Indian Economy MCQs

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Price elasticity of demand measures consumer response to price changes. If consumers are relatively sensitive to price changes, demand is elastic; if they are relatively unresponsive to price changes, demand is inelastic. When the demand for a commodity is perfectly elastic, the quantity of demand keeps changing with the price. So the coefficient of price elasticity of demand is infinity.

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There is a close relationship between marginal product and average product as both are derived from total product. When marginal product is equal to average product, average product is at its maximum.

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A progressive tax rate increases as the taxable amount increases. The term “progressive” refers to the way in which the tax rate moves from low to high. As a result, the taxpayer’s average tax rate is lower than the individual’s marginal tax rate.

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The National Heritage City Development and Augmentation Scheme (HRIDAY) was launched on 21 January 2015 with an objective to bring together urban planning, economic development and heritage conservation in an inclusive manner to preserve the heritage character of each heritage city.

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Bank Rate refers to the official interest rate at which RBI will provide loans to the banking system which includes commercial/cooperative banks, development banks etc. Such loans are given out either by direct lending or by rediscounting (buying back) the bills of commercial banks and treasury bills. Thus, bank rate is also known as discount rate.

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Currency pegging is the idea of ​​fixing the exchange rate of one currency to the value of another single currency or a basket of other currencies, or by matching it to another measure of value, such as gold or silver. A fixed exchange rate is usually used to stabilize the value of a currency, in relation to the currency or other value for which it is pegged.

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Liberalization in India began in 1991 through economic reforms. GDP increased from 270 billion in 1991 to 2.87 trillion in 2019. Trade barriers and export subsidies have been reduced since the 1990s. Foreign direct investment flows increased post-1991. Services such as IT and business process outsourcing expanded significantly after globalization. Indian exports and imports grew rapidly between 1991 and 2019.

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Ministry of Tourism, in association with the United Environment Program (UNEP) and Responsible Tourism Society of India (RTSOI) organised the ‘National summit on developing sustainable and responsible tourist destinations’ in New Delhi.
On this occasion, the Ministry of Tourism launched the national strategy for sustainable tourism and the responsible traveller campaign.

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Economies typically witness workforce migration from agriculture to industry, then from industry to services. This pattern was observed in the United Kingdom during the 19th century, the United States in the early 20th century, and is ongoing in China since the 1980s. The National Statistical Office of India shows the agricultural workforce declining steadily, with services now the largest sector by employment share as of 2023.

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The Brundtland Report was published in 1987 by the World Commission on Environment and Development chaired by Gro Harlem Brundtland. It defined sustainable development as development meeting present needs without compromising future generations’ needs. The report linked economic development and environmental protection. It influenced global policy and led to the 1992 Earth Summit and Agenda 21.