Indian Economy MCQs

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The Competition Commission of India (CCI) was set up to replace the anachronistic Monopolies and Restrictive Trade Practices Commission (MRTPC). It was established to eliminate practices that adversely affect competition in different industries/areas and protect interests of consumers and ensure freedom of trade. The Competition Act of 2002 called for the creation of CCI. However, it was established in 2003 and became fully functional only by 2009. The CCI is a quasi-judicial body which gives opinions to statutory authorities and also deals with other cases. It has one chairman and six members. It is the youngest and the only cross-sector regulator in India.

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State Development Loans are debt instruments issued by state governments in India. The Reserve Bank of India acts as the agent for all state governments in managing and coordinating the auction and sale of SDLs. RBI notifies the details and conducts the actual sale process via electronic platforms regulated by it, ensuring efficient borrowing for states.

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Penny stocks are shares of small companies usually trading below $5 per share. These stocks have low liquidity and high volatility and generally trade on over-the-counter (OTC) markets. Penny stocks are not listed on major exchanges. Regulatory oversight for penny stocks is reduced compared to larger stocks. Most penny stocks have limited trading volume and minimal analyst coverage.

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Unified Package Insurance Scheme aims at providing financial protection to citizens associated in agriculture sector, thereby ensuring food security, crop diversification and enhancing growth and competitiveness of agriculture sector besides protecting farmers from financial risks. The cover will be for one full year except for Crop Insurance (which will be bi-annual separately for Kharif and Rabi seasons) renewable from year to year.

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Impetus to direct tax reforms in India, came with the recommendations of the Task Force on Direct & Indirect Taxes under the chairmanship of Vijay Kelkar in 2002. The main recommendations of this task force related to the direct taxes related to increasing the income tax exemption limit, rationalization of exemptions, abolition of long term capital gains tax, abolition of wealth tax etc.

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Land ceiling implies settling maximum size of land holding that an individual/family can own. Land over and above the ceiling limit, called surplus land. This surplus land is handed over to landless laborers without any fair compensation.

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The variable reserve ratio device springs from the fact that the central bank, in its capacity as Bankers Bank, must hold a part of the cash reserves of commercial banks. The customary minimum cash reserve ratio is an important limitation on the lending capacity of banks.

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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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Well educated and immense human resources, Fluency in English and availability of cheap labour are other reasons for rapid growth of service sector in the country. On the other hand low growth in Secondary sector can be attributed to various reasons like rigid laws, restriction of FDI etc.

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The Rolling Plan for backward countries was suggested by Gunnar Myrdal. The rolling plan consists of three different steps, First, a plan for the current year which includes the annual budget. Second, a plan fixed for a fixed number of years, say three-four or five years. As per the requirement of the economy, it is revised every year. Third a perspective plan for 10, 15, or 20 years.