Indian Economy MCQs

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First option is the correct answer
Countervailing duty is a tariff imposed on imported goods to offset the subsidies offered by the exporting country to its producers. It is imposed to provide level playing field to domestic producers and foreign producers.

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The Financial Action Task Force is an intergovernmental body established in 1989 at the G7 Summit in Paris. FATF sets international standards to prevent money laundering and terrorist financing. The organization developed 40 Recommendations as technical standards. It conducts mutual evaluations of members. FATF monitors risks and trends in global money laundering and terrorist financing.

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In the calculation of national income, the value of old goods sold is not included. National income accounting typically focuses on the value of goods and services produced within a specific period, usually a year. It includes the production of new goods and the provision of services. However, the resale of old goods does not contribute to the current production of goods and services and therefore is not counted. Additionally, non-market services such as the services of a housewife, which are not paid for in the market, are also not included in the national income calculations. This exclusion is due to the difficulty in accurately measuring the economic value of such non-market services.

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Bharat Electronics Limited is classified as a Navratna company. Maharatna scheme was introduced in 2010. As of 2026, there are 14 Maharatna companies including Coal India Limited, Steel Authority of India Limited, and Hindustan Aeronautics Limited. Hindustan Aeronautics Limited received Maharatna status in October 2024. Bharat Electronics Limited has not been granted Maharatna status.

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Everlasting capital stock does not lose value or efficiency, so the depreciation rate is zero as no part decreases in utility or worth over time.

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Joan Robinson, a British economist, published “The Economics of Imperfect Competition” in 1933. The book introduced the concept of imperfect competition and analyzed distribution, allocation, and exploitation, marking a significant contribution to microeconomic theory.

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Amartya Sen, noted Nobel Laureate, has developed an index known as Sen Index to estimate the poverty.
The Global Multidimensional Poverty Index (MPI) was developed in 2010 by the Oxford Poverty & Human Development Initiative (OPHI) and the United Nations Development Programme and uses health, education, and standard of living indicators to determine the degree of poverty experienced by a population.
The poverty gap index is a measure of the intensity of poverty.

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In a mixed economy both private and public sector are the players. The trade in this type is opened only to a certain extent but not completely as trade restrictions exist. This is because the government has the social obligation to fulfil.

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The minimum support price is announced by the government of India on the recommendation of the Commission for agricultural costs and prices at the beginning of the sowing season for certain crops.

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Agroforestry is a land use management system in which trees or shrubs are grown around or among crops or pastureland. This intentional combination of agriculture and forestry has varied benefits, including increased biodiversity and reduced erosion.