Indian Economy Previous Year Questions (PYQ) with Answers – Page 14

The neonatal period is the first 28 completed days after birth, and the neonatal mortality rate counts the deaths in that period for every 1,000 live births in a year.

India allows 100 per cent foreign direct investment through the automatic route in the construction, operation and maintenance of rail infrastructure projects.

Statement 1 is right because when the United States Federal Reserve tightens, returns there become attractive and portfolio money flows out of emerging markets, which is capital flight.

Statement 1 is right because the NEER is a trade weighted index of the rupee against a basket of partner currencies, so a rise in the index means the rupee has appreciated in nominal terms.

Self-reliance, the goal set out in India's early plans, means building the capacity to produce at home what the country would otherwise have to buy abroad, so the true indicator is that imports of such goods are avoided.

The balance of payments is the statement that records every economic transaction between the residents of a country and the rest of the world in a given period, which is precisely what the external sector of an economy means; it covers merchandise trade, services, income, transfers and capital flows.

The Monopolies and Restrictive Trade Practices Act was passed in 1969 and came into force on 1 June 1970. It followed the report of the Dutt Committee on industrial licensing, which found that economic power had gathered in a few business houses.

Gross National Product minus depreciation gives Net National Product. Depreciation is the wear and tear of machinery, buildings and other capital goods during the year.

The product method adds up the value of goods and services produced by all firms in the economy. National income can be measured in three ways, and all three should give the same figure.

Statement one is correct because the securities transaction tax is charged on the purchase and sale of securities on a recognised stock exchange and is borne by the investor who makes the transaction; the burden cannot be passed on to anybody else, which is the test of a direct tax…

GST is charged on the supply of goods and services, and although the registered supplier deposits it with the government, the amount is recovered from the buyer in the price.

Consumer theory studies how a household decides to spend its money among the goods and services available to it. The idea rests on three things: the wants of the consumer, the prices of goods, and the income in hand, which is the budget constraint.

The Union Budget 2021-22 proposed raising the corpus of the Contingency Fund of India from five hundred crore rupees to thirty thousand crore rupees, and the change was carried through the Finance Bill of that year.

The budget estimate for the fiscal deficit of the central government in 2021-22 was placed at 6.8 per cent of gross domestic product.

It was the first union budget in India not to be printed.

A receipt is capital if it either creates a liability for the government or reduces an asset it holds.

The public sector is owned and run by the government, and its guiding aim is social welfare rather than profit.

National income is estimated by three standard methods — the product or value-added method, the income method and the expenditure method — and there is no banking method.

Net National Product is simply Gross National Product minus depreciation, that is NNP = GNP − Depreciation.

In the Union Budget, money coming to the government is split into revenue receipts and capital receipts, and the test is exactly this one.