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India economy
India economy
India economy
India economy
India economy
India economy
India economy
India economy
India economy
India economy
India economy
India economy
India economy
India economy
India economy
India economy
India economy
India economy
India economy
India economy
India economy
India economy
India economy
India economy
India economy
India economy
India economy
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India economy

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  • 1. Understanding Indian Economy (a) Technological research The economy of India is currently the world’s (b) Population growthfourth largest in terms of real GDP (purchasing power (c) Diversification of Industryparity) after the USA, China and Japan and the second (d) Increased savingfastest growing major economy in the world after Ans : (b) Population growthChina.  The socialist pattern aimed at by our planning India’s annual growth rate is above 8% while that comes through of China is about 10%. (a) a closed economy (b) mixed economy India is a developing country and our economy (c) public sector (d) open economy Ans : (b) mixed economy is a mixed economy.  Which of the following is not a characteristic of In a mixed economy the public sector co-exists Indian economy? with the private sector. (a) High rate of population growth Dadabhai Naoroji is known as the (b) Extensive disguised unemployment Father of Indian Politics and Eco- (c) Low level of adult literacy nomics. He is also called the ‘Grand (d) High level of exports Old Man of India’. Ans: (d) High level of exports In his book Poverty and Un Brit- Naoroji ish Rule in India he describes his Basic Features of theory, i.e. the economic exploitation of India by Indian Economy the British. His theory is popularly called the Eco- (i) Low per capita income. nomic Drain Theory. (ii) Inequalities in income distribution. Brain drain means talented men leaving their own (iii) Predominance of agriculture. country because of lack of opportunities and facili- (More than 2/3rd of India’s working population ties and going to foreign countries for better condi- is engaged in agriculture. But in USA only 2% of tions. the working population is engaged in agriculture.) Which of the following does not contribute to (iv) Rapidly growing population. the development in India? (v) Chronic unemployment260
  • 2. (A person is considered employed if he / she Five Year Plans works for 273 days of a year for eight hours every  Father of Indian Planning : M. Visweswarayya. day.)  M. Visveswarayya, in his book, Planned Economy(vi) Low rate of capital formation. of India, advocated the need of economic plan-(vii) Dualistic Nature of Economy (features of a ning in India. modern economy, as well as traditional).  The concept of planning is based on the Russian(viii) Mixed Economy model initiated by Joseph Stalin.(ix) Follows Labour Intensive Techniques.  The best way to describe the overall aim of In- dian planning is National Income (a) achievement of industrial development (tZiob hcp-am-w) (b) growth with justice The national income is the sum total of the value (c) socialism of all the final goods produced and services of the (d) regional prosperity residents of the country in an accounting year. Ans : (b) growth with justice For comparison purposes the national income is  The Planning Commission was set up in 1950 with measured at constant prices with a base year. The Jawaharlal Nehru as its first Chairman. base year at present is now 1993 - 94 and current  The Planning Commission is only an advisory prices are converted to the prices of the base year body according to 39th article of constitution. (Base year was originally 1960-61 but later peri-  The National Development Council (NDC) was odically revised.) set up in August 6, 1952. It gives final approval CSO : Central Statistical Organisation is under to Plans in India. The Prime Minister is its Chair- the Department of Statistics. Govt. of India is re- man. All the Chief Ministers of the States, Lt. Gov- sponsible for estimating the national income. ernors of Union Territories, all Union Cabinet Min- CSO was founded by Prof. Mahalanobis. isters and other Planning Commission members are CSO is assisted by the National Sample Survey its members. . Organisation (NSSO) in estimating National In-  The main function of the National Development come. Council in India is to Dadabhai Naoroji was the first to calculate the national income of India. Gross Domestic Product (GDP) is the money New Economic Policy (NEP) value of final goods and services produced in the  LPG - ie. Liberalisation Privatisation & domestic territory of a country during the ac- Globalisation are the three steps in NEP.’ counting year.  Globalisation of Indian Economy means that In India Gross Domestic Product (GDP) is larger the Indian Economy is having minimum pos- than national income because net factor income sible restrictions on economic relations with from abroad is negative, i.e. foreign payment is other countries. larger than the foreign receipt.  Privatisation is the forecast of the Removal of Net National Product (NNP) at market prices = state interference in the economic programme. Gross National Product at Market Prices - Depre-  The New Economic Liberalisation Policy was ciation launched in India in July 1991. Depreciation is the losses arised due to wear and  LERMS - Liberalisation Exchange Rate Money tear and technological obsolescence. System. Net National Product at factor cost NNP (fc) =  Devaluing the Indian Currency is considered NNP at market prices - Net Indirect taxes. to a step towards liberalisation.  Under LERMS 16% of the foreign exchange Net National Product at factor cost is the actual reserve could be converted into the market. National income. 261
  • 3. (a) promote national integration The First Plan (1951-56) (b) review the working of the National Plan from  It gave priority to agricultural development. time to time  Community Development Programme (CDP), and (c) develop villages Family Planning Programme (FPP) were launched (d) None of the above in 1952. Ans: (b) review the working of the National  National Extension Service (NES) was launched Plan from time to time in 1953 during the first five year plan period. On which of the following did the Mahalanobis  Important multipurpose projects in India like Model lay greater emphasis for planned develop- Bhakranangal, Hirakud and Damodar Valley ment in India after Independence? Projects were also launched during this plan period. (a) Agriculture  The first five year-plan was a successful one. (b) Development of heavy industries (c) Generation of power The Second Plan (1956-61) (d) Science and Technology  It gave priority to industrial development. Ans: (d) Development of heavy industries  The three important steel plants of India were built during this plan period. They are Durgapur (West Bengal) with British help, Bhilai (Chhattisgarh) with Russian help and Rourkela (Orissa) with Poverty German help. According to NSSO report, the people living The Third Plan (1961-66)below poverty line in India during (1999-2000) is26.10%.  It failed because of the Chinese aggression in In Kerala 12.72% people live below poverty line 1962 and the conflict with Pakistan in 1965. (1999-2000).  A plan holiday was declared during 1966-1969 due Punjab has the least percentage of people to the conflict with Pakistan. living below poverty line among the states (6.16%). The Fourth Plan (1969-74) Orissa has the highest number of poor people.  It also failed due to the Indo-Pak war of 1971. About 47.15% live below poverty line. Growth with stability was the objective of the plan. {Kma- {]- tZ- i-§-fn {]Xn-Znw HcmÄ¡v 2400 Itemdn DuÀÖw tSm³ Bh- iy- amb Blmcw tSm- pÅ The Fifth Plan (1974-79) km¼- ¯nItijn- bmWv Zmcn- {Zy- tc- J- bpsS am- Z-WvUw.  It is associated with Indira Gandhis slogan of CXnv Xmsg-bp- Å- hÀ Zmcn-{Zy-tc- J¡v Xmsg hcp-¶p. “Garibi hatao” (remove poverty). K- c-§-fn CXv 2100 Itemdn DuÀÖ-amWv . C´y-bnse Zmcn-{Zy-tcJm nÀ®b I½nän : e¡-  Indira Gandhi launched the 20 point programmes Sm-hmem I½nän during this plan. Self sufficiency in food grains was the major achievement of this Plan. New parameters for identifying  The Plan was terminated in 1978 by the Janata BPL (Below Poverty Line) Government, and they started the Rolling Plan. 13 new parameters have been notified by thecentre for defining the category of people living The Sixth Plan (1980-85)Below Poverty Line (BPL) in the country. They are  Elimination of unemployment and poverty wastype of dwelling, clothing, food, hygiene, capacity its objective.to buy commodities, literacy, minimum wages, edu-cation of children, debt, migration and priority for The Seventh Plan (1985-90)assistance. The earlier definition based on food  It also aimed to eliminate poverty and unemploy-calories or annual earning has been scrapped. ment.262
