75 Questions
In a market economy, what determines which consumer goods are produced?
The market forces of supply and demand
What determines whether more human labor or more capital is used for production in a market economy?
Whether labor is cheaper than capital
How are goods and services distributed in a capitalist society?
Based on purchasing power
Why might low-cost housing for the poor not be produced in a market economy?
Because it's not in demand
What is the basis for distributing goods among people in a capitalist society?
Purchasing power
What type of economy relies on supply and demand to determine the production of goods?
Market economy
In a socialist society, who decides what goods are to be produced?
The government
What is the basis of distribution in a socialist society?
People's needs
What does a socialist society provide to all its citizens, unlike under capitalism?
Free health care
Which statement is true about a socialist society's view on private property?
It has no private property since everything is owned by the state
What type of economy involves both the government and the market in answering economic questions?
Mixed economy
According to the passage, who is considered to know what is good for the people in a socialist society?
The government
What principle is distribution under socialism supposed to be based on?
What people need
What type of economy does Cuba have, according to the passage?
Socialist economy
Which economic system provides free health care to all its citizens?
Socialist system
Who provides essential goods and services in a mixed economy when the market fails to do so?
The government
What were the specified goals of the five year plans in India?
Growth, modernization, self-reliance, and equity
What does 'growth' refer to in the context of the five year plans?
Increase in the country's capacity to produce goods and services
What was the role of the Planning Commission set up in 1950?
To specify goals for the five year plans
How did the limited resources impact the choice of goals in each plan?
It made it necessary to prioritize certain goals over others
Who is regarded as the architect of Indian planning?
Prasanta Chandra Mahalanobis
Where was Prasanta Chandra Mahalanobis educated?
Presidency College, Calcutta and Cambridge University, England
Which organization did Prasanta Chandra Mahalanobis establish in Calcutta?
Indian Statistical Institute (ISI)
What was the share of the service sector in India's GDP by 1990?
40.59%
What is the GDP?
The market value of all the final goods and services produced in the country during a year
What milestone marked the onset of globalization in India?
Post 1991 period
What does a growing share of the service sector in the GDP indicate for a country’s development?
Higher levels of development
What does the author compare the GDP to?
'A cake' which represents the total goods and services produced in a country
What organization did Prasanta Chandra Mahalanobis become a Fellow of in 1945?
Royal Society of Britain
What did Prasanta Chandra Mahalanobis invite distinguished economists to advise him on?
India’s economic development
"Modernisation: To increase the production of goods and services" refers to adopting what?
New technology
What structural change indicates higher levels of development for a country?
A growing share of service sector and declining share of agriculture
Why did the Soviet farmers pack rotten fruits along with fresh fruits in the same box?
There was no incentive for them to be efficient.
What was the reason for the poor performance of the agricultural sector in the Soviet Union, despite the availability of fertile land?
The absence of ownership and lack of incentive for farmers to be efficient.
What was the primary reason for India's need to import food from the United States of America?
Low productivity in the agricultural sector.
What was the purpose of land ceiling policy in India?
To promote equity in the agricultural sector by reducing the concentration of land ownership in a few hands.
What was the impact of abolition of intermediaries on tenants in India?
It gave tenants incentives to invest in making improvements on the farm.
What was a challenge faced by land ceiling legislation in India?
'Loopholes exploited by big landlords to retain their land.'
What led to the success of land reforms in Kerala and West Bengal?
'Governments committed to the policy of land to the tiller.'
What caused stagnation in agriculture during colonial rule in India?
'Use of old technology.'
Why were farmers in trouble during a short monsoon season in India?
'Lack of access to irrigation facilities.'
What was the key factor that broke the stagnation in agriculture during colonial rule in India?
'Introduction of green revolution.'
Why did some states like Kerala and West Bengal have better success with land reforms compared to other states?
Due to governments committed to the policy of land to the tiller.
What refers to the increase in food grain production from the use of high yielding variety (HYV) seeds?
Green revolution
What was vital for the application of high yielding variety (HYV) seeds?
Use of fertiliser and pesticide in correct quantities, regular supply of water, and correct proportions
In which phase of the green revolution did the high yielding variety (HYV) technology spread to a larger number of states and benefit more variety of crops?
Second phase (mid-1970s to mid-1980s)
What does the portion of agricultural produce sold in the market by the farmers refer to?
Market surplus
What did the green revolution enable India to achieve in terms of food grains?
Self-sufficiency in food grains
What was a risk associated with high yielding variety (HYV) crops during the green revolution?
Pest attacks and vulnerability for small farmers
What steps did the government take to reduce the risk for small farmers adopting high yielding variety (HYV) technology?
Subsidizing fertilisers and providing loans at a low interest rate
Who did the green revolution benefit besides rich farmers?
'Small farmers and rich farmers'
What is a hotly debated question according to the passage?
Use of subsidies in agriculture
What was generally agreed as necessary for adoption of new high yielding variety (HYV) technology by farmers?
Subsidies and incentives for small farmers
What did the government provide to reduce the risk of small farmers being ruined by pest attacks on their crops?
Low interest rate loans and subsidized fertilisers
What would have favored rich farmers only if the state did not play an extensive role according to the passage?
Green revolution technology
Why do some economists believe that subsidies should be phased out once technology is widely adopted?
To stop the burden on the government's finances
Why do some experts argue for the government to continue with agricultural subsidies?
To support poor farmers who cannot afford inputs
What do some economists believe is the negative impact of subsidies on resources like water and electricity?
They lead to wasteful use of resources
Why did a large proportion of the population remain engaged in agriculture in India from 1950 to 1990?
Because agricultural output could have grown with much less people working in the sector
How do prices act as signals in the market according to the text?
Prices indicate the supply of goods
What happens when electricity and water are provided at a subsidized rate or free according to some economists?
Wasteful use of resources increases
Why is it argued that there is no case for continuing with fertiliser subsidies?
Because they put a huge burden on government finances
What is the achievement mentioned in the text related to Indian agricultural productivity?
Sufficient increase in food grain production
According to some experts, what could be a consequence of eliminating subsidies for poor farmers?
Potential violation of equity goals
What is emphasized as a potential consequence of not allowing prices to indicate the supply of goods?
Wasteful use of resources
What do some economists believe is the reason behind a large proportion of GDP still being contributed by agriculture despite a decline in its proportion?
Increase in population depending on agriculture
What do some experts believe is the potential impact of eliminating subsidies for poor farmers?
Increase in inequality between rich and poor farmers
What does modernisation refer to in the context of the passage?
Adoption of new technology and changes in social outlook
What is the significance of self-reliance in promoting economic growth and modernisation?
It reduces the vulnerability of a nation's sovereignty to foreign interference
What is the importance of equity in the context of economic development?
Ensuring that the benefits of economic prosperity reach the poor as well
How did the policy makers of independent India address issues in the agricultural sector after independence?
By introducing land reforms and promoting the use of ‘High Yielding Variety’ (HYV) seeds
What was the main objective of the policy of 'land to the tiller'?
To provide incentives to cultivators for increasing output
In a traditional society, what is the role expected of women?
To remain at home while men work
What did the first seven five year plans in India attempt to attain?
Growth, modernisation, and equity only
What is the significance of ownership in providing incentives to cultivators?
Ownership enables cultivators to make profit from increased output
Explore the different types of economic systems and the fundamental questions they seek to answer, such as resource allocation, production methods, and distribution of goods and services. Learn about market economies and their reliance on supply and demand forces.
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