Selected Areas Of Indian Economy – CS Foundation Economics Notes

The literal meaning of population is the whole number of people or inhabitants in a country or region. (Webster’s dictionary). India is projected to be the world’s most populous country by 2025, surpassing China. The demographics of India are inclusive of the second most populous country in the world, with over 1.21 billion people (2011 census), more than a sixth of the world’s population. When India gained independence sixty years ago, the country’s population was a mere 350 million. Since 1947, the population of India has more than tripled.

In 2000, the country established a new National Population Policy to stem the growth of the country’s population. One of the primary goals of the policy was to reduce the total fertility rate to 2.1 by 2010.

1. Reasons For Increase in Population
India currently faces approximately 33 births a minute, Unfortunately, the resources do not increase as the population increases. Instead, the resources keep decreasing, leading to making survival for a human being more and more competitive even for the basic necessities of life like food, clothing, and shelter.

Some of the factors responsible for the high birth rate are

  • Illiteracy
  • early marriage
  • traditional, superstitious and ignorant population.
  • our failure is the absence of an effective system for promoting small families.
  • Moreover, the decline in the death rate has also increased the overall population.
  • The Indian government had launched the Family Planning Programme in 1951. The program has resulted in significant declines in death rates and infant mortality but the birth rate was far more.
  • Active measures are required to be taken to control the population growth

2. Effect of population growth on economic development
The influence of population on the economy is seemingly straightforward. It is about having enough resources to meet the needs of the growing number of people. As the population rises, so will poverty. Being a developing country, the increasing growth rate is dragging India into a vicious cycle of population and poverty, which leads to a development trap. This further increases other problems like illiteracy, unemployment, and inflation

Following are the adverse effects of population growth on the Indian Economy:

  • Adverse effects on savings
  • Unproductive investment
  • Slow growth of Per Capita Income
  • Underutilization of labor
  • Growing pressure on land
  • Adverse effect on the quality of the population
  • Adverse social impact
  • The natural resources available to each person declines as the population increases.
  • Rapid population growth, industrialization, and urbanization in the country are adversely affecting the environment.
  • Increase in unemployment

3. India’s Population policy
There has been an enormous increase in the population of India. While the global population has increased only threefold during the last century, from 2 billion to 6 billion, India’s population has increased nearly five times. Although India was the first developing country to adopt a positive population policy in 1951-52 to stabilize the population at a level the national economy could absorb, yet its achievements in controlling its numbers have been far from satisfactory

The NPP 2000 provides a policy framework for advancing goals and prioritizing strategies during the next decade, to meet the reproductive and child health needs of the people of India, and to achieve net replacement levels (TFR) by 2010

Below mentioned are the National Socio-Demographic Goals to be achieved by 2010

  • Promote delayed marriage for girls, not earlier than age 18 and preferably after 20 years of age.
  • Make school education up to age 14 free and compulsory
  • Achieve universal immunization of children against all vaccine-preventable diseases.
  • Reduce infant mortality rate to below 30 per 1000 live births
  • Reduce maternal mortality ratio to below 100 per 100,000 live births
  • Prevent and control communicable diseases.
  • Achieve 100 percent registration of births, deaths, marriage, and Pregnancy
  • Promote vigorously the small family norm to achieve replacement levels of TFR

4. Poverty
Poverty is about not having enough money to meet basic needs including food, clothing, and shelter, poverty is a 1 complex societal issue. Poverty can be viewed as absolute poverty or relative poverty. Thus if people are not able to get the minimum basic requirement of food and nutrition they are called poor and this poverty comes under absolute poverty. When there is a large gap between the incomes amongst people then poverty is termed relative poverty. Relative poverty shows the unequal distribution of wealth. The biggest enemy of health in the developing world is poverty. Thus removal of poverty was a major issue for India. Since the 1950s, the Indian government and non-governmental organizations have initiated several programs to alleviate poverty, including subsidizing food and other necessities,

The causes of poverty are many. Some of them are

  • high population growth rate- On average 17 million people are added every year to its population which raises the demand for consumption goods considerably
  • A major cause of poverty among India’s rural people, both individuals, and communities is lack of access to
    productive assets and financial resources.
  • High levels of illiteracy, inadequate health care, and extremely limited access to social services. The rate of economic development in India has been below the required level. Therefore, there persists a gap between the level of availability and requirements of goods and services.
  • The existence of underemployment and disguised unemployment of human resources also leads to poverty. Diseases are one of the main causes of poverty in India.
  • The continuous and steep price rise in the price of essential commodities
  • The social setup is still backward. Laws of inheritance, caste system, traditions, and customs are putting hindrances in the way of faster development India has reduced its poverty level to less than 26 percent but the number of people below the poverty line is still a staggering