  • 4. Five Year Plans at a Glance 11th Plan (2007-11) National Development Council (NDC) has given First Plan .............................................. 1951-56 final approval for the 11th Plan. The theme of the plan Second Plan ......................................... 1956-61 is ‘towards faster and more inclusive growth’. Third Plan ............................................ 1961-66 The plan aims to achieve a growth rate of 9% in 3 Annual plans-1966-69 (Plan Holiday) the initial years and culminating to a growth target of Fourth Plan .......................................... 1969-74 10% at the end of the plan period. Fifth Plan ............................................. 1974-79 The important highlights of (Plan was terminated in 1978) 11th plan Rolling Plan was introduced in ................... 1978  GDP growth to be increased to 10% by the end of Annual Plan .............................................. 1979 the plan. Sixth Plan ............................................. 1980-85  Farm sector growth to be increased to 4%. Seventh Plan ........................................ 1985-90  Double per capita income by 2016-17. 2 Annual Plans-1990-92  Create 7 crore new jobs. Eighth Plan ........................................... 1992-97 Ninth Plan ......................................... 1997-2002  Reduce educated unemployment rate to below 5%. Tenth Plan ........................................ 2002 -2007  Literacy to be increased to 80%. Eleventh plan ................................... 2007-2011  Infant mortality rate to be reduced to 28 per 1000 births. The 8th plan would not take off due to fast chang-  Maternal mortality rate to be cut to 1 per 1000 ing political situation at the centre. So the new births. government decides that the 8th plan could start  Clean drinking water to all by 2009. in 1992.  A telephone in every village by November 2007. From 1990-92, two Annual Plans.  Broadband connectivity to all Villages by 2011- The Eighth Plan (1992-97) 12. It proposed a growth rate of 5.6% per annum and  Increase forest cover and tree cover by 5%. the energy sector was accorded top priority in  Which of the plan priorities is wrongly matched? the plan allocation. (a) 2nd Five Year Plan : Industry (b) 1st Five Year Plan : Agriculture The Ninth Plan (1997-2002) (c) 6th Five Year Plan : Poverty alleviation It aimed for 6.5% annual growth rate. (d) Ninth Five Year Plan : Growth with equity H¼Xmw ]©- hÂkc ]²-Xn-bpsS hfÀ¨m e£yw (e) All correctly matched 6.5% Bbn-cp-¶p. F¶m tSm³ IgnªXv 5.4% Answer: (e) All correctly matched am{X-am-Wv.  Janata Government introduced the concept of (a) Five Year Plan (b) Rolling Plan The Tenth Plan (2002 - 2007) (c) National Development Council The total outlay envisaged for the 10th plan is Rs. (d) Zero based budgetting19,68,815 crore at 2001-02 prices. Answer: (b) Rolling Plan The plan envisaged rapid growth in labour force  The concept ‘Rolling Plan’ was introduced byover the next decade. The 10th plan aimed at creating Gurnal Myrdal, in his famous book Asian Drama.50 million jobs. Which of the following is true?  The targetted growth rate for 10th plan was (a) Physical and financial plannings are comple- 8% mentary 263
  • 5. Dr. Amartya Sen 1998  km¼-¯nI imkv{X-¯nv tm_Âk-½mw tSnb C´y³ km¼-¯nI imkv{X-Ú-mWv AaÀXy- Ip-amÀ sk³. He has researched into behavioural foun- dations of economic theory and development econom- ics.  The incident which influenced Amartya Sen in In- dia was Bengal Famine.  Year : 1943  Death Toll due to famine: 1.5 million persons. Welfare Economics F¶ {]tXyI {_m©n Ct±lw kvs]jy-ssekv sNbvXn-cn-¡p-¶p. Cambridge-se {Snnän tImtf-Pnse amÌ-dmbncp-¶p. Ct¸mÄ Ata-cn-¡-bnse lmÀhmÀUv kÀÆ-I-em-i-me-bnemWv. [-X-Xz-im- kv{X-¯nv tm_ k½mw (1998) e`n-¡p¶ BZy Gjy-¡m-c-mWv Ct±lw. 1999 `mcXv cXv e`n-¨p. 2001  tIcf bqWn-thgvknän D. Litt ÂIn BZ-cn-¨p.  Development as Freedom, Poverty and Famine, An Argumentative Indian F¶nh Ct±-l-¯nsâ ]pkvX-I-§fm-Wv. (b) Physical and financial plannings are equally  At present the share of service sector in the important Indian economy at present is 42%. (c) Financial planning is more important than  The Trickle Down Theory of Development holds physical planning that development spreads downwards through (d) Physical planning is more important than greater demand for labour. financial planning  Discomfort index is a composite of annual infla- Ans: (a) Physical and financial plannings are tion and unemployment rate. complementary A serious effort to tackle the problem of poverty State Planning Board (Kerala) began with the  Deputy Chairman of Planning Commission : (a) First Five Year Plan Dr. Montek Singh Ahluwalia. (b) Second Five Year Plan  Chairman of the State Planning Board: (c) Fourth Five Year Plan Chief Minister (d) Seventh Five Year Plan  State Planning Board was set up in 1967.  Vice Chairman of the State Planning Board: Ans: (c) Fourth Five Year Plan V. Ramachandran The general price level declined during the ——  Perceptive planning refers to long term planning. Plan  Decentralised planning on the basis of Panchayati (a) first (b) second Raj institutions was recommended by Balwant Rai (c) third (d) fourth Mehta Committee. Ans: (a) first The concept of Five Year Plans was adopted from Agriculture in India (a) China (b) Russia  Agriculture is the life blood of Indian Economy. (c) USA (d) Britain  Agriculture sector in India employs about 64% of Ans: (b) Russia the work force, contributes 20% of GDP and At present the rate of saving in India is 21%. accounts for about 18% share of the value of the country’s export.264
  • 6. Green Revolution Green Revolution means sudden increase of 12-þmw [-Imcy I½o-j³ agricultural output, especially wheat in India. The Father of Green Revolution - Norman Borlaug.  Dr. C. Rangarajan is the Chairman of 12th Finance Commission. Borlaug M.S. Swaminathan  RBI KhÀ®-dpw, B{Ôm-{]-tZiv KhÀ®-dp-ambn In India the Borlaug Award is given to agricul- Ct±lw tkh--ap-jvSn-¨n-«p-­v. tural scientists.  BZys¯ Indian Statistical Commission Borlaug Award is given to the best agricultural sNbÀam³ IqSn- bm-bn-cp-¶pDr. C. Rangarajan. scientist in India.  2005-þ2010 Ime-s ¯-tI{µ hnlnXw kwØm-- M.S. Swaminathan is the world renowned Indian §Ä¡v hoXn-¡p-¶-Xn-s-Ip-dn¨v 12-þmw [-Imcy agricultural scientist. I½o-j³ Xocp-am-n-¡pw. He is known as the Father of Indian Green Revolu-  Article 280 of the Constitution provides the appointment of a Finance Commission every tion five year. Greening of the East means spread of green revo-  The chairman of the 11th Finance Commis- lution to non traditional areas of eastern India. sion was Prof. A.M. Khusrau. Which of the following is not true about Green  The 11th Finance Commission recommended Revolution? that the states share of net central revenue (a) It was launched in 1966-67 from divisible pool will be 29.5%, i.e. 0.5% (b) It had substantial impact on wheat and rice more than what recommended by the 10th production only Finance Commission. (c) It created regional disparity in food production  The new name of APC is (d) High Yielding Variety Programme (HYVP) was (a) CACP (b) ICAR associated with Green Revolution (c) REC (d) K&VIC (e) All the above are correct Answer: (a) CACP Answer: (e) All the above are correct  CACP is Commission of Agricultural Costs and A major input emphasized in the present day ag- Prices riculture production  Prices of agricultural products are fixed on the (a) Use of bio fertilizer recommendation of CACP which was established (b) Science based technology in 1965. (c) High yielding variety of seeds  ICAR is Indian Council of Agricultural Research (d) Better land use  REC is Rural Electrification Corporation. It was Ans: (b) Science based technology set up in 1969 Which of the following is the leading export item  Khadi and Village Industries Commission among Indian plantation crops? (K & VIC) was set up in 1957. (a) Coffee (b) Rubber  Irrigation potential of the country increased from (c) Tea (d) Spices 22.6 million hectors in 1950 to 89.56 million hectors Ans: (c) Tea in 1997. 265
  • 7.  Kisan Credit Card Scheme was launched in 1998  Keeping agriculture with livestock is known as India is the largest producer of -------in the world. mixed farming (a) tea (b) milk  In shifting cultivation, place of cultivation is (c) cardamom (d) turmeric shifted for fertility reason. This method is popular (e) All the above among tribals. Answer: (e) All the above  The first agricultural census was conducted in India is also the largest producer of ginger, the country in sugarcane, millet. (a) 1970 (b) 1883 (c) 1988 (d) 1993 India leads in the number of cattle population. Answer (a) 1970 India is the largest exporter of spices.  Leading producer of wheat in India The practice of keeping more than one crop in a (a) Uttar Pradesh (b) Punjab field is called. (c) West Bengal (d) Karnataka (a) rotation of crop (b) mixed farming (c) mixed cropping (d) shifting cultivation Answer: (a) Uttar Pradesh Answer: (c) mixed cropping  Uttar Pradesh is also the leading producer of Crop grown one after the other in different seasons sugarcane. is called rotation of crop.  Wheat per hectare yield (i.e, productivity of wheat) is the highest in Punjab.  West Bengal is the leading producer of rice and s]mXp JP-mhv (Exchequer) jute in India. s]mXp-]Ww kzoI-cn-¡mpw sNe-h-gn-¡mpw `c-  Karnataka leads in the production of coffee, silk W-L-S--bn {]tXyIw hyhØ sNbvXn-«p-­v. and sandal wood CXn-pÅ A[n-Imcw kwØm-§-Ä¡pw tI{µ-  Which of the following types of farming is kÀ¡m-cn-p-ap-­v. popular in India? aq¶v ^­p- IÄ IqSn-tNÀ¶-XmWv C´y-bpsS JP- (a) Individual farming (b) State farming m-hv. The Consolidated Fund of India, the Pub- (c) Co-operative farming (d) All the above lic Account of India and the Contingency Fund Answer: (d) All the above of India. Which of the following leading producer - prod- All revenue received, loans raised and money uct relationship is wrong? received in repayment of loans by the Union (a) Rubber - Malaysia form the Consolidated Fund. (b) Coffee - Brazil No money can be withdrawn from this fund ex- cept under the authority of an Act of Parlia- (c) Coconut - Phillipines ment. (d) Silk - India All other receipts, such as depoists, service Answer: (d) Silk - India funds and remittances go to Public Account.  Leading producer of silk in the world is China. The disbursement of Public Account is not India stands at second place. subjected to the vote of Parliament. The main impact of the Green Revolution has been s]s«-¶p-­m-Ip¶, ap³Iq-«n- Im-Wm³ Ign-bm¯ on km¼-¯nImh-iy-§Ä nÀh-ln-¡m³ th­n-bp- (a) cereals (b) pulses Å-XmWv Contingency Fund (Article 276 (1) of (c) fruits (d) vegetables the Constitution) Ans: (a) cereals C´y-bn tIcfw DÄs¸-sS- bpÅ FÃm kwØm- -§Ä¡pw Cu aq¶v Funds D­v.  Which is India’s most fertile state? At¸mÄ tIcf JP-mhv F¶v ]d-ªm kw (a) Tamil Nadu (b) Kerala Øm-s¯ Consolidated Fund, Public Accounts, (c) Uttar Pradesh (d) Punjab Contingency Fund F¶nh IqSn-tNÀ¶-Xm-Wv. Ans: (d) Punjab266
