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The correct answer is A sustained increase in real per capita income.

• A sustained increase in real per capita income is a sign of economic growth.

• Factors Affecting Economic development
  • Infrastructural improvement – Development in the infrastructure improves the quality of life of people. Therefore, an increase in the rate of infrastructural development will result in the economic development of a nation.
  • Education – Improvement in literacy and technical knowledge will result in a better understanding of the usage of different equipment. This will increase labor productivity and in turn, will result in the economic development of a nation.
  • Increase in the capital – Increase in capital formation will result in more productive output in an economy and this will affect the economic development positively.
  • Human resources – this is a major factor that is responsible for boosting the economic growth of a country. The rate of increase in the skills and capabilities of a workforce ultimately increases the economic growth of a country.
  • Infrastructure development- Improvements and increased investment in physical capital such as roadways, machinery, and factories will increase the efficiency of economic output by reducing the cost.
  • Planned utilization of natural resources – Proper use of available natural resources like mineral deposits helps boost the productivity of the economy.
  • Population growth – An increase in the growth of the population will result in the availability of more human resources which in turn will increase the output in terms of quantity. This is also an important factor that influences economic growth.
  • Advancement in technology – Improvement in technology will affect the economic growth of a country positively. The application of advanced technology will result in increased productivity of labour and economic growth will advance at a lower cost.

The correct answer is Total expenditure - (Revenue receipts + recovery of loans + receipts from disinvestment).

• Fiscal deficit implies=Total expenditure - (Revenue receipts + recovery of loans + receipts from disinvestment).

• Fiscal deficit = Total Expenditure – Total Revenue (excluding the borrowings)
  • The fiscal deficit is seen in all economies, while the surplus is considered a rare occurrence. A high fiscal deficit is not always seen as bad for the economy it is good if the amount is used in constructing roads, railways, airports, etc. These will be generating revenue for the government after a certain period.
• Components of Fiscal Deficit
  • The fiscal deficit is composed of two components, namely income and expenditure.  
• Components of Total Income of the government
  • These consist of two variables, which are revenue generated from various taxes such as GST, taxes from union territories, custom duties, corporation tax, etc. collected by the center, and the non-tax revenues which consist of dividends and profits, interest receipts, and other non-tax revenues.
• Components of Expenditure
  • The government expenditure consists of capital expenditure, revenue expenditure such as salary and pension payments, grants for creation of capital assets, infrastructure, healthcare, and interest payments.
  • The fiscal deficit is calculated as a percentage of the GDP (Gross Domestic Product).

The correct answer is cultivation of grapes.

• Viticulture refers to the branch of science, which involves the study and cultivation of grapes.
• When the grapes are used for winemaking, it is also known as viniculture.

• The rearing of silkworms to produce raw silk is called sericulture.
• Olericulture is the science of vegetable growing, dealing with the culture of non-woody plants for food.
• The breeding, rearing, and transplantation of fish by artificial means is called pisciculture.

The correct answer is 2017.

• Bihar Startup policy has been approved in 2017 by the Bihar cabinet.

• This policy will prepare favourable start-up environment for the overall development in the state, due to which Bihar will emerge as a most favourable destination, where the structure of international level will be developed in the probable area.
• Provision of venture capital of Rs. 500 crore.
• Beej Anudan up to 10 lac rupees to every start-up by the young industrialist as an expenditure to be incurred on initial activities, research, skill training, marketing assistance. 

The correct answer is All of the above.

•  Prices of which of the following commodities are considered while calculating the Wholesale Price Index (WPI)
  • Primary Goods
  • Fuel and Power(Oil)
  • Manufactured Goods
• Manufactured goods have maximum weightage.

• Wholesale price index (WPI)
  • WPI is an index that measures and tracks the changes in the price of goods in the stages before the retail level.
  • The WPI is published by the Economic Adviser of the Ministry of Commerce and Industry.
• Consumer price index (CPI)  
  • Consumer Price Index (CPI) tracks the prices of goods and services purchased by consumers.
  • The CPI is published by the Central Statistical Organisation of the Ministry of Statistics and Programme Implementation
• Both WPI and CPI can be used for calculating inflation in the country.
• Currently, India uses CPI for calculating inflation.

The correct answer is a - II, b - I, c - IV, d - III.

Note: This question has been cancelled by the MPSC (Final answer key) 

• The table below is correctly matched

The correct answer is Hoe.

• A hoe is a simple tool used for removing weeds & for loosening the soil.
  • It consists of a blade set at right angles to a long handle.
  • It is commonly used in gardening and horticulture to loosen dirt and to chop weeds.
  • Primitive subsistence agriculture is practiced on small patches of land with the help of hoe.
  • Hoe helps in clearing soil of old roots and crop residues.

• Hoes are of mainly two types namely, draw hoes and scuffle hoes.
  • Draw hoes are used for shaping soil
  • Scuffle hoes are used for weeding and aerating soil.
• Hoe farming is a primitive form of agriculture.

The correct answer is Both (A) and (R) are true and (R) is the correct explanation of (A).

• Cost inflation occurs when overall prices increase (inflation) due to increases in the cost of wages and raw materials or shift in the supply curve.
• A shift in aggregate supply can be attributed to many variables, including changes in the size and quality of labour, technological innovations, an increase in wages, an increase in production costs, changes in producer taxes, and subsidies and changes in inflation.

• Cost-push inflation or Cost inflation
  • Cost-push inflation occurs when overall prices increase (inflation) due to increases in the cost of wages and raw materials.
  • Cost-push inflation can occur when higher costs of production decrease the aggregate supply (the amount of total production) in the economy.
  • Since the demand for goods hasn't changed, the price increases from production are passed onto consumers creating cost-push inflation.

The correct answer is the production possibility curve.

• In macroeconomics, the transformation curve is defined as the maximum amount of one commodity X obtainable for any given amount of another commodity Y, and vice versa.
• This concept is basically the same as the production-possibility frontier studied in microeconomics. In this case, however, the transformation curve shows the trade-off (or opportunity cost) for a country when deciding to produce one commodity or good instead of some other.
• The production possibility frontier (PPF) is a curve that illustrates the variations in the amounts that can be produced of two products if both depend upon the same finite resource for their manufacture.
• PPF also plays a crucial role in economics. It can be used to demonstrate the point that any nation's economy reaches its greatest level of efficiency when it produces only what it is best qualified to produce and trades with other nations for the rest of what it needs.
• So the transformation curve can also be referred to as the production possibility frontier PPF or the production possibility curve.

