indian Oil Corporation, Steel Authority of India, and Bharat Heavy Electricals, are all examples of public sector units. This means that they are owned and controlled by the government. Public sector units are established to provide essential goods and services to the public and are often involved in industries such as energy, manufacturing, and infrastructure development. These organizations play a crucial role in the country's economy and are responsible for contributing to the overall welfare of the society.Rate this question:
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- 25.
The Indian industry faced the process of retrogression and deceleration because of
- A.
Unsatisfactory performance of agriculture
- B.
Slackening of real investment in public sector
- C.
Narrow market for industrial goods, especially in rural areas.
- D.
All of the above.
Correct Answer
D. All of the above.Explanation
The Indian industry faced retrogression and deceleration due to the unsatisfactory performance of agriculture, slackening of real investment in the public sector, and a narrow market for industrial goods, especially in rural areas. These factors combined to create a challenging environment for the Indian industry, leading to a slowdown in growth and progress.Rate this question:
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- 26.
Which of the following statements is correct?
- A.
The industrial pattern on the eve of Independence was quite balanced.
- B.
During the planning period, the structure of Indian industry has shifted in favour of basic and capital goods and intermediate sector.
- C.
Most of the big industrial units in India are sick.
- D.
None of the above.
Correct Answer
B. During the planning period, the structure of Indian industry has shifted in favour of basic and capital goods and intermediate sector.Explanation
During the planning period, the structure of Indian industry has shifted in favor of basic and capital goods and the intermediate sector. This means that there has been a significant increase in the production and focus on essential goods and services, as well as the development of industries that support and provide inputs for other sectors. This shift indicates a strategic move towards self-sufficiency and the development of a strong industrial base in India.Rate this question:
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- 27.
Over the planning period the share of industrial sector in the GDP of India has____________________ .
- A.
Increased
- B.
Decreased
- C.
Remained constant
- D.
Remained above 50 per cent
Correct Answer
A. IncreasedExplanation
The correct answer is "Increased". This means that over the planning period, the share of the industrial sector in India's GDP has gone up. This indicates that the industrial sector has been growing and contributing more to the overall economy.Rate this question:
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- 28.
The industrial sector depends on the agricultural sector because
- A.
The agriculture sector provides food and other products for the consumption purposes of industrial sector.
- B.
The agriculture sector provides raw-materials for the development of a agro-based industries of the economy.
- C.
The agricultural sector provides market for the industrial products.
- D.
All of the above.
Correct Answer
D. All of the above.Explanation
The industrial sector depends on the agricultural sector because the agriculture sector provides food and other products for the consumption purposes of the industrial sector. Additionally, the agriculture sector provides raw materials for the development of agro-based industries in the economy. Furthermore, the agricultural sector also provides a market for the industrial products.Rate this question:
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- 29.
A sick industrial unit is one
- A.
Where most of the employees are sick.
- B.
Which is unable to perform its normal functions and activities of production of goods and services at a reasonable profit on a sustained basis.
- C.
Which is unable to make profits more than 10 per cent of its capital employed.
- D.
Which borrows money from bank for its fixed assets.
Correct Answer
B. Which is unable to perform its normal functions and activities of production of goods and services at a reasonable profit on a sustained basis.Explanation
A sick industrial unit is defined as one that is unable to perform its normal functions and activities of production of goods and services at a reasonable profit on a sustained basis. This means that the unit is facing difficulties in generating profits consistently and is unable to operate efficiently. It may be experiencing financial losses, operational inefficiencies, or other challenges that hinder its ability to function effectively.Rate this question:
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- 30.
AH of the following can cause sickness to an industrial unit except:
- A.
Demand recession.
- B.
Uneconomic size.
- C.
High productivity of labour and capital.
- D.
Financial mismanagement.
Correct Answer
C. High productivity of labour and capital.Explanation
High productivity of labor and capital cannot cause sickness to an industrial unit. In fact, high productivity is usually desirable as it indicates efficient use of resources and increased output. Sickness in an industrial unit is more likely to be caused by factors such as demand recession, which leads to reduced sales and profitability, uneconomic size, which means the unit is too small to be viable, and financial mismanagement, which can result in cash flow problems and insolvency.Rate this question:
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- 31.
