All questions of Government Budget and the Economy for Commerce Exam

Budgetary policies and their implementation

Budgetary policies refer to the measures taken by the government to manage the economy through fiscal policy. These policies are aimed at achieving macroeconomic stability, economic growth, and social welfare. The implementation of budgetary policies involves several steps, from the preparation of the budget to its execution.

Role of the government

The government plays a central role in implementing budgetary policies. The government is responsible for preparing and presenting the budget to the parliament, where it is debated and approved. Once the budget is approved, the government is responsible for executing the policies outlined in the budget.

The government uses various tools to implement budgetary policies, including taxation, government spending, and borrowing. The government may increase taxes to reduce inflation and decrease taxes to stimulate economic growth. Similarly, government spending may be increased or decreased to achieve economic objectives. Finally, the government may borrow money to finance its budget deficit or repay its debts.

Conclusion

In conclusion, budgetary policies are implemented by the government through fiscal policy. The government plays a central role in the preparation and execution of the budget, using various tools to achieve economic objectives.

Repayment of loan is also capital expenditure because it reduces liability. These expenditures are met out of capital receipts of the government including capital transfers from rest of the world.

Option B budgetary policy is a right answer ,since in the objectives of budget there is Economic equality or Reducing Inequality of Income and Wealth and the function says the Government uses fiscal instruments of taxation and subsidies to improve the distribution of income and wealth in the Economy. Higher taxes can be imposed by the government on income earned by the rich and also on the goods consumed by them. Inorder to reduce their personal income, equitable distribution of income is a way to Social Justice. It is also known as distributive function of the government.

Capital expenditure or capital expense is the money a company spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, or land.

In the context of India's rapidly growing population, the country's traditional agricultural practices yielded insufficient food production. By the 1960s, this low productivity led India to experience food grain shortages that were more severe than those of other developing countries. Agricultural technological advancements offered opportunities to increase productivity.

A Reuters report citing sources suggested the government was looking to sell 10-15 percent of the country's largest insurer to improve public finances.

Small scale industries depended upon the business’s capital and labour. This definition is still used to demarcate between small, medium and large-scale industries.

Explanation:

Assertion (A) and Reason (R) Analysis:
- Assertion (A): GDP indicates the size of an economy.
- Reason (R): A higher GDP indicates higher economic activity.

Correct Explanation:
- Both assertion (A) and reason (R) are true because GDP does indicate the size of an economy and a higher GDP typically reflects higher economic activity.
- However, reason (R) is not the correct explanation of assertion (A) because while a higher GDP often signifies increased economic activity, it does not directly explain why GDP represents the size of an economy. GDP is a measure of the total value of all goods and services produced within a country's borders, making it an indicator of economic performance and size rather than solely economic activity.
Therefore, the correct choice is option 'B' - Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).

The green revolution thereby was intended to overcome food shortages in India by increasing the yields of agricultural produce with the help of better irrigation systems, pesticides, fertilizers, agricultural machinery, etc but also principally with the help of crop intensification focused on more resistant high-yielding crop varieties. This was supplemented with socio-economic policies that made credit available to farmers more readily and developmental extension officers were to disseminate knowledge to farmers in employing the new technologies. Among the Indian states that is said to have benefited most from the green revolution in India is the state of Punjab, where food-grains production increased from 5.37 million tonnes in 1965-66 to 32 million tonnes in 1995-96. Food-grains production in Punjab in 1995-96 accounted for 21 per cent of total food-grains produced in India (Singh, 2016). However, although yields have substantially increased in Punjab, this is not the complete story.

1. Ensure safe and fair access to vaccines across regions within countries through effective coordination mechanisms between national and subnational governments, for example by sharing dose delivery projections. This is particularly important as all levels of governments must anticipate the surge in supply and ensure that the logistics and infrastructure is ready as vaccine deliveries accelerate. Involve subnational governments in vaccination campaigns to ensure faster and better territorial coverage. Involving local actors, who are better informed about the local population and infrastructure, is essential to successfully reach people that need vaccines first (e.g. the elderly, people with pre-existing illnesses and healthcare workers) and relieving the pressure on the healthcare system.

The 1956 policy in injunction with the IDA act did just reverse of what it was supposed to do. The licensing policy of the government favoured big business houses who were in better position to raise huge amount of capital and had the better management skills to run the industry. They were also able to secure financial assistance from development and finance institutions. Further, since there was no proper system of allocation of licenses in place; pre-empting of licensing by authorities to select people or groups happened due to an array of reasons. Overall, the freedom of entry into industry was restricted due to licensing and this resulted in the concentration of economic power in few individuals.

