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Indian EconomyMediumAsked in: CDS · CDS-II 2017, GK

Arrange the following events in sequential order as they happened in India: 1. Mahalanobis Model 2. Plan Holiday 3. Rolling Plan Select the correct answer using the code given below.

  1. A.1, 2, 3
  2. B.3, 2, 1
  3. C.2, 3, 1
  4. D.1, 3, 2

Correct answer

A. 1, 2, 3

Explanation

The correct answer is A, 1, 2, 3. The Mahalanobis Model shaped the Second Five Year Plan (1956-61), the Plan Holiday followed in 1966-69, and the Rolling Plan came in 1978-80.

P.C. Mahalanobis, the statistician who founded the Indian Statistical Institute, built the model behind the Second Plan, which stressed rapid growth of heavy and basic industries. After the Third Plan (1961-66) was hit by the wars with China and Pakistan and by droughts, the government replaced five year plans with three annual plans from 1966 to 1969; this break is called the Plan Holiday. The Janata Party government ended the Fifth Plan a year early in 1978 and adopted a Rolling Plan, revised every year, until the Congress returned and the Sixth Plan began in 1980.

B is wrong because it reverses the true order. C is wrong because it puts the Plan Holiday before the Mahalanobis Model. D is wrong because it places the Rolling Plan before the Plan Holiday.

Exam tip: Mahalanobis (2nd Plan, 1956), Plan Holiday (1966-69), Rolling Plan (1978-80).

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Q1.Indian EconomyAsked in: CDS · CDS-II 2018, GKHard

The Fourteenth Finance Commission assigned different weights to the following parameters for distribution of tax proceeds to the States :

1. Income distance

2. Population

3. Demographic changes

4. Area

Arrange the aforesaid parameters in descending order in terms of their weights.

  1. A.1-2-3-4
  2. B.1-2-4-3
  3. C.1-3-2-4
  4. D.4-3-2-1
Show answer
Correct answer: B. 1-2-4-3

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

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Which one of the following statements for a firm's equilibrium in Perfect Competition is not correct ?

  1. A.The market price must be greater or equal to average variable cost in the short run.
  2. B.The market price must be equal to marginal cost.
  3. C.The market price must be equal to average cost in the long run.
  4. D.The marginal cost decreases at the equilibrium output.
Show answer
Correct answer: D. The marginal cost decreases at the equilibrium output.

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.

Q4.Indian EconomyAsked in: CDS · CDS-II 2024, GKEasy

Which of the following is not included in the Capital Account of the Balance of Payments of a country?

  1. A.Foreign Direct Investment
  2. B.Commercial Borrowing
  3. C.Invisibles
  4. D.External Assistance
Show answer
Correct answer: C. Invisibles

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.

Q5.Indian EconomyAsked in: CDS · CDS-II 2024, GKEasy

Which one among the following was the focus of the Twelfth Five-Year Plan?

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  4. D.Attainment of Self-reliance
Show answer
Correct answer: A. Sustainable and Inclusive Growth

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