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Questions and Answers
What is the general goal of monetary policy?
What is the general goal of monetary policy?
What is meant by the structural composition of the economy?
What is meant by the structural composition of the economy?
How does the export of mangoes by India relate to its national income measurement?
How does the export of mangoes by India relate to its national income measurement?
What is the basic difference between market prices and factor costs?
What is the basic difference between market prices and factor costs?
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Which of the following is not a direct benefit attributed to a strong industrial sector?
Which of the following is not a direct benefit attributed to a strong industrial sector?
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In the context of the economic environment assessment system, what is the focus of the analysis?
In the context of the economic environment assessment system, what is the focus of the analysis?
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What indicator is most commonly used to measure overall economic performance?
What indicator is most commonly used to measure overall economic performance?
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Which of the following items is subtracted from GNP during its calculation?
Which of the following items is subtracted from GNP during its calculation?
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What does the term 'public expenditure' generally refer to?
What does the term 'public expenditure' generally refer to?
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What goal are labor policy measures typically aimed at achieving?
What goal are labor policy measures typically aimed at achieving?
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What does the net indirect tax amount to in the provided data?
What does the net indirect tax amount to in the provided data?
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Which of the following statements about budget deficits is correct?
Which of the following statements about budget deficits is correct?
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What is a primary benefit of import substitution policy as mentioned?
What is a primary benefit of import substitution policy as mentioned?
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What is the correct description of the public sector enterprises' contributions to the government?
What is the correct description of the public sector enterprises' contributions to the government?
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Which of the following is NOT considered a negative impact of the urban-rural migration during economic transitions?
Which of the following is NOT considered a negative impact of the urban-rural migration during economic transitions?
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Which statement correctly identifies a characteristic of deficits?
Which statement correctly identifies a characteristic of deficits?
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Which industry is considered part of the public sector based on the given data?
Which industry is considered part of the public sector based on the given data?
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What is one of the key questions that needs an answer in every economy?
What is one of the key questions that needs an answer in every economy?
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Which of the following statements related to current taxation and borrowing is inaccurate?
Which of the following statements related to current taxation and borrowing is inaccurate?
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What is one possible adverse effect of economic reforms mentioned?
What is one possible adverse effect of economic reforms mentioned?
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Which purpose arises from government property transferred to a legal heir?
Which purpose arises from government property transferred to a legal heir?
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The value of wheat in the dough is a part of which method of measuring national income?
The value of wheat in the dough is a part of which method of measuring national income?
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Which of the following is not a correctly stated component of the expenditure method for measuring national income?
Which of the following is not a correctly stated component of the expenditure method for measuring national income?
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Which sequence correctly represents the concepts from broad to narrow related to national income?
Which sequence correctly represents the concepts from broad to narrow related to national income?
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Which of the following options is responsible for a decrease in access to loans for the poor?
Which of the following options is responsible for a decrease in access to loans for the poor?
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The correct order of concepts transitioning from broad to narrow for national income is which of the following?
The correct order of concepts transitioning from broad to narrow for national income is which of the following?
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Which method classifies the components of national income as derived from expenditure?
Which method classifies the components of national income as derived from expenditure?
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Which option does not represent a component of Gross National Product?
Which option does not represent a component of Gross National Product?
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What distinguishes net domestic product from gross domestic product?
What distinguishes net domestic product from gross domestic product?
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What characterizes a liquidity trap?
What characterizes a liquidity trap?
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Which of these factors is essential in determining the distribution of resources?
Which of these factors is essential in determining the distribution of resources?
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Which statement is correct regarding the relationship of liquidity preference and speculative demand?
Which statement is correct regarding the relationship of liquidity preference and speculative demand?
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In a liquidity trap, what happens to the liquidity preference curve?
In a liquidity trap, what happens to the liquidity preference curve?
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What is an implication of speculative demand being infinitely elastic?
What is an implication of speculative demand being infinitely elastic?
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Which of the following correctly describes the liquidity preference concept?
Which of the following correctly describes the liquidity preference concept?
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How does a liquidity trap influence monetary policy effectiveness?
How does a liquidity trap influence monetary policy effectiveness?
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Which statement reflects the behavior of money demand during a liquidity trap?
Which statement reflects the behavior of money demand during a liquidity trap?
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What does it indicate when a liquidity preference curve becomes perfectly inelastic?
What does it indicate when a liquidity preference curve becomes perfectly inelastic?
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What occurs at the point where both speculative demand and liquidity preference curve become elastic?
What occurs at the point where both speculative demand and liquidity preference curve become elastic?
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Which condition best describes the scenario when speculative demand for money is infinitely inelastic?
Which condition best describes the scenario when speculative demand for money is infinitely inelastic?
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What is the concept of 'transfer payments' as it relates to future generations?
What is the concept of 'transfer payments' as it relates to future generations?
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Which of the following is a type of transfer payment specified for promoting well-being?
Which of the following is a type of transfer payment specified for promoting well-being?
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What percentage of India's population was estimated to be below the poverty line in 2011-12?
What percentage of India's population was estimated to be below the poverty line in 2011-12?
