Examkin

Indian Economy and Social Development

241 soru

Tüm türler241Çoktan seçmeli126Çoklu seçim32Sayısal10Eşleştirme49Sıralama24
Soru 201Soru →

When the Reserve Bank of India (RBI) increases the Repo Rate during a monetary tightening phase to manage inflation, which of the following is the direct operational impact on commercial banks and short-term money markets?

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Cevap: The borrowing cost for commercial banks accessing funds through the Liquidity Adjustment Facility (LAF) increases, driving up short-term money market rates and constraining credit expansion.

Cevap

An increase in the Repo Rate raises short-term borrowing costs for commercial banks under the Liquidity Adjustment Facility (LAF), driving up short-term money market rates and constraining bank credit expansion.
The Repo Rate is the key policy rate at which commercial banks borrow short-term funds from the RBI against approved government securities under the Liquidity Adjustment Facility (LAF). Raising the Repo Rate elevates the marginal cost of funds for banks, transmitting higher interest rates across short-term money markets and dampening credit expansion to control inflation.

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1
Identify the monetary policy instrument specified
The instrument is the Repo Rate, which serves as the primary policy rate under the RBI's Liquidity Adjustment Facility (LAF).
Understanding the operational role of the Repo Rate is required to determine its immediate monetary transmission mechanism.
2
Analyze the economic impact of raising the Repo Rate
A higher Repo Rate increases the interest cost incurred by commercial banks when borrowing overnight funds from the RBI against government securities.
Banks pass on higher borrowing costs to borrowers by increasing their lending rates and raising short-term money market rates.
3
Differentiate the Repo Rate from other RBI quantitative tools and corridor rates
CRR regulates non-interest-bearing cash reserve balances, while bond yields rise (not fall) when policy rates increase. The Standing Deposit Facility (SDF) rate forms the lower bound of the LAF corridor, while MSF forms the upper bound.
Distinguishing between reserve requirements, corridor bounds, and policy rates verifies that LAF borrowing cost escalation is the unique correct operational effect.

Anahtar Kavram

Repo Rate Transmission and Liquidity Adjustment Facility (LAF)
Soru 202Soru →

Consider the following statements regarding labor market concepts and demographic trends in India:

1. Demographic dividend refers to an economic growth opportunity created when the proportion of the working-age population (15–64 years) exceeds the dependent population.
2. Disguised unemployment is characterized by a scenario where additional workers contribute zero to marginal total output.
3. Frictional unemployment arises primarily from long-term economic shifts that cause a structural mismatch between the skills workers have and the skills employers need.

Which of the statements given above are correct?

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Cevap: 1 and 2 only

Cevap

The correct answer is the option stating that statements 1 and 2 only are correct.
Statements 1 and 2 are accurate. The demographic dividend refers to economic expansion facilitated by a higher proportion of working-age individuals (15–6415\text{--}64 years) compared to dependents. Disguised unemployment occurs when excess labor is employed without increasing total output, meaning marginal labor productivity is zero. Statement 3 is incorrect because skill mismatch is a hallmark of structural unemployment, whereas frictional unemployment is temporary job search time.

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1
Evaluate Statement 1 regarding demographic dividend definition.
Statement 1 is correct.
Demographic dividend occurs when the demographic transition leads to a high share of working-age population (15–64 years) relative to dependents (below 15 and above 64 years).
2
Evaluate Statement 2 regarding disguised unemployment.
Statement 2 is correct.
In disguised unemployment (commonly seen in Indian agriculture), more workers are engaged than necessary, leading to marginal productivity of labor being virtually zero.
3
Evaluate Statement 3 regarding frictional vs structural unemployment.
Statement 3 is incorrect.
A long-term mismatch between worker skills and job market requirements defines structural unemployment. Frictional unemployment refers to brief periods of unemployment while moving between jobs.

Anahtar Kavram

Demographic Dividend and Unemployment Classifications
Soru 203Soru →

Match the national income aggregates and development indicators listed in List-I with their correct methodological definitions in List-II:

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Öğeler

Net National Product at Factor Cost (NNPFCNNP_{FC})
Gross Value Added at Basic Prices (GVABPGVA_{BP})
Planetary Pressures-adjusted Human Development Index (PHDI)
Genuine Progress Indicator (GPI)

Eşleşmeler

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Cevap

Net National Product at Factor Cost corresponds to GDPMP−Depreciation+NFIA−Net Product TaxesGDP_{MP} - \text{Depreciation} + \text{NFIA} - \text{Net Product Taxes}. Gross Value Added at Basic Prices corresponds to GVAFC+(Production Taxes−Production Subsidies)GVA_{FC} + (\text{Production Taxes} - \text{Production Subsidies}). Planetary Pressures-adjusted HDI corresponds to the Human Development Index discounted by per capita carbon dioxide emissions and material footprint. Genuine Progress Indicator corresponds to the economic metric adjusting personal consumption expenditure for income inequality, environmental degradation, and non-market benefits.
Each national accounting aggregate and indicator is accurately paired with its official definition under CSOS/NSO national account revision standards and UNDP indicator frameworks. Net National Product at Factor Cost represents national income. GVA at Basic Prices isolates production-stage net taxes. PHDI adjusts HDI for environmental footprint, while GPI extends economic progress measurement beyond conventional consumption output.

