Indian Economy MCQs

Notes:
The Kandla Special Economic Zone (KASEZ) was established in the year 1965 as the first Export Processing Zone in India. It is also the first special economic zone in India and in Asia. It is located in Kutch District of Gujarat.

Notes:
The Commission for Agricultural Costs and Prices (CACP) is a body set up by the Government of India to recommend the minimum support prices (MSPs) for various agricultural commodities. The CACP takes into account a number of factors, including the cost of production, changes in input prices, and demand and supply conditions in the market, in order to arrive at its recommendations for MSPs. These recommendations are then used by the government to set the MSPs for various crops.

Notes:
The Tendulkar Committee, established in 2005, adopted the “Cost of Living” approach for measuring poverty in India. This method considers the consumption patterns of the poor and adjusts poverty lines based on regional price variations. The committee aimed to provide a more accurate reflection of poverty by incorporating essential goods and services into the poverty measurement framework. This approach led to a revised poverty line that recognized the changing economic conditions and living standards in India.

Notes:
Progressive taxation is based on the principle that those with a higher ability to pay should contribute a larger percentage of their income. It emphasizes administrative convenience and acts as an in-built stabilizer by reducing income inequality. However, it can discourage the will to work and save, as higher earners may feel penalized by increased tax rates. Thus, “will to work and save” does not align with the principles of progressive taxation.

Notes:
Qualitative or selective methods of credit control refers to those methods which limit the nature or variety of money supply rather than its quantity. Such methods include regulation of margin requirement, credit rationing, regulation of consumer credit and direct action.

Notes:
The Indian government is the biggest borrower in India. This is due to the government’s extensive expenditure requirements, fiscal deficit, development programs, debt servicing, infrastructure projects, subsidies, welfare schemes, and revenue shortfalls.

Notes:
John Maynard Keynes proposed the “Bancor” as a world currency during the Bretton Woods Conference in 1944. The Bancor was intended to facilitate international trade and stabilize exchange rates. Keynes envisioned it as a unit of account to address imbalances in global trade. Although the Bancor was not adopted, the conference led to the establishment of the International Monetary Fund (IMF) and the World Bank, shaping the post-World War II economic order.

Notes:
Economic planning is listed in the Concurrent List, or List III, of the Seventh Schedule of the Constitution of India. The Concurrent List is a list of 52 items that both the central and state governments can make laws on. The Concurrent List includes topics such as criminal law, marriage and divorce, bankruptcy, and economic and social planning.

Notes:
The Seed Crop Insurance (PSSCI) scheme was introduced in India in 2000. The scheme was a pilot program that provided financial security and income stability to seed growers in the event of crop failure. The scheme was introduced in 11 states.