Indian Economy Quiz 7
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- Question 1 of 33
When was the Minimum Wages Act enacted in India?
In India, the Minimum Wages Act was enacted in 1948. It is an Act of Parliament concerning Indian labour law that sets the minimum wages that must be paid to skilled and unskilled labours. The Act gives both the Central government and State government jurisdiction in fixing wages.
- Question 2 of 33
Which one of the following does not deal with export promotion?
A Cooperative Marketing Society does not deal with export promotion. It provides market finance to farmers and ensures better returns to their produce. Besides marketing, society can act as an agent of credit co-operative society and help to recover loans advanced by credit societies.
- Question 3 of 33
Which of the following sets belongs to Central tax?
The Central Government of India levies taxes such as customs duty, income tax, service tax, and central excise duty.
- Question 4 of 33
The most distinguishing feature of oligopoly is:
An oligopoly is a market structure in which a market or industry is dominated by a small number of large firms (sellers). Examples of oligopoly include the auto industry, cable television, commercial air travel, etc.
- Question 5 of 33
Who defined investment as “the construction of a new capital asset like machinery or factory building”?
The statement is taken from Keyne’s Investment Demand Function. According to Keynes Investment expenditure refers to the creation of new assets i.e. an addition to the stock of existing capital assets.
- Question 6 of 33
Insurance sector in India is regulated by:
The Insurance Regulatory and Development Authority of India (IRDA) is a regulatory body under the jurisdiction of Ministry of Finance, Government of India and is tasked with regulating and licensing the insurance and re-insurance industries in India.
- Question 7 of 33
Consequent upon the recommendations of the Working Group on Rural Banks, five Rural Regional Banks were initially set up in the year:
Five Rural Regional Banks (RRBs) were set up on 2 October 1975 on the recommendations of the Narsimha Committee on Rural Credit. The purpose was to include rural areas into the economic mainstream since around 70% of the Indian population was rural.
- Question 8 of 33
Poverty in less developed countries is largely due to:
In early development, investment opportunities for those who already have wealth multiply so owners of capital can accumulate wealth. At the same time, there is an influx of cheap rural labor to the developing cities, which drives down wages. Therefore, in early development, inequality increases.
- Question 9 of 33
Among the tax revenues of the Union Government, the most important source is:
In 2020-21, 28.5% of the revenue came from Goods and Services Tax (GST) followed by Corporate Tax, Personal Income Tax, Union Excise Duty and Customs Duty 28.1%, 26.3%, 11% and 5.7% respectively.
- Question 10 of 33
Cheap Money means:
Cheap money is money that can be borrowed with a very low interest rate or price for borrowing.
- Question 11 of 33
Disinvestment in Public Sector is called:
Disinvestment in Public sector is a process of public asset sales done by the Government to the private sector.
- Question 12 of 33
An individual’s actual standard of living can be assessed by:
Disposable Personal Income (DPI) is how much money a person has to spend after taxes and any other mandatory withholdings are taken from their paycheck.
- Question 13 of 33
The purchase of shares and bonds of Indian companies by Foreign Institutional Investors is called:
Foreign indirect investment (FII) involves corporations, financial institutions, and private investors that purchase shares in foreign companies that trade on a foreign stock exchange.
- Question 14 of 33
When there is an official change in the exchange rate of domestic currency, then it is called:
Revaluation is an official rise of the value of the currency in relation to a foreign currency in a fixed exchange rate system. Revaluation is the opposite of devaluation, which is a downward adjustment of a country’s official exchange rate.
- Question 15 of 33
Inflation redistributes income and wealth in favour of:
Inflation allows borrowers to pay lenders back with money worth less than when it was originally borrowed, which benefits borrowers.
- Question 16 of 33
The reserves held by Commercial Banks over and above the statutory minimum, with the RBI are called:
Excess reserves are capital reserves held by a bank or financial institution in excess of what is required by regulators, creditors, or internal controls.
- Question 17 of 33
Who is authorised to issue coins in India?