The correct answer is Both Personal Incomes - Direct taxes and Consumption Expenditure + Savings.

• Disposable Personal Income Formula = Personal Income - Direct taxes + Consumption Expenditure + Savings

• Personal Disposable income:
  • Disposable income or disposable personal income is an economic term which means the money that is available for household consumption, savings and spending after accounting for income tax.
  • ​It is an important indicator that is used by economists in determining the demand in an economy.
  • It is used to estimate the overall state of the country’s economy.

​

• In national accounts definitions, personal income minus personal current taxes equals disposable personal income. 
• Subtracting personal outlays yields personal (or, private) savings, hence the income left after paying away all the taxes is referred to as disposable income.
• For the economy or country, it is calculated as:
  •  National Income + All the Indirect Taxes + Transfers from other Countries. 

The correct answer is the Only b.

• The concessions and exemptions to the SEZ entrepreneurs include those on direct taxes but are granted for export and import activities and infrastructure development. Hence the statement is not correct.
• And they don't include dilution of any order, direction, the law on labour matters.
• Hence the correct statement is the Only b.

• An SEZ is an enclave within a country that is typically duty-free and has different business and commercial laws chiefly to encourage investment and create employment.
• The Parliament passed the Special Economic Zones Act in 2005 after many consultations and deliberations.
• The Act came into force along with the SEZ Rules in 2006.
• However, SEZs were operational in India from 2000 to 2006 (under the Foreign Trade Policy).
• Special Economic Zones Act, 2005
  • “It is defined as an Act to provide for the establishment, development, and management of the Special Economic Zones for the promotion of exports and matters connected therewith or incidental thereto.”
• The chief objectives of the SEZ Act are:
  • To create additional economic activity.
  • To boost the export of goods and services.
  • To generate employment.
  • To boost domestic and foreign investments.
  • To develop infrastructure facilities.
• SEZs Facilities & Incentives
  • The government offers many incentives for companies and businesses established in SEZs.
  • Some of the important ones are Duty-free import or domestic procurement of goods for developing, operating, and maintaining SEZ units.
  • 100% Income tax exemption on export income for SEZ units under the Income Tax Act for the first 5 years, 50% for the next 5 years thereafter, and 50% of the plowed back export profit for the next 5 years. (Sunset Clause for Units will become effective from 2020).
  • Units are exempted from Minimum Alternate Tax (MAT).
  • They were exempted from Central Sales Tax, Service Tax, and State sales tax. These have now subsumed into GST and supplies to SEZs are zero-rated under the IGST Act, 2017.
  • Single window clearance for Central and State level approvals.
  • There is no need for a license for import.
  • In the manufacturing sector, barring a few segments, 100% FDI is allowed.
  • Profits earned are permitted to be repatriated freely with no need for any dividend balancing.
  • There is no need for separate documentation for customs and export-import policy.
  • Many SEZs offer developed plots and ready-to-use space.
  • Apart from the firms operating in SEZs, developers of SEZs also receive many benefits and incentives from the government.

The Correct Answer is "Reserve Bank of India".

• The Base Rate is the minimum interest rate of a bank below which it cannot lend, except in some cases allowed by the RBI.
• It is the minimum interest rate of a bank below which it is not viable to lend.
• The base rate, introduced with effect from 1st July 2011 by the Reserve Bank of India, is the new benchmark rate for lending operations of banks.
• Thus all categories of domestic rupee loans should be priced only with reference to the Base Rate, subject to the conditions mentioned in RBI circulars dated April 9, 2010 and January 19, 2015.
• The reason for introducing Base Rate was to bring out the transparency in bank lending rates as well as to improve monetary policy transmission.
• Since the Base Rate will be the minimum rate for all loans, banks are not permitted to resort to any lending below the Base Rate.

• Base Rate replaced the benchmark prime lending rate (BPLR) ,the interest rate which commercial banks charged their most credit worthy customer.
• Following the announcement in the Annual Policy Statement for the year 2009-10, a working group was constituted under the chairmanship of Shri Deepak Mohanty to review the benchmark prime lending rate.
• It was observed that the benchmark prime lending rate, which was introduced in 2003, had failed in its objective.
• The banks were lending below BPLR rates due to competitive pressures.
• For the same reason, it was also difficult to assess the transmission of policy rates of the Reserve Bank to lending rates of banks.
• Hence a need was felt for transition to a more transparent and effective interest rate mechanism.

• The Society for Worldwide Interbank Financial Telecommunication (SWIFT) provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardized and reliable environment.
• SWIFT also sells software and services to financial institutions, much of it for use on the SWIFTNet Network. 
  • The majority of international interbank messages use the SWIFT network. Hence, Option 3 is NOT correct.
• SWIFT does not facilitate funds transfer: rather, it sends payment orders, which must be settled by correspondent accounts that the institutions have with each other.

• Rupee depreciation badly affects importers or those who wish to visit foreign countries for holidays as they need more local currency to get the same service or product.
• When rupee depreciates exporters from India are benefited. (Eg: Software companies, seafood exporters etc.)
• Depreciation of rupee benefits the overseas Indians as those who are working abroad will gain more on remitting money to their homeland. Hence, Option 4 is the correct answer.

The correct answer is Mixed Economy.

• In a capitalist economy, production is done on the basis of demand and it is distributed on the basis of purchasing power. If people have resources then only they can afford the goods in a capitalist society. The state has no role in this. At the time of independence poverty and inequality were prevalent in India that’s why it was avoided.
• Such a society did not appeal to Jawaharlal Nehru, for it meant that the great majority of people of the country would be left behind without the chance to improve their quality of life.
•  In a socialist society, the government decides what goods are to be produced according to the needs of society.
• The government assumes to know what is good for the people of the country and so the desires of consumers are not given much importance. The government decides about production and distribution.

• The Indian economy has a socialist tilt but it is not a socialist economy as the public sector has been present only in the essential sector, others have been left open to the private sector.
• Most economies are today mixed economies, i.e. the government and then market together answer the three questions of what to produce, how to produce, and how to distribute what is produced.
• In a mixed economy, the market will provide whatever goods and services it can produce well, and the government will provide essential goods and services which the market fails to do.

