Indian Economy Quiz: Day 32

December 8, 2022

Which of the following is/are correct?
1 Personal income is the total income received by the individuals of a country from all sources before payment of direct taxes in a year.
2. Personal income can never be equal to the national income.
Select the correct answer using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

Show Answer

Answer: (c)

Personal income is the total income received by the individuals of a country from all sources before payment of direct taxes in a year.
Personal income is never equal to the national income, because the former includes the transfer payments whereas they are not included in national income.

How many of the below given pair(s) is/are correctly matched?
1. Bombay Plan - 15 Year Investment Plan
2. J.P. Narayan - Sarvodaya Plan
3. M.N. Roy - People’s Plan

(A) 1 pair only
(B) 2 pairs only
(C) All the pairs
(D) None of the pairs

Show Answer

Answer: (c)

Bombay Plan (1940): The 8 leading industrialists of Bombay presented “Bombay Plan”. It was a 15 Year Investment Plan.
M.N. Roy (1945) drafted ‘People’s Plan”. It was aiming at mechanization of agricultural production and distribution by the state only.
J.P. Narayan (1950) advocated, “Sarvodaya Plan” which was inspired by Gandhian Plan and with the idea of Vinoba Bhave. It gave importance not only for agriculture, but encouraged small and cottage industries in the plan.

The LEADS Report 2022 was released by?

(A) Ministry of Corporate Affairs
(B) Ministry of Commerce and Industry
(C) NITI Aayog
(D) Department of Economic Affairs

Show Answer

Answer: (b)

Ministry of Commerce and Industry has released the Logistics Ease Across Different States (LEADS) Report 2022.
The LEADS is an indigenous data-driven index to assess logistics infrastructure, services, and human resources across all 36 States and UTs.

Which among the following recently released the report titled 'Asia–Pacific Outlook 2023'?

(A) Organisation for Economic Co-operation and Development
(B) Fitch Ratings Analytics
(C) Asia-Pacific Economic Cooperation
(D) Moody’s Analytics

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Answer: (d)

India is headed for slower growth in 2023, more in line with its long-term potential, Moody’s Analytics said in its latest ‘APAC Outlook: A Coming Downshift’
“Risks to this outlook are largely balanced. On the upside, inward investment and productivity gains in technology, as well as in agriculture could accelerate growth,” the report said
On regional outlook, Moody’s said even though India, as well as other major economies of APAC region are expanding due to their own delayed reopening from pandemic-related shutdowns, the expected slowdowns in Europe and North America, along with China’s sluggish economy, will cause 2023 to be a slower year than 2022 for economic growth.

Which of the following statements is/are correct?
1. Externality may be defined as the cost or benefit imposed by the consumption and production activities of the individuals on the rest of the society not directly involved in these activity and towards which no payment is made.
2. The externalities arise from both production and consumption activities.
Select the correct answer using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

Show Answer

Answer: (c)

Externality may be defined as “the cost or benefit imposed by the consumption and production activities of the individuals on the rest of the society not directly involved in these activity and towards which no payment is made”.

The externalities arise from both production and consumption activities and their impact could be beneficial or adverse.

Consider the following statements:
1 An internal public debt is a loan taken by the Government from the citizens or from different institutions within the country.
2. When a loan is taken from abroad or from an international organisation it is called external public debt.
Select the correct statement(s) using the codes below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

Show Answer

Answer: (c)

Which of the following is/are incorrect?
1. Frictional unemployment arises due to imbalance between supply of labour and demand for labour.
2. Full employment refers to a situation in which every able bodied person who is willing to work at the prevailing wage rate, is employed
Select the answer using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

Show Answer

Answer: (d)

Full employment refers to a situation in which every able bodied person who is willing to work at the prevailing wage rate, is employed.
In other words full employment means that persons who are willing to work and able to work must have employment or a job;
Keynes defines full employment as the absence of involuntary unemployment.

Which of the following is/are incorrect regarding GDP deflator?
1 GDP deflator is an index of price changes of goods and services included in GDP.
2. It is a price index which is calculated by dividing the real GDP in a given year by the nominal GDP.
Select the answer using the codes below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

Show Answer

Answer: (b)

RBI's Modified Digital Lending Norms will come/have came into effect from?

(A) 1st January 2023
(B) 1st April 2023
(C) 1st December 2022
(D) 31st December 2022

Show Answer

Answer: (c)

The modified guidelines on digital lending by the Reserve Bank of India (RBI) have come into effect from 1st December, 2022.

Its new regulations are based on recommendations from a working group set up in 2021 on Digital lending including lending through online platforms and mobile apps (WGDL).

Consider the following statements:
1 A free trade area is the region encompassing a trade bloc whose member countries have signed a free-trade agreement (FTA).
2. A common market is a group formed by countries within a geographical area to promote duty free trade and free movement of labour and capital among its members.
Select the correct statement(s) using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) None of the above

Show Answer

Answer: (c)

A free trade area is the region encompassing a trade bloc whose member countries have signed a free-trade agreement (FTA). Such agreements involve cooperation between at least two countries to reduce trade barriers. e.g. SAFTA, EFTA.
Common market is established through trade pacts. A group formed by countries within a geographical area to promote duty free trade and free movement of labour and capital among its members. e.g. European Common Market (ECM)

Which of the following statement(s) is/are correct?
1 The word ‘budget’ is said to have its origin from the Italian word “Bougett”.
2. The word “Bougett” refers to ‘a small leather bag’.
Select the answer using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

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Answer: (b)

The word ‘budget’ is said to have its origin from the French word “Bougett” which refers to ‘a small leather bag’.
The budget is an annual financial statement which shows the estimated income and expenditure of the Government for the forthcoming financial year.

Primary deficit is equal to?

(A) Fiscal deficit minus interest payments
(B) Revenue deficit minus interest payments
(C) Fiscal deficit plus interest payments
(D) Revenue deficit plus interest payments

Show Answer

Answer: (a)

Which of the following statement(s) is/are incorrect regarding friendshoring?
1 It is shorthand for the practice of relocating supply chains to countries where the risk of disruption from political chaos is low.
2. It is a part of the deglobalisation process.
Select the answer using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

Show Answer

Answer: (d)

The term, a cousin of “reshoring” and “onshoring” and a sibling to “nearshoring,” is shorthand for the practice of relocating supply chains to countries where the risk of disruption from political chaos is low.

Which of the following statement(s) is/are correct?
1. A tenant farmer is a farmer or farm worker who resides on land owned by a landlord.
2. According to the National Statistical Office, 17.3 percent out of the total estimated 101.98 million operational holdings in rural India were on leased lands.
Select the answer using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

Show Answer

Answer: (c)

According to the National Statistical Office’s (NSO) ‘Situation Assessment of Agricultural Households’ survey for 2018-19, 17.3 percent out of the total estimated 101.98 million operational holdings in rural India were on leased lands.

Which of the following statement(s) is/are incorrect?
1. India’s National Automobile Scrappage Policy was launched in 2022.
2. Most automobiles contain toxic metals such as lead, mercury, cadmium.
Select the answer using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

Show Answer

Answer: (a)

India is estimated to have about 22.5 million end-of-life vehicles by 2025.

Despite being one of the largest car and light commercial vehicle markets in the world, India’s National Automobile Scrappage Policy, launched in 2021, is still in its nascent stages.

In 2021, India reported 4,03,116 crashes, each of which adversely impacted the environment in various ways and in different degrees.

Most vehicles contain toxic metals such as lead, mercury, cadmium or hexavalent chromium, which are detrimental to the environment.