Indian Economy Previous Year Questions (PYQ) with Answers – Page 13

The Industrial Policy Resolution of 1948 made only three fields an exclusive monopoly of the central government: arms and ammunition, the production and control of atomic energy, and the ownership and management of railway transport.

The Industrial Policy Resolution of 1956 placed every industry in one of three schedules.

M3, called broad money or aggregate monetary resources, is the measure the Reserve Bank watches most closely, and it adds the time deposits of the banking system to narrow money.

It arises when the structure of the economy changes, so that the jobs being created need skills different from those the available workers possess; it lasts long and is cured by retraining and education rather than by a revival of demand.

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.

The Industrial Policy Resolution of 1956 divided industries into three schedules. Schedule A listed seventeen industries to be the exclusive responsibility of the state, such as arms, atomic energy, railways and heavy industry.

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.

Seasonal unemployment is the kind in which people find work only in certain months and sit idle in the rest.

The law of variable proportions divides short run production into three stages. In stage one, increasing returns, both total and marginal product rise because the fixed factor is still under used.

The marginal product of a variable factor first rises, reaches a peak and then falls, so the curve traced out is an inverted U. This is the law of variable proportions at work.

Setting up an institution in India means putting money into a real asset and running it, which is exactly what Foreign Direct Investment is.

Goods and Services Tax is collected by the state where the goods or services are finally consumed, not by the state that produced them.

The circular flow of income in a simple economy has only two sectors, households and firms, and it shows two streams running in opposite directions.

Stagflation is the awkward state in which prices keep rising while output stagnates and unemployment stays high, so the usual trade-off between inflation and unemployment breaks down.

HYVP was launched in 1966-67 and it carried the Green Revolution into Indian fields by spreading dwarf, high-yielding seeds.

The Industrial Disputes Act was passed in 1947 and governs how disputes between employers and workmen, including matters that concern trade unions as well as individual workmen, are raised and settled.

When the Government announced the rabi Minimum Support Prices for the marketing season 2021-22, it also published the margin of each price over the A2 plus FL cost of production.

A.C. Pigou belongs to the welfare group of definitions, not the wealth group.