  • 8. expected to increase 109.11 million hectare in Food Production 2006-07.2004-05 ................................. 210.44 million tonne  Approximately 33% of the irrigated area in India are watered by canals 54% area are watered by2003-04 ................................. 213.46 million tonne wells and 6.2% irrigated by tanks.2002-03 ..................................... 212 million tonne  Rural Infrastructure Development Fund (RIDF) was2001-02 ................................. 211.32 million tonne launched in 1995-96 by NABARD.2000 - 01 ............................... 195.92 million tonne1950 - 51 .................................... 54 million tonne Dairy DevelopmentH¶mw ]©-h-Õ-c-]-²-Xn¡v tijw `t£ymÂ]m-Zw  Unfinished Dream is a book written byGXm­v men-c«n-bn IqSp-X hÀ²n-¨n-«p-­v. C´y- (a) Amrita Patel (b) V. Kurianbn IqSp- X D¸m- Zn- ¸n-¡ p¶ `£y-[ myw (c) M.S. Swaminathan (d) None of theseGXmWv? Answer: (b) V. Kurianþ sÃv or tKmX-¼v. kwibw th­ sÃm-Wv.  Varghese Kurian is known as the2004 þ 05 .............. sÃv ........................... 87.12 an.-S¬ Father of White Revolution.2004 þ 05 .............. tKmX¼v .................... 74.05 an.-S¬  NDDB at Anand in Gujarat was set up in 1965. V. Kurian Which state in India has the smallest farm hold-  The Technology Mission on Dairy ings? Development was launched in 1988. (a) Assam (b) Goa  Kerala State Co-operative Milk Marketing Fed- (c) Sikkim (d) Kerala eration Ltd is located at Thiruvananthapuram.  ICDP is Intensive Cattle Development Project. It Ans: (b) Goa was launched in 1964-65 Targetted annual growth rate of agriculture dur-  India is the largest producer of milk in the world. ing 10th plan period is 4%.  Percentage of protein in Indian milk is as high as But the actual growth is less than 2% during the 4% which make Indian milk one of the best in the period. world. Horticulture, floriculture, fishery, poultry and ani- mal husbandry accounts for 30% of production in agriculture and allied sector. National Horticulture Mission (NHM) was [hf hn¹hw launched in May 2005. (White Revolution) India is the 3rd largest producer of fish and sec-  Gähpw IqSp-X ]m DÂ]m-Zn-¸n-¡p¶ cmPy- ond largest producer of inland fish in the world. amWv C´y 2004þ05þse IW-¡-p-k-cn¨v National Commission on Farmers was set up in 2004 DÂ]m-Zw 91 aney¬ S¬ BWv. to suggest an action plan for farmers and farm sec-  1950þ55þ CXv 17 aney¬ S¬ Bbn-cp¶p. tor with M.S. Swaminathan as its chairman.  Percapita availability of Milk in India is 232 gram/day. (2004-05). Irrigation [h-f-hn-¹-h-¯nv Imc-W-amb kwtbm-PnX In 1950-51, gross irrigated area, as percentage of ]m DZv]m-Z {]{Inbbmb Operation Floodgross cropped area was only 17%. This ratio increased aq¶v L«-§-fm-bmWv S-¸n-em-¡n-b-Xv.to 36% in 1993-94. (a) Operation Flood I - 1970-1981 India’s irrigational potential has increased from (b) Operation Flood II - 1981-1985 22.6 million hectares in 1950-51 to 86.26 in 1996-97 (c) Operation Flood III - 1985-1996 and to 93.95 million hectare in 2001-2002 and is 267
  • 9.  Second largest producer of milk in the world (a) India (b) USA Special Economic Zone (c) Canada (d) Denmark A policy was introduced on April 1, 2000 for Answer: (b) USA setting up Special Economic Zone (SEZ) in the Largest constituent of milk is country with a view to provide an internationally (a) water (b) protein competitive and hussle free environment for ex- (c) fat (d) None of these ports. Units may be set up in SEZ for manufactur- Answer: (a) water ing of goods and rendering of services. Some of the existing Export Processing Zones (EPZ) in- Telecom Revolution cluding one at Kochi were converted to SEZ. Cur- TRAI – Telecom Regulatory Authority of India rently, the country has 15 SEZs. The government DOT – Department of Telecommunications has approved as many as 164 or more SEZs. DOT has been corporatised with effect from A comprehensive Special Economic Zone Act, 1 October 2000 to form Bharat Sanchar Nigam 2005 was passed by the parliament in May 2005. It Limited (BSNL). came into force on February 10, 2006. MTNL – Mahanagar Telephones Nigam Limited. A host of concessions have been allowed to A National Task Force on Information Technol- attract investments and set up SEZs in various ogy and Software Development was formed un- parts of the country. Andra Pradesh, Maharashtra, der the Chairmanship of Jaswant Singh. Haryana and Gujarat leads in proposed SEZ com- Father of Indian IT : Rajeeve Gandhi mitments. Shilpa Shetty Wins T he cute Bollywood film star proved that Indians are more intelligent and smart. She outwitted all her opponents in the British Television Chanal 4 Big Brother Show in January 2007. Jade Goody the British actor has tormented Shilpa with racial insult. In fact it has proved a blessing in disguise. The viewers felt sympathy for Shilpa and voted her the No. 1.268
  • 10. Navaratna On July 4, 1997 The Government identified nine leading, well-performing and high profit making public enterprises as Navaratna Cina Precu Precious Jewels). Later in the same year two more were added to the list. They are Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Ltd (HPCL) Steel Authority of India Ltd. (SAIL), Bharat Heavy Electrical Ltd (BHEL), Oil and Natural Gas Commission (ONGC), Videsh Sanchar Nigam Ltd (VSNL), National Thermal Power Corporation (NTPC) and Indian Petrochemical Corporation Ltd. (IPCL). The Bharat Petroleum Corporation Ltd. (BPCL) Gas Authority of India Ltd. (GAIL), and Mahanagar Tele- phones Nigam Ltd (MTNL). The main aim of establishing the Navaratna is to give autonomy to these industries. Now some of these grants have been disinvested and others are on the line of disinvestment.samss_ hn¹hw as suggested by Abid Hussain Committee in 1997. However, the limit has been brought down to Rs C´y-bn A£cmÀ°-¯n Hcp samss_ 1 crore in July 1998. hn¹hw S-¡p-I-bmWv. Idea, BPL, Air Tel, Tata,  For the tiny unit the investment limit is Rs. 25 BSNL, Reliance, Hutch are the major mobile ser- lakhs. vice providers.  When was the New Liberalised Industrial Policy GSM and CDMA are the two different kinds of announced in India? technologies now available in India. (a) 1989 (b) 1990  GSM- Global System for Mobile Communi- cation. (c) 1991 (d) 1992  CDMA - Code Division Multiple Access. Ans: (c)1991  SIM Cards - Subscriber’s Identy Module  An unorganised industry Cards (a) Sugar (b) Cement (c) Jute (d) Silk Industry in India Ans: (d) Silk The cotton textile industry is the oldest industry  Public Sector consists of those enterprises in in India. which the State owns The largest number of workers are employed in (a) 50 per cent of the capital this industry. (b) 66 per cent of the capital Most of the cotton textile factories are in Maharashtra. (c) 85 per cent of the capital The industrially developed states in India include (d) 100 per cent of the capital Maharashtra, Gujarat, Tamil Nadu, and West Ans: (d) 100 percent of the capital Bengal.  NRIs have invested mainly in which of the fol- Industrially backward states are Rajasthan, Kerala, lowing Industries? Haryana, Orissa, Himachal Pradesh. (a) Film Industry (b) Colleges To remove poverty and to achieve full employ- (c) Finance Companies ment faster industrialisation and greater produc- (d) Hospitals and Real Estates tivity are vital. Ans: (d) Hospitals and real estates Industrialisation means setting up of cottage,  ——— is the largest consumer goods manufac- small scale and large scale industries. turer of India. In industrialisation equal opportunities are to be (a) Hindustan Lever Ltd. given to public, private and joint sectors. (b) Colgate – Palmolive India Ltd. The investment limits being considered for a small (c) Smithkline Beecham Consumer Heatlh Care scale unit is Rs. 3 crore for plant and machinery Ltd. 269