Major steps to remove poverty are

  • Accountability of government
  • Increasing access to bank finance to rural poor
  • Land reforms and the abolition of zamindari.
  • Increasing literacy level.
  • Relaxation of labor laws
  • Development of small scale industries and cottage industries to reduce urban poverty
  • Adequate employment opportunities.
  • Family planning or family welfare programmes should be effectively implemented
  • Poverty alleviation programs
  • Ensure higher credit flow to rural India

5. Poverty Alleviation Programmes
Poverty alleviation has been one of the guiding principles of the planning process in India. Various programs started are

1. Integrated Rural Development Programme/Swamajayanti Gram Swarozgar Yojana
This program was introduced in selected blocks in 1978-79 and universalized from 2 October 1980 has provided assistance to rural poor in the form of subsidy and bank credit for productive employment opportunities through successive plan periods. The IRDP and allied programs, were merged into a single program known as Swarnajayanti Gram Swarozgar Yojana

2. National rural employment program
The main objective was to generate employment in rural areas

3. Jawahar Rozgar Yojna
It was introduced for generating more employment in the country. lt was introduced in 1989-90

4. Training of Rural Youth for Self-Employment (TRYSEM)
The scheme – TRYSEM aimed at providing basic technical and entrepreneurial skills to the rural poor in the age group of 18-35 years. Out of the total beneficiaries, at least 50% should be women.

5. Desert Development Programme
(DDP) was started both in hot desert areas of Rajasthan, Gujarat, and Haryana and the cold deserts of Jammu & Kashmir and Himachal Pradesh in 1977-78. the main activity was water resources development by construction of channels

6. Minimum Needs Programme
Keeping in view “garibi hatao” notion this scheme was started.

7. Employment guarantee scheme
Under this scheme, unemployed are given financial assistance. It was launched in Maharashtra, Kerala etc

8. Prime Minister Rojgar Yojna
This yojna was implemented in 1993 to give employment to 10 lakh people by setting up seven lakh enterprises

9. Prime Minister’s Integrated Urban Eradication Programme (PMIUPEP)
This program was to provide employment to the urban poor.

10. Swaran Jayanti Rozgar Yojna
It began in 1997. Its aim was to provide employment to urban unemployed and underemployed persons

11. Jawahar Gram Samridhi Yojna
To improve the quality of the urban poor. It started in 1999.

6. Unemployment
Unemployment is the state of an individual looking for a paying job but not having one. Unemployment does not include full-time students, the retired, and children. In India, unemployment is in the form of underemployment, disguised unemployment in rural areas, and unemployment amongst the educated youth.

NSS made 3 estimates on unemployment

  • Principal Status unemployment: These are the people who remained unemployed for the major part of the year.
  • Weekly status unemployment: At the time of the survey people who did not get even an hour of work in a week come under this category.
  • Daily status unemployment: People who did not get work for a day or some days during the survey week The government has undertaken many special programs to remove unemployment. These are
  • Rural Works Program: This program aims at the construction of civil works of permanent nature in rural areas.
  • Integrated Dry Land Agricultural Development: Under this scheme, permanent works like soil conservation, development of land, and water harnessing are undertaken.
  • National Rural Employment Program: This program aims to create community assets for strengthening rural infrastructure, like drinking water wells, community irrigation wells, village tanks, minor irrigation works, rural roads, and schools.
  • The Rural Landless Employment Guarantee Program: It aims at generating gainful employment, creating productive assets in rural areas, and improving the overall quality of rural life. Skill Development: One of the major issues relating to unemployment is skill development. Change in the production methods has led to increasing in demand for skilled labor. A skilled laborer is one who has proper training and education to work in a particular field. Training and education increase the productivity of workers. Skill development means:
  • To educate and provide specialized training to the labor force in order to increase their productivity.
  • To ensure continuous employability of labor.
  • To be able to absorb the new technologies at the work.
  • To compete with the labor force of the other developed countries.

The eleventh plan identified various problems related to unemployment. Some of them are

  • Rise in the unemployment in agricultural laborers
  • Rate of unemployment has increased to 7.3%
  • There has been negligible growth in average real income in non-agriculture employment.
  • Rural male casual labor income increased
  • Despite GDP growth jobs in the organized sector declined.

