Eco 3 Flashcards

Question

Who among the following formulated the 'Gandhian Plan

Answer 1

Sriman Narayan Agarwa

Answer 2

The Chota Nagpur Plateau is a plateau in eastern India, which covers much of Jharkhand state as well as adjacent parts of Bihar, Odisha, West Bengal and Chhattisgarh. Ranchi is one of the major industrial cities of Eastern India and located in the region called ‘Ruhr of India’ (Chota Nagpur) making it an ideal place for mineral based industries,where mainly HEC (Heavy Engineering Corporation), Steel Authority of India, MECON etc. have factories

Answer 3

The steps generally taken by the RBI to tackle inflation include a rise in Bank Rate and Repo Rate (the rates at which banks borrow from the RBI), a rise in Cash Reserve Ratio (CRR) and/or Statutory Liquidity Ratio (SLR) and a reduction in rate of interest on cash deposited by banks with RBI. These steps have been taken as monetary instruments by the RBI to control the credit creation and reduce the money supply in the economy in order to tackle the inflation.

Answer 4

The ‘World Economic Outlook’ is published by International Monetary Fund (IMF). It is usually published twice and partly updated 2 times a year. ‘Human Development Report’ is published by UNDP and ‘World Development Report’ is published by the World Bank, while ‘Global Competitiveness Report' is released by the World Economic Forum.

Answer 5

Ans. (c) Correct matching of the lists are as follows : Singrauli (Madhya Pradesh) – Coal Kajarhat (Uttar Pradesh) – Cement Koyali (Gujarat) – Oil Anand (Gujarat) – Milk

Answer 6

Rationing of credit

Answer 7

Workers' participation in management refers to the participation of non-managerial employees in the decisionmaking process of the organization. Workers' participation gives employees the mental and psychological satisfaction and thereby increase their involvement in the affairs of the organization. Workers' participation in management is the most accepted principle of industrial relations in modern industry throughout the world and in India too. In the words of Keith Davis “Participation is a mental and emotional involvement of a person in a group situation which encourages to contribute to group goals or objectives and share responsibilities.”

Answer 8

Organizations Headquarters Asian Development Bank - Manila, Philippines Asia-Pacific Economic Cooperation - Singapore Association of South-East Asian - Jakarta, Indonesia Nations

Answer 9

The correctly matched lists are as follows : Sarva Shiksha Abhiyan – 2001 Sakshar Bharat Mission – 2009 Operation Black Board – 1987 National Literacy Mission – 1988

Answer 10

11th Five Year Plan, highest allocation had been made for social services followed by the energy secto

Answer 11

Adam Smith is the author of the book 'An inquiry into the Nature and Causes of the Wealth of Nations' (1776). It is a fundamental book on Classical Economics

Answer 12

The department of Economic affairs of Ministry of Finance is the nodal agency of the Union government to formulate and monitor country's economic policies and programmes. A principal responsibility of this department is the preparation and presentation of the Union Budget. The Department of Revenue of Finance Ministry exercise control in respect of revenue matters through the Central Board of Direct Taxes (CBDT) and the Central Board of Excise and Customs (CBEC).

Answer 13

The department of Economic affairs of Ministry of Finance is the nodal agency of the Union government to formulate and monitor country's economic policies and programmes. A principal responsibility of this department is the preparation and presentation of the Union Budget. The Department of Revenue of Finance Ministry exercise control in respect of revenue matters through the Central Board of Direct Taxes (CBDT) and the Central Board of Excise and Customs (CBEC). The Ministry of Finance in consultation with CBDT and CBIC prepares revenue estimates of the Budget to be generated in the ensuing financial year

Answer 14

Hot currency (or money) signifies currency that quickly and regularly moves between financial markets, that ensures investors lock in the highest available short-term interest rates. Hot money continuously shifts from countries with lowinterest rates to those with higher rates. These financial transfers affect the exchange rate and potentially impact a country’s balance of payments.

Answer 15

Under Gadgil-Mukherjee Formula, the higher weightage has been given to population (1971), which is at 60 percent. The Gadgil-Mukherjee Formula made the basis of allocation during 8th Five Year Plan (1992-97) and it has since been use for the allocation of Central Plan Assistance. Under this formula, the weightage for various criteria is as follows : 1. 60 percent on the basis of population. 2. 25 percent on the basis of per capita income 3. 7.5 percent on the basis of fiscal management, tax effort and progress in respect of national objectives 4. 7.5 percent on the basis of special problems

Answer 16

Manufactured products U

Answer 17

Towards faster and more Inclusive growth

Answer 18

The gender budgeting was first introduced in India in the Union Budget 2005-06. Gender budgeting is concerned with gender sensitive formulation of programmes/schemes, allocation of resources, implementation and execution, audit and impact assessment and follow-up corrective action to address gender disparities. In 2005-06, the gender budgeting constituted 4.8% of the total budget outlay, but over the years, its proportion in the budget has close to stagnated, hovering around

Answer 19

Special Economic Zone (SEZ) policy in India first came into inception on 1 April, 2000. Its prime objective was to enhance foreign investment and provide an internationally competitive and hassle free environment for exports. The idea was to promote exports from the country and realizing the need that level playing field must be available to the domestic enterprises and manufacturers to be competitive global

Answer 20

Balance of Payments (BoP) records the transactions in goods, services and assets between residents of a country with the rest of the world for a specified time period typically a year. The balance of payments includes both the current account and capital account. The current account records exports and imports in goods and services and transfer payments, while the capital account records all international purchases and sell of assets such as money, stocks, bonds, etc.

Answer 21

country in Global Hunger Index are as follows : 1. Undernourishment : The share of the population that is undernourished (that is, whose caloric intake is insufficient); 2. Child Wasting : The share of children under the age of five who are wasted (that is, who have low weight for their height, reflecting undernutrition); 3. Child Stunting : The share of children under the age of five who are stunted (that is, who have low height for their age, reflecting chronic undernutrition); and 4. Child Mortality : The mortality rate of children under the age of five (in part, a reflection of the total mix of inadequate nutrition and unhealthy environments)

Answer 22

Interest Payment

Answer 23

The Development, Monitoring and Evaluation Office (DMEO) was established by the Government on 18th September, 2015 as an attached office of the NITI Aayog by merging the erstwhile Programme Evaluation Organization (PEO) and the Independent Evaluation Office (IEO). DMEO has been mandated to actively monitor and evaluate the implementation of the programmes and initiatives of the Government of India, including the identification of the needed resources so as to strengthen the probability of the success and scope of delivery

Answer 24

The International Potato Centre (CIP) was founded in 1971 as a research-for-development organization with a focus on potato, sweet-potato and andean roots and tubers. It delivers innovative science-based solutions to enhance access to affordable nutritious food, foster inclusive sustainable business and employment growth, and drive the climate resilience of root and tuber agri-food systems. It is headquartered in Lima, Peru

Answer 25

Provide easy financial assistance to set up small business

Answer 26

The main objectives of Indian Five Year Plans were to promote a rapid rise in the standard of living of the people by efficient exploitation of the resources of the country, increasing production and offering opportunities to all for employment and to reduce dependence on foreign aid with self-reliance

Answer 27

Fiscal policy is the use of government spending and taxation to influence the economy. Governments typically use fiscal policy to promote strong and sustainable growth and reduce poverty

Answer 28

Consumption data

Answer 29

Approval of Five Year Plans

Answer 30

Abolition of intermediaries, tenancy reforms and ceiling on land holdings- all these measures have been taken in India to make the agrarian structure conducive to agricultural growth.

Answer 31

consumer is said to be in equilibrium if he is able to fulfil his need with a given level of income. In other words, when a consumer feels that he cannot change his condition either by earning more or by spending more or by changing the quantities of things he buys, then he is said to be in equilibrium. Equilibrium in the marginal utility, from an economic point of view, is derived from money paid and well consumed. As per the law of equi-marginal utility a consumer will be in equilibrium when the ratio of marginal utility of a commodity to its prices equals the ratio of marginal utility of other commodity to its price.

Answer 32

Venture Capital (VC) is a form of private equity and a type of financing that investors provide to start-up companies and small businesses that are believed to have long-term growth potential. Venture capital generally comes from well-off investors, investment banks, and any other financial institution. Hence, venture capital is the long-term initial capital made available for new entrepreneurs.

Answer 33

Mumbai, Kolkata and Hyderabad

Answer 34

Central Statistics Office of Ministry of Statistics and Programme Implementation, Government of India brings out the publication called 'Energy Statistics' on annual basis. At present, NSSO was merged with CSO to form National Statistical Office (NSO)

Answer 35

balance of payments account, which is a statement of all transactions made between a country and the rest of the world, consists of two accounts – current and capital account. While the current account deals mainly with import and export of goods and services, the capital account is made up of cross-border movement of capital by way of investments and loans. Current account convertibility refers to the freedom to convert rupees into other internationally accepted currencies and vice-versa/or without any restrictions. Similarly, capital account convertibility means the freedom to conduct investment transactions without any constraints. Typically, it would mean no restriction on the amount of rupees anyone can convert into foreign currency or vice-versa for the purpose of trading financial assets. Indian rupee is fully convertible on current account from August, 1994. As far as the capital account convertibility of rupee is concerned, India has come a long way in liberating the capital account transactions in the last three decades and currently has partial capital account convertibilit

Answer 36

e Ministry of Finance is responsible for the administration of finances of the Central government. It is concerned with all economic and financial matters affecting the country as a whole including mobilization of resources for development and other purposes. It regulates expenditure of the government including transfer of resources to the States. The Ministry comprises of the five departments namely : (i) Economic Affairs; (ii) Expenditure; (iii) Revenue; (iv) Investment and Public Asset Management; (v) Financial Services

Answer 37

Taxation, public expenditure and public debt are the important instruments of Fiscal policy. In other words, a policy related to public expenditure, taxation and public debt is called fiscal policy

Answer 38

Core inflation represents the long run trend in the price level and in measuring long run inflation, transitory price changes should be excluded. Thus, core inflation is an inflation measure which excludes transitory or temporary price volatility as in the case of some commodities such as food items, fuel products etc. Hence, core inflation is defined as headline inflation excluding both food inflation and fuel inflation

Answer 39

In Indian Agriculture Census, the operational holdings are categorized in five size classes : 1. Marginal – Below 1 hectare 2. Small – 1 to 2 hectares 3. Semi-Medium – 2 to 4 hectares 4. Medium – 4 to 10 hectares 5. Large – 10 hectare and above

Answer 40

India is the first country in Asia, which accepted the importance of Export Processing Zones in export promtion and established Asia’s first Export Processing Zone in Kandla in 1965. Today it is considered as India's largest multi-product functional Special Economic Zone (Kandla SEZ or KASEZ) ecompassing 1000 acres with about 255 performing units.

