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MCQs from Economic Survey chapter-2, Volume-1: The Chakravyuha Challenge of the Indian Economy
1.“The gale of Creative destruction” is an economic concept given by:
1. Karl Marx 2. Adam Smith 3. Joseph Schumpeter 4. Thomas Piketty
Ans: 3 Creative destruction is a concept in economics identified with Joseph Schumpeter who derived it from the work of Karl Marx and popularized it as a theory of economic innovation and the business cycle.
In the book “Capitalism, Socialism and Democracy” (1942), Joseph Schumpeter developed the concept out of a careful reading of Marx’s thought (to which the whole of Part I of the book is devoted), arguing (in Part II) that the creative-destructive forces unleashed by capitalism would eventually lead to its demise as a system.
2.The Chakravyuha Challenge of the Indian Economy broadly refers to.
1. Rising NPA problem 2. Subsidy vortex 3. Problem of “exit” 4. Poor infrastructure
Ans: 3. India has moved from Socialism with limited entry to marketism without exit. Chakravyuha means ability to enter but not exit. Earlier it was "Socialism with limited entry "...Now it is following "marketism without exit".
3. Impeded exit leads to
1. Burden on fiscal front 2. Compare to US, in India the surviving firms are much larger in size. 3. Misallocation of resources have an unfavorable opportunity cost 4.. Increased investment
Choose the correct answer: (a) 1 &2 (b) 1&3 (c) 1&4 (d) All
Answer: (b)
Compare to US and Mexico, in India the surviving firms are much smaller in size.
4. Consider following statements about interest coverage ratio (ICR):
1. ICR is used to determine how easily a company can pay interest expenses on outstanding debt. 2. An ICR~2 is considered quite low as per ES 2015-16.
Choose the correct answer: (a) Only 1 (b) Only 2 (c) Both (d) None
Answer: (c) As per Economic Survey an ICR of less than 2.5 is considered quite low. It implies that revenues are not sufficient to cover the interest cost on debt.
5.Consider following statements: 1. China and Indonesia have more services trade restrictions than India. 2. India has higher manufacturing tariff rates than Brazil.
Choose the correct answer: (a) Only 1 (b) Only 2 (c) Both (d) None Answer: (a) Brazil has higher manufacturing tariff rates than India.
6.The reasons for “Problem of exit” are:
1. Power of vested interests (Problem of interests) 2. Legal problems (Problem of institutions) 3. Entitlement problems and social responsibility (Problem of ideology) 4. All
Ans: 4. Remember the three I’s for exit problem: interests, institutions and ideology.
USTTAD Upgrading the Skills and Training in Traditional Arts/Crafts for Development
Ministry of Minority Affairs launches a new scheme USTTAD as 100% Central Sector Scheme. This scheme will be implemented from 2014-15 onwards during 12th Five Year Plan.
OBJECTIVES
(1) To build capacity of master craftsmen/artisans and training of young generation through the master craftsmen/ artisans for traditional arts/crafts. (2) Set up standards of identified arts/ crafts and their documentation. (3) To establishlinkagesof traditionalskills with the global market. (4) To improve employability of existing workers, school dropouts etc. (5) To generate means of better livelihood for marginalized minorities and bring them in the mainstream. (6) To enable minorities to avail opportunities in the growing market. (7) To ensure dignity of labour. (8) Design development and Research in traditional arts/crafts.
SCOPE OF THE SCHEME
(1) The scheme will aim at capacity building and updating the traditional skills of master craftsmen/artisans.These trained master craftsmen/artisan will train the minority youths in various specific traditional arts/crafts. (2) Ministry of Minority Affairs will take up this skill development programme for all important traditional arts/crafts being practiced by minority communities, for their development and market linkages.
KNOWLEDGE PARTNERS
· Ministry of Textiles, Government of India. · Ministry of Culture, Government of India. · National Institute of Fashion Technology. · Sectoral Export Promotion Councils. · Other expert agencies.