Understanding the Assertion and Reason
The assertion (A) states that the 1956 policy continued to be a fundamental economic policy for a significant duration, while the reason (R) explains that the goal of this policy was to establish a socialistic pattern of society in India.
Assertion (A) Analysis
- The 1956 policy, often referred to as the Second Five-Year Plan, emphasized heavy industry and aimed to foster a mixed economy.
- This policy laid the groundwork for India's economic planning and development strategies for many years.
- It reflects a commitment to creating a balanced economic environment that integrates both public and private sectors.
Reason (R) Analysis
- The reason provided highlights the objective of establishing a socialistic pattern in society as outlined in the 1956 policy.
- This objective was pivotal in shaping various economic reforms and legislations that followed, influencing both public and private sectors.
Connection Between Assertion and Reason
- Both the assertion and reason are true and connected.
- The assertion is validated by the reason as the 1956 policy's emphasis on a socialistic pattern directly influenced its long-term significance in India's economic landscape.
Conclusion
- Therefore, both assertion (A) and reason (R) are true, and reason (R) effectively explains why assertion (A) holds true.
- This leads us to the correct choice: option 'A', where both statements are true and the reason is a correct explanation of the assertion.

Budget shows fiscal policy of the government for the year to come.

Assertion: Tariffs and quotas in the economic policy post-Independence were used to assist domestic industries.

Reason: Our planners wanted to use foreign exchange for importing luxury goods.

Explanation:

Tariffs and quotas were implemented in the economic policy post-Independence to protect and promote domestic industries. This assertion is true because the government wanted to encourage the growth of domestic industries and reduce reliance on imported goods. By imposing tariffs and quotas on imported goods, the government aimed to make domestic products more competitive and stimulate the growth of local industries.

The reason given, that our planners wanted to use foreign exchange for importing luxury goods, is false. The objective of implementing tariffs and quotas was not to prioritize the import of luxury goods but to protect domestic industries and reduce dependence on imports in general. The government wanted to promote self-sufficiency and develop domestic industries to boost the economy.

The correct answer is option 'C' because the assertion is true, but the reason given is false. The reason does not explain the purpose of implementing tariffs and quotas in the economic policy post-Independence accurately.

In summary:
- Assertion (A): Tariffs and quotas in the economic policy post-Independence were used to assist domestic industries.
- Reason (R): Our planners wanted to use foreign exchange for importing luxury goods.

- The assertion is true because tariffs and quotas were indeed used to support domestic industries.
- The reason is false because the objective was not to prioritize the import of luxury goods but to promote self-sufficiency and reduce dependence on imports in general.

Heavy Capital Requirement There was a need for a large amount of investment in infrastructure and heavy and basic industries for economic development Private sector in India at the eve of independence did not have the capacity to invest such a big amount. Private entrepreneurs were not prepared to bear the risks involved in these projects which had long gestation periods along with high capital investment. Thus, the government played the leading role to provide the basic framework of heavy industries and infrastructure through the public sector to facilitate the private sector.

Capital receipts are a non-recurring incoming cash flow into your business, which leads to the creation of a liability (a debt to be paid in the future) and a decrease in company assets (resources that lead to capital gain)

Direct taxes are levied on individuals and companies by the country's supreme tax body. Direct taxes are directly paid by those on whom it is imposed. For instance, taxpayers directly pay income tax, property tax, tax on assets and gifts to the government.

Transfer payment. In economics, a transfer payment (or government transfer or simply transfer) is a redistribution of income and wealth (payment) made without goods or services being received in return. These payments are considered to be non-exhaustive because they do not directly absorb resources or create output.

Capital Receipts: Explanation of Option B

Capital receipts are the inflow of funds that are received by the government in the form of capital or non-recurring receipts. These receipts are not a part of regular revenue receipts of the government. Capital receipts can be in the form of loans, borrowings, sale of assets like land, buildings, machinery, etc.

Liabilities are the obligations or debts that are owed by an individual or an organization. When the government receives capital receipts, it creates a liability for itself. This is because the government has to repay the loans and borrowings in the future. The sale of assets also creates a liability for the government as it has to provide compensation for the assets sold.

Hence, the correct answer to the given question is option B – Capital receipts create liability for the government.

Advantages of Capital Receipts

Capital receipts have the following advantages for the government:

1. Capital receipts help the government to raise funds for long-term investment projects like infrastructure, education, health, etc.

2. Capital receipts provide a source of funds to the government without affecting the revenue position of the government.

3. Capital receipts can help the government to reduce the fiscal deficit by reducing the reliance on revenue receipts.

4. Capital receipts can also help the government to reduce the burden of interest payment on the revenue account.

Conclusion

Capital receipts are an important source of funds for the government. They can help the government to finance long-term investment projects without affecting its revenue position. However, the government should be cautious while raising capital receipts as they create a liability for the government. The government should ensure that the funds raised through capital receipts are utilized for productive purposes and repayment obligations are met on time.