The correct answer is Groundnut.

• Tikka disease of groundnut also known as Leaf spot disease.
• The causal organism of tikka disease is the organism of the Cercospora genus namely Cercospora personata and Cercospora arachidicola.
• According to a survey, tikka disease can cause epidemics in all groundnut growing countries, including the United States, China, India, etc.

The correct answer is taungya cultivation.

•  Taungya is a system originating in Burma. In the initial stages of an orchard or tree plantation, trees are small and widely spaced. The free space between the newly planted trees accommodates a seasonal crop.
• Shifting cultivation is an agricultural system in which plots of land are cultivated temporarily, then abandoned while post-disturbance fallow vegetation is allowed to freely grow while the cultivator moves on to another plot.
• Intensive agriculture, also known as intensive farming and industrial agriculture, is a type of agriculture, both of crop plants and of animals, with higher levels of input and output per cubic unit of agricultural land area.
• Extensive farming or extensive agriculture is an agricultural production system that uses small inputs of labor, fertilizers, and capital, relative to the land area being farmed.

The correct answer is Only 2.

• NABARD came into existence on 12 July 1982 by transferring the agricultural credit functions of RBI and refinance functions of the then Agricultural Refinance and Development Corporation (ARDC).
• It was dedicated to the service of the nation by the late Prime Minister Smt. Indira Gandhi on 05 November 1982. Hence statement 1 is incorrect.
• The main objectives of NABARD are as follows:
  • NABARD is an apex body which provides refinance assistance for agriculture, promoting rural development activities. It also provides all necessary finance and assistance to small scale industries.
  • NABARD in coordination with the State Governments provides agriculture.
  • It improves small and minor irrigation by way of promoting agricultural activities.
  • It undertakes R&D in agriculture, rural industries.
  • NABARD promotes various organizations involved in agricultural production by contributing to their capital.

Hence statement 2 is correct.

• In discharging its role as a facilitator for rural prosperity, NABARD is entrusted with:
  • Providing refinance to lending institutions in rural areas
  • Bringing about or promoting institutional development and
  • Evaluating, monitoring and inspecting the client banks

The correct answer is Soyabeans.

• Soybeans are one of the main crops of Madhya Pradesh.

• Farming of Soyabeans was first started in Dewas district.
  • Initially, it was a pilot project.
  • Madhya Pradesh is also called the Soyabean Capital of India.
  • Ujjain is the highest producer of Soyabean in Madhya Pradesh.
  • Excluding Singrauli all other districts have soybean farming.

• Cotton is one of the important crops of Madhya Pradesh.
  • In Madhya Pradesh 3/4^thof the total production of cotton comes from Indore Region.
  • The main cotton producer districts are Khandwa, Badwani, Dhar, Khargon, Burhanpur, Ratlam, and Chhindwada.
• Rice is the second largest produced crop of Madhya Pradesh.
  • Madhya Pradesh produces 3 percentage of total rice production in India.
  • Balaghat is the largest producer of rice in Madhya Pradesh.
• Groundnut is the third-largest produced crop in Madhya Pradesh.
  • It contains Vitamin A1, B1, and B2.
  • Main area for production of groundnut are Khargon, Badwani, Chhindwada, Seoni, Betul, Datiya, Shivpuri, Tikamgarh and Chhatarpur.

The correct answer is Dahiya.

• The 'Slash-and-burn' agricultural method of farming is also known as Dahiya in Madhya Pradesh.

• The 'Slash-and-burn' agricultural method of farming is generally known a Subsistence farming.
• The crops which are generally grown are bananas, cassava, rice, maize, and millet.

• Subsistence farming is a traditional and indigenous method of cultivation whereas Commercial farming is more of an industrial level farming method.
• Subsistence methods do not use fertilizers or technological support for cultivation or irrigation whereas commercial farming is heavily dependent on the use of chemical fertilizers, insecticides, pesticides and other technology-driven machines and equipment to get a higher yield.

The correct answer is 1, 2 and 3.

• The average national yield of wheat was very low in the 1960s as compared to the wheat yields of agriculturally advanced countries. Hence, Statement 1 is correct.
• In 1970, Norman E. Borlaug was awarded Nobel prize for “Green Revolution” which also helped India.
• MS Swaminathan, former Director-General of ICAR (Indian Council of Agricultural Research) stressed the need for reorientation of the entire breeding programme of tall varieties. Hence, Statement 3 is correct.
• Components of the Green Revolution
  • High Yielding Varieties (HYV). 
  • Mechanization of Agriculture. Hence, Statement 2 is correct.
  • Use of Chemical Fertilizers and Pesticides.
  • Irrigation.
• Achievements:
  • Increase in Agricultural Production and productivity.
  • Less Dependence on Imports.
  • Employment.
  • A Benefit to the Farmers.

• Negative Impacts of the Green Revolution are:
  • Reduction in genetic diversity
  • Greater vulnerability to pests
  • Displacement of small farmers
  • Land Degradation
  • Groundwater depletion
  • Ecological and health Impacts
  • Income disparity among farmers
  • Increased Social conflicts

The correct answer is Both (A) and (R) are true but (R) is not the correct explanation of (A).

• The Green Revolution is a term that refers to the revolution in the field of agriculture by using HYV seeds, the adoption of modern methods and technology, improved irrigation facilities, pesticides, and fertilizers to improve agricultural productivity in the developing world.
• Norman Borlaug is considered the Father of the Green Revolution worldwide.
  • He was awarded the Nobel Peace Prize in 1970.
  • He is also the recipient of Padma Vibhushan in 2006.
  • The Borlaug Award was created in honour of Nobel Laureate Norman E. Borlaug in 1972, given in the field of agriculture and the environment to Indian scientists.
• The Green Revolution within India commenced in 1966.
• Regional disparities have aggravated due to the green revolution in India especially in Punjab, Haryana, and Uttar Pradesh.
• Green Revolution has resulted in the growth of food grain production in India.
• Major development is the high-yielding varieties of wheat and rust-resistant strains of wheat.
• M. S. Swaminathan is the Father of the Green Revolution in India.
  • He is known for his role in India's Green Revolution.
  • He is the founder of the MS Swaminathan Research Foundation.
  • He is the recipient of the Tyler Prize for Environmental Achievement (1991), Padma Vibhushan (1989), World Food Prize(1987), Padma Bhushan (1972), Ramon Magsaysay Award (1971), Padma Shri (1967), Shanti Swarup Bhatnagar Award (1961).