Answer 41

Rural Health Mission : Government of India started National Rural Health Mission on 12 April, 2005 to provide accessible, viable and qualitative health services for rural population. Look East Policy : Government of India adopted ‘look east policy’ to encourage the economic and strategic relations with South East Asian countries.

Answer 42

A green bond is a fixed-income instrument designed specially to support specific climate-related or environmental projects. Green bonds typically come with tax incentives to enhance their attractiveness to investors. They are low cost loans with generally long-term maturities. Green bonds are financial market innovation and relatively new asset class, but they are growing rapidly. Green bonds were first introduced by European Investment Bank (EIB) in 2007 as 'Climate Awareness Bond' to fund renewable energy and energy efficiency projects. Afterwards the World Bank issued a labelled 'Green Bond' in 2008.

Answer 43

The Special Economic Zone (SEZ) policy in India first came into inception on 1 April, 2000. Its prime objective was to enhance foreign investment and provide an internationally competitive and hassle free environment for exports. The idea was to promote exports from the country and realizing the need that level playing field must be available to the domestic enterprises and manufacturers to be competitive globally.

Answer 44

Poland was not a member of European Union (EU) in 1997. It became a member of EU in 2004. At present EU has 27 members countries. The United Kingdom withdrew from the EU on 31 January, 2020. The EU is a unique economic and political union of 27 European countrie

Answer 45

The Twenty Point Programme (TPP) was launched by the Government of India in 1975. Its main objective was to promote agricultural and industrial production with eradication of poverty and improvement in the quality of life of the common man. The programme was first revised in 1982 and again in 1986. It was again restructured in 2006, keeping in view the challenges of the 21st Century with particular reference to the process of economic reforms.

Answer 46

(*) As per the question period option (c) could be the correct answer but at present, among the given options, only ESSAR Oil Ltd. (now Nayara Energy) is a private sector enterprise while Bongaigaon refinery, Haldia refinery and Manglore refinery are public sector undertakings. Mangalore Refinery and Petrochemicals Limited (MRPL) is a subsidiary of Oil and Natural Gas Corporation (ONGC) since March, 2003. It was established in 1987 at Katipalla, Mangalore as a joint venture oil refinery promoted by the HPCL, a public sector company and IRIL & Associates (AV Birla Group). Haldia Refinery is one of the two refineries of Indian Oil Group Companies producing Lube Oil Base Stocks (LOBS). It was commissioned in January 1975. Bongaigaon Refinery (BGR) is the 8th refinery of Indian Oil

Answer 47

Inclusive growth as enunciated in the Eleventh Five Year Plan does not include strengthening of capital market, while it includes reduction of poverty, extension of employment opportunities and reduction of gender inequality

Answer 48

Producer Price Index (PPI) measures the average change in the prices of goods and services either as they leave the place of production, called output PPI or as they enter the production process, called input PPI. PPI estimates the change in average prices that a producer receives

Answer 49

The term Hindu rate of growth was used for the first time by Prof. Raj Krishna in the year 1981 while speaking in the American Economic Association. According to him the Hindu tradition which is not favourable to development or which do not promote development is the major cause of the slow growth rate of National Income/GDP in India, which stagnated around 3.5% from 1950s to 1980s. Hence it is clear that Hindu rate of growth mentioned by Prof. Raj Krishna is related to National Income/GDP.

Answer 50

During the Eleventh Five Year Plan, the maximum growth in employment opportunities was expected in the construction sector (8.27%). Expectations for increase of employment opportunities in other sectors during the 11th Plan were as follows : Transport and Communication (7.6%), Manufacturing (4%) and Agriculture sector (4%).

Answer 51

Ans. (c) Statutory Liquidity Ratio (SLR) is a minimum percentage of deposits that a commercial bank has to maintain in the form of liquid cash, gold or other securities. It is basically the reserve requirement that banks are expected to keep before offering credit to customers. If the RBI reduces the SLR by 50 basis points, then commercial banks have more liquid cash to offer credit to customers. In this situation, commercial banks may cut their lending rates to promote credit creation.

Answer 52

Reserve Bank of Ind

Answer 53

The Commission for Agricultural Costs and Prices (CACP since 1985, earlier named as Agricultural Prices Commission) came into existence in January, 1965. It is mandated to recommend minimum support prices (MSPs) to incentivize the cultivators to adopt modern technology, and raise productivity and overall grain production in line with the emerging demands patterns in the country. MSP for major agricultural products are fixed by the government, each year, after taking into account the recommendations of the CAC

Answer 54

Indian economist Prof. Amartya Sen, who was awarded the 1998 Nobel Prize in Economic Sciences, had given the view that 'Planning in India should, in future, pay more attention to the people than to commodities'

Answer 55

Jayant Patil Committee was established for the development of scanty rainfall area. The Chairman of this committee was Dr. Jayant Patil, a member of Planning Commission. It was empowered for laying down a future plan for 25 years.

Answer 56

A debenture is a medium to long-term debt instrument used by large companies to borrow money, at a fixed rate of interest. A debenture is like a certificate of loan or a loan bond evidencing the fact that the company is liable to pay a specified amount with interest. Public limited company issues the debenture under the Company Act, 1956 and it is under the guidelines of the SBI. Hence, debenture holders of a company are its credito

Answer 57

IMF was conceived in July 1944 at the United Nations' Bretton Woods Conference in New Hampshire, U.S. (but formally created on 27 December, 1945). The IMF’s fundamental mission is to ensure the stability of international monetary system. It does so in three ways : keeping track of global economy and the economies of the member countries, lending to members countries with balance of payments difficulties and giving practical help to members. International Monetary Fund (IMF) loans are meant to help member countries tackle balance of payments problems, stabilize their economies, and restore sustainable economic growth. Any member country, whether rich, middle-income, or poor, can turn to IMF for financing if it has a balance of payments need. At present, the IMF is an organization of 190 countrie

Answer 58

Increase in money suppl

Answer 59

National Agricultural Cooperative Marketing Federation of India (NAFED) is related to the agricultural marketing. It was established on 2 October 1958. It is an apex organization under the Ministry of Agriculture, which deals with marketing cooperatives for agricultural produce in India. NAFED has been started with the objective to organize, promote and develop marketing, processing and storage of agricultural, horticultural and forest produce, distribution of agricultural machinery, implements and other inputs, undertake inter-state import and export trade, wholesale or retail and to facilitate, coordinate and promote the marketing and trading activities of the cooperative institutions, partners and associates in agricultural and other commodities. Thus, while NAFED is also related with agricultural implements, but its main objective is to promote cooperative marketing of agricultural produce to benefit the farmer

Answer 60

Expert Committee on Small Enterprises' was constituted by the Ministry of Industry, Govt. of India in 1995 under the chairmanship of Abid Hussain. Abid Hussain Committee has recommended for total abolition of the reservation of items for the small scale industries. Committee’s Report on Small Scale Industries (1997) have been regarded as milestones in India’s economic reforms

Answer 61

The correctly matched lists are as follows : City Industry Coimbatore – Cotton Textiles Rourkela – Iron and Steel Kapurthala – Rail Coach Barauni – Petroleum Refining

Answer 62

Rashtriya Krishi Vikas Yojna (RKVY) was initiated in 2007 as an umbrella scheme for ensuring holistic development of agriculture and allied sectors. Soil test lab, fertilizer's quality control lab, agricultural tools test lab and agricultural engineering – all of these are included under various components of RKVY. Hence, option (e) is the correct answe

Answer 63

The purpose of the indemnity principle is to set back the insured at the same financial position as he/she was before the loss occurred. All insurance contracts of fire or marine insurance are contracts of indemnity. The insurer undertakes to compensate the insured for the loss caused to him/her due to damage or destruction of property insured. This principle of indemnity is not applicable to life insurance because one cannot estimate the loss due to the death of a person.

Answer 64

teel Authority of India is a marketing institution, while SEBI (Capital Market), SIDBI (Micro-finance) and NABARD (Agricultural credit) are apex institution in their respective fields.

