Nature of Indian Economy

Nature of Indian Economy

Easy Questions
Moderate Questions
Difficult Questions

Indian Economy

Nature of Indian Economy
National Income in India
Planning in India
Population of India
Natural Resources of India
Infrastructure
Social Sectors
Agriculture
World Economy
Industry
Money
Banking
Public Finance
Foreign Trade
International Organisations
Centre-State Relations
Public Service Commission-1
Election Commission
Goods and Service Tax
Emergency Provisions
Constitutional Amendments
Order of Precedence
Indian economy miscellaneous
  1. Which of the following is associated with fiscal policy?








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    Fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy.

    Correct Option: B

    Fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The two main instruments of fiscal policy are changes in the level and composition of taxation and government spending in various sectors.

  1. Fiscal deficit implies








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    Fiscal Deficit: When a government's total expenditure exceed the revenue that it generates (excluding money from borrowings). Deficit differs from debt, which is an accumulation of year deficits.

    Correct Option: A

    Fiscal Deficit: When a government's total expenditure exceed the revenue that it generates (excluding money from borrowings). Deficit differs from debt, which is an accumulation of year deficits.

  1. In an economy a condition of lack of money supply in comparison to the supply of the goods services, will lead to :








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    deflation may be caused by a combination of the supply and demand for goods and the supply and demand fro money, specifically the supply of money going down and the supply of goods going up .

    Correct Option: B

    deflation may be caused by a combination of the supply and demand for goods and the supply and demand fro money, specifically the supply of money going down and the supply of goods going up.

  1. Which of the following best explains the cascading effect pf taxation ?








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    Taxation over taxes'' taxes or ''cascading - effect" of the taxes adds to the dead weight loss i.e. slump in total surplus of supply chain consisting of supplier, manufacturer, retailer and consumer.

    Correct Option: A

    Taxation over taxes'' taxes or ''cascading - effect" of the taxes adds to the dead-weight loss i.e. slump in total surplus of supply chain consisting of supplier, manufacturer, retailer and consumer. Due to cascading tax imposition leads to a disproportionate increase in prices by an extent more than the rise in the tax.

  1. In India, inflation is measured by the :








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    In India, inflation is measured by the wholesale price Index. The wholesale price Index.

    Correct Option: A

    In India, inflation is measured by the wholesale price Index. The wholesale price Index. The wholesale prices of commodities of base year are compared with wholesale prices of current year to compute inflation.