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Role of Government Policy in Economic Development

Description: This quiz assesses your understanding of the role of government policy in economic development, focusing on the Indian context.
Number of Questions: 15
Created by:
Tags: economic development government policy indian economy
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Which of the following is NOT a primary objective of government policy in economic development?

  1. Promoting economic growth

  2. Reducing income inequality

  3. Improving infrastructure

  4. Protecting the environment


Correct Option: D
Explanation:

While environmental protection is important, it is not a primary objective of government policy in economic development. The primary objectives are typically economic growth, reducing income inequality, and improving infrastructure.

What is the main purpose of the Five-Year Plans in India?

  1. To achieve rapid economic growth

  2. To promote social justice and equality

  3. To develop the agricultural sector

  4. To improve the infrastructure


Correct Option: A
Explanation:

The Five-Year Plans in India are designed to achieve rapid economic growth by setting specific targets for various sectors of the economy.

Which of the following is NOT a component of India's Industrial Policy?

  1. Promoting foreign direct investment

  2. Providing subsidies to domestic industries

  3. Encouraging the development of small and medium enterprises

  4. Imposing tariffs on imported goods


Correct Option: D
Explanation:

Imposing tariffs on imported goods is not a component of India's Industrial Policy. Instead, the policy focuses on promoting foreign direct investment, providing subsidies to domestic industries, and encouraging the development of small and medium enterprises.

What is the primary objective of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)?

  1. To provide employment opportunities in rural areas

  2. To improve agricultural productivity

  3. To promote rural infrastructure development

  4. To reduce poverty


Correct Option: A
Explanation:

The primary objective of the MGNREGS is to provide employment opportunities in rural areas, thereby reducing poverty and improving the standard of living of rural households.

Which of the following is NOT a component of India's Agricultural Policy?

  1. Providing subsidies to farmers

  2. Promoting crop diversification

  3. Improving irrigation facilities

  4. Imposing tariffs on imported agricultural products


Correct Option: D
Explanation:

Imposing tariffs on imported agricultural products is not a component of India's Agricultural Policy. Instead, the policy focuses on providing subsidies to farmers, promoting crop diversification, and improving irrigation facilities.

What is the main purpose of the Public Distribution System (PDS) in India?

  1. To provide subsidized food grains to the poor

  2. To promote agricultural production

  3. To stabilize food prices

  4. To improve the nutritional status of the population


Correct Option: A
Explanation:

The main purpose of the PDS is to provide subsidized food grains to the poor, thereby ensuring food security and improving their nutritional status.

Which of the following is NOT a component of India's Infrastructure Policy?

  1. Developing transportation networks

  2. Improving energy infrastructure

  3. Promoting digital connectivity

  4. Imposing tariffs on imported infrastructure equipment


Correct Option: D
Explanation:

Imposing tariffs on imported infrastructure equipment is not a component of India's Infrastructure Policy. Instead, the policy focuses on developing transportation networks, improving energy infrastructure, and promoting digital connectivity.

What is the primary objective of the Make in India initiative?

  1. To promote foreign direct investment in India

  2. To increase exports from India

  3. To create jobs in India

  4. To improve the quality of products manufactured in India


Correct Option: C
Explanation:

The primary objective of the Make in India initiative is to create jobs in India by attracting foreign direct investment and promoting domestic manufacturing.

Which of the following is NOT a component of India's Foreign Trade Policy?

  1. Promoting exports

  2. Reducing import tariffs

  3. Providing subsidies to exporters

  4. Imposing quotas on imported goods


Correct Option: D
Explanation:

Imposing quotas on imported goods is not a component of India's Foreign Trade Policy. Instead, the policy focuses on promoting exports, reducing import tariffs, and providing subsidies to exporters.

What is the main purpose of the Goods and Services Tax (GST) in India?

  1. To simplify the tax system

  2. To reduce the tax burden on businesses

  3. To increase government revenue

  4. To promote economic growth


Correct Option: A
Explanation:

The main purpose of the GST is to simplify the tax system in India by replacing multiple indirect taxes with a single tax.

Which of the following is NOT a component of India's Monetary Policy?

  1. Setting interest rates

  2. Controlling inflation

  3. Managing the exchange rate

  4. Imposing capital controls


Correct Option: D
Explanation:

Imposing capital controls is not a component of India's Monetary Policy. Instead, the policy focuses on setting interest rates, controlling inflation, and managing the exchange rate.

What is the primary objective of the Reserve Bank of India (RBI)?

  1. To regulate the banking system

  2. To manage the country's foreign exchange reserves

  3. To promote economic growth

  4. To control inflation


Correct Option: A
Explanation:

The primary objective of the RBI is to regulate the banking system in India, ensuring its stability and soundness.

Which of the following is NOT a component of India's Fiscal Policy?

  1. Government spending

  2. Taxation

  3. Borrowing

  4. Imposing tariffs on imported goods


Correct Option: D
Explanation:

Imposing tariffs on imported goods is not a component of India's Fiscal Policy. Instead, the policy focuses on government spending, taxation, and borrowing.

What is the main purpose of the Union Budget in India?

  1. To present the government's financial statement

  2. To allocate funds to various sectors of the economy

  3. To impose taxes

  4. To promote economic growth


Correct Option: A
Explanation:

The main purpose of the Union Budget is to present the government's financial statement, which includes its revenue and expenditure estimates for the upcoming fiscal year.

Which of the following is NOT a component of India's Industrial Policy?

  1. Promoting foreign direct investment

  2. Providing subsidies to domestic industries

  3. Encouraging the development of small and medium enterprises

  4. Imposing quotas on imported goods


Correct Option: D
Explanation:

Imposing quotas on imported goods is not a component of India's Industrial Policy. Instead, the policy focuses on promoting foreign direct investment, providing subsidies to domestic industries, and encouraging the development of small and medium enterprises.

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