Answer 65

Institution Established in (Year) Life Insurance Corporation – 1956 of India (L.I.C.) Unit Trust of India (U.T.I.) – February 1964 Industrial Development Bank – July 1964 of India (IDBI) Securities and Exchange Board – 1988 of India (SEBI)

Answer 66

Oil India Limited (OIL) is a premier Indian National Oil Company engaged in the business of exploration, development and production of crude oil and natural gas, transportation of crude oil and production of LPG

Answer 67

Bhadawari is a breed of buffalo. They are basically found in Uttar Pradesh and Madhya Pradesh. Sindhi (Red Sindhi) is a breed of cow originating from Sindh province of Pakistan. In India, it is found in Punjab, Haryana, Karnataka, Tamil Nadu, Kerala and Odisha. Jamunapari is an Indian breed of domestic goat originating in Uttar Pradesh. Tharparkar is a breed of cow found in Gujarat and Rajasthan. Hence, option (d) is not correctly matched

Answer 68

(b) The Foreign Exchange Management Act (FEMA), 1999 prohibits dealings in foreign exchange except through an authorized dealer. Authorized Dealer (AD) Category-I banks (Exchange banks) may allow remittance for making payments for imports into India, after ensuring that all the requisite details are made by the importer and the remittance is for bona fide trade transactions as per applicable laws in force. Except for goods included in the negative list which require licence under the Foreign Trade Policy in force, AD CategoryI banks may freely open letters of credit and allow remittances for import. Where foreign exchange acquired has been utilized for import of goods info India, the AD Category-I bank should ensure that the importer furnishes evidence of import viz., Exchange Control copy of the Bill of Entry, Postal Appraisal Form or Customs Assessment Certificate, etc., and satisfy himself that goods equivalent to the value of remittance have been imported.

Answer 69

Reserve Bank of India (RBI) is India’s Central Bank, also known as the bankers’ bank. RBI regulates the money supply and monitors the works of NABARD. RBI does not provide loan to any business families. Hence, option (d) is the correct answer.

Answer 70

Handloom industry is the most important small scale industry in India, under which muslin, chintz, carpet, khadi etc. enterprises are included. Handloom industry comes under unorganized sector. According to the fourth Handloom Census, 2019-20, a total of 35.23 lakh people are employed in handloom industry of which 30.54 lakh are in rural areas and 4.69 lakh are in urban areas

Answer 71

The International Development Association (IDA) is the part of the World Bank group. It is an agency administrated by the International Bank for Reconstruction and Development (or World Bank) to provide assistance on concessionary terms to the poorest countrie

Answer 72

Duty drawback implies the refund of custom and excise duties paid on inputs or raw materials and service tax paid on the input services used in manufacture of export goods

Answer 73

Base effect' refers to a kind of statistical anomaly that causes steep hike or decline in the rate of price rise or fall because the current prices are compared relative to the previous period. If last year's price of certain articles is low and this year it has returned to its normal price, yet the rate of increase, which is relative to the last year's price, is shown high.

Answer 74

The Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental organization or cartel of 13 countries, founded on 14th September, 1960 in Baghdad. The stated mission of the organization is to "coordinate and unify the petroleum policies of its member countries and ensure the stabilization of oil markets, in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers, and a fair return on capital for those investing in the petroleum industry." The 13 member countries accounted for an estimated 44 percent of global oil production and 81.5 percent of the world's 'proven' oil reserves, giving OPEC a major influence on global oil price

Answer 75

EXIM Bank was established in 1982 by the Government of India, under the Export-Import Bank of India Act, 1981 as a purveyor of export credit, mirroring global Export Credit Agencies. Exim bank serves as a growth engine for industries and SMEs through a wide range of product and services. This includes import of technology and export product development, export production, export marketing, preshipment and post-shipment and overseas investment.

Answer 76

The Phillips Curve is an economic concept developed by A.W. Phillips in 1958, which states that inflation and unemployment have a stable and inverse relationship. The theory claims that with economic growth comes inflation, which in turn should lead to more jobs and less unemployment. It is used in short-run trade off between unemployment and inflation

Answer 77

WTO terminology, subsidies in general are identified by 'boxes' which are given the colours of traffic lights : green (permitted), amber (slow down – i.e. need to be reduced), red (forbidden). The Agreement on Agriculture (AoA) has no red box. It has green box, amber box and blue box. Subsidies that do not distort trade or at most cause minimum distortion are in green box and permitted. Direct income support for farmers that are not related to (are 'decoupled' from) current production levels or prices, environmental protection and regional development programmes, research funding, farmer training programmes, pest-disease control programmes etc. are included in this category. Domestic support measures considered to distort production and trade (with some exceptions) fall into the amber box. These include measures to support prices, or subsidies directly related to production quantities. These supports are subject to limits – generally 5% of agricultural production for developed countries and 10% for developing countries. Blue box is the 'amber box with conditions' – conditions designed to reduce distortion. Included in the blue box are any support payments that are not subject to the amber box because they are direct payments under a production limiting programme. To be included in blue box category, direct payments must be made on fixed areas and yields or payments must be made on 85 percent or less of the base level of production. At present, there are no limits on spending on blue box subsidies.

Answer 78

The correctly matched lists are as follows : List-I List-II W.T.O. – Generally to forbid the use of quantitative restrictions in trade I.M.F. – To provide finance to correct equilibrium in balance of payments SAARC – To promote cooperation among South Asian countries I.D.A. – Sanction of Soft Loa

Answer 79

The Reserve Bank of India constituted on 9 December 1991, a Committee under the Chairmanship of P.R. Nayak, to examine the difficulties confronting the small scale industries (SSIs) in the country in the matter of securing finance. Nayak Committee submitted its report in September, 1992. Another committee under the chairmanship of P.J. Nayak was set up by the RBI in January, 2014 to review the governance of the board of banks in India.

Answer 80

The estimation of poverty at the National and State level had been done by the erstwhilePlanning Commission since the 6 th five year plan. In India, for the determination of poverty level and determination of methodology of poverty, various committies have been constituted from time to time. The important committies (and year of report) are Alagh Committee (1979), Lakadawala Committee (1993), Tendulkar Committee (2009) and C. Rangarajan Committee (2014) etc.

Answer 81

If the supply of money is constant and its demand is increasing there will be an increase in interest rates. It does not have much to do with the level of prices and the increase in the level of income and employment.

Answer 82

The Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental organization or cartel of 13 countries, founded on 14th September, 1960 in Baghdad. The stated mission of the organization is to "coordinate and unify the petroleum policies of its member countries and ensure the stabilization of oil markets, in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers, and a fair return on capital for those investing in the petroleum industry." The 13 member countries accounted for an estimated 44 percent of global oil production and 81.5 percent of the world's 'proven' oil reserves, giving OPEC a major influence on global oil prices

Answer 83

book 'India's Economic Policy : The Gandhian Blue Print' is written by former Prime Minister of India, Chaudhary Charan Singh

Answer 84

The task force constituted by the Planning Commission under the chairmanship of Dr. Y.K. Alagh in its report (1979) defined poverty line as the per capita consumption expenditure level to meet average per capita daily calorie requirement of 2400 kcal (food calories) per capita per day in rural areas and 2100 kcal per capita per day in urban areas. The average calorie requirements estimated as a populationweighted average of the Nutrition Expert Group (1968) by reference to the 1971 population Census.

Answer 85

Market is an economic tendency, which leads to consumeris

Answer 86

Based on the average of 52 weeks, the inflation was 10.9% in 1994-95 which came down to 4.8% in 1997-98. Hence, statement (1) is correct. In 1994-95 India received 4807 million US Dollar as foreign investment while it received 5353 million US Dollar in 1997-98. Thus, it is clear that there was minimal increase in foreign investment during that period. Hence, Statement (2) is incorrect.

Answer 87

The balance of payments account, which is a statement of all transactions made between a country and the rest of the world, consists of two accounts – current and capital account. While the current account deals mainly with import and export of goods and services, the capital account is made up of cross-border movement of capital by way of investments and loans. Current account convertibility refers to the freedom to convert rupees into other internationally accepted currencies and vice-versa/or without any restrictions. Similarly, capital account convertibility means the freedom to conduct investment transactions without any constraints. Typically, it would mean no restriction on the amount of rupees anyone can convert into foreign currency or vice-versa for the purpose of trading financial assets. Indian rupee is fully convertible on current account from August, 1994. As far as the capital account convertibility of rupee is concerned, India has come a long way in liberating the capital account transactions in the last three decades and currently has partial capital account convertibility

Answer 88

(a) NSSO household consumption expenditure surve

Answer 89

Simultaneous purchase and sale of government securities by the RBI under Open Market Operations (OMOs) is popularly known as Operation Twist. It involves buying longterm securities while selling short-term securities to keep borrowing costs down. Operation Twist is a program of quantitative easing used by the RBI that was first introduced by the Federal Reserves in US in 1961. It is aimed at stimulating economic growth through lowering long-term interest rates. The main objective of this operation is to promote long-term investments. Hence, both (A) and (R) are true and (R) is the correct explanation of (A)

Answer 90

(c) 'Commercial Paper (CP)' is an unsecured money market instrument issued in the form of a promissory note. Corporates, Primary Dealers (PDs) and the All-India Financial Institutions (FIs) are eligible to issue CP. CP can be issued for maturities between a minimum of 7 days and a maximum of up to one year from the date of issue (short-term). Hence, statement (1) is correct. 'Certificate of Deposit (CD)' is a negotiable money market instrument and issued in dematerialised form out as a Usance Promissory Note, against funds deposited in a bank or other eligible financial institutions for a specified time period. Guidelines for issue of CDs are governed by the Reserve Bank of India. CDs can be issued by (i) Scheduled Commercial Banks excluding Regional Rural Banks (RRBs) and Local Area Banks (LABs); and (ii) Select all-India Financial Institutions that have been permitted by RBI to raise shortterm resources within the umbrella limit fixed by RBI. Hence, statement (2) is incorrect. 'Call Money' is the borrowing or lending of funds for 1 day (overnight). Participants in call money market includes banks (excluding RRBs) and Primary Dealers (PDs), both as borrowers and lenders. Participants are force to decide on interest rate in call money market. It is short period borrowing and lending to meet the short term mismatches in fund position. Hence, statement (3) is correct. 'Zero-coupon Bond' is a debt security that does not pay interest but instead trades at a deep discount, rendering a profit at maturity, when the bond is redeemed for its full face value. Hence, statement (4) is incorrect