The correct answer is Direct and Progressive.

• Income tax is a Direct tax.
• Direct taxes are progressive, because it is possible to help more people who do not earn as much, and at the same time, mobilize resources from those who earn well. This is what makes them progressive.
• This is the tax that is levied on the annual income or the profits which are directly paid to the government.
• Everyone who earns any kind of income is liable to pay income tax.
• A progressive tax imposes a higher rate on the rich than on the poor. It's based on the taxpayer's income or wealth. It's done to help lower-income families pay for basics like shelter, food, and transportation.
•  A progressive tax allows them to spend a larger share of their incomes on the cost of living expenses.
• Examples of progressive tax include investment income taxes, tax on interest earned, rental earnings, estate tax, and tax credits.

The correct answer is Only 1 and 3.

• Coal India Limited is a Maharatna status company and is the largest coal-producing company in the world. Hence statements 1 and 3 are correct.
• It was founded in 1975 after the nationalization of the coal industry in 1973 and its headquarters of Coal India Limited are located in Kolkata. Hence statement 2 is incorrect.
• CIL ranks 8th among the top 20 firms responsible for a third of all global carbon emissions.
• State-owned Coal India Ltd produced 602.14 million tonnes (MT) of coal in FY 2019-20, missing the target of 660 MT for the year.

List of Maharatna CPSEs

• Bharat Heavy Electricals Limited
• Bharat Petroleum Corporation Limited
• Coal India Limited
• GAIL (India) Limited
• Hindustan Petroleum Corporation Limited
• Indian Oil Corporation Limited
• NTPC Limited
• Oil & Natural Gas Corporation Limited
• Power Grid Corporation of India Limited
• Steel Authority of India Limited

List of Navratna CPSEs

• Bharat Electronics Limited
• Container Corporation of India Limited
• Engineers India Limited
• Hindustan Aeronautics Limited
• Mahanagar Telephone Nigam Limited
• National Aluminium Company Limited
• NBCC (India) Limited
• NMDC Limited
• NLC India Limited
• Oil India Limited
• Power Finance Corporation Limited
• Rashtriya Ispat Nigam Limited
• Rural Electrification Corporation Limited

The correct answer is 1(C), 2(A), 3(B).

• CPSEs are classified into 3 categories: Maharatna, Navratna, and Miniratna.
• Eligibility Criteria to be considered for grant of Maharatna status:
  • Having Navratna status.
  • Listed on the Indian stock exchange with minimum prescribed public shareholding under SEBI regulations.
  • Average annual turnover of more than Rs. 25,000 crore, during the last 3 years.
  • The average annual net worth of more than Rs. 15,000 crore, during the last 3 years.
  • Average annual net profit after tax of more than Rs. 5,000 crore, during the last 3 years.
  • Should have a significant global presence/international operations.
  • There are ten ‘Maharatna’ CPSEs: Bharat Heavy Electricals Limited, Coal India Limited, GAIL (India) Limited, Indian Oil Corporation Limited, NTPC Limited, Oil & Natural Gas Corporation Limited, Hindustan Petroleum Corporation Limited (HPCL), Bharat Petroleum Corporation Limited (BPCL), Power Grid Corporation of India (POWERGRID), and Steel Authority of India Limited.
• Eligibility Criteria to be considered for grant of Navratna status:
  • The Miniratna Category – I and Schedule ‘A’ CPSEs, which have obtained ‘excellent’ or ‘very good’ rating under the Memorandum of Understanding system in three of the last five years, and have a composite score of 60 or above in the six selected performance parameters, namely,
    • net profit to net worth,
    • manpower cost to total cost of production/services,
    • profit before depreciation, interest, and taxes to capital employed,
    • profit before interest and taxes to turnover,
    • earning per share,
    • inter-sectoral performance.
       
• Eligibility Criteria to be considered for grant of Miniratna status:
  • Category –I CPSEs should have made a profit in the last three years continuously, the pre-tax profit should have been Rs. 30 crores or more in at least one of the three years and should have a positive net worth.
  • Category-II CPSEs should have made a profit for the last three years continuously and should have a positive net worth.
  • These CPSEs shall be eligible for the enhanced delegated powers provided they have not defaulted in the repayment of loans/interest payment on any loans due to the Government.

The correct answer is 6.6%.

• Gross domestic product (GDP) is the standard measure of the value-added created through the production of goods and services in a country during a certain period.
• Types of GDP.
  • Real GDP is the economic output of a country with inflation taken out.
  • Nominal GDP measures a country's gross domestic product using current prices, without adjusting for inflation.
  • Actual GDP is the real-time measurement of all outputs at any interval or any given time.
  • Potential GDP is the level of output that an economy can produce at a constant inflation rate. 
• Components of GDP
  • Consumption,
  • Investment
  • Government Spending
  • Exports 
  • Imports.

• GDP of India is calculated by the National Statistical Agency.

The correct answer is a and b only.

• The New Industrial Policy announced in June 1991 has brought comprehensive changes in economic regulation in the country.
• Aim-
  • To unshackle the Indian industrial economy from the cobwebs of unnecessary bureaucratic control,
  • To introduce Liberalisation with a view to integrate the Indian economy with the world economy,
  • To remove restrictions on direct foreign investment as also to free the domestic entrepreneur from the restrictions of MRTP act,
  • The policy aimed to shed the load of the public enterprises which have shown a very low rate of return or were incurring losses over the years.