Tine service sector in India now accounts for
- A.
More than 80 per cent of GDP.
- B.
More than 70 per cent of GDP.
- C.
More than 50 per cent of GDP.
- D.
More than 90 per cent of GDP.
Correct Answer
C. More than 50 per cent of GDP.Explanation
The correct answer is "More than 50 per cent of GDP." This means that the service sector in India contributes to more than half of the country's Gross Domestic Product (GDP). This indicates that the service industry plays a significant role in the Indian economy, contributing to economic growth and development.Rate this question:
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- 32.
Nearly___________ percent of working population is engaged in the service sector.
- A.
25 percent
- B.
45 percent
- C.
80 percent
- D.
50 percent
Correct Answer
A. 25 percentExplanation
The correct answer is 25 percent because the statement indicates that a certain percentage of the working population is engaged in the service sector. Out of the given options, 25 percent is the lowest percentage, indicating that a relatively small portion of the working population is involved in the service sector.Rate this question:
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- 33.
Service sector accounted for nearly_____________________ percent of exports (2009-10).
- A.
Two Third
- B.
One Fourth
- C.
One Third
- D.
Two Fourth
Correct Answer
C. One ThirdExplanation
The correct answer is "One Third." This means that the service sector accounted for approximately 33.33% of exports in 2009-10.Rate this question:
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- 34.
India has the_________________ largest scientific and technical manpower in the world
- A.
Fifth
- B.
Tenth
- C.
Eighth
- D.
Third
Correct Answer
D. ThirdExplanation
India has the third largest scientific and technical manpower in the world. This means that India has a significant number of individuals who are trained and skilled in scientific and technical fields. The ranking suggests that India's scientific and technical workforce is among the largest globally, indicating the country's strong emphasis on education and investment in these areas.Rate this question:
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- 35.
Which of the following statements is correct?
- A.
The service sector contributes more than half of the GDP of India.
- B.
The scope of attracting tourists is limited as there is hardly any place of tourist attraction in India.
- C.
Generally as an economy grows first service sector grows and then agriculture and industrial sectors grow.
- D.
None of the above.
Correct Answer
A. The service sector contributes more than half of the GDP of India.Explanation
The correct answer is "The service sector contributes more than half of the GDP of India." This statement is correct because the service sector has become a major driver of economic growth in India, accounting for more than 50% of the country's GDP. The service sector includes industries such as banking, finance, telecommunications, tourism, and information technology, which have experienced significant growth in recent years. This has led to a shift in the Indian economy, with services becoming the largest contributor to GDP, surpassing both agriculture and industry sectors.Rate this question:
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- 36.
BPO stands for
- A.
Bharat Petro Organisation
- B.
Business Process Outsourcing
- C.
Big Portfolio outsourcing
- D.
Business Partners Organisation
Correct Answer
B. Business Process OutsourcingExplanation
BPO stands for Business Process Outsourcing. This term refers to the practice of contracting out specific business operations and processes to a third-party service provider. Companies often outsource tasks such as customer support, data entry, payroll processing, and IT services to specialized BPO firms, allowing them to focus on their core competencies and reduce costs. BPO has become a popular strategy for organizations looking to streamline their operations and improve efficiency.Rate this question:
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- 37.
Small scale units exist in India because
- A.
They are labour intensive and India is a labour surplus economy.
- B.
They offer methods of ensuring more equitable distribution of income and wealth.
- C.
They facilitate the creation of a wider entrepreneurial base.
- D.
All of the above.
Correct Answer
D. All of the above.Explanation
Small scale units exist in India because they are labour intensive and India is a labour surplus economy. This means that there is a large pool of available labor in India, making it cost-effective for small scale units to rely on manual labor. Additionally, small scale units offer methods of ensuring more equitable distribution of income and wealth. By providing opportunities for small entrepreneurs to start their own businesses, small scale units contribute to the creation of a wider entrepreneurial base in India. Therefore, all of the above reasons contribute to the existence of small scale units in India.Rate this question:
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- 38.
