Indian Economy GK Questions with Answers – Page 19

At full employment the measured unemployment rate is not negative; it stays at a small positive level called the natural rate of unemployment.

The Ease of Doing Business ranking was published by the World Bank in its annual Doing Business report.

e-NAM is an online trading platform for farm produce across India, and it lets farmers reach buyers beyond their local mandi at prices that reflect quality.

Dairy farming (primary) and weaving cloth (secondary) are correctly matched; storage and mineral exploration are not. The primary sector draws goods directly from nature: farming, dairy, fishing, forestry, mining and quarrying.

Insurance companies, pension funds and ordinary retail investors can all buy and sell both corporate bonds and government securities in India.

Foreign investors may hold G-Secs and exchanges run debt platforms, but the LAF window is not open to NBFCs. The Liquidity Adjustment Facility is the RBI's tool for managing day-to-day liquidity through repo and reverse repo operations.

Charles Fourier and Saint-Simon were French thinkers of the early nineteenth century who, with Robert Owen in Britain, argued that competition should be replaced by cooperative and planned communities in which property is held in common.

Consumer sovereignty means that the spending of consumers decides what is produced: a producer who makes what buyers do not want earns no profit and leaves the business, so in a market economy the consumer is said to rule.

It is called a command economy because a central planning authority, and not the market, commands how resources are used: it fixes the targets of output, allots raw materials to factories and often fixes prices and wages as well.

A severe balance of payments crisis, with foreign exchange reserves down to a few weeks of imports, forced the government to announce the New Economic Policy in July 1991.

It inserted the words socialist, secular and integrity into the Preamble, so the description of India became a sovereign socialist secular democratic republic.

The Industrial Policy Resolution of 1956 followed the Congress session at Avadi that called for a socialistic pattern of society, and it gave the public sector the commanding role.

Because resources are scarce and wants are unlimited, every economy must answer three questions, and these are called its central problems: what goods and in what quantity to produce, how to produce them, that is by which technique and combination of labour and capital, and for whom to produce, that…

Marx published the first volume of Das Kapital in 1867; it analysed capital, surplus value and the exploitation of labour and became the basic text of what is called scientific socialism.

In such an economy the state owns and runs the industries that need very large capital or serve strategic and social purposes, regulates the rest by law, and leaves ordinary production to private enterprise, while keeping responsibility for welfare and employment.

The Scottish economist published the Wealth of Nations in 1776 and is called the father of economics; he argued that if each person pursues his own interest in a free market, an invisible hand guides the outcome to the good of society, which became the classic defence of capitalism and…

In a capitalist or market economy the means of production are privately owned and nobody issues orders about production.

NITI Aayog is a policy think tank that designs strategies and long-term policy and programme frameworks; it neither imposes policies on states nor allocates funds.

It is the Finance Ministry's nodal department for economic policy, at home and abroad, including the management of foreign exchange.

The laws passed between 1948 and the middle of the nineteen fifties ended zamindari, jagirdari and similar tenures across the country and brought about twenty million cultivators into direct relation with the state, and the First Amendment of 1951 secured those laws, so the class of rent collecting intermediaries disappeared.