Explanation: Agriculture. Infrastructure is defined as the basic physical systems of a business, region, or nation and often involves the production of public goods or production processes. Examples – transportation systems, communication networks, sewage, water, and school systems etc.

Explanation: 46% and 54%. During the 1950-60 and 1960-70, the average annual growth rate of steel production exceeded 8%. During 1970-80, the growth rate in steel production came down to 5.7% per annum and increased to 6.65% per annum during 1990-2000. During 2000-01, the shares of the public sector and the private sector in the production of steel was 32% and 68% respectively.

Explanation: Circular flow of income – A model of the economy that shows how money flows through the different sectors of the economy. A simple economy assumes that there exist only two sectors, i.e., Households and Firms.

Explanation: positive; 0.6 Percent. India’s Industrial reforms of 1991 : Wide-scale reduction in the scope of industrial licensing, simplification of procedural rules and regulations, reduction of areas reserved exclusively for the public sector, disinvestment of equity of selected public sector undertakings, enhancing the limits of foreign equity participation in domestic industrial undertakings, liberalisation of trade and exchange rate policies, rationalisation and reduction of customs and excise duties and personal and corporate income-tax etc.

Explanation: Mutual fund products made by combining debt and equity funds come under the Tertiary sector of Economy. Tertiary sectors itself do not produce goods but they are an aid or a support to the primary and secondary sectors.

Explanation: Public goods – A commodity or service that is provided without profit to all members of a society, either by the government or by a private individual or an organization. National defense, effective policing, and public education are all examples of public goods. Private good – A product that must be purchased to be consumed, and consumption by one individual prevents another individual from consuming it. Examples – Houses, cars, clothing, food, movie tickets etc.

Explanation: Final Goods – An item that is meant for final use and will not pass through any more stages of production or transformations. Types of final goods : consumption goods and capital goods. Examples : television, ready-to-eat foods, medicines. Intermediate goods – Raw materials that a firm buys from another firm which are completely used up in the process of production. Examples: wheat, soil, crude oil, steel etc.

Explanation: 62.8%. Distribution of workforce in different sectors, as per 2011-12 data : Primary sector – 48.9 percent (Men – 43.6 percent), Secondary Sector :- 24.3 percent (Men – 25.9 percent, women – 20 percent), Tertiary/service Sector – 26.8 percent (Men – 30.5 percent).

Explanation: Consumption goods – Directly used for the satisfaction of human wants and not used later to produce another consumer good. Example – Food, Beverages, Clothing, Vehicles. Capital goods – Assets used by businesses in the course of producing products and services for consumers. Example – Buildings, Machinery, Vehicles.

Explanation: Durable goods (Consumer durables) : Those products that are used repeatedly over a period of time. The life of these products is high and the price paid to possess these products are also high. Example – Refrigerators, air conditioners, tools, computers, televisions, jewellery, home and office furnishings. Non – Durable goods : These goods have a shelf life of less than three years and many can be recycled. Example – Milk, vegetables, meat, fruit, paperboard, magazines.

Explanation: Hotels and restaurants. Sectors of Indian Economy: The primary sector depends on natural resources like minerals, land, and water to carry out essential activities like agriculture, mining, and forestry. Secondary sector – The sector of the economy that revolves around manufacturing. Examples – Construction, fabrication, assembly, distillation, and purification. Tertiary Sector (service sector) – Tertiary Sector, also known as the service sector, is responsible for providing services to both the primary and secondary sector. Examples – Trade, transport, communication, banking, education, health, tourism, insurance, etc.

Explanation: Under declared Income. Parallel Economy – The functioning of an unsanctioned sector in the economy whose objectives run in opposite to the objectives of the official, sanctioned or legitimate sector. Types of Economic systems : Capitalist, Socialist and Mixed.

Explanation: Only i. Circular Flow in a Two-sector Economy (with Financial Market) – households and firms. Three-sector Economy – Between Households and Government, Between Firms and Government. Four-sector Economy – Households, Firms, Government, Foreign Sector.

Explanation: 1980. Industrial Policy 1980 : This Policy focused on the promotion of economic federation and restoration of the Monopolies and Restrictive Trade Practices (MRTP) Act. Some other Industrial policies (IPs): IP, 1948 – It ushered in a mixed economic model in the country. IP, 1956 – Three schedules were laid out for the classification of industries. IP, 1977 – The Policy’s main emphasis had been the propagation of cottage and small industries. IP, 1991 – Foreign Direct investment allowed, Amendment of the Monopolies and Restrictive Trade Practices (MRTP) Act. The main goals of the New Industrial Policy (1991) were: L – Liberalisation, P – Privatisation, G – Globalisation.