COMPONENTS OF THE SCHEME
The scheme will have following programmes: (a) Up-gradation of Skills and Training in Traditional Arts/Crafts through Institutions. (b) USTTAD Fellowship for Research and Development. (c) Support to Craft museum for curating traditional arts/ crafts. (d) Support to minority craftsmen/artisans for marketing their products.
A scheme to Preserve Rich Heritage of Minority Communities of India under the Overall Concept of Indian Culture . Ministry of Minority Affairs launched the scheme .
Objectives:
To curate rich heritage of minorities under overall concept of Indian Culture.
Curating iconic exhibitions.
Preservation of literature/ documents etc.
Support and promotion ofcalligraphy etc.
Research and Development.
Activities to be covered under the scheme
Curating exhibitions including iconic exhibitions.
Support and promotion of calligraphy etc.
Preservation of literature, documents, manuscripts etc.
Documentation of oral traditions and art forms.
Support to ethnic museums (not supported under schemes of Ministry of Culture or its bodies) for showcasing and preserving heritage of minority communities.
Support for organizing heritage related seminars/ workshops.
Fellowship for research in preservation of heritage and development.
Any other support to individual/ organization in furtherance of cause of protection and promotion of rich heritage of minority communities.
The Oceanic Niño Index (ONI) is primary indicator for monitoring El Niño and La Niña in USA.El Niño conditions to be present when the Oceanic Niño Index is +0.5 or higher, indicating the east-central tropical Pacific is significanty warmer than usual. La Niña conditions exist when the Oceanic Niño Index is -0.5 or lower, indicating the region is cooler than usual.(https://www.climate.gov/news-features/understanding-climate/climate-variability-oceanic-niño-index)
Indian Ocean dipole is an atmosphere-ocean coupled phenomenon in the tropical Indian Ocean (like the El Nino is in the tropical Pacific), characterised by a difference in sea-surface temperatures. A ‘positive IOD’ — or simply ‘IOD’ — is associated with cooler than normal sea-surface temperatures in the eastern equatorial Indian Ocean and warmer than normal sea-surface temperatures (SST) in the western tropical Indian Ocean. The opposite phenomenon is called a ‘negative IOD’, and is characterised by warmer than normal SSTs in the eastern equatorial Indian Ocean and cooler than normal SSTs in the western tropical Indian Ocean. - See more at: http://indianexpress.com/article/explained/indian-ocean-dipole-and-the-monsoon-the-joker-in-the-forecast-pack/#sthash.hcMRachx.dpuf
ECONOMIC SURVEY 2015-16 The Chakravyuha Challenge: Ease to enter, barriers to exit
*Indian Economy making great strides in removing barriers to entry for firms, talent, and technology but less in relation to exit
*Impeded exit has substantial fiscal, economic, and political costs.
Fiscal Costs : Inefficient firms often require government support in the form of explicit subsidies (for example bailouts) or implicit subsidies (tariffs, loans from state banks).
Economic Costs: Misallocation of scarce resources and factors of production in unproductive uses including overhang of stressed assets on corporate and bank balance sheets.
Political costs: Government support to “sick” firms can give the impression that government favors large corporates, which politically limits its ability to undertake measures that will benefit the economy but might be seen as further benefitting businesses.
*The Economic Survey analyses this exit problem with the help of the three I’s :
Interests: The power of vested interests confers greater power on concentrated producer interests in relation to diffused consumer interests. As a result it becomes difficult to phase out schemes and they become instruments of granting favors. For example, 50 percent of Central Sector Schemes that were allocated money in the Union Budget 2015-16 were 25 years old. Thus, extra vigilance is required to ensure that schemes remain relevant and useful over time.
Institutions: Weak institutions increase the time and financial costs of exit. For example, with rising non-performing assets, recourse to debt recovery tribunals (DRTs) has increased. The share of settled cases is becoming small and declining and the accumulated backlog of unsettled cases has increased manifold. Furthermore, inability to punish wilful defaulters questions the legitimacy of all institutions. On the other hand, strong but inflexible institutions are unable to make risky decisions when departures from strict principles may be necessary for the economy.
