Indian Economy GK Questions with Answers – Page 5

A normal demand curve slopes downward from left to right, so its slope is negative. The law of demand says that, other things remaining the same, the quantity demanded of a good rises when its price falls and falls when its price rises.

Structural unemployment arises when the structure of the economy changes, through new technology or a lasting shift in what people buy, and workers' skills no longer match the jobs available.

This is false: an economic model can be stated in words, shown in diagrams or graphs, or written as equations.

It is one of the two education indicators in NITI Aayog's National Multidimensional Poverty Index. The national MPI measures deprivation, not income, across three equally weighted dimensions: health, education and standard of living.

Both statements describe the standard method used to draw India's poverty line. A poverty line is the income or spending needed to meet basic needs.

Bank rate and open market operations are instruments of the Reserve Bank's monetary policy; public debt and public revenue belong to fiscal policy.

SGST Acts are passed by each State Legislature, not by Parliament. The 101st Amendment, 2016 added Article 246A, which gives both Parliament and the State Legislatures the power to make laws on GST, and Article 279A, which created the GST Council.

Deflation is the opposite of inflation: the general price level keeps falling over a period of time. When prices fall steadily, the purchasing power of money rises, but the effect on the economy is usually harmful.

Soap is sold by many firms under different brands that buyers see as close but not perfect substitutes, which is the mark of monopolistic competition.

Higher interest on deposits encourages people to save rather than spend, which pulls money out of circulation and cools demand.

There is no Sustainable Development Goal by that name; employment comes under Goal 8, Decent Work and Economic Growth, and Goal 10 is Reduced Inequalities.

The Mahalanobis Model shaped the Second Five Year Plan (1956-61), the Plan Holiday followed in 1966-69, and the Rolling Plan came in 1978-80.

Demographic dividend is the growth bonus a country gets when its working age group grows larger than its dependent population.

Banks can create credit only from money deposited with them, so when people keep more cash at home, less is lent and re-lent, and the multiplier falls.

Surge pricing is a form of dynamic pricing in which the price moves up when demand rises faster than the available supply.

A demographic dividend is the boost to economic growth that a country can get when the share of people of working age, roughly 15 to 64 years, rises above the share of dependants, children and the elderly.

Primary deficit is fiscal deficit minus interest payments, so it shows the borrowing a government needs for its current needs alone.

Barley, finger millet, groundnut and sesamum are among the crops covered by Minimum Support Price, while areca nut, coffee and turmeric are not.

Expansionary policy cuts interest rates and adds money to the system, which pushes capital out and weakens the rupee further, so it is not a step to defend the currency.

The commercial-crops component of the National Food Security Mission covers cotton, jute and sugarcane, while coffee is a plantation crop handled by the Coffee Board.