Indian Economy MCQs

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

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Parliament decides the allocation of tax shares between Union and States as per Articles 270 and 272 of the Constitution. Parliament enacts laws based on recommendations from the Finance Commission, such as the 16th Finance Commission’s recommendation of a 41% share to States for 2026–31. The Ministry of Finance implements these decisions after they are legislated by Parliament.

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The Agreement on the Application of Sanitary and Phytosanitary Measures – also known as the SPS Agreement is an international treaty of the World Trade Organization. It was negotiated during the Uruguay Round of the General Agreement on Tariffs and Trade, and entered into force with the establishment of the WTO at the beginning of 1995. Under the SPS agreement, the WTO sets constraints on member-states’ policies relating to food safety (bacterial contaminants, pesticides, inspection and labeling) as well as animal and plant health (phytosanitation) with respect to imported pests and diseases. The SPS agreement is closely linked to the Agreement on Technical Barriers to Trade, which was signed in the same year and has similar goals.

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Arbitrage is the process of simultaneous buying and selling of an asset from different platforms, exchanges or locations to cash in on the price difference. While getting into an arbitrage trade, the quantity of the underlying asset bought and sold should be the same. Only the price difference is captured as the net pay-off from the trade.

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The World Economic Forum publishes the Inclusive Growth and Development Report. The Inclusive Development Index was introduced with this report in 2017. The report evaluates economies using parameters like education, employment, labor compensation, and social protection. The World Economic Forum is headquartered in Geneva, Switzerland, and began the series under its System Initiative on Economic Growth and Social Inclusion.

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The Indira Gandhi Canal is the longest irrigation canal of India. It starts from the Harike Barrage at Harike, a few kilometers below the confluence of the Satluj and Beas rivers in the Indian state of Punjab and terminates in irrigation facilities in the Thar Desert in the north west of Rajasthan state.

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Appropriate technology refers to methods or tools that are affordable, locally adaptable, and suited to the community’s needs. Iron ploughs replace less durable wooden ones, improving productivity and lifespan without requiring advanced infrastructure. The shift increases agricultural efficiency in areas with limited resources. This practice matches the concept of appropriate technology in rural agricultural settings.

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NITI Aayog consists of a number of specialized wings such as the research wing, the consultancy wing, the team India wing. NITI Aayog functions in close cooperation, consultation and coordination with the Ministries of the Central Government, and State Governments of India.

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Dadabhai Naoroji prepared the first estimates of National income in 1876. He estimated the national income by first estimating the value of agricultural production and then adding a certain percentage as non-agricultural production.

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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.