7. Infrastructure
Infrastructure is a major sector that propels the overall development of the Indian economy. The Secretariat for Infrastructure in the Planning Commission is involved in initiating policies that would ensure the time-bound creation of world-class infrastructure in the country. This section focuses on power, bridges, dams, roads, and urban infrastructure development. Details of the projects, organizations, policies, timelines, schemes, spending on infrastructure are provided for the users. Besides India also provided free and transparent press so that foreign investors are attracted towards making investments in India.

8. Transportation
A well-known and coordinated system of transport plays an important role in the sustained economic growth of a country. The present transport system of India comprises several modes of transport including rail, road, coastal shipping, air transport, etc. Transportation in India has recorded substantial growth over the years both in the spread of networks and in the output of the system. The Ministry of Shipping, Road Transport, and Highways are responsible for the formation and implementation of policies and programs for the development of various modes of transport save the railways and civil aviation. The total length of roads in India is over 30 lakhs km including metalled and unmetalled.

9. Energy
For economic development energy is the basic requirement. Due to rapid economic expansion, India has one of the world’s fastest-growing energy needs. A large number of power projects (XI and XII five-year plans) are under construction to overcome the power shortages and meet the growing energy requirements in the country. Natural gas demand has increased a lot. The Solar Energy Centre (SEC), established in 1982, is a dedicated unit of the Ministry of New and Renewable Energy, Government of India for the development of solar energy

10. Communication
India’s telecommunication network is the third-largest in the world based on the total number of telephone users (both fixed and mobile phones). Telecommunication has supported the socioeconomic development of India and has played a significant role to narrow down the rural-urban digital divide to some extent.

Main initiatives taken for the growth of the Telecom Sector are

  • Telecom equipment manufacturing was delicensed in 1991 and value-added services were declared open to the private sector in 1992, thus the liberalization process was started.
  • In 1994, the Government announced the National Telecom Policy which defined certain important objectives, including the availability of telephone on demand, etc.
  • The Telecom Regulatory Authority of India (TRAI) was, thus, established with effect from 20th February 1997 by an Act of Parliament, called the Telecom Regulatory Authority of India Act, 1997, to regulate telecom services, including fixation/revision of tariffs for telecom services which were earlier vested in the Central Government.
  • The most important milestone and instrument of telecom reforms in India are the New Telecom Policy 1999 (NTP 99). It opened the sector for the private sector

11. Health and education
The Census of India 2001 reveals that despite a host of schemes and programs, only 65.38 percent of the Indian people are literate (75.85 percent men and 54.16 percent women). A staggering number of children, close to 38.41 percent of boys and 51.88 percent of girls in the age group 6-14, are not attending school. Looking at the figure and the importance of education for the overall development of the country many schemes were launched by the government right from the time we got independence.

For the development of the country healthy population is a must. When we look at the data of the country we find that almost 67% of our population does not have access to medicines. In our country, people are undernourished and underfed which leads to unhealthy people. Although children and the mother mortality rate has reduced but not up to mark. More than 50% of the women are anemic. The sanitation facility is also not good. But the government has done a lot to improve health and has started many health schemes.

Selected Areas Of Indian Economy MCQ Questions

Question 1.
In the year 2012 India has almost world
population
a.1.22%
b. 1.154%
c.17.31%
d. 1.95%
Answer:
c.17.31%

Question 2.
Functional unemployment occurs when
a.there is a fall in aggregate demand
b. workers are voluntarily unemployed
c.workers are unemployed due to technology
d. none of these
Answer:
c.workers are unemployed due to technology

Question 3.
How did the population rise affect the scope of economic activity during the eighteenth century?
a.Increase in competition for resources depressed the economy.
b. Increase in demand for goods and services stimulated the economy
c. An increase in competition and increase in demand canceled each other, so there was the little net effect.
d. Europe’s surplus population immigrated to the colonies, making up the bulk of the labor force in them.
Answer:
b. Increase in demand for goods and services stimulated the economy

Question 4.
If a nation has an open economy it means that the nation:
a.Allows private ownership of capital
b. has flexible exchange rates
c.Has fixed exchange rates
d. Conducts trade with other countries
Answer:
d. Conducts trade with other countries

Question 5.
Indian telecommunication is the ________ largest system in world
a.Second
b.Fourth
c.Third
d.Fifth
Answer:
c.Third

Question 6.
NSSOis
a.National survey organization
b.National sample survey organization
c.National security survey organization
d.National unemployment survey organization
Answer:
b.National sample survey organization

