Before the inception of the First Five Year Plan, which among the following Plans were initiated in India? 1. Bombay Plan 2. Peoples Plan 3. Sarvodaya Plan 4. Gandhian Plan

The correct answer is B, France. France was the first country to introduce GST, in 1954. The idea came from Maurice Lauré, a French tax official, who designed a tax charged at every stage of production and sale but only on the value added at that stage. This avoids "tax on tax", the cascading effect of older sales taxes. This value added tax (VAT) model later spread across Europe and the world. India adopted GST on 1 July 2017 through the 101st Constitutional Amendment, with a dual model: CGST and SGST on sales within a state and IGST on sales between states. A is wrong because Canada brought in its GST only in 1991. C is wrong because Australia introduced GST in 2000. D is wrong because Germany adopted its VAT system in 1968, long after France. Exam tip: First GST = France, 1954 (Maurice Lauré); India's GST from 1 July 2017 under the 101st Amendment; 1 July is observed as GST Day.

The correct answer is A, Assam. Assam became the first state to ratify the GST Constitution Amendment Bill, on 12 August 2016, soon after Parliament passed it. Because GST changes the taxing powers of both the Centre and the states, the bill needed approval from at least half of the state legislatures under Article 368. Bihar was the second state and Jharkhand the third. After enough states ratified it, the President gave assent on 8 September 2016 and it became the Constitution (101st Amendment) Act, 2016. It added Article 246A and created the GST Council under Article 279A, and GST came into force on 1 July 2017. B is wrong because West Bengal ratified the bill only after Assam. C is wrong because Meghalaya was not the first state to ratify it. D is wrong because Arunachal Pradesh was not the first state either. Exam tip: GST = 101st Amendment, 2016; first state to ratify = Assam; GST Council = Article 279A, chaired by the Union Finance Minister; GST in force from 1 July 2017.

The correct answer is A, 2nd Oct 2014. Prime Minister Narendra Modi launched the Swachh Bharat Mission on 2 October 2014, Mahatma Gandhi's 145th birth anniversary, at Rajpath in New Delhi. Its target was a clean and open defecation free (ODF) India by 2 October 2019, Gandhiji's 150th birth anniversary, mainly by building household and community toilets and improving waste management. The mission has two parts, Swachh Bharat Mission (Gramin) for villages and Swachh Bharat Mission (Urban) for towns and cities. Its logo is Gandhiji's round spectacles with the words "Swachh Bharat". B is wrong because 14 November is Children's Day, Jawaharlal Nehru's birthday, and 2015 is also the wrong year. C is wrong because 14 November 2014 was Children's Day, not the launch date. D is wrong because by 2 October 2015 the mission had already completed its first year. Exam tip: Swachh Bharat = 2 October 2014, target ODF India by 2 October 2019, logo = Gandhiji's spectacles; the Swachh Survekshan ranks cities on cleanliness.

The correct answer is C, minimum support price. The MSP is announced before sowing so that farmers know the lowest price at which the government will buy their crop. The Union Government fixes it on the recommendation of the Commission for Agricultural Costs and Prices (CACP), set up in 1965, and the final approval comes from the Cabinet Committee on Economic Affairs. It is announced separately for kharif and rabi crops, while sugarcane gets a fair and remunerative price instead. Wheat was the first crop brought under MSP, in 1966-67, at the start of the Green Revolution. Option A is wrong because a buffer stock is grain the government holds for food security, and no "buffer price" is announced for farmers. Option B is wrong because the issue price is the rate at which the Food Corporation of India sells grain to the States for the public distribution system. Option D is wrong because "fair sustenance price" is not an official price at all. Exam tip: MSP is recommended by the CACP and approved by the CCEA; sugarcane gets the FRP instead.

The correct answer is B, inflationary gap. When demand pushes the economy to produce more than it can at full employment, the extra demand only drives prices up. Full-employment GDP, also called potential GDP, is the output an economy can produce when all its resources are in use. If aggregate demand is so high that equilibrium real GDP sits above this level, the difference is the inflationary gap. Real output cannot keep rising beyond capacity, so the excess shows up as rising prices. The idea comes from J.M. Keynes, who used it in his 1940 pamphlet "How to Pay for the War", and the cure is to cut demand through higher taxes, lower government spending or tighter money. Option A is wrong because a recessionary gap is the opposite case, when equilibrium GDP falls short of full employment. Option C is wrong because the income multiplier measures how much income rises for each rupee of new spending. Option D is wrong because automatic stabilisers are tools, such as progressive taxes, that help narrow these gaps. Exam tip: output above potential is an inflationary gap; output below potential is a recessionary gap.