Indian Economy GK Questions with Answers – Page 37

Issue price is the subsidised rate at which grain from the government's buffer stock is sold through ration shops, and it is deliberately kept below the market price.

The General Insurance Corporation of India, or GIC, was incorporated as a company in November 1972, the year general insurance was nationalised in India.

Unemployment that rises when the economy slides into a recession or a depression, and falls again in a boom, is called cyclical unemployment.

The Industrial Policy Resolution of 1956 placed every industry in one of three schedules, according to how large a role the state was to play in it.

Banking produces no goods; it supports the making and selling of goods by taking deposits, lending and moving money, so it belongs to the tertiary or service sector.

Agriculture still employs the largest share of India's workers because industry and services have not created enough jobs to draw them away, so people stay on the farm for want of a better option.

An intermediate good is bought by one producer to be used up or built into another good in the same year, while a final good is bought by the last user for consumption or investment.

There is no such method of measurement; the GDP deflator is a price index derived after the aggregates have been estimated, used to convert nominal values into real values.

Interest payments are the cost of borrowing done in earlier years, so taking them out of the fiscal deficit leaves the borrowing the government needs for this year's own activities; a zero primary deficit means the government is borrowing only to pay interest on past debt.

The fiscal deficit is the gap between what the government spends and everything it receives other than borrowings, so it measures exactly how much the government must borrow during the year and is the headline figure watched in every Budget.

The National Income Committee was appointed in 1949 with Professor P. C. Mahalanobis as chairman and Professor D. R. Gadgil and Dr V. K. R. V. Rao as members; its reports in the early 1950s produced the first official estimates of national income for independent India and shaped the work…

He estimated India's national income for the year 1867-68 and used the figure in his argument about the drain of wealth from India under British rule, which is why he is remembered as the first to attempt the exercise.

The Survey is written in the Economic Division of the Department of Economic Affairs in the Ministry of Finance, under the overall supervision of the Chief Economic Adviser, and is laid before both Houses of Parliament, usually a day before the Union Budget.

Both statements state the same rule from opposite sides: national income is the value of final goods and services, and the value of intermediate goods is excluded so that the same output is not counted at every stage of production.

Work through the expression in two steps. Adding depreciation to a net aggregate turns it gross, so NNP at market prices plus depreciation gives GNP at market prices.

The deflator is nominal GDP divided by real GDP and multiplied by a hundred, so it is not computed from a fixed basket of goods at all; it is implied by the two GDP series, and that is exactly why it carries the word implicit.

National income counts only final goods and services; intermediate goods are deliberately left out, because counting the flour as well as the bread would mean counting the same value twice.

OPEC was founded in 1960 at a conference in Baghdad by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela, and its secretariat was first at Geneva before moving to Vienna in 1965, where it remains.

The South Asian Association for Regional Cooperation was founded in 1985 at Dhaka, where its charter was signed, and its permanent secretariat was set up at Kathmandu in Nepal in 1987.

The United Nations Monetary and Financial Conference met at Bretton Woods in New Hampshire in the United States in July 1944 and agreed to set up the International Monetary Fund and the International Bank for Reconstruction and Development, which is why the two are called the Bretton Woods twins; both…