UPSC Indian Economy Test 8 (Old Year Questions)

Ans a
Abid Hussain Committee recommended for the abolition of reservation of items for Small Scale Sector in Industry.

Ans b
The new WPI series with base 1993-94 = 1000 became effective from April 2000.

Ans b
Foreign Direct Investment is good for the host country as this type of capital is hot money as portfolio investment which can float overnight with differential interest rates in the international markets.

Ans b
Marine products valued at more than Rs. 6000 crore annually accounts for largest agricultural exports by India during 1997-98 to 1999-2000.

Ans d
“National Development Council”, a non-statutory body comprising of Prime Minister (Chairman of Planning Commission), Deputy Chairman and members of Planning Commission, Cabinet Ministers, Chief Ministers of the States and the Administrators of the States ruled by the Centre. It is the final authority to approve five year plan in India.

Ans a
Some of the functions of RBI are:
Banker to the Central Government.
Formulates and administers Monetary Policy.
Bank of issue.
Bankers to the bank.
Custodian of foreign exchange.
Controller of credit.
Banker, agent and financial adviser to the State.

Ans a
Antyodaya Anna Yojana – 2000 Gram Sadak Yojana – 2000 Sarvapriya – 2001 Jawahar Gram Samriddhi Yojana – 1999.

Ans a
Capital investment, Labour force and Power consumption are the factors which denote the nature and size of the industry.

Ans d
The most appropriate measure of the country’s economic growth is its “per capita Real income” which is also denoted as NNP at factor cost population.

Ans a
A. Fiscal deficit – Excess of Total Expenditure over total Receipts less borrowings.
B. Budget deficit – Excess of Total Expenditure over Total Receipts.
C. Revenue deficit – Excess of Revenue Expenditure over Revenue Receipts.
D. Primary deficit – Excess of Total Expenditure over Total Receipts less borrowings Receipts less borrowings and Internet Payments.

Ans d
All the above organisations i.e., IBRD, IFC, IFAD and IMF are the agencies of UNO. IMF and World Bank/IBRD were established in 1945 with the result of Brettonwood’s agreement. IFC was established in 1956 as a subsidiary to World Bank.

Ans b

Ans b
The largest share of Foreign Direct Investment (1997-2000) went to engineering sector

Ans b
Uruguay Round talks of General Agreement on Trade and Tariffs (GATT) in 1994 led to the foundation for World Trade Organization (WTO) in 1995 with its head quarters at Geneva, Switzerland.

Ans d
Narasimhan Committee is related to Financial sector reforms (Banking Sector Reforms).

Ans c
The new series of Wholesale Price Index (WPI) released by the Government of India is with reference to the base prices of 1993-94. Earlier, it was with 1981-82.

Ans c
National Income represents GNP at market prices minus depreciation and indirect taxes plus subsidies.

Ans a
India’s software exports increased at an average growth rate of 50% since 1995-96 which is due to cost effective nature of Indian Software Companies and maintenance of quality.

Ans a
Both A and R are true and R is the correct explanation of A.

Ans b
A – 3, B – 4, C – 1, D – 2