Indian Economy Mixed Quiz: Set 4

A market price contains the indirect taxes the buyer pays, which never reach the producer, so they must be taken out.

Maharatna, Navratna and Miniratna are status tags that the Government of India gives to central public sector enterprises on the basis of their size, profits and performance.

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.

Prime Minister Narendra Modi launched the Swachh Bharat Mission on 2 October 2014, Mahatma Gandhi's 145th birth anniversary, at Rajpath in New Delhi.

The State Bank of India was not part of the 1969 nationalisation because it was already a government-owned bank.

The Index of Industrial Production (IIP) covers only three sectors: mining, manufacturing and electricity.

Monetary policy, the control of money supply and interest rates to keep prices stable, is the job of the central bank, the RBI, set up on 1 April 1935 under the RBI Act 1934 and nationalised on 1 January 1949.

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.

Headline inflation is the change in the overall Consumer Price Index, which tracks the average price of a fixed basket of goods and services bought by a typical household, including food, fuel, clothing, housing and services.

Sensex, short for ‘Sensitive Index’, tracks 30 large, well-established and actively traded companies listed on the BSE, chosen from different sectors of the economy.

When the government runs a deficit, it borrows heavily from the same pool of savings that private firms use, so interest rates rise and private investment falls.

The expert group headed by Suresh Tendulkar, which reported in 2009, recommended measuring poverty through MPCE on the Mixed Reference Period.

The Twelfth Finance Commission, set up in 2002, was headed by Dr. C. Rangarajan, a former Governor of the Reserve Bank of India, and its award covered the five years 2005–10.

The MSP is announced before sowing so that farmers know the lowest price at which the government will buy their crop.

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 Fiscal Responsibility and Budget Management Act, 2003 is a fiscal reform: it binds the Union government to cut its fiscal and revenue deficits and to report on its borrowing.

When output of every year is valued at the same fixed set of prices, any change in the total must come from a change in the quantity produced.

Gulzarilal Nanda became the first Deputy Chairman when the Planning Commission began work in 1950, and he later became interim Prime Minister twice, in 1964 and 1966.

A hawkish stance means the central bank treats inflation as its first enemy and is ready to raise interest rates and tighten money supply, even at some cost to growth.

It is the advance grant the Lok Sabha makes so that the government can keep spending from 1 April until the full budget is passed.