Directions: In the following Indian economy general knowledge MCQs, four answers are given, and only one answer is correct. Read the questions and choose the correct answers. To check the answer, click on the answer button and know the correct answer with an explanation.
1. Disguised unemployment generally means-
A large number of people remain unemployed.
Alternative employment is not available.
The marginal productivity of labour is zero.
The productivity of workers is low.
Answer: (c) The marginal productivity of labour is zero.
Solution: Disguised unemployment is unemployment that does not affect aggregate economic output. It occurs when productivity is low and too many workers are available for jobs. It can refer to any part of the population that is not employed at full capacity.
2. The prices at which the government purchases food grains for maintaining the public distribution system and for building up buffer stock are known as-
Procurement prices.
Issue prices.
Minimum support prices.
Ceiling prices.
Answer: (a) Procurement prices.
Solution: Procurement price is the price at which government procures grains from farmers. The minimum support price is the price that is assured minimum price to the farmers.
3. In the “ Index of Eight Core Industries “, which one of the following is given the highest weightage?
Electricity generation.
Fertilizer production.
Steel production.
Refinery Production.
Answer: (d) Refinery Production.
Solution: Refinery Production comprises 40.27% of the weight of items included in the Index of Industrial Production (IIP). The eight core sector industries in decreasing order of their weightage: Refinery Products> Electricity> Steel> Coal> Crude Oil> Natural Gas> Cement> Fertilizers.
4. Which of the following brings out the ‘Consumer Price Index Number for Industrial Workers?
Reserve Bank of India.
Labour Bureau.
The Department of Personnel and Training.
Department of Economic affairs.
Answer: (b) Labour Bureau.
Solution: The Labour Bureau, an attached office of the Ministry of Labour & Employment, has been compiling Consumer Price Index for Industrial Workers every month, on the basis of retail prices collected from 317 markets, spread over 88 industrially important centres in the country.
5. There was no independent development of industries in India during British rule because of the-
Scarcity of foreign capital.
Scarcity of natural resources.
Preference of the rich to invest in land.
Absence of heavy industries.
Answer: (c) Preference of the rich to invest in land.
Solution: During the British period, the land owners or Zamindars, who mostly formed the capitalist class, and were not so much aware of modern economics, preferred investment in land.