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All questions of Indian Economy - A Profile (Old Scheme) for CA Foundation Exam
Which year is known as the “Year of Great Divide”.- a)1921
- b)1951
- c)1981
- d)1991
Correct answer is 'D'. Can you explain this answer?
Which year is known as the “Year of Great Divide”.
a)
1921
b)
1951
c)
1981
d)
1991
|
Syed Abdul Majeed answered |
Option D is wrong.. CORRECT ANSWER IS 1921
Net national product at factor cost is also known as: - a)Net domestic product
- b)Gross National product
- c)National Income
- d)Personal Income
Correct answer is option 'C'. Can you explain this answer?
Net national product at factor cost is also known as:
a)
Net domestic product
b)
Gross National product
c)
National Income
d)
Personal Income
|
Samiksha answered |
Well this is the most easiest question bt then also we usually got confused in this as there are many aggregates of national income so we easily confused in this... its very easy that NNP at FC is known as national income why bcz it refers to the net money value of final goods and services produced by the normal residents of the country during a period of one year thts y it is regonized as national income...
Maternal mortality rate is highest in which state?- a)U.P
- b)Bihar
- c)Tamil Nadu
- d)Orissa.
Correct answer is option 'A'. Can you explain this answer?
Maternal mortality rate is highest in which state?
a)
U.P
b)
Bihar
c)
Tamil Nadu
d)
Orissa.
|
Dashvanth Kumar answered |
Option A Uttar Pradesh is right answer the number in UP is about 201 in the year 2014 to 15
HDI does not consists of : - a)Longetivity
- b)Knowledge
- c)Life expectancy
- d)Standard of living
Correct answer is option 'C'. Can you explain this answer?
HDI does not consists of :
a)
Longetivity
b)
Knowledge
c)
Life expectancy
d)
Standard of living
|
|
Sounak Jain answered |
Explanation:
HDI stands for Human Development Index, which is a composite index used to measure the overall development of a country. It was developed by the United Nations Development Programme (UNDP) in 1990. HDI combines three basic dimensions of human development: longevity, knowledge, and standard of living. It is a measure of how well people are living in a country.
The three dimensions of HDI are:
1. Longevity: It refers to the life expectancy at birth of a person in a country. It is one of the basic indicators of human development. Higher life expectancy indicates better health facilities and living conditions in a country.
2. Knowledge: It refers to the education level of people in a country. It is measured by two indicators: mean years of schooling and expected years of schooling. Mean years of schooling refer to the average number of years that a person aged 25 or older has spent in school. Expected years of schooling refer to the number of years a child of school entrance age can expect to spend in school.
3. Standard of living: It refers to the economic well-being of people in a country. It is measured by Gross National Income (GNI) per capita. It takes into account the purchasing power of a country's currency as well.
Conclusion:
Therefore, the correct answer is option 'C', which is life expectancy. HDI does not consist of life expectancy as a dimension, but it is used as an indicator to measure the longevity dimension of HDI.
HDI stands for Human Development Index, which is a composite index used to measure the overall development of a country. It was developed by the United Nations Development Programme (UNDP) in 1990. HDI combines three basic dimensions of human development: longevity, knowledge, and standard of living. It is a measure of how well people are living in a country.
The three dimensions of HDI are:
1. Longevity: It refers to the life expectancy at birth of a person in a country. It is one of the basic indicators of human development. Higher life expectancy indicates better health facilities and living conditions in a country.
2. Knowledge: It refers to the education level of people in a country. It is measured by two indicators: mean years of schooling and expected years of schooling. Mean years of schooling refer to the average number of years that a person aged 25 or older has spent in school. Expected years of schooling refer to the number of years a child of school entrance age can expect to spend in school.
3. Standard of living: It refers to the economic well-being of people in a country. It is measured by Gross National Income (GNI) per capita. It takes into account the purchasing power of a country's currency as well.
Conclusion:
Therefore, the correct answer is option 'C', which is life expectancy. HDI does not consist of life expectancy as a dimension, but it is used as an indicator to measure the longevity dimension of HDI.
NNPFC minus ________ = NDPFC- a)NFIA
- b)Net indirect taxes
- c)Depreciation
- d)None.
Correct answer is option 'A'. Can you explain this answer?
NNPFC minus ________ = NDPFC
a)
NFIA
b)
Net indirect taxes
c)
Depreciation
d)
None.
|
Shahin Ansari. answered |
Net income from Abroad.. is the correct answer...
Transfer payments are. - a)Payments transferred from Central Government account to state Government account
- b)Payments made to factors of production by the organizer
- c)Payments made for no return service
- d)None of the above
Correct answer is option 'C'. Can you explain this answer?
Transfer payments are.
a)
Payments transferred from Central Government account to state Government account
b)
Payments made to factors of production by the organizer
c)
Payments made for no return service
d)
None of the above
|
Ajay Pawriya answered |
Transfer payments are those payments which are just gift or donation no actual work is done for that. for ex gift, donation, charity, old age pension.
GNP at factor cost minus depreciation is equal to ______.- a)NNP at factor cost
- b)NDP at factor cost
- c)GDP at factor cost
- d)NNP at market price.
Correct answer is option 'A'. Can you explain this answer?
GNP at factor cost minus depreciation is equal to ______.
a)
NNP at factor cost
b)
NDP at factor cost
c)
GDP at factor cost
d)
NNP at market price.
|
Janhavi Basu answered |
GNP at Factor Cost Minus Depreciation Equals NNP at Factor Cost
Explanation:
GNP at factor cost refers to the total income earned by all the factors of production, including labor, land, capital, and entrepreneurship within a country's borders. Depreciation is the decrease in the value of an asset over time due to wear and tear or obsolescence. Therefore, GNP at factor cost minus depreciation would give us the net income earned by the factors of production.
On the other hand, NNP at factor cost refers to the net income earned by the factors of production after deducting depreciation. In other words, it is the amount of income available for consumption or investment without reducing the country's productive capacity.
Therefore, GNP at factor cost minus depreciation is equal to NNP at factor cost.
Conclusion:
The correct option is A, which states that GNP at factor cost minus depreciation is equal to NNP at factor cost. This formula helps in calculating the net income earned by the factors of production, which is a crucial factor in measuring a country's economic growth and development.
Explanation:
GNP at factor cost refers to the total income earned by all the factors of production, including labor, land, capital, and entrepreneurship within a country's borders. Depreciation is the decrease in the value of an asset over time due to wear and tear or obsolescence. Therefore, GNP at factor cost minus depreciation would give us the net income earned by the factors of production.
On the other hand, NNP at factor cost refers to the net income earned by the factors of production after deducting depreciation. In other words, it is the amount of income available for consumption or investment without reducing the country's productive capacity.
Therefore, GNP at factor cost minus depreciation is equal to NNP at factor cost.
Conclusion:
The correct option is A, which states that GNP at factor cost minus depreciation is equal to NNP at factor cost. This formula helps in calculating the net income earned by the factors of production, which is a crucial factor in measuring a country's economic growth and development.
The main objective of RRB [Regional Rural Bank] is to provide credit to:- a)Weaker section of rural areas
- b)Weaker sections
- c)Industrial areas
- d)Agricultural sector
Correct answer is option 'A'. Can you explain this answer?
The main objective of RRB [Regional Rural Bank] is to provide credit to:
a)
Weaker section of rural areas
b)
Weaker sections
c)
Industrial areas
d)
Agricultural sector
|
Rajat Patel answered |
Regional Rural Banks (RRBs) are financial institutions which ensure adequate credit for agriculture and other rural sectors . Regional Rural Banks were set up on the basis of the recommendations of the Narasimham Working Group (1975), and after the legislations of the Regional Rural Banks Act, 1976. The first Regional Rural Bank “Prathama Grameen Bank” was set up on October 2, 1975. At present there are 82 RRBs in India.
Who is responsible for collecting and presenting statistics in India?- a)ISI
- b)CSO
- c)ICAER
- d)NCERT
Correct answer is option 'B'. Can you explain this answer?
Who is responsible for collecting and presenting statistics in India?
a)
ISI
b)
CSO
c)
ICAER
d)
NCERT
|
|
Rajat Patel answered |
The Indian financial system functions within the overall administrative set-up of the country. India has a federal structure of the Government. The division of responsibility for administrative between the Union Government and the State Governments is on the basis of three-fold classification of all subjects, namely, the Union List, the State List, and the Concurrent List.
The last category represents the areas where both the Union and State Governments can operate. The subject statistics are in the concurrent list. There are further divisions of responsibility, subjects or groups of subjects, among the different Ministers/Departments of Union Government and among the Departments of State Governments, on the basis of their administrative functions.CSO responsible for collecting and presenting statistics in India.
GNP=GDP+__________:- a)Depreciation
- b)Indirect taxes
- c)NIFA
- d)Subsidies
Correct answer is option 'C'. Can you explain this answer?
