Indian Economy MCQs

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NHPC Limited received Miniratna Category I status in 2008. On August 30, 2024, the Department of Public Enterprise, Ministry of Finance, granted Navratna status to NHPC. Navratna status provides select central public sector enterprises enhanced financial and operational autonomy. As of August 2024, NHPC’s highest classification is Navratna status.

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A form of market in which a large number of buyers and sellers compete with each other in the purchase and sale of goods respectively is called perfect competition, and no individual buyer or seller has any influence on price and output. Each firm’s output is an ideal substitute for the other firms’ output, so the demand for each firm’s output is perfectly elastic.

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In McConnell’s words, demand for the factors of production is a derived demand derived from the finished goods and services that resources help in production. Whereas demand for a commodity is direct demand, demand for factors is derived demand. It is based on the productivity of the factors.

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The Alagh Committee in 1979 set poverty lines based on daily calorie intake. The Tendulkar Committee in 2009 recommended including health and education expenditures. The National Multidimensional Poverty Index by NITI Aayog uses 12 indicators including health, education, and living standards. The shift reflects a move from calorie-based to multidimensional poverty measurement in India.

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Rostow’s ‘Take-off stage’ describes a period when the economy shifts to rapid industrialization and self-sustaining growth. Productive investment rises to over 20% of national income. Key industries such as manufacturing or energy grow rapidly. Economic momentum becomes automatic, and the stage typically lasts 20-30 years. Urbanization and improved living standards occur during this stage.

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Dadabhai Naoroji prepared the first estimate of national income in 1876. He estimated national income by first estimating the value of agricultural output and then adding a certain percentage of non-agricultural production. In 1931, Dr V.K.R.V. was the first person to adopt the scientific process in the estimation of national income.

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Gross National Product (GNP) can be defined as an economic statistic which includes Gross Domestic Product, plus any income earned by the residents from investments made overseas. Net factor income from abroad = income earned in foreign countries by the residents of a country – income earned by nonresidents in that country.

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In, 1991, the Government set up the Tax Reforms Committee under the Chairmanship of renowned economist Raja J. Chelliah to examine the then tax structure of the country and suggest appropriate changes therein. In its report submitted to the Government in January 1993, the committee recommended the simplification of tax rates, allowing few exemptions or deductions. Raja Chelliah is known as the Father of India’s tax reforms.

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Chittorgarh has several large cement plants, including those run by UltraTech, Birla, and Wonder Cement. The district contains extensive limestone reserves, a key raw material for cement. Chittorgarh is among the top cement-producing districts in India. The Rajasthan government records show concentrated cement industry investments in this district due to raw material availability and infrastructure.

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Catalytic cracking uses a catalyst and heat to break large hydrocarbon molecules into smaller fractions such as gasoline and LPG. Fluid catalytic cracking units were introduced in 1942. Most refineries worldwide use this process to increase production of lighter, high-value fuels. Catalytic cracking increases gasoline yield compared to thermal processes. It also produces valuable by-products like propylene for the petrochemical industry.