The Government of India (Ministry of Finance) has the sole right to mint coins. The responsibility for coinage vests with the Government of India in terms of the Coinage Act 1906. The Reserve Bank puts the coins into circulation on behalf of the Government of India.
- Question 18 of 33
The ‘break-even’ point is where:
The break-even point is the point at which total cost and total revenue are equal, meaning there is no loss or gain for your small business.
- Question 19 of 33
Rate of interest is determined by:
Rate of interest is determined by Liquidity preference. Liquidity Preference Theory is a model that suggests that an investor should demand a higher interest rate or premium on securities with long-term maturities that carry greater risk because investors prefer cash or other highly liquid holdings.
- Question 20 of 33
Through which principle/device did Mahatma Gandhi strive to bridge economic inequalities?
Through the establishment of village industries, Mahatma Gandhi strives to bridge economic inequalities. Gandhiji conceived Khadi Programme as a key to solve the economic problems of the country. Gandhi had commented about khadi “It connotes the beginning of economic freedom and equality of all in the country.”
- Question 21 of 33
Which one of the following is not a function of the central bank in an economy?
Controlling government spending is not a function of the central bank (RBI in India). In a parliamentary democracy, the political executive is responsible to the Parliament. The control exercised by the Parliament over the executive is its control on financial expenditure.
- Question 22 of 33
Per capita income is equal to:
Per capita income (PCI) is a measure of the amount of money earned per person in a nation or geographic region. It is calculated by dividing the national income by its total population.
- Question 23 of 33
A favourable Balance of Trade of a country implies that:
Balance of trade is the difference between the value of a country’s exports and the value of its imports. A favorable balance of trade means an excess of commodity exports over commodity imports. An unfavorable balance of trade is used to mean an excess of commodity imports over commodity exports.
- Question 24 of 33
The value of a commodity expressed in terms of money is known as:
The value of a commodity expressed in terms of money is known as price. Price is the amount of money that has to be paid to acquire a given product.
- Question 25 of 33
The term of the Finance Commission is:
As per the Constitution of India, the Finance Commission is appointed every five years and consists of a chairman and four other members. The Finance Commission is constituted by the President under article 280, mainly to give its recommendations on distribution of tax revenues between the Union and the States.
- Question 26 of 33
Reserve Bank of India was nationalised in:
The Reserve Bank of India (RBI) was nationalised with effect from 1 January 1949 on the basis of the RBI Act 1948.
- Question 27 of 33
In a Capitalistic Economy, the prices are determined by:
In a capitalist society the prices of goods, services and labour are determined by supply and demand. If a lot of people want to buy a certain product its price will go up. Products that are mass produced usually have low prices.
- Question 28 of 33
Toothpaste is a product sold under:
Monopolistic competition characterizes an industry in which many firms offer products or services that are similar (but not perfect) substitutes. Hair salons, restaurants, Toothpaste, clothing, consumer electronics, etc. are some examples of products that are sold under monopolistic competition.
- Question 29 of 33
Purchasing Power Parity theory is related with:
Purchasing power parity (PPP) is a theory which states that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries.
- Question 30 of 33
Green Accounting means measuring the National Income of the country taking into account estimation of:
The Green accounting system is a type of accounting that attempts to factor environmental costs into the financial results of operations. The main objective of green accounting is to assist businesses to understand environmental goals are as important as financial goals.
- Question 31 of 33
‘NABARD’ is associated with the development of:
National Bank for Agriculture and Rural Development (NABARD) is an apex regulatory body for overall regulation of regional rural banks and apex cooperative banks in India.
- Question 32 of 33
In Economics the ‘Utility’ and ‘Usefulness’ have:
Usefulness is the benefit that is derived by consuming a commodity whereas utility is the want satisfying power of a commodity. A commodity having utility need not be useful.
- Question 33 of 33
The total value of goods and services produced in a country during a given period is:
National income is referred to as the total monetary value of all services and goods that are produced by a nation during a period of time.