GNP=GDP+__________:
a)
Depreciation
b)
Indirect taxes
c)
NIFA
d)
Subsidies
|
Nandini Iyer answered |
Gross Domestic Product (GDP) and Gross National Product (GNP) both try to measure the market value of all goods and services produced for final sale in an economy. ... GNP measures the levels of production of all the citizens or corporations from a particular country working or producing in any country.
Which one of the following is correct? - a)NNPFC = NNPMP - NIT
- b)NNPMP = NNPFC - NIT
- c)NNPMP = NNPFC + Depreciation
- d)NNPMP = NNPFC + Depreciation
Correct answer is option 'A'. Can you explain this answer?
Which one of the following is correct?
a)
NNPFC = NNPMP - NIT
b)
NNPMP = NNPFC - NIT
c)
NNPMP = NNPFC + Depreciation
d)
NNPMP = NNPFC + Depreciation
|
Anand Dasgupta answered |
NNPFC= NNPMP- NIT: Understanding the Equation
NNPFC stands for Net National Product at Factor Cost while NNPMP stands for Net National Product at Market Price. NIT refers to net indirect taxes. The equation NNPFC= NNPMP- NIT is an important concept in national income accounting. Here is a detailed explanation of each term in the equation:
NNPFC (Net National Product at Factor Cost)
- It is the total value of goods and services produced by a country's citizens or companies in a given period.
- NNPFC is calculated by subtracting the depreciation of fixed capital from the Gross National Product (GNP).
- It is also called the national income.
NNPMP (Net National Product at Market Price)
- It is the total value of goods and services produced in a country in a given period.
- NNPMP is calculated by adding indirect taxes and subtracting subsidies from NNPFC.
- It is also called the national expenditure.
NIT (Net Indirect Taxes)
- It is the difference between indirect taxes collected by the government and subsidies provided by the government.
- NIT is subtracted from NNPMP to arrive at NNPFC.
Therefore, the equation NNPFC= NNPMP- NIT shows the relationship between the net national product at factor cost and the net national product at market price. It explains how indirect taxes and subsidies affect the national income of a country. By subtracting the net indirect taxes from NNPMP, we arrive at NNPFC, which is the actual income earned by the citizens or companies of a country.
NNPFC stands for Net National Product at Factor Cost while NNPMP stands for Net National Product at Market Price. NIT refers to net indirect taxes. The equation NNPFC= NNPMP- NIT is an important concept in national income accounting. Here is a detailed explanation of each term in the equation:
NNPFC (Net National Product at Factor Cost)
- It is the total value of goods and services produced by a country's citizens or companies in a given period.
- NNPFC is calculated by subtracting the depreciation of fixed capital from the Gross National Product (GNP).
- It is also called the national income.
NNPMP (Net National Product at Market Price)
- It is the total value of goods and services produced in a country in a given period.
- NNPMP is calculated by adding indirect taxes and subtracting subsidies from NNPFC.
- It is also called the national expenditure.
NIT (Net Indirect Taxes)
- It is the difference between indirect taxes collected by the government and subsidies provided by the government.
- NIT is subtracted from NNPMP to arrive at NNPFC.
Therefore, the equation NNPFC= NNPMP- NIT shows the relationship between the net national product at factor cost and the net national product at market price. It explains how indirect taxes and subsidies affect the national income of a country. By subtracting the net indirect taxes from NNPMP, we arrive at NNPFC, which is the actual income earned by the citizens or companies of a country.
How do we measure human well being through human development Index: - a)Through life expectancy at birth
- b)Through standard of education
- c)Through real GDP per capital
- d)All of these
Correct answer is option 'D'. Can you explain this answer?
How do we measure human well being through human development Index:
a)
Through life expectancy at birth
b)
Through standard of education
c)
Through real GDP per capital
d)
All of these
|
Alok Mehta answered |
The standard of living dimension is measured by gross national income per capita. The HDI uses the logarithm of income, to reflect the diminishing importance of income with increasing GNI. The scores for the three HDI dimension indices are then aggregated into a composite index using geometric mean.
Over the years, per capita income is: - a)Increasing
- b)Decreasing
- c)Constant
- d)Galloping
Correct answer is option 'A'. Can you explain this answer?
Over the years, per capita income is:
a)
Increasing
b)
Decreasing
c)
Constant
d)
Galloping
|
Dashvanth Kumar answered |
Even though over a period of 63 years the national income has increased about 18 times but the per capita income in India has increased about nearly six times in the same period this is because of increase in the population rate so over a period of time per capita income is increasing but at a moderate and low rate
Which one is the merit of VAT?- a)Cascading
- b)Non-Cascading
- c)Progressive
- d)None of these
Correct answer is option 'B'. Can you explain this answer?
Which one is the merit of VAT?
a)
Cascading
b)
Non-Cascading
c)
Progressive
d)
None of these
|
|
Sparsh Chauhan answered |
Non-Cascading
VAT (Value Added Tax) is a non-cascading tax system. Here's an explanation of why VAT is considered non-cascading:
What is Cascading Tax?
- Cascading tax is a tax on tax, where a tax is levied on the value of a product at each stage of production and distribution. This leads to the tax being included in the cost of the product at each stage, resulting in the tax being compounded.
How VAT is Non-Cascading?
- VAT is designed to avoid cascading by only taxing the value added at each stage of production and distribution. Businesses are only required to pay tax on the value they add to a product or service, not on the total value of the product.
- In a VAT system, businesses can claim credit for the tax paid on their inputs, reducing the overall tax burden. This ensures that the tax is not compounded at each stage of production and distribution.
- As a result, VAT is considered a non-cascading tax system as it allows for the tax to be calculated on the value added at each stage, rather than being levied on the total value of the product.
Advantages of Non-Cascading VAT:
- Avoids tax on tax: By only taxing the value added at each stage, VAT eliminates the cascading effect, leading to lower overall tax burden on businesses.
- Encourages compliance: The credit mechanism in VAT encourages businesses to comply with tax regulations in order to claim input tax credits, leading to better tax compliance.
- Promotes transparency: VAT is a transparent tax system as the tax is visible at each stage of production, making it easier to track and monitor tax payments.
In conclusion, VAT's non-cascading nature is a key merit of the tax system, as it helps in avoiding the cascading effect of tax on tax and promotes efficiency in the tax system.
VAT (Value Added Tax) is a non-cascading tax system. Here's an explanation of why VAT is considered non-cascading:
What is Cascading Tax?
- Cascading tax is a tax on tax, where a tax is levied on the value of a product at each stage of production and distribution. This leads to the tax being included in the cost of the product at each stage, resulting in the tax being compounded.
How VAT is Non-Cascading?
- VAT is designed to avoid cascading by only taxing the value added at each stage of production and distribution. Businesses are only required to pay tax on the value they add to a product or service, not on the total value of the product.
- In a VAT system, businesses can claim credit for the tax paid on their inputs, reducing the overall tax burden. This ensures that the tax is not compounded at each stage of production and distribution.
- As a result, VAT is considered a non-cascading tax system as it allows for the tax to be calculated on the value added at each stage, rather than being levied on the total value of the product.
Advantages of Non-Cascading VAT:
- Avoids tax on tax: By only taxing the value added at each stage, VAT eliminates the cascading effect, leading to lower overall tax burden on businesses.
- Encourages compliance: The credit mechanism in VAT encourages businesses to comply with tax regulations in order to claim input tax credits, leading to better tax compliance.
- Promotes transparency: VAT is a transparent tax system as the tax is visible at each stage of production, making it easier to track and monitor tax payments.
In conclusion, VAT's non-cascading nature is a key merit of the tax system, as it helps in avoiding the cascading effect of tax on tax and promotes efficiency in the tax system.
Iron and steel are the examples of ______ goods.- a)Capital
- b)Intermediary
- c)Durable
- d)None of these.
Correct answer is option 'A'. Can you explain this answer?
Iron and steel are the examples of ______ goods.
a)
Capital
b)
Intermediary
c)
Durable
d)
None of these.
|
|
Rajat Patel answered |
Capital good. ... In terms of economics, capital goods are tangible property. People use them to produce other goods or services within a certain period. Machinery, tools, buildings, computers, or other kinds of equipment that are involved in production of other things for sale, are capital goods. Examples of capital goods include buildings, machines,iron,steel equipment, furniture and fixtures.
India has the _____________ largest scientific and technical manpower in the world.
- a)fifth
- b)tenth
- c)eighth
- d)second
Correct answer is option 'C'. Can you explain this answer?
India has the _____________ largest scientific and technical manpower in the world.
a)
fifth
b)
tenth
c)
eighth
d)
second
|
|
Nandini Iyer answered |
Indians dramatically under-perform in their scientific output, despite the huge number of science graduates.
India has a strong network of science and technology institutions and trained manpower. It has the third-largest scientific and technical manpower in the world with 162 universities awarding over 4,000 doctorates degrees and 35,000 post graduate degrees annually.