Explanation: Capital goods – Physical assets which a company uses to produce goods and services for consumers. Inferior goods : An item that is often a substitute product whose demand drops when people’s income increases. Example – instant noodles, frozen dinners, and canned goods.

Explanation: The 1956 policy divided the industries into 3 categories based on management. Schedule A Industries: It consisted of 17 industrial areas which were under the Central Government. Schedule B Industries : It consisted of 12 industries that were left to the state government to follow up with the private sector that includes compulsory licensing provisions. Schedule C Industries: It consisted of those industries which were left out of Schedule A and B and were with the private sectors and subject to licensing and regulation under the IDR Act.

Explanation: All of (i), (ii) and (iii). Flow variable – A quantified variable that is measured over a specified period of time. It is time bounded and expressed as per unit of time. Examples – Income, expenditure, depreciation, production, consumption, exports, rent, profit, interest. Stock variable – A quantity which is measurable at a particular point of time. Examples – Capital, wealth, foreign debts, loan.

Explanation: Public sector. Hindustan Aeronautics Limited (HAL) is an Indian ‘Navratna’ aerospace and defence company, headquartered in Bangalore. Co-operative sector industries are operated and owned by the suppliers or producers of raw materials, workers or both. Foreign sector is the part of a country’s economy that is concerned with external trade (imports and exports) and capital flows (inward and outward).

Explanation: Push factors. These are the factors that drive people away from their place of origin, such as war, political instability, or economic hardship. Pull factors are the factors that attract people to a new place, such as better economic opportunities, better education, or a more favourable climate.

Explanation: Financial Year. Assessment year – The year in which the income is assessed to tax and all taxes are paid and tax returns filed.

Explanation: Investment – It refers to the allocation of money or resources with the expectation of generating a return or profit over time. Disinvestment is when governments or organisations sell or liquidate assets or subsidiaries.

Explanation: Maruti Udyog Limited. The Joint Sector Enterprise is an industry wherein private entrepreneurs and a Government jointly participate in ownership, control, and management. Economic activities, such as the production and distribution of goods and services, take place broadly in 4 sectors, namely public sector, private sector, joint sector, and cooperative sector. Examples of some joint sector industries – Oil India Limited, Cochin Refineries, Tamil Nadu Fluorine & Allied Chemicals Limited.

Explanation: Gilt-edged market is known as the government securities market. The Industrial Securities Market is divided into two categories – Primary Market ( New company shares issued (IPO) and Secondary Market (Stock Exchange). The secondary market is the market for the sale and purchase of previously issued securities.

Explanation: Both I and II. Socialist Economy decides on the products and services manufactured in line with society’s requirements. It also have complete control over the factors of production. The main motive for producing goods and services in this economy is social welfare and not profit. Example – China and Cuba. In India -Mix Economy.

Explanation: Both I and II. Macroeconomics looks at the economy as a whole and studies aggregate phenomena such as overall economic output (eg. GDP), unemployment rates, inflation, and national income.

Explanation: Capitalism refers to an economic system where private businesses can have ownership of capital goods. Functionalism is defined as the perspective that society is constructed of several interconnected parts designed to meet biological and social needs. Feudalism is a type of social and political system in which landholders provide land and protection to people in exchange for their loyalty and service.

Explanation: Public sector (completely owned and operated by the government of the country) promotes social welfare by providing basic amenities to citizens of the country.

Explanation: West Bengal and Kerala. The Kumarappan committee (1949) was appointed to study and recommend comprehensive land reform measures for independent India. Land Reforms consisted of four elements: The Abolition of the Intermediaries, Tenancy Reforms, Fixing Ceilings on Landholdings and Consolidation of Landholdings.

Explanation: Warehousing. Auxiliaries to trade are essential services and functions that assist the business which include transport, banking, warehousing, insurance, advertising etc. Five distinct examples of economic activities are producing, supplying, buying, selling, and the consumption of goods and services.

Explanation: Iron and Steel. Industrial Policy Resolution (1948) declared the Indian economy as a Mixed Economy. Four categories: The exclusive monopoly of central government (arms and ammunitions, production of atomic energy, and management of railways), New undertakings were undertaken only by the state (coal, iron and steel, aircraft manufacturing, shipbuilding, telegraph, telephone, etc.), Industries to be regulated by the government (Industries of basic importance), Open to private enterprises, individuals, and cooperatives (remaining).

Explanation: Brain Drain is the movement of highly skilled and educated people to a country where they can work in better conditions and earn more money. Economic carrying capacity takes the form of maximum global economic welfare derivable from the sustainable throughput flows of the ecosphere. Demographic transition is a long-term trend of declining birth and death rates, resulting in substantive change in the age distribution of a population.