  • 11. (d) Tata India Ltd.  A noticeable feature of our industrial develop- Ans: (a) Hindustan Lever Ltd. ment has been the Almost 99% of the sick units are in the small scale (a) growth of small scale sector sector. (b) establishment of Iron and Steel industries SICA : Sick Industrial Companies Act - 1985 (c) creation of employment opportunities aqe-[ nt£-]-t¯-¡mÄ IqSp-X ISw Ib-dnb (d) growth of public sector hyh-km-b-§-fmWv ]oVnX hyh-km-b-§Ä (Sick Ans: (a) Growth of small scale sector industries)  Joint Sector refers to a partnership between the Omkar Goswami Committee set up for enquir- Government and the private sector. ing about Industrial sickness and corporate re-  The committee appointed to examine the wage - structuring. income price BIFR : The Board for Industrial and Financial Re- Ans: S. Bhoothalingam construction. It was established in May 1987.  The profit and loss of a partnership concern is ]oVnX hyh-km-b-§sf klm-bn-¡phm³ th­n shared among the partners cq]o-I-cn-¨-XmWv BIFR. (a) equally (b) in agreed ratio Which of the following states leads in commerce (c) in capital ratio (d) none of these and industry? Ans: (b) in agreed ratio (a) Maharashtra (b) Tamil Nadu  India’s major export items are (c) Uttar Pradesh (d) West Bengal (a) Handicrafts (b) Tea leaves Ans: (a) Maharashtra (c) Chemical and Engineering Goods (d) All the above Which of the following is at present the largest Ans: (d) All the above power using sector of the Indian economy? (a) Agriculture Industrial Relations (b) Domestic consumers and street lighting  AITUC – All India Trade Union Congress was (c) Industry formed in 1920. CPI bpsS sXmgn-emfn kwL-S-- (d) Transport and communication including rail- bmWv AITUC. ways Ans: (c) Industry Important Economic Facts Sugar Industry can be classified under (a) tiny industry (b) medium industry  RBI does not transact the business of the State (c) Agro-based industry Government of Jammu and Kashmir. (d) None of these  National Renewal Fund (NRF) was instituted for Ans: (c) Agro-based industry the purpose of restructuring and modernisation of industries. Which is the most labour-intensive amongst the  Multifibre agreement deals with textiles. following?  Total Fertility Rate (TFR) in population means (a) Iron and Steel (b) Cotton Textiles the average number of children born to a woman (c) Petroleum (d) Automobiles during her life time. Ans: (b) Cotton Textiles  The unit of valuation known as paper gold is The most important small scale industry of India SDR (Special Drawing Right) is  The labour participation of women in India is (a) coir industry 20% (b) matchbox Industry  Specific schemes for employment generation (c) handloom Industry were evolved for the first time in the 6th Plan. (d) toy-making Industry  Planning Commission was set up in accordance Ans: (c) Handloom with the Directive Principles in Article 39.270
  • 12.  INTUC – Indian National Trade Union Congress 19 Nationalised Banks - tIm¬{Kkv (sF)-bpsS sXmgn-emfn kwL-S-.  Allahabad Bank  Andhra Bank BMS – Bharatiya Mazdoor Sabha. _n.-sP.-]n-bpsS  Bank of Baroda  Bank of India sXmgn-emfn kwL-S  Bank of Maharashtra  Corporation Bank CITU – Centre for Indian Trade Union. amÀIvknÌv ]mÀ«n-bpsS sXmgn-emfn kwL-S  Canara Bank  Central Bank of India  Dena Bank  Indian Overseas Bank  Indian Bank  Oriental Commercial Banking Sector  Bank Punjab National Bank  Punjab & Sindh Bank The organised banking system in India can be  Syndicate Bank  Union Bank of India divided into the RBI, the Commercial Banks and  UCO Bank  United Bank of India Co-operative Banks.  Vijaya Bank The Reserve Bank of India The State Bank of India  SBI is the largest public sector bank in India. The central banking functions in India are performed by  First Presidency Bank is the Bengal Presidency Bank (1806). (a) Central Bank (b) State Bank of India  In 1921, the three Presidency Banks (Bengal, Bombay (c) Reserve Bank of India (d) Both (b) and (c) & Madras) amalgamated to form Imperial Bank of Ans : (c) Reserve Bank of India India. RBI was established in 1935 and was nationalised  In 1955 Imperial Bank was nationalised and named in 1949. as State Bank of India. It represents India at the IMF. It is the Central Bank of India.  It is now the largest Commercial Bank in India in It is also known as the Bankers Bank and its head- terms of branches. It has seven associated banks. quarters is in Mumbai. Its first Governor was Sir Osbourne Arkall Smith NABARD and its first Indian Governor was C.D. Deshmukh  The National Bank for Agricultural and Rural (1943). Development was set up in July 12, 1982. Y.V. Reddy is the present Governor of RBI. He  Its primary objective is to promote agriculture and replaced the post of Mr. Bimal Jalan. rural development through credit facilities to farm- RBI has several banking functions like ers. It is the apex bank for rural credit. (1) issue of notes Its headquarters - Mumbai. (2) act as governments bank (3) act as Banker’s bank EXIM Bank (4) Custodian of Foreign Exchange Reserves  The Export Import Bank of India (1982) was set (5) To Manage Public debt. up to boost exports from India. (6) To stabilise the value of money, etc.  Exim Policy 2002-2007 was announced by government on March 31, 2002. Days in EconomicsWorld Thrift Day ............................... October 30 IDBIWorld Book and Copyright Day .............. April 23  The Industrial Development Bank of India wasWorld Population Day ............................. July 11 established on 1964. It is the apex bank for indus-World Consumer’s Day ......................... March 15 trial finance in India.World Standard Day .......................... October 14World Tourism Day......................... September 27 Lead Bank SchemeInter National Customs Day ................ January 26  Under the Lead Bank Scheme a bank adopts aCentral Excise Day ............................ February 20 district for developmental purpose. 271
  • 13.  Nariman Committee recommended the Lead Bank Scheme. Nationalisation of Banks Lead Bank of Trivandrum District : Indian  The first nationalisation of banks took place on Overseas Bank July 19, 1969 during the tenure of Prime Minister Lead Bank of Kollam District : Indian Bank Indira Gandhi. 14 banks were nationalised. The first bank of limited liability managed by  The second nationalisation took place in 1980 Indians was Oudh Commercial Bank founded in and six banks were nationalised. 1881. Punjab National Bank was established in 1894.  In 1993, the New Bank of India was merged with the Punjab National Bank. So at present there Scheduled Banks are only 19 nationalised banks in the country Scheduled banks are banks included in the besides the Reserve Bank of India and State second schedule of Reserve Bank Act 1934. The Bank of India and its seven subsidiaries. bank included in this list should fulfil certain con-  {KmaoW P-§Ä¡v _m¦nwKv s{IUnäv kuI-cyw dition and also they enjoy certain facilities. e`y-am-¡pI F¶Xmbn-cp¶p tZi-km¡c-W-  The paid up capital and collected funds of ¯nsâ {][m e£yw. Cµn-cm-KmÔn C´y³ banks should not be less than Rs. 5 lakh. {][m--a-{´n Bbn-cn-¡p-t¼m-gm-bn-cp¶p c­v _m¦v  They should safeguard the interest of the de- tZi-km¡-c-W§fpw S-¶-Xv. positors. The Federal Bank, The South Indian Bank, Ans: (a) 10 The Catholic Syrian Bank, etc. are scheduled  Overdraft facility is available for those who have banks. (a) Savings Bank Account (b) Fixed Deposit ICICI (c) Current Account (d) Recurring Deposit C´y-bnse Gähpw henb kzIm-cy-ta-Je _m¦v Ans: (c) Current Account BWv ICICI. Industrial Credit and Investment Corporation of  Custodian of foreign exchange is India (ICICI) was started in 1955. (a) Foreign Exchange Bank NHB : National Housing Bank. (b) State Bank of India SIDBI : Small Industries Development Bank of (c) Foreign Bank India is a wholly owned subsidiary of IDBI. sNdp- (d) Reserve Bank of India InS hyh- kmb§sf t{]mÂkm-l n-¸n- ¡m³ Ans: (d) Reserve Bank of India tem¬ ÂIp¶ _m¦m-Wn-Xv.  When was Savings Bank System introduced in FIIs Foreign Institutional Investors India? The term “Plastic Money” applies to trans- (a) 1830 (b) 1885 (c) 1910 (d) 1935 actions made up of Ans: (b) 1885 (a) bank Drafts made of plastic coated paper to make it more durable RRBs (b) Credit cards mainly issued by Banks  {Kma-§-fpsS km¼-¯nI hnI-k¯nmbn (c) Currency notes impregnated with plastic {]tXyIw Bcw-`n¨ _m¦p-I-fmWv Regional thread to prevent them from forgery Rural Banks AYhm {Kmao-¬ _m¦p-IÄ. (d) None of the above  tIc- f- ¯nse RRBs BWv North Malabar Ans: (b) Credit cards mainly issued by Banks Grameen Bank-Dw South Malabar Grameen The maximum number of partners allowed in a Bank-Dw. banking business is  C´y-bn Ct¸mÄ 196 RRBs D­v. (a) 10 (b) 20 (c) 30 (d) 50272
  • 14. These banks are also called New Generation The Commissions & Banks, as their style of functioning is more customer Committees oriented and high-tech. Kelkar Committee ................ Direct Indirect Taxes  Which State in India sold lottery tickets for the first G.V. Ramakrishna ....... Disinvestment Commission time? Narasimham Committee ............. Banking Reforms (a) Kerala (b) Tamil Nadu Malhotra Committee ....... Insurance Privatisation (c) Assam (d Manipur Raja Chelliah Committee ................... Tax Reforms Ans: (a) Kerala L.C. Gupta ............................... Trading of shares  BZy-ambn online lottery Bcw-`n¨ kwØmw- þkn¡nw. Nedungadi Bank & Tarapore Committee on Lord Krishna Bank Convertability The Nedungadi Bank was merged with Punjab S.S. Tarapore Committee report on fuller CAC (Capi- National Bank in 2003 due to acute financial tal Account Convertability) was published by RBI on problem the bank faced as a result of misman- September 1, 2006. The Committee has recommended agement. Lord Krishna Bank was merged with that the scheme for fuller convertability of rupee should Centurian Bank in 2006 Ganesh Bank of Krunthvad (Maharashtra) was merged with Fed- be implemented in a five year period in three phases. eral Bank in 2006. ` Ip´-e-X-bpsS IÀ¯m-hmb A¸p-s-Sp-§mSn Foreign Direct Investment tImgn-t¡mSv tI{µ-ambn 1899-þ Bcw-`n¨ tIc-f- (FDI) ¯nse BZys¯ _m¦n-mWv Cu ZpÀKXn Foreign Direct Investment (FDI) is investment of kw`-hn-¨-Xv. foreign assets into domestic structures, equipments and organisations. Co-operative banks FDI provides opportunities to Indian Industry for Central co-operative banks operate at district level, technological upgradation, gaining access to global while state co-operative banks operate at the state managerial skills and and practices. It is also highly level and primary agricultural credit societies op- conducive for optimum utilization of human and natu- erate at village level. ral resources and competing globally with higher effi- ciency. FDI has a significant role in integration of In- Foreign Banks dian economy with global production chain, which Banks which are registered outside India but has involves production of multinational corporationstaken permission to operate in India are Foreign Banks. spread across locations the entire world over. InThere are 44 Foreign Banks operating in India. recent years the quantum of FDI has increased substantially. It is a sign that multinationals have pickedHSBC, American Express are example India as their investment destination. ANZ Grindleys is the largest Foreign Bank oper- ating in India. Banking Reforms Indian Banks also operate in other countries.  M. Narasimham was the chairman of the Commit- tee on Banking Sector Reforms. Private Bank  c-knwlw I½n-änbpsS nÀtZ-i-{]-Imcw 1992-þ93 Under the recommendation of Narashimhan Com- C´y-bn _m¦n§v ]cn-jvIm-c-§Ä¡v XpS-¡-an-mittee, the government gave permission to start new «p. 1991se New Economic Liberalisation policyprivate banks. Bcw-`n-¨-Xnsâ `mK-am-bn-cp¶p ]cn-jvIm-c-§Ä. Some of the prominent Private Banks in India are  Second Generation Reforms ICICI Bank, UTI Bank Ltd., HDFC Bank, Centurian 1991 Bcw-`n¨ ]pXnb km¼-¯nI ]cn-jvIm-c-Bank Ltd., IDBI Bank, etc. §Ä C´y³ km¼-¯nI hfÀ¨bv¡v Btcm-Ky- 273
