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The important export goods of India before independence were raw silk, cotton, wool, sugar, indigo, jute, etc.

Thermal power plants emit large quantities of carbon dioxide.

There are three important techniques used to measure correlation. They are as follows:

1. Scatter diagrams 

2. Karl Pearson’s coefficient of correlation 

3. Spearman’s rank corrilation theorem

Starvation and hunger are the main features of the poorest households. They do not possess any assets. They live in slums and some sleep in public places. In rural areas. they are landless labourers. Many do not get even two meals a day. They lack basic literacy and skills and have limited economic opportunities.

While calculating arithmetic mean, sometimes, it is essential to give weightage to various items according to their importance. For example, there are two commodities oranges and radish. You are interested in finding the average price of oranges and radish. We may give importance to the rise in price of oranges for which weights are to be given. To calculate the average of both the products we use weighted arithmetic mean.

The main infrastructure facilities developed during colonial rule were railways, ports, water transport, posts and telegraphs. However, the real motive behind this development what not to provide basic amenities to the people, but to observe various colonial interests.

Following are the four steps in developing a project: 

• Identifying a problem or an area of study, 
• Choice of target group. 
• Collection of data. 
• Organisation and presentation of data.

Shawls from Kashmir in complex designs and labour intensive weaves called Kani were regarded as luxuries in Europe.

Statistical tools are needed in our daily life and are used in the analysis of data pertaining to economic activities such as production, consumption, distribution, banking and insurance, trade, transport, etc.

Following are the four steps in developing a project: 

1. Identifying a problem or an area of study. 

2. Collection of data. 

3. Choice of target group. 

4. Organisation and presentation of data.

The frequency curve is obtained by drawing a smooth freehand curve passing through the points of the frequency polygon as closely as possible. It may not necessarily pass through all the points of the frequency polygon, but it passes through them as closely as possible.

The Chinese Leader Mao introduced the great Proletarian Cultural Revolution.

D. providing a platform for member countries to decide future tariff-related strategies

The types of classification of data are: 

• Quantitative classification. 
• Qualitative classification. 
• Chronological classification. 
• Spatial classification.

The two types of correlation are as follows:

1. Negative correlation: The correlation is said be negative when the variables move in opposite directions.

Example: When the price of tomato increases, the demand for tomato decreases. More is the time spent for studies, less are the chances of failure.

2. Positive correlation: The correlation is said to be positive when the variables move together in the same direction. 

Example: 

• When our income increases, our consumption also increases. 
• When there is a rise in temperature, there will be an increase in the sales of cool drinks.

Seasonal unemployment is a situation where people get employment only during a particular season. For example, agricultural workers get jobs only during the rainy season.

Resource: This word sounds like the natural place where things come from. Like gold, silver, iron, rice etc. They sound more infinite to me.  

Means: This word sounds more like how you manage to get something done. Like transport, money etc.

B. decrease in transactional demand for money 

(a) There is a negative correlation between production and price of vegetables. If the production of vegetables increases, which leads to increase in supply, it will result in decrease in price of vegetables. 

(b) There is a positive correlation between temperature and sale of ice creams. If the temperature increases, there will be an increase in the sales of ice creams and vice versa.

1. Questionnaire should not be too long 

2. Questionnaire should be precise and clear.

Mixed economic system is being followed in Pakistan.

D. decrease in money demand

B. decreasing the bank rate 

The frequency curve is obtained by drawing a smooth freehand curve passing through the points of the frequency polygon as closely as possible. It may not necessarily pass through all the points of the frequency polygon, but it passes through them as closely as possible.

• Questionnaire should not be too long 
• Questionnaire should be precise and clear

Correct option is C. 1000 

In an arithmetic line graph. time is plotted along the x-axis and the value of the variable is measured in y-axis. A Line graph is constructed by joining the plotted points to get the arithmetic line graph. It helps in understanding the trend, periodicity etc., in a long term time series data.