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
Correct answer is option 'A'. Can you explain this answer?
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
|
Lakshmi Kumar answered |
Transfer payments refer to payments made without any exchange of goods and services. These payments are typically made by the government or other entities to individuals or households for various reasons. Transfer payments are not considered as compensation for work or services rendered, but rather as a form of financial assistance or redistribution of income.
Transfer payments can take various forms, including social welfare benefits, subsidies, grants, pensions, and unemployment benefits. These payments are typically made to individuals or households in need of financial support or as a means of redistributing income to promote social equity.
Transfer payments are different from payments made in exchange for goods and services because there is no direct transaction or exchange involved. In other words, the recipient of the transfer payment does not provide any goods or services in return for the payment. Instead, transfer payments are intended to provide financial support or assistance to individuals or households for various reasons, such as alleviating poverty, addressing social inequality, or promoting economic stability.
Transfer payments are an important tool for governments to address social and economic issues. They can help alleviate poverty by providing financial assistance to individuals or households in need. Transfer payments can also contribute to economic stability by supporting individuals who are unemployed or facing financial difficulties. Additionally, transfer payments can promote social equity by redistributing income and reducing income inequality.
In conclusion, transfer payments are payments made without any exchange of goods and services. They are typically made by the government or other entities to individuals or households as a form of financial assistance or redistribution of income. Transfer payments play a crucial role in addressing social and economic issues, such as poverty alleviation, economic stability, and social equity.
Transfer payments can take various forms, including social welfare benefits, subsidies, grants, pensions, and unemployment benefits. These payments are typically made to individuals or households in need of financial support or as a means of redistributing income to promote social equity.
Transfer payments are different from payments made in exchange for goods and services because there is no direct transaction or exchange involved. In other words, the recipient of the transfer payment does not provide any goods or services in return for the payment. Instead, transfer payments are intended to provide financial support or assistance to individuals or households for various reasons, such as alleviating poverty, addressing social inequality, or promoting economic stability.
Transfer payments are an important tool for governments to address social and economic issues. They can help alleviate poverty by providing financial assistance to individuals or households in need. Transfer payments can also contribute to economic stability by supporting individuals who are unemployed or facing financial difficulties. Additionally, transfer payments can promote social equity by redistributing income and reducing income inequality.
In conclusion, transfer payments are payments made without any exchange of goods and services. They are typically made by the government or other entities to individuals or households as a form of financial assistance or redistribution of income. Transfer payments play a crucial role in addressing social and economic issues, such as poverty alleviation, economic stability, and social equity.
The main object of Regional Rural Banks is to provide credit to:- a)Rural people
- b)Weaker sections of the society
- c)Weaker sections of the rural population
- d)All the people of society.
Correct answer is option 'A'. Can you explain this answer?
The main object of Regional Rural Banks is to provide credit to:
a)
Rural people
b)
Weaker sections of the society
c)
Weaker sections of the rural population
d)
All the people of society.
|
Poonam Reddy answered |
Regional Rural Banks (RRBs) are financial institutions which ensure adequate credit for agriculture and other rural sectors . Regional Rural Banks were set up on the basis of the recommendations of the Narasimham Working Group (1975), and after the legislations of the Regional Rural Banks Act, 1976. The first Regional Rural Bank “Prathama Grameen Bank” was set up on October 2, 1975. At present there are 82 RRBs in India.
The equity of a regional rural bank is held by the Central Government, concerned State Government and the Sponsor Bank in the proportion of 50:15:35.
MODVAT was introduced in India in union budget of: - a)1985-86
- b)1986-87
- c)1987-88
- d)1988-89
Correct answer is option 'B'. Can you explain this answer?
MODVAT was introduced in India in union budget of:
a)
1985-86
b)
1986-87
c)
1987-88
d)
1988-89
|
|
Lakshmi Kaur answered |
Introduction
MODVAT (Modified Value Added Tax) is a tax system that was introduced in India in the Union Budget of 1986-87. It was introduced to reduce the burden of taxes on manufacturing industries and to make them more competitive in the global market.
Definition
MODVAT is a tax system that allows manufacturers to claim credit for the taxes paid on inputs used in the production process. This means that manufacturers can reduce their tax liability by claiming credit for the taxes paid on raw materials, components, and other inputs.
Objective
The objective of MODVAT is to reduce the cascading effect of taxes on the manufacturing sector. Under the previous tax system, taxes were levied on the value of the product at every stage of production, leading to a higher tax burden for manufacturers. MODVAT eliminated this cascading effect by allowing manufacturers to claim credit for the taxes paid on inputs.
Impact
MODVAT had a significant impact on the manufacturing sector in India. It reduced the tax burden on manufacturers, making them more competitive in the global market. It also led to a reduction in the prices of manufactured goods, benefiting consumers.
Conclusion
In conclusion, MODVAT was introduced in India in the Union Budget of 1986-87. It was aimed at reducing the burden of taxes on the manufacturing sector and making it more competitive in the global market. MODVAT allowed manufacturers to claim credit for the taxes paid on inputs and led to a reduction in the prices of manufactured goods.
MODVAT (Modified Value Added Tax) is a tax system that was introduced in India in the Union Budget of 1986-87. It was introduced to reduce the burden of taxes on manufacturing industries and to make them more competitive in the global market.
Definition
MODVAT is a tax system that allows manufacturers to claim credit for the taxes paid on inputs used in the production process. This means that manufacturers can reduce their tax liability by claiming credit for the taxes paid on raw materials, components, and other inputs.
Objective
The objective of MODVAT is to reduce the cascading effect of taxes on the manufacturing sector. Under the previous tax system, taxes were levied on the value of the product at every stage of production, leading to a higher tax burden for manufacturers. MODVAT eliminated this cascading effect by allowing manufacturers to claim credit for the taxes paid on inputs.
Impact
MODVAT had a significant impact on the manufacturing sector in India. It reduced the tax burden on manufacturers, making them more competitive in the global market. It also led to a reduction in the prices of manufactured goods, benefiting consumers.
Conclusion
In conclusion, MODVAT was introduced in India in the Union Budget of 1986-87. It was aimed at reducing the burden of taxes on the manufacturing sector and making it more competitive in the global market. MODVAT allowed manufacturers to claim credit for the taxes paid on inputs and led to a reduction in the prices of manufactured goods.
Which of the following represents National Income?- a)GDP at factor cost
- b)NDP at factor cost
- c)NNP at market price
- d)NNP at factor cost
Correct answer is option 'D'. Can you explain this answer?
Which of the following represents National Income?
a)
GDP at factor cost
b)
NDP at factor cost
c)
NNP at market price
d)
NNP at factor cost
|
|
Malavika Basak answered |
National Income: NNP at Factor Cost
National Income is the total income earned by the factors of production in a country over a period of time. It includes the income earned by individuals, firms, and the government. The National Income of a country can be calculated using different methods, such as the product, income, and expenditure methods.
NNP at factor cost is the most appropriate measure of National Income. It is calculated by deducting the depreciation of capital goods from the Gross National Product (GNP) at factor cost. This is because depreciation is the wear and tear of capital goods used in the production process, and it needs to be deducted to arrive at the actual income earned by the factors of production.
GDP at Factor Cost
Gross Domestic Product (GDP) at factor cost is the total value of all goods and services produced within the domestic territory of a country during a specific period, after deducting the value of intermediate goods and services. GDP at factor cost includes the income earned by all factors of production, such as labor, capital, and land.
NDP at Factor Cost
Net Domestic Product (NDP) at factor cost is the GDP at factor cost minus depreciation. It is the value of all final goods and services produced within the domestic territory of a country during a specific period, after deducting the value of intermediate goods and services and the depreciation of capital goods.
NNP at Market Price
Net National Product (NNP) at market price is the NNP at factor cost plus indirect taxes minus subsidies. It includes the income earned by the factors of production and also takes into account the impact of indirect taxes and subsidies.
Conclusion
In conclusion, the correct measure of National Income is NNP at factor cost, as it deducts the depreciation of capital goods, which is necessary to arrive at the actual income earned by the factors of production. GDP at factor cost and NDP at factor cost are important measures of income, but they do not take into account the impact of depreciation. NNP at market price includes the impact of indirect taxes and subsidies, which are not part of the actual income earned by the factors of production.
National Income is the total income earned by the factors of production in a country over a period of time. It includes the income earned by individuals, firms, and the government. The National Income of a country can be calculated using different methods, such as the product, income, and expenditure methods.
NNP at factor cost is the most appropriate measure of National Income. It is calculated by deducting the depreciation of capital goods from the Gross National Product (GNP) at factor cost. This is because depreciation is the wear and tear of capital goods used in the production process, and it needs to be deducted to arrive at the actual income earned by the factors of production.
GDP at Factor Cost
Gross Domestic Product (GDP) at factor cost is the total value of all goods and services produced within the domestic territory of a country during a specific period, after deducting the value of intermediate goods and services. GDP at factor cost includes the income earned by all factors of production, such as labor, capital, and land.