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1
Analyze Net National Product at Factor Cost (NNPFCNNP_{FC})
NNPFC=GDPMP−Depreciation+NFIA−Net Product TaxesNNP_{FC} = GDP_{MP} - \text{Depreciation} + \text{NFIA} - \text{Net Product Taxes}
Converting Gross to Net requires subtracting depreciation; converting Market Price to Factor Cost requires subtracting Net Product Taxes.
2
Identify the accounting identity for Gross Value Added at Basic Prices (GVABPGVA_{BP})
GVABP=GVAFC+Net Production TaxesGVA_{BP} = GVA_{FC} + \text{Net Production Taxes}
Basic prices account for production taxes (like land revenue and stamp duties) independent of actual output quantity, while excluding product taxes (like GST).
3
Evaluate the development indicator definitions
PHDI incorporates environmental strain (carbon emissions and material footprint), whereas GPI expands macroeconomic accounting beyond GDP by incorporating social and environmental welfare adjustments into personal consumption.
Distinguishing global index adjustments (UNDP's PHDI) from alternative welfare accounts (GPI) clarifies their economic measurement focus.

Anahtar Kavram

National Income Accounting Identities and Modern Development Indicators
Soru 204Soru →

Consider the following statements regarding the Standing Deposit Facility (SDF) introduced by the Reserve Bank of India (RBI):

1. The SDF allows commercial banks to park surplus liquidity with the RBI without requiring government securities as collateral.
2. The SDF replaced the fixed rate reverse repo as the lower floor of the Liquidity Adjustment Facility (LAF) corridor.
3. The interest rate for the SDF is set 25 basis points above the policy Repo Rate.

Which of the statements given above are correct?

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Cevap: 1 and 2 only

Cevap

Statements 1 and 2 only are correct.
Statements 1 and 2 are correct. The Standing Deposit Facility (SDF) allows the RBI to absorb surplus liquidity from commercial banks without transferring collateral (government securities). Introduced in April 2022, it replaced the fixed reverse repo rate as the floor of the Liquidity Adjustment Facility (LAF) corridor. Statement 3 is incorrect because the SDF rate is positioned 25 basis points below the Repo Rate, whereas the Marginal Standing Facility (MSF) rate is 25 basis points above the Repo Rate.

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1
Analyze Statement 1 regarding SDF collateral requirement.
Statement 1 is correct. The Standing Deposit Facility (SDF) is an uncollateralized liquidity absorption mechanism, allowing the RBI to absorb liquidity without providing government securities.
Unlike Reverse Repo operations, SDF does not lock up RBI's government securities portfolio.
2
Analyze Statement 2 regarding the LAF corridor floor.
Statement 2 is correct. In April 2022, the RBI instituted the SDF at the floor of the Liquidity Adjustment Facility (LAF) corridor, taking over the role of the fixed rate reverse repo.
The LAF corridor is bounded by the SDF at the bottom and the Marginal Standing Facility (MSF) at the top.
3
Analyze Statement 3 regarding the pricing of the SDF rate relative to the Repo Rate.
Statement 3 is incorrect. The SDF rate is pegged 25 basis points below the Repo Rate (Repo−0.25%Repo - 0.25\%), whereas the Marginal Standing Facility (MSF) rate is set 25 basis points above the Repo Rate (Repo+0.25%Repo + 0.25\%).
Setting the floor below the policy rate ensures orderly money market operations and interest rate corridor alignment.

Anahtar Kavram

Standing Deposit Facility (SDF) and LAF Corridor Mechanics
Soru 205Soru →

Match each national skill development program in List-I with its primary target group or core objective in List-II. Which of the following pair alignments correctly connects each scheme with its mandate?

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Öğeler

Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY)
National Apprenticeship Promotion Scheme (NAPS)
SHREYES (Scheme for Higher Education Youth in Apprenticeship and Skills)

Eşleşmeler

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Cevap

Pradhan Mantri Kaushal Vikas Yojana (PMKVY) aligns with short-term skill certification and RPL; Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) aligns with placement-linked skill training for rural poor youth; National Apprenticeship Promotion Scheme (NAPS) aligns with stipend cost-sharing support to employers; and SHREYES aligns with on-the-job apprenticeship opportunities for general stream graduates.
The correct alignment pairs each major government initiative with its accurate statutory objective: PMKVY provides short-term skill certification and RPL; DDU-GKY mandates placement-linked training for poor rural youth; NAPS reimburses stipend costs to incentivize employers; and SHREYES bridges employability gaps specifically for general stream (non-technical) graduates.

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1
Identify the mandate of PMKVY
PMKVY focuses on industry-relevant short-term skill training and Recognition of Prior Learning (RPL).
It is designed to encourage skill certification for youth across unorganized and organized sectors.
2
Identify the mandate of DDU-GKY
DDU-GKY is a placement-linked skill development initiative focused specifically on rural poor youth.
It aims to diversify rural household incomes under the National Rural Livelihoods Mission.
3
Identify the mechanism of NAPS
NAPS provides financial incentives by reimbursing part of the apprentice stipend to employers.
Direct financial assistance incentivizes private sector establishments to hire and train apprentices.
4
Identify the focus demographic of SHREYES
SHREYES offers skill training and apprenticeship to general non-technical degree graduates.
It addresses employability gaps among general stream graduates in arts, science, and commerce.

