Economic and Social Development

Consider the following statements about a scheme launched by the Government of India :
It was launched to provide social security during old age and to protect elderly persons aged 60 years and above against a future fall in their interest income due to uncertain market conditions. The scheme enables old age income security for senior citizens through provision of assured pension/ return linked to the subscription amount based on government guarantee to Life Insurance Corporation of India (LICI).
Identify the scheme.

[amp_mcq option1=”Pradhan Mantri Swasthya Suraksha Yojana” option2=”Pradhan Mantri Vaya Vandana Yojana” option3=”Liveability Index Programme” option4=”Rashtriya Vayoshri Yojana” correct=”option2″]

The correct answer is B.

The description precisely matches the Pradhan Mantri Vaya Vandana Yojana (PMVVY). This is a pension scheme for senior citizens (aged 60 years and above) administered by Life Insurance Corporation of India (LIC). It provides an assured pension based on a guaranteed rate of return on the subscription amount, protecting elderly persons against a future fall in their interest income. The scheme was initially launched in 2017 and has been extended.

Pradhan Mantri Swasthya Suraksha Yojana focuses on health infrastructure. Liveability Index Programme is related to urban development. Rashtriya Vayoshri Yojana provides physical aids to poor senior citizens. Only PMVVY is a pension/income security scheme for senior citizens with guaranteed returns linked to LIC and government backing.

Eight States have achieved more than 99% household electrification prior to the launch of ‘Saubhagya Scheme’. Which one of the following is not among them?

[amp_mcq option1=”Kerala” option2=”Punjab” option3=”Himachal Pradesh” option4=”Madhya Pradesh” correct=”option4″]

The correct answer is D.

The Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya) was launched in September 2017 with the aim of achieving universal household electrification. At the time of its launch, several states had already achieved high levels of household electrification (more than 99%). These states included Andhra Pradesh, Gujarat, Goa, Haryana, Himachal Pradesh, Kerala, Punjab, and Tamil Nadu. Madhya Pradesh, while making progress, had significantly lower household electrification coverage compared to these states prior to the launch of Saubhagya.

Saubhagya focused on providing electricity connections to remaining unelectrified households in rural and urban areas. The scheme significantly boosted electrification rates across India, and eventually, all states reported 100% household electrification by the scheme’s deadline, although challenges remain in ensuring continuous and reliable supply.

Which one of the following cities was not included in the list of smart cities in India?

[amp_mcq option1=”Silvassa” option2=”Jorhat” option3=”Itanagar” option4=”Kavaratti” correct=”option2″]

The correct answer is B) Jorhat.

Jorhat was not included in the list of 100 cities selected under the Government of India’s Smart Cities Mission.

The Smart Cities Mission aimed to develop 100 cities across India to make them citizen-friendly and sustainable. Cities were selected through a competitive process in four rounds. Silvassa (Dadra & Nagar Haveli), Itanagar (Arunachal Pradesh), and Kavaratti (Lakshadweep) were among the cities selected in the final lists.

According to John Maynard Keynes, employment depends upon

[amp_mcq option1=”aggregate demand” option2=”aggregate supply” option3=”effective demand” option4=”rate of interest” correct=”option3″]

According to John Maynard Keynes’s theory of employment (as presented in ‘The General Theory’), the level of employment is determined by the level of effective demand. Effective demand is the point where aggregate demand equals aggregate supply. In the Keynesian framework, unemployment (especially involuntary unemployment) arises when aggregate demand is insufficient to absorb the total potential output corresponding to full employment. Therefore, increasing aggregate demand is the key to increasing employment up to the point of full employment. While aggregate supply is also present, effective demand is the crucial factor determining the *actual* level of employment.

– Keynesian theory focuses on aggregate demand as the primary determinant of employment in the short run.
– Effective demand is the specific level of aggregate demand that determines the level of employment.
– Unemployment arises from a deficiency of effective demand.

– Aggregate demand is the total demand for goods and services in an economy.
– Aggregate supply is the total supply of goods and services in an economy.
– The rate of interest influences investment, which is a component of aggregate demand, but effective demand is the direct determinant of employment in Keynes’s framework.

Which one of the following hypotheses postulates that individual’s consumption in any time period depends upon resources available to the individual, rate of return on his capital and age of the individual?

[amp_mcq option1=”Absolute Income Hypothesis” option2=”Relative Income Hypothesis” option3=”Life Cycle Hypothesis” option4=”Permanent Income Hypothesis” correct=”option3″]

The Life Cycle Hypothesis (LCH), developed by Franco Modigliani, postulates that individuals plan their consumption and saving over their entire lifetime. Consumption in any given period is determined by the resources available over their lifetime, which include current income, wealth (accumulated savings/capital), expected future income, and the rate of return on capital. The individual’s age is crucial because it determines their position in the life cycle (e.g., earning years, retirement years) and thus influences saving and consumption patterns based on their lifetime resources.

– Consumption depends on lifetime resources.
– Factors include current income, wealth, future income expectations, rate of return, and age.
– This is the core idea of the Life Cycle Hypothesis.

– Absolute Income Hypothesis (Keynes): Consumption depends solely on current absolute income.
– Relative Income Hypothesis (Duesenberry): Consumption depends on current income relative to the income of others (demonstration effect) or relative to peak past income (ratchet effect).
– Permanent Income Hypothesis (Friedman): Consumption depends on permanent income, which is the expected average long-term income.