Answer 91

National Agriculture Technology Project (NATP) was launched by the Indian Council of Agricultural Research (ICAR) and Union Ministry of Agriculture in 1998, with the support of the World Bank to strengthen and complement the existing resources and to augment the output of national agricultural research syst

Answer 92

National Institute of Rural Development and Panchayati Raj is situated at Hyderabad in Telangana State. It is an autonomous organization under the Ministry of Rural Development

Answer 93

Cut motion

Answer 94

Bharatmala Project is a centrally-sponsored and funded road and highways project of the Government of India. It is an umbrella program for the road infrastructure sector that focuses on optimizing efficiency of freight and passenger movement across the country by bridging critical infrastructure gaps through effective interventions like development of Economic Corridors, Inter Corridors and Feeder Routes, National Corridor Efficiency Improvement, Border and International connectivity roads, Coastal and Port connectivity roads and Greenfield expressway

Answer 95

Bharatmala Project is a centrally-sponsored and funded road and highways project of the Government of India. It is an umbrella program for the road infrastructure sector that focuses on optimizing efficiency of freight and passenger movement across the country by bridging critical infrastructure gaps through effective interventions like development of Economic Corridors, Inter Corridors and Feeder Routes, National Corridor Efficiency Improvement, Border and International connectivity roads, Coastal and Port connectivity roads and Greenfield expressway

Answer 96

Free Trade Zones (SEZs/FTWZs) have been established in India for the promotion of export industries. A free trade zone is an area where goods may be landed, stored, handled, manufactured or reconfigured and re-exported under specific customs regulation and generally not subject to customs dut

Answer 97

Free Trade Zones (SEZs/FTWZs) have been established in India for the promotion of export industries. A free trade zone is an area where goods may be landed, stored, handled, manufactured or reconfigured and re-exported under specific customs regulation and generally not subject to customs dut

Answer 98

Tax on sale of inherited property is called 'Capital Gain Tax'. Any profit or gain that arises from the sale of a 'capital asset' is a capital gain. Capital gains are not applicable to an inherited property as there is no sale, only a transfer of ownership. Under Section 56 (ii) of the Income Tax Act, there is no inheritance tax applicable in India irrespective of the cost of the inherited property. However, if the person who inherited the asset decides to sell it, capital gains tax will be applicable.

Answer 99

Capital formation is a term used to describe the net capital accumulation during an accounting period for a particular country. To accumulate additional capital, a country needs to generate savings and investments from household savings or based on government policy. Countries with a high rate of household savings can accumulate funds to produce capital goods faster, and a government that runs a surplus can invest the surplus in capital goods. The World Bank measures capital formation by assessing the change in net savings. If the household savings rate is increasing, savers may invest the additional money and purchase stocks and bonds. If more households are saving and financial institutions are effective, the country may report a cash surplus, which is a positive sign for capital formation. Hence, both of the given statements are correc

Answer 100

The oldest large scale industry of India is cotton textile industry. Mumbai and Ahmedabad are the centers of the cotton textile industry. The first cotton mill in India was established in 1818 at Fort Gloster near Kolkat

Answer 101

The ‘Shiksha Mitra Scheme’ was launched in 2000-01 to universalize primary education, maintain the teacher-student ratio as per the norms and to provide rural youth-force with an opportunity of education service in their village. Therefore Assertion and Reason both are true, but Reason does not explain Assertion correctly.

Answer 102

The ‘Shiksha Mitra Scheme’ was launched in 2000-01 to universalize primary education, maintain the teacher-student ratio as per the norms and to provide rural youth-force with an opportunity of education service in their village. Therefore Assertion and Reason both are true, but Reason does not explain Assertion correctly.

Answer 103

World Consumer Rights Day is celebrated on March 15 every year.

Answer 104

Ans. (c) Life insurance companies were nationalized in 1956 and general insurance companies were nationalized in 1972. While State Bank of India was nationalized in July 1955 and Banking Regulation Act came into force on 10 March, 1949. The first Five Year Plan was commenced in 1951. Hence, option (c) is the correct answer.

Answer 105

Ans. (c) Life insurance companies were nationalized in 1956 and general insurance companies were nationalized in 1972. While State Bank of India was nationalized in July 1955 and Banking Regulation Act came into force on 10 March, 1949. The first Five Year Plan was commenced in 1951. Hence, option (c) is the correct answer.

Answer 106

IFCI Ltd. (IFCI) was set up a Statutory Corporation (‘The Industrial Finance Corporation of India’) in 1 July, 1948 for providing medium and long term finance to industry. IFCI was the first development financial institution of India set up to propel economic growth through development of infrastructure and industry. Since then IFCI has contributed significantly to the economy through its continuous support to projects in all the three spheres of growth and development – manufacturing, infrastructure & services and agriculture allied sectors. In 1993, after repeal of the IFC Act, IFCI became a Public Limited Company (effected from October 1999), registered under the Companies Act, 1956. Currently, IFCI is a Government Company with Government of India holding 61.02% of paid-up capital of IFCI. IFCI is also registered with the Reserve Bank of India (RBI) as a Systemically Important Non-Deposit taking Non-Banking Finance Company (NBFCND-SI) and is also a notified Public Financial Institution under Section 2 (72) of the Companies Act, 2013.

Answer 107

Integrated Rural Development Programme (IRDP; 2 October, 1980), Training of Rural Youth for Self-Employment (TRYSEM; 15 August, 1979) and National Rural Employment Programme (NREP; October, 1980) were started for the eradication of poverty in rural areas

Answer 108

Railways has framed a well-designed policy – Mission 100% electrification – by 2023. Electrification of 68,155 route kilometre (RKM) broad-gauge railway routes by December, 2023 is nearing completion. Railways has set itself a target of making itself 'net zero' carbon emission network by 2030. This initiative alone will lead to a reduction of 60 million tonnes of emissions annually

Answer 109

Melt down refers to an event like steep fall in stock markets and mortgages whereas recession is a situation of massive contraction of economic activities and slow down refers to decrease in economic activities

Answer 110

Generally along with the economic development there is an increase in the demands of goods with increase in income. That is why economic development is usually accompanied by inflation

Answer 111

Ans. (c) The WTO agreement on ‘Trade-Related Aspects of Intellectual Property Rights’ (TRIPS) is the most comprehensive multilateral agreement on Intellectual Property (IP). It plays a central role in facilitating trade in knowledge and creativity and in resolving the trade disputes over IP. TRIPS covers the following forms of Intellectual Property Rights : 1. Copyright and related Rights, 2. Trade Marks, 3. Geographical Indications, 4. Industrial Designs, 5. Patents, 6. Layout-Designs (Topographies) of Integrated Circuits, 7. Trade Secrets. Labour standards is not included in Intellectual Property (IP). TRIPS came into force on 1 January, 1995.

Answer 112

All of the above can be considered as steps taken to achieve the ‘financial inclusion’ in India. Nationalization targeted the expansion of bank branches in rural areas and also a control on concentration of economic powers in the few hands. RRBs and Lead Bank Scheme were planned to cater the needs of the rural areas.

Answer 113

All of the above can be considered as steps taken to achieve the ‘financial inclusion’ in India. Nationalization targeted the expansion of bank branches in rural areas and also a control on concentration of economic powers in the few hands. RRBs and Lead Bank Scheme were planned to cater the needs of the rural areas.

Answer 114

(c) Free Trade Zones (SEZs/FTWZs) have been established in India for the promotion of export industries. A free trade zone is an area where goods may be landed, stored, handled, manufactured or reconfigured and re-exported under specific customs regulation and generally not subject to customs duty.

Answer 115

(c) Free Trade Zones (SEZs/FTWZs) have been established in India for the promotion of export industries. A free trade zone is an area where goods may be landed, stored, handled, manufactured or reconfigured and re-exported under specific customs regulation and generally not subject to customs duty.

Answer 116

Committee Formation (Year) I. Nayak Committee – 1991 II. Abid Hussain Committee – 1995 III. S.S. Kohli Committee – 2000 IV. Karve Committee – 1955 Hence, the correct chronological order of these committee for small scale sector is IV, I, II, III which is not given in any of the options. UPPSC has given option (c) as the right answer in the key sheet which is wrong.

Answer 117

Krishak Bharti Cooperative Ltd. (KRIBHCO) was incorporated in April, 1980 as a national level Multi State Cooperative Society. KRIBHCO has state-of-the art high capacity Fertilizer Complex based on natural gas at Hazira, District Surat, Gujarat consisting of two streams of Ammonia Plant and four streams of Urea Plan

Answer 118

Budget is an instrument of fiscal policy of the government. Under Article 112 of the Constitution, a statement of the estimated receipts and expenditure of the Government of India has to be laid before both the Houses of Parliament in respect of every financial year. This statement titled 'Annual Financial Statement' is the main Budget document.

Answer 119

Budget is an instrument of fiscal policy of the government. Under Article 112 of the Constitution, a statement of the estimated receipts and expenditure of the Government of India has to be laid before both the Houses of Parliament in respect of every financial year. This statement titled 'Annual Financial Statement' is the main Budget document.

