Indian Economy Previous Year Questions (PYQ) with Answers – Page 6

Pairs 2 and 4 are correct; pairs 1 and 3 have the categories the wrong way round. Physical capital is split by how long it lasts in production.

The First and Ninth Plans gave top priority to agriculture, and the Seventh Plan's slogan was food, work and productivity.

The Cabinet resolution that set up the Planning Commission in March 1950 named both aims.

Dairy farming (primary) and weaving cloth (secondary) are correctly matched; storage and mineral exploration are not. The primary sector draws goods directly from nature: farming, dairy, fishing, forestry, mining and quarrying.

Insurance companies, pension funds and ordinary retail investors can all buy and sell both corporate bonds and government securities in India.

Foreign investors may hold G-Secs and exchanges run debt platforms, but the LAF window is not open to NBFCs. The Liquidity Adjustment Facility is the RBI's tool for managing day-to-day liquidity through repo and reverse repo operations.

CBLO was a short-term borrowing and lending instrument backed by government securities, which places it in the money market. The money market deals in funds lent for short periods, from overnight up to one year, through instruments such as call money, treasury bills, commercial paper, certificates of deposit and repos.

The Second Plan put its stress on basic and heavy industries, not on consumer goods, which were left mainly to small and cottage industries.

The Sugamya Bharat Abhiyan is a campaign to make places, transport and information accessible; it is run by the Department of Empowerment of Persons with Disabilities and has no pension component.

Under monopolistic competition a single firm faces a demand curve that is relatively elastic, so it slopes downward but is fairly flat.

Bharat Heavy Electricals Limited is a public sector undertaking, which means the government holds the majority of its shares and controls its management.

Unemployment that rises when the economy slides into a recession or a depression, and falls again in a boom, is called cyclical unemployment.

A monopolist is the only seller of a good that has no close substitute, so buyers cannot shift away easily when the price rises and the demand curve the firm faces is steeper, that is less elastic.

TISCO, now Tata Steel, is owned and run by private shareholders, which is what makes an enterprise part of the private sector.

The Aatmanirbhar Bharat Rojgar Yojana was announced in October 2020 as part of the Aatmanirbhar Bharat package, to bring back the jobs lost during the Covid-19 lockdown.

Foreign investors bring in foreign exchange and look for predictable rules, and the difficulty most often listed for India is regulatory uncertainty: changing rules, clearances spread across departments and states, and disputes that take long to settle.

An inward-looking trade strategy, better known as import substitution, was the policy India followed from the Second Five Year Plan until 1991, and it rested on two instruments.

M3 is called broad money or aggregate monetary resources. It equals M1 plus the time deposits of the public with banks, so it measures almost all the money available in the economy.

Total fertility rate (TFR) adds up the age-specific fertility rates of women aged 15 to 49 to show how many children a woman would have if she lived through these years at current rates.

All four plans came before the First Five Year Plan started on 1 April 1951. The Bombay Plan of 1944 was prepared by eight industrialists led by J. R. D. Tata and G. D. Birla and favoured state-led heavy industry.