Indian Economy Mixed Practice — MCQs with Answers (Set 8)

Government data from 2019-20 (Economic Survey 2021-22) put close to 82% of India’s workforce in the unorganised sector, with agriculture alone employing about 45% of all workers.

TISCO began as a private company, as the Tata Steel centenary release describes it. Reliance Industries is also privately owned. Public-sector units are owned by the government.

The organised sector’s protections come from the Factories Act, Minimum Wages Act, Payment of Gratuity Act, and Shops and Establishments Act. MGNREGA 2005 is a separate rural employment-guarantee law, not an organised-sector working-conditions law.

The organised/unorganised split is based on employment conditions — whether work is registered, regular, and protected by law — not on what is produced (that’s the primary/secondary/tertiary split) or who owns the assets (that’s public/private).

PRASHAD, run by the Ministry of Tourism, gives 100 per cent central funding to states and UTs for developing pilgrimage and heritage site infrastructure. This covers sanitation, drinking water, lighting, parking, and beautification at destinations like Varanasi, Amritsar, and Ajmer, now spanning 41 sites across 25 states. This is why development of tourism infrastructure in States and Union Territories is the correct answer.

The answer is Deputy Governor, Reserve Bank of India, a post Urjit Patel held before being elevated to RBI Governor in September 2016.

The answer is Shri Arbind Modi, a CBDT Member, who was named convenor of the task force to draft a new Direct Tax Law.

The answer is 1, 2 and 3. The 2017-18 Budget introduced all three reforms: an earlier presentation date, merging the Railway Budget into the General Budget, and scrapping the plan/non-plan expenditure split.

The answer is 1-2-4-3. The budget is presented, scrutinised by departmental committees, followed by the Appropriation Bill (authorising withdrawals) and then the Finance Bill (giving effect to tax proposals).

The answer is none of the above. All three definitions are reversed: the rule of lapse means unspent grants CANNOT be carried forward, a supplementary grant is additional funding granted DURING the year (not an advance), and a vote on account is the advance grant to run government before the budget passes.

The answer is Dena Bank, placed under RBI’s Prompt Corrective Action framework in May 2018 due to high non-performing assets.

The answer is LPG consumers. PAHAL directly credits LPG subsidy into beneficiaries’ bank accounts, cutting out leakages in the old subsidy system.

The answer is the Market/Price Mechanism. Adam Smith described how self-interested individual choices in a free market are guided, as if by an invisible hand, toward outcomes that benefit society overall.

The answer is 1, 2 and 4. Wheat, paddy, and sugar are all food items tracked for food inflation; tobacco falls under a separate ‘pan, tobacco and intoxicants’ category.

The answer is Goods and Services Tax, the single largest source within India’s Gross Tax Revenue in that budget estimate.

This Inter-Disciplinary Committee was constituted on 15 March 2017 by the Department of Economic Affairs, Ministry of Finance. It was chaired by Dinesh Sharma, Special Secretary in that department, with members from the RBI, tax authorities, and other agencies. The committee studied global rules on virtual currencies and submitted its report in August 2017.

The answer is more fixed capital per worker. Capital deepening raises the capital-to-labour ratio, unlike capital widening, which just adds more workers at the same ratio.

The answer is purely temporary in nature. Classical economists held that flexible wages and prices self-correct any deviation, returning the economy to full employment.

The answer is a panic situation of mass withdrawals. A bank run happens when depositors, fearing insolvency, rush to pull out their cash all at once.

The correct answer is K. P. Krishnan. His committee, constituted by the IFSCA, recommended introducing Variable Capital Companies in India’s International Financial Services Centre, submitting its report in 2021.

The answer is organized and unorganized sectors. This classification is based on employment conditions like job security, regulation, and benefits.

In the low stationary stage, both birth and death rates are low. The population becomes stable.

In the early expanding stage, death rates fall while birth rates stay high.

The answer is 2011-12. India’s GDP series was rebased from 2004-05 to 2011-12 as the new reference year.