NDP at Factor Cost
Net Domestic Product (NDP) at factor cost is the GDP at factor cost minus depreciation. It is the value of all final goods and services produced within the domestic territory of a country during a specific period, after deducting the value of intermediate goods and services and the depreciation of capital goods.
NNP at Market Price
Net National Product (NNP) at market price is the NNP at factor cost plus indirect taxes minus subsidies. It includes the income earned by the factors of production and also takes into account the impact of indirect taxes and subsidies.
Conclusion
In conclusion, the correct measure of National Income is NNP at factor cost, as it deducts the depreciation of capital goods, which is necessary to arrive at the actual income earned by the factors of production. GDP at factor cost and NDP at factor cost are important measures of income, but they do not take into account the impact of depreciation. NNP at market price includes the impact of indirect taxes and subsidies, which are not part of the actual income earned by the factors of production.
TRYSEM is a programme of :- a)Rural development
- b)Industrial development
- c)Urban development
- d)Defence preparedness
Correct answer is 'A'. Can you explain this answer?
TRYSEM is a programme of :
a)
Rural development
b)
Industrial development
c)
Urban development
d)
Defence preparedness
|
|
Arun Khanna answered |
Trysem(training rural youth for self employment ) was initiated to provide basic technical and managerial skills to rural youth from families below the poverty line to enable them to take up self-employment and wage employment in the broad fields of agricultural and allied sectors, namely industries, services and business services.
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 is option 'A'. Can you explain this answer?
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.
|
|
Arun Khanna answered |
Net national product at factor cost is also called national income. If we deduct depreciation allowances from the gross national product at factor cost, we get net national product at factor cost.
Which proves to be a heavy tax on lower section of people?- a)Progressive
- b)Regressive
- c)Proportional
- d)Degressive.
Correct answer is 'B'. Can you explain this answer?
Which proves to be a heavy tax on lower section of people?
a)
Progressive
b)
Regressive
c)
Proportional
d)
Degressive.
|
Soumya Shah answered |
In case of progressive taxation percent of taxes increase with level of income but in case of regressive its opposite so in case of regressive taxation more tax will be charged on poor and less on rich
As per the Value Added Method of measuring national income identify which of the following item is excluded?- a)Brokerage and Commission earned by dealers of second hand goods
- b)Sale of second hand machines
- c)Production for Self Consumption
- d)Imputed rent of owner occupied houses.
Correct answer is option 'B'. Can you explain this answer?
As per the Value Added Method of measuring national income identify which of the following item is excluded?
a)
Brokerage and Commission earned by dealers of second hand goods
b)
Sale of second hand machines
c)
Production for Self Consumption
d)
Imputed rent of owner occupied houses.
|
|
Rajveer Yadav answered |
Value Added Method of Measuring National Income
The Value Added Method of measuring national income is used to calculate the value of goods and services at each stage of production. This method calculates the difference between the value of the output and the value of the inputs used in the production process.
Exclusions from National Income
In the Value Added Method, certain items are excluded from the calculation of national income. These exclusions are:
1. Brokerage and commission earned by dealers of second-hand goods
2. Sale of second-hand machines
3. Production for self-consumption
4. Imputed rent of owner-occupied houses
Explanation of Exclusion
The item excluded from the calculation of national income in this question is the sale of second-hand machines. This exclusion is based on the fact that the sale of second-hand machines does not involve any new production or value addition. The machines were already produced and included in the national income at the time of their initial production.
On the other hand, brokerage and commission earned by dealers of second-hand goods are included in the national income because they represent the value added by the dealers in the process of selling the second-hand goods.
Similarly, production for self-consumption is excluded from the national income because it does not involve any market transactions. The imputed rent of owner-occupied houses is also excluded because it is not a market transaction and is difficult to measure accurately.
Conclusion
In conclusion, the Value Added Method of measuring national income excludes certain items such as the sale of second-hand machines, production for self-consumption, and imputed rent of owner-occupied houses. These exclusions are based on the fact that they do not involve any new production or value addition.
The Value Added Method of measuring national income is used to calculate the value of goods and services at each stage of production. This method calculates the difference between the value of the output and the value of the inputs used in the production process.
Exclusions from National Income
In the Value Added Method, certain items are excluded from the calculation of national income. These exclusions are:
1. Brokerage and commission earned by dealers of second-hand goods
2. Sale of second-hand machines
3. Production for self-consumption
4. Imputed rent of owner-occupied houses
Explanation of Exclusion
The item excluded from the calculation of national income in this question is the sale of second-hand machines. This exclusion is based on the fact that the sale of second-hand machines does not involve any new production or value addition. The machines were already produced and included in the national income at the time of their initial production.
On the other hand, brokerage and commission earned by dealers of second-hand goods are included in the national income because they represent the value added by the dealers in the process of selling the second-hand goods.
Similarly, production for self-consumption is excluded from the national income because it does not involve any market transactions. The imputed rent of owner-occupied houses is also excluded because it is not a market transaction and is difficult to measure accurately.
Conclusion
In conclusion, the Value Added Method of measuring national income excludes certain items such as the sale of second-hand machines, production for self-consumption, and imputed rent of owner-occupied houses. These exclusions are based on the fact that they do not involve any new production or value addition.
GDP at Factor Cost = GDP at Market Price minus indirect taxes plus ____.- a)Income from abroad
- b)Subsidies
- c)Transfer payments
- d)Operating surplus
Correct answer is option 'B'. Can you explain this answer?
GDP at Factor Cost = GDP at Market Price minus indirect taxes plus ____.
a)
Income from abroad
b)
Subsidies
c)
Transfer payments
d)
Operating surplus
|
|
Arjun Singhania answered |
GDP(FC) = GDP(MP) -Indirect Taxes + Subsidies
If the Government tries to raise the subsidies, the Difference between the GDP(FC) and GDP(FC) will increase. The same is opposite for Indirect taxes.
The most important problem of estimating National Income is. - a)Unorganised Market
- b)Double Counting
- c)Population rise
- d)Income Inequalities
Correct answer is option 'B'. Can you explain this answer?
The most important problem of estimating National Income is.
a)
Unorganised Market
b)
Double Counting
c)
Population rise
d)
Income Inequalities
|
|
Pranav Gupta answered |
Estimating National Income
Estimating National Income is an important task for any country as it helps in determining the economic growth and development of the country. National Income refers to the total income earned by all the individuals and businesses within the country's boundaries. However, estimating National Income is not an easy task and involves various challenges.
Problem of Double Counting
One of the most important problems of estimating National Income is the problem of double counting. It refers to the practice of counting the same transaction or income twice in the process of estimating National Income. This problem arises due to the complexity of the modern economy where a single transaction involves multiple parties. For instance, if a farmer sells wheat to a flour mill, and the flour mill sells flour to a baker, counting the income earned by the flour mill and baker would result in double-counting of the wheat sold by the farmer.
Consequences of Double Counting
Double Counting can have severe consequences on the accuracy of National Income estimation. It can lead to an overestimation of National Income, which would result in an incorrect assessment of the country's economic growth and development. This, in turn, can lead to wrong policy decisions by the government, which can affect the welfare of the citizens.
Eliminating Double Counting
Eliminating double counting is crucial for accurate estimation of National Income. This can be done by following the basic principle of only counting the final goods and services produced within the country's boundaries. In the above example, only the final product, i.e., bread, should be counted as National Income, and not the wheat or flour. This is known as the value-added method, where only the value added by each stage of production is counted.
Conclusion
In conclusion, the problem of double counting is a significant challenge in estimating National Income. It is essential to eliminate double counting to ensure the accuracy of National Income estimation and to make informed policy decisions. The value-added method is an effective way of eliminating double counting and provides an accurate estimate of National Income.
Estimating National Income is an important task for any country as it helps in determining the economic growth and development of the country. National Income refers to the total income earned by all the individuals and businesses within the country's boundaries. However, estimating National Income is not an easy task and involves various challenges.
Problem of Double Counting
One of the most important problems of estimating National Income is the problem of double counting. It refers to the practice of counting the same transaction or income twice in the process of estimating National Income. This problem arises due to the complexity of the modern economy where a single transaction involves multiple parties. For instance, if a farmer sells wheat to a flour mill, and the flour mill sells flour to a baker, counting the income earned by the flour mill and baker would result in double-counting of the wheat sold by the farmer.
Consequences of Double Counting
Double Counting can have severe consequences on the accuracy of National Income estimation. It can lead to an overestimation of National Income, which would result in an incorrect assessment of the country's economic growth and development. This, in turn, can lead to wrong policy decisions by the government, which can affect the welfare of the citizens.
Eliminating Double Counting
Eliminating double counting is crucial for accurate estimation of National Income. This can be done by following the basic principle of only counting the final goods and services produced within the country's boundaries. In the above example, only the final product, i.e., bread, should be counted as National Income, and not the wheat or flour. This is known as the value-added method, where only the value added by each stage of production is counted.