The given question is related to the missing number in a sequence. Let's try to solve it step by step.

Step 1: Analyzing the sequence

The given sequence is:

, / ? (2020)

We need to find the missing number in the sequence. To do that, we need to analyze the given sequence.

The first thing we notice is that there are some symbols in the sequence. These symbols may represent some arithmetic operations or mathematical concepts.

We also notice that the sequence has only four numbers, which means that the missing number must be one of these four numbers.

Step 2: Finding the pattern

To find the missing number in the sequence, we need to find the pattern in the given sequence.

The first symbol in the sequence is a comma (,). This symbol may represent subtraction or addition. However, we don't have any other number to perform any operation with, so we can't determine its meaning.

The second symbol in the sequence is a forward slash (/). This symbol may represent division or fractions. However, we don't have any other number to perform any operation with, so we can't determine its meaning.

The third symbol in the sequence is a backward slash (\). This symbol may represent multiplication or inverse operations. However, we don't have any other number to perform any operation with, so we can't determine its meaning.

The fourth symbol in the sequence is a question mark (?). This symbol may represent an unknown value or variable. This is the missing number that we need to find.

The last number in the sequence is 2020. This number may or may not have any significance in finding the missing number.

Step 3: Using options to find the missing number

The given options are:

a) 1 2
b) 4
c) 1 3
d)2, 3, 4

We can eliminate option B because it's a single number, and we need to find a sequence of numbers.

We can eliminate option A because it's a sequence of two numbers, and we need to find a sequence of four numbers.

We can eliminate option C because it's a sequence of two numbers, and we need to find a sequence of four numbers.

Option D has a sequence of three numbers, which may or may not be the correct answer. However, we can use these numbers to find the missing number.

If we consider the sequence 2, 3, 4, we notice that these numbers are consecutive and increasing by 1. This could be the pattern in the given sequence.

If we assume that the comma (,) represents subtraction and the forward slash (/) represents division, we can perform the following operations:

, / ? (2020)

=> 2020 / 4 - 3 = ?

=> 505 - 3 = 502

Therefore, the missing number in the sequence is 502.

Step 4: Verifying the answer

We can verify our answer by performing the same operations with the other options.

For option A: 2020 / 2 - 1 = 1009 (incorrect)
For option C: 2020 / 3 - 1 = 673.333 (incorrect)
For option D: 2020 / 4 - 2 = 503 (incorrect)

Therefore, the correct answer is option D, which

Assertion (A): Trade policy relates with protection from imports in two forms: tariffs and quotas.
Reason (R): Quotas specify the quality of goods which can be imported.

Explanation:
The trade policy of a country is a set of rules and regulations that govern its international trade. It includes measures taken by the government to protect domestic industries from foreign competition. Two common forms of trade protection are tariffs and quotas.

Tariffs:
- A tariff is a tax imposed on imported goods. It increases the price of imported goods, making them less competitive compared to domestic products.
- Tariffs are used to protect domestic industries by making imported goods more expensive, thus encouraging consumers to buy domestic products.
- The purpose of imposing tariffs is to restrict the quantity of imports and protect domestic producers from competition.

Quotas:
- A quota is a limit or restriction on the quantity of a specific good that can be imported into a country.
- Quotas specify the quantity or volume of goods that can be imported within a given period.
- The purpose of imposing quotas is to limit the quantity of imports and protect domestic industries from foreign competition.
- Quotas can be set based on the quality, quantity, or value of goods being imported.

Analysis:
The assertion states that trade policy relates to protection from imports through tariffs and quotas. This is true as both tariffs and quotas are measures used by governments to protect domestic industries from foreign competition.

The reason states that quotas specify the quality of goods that can be imported. This is incorrect as quotas do not specify the quality of goods, but rather the quantity or volume of goods that can be imported.

Conclusion:
- The assertion is true as trade policy does relate to protection from imports through tariffs and quotas.
- The reason is false as quotas do not specify the quality of goods that can be imported.
- Therefore, option C is the correct answer.

Import substitution is a strategy under trade policy that abolishes the import of foreign products and encourages production in the domestic market. The purpose of this policy is to change the economic structure of the country by replacing foreign goods with domestic goods.

Assertion and Reason:
- Assertion (A): This new Green Revolution is leading to foreign ownership over most of India's farmland, undermining farmers' interests.
- Reason (R): The New Green Revolution is driven by private (and foreign) interest—notably MNCs like Monsanto.

Explanation:
The Green Revolution refers to the significant increase in agricultural productivity that occurred in the 1960s and 1970s. It involved the introduction of high-yielding varieties of crops, chemical fertilizers, and pesticides. While the Green Revolution initially brought about positive changes in India's agricultural sector, there are concerns regarding the current form of the new Green Revolution.