1-3 

2-5 

3-4 

4-1 

5-2

Exclusive method: Under this method. the classes are formed in such a way that the upper class limit of one class will be equal to the lower class limit of the next class. Here the continuity of the data is maintained. This method is most suitable in case of data of a continuous variable. For example, among class intervals 10-20 and 20-30, 20 is included in the next class interval i.e., 20-30 and not in 10-20.

Inclusive method: Under this method, upper class limit is included in a class interval. So here, both upper class limit and lower class limit are parts of the class interval.

In the above example, if we take the class interval 10-19, the lower limit, 10 and the upper 19 are included in the class interval 10-19. If we consider the class intervals as marks of students, the marks scored by students between 10 and 19 falls in this class interval. If a student secures 20, it falls in the next class interval.

Primary data and secondary data are the two sources of data.

China country has the highest life expectancy.

A project is a well thought out action plan designed to attain predetermined objectives.

International Labour Organisation.

Answer is c) 0.1

(a) Both (i) and (ii) are true

(d) output, aggregate demand

Accelerator Model was made by J.M. Clark.

(a) organic farming 

(b) integrated pest management 

(c) farm mechanisation 

(d) agriculture tourism etc.

Assumptions: 

1. Absence of excess capacity in consumer goods industries. 

2. Constant capital – output ratio 

3. Increase in demand is assumed to be permanent 

4. Supply of funds and other inputs is quite elastic 

5. Capital goods are perfectly divisible in any required size.

Disinflation: Disinflation is the slowing down the rate of inflation by controlling the amount of credit (bank loan, hire purchase) available to consumers without causing more unemployment. Disinflation may be defined as the process of reversing inflation without creating unemployment or reducing output in the economy.

Facilities offered by IMF:

The Fund has created several new credit facilities for its members. Chief among them are:

(i) Basic Credit Facility:

• The IMF provides financial assistance to its member nations to overcome their temporary difficulties relating to balance of payments.
• A member nation can purchase from the Fund other currencies or SDRs, in exchange for its own currency, to finance payment deficits.
• The loan is repaid when the member repurchases its own currency with other currencies or SDRs.
• A member can unconditionally borrow from the Fund in a year equal to 25% of its quota.
• This unconditional borrowing right is called the reserve tranche.

(ii) Extended Fund Facility:

• Under this arrangement, the IMF provides additional borrowing facility up to 140% of the member’s quota, over and above the basic credit facility.
• The extended facility is limited for a period up to 3 years and the rate of interest is low.

(iii) Compensatory Financing Facility:

• In 1963, IMF established compensatory financing facility to provide additional financial assistance to the member countries, particularly primary producing countries facing shortfall in export earnings.
• In 1981, the coverage of the compensatory financing facility was extended to payment problem caused by the fluctuations in the cost of cereal inputs.

(iv) Buffer Stock Facility:

• The buffer stock financing facility was started in 1969.
• The purpose of this scheme was to help the primary goods (food grains) producing countries to finance contributions to buffer stock arrangements for the stabilisation of primary product prices.

(v) Supplementary Financing Facility: Under the supplementary financing facility, the IMF makes temporary arrangements to provide supplementary financial assistance to member countries facing payments problems relating to their present quota sizes.

(vi) Structural Adjustment Facility:

• The IMF established Structural Adjustment Facility (SAF) in March 1986 to provide additional balance of payments assistance on concessional terms to the poorer member countries.
• In December 1987, the Enhanced Structural Adjustment Facility (ESAF) was set up to augment the availability of concessional resources to low income countries.
• The purpose of SAF and ESAF is to force the poor countries to undertake strong macroeconomic and structural programmes to improve their balance of payments positions and promote economic growth.

Principles of Federal Finance: 

In the case of federal system of finance, the following main principles must be applied:

1. Principle of Independence. 

2. Principle of Equity. 

3. Principle of Uniformity. 

4. Principle of Adequacy. 

5. Principle of Fiscal Access. 

6. Principle of Integration and coordination. 

7. Principle of Efficiency. 

8. Principle of Administrative Economy. 

9. Principle of Accountability.

1. Principle of Independence:

• Under the system of federal finance, a Government should be autonomous and free about the internal financial matters concerned.
• It means each Government should have separate sources of revenue, authority to levy taxes, to borrow money and to meet the expenditure.
• The Government should normally enjoy autonomy in fiscal matters.