Consider the following statements:

• Inflation in India continued to be moderate during 2017-18.
• There was significant reduction in food inflation, particularly pulses and vegetables during the period.

Which of the statements given above is/are correct?

[amp_mcq option1=”1 only” option2=”2 only” option3=”Both 1 and 2″ option4=”Neither 1 nor 2″ correct=”option3″]

According to the Economic Survey 2017-18 and RBI reports for the period, inflation in India remained moderate, generally staying below the RBI’s target of 4% for much of the year. There was indeed a significant reduction in food inflation during this period compared to previous years, especially for pulses and vegetables, although there were some price spikes in vegetables towards the end of the year. Both statements reflect the general trend observed in the Indian economy during the financial year 2017-18.

– Inflation was generally moderate in India during 2017-18.
– Food inflation, particularly for pulses and vegetables, saw a notable reduction from earlier high levels.

– The Consumer Price Index (CPI) inflation remained relatively low during most of 2017-18.
– This period was marked by stable macroeconomic conditions regarding inflation compared to the preceding few years.

When some goods or productive factors are completely fixed in amount, regardless of price, the supply curve is

[amp_mcq option1=”horizontal” option2=”downward sloping to the right” option3=”vertical” option4=”upward sloping to the right” correct=”option3″]

When the amount of a good or factor is completely fixed regardless of price, the quantity supplied does not change as the price changes. This results in a vertical supply curve.

A supply curve shows the relationship between the price of a good and the quantity supplied at that price. If the quantity supplied is constant irrespective of the price level, the supply curve will be perfectly inelastic.

A vertical supply curve indicates that the quantity supplied remains the same regardless of any change in price. This is characteristic of goods or factors that are fixed in supply, such as unique pieces of art, limited historical artifacts, or factors of production like land in a specific location, at least in the short run. A horizontal supply curve indicates perfectly elastic supply, a downward sloping curve is typically a demand curve, and an upward sloping curve is the usual representation of a supply curve for most goods where quantity supplied increases with price.

Consider the following statements about indifference curves :

• 1. Indifference curves are convex to the origin.
• 2. Higher indifference curve represents higher level of satisfaction.
• 3. Two indifference curves cut each other.

Which of the statements given above is/are correct?

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

Statements 1 and 2 are correct. Statement 3 is incorrect. Therefore, option B is the correct answer.

Indifference curves are graphical representations of consumer preferences, showing combinations of two goods that yield the same level of satisfaction or utility. Key properties include: they are convex to the origin (due to diminishing marginal rate of substitution), higher curves represent higher satisfaction levels, and they do not intersect each other.

The diminishing marginal rate of substitution (MRS) means that as a consumer consumes more of one good and less of another while staying on the same indifference curve, the amount of the second good they are willing to give up for an additional unit of the first good decreases. If two indifference curves intersected, it would imply that a point on one curve and a point on another curve represent the same level of utility (the intersection point), while other points on the higher curve clearly represent a higher level of utility than points on the lower curve, leading to a contradiction and violating the assumption of transitivity in consumer preferences.

Which one of the following statements about the Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) is not correct?

[amp_mcq option1=”It is a placement-linked skill training programme exclusively for rural girls.” option2=”It aims to convert India’s demographic surplus into a demographic dividend.” option3=”The scheme aims to benefit more than 55 million poor rural folk.” option4=”It is a generational poverty alleviation programme.” correct=”option1″]

It is a placement-linked skill training programme exclusively for rural girls.

The Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) is indeed a placement-linked skill training program for rural poor youth. However, it is not exclusively for rural girls; it is open to both male and female rural youth aged 15-35 years (with age relaxation for certain vulnerable groups like women and PwD). Therefore, the statement claiming it is “exclusively for rural girls” is incorrect.

DDU-GKY is part of the National Rural Livelihoods Mission (NRLM), under the Ministry of Rural Development. It focuses on market-led, placement-linked skill training programs to help rural poor youth gain sustainable wage employment. The scheme aims to convert India’s demographic surplus into a demographic dividend by skilling its rural youth workforce. While the target of 55 million poor rural folk mentioned in option C seems exceptionally high for DDU-GKY alone (its initial target was 1 million by 2017, which has been extended), statement A is definitively false based on the eligibility criteria of the scheme.

Which one of the following statements about ‘Niryat Bandhu Scheme’ is correct?

[amp_mcq option1=”It is a scheme for mentoring first generation entrepreneurs.” option2=”It is a scheme for crop protection.” option3=”It is a scheme for the vulnerable section of the society.” option4=”It is a scheme for monitoring rural poor.” correct=”option1″]

The Niryat Bandhu Scheme is a scheme for mentoring first generation entrepreneurs.

The Niryat Bandhu Scheme is an initiative of the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce & Industry. Its objective is to reach out to new and potential exporters and mentor them on international trade procedures. It aims to assist first-generation entrepreneurs in understanding the nuances of export and import businesses, thus facilitating their entry into international markets.

The scheme focuses on providing training, guidance, and counseling to individuals and firms interested in starting export-import activities. It is part of the government’s broader efforts to promote exports and integrate Indian businesses into the global economy.