  • 15. ]-c-amb hnIm-k-¯nv klm-bn-¨n-cp-¶p. ]t£  Indian Security Press (Nasik) prints postal and CXnsâ XpSÀ¨-bmbn ]pXnb ]cn-jv¡m-c-§Ä judicial stamps, cheques and bonds. Bh-iy-am-Wv.  Money accumulated by way of illegal transac- The Second generation reforms refer to major tions without declaring it for tax purposes is called steps which are yet to be taken in the path of black money. structural adjustments to kick start and revitalize Indian economy. Insurance Sector NPA : Non Performing Assets. c-knwlw I½-nän-  LIC bpsS nÀtZ-i- {]-Imcw _m¦p-IÄ ÂIp¶ s{IUn- Life Insurance Corporation was set up in 1956. äns c­mbn Xcw-Xn-cn-¨n-cn-¡p-¶p. H¶v Perform- Its headquarters is in Mumbai. Life Insurance ing Assets Dw c­m-a-t¯Xv Non Performing As- Corporation (LIC) is the largest insurance com- sets Dw. An NPA (In«m¡-Sw) is a loan which is in default pany in the world in terms of number of policies for more than 6 months. covered.  ISI - Indian Standard Institution was set up in Indian Currency System 1946. Now it is named Bureau of Indian Stan- The rupee is the monetary unit of India and is dards (BIS). based on the decimal system.  UTI - (Unit Trust of India) was set up in 1964. It The rupee coin is a token coin made of nickel and is the first mutual fund operated in India. its face value is higher than its metallic value.  US 64 F¶ UTI ayq¨Â ^­vv hnhmZw krjvSn- The RBI calculates four concepts of money sup- ¨n-cp¶p ply in India. These concepts are known as Money  UTI is associated with Stock Measures. (a) Regulating Foreign Exchange Transactions The money stock measures are (b) Foreign Trade (c) Road Transport (1) Narrow Money (M1) = Currency with the pub- (d) Investment Trust lic (ie coins and currency notes) + demand deposits of the public. Ans: (d) Investment Trust (2) M2 = M1 + Post Office Savings deposit. (3) Broad money (M3) = M1 + Time deposits of the public with banks. Rupee was first minted in India during the reign of Sher Shah Suri. Paper currency in India was introduced for the first time in 1883. Indian rupee became an independent currency with the establishment of RBI in 1935. India became a member of the IMF and exchange value of the rupee came to be fixed by IMF stan- dards in 1947. Decimal System of Coinage was introduced in India in 1957. Currency notes are printed at Currency Note Press (Nasik) and the Bank Note Press at Dewas in Madhya Pradesh. Paper for making currencies and other security papers are manufactured by Security Paper Mill (Hoshangabad, MP).274
  • 16.  VABAL is Value Based Advanced Licence (c) cost price or market price which ever is lower Scheme. R.N. Malhotra was the head of the In- (d) None of these surance Sector Reforms Committee. Ans: (c) Cost price or market price which ever IRDA – Insurance Regulatory and Development is lower Authority.  The shares in a co-operative society Insurance Regulatory Authority bv¡v ]Icw (a) can be sold Øm]n-¨n-cn-¡p-¶-XmWv IRDA. (b) cannot be transferred Commerce (c) can be transferred The multi-crore security scam was first investi- (d) none of these gated by the Janaki Raman Committee. Later a Ans: (c) can be transferred Joint Parliamentary Committee (JPC) under the  When two or more companies dissolve to form chairmanship of Ram Nivas Mirdha enquired a new company, the process is called amalga- about it. Harshad Mehta is the chief accused in mation. the case.  When one company merges with another com- Maximum number of partners in a partnership pany, it is merging. firm is 20.  Who manages a joint stock company? A private company must have at least 2 mem- (a) Its Board of Directors bers. (b) Its General body Minimum number of share holders necessary (c) Its Management council for a public company is 7. (d) All of the above Break - even - point in a business means No Ans: (a) Its Board of Directors profit and loss.  What is the percentage of net earning of the Goodwill of a firm represents Intangible asset. Central Government through excise and customs The excess of current assets over current liabil- (as % of total receipts)? ity is called Working capital. (a) 40% (b) 39% Single entry system of book-keeping means (c) 38% (d) 36% (a) making entry for one aspect of transaction Ans: (c) 38% (b) making entry for both aspects of a transac-  Activities which are undertaken by human be- tion ings for earning money may be called as (c) incomplete double entry (a) business (b) profession (d) None of these (c) employment (d) cultivation Ans: (b) Profession Ans: (a) Making entry for one aspect of transaction  Managerial control is more in the case of a The closing stock should be valued at (a) partnership firm (b) sole trading concern (a) cost price (b) market price (c) co-operative Society (d) private limited company National Rural Employment Ans: (b) Sole trading concern Guarantee Programme (NREGP)  Partner’s liability in India is The programme accept a right based approach (a) equal (b) limited to work. The NREGP empowers the poor house- (c) unlimited (d) None of these holds to demand employment of at least 100 days Ans: (b) limited from government. Rs. 11,300 crore has been pro-  Uncertain income in any enterprise is vided to NREGP in 2006-07. The scheme is pro- (a) Rent (b) Wages tected by the National Rural Employment Guaran- (c) Interest (d) Profit tee Act. Ans: (d) Profit 275
  • 17.  The code for corporate governance has been given  ‘Budget’ is a by (a) Plan outlay (a) ASSOCHAM (b) CII (b) Annual Financial Statement (c) Chamber of Commerce (d) UTI (c) Balance Sheet Ans: (b) CII (d) Estimate of expenditure C11: Confederation of Indian Industries Ans: (b) Annual Financial Statement Debenture holders of a company are its  Who said, “The budget need (a) Members (b) Creditors not be a secret affair? (c) Debtors (d) Directors (a) R. Venkatraman Ans: (b) Creditors (b) Palkiwalah (c) C. Subramaniam Equity shareholders are the company’s (d) Chintamani Deshmukh (a) Owners (b) Creditors Ans: (b) Palkiwalah Palkiwalah (c) Customers (d) None of these Ans: (a) Owners Taxes Macro Economics is a  Taxes can be broadly divided into two (a) study of aggregates (b) machine (i) Direct Taxes (ii) Indirect Taxes. (c) chemical analysis  Personal Income tax, corporate tax, estate duty, (d) branch of Engineering gift tax and wealth tax come under direct taxes. Ans: (a) study of aggregates  Sales tax and excise duty, customs duty come The backbone of all economic activities is under indirect taxes. (a) agriculture (b) finance  Union Excise Duties are the chief source of rev- (c) industry (d) education enue of the Central Government. Ans: (b) finance  Excise duties, customs duties, income tax and Internal trade means corporation tax are levied by the Central Govern- (a) Export (b) Import ment. (c) Trade within the country  Sales tax is the major source of revenue to the (d) None of these State Government. Ans: (c) Trade within the country  Land revenue, stamp duties and registration fees In Monopoly pricing, there will be are collected by the states. (a) less competition (b) perfect competition  Estate duty on property other than agricultural in- (c) more competiton (d) no competition come is collected by the central government. Ans: (d) No competition  The agricultural income has been exempted from What is the life blood of commerce? the Union Income Tax. But the states have the (a) Export, import (b) Trade statutory powers to do that. (c) Agriculture (d) Industry  Taxation is a part of - fiscal Policy Ans: (b) Trade  Interest is a - taxable income Saving is a function of  Octroi is the tax imposed on articles coming into (a) investment (b) export a city; it simply means city tax. (c) improvement in productivity  The most important source of revenue for the gov- (d) Income ernment - taxes. Ans: (d) Income  PPP - Purchasing Power Parity Budget : A budget is the anticipated annual  The form of market structure where the produce estimate of expenditure and revenue of a coun- has total control over the price - Monopoly try or a subordinate authority like a corpora-  Real national income divided by population is - tion. per capita income.276