Question 7.
Some of the renewable source of energy is
a.Photovoltaic
b.Solar thermal
c.Both a & b
d.Neither a nor b
Answer:
c.Both a & b

Question 8.
Out of the total rail route which is electrified is
a.13000 km
b.63000 km
c.23000 km
d.33000 km
Answer:
a.13000 km

Question 9.
National highway compromise _________% of total road network
a.40
b.2
c.15
d.30
Answer:
b.2

Question 10.
Consequences of the rapid increase in population are
a.Availability of clothes
b.Increase in food production
c.Slower increase in per capita income
d.None of the above
Answer:
c.Slower increase in per capita income

Question 11.
TRAI was established on
a.20th Feb 1997
b.20th Jan 1997
c.20th Mar 1997
d.20th Apr1997
Answer:
a.20th Feb 1997

Question 12.
TRAI is
a.Telecommunication reporting authority of India
b.Telecom regulatory authority of India
c.The telecom Regulations development authority of India
d.None of the above
Answer:
b.Telecom regulatory authority of India

Question 13.
The feature Not present in NTP 99 is
a.Strengthening of the regulator
b.DTP corporatized in 2000
c.National long-distance service to be kept exclusively with public sector
d.Private telecom operators licensed on revenue sharing basis
Answer:
c.National long-distance service to be kept exclusively with public sector

Question 14.
In India the state which has the worst mortality rate is
a.Madhya Pradesh
b.Uttar Pradesh
c.Himachal Pradesh
d.Bihar
Answer:
b.Uttar Pradesh

Question 15.
Invariably the ratio of the teacher is to a student in India is
a.1:40
b.2:40
c.1:50
d.1:80
Answer:
a.1:40

Question 16.
As on March 2010 India has _________ many telephone connections
a.600 million
b.621 million
c.721 million
d.None of the above
Answer:
b.621 million

Question 17.
Unemployment in India is the result of
a.Illiteracy
b.Growth in population
c.Less farming land
d.None of the above
Answer:
b.Growth in population

Question 18.
The death rate in the year 2009-10 showed that the death rate in India is
a.To the level of the death rate of advanced countries
b.To the level of death level of developing countries
c.More than the level of death rate of advanced countries
d.More than the level of death rate of underdeveloped countries
Answer:
a.To the level of the death rate of advanced countries

Question 19.
Major failures that led to the decline in birth rate are
a.Female mortality
b.Absence of social security
c.Low average age of women at the time of marriage
d.Both b & c
Answer:
d.Both b & c

Question 20.
Disguised unemployment in India is mainly related to:
a.agricultural sector
b.rural area
c.factory sector
d.urban area
Answer:
a.agricultural sector

Question 21.
Under milk development plans ______ people were provided employment
a.54 lakh people got employment
b.100 lakh people got employment
c.1 lakh people got employment
d.10 lakh people got employment
Answer:
a.54 lakh people got employment

Question 22.
The plans in Swaran Jayanti Rozgar, which began in Dec. 1997, were ‘
a.Urban wage employment program
b.Nehru Rozgar Yojna
c.Urban self-employment program
d.Both a & c
Answer:
d.Both a & c

Question 23.
As per the standard person year basis if a person is working for 8 hours a day and for _______ days in a year he is regarded as employed
a.280
b.365
c.273
d.None of the above
Answer:
c.273

Question 24.
For calculating an unemployment rate for any reference year generally
a.Open unemployment status is taken
b.Weekly status of unemployment
c.Daily status of unemployment
d.None of the above
Answer:
a.Open unemployment status is taken

Question 25.
The purpose of the employment assurance scheme was
a.To provide 100 days employment for an unskilled manual worker
b.To provide employment for skilled labor
c.To give basic food for people below the poverty line
d.To provide housing facilities for people below the poverty line
Answer:
a.To provide 100 days employment for an unskilled manual worker

Question 26.
The robust increase in employment in 1999¬2005 was of no use because
a.Growth was in the unorganized sector
b.It was mainly in low productivity self-employment
c.There was a decline in rural male agricultural labor
d.Both a & b
Answer:
d.Both a & b

Question 27.
The objective of economic and social development is to
a.Make people productive assets
b. Provide opportunities for people to grow
c. Improve the quality of life people live
d. All of the above
Answer:
d. All of the above

Question 28.
India is being considered a favorable place by foreign institutions for investment because
a.Free press
b. Proper judiciary system
c.Good infrastructure
d. All of the above
Answer:
d. All of the above

