Economic and Social Development

The computation of poverty in terms of Monthly Per Capita Consumption Expenditure (MPCE) based on the Mixed Reference Period was recommended by the

[amp_mcq option1=”Lakdawala Committee” option2=”Tendulkar Committee” option3=”Dandekar Committee” option4=”Alagh Committee” correct=”option2″]

The computation of poverty in terms of Monthly Per Capita Consumption Expenditure (MPCE) based on the Mixed Reference Period (MRP) was a key recommendation of the Tendulkar Committee (Expert Group to Review the Methodology for Estimation of Poverty).

– The Tendulkar Committee, constituted in 2005 and submitting its report in 2009, recommended a shift from using calorie norms for defining the poverty line.
– It proposed using MPCE based on the Mixed Reference Period (MRP) as the basis for poverty estimation. MRP refers to the period over which household consumption data is collected for the National Sample Survey Office (NSSO) surveys. Specifically, it uses a 365-day reference period for five low-frequency items (clothing, footwear, durables, education, and health) and a 30-day reference period for the remaining items.

– The Lakdawala Committee (Expert Group on Estimation of Proportion and Number of Poor, 1993) relied on consumption expenditure and state-specific price indices for poverty estimation, but not specifically MPCE based on MRP.
– The Dandekar Committee (1971) and Alagh Committee (Task Force on Projections of Minimum Needs and Effective Consumption Demand, 1979) were earlier groups that largely based their poverty line estimations on calorie intake norms.
– The Tendulkar Committee methodology was widely adopted by the Government of India for official poverty estimations for a period.

Which of the following factors signify monopolistic competition ?
Select the correct answer using the code given below :

• 1. Differentiated products
• 2. Large number of buyers and sellers
• 3. Barriers to entry
• 4. Homogeneous products

[amp_mcq option1=”1 and 2 only” option2=”1, 2 and 3 only” option3=”3 and 4 only” option4=”2 and 4 only” correct=”option1″]

The factors signifying monopolistic competition are 1 and 2 only.

Monopolistic competition is a market structure characterized by:
1. Differentiated products: Firms sell products that are close substitutes but not identical (e.g., through branding, quality, features, location). This gives firms some degree of market power. This factor is correct.
2. Large number of buyers and sellers: There are many firms, each relatively small compared to the overall market, and many buyers. This factor is correct.
3. Barriers to entry: Monopolistic competition is characterized by low barriers to entry and exit, unlike monopolies or oligopolies. Significant barriers to entry would prevent new firms from joining when profits are high. This factor is incorrect.
4. Homogeneous products: Homogeneous products are characteristic of perfect competition (where products are identical), not monopolistic competition. This factor is incorrect.
Thus, only factors 1 and 2 are characteristic of monopolistic competition among the listed options.

Examples of monopolistically competitive markets include restaurants, hairdressers, clothing stores, and consumer electronics. Firms in these markets differentiate their products through branding, advertising, and other non-price strategies.

Which one of the following best describes BRICS ?

[amp_mcq option1=”A group of five nuclear powers” option2=”A group of five industrialized nations” option3=”A group of five major emerging economies” option4=”A group of five potentially strong UN Security Council members from the Global South” correct=”option3″]

Option C is correct because BRICS (Brazil, Russia, India, China, South Africa) is best described as a group of five major emerging economies.

BRICS is an association of developing countries and newly industrialized countries, distinguished by their large, fast-growing economies and significant regional and global influence.

While some BRICS nations are nuclear powers or have aspirations for greater roles in global governance like the UN Security Council, these are not the primary defining characteristics of the group as an economic and political bloc. They represent a significant portion of the world’s population and land area, and are seen as challenging the dominance of traditional developed economies.

Which one of the following statements with regard to the National Rural Employment Guarantee Act, 2005 is correct ?

[amp_mcq option1=”It ensures 175 days of employment to needy persons in rural areas.” option2=”It gives higher wages to women workers.” option3=”People are generally given both skilled and unskilled jobs.” option4=”This is implemented only in rural areas of India.” correct=”option4″]

The National Rural Employment Guarantee Act, 2005 (now MGNREGA) is specifically implemented only in rural areas of India.

The Act guarantees 100 days of *unskilled* manual work in a financial year to every rural household whose adult members volunteer for it. It mandates equal wages for men and women. It does not guarantee skilled jobs or 175 days of employment (though states may add days using their own funds).

The primary objective of MGNREGA is to provide livelihood security in rural areas by creating durable assets and strengthening the livelihood resource base of the poor.

Which one of the following inputs is required in less quantity in case of non-farming activities ?

[amp_mcq option1=”Land” option2=”Labour” option3=”Capital” option4=”Raw material” correct=”option1″]

Compared to farming, which is land-intensive, non-farming activities often require less land quantity.