Conclusion
In conclusion, the problem of double counting is a significant challenge in estimating National Income. It is essential to eliminate double counting to ensure the accuracy of National Income estimation and to make informed policy decisions. The value-added method is an effective way of eliminating double counting and provides an accurate estimate of National Income.
TRYSEM is a programme of :- a)Rural development
- b)Industrial development
- c)Urban development
- d)Defence preparedness
Correct answer is option 'A'. Can you explain this answer?
TRYSEM is a programme of :
a)
Rural development
b)
Industrial development
c)
Urban development
d)
Defence preparedness
|
|
Nandini Iyer answered |
Trysem(training rural youth for self employment ) was initiated to provide basic technical and managerial skills to rural youth from families below the poverty line to enable them to take up self-employment and wage employment in the broad fields of agricultural and allied sectors, namely industries, services and business services.
Real national income means the national income measured in terms of. - a)Constant prices
- b)Current prices
- c)Wholesale prices
- d)Retail prices
Correct answer is option 'A'. Can you explain this answer?
Real national income means the national income measured in terms of.
a)
Constant prices
b)
Current prices
c)
Wholesale prices
d)
Retail prices
|
Ritika Iyer answered |
Real National Income Measured in Constant Prices
Real national income is the nominal national income adjusted for inflation. It is the measurement of the actual purchasing power of a nation's income. Real national income is measured in constant prices, which means that it is adjusted for inflation and reflects the purchasing power of a currency at a specific point in time.
Constant Prices vs. Current Prices
Current prices refer to the value of goods and services at the time of purchase. They are not adjusted for inflation and do not reflect the true purchasing power of a currency. In contrast, constant prices take inflation into account and provide a more accurate measurement of a nation's economic performance.
Wholesale Prices vs. Retail Prices
Wholesale prices refer to the price at which goods are sold in bulk to retailers. Retail prices, on the other hand, refer to the price at which goods are sold to consumers. While both wholesale and retail prices can be used to measure inflation, they are not as accurate as constant prices because they do not take into account changes in the overall economy.
Importance of Measuring Real National Income
Measuring real national income is important because it allows policymakers to make informed decisions about the economy. By adjusting for inflation, policymakers can see the true economic growth of a nation and make decisions based on that information. Real national income is also important for businesses because it allows them to make informed decisions about investment and production.
Conclusion
Real national income is the measurement of a nation's income adjusted for inflation. It is measured in constant prices, which take into account changes in the overall economy. Measuring real national income is important for policymakers and businesses because it provides an accurate measurement of a nation's economic performance.
Real national income is the nominal national income adjusted for inflation. It is the measurement of the actual purchasing power of a nation's income. Real national income is measured in constant prices, which means that it is adjusted for inflation and reflects the purchasing power of a currency at a specific point in time.
Constant Prices vs. Current Prices
Current prices refer to the value of goods and services at the time of purchase. They are not adjusted for inflation and do not reflect the true purchasing power of a currency. In contrast, constant prices take inflation into account and provide a more accurate measurement of a nation's economic performance.
Wholesale Prices vs. Retail Prices
Wholesale prices refer to the price at which goods are sold in bulk to retailers. Retail prices, on the other hand, refer to the price at which goods are sold to consumers. While both wholesale and retail prices can be used to measure inflation, they are not as accurate as constant prices because they do not take into account changes in the overall economy.
Importance of Measuring Real National Income
Measuring real national income is important because it allows policymakers to make informed decisions about the economy. By adjusting for inflation, policymakers can see the true economic growth of a nation and make decisions based on that information. Real national income is also important for businesses because it allows them to make informed decisions about investment and production.
Conclusion
Real national income is the measurement of a nation's income adjusted for inflation. It is measured in constant prices, which take into account changes in the overall economy. Measuring real national income is important for policymakers and businesses because it provides an accurate measurement of a nation's economic performance.
Mahalanobis model stressed upon the establishment of : - a)Consumer goods industries
- b)Expert oriented industries
- c)Agro-based industries
- d)Capital and basic goods industries
Correct answer is option 'D'. Can you explain this answer?
Mahalanobis model stressed upon the establishment of :
a)
Consumer goods industries
b)
Expert oriented industries
c)
Agro-based industries
d)
Capital and basic goods industries
|
|
Niharika Joshi answered |
The correct answer is option 'D': Capital and basic goods industries.
Explanation:
The Mahalanobis model, also known as the Second Five-Year Plan, was an economic development model introduced in India by the economist Prasanta Chandra Mahalanobis. It emphasized the establishment and development of capital and basic goods industries.
1. **Mahalanobis model and its objectives:**
- The Mahalanobis model was formulated with the objective of achieving rapid industrialization and economic growth in India.
- It aimed to reduce the dependence on foreign imports and promote self-sufficiency in industrial production.
- The model focused on the development of heavy industries, such as steel, machinery, chemicals, and power generation, which are considered capital and basic goods industries.
2. **Importance of capital and basic goods industries:**
- Capital goods industries produce machinery, equipment, and other tools necessary for the production of goods and services in various sectors.
- Basic goods industries produce essential commodities such as steel, cement, chemicals, and power, which are crucial for the development of other industries.
- These industries play a pivotal role in the overall economic development of a country by providing the necessary infrastructure and inputs for other sectors to function efficiently.
3. **Reasons for emphasizing capital and basic goods industries:**
- The Mahalanobis model recognized the importance of developing a strong industrial base to drive economic growth.
- By promoting capital and basic goods industries, the model aimed to create a solid foundation for the growth of other sectors, including consumer goods industries, expert-oriented industries, and agro-based industries.
- These industries not only generate employment opportunities but also contribute to increasing the overall productivity and competitiveness of the economy.
In conclusion, the Mahalanobis model stressed upon the establishment of capital and basic goods industries to foster industrialization and economic growth in India. These industries are considered fundamental for creating a strong industrial base and providing the necessary infrastructure and inputs for the development of other sectors.
Explanation:
The Mahalanobis model, also known as the Second Five-Year Plan, was an economic development model introduced in India by the economist Prasanta Chandra Mahalanobis. It emphasized the establishment and development of capital and basic goods industries.
1. **Mahalanobis model and its objectives:**
- The Mahalanobis model was formulated with the objective of achieving rapid industrialization and economic growth in India.
- It aimed to reduce the dependence on foreign imports and promote self-sufficiency in industrial production.
- The model focused on the development of heavy industries, such as steel, machinery, chemicals, and power generation, which are considered capital and basic goods industries.
2. **Importance of capital and basic goods industries:**
- Capital goods industries produce machinery, equipment, and other tools necessary for the production of goods and services in various sectors.
- Basic goods industries produce essential commodities such as steel, cement, chemicals, and power, which are crucial for the development of other industries.
- These industries play a pivotal role in the overall economic development of a country by providing the necessary infrastructure and inputs for other sectors to function efficiently.
3. **Reasons for emphasizing capital and basic goods industries:**
- The Mahalanobis model recognized the importance of developing a strong industrial base to drive economic growth.
- By promoting capital and basic goods industries, the model aimed to create a solid foundation for the growth of other sectors, including consumer goods industries, expert-oriented industries, and agro-based industries.
- These industries not only generate employment opportunities but also contribute to increasing the overall productivity and competitiveness of the economy.
In conclusion, the Mahalanobis model stressed upon the establishment of capital and basic goods industries to foster industrialization and economic growth in India. These industries are considered fundamental for creating a strong industrial base and providing the necessary infrastructure and inputs for the development of other sectors.
The most important problem in Estimating GNP is: - a)Double counting
- b)Smuggling
- c)Black marketing
- d)Unorganised market
Correct answer is option 'A'. Can you explain this answer?
The most important problem in Estimating GNP is:
a)
Double counting
b)
Smuggling
c)
Black marketing
d)
Unorganised market
|
|
Ritika Iyer answered |
Estimating GNP (Gross National Product) is a complex task that involves various challenges. However, the most important problem in estimating GNP is double counting. In this article, we will discuss this problem in detail.
What is Double Counting?
Double counting is a situation where the same value of a good or service is included in the calculation of GNP multiple times. This can happen when different stages of production are included in the calculation of GNP, leading to the double counting of intermediate goods.
For example, imagine a farmer produces wheat, which is sold to a flour mill. The flour mill then sells the flour to a bakery, which uses it to make bread. If we include the value of wheat, flour, and bread in the calculation of GNP, we will be double-counting the value of wheat and flour.
Why is Double Counting a Problem?
Double counting leads to an overestimation of GNP, which can have various negative consequences. For example:
- It can lead to incorrect economic policies that are based on inaccurate GNP data.
- It can skew the distribution of income and wealth in the economy.
- It can affect international trade and investment decisions.
How to Avoid Double Counting?