Which of the following is incorrect?
- A.
GDP at market price = GDP at factor cost plus net indirect taxes.
- B.
NNP at factor cost = NNP at market price minus indirect taxes.
- C.
GNP at market price = GDP at market price plus net factor income from abroad.
- D.
None of the above.
Correct Answer
D. None of the above.Explanation
The given answer "None of the above" is correct because all the statements mentioned in the options are correct. GDP at market price is equal to GDP at factor cost plus net indirect taxes. NNP at factor cost is equal to NNP at market price minus indirect taxes. GNP at market price is equal to GDP at market price plus net factor income from abroad. Therefore, there is no incorrect statement among the given options.Rate this question:
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- 39.
National income differs from net national product at market price by the amount of
- A.
Current transfers from the rest of the world.
- B.
Net indirect taxes.
- C.
National debt interest.
- D.
It does not differ
Correct Answer
B. Net indirect taxes.Explanation
National income is the total income earned by individuals and businesses within a country's borders in a given period. Net national product at market price, on the other hand, is the total value of goods and services produced by a country's residents, including net indirect taxes. Therefore, the correct answer is net indirect taxes, as it is the only option that causes a difference between national income and net national product at market price.Rate this question:
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- 40.
Net national product at factor cost is
- A.
Equal to national income.
- B.
Less than national income.
- C.
More than national income.
- D.
Sometimes less than national income and sometimes more than it.
Correct Answer
A. Equal to national income.Explanation
Net national product at factor cost is equal to national income because both concepts measure the total income generated by the factors of production within a country's borders. Net national product at factor cost calculates the value of all final goods and services produced by the residents of a country, minus any depreciation or wear and tear on capital goods. National income, on the other hand, measures the total income earned by individuals, businesses, and the government within a country during a specific period. Therefore, both concepts represent the same value and are equal to each other.Rate this question:
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- 41.
Transfer payments refer to payments which are made.
- A.
Without any exchange of goods and services.
- B.
To workers on transfer from one job to another.
- C.
As compensation to employees.
- D.
None of the above.
Correct Answer
A. Without any exchange of goods and services.Explanation
Transfer payments refer to payments that are made without any exchange of goods and services. This means that transfer payments are not made in return for any specific product or service. Instead, they are typically made for social welfare programs, such as unemployment benefits, social security, or welfare assistance. These payments are meant to provide financial support to individuals or groups in need, without requiring them to provide any goods or services in return.Rate this question:
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- 42.
The net values added method of measuring national income is also known as :
- A.
Net output method.
- B.
Production method.
- C.
Industry of origin method.
- D.
All of the above.
Correct Answer
D. All of the above.Explanation
The net values added method of measuring national income is also known as the net output method, production method, and industry of origin method. This method calculates national income by summing up the value added at each stage of production in all industries. It takes into account the value added by each industry and eliminates double counting. Therefore, all of the above options correctly describe the net values added method of measuring national income.Rate this question:
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- 43.
Identify the items which is not a factor payment
- A.
Free uniform to defense personnel.
- B.
Salaries to the members of Parliament.
- C.
Imputed rent of an owner occupied building.
- D.
Scholarships given to the scheduled caste students.
Correct Answer
D. Scholarships given to the scheduled caste students.Explanation
Scholarships given to the scheduled caste students is not considered a factor payment because it is a form of financial aid or support provided to students for their education, rather than a payment made to a factor of production. Factor payments refer to the payments made to the owners of the factors of production, such as land, labor, capital, and entrepreneurship. In this case, the other options - free uniform to defense personnel, salaries to the members of Parliament, and imputed rent of an owner-occupied building - can be considered factor payments as they involve compensating individuals for their contribution to the production process.Rate this question:
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- 44.
Mixed income of the self employed means
- A.
Gross profits received by proprietors
- B.
Rent, interest and profit of an enterprise.
- C.
Combined factor payments which are not distinguishable.
- D.
Wages due to family workers.