Anahtar Kavram

Institutional Framework of National Skill Initiatives and Targeted Beneficiary Schemes
Soru 206Soru →

Match the national accounting aggregates and development indicators in List-I with their accurate conceptual definitions in List-II:

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Öğeler

Gross National Disposable Income (GNDIGNDI)
Gross National Happiness (GNHGNH)
Net Value Added at Factor Cost (NVAFCNVA_{FC})
Inequality-adjusted Human Development Index (IHDIIHDI)

Eşleşmeler

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Cevap

Gross National Disposable Income corresponds to total available resources equal to GNPMPGNP_{MP} plus net current transfers from abroad; Gross National Happiness corresponds to the development framework based on sustainable growth, environmental conservation, cultural preservation, and good governance; Net Value Added at Factor Cost corresponds to income generated after deducting depreciation and net indirect taxes; Inequality-adjusted Human Development Index corresponds to the measure discounting average HDI achievement due to distribution inequality.
Each indicator matches its exact definition: Gross National Disposable Income factors in foreign transfers to GNPMPGNP_{MP}; Gross National Happiness focuses on four pillars of holistic governance and sustainability; Net Value Added at Factor Cost isolates net factor earnings by removing depreciation and tax distortions; Inequality-adjusted Human Development Index discounts standard HDI based on spatial and social inequalities.

Adım Adım Çözüm

1
Examine the macroeconomic identities in List-I
Identify GNDIGNDI as an indicator of national disposable income incorporating foreign net transfers, and NVAFCNVA_{FC} as net factor earnings from production after deducting depreciation and indirect taxes.
National accounting rules distinguish between income generated, factor payments, and total disposable funds.
2
Examine the social and development metrics in List-I
Identify Gross National Happiness as a multidimensional quality-of-life framework, and IHDIIHDI as UNDP's metric adjusting standard HDI for inequality across dimensions.
Development indicators extend beyond financial output to capture distribution equity and qualitative well-being.
3
Match each term to its theoretical definition
GNDIGNDI matches total resources including net transfers from abroad; GNHGNH matches the four-pillar holistic framework; NVAFCNVA_{FC} matches net domestic factor production income; IHDIIHDI matches the index discounting HDI for unequal distribution.
Pairing each term with its primary methodological scope establishes accurate concept matching.

Anahtar Kavram

National Income Disposable Aggregates and Human Development Indices
Soru 207Soru →

Consider the following statements regarding the national income accounting framework and price indices in India:

1. Gross Value Added (GVA) at basic prices includes product taxes and excludes product subsidies.
2. The GDP deflator reflects the prices of all domestically produced final goods and services, including capital goods, unlike the Consumer Price Index (CPI).
3. Real GDP measures economic output evaluated at current market prices without adjusting for inflation.

Which of the statements given above is/are correct?

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Cevap: 2 only

Cevap

Only Statement 2 is correct.
The statement specifying that the GDP deflator includes all domestically produced final goods and services while CPI covers a specific consumer basket and includes imports is factually correct. Meanwhile, GVA at basic prices excludes product taxes/subsidies (it includes only production taxes/subsidies), and Real GDP uses constant prices rather than current prices.

Adım Adım Çözüm

1
Analyze Statement 1 regarding GVA at basic prices
Statement 1 is incorrect.
GVA at basic prices equals GVA at factor cost plus production taxes minus production subsidies. Product taxes (such as GST or excise duty) and product subsidies are accounted for when transitioning from basic prices to market prices (GDP at market prices), not at basic prices.
2
Analyze Statement 2 comparing GDP Deflator and CPI
Statement 2 is correct.
The GDP deflator covers all domestic output, including capital goods, and does not include imported goods. CPI covers only a representative consumption basket, which includes imported consumer items.
3
Analyze Statement 3 defining Real GDP
Statement 3 is incorrect.
Real GDP evaluates current production using constant base-year prices to remove the effect of price changes (inflation). Output measured at current prices without inflation adjustment is Nominal GDP.

Anahtar Kavram

Distinction between GVA at basic prices vs market prices, GDP deflator vs CPI scope, and Real vs Nominal GDP.
Soru 208Soru →

Match the inflation types and phenomena listed in List-I with their corresponding economic characteristics listed in List-II.

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Öğeler

Shrinkflation
Skewflation
Headline Inflation
Core Inflation

Eşleşmeler

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Cevap

Shrinkflation matches with the reduction of product quantity at constant retail price; Skewflation matches with price rise concentrated in a specific group of commodities; Headline Inflation matches with total inflation including food and fuel; and Core Inflation matches with persistent inflation excluding food and fuel.
Shrinkflation is characterized by hidden price increases where packaging size drops while retail price stays fixed. Skewflation describes price inflation concentrated within limited specific items like food products. Headline Inflation represents total price variation across the entire representative consumer basket. Core Inflation excludes volatile components such as food and energy to reflect long-term underlying inflationary trends.

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1
Identify the characteristic of Shrinkflation
Shrinkflation corresponds to maintaining the price sticker while reducing volume, weight, or count of the product.
Firms use this subtle cost-pass-through method when input costs rise without triggering consumer price resistance.
2
Identify the characteristic of Skewflation
Skewflation denotes price increases concentrated within one or a few sectors while prices in other sectors remain moderate or flat.
It highlights sectoral supply bottlenecks rather than generalized monetary expansion.
3
Distinguish between Headline Inflation and Core Inflation
Headline inflation evaluates the entire consumer price index basket, whereas Core inflation filters out volatile food and fuel items.
Excluding temporary supply-side price spikes in food and fuel reveals persistent macroeconomic monetary pressure.