To avoid double counting, the following measures can be taken:
- Only final goods and services should be included in the calculation of GNP.
- Intermediate goods should be excluded from the calculation of GNP.
- The value of intermediate goods should be subtracted from the value of final goods and services to avoid double counting.
Conclusion
In conclusion, double counting is the most important problem in estimating GNP. It can lead to an overestimation of GNP, which can have various negative consequences. To avoid double counting, only final goods and services should be included in the calculation of GNP, and the value of intermediate goods should be subtracted from the value of final goods and services.
What is Double Counting?
Double counting is a situation where the same value of a good or service is included in the calculation of GNP multiple times. This can happen when different stages of production are included in the calculation of GNP, leading to the double counting of intermediate goods.
For example, imagine a farmer produces wheat, which is sold to a flour mill. The flour mill then sells the flour to a bakery, which uses it to make bread. If we include the value of wheat, flour, and bread in the calculation of GNP, we will be double-counting the value of wheat and flour.
Why is Double Counting a Problem?
Double counting leads to an overestimation of GNP, which can have various negative consequences. For example:
- It can lead to incorrect economic policies that are based on inaccurate GNP data.
- It can skew the distribution of income and wealth in the economy.
- It can affect international trade and investment decisions.
How to Avoid Double Counting?
To avoid double counting, the following measures can be taken:
- Only final goods and services should be included in the calculation of GNP.
- Intermediate goods should be excluded from the calculation of GNP.
- The value of intermediate goods should be subtracted from the value of final goods and services to avoid double counting.
Conclusion
In conclusion, double counting is the most important problem in estimating GNP. It can lead to an overestimation of GNP, which can have various negative consequences. To avoid double counting, only final goods and services should be included in the calculation of GNP, and the value of intermediate goods should be subtracted from the value of final goods and services.
National Income doesn’t include :- a)Interest on unproductive national debt
- b)Income for government expenditure
- c)The payments by the household to firm for the purchase of goods and services
- d)Undistributed profit
Correct answer is option 'A'. Can you explain this answer?
National Income doesn’t include :
a)
Interest on unproductive national debt
b)
Income for government expenditure
c)
The payments by the household to firm for the purchase of goods and services
d)
Undistributed profit
|
|
Alok Mehta answered |
National income is the sum of the incomes of the owners of the production factors, belonging to a specific nationality and during a specific period of time, usually one year.
It includes:
Income of labour: Salaries
Income of capital: Rents, interests, utilities and dividends
Income of land: Rent of the land
National income doesn’t include those incomes that doesn’t have the provision of a good or a service as a counterpart, like:
Subsidies
Child benefits
Retirement pensions
The difference between value of output and value added is:- a)Depreciation
- b)Intermediate consumption
- c)Net indirect taxes
- d)NFIA
Correct answer is option 'B'. Can you explain this answer?
The difference between value of output and value added is:
a)
Depreciation
b)
Intermediate consumption
c)
Net indirect taxes
d)
NFIA
|
|
Arun Khanna answered |
It refers to the addition of value to the raw material (intermediate goods) by a firm by virtue of its productive activities. Alternatively, value added is defined as contribution of an enterprise to the current flow of goods and services. It is the difference between value of output and value of intermediate inputs.
Which of the following is not a tenancy reforms:- a)Regulation of rent
- b)Security of tenure
- c)Conferment of ownership rights on tenants
- d)Consolidation of holdings.
Correct answer is option 'D'. Can you explain this answer?
Which of the following is not a tenancy reforms:
a)
Regulation of rent
b)
Security of tenure
c)
Conferment of ownership rights on tenants
d)
Consolidation of holdings.
|
|
Priya Patel answered |
Tenancy Reforms
Regulation of Rent
Regulation of Rent
The rent paid by the tenants during the pre-independence period was exorbitant. It was anything between the 35 and 75 percent of gross produce throughout India. With the enactment of legislation for regulating the rent payable by the cultivators in the early 1950s, fair rent was fixed at 20 to 25 percent of the gross produce level in all the states except Punjab, Haryana, Jammu and Kashmir, Tamil Nadu, and some parts of Andhra Pradesh. In these states, the rent payable by the tenants varied between 25 percent and 40 percent, depending on the available irrigation facilities.
Security of tenure
Providing security of tenure was the second important reforms brought about during the first three five-year plans via tenancy acts. Legislation for security of tenure had three essential elements:
Ejection could not take place except in accordance with the provision of the law;
Land could be resumed by an owner, but only for personal cultivation;
and in the event of resumption, the tenant was assured of a prescribed minimum area.
Tenancy laws were enacted in all states though their implementation varied widely across the states.
Conferment of ownership rights to tenants
The third important component of tenancy legislations was the conferment of ownership rights to tenants.
At national level, a tenancy regulation policy was announced. As per this policy, large landowners were allowed to evict their tenants and to bring the land under personal cultivation up to a ceiling limit to be prescribed by each state. At that time, the term “personal cultivation” was defined as cultivation by the owner of the land and other members of his family.
The tenants of those lands which were not resumable (i.e. without landowners) were given occupancy rights on payment of a price to be fixed as a multiple of the rental value of the land.
The owners of land not exceeding a family holding were defined as small owners. Land belonging to small and middle owners was divided into two categories viz. land under personal cultivation, and land leased to tenants at will. If the land posses was below a ceiling restriction, tenants of such land owners were given limited protection, provided that it should be renewed for five to ten years and should be renewable, and that the maximum rent payable should not exceed 20 to 25 percent of the gross produce. However, in second five year plan, the definition of “personal cultivation” was amended with three elements viz. risk of cultivation, personal supervision, and personal labor. This further narrowed down to define who was eligible for the ownership rights on land. In the third five year plan, the final goal was fixed to confer rights of ownership to as many tenants as possible. The policy suggested that the states should study the problem and determine the suitable action in light of prevailing conditions. In the fourth plan, the tenancies were suggested to be declared non-resumable and permanent except in the case of landowners working in defence services or with any disability.” Thus, the lands where cultivators, agricultural labourers, and artisans had constructed their houses, was now to be their own land.
All these efforts were partially successful in reversing the conditions of the British Era. But still, there were issues of tenants being forced to sell the lands due to poverty. The government was suggested to make efforts to bring them within the institutional credit regime.
In the sixth five year plan, a time bound schedule was given to the states to implement the measures of land reforms. It further recommended that the states in which legislative provisions for conferment of ownership rights on all tenants did not exist should immediately introduce appropriate legislative measures within one year (by 1981–1982). However, it was not achieved in all states.
Fringe Benefit Tax came in ________.- a)1994-95
- b)1995-96
- c)2001-02
- d)2005-06
Correct answer is option 'D'. Can you explain this answer?
Fringe Benefit Tax came in ________.
a)
1994-95
b)
1995-96
c)
2001-02
d)
2005-06
|
|
Alok Mehta answered |
Fringe Benefit Tax (FBT) was introduced as part of Finance Act, 2005 as an additional income-tax and came into force from April 1, 2005. The term Fringe Benefits means 'any consideration for employment provided by way of any privilege, service, facility or amenity provided by the employer to the employees'.
Which of these are responsible for measuring inequalities of income and wealth?- a)Gini index
- b)HDI
- c)Both (a) and (b)
- d)None.
Correct answer is option 'A'. Can you explain this answer?
Which of these are responsible for measuring inequalities of income and wealth?
a)
Gini index
b)
HDI
c)
Both (a) and (b)
d)
None.
|
|
Poonam Reddy answered |
By far the most popular measure of income inequality, the Gini coefficient15,16,17,18 is derived from the Lorenz curve framework illustrated in figure 1. Figure 1 The Lorenz curve framework (hypothetical data). The Lorenz curve shows the percentage of total income earned by cumulative percentage of the population.
Our _______ population is below poverty line:- a)Nearly half
- b)More than one-fourth
- c)Less than one-fourth
- d)Nearly one-fourth
Correct answer is option 'D'. Can you explain this answer?
Our _______ population is below poverty line:
a)
Nearly half
b)
More than one-fourth
c)
Less than one-fourth
d)
Nearly one-fourth
|
|
Alok Mehta answered |
22%
In 2012, the Indian government stated 22% of its population is below its official poverty limit. The World Bank, in 2011 based on 2005's PPPs International Comparison Program, estimated 23.6% of Indian population, or about 276 million people, lived below $1.25 per day on purchasing power parity.
GDP at factor cost + GDP at market price
–(minus) _________ +(plus) subsidies- a)Direct taxes
- b)Indirect taxes
- c)Income from abroad
- d)Foreign debts.
Correct answer is option 'B'. Can you explain this answer?
GDP at factor cost + GDP at market price
–(minus) _________ +(plus) subsidies
–(minus) _________ +(plus) subsidies
a)
Direct taxes
b)
Indirect taxes
c)
Income from abroad
d)
Foreign debts.
|
|
Nandini Iyer answered |
GDP(FC) = GDP(MP) - Indirect Taxes + Subsidies
If the Government tries to raise the subsidies, the Difference between the GDP(FC) and GDP(FC) will increase. The same is opposite for Indirect taxes.