Ideas/Ideology: The founding ideology of state-led development and socialism makes it difficult to phase out entitlements even as those intended for the poor end up accruing to the relatively better off.
*The Economic Survey 2015-16 suggests five possible ways to address this problem-
1.promoting competition via private sector entry rather than change of ownership from public to private.
2.direct policy action through better laws like the Insolvency and Bankruptcy Code 2015 will expedite exit. Also institutions need to be made stronger but flexible by empowering bureaucrats and reducing their vulnerability.
3.increase the use of technology to remove persistent distortions by bringing down human discretion and layers of intermediaries.
4.increasing transparency and highlighting social costs and benefits of various schemes and entitlements.
5.showcasing exit as an opportunity towards a newer and better tomorrow.
ECONOMIC SURVEY 2015-16 The Chakravyuha Challenge: Ease to enter, barriers to exit
*Indian Economy making great strides in removing barriers to entry for firms, talent, and technology but less in relation to exit
*Impeded exit has substantial fiscal, economic, and political costs.
Fiscal Costs : Inefficient firms often require government support in the form of explicit subsidies (for example bailouts) or implicit subsidies (tariffs, loans from state banks).
Economic Costs: Misallocation of scarce resources and factors of production in unproductive uses including overhang of stressed assets on corporate and bank balance sheets.
Political costs: Government support to “sick” firms can give the impression that government favors large corporates, which politically limits its ability to undertake measures that will benefit the economy but might be seen as further benefitting businesses.
*The Economic Survey analyses this exit problem with the help of the three I’s :
Interests: The power of vested interests confers greater power on concentrated producer interests in relation to diffused consumer interests. As a result it becomes difficult to phase out schemes and they become instruments of granting favors. For example, 50 percent of Central Sector Schemes that were allocated money in the Union Budget 2015-16 were 25 years old. Thus, extra vigilance is required to ensure that schemes remain relevant and useful over time.
Institutions: Weak institutions increase the time and financial costs of exit. For example, with rising non-performing assets, recourse to debt recovery tribunals (DRTs) has increased. The share of settled cases is becoming small and declining and the accumulated backlog of unsettled cases has increased manifold. Furthermore, inability to punish wilful defaulters questions the legitimacy of all institutions. On the other hand, strong but inflexible institutions are unable to make risky decisions when departures from strict principles may be necessary for the economy.
Ideas/Ideology: The founding ideology of state-led development and socialism makes it difficult to phase out entitlements even as those intended for the poor end up accruing to the relatively better off.
*The Economic Survey 2015-16 suggests five possible ways to address this problem-
1.promoting competition via private sector entry rather than change of ownership from public to private.
2.direct policy action through better laws like the Insolvency and Bankruptcy Code 2015 will expedite exit. Also institutions need to be made stronger but flexible by empowering bureaucrats and reducing their vulnerability.
3.increase the use of technology to remove persistent distortions by bringing down human discretion and layers of intermediaries.
4.increasing transparency and highlighting social costs and benefits of various schemes and entitlements.
5.showcasing exit as an opportunity towards a newer and better tomorrow.
Are coconut, areca nut , cashew nut, cocoa and bamboo are plantation crops? Apart from cocoa never heard of all others as plantation crops. Are there anyother plantation crops ?? Tea is one, any other?? src: IYB2016
what is IYB {.... Year Book ??} if its an book what this is available in hindi ??
MCQs from Economic Survey chapter-2, Volume-1: The Chakravyuha Challenge of the Indian Economy
1.“The gale of Creative destruction” is an economic concept given by:
1. Karl Marx 2. Adam Smith 3. Joseph Schumpeter 4. Thomas Piketty
Ans: 3 Creative destruction is a concept in economics identified with Joseph Schumpeter who derived it from the work of Karl Marx and popularized it as a theory of economic innovation and the business cycle.
