Indian Economy Quiz 5

Antyodaya Anna Yojana (AAY) is the sponsored scheme of Government of India to provide highly subsidised food to millions of the poorest families. The scheme was implemented in 2000. AAY scheme covers the poorest of the poor by supply of food and other important commodities for their daily needs.

The term “labour-intensive” refers to a process or industry that requires a large amount of labour to produce its goods or services. The degree of labour intensity is typically measured in proportion.

Treasury bills are short-term debt instruments issued by the Government of India and are presently issued in three tenors, namely, 91 days, 182 days and 364 days. Treasury bills are zero-coupon securities and pay no interest.

The term “marginal efficiency of capital” was introduced by J.M. Keynes in his General Theory, and defined as “the rate of discount which would make the present value of the series of annuities given by the returns expected from the capital asset during its life just equal its supply price”.

An oligopoly is a market structure in which a market or industry is dominated by a small number of large firms (sellers). Examples of oligopoly include the auto industry, cable television, commercial air travel, etc.

From 1951 to 2017, the Indian economy was premised on the concept of planning. This was carried through the Five-Year Plans, developed, executed, and monitored by the Planning Commission. The Fourth Five-Year Plan (1969–1974) set before itself the two principal objectives – growth with stability and progress towards self-reliance.

A mixed economy combines the characteristics of capitalism and socialism. Essentially, a country with this kind of economy comprises public and private sectors, wherein private enterprises aim for profit maximisation, while the Government sector works towards the welfare of the citizens.

The estimate of National Income in India was, for the first time, prepared by Dada Bhai Naoroji in 1876 for the year 1867-68.

All of the goods which are scarce and limited in supply are called luxury goods. A luxury good is a good for which demand increases more than what is proportional as income rises.

In early development, investment opportunities for those who already have wealth multiply so owners of capital can accumulate wealth. At the same time, there is an influx of cheap rural labour to the developing cities, which drives down wages. Therefore, in early development, inequality increases.