GNP = GDP + _____________.- a)Depreciation
- b)N.F.I.A
- c)N.I.T
- d)None of the above
Correct answer is option 'B'. Can you explain this answer?
GNP = GDP + _____________.
a)
Depreciation
b)
N.F.I.A
c)
N.I.T
d)
None of the above
|
|
Arjun Singhania answered |
Gross National Product (GNP) is defined as the total market value of all final goods and services produced in a country during a specific period of time, usually one year. It measures the output generated by a country’s organizations located domestically or abroad.
Therefore, it can be said that national income is the measure of the current output of economic activity of the country. In GNP, the word gross indicates total national product including depreciation. Depreciation indicates a decrease in the value of an asset with time. It is also called consumption of fixed capital.
The GNP can be calculated with the help of the following formula:
GNP = GDP + Net Factor Income from Abroad (NFIA)
GNP includes the income earned by local players in abroad and excludes the income earned by foreign players in national boundaries. On the other hand, in case of GDP, it is reversed because the income earned by foreign players in national boundaries is added and the income earned by local players in abroad is deducted.
Indian accommodates nearly ________ percent of world’s population:- a)10
- b)17.5
- c)50
- d)19
Correct answer is 'B'. Can you explain this answer?
Indian accommodates nearly ________ percent of world’s population:
a)
10
b)
17.5
c)
50
d)
19
|
|
Amrutha Goyal answered |
The exchange of commodities between two countries is referred to as the volume of trade.
Explanation:
When two countries engage in the exchange of goods and services, it is commonly referred to as trade. The volume of trade represents the quantity of goods and services traded between the two countries. It is a measure of the extent of economic interaction between nations.
Balance of trade:
The balance of trade refers to the difference between the value of a country's exports and the value of its imports. It represents the monetary value of trade and indicates whether a country has a trade surplus or a trade deficit.
Bilateral trade:
Bilateral trade refers to the exchange of goods and services between two countries. It involves direct trade relationships between two nations, without the involvement of other countries or trade blocs.
Multilateral trade:
Multilateral trade refers to the exchange of goods and services between multiple countries. It involves trade relationships between more than two nations and can be facilitated through regional trade agreements, such as free trade agreements or participation in international trade organizations, such as the World Trade Organization (WTO).
Conclusion:
The correct answer to the question is option B, volume of trade. While balance of trade, bilateral trade, and multilateral trade are related concepts, they represent different aspects of international trade. The volume of trade specifically refers to the quantity of goods and services exchanged between two countries, regardless of their monetary value or trade balance.
Which is the apex body in industrial finance in India?- a)Industrial Development Bank of India
- b)Reserve Bank of India
- c)State Bank of India
- d)Ministry of Industries
Correct answer is option 'A'. Can you explain this answer?
Which is the apex body in industrial finance in India?
a)
Industrial Development Bank of India
b)
Reserve Bank of India
c)
State Bank of India
d)
Ministry of Industries
|
|
Aditi Joshi answered |
Apex Body in Industrial Finance in India
The apex body in industrial finance in India is the Industrial Development Bank of India (IDBI). It was established in 1964 under an Act of Parliament as a wholly-owned subsidiary of the Reserve Bank of India (RBI). In 2019, IDBI Bank was privatized, and now LIC is the majority stakeholder of the bank.
Functions of IDBI
IDBI is responsible for providing financial assistance to various industrial sectors, including small and medium enterprises (SMEs), infrastructure, and export-oriented units. Its primary functions include:
1. Project Finance: IDBI provides long-term financial assistance to industrial projects that require huge capital investments.
2. Refinancing: IDBI refinances loans given by other financial institutions to industrial projects.
3. Underwriting: IDBI underwrites securities issued by corporate bodies.
4. Bills Discounting: IDBI discounts bills of exchange of industrial units.
5. Investment Banking: IDBI provides investment banking services, including underwriting, advisory services, and project appraisal.
6. Merchant Banking: IDBI provides merchant banking services, including issue management, portfolio management, and capital restructuring.
7. Venture Capital: IDBI provides venture capital to start-ups and high-growth companies.
Conclusion
In conclusion, IDBI is the apex body in industrial finance in India. It plays a vital role in promoting industrial development by providing financial assistance to various industrial sectors. Its functions include project finance, refinancing, underwriting, bills discounting, investment banking, merchant banking, and venture capital.
The apex body in industrial finance in India is the Industrial Development Bank of India (IDBI). It was established in 1964 under an Act of Parliament as a wholly-owned subsidiary of the Reserve Bank of India (RBI). In 2019, IDBI Bank was privatized, and now LIC is the majority stakeholder of the bank.
Functions of IDBI
IDBI is responsible for providing financial assistance to various industrial sectors, including small and medium enterprises (SMEs), infrastructure, and export-oriented units. Its primary functions include:
1. Project Finance: IDBI provides long-term financial assistance to industrial projects that require huge capital investments.
2. Refinancing: IDBI refinances loans given by other financial institutions to industrial projects.
3. Underwriting: IDBI underwrites securities issued by corporate bodies.
4. Bills Discounting: IDBI discounts bills of exchange of industrial units.
5. Investment Banking: IDBI provides investment banking services, including underwriting, advisory services, and project appraisal.
6. Merchant Banking: IDBI provides merchant banking services, including issue management, portfolio management, and capital restructuring.
7. Venture Capital: IDBI provides venture capital to start-ups and high-growth companies.
Conclusion
In conclusion, IDBI is the apex body in industrial finance in India. It plays a vital role in promoting industrial development by providing financial assistance to various industrial sectors. Its functions include project finance, refinancing, underwriting, bills discounting, investment banking, merchant banking, and venture capital.
Which of the following is not correct? - a)NNPMP = GNPMP - depreciation
- b)NNPMP = NNPFC+ net indirect taxes
- c)GDPMP+.NFIA
- d)NDPFC = GDPFC- depreciation
Correct answer is option 'C'. Can you explain this answer?
Which of the following is not correct?
a)
NNPMP = GNPMP - depreciation
b)
NNPMP = NNPFC+ net indirect taxes
c)
GDPMP+.NFIA
d)
NDPFC = GDPFC- depreciation
|
|
Aditya Das answered |
Explanation:
The given options are related to national income accounting, which is used to measure the economic performance of a country. The correct relation among the national income accounting variables is:
GDPMP = GNPMP - NFI
where GDPMP is the gross domestic product at market prices, GNPMP is the gross national product at market prices, and NFI is the net factor income from abroad.
Let's analyze each option to find out the incorrect one:
a) NNPMP = GNPMP - depreciation
This equation is correct, where NNPMP is the net national product at market prices. It is the GNPMP minus depreciation. Depreciation is the decrease in the value of fixed assets due to wear and tear or obsolescence.
b) NNPMP = NNPFC + net indirect taxes
This equation is also correct, where NNPFC is the net national product at factor cost, and net indirect taxes are the indirect taxes minus subsidies. The factor cost is the cost incurred by the producer in producing a product or service.
c) GDPMP . NFI
This equation is incorrect because it does not represent any valid relation between the national income accounting variables. The dot (.) symbol is not a valid operator in national income accounting.
d) NDPFC = GDPFC - depreciation
This equation is correct, where NDPFC is the net domestic product at factor cost, and GDPFC is the gross domestic product at factor cost. The NDPFC is the GDPFC minus depreciation.
Therefore, option (c) is the incorrect one.
The given options are related to national income accounting, which is used to measure the economic performance of a country. The correct relation among the national income accounting variables is:
GDPMP = GNPMP - NFI
where GDPMP is the gross domestic product at market prices, GNPMP is the gross national product at market prices, and NFI is the net factor income from abroad.
Let's analyze each option to find out the incorrect one:
a) NNPMP = GNPMP - depreciation
This equation is correct, where NNPMP is the net national product at market prices. It is the GNPMP minus depreciation. Depreciation is the decrease in the value of fixed assets due to wear and tear or obsolescence.
b) NNPMP = NNPFC + net indirect taxes
This equation is also correct, where NNPFC is the net national product at factor cost, and net indirect taxes are the indirect taxes minus subsidies. The factor cost is the cost incurred by the producer in producing a product or service.
c) GDPMP . NFI
This equation is incorrect because it does not represent any valid relation between the national income accounting variables. The dot (.) symbol is not a valid operator in national income accounting.
d) NDPFC = GDPFC - depreciation
This equation is correct, where NDPFC is the net domestic product at factor cost, and GDPFC is the gross domestic product at factor cost. The NDPFC is the GDPFC minus depreciation.
Therefore, option (c) is the incorrect one.
Aam Admi Bima Yojana was launched on:- a)November 14, 2011
- b)March 5, 2009
- c)March 10, 2008
- d)October 2, 2007
Correct answer is 'D'. Can you explain this answer?