Answer 120

RBI publishes figures for four alternative measures of money supply, viz, M0 , M1 , M2 and M3 . M3 is known as Broad Money. M3 includes : M3 = Currency with the public + Demand deposits with banks + Other deposits with RBI + Net time deposits of commercial banks or M3 = M1 + Net time deposits of Commercial banks

Answer 121

Ans. (d) ‘Saansad Adarsh Gram Yojana’ (SAGY) was launched on 11th October, 2014, the birth anniversary of Lok Nayak Jai Prakash Narayan. This scheme was initiated to bring the Member of Parliament of all the political parties under the same umbrella while taking the responsibility of developing physical and institutional infrastructure in villages and turn them into model villages.

Answer 122

On 3rd December, 1993 Prime Minister had announced the Members of Parliament Local Area Development Scheme (MPLADS). The objective of the scheme is to enable MPs to recommend works of developmental nature with emphasis on the creation of durable community assets like physical infrastructure for health, education, sanitation, road and drinking water etc. Hence, statement (1) is correct. MPs recommend every year, works costing at least 15% of the MPLADS entitlement for the year for areas inhabited by Scheduled Caste population and 7.5% for areas inhabited by Scheduled Tribe population. Hence, statement (2) is correct. Funds released under MPLADS are non-lapsable i.e. if the money is not used, it gets carried to the next year. Hence, statement (3) is incorrect. The district authority is responsible for overall coordination and supervision of the scheme and inspect at least 10% of all works under implementation every year. Hence, statement (4) is correct

Answer 123

The Economic Survey of India is the flagship annual document of the Ministry of Finance, Government of India. It is prepared by the Department of Economic Affairs, Ministry of Finance under the guidance of the Chief Economic Adviser. This document is presented to both Houses of Parliament during Budget Session, before the Union Budg

Answer 124

The Economic Survey of India is the flagship annual document of the Ministry of Finance, Government of India. It is prepared by the Department of Economic Affairs, Ministry of Finance under the guidance of the Chief Economic Adviser. This document is presented to both Houses of Parliament during Budget Session, before the Union Budg

Answer 125

Chairmen and other top officials of public sector banks are selected by the Bank Board Bureau (BBB). The Bureau started functioning from April 01, 2016 as an autonomous recommendatory body. It is tasked to improve the governance of public sector banks, recommend selection of top-level posts of public sectors banks and financial institutions and to help banks in developing strategies and capital raising plan

Answer 126

Ans. (c) Economic development of any country requires a multidimensional approach so that the targets of inclusive development can be achieved. Thus Assertion (A) is correct. The present Government of India is focussing on 'Micro' as well as 'Macro' economic issues. Macro economic issues includes Current Account Deficit, Fiscal Deficit, Inflation, National Income, Employment rate, Balance of Payment, increase in Investment etc. Micro economic issues includes production of firm, industry, person etc., consumption, distribution, price determination etc. Thus, Reason (R) is wrong.

Answer 127

a) World Economic Forum

Answer 128

(d) Officially known as The Constitution (One Hundred and First Amendment) Act, 2016, this amendment introduced a National Goods and Services Tax (G.S.T.) in India from 1 July, 2017. It was introduced as the One Hundred and Twenty Second Amendment Bill of the Constitution of India

Answer 129

Participants in call/notice money market currently include commercial banks, co-operative banks, PDs (Primary Dealers), development finance institutions, insurance companies and select mutual funds. RBI is not a participant in the India’s money market

Answer 130

The Asia-Pacific Trade Agreement (APTA), previously known as the Bangkok Agreement and renamed on 2nd November, 2005, was signed in 1975. It is a preferential tariff agreement that aims at promoting intra-regional trade through the exchange of mutually agreed concessions by the member countries.The members of APTA are – Bangladesh, China, India, South Korea, Lao PDR (Laos), Mongolia and Sri Lanka. Myanmar is not a member of APTA.

Answer 131

closed economy is one that has no trading activity with outside economies. Closed economy is therefore entirely self-sufficient, which means no imports come into the country and no exports leave the country.

Answer 132

Gadgil Committee Report and Kasturirangan Committee Report are related to protection of Western Ghats. The Committee headed by ecologist Madhav Gadgil also known as the Western Ghats Ecology Expert Panel (WGEEP) recommended that all of the Western Ghats be declared as the Ecologically Sensitive Areas (ESA) with only limited development allowed in graded zones. The Committee undChairmanship of K. Kasturirangan was constituted to examine the WGEEP report. Kasturirangan Committee in its report (2013) sought to balance the development and environment protection and recommended that instead of the total area of Western Ghats, only 37% of the area to be brought under ESA.

Answer 133

main reasons for the volatility in Indian share market are as follows : 1. Inflow and outflow of foreign funds. 2. Fluctuations in foreign capital markets. 3. Changes in monetary policy. 4. Availability of liquidity in the market. 5. Political situations. 6. Economic outlook. 7. Corporate performances etc.

Answer 134

The National Water Development Agency (NWDA), a registered society under the Ministry of Jal Shakti was set up in the year 1982 to carry out detailed studies, surveys and investigations in respect of Peninsular Component of National Perspective Plan for Water Resources Development. The Government subsequently modified the functions of NWDA to include the Himalayan Component of National Perspective Plan for Water Resources Development in the year 1990

Answer 135

Governors Tenures I. Dr. C. Rangarajan : 22.12.1992 – 22.11.1997 II. Dr. I.G. Patel : 01.12.1977 – 15.09.1982 III. Dr. D. Subbarao : 05.09.2008 – 04.09.2013 IV. Dr. Manmohan Singh : 16.09.1982 – 14.01.1985 Hence, option (b) is the correct ans

Answer 136

Chronological order of the given statements is as follows : 1. India became member of IMF. (1945) 2. First devaluation of Indian currency after independence took place. (1949) 3. First Five Year Plan was submitted to Parliament. (8 Dec. 1951) 4. National Development Council was set-up. (6 Aug. 1952)

Answer 137

Devaluation of currency means decreasing the value of domestic currency in comparison of currencies used in international market. A devaluation is an official lowering of the value of a country's currency within a fixed exchange rate system, in which a monetary authority formally sets a lower exchange rate of the national currency in relation to major international currencies. The Indian rupee was devalued in 1949, 1966 and 1991. But in 1991, it was carried out in two steps – on July 1 and July 3. Hence, it was devalued in three years but four times

Answer 138

(a) Eighth Five Year Plan

Answer 139

The World Bank (IBRD) was created at 1944 Bretton Woods Conference (United Nations Monetary and Financial Conference), along with the ‘IMF’. But its governing document and membership became effective from 27 December, 1945. The headquarters of the ‘World Bank’ is located in Washington, D.C

Answer 140

(c) The Competition Commission of India has been established under the Competition Act, 2002 on 14th October, 2003, with the goal to create and sustain fair competition in the economy that will provide a 'level playing field' to the producers and make the markets work for the welfare of the consumer. It is the duty of the Commission to eliminate practices having adverse effect on competition, promote and sustain competition, protect the interest of consumers and ensure freedom of trade in the markets of India.

Answer 141

List of Navratna CPSEs (as on February, 2022) : 1. Bharat Electronics Limited 2. Container Corporation of India Limited 3. Engineers India Limited 4. Hindustan Aeronautics Limited 5. Mahanagar Telephone Nigam Limited 6. National Aluminium Company Limited 7. National Building Construction Corporation Limited 8. NMDC Limited 9. Neyveli Lignite Corporation Limited 10. Oil India Limited 11. Rashtriya Ispat Nigam Limited 12. Rural Electrification Corporation Limited 13. Shipping Corporation of India Limited.

Answer 142

‘NIKKEI’ is a share price index in Tokyo Stock Exchange

Answer 143

The Asia-Pacific Trade Agreement (APTA), previously known as the Bangkok Agreement and renamed on 2nd November, 2005, was signed in 1975. It is a preferential tariff agreement that aims at promoting intra-regional trade through the exchange of mutually agreed concessions by the member countries.The members of APTA are – Bangladesh, China, India, South Korea, Lao PDR (Laos), Mongolia and Sri Lanka. Myanmar is not a member of APT

Answer 144

Bears are the investors who expect the prices of securities to fall and they sell the securities and buy again when the prices actually fall.

Answer 145

The All-India Rural Credit Survey Committee, which is also known as A.D. Gorewala Committee had recommended to the establishment of State Bank of India through combining the Imperial Bank of India and some State’s affliated banks. The six commercial banks were nationalized on April 15, 1980 by the Government of India. Hence both of the given statements are correct

Answer 146

The 'Aid-India Consortium' was organized in 1958 as an international scheme to support the economic development of India, and led by the World Bank. This later came to be known as the 'Indian Development Forum'. The World Bank provides long term loans for the improvement of infrastructure (like construction of road, water etc.)

Answer 147

Collaborative filtering is a way recommendation systems filter information by using the preferences of other people. It uses the assumption that if person A has similar preferences to person B on items they have both reviewed, then person A is likely to have a similar preference to person B on an item only person B has reviewed.

Answer 148

Ans. (c) Balance sheet is a snapshot of a company's financial condition at a specific time, usually at the close of an accounting period. A company's balance sheet comprises its assets (e.g. cash, inventory etc.), liabilities (e.g. debt, accounts payable etc.) and equity (e.g. share capital, retained earnings, reserves, etc.).

