Indian Economy Previous Year Questions (PYQ) with Answers – Page 2

The orange economy is another name for the creative economy. The term was popularised by a 2013 Inter-American Development Bank book, and orange was chosen because it is often linked with culture and creativity.

Statements 1 and 3 give the standard definitions, but the Worker Population Ratio counts the employed, not the unemployed. In India these measures come from the Periodic Labour Force Survey.

By the middle of 1991 India's foreign exchange reserves had fallen to about one billion dollars, enough to pay for only about two weeks of imports, and the country stood close to default on its external payments.

The National Small Industries Corporation was set up in 1955 to help small units with machinery on hire purchase, raw material supply, marketing and government purchase, and it works under the Ministry of Micro, Small and Medium Enterprises.

The Union Government created a separate Ministry of Cooperation on 6 July 2021 to strengthen the cooperative movement under the vision "Sahkar Se Samriddhi" (prosperity through cooperation).

The Indian Institute of Entrepreneurship in Guwahati was set up in 1993, not 1999, while its stated aim is indeed training, research and consultancy for small and micro enterprises.

PKVY was started to help farmers shift to chemical-free, organic cultivation. Paramparagat means traditional, and the scheme revives traditional, low-input farming.

The Nirbhaya Fund is a non-lapsable corpus administered by the Department of Economic Affairs in the Ministry of Finance. The fund was announced in the Union Budget of 2013-14 with an initial corpus of 1,000 crore rupees, after the December 2012 Delhi gang-rape case that shocked the country.

When a company quietly cuts the quantity in a pack but keeps the same price, the buyer pays more per unit; this hidden price rise is shrinkflation.

The financial cycle is the rise and fall of credit and asset prices, and the ratio of credit to GDP shows how far borrowing has run ahead of the economy.

Core inflation leaves out food and fuel, whose prices swing sharply with monsoons, harvests and world oil prices, so that it shows the steady, underlying trend of prices.

When a currency depreciates, a country's goods become cheaper for foreign buyers, while imports become dearer at home, not cheaper.

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.

After the Third Five Year Plan (1961-66) ran into trouble, India ran three one-year Annual Plans from 1966 to 1969 before the Fourth Plan began.

A monopolist restricts output and charges a higher price, so it does not produce the efficient level of output. A monopoly is a single seller of a product with no close substitutes and strong barriers to entry.

The Second Five Year Plan (1956–61) was built on a growth model prepared by the statistician P. C. Mahalanobis, so it is called the Mahalanobis Plan.

Bretton Woods set up fixed, not floating, exchange rates. At the Bretton Woods Conference in New Hampshire, USA, in July 1944, 44 Allied nations agreed on a new post-war money order.

Statement II is wrong because the IBRD works alongside other World Bank Group institutions and partners, not single-handedly. The IBRD was set up at the Bretton Woods Conference in 1944, together with the IMF.

Statement II is wrong because the 15th Finance Commission fixed the States' share at 41%, not 45%. The 15th Finance Commission, chaired by N. K. Singh, covered 2021-22 to 2025-26.

Jal Jeevan Mission was announced on 15 August 2019, not in 2016, so this is the statement that is not correct.