2. Principle of Equity: From the point of view of equity, the resources should be distributed among the different states so that each state receives a fair share of revenue.

3. Principle of Uniformity: In a federal system, each state should contribute equal tax payments for federal finance.

4. Principle of Adequacy of Resources:

• The principle of adequacy means that the resources of each Government i.e. Central and State should be adequate to carry out its functions effectively.
• Here adequacy must be decided with reference to both current as well as future needs.
• Besides, the resources should be elastic in order to meet the growing needs and unforeseen expenditure like war, floods etc.

5. Principle of Fiscal Access:

• In a federal system, there should be possibility for the Central and State Governments to develop new source of revenue within their prescribed fields to meet the growing financial needs.
• In nutshell, the resources should grow with the increase in the responsibilities of the Government.

6. Principle of Integration and coordination:

• The financial system as a whole should be well integrated.
• There should be perfect coordination among different layers of the financial system of the country.
• Then only the federal system will survive.
• This should be done in such a way to promote the overall economic development of the country.

7. Principle of Efficiency:

• The financial system should be well organized and efficiently administered. 
• Double taxation should be avoided.

8. Principle of Administrative Economy:

• Economy is the important criterion of any federal financial system.
• That is, the cost of collection should be at the minimum level and the major portion of revenue should be made available for the other expenditure outlays of the Governments.

9. Principle of Accountability: Each Government should be accountable to its own legislature for its financial decisions i.e. the Central to the Parliament and the State to the Assembly.

South Asian Association For Regional Co-Operation (SAARC):

1. The South Asian Association for Regional Cooperation (SAARC) is an organisation of South Asian nations, which was established on 8 December 1985 for the promotion of economic and social progress, cultural development with the South Asia region and also for friendship and co-operation with other developing countries. 

2. The SAARC Group (SAARC) comprises of Bangaladesh, Bhutan, India, The Maldives, Nepal, Pakistan and Sri Lanka.

3. In April 2007, Afghanistan became its eighth member. 

4. The basic aim of the organisation is to accelerate the process of economic and social development of member states through joint action in the agreed areas of cooperation. 

5. The SAARC Secretariat was established in Kathmandu (Nepal) on 16th January 1987. 

6. The first SAARC summit was held at Dhaka in the year 1985.

7. SAARC meets once in two years. Recently, the 20th SAARC summit was hosted by Sri Lanka in 2018.

Objectives of SAARC: According to Article I of the Charter of the SAARC, the objectives of the Association are as follows:

1. To promote the welfare of the people of South Asia and improve their quality of life; 

2. To accelerate economic growth, social progress and cultural development in the region;

3. To promote and strengthen collective self-reliance among the countries of South Asia; 

4. To contribute to mutual trust, understanding and appreciation of one another’s problems; 

5. To promote active collaboration and mutual assistance in the economic, social, cultural, technical and scientific fields; 

6. To strengthen co-operation with other developing countries;

7. To strengthen cooperation among themselves in international forums on matters of common interest; 

8. To cooperate with international and regional organisations with similar aims and purposes.

(c) World Bank

Functions of SAARC: The main functions of SAARC are as follows.

1. Maintenance of the co operation in the region 

2. Prevention of common problems associated with the member nations.

3. Ensuring strong relationship among the member nations. 

4. Removal of the poverty through various packages of programmes.

5. Prevention of terrorism in the region.

(b) Non-market goods

Environmental goods are typically non-market goods, including clear air, clean water, landscape, green transport infrastructure (footpaths, cycle ways, greenways, etc.), public parks, urban parks, rivers, mountains, forests, and beaches.

Concerns with environmental goods focus on the effects that the exploitation of ecological systems have on the economy, the well-being of humans and other species, and on the environment.