Anahtar Kavram

Inflation Types, Price Indices, and Structural Inflationary Dynamics
Soru 209Soru →

Consider the following statements regarding skill development initiatives and key labor market indicators in India:

1. SANKALP (Skill Acquisition and Knowledge Awareness for Livelihood Promotion) is a World Bank-assisted project under the Ministry of Skill Development and Entrepreneurship focusing on district-level skilling ecosystems and institutional strengthening.
2. The Labor Force Participation Rate (LFPR) is defined as the percentage of persons in the labor force (either employed or actively seeking/available for work) relative to the total population.
3. Structural unemployment refers to temporary joblessness experienced by individuals who are in the process of moving between jobs or entering the labor market for the first time.

Which of the statements given above are correct?

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Cevap: 1 and 2 only

Cevap

1 and 2 only
The combination stating that only statements 1 and 2 are correct is accurate. SANKALP is a Centrally Sponsored Scheme assisted by the World Bank to enhance district-level skilling institutions. LFPR correctly measures the total economically active population (employed plus unemployed seeking work) as a percentage of the total population. Statement 3 describes frictional unemployment, not structural unemployment.

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1
Evaluate Statement 1 regarding skill development initiatives.
Statement 1 is correct. SANKALP was launched by the Ministry of Skill Development and Entrepreneurship (MSDE) with World Bank loan assistance to strengthen institutional mechanisms and decentralized district-level skill training.
SANKALP focuses on convergence, quality assurance, and inclusion of marginalized groups at district levels.
2
Evaluate Statement 2 regarding labor market indicators.
Statement 2 is correct. In official statistics (such as the Periodic Labour Force Survey by NSO), LFPR = [(Employed + Unemployed) / Total Population] × 100.
LFPR includes both persons who are working and those who are unemployed but seeking work.
3
Evaluate Statement 3 regarding unemployment classifications.
Statement 3 is incorrect. Short-term unemployment occurring when individuals are between jobs or searching for initial employment is 'frictional unemployment'. 'Structural unemployment' results from long-term mismatches between economic demand and available labor skills.
Confusing frictional and structural unemployment is a common conceptual error.

Anahtar Kavram

Institutional Skill Initiatives and Unemployment Typologies
Soru 210Soru →

Match the inflation types and phenomena in List-I with their corresponding economic descriptions in List-II:

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Öğeler

Headline Inflation
Core Inflation
Repressed Inflation
Skewflation

Eşleşmeler

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Cevap

Headline Inflation matches with the total price rise measure inclusive of food and energy; Core Inflation matches with price movements excluding volatile food and fuel items; Repressed Inflation matches with demand-driven pressures suppressed by statutory price controls; Skewflation matches with price increases concentrated in specific commodity groups.
Each term in List-I correctly matches its definition in List-II: Headline Inflation measures overall price levels including food and fuel; Core Inflation excludes volatile components; Repressed Inflation involves administrative price limits holding down prices despite high demand; and Skewflation is sector-specific price inflation.

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1
Analyze the broad measure of inflation across all consumer items
Headline Inflation accounts for price changes across the entire economy, including volatile food and energy products.
It represents the raw figure produced directly by price indices like CPI without adjusting for volatility.
2
Identify the underlying inflation measure used for monetary policy evaluation
Core Inflation strips out short-term volatile items (food and fuel) to measure long-term price dynamics.
Central banks track core inflation to gauge persistent demand pressures.
3
Examine inflation suppressed by government price intervention
Repressed Inflation describes a situation where prices are artificially kept low by government regulation or rationing despite market shortages.
Administered pricing mechanisms prevent open price inflation from being recorded in price indices.
4
Differentiate sector-specific price spikes from general inflation
Skewflation refers to price increases skewed toward one or a few goods (e.g., pulses or vegetables) while other commodity prices remain steady.
It reflects localized supply bottlenecks rather than generalized macroeconomic inflation.

Anahtar Kavram

Inflation Classifications and Price Dynamics
Soru 211Soru →

With reference to national income accounting concepts and identities, evaluate the following statements:

I. Personal Disposable Income (PDIPDI) is derived by deducting personal tax payments and non-tax payments (such as fines and fees) from Personal Income (PIPI).
II. Government transfer payments to households are included in Personal Disposable Income, but excluded from National Income (NNPFCNNP_{FC}).
III. Undistributed corporate profits and corporate tax payments are added to National Income when calculating Personal Income.

Which of the statements given above are correct?

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Cevap: Statements I and II only

Cevap

Statements I and II only are correct.
The combination statement affirming Statements I and II only is correct. Statement I accurately states the formula for Personal Disposable Income after deducting tax and non-tax liabilities. Statement II correctly highlights that transfer payments are unilateral receipts excluded from factor-based National Income but included in household income. Statement III is false because corporate taxes and undistributed profits are deducted, not added, when calculating Personal Income from National Income.

