In the context of any country, which one of the following would be considered as part of its social capital?
- A.The proportion of literates in the population
- B.The stock of its buildings, other infrastructure and machines
- C.The size of population in the working age group
- D.The level of mutual trust and harmony in the society
Correct answer
Explanation
The correct answer is D, the level of mutual trust and harmony in the society. Social capital means the networks, shared norms and trust that let people in a society work together, so it is measured by relationships rather than by things or numbers of people. The idea was popularised by Robert Putnam, who argued that a community rich in trust and civic association gets better government and faster growth because agreements are kept without costly enforcement. Self-help groups, cooperatives and village committees are the everyday form it takes in India. A is wrong because literacy is part of human capital, the skill and knowledge embodied in people. B is wrong because buildings, infrastructure and machines are physical or produced capital. C is wrong because the size of the working age group is the demographic dividend, a matter of population structure. Exam tip: physical capital is what you build, human capital is what you learn, social capital is whom you trust.
Practice Questions
View allAccording to the law of diminishing marginal utility, as the amount of a good consumed increases, the marginal utility of that good tends to
- A.improve
- B.diminish
- C.remain constant
- D.first diminish and then improve
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Each extra unit of a good gives a consumer less additional satisfaction than the unit before it, so marginal utility falls as consumption rises.
Read the full explanation →Consider the following statements about impact of tax : 1. A tax is shifted forward to consumers if the demand is inelastic relative to supply. 2. A tax is shifted backward to producers if the supply is relatively more inelastic than demand. Which of the statements given above is/are correct?
- A.1 only
- B.2 only
- C.Both 1 and 2
- D.Neither 1 nor 2
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The burden of a tax falls more heavily on whichever side of the market is less elastic, the side that cannot easily walk away.
Read the full explanation →UBI, as an alternative for subsidies in poverty alleviation, stands for
- A.Union Basic Income
- B.Undefined Basic Income
- C.Unconditional Basic Income
- D.Universal Basic Income
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UBI is the idea of paying every citizen a fixed sum of money regularly, without conditions, in place of a large number of separate subsidies and welfare schemes.
Read the full explanation →Who among the following is the Chairman of the Fourteenth Finance Commission?
- A.C. Rangarajan
- B.Vijay Kelkar
- C.Y. V. Reddy
- D.Rakesh Mohan
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The Fourteenth Finance Commission, set up in 2013 for the award period 2015-2020, was chaired by Y. V. Reddy, a former Governor of the Reserve Bank of India.
Read the full explanation →Why was constitutional amendment needed for introducing GST?
- A.States were not willing to agree with the Union for introduction of GST without amendment in the Constitution.
- B.GST was to be implemented on concurrent base and Article 246 was inadequate for such a case.
- C.The Empowered Committee of Finance Ministers had recommended for constitutional amendment.
- D.The GST Council had recommended for constitutional amendment so that its power enhances.
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GST is levied by the Union and the States together on the same supply, and Article 246, which splits taxing powers between them through separate lists, did not allow such a concurrent tax.
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