• Reforms and initiatives undertaken- 
• Industrial licensing - 
  • Industrial licensing will be abolished for all projects except for a shortlist of industries related to security and strategic concerns, social reasons, hazardous chemicals and overriding environmental reasons, and items of elitist consumption.
  • Industries reserved for the small scale sector will continue to be so reserved.
  • Areas, where security and strategic concerns predominate, will continue to be reserved for the public sector.
• Foreign Investment -
  • Approval will be given for direct foreign investment up to 51 percent foreign equity in high priority industries. Hence, statement c is not correct.
  • There shall be no bottlenecks of any kind in this process. Such clearance will be available if foreign equity covers the foreign exchange requirement for imported capital goods. 
• Foreign Technology Agreements -
  • Automatic permission will be given for foreign technology agreements in high priority industries.
  • No permission will be necessary for hiring of foreign technicians, foreign testing of indigenously developed
    technologies.
• The MRTP Act -
  • The MRTP Act will be amended to eliminates the requirement of prior approval of the Central Government for the establishment of new undertakings, expansion of undertakings, merger, amalgamation, and takeover, and appointment of Directors under certain circumstances. 
  • Emphasis will be placed on controlling and regulating monopolistic, restrictive, and unfair trade practices.
  • Competition act, 2002 replaces the MRTP Act.

The correct answer is a, c and d.

• Indian economy experienced an economic crisis in 1991.
• The foreign currency assets declined to such an extent that it was barely enough to finance two weeks of imports.
• The annual rate of inflation reached 16.7% in August 1991.
• The government expenditure was greater than its revenue due to defense expenditure, subsidies, interest on loans, etc.
  • The positive effects of the socialistic pattern of society were on the verge of decline.
  • On this ground, it was necessary to bring new changes to the economy. Hence, the Government of India adopted a New Economic Policy (NEP) in 1991.
  • It is also known as Liberalisation, Privatisation, and Globalisation (LPG).
• The process of new economic policy which started in 1985 got momentum in 1991.

• Liberalization:
  • Liberalization refers to 'economic freedom' or 'freedom for economic decision'.
  • It means producers, consumers, and owners of factors of production, are free to take the decision to promote their self-interest.
  • Indian government accepted policies suggested by the IMF for economic liberalization.
    • Macroeconomic Stabilisation :
      • Inflation control
      • Balance of Payment adjustment
      • Currency devaluation
    • Structural Adjustment Programs :
      • Trade and capital inflow reforms
      • Industrial reforms
      • Tax reforms
      • Fiscal reforms
      • Monetary and financial reforms
      • Privatization
• Privatization: 
  • Privatization means the transfer of ownership from the public to the private sector.
  • It refers to a process that reduces the involvement of the public sector and increases that of the private sector in economic activities.
  • Measures :
    • Disinvestment
    • Dereservation policy
    • Establishment of BIFR (Board of Industrial and Financial Reconstruction)
    • Creation of National Renewal Board (NRB)
    • Navratna Status
• Globalization:
  • Globalization means integrating the economy of a country with the world economy.
  • Measures : 
    • Removal of quantitative restrictions
    • Encouragement to Foreign Capital
    • Convertibility of Rupee
    • Foreign collaboration
    • Long term trade Policy
    • Encouragement to Exports

The correct answer is 1, 2, and 3 only.

Industrial Policy Resolution 1956 (IPR 1956):

• The Industrial Policy Resolution of 1956 was adopted with the goal of the state controlling the commanding heights of the economy.
• This resolution formed the basis of the Second FiveYear Plan, the plan which tried to build the basis for a socialist pattern of society. Hence, Statement 1 is correct.
• This resolution classified industries into three categories. Hence, Statement 2 is correct.
  • The first category comprised industries that would be exclusively owned by the state. 
  • The second category consisted of industries in which the private sector could supplement the efforts of the state sector, with the state taking the sole responsibility for starting new units. 
  • The third category consisted of the remaining industries which were to be in the private sector.
• Although there was a category of industries left to the private sector, the sector was kept under state control through a system of licenses.
• No new industry was allowed unless a license was obtained from the government. Hence, Statement 3 is correct.
• This policy was used for promoting industry in backward regions.
  • It aimed at Balanced Regional Growth.
  • The purpose of this policy was to promote regional equality

The correct answer is ii, iv and v only.

• The Fiscal Responsibility and Budget Management (FRBM) Act - 
  • The Fiscal Responsibility and Budget Management Act (FRBM Act), 2003, establishes financial discipline to reduce the fiscal deficit. Hence, pair 2 is correct.
  • It intends to bring transparency and accountability in the conduct of the fiscal and monetary actions of the government.
  • It requires the government to limit the fiscal deficit to 3% of the GDP by 31 March 2021 and the debt of the central government to 40% of the GDP by 2024-25, among others.
  • The FRBM Act proposed that revenue deficit, fiscal deficit, tax revenue and the total outstanding liabilities be projected as a percentage of gross domestic product (GDP) in the medium-term fiscal policy statement
• Special drawing rights (SDR) is an international type of monetary reserve currency.
  • It was created by the International Monetary Fund (IMF) in 1969. Hence, pair 4 is correct.
  • SDR operates as a supplement to the existing money reserves of member countries.
  • The value of the SDR is determined daily and made available on the IMF's website.
  • There are only five currencies in the world which are associated with SDR and those currencies are the Chinese Yuan, Japanese Yen, American dollar, Euro, Pound Sterling.
• Moody's Investors Service, often referred to as Moody's, is the bond credit rating business of Moody's Corporation, representing the company's traditional line of business and its historical name. Hence, pair 5 is correct.
  • It was founded in 1909 and its headquarters is in New York, United States.
  • Moody's Investors Service provides international financial research on bonds issued by commercial and government entities.
  • Moody's, along with Standard & Poor's and Fitch Group, is considered one of the Big Three credit rating agencies.
  • It is also included in the Fortune 500 list of 2021.
• Securities and Exchange Board of India (SEBI) is a statutory body and a market regulator, which controls the securities market in India.
  • The basic functions of SEBI are to protect the interests of investors in securities and to promote and regulate the securities market. Hence, pair 5 is incorrect. 
• Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Hence, pair 1 is incorrect. 
  • Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.

The correct answer is Saudi Arabia.

• Among the options, Saudi Arabia is the largest producer of oil (petroleum) in Asia.
• Saudi Arabia produces almost 12 million barrels of oil per day.
• Saudi Arabia is the world's second-largest oil producer after the US.
• Saudi Arabia is producing nearly 15% of world output in petroleum production.
• Saudi Arabia is the world's largest petroleum exporter.
• Saudi Arabia is a country in Western Asia.
  • Riyadh is the capital of Saudi Arabia.
  • Saudi Riyal is the currency of Saudi Arabia.
  • The oil and gas sector of Saudi Arabia accounts for about 50% of its GDP.