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1
Evaluate Statement I regarding Personal Disposable Income (PDIPDI)
Statement I is correct.
Personal Disposable Income represents the actual income available to households for consumption and saving. It is defined as: PDI=Personal Income−Personal Tax Payments−Non-tax Payments (fines, fees)PDI = \text{Personal Income} - \text{Personal Tax Payments} - \text{Non-tax Payments (fines, fees)}.
2
Evaluate Statement II regarding transfer payments
Statement II is correct.
National Income (NNPFCNNP_{FC}) measures only factor earnings earned for productive services. Transfer payments (such as old-age pensions or unemployment relief) are unearned receipts; hence, they are excluded from National Income but included in Personal Income and Personal Disposable Income.
3
Evaluate Statement III regarding Personal Income derivation from National Income
Statement III is incorrect.
Personal Income (PIPI) is calculated as: PI=National Income−Undistributed Profits−Corporate Tax−Net Interest Payments by Households+Transfer PaymentsPI = \text{National Income} - \text{Undistributed Profits} - \text{Corporate Tax} - \text{Net Interest Payments by Households} + \text{Transfer Payments}. Undistributed corporate profits and corporate taxes are earnings of the corporate sector that are not distributed to households, so they are deducted from National Income.

Anahtar Kavram

Personal Disposable Income and National Income Identities
Soru 212Soru →

Consider the following statements regarding the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY):

1. It provides a renewable one-year term life insurance cover of ₹2 lakh₹2\text{ lakh} for death due to any reason to individuals in the age group of 18 to 50 years.
2. The scheme provides risk coverage exclusively for accidental death and permanent total disability.
3. It is administered through the Life Insurance Corporation (LIC) and other participating life insurance companies in tie-up with banks.

Which of the statements given above is/are correct?

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Cevap: 1 and 3 only

Cevap

Statements 1 and 3 are correct, while statement 2 is incorrect.
Statements 1 and 3 are correct. Under PMJJBY, individuals aged 18 to 50 years with a bank account are eligible for a renewable one-year term life cover of ₹2 lakh₹2\text{ lakh} for death due to any reason. The scheme is implemented by the Life Insurance Corporation of India (LIC) and other life insurers in partnership with participating banks. Statement 2 is incorrect because PMJJBY covers death from any cause, whereas accidental death and permanent disability are covered under Pradhan Mantri Suraksha Bima Yojana (PMSBY).

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1
Evaluate Statement 1 regarding eligibility age and benefit amount.
PMJJBY is available to people in the age group of 18 to 50 years having a bank account. It offers a renewable term life cover of ₹2 lakh₹2\text{ lakh} in case of death due to any reason. Thus, statement 1 is correct.
PMJJBY guidelines specify an entry age band of 18-50 years with annual renewal up to age 55.
2
Evaluate Statement 2 regarding the nature of risk coverage.
PMJJBY provides life insurance coverage for death due to ANY reason. Accidental death and disability coverage is provided under a separate scheme, the Pradhan Mantri Suraksha Bima Yojana (PMSBY). Thus, statement 2 is incorrect.
Confusing PMJJBY (life insurance covering all causes of death) with PMSBY (accidental death and disability insurance) is a common misconception.
3
Evaluate Statement 3 regarding the administration and implementing agency.
PMJJBY is offered/administered through LIC and other willing life insurance companies that tie up with participating banks to auto-debit premiums. Thus, statement 3 is correct.
Institutional framework requires insurance providers to partner with financial institutions for enrolment and direct premium processing.

Anahtar Kavram

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) features, target age group, and differentiation from PMSBY
Soru 213Soru →

Consider the following statements regarding price indices and liquidity management tools in India:

1. Food and beverages carry a significantly higher weightage in the Consumer Price Index (Combined) basket than food items carry in the Wholesale Price Index basket.
2. The Wholesale Price Index tracks price movements of both physical commodities and commercial services, whereas the Consumer Price Index covers only physical commodities.
3. Raising the Cash Reserve Ratio (CRR) by the Reserve Bank of India increases commercial banks' lending capacity, thereby expanding market liquidity.

Which of the statements given above is/are correct?

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Cevap: 1 only

Cevap

Statement 1 alone is correct. Food items carry a higher weight in CPI than in WPI; WPI does not cover services; and raising CRR reduces market liquidity.
The statement specifying '1 only' is correct. Food items carry a weight of approximately 45.86% in CPI (Combined) compared to around 24.38% in WPI, making Statement 1 true. Statement 2 is incorrect because services are absent in WPI and present in CPI. Statement 3 is incorrect because raising the CRR forces commercial banks to park more reserves with the RBI, thereby reducing bank lending capability and draining money supply from the market.

Adım Adım Çözüm

1
Analyze Statement 1 regarding food weights in CPI vs WPI.
In India's CPI (Combined), the weight of the 'Food and Beverages' group is 45.86%. In WPI (base year 2011-12), primary food articles carry a weight of 15.26% and manufactured food products carry 9.12% (totaling 24.38%). Thus, food weightage is much higher in CPI.
Consumer baskets reflect household expenditure where food forms a major portion, whereas wholesale baskets reflect producer/merchant commodity trade.
2
Analyze Statement 2 regarding sector coverage in WPI vs CPI.
WPI measures wholesale transactions of physical goods only (Primary Articles, Fuel & Power, Manufactured Products). CPI covers retail goods as well as services (such as housing, medical care, education, and transport).
WPI does not include the service sector in India.
3
Analyze Statement 3 regarding the monetary policy impact of CRR on liquidity.
Cash Reserve Ratio (CRR) is the percentage of Net Demand and Time Liabilities (NDTL) that commercial banks must maintain as cash reserves with the RBI. Increasing CRR locks up more money with the central bank, lowering the loanable funds of banks and reducing overall market liquidity.
Higher CRR is a contractionary monetary policy measure used to curb demand-pull inflation by draining excess liquidity.

