Indian Economy Questions

Q:

What was one outcome of laissez faire economic policies?

A) Poverty traps that cannot be escaped through free choice B) Monopoly power that emerges naturally in the market and allows businesses to exploit consumers
C) Businesses pay workers low D) All of the above
 
Answer & Explanation Answer: D) All of the above

Explanation:

Laissez-faire is simply a way to describe a government's hands-off approach to economic policies. This approach was particularly prevalent in the United States at the turn of the 20th century, which led to numerous issues within American manufacturing.

 

There are many outcomes of laissez-faire economic policies. Some of the outcomes of laissez-faire economics were:

* Businesses pay workers low.

* Pollution of air and water.

* Poverty traps that cannot be escaped through free choice. 

* General glut that results from overproduction or underconsumption

* Monopoly power that emerges naturally in the market and allows businesses to exploit consumers. 

* Exploitation of the working class that pushes wages down to subsistence and compels laborers to work in harsh and unsafe conditions. 

* External economies that generate situations where desirable goods are underproduced on the market, and undesirable goods are overproduced on the market. 

* Public goods that are not supplied by the market due to free-rider problems.

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1 1883
Q:

The Budget proposals also seek to provide relief to salaried tax payers by allowing a standard deduction of what amount in place of the present exemption allowed for transport allowance and reimbursement of miscellaneous medical expenses?

A) Rs. 20,000 B) Rs. 40,000
C) Rs. 50,000 D) Rs. 80,000
 
Answer & Explanation Answer: B) Rs. 40,000

Explanation:

The standard deduction of Rs. 40,000 is seek to provide relief to salaried tax payers in the Budget proposals in place of the present exemption allowed for transport allowance and reimbursement of miscellaneous medical expenses.

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0 1880
Q:

A basic concept in economics is that all resources are

A) Valuable B) Limited
C) Renewable D) Allocated
 
Answer & Explanation Answer: B) Limited

Explanation:

The basic concept in economics is that all resources are limited.

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1 1867
Q:

An increase in the quantity demanded means that

A) The demand curve shifted to right B) Price of the product has declined
C) Increase in consumer income D) All the above
 
Answer & Explanation Answer: D) All the above

Explanation:
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1 1866
Q:

Economic liberalization in India started with ___________.

A) substantial changes in industrial licensing policy   B) convertibility of Indian rupee  
C) doing away with procedural formalities for foreign direct investment D) significant reduction in tax rates  
 
Answer & Explanation Answer: A) substantial changes in industrial licensing policy  

Explanation:
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1 1857
Q:

Which of the following programme is launched to develop basic infrastucture in the country

A) Bharat Nirman Programme B) Technical Mission
C) Special Economic Zones D) None of these
 
Answer & Explanation Answer: A) Bharat Nirman Programme

Explanation:
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0 1855
Q:

Sundarbans of Estern India is an example of

A) Forest Ecosystem B) Mangrove Ecosystem
C) Grassland Ecosystem D) Marine Ecosystem
 
Answer & Explanation Answer: B) Mangrove Ecosystem

Explanation:
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1 1831
Q:

A government subsidy to the producers of a product

A) reduces product demand B) increases product supply
C) reduces product supply D) increases product demand
 
Answer & Explanation Answer: B) increases product supply

Explanation:
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1 1818