Practice Question and Answer
8 Q: A ‘Transfer Income’ is an–
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6512a0e9af64a2609c621915- 1Income which is not produced by any production processtrue
- 2Income taken away from one person and given over to anotherfalse
- 3Unearned incomefalse
- 4Earned incomefalse
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Answer : 1. "Income which is not produced by any production process"
Explanation :
Income which is not produced by any production process is called transfer income. It is generally money received by an individual or family from the state or other body, often the pension or unemployment benefit.
Q: GDP at factor cost equals–
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651293bb56a7b2508cb4db19- 1GDP – Indirect Tax + Subsidytrue
- 2GNP – depreciationfalse
- 3NNP + depreciationfalse
- 4GDP – subsidy + indirect tax.false
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Answer : 1. "GDP – Indirect Tax + Subsidy"
Q: A rising per Capita Income will indicate a better welfare if it is accompanied by –
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651292f156a7b2508cb4d87c- 1Unchanged Income distribution overall.false
- 2Changed Income distribution in favour of rich.false
- 3Changed Income distribution in favour of poor.true
- 4Changed Income distribution in favour of Industrial Labour.false
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Answer : 3. "Changed Income distribution in favour of poor."
Explanation :
A rising per Capita Income will indicate a better welfare if it is accompanied by changed Income distribution in favour of Poor.
Q: The Effect of ‘Investment Multiplier’ is shows on–
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651291449c491b8125bcbfb3- 1Employmentfalse
- 2Savingsfalse
- 3Incometrue
- 4Consumptionfalse
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Answer : 3. "Income "
Explanation :
Investment multiplier means those elements by which investment is increased and due to increasing of investment. There is increase in income and production. So effect of ‘Investment Multiplier’, according to above options is shown on income
Q: Personal Income produced in a country is not included in–
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6512906b7cef9d502469a1c2- 1Production income from NDPfalse
- 2Net Production Income from foreign.false
- 3Transfer Income from governmentfalse
- 4Current Payment on Foreign loans.true
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Answer : 4. "Current Payment on Foreign loans."
Explanation :
The Current payment on foreign loans are not included in personal Income. In economics, personal income refers to an individual’s total earnings from wages, investment enterprises, and other ventures. It is the sum of all the incomes received by all the individuals or household during a given period.
Q: In which Indian state is the place where the Dandi Salt March took place today?
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64b182d4e154aff53366c415- 1Keralafalse
- 2Kashmirfalse
- 3Gujarattrue
- 4Delhifalse
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Answer : 3. "Gujarat"
Explanation :
1. The place where Dandi Salt March was carried out is today located in Gujarat state of India.
2. This place is on the coast of Arabian Sea near Dandi city.
3. Dandi March lasted from March 12, 1930 to April 6, 1930.
4. This journey was led by Mahatma Gandhi.
5. The purpose of this journey was to protest against the salt monopoly imposed by the British government.
Q: Name the Indian classical dance form which is believed to be revealed by Lord Brahma to Bharata, a famous sage, who then codified this sacred dance in a Sanskrit text called ‘Natya Shastra”.
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64b183cee154aff53366c45d- 1Kathakfalse
- 2Odissifalse
- 3Bharatanatyamtrue
- 4Kathakalifalse
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Answer : 3. "Bharatanatyam "
Explanation :
1. Bharatanatyam is a fully developed dance form in Indian classical dance, which includes dance, music, singing and acting.
He was revealed by Lord Brahma to a famous sage Bharata.
2. Who then codified this sacred dance in a Sanskrit text called Natya Shastra.
3. Bharatanatyam is considered to be the oldest classical dance style of South India.
Q: In India, which of the following is NOT an objective of the National Manufacturing Policy?
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64b1834336fc1bf5764538b0- 1To increase the sectoral share of manufacturing in GOP to at least 25% by 2022.false
- 2To double the exports of manufacturing goods by 2022.true
- 3To increase the rate of job creation so as to create 100 million additional jobs by 2022.false
- 4To enhance global competitiveness, domestic value addition, technological depth and environmental sustainability of growth.false
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Answer : 2. "To double the exports of manufacturing goods by 2022."
Explanation :
In India, the following are the main objectives of the National Manufacturing Policy.
1. To increase the sectoral share of manufacturing in GOP to at least 25% by 2022.
2. To increase the rate of job creation so as to create 100 million additional jobs by 2022.
3. To enhance global competitiveness, domestic value addition, technological depth and environmental sustainability of growth.

