Indian Economy MCQs

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Net worth equals total assets minus total liabilities. It includes properties, financial investments, cash, and all debts. Net worth calculation is used for individuals, companies, and governments to assess overall financial position. The term is commonly used in balance sheets and personal financial statements. As of 2024, net worth remains the primary financial indicator in banking, accounting, and wealth management sectors globally.

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Frictional unemployment is a type of unemployment. It is sometimes called search unemployment and can be based on the circumstances of the individual. It is time spent between jobs when a worker is searching for a job or transitioning from one job to another.

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In the market system or the capitalist system, there is always a risk of overexploitation of workers for the profits of the companies. A profit is the main motive of this type of economy. It also may lead to the overproduction of goods since there are no regulations. This can also be attributed to the fact that the workers have low wages and hence cannot afford to consume all the products that are being manufactured.

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The third Five-year plan was made for the duration of 1961 to 1966. This plan is called ‘Gadgil Yojna’ also. The main target of this plan was to make the country economically independent.

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PM-Kisan Samman Nidhi was launched in February 2019. It provides Rs 6,000 annually in three installments of Rs 2,000 each to all eligible landholding farmer families across India. The Central Government transfers funds directly to Aadhaar-seeded bank accounts of beneficiaries under this scheme via Direct Benefit Transfer. The scheme operates as a central sector initiative.

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Ivory Coast (Côte d'Ivoire) is the world's largest exporter of raw cashew nuts (in-shell). Vietnam, by contrast, is best known as the leading exporter of processed cashew kernels and a major importer of raw cashews for its processing industry.

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Agriculture, livestock, forestry, and fishing contributed approximately 18% to India’s nominal Gross Value Added in 2024. The First Advance Estimates for FY 2025-26 indicate a similar proportion. The share has declined from 52% in 1951 to 16-18% in 2024. The sector employs about 45.5% of India’s workforce.

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The Food Corporation of India historically borrowed from the National Small Savings Fund (NSSF) to finance food subsidy shortfalls. In the Union Budget 2021-22, the Government of India discontinued NSSF loans to FCI for food subsidy. During 2020-21, the government repaid about Rs 1.5 lakh crore of NSSF loans. Since FY22, FCI receives subsidy via direct budget allocations.

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The Indian government allows 100% Foreign Direct Investment (FDI) in contract manufacturing via the automatic route. This was clarified in a 2019 policy update by the Department for Promotion of Industry and Internal Trade. Automatic route means no prior government approval is required for investment. The policy aims to attract greater international manufacturing participation.

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The Capital Goods industry currently contributes around 1.9% to India’s Gross Domestic Product. National Capital Goods Policy 2016 targeted an increase in contribution but latest data confirms the figure at 1.9%. The share of capital goods in manufacturing stood at 12% in 2016, while aims exist to increase this percentage by 2025.