Question 29.
In the 5th five year plan for the nation “garibi hatao” program was started by
a.NREP
b. IRDP
c.Minimum needs program
d. Jawahar Yojna
Answer:
c.Minimum needs program

Question 30.
Absolute poverty means
a.Minimum calorie intake required for a person
b. Basic recommended nutritional requirement for a person
c.Difference between the living standard of people
d. Both a & b
Answer:
d. Both a & b

Question 31.
Relative poverty means
a.Minimum calorie intake required for a person
b. Basic requirement of a person
c.Difference between the living standard of people
d. None of the above
Answer:
c.Difference between the living standard of people

Question 32.
Lack of entrepreneurship is a cause of poverty
a.True
b. False
c.Partially true
d. Partially false
Answer:
a.True

Question 33.
Some of the land reforms are
a.Liberty regarding the total land a person can hold
b. Distribution of excessive land to farmers having big land is that the production be increased
c.Abolition of zamindari system
d. All of the above
Answer:
c.Abolition of zamindari system

Question 34.
For the development of cottage 7 small scale industries
a.Loans were provided
b.Some production items were specially reserved
c.Both a & b
d.Neither a nor b
Answer:
c.Both a & b

Question 35.
Rural development programme Scheme was started by Government to
a.Provide loans to rural people
b.To eliminate poverty in rural areas
c.To launch new productive units in rural areas
d.To establish social security in rural areas
Answer:
b.To eliminate poverty in rural areas

Question 36.
It is Uncommon in a zamindari system
a.For land to belong to tiller
b.For land not to belong to tiller
c.That all the cultivated land to belong to zamindar and uncultivated to tiller
d.None of the above
Answer:
a.For land to belong to tiller

Question 37.
Some of the programmes started by Government to eliminate poverty are
a.National family welfare programme
b.NPP
c.NREP
d.All of the above
Answer:
c.NREP

Question 38.
Main featured of India Economy is
a.Rural Poverty
b.Lack of capital
c.Traditional technique of Production
d.none of these
Answer:
d.none of these

Question 39.
In India the dependency force is of the people who are in the age group of
a.Below 14 years
b.Below 15 years
c.Above 14 years
d.15 years
Answer:
a.Below 14 years

Question 40.
Why urban areas not welcomed to be highly populated?
a.Additional demand for sewage system
b.Additional demand for road lighting
c.Additional roads
d.All of the above
Answer:
d.All of the above

Question 41.
In 2001 ___________% of working population was engaged in agriculture
a.37.6%
b.58.2%
c.34.4%
d.43.2%
Answer:
b.58.2%

Question 42.
Which of the following is Not the effect of growing population?
a.Higher per capita income
b.Energy crisis
c.Environmental degradation
d.Mass unemployment
Answer:
a.Higher per capita income

Question 43.
NPP is
a.National population practices
b.National population policy
c.National population priorities
d.None of the above
Answer:
b.National population policy

Question 44.
Which of the following type of employment is found in India?
a.Structural unemployment
b.quasi unemployment
c.disguised unemployment
d.all of these
Answer:
d.all of these

Question 45.
In 1952, India was the first country to
a.Launch the programmed to control death
b.To launch family planning for reducing birth rate
c.To launch family planning for reducing mortality for women
d.All of the above
Answer:
b.To launch family planning for reducing birth rate

Question 46.
IMR is
a.Infant monetary rate
b.Infant mortality rate
c.Indian monetary reserve
d.Indian monetary revenue
Answer:
b.Infant mortality rate

Question 47.
As National family welfare programs were introduced the total fertility rate has reduced from 60 (1951) to ________ 1997
a.3%
b.3.1%
c.3.2%
d.3.3%
Answer:
d.3.3%

Question 48.
Poverty means the incapability of a person to get
a.Food
b.Health
c.Education
d.All of the above
Answer:
d.All of the above

Question 49.
The largest proportion of workforce in India is engaged in the:-
a.External sector
b.Primary sector
c.Secondary sector
d.Tertiary sector
Answer:
b.Primary sector
Hint
The primary sector of the economy is the sector of an economy making direct use of natural resources. This includes agriculture, forestry, fishing, and mining.

Question 50.
In terms of total population, India is the
largest country in the world.
a.First
b.Second
c.Third
d.Not among the first ten
Answer:
b.Second
Hint
The demographics of India are inclusive of the second-most populous country in the world, with over 1.21 billion people (2011 census), more than a sixth of the world’s population.