• Yemen is a country in Western Asia.
  • Sanaa is the capital of Yemen.
  • Yemeni rial is the currency of Yemen.
• Iraq is a country in Western Asia.
  • Baghdad is the capital of Iraq.
  • Iraqi dinar is the currency of Iraq.
• Iran is a country in Western Asia.
  • Tehran is the capital of Iran.
  • Iranian rial is the currency of Iran.

The correct answer is a only.

• Ayushman Bharat : 
  • It is a flagship scheme of the Government of India launched as recommended by the National Health Policy 2017, to achieve the vision of Universal Health Coverage (UHC).
  • Ayushman Bharat is an attempt to move from a sectoral and segmented approach of health service delivery to a comprehensive need-based health care service.
  • This scheme aims to undertake path-breaking interventions to
• Ayushman Bharat adopts a continuum of care approach, comprising of two inter-related components, which are -
• Health and Wellness Centres (HWCs) :
  • In February 2018, the Government of India announced the creation of 1,50,000 Health and Wellness Centres (HWCs) by transforming the existing Sub Centres and Primary Health Centres.
  • These centres are to deliver Comprehensive Primary Health Care (CPHC) bringing healthcare closer to the homes of people.
  • They cover both, maternal and child health services and non-communicable diseases, including free essential drugs and diagnostic services.
• Pradhan Mantri Jan Arogya Yojana (PM-JAY) :
  • This scheme was launched on 23rd September 2018 in Ranchi, Jharkhand.
  • Ayushman Bharat PM-JAY is the largest health assurance scheme in the world which aims at providing a health cover of Rs. 5 lakhs per family per year for secondary and tertiary care hospitalization to over 10.74 crores poor and vulnerable families (approximately 50 crore beneficiaries) that form the bottom 40% of the Indian population. Hence, Statement b is not correct. (No primary care is covered)
  • The households included are based on the deprivation and occupational criteria of Socio-Economic Caste Census 2011 (SECC 2011) for rural and urban areas respectively. Hence, Statement c is not correct.
  • PM-JAY is fully funded by the Government and the cost of implementation is shared between the Central and State Governments.

The correct answer is Both a and b.

• The concept of Agri Export Zone (AEZ) was introduced in 2001, through EXIM Policy 1997-2001, to take a comprehensive look at a particular produce/product located in a contiguous area for the purpose of developing and sourcing the raw materials, their processing/packaging, leading to final exports.
• The concept hinged primarily on convergence of existing Central and State Government schemes to take care of financial interventions required at various stages of the value chain. 
  • Partnership among various stakeholders viz. Central Government, State Government, farmer, processor, exporter etc.; and focus on targeted products and areas to identify required policy interventions.
• Notified Agri Export Zones :
  • In all 60 Agri Export Zones (AEZ) were notified by the Government till 2004-05. No new AEZs have been set up after 2004.
• Agri export zones in Maharashtra :

The Correct Answer is Intensive subsistence farming.

• In intensive subsistence farming, the farmer cultivates a small plot of land using simple tools and more labour.
• Intensive subsistence agriculture is prevalent in the thickly populated areas of the monsoon regions of the south, southeast, and east Asia.

Commercial Farming

• In commercial farming, crops are grown and animals are reared for sale in the market.
• The area cultivated and the amount of capital used is large. Most of the work is done by machines.
• Commercial farming includes commercial grain farming, mixed farming, and plantation agriculture.

Primitive subsistence farming

• Primitive subsistence agriculture includes shifting cultivation and nomadic herding.

Extensive subsistence agriculture

• Extensive subsistence agriculture is farming in thinly populated areas.
• The vast expanse of land is cultivated to yield minimal output of crops and animals for the primary consumption of the grower's family.

The correct answer is Both 1 and 2.

• FDI is allowed in India under two modes: the automatic route or through the government route.
• Companies don't need government approval in Automatic Route.
• Companies need Government approval in Government mode.
• Provisions of the New FDI policy:
  • An entity of a country, which shares a land border with India or where the beneficial owner of investment into India is situated in or is a citizen of any such country, can invest only under the Government route. Hence, Statement 1 is correct.
  • A transfer of ownership in an FDI deal that benefits any country that shares a border with India will also need government approval.
  • Investors from countries not covered by the new policy only have to inform the RBI after a transaction rather than asking for prior permission from the relevant government department.
• India shares land borders with Pakistan, Afghanistan, China, Nepal, Bhutan, Bangladesh, and Myanmar.
• This revised FDI policy aims to curb opportunistic takeovers/acquisitions of Indian companies due to the current Covid-19 pandemic. Hence, Statement 2 is correct.
  • China's investment in the Indian business space has been expanding rapidly​.

The correct answer is Depreciation of Rupee.

• The term devaluation is used when the government reduces the value of a currency under a Fixed-Rate System.
• When the value of the currency falls under the Floating Rate System and due to market forces, it is called depreciation.
• Depreciation takes place under flexible exchange rate system.
• If the rupees per US Dollar exchange rate changes from Rs. 60 to Rs. 65 in a time period by the market forces, it implies Depreciation of Rupee. 
• Devaluation is the process of reducing a country's exchange rate in the international market while keeping the internal value unchanged.
• The rupee was devalued first in 1966 by 57% from Rs. 4.76 to 7.50 against the US dollar.
• In the year 1991, the rupee was again devalued by 19.5% from Rs.20.5 to Rs.24.5 against the US dollar.
• Some of the objectives of Devaluation-
  • correcting the balance of payment.
  • for increasing the exports
  • for decreasing imports

The correct answer is Reserve Bank of India.

• In India, the monetary policy is controlled by the Reserve Bank of India.
• The Reserve Bank of India (RBI) is India's central bank.
  • RBI was established on 1^st April 1935.
  • Headquarters of the RBI is located at Mumbai, Maharashtra.
  • RBI was set up on the recommendation of the Hilton Young Commission.
  • Reserve Bank of India act was passed in 1934.
  • RBI is also called as "Banker's Bank".
  • RBI was nationalised on 1^st January 1949.
  • Reserve Bank of India issues all the currency notes above one rupee.
  • Sir Osborne Smith served as the first governor of RBI.
  • C. D. Deshmukh served as the first Indian governor of RBI.
  • Shaktikanta Das is the 25^th governor(Incumbent) of the Reserve Bank of India.