  • 18. A regressive tax will tend to redistribute income  The BJP ruled States and Tamil Nadu initially more refused to introduce VAT when other States (a) equally (b) unequally accepted and introduced VAT from April 1, 2005. (c) equitably (d) inequitably  Kerala introduced VAT on April 1, 2005. Ans: (b) unequally  France was the first country to introduce VAT. L.K. Jha was the head of the Indirect Taxation Committee which recommended introduction of Economic Offences ad valorem taxes as far as possible.  Black money is money accumulated by evading Raja. D. Chelliah was the Chairman of the Tax Re- tax. forms Committee.  Hawala Transaction means the illegal way of Finance Commission recommends distribution bringing foreign currency to India. Usually the between the Union and the States of the net pro- foreign currency will be collected from outside ceeds of taxes as enumerated in the Constitution India and its equivalent amount will be given here. and allocation between the states of the respec- The chief accused in the Hawala case is S.K. Jain. tive shares of such proceeds.  FERA - Foreign Exchange Regulation Act (1973). Excise duty is a tax levied on  FERA has been replaced by FEMA Foreign Ex- (a) import of goods (b) export of goods change Management Act on June 1, 2000. (c) production of goods (d) sales of goods  COFEPOSA - Conservation of Foreign Exchange Ans: (c) production of goods and Prevention of Smuggling (Activities) Act. The tax paid by every individual is  FECA - Foreign Exchange Contribution Act. (a) an indirect tax (b) a direct tax (c) a progressive tax (d) None of these Stock Exchange Ans: (b) a direct tax  India has the second largest share holding popu- An ad-valorem duty is a tax basis of lation, next to United States of America. (a) the price of the commodity  A stock exchange is an organised market for buy- (b) the value added ing and selling shares and other securities. (c) the advertisement expenses  There are 22 stock exchanges in the country. (d) the unit of the commodity Ans: (a) the price of the commodity CXn 20 F®w {]tZ-in-Ihpw 2 F®w tZio-b- hpamWv. MODVA T  National Stock Exchange (NSE), Over The Counter MODVAT is modified Value Added Tax. MODVAT Exchange of India (OTCEI) F¶n- h-bmWv 2 tZiob has been in place from April 1, 1986. This was Stock Exchange-IÄ. introduced to avoid double taxation of both the  Bombay Stock Exchange (BSE) Cu 20 s]Sp¶ raw materials and finished goods. {]tZinI Stock Exchange BWv. VAT VAT is Value Added Tax. VAT has replaced the Sales Tax. VAT has been adopted by all the States except Uttar Pradesh and Pondicherry in 2007. Lakshadweep and Andaman and Nicobar has been exempted from VAT. 277
  • 19.  The first stock exchange was established in  The head of Co-operative Department is Regis- Mumbai in 1875. trar of Co-operative Societies. Dalal Street is the place where the Bombay Stock  Supermarket run by the Kerala State Co-opera- Exchange operates. tive Consumer Federation is Thriveni. National Stock Exchange (NSE) apwss_-bn-emWv.  There are 14 district Co-operative Banks in Kerala. 1948-þÂ cq]o-I-cn-¨p.  ‘CAMPCO’ was a Co-operative institution regis- tered as a joint venture of Karnataka and Kerala SEBI Securities and Exchange Board of India was government. set up in 1988. It was made a statutory body in  The headquarters of ‘Coirfed’ is at Alappuzha. 1992.  The headquarters of ‘MATSYAFED’ (Kerala State SEBI oversees the working of the Stock Exchange. Co-operative Federation for Fisheries Develop- Unit Trust of India, established in 1964, was the ment) is in Trivandrum. first mutual fund in India.  Central Co-operative banks function at the district CRISIL - Credit Rating Investment Services of In- level. dia Limited.  Nelkkathir Award is given to the best group farming CARE - Credit Analysis and Research Limited. society Blue Chip Share is a high valued share.  Karshakothama Award is given to the best farmer Bulls and Bears are terms associated with share in the state by Kerala Government - market. Karshakashree is given to the best farmer by Bulls are the stock brokers who tries to raise the Malayala Manorama. price of shares and make profit out of it.  Kera Kesari award is given to the best coconut Bears are the stock brokers who tries to dip the farmer in the state. price of share and make profit out of it.  Granary of Kerala is Kuttanad, while the leading Harshad Mehta and Kethan Pareak were the stock producer of rice is Palakkad district. brokers associated with stock scam in two differ- ent time in India. Rural Development Profit from shares is called dividend while profit  Pradana Mantri Grama Sadak Yojana (PMGSY) from debentures is called interest. launched in December 2000, to provide connectivity of roads to the unconnected Co-operative Sector habitations in the rural areas. The state famous for ‘Dairy Co-operatives’ in  Antyodaya Anna Yojana (AAY) is launched by India is Gujarat the government for the poorest of the poor. The only ‘Scheduled Bank’ in  Valmiki Ambedkar Awas Yojana (VAMBAY) is the co-operative sector is announced by the Prime Minister of India on 15 Kerala State Co-operative Bank. August, 2001 to provide shelter or upgrade the Jawaharlal Nehru gave impor- existing shelter for people living below the tance to co-operative move- poverty-line in urban slums in a march towards ment in the Five year Plans of the goal of slumless cities with a healthy and the country. enabling urban environment.  IRDP - Integrated Rural Development Programme. The ‘Birthplace’ of land mort- Nehru It was launched in 1978 and is a self-employment gage banks is Germany. scheme to improve economic and social condi- The report of All India Rural Credit Survey Com- tions of the poor. mittee is known as ‘Magnacarta’ of the Co-opera- tive movement in India.  TRYSEM - Training of Rural Youth for Self-Employ- ment. It was launched in August, 1979 to equip rural The name of retail stores started in 1997-98 by youth with necessary skills for self - employment. Goverment of Kerala under the direct supervision of Kerala Co-operative consumer Federation is  DPAP - Drought Prone Area Programme was Neethi. launched in 1973.278
  • 20. DISINVESTMENT  Kh¬saâ v I¼-n-I-fpsS kÀ¡mÀ Hml-cn-IÄ Hml-cn-IÄ Sterlite Industries v hn¡m-mWv kzImcy taJ-ebv¡v AsÃ-¦n aäv I¼-n-IÄ¡v Xocp-am-n-¨-Xv. BALCO sXmgn-emfn kwL-S-- ssIamäw sN¿p- ¶ - X m- W v Disinvestment. I-fpw, N¯o-kvKVv kÀ¡mcpw CXns J-in- kÀ¡mÀ Hmlcn hnäv In«p¶ ]Ww aäv hnI- Im´w FXnÀ¯p. F¦nepw kp{]ow-tIm-SXn k {]hÀ¯--§Ä¡v hnn-tbm-Kn-¡p-¶p. tI{µ-kÀ¡m-cnv Ap-Iq-e-ambn hn[n {]kvXm-  Disinvestment -sIm­v kÀ¡m-cn-pÅ t«w hn¨ UnkvC³shâ vsaâns AwKo-I-cn-¨p. H¶nÂIq-Sp-X-emWv. an¡-hmdpw disinvestment  Disinvest sNbvX Nne {][m I¼-n-IÄ. S-¯p-¶Xv jvS-¯n-tem-Sp¶ I¼-n-I-fpsS Modern Foods Hml-cn-IÄ Hindustan Liver v Hml-cnIfm-bn-cn-¡pw. CXp-hgn IqSp-X jvSw hnäp. ITDC bpw VSNL sâ 25% Hml-cn-Ifpw D­m- Ip-¶Xv Ah-km-n- ¸n¡mw. hnäv In«p¶ XpI Tata¡v ÂIn. IPCL Hml-cn-IÄ Reliancev aäp hnI-k--{]-hÀ¯--§Ä¡v D]-tbm-Kn-¡mw. hnäp. IOC, ONGC, GAIL, NTPC, BSNL, The Na- Cu I¼-n-IÄ kzIm-cy-ta-J-e¡v ssIam-dn-bm tional Aluminium Company (NALCO) F¶n- AhÀ AXns em`- ¯ n {]hÀ¯n- ¸ n¨v hbpw disinvestment sN¿m³ S-]Sn XpS-§n. (kÀ¡mÀ S-¯p-t¼mÄ jvS-¯n-tem-Sp¶ I¼- em`-¯n HmSp¶ Cu I¼-n-IÄ F´nv dis- n-IÄ kzImcy taJebn em`¯nem-¡p-¶- investment sN¿Ww? kÀ¡mcnsâ D¯cw IqSp- Xnsâ clkyw n§Ä¡-dn-bp-atÃmþ kÀ¡m-À X em`-¯nv F¶m-Wv. BtKm-f-h¡-cWw I¼-n- am-t-Pvsaânsâ sISp-Im-cy-Ø-X, Agn- krjvSn-¡p¶ ià-amb k½À±-§sf AXn-Po- a-Xn, Ime-l-c-W-s¸« amt-Pvsaâ v coXn-IÄ...) hn-¡m³ ZoÀL-ho-£-Whpw em`-Xm-ev]-cy-hp- mSnsâ hnI-kw Xzcn-X-s¸-Sp-¯p-¶p. apÅ kzImcy tImÀ¸-tdäv amt-Pp-saâp-IÄ¡v  tImfn-f¡w krjvSn¨ kw`- h-am-WBALCO bpsS v am{Xta Ignbq F¶-XmWv kXyw. tkmjy-enÌv Disinvestment Bharat Aluminium Company Ltd. Nn´-bnÂn¶pw kÀ¡mcpw Iym¸n-ä-en-k-¯n- O¯o-kvKVv kwØm--¯mWv. BALCO bpsS tebv¡v o§p-I-bm-Wv. JRY - Jawahar Rozgar Yojana. It was launched in replaced IRDP, TRYSEM, DWCRA (Development 1989. It aims to guarantee employment to at least of Women and Children in Rural Areas), MWS one person in a rural family below the poverty (Million Wells Scheme) GKY (Ganga Kalyan line. Yojana), SITRA (Supply of Improved Tool Kits to NRY - Nehru Rozgar Yojana. It is the urban coun- Rural Artisans). It is the only self-employment terpart of JRY both launched in 1989. programme currently being implemented. The NREP (National Rural Employment Programme) scheme is being implemented with the help of self and RLEGP (Rural Landless Employment Guaran- help groups. tee Programme) have been merged with JRY.  EAS - Employment Assurance Scheme was Jawahar Gram Samridhi Yojana (JGSY) is the new launched in 1993 to provide employment of atleast name of Jawahar Rozgar Yojana (JRY). The new 100 days to the villagers. scheme was launched on 1 April, 1999.  JGSY - Jawahar Gram Samridhi Yojana (JGSY) was DWCRA - Development of Women and Children launched in 1999 and it replaced Jawahar Rozgar in Rural Areas (1982). Yojana (JRY). ICDS - Integrated Child Development Service IREP - Integrated Rural Energy Programme.  PMGY - Pradhan Mantri Gramodaya Yojana was launched in 2000-01 in order to achieve an objec- BSY is the Balika Samridhi Yojana tive of sustainable human development at village Swarnajayanthi Gram Swarozgar Yojana (SGSY) level. is the new scheme launched on 1 April, 1999 which 279
