Practice Quiz :- 15

1. The term mixed economy denoted existence of both
(a) rural and urban sectors
(b) private and public sector
(c) heavy and small industry
(d) developed and under developed sectors

Ans.(b) private and public sector

2. In an economy, the sectors are classified into public and private on the basis of
(a) employment condition
(b) nature of economic activities
(c) ownership of enterprises
(d) use of raw materials

Ans.(c) ownership of enterprises

3. Which sector of Indian Economy has shown remarkable expansion during the last decade?
(a) Primary sector
(b) Secondary sector
(c) Tertiary sector
(d) Mining sector

Ans.(c) Tertiary sector

4. When developed in economy takes place, the share of tertiary sector in National income
(a) first falls and then rises
(b) first rises and then falls
(c) keeps on increasing
(d) remains constant

Ans.(c) keeps on increasing

5. If it will be true to classify India as
(a) a food-deficit economy
(b) a labour-surplus economy
(c) a trade-surplus economy
(d) a capital-surplus economy

Ans.(b) a labour-surplus economy

6. The Indian Economy is characterised by
(a) pre-dominance of agriculture
(b) low per capita income
(c) massive unemployment
(d) all of the above

Ans.(d) all of the above

7. In India, planned economy is based on
(a) Gandhian system
(b) Socialist system
(c) Capitalist system
(d) Mixed economy system

Ans.(b) Socialist system

8. Economic liberalisation in India started with
(a) substantial changes in Industrial licensing policy
(b) the convertibility of Indian rupee
(c) doing away with procedural formalities for foreign direct investment
(d) significant reduction in tax rates

Ans.(a) substantial changes in Industrial licensing policy

9. A firm sells shares worth 1000 direct to individuals. This transaction will cause
(a) GNP to rise by 1000
(b) GDP to rise by 1000
(c) National Income to rise by 1000
(d) No impact on Gross National product

Ans.(d) No impact on Gross National product

10. Which is not included in the private income arising in a country?
(a) Factor income from net domestic product
(b) Net factor income from abroad
(c) Current transfers from Government
(d) Current payments on foreign loans

Ans.(d) Current payments on foreign loans