Indian Economy MCQs

Notes:
It is a much traded Cotton variety. Some other varieties are:

• Suvin – Known for its long staple length and premium quality, it is a hybrid of Egyptian and Indian cotton.
• DCH-32 – A hybrid cotton known for its extra-long staple.
• Bunny – A high-yielding variety of cotton.
• Jaydhar – An indigenous variety grown mainly in Maharashtra.
• LH-1556 – A hybrid variety, often grown in Northern India.
• Varalaxmi – A hybrid variety popular in South India.
• Shankar-4 – Similar to Shankar-6, this variety is also known for its medium staple cotton.
• Mech-184 – A genetically modified (Bt) cotton variety.

Notes:
When the economy is working under conditions of less than full employment, the GDP gap is positive and the economy operates at less than potential. At this point, an increase in expenditure would result in an increase in a country’s real GNP.

Notes:
Gresham’s law, enunciated by Sir Thomas Gresham, states that inferior currency (bad money) in circulation displaces valuable or superior currency (good money) if both are accepted at same face value, as people hoard the good currency and spend the bad.

Notes:
The secondary market is for trading securities that have already been issued. Transactions involve investors buying and selling among themselves. The issuing company does not receive any funds from these trades. Major examples include stock exchanges like NYSE and NASDAQ. The market provides liquidity and facilitates price discovery for already existing securities including shares, bonds, and debentures.

Notes:
Kerala produces approximately 78% of India’s natural rubber. Major rubber plantations in Kerala span around 400,000 hectares. The state’s tropical climate supports high rubber yield. Kerala has historically led rubber production in India, a trend continuing since the late 20th century. Plantation development began under British colonial rule in the early 1900s. Thrissur, Kottayam, and Pathanamthitta are key rubber-producing districts.

Notes:
The Khadi and Village Industries Commission is a statutory body formed in April 1957 by the Government of India, under the Act of Parliament, ‘Khadi and Village Industries Commission Act of 1956’. It was second five year plan period then.

Notes:
Transfer pricing refers to pricing of transactions between associated enterprises, specified in Section 92 of the Income Tax Act, 1961. India implemented transfer pricing provisions in 2001 to prevent shifting profits to low-tax jurisdictions by related parties. The law requires use of the arm’s length principle for cross-border and certain domestic transactions between related parties.

Notes:
NLCPR The broad objective of the Non-Lapsable Central Pool of Resources (NLCPR) is to ensure speedy development of infrastructure in the North Eastern Region and Sikkim by increasing the flow of budgetary financing for specific viable infrastructure projects/schemes in the region. The provision is for funding these projects. The outlay includes a provision of Rs. 50 crore for funding special projects/schemes for the economic development of the Karbi Anglong Autonomous Territorial Council (KAATC) area in Assam.

Notes:
First statement is incorrect. The “Adopt a Heritage Scheme” is an initiative under Ministry of Tourism. Second statement is correct. Under this scheme, the government has appointed private as well as public companies as “Monument Mitras” for making heritage tourism more sustainable through conservation and development. The short-listed companies, to be called Monument Mitras, are from various sectors such as hospitality, travel, and banking.

Notes:
Traditional film photography was popular throughout the 20th century before digital photography emerged. Digital cameras became widely available in the late 1990s. Global sales of film cameras dropped substantially after 2000. Companies like Kodak, once leading film producers, filed for bankruptcy in 2012. The industry decline is linked to the mass adoption of digital imaging technology worldwide.