Answer 149

India Post has undertaken a Quality Improvement Project called 'Project Arrow' to transform India Post into a vibrant and responsive organization. This was launched in April, 2008. Project Arrow entails comprehensive improvement of the Core Operations of Post Offices as well as the ambience in which postal transaction undertake

Answer 150

Three tiered

Answer 151

free trade policy is a pact between two or more nations to reduce barriers to imports and exports among them. Under a free trade policy, goods and services can be bought and sold across international border with little or no government tariffs, quotas, subsidies or prohibition to inhibit their exchange.

Answer 152

Samajik Adhikarita Smriti Divas is celebrated on March 20 every year.

Answer 153

Time Deposits are the most important component of the liabilities of commercial banks and after that Saving deposits and Demands deposits are the important component of the liabilities of commercial banks in India.

Answer 154

Ans. (c) The Uruguay round was the 8th round of multilateral trade negotiations conducted within the framework of the GATT (General Agreement on Tariffs and Trade), spanning from 1986 to 1993 and embracing 123 countries as ‘contracting parties’. The Uruguay round led to the creation of the World Trade Organization (WTO).

Answer 155

In April of 1968, 30 people of 10 countries including scientists, educators, economists, humanists, industrialists and government officials met at the Accademia dei Lincei in Rome. "The Club of Rome" was born from this meeting as an informal organization. The concept of 'Limit to Growth' was propounded by the Club of Rome. ‘The Limits to Growth’ report was published in 1972 and its computer simulations suggested that economic growth could not continue indefinitely because of resource depletio

Answer 156

y matched lists are as follows : Bhilai – Chhattisgarh Bokaro – Jharkhand Durgapur – Odisha Rourkela – West Bengal

Answer 157

Suresh Tendulkar Committee computed new poverty lines for rural and urban areas of each State based on the uniform poverty line consumption basket. These poverty lines would vary from State to State because of inter-state price differentials of consumer goods and services included in the poverty line basket. Hence, in a given year in India, official poverty lines are higher in some State than in others because price levels vary from State to State.

Answer 158

According to Companies Act 2013, a company that is limited by shares refers to a company that has the liability of the members (shareholders) limited by such an amount that is unpaid on their respectively held shares. The company can enact this liability while the company is in existence or as it is ending. When incorporating a company limited by shares, the total share capital consists of all of the shares held by each member at incorporation. Those shares can either be : fully paid; partly paid; or unpaid. Partly paid or unpaid shares are shares where a member is due to pay the company. In contrast, fully paid shares are where the full value of the shares have been paid to the company. In companies limited by shares, the liability of members is limited to any unpaid amount of shares that they hold. If a member has fully paid for their shares, they should have no further liabilities as a member

Answer 159

According to the study conducted by the Planning Commission on employment generation during the 8th Five Year Plan (1992-97), the employment growth rate of organized sector during the first two years of this plan was recorded 0.36 percent as against the targeted 2.6 percent. The annual employment growth rate remained well below the target set for the remaining years of the 8th Plan period as well. The situation remained the same during the 9th Five Year Plan also. It was also concluded from many other studies that there was economic growth in India in the post liberalization period, but there was no increase in employment with it. It was observed that the 1990s practically witnessed jobless growth in the organized manufacturing sector. Employment growth as a whole, had declined to around 1% during 1994- 2000 from a steady growth rate of around 2% during period 1960 to 1990. Thus, the decade of 1991-2000 deserves to be called the 'decade of jobless growth' in India. 142. 'Twenty Point Economic Programme' was

Answer 160

(a) Consumer Price Index-Combined (CPI-C

Answer 161

All the factors mentioned in the above question were responsible for slow growth in Real Per Capita Income of India during the question period. But at present there is sufficient availability of foreign exchange in India. Thus in the current scenario option (b) will be the correct answer

Answer 162

Ans. (d) The Government of India launched a flagship scheme called Pradhan Mantri Mudra Yojana (PMMY) on 8th April, 2015 to extend affordable loans to micro and small enterprises to cater to their funding needs. There are three types of Mudra loans depending on the loan amount : (i) Shishu–Loans sanctioned under the PMMY scheme up to Rs. 50,000. (ii) Kishor–Loans sanctioned under the PMMY scheme from Rs. 50,001 up to Rs. 5,00,000. (iii) Tarun–Loans sanctioned under the PMMY scheme from Rs. 5,00,001 up to Rs.10,00,000

Answer 163

A Participatory Note (P-note or PN) is an instrument issued by a registered Foreign Institution Investor (FII) to an overseas investor who wishes to invest in Indian stock markets without registering themselves with the market regulator SEBI. These notes are a unique Indian invention started in 2000 by SEBI to enable foreign corporates and high networth investors enter the Indian market without having to go through the process of registering as FII.

Answer 164

According to the C. Rangarajan Committee on Financial Inclusion, financial inclusion is the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost. Low income, illiteracy and lack of bank’s branches-all of these are hindrances in the process of financial inclusio

Answer 165

The correct match of List-1 and List-2 is as follows : 1 st Plan (1951-56) – Community Development (1952) 2 nd Plan (1956-61) – Rapid Industrialization 3 rd Plan (1961-66) – Expansion of basic industries 4 th Plan (1969-74) – Achievement of self-reliance and growth with stability 5 th Plan (1974-79) – Minimum needs programme

Answer 166

Balance of Trade (BoT) is the difference between the value of exports and value of imports of goods of a country in a given period of time. BoT is said to be in balance when exports of goods are equal to the imports of goods. Surplus BoT or trade surplus will arise if country exports more goods than what it imports. Whereas, Deficit BoT or Trade deficit will arise if a country imports more goods than what it exports. Trade balance includes only visible items, while current account of Balance of Payments (BoP) includes both visibile and non-visible items.

Answer 167

International Development Association (IDA) was established on 24 September, 1960. IDA is a member of the World Bank which offers concessional loans and grants to the world’s poorest countries. IDA aims to reduce poverty by providing zero to low interest loans (called ‘credits’) and grants for programs that boost economic growth, reduce inequalities and improve people’s living conditions.

Answer 168

Union Government had launched Pradhan Mantri Aawas Yojana (PMAY) in June, 2015 with an aim to provide ‘Housing for All’ by the year 2022. PMAY is an initiative by the Government of India in which affordable housing will be provided to the poor. It has two components : Pradhan Mantri Awas Yojana (Urban) for the urban poor and Pradhan Mantri Awas Yojana (Gramin) for the rural poor. This scheme is converged with other schemes to ensure houses have a toilet, Soubhagya Yojana electricity connection, Ujjwala Yojana LPG connection, access to drinking water and Jan Dhan banking facilities etc.

Answer 169

Union Government had launched Pradhan Mantri Aawas Yojana (PMAY) in June, 2015 with an aim to provide ‘Housing for All’ by the year 2022. PMAY is an initiative by the Government of India in which affordable housing will be provided to the poor. It has two components : Pradhan Mantri Awas Yojana (Urban) for the urban poor and Pradhan Mantri Awas Yojana (Gramin) for the rural poor. This scheme is converged with other schemes to ensure houses have a toilet, Soubhagya Yojana electricity connection, Ujjwala Yojana LPG connection, access to drinking water and Jan Dhan banking facilities etc.

Answer 170

Statutory Liquidity Ratio or SLR is a minimum percentage of deposits that a commercial bank has to maintain in the form of liquid cash, gold or other securities. It is basically the reserve requirement that banks are expected to keep before offering credit to customers. These are not reserved with the Reserve Bank of India (RBI), but with banks themselves. The SLR is fixed by the RBI. CRR (Cash Reserve Ratio) and SLR have been the traditional tools of the central bank’s monetary policy to control credit growth, flow of liquidity and inflation in the economy. The SLR was prescribed by Section 24 (2A) of Banking Regulation Act, 1949. The government uses the SLR to regulate inflation and liquidity. Increasing the SLR will control inflation in the economy while decreasing it will cause growth in the economy. Although, the SLR is a monetary policy instrument of RBI, it is important for the government to make its debt management programme successful. SLR has helped the government to sell its securities or debt instruments to banks. Most of the banks will be keeping their SLR in the form of government securities as it will earn them an interest income. Cash Reserve Ratio is the percentage of the deposit (NDTL : Net Demand and Time Liabilities) that a bank has to keep with the RBI. CRR is kept in the form of cash and that also with the RBI. No interest is paid on such reserves. On the other hand, SLR is the percentage of deposit that the banks have to keep as liquid assets in their own vault. The CRR is a more active and useful monetary policy tool compared to the SLR. Usually, the RBI changes CRR to manage liquidity in the economy

Answer 171

Self Help Groups (SHGs) – Bank Linkage Programme was started by the NABARD in 1992 with an aim to provide shortterm finance. The programme is implemented by Commercial Banks, Regional Rural Banks (RRBs) and Co-operative Banks. NABARD does not implement this programme

Answer 172

UNSC stands for – United Nations Security Council. The UNSC is one of the six principal organs of the United Nations. It is charged with ensuring international peace and security, recommending the admission of new UN members to the General Assembly, and approving any changes to the UN Charter. It has 5 permanent and 10 non-permanent members. The five permanent members of UNSC are : China, US, France, Russia and the United Kingdom. The remaining 10 members are elected on a regional basis to serve a term of two year

Answer 173

UNSC stands for – United Nations Security Council. The UNSC is one of the six principal organs of the United Nations. It is charged with ensuring international peace and security, recommending the admission of new UN members to the General Assembly, and approving any changes to the UN Charter. It has 5 permanent and 10 non-permanent members. The five permanent members of UNSC are : China, US, France, Russia and the United Kingdom. The remaining 10 members are elected on a regional basis to serve a term of two year

Answer 174

(c) 1, 2, 3 and 4

Answer 175

The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 was enacted in August, 2003. It became effective from 5 July 2004 (date of commencement). The FRBM Act, 2003 sets a target for the Government to establish financial discipline in the economy, improve the management of public funds, reduce the fiscal deficit and improved macroeconomic management by moving towards a balanced budget and strengthen financial prudence.

