Tag: economics of development and planning

Questions Related to economics of development and planning

'Economics is what Economists do' is given by _____________.

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. Jacob Viner

  2. Henry Smith

  3. Pigou

  4. Paul A. Samuelson

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Correct Option: A
Explanation:

Jacob Viner defined Economics as  'Economics in what Economists do'.

Oikonomia means ______________.

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. industry

  2. household

  3. services

  4. none of these

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Correct Option: B
Explanation:

"Oikonomia" is a Latin word which means household as it is related to the financial management of  household activities through which the concept of economics was derived. 

The term 'Economics' owes its origin to the Greek word ___________.

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. Aikonomia

  2. Wikonomia

  3. Oikonomia

  4. None of the above

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Correct Option: C
Explanation:

The term 'Economics' owes its origin to the Greek work 'Oiknonomiia' means 'household'.

In the pre-reforms period (i.e. before 1991), restrictions on import consisted of:

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. Import Licenses

  2. Quantitative Restrictions

  3. Quota System

  4. All of the above

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Correct Option: D
Explanation:

India had  adopted socialist form of economy before 1991 which involved a lot of government intervention into International trade where import was banned on most of the goods through quota and licenses so that the foreign goods does not dominate domestic market. 

In the pre-reforms period (i.e. before 1991), Import of food grains was permitted ______________.

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. In order to meet domestic demand in case of shortage of foodgrains

  2. To help Indians consume nutritious food

  3. Whenever there was a favourable Balance of Trade

  4. All of the above

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Correct Option: A
Explanation:

In the pre-reforms period (i.e. before 1991), Import of food grains was permitted in order to meet domestic demand in case  of shortage of foodgrains. Demand for food grains by the nation used to fall short in the pre-reform period, hence to  cope up with the shortage of food grains, import was done from the foreign countries.

In the pre-reforms period (i.e. before 1991), banking scene was dominated by the __________ sector.

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. private

  2. public

  3. both (a) and (b)

  4. neither (a) nor (b)

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Correct Option: B
Explanation:

India adopted the socialist form of economy prior to 1991 which involved a lot of government intervention in all the sectors including banking sector which made Indian economy a little conservative compared to other economic structures prevalent then. But after 1991, the government disinvested all its share from most of the sectors including banking sector which brought privatization in banking sector where public sector used to dominate prior to 1991.

Which one of the following taxes belong exclusively to the State Governments?

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. Income Tax

  2. Agricultural Tax

  3. Excise Tax

  4. Wealth Tax

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Correct Option: B
Explanation:

Agricultural tax belong exclusively to the State Governments. This means that tax from agricultural sector or primary sector of the economy is collected only by the state government. Central government has no authority of collecting agricultural tax.

Which of the following is an objective of VAT?

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. To avoid double taxation effect or cascading effect

  2. To promote cost-efficiency, by permitting credit on inputs

  3. To ensure equitable distribution of tax impact amongst Dealers

  4. All of the above

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Correct Option: D
Explanation:
VAT stands for Value Added Tax. Enactment of VAT on goods has certain objectives:
a) To avoid double taxation effect or cascading effect
b) To promote cost-efficiency, by permitting credit on inputs
c) To ensure equitable distribution of tax impact amongst Dealers

Which of the following is not true about the pre-reforms period (i.e. before 1991)?

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. Shortage of Foreign Exchange

  2. Heavy Government Borrowings

  3. Huge Losses of Public Sector Enterprises

  4. Surplus Budget in each financial year

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Correct Option: D
Explanation:

In pre-reform period, that is, before the year of 1991, Surplus Budget in each financial year. Surplus Budget in each financial year introduced after the year of 1991. Budget can be defined as a statement of receipts and expenditure of an economy.

Which of the following does not relate to the Banking Sector Reforms in 1991?

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. Introduction of Derivative Products

  2. Restriction of credit for purchase of consumer durables

  3. Liberalisation of principles governing Dividend Payments

  4. Emphasis on transparency

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Correct Option: B
Explanation:

Prior to 1991, credit purchases was not allowed in the consumer market but after the coming of new economic policies credit purchase on consumer durables were allowed as there was high competition in the market after the coming of foreign merchandise.