Indian Economy Previous Year Questions (PYQ) with Answers – Page 24

The Planning Commission was set up in March 1950 by a resolution of the Union Cabinet, not by the Constitution and not by an Act of Parliament, which made it an extra-constitutional advisory body.

The Government of India announces a Minimum Support Price for twenty-two mandated crops on the recommendation of the Commission for Agricultural Costs and Prices.

The Planning Commission was set up in March 1950 by a resolution of the Union Cabinet, not by the Constitution or by an Act of Parliament, so it was an extra-constitutional and non-statutory body.

Export security is not a recognised category of trade barrier; it is not a device that restricts the movement of goods across a border.

The Securities and Exchange Board of India regulates the securities market and protects investors. SEBI was set up as a non-statutory body in 1988 and was given statutory powers by the SEBI Act of 1992, passed after the Harshad Mehta scam exposed how weak market supervision was.

Make in India was launched on 25 September 2014 at Vigyan Bhawan in New Delhi, on the birth anniversary of Deendayal Upadhyaya.

A gift tax is charged on the transfer of money or property from one person to another without consideration; it is a tax on a transfer between persons, not on any sale of goods or supply of services.

The Reserve Bank Of India Act, as amended in 2016, states that the primary objective of monetary policy is to maintain price stability while keeping in mind the objective of growth.

India took the idea of five-year plans from the erstwhile Soviet Union, which began its first plan in 1928 under Stalin.

The language panel on the reverse of an Indian banknote carries the value of the note in 15 languages. Hindi and English are not part of that panel: they appear on the front of the note, so the total number of languages printed on a note comes to 17.

The all-India Index of Industrial Production is compiled with 2011-12 as its base year, a revision announced in 2017 that replaced the older 2004-05 base.

Elasticity measures how strongly the quantity demanded reacts to price, and zero means no reaction at all. Price elasticity of demand is the percentage change in quantity demanded divided by the percentage change in price.

The American economic historian Morris David Morris built the Physical Quality of Life Index in the 1970s for the Overseas Development Council, and set it out in his 1979 book on measuring the condition of the world’s poor.

Each extra unit of a good gives a consumer less additional satisfaction than the unit before it, so marginal utility falls as consumption rises.

The burden of a tax falls more heavily on whichever side of the market is less elastic, the side that cannot easily walk away.

. An Exchange-Traded Fund holds a basket of assets, such as the shares of an index, gold or bonds, and its units are listed and traded on a stock exchange like a share.

Milton Friedman put forward the natural rate of unemployment in his presidential address to the American Economic Association in 1967, published in 1968; Edmund Phelps reached a similar idea independently.

Income distance had the highest weight, followed by population, area and demographic change. The Fourteenth Finance Commission, chaired by Y.V.

The Second Plan (1956–61) was built on the model prepared by the statistician P. C. Mahalanobis, which gave priority to heavy and basic industries.

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