Anahtar Kavram

Differences in CPI vs WPI Basket Composition & CRR Monetary Transmission Mechanism
Soru 214Soru →

In national income accounting, evaluating household purchasing power requires a systematic transformation of macroeconomic aggregates. Which of the following represents the correct sequential order of accounting adjustments required to derive Personal Disposable Income (PDIPDI) starting from Gross Domestic Product at Market Prices (GDPMPGDP_{MP})?

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Cevap

The correct sequence of operations is: Add NFIA to GDP_MP to get GNP_MP → Deduct Depreciation to get NNP_MP → Deduct Net Indirect Taxes to get NNP_FC (National Income) → Adjust for Corporate Taxes, Undistributed Profits, and Transfer Payments to get Personal Income → Deduct Personal Taxes to get Personal Disposable Income.
The sequence follows the standard macroeconomic identity adjustments: starting from GDPMPGDP_{MP}, adding NFIANFIA yields GNPMPGNP_{MP}, subtracting depreciation gives NNPMPNNP_{MP}, subtracting net indirect taxes yields NNPFCNNP_{FC} (National Income), adjusting for corporate taxes, undistributed profits, and transfers yields Personal Income (PIPI), and finally deducting direct personal taxes yields Personal Disposable Income (PDIPDI).

Adım Adım Çözüm

1
Transform Domestic Product to National Product at Market Price
GNPMP=GDPMP+NFIAGNP_{MP} = GDP_{MP} + NFIA
Net Factor Income from Abroad converts domestic output to income accruing to residents.
2
Convert Gross Aggregate to Net Aggregate
NNPMP=GNPMP−DepreciationNNP_{MP} = GNP_{MP} - \text{Depreciation}
Deducting depreciation accounts for capital consumption during production.
3
Convert Market Price to Factor Cost
NNPFC=NNPMP−NITNNP_{FC} = NNP_{MP} - NIT
Net Indirect Taxes (Indirect Taxes minus Subsidies) are deducted to find factor income payments.
4
Derive Personal Income from National Income
PI=NNPFC−Corporate Taxes−Undistributed Profits+Transfer PaymentsPI = NNP_{FC} - \text{Corporate Taxes} - \text{Undistributed Profits} + \text{Transfer Payments}
Accounts for factor income earned but retained by firms, and non-factor income received by households.
5
Derive Personal Disposable Income from Personal Income
PDI=PI−Personal Direct Taxes−Non-Tax PaymentsPDI = PI - \text{Personal Direct Taxes} - \text{Non-Tax Payments}
Measures final income available to households for spending or saving after direct taxes.

Anahtar Kavram

National Income Identities and Derivation Sequence
Soru 215Soru →

In the national income accounting system adopted by India in 2015, the relationship between Gross Value Added (GVA) at basic prices and Gross Domestic Product (GDP) at market prices incorporates specific tax and subsidy adjustments. Evaluate the following statements regarding these adjustments:

Statement I: GVA at basic prices includes production taxes and excludes production subsidies.
Statement II: GDP at market prices is derived by adding net product taxes (product taxes minus product subsidies) to GVA at basic prices.
Statement III: Land revenue and stamp duty are classified as product taxes in India's national accounting system.

Which of the statements given above are correct?

Cevabı ve açıklamayı göster

Cevap: Statement I and Statement II only

Cevap

Statement I and Statement II only are correct.
GVA at basic prices reflects output value inclusive of production taxes (such as land revenue, stamp duty, and professional tax) and exclusive of production subsidies. To obtain GDP at market prices, net product taxes (product taxes like GST minus product subsidies like food/fertilizer subsidies) are added to GVA at basic prices. Because land revenue and stamp duty are paid regardless of volume produced, they are production taxes, making the statement identifying them as product taxes incorrect.

Adım Adım Çözüm

1
Evaluate Statement I regarding the conceptual definition of GVA at basic prices.
GVA at basic prices is defined as GVA at factor cost plus production taxes minus production subsidies. Thus, Statement I is correct.
Basic price represents the amount receivable by the producer from the purchaser per unit of a good or service, inclusive of production taxes but exclusive of production subsidies.
2
Evaluate Statement II regarding the conversion of GVA at basic prices to GDP at market prices.
GDP at market prices is derived as GVA at basic prices plus net product taxes (product taxes minus product subsidies). Thus, Statement II is correct.
Product taxes (such as GST or excise duty) depend directly on the quantity of output sold and convert basic price valuation to market price valuation.
3
Evaluate Statement III regarding the taxonomic classification of land revenue and stamp duty.
Land revenue, stamp duty, and registration fees are levied irrespective of output volume, making them production taxes rather than product taxes. Thus, Statement III is incorrect.
Production taxes are paid relationally to production factors or ownership, regardless of actual quantity produced.

Anahtar Kavram

Distinction between Production Taxes/Subsidies and Product Taxes/Subsidies in National Income Accounting
Tahmini Süre:1m 15s
Soru 216Soru →

Regarding the Atal Pension Yojana (APY), a flagship pension and social security scheme for unorganized sector workers in India, which of the following statements are correct?

Geçerli olan tümünü seçin

Cevabı ve açıklamayı göster

Cevap: It provides a guaranteed minimum monthly pension ranging from ₹1,000 to ₹5,000 to subscribers upon attaining the age of 60 years, depending on their contribution.; The scheme is open to all Indian citizens in the unorganized sector who are between 18 and 40 years of age.