In the book “Capitalism, Socialism and Democracy” (1942), Joseph Schumpeter developed the concept out of a careful reading of Marx’s thought (to which the whole of Part I of the book is devoted), arguing (in Part II) that the creative-destructive forces unleashed by capitalism would eventually lead to its demise as a system.
2.The Chakravyuha Challenge of the Indian Economy broadly refers to.
1. Rising NPA problem 2. Subsidy vortex 3. Problem of “exit” 4. Poor infrastructure
Ans: 3. India has moved from Socialism with limited entry to marketism without exit. Chakravyuha means ability to enter but not exit. Earlier it was "Socialism with limited entry "...Now it is following "marketism without exit".
3. Impeded exit leads to
1. Burden on fiscal front 2. Compare to US, in India the surviving firms are much larger in size. 3. Misallocation of resources have an unfavorable opportunity cost 4.. Increased investment
Choose the correct answer: (a) 1 &2 (b) 1&3 (c) 1&4 (d) All
Answer: (b)
Compare to US and Mexico, in India the surviving firms are much smaller in size.
4. Consider following statements about interest coverage ratio (ICR):
1. ICR is used to determine how easily a company can pay interest expenses on outstanding debt. 2. An ICR~2 is considered quite low as per ES 2015-16.
Choose the correct answer: (a) Only 1 (b) Only 2 (c) Both (d) None
Answer: (c) As per Economic Survey an ICR of less than 2.5 is considered quite low. It implies that revenues are not sufficient to cover the interest cost on debt.
5.Consider following statements: 1. China and Indonesia have more services trade restrictions than India. 2. India has higher manufacturing tariff rates than Brazil.
Choose the correct answer: (a) Only 1 (b) Only 2 (c) Both (d) None Answer: (a) Brazil has higher manufacturing tariff rates than India.
6.The reasons for “Problem of exit” are:
1. Power of vested interests (Problem of interests) 2. Legal problems (Problem of institutions) 3. Entitlement problems and social responsibility (Problem of ideology) 4. All
Ans: 4. Remember the three I’s for exit problem: interests, institutions and ideology.
ECONOMIC SURVEY 2015-16 The Chakravyuha Challenge: Ease to enter, barriers to exit
*Indian Economy making great strides in removing barriers to entry for firms, talent, and technology but less in relation to exit
*Impeded exit has substantial fiscal, economic, and political costs.
Fiscal Costs : Inefficient firms often require government support in the form of explicit subsidies (for example bailouts) or implicit subsidies (tariffs, loans from state banks).
Economic Costs: Misallocation of scarce resources and factors of production in unproductive uses including overhang of stressed assets on corporate and bank balance sheets.
Political costs: Government support to “sick” firms can give the impression that government favors large corporates, which politically limits its ability to undertake measures that will benefit the economy but might be seen as further benefitting businesses.
*The Economic Survey analyses this exit problem with the help of the three I’s :
Interests: The power of vested interests confers greater power on concentrated producer interests in relation to diffused consumer interests. As a result it becomes difficult to phase out schemes and they become instruments of granting favors. For example, 50 percent of Central Sector Schemes that were allocated money in the Union Budget 2015-16 were 25 years old. Thus, extra vigilance is required to ensure that schemes remain relevant and useful over time.
Institutions: Weak institutions increase the time and financial costs of exit. For example, with rising non-performing assets, recourse to debt recovery tribunals (DRTs) has increased. The share of settled cases is becoming small and declining and the accumulated backlog of unsettled cases has increased manifold. Furthermore, inability to punish wilful defaulters questions the legitimacy of all institutions. On the other hand, strong but inflexible institutions are unable to make risky decisions when departures from strict principles may be necessary for the economy.
Ideas/Ideology: The founding ideology of state-led development and socialism makes it difficult to phase out entitlements even as those intended for the poor end up accruing to the relatively better off.
*The Economic Survey 2015-16 suggests five possible ways to address this problem-
1.promoting competition via private sector entry rather than change of ownership from public to private.