Question 51.
The highest literacy rate in India is observed in the state of-
a.Punjab
b.Haryana
c.Kerala
d.Andhra Pradesh
Answer:
c.Kerala
Hint

Question 52.
A country experiences population explosion when it gets stuck for long in a stage of demographic transition in which:—
a.Birth rate is high and the death rate is high.
b.Birth rate is low and the death rate is low.
c.Death rate falls steeply but the birth rate continues to be high.
d.Both birth rate arid death rate falls steeply.
Answer:
c.Death rate falls steeply but the birth rate continues to be high.
Hint
Population explosion refers to the rapid and dramatic rise in world population that has occurred over the last few hundred years. A country experiences a population explosion when it gets stuck for long in a stage of demographic transition in which the death rate falls steeply but the birth rate continues to be high

Question 53.
A country is said to be ready to enjoy demographic dividends when
a. The proportion of youth in the total population increases fast
b. The death rate falls across all the age groups
c. The birth rate falls across all the age groups
d. The number of elder citizens rises very fast.
Answer:
a.The proportion of youth in total population increases fast

Question 54.
The primary aim of the Mahatma Gandhi National Rural Employment Guarantee Programme is not to-
a.Lift the household above the poverty
b.Provide, self equipment opportunities to households living below the line of poverty
c.Create and set up rural productive assets
d.Transform rural areas into urban areas
Answer:
d.Transform rural areas into urban areas

Question 55.
Disguised unemployment is a state in which
a.Marginal product of labor rises
b.Marginal product of labour is nil
c.The number of persons available for work is less than the input requirement
d.None of the above
Answer:
b.Marginal product of labour is nil
Hint
Disguised unemployment exists where part of the labor force is either left without work or is working in a redundant manner where worker productivity is essentially zero.

Question 56.
The poverty ratio in India has been falling. It implies that-
a.The number of persons living below poverty. line must have decreased
b. The unemployment ratio in the economy must have fallen
c. The inequality in income distribution must have come down
d. The number of persons living below the poverty line might have increased
Answer:
a.The number of persons living below poverty. line must have decreased
Hint
The national poverty headcount ratio is the percentage of the population living below the national poverty lines. India has reduced its poverty level to less than 26 percent but the number of people below the poverty line is still staggering.

Question 57.
Find the odd one out among the following employment generation programmes:-
a.Urban self-employment programme
b.Urban wage-employment programme
c.Training of rural youth for self-employment
d.Integrated rural development program
Answer:
d.Integrated rural development program
Hint
The government has undertaken many special programs to remove unemployment.These are

  • Rural Works Program
  • Integrated Dry Land Agricultural Development
  • National Rural Employment Program
  • The Rural Landless Employment Guarantee Program
  • Skill Development

Question 58.
One of the following is not a renewable source of energy-
a.Oil
b.Water
c.Wind
d.Solar Energy
Answer:
a.Oil
Hint
Renewable energy is energy generated from natural resources such as sunlight, wind, rain, tides and geothermal heat

Question 59.
The density of population is defined as the number of persons per square-
a.Kilometre
b.Centimetre
c.Millimetre
d.Decimetre
Answer:
a.Kilometre
Hint
Population density is midyear population divided by land area in square kilometers.

Question 60.
Land reforms program in India has aimed at-
a.Fragmentation of holdings
b.Subdivision of holdings
c.Consolidation of holdings
d.Collectivization of holdings.
Answer:
c.Consolidation of holdings
Hint
Land consolidation is a planned readjustment and rearrangement of land parcels and their ownership. Consolidation of fragmented agricultural land was an integral part of land reforms in India.

Question 61.
During the year 2013, the real gross domestic product of a country increased by 8% over the preceding year. During this year population of the country also got increased by 1 6%. In that particular country, the rate of growth of per capita income during 2013 would be:
a.6.4%
b.9.6%
c.5.0%
d.12.8%
Answer:
c.5.0%
Hint
Rate of growth per capita income = 8/1.6 = 5%

Question 62.
In India, at present 100 percent Foreign Direct Investment (FDI) is allowed in:
a.Defence
b.Drugs and Pharmaceuticals
c.Cable Networks
d.Insurance
Answer:
b.Drugs and Pharmaceuticals

Question 63.
In which state or union territory is the literacy rate highest in the country?
a.Delhi
b.Chandigarh
c.Karnataka
d.Kerala
Answer:
d.Kerala

Question 64.
Which one of the following is correct? Over the years the: –
a.Agricultural production has been falling
b.The.Industrial production has been falling
c. The share of the service sector and manufacturing sector in India’s GOP has been stagnant
d. The share of the agricultural sector in India’s GOP has been falling.
Answer:
d.The share of the agricultural sector in India’s GOP has been falling.
Hint
In 2006-07 contribution of the agricultural sector in GDP was 18.5% and in 2010-11 was 14.2%.