Cevap

The correct statements are that Atal Pension Yojana provides a guaranteed minimum monthly pension ranging from ₹1,000 to ₹5,000 upon reaching 60 years of age, and that the scheme is open to Indian citizens in the unorganized sector aged between 18 and 40 years.
The Atal Pension Yojana (APY) guarantees a fixed monthly pension tier between ₹1,000 and ₹5,000 for unorganized workers upon reaching 60 years of age. Eligible subscribers must enter between 18 and 40 years of age.

Adım Adım Çözüm

1
Evaluate the pension benefits structure of Atal Pension Yojana
Confirm that subscribers receive a guaranteed monthly pension of ₹1,000 to ₹5,000 after age 60 based on their age of joining and chosen contribution tier.
This is the core financial assistance guarantee under the APY scheme.
2
Evaluate the age eligibility criteria for subscribers
Verify that entry age is strictly 18 to 40 years, ensuring a minimum contribution period of 20 years before turning 60.
The APY framework requires subscriber contributions up to 60 years of age.
3
Identify the nodal regulatory authority and exclusion criteria
Identify PFRDA as the administering body (not IRDAI) and note that income taxpayers are ineligible under current regulations.
Administrative oversight lies under the NPS architecture managed by PFRDA, and social welfare targeting explicitly excludes income tax payers.

Anahtar Kavram

Atal Pension Yojana (APY) eligibility rules, pension slab structure, regulatory oversight by PFRDA, and taxpayer exclusion norms.
Soru 217Soru →

Regarding price indices (Consumer Price Index and Wholesale Price Index) and monetary control mechanisms in India, which of the following statements are correct?

Geçerli olan tümünü seçin

Cevabı ve açıklamayı göster

Cevap: CPI Combined incorporates service sectors such as housing, education, and healthcare, whereas WPI measures prices of physical goods only.; CPI Combined is compiled and published by the National Statistical Office (NSO), while WPI is released by the Office of the Economic Adviser (OEA).

Cevap

The correct statements are that CPI Combined includes service sectors (like housing, health, and education) whereas WPI covers only physical goods, and that CPI Combined is published by the National Statistical Office (NSO) while WPI is published by the Office of the Economic Adviser (OEA).
The correct statements accurately identify that CPI Combined includes service sectors (e.g., housing, education, medical care) whereas WPI excludes services, and that CPI Combined is published by the NSO (Ministry of Statistics and Programme Implementation) while WPI is released by the Office of the Economic Adviser (Ministry of Commerce and Industry).

Adım Adım Çözüm

1
Analyze commodity basket coverage and service inclusion for CPI versus WPI.
CPI measures retail price changes including services like housing, medical care, and education, whereas WPI measures wholesale price changes of physical goods only (excluding services). Thus, the statement regarding service inclusion is correct.
Retail consumption reflects household expenditure on both goods and services, while wholesale markets trade physical commodities.
2
Evaluate the weightage of food items in CPI Combined versus WPI baskets.
CPI Combined assigns approximately 45.86% weight to Food and Beverages, whereas WPI assigns a total food weight of roughly 24.38%. Thus, claiming WPI has a higher food weightage is incorrect.
Retail inflation metrics prioritize household consumer baskets where food constitutes a major expenditure portion.
3
Assess the effect of Cash Reserve Ratio (CRR) adjustments on liquidity.
Raising CRR locks a larger share of bank deposits with the RBI, reducing commercial bank lending capacity and absorbing market liquidity. Thus, the statement claiming CRR increases lending capacity is incorrect.
CRR is a quantitative monetary tool used to contract money supply during inflationary periods.
4
Verify the publishing authorities for CPI Combined and WPI.
CPI Combined is published by NSO (MoSPI), while WPI is published by OEA (Ministry of Commerce and Industry). Thus, the statement regarding publishing agencies is correct.
Different administrative bodies compile retail and wholesale price series based on their mandates.

Anahtar Kavram

Structural differences between CPI Combined and WPI indices in India (coverage, food weights, publishing agencies) and monetary liquidity management via CRR.
Tahmini Süre:1m 15s
Soru 218Soru →

Consider the following statements regarding the 'e-SHRAM Portal', a major social security initiative for unorganised workers in India:

1. It aims to construct a centralized National Database of Unorganised Workers (NDUW) seeded with Aadhaar.
2. Unorganised workers within the age group of 16 to 59 years are eligible to register on the portal.
3. Upon successful registration, a worker receives a unique 12-digit Universal Account Number (UAN) that is valid nationwide for life.

Which of the statements given above are correct?

Cevabı ve açıklamayı göster

Cevap: 1, 2 and 3

Cevap

Statements 1, 2, and 3 are all correct.
All three statements are correct. The e-SHRAM portal created India's first national database for unorganised workers seeded with Aadhaar. It accepts registrations for unorganised workers aged 16 to 59 years and issues a unique 12-digit Universal Account Number (UAN) to simplify delivery of social security schemes nationwide.