2.direct policy action through better laws like the Insolvency and Bankruptcy Code 2015 will expedite exit. Also institutions need to be made stronger but flexible by empowering bureaucrats and reducing their vulnerability.
3.increase the use of technology to remove persistent distortions by bringing down human discretion and layers of intermediaries.
4.increasing transparency and highlighting social costs and benefits of various schemes and entitlements.
5.showcasing exit as an opportunity towards a newer and better tomorrow.
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Comments
1.“The gale of Creative destruction” is an economic concept given by:
1. Karl Marx
2. Adam Smith
3. Joseph Schumpeter
4. Thomas Piketty
Ans: 3
Creative destruction is a concept in economics identified with Joseph Schumpeter who derived it from the work of Karl Marx and popularized it as a theory of economic innovation and the business cycle.
In the book “Capitalism, Socialism and Democracy” (1942), Joseph Schumpeter developed the concept out of a careful reading of Marx’s thought (to which the whole of Part I of the book is devoted), arguing (in Part II) that the creative-destructive forces unleashed by capitalism would eventually lead to its demise as a system.
Further readings: http://www.economist.com/node/14447179
http://www.econlib.org/library/Enc/CreativeDestruction.html
2.The Chakravyuha Challenge of the Indian Economy broadly refers to.
1. Rising NPA problem
2. Subsidy vortex
3. Problem of “exit”
4. Poor infrastructure
Ans: 3.
India has moved from Socialism with limited entry to marketism without exit.
Chakravyuha means ability to enter but not exit.
Earlier it was "Socialism with limited entry "...Now it is following "marketism without exit".
3. Impeded exit leads to
1. Burden on fiscal front
2. Compare to US, in India the surviving firms are much larger in size.
3. Misallocation of resources have an unfavorable opportunity cost
4.. Increased investment
Choose the correct answer:
(a) 1 &2
(b) 1&3
(c) 1&4
(d) All
Answer: (b)
Compare to US and Mexico, in India the surviving firms are much smaller in size.
4. Consider following statements about interest coverage ratio (ICR):
1. ICR is used to determine how easily a company can pay interest expenses on outstanding debt.
2. An ICR~2 is considered quite low as per ES 2015-16.
Choose the correct answer:
(a) Only 1
(b) Only 2
(c) Both
(d) None
Answer: (c)
As per Economic Survey an ICR of less than 2.5 is considered quite low. It implies that revenues are not sufficient to cover the interest cost on debt.
5.Consider following statements:
1. China and Indonesia have more services trade restrictions than India.
2. India has higher manufacturing tariff rates than Brazil.
Choose the correct answer:
(a) Only 1
(b) Only 2
(c) Both
(d) None
Answer: (a)
Brazil has higher manufacturing tariff rates than India.
6.The reasons for “Problem of exit” are:
1. Power of vested interests (Problem of interests)
2. Legal problems (Problem of institutions)
3. Entitlement problems and social responsibility (Problem of ideology)
4. All
Ans: 4.
Remember the three I’s for exit problem: interests, institutions and ideology.
Upgrading the Skills and Training in Traditional Arts/Crafts for Development
Ministry of Minority Affairs launches a new scheme USTTAD as 100% Central Sector Scheme. This scheme will be implemented from 2014-15 onwards during 12th Five Year Plan.
OBJECTIVES
(1) To build capacity of master craftsmen/artisans and training of young generation through the master craftsmen/ artisans for traditional arts/crafts.
(2) Set up standards of identified arts/ crafts and their documentation.
(3) To establishlinkagesof traditionalskills with the global market.
(4) To improve employability of existing workers, school dropouts etc.
(5) To generate means of better livelihood for marginalized minorities and bring them in the mainstream.
(6) To enable minorities to avail opportunities in the growing market.
(7) To ensure dignity of labour.
(8) Design development and Research in traditional arts/crafts.
SCOPE OF THE SCHEME
(1) The scheme will aim at capacity building and updating the traditional skills of master craftsmen/artisans.These trained master craftsmen/artisan will train the minority youths in various specific traditional arts/crafts.