  • 21.  SGRY - Sampoorna Grameen Rozgar Yojana  Nirmithi movement was started in Kerala in 1985. (SGRY) was launched in September 2001 by merg-  Command Area Development Programme was ing Jawahar Samridhi Yojana (JGSY) and Employ- (CADP) launched in 1974-75. ment Assurance Scheme (EAS).  Which of the following is wrongly matched? PMRY - Pradhan Mantri Rozgar Yojana was (a) IRDP - 1978-79 (b) NREP - 1980 launched with the objective of making available (c) RLEGP - 1983 (d) DWCRA - 1982 self employment opportunities to the educated (e) All are correct unemployed youth by assisting them to set up Answer: (e) All are correct any economically viable activity.  BPL census - Below Poverty Line census- was Eco-mark is given to environmentally friendly held in Kerala in 1998. The aim of the census products by the Bureau of Indian Standards (BIS), was to find out the families living under poverty Agmark is given to agricultural products. in Kerala. Earlier this census was called IRDP Rugmark is given to child labour free carpets. survey. CAPART - Council for Advancement of Peoples  The annual income limit of poverty line was Action and Rural Technology. refixed to Rs. 20,000 from Rs. 11,000 per year. To promote voluntary action in rural development  The State Institute of Rural Development is at CAPART was launched in 1986. Kottarakkara. MSY - Mahila Samridhi Yojana. It is a savings  The National Institute of Rural Development is scheme for rural women. in Hyderabad. AVARD - Association of Voluntary Agencies for  Name the scheme launched by the government Rural Development. to develop saving tendency among rural women. CRISP - Computerised Rural Information System (a) National Saving Scheme Programme. It was started in 1985. (b) Indira Vikas Pathra NSAP - National Social Assistance Programme, (c) Mahila Samrithi Yojana (MSY) announced on August 15, 1995. (d) Post Office Saving Scheme Midday meal programme was launched by the Answer: (c) Mahila Samrithi Yojana (MSY) Prime Minister on August 15, 1995.  The number of developmental blocks in Kerala ISO-International Organisation for (a) 150 (b) 151 (c) 152 (d) 153 Standardisation. Cochin Shipyard has recently Answer: (c) 152 been given ISO certificate.  Chairman of DRDA is SSI - Small Scale Industry. An industrial unit with (a) District Panchayat President a capital investment of not more than Rs. 1 crore (b) Block Development Officer is treated as a small scale industry. (c) District Collector Community Development Programme (CDP) was (d) Manager District Co-operative Bank launched in the year Answer: (a) District Panchayat President (a) 1953 (b) 1952 (c) 1975 (d) 1965  Local Administration Department and Rural Answer: (b) 1952 Development have been amalgamated to form National Extension service was launched in 1953. Local Self Government Department. Twenty Point Programme was launched in 1975  Kerala Institute of Local Administration (KILA) The National Co-operative Consumer ’s is located at Federation of India Limited was registered in (a) Mulamkunnathu kavu (Thrissur) 1965. (b) Kottarakkara(c) Kottayam CRSP was launched in (d) Kannur (a) 1986 (b) 1985 (c) 1973 (d) 1978 Answer: (a) Mulamkunnathu kavu (Thrissur) Answer: (d) 1978  The poverty alleviation programme launched by CRSP is Centrally sponsored Rural Sanitation Kerala government with the help of NABARD Programme and Panchayat Raj Institutions in the state is280
  • 22. (a) IRDP (b) SGSY (c) Maithri (d) Kudumbha sree ENERGY Answer: (d) Kudumbha sree The cultural mission launched by the state Conventional forms of Energy government to welcome the new millennium is  Coal, oil, natural gas, nuclear material and water ‘Manaveeyam’ power are at present major sources of conven- Bangladesh Grammeen Bank was set up by tional forms of energy. Mohammad Yunus. He won the 1998 Indira  Electricity produced from these conventional Gandhi International Award and Nobel Prize for forms of energy is used by many industries. Per Peace in 2006. capita consumption of electricity is often con- sidered as an indicator of economic development  Of the total installed capacity in India Mohammad Yunus  Thermal power accounted for 70%  Hydel power accounted for 27%  Nuclear power accounted for 2%  Non conventional energy accounted for 1% Thermal power COSTFORD is the Centre for Science and Technology for Rural Development. It is  In the case of thermal power, supply of coal, oil engaged in low cost house building. It is located and natural gas is the limiting factor. at Thrissur.  Super thermal power stations are set up near coal Lakdawala Committee is associated with poverty fields like Korba in Madhya Pradesh, Obra in line. According to the committee report 35.97% Uttarpradesh, Talcher in Orissa and Kothagudem of people live under poverty line in India (1999). in Andhra Pradesh. ‘Garibi Hatao’ is a slogan associated with Indira Gandhi during 5th plan period. Nuclear Power The Five Year Plan which gave foremost priority  In the case of nuclear power, disposal of waste for removal of poverty was 6th Five Year Plan. and hazards of radio activity are the problems. The Housing & Urban Development  Nuclear Power Stations Corporation Limited (HUDCO) was set up in  (i) Kota in Rajasthan April 1970.  (ii) Tarapur in Maharashtra ‘‘Houses for all’’ is the aim of the government.  (iii) Kalpakkam near Chennai in Tamil Nadu World Habitat Day is observed on  (iv) Narora in Uttar Pradesh (a) October 6 (b) October 1  (v) Kakrapara in Gujarat (c) October 30 (d) None of these  (vi) Kudangulam in Tamil Nadu Answer: (d) World Habitat Day is observed on the first Hydel Power Monday in October. 2007-October 1, 2008-  Among the various sources of electricity, water October is perhaps the best in the sense that it is renew- October 1 is Elderly day able and pollution free. The water used for gen- erating power can be again used for irrigation. October 30 is World Thrift Day  The first hydro electric power plant: May 11 is National Technology Day Sivasamudram across Cauvery in Karnataka Year of Shelter for Homeless was observed in (1902). 1987.  Damodar Valley Project, which included gen- ‘Laksham Veedu Scheme’ was launched by M.N. eration of electricity as one of its multipurposes, Govindan Nair. is the earliest of its kind. 281
  • 23.  Bhakra - Nangal project, a project which con-  Ranjit Sagar Dam (Thein Dam) is a multipur- sists of Bhakra Dam is associated with Sutlej river. pose dam project in the country, built on the Ravi Punjab, Himachal Pradesh, Haryana and Rajasthan river. Punjab, Haryana & Jammu and Kashmir are are the beneficiary states of the project. the main beneificiary states of this project. Damodar Valley is associated with the Damodar  Sardar Sarovar project on the Narmada river in river. Bihar and West Bengal are the beneficiary Gujarat is an inter-state project beneficiary to states of the project. Gujarat, Madhya Pradesh and Rajasthan. Tungabhadra project is associated with river  Alamatti Dam located in the Krishna river is a Tungabhadra. Andhra Pradesh and Karnataka bone of contention between Karnataka and are the beneficiary states of the project. Andhra Pradesh. The Dam is in Karnataka. Hirakud Dam project is associated with  Mullaperiyar Dam exists as a controversial fac- Mahanadi river. Orissa is the main beneficiary tor between Kerala and Tamil Nadu. state of Hirakud project. Mullaperiyar Dam Hirakud Dam Kosi project is a multipurpose project which is  Rihand Project It has created the largest man associated with the Kosi river, was built by India made lake in India. in association with Nepal.  Tehri Hydel Project Rajasthan Canal project is associated with River  Is a joint project of Govt. of India and Sutlej, Beas and Ravi. Rajasthan, Punjab and Uttaranchal. Haryana are the beneficiary states of the project. It is also called the Indira Gandhi Canal Project.  The project was commissioned in 2006. Kakrapara project is associated with Tapti river.  The goal of the project is to generate 2,400 Gujarat is the main beneficiary state of the project. MW of power annually besides providing irrigation to 2,700 hectares. Koyna project is associated with river koyna. Maharashtra is the main beneficiary state of the  Chukla Project in Bhutan project.  It is a very big hydel power project at Chukla Farakka project is associated with Ganges and in Bhutan. Bhagirathi. West Bengal is the main beneficiary  The project was financed by India. state of the project.  It feeds power to the north eastern parts of Tehri Dam project is associated with rivers the country including West Bengal. Bhagirathi and Bhilangana. Uttaranchal is the main beneficiary state of the project.  Seven states including Kerala, Himachal Pradesh, Jammu & Kashmir, Meghalaya etc depend mainly Kahalgaon project is a joint venture of NTPC on hydel power. and a Russian company.  Draw - backs of hydel generation Nagarjunasagar dam located on Krishna river is  Fluctuation between rainy and dry periods. situated in Andhra Pradesh. Parambikulam - Aliyar project is a joint venture  Production cannot be manipulated to suit of Tamil Nadu and Kerala. the demand.282