Adım Adım Çözüm

1
Evaluate Statement 1 regarding the objective of the portal.
Statement 1 is correct. The Ministry of Labour and Employment launched e-SHRAM to create a comprehensive Aadhaar-seeded National Database of Unorganised Workers (NDUW) to deliver social security benefits.
Establishing a centralized digital database is essential for identifying unorganized sector workers.
2
Evaluate Statement 2 regarding target beneficiary age criteria.
Statement 2 is correct. Any unorganized worker aged between 16 and 59 years who is not a member of EPFO/ESIC and not an income tax payee is eligible to register.
The 16–59 age bracket defines the active unorganized workforce demographic targeted by the scheme.
3
Evaluate Statement 3 regarding the digital identifier issued to workers.
Statement 3 is correct. Registered workers receive an e-SHRAM card bearing a 12-digit Universal Account Number (UAN), which is portable across the country for life.
The UAN ensures seamless portability of social security welfare benefits regardless of migrant status.

Anahtar Kavram

e-SHRAM Portal and Digital Architecture for Social Security of Unorganised Workers
Tahmini Süre:1m 15s
Soru 219Soru →

Consider the following statements regarding the GDP Deflator and the Consumer Price Index (CPI) in national income accounting:

I. The GDP Deflator reflects the prices of all domestically produced final goods and services, whereas the CPI reflects the prices of a representative basket of goods and services consumed by households.
II. Prices of imported consumer goods directly affect the GDP Deflator but have no impact on the CPI.
III. The weights of items in the GDP Deflator automatically adjust with changes in the composition of national output, whereas the CPI basket weights remain fixed until a base year revision occurs.

Which of the statements given above is/are correct?

Cevabı ve açıklamayı göster

Cevap: I and III only

Cevap

Statements I and III only are correct.
The correct option identifies that Statements I and III are true while Statement II is false. The GDP Deflator measures price changes across all goods and services produced within national boundaries, and its weights change dynamically as the output composition evolves. In contrast, imported goods are completely excluded from GDP and its deflator, but affect the CPI if consumed by households.

Adım Adım Çözüm

1
Analyze Statement I regarding scope of coverage
Statement I is correct. The GDP Deflator encompasses all domestically produced goods and services included in GDP. The CPI covers a specific basket of goods and services purchased by typical urban and rural households.
Scope of coverage distinguishes production-based price deflators from consumption-based price indices.
2
Analyze Statement II regarding treatment of imported goods
Statement II is incorrect. Since GDP measures only domestic production, imported goods are excluded from GDP and thus have no direct effect on the GDP Deflator. Conversely, imported consumer goods (e.g., imported edible oil or electronics) form part of the household consumption basket and affect the CPI.
GDP Deflator measures domestic output prices, while CPI measures consumer expenditure prices regardless of origin.
3
Analyze Statement III regarding weighting mechanism
Statement III is correct. The GDP Deflator uses current-period quantities as weights (Paasche index concept), allowing weights to automatically shift with current production patterns. CPI uses fixed base-year quantity weights until an official rebasing occurs.
Difference in weighting formula between implicit price deflators and fixed-basket consumer indices.

Anahtar Kavram

Comparison of GDP Deflator and Consumer Price Index (CPI) in National Income Deflating
Soru 220Soru →

Match the national income accounting terms and development indicators in List-I with their correct conceptual definitions in List-II:

Soldaki öğeye tıklayın, sonra eşleşen sağdaki öğeye tıklayın

Öğeler

Gross Value Added (GVAGVA) at Basic Prices
Net National Product (NNPNNP) at Factor Cost
Global Multidimensional Poverty Index (MPIMPI)
Planetary pressures-adjusted Human Development Index (PHDIPHDI)

Eşleşmeler

Cevabı ve açıklamayı göster

Cevap

Gross Value Added at Basic Prices matches with Gross Value Added at factor cost plus net production taxes. Net National Product at Factor Cost matches with the total factor income generated by normal residents of a nation (National Income). Global Multidimensional Poverty Index matches with an index capturing acute micro-level deprivations across health, education, and living standards. Planetary pressures-adjusted Human Development Index matches with an indicator adjusting HDI to reflect environmental impact based on per capita carbon dioxide emissions and material footprint.
Each aggregate and indicator correctly pairs with its exact mathematical or conceptual definition: Gross Value Added at basic prices equals GVA at factor cost plus net production taxes; Net National Product at factor cost equals National Income; the Global Multidimensional Poverty Index measures multi-dimensional deprivations across health, education, and living standard dimensions; and the Planetary pressures-adjusted Human Development Index factors in per capita carbon dioxide emissions and material footprint.

Adım Adım Çözüm

1
Analyze Gross Value Added at Basic Prices
Basic price includes production taxes (e.g., land revenue, stamp duty) minus production subsidies (e.g., railway subsidies), but excludes product taxes/subsidies.
Differentiates GVA at basic prices from GVA at factor cost and GDP at market prices.
2
Evaluate Net National Product at Factor Cost
NNP at factor cost represents the total income earned by factors of production (rent, wages, interest, profit) owned by normal residents.
This aggregate is formally defined as National Income.
3
Identify Multidimensional Poverty Index definition
MPI measures non-monetary deprivations across 10 indicators spanning health, education, and standard of living.
Provides a comprehensive assessment of poverty beyond income levels.
4
Examine Planetary pressures-adjusted HDI
PHDI scales HDI by multiplying it by an adjustment factor derived from carbon emissions and material footprint per capita.
Reflects human development while accounting for environmental sustainability.

Anahtar Kavram

National Income Aggregates and Human Development Metrics
ÖncekiSayfa 11 / 13Sonraki
Indian Economy and Social Development Alıştırma Soruları — State PSC Exam — Sayfa 11 | Examkin