Explanation: Employees Provident Fund (EPF) is a retirement benefits scheme provided by the Employees’ Provident Fund Organization (EPFO). The contribution of the employer to the EPF is 12% of the salary of the employee on a monthly basis. The contribution of the employee is 12% of his salary on a monthly basis (contribution to EPF is 3.67% of the salary and contribution to EPS is 8.33% of the salary).

Explanation: Public transport is not important for individual health. Living a healthy lifestyle can help prevent chronic diseases and long-term illnesses.

Explanation: Positive economics is objective and based on statistics, with descriptive, specific, and measurable statements. There are no instances of approval-disapproval in it. Examples – the inflation rate, the unemployment rate, housing market statistics, and consumer spending.

Explanation: Environmental Economics. Development economics deals with the economic aspects of the development process in low-income countries. Public economics is the study of government policy through the lens of economic efficiency and equity.

Explanation: Remittances. In remittance, money can be transferred from one country to another country by migrants to their families and communities.

Explanation: Churning poor are those people who regularly move in or out of poverty. When they get employed or their harvest is good they are above the poverty line but when they are unemployed or in bad climatic years they are below the poverty line. Example seasonal workers or small farmers .

Explanation: Unplanned decumulation of inventory refers to the unexpected decrease in the stock of goods due to the rise in sales. Unplanned accumulation of inventory refers to the unexpected increase in the stock of goods due to the fall in sales. Inventory is the stock of unsold finished goods, or semi-finished goods, or raw materials which a firm carries from one year to the next.

Explanation: Secondary.

Explanation: Macroeconomics is the branch of economics that studies the behaviour and performance of an economy as a whole. It focuses on the aggregate changes in the economy such as unemployment, growth rate, gross domestic product, and inflation.

Explanation: Microeconomics is a branch of economics that studies the behaviour of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms. The concepts of wages, rent, interest and profit are studied under Microeconomics.

Explanation: England. John Maynard Keynes (Father of Macroeconomics) Studied how economies, markets and other systems that operate on a large scale behave. Keynesian economics argues that demand drives supply and that healthy economies spend or invest more than they save.

Explanation: Market prices are influenced by demand and supply interactions, with equilibrium price balancing factors. Changes occur when demand or supply shifts. The five factors that affect the market equilibrium are excess demand, excess supply, changes in demand and supply, competitive factors, and strategic factors.

Explanation: Fall. Inflation and Interest rate, both have an inverse relationship. Increased interest rates: It will slow down economic growth, reduce disposable income, bring appreciation to exchange rate, lead to more savings, give rise to unemployment. Decreased interest rates: It will boost economic growth, bring depreciation to the exchange rate, cost of borrowing will become cheaper, promote more spending and the situation of unemployment decreases.

Explanation: Inversely related to the price of the good. The law of demand and supply given by Adam smith. Law of demand: An economic principle explaining the negative correlation between the price of a good or service and its demand. If all other factors remain the same, when the price of a good or service increases, the quantity of demand decreases, and vice versa.

Explanation: The aggregate demand /aggregate supply model is a model that shows what determines total supply or total demand for the economy and how total demand and total supply interact at the macroeconomic level. Aggregate supply is the total quantity of output firms will produce and sell-in other words, the real GDP. Aggregate demand is the amount of total spending on domestic goods and services in an economy. Equilibrium point is E and equilibrium level of income is OY1

Explanation: Inelastic. Price Elasticity of Demand is a measurement of the change in the consumption of a product in relation to a change in its price. If price elasticity is greater than 1 then the good is elastic, if less than 1 then it is inelastic, if the price elasticity is infinite then a good is perfectly elastic, and If the good’s price elasticity is 0 then it is perfectly inelastic.

Explanation: I, II and III. When both curves shift rightward, the equilibrium quantity increases, but the equilibrium price may increase, decrease or remain unchanged. When Both curves shift towards the left, the equilibrium quantity decreases but the equilibrium price may increase, decrease or remain the same. When demand curve shifts right and supply curve to the left, the equilibrium price increases but the equilibrium quantity may increase, decrease or remain the same. All depending on the magnitude of shift in the two curves.

Explanation: Both I and II. Effective demand principle : Under such circumstances, aggregate output is determined solely by the level of aggregate demand. An increase (decrease) in autonomous spending causes aggregate output of final goods to increase (decrease) by a larger amount through the multiplier process.

Explanation: Precautionary . The amount of money required for current transactions of companies and individuals is known as transaction demand for money. Speculative demand arises from the perception that money is optimally part of a portfolio of assets being held as investments.