(2) Ministry of Minority Affairs will take up this skill development programme for all important traditional arts/crafts being practiced by minority communities, for their development and market linkages.
KNOWLEDGE PARTNERS
· Ministry of Textiles, Government of India.
· Ministry of Culture, Government of India.
· National Institute of Fashion Technology.
· Sectoral Export Promotion Councils.
· Other expert agencies.
COMPONENTS OF THE SCHEME
The scheme will have following programmes:
(a) Up-gradation of Skills and Training in Traditional Arts/Crafts through Institutions.
(b) USTTAD Fellowship for Research and Development.
(c) Support to Craft museum for curating traditional arts/ crafts.
(d) Support to minority craftsmen/artisans for marketing their products.
A scheme to Preserve Rich Heritage of Minority Communities of India under the Overall Concept of Indian Culture .
Ministry of Minority Affairs launched the scheme .
Objectives:
Indian Ocean dipole is an atmosphere-ocean coupled phenomenon in the tropical Indian Ocean (like the El Nino is in the tropical Pacific), characterised by a difference in sea-surface temperatures. A ‘positive IOD’ — or simply ‘IOD’ — is associated with cooler than normal sea-surface temperatures in the eastern equatorial Indian Ocean and warmer than normal sea-surface temperatures (SST) in the western tropical Indian Ocean. The opposite phenomenon is called a ‘negative IOD’, and is characterised by warmer than normal SSTs in the eastern equatorial Indian Ocean and cooler than normal SSTs in the western tropical Indian Ocean. - See more at: http://indianexpress.com/article/explained/indian-ocean-dipole-and-the-monsoon-the-joker-in-the-forecast-pack/#sthash.hcMRachx.dpuf
The Chakravyuha Challenge: Ease to enter, barriers to exit
*Indian Economy making great strides in removing barriers to entry for firms, talent, and technology but less in relation to exit
*Impeded exit has substantial fiscal, economic, and political costs.
Fiscal Costs : Inefficient firms often require government support in the form of explicit subsidies (for example bailouts) or implicit subsidies (tariffs, loans from state banks).
Economic Costs: Misallocation of scarce resources and factors of production in unproductive uses including overhang of stressed assets on corporate and bank balance sheets.
Political costs: Government support to “sick” firms can give the impression that government favors large corporates, which politically limits its ability to undertake measures that will benefit the economy but might be seen as further benefitting businesses.
*The Economic Survey analyses this exit problem with the help of the three I’s :
Interests: The power of vested interests confers greater power on concentrated producer interests in relation to diffused consumer interests. As a result it becomes difficult to phase out schemes and they become instruments of granting favors. For example, 50 percent of Central Sector Schemes that were allocated money in the Union Budget 2015-16 were 25 years old. Thus, extra vigilance is required to ensure that schemes remain relevant and useful over time.
Institutions: Weak institutions increase the time and financial costs of exit. For example, with rising non-performing assets, recourse to debt recovery tribunals (DRTs) has increased. The share of settled cases is becoming small and declining and the accumulated backlog of unsettled cases has increased manifold. Furthermore, inability to punish wilful defaulters questions the legitimacy of all institutions.
On the other hand, strong but inflexible institutions are unable to make risky decisions when departures from strict principles may be necessary for the economy.
Ideas/Ideology: The founding ideology of state-led development and socialism makes it difficult to phase out entitlements even as those intended for the poor end up accruing to the relatively better off.
*The Economic Survey 2015-16 suggests five possible ways to address this problem-
1.promoting competition via private sector entry rather than change of ownership from public to private.
2.direct policy action through better laws like the Insolvency and Bankruptcy Code 2015 will expedite exit. Also institutions need to be made stronger but flexible by empowering bureaucrats and reducing their vulnerability.
3.increase the use of technology to remove persistent distortions by bringing down human discretion and layers of intermediaries.
4.increasing transparency and highlighting social costs and benefits of various schemes and entitlements.
5.showcasing exit as an opportunity towards a newer and better tomorrow.
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