Indian Economy Previous Year Questions (PYQ) with Answers – Page 23

In a free market, prices are set by buyers and sellers, not by the government. The price mechanism is how a market economy answers the basic questions of what to produce, how much and for whom.

In national income accounting the steps run from private income to personal income to personal disposable income. Private income is the factor income of the private sector plus transfers.

Keynes made the paradox of thrift a central idea of his economics in the 1930s. The paradox says that what is wise for one household can hurt the whole economy.

On the frontier all resources are fully and efficiently used, so producing more of one good is possible only by giving up some of the other.

The printed maximum retail price is the most a seller may charge, so it works as an upper limit, a price ceiling.

In Keynes's consumption function, consumption rises as income rises, so the curve slopes upward.

Make in India was launched in 2014, not 2018, and fostering innovation is one of its stated objectives. Prime Minister Narendra Modi launched Make in India on 25 September 2014 to turn India into a global hub for design and manufacturing.

A poverty line is the money needed to buy a minimum basket of goods, and that basket costs more in some States than in others.

The Atal Innovation Mission (AIM) was set up in 2016 by NITI Aayog as the Government of India's flagship programme to promote innovation and entrepreneurship.

The real interest rate is the nominal rate minus the rate of inflation: 24 minus 10 gives 14 percent. The nominal interest rate is the rate written on the loan, here 24 percent a year.

A monopoly's marginal revenue curve lies below its average revenue curve, not above it. A monopolist faces the whole market's downward-sloping demand curve, which is its average revenue curve.

When one input is kept fixed and another is added again and again, each extra unit eventually adds less to output than the one before.

PFMS is run by the office of the Controller General of Accounts (CGA) in the Department of Expenditure, Ministry of Finance.

Section 3 of the Act obliges the State Government to provide at least one hundred days of unskilled manual wage employment in a financial year to every rural household whose adult members volunteer for such work, and the guarantee belongs to the household, not to each member.

The Global Competitiveness Report is the World Economic Forum's assessment of how well countries' institutions, policies and markets support productivity and growth.

The repo rate is the rate at which the Reserve Bank of India lends short-term money to commercial banks against the collateral of government securities under a repurchase agreement, which is where the name repo comes from; it is the policy rate announced by the Monetary Policy Committee and the…

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.

Price elasticity of demand is the percentage change in quantity demanded divided by the percentage change in price. If the elasticity is zero, the numerator is zero: buyers take the same quantity however the price moves.

Social capital means the networks, shared norms and trust that let people in a society work together, so it is measured by relationships rather than by things or numbers of people.

Disguised unemployment is the situation in which more people work at a job than it actually needs, so taking some of them away would not reduce output at all.