Answer 176

The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 was enacted in August, 2003. It became effective from 5 July 2004 (date of commencement). The FRBM Act, 2003 sets a target for the Government to establish financial discipline in the economy, improve the management of public funds, reduce the fiscal deficit and improved macroeconomic management by moving towards a balanced budget and strengthen financial prudence.

Answer 177

a given time period if both the prices as well as monetary income gets twice then there is no change in the real income because increased prices will be balanced by the increased income and vice versa. It will not have any effect on the real income

Answer 178

Public debt is the total liabilities of the central government contracted against the Consolidated Fund of India. It is of 2 types – Internal debt and External debt. Internal debt is categorized into marketable and non-marketable securities. Marketable government securities include G-secs and T-bills issued through auction. Non-marketable securities include intermediate treasury bills issued to state governments, special securities issued to RBI among others. Hence option (d) is the correct answer.

Answer 179

Public debt is the total liabilities of the central government contracted against the Consolidated Fund of India. It is of 2 types – Internal debt and External debt. Internal debt is categorized into marketable and non-marketable securities. Marketable government securities include G-secs and T-bills issued through auction. Non-marketable securities include intermediate treasury bills issued to state governments, special securities issued to RBI among others. Hence option (d) is the correct answer.

Answer 180

Ans. (d) The correct match of the list I and list II is as follows – Economic Development – Constructive change Economic growth – Gross Domestic Product Sustainable Development – Environment Quality of life – Health

Answer 181

The Integrated Rural Development Programme (IRDP) was launched in 1978-79 (during the Seventh Plan) in order to deal with the dimensions of rural poverty in the country. The programme covered small and marginal farmers, agricultural workers and landless labourers and rural craftsmen and artisans and virtually all the families of about 5 persons with an annual income level below Rs. 3500. The main aim of IRDP was to raise the levels of the BPL families in the rural areas above the poverty line on a lasting basis by giving them income generating assets and access to credit and other inputs.

Answer 182

The development of the concept of ‘Global Village’ is based on transport and communication development. This term was coined by the Canadian media theorist Marshall McLuhan. The term ‘Global Village’ describes the phenomenon of the entire world becoming more interconnected as the result of the propagation of media technologies and transport and communication development throughout the world. 7. According to Gartner,

Answer 183

Ans. (c) Industrial Policy, 1991 was criticized on various points. Some of them are as follows : (i) Ambiguous Development Policy : In this context it was said that, there is no clear policy for weak industries. (ii) Threat of global competition : In this context it was said that, Indian companies are compelled to compete with multinational corporations because of liberalization. (iii) Limit of Foreign Investment : In this context, concessions and incentives given for promotion to foreign investment is being criticized. Therefore option (c) is the correct answer.

Answer 184

Amartya Sen is associated with welfare economics. According to him the main objective of economic development is human development. Due to this perception Amartya Sen has suggested the statement 2, 3 and 4 mentioned in the question for the Indian economy

Answer 185

‘Financial Inclusion’ is a method of offering banking and financial services to individuals. It aims to include everybody in society by giving them basic financial services regardless of their income or savings. It focuses on providing financial solutions to the economically underprivileged. Hence all of the given statements are correct and option (d) is the correct answer

Answer 186

National Stock Exchange of India was set up in November, 1992 on the recommendation of Manohar J. Pherwani Committee. The promoters of NSE of India includes IDBI, SBI, IFCI, LIC, GIC, IDFC and Government of India

Answer 187

The Cooperation Council for the Arab States of the Gulf, originally known as the Gulf Cooperation Council (GCC) is a regional political and economic intergovernmental union, which was established in 1981. Its members are : Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). It is headquartered in Riyadh (Saudi Arabi

Answer 188

During Eleventh Five Year Plan, India has achieved the maximum per-capita GDP growth rate. The Eleventh Five Year Plan envisaged that with a target of 9% GDP growth, per-capita GDP would grow at about 7.6% per year to double in less than ten years.

Answer 189

Non-financial debt consists of credit instruments issued by government entities, households and businesses that are not covered in the financial sector. Hence, statement (1), (2) and (3) all are correct.

Answer 190

Actuaries is related to insurance sector. A business professional who deals with risk assessment, uncertainty and estimation of premium etc. for an insurance business is called an actuary.

Answer 191

(a) 1 and 3 only

Answer 192

Ans. (d) The Global Gender Gap Index is an index designed to measure gender inequalities. This index was first published in 2006 in The Global Gender Gap Report by the World Economic Forum. This index examines four overall parameters (with fourteen variables) of inequality between men and women in different economies. These parameters are : (i) Economic participation and opportunity (ii) Educational attainment (iii) Political empowerment (iv) Health and survival

Answer 193

M. Visvesvaraya authored the book ‘Planned Economy for India’. He was the first to advocate the idea of planning for India. In this book, he proposed a ten-year plan with the aim of doubling the income of the country. His main emphasis was on industrialization so as to reduce the population's dependent on agricultu

Answer 194

India, Consumer Price Index for Industrial Workers (CPIIW) is used for tracking inflation and for fixing dearness allowances (DA) of employees and industrial workers.

Answer 195

India, Consumer Price Index for Industrial Workers (CPIIW) is used for tracking inflation and for fixing dearness allowances (DA) of employees and industrial workers.

Answer 196

Market is the place, where commodities and services are purchased and sold. The buying and selling of commodities and services are occured on the basis of production cost, which is called commodities or services price. So, for the existence of a market, prices are indispensable.

Answer 197

(c) (A), (B) and (C)

Answer 198

Rangarajan Committee

Answer 199

(a) Rural society (more population in villages), complex society (ethnic, linguistic, religious and caste divisions), traditional society, multiculturalism etc. are the main features of Indian social structure, while poverty is part of the socio-economic structure

Answer 200

Ans. (c) Reducing the rate of interest is a measure of expansionary monetary policy and it is not a method to control inflation. Inflation can be controlled by a contractionary monetary policy which is a common method of managing inflation. The aim of contractionary policy is to reduce the supply of money within the economy by lowering the prices of bonds and rising the interest rates. Thus consumption falls, prices fall and inflation slows down. Measures to control inflation are as follows : 1. Monetary Measures : Monetary measures aim to reduce monetary income. • Credit control • Demonitization of currency • Issue of new currency 2. Fiscal Measures : • Reduction in unnecessary expenditure • Increase in Taxes • Increase in Savings • Surplus Budget • Public deb Other Measures • To increase production • Rational wage policy • Price control • Rationing

Answer 201

Ans. (b) Masala Bonds are bonds through which Indian entities can raise money from foreign markets in rupees, and not in foreign currency. Masala Bonds are rupee-denominated borrowings issued by Indian entities in overseas market. The objective of Masala Bonds is to fund infrastructure projects in India, fuel internal growth via borrowing and internationalize the Indian currency. The issuer of these bonds is shielded against the risk of currency fluctuations, typically associated with borrowing in Indian currency.

Answer 202

Low share of labour in Gross National Product is due to low wages as compared to prices. Price rise is an important characteristics of Indian economy due to which if there is an increase in wages then also the resulting profit will be low

Answer 203

(a) The term 'paper gold' refers to Special Drawing Rights (SDR) of IMF.The SDR is an international reserve asset that member countries can add to their foreign currency and gold reserves and use for payments requiring foreign exchange. It refers to the assets transferred by the IMF to its member countries as lending. It is the currency (unit of account) of the IMF and due to its acceptability, it is referred as paper gold

Answer 204

Small and medium industrie

Answer 205

Fourth Five Year Plan (1969-74), a growth centre approach was introduced with the objective of removing regional disparities. Although it was started in the 4th Plan, it was given special emphasis during the 5th Plan. Resource based programmes, problem based programmes, target group approach, incentive approach and wide area approach etc. were the components of growth centre approach

Answer 206

After Independence, India’s first Industrial Policy was announced by Dr. Shyama Prasad Mukherjee, the then Minister of Industry on April 6th 1948. This outlined the approach to industrial growth and development. It emphasized the importance to the economy of securing a continuous increase in production and ensuring its equitable distribution. It made clear that India is going to have a Mixed Economic Model

Answer 207

After Independence, India’s first Industrial Policy was announced by Dr. Shyama Prasad Mukherjee, the then Minister of Industry on April 6th 1948. This outlined the approach to industrial growth and development. It emphasized the importance to the economy of securing a continuous increase in production and ensuring its equitable distribution. It made clear that India is going to have a Mixed Economic Model

Answer 208

Ans. (d) The first World Summit for Social Development (WSSD) under the aegis of UNESCO was held in March, 1995 in Copenhagen. At WSSD, Governments reached a new consensus on the need to put people at the centre of developmen

Answer 209

Bottleneck inflation is the inflation that takes place when supply falls drastically while demand remains at the same level. This creates excess demand in the economy as the supply cannot match it and thus results in rising of prices. Such situations arise due to supply-side accidents, hazards, mismanagement or inefficient distribution. The government faces a tough time in this situation of inflation. Hence, both Assertion and Reason are true and Reason is the correct explanation of Assertion.

Answer 210

Bottleneck inflation is the inflation that takes place when supply falls drastically while demand remains at the same level. This creates excess demand in the economy as the supply cannot match it and thus results in rising of prices. Such situations arise due to supply-side accidents, hazards, mismanagement or inefficient distribution. The government faces a tough time in this situation of inflation. Hence, both Assertion and Reason are true and Reason is the correct explanation of Assertion.