Correct Answer
C. Combined factor payments which are not distinguishable.Explanation
The mixed income of the self-employed refers to the combined factor payments that cannot be distinguished. This means that it includes various sources of income, such as gross profits received by proprietors, rent, interest, profit of an enterprise, and wages due to family workers. The term "mixed income" implies that these different types of payments are combined and cannot be easily separated or categorized into distinct sources.Rate this question:
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- 45.
Demand for final consumption arises in
- A.
Household sector only.
- B.
Government sector only.
- C.
Both household and government sectors.
- D.
Neither household nor government sector.
Correct Answer
C. Both household and government sectors.Explanation
The demand for final consumption arises in both the household and government sectors. In the household sector, individuals and families consume goods and services for their personal use. This includes everyday items like food, clothing, and housing, as well as services like healthcare and education. On the other hand, the government sector also has a demand for final consumption as it provides public goods and services to the citizens. This includes infrastructure projects, defense, healthcare, education, and other services that are consumed by the government and the general public. Therefore, both sectors contribute to the overall demand for final consumption.Rate this question:
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- 46.
Demand for intermediate consumption arises in
- A.
Consumer households.
- B.
Government enterprises only.
- C.
Corporate enterprises only.
- D.
All producing sectors of an economy.
Correct Answer
D. All producing sectors of an economy.Explanation
The demand for intermediate consumption arises in all producing sectors of an economy because intermediate consumption refers to the purchase of goods and services by businesses for the purpose of producing other goods and services. This includes sectors such as manufacturing, agriculture, construction, and services. All these sectors require inputs from other sectors to carry out their production processes, hence creating demand for intermediate consumption across the entire economy.Rate this question:
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- 47.
Which of the following is an economic activity?
- A.
Listening to music on the radio.
- B.
Teaching one's own son at home.
- C.
Medical facilities rendered by a charitable dispensary.
- D.
A housewife doing household duties.
Correct Answer
C. Medical facilities rendered by a charitable dispensary.Explanation
An economic activity refers to any activity that involves the production, distribution, and consumption of goods and services. In this context, medical facilities rendered by a charitable dispensary can be considered an economic activity as it involves the provision of healthcare services, which is a form of service that contributes to the well-being of individuals and society. This activity involves the production and distribution of medical services, and it may also involve the consumption of resources such as medicines and equipment.Rate this question:
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- 48.
Net value added is equal to
- A.
Payments accruing to factors of production.
- B.
Compensation to employees.
- C.
Wages plus rent plus rent.
- D.
Value of output minus depreciation.
Correct Answer
A. Payments accruing to factors of production.Explanation
Net value added is a measure that calculates the value created by a company after deducting the cost of inputs used in the production process. It represents the payments accruing to factors of production, which include wages, salaries, rent, interest, and profit. This measure reflects the contribution of factors of production in generating the final output and indicates the overall economic value created by the company. Therefore, the correct answer is "Payments accruing to factors of production."Rate this question:
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- 49.
Per capita national income means
- A.
NNP + population
- B.
Total capital + population
- C.
Population + NNP
- D.
None of the above.
Correct Answer
A. NNP + populationExplanation
Per capita national income refers to the average income earned by each individual in a country. It is calculated by dividing the total national income (NNP) by the population. Therefore, the correct answer is NNP + population, as it represents the calculation required to determine per capita national income.Rate this question:
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- 50.
Which of the following is correct?
- A.
If national income rises, per capita income must also rise
- B.
If population rises, per capita income must fall.
- C.
If national income rises, welfare of the people must rise.
- D.
None of the above.
Correct Answer
D. None of the above.Explanation
The correct answer is "None of the above." This is because the relationship between national income, per capita income, population, and welfare is not always straightforward. While it is generally expected that an increase in national income would lead to an increase in per capita income and welfare, this is not always the case. Factors such as income inequality, distribution of wealth, and government policies can affect the relationship between these variables. Similarly, an increase in population does not necessarily mean a decrease in per capita income, as it depends on various other factors such as economic growth and resource availability. Therefore, none of the statements provided can be universally true.Rate this question:
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Mar 20, 2023Quiz Edited by
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Feb 22, 2012Quiz Created by
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