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Which initiative is related to the National Rural Employment Guarantee Act?
Which initiative is related to the National Rural Employment Guarantee Act?
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In which economic concept are large outputs produced with minimal labor and capital inputs referred to?
In which economic concept are large outputs produced with minimal labor and capital inputs referred to?
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What was the percentage of women working in India’s primary sector until 2011-2012?
What was the percentage of women working in India’s primary sector until 2011-2012?
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What major goal does the National Rural Employment Guarantee Act aim to achieve?
What major goal does the National Rural Employment Guarantee Act aim to achieve?
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Which of the following is NOT considered a transfer payment?
Which of the following is NOT considered a transfer payment?
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What strategy is commonly used to enhance skill production through competition?
What strategy is commonly used to enhance skill production through competition?
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What is the primary focus of the 'LED' program initiated by NABARD?
What is the primary focus of the 'LED' program initiated by NABARD?
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Study Notes
Liquidity Trap
- It is when the speculative demand for money becomes infinitely inelastic and the liquidity preference curve becomes perfectly elastic.
Interest Rate and Speculative Demand for Money
- When interest rates are at their maximum, speculative demand for money becomes zero.
NABARD's E-Shakti Project
- Aim is to digitize financial and non-financial data of all Self Help Groups.
- The project was launched in March 2015 by NABARD.
National Income
- NNP is reduced by central assistance to states in the market value of goods and services during national income accounting.
Monetary Policy
- The general objective of monetary policy is to ensure price stability in the economy.
The Structure of the Economy
- The structural composition of the economy relates to the contribution of different sectors to the GDP.
National Income Accounting
- Exports of mangoes by India are a part of the expenditure method of national income accounting.
Net Economic Welfare (NEW)
- Congestion in urban living is deducted from GNP while calculating NEW.
Environmental Accounting System
- The interlinkage between economy and environment is analyzed by UN Statistical Office in the environmental accounting system.
Objective of Government Budget
- The government budget aims at increasing GDP, reallocating resources, and achieving balanced regional development.
Public Sector Reforms
- The Public Sector Reforms were significantly impacted after the 9th Five-Year Plan, leading to a reduction in public sector dominance.
Real GDP
- Real GDP measures the exact output of goods and services in an economy regardless of price changes.
National Income Measurement
- Exports are not a correctly stated component of the expenditure method of national income measurement.
National Income Concepts: Order
- The correct order of national income concepts from broadest to narrowest is: NNP at factor cost - NNP at market prices - Personal income - Disposable income.
National Income Concepts: Incorrect Order
- The incorrect order of national income concepts from broadest to narrowest is: NNP at market prices - NNP at factor cost - Gross national income - Per capita income.
Debt Management
- According to David Ricardo, taxation and borrowing are equally effective means of managing high deficits.
Public Sector Enterprises (PSUs)
- The profit received by the government from Public Sector Enterprises (PSUs) is a source of non-tax revenue.
Budget Deficit
- A budget deficit increases stock of debt. It is a flow that adds to the stock of debt.
Gross Domestic Product (GDP)
- GDP minus depreciation is equal to Net Domestic Product (NDP).
Relations: Landlords and Agricultural Workers
- Joan Robinson described the changing nature of the relationship between landlords, dominant class, and agricultural workers, as a shift from exploitation to protection.
Financial Year in India
- The financial year in India runs from April 1st to March 31st.
Bond Price
- Under competitive market conditions, the price of a bond should always equal its present value.
Green Revolution: Negative Impacts
- Migration from urban to rural areas is not a negative impact of the Green Revolution.
Public Sector Industry
- BHEL is a public sector industry in India.
Import Substitution Policy
- Self-reliance is a major advantage of the import substitution policy.
Basic Questions for Economics
- How to exchange goods? is not one of the fundamental questions that every economy must answer .
Transfer Payments
- Unemployment allowance, student scholarships, and retirement pensions are all considered transfer payments.
Resident of India
- Indians working in foreign embassies and Indian citizens residing abroad are both considered residents of India.
Extensive Farming
- Farming that involves large tracts of land with minimal labor and capital input is referred to as extensive farming.
Women's Participation in the Primary Sector
- In 2011-2012, 62.8% of working women in India were employed in the primary sector.
LEDP (Lakhpati Diwas Program)
- The Lakhpati Diwas Programme was launched in 2015 by NABARD to encourage entrepreneurship.
Benefits of International Competition
- Incentive to produce efficiently is a benefit of international competition.
Poverty in India
- In 2011-12, it was estimated that 21.9% of the Indian population lived below the poverty line.
Objectives of Five-Year Plans
- Security was not an objective of the Five-Year plans in India.
Government Revenue
- Transfer payments are included in government revenue.
National Rural Employment Guarantee Act
- The National Rural Employment Guarantee Act (NREGA), now known as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), guarantees 100 days of waged employment annually to rural households.
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Description
This quiz covers key concepts in economics such as liquidity traps, monetary policy, and national income accounting. Test your knowledge on the effects of interest rates, the structure of the economy, and initiatives like NABARD's E-Shakti project. Challenge yourself and deepen your understanding of how these elements interact in economic theory.