Question 65.
The fastest rate of growth in terms of income generated has been recorded in the past couple of decades, in the:
a.Agricultural sector
b.Industrial sector
c.Services sector
d.All of the above
Answer:
c.Services sector
Hint
In India, growth in services sector has been linked to the liberalisation and reforms of the 1990s.

Question 66.
Demographic dividend refers to a phenomenon in which:
a.Life expectancy improves and normally people begin to live longer life
b. The share of elderly persons in the total population rises
c. The proportion of working-age population rises and dominates the age-composition
d.The proportion of children in the total population rises.
Answer:
a.Life expectancy improves and normally people begin to live a longer life
Hint
Demographic dividend refers to a period usually 20 to 30 years when fertility rates fall due to significant reductions in child and infant mortality rates. As women and families realize that fewer children will die during infancy or childhood, they will begin to have fewer children to reach their desired number of offspring, further reducing the proportion of non-productive dependents. This fall is often accompanied by an extension in average life expectancy that increases the portion of the population that is in the working age group.

Question 67.
Which one of the following is the regulating authority for governing the Insurance companies in India?
a.TRAI
b.IRDA
c.PFRDA
d.SEBI
Answer:
c.PFRDA

Question 68.
In terms of contribution made to the GDP, the predominant sector in the Indian economy is –
a.Agricultural sector
b.Manufacturing sector
c.Industrial sector
d.Service sector
Answer:
d.Service sector
Hint
In India, growth in the services sector has been linked to the liberalization and reforms of the 1990s. Service Sector-of Indian Economy contributes to around 55 percent of India’s GDP during 2006-07. This sector plays a leading role in the economy of India.

Question 69.
A good measure of economic welfare in an economy is
a.An increase in normal GDP
b.An increase in real GDP
c.An increase in real per capita income
d.An increase in the supply of money and ATM cards
Answer:
c.An increase in real per capita income
Hint
Economic welfare is the level of prosperity and standard of living of either an individual dr a group of persons. Economic welfare is usually measured in terms of Real Income, real GDP.

Question 70.
Demographic dividend accrues to an economy due to a change in
a.Density of population
b.Sex composition of the population
c.Age composition of the population
d.Rural-urban distribution of population
Answer:
c.Age composition of the population
Hint
Demographic dividend refers to a period usually 20 to 30 years when fertility rates fall due to significant reductions in child and infant mortality rates. As women and families realize that fewer children will die during infancy or childhood, they will begin to have fewer children to reach their desired number of offspring, further reducing the proportion of non-productive dependents. This fall is often accompanied by an extension in average life expectancy that increases the portion of the population that is in the working age-group

Question 71.
The current account deficit of a country measures the excess of –
a.Monetary value of exports of merchandise over the monetary value of imports of merchandise
b.Monetary value of imports of goods over the monetary value of exports of goods during a year
c.Monetary value of imports of goods and services over the monetary value of exports of goods and services
d.Receipts of foreign capital over the withdrawal of foreign capital.
Answer:
b.Monetary value of imports of goods over the monetary value of exports of goods during a year
Hint
Current Account Deficit is a measurement of a country’s trade in which the value of goods and services it imports exceeds the value of goods and services it exports.

Question 72.
A distinguishing feature of unemployment in India is largely the presence of-
a.Disguised unemployment
b.Seasonal unemployment
c.Technological unemployment
d.Cyclical unemployment
Answer:
a.Disguised unemployment
Hint
In India, unemployment is in the form of underemployment, disguised unemployment in rural areas, and unemployment amongst the educated youth.

Question 73.
Which of the following is the regulator for the telecommunication sector in India?
a. TRAI
b. RBI
c. IRDA
d. PFRDA
Answer:
a. TRAI
Hint
The Telecom Regulatory Authority of India (TRAI) was, thus, established with effect from 20th February 1997 by an Act of Parliament, called the Telecom Regulatory Authority of India Act, 1997, to regulate telecom services, including fixation/revision of tariffs for telecom services which were earlier vested in the Central Government.