​

• Important functions of the Reserve Bank of India are:
  • Monetary policy.
  • Regulation and supervision of the banking and non-banking financial institutions, including credit information companies.
  • Regulation of money, forex and government securities markets as also certain financial derivatives.
  • Debt and cash management for Central and State Governments.
  • Management of foreign exchange reserves.
  • Foreign exchange management: current and capital account management.
  • Banker to the Central and State Governments.
  • Oversight of the payment and settlement systems.
  • Currency management.

The correct answer is NIRVIK.

• NIRVIK stands for Niryat Rin Vikas Yojana.
• This scheme was announced in the Budget 2020-21 by Finance Minister Nirmala Sitaraman.
• NIRVIK scheme to provide enhanced insurance cover and reduce the premium for small exporters.

• The Export Credit Insurance Scheme (ECIS) under which the insurance guaranteed could cover up to 90% of the principal and interest. At present, the Export Credit Guarantee Corporation provides a credit guarantee of up to 60% loss.

Concept:

• Every region is known for growing something.
• The type of soil and climate at a place determines the type of food grown there.
• The food grown in a particular place becomes the staple food of the place.

Explanation:

Food grown at different places:

Thus, tapioca is grown in Kerala.

The correct answer is 1 only.

• Devaluation of a currency means a reduction in the value of a currency vis-a-vis major internationally traded currencies.
• Devaluation occurs when a country intentionally reduces the value of its currency relative to one or more foreign countries. Hence, statement 2 is incorrect.
• When the country follows a fixed exchange rate regime the government constantly has to revalue and devalue the currency to maintain the pegged exchange rate.
• When there is upwards market pressure on the currency to appreciate, the central bank will artificially devalue the currency by buying up foreign reserves. 
• Devaluation occurs when a government wishes to increase its balance of trade by decreasing the relative value of its currency.
• The government does this by adjusting the fixed or semi-fixed exchange rate of its currency versus that of another country.
• Exports become cheaper and more competitive to foreign buyers. Higher exports relative to imports can increase aggregate demand as increased consumer spending on domestic goods and services. Hence, it improves the competitiveness of the domestic exports in the foreign markets. Hence, statement 1 is correct.
•  With exports more competitive and imports more expensive, we may see higher exports and lower imports, which will reduce the current account deficit.
• Devaluation of currency increases the volume of exports and reduces the volume of imports, both of which have a favourable effect on the balance of trade, that is, they will lower the trade deficit or increase the trade surplus. Hence, statement 3 is incorrect.

The correct answer is 

• A government bond is a debt instrument issued by the Central and State Governments of India.
• A government bond in India is essentially a contract between the issuer and the investor, wherein the issuer guarantees interest earnings on the face value of bonds held by investors along with repayment of the principal value on a stipulated date.
• Government Bonds India, fall under the broad category of government securities (G-Sec) and are primarily long term investment tools issued for periods ranging from 5 to 40 years. It can be issued by both the Central and State governments of India.
• Bond yield is the return on the bond an investor will get by investing in a bond. 
• Bond yield is inversely proportional to Bond price. As bond prices increase, bond yields fall.
• Indian Government Bond Yields are influenced by:-
  • The monetary policy of the Reserve Bank of India.
  • The course of interest rates.
  • The fiscal position of the government and its borrowing programme. 
  • Global markets.
  • Economy. 
  • Inflation.
• Hence all the there factors can influence Indian Government Bond Yields.

The correct answer is 1, 2 and 3.

• Foreign Currency Convertible Bonds - It is a bond issued by an Indian 
  company in foreign currency and subscribed by a non-resident in foreign currency and convertible into ordinary shares of the issuing company, either in whole or in part.
  • FCCBs represent a debt obligation of the corporate. Investors have the option to redeem or convert them into underlying local shares or global depository receipts. If investors prefer to hold the FCCBs until the redemption date,  the corporate has to redeem the FCCBs on the redemption date.
  • Dilution would take place as and when debt is converted into equity. Since these bonds are convertible into equity shares over a period of time as provided in the instrument, therefore they are covered under FDI policy & counted towards FDI.
  • If they are redeemed they count as ECB & a debt obligation, only on converting into equity it is counted towards FDI. Hence, statement 1 is correct.
• Foreign institutional investment with certain conditions - 
  • In India, as per SEBI  (FPI regulations), 2019, a particular FII is allowed to invest upto 10% of the paid-up capital of a company, which implies that any investment above 10% will be construed as FDI. Hence, statement 2 is correct.
  • According to IMF and OECD definitions, the acquisition of at least 10% of the ordinary shares or voting power in a public or private enterprise by non-resident investors makes it eligible to be categorized as foreign direct investment.
• Global Depository Receipt - Any instrument issued in the form of a depository receipt or certificate created by the oversees depository bank outside India and issued to non-resident investors against underlying shares or foreign currency convertible bonds of issuing company.
  • GDRs are equity representing share-holders funds, foreign investment in the form of equity shares issued outside India by a Depository Bank, on behalf of an Indian company which is covered under the FDI policy. GDR proceeds are reckoned as Foreign Direct Investment. Hence, statement 3 is correct.
• Non-resident external deposits - NRI investments that are repatriable are considered FDI while non-repatriable investments are considered domestic investments.  Hence, statement 4 is incorrect.

The correct answer is All of the above.

• Cooperative:
  • A cooperative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.
• Cooperative values :
  • Cooperatives are based on the values of self-help, self-responsibility, democracy, equality, equity, and solidarity.
  • In the tradition of their founders, cooperative members believe in the ethical values of honesty, openness, social responsibility, and caring for others.

• Cooperative Principles:
  • The cooperative principles are guidelines by which cooperatives put their values into practice.
    • Voluntary and Open Membership
    • Democratic Member Control
    • Member Economic Participation
    • Autonomy and Independence
    • Education, Training, and Information
    • Cooperation among Cooperatives
    • Concern for Community

• The statement on the Cooperative Identity states that a cooperative is an “autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise”. 
• The International Cooperative Alliance (ICA) is the global steward of the Statement on the Cooperative Identity – the Values and Principles of the cooperative movement.
• In 1995, the ICA adopted the revised Statement on the Cooperative Identity which contains the definition of a cooperative, the values of cooperatives, and the seven cooperative principles as described above.

