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 Indian Economy Questions

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Q:

Which state in India  is estimated to have the largest coal reserves in India

A) Bihar B) Jharkhand
C) Madhya Pradesh D) Orissa
 
Answer & Explanation Answer: B) Jharkhand

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Q:

The concept of net domestic investment refers to

A) the difference between the market value and book value of outstanding capital stock. B) total investment less the amount of investment goods used up in producing the year's output.
C) the amount of machinery and equipment used up in producing the GDP in a specific year. D) gross domestic investment less net exports.
 
Answer & Explanation Answer: B) total investment less the amount of investment goods used up in producing the year's output.

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Q:

Graphically, the market demand curve is

A) greater than the sum of the individual demand curves B) the horizontal sum of individual demand curves
C) steeper than any individual demand curve that is part of it D) the vertical sum of individual demand curves
 
Answer & Explanation Answer: B) the horizontal sum of individual demand curves

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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  

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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

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Q:

If the production possibilities curve was a straight line, this would imply that

A) Economic resources are perfectly substitutable, in the production of the two products B) Equal quantities of both products are produced at each possible point on the curve
C) The two products will sell at the same market price D) The two products are equally important to consumers
 
Answer & Explanation Answer: C) The two products will sell at the same market price

Explanation:

A production–possibility frontier (PPF) or production possibility curve (PPC) is the possible tradeoff of producing combinations of goods with constant technology and resources per unit time.

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Q:

Poverty level in india is estimated on the basis of

A) Household consumer expenditure B) Slum population in the country
C) Per capita income in different States D) Household average income
 
Answer & Explanation Answer: A) Household consumer expenditure

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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

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