Question 74.
Arrange the following poverty alleviation programs in the ascending order of the year of launch/implementation:
(I) Employment Assurance Scheme
(II) Prime Minister Rozgar Yojana (PMRY)
(III) Swaran Jayanti Rozgar Yojana
(IV) Jawahar Gram Sarpridhi Yojana
Correct option is
a. (a) (I), (II), (III), (IV)
b. (Ml), (IV), (I), (II)
c. (b) (II), (I), (III), (IV)
d. (IV), (III), (II), (I)
Answer:
b. (Ml), (IV), (I), (II)
Hint
Poverty alleviation has been one of the guiding principles of the planning process in India. Various programs started are

  1. Integrated Rural Development Programme/Swarnajayanti Gram Swarozgar Yojana
  2. National rural employment program
  3. Jawahar Rozgar Yojna -It was introduced in 1989-90
  4. Training of Rural Youth for Self-Employment (TRYSEM)
  5. Desert Development Programme- In 1977-78.
  6. Minimum Needs Programme
  7. Employment guarantee scheme -1994
  8. Prime Minister Rojgar Yojna-This yojna was implemented in 1993
  9. Prime Minister’s Integrated Urban Eradication Programme (PMIUPEP)
  10. Swaran Jayanti Rozgar Yojna -It began in 1997
  11. Jawahar Gram Samiridhi Yojna -1999

Question 75.
TRAI was established in-
a.1997
b.1999
c.1970-7-1
d.1stApril,1999
Answer:
a.1997
Hint
The Telecom Regulatory Authority of India (TRAI) was established with effect from 20th February 1997 by an Act of Parliament, called the Telecom Regulatory Authority of India Act, 1997, to regulate telecom services, including fixation/revision of tariffs for telecom services which were earlier vested in the Central Government.

Question 76.
Which is the world’s most populous country?
a.India
b.China
c.Sri Lanka
d.USA
Answer:
b.China
Hint
India is projected to be the world’s most populous country by 2025, surpassing China. The demographics of India are inclusive of the second-most populous country in the world, with over 1.21 billion people (2011 census), more than a sixth of the world’s population. Presently China is the most populous country.

Question 77.
Disguised unemployment is found in which sector?
a.Telecommunication
b.Industrial
c.Agricultural
d.All of the above Questions from December 2014
Answer:
c.Agricultural
Hint
In India, unemployment is in the form of underemployment, disguised unemployment in rural areas and unemployment amongst the educated youth.

Question 78.
How was Telecom Regulatory Authority of India (TRAI) established?
a.By a resolution of Government of India
b.By Constitution of India
c.By an Act of Parliament
d.By Partnership Act
Answer:
c.By an Act of Parliament
Hint
The Telecom Regulatory Authority of India (TRAI) was established with effect from 20th February 1997 by an Act of Parliament, called the Telecom Regulatory Authority of India Act, 1997, to regulate telecom services.

Question 79.
Unemployment means that:
a.People are not willing to work at the going wage rate.
b.There are some people who will not work at the going wage rate
c.At the going wage rate, there are people who want to work but cannot find work
d.There is excess demand in the labour market
Answer:
c.At the going wage rate, there are people who want to work but cannot find work
Hint
Unemployment is the state of an individual looking for a paying job but not having one. Unemployment does not include full-time students, the retired, children.

Question 80.
Which of the following means Relative Poverty?
a.The number of people living below a certain income threshold
b.The number of households unable to afford certain basic goods and services
c.The extend to which a household financial resources falls below an average income threshold for the economy
d.People given poverty certificates by government.
Answer:
c.The extend to which a household financial resources falls below an average income threshold for the economy
Hint
Relative poverty is the condition in which people lack the minimum amount of income needed in order to maintain the average standard of living in the society in which they live. When there is a large gap between the income amongst people then the poverty is termed as relative poverty . Relative poverty shows unequal distribution of wealth.

Question 81.
Unemployment in which some workers are temporarily out of work while changing their job is called:
a.Seasonal unemployment
b.Cyclical unemployment
c.Frictional unemployment
d.Voluntary unemployment
Answer:
c.Frictional unemployment
Hint
Frictional unemployment is the time period between jobs when a worker is searching for or transitioning from one job to another.

Question 82.
Before the establishment of TRAI, which of the following was responsible for the fixation of tariff for telecom?
a.State Government
b.Central Government
c.BSNL
d.Companies themselves
Answer:
b.Central Government
Hint
The Telecom Regulatory Authority of India (TRAI) was, thus, established with effect from 20th February 1997 by an Act of Parliament, called the Telecom Regulatory Authority of India Act, 1997, to regulate telecom services, including fixation/revision of tariffs for telecom services which were earlier vested in the Central Government.

CS Foundation Business Economics Notes