Indian Economy GK Questions with Answers – Page 17

The law of equi-marginal utility, called Gossen's second law and also the law of maximum satisfaction, says that a consumer distributes his income among goods so that the last rupee spent on each gives him the same marginal utility; he reaches that position by substituting the good with the higher…

In their joint work of 1934, and later in Hicks's Value and Capital, they replaced the measurement of utility with the ranking of preferences and rebuilt the theory of demand on indifference curves, the marginal rate of substitution and the budget line.

Equilibrium is the point at which the budget line is tangent to the highest indifference curve the consumer can reach, and at a point of tangency the slopes of the two are equal, which means MRS of X for Y equals Px divided by Py; a second condition is that…

The budget line is the equation Px·X + Py·Y = M, which on rearranging gives Y = M ÷ Py minus (Px ÷ Py)·X, so the intercept is income divided by the price of Y and the slope is the ratio of the price of the good on the horizontal…

If two curves crossed, the combination at the crossing point would belong to both and would therefore give two different levels of satisfaction at the same time, a logical contradiction; for the same reason they cannot even be tangent.

As a consumer moves down an indifference curve he holds more and more of the first good and less of the second, so each extra unit of the first is worth fewer units of the second to him; the slope therefore becomes flatter from left to right and the curve…

The marginal rate of substitution of X for Y is the number of units of Y a consumer is willing to give up to get one more unit of X while remaining on the same indifference curve, and it equals the ratio of the marginal utility of X to the…

Marginal utility is the addition made to total utility by one more unit, so as long as it is positive total utility keeps rising; the moment it becomes zero nothing more is being added and total utility stands at its highest point, called the point of satiety.

Marshall, in his Principles of Economics, built the theory of demand on the assumption that utility is measurable in imaginary units, so that a consumer can compare the ten utils of a cup of tea with the six utils of a samosa; from this assumption he derived the law of…

The logo of Make in India is a lion in mid-stride, drawn out of cogwheels or gears, the gears standing for manufacturing and industry and the lion for courage and strength; it is derived from the Ashoka emblem in spirit and was unveiled with the programme in September 2014.

It allows an eligible startup, recognised for the purpose and incorporated within the prescribed window, a deduction of one hundred per cent of the profits and gains from its business for three consecutive assessment years out of its first ten years, subject to conditions, and it must be claimed with…

The first PLI scheme was notified in 2020 for large-scale electronics manufacturing, with mobile phones and specified electronic components as its targets, and it was followed by schemes for pharmaceutical ingredients and medical devices in the same year.

This output-linked design is what distinguishes the PLI scheme from older industrial subsidies: a selected manufacturer receives an incentive, usually a percentage of the additional sales of eligible goods made in India, for a fixed number of years, so the payment follows production and sales actually achieved.

The Fund of Funds for Startups was created in 2016 with a corpus of ten thousand crore rupees and is operated by SIDBI, which does not invest directly in startups but puts money into alternative investment funds registered with the Securities and Exchange Board of India, and those funds in…

Under the definition notified for recognition by DPIIT, an entity qualifies as a startup for up to ten years from the date of its incorporation or registration, provided its turnover has not exceeded one hundred crore rupees in any financial year, it works towards innovation, development or improvement of products…

The government declared that 16 January, the day on which the Startup India Action Plan was released in 2016, would be celebrated as National Startup Day, and the National Startup Awards are associated with the same programme.

The target declared for Make in India was to raise the share of manufacturing in gross domestic product to twenty-five per cent along with the creation of a large number of jobs; the deadline, first set for 2022, was later extended.

The correct answer is B, the Department for Promotion of Industry and Internal Trade, known as DPIIT, which works under the Ministry of Commerce and Industry and is the nodal department for both programmes; it also recognises startups and maintains the national single window system.

Make in India was launched on 25 September 2014 as a national programme to make India a global hub of design and manufacturing, and it is implemented by the Department for Promotion of Industry and Internal Trade under the Ministry of Commerce and Industry.

Under a fixed exchange rate, the government or central bank decides the rate and keeps it there by buying and selling currency.