Indian Economy Previous Year Questions (PYQ) with Answers – Page 4

Monetary policy is run by the central bank, the Reserve Bank of India, which controls the supply and the cost of money in the economy.

Fiscal policy is the government's use of taxation and public spending, so taxes are its main tool. In India, fiscal policy is run by the Union Government through the Ministry of Finance, and the Union Budget is its yearly statement.

The Seventh Five Year Plan (1985–90), launched under Prime Minister Rajiv Gandhi, had the slogan 'food, work and productivity'. It aimed to raise food grain production, create jobs and improve productivity, and it laid stress on modern technology.

The First Five Year Plan (1951–56) gave top priority to agriculture, irrigation and power, because India faced food shortages after Partition and needed to feed its people first.

RCEP is a free trade agreement built around ASEAN and its FTA partners, and India chose to stay out of it.

NISHTHA stands for National Initiative for School Heads' and Teachers' Holistic Advancement, a programme to train school teachers and heads.

Interest on the public debt is the single largest item of the Union Government's revenue expenditure, taking roughly a third of it.

The Rangarajan Committee built its poverty line basket from all three parts named in the question. The expert group headed by C. Rangarajan was set up in 2012 and reported in 2014, to review the Tendulkar method.

By the law of demand, a normal good is bought less when its own price rises, while the effect on the other good depends on two forces pulling in opposite directions.

The Human Development Index, published by the United Nations Development Programme (UNDP) since 1990 and designed with the economist Mahbub ul Haq, measures three dimensions.

Under Article 270 of the Constitution, the taxes levied and collected by the Union, such as income tax, corporation tax, Union excise duties and the central GST, form a divisible pool that is shared with the States on the recommendation of the Finance Commission.

This statement is not correct, because at the equilibrium of a competitive firm marginal cost must be rising. A firm in perfect competition is a price taker, so the price it gets equals its marginal revenue.

Invisibles are part of the current account of the balance of payments, not the capital account. The balance of payments records all of a country's transactions with the rest of the world and has two main parts.

The Twelfth Five-Year Plan (2012-17) had the theme "Faster, More Inclusive and Sustainable Growth". It continued the inclusive-growth idea of the Eleventh Plan (2007-12), whose theme was "Towards Faster and More Inclusive Growth", and added sustainability as a stated goal.

Government spending adds to income more than an equal transfer, and its effect is smaller when money supply is not expanded alongside it.

A fully (perfectly) elastic supply curve is a horizontal line: sellers will supply any quantity at one fixed price and nothing below it.

M1, called narrow money, is the most liquid measure of money supply in India. It is made up of currency with the public, demand deposits with banks, and other deposits with the Reserve Bank of India.

Per capita GDP is total output divided by total population, and it can be broken into three parts that multiply together.

The Union excise levied on petrol and diesel has three parts. Basic Excise Duty is an ordinary Union tax, so it goes into the divisible pool and a share of it reaches the states as recommended by the Finance Commission under Article 270.

The Suresh Tendulkar expert group, which reported to the Planning Commission in 2009, deliberately moved away from the old calorie-based poverty line.