Nature of Indian Economy Questions and answers

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61). With reference to the Finance Commission of India, which of the following statements is correct?
A). It encourages the inflow of foreign capital for infrastructure development.
B). It facilitates the proper distribution or finance among the public sector undertakings.
C). It ensures transparency in financial administration.
D). None of the above
62). When development in an economy takes place, the share of tertiary sector in National Income
A). first falls and then rises
B). first rises and then falls
C). keeps increasing
D). remains constant
63). Consider the following features
1. Pre-dominance of agriculture
2. Pre-dominance of industry
3. Low per capita income
4. Massive unemployment
Which of the features given above are the characteristics of Indian Economy?
A). 1, 2, 3 and 4
B). 1, 2 and 3
C). 1, 2 and 4
D). 1, 3 and 4
64). In 1980s, Indian economy was in the process of the Hindu rate of growth. Which one of the following is associated with the Hindu rate of growth?
A). Population growth rate
B). Growth rate of Naxalism
C). Growth rate of foodgrain production
D). Growth rate of Gross Domestic Product
65). Consider the following statements
1. The employment generated by the public sector after the economic reform in 1990s is more than 5%.
2. The unorganised sector of the Indian economy generates more than 80% of the total employment.
Which of the statements given above is/are correct?
A). Only 1
B). Only 2
C). Both 1 and 2
D). Neither 1 nor 2


66). The growth rate of the Per Capita Income at the current price is higher than the Per Capita Income at constant prices, because the latter takes into account the rate of
A). increase in price level
B). population growth
C). growth in money supply
D). Increase in wage rate
67). A decrease in tax to GDP ratio of a country indicates which of the following ?
1. Slowing economic growth rate
2. Less equitable distribution of national income
Select the correct answer using the codes given below
A). Only 1
B). Only 2
C). Both 1 and 2
D). Neither 1 nor 2
68). Consider the following statements
1. Average growth rate of the agriculture and allied services in Indian economy after independence is more than 4%.
2. After the economic liberalisation in 1991, the decline in share of agriculture in GDP has been balanced by an increase in share of the service sector.
Which of the statements given above is/are correct?
A). Only 1
B). Only 2
C). Both 1 and 2
D). Neither 1 nor 2
69). Which one among the following pairs is not correctly matched?
A). When total product increases at an increasing rate : Marginal product increases
B). When total product increases at a diminishing rate : Marginal product declines
C). When total product reaches its maximum : Marginal product becomes zero
D). When total product begins to decline : Marginal product becomes positive
70). Consider the following
1. Equitable allocation of resources
2. Generation of employment
3. Tax concession to big corporates
4. Universalisation of Public Distribution System
Which of the public services given above is/are major factor/factors which can bring 'inclusive growth' in our country?
A). 1, 2, 3 and 4
B). 1, 2 and 3
C). 1, 2 and 4
D). 1, 3 and 4
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