Non-farming activities in rural areas (like manufacturing, services, trading) can typically be conducted in smaller spaces compared to the extensive land needed for agricultural cultivation.

The requirements for labour, capital, and raw materials vary significantly among different types of non-farming activities and do not have a consistent pattern of being “less” compared to farming. Land, however, is a distinguishing factor in terms of intensity of use between most farming and non-farming activities.

Which one of the following terms denotes the inputs in terms of tools, machines, buildings, raw materials and money in hand required at any stage of production ?

[amp_mcq option1=”Fixed capital” option2=”Working capital” option3=”Physical capital” option4=”Human capital” correct=”option3″]

The term that denotes inputs like tools, machines, buildings, raw materials, and money in hand required at any stage of production is Physical capital.

Physical capital encompasses all man-made, tangible assets used in the production process. This includes both fixed capital (long-lasting assets like buildings, machinery) and working capital (short-term assets like raw materials, cash) necessary for day-to-day operations.

Fixed capital refers specifically to durable assets used over a long period. Working capital refers to short-term assets used up or converted into cash within a year. Human capital represents the skills, knowledge, and experience of the workforce. Physical capital is the overarching term for the physical tools and resources used in production.

Who among the following formulated the concept of poverty as a measurable indicator in the Indian subcontinent ?

[amp_mcq option1=”Dadabhai Naoroji” option2=”Romesh Chandra Dutt” option3=”V.K.R.V. Rao” option4=”M. Ranade” correct=”option1″]

Dadabhai Naoroji was one of the earliest individuals to attempt to estimate poverty in India using a measurable indicator.

He calculated a ‘Poverty Line’ based on the cost of a minimum diet necessary for subsistence, essentially estimating the ‘jail cost of living’ for a basic living standard. This was linked to his ‘Drain of Wealth’ theory, arguing that British rule caused economic impoverishment in India.

While other scholars like Romesh Chandra Dutt also wrote about economic conditions and poverty during the colonial period, Naoroji is specifically recognized for his pioneering work in quantifying poverty using a structured method, making it a measurable indicator.

Who among the following, first mooted the idea of deficit financing ?

[amp_mcq option1=”Adam Smith” option2=”Alfred Marshall” option3=”John Maynard Keynes” option4=”Milton Friedman” correct=”option3″]

John Maynard Keynes is credited with first mooting and popularizing the idea of deficit financing as a tool for economic management, particularly during times of recession.

In his work, notably “The General Theory of Employment, Interest and Money,” Keynes argued that government spending, even financed by deficits, was necessary to stimulate aggregate demand and reduce unemployment during economic downturns.

Deficit financing involves a government spending more than it receives in revenue, covering the difference by borrowing or printing money. While historical instances of governments spending beyond their means existed, Keynes provided a theoretical framework advocating its deliberate use for macroeconomic stabilization.

Which of the following is/are social security scheme(s) ?

• 1. Atal Pension Yojana
• 2. Pradhan Mantri Jeevan Jyoti Bima Yojana
• 3. Pradhan Mantri Suraksha Bima Yojana

Select the correct answer using the code given below :

[amp_mcq option1=”1 only” option2=”2 and 3 only” option3=”1, 2 and 3″ option4=”1 and 3 only” correct=”option3″]

All three schemes listed are social security schemes launched by the Government of India:
1. Atal Pension Yojana (APY): A pension scheme primarily for the unorganized sector, providing income security in old age.
2. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): A life insurance scheme providing coverage against death.
3. Pradhan Mantri Suraksha Bima Yojana (PMSBY): An accidental death and disability insurance scheme.
These schemes aim to provide a safety net to the vulnerable sections of society against risks like old age, death, and disability.

Social security schemes provide financial protection against various life risks such as illness, disability, old age, unemployment, or death.

These three schemes are part of the government’s broader initiative to provide universal access to social security, particularly for the economically weaker sections and unorganized sector workers.

Which one of the following approaches of human development was initially proposed by the International Labour Organisation (ILO) and emphasised on health, education, food, water supply, sanitation and housing ?

[amp_mcq option1=”Welfare approach” option2=”Basic needs approach” option3=”Income approach” option4=”Capability approach” correct=”option2″]

The Basic Needs Approach to human development was initially proposed by the International Labour Organisation (ILO) and emphasised the satisfaction of essential needs like health, education, food, water supply, sanitation, and housing.

This approach emerged in the 1970s as a direct way to address poverty by providing essential goods and services, rather than waiting for economic growth to trickle down.

The Income Approach focuses on Gross National Product (GNP) per capita as a measure of development. The Welfare Approach views people as passive beneficiaries of development policies. The Capability Approach, pioneered by Amartya Sen, focuses on expanding people’s freedom to achieve different functionings and well-being. The Basic Needs Approach is distinct in its focus on a specific set of essential requirements.