Question : What was the impact of the expansion of the state sector on India's fiscal deficit during the initial Five-year Plans?
Option 1: It led to a significant reduction in the fiscal deficit.
Option 2: It had no impact on the fiscal deficit.
Option 3: It contributed to an increase in the fiscal deficit.
Option 4: It resulted in a balanced budget.
Correct Answer: It contributed to an increase in the fiscal deficit.
Solution : The expansion of the state sector during the initial Five-year Plans contributed to an increase in India's fiscal deficit, as the government's expenditure on public sector enterprises and infrastructure projects exceeded its revenues.
Question : How did the expansion of the state sector during the Five-year Plans impact the Indian economy?
Option 1: It led to a decrease in public sector employment.
Option 2: It resulted in increased foreign investment.
Option 3: It contributed to the growth of the public sector and infrastructure development.
Option 4: It caused a significant decline in GDP growth.
Question : What was the impact of the expansion of the state sector on private sector development during the initial Five-year Plans?
Option 1: It fostered healthy competition.
Option 2: It provided support through subsidies.
Option 3: It led to a crowding out of private investment.
Option 4: It encouraged joint ventures with foreign companies.
Question : What is the difference between a balanced budget and a deficit budget?
Option 1: A balanced budget spends as much as it earns, while a deficit budget spends more than it earns
Option 2: A balanced budget earns as much as it spends, while a deficit budget spends more than it earns
Option 3: A balanced budget spends more than it earns, while a deficit budget earns more than it spends
Option 4: A balanced budget earns more than it spends, while a deficit budget spends as much as it earns
Question : What impact did the expansion of the state sector have on private enterprises during the initial Five-year Plans?
Option 1: Encouraged private investment
Option 2: Led to privatization of industries
Option 3: Restricted the growth of private enterprises
Option 4: Promoted foreign collaborations
Question : How did the expansion of the state sector during the Five-year Plans impact India's balance of payments?
Option 1: It improved the balance of payments.
Option 2: It had no significant impact.
Option 3: It worsened the balance of payments.
Option 4: It stabilized the balance of payments.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile