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All questions of Select Aspects of Indian Economy (Old Scheme) for CA Foundation Exam

The percentage of population living below the poverty line has been estimated in the 2004-05 at: 
  • a)
    20
  • b)
    22
  • c)
    30
  • d)
    36
Correct answer is option 'B'. Can you explain this answer?

Alok Mehta answered
The percentage of the population living below the poverty line in India decreased to 22% in 2011-12 from 37% in 2004-05, according to data released by the Planning Commission in July 2013.  

In India which authority takes purview of import & export: 
  • a)
    EXIM
  • b)
    RBI
  • c)
    Ministry of Finance
  • d)
    Ministry of commerce 
Correct answer is option 'D'. Can you explain this answer?

Arun Khanna answered
India took a leap forward in improving 'Ease of Doing Business' today by reducing the mandatory documents required for import and export of goods to three documents each. The Directorate General of Foreign Trade (DGFT) issued a Notification to this effect today (Notification Link below).
The Department of Commerce had set up an Inter Ministerial Committee under the Chairmanship of DGFT in July 2014 to study and recommend ways to reduce the number of mandatory documents required for export and import. The Committee held detailed discussions with all stakeholders and the concerned Departments/ Ministries/Agencies and also visited JNPT to study the ground situation and find ways to minimize the number of documents and reduce transaction costs and time for exports and imports. The Committee submitted its "Trading Across Borders" report to Prime Minister's Office in December 2014.

 Stagflation means:
  • a)
    Inflation with stagnation 
  • b)
    Selective credit control 
  • c)
    Inflation galloping like stag 
  • d)
    Inflation & increasing output
Correct answer is option 'A'. Can you explain this answer?

Rajat Patel answered
Stagflation, a portmanteau of stagnation and inflation, is a term used in economics when a country experiences high inflation, elevated unemployment, and stagnant demand. A portmanteau is a word that combines the sounds and meanings of two others. When a country’s economy experiences stagflation, the economy is stagnant – not growing – and inflation is high.

 The unemployment which is caused by the introduction of new machinery, improvement of production techniques, labour saving devices etc. is called :
  • a)
    Frictional unemployment
  • b)
    Casual unemployment
  • c)
    Structural unemployment
  • d)
    Technological unemployment
Correct answer is option 'D'. Can you explain this answer?

Akshay Das answered
Technological Unemployment

Definition:
Technological unemployment refers to the involuntary unemployment caused by the introduction of new machinery, technology, production techniques, or labour-saving devices which replace human labour.

Explanation:
As technology advances, it is becoming more common for machines and computers to perform tasks that were previously done by humans. This results in a decrease in the demand for human labour and an increase in the demand for skilled workers who are able to operate and maintain the new technology. Workers who are not able to develop the necessary skills are left without work, leading to technological unemployment.

Examples:
- The introduction of self-checkout machines in supermarkets, which replaced human cashiers.
- The use of automated manufacturing systems in factories, which replaced assembly line workers.
- The development of artificial intelligence in data entry and customer service roles, which replaced human workers.

Effects:
Technological unemployment can have negative effects on individuals, families, and communities. It can lead to a decrease in income, a loss of skills and self-esteem, and an increase in social problems such as crime and substance abuse.

Solutions:
To address technological unemployment, it is important for individuals and society to adapt to the changing job market. This may involve developing new skills, pursuing education and training, and embracing new technologies. Governments and businesses can also help by investing in education and training programs, supporting research and development, and promoting innovation and entrepreneurship.

Can you explain the answer of this question below:
___________ Co-efficient is used to measure income in equalities. 
  • A:
    Gini-Co-efficient
  • B:
    HDI
  • C:
    Both
  • D:
    None
The answer is b.

Nandini Iyer answered
Inequality-adjusted Human Development Index (IHDI):
The IHDI combines a country’s average achievements in health, education and income with how those achievements are distributed among country’s population by “discounting” each dimension’s average value according to its level of inequality. Thus, the IHDI is distribution-sensitive average level of HD. Two countries with different distributions of achievements can have the same average HDI value. Under perfect equality the IHDI is equal to the HDI, but falls below the HDI when inequality rises.

 You are a factory owner and have given employment to 400 workers. If 10 workers are retrenched by you without loss of production then this situation will be described as:
  • a)
    Open Unemployment 
  • b)
    Disguised Unemployment 
  • c)
    Frictional Unemployment 
  • d)
    Seasonal Unemployment 
Correct answer is option 'B'. Can you explain this answer?

Jayant Mishra answered
Disguised unemployment or hidden unemployment is a kind of unemployment where some people seem to be employed but are actually not. ( clear from the word disguise which means attire to hide one's identity) This type usually occurs when there is overemployment in a pirticular work.

Can you explain the answer of this question below:

Occupational structure refers to:  Which type of unemployment is more in India?

  • A:

    Disguised

  • B:

    Open 

  • C:

    Cyclical 

  • D:

    Educational

The answer is c.

Aarya Sharma answered
Occupational structure refers to:

Occupational structure refers to the distribution of the workforce among different occupations or industries within a country or an economic system. It provides an overview of the composition of the labor force and the types of jobs people are engaged in.

Types of Unemployment

There are several types of unemployment that can exist in an economy. These include:

1. Structural Unemployment: This type of unemployment occurs when there is a mismatch between the skills and qualifications of the available workforce and the requirements of the available jobs. It is usually caused by changes in technology, shifts in consumer demand, or changes in the structure of the economy.

2. Fricitional Unemployment: Fricitional unemployment refers to the temporary unemployment that occurs when individuals are in the process of transitioning between jobs. It is generally considered a natural and unavoidable part of the labor market as workers search for better opportunities or are in the process of being hired.

3. Seasonal Unemployment: Seasonal unemployment occurs due to the seasonal nature of certain industries. Workers in industries such as agriculture, tourism, and construction may experience unemployment during off-season periods when there is less demand for their services.

4. Cyclical Unemployment: Cyclical unemployment is directly related to the business cycle and occurs when there is a downturn in economic activity. During recessions or economic contractions, firms may lay off workers due to reduced demand for their products or services.

5. Disguised Unemployment: Disguised unemployment exists when there are more workers in a particular sector or occupation than required. In this situation, additional workers do not contribute significantly to the overall output or productivity. It often occurs in sectors with low productivity and limited job opportunities.

6. Educational Unemployment: Educational unemployment refers to the unemployment of educated individuals who are unable to find suitable employment opportunities matching their qualifications.

Unemployment in India

Cyclical unemployment is the type of unemployment that is more prevalent in India. The Indian economy is subject to various economic cycles, with periods of growth and recession. During economic downturns, demand for goods and services decreases, leading to reduced production and layoffs by firms. This results in a rise in cyclical unemployment.

Key Points:
- Occupational structure refers to the distribution of the workforce among different occupations or industries within a country or economic system.
- Types of unemployment include structural, frictional, seasonal, cyclical, disguised, and educational unemployment.
- Cyclical unemployment is more prevalent in India due to the country's economic cycles.
- Cyclical unemployment occurs during economic downturns when there is reduced demand for goods and services, leading to layoffs by firms.
- Disguised unemployment refers to the situation where additional workers do not contribute significantly to productivity and often occurs in sectors with limited job opportunities and low productivity.
- Educational unemployment refers to the unemployment of educated individuals who are unable to find suitable employment matching their qualifications.

 Most of the unemployment in India is:
  • a)
    Voluntary 
  • b)
    Structural 
  • c)
    Frictional
  • d)
    Technical 
Correct answer is option 'B'. Can you explain this answer?

Raghav Ghoshal answered
Structural Unemployment in India

Structural unemployment is a type of unemployment that occurs due to changes in the structure of the economy. In India, structural unemployment is the most common type of unemployment. Here are the reasons why:

1. Lack of Industrialization: India is still largely an agrarian economy, and the industrial sector is underdeveloped. This means that there are not enough jobs in industries to absorb the growing labor force.

2. Skill Mismatch: There is a mismatch between the skills of the workforce and the needs of the industry. There are many job openings in the manufacturing and service sectors, but the workforce lacks the required skills and training.

3. Education: The education system in India does not prepare students for the job market. Many students graduate without the skills required for the job market, leading to unemployment.

4. Rural-Urban Divide: There is a significant divide between rural and urban areas in terms of job opportunities. Urban areas have more employment opportunities, but rural areas lack job opportunities, leading to migration to urban areas.

5. Labor Laws: Labor laws in India make it difficult for companies to hire and fire workers. This leads to a reluctance to hire workers, leading to high levels of unemployment.

Conclusion

In conclusion, structural unemployment is the most common type of unemployment in India due to a lack of industrialization, skill mismatch, education, rural-urban divide, and labor laws. To address this issue, the government should focus on promoting industrialization and providing vocational training to the labor force. The education system should also be reformed to prepare students for the job market.

Fiscal Policy refers to a policy of : 
  • a)
    Money lenders 
  • b)
    Government Finance 
  • c)
    Commercial banks 
  • d)
    Monetary authority
Correct answer is option 'B'. Can you explain this answer?

Sinjini Gupta answered
Fiscal Policy refers to a policy of Government Finance. It is the use of government spending and taxation policies to influence the economy. This policy is used by the government to stabilize the economy, achieve economic growth, control inflation and unemployment.

Components of Fiscal Policy:

1. Government Spending: The government spends money on various projects such as infrastructure, education, healthcare, defense, etc. This expenditure helps to boost economic activity and employment.

2. Taxation: The government collects taxes from individuals and businesses. Taxation is used to regulate the economy by reducing or increasing aggregate demand.

3. Transfer Payments: The government provides benefits to individuals such as unemployment benefits, welfare, etc. These payments help in reducing poverty and increasing consumption.

Objectives of Fiscal Policy:

1. Economic Growth: Fiscal policy is used to stimulate economic growth by increasing government spending and reducing taxes.

2. Price Stability: Fiscal policy is used to control inflation by reducing government spending and increasing taxes.

3. Employment: Fiscal policy is used to create employment opportunities by increasing government spending on infrastructure and other projects.

4. Distribution of Income: Fiscal policy is used to reduce income inequality by providing transfer payments to the poor and increasing taxes on the rich.

Conclusion:

Fiscal policy is an important tool used by the government to regulate the economy. It helps in achieving economic growth, controlling inflation, reducing unemployment and poverty. It is important for the government to use fiscal policy effectively to achieve its objectives.

A social institution called Dhumkuria belongs to which tribe?
  • a)
    Oraon
  • b)
    Ho
  • c)
    Gond
  • d)
    Kol
Correct answer is option 'A'. Can you explain this answer?

A social institution called ‘Dhumkuria’ belongs to the Oraon tribe. It is an Adivasi Group inhabiting various states across central and eastern India.

Which one of the Indian state/union Territories is having lowest sex ratio in 2011?
  • a)
    Haryana
  • b)
    Daman and Diu
  • c)
    Punjab
  • d)
    Dadar and Nagar Haveli
Correct answer is option 'B'. Can you explain this answer?

Subhankar Sen answered

Lowest Sex Ratio in 2011

Sex ratio is an important demographic indicator that shows the number of females per 1000 males in a population. In 2011, the lowest sex ratio in India was recorded in Daman and Diu.

Reasons for the low sex ratio in Daman and Diu:
- Social factors: Daman and Diu have a patriarchal society where the preference for male children is prevalent. This preference leads to sex-selective abortions and female infanticide, resulting in a skewed sex ratio.
- Economic factors: The economic conditions in Daman and Diu might contribute to the low sex ratio, as poverty and lack of resources can lead to neglect of female children.
- Migration: The migration of males for better job opportunities might also impact the sex ratio in Daman and Diu, as it can result in a higher male population compared to females.

Government initiatives to improve the sex ratio:
- The government of Daman and Diu has implemented various schemes and programs to address the issue of the low sex ratio. These initiatives focus on promoting the value of the girl child, providing education and healthcare facilities, and enforcing strict laws against sex-selective practices.

Conclusion:
The low sex ratio in Daman and Diu is a concerning issue that requires concerted efforts from the government and society to address. By promoting gender equality, ensuring access to education and healthcare for all, and enforcing laws against gender discrimination, the sex ratio in Daman and Diu can be improved in the future.

Occupational structure refers to: 
  • a)
    Distribution of working force among the different occupations 
  • b)
    The nature of different occupations 
  • c)
    Size of working force in a country 
  • d)
    Number of people living in a country 
Correct answer is option 'A'. Can you explain this answer?

Divya Dasgupta answered
Distribution of working force among the different occupations

Occupational structure refers to the distribution of the working force among different occupations in a given population or country. It provides information about the composition and characteristics of the workforce, and how it is divided across various job categories or sectors. Occupational structure is an important aspect of the labor market and can have significant implications for economic development and social welfare.

Significance of Occupational Structure

Understanding the occupational structure of a country can provide valuable insights into its economic structure, level of development, and patterns of employment. It helps in assessing the skill levels and qualifications of the workforce, identifying areas of specialization, and analyzing the distribution of labor across different sectors.

Factors Influencing Occupational Structure

Several factors influence the occupational structure of a country, including:

1. Economic development: The stage of economic development can influence the types of occupations that dominate a country. In developing countries, agriculture and informal sectors may constitute a significant portion of the workforce, while in developed countries, service and knowledge-based occupations may be more prevalent.

2. Technological advancements: Technological progress can lead to changes in the occupational structure by replacing certain jobs with automation or creating new occupations that require specific skills. For example, the rise of information technology has led to the emergence of new job roles related to software development, data analysis, and digital marketing.

3. Education and training: The availability of education and training opportunities can shape the occupational structure by influencing the skill levels of the workforce. Countries with a well-developed education system and vocational training programs may have a higher proportion of workers in skilled occupations.

4. Industrial structure: The composition of industries and sectors within a country can affect the distribution of occupations. For instance, countries with a large manufacturing sector may have a higher proportion of workers in production and engineering-related occupations.

5. Government policies: Government policies, such as labor market regulations and initiatives to promote certain industries, can also impact the occupational structure. For example, policies aimed at promoting the growth of the healthcare sector may lead to an increase in the number of healthcare professionals.

Importance of Studying Occupational Structure

Studying the occupational structure is crucial for several reasons:

1. Economic planning: Occupational structure data helps policymakers and planners understand the current state of the labor market and make informed decisions about resource allocation, skill development, and job creation.

2. Employment policies: Occupational structure analysis can inform the formulation of employment policies, such as those aimed at reducing unemployment, promoting job creation, and addressing skill shortages in specific occupations.

3. Education and training: Knowledge of the occupational structure can guide education and training policies by identifying the skills and qualifications required in different occupations. It can help align educational programs with the needs of the labor market, improving the employability of individuals.

4. Social welfare: Occupational structure analysis can shed light on issues of income inequality, gender disparities, and social mobility. It can help identify occupations that offer better wages and opportunities for advancement, enabling policymakers to address disparities and promote social welfare.

In conclusion, occupational structure refers to the distribution of the working force among different occupations in a country. It is influenced by various factors and provides valuable insights into the economic structure, level of development, and patterns of employment. Understanding the occupational structure is important for economic planning, employment policies, education and training, and social welfare.

 Employment guarantee scheme was launched in: 
  • a)
    1999
  • b)
    2000
  • c)
    1995
  • d)
    2006
Correct answer is option 'D'. Can you explain this answer?

Employment Guarantee Scheme

The Employment Guarantee Scheme (EGS), also known as Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), was launched in 2006. It is a social security measure that guarantees the right to work and ensures livelihood security in rural areas of India.

Objective of the Employment Guarantee Scheme

The primary objective of the Employment Guarantee Scheme is to enhance livelihood security in rural areas by providing at least 100 days of wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work.

Key Features of the Employment Guarantee Scheme

The Employment Guarantee Scheme has several key features that make it unique and effective in providing employment opportunities to rural households. These features include:

1. Legal Guarantee: The scheme provides a legal guarantee to rural households for wage employment.

2. Demand-Driven Approach: The scheme is demand-driven, which means that employment is provided based on the demand for work from the rural households.

3. Unskilled Manual Work: The scheme focuses on providing employment for unskilled manual work such as construction of rural infrastructure, water conservation, and land development.

4. Minimum Wages: The scheme ensures that the wages paid to the workers are not less than the minimum wage fixed by the state government.

5. Job Card: Every rural household that seeks employment under the scheme is issued a job card, which serves as proof of registration and entitlement to work.

6. Payment of Wages: The wages are paid directly to the workers' bank accounts to ensure transparency and prevent corruption.

Impact of the Employment Guarantee Scheme

The Employment Guarantee Scheme has had a significant impact on the rural economy and the lives of the rural population. Some of the key impacts include:

1. Poverty Alleviation: The scheme has helped in reducing poverty in rural areas by providing employment and income to the rural households.

2. Infrastructure Development: The scheme has contributed to the development of rural infrastructure such as roads, irrigation facilities, and water conservation structures.

3. Empowerment of Women: The scheme has played a crucial role in empowering women by providing them with opportunities for wage employment and financial independence.

4. Migration Control: The scheme has helped in controlling distress migration from rural to urban areas by providing employment opportunities locally.

5. Social Inclusion: The scheme has promoted social inclusion by providing equal opportunities for employment to marginalized sections of society, including Scheduled Castes, Scheduled Tribes, and women.

In conclusion, the Employment Guarantee Scheme was launched in 2006 with the objective of providing livelihood security and employment opportunities to rural households in India. The scheme has been successful in addressing poverty, promoting infrastructure development, empowering women, controlling migration, and fostering social inclusion.

When too much money chases too few goods, the resulting inflation is called : 
  • a)
    Deflation 
  • b)
    Demand-pull Inflation 
  • c)
    Cost push inflation 
  • d)
    Stagflation 
Correct answer is option 'B'. Can you explain this answer?

Alok Mehta answered
Demand-pull inflation is asserted to arise when aggregate demand in an economy outpaces aggregate supply. It involves inflation rising as real gross domestic product rises and unemployment falls, as the economy moves along the Phillips curve. This is commonly described as "too much money chasing too few goods."

JGSY programme of poverty alleviation was submerged into_______:
  • a)
    SGRY
  • b)
    NFFWP
  • c)
    PMGSY
  • d)
    All of above
Correct answer is option 'A'. Can you explain this answer?

Submerging of JGSY programme into SGRY:
The Jawahar Gram Samridhi Yojana (JGSY) programme of poverty alleviation was merged into the Sampoorna Grameen Rozgar Yojana (SGRY) by the government. This decision was taken to streamline and consolidate the various poverty alleviation schemes and ensure more effective implementation.

Reason for the merger:
1. Efficiency: By merging the JGSY programme into SGRY, the government aimed to improve the efficiency of poverty alleviation efforts by combining resources and eliminating duplication of work.
2. Increased coverage: The merger allowed for a wider coverage of beneficiaries and a more comprehensive approach towards poverty alleviation in rural areas.
3. Better coordination: Consolidating the programmes helped in better coordination among various stakeholders involved in poverty alleviation activities.
4. Financial management: The merger of programmes also led to better financial management and utilization of funds allocated for poverty alleviation.

Impact of the merger:
1. Enhanced effectiveness: The merger of JGSY into SGRY resulted in a more effective and streamlined approach towards poverty alleviation, leading to better outcomes for the beneficiaries.
2. Improved monitoring and evaluation: The consolidation of programmes allowed for improved monitoring and evaluation of poverty alleviation efforts, helping in assessing the impact of the schemes.
3. Resource optimization: By merging the programmes, the government was able to optimize resources and ensure that funds were utilized efficiently for poverty alleviation activities.
In conclusion, the submerging of the JGSY programme into SGRY was a strategic decision by the government to enhance the effectiveness of poverty alleviation efforts and ensure better outcomes for the rural population.

Can you explain the answer of this question below:

 Structural unemployment is due to : 

  • A:

    Inflationary conditions 

  • B:

    Heavy industry bias 

  • C:

    Shortage of Raw materials 

  • D:

    Inadequate production capacity 

The answer is d.

Arun Khanna answered
Structural unemployment is a form of unemployment caused by a mismatch between the skills that workers in the economy can offer, and the skills demanded of workers by employers (also known as the skills gap).

 The current account of Balance of Payment includes trade balance and ______
  • a)
    Settlement account 
  • b)
    Capital account 
  • c)
    Invisibles
  • d)
    Errors and omissions
Correct answer is option 'C'. Can you explain this answer?

The Current Account of Balance of Payment is an important component of the overall balance of payment of a country. It includes all transactions related to the exchange of goods and services between a country and the rest of the world.

Components of the Current Account:

1. Trade Balance: It is the difference between the value of exports and imports of goods. A positive balance indicates that a country is exporting more than it is importing, while a negative balance indicates the opposite.

2. Invisibles: It includes all transactions related to services, such as tourism, transportation, and financial services. It also includes income from investments and remittances from abroad.

3. Errors and Omissions: This component reflects the statistical discrepancy in the balance of payment calculations. It occurs due to errors in measurement, misreporting of data, and unrecorded transactions.

Importance of the Current Account:

The current account is an important indicator of a country's economic health. A surplus in the current account indicates that a country is earning more from exports than it is spending on imports. This can lead to an increase in foreign exchange reserves, which can be used to pay off foreign debt, invest in infrastructure, or stabilize the currency. On the other hand, a deficit in the current account indicates that a country is spending more on imports than it is earning from exports. This can lead to a decrease in foreign exchange reserves and put pressure on the currency.

Conclusion:

In conclusion, the current account of the balance of payment is a crucial component of a country's economic health. It reflects the trade balance and all transactions related to the exchange of goods and services between a country and the rest of the world. In addition, it includes income from investments and remittances from abroad. Therefore, it is important for policymakers to monitor the current account balance and take appropriate measures to maintain a healthy balance of payment position.

Which of the following poverty eradication scheme is presently operational in India?
  • a)
    Mahatma Gandhi National Rural Employment Guarantee Scheme
  • b)
    Ajeevika
  • c)
    Swarn Jayanti Shahari Rozgar Yojna
  • d)
    All of the above
Correct answer is option 'D'. Can you explain this answer?

Arun Khanna answered
National Poverty Eradication Programme (NAPEP) is a 2001 program by the Nigerian government addressing poverty in Nigeria and related issues. It was designed to replace the Poverty Alleviation Program.

Measures Adopted to Remove Rural Poverty in India
Integrated Rural Development Programme (IRDP): ...
Training Rural Youth for Self-Employment (TRYSEM): ...
Development of Women and Children in Rural Areas (DWCRA): ...
National Rural Employment Programme (NREP): ...
Rural Landless Employment Guarantee Programme (RLEGP): ...
Jawahar Rozgar Yojana (JRY): ...
Employment Assurance Scheme (EAS):

Which one of the following years is known as the ‘Year of the Great Divide’ with regard to population, after which there has been a continuous and rapid growth in India’s population?
  • a)
    1911
  • b)
    1921
  • c)
    1941
  • d)
    1951
Correct answer is option 'B'. Can you explain this answer?

Mira Patel answered
The Year of the Great Divide: 1921

In India, the year 1921 is known as the 'Year of the Great Divide' with regard to population. It marks a significant turning point in the demographic history of the country, after which there has been a continuous and rapid growth in India's population. Let's explore the reasons behind this and the implications it had.

Reasons for the Great Divide:
- Decline in Mortality Rates: One of the key factors contributing to the population growth after 1921 was a significant decline in mortality rates. Improved medical facilities, advancements in healthcare, and better sanitation practices led to a decrease in the number of deaths.
- Control of Epidemics: The early 20th century witnessed the successful control of major epidemics like the bubonic plague and cholera. This further contributed to the decline in mortality rates and increased the overall life expectancy of the population.
- Improved Food Production: During this period, India witnessed advancements in agriculture, including the introduction of new farming techniques, irrigation systems, and the use of fertilizers. These developments led to increased food production, which in turn supported a larger population.
- Social and Economic Factors: The early 20th century also saw changes in social and economic conditions. There was a shift from traditional agrarian societies to a more industrialized economy. This transition created employment opportunities and improved living standards, which encouraged people to have more children.
- Decrease in Fertility Control: Another important factor contributing to the population growth was a decrease in fertility control. The decline in the practice of contraception and the cultural preference for larger families led to higher birth rates.

Implications of the Great Divide:
- Population Explosion: The continuous and rapid growth in India's population since 1921 has led to what is often referred to as a population explosion. The country's population has more than quadrupled over the past century, presenting numerous challenges in terms of resource management, infrastructure, and socio-economic development.
- Pressure on Resources: The increasing population puts immense pressure on resources such as land, water, and energy. This has led to issues like deforestation, water scarcity, and a strain on infrastructure and public services.
- Social and Economic Challenges: The high population growth rate poses challenges in providing basic amenities, healthcare, education, and employment opportunities to the growing population. It also leads to higher competition for limited resources and can exacerbate social inequalities.
- Environmental Impact: The population growth has had a significant impact on the environment, including increased pollution, loss of biodiversity, and the depletion of natural resources. This has implications for sustainable development and the need for effective environmental conservation measures.

In conclusion, the 'Year of the Great Divide' in India's population history is 1921. The decline in mortality rates, control of epidemics, improved food production, social and economic factors, and decreased fertility control were the key factors contributing to the continuous and rapid growth in India's population since then. This growth has presented various challenges related to resource management, infrastructure, and socio-economic development.

 Which of the following cannot remove poverty in India?
  • a)
    Population control 
  • b)
    Increase in production
  • c)
    Equitable distribution 
  • d)
    Government subsidies.
Correct answer is option 'D'. Can you explain this answer?

Alok Mehta answered
The World Trade Organization has a broader definition of subsidies. It says a subsidy is any financial benefit provided by a government which gives an unfair advantage to a specific industry, business, or even individual. The WTO mentions five types of subsidies: Cash subsidies, such as the grants mentioned above.so , poverty cannot remove.

Pradhan Mantri Bharat Jodo Yojna is associated with:
  • a)
    Rivers
  • b)
    Communication
  • c)
    Highways
  • d)
    Social Integration
Correct answer is option 'C'. Can you explain this answer?

Pradhan Mantri Bharat Jodo Pariyojana (PMBJP): 
Apart from the nearly 14,000 km of highways being developed under NHDP and other projects, the Government has announced 4-laning and development of another 10,000 km of National Highways stretches under the PMBJP. These new stretches would be identified on the basis of traffic density, connectivity of State Capitals with NHDP (as announced by the Hon’ble Prime Minister on Independence Day 2003) and connectivity of important centres of tourist and economic importance with NHDP. The total cost of the projects under this is estimated at Rs.40,000 crore and work will be awarded in 4-5 years on Build, Operate and Transfer (BOT) basis. To ensure a reasonable return to the BOT operators, the Government will provide Grant for meeting the shortfall in the revenue on case to case basis.

As Per Census 2011, the Total Fertility Rate (TFR) of India is —
  • a)
    3.2
  • b)
    2.9
  • c)
    2.6
  • d)
    2.4
Correct answer is option 'D'. Can you explain this answer?

Gopal Sen answered
Total Fertility Rate (TFR) in India
The Total Fertility Rate (TFR) is a critical demographic indicator that reflects the average number of children a woman would have during her lifetime based on current age-specific fertility rates.
Census 2011 Findings
According to the Census of India 2011, the TFR was reported as 2.4. This figure signifies a significant decline in fertility rates compared to previous decades.
Implications of TFR 2.4
- Population Growth Stabilization: A TFR of 2.4 is indicative of a population nearing replacement level, which is approximately 2.1. This suggests that India is moving towards stabilizing its population growth.
- Socio-economic Impact: Lower fertility rates can lead to improved economic conditions, as families may have more resources to invest in each child’s education and health.
Regional Variations
- Diverse Fertility Rates: India exhibits considerable regional diversity in fertility rates. States like Bihar and Uttar Pradesh have higher fertility rates, while states like Kerala and Punjab have rates closer to or below the replacement level.
- Factors Influencing TFR: Education, access to healthcare, and socio-cultural norms significantly influence fertility rates across different regions.
Government Initiatives
- Family Planning Programs: The Indian government has implemented various family planning initiatives aimed at promoting awareness and providing access to contraceptive methods to manage fertility effectively.
- Empowerment of Women: Education and empowerment of women play a crucial role in reducing TFR, as educated women tend to have fewer children and make informed decisions regarding family planning.
In summary, the TFR of 2.4 in India as per the 2011 Census marks a pivotal moment in the country’s demographic transition, with far-reaching implications for its socio-economic landscape.

As per IMF balance of payment manual, import export of goods should be presented on : 
  • a)
    FOB basis 
  • b)
    FOR basis
  • c)
    CIF basis 
  • d)
    All of these 
Correct answer is option 'A'. Can you explain this answer?

Dipika Kaur answered
Explanation:
The International Monetary Fund (IMF) Balance of Payment Manual recommends that imports and exports of goods should be presented on the Free on Board (FOB) basis.

FOB Basis:
FOB stands for Free on Board. It means that the seller is responsible for the goods until they are loaded onto the ship at the port of shipment. After that, the buyer is responsible for the goods. The FOB price includes the cost of the goods, the loading charges, and the transport charges to the port of shipment.

Reasons for using FOB Basis:
The following are the reasons why the IMF recommends using the FOB basis:

1. Reflects the value of the goods: The FOB value represents the value of the goods at the point of export. It includes the cost of production and the profit margin of the exporter.

2. Reflects the export performance of the country: The FOB value reflects the export performance of the country as it takes into account the value of the goods produced and exported from the country.

3. Consistency across countries: The FOB basis provides consistency across countries in terms of how they report their trade data. This makes it easier to compare trade data between countries.

Conclusion:
In conclusion, the IMF Balance of Payment Manual recommends that imports and exports of goods should be presented on the FOB basis. This is because the FOB basis reflects the value of the goods, the export performance of the country, and provides consistency across countries.

 A situation under which a low rate of growth combines with the rise in general price level is known as : 
  • a)
    Inflation
  • b)
    Deflation
  • c)
    Stagflation
  • d)
    Demand-pull inflation
Correct answer is option 'C'. Can you explain this answer?

Shruti answered
Stagflation is a combination of stagnant economic growth, high unemployment, and high inflation. It's an unnatural situation because inflation is not supposed to occur in a weak economy. Consumer demand drops enough to keep prices from rising. Slow growth in a normal market economy prevents inflation and it mainly occurs when the government or central banks expand the money supply at the same time they constrain supply.

When external debt of a country is more than its interest obligation, it is _______:
  • a)
    Debt Trap 
  • b)
    Liquidity trap 
  • c)
    Entry trap 
  • d)
    None
Correct answer is option 'A'. Can you explain this answer?

Alok Mehta answered
External debt is the portion of a country's debt that was borrowed from foreign lenders including commercial banks, governments or international financial institutions. These loans, including interest, must usually be paid in the currency in which the loan was made. In order to earn the needed currency, the borrowing country may sell and export goods to the lender's country.

Which one of the following is the correct descending order of the three most populous states of India (2011)?
  • a)
    Uttar Pradesh, Maharashtra, Bihar
  • b)
    Maharashtra, Bihar, West Bengal
  • c)
    Uttar Pradesh, Bihar, West Bengal
  • d)
    Uttar Pradesh, West Bengal, Bihar
Correct answer is option 'A'. Can you explain this answer?

According to the State Census 2011, the most populated state in India is Uttar Pradesh with a population of 19.96 crores. Second comes Maharashtra with a population of 112,374,333 and thirdly Bihar having population 104,099,452.

When poverty is taken in relative term and is related to the distribution of income consumption expenditure its called :
  • a)
    Law line poverty 
  • b)
    Absolute poverty 
  • c)
    Relative poverty 
  • d)
    None 
Correct answer is option 'C'. Can you explain this answer?

Ruchi Mishra answered
Relative poverty refers to the measurement of poverty based on the distribution of income or consumption expenditure within a society. It is a concept that takes into account the economic inequality present in a country or region. In contrast to absolute poverty, which focuses on the basic needs and survival of individuals, relative poverty considers the standard of living in comparison to others in society.

Explanation:

1. Definition of Relative Poverty:
- Relative poverty is a measure of poverty that takes into account the distribution of income or consumption expenditure within a society.
- It compares the living standards of individuals or households to the average or median income or expenditure in a given population.

2. Comparison with Absolute Poverty:
- Absolute poverty is a measure of poverty that focuses on the basic needs and survival of individuals.
- It sets a minimum threshold below which individuals or households are considered to be in poverty.
- Relative poverty, on the other hand, looks at the standard of living in relation to others in society and considers the income or consumption levels relative to the average or median.

3. Understanding Relative Poverty:
- Relative poverty recognizes that poverty is not solely determined by the lack of basic necessities, but also by the social context and inequality within a society.
- It acknowledges that even if individuals or households have their basic needs met, they may still experience poverty if they are significantly worse off compared to others in terms of income or consumption.

4. Measurement and Indicators of Relative Poverty:
- Relative poverty is measured using various indicators, such as the Gini coefficient, which measures income inequality within a population.
- Other indicators include the poverty gap ratio, which measures the average shortfall of individuals or households below the poverty line, and the at-risk-of-poverty rate, which measures the percentage of individuals or households with income or consumption below a certain threshold.

5. Policy Implications:
- The measurement of relative poverty helps policymakers understand the extent of income inequality within a society.
- It provides insights into the distribution of resources and can inform policies aimed at reducing poverty and promoting social justice.

In conclusion, relative poverty is a concept that relates to the distribution of income or consumption expenditure within a society. It considers the standard of living in relation to others in society and helps policymakers understand income inequality and develop appropriate interventions.

In India, inflation is measured by:
  • a)
    Consumer price index
  • b)
    Agriculture index
  • c)
    Industrial index
  • d)
    Whole sale price index
Correct answer is option 'D'. Can you explain this answer?

Kalyan Ghoshal answered
Inflation Measurement in India

In India, inflation is measured primarily through the Wholesale Price Index (WPI), also known as the Wholesale Price Index (WPI). The correct answer to this question is option 'D' - Wholesale Price Index.

Explanation:

1. Introduction to Inflation Measurement:
Inflation refers to the sustained increase in the general price level of goods and services in an economy over a period of time. It is an important economic indicator as it affects the purchasing power of individuals and the overall stability of the economy. To measure inflation accurately, various indices are used that track price changes in different sectors of the economy.

2. The Wholesale Price Index (WPI):
The Wholesale Price Index (WPI) is a widely used measure of inflation in India. It measures the average change in the price of goods at the wholesale level over a period of time. It is calculated by the Office of Economic Adviser, Ministry of Commerce and Industry, Government of India.

3. Calculation of WPI:
The WPI is calculated based on the price changes of a basket of goods and services that represent the wholesale market. It includes commodities like food, fuel, manufactured products, and others. The prices of these commodities are collected from selected wholesale centers and markets across the country. The WPI is calculated on a weekly basis and is based on the base year 2011-12.

4. Significance of WPI:
The WPI is considered an important measure of inflation in India because it reflects price changes at the wholesale level, which have a cascading effect on retail prices. It provides an indication of inflationary pressures in the economy and is used by policymakers, economists, and analysts to monitor and analyze inflation trends. The Reserve Bank of India (RBI) also takes the WPI into account while formulating monetary policy.

5. Limitations of WPI:
While the WPI is a widely used measure of inflation in India, it has some limitations. Firstly, it does not capture price changes at the retail level, which directly affect consumers. Secondly, it gives more weightage to manufacturing products and less weightage to primary products, which may not accurately reflect the price changes in the economy. To overcome these limitations, the Consumer Price Index (CPI) is also used as a measure of inflation in India, which focuses on retail prices.

In conclusion, the Wholesale Price Index (WPI) is the primary measure of inflation in India. It reflects price changes at the wholesale level and is widely used by policymakers and economists to monitor and analyze inflation trends in the country.

 In rural areas in India, the nature of unemployment is:
  • a)
    Disguised
  • b)
    Seasonal
  • c)
    Both A & B
  • d)
    Voluntary 
Correct answer is option 'A'. Can you explain this answer?

Jayant Mishra answered
Disguised unemployment or hidden unemployment is a kind of unemployment where some people seem to be employed but are actually not. ( clear from the word disguise which means attire to hide one’s identity)
This type usually occurs when there is overemployment in a pirticular work. Even if some are removed , the efficiency of work is improved rather than getting reduced.
Example 1- Agriculture sector in rural areas- when 10 members of a farmer family employed on small farm plot when 5 are enough. Those extra 5 members are actually unemployed rather than being employed.
Example 2- service sector in urban areas- if in a family all 10 members are working in a shop or small family business when 5 are enough to work efficiently then those extra 5 members are actually unemployed.

Which plan set a target of reduction in poverty ratio to 19.3 percent by 2007?
  • a)
    Fifth Plan
  • b)
    Second Plan
  • c)
    Eigth Plan
  • d)
    Tenth plan 
Correct answer is option 'D'. Can you explain this answer?

Jayant Mishra answered
Tenth Five-Year Plan may refer to: The Tenth Five-Year Plan (People's Republic of China), began in 2001 and ended in 2005. The Tenth Five-Year Plan (India), began in 2002 and ended in 2007. The Tenth Five-Year Plan (Soviet Union), began in 1976 and ended in 1980.

 Identify the correct statements:
  • a)
    The problem of unemployment and poverty are not inter-related.
  • b)
    The birth rate in India is high because of low incidence of poverty
  • c)
    The problem of poverty has been solved in India
  • d)
    None of these. 
Correct answer is option 'D'. Can you explain this answer?

Ruchi Mishra answered
The correct statement is option 'D': None of these.

Explanation:
Unemployment and poverty are inter-related:
- Unemployment and poverty are closely linked as unemployment often leads to poverty and vice versa. When individuals are unable to find employment or earn a sufficient income, they are more likely to fall into poverty. Similarly, individuals living in poverty often face barriers to employment, such as lack of education or skills, limited access to opportunities, and discrimination.
- Unemployment and poverty create a vicious cycle, where individuals in poverty struggle to find employment, and the lack of employment opportunities perpetuates poverty.

The birth rate in India is high due to various factors, not low incidence of poverty:
- The birth rate in India is influenced by multiple factors, including cultural and social norms, lack of awareness and access to contraception, high infant mortality rate, desire for larger families, and government policies.
- While poverty may indirectly impact the birth rate by limiting access to healthcare and family planning resources, it is not the sole or primary determinant of the high birth rate in India.

The problem of poverty has not been solved in India:
- Poverty remains a significant challenge in India, with a large proportion of the population living below the poverty line. Despite progress in reducing poverty rates over the years, a significant number of people still face extreme poverty and lack access to basic necessities such as food, healthcare, education, and sanitation.
- Various government initiatives and programs have been implemented to address poverty, but the problem is far from being completely solved.

In conclusion, the correct statement is option 'D': None of these. Unemployment and poverty are inter-related, the birth rate in India is influenced by various factors, and the problem of poverty has not been completely solved in India.

The rapid growth phase of Indian population was lying between which of the following time periods?
  • a)
    1901 – 1921
  • b)
    1921 – 1951
  • c)
    1951 – 1981
  • d)
    1981 – 2001
Correct answer is option 'C'. Can you explain this answer?

Aarya Sharma answered
The correct answer is option 'C' - 1951 to 1981.

Explanation:

The rapid growth phase of Indian population refers to the period when the population of India experienced a significant increase at a fast pace. This growth phase can be attributed to various factors such as improvements in healthcare, reduction in mortality rates, and better living conditions.

Here is a detailed explanation of each time period mentioned in the options:

a) 1901 - 1921:
During this period, India was under British rule, and the population growth rate was relatively slow. The growth rate was affected by various factors such as famines, epidemics, and poor healthcare facilities.

b) 1921 - 1951:
This period witnessed a gradual increase in population, but the growth rate was still not very high. The country was going through significant political and social changes, including the struggle for independence from British rule.

c) 1951 - 1981:
This was the period of rapid population growth in India. Several factors contributed to this growth phase. Firstly, there were advancements in medical science and healthcare facilities, leading to a significant decline in mortality rates. This resulted in a higher number of people surviving and reaching reproductive age. Additionally, there were improvements in living conditions, access to education, and better employment opportunities. This led to an increase in the average life expectancy and higher fertility rates.

d) 1981 - 2001:
While the population growth rate remained high during this period, it started to show signs of stabilization. The government implemented various family planning programs and awareness campaigns to control population growth. The focus shifted towards population control measures and creating awareness about the benefits of smaller families.

Overall, the rapid growth phase of the Indian population occurred between 1951 and 1981, during which the population of the country experienced a significant increase due to improvements in healthcare, living conditions, and other socio-economic factors.

Which among the following was used as the motto for Census of India 2011?
  • a)
    Our Future, Our Country
  • b)
    Our Country, Our Census
  • c)
    People of India, Our Census
  • d)
    Our Census, Our Future
Correct answer is option 'D'. Can you explain this answer?

Mehul Saini answered

Our Census, Our Future

The motto for Census of India 2011 was "Our Census, Our Future". This motto emphasizes the importance of the census in shaping the future of the country. Let's break down the significance of this motto:

Importance of the Census:
- The census provides crucial data on the population, demographics, and socio-economic characteristics of the country.
- This data is used for planning and policy-making in various sectors such as health, education, infrastructure, and social welfare.

Ownership and Participation:
- By stating "Our Census", the motto instills a sense of ownership and responsibility among the people towards the census.
- It encourages active participation in the census process, as the data collected directly impacts the future of the nation.

Looking towards the Future:
- The inclusion of "Our Future" in the motto highlights the forward-looking approach of the census.
- It signifies that the data collected will not only reflect the present state of the country but also guide future development and growth.

Community Engagement:
- The motto "Our Census, Our Future" aims to engage communities at all levels in the census process.
- It stresses the collective responsibility of every individual towards ensuring an accurate and comprehensive census.

In conclusion, the motto "Our Census, Our Future" encapsulates the essence of the census as a tool for shaping the future of the nation and underscores the importance of active participation and ownership by the people.

Upward Revision of administered prices results in _________.
  • a)
    Demand-Pull inflation
  • b)
    Cost-Pull inflation
  • c)
    Stagflation
  • d)
    Deflation
Correct answer is option 'B'. Can you explain this answer?

Alok Mehta answered
Upward revision of administered prices
There are a number of commodities and services in public sector (like bus service, railways, etc.) for which the price levels are administered by the Government. The Government keeps raising these prices from time to time in order to cover the losses in the public sector. This also results in cost-push inflation.

What type of unemployment is found in India?
  • a)
    Structural Unemployment
  • b)
    Seasonal unemployment
  • c)
    Disguise unemployment
  • d)
    All of the above
Correct answer is option 'D'. Can you explain this answer?

Anu Sen answered
Types of Unemployment in India:

India is a developing country and hence, it is facing various types of unemployment. The major types of unemployment in India are discussed below:

1. Structural Unemployment:

Structural unemployment occurs due to a mismatch between the skills of the workforce and the requirements of the job market. India has a large population with low levels of education and skills, which results in a shortage of skilled labor.

2. Seasonal Unemployment:

Seasonal unemployment is caused due to the seasonal nature of some industries. For example, agriculture is a major industry in India, but it is seasonal in nature. This leads to unemployment during the off-season.

3. Disguised Unemployment:

Disguised unemployment is a situation where people appear to be employed, but their contribution to the economy is negligible. In India, disguised unemployment is prevalent in the agricultural sector, where too many people work on small plots of land, resulting in low productivity.

Conclusion:

India is facing various types of unemployment due to various factors such as low levels of education and skills, a mismatch between the skills of the workforce and the requirements of the job market, and the seasonal nature of some industries. It is important for the government to take steps to tackle these issues and promote job creation to reduce unemployment in the country.

In which plan period, the integrated Rural Development Programme (IRDP) was started in India 
  • a)
    Fifth
  • b)
    Sixth 
  • c)
    Seventh 
  • d)
    Eighth.
Correct answer is option 'A'. Can you explain this answer?

Dhruv Mehra answered
The Sixth Five Year Plan 22 (1980-85), aimed at the removal of poverty, growth, modernization, self-reliance and social justice. In order to attain allround development in rural areas, one single integrated programme called ‘Integrated Rural Development Programme’ (IRDP) was conceived. The programme has been in operation since 1978-79 and has been made the centrepiece of the anti-poverty strategy in the Sixth Five Year Plan. IRDP is regarded as a multi-level, multi-sector and multi-section concept of rural development. As a multi-level concept, it encompasses rural development at various levels such as viable cluster of village communities, districts and blocks. As a multi-sector concept, it embraces development in various sectors and sub-sectors of the rural areas such as agriculture, industry, education,
health and transportation etc. As a multi-section concept, it encompasses socio-economic development of various sections and sub-sections of rural population such as small farmers, marginal farmers, landless and agricultural labourers, artisans, Scheduled Castes and Scheduled Tribes. Besides IRDP, employment generation programmes like, National Rural Employment Programme (NREP), Rural Land less Employment Guarantee Programme (RLEGP), Economic Rehabilitation of Rural Poor (ERRP), Training of Rural Youth for Self-Employment (TRYSEM), Self-Employment for the Educated Unemployed Youth (SEEVY), Development of Women and Children in RuralAreas (DWCRA) etc., were also introduced during the said plan period.

  Of the major 12 ports, ____________ has been the top traffic handler for the last five years.
  • a)
    Paradip.
  • b)
    Cochin.
  • c)
     Kandla.
  • d)
    Mumbai.
Correct answer is option 'C'. Can you explain this answer?

Kalyan Ghoshal answered
There are several ways to address climate change:

1. Transition to renewable energy sources: Reduce reliance on fossil fuels by investing in and promoting renewable energy sources such as solar, wind, and hydropower. This will help reduce greenhouse gas emissions and decrease the impact of climate change.

2. Increase energy efficiency: Improve energy efficiency in buildings, transportation, and industrial processes. This can be achieved through the use of energy-efficient technologies, better insulation, and adopting sustainable practices.

3. Reduce deforestation and promote reforestation: Protect existing forests, which act as carbon sinks, and implement programs to replant trees in deforested areas. This will help absorb carbon dioxide from the atmosphere and mitigate climate change.

4. Enhance transportation systems: Encourage the use of public transportation, promote electric and hybrid vehicles, and invest in infrastructure that supports active transportation such as walking and cycling. This will reduce greenhouse gas emissions from the transportation sector.

5. Promote sustainable agriculture: Encourage sustainable farming practices that reduce the use of fossil fuel-based inputs, protect soil health, and minimize emissions of nitrous oxide and methane, which are potent greenhouse gases.

6. Raise awareness and educate the public: Increase awareness about climate change and its impacts, and promote sustainable behavior changes through education campaigns. This can include initiatives that encourage recycling, reducing waste, and conserving resources.

7. Support international cooperation: Collaborate with other countries to develop and implement global agreements and policies to address climate change. This can involve sharing knowledge, technology, and financial resources to support climate mitigation and adaptation efforts.

8. Adapt to the changing climate: Develop strategies and policies to adapt to the impacts of climate change, such as rising sea levels, increased heatwaves, and extreme weather events. This may include building resilient infrastructure, implementing early warning systems, and improving disaster preparedness.

It is important to note that addressing climate change requires a multi-faceted approach and the involvement of individuals, governments, businesses, and organizations at all levels.

Which factors influence the density distribution of population in India most profoundly?
1. Amount of rainfall
2. Fertility of soils
3. Distribution of minerals
4. Cultural factors
  • a)
    1 and 4
  • b)
    2 and 4
  • c)
    1 and 2
  • d)
    1 and 3
Correct answer is option 'C'. Can you explain this answer?

Bhavya Bajaj answered
The correct answer is option 'C' - 1 and 2. The factors that influence the density distribution of population in India most profoundly are the amount of rainfall and the fertility of soils. Let's delve into the details:

1. Amount of rainfall:
- Rainfall is a critical factor that determines the availability of water for agriculture, which is the primary occupation for a large portion of the Indian population.
- Regions with adequate rainfall are more suitable for agriculture, leading to higher population density as people settle in these areas to cultivate crops.
- In contrast, areas with low rainfall face water scarcity and are less suitable for agriculture, resulting in lower population density.

2. Fertility of soils:
- Fertile soils play a crucial role in determining the agricultural productivity of a region.
- Areas with fertile soils provide better conditions for crop growth and higher yields, attracting agricultural activities and settlements.
- The fertility of soils is influenced by factors such as the presence of organic matter, nutrient content, and soil composition, which vary across different regions of India.
- Regions with highly fertile soils tend to have higher population density as they offer better agricultural opportunities.

Other factors mentioned in the options, such as the distribution of minerals and cultural factors, do have some influence on the density distribution of population in India but not as profoundly as rainfall and soil fertility.

3. Distribution of minerals:
- The distribution of minerals has an impact on economic activities and industrial development in specific regions.
- However, mineral-rich areas may not necessarily have a high population density as mineral extraction activities often require fewer workers compared to agriculture.
- Moreover, mineral-rich areas may face challenges in terms of accessibility, infrastructure, and environmental concerns, limiting their potential for settlement and population growth.

4. Cultural factors:
- Cultural factors, such as language, religion, and traditions, can influence the settlement patterns and distribution of population to some extent.
- However, cultural factors alone are not the most significant determinants of population density.
- Cultural factors may play a role in shaping regional preferences for settlement but are secondary to environmental factors like rainfall and soil fertility.

In conclusion, while factors like the distribution of minerals and cultural factors do have some influence on the density distribution of population in India, the amount of rainfall and the fertility of soils are the most profound factors. These environmental factors directly affect agricultural productivity and determine the suitability of regions for settlement and agriculture, thereby playing a crucial role in shaping population distribution in the country.

‘Population dividend’ refers to
  • a)
    total number of population
  • b)
    youthful age structure of a population
  • c)
    relatively high proportion of experienced aged people
  • d)
    migration from richer region to poorer region
Correct answer is option 'B'. Can you explain this answer?

Sai Joshi answered
Understanding 'Population Dividend'
The term 'population dividend' refers to the economic growth potential that can result from shifts in a population's age structure. Specifically, it highlights the advantages of having a youthful age structure.
Youthful Age Structure
- A youthful population implies that a larger percentage of individuals are in the working-age group (typically ages 15-64).
- This demographic profile can lead to increased productivity and economic output, as there are more people available to work and contribute to the economy.
Economic Benefits
- With a higher proportion of working-age individuals, countries can experience rapid economic growth due to increased labor supply.
- More workers mean more innovation, greater consumption, and higher tax revenues, which can facilitate investments in infrastructure and social services.
Social Implications
- A youthful population can also lead to enhanced social dynamics, encouraging creativity, entrepreneurship, and social mobility.
- However, it is crucial that there are adequate resources, such as education and healthcare, to support this population and harness its potential.
Challenges
- While the population dividend presents opportunities, it also poses challenges. Countries must ensure that there are sufficient jobs and social support systems to prevent youth unemployment and social unrest.
- If not managed well, this demographic advantage can turn into a demographic burden, leading to issues like increased unemployment and underutilization of the workforce.
In summary, option 'B' accurately describes 'population dividend' as it emphasizes the benefits of a youthful age structure, showcasing its potential to significantly impact economic growth and development when properly harnessed.

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