Answer 211

Ans. (a) The excess of Government's total expenditure (both revenue and capital) over total receipts (both revenue and capital) constitutes budget deficit. From the 1997-98 Budget, the practice of showing budget deficit has been discontinued in India. The excess of Government's revenue expenditure over revenue receipts constitutes revenue deficit. The difference between the total expenditure of Government by way of revenue, capital and loans net of repayments on the one hand and revenue receipts of Government and capital receipts which are not in the nature of borrowing but which accrue to Government on the other, constitutes gross fiscal deficit. Gross primary deficit is gross fiscal deficit reduced by the gross interest payments. Note : In the Budget documents 'gross fiscal deficit' and 'gross primary deficit' have been referred to in abbreviated form 'fiscal deficit' and 'primary deficit', respectively. In short, Budget deficit = Total expenditure – Total receipts Revenue deficit = Revenue expenditure – Revenue receipts Fiscal deficit = Total expenditure – Total income / revenue (Revenue receipts + Non-debt creating capital receipt) = Total expenditure – [Total receipts less borrowings (debt and other liabilities)] = Budget deficit + Internal and external borrowings Primary deficit = Fiscal deficit – Interest paymen

Answer 212

The execution of stalled productive projects can be proved to be most helpful in attaining the growth rate of 8% or more in near future in India. However other factors like implementation of Goods and Services Tax, skill development of labour force and easing the process of doing business can also result in higher growth in long-term

Answer 213

The execution of stalled productive projects can be proved to be most helpful in attaining the growth rate of 8% or more in near future in India. However other factors like implementation of Goods and Services Tax, skill development of labour force and easing the process of doing business can also result in higher growth in long-term

Answer 214

Ans. (c) The Special Economic Zone (SEZ) Act, 2005 was passed by Parliament in May, 2005 which received Presidential assent on the 23rd June, 2005. The SEZ Act, 2005, supported by SEZ Rules, came into effect on 10th February, 2006, providing drastic simplification of procedures and single window clearance on matters relating to Central as well as State Governments. The main objectives of the SEZ Act are : (1) Generation of additional economic activity (2) Promotion of exports of goods and services (3) Promotion of investment from domestic and foreign sources (4) Creation of employment opportunities (5). Development of infrastructure facilities

Answer 215

TRYSEM : Training of Rural Youth for Self-Employment SJRY : Swarna Jayanti Rozgar Yojana OGL : Open General License FOB : Free on Board, a value determined word, which is related to trade WPI : Whole-sale Price Index CPI : Consumer Price Index CRR : Cash Reserve Ratio SLR : Statutory Liquidity Ratio Hence, option (a) is the correct answe

Answer 216

Eleventh Five Year Plan was aimed ‘Towards Faster and More Inclusive Growth'. The duration of 11th Five Year Plan was 2007-12

Answer 217

A fiscal stimulus is a package comprising tax rebates and incentives. It is used by the government to stimulate the economy and prevent the country from a financial crisis. A fiscal stimulus package of tax rebates and incentives boosts spending. As spending increases demand, it creates a situation where employment rises. This, in turn, leads to a rise in income, which proportionately boosts spending. As this continues, the economy recovers from collapse

Answer 218

A fiscal stimulus is a package comprising tax rebates and incentives. It is used by the government to stimulate the economy and prevent the country from a financial crisis. A fiscal stimulus package of tax rebates and incentives boosts spending. As spending increases demand, it creates a situation where employment rises. This, in turn, leads to a rise in income, which proportionately boosts spending. As this continues, the economy recovers from collapse

Answer 219

State Governments’ transactions are carried out by RBI in terms of the agreement entered into with the State Governments in terms of Section 21A of the RBI Act, 1934. As of now, such agreements exist between RBI and all the State Governments except Government of Sikkim. Thus, the legal provisions vest Reserve Bank of India with both the right and obligation to function a baker to all State Governments (except Government of Sikkim).

Answer 220

State Governments’ transactions are carried out by RBI in terms of the agreement entered into with the State Governments in terms of Section 21A of the RBI Act, 1934. As of now, such agreements exist between RBI and all the State Governments except Government of Sikkim. Thus, the legal provisions vest Reserve Bank of India with both the right and obligation to function a baker to all State Governments (except Government of Sikkim).

Answer 221

b) Quantitative techniques of credit control

Answer 222

Bhilai Steel Plant was set up with the help of the USSR (Now Russian Federation) during the Second Five Year Plan. Its first blast furnace commissioned on 4th February, 1959. It is located in Bhilai, 40 kms West of Raipur, the capital city of Chhattisgarh. Eleven times winner of PriMinister’s Trophy for Best Integrated Steel Plant in the country, Bhilai Steel Plant is India’s sole producer & supplier of world class rails for Indian Railways including world's longest 130 metre rails in single piece and 260 metre long rail welded panels, and a major producer of large variety of wide and heavy steel plates and structural steel. Bhilai Steel Plant has been the flagship integrated steel plant unit of the Central Public Sector steel company, the Steel Authority of India Limited (SAIL

Answer 223

Bhilai Steel Plant was set up with the help of the USSR (Now Russian Federation) during the Second Five Year Plan. Its first blast furnace commissioned on 4th February, 1959. It is located in Bhilai, 40 kms West of Raipur, the capital city of Chhattisgarh. Eleven times winner of PriMinister’s Trophy for Best Integrated Steel Plant in the country, Bhilai Steel Plant is India’s sole producer & supplier of world class rails for Indian Railways including world's longest 130 metre rails in single piece and 260 metre long rail welded panels, and a major producer of large variety of wide and heavy steel plates and structural steel. Bhilai Steel Plant has been the flagship integrated steel plant unit of the Central Public Sector steel company, the Steel Authority of India Limited (SAIL

Answer 224

Foreign Exchange Regulation Act (FERA), 1973 was replaced by the Foreign Exchange Management Act (FEMA), 1999 on June 1, 2000. Under FEMA, violation of foreign exchange rules has ceased to be a criminal offence. If there was a violation of FEMA rules, then it is considered as civil offence instead of criminal offence as under FERA Act. Apart from removing criminal prosecution for non-compliance of foreign exchange norms, FEMA also introduced a sunset clause of two years till 31st May, 2002 to enable Enforcement Directorate to complete the Investigation of pending issues. Hence option (c) is the correct answer.

Answer 225

Redistribution of income and wealth are respectively the transfer of income and wealth (including physical property) from some individuals to others by means of taxation, monetary policies, welfare policies, public services, land reforms etc. This can be achieved with a combination of progressive taxation and progressive expenditure. A progressive tax is one where the average tax burden increases with income. It applies higher tax rates to higher levels oincome. High-income families pay a disproportionate share of the tax burden, while low-and middle-income taxpayers shoulder a relatively small tax burden. Regarding the distributive impact of public expenditure, the principle of maximum social welfare should be the underlying criteria of public spending. Therefore, progressive public expenditure (like free medical aid, free education, subsidized houses etc. to poors) is the best antidote to reduce income inequality existing in the society

Answer 226

buyer's market refers to a situation where supply exceeds demand, and purchasers have an advantage over sellers in price negotiations.

Answer 227

Ans. (d) The Telecom Regulatory Authority of India (TRAI) was established with effect from 20 February, 1997 by an Act of Parliament (TRAI Act, 1997), to regulate telecom services, including fixation/revision of tariffs for telecom services which were earlier vested in the Central Government. TRAI’s mission is to create and nurture conditions for growth of telecommunications in the country in a manner and at a pace which will enable India to play a leading role in emerging global information society. One of the main objectives of TRAI is to provide a fair and transparent policy environment which promotes a level playing field and facilitates fair competition.

Answer 228

The Agreement on Agriculture (AoA) is an international treaty of the World Trade Organization. It was negotiated during the Uruguay Round of GATT, and entered into force with the establishment of the WTO on 1 January, 1995. Antidumping and compensatory duties were not included in the three pillars of Agreement on Agriculture under the World Trade Organization. The three main pillars of Agreement on Agriculture are : (i) Market access (ii) Domestic support (iii) Export competition (reduction of export subsidies

Answer 229

The Agreement on Agriculture (AoA) is an international treaty of the World Trade Organization. It was negotiated during the Uruguay Round of GATT, and entered into force with the establishment of the WTO on 1 January, 1995. Antidumping and compensatory duties were not included in the three pillars of Agreement on Agriculture under the World Trade Organization. The three main pillars of Agreement on Agriculture are : (i) Market access (ii) Domestic support (iii) Export competition (reduction of export subsidies

Answer 230

Ans. (b) National Horticulture Mission (NHM) is a centrally sponsored scheme. It was started (in May, 2005) during the 10th Five Year Plan. At present, NHM is one of the sub-schemes of Mission for Integrated Development of Horticulture (MIDH), which is being implemented by State Horticulture Missions (SHM) in selected districts of 18 States and 5 Union Territories. MIDH was launched in 2014-15 during 12th Five Year Pl

Answer 231

The Lorenz curve is a graphical representation of income inequality developed by American economist Dr. Max O. Lorenz in 1905. The Lorenz curve plots percentiles of the population on the horizontal axis according to income or wealth and cumulative income or wealth percentage on the vertical axis. It shows the proportion of income earned by any given percentage of population. The straight line at the 45° angle shows perfectly equal income distribution, while curve line shows the actual distribution of income. The extent to which the curve sags below perfect equality (diagonal) line indicates the degree of inequality of distribution.

Eco 3 Flashcards

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