  • 24.  Development of conventional forms of energy  In India, solar energy is being utilised for meeting the growing energy needs of society through two different routes. at a reasonable cost is the responsibility of min- (1) Solar thermal routes istries of power, coal petroleum and natural gas. (2) Solar photo voltaic route Nuclear energy development is being controlled  India is the third largest producer in the up by the department of Atomic Energy. Electricity is a concurrent subject at entry 38 in world of solar cells and photovoltaic cell. list III of the seventh schedule of the Constitu-  Geo Thermal Energy tion of India.  Geo thermal energy represents energy The construction and operation of generation and transmission projects in the central sector transmitted from the centre of the earth. are entrusted to central sector corporations;  In Manikaran in Himachal Pradesh the hot They are springs are used to produce geothermal  National Thermal Power Corporation (NTPC) energy. (setup on 1975)  Geothermal energy is most used in Iceland.  National Hydro Electric Power Corporation (NHPC) (set up on 1975)  Tidal Power  North Eastern Electric Power Corporation  Tidal Power has been successfully devel- (NEEPCO) oped on the Rance Estuary in Brittany,  Power Grid Corporation of India Ltd. (PGCIL) France. which is incorporated on 23 october 1989.  In India, potential sites are the Gulf of Kutch and Cambay and the Sunderbans. Non Conventional Forms of  In India an Ocean Thermal Energy Conver- Energy sion (OTEC) plant is being set up at  Sources: Solar Energy, Wind Energy, Bio- Kulashekara-pattinam in Tamil Nadu. mass power, Geothermal Energy.  The Ministry of Non-Conventional Energy  Bio-Mass Power source (MNES) created in 1992 is the nodal  Bio Gas is the one source for which there is agency of the Govt. of India for all matters no limitation. relating non conventional / renewable en-  In Punjab and Haryana, community plants ergy. have came into existence for the process-  India has one of the worlds largest ing of farm yard manure. The animal waste programme for renewable energy. is used to produce gas which can be used  India has now recognised that renewable as cooking gas. energy sources can provide the basis for sustainable energy development on ac-  Wind Power count of their inexhaustic nature and envi-  The gross wind power potential of India is ronment friendly features. estimated to be about 20,000 MW.  The greatest advantage of Non Conven-  India is in the fifth position in the world tional energy sources is their inexhaustible after Germany, USA, Denmark and Spain in condition the field of grid capacity. Solar Energy  A Centre for Wind Energy Technology  Sun is the main source of non conventional (C-WET) has been set up at Chennai with energy though it may not be available dur- the objectives of promoting and accelerat- ing right and cloudy days. ing the utilisation of wind power and sup-  India receives 5,000 trillion kwh of solar ra- porting the growing wind sector in the diation per year. country. 283
  • 25. Indian Economy : Objective Questions1. National income does not include 7. Which year is known as `Year of the Great Divide (a) interest on unproductive national debt. with regard to population growth in India? (b) income from government expenditure. (a) 1921 (b) 1947 (c) the payments by the households to firms (c) 1951 (d) None of these for the purchase of goods and services. 8. Which of the following states has the least literacy rate? (d) undistributed profits. (a) Rajasthan (b) Himachal Pradesh2. Who wrote, The General Theory of Employment, (c) Uttar Pradesh (d) Bihar Interest and Money ? 9. The maximum number of people in India work in (a) Ragnar Nurkse the (b) J.S. Mill (a) primary sector (b) secondary sector (c) J.B. Say (c) teritiary sector (d) none of these (d) J.M. Keynes 10. According to the 2001 census, the most densely3. Subsidies mean populated state is (a) payment by Government for purchase of (a) West Bengal (b) Kerala goods and services (c) Bihar (d) Uttar Pradesh (b) payment by business enterprises to factors 11. Indian economy is most appropriately described of production as a (c) payment by companies to shareholders (a) Socialist economy (b) Mixed economy (d) payment by Government to business (c) Capitalist economy (d) None of these enterprises without buying any goods and 12. Mixed economy envisages services (a) co-existence of capitalists and labourers4. Depreciation means (b) integrated economic development (a) destruction of a plant in a fire accident (c) development of agriculture and industry (b) loss of equipment over time due to wear simultaneously and tear (d) private and public sectors (c) closure of the plant due to labour trouble 13. A market economy is one in which (d) closure of the plant due to lockout (a) products are sold5. The ‘secondary sector’ of Indian economy does (b) products and factors are bought not include (c) products and factors are bought and sold (a) Manufacturing (d) none of the above (b) Construction (c) Mining and quarring Answers (d) Electricity, gas and water supply6. Expenditure on defence is an item of 1. (a) 2. (d) 3. (d) 4. (b) (a) public investment 5. (c) 6. (d) 7. (a) 8. (d) (b) private investment 9. (a) 10. (a) 11. (b) 12. (d) (c) private consumption 13. (c) (d) public consumption284
  • 26. 14. Bring out the economic factors responsible for (a) (A, i) (b) (B, iii) the under-development of the Indian economy (c) (A, iii) (d) (C, ii) (i) Shortage of capital 21. Which of the following is the most populated city (ii) Technological backwardness in India? (iii) Lack of skilled manpower (a) Delhi (b) Calcutta (iv) Low geographical mobility due to attachment (c) Chennai (d) Mumbai to land 22. The Department of Planning and Development was constituted by the Government of India in (a) i & ii (b) i, iii & iv (a) 1940 (b) 1944 (c) i, ii & iv (d) i, ii & iii (c) 1947 (d) 195015. Who wrote a book describing the theory of 23. The Planning Commission was set up by the economic drain of India during British rule? Government of India in (a) Dadabhai Naoroji (b) Lala Lajpat Rai (a) 1944 (b) 1947 (c) Mahatma Gandhi (d)Jawaharlal Nehru (c) 1950 (d) 195116. Which one of the following is not a feature of a 24. The concept of rolling plan was accepted in developing economy? (a) 1975 (b) 1976 (a) High rate of unemployment (c) 1977 (d) 1978 (b) High rate of population growth 25. The long-term objectives of development in India (c) High rate of capital formation have been- (d) Widespread poverty (a) high rate of growth with a view to improve the level of living of the people17. Economic development has been retarded in India mainly due to (b) social justice (c) economic self-reliance (a) haphazard industrialisation (d) all the three (b) westernised social attitudes 26. Disguised unemployment refers to (c) poor infrastructural facilities (a) persons with no jobs (d) inefficient agrarian system (b) more persons employed for a job, out of18. In a free economy inequalities of income are mainly them a few can accomplish due to (c) unemployment among women (a) free competition (d) unemployment of people above 60 years (b) private property only of age (c) private property and inheritance 27. Most of the disguised unemployed persons in (d) difference in the marginal productivity of labour India are found in19. Which one of the following is not the economic (a) agriculture (b) industry factor, for the causes of poverty? (c) trade (d) transport (a) Fast rise in population (b) Low productivity in agriculture Answers (c) Mass illiteracy (d) Inequalities of income 14. (d) 15. (a) 16. (c) 17. (c)20. Which of the following pairs is correct? 18. (c) 19. (c) 20. (c) 21. (d) (A) April to March (i) A UN year 22. (b) 23. (c) 24. (c) 25. (d) (B) January to December (ii) A calendar year 26. (b) 27. (a) (C) February to March (iii) A financial year 285
  • 27. 28. Seasonal unemployment refers mainly to 35. One of the main factors that led to the rapid (a) private sector industry expansion of Indian exports is (b) public sector industry (a) imposition of import duties (c) agriculture (d) banks (b) liberalisation of the economy29. Till which plan Employment Strategy had been (c) recession in other countries growth linked? (d) diversification of exports (a) 6th plan (b) 7th plan 36. Which of the following is a credit rating agency? (c) 3rd plan (d) 5th plan (a) TRAI (b) IRA30. Which of the following programmes were started (c) SEBI (d) Moody’s during the Fourth Five Year Plan? 37. What is the effect of deficit financing on economy? (i) Rural Works Programme (RWP) (a) inflation (b) deflation (ii) Marginal Farmers and Agricultural (c) depression (d) recession 38. Where in India are coins minted? Labourers Scheme (MFAL) (a) Delhi, Mumbai, and Calcutta (iii) Small Farmers Development Agency (b) Delhi, Calcutta and Chennai (SFDA) (c) Mumbai, Delhi and Bangalore (iv) Integrated Dry Land Agricultural (d) Mumbai, Calcutta and Hyderabad Development (IDLAD) 39. If a person gets the prize of state lottery, which of (a) (i) and (ii) only the following taxes will he have to pay? (b) (ii) and (iv) only (a) Commercial Tax (b) Entertainment Tax (c) (i), (ii) and (iv) only (c) Income Tax (d) Wealth Tax (d) (i), (ii), (iii) and (iv) 40. Fiscal deficit in the Union Budget means31. Food for Work Programme was introduced during (a) The difference between current expenditure the and current revenue (a) Fourth Plan (b) Fifth Plan (b) Net increase in Union Governments, borrow- (c) Sixth Plan (d) Seventh Plan ings from the Reserve Bank of India.32. The SFDA has been merged into (c) The sum of budgetary deficit and net increase (a) MFAL (b) IRDP in internal and external borrowings (c) IDLAD (d) TRYSEM (d) The sum of monetised deficit and budgetary33. According to Marx, socialism is deficit. (a) a transitional stage in the evolution of eco- 41. The term ‘Paper Gold’ is associated with nomic systems (a) deficit budgeting (b) the final result of class struggle (b) currencies still in gold standard (c) a stage of historical evolution where state (c) special Drawing Rights of the IMF existsno longer (d) special facility of the World Bank (d) a stage on which capital is privately owned but distribution of product is according to need Answers34. Equilibrium price is that which 28. (c) 29. (d) 30. (d) 31. (b) (a) Equates consumers and producers surplus 32. (b) 33. (b) 34. (c) 35. (b) (b) Maximises consumers satisfaction 36. (d) 37. (a) 38. (d) 39. (c) (c) Equates supply and demand (d) Maximises producers profit 40. (c) 41. (c)286

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