The correct answer is 'Golden Revolution - Cotton'.

• ‘Golden Revolution’ is a term used for horticulture crop production.
• The growing of diverse horticultural crops like fruits, vegetables, tuber crops, flowers, medicinal and aromatic plants, spices, and plantation crops is called horticulture.
• These crops play a vital role in providing food and nutrition, besides addressing employment concerns. Currently, it contributes 30.4 per cent of Agricultural GDP.
• Nirpakh Tutej is considered as the father of Golden Revolution in India.

​

Some important agricultural revolutions and their fathers are as below-

• Silver Revolution – Egg/Poultry Production - Indira Gandhi
• Silver Fibre Revolution – Cotton 
• Golden Fibre Revolution – Jute Production 
• Brown Revolution - Leather/Cocoa 
• Blue Revolution - Fish Production - Arun Krishnan
• Yellow Revolution - Oilseed - Sam Pitroba

The correct answer is Free Trade.

• The classical economists believed in Free trade policy.
• In terms of economic policy, the classical economists were pragmatic liberals, advocating the freedom of the market, though they saw a role for the state in providing for the common good.
• Smith acknowledged that there were areas where the market is not the best way to serve the common interest, and he took it as a given that the greater proportion of the costs supporting the common good should be borne by those best able to afford them. He warned repeatedly of the dangers of monopoly and stressed the importance of competition.
• In terms of international trade, the classical economists were advocates of free trade, which distinguishes them from their mercantilist predecessors, who advocated protectionism.

• Classical economics or classical political economy is a school of thought in economics that flourished, primarily in Britain, in the late 18th and early-to-mid 19th century.
• Its main thinkers are held to be Adam Smith, Jean-Baptiste Say, David Ricardo, Thomas Robert Malthus, and John Stuart Mill.
• These economists produced a theory of market economies as largely self-regulating systems, governed by natural laws of production and exchange (famously captured by Adam Smith's metaphor of the invisible hand).
• Adam Smith's The Wealth of Nations in 1776 is usually considered to mark the beginning of classical economics.

The correct answer is 1 2 and 3.

• Capitalist economies like the USA have these three as the essential component of their economic system.
  • Means of production like machinery, buildings are owned by entrepreneurs.
  • Production takes place for the market and 
  • The labour market decides the wage rate.
•  Therefore all three statements are correct.

• Social Economies- the government determines what products are to be manufactured in accordance with the requirements of society.
• Mixed Economy - mixed economic systems are also called dual economic systems. it comprises of both market and state contributed factors.

The correct answer is Integrated farming.

• At present, the farmers concentrate mainly on crop production which is subjected to a high degree of uncertainty in income and employment to the farmers. In this contest, it is imperative to evolve a suitable strategy for augmenting the income of a farm.
• Integration of various agricultural enterprises viz. cropping, animal husbandry, fishery, forestry, etc. have great potentialities in the agricultural economy.
  • These enterprises not only supplement the income of the farmers but also help in increasing family labour employment.
• The Integrated Farming Systems (IFS) approach stabilizes income streams through natural resource management and livelihood diversification.
• An example of integrated farming could be fish and livestock cultivation along with general farming practices which support each other.
• In IFS, the waste of one enterprise becomes the input of another for making better use of resources. 
• In the integrated crop-livestock farming system, crop residues can be used for animal feed, while manure from livestock can enhance agricultural productivity.

• Mixed Farming:
  • ​Optimum diversity may be obtained by integrating both crops and livestock in the same farming operation.
  • Growing crops only on more level land and pastures or forages on steeper slopes will reduce soil erosion.
  • Feeding and marketing are flexible in animal production systems. This can help cushion farmers against price fluctuations and, make more efficient use of farm labour.

The correct answer is  Agriculture.

• The First Five Year Plan in India was from 1951 to 1956.
  • The plan was based on the Harrod-Domar model.
  • Gave priority to the agricultural development of the country.
  • The First Five Year Plan was presented before the parliament by Jawaharlal Nehru.
  • Economist K N Raj is known as the architect of this plan.
  • It was quasi successful for the government.

The correct answer is ​P.C.Mahalanobis.

• The second Five-Year Plan was based on the PC Mahalanobis model.
• Its draft was prepared by P.C. Mahalanobis.

• Its purpose was to establish a socialist society.
• It was during this light that the 1948 Industrial Policy Resolution was revised and therefore the new resolution of 1956 was adopted.
• There was an emphasis on the expansion of the public sector and the establishment of a socialistic pattern of society.
• This plan was an “Industrial and Transport Plan” in contrast to the primary plan which was called the Agriculture and Irrigation Plan.
• Originally the second plan proposed a complete public sector outlay of Rs. 4800 crores though actual outlay was only Rs. 4672 crore.​

• The National Development Council (NDC) headed by the Prime Minister with all Chief Minister and cabinet ministers is the final authority to approve the five-year-long policy.
  • The Planning Commission was an institution in the Government of India, which formed India's Five-Year Plans.
• In 2014, Prime Minister Shri Narendra Modi announced to dissolve the Planning Commission and replace it by a new institution named NITI Aayog.
• The Finance Ministry or Ministry of Finance is a ministry that concerns itself with taxation, financial legislation, financial institutions, capital markets, centre and state finances, and the Union Budget.
• Current Finance Minister of India - Nirmala Sitharaman
• Minister of State for Finance - Shri Pankaj Chaudhary(August 2021).
• ​International Monetary Fund (IMF) was initiated in 1944 at the Bretton Woods Conference. Headquartered in Washington, D.C.

The correct answer is brass.

• Moradabad is also known as Pital Nagri for its prominent brass handicrafts industry.

•  Moradabad is well known industrial city and export centre.
•  The handicrafts industry of Moradabad exceeds 40% of the total handicraft exports from India.
•  Manufactured products such as iron sheet, metal wares, aluminium, artworks and glassware are exported from the industries in Moradabad.
•  Moradabad is one of the seven industrial corridors which are declared by the State Government under Industrial Policy 1999–2002.
•  Uttar Pradesh Government has developed Moradabad Special Economic Zone (SEZ) which is the only government developed SEZ in northern India.
•  Moradabad SEZ offers exceptional infrastructure, encouraging services and sector-specific facilities for the Handicraft Trade.