Aam Admi Bima Yojana was launched on:
a)
November 14, 2011
b)
March 5, 2009
c)
March 10, 2008
d)
October 2, 2007
|
Jayant Mishra answered |
Aam Aadmi Bima Yojana. Aam Aadmi Bima Yojana is a Social Security Scheme for rural landless household. It was launched on 2nd October, 2007 . Under this scheme the head of the family or one earning member in the family of such a household is covered.
AGMARK is related to: - a)Industrial production
- b)Service sector
- c)Agricultural production
- d)Egg Production
Correct answer is option 'C'. Can you explain this answer?
AGMARK is related to:
a)
Industrial production
b)
Service sector
c)
Agricultural production
d)
Egg Production
|
|
Kavita Joshi answered |
AGMARK is a certification mark employed on agricultural products in India, assuring that they conform to a set of standards approved by the Directorate of Marketing and Inspection an attached Office of the Department of Agriculture, Cooperation and Farmers Welfare under Ministry of Agriculture & Farmers Welfare an
The basic reason for considering the Indian Economy as an underdeveloped economy is:- a)Wide spread poverty
- b)High rate of population growth
- c)Wide spread income inequalities
- d)All of the above
Correct answer is option 'D'. Can you explain this answer?
The basic reason for considering the Indian Economy as an underdeveloped economy is:
a)
Wide spread poverty
b)
High rate of population growth
c)
Wide spread income inequalities
d)
All of the above
|
|
Rajat Patel answered |
The term underdevelopment refers to that state of an economy where levels of living of masses are extremely low due to very low levels of per capita income resulting from low levels of productivity and high growth rates of population.
________ provides crop storage facility in India- a)IDBI
- b)FCI
- c)ICICI
- d)IFCI
Correct answer is option 'B'. Can you explain this answer?
________ provides crop storage facility in India
a)
IDBI
b)
FCI
c)
ICICI
d)
IFCI
|
|
Jayant Mishra answered |
FCI
Warehousing of food grains, proper storage and upkeep, protection from bad weather and rodents, besides natural decay and weather effects, are becoming a big business opportunity for those who can manage the problems and handle upto a mammoth 120 million tonnes of grains in our country. This capacity need to cover our chemical fertiliser storage too, which is essential for the development and growth of the agricultural industry.
In simple terms, it is a capital intensive business, needing about Rs5,000 per tonne of warehousing and would require a minimum 10-12 years for a break-even of costs.
The biggest and widest storage capacity is held by the Food Corporation of India (FCI) and its associate organisations. There are state-wise storage capacities as well. Central Warehousing Corporation alone, for example, has 490 warehouses that can hold 9.8 million tonnes of food grains. Besides these, State Warehousing corporations in Andhra Pradesh, Haryana and Kerala take care of the local needs, though, not sufficient to meet the entire demand.
GDPMP=GDPFC+________:- a)Depreciation
- b)NIFA
- c)Net indirect Tax
- d)Subsidies
Correct answer is option 'C'. Can you explain this answer?
GDPMP=GDPFC+________:
a)
Depreciation
b)
NIFA
c)
Net indirect Tax
d)
Subsidies
|
|
Madhavan Malik answered |
Explanation:
GDPMP (Gross Domestic Product at Market Prices) is the total value of all final goods and services produced within the domestic territory of a country during a particular period, valued at market prices.
GDPFC (Gross Domestic Product at Factor Cost) is the total value of all final goods and services produced within the domestic territory of a country during a particular period, valued at factor cost.
Net Indirect Tax:
Indirect taxes are those taxes which are levied on the production and sale of goods and services. These taxes are ultimately borne by the consumers of these goods and services. Examples of indirect taxes include excise duty, customs duty, sales tax, service tax, etc. Net Indirect Tax is the difference between Indirect Taxes collected by the government and subsidies given by the government.
Subsidies:
Subsidies are the financial assistance provided by the government to support industries or businesses. They are given to encourage production and consumption of goods and services, especially in the case of essential commodities. Subsidies reduce the cost of production and make the products affordable to the consumers.
Therefore, GDPMP=GDPFC+Net Indirect Tax-Subsidies
Since GDPMP and GDPFC are equal, we can say that GDPMP=GDPFC= GDP at factor cost. So, the correct answer is option C, which is Net Indirect Tax.
GDPMP (Gross Domestic Product at Market Prices) is the total value of all final goods and services produced within the domestic territory of a country during a particular period, valued at market prices.
GDPFC (Gross Domestic Product at Factor Cost) is the total value of all final goods and services produced within the domestic territory of a country during a particular period, valued at factor cost.
Net Indirect Tax:
Indirect taxes are those taxes which are levied on the production and sale of goods and services. These taxes are ultimately borne by the consumers of these goods and services. Examples of indirect taxes include excise duty, customs duty, sales tax, service tax, etc. Net Indirect Tax is the difference between Indirect Taxes collected by the government and subsidies given by the government.
Subsidies:
Subsidies are the financial assistance provided by the government to support industries or businesses. They are given to encourage production and consumption of goods and services, especially in the case of essential commodities. Subsidies reduce the cost of production and make the products affordable to the consumers.
Therefore, GDPMP=GDPFC+Net Indirect Tax-Subsidies
Since GDPMP and GDPFC are equal, we can say that GDPMP=GDPFC= GDP at factor cost. So, the correct answer is option C, which is Net Indirect Tax.
_________ is the apex bank for agriculture credit in India: - a)RBI
- b)SIDBI
- c)NABARD
- d)ICICI
Correct answer is option 'C'. Can you explain this answer?
_________ is the apex bank for agriculture credit in India:
a)
RBI
b)
SIDBI
c)
NABARD
d)
ICICI
|
|
Puja Singh answered |
Explanation:
The correct answer is option 'C' - NABARD (National Bank for Agriculture and Rural Development).
NABARD is the apex bank for agriculture credit in India. It was established on 12 July 1982 by a special act of the parliament. The main objective of NABARD is to provide and regulate credit and other facilities for the promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts, and other rural crafts.
Key Points:
- Apex Bank: NABARD is considered the apex bank for agriculture credit in India.
- Establishment: It was established on 12 July 1982.
- Special Act: NABARD was established by a special act of the parliament.
- Objective: The main objective of NABARD is to provide and regulate credit and other facilities for the promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts, and other rural crafts.
Functions of NABARD:
1. Credit Functions:
- NABARD provides credit facilities to various institutions involved in agricultural and rural development activities.
- It refinances the credit provided by commercial banks, cooperative banks, and regional rural banks.
- It also provides direct lending facilities to eligible institutions.
2. Development Functions:
- NABARD promotes and develops innovative financial products and services for agriculture and rural development.
- It provides financial assistance for the establishment of rural infrastructure projects.
- It supports research and development activities in agriculture and rural development.
3. Supervisory Functions:
- NABARD supervises the functioning of cooperative banks and regional rural banks.
- It conducts inspections and audits to ensure the proper functioning of these institutions.
4. Other Functions:
- NABARD acts as a coordinator and facilitator for rural credit institutions.
- It provides training and capacity building programs for the staff of various institutions involved in rural development.
Conclusion:
NABARD is the apex bank for agriculture credit in India. It plays a crucial role in providing credit and other facilities for the promotion and development of agriculture and rural areas.
The correct answer is option 'C' - NABARD (National Bank for Agriculture and Rural Development).
NABARD is the apex bank for agriculture credit in India. It was established on 12 July 1982 by a special act of the parliament. The main objective of NABARD is to provide and regulate credit and other facilities for the promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts, and other rural crafts.
Key Points:
- Apex Bank: NABARD is considered the apex bank for agriculture credit in India.
- Establishment: It was established on 12 July 1982.
- Special Act: NABARD was established by a special act of the parliament.
- Objective: The main objective of NABARD is to provide and regulate credit and other facilities for the promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts, and other rural crafts.
Functions of NABARD:
1. Credit Functions:
- NABARD provides credit facilities to various institutions involved in agricultural and rural development activities.
- It refinances the credit provided by commercial banks, cooperative banks, and regional rural banks.
- It also provides direct lending facilities to eligible institutions.
2. Development Functions:
- NABARD promotes and develops innovative financial products and services for agriculture and rural development.
- It provides financial assistance for the establishment of rural infrastructure projects.
- It supports research and development activities in agriculture and rural development.
3. Supervisory Functions:
- NABARD supervises the functioning of cooperative banks and regional rural banks.
- It conducts inspections and audits to ensure the proper functioning of these institutions.
4. Other Functions:
- NABARD acts as a coordinator and facilitator for rural credit institutions.
- It provides training and capacity building programs for the staff of various institutions involved in rural development.
Conclusion:
NABARD is the apex bank for agriculture credit in India. It plays a crucial role in providing credit and other facilities for the promotion and development of agriculture and rural areas.
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