Foreign Ownership of Farmland:
The assertion states that the new Green Revolution is leading to foreign ownership over most of India's farmland, undermining farmers' interests. This assertion is true as there is evidence to support it. Foreign companies and investors have been acquiring agricultural land in India, often through long-term leases or partnerships with local farmers. This trend of foreign ownership can lead to a loss of control and ownership for Indian farmers, making them vulnerable to exploitation and diminishing their interests.

Private and Foreign Interest in the New Green Revolution:
The reason states that the new Green Revolution is driven by private (and foreign) interest, notably multinational corporations (MNCs) like Monsanto. This reason is also true and provides an explanation for the assertion. The new Green Revolution is characterized by the dominance of large corporations and their influence over agricultural practices. MNCs like Monsanto, which specialize in agricultural biotechnology, have a significant presence in India's agricultural sector. Their focus on profit and control over genetic resources can undermine the interests of small-scale farmers and lead to a concentration of power in the hands of multinational corporations.

Conclusion:
Both the assertion and reason are true, and the reason provides a correct explanation for the assertion. The new Green Revolution has resulted in foreign ownership of farmland in India, which undermines the interests of farmers. This trend is driven by private (including multinational) interests, as evidenced by the presence of companies like Monsanto.

The proportion of GDP contributed by the industrial sector increased in the period from 11.8 per cent in 1950-51 to 24.6 per cent in 1990-91. The progress of the Indian economy during the first seven plans was impressive indeed.

Understanding Capital Gains Tax
Capital Gains Tax (CGT) is classified as a direct tax because it is levied on the profit earned from the sale of an asset. Here’s a detailed explanation of why it falls under this category:
Definition of Direct Tax
- Direct taxes are those taxes that are imposed directly on an individual or organization’s income or wealth.
- The taxpayer is responsible for paying the tax directly to the government.
Characteristics of Capital Gains Tax
- It is applied to the profit from the sale of assets, such as stocks, real estate, or other investments.
- The tax rate can vary based on the holding period of the asset, which distinguishes it from other types of taxes.
Application of Capital Gains Tax
- In the context of equity investments, the tax is imposed on gains exceeding a specified limit (e.g., ₹1 lakh) after holding the investment for more than one year.
- This tax is paid directly by the individual or entity realizing the gain, confirming its classification as a direct tax.
Comparison with Other Taxes
- Unlike indirect taxes, such as sales tax or value-added tax (VAT), which are collected by intermediaries and passed on to the government, direct taxes are paid by the taxpayer directly.
In summary, Capital Gains Tax is categorized as a direct tax because it is levied directly on the profits earned from asset sales, highlighting the direct relationship between the taxpayer and the government in terms of tax liability.

Government can collect tax from the rich and exempt the poor from income tax. Money so collected can be spent on providing free services to the poor. It will reduce disposable income of the rich and increase that of the poor.

Revenue Deficit refers to the excess of total revenue expenditure over total revenue receipts. It means that the government. will not be able to meet its revenue expenditure from its revenue receipts.

To measure time, we can consider the motion of various celestial bodies. Let's discuss each option and its significance in measuring time.

(i) सूर्य (Sun):
The Sun is the primary source of light and heat for our solar system. It plays a crucial role in measuring time. The Earth completes one rotation on its axis in approximately 24 hours, which determines a day. This rotation creates day and night, and the cycle repeats. Therefore, the time taken by the Earth to complete one rotation is used to measure a day.

(ii) चंद्रमा (Moon):
The Moon is Earth's only natural satellite and has a significant influence on the measurement of time. The Moon takes approximately 27.3 days to complete one orbit around the Earth, which is known as a lunar month or a sidereal month. This lunar month is often used in calendars to determine the length of a month.

(iii) पृथ्वी (Earth):
While the Earth itself is not used to directly measure time, its rotation and revolution around the Sun are essential for determining the length of a day and a year, respectively. As mentioned earlier, the Earth takes around 24 hours to complete one rotation, and this forms the basis for measuring a day. Similarly, the Earth takes approximately 365.25 days to complete one revolution around the Sun, and this is considered a year.

(iv) अन्य ग्रहनी (Other celestial bodies):
Apart from the Sun, Moon, and Earth, other celestial bodies like planets, asteroids, and comets can also be used to measure time. By observing their motion and calculating their orbital periods, we can determine specific units of time. For example, the orbital period of Mars is around 687 Earth days, which can be used to define a Martian year.

Therefore, all the options mentioned are significant in measuring time. The Sun, Moon, and Earth play a direct role in determining units of time like a day, month, and year. Other celestial bodies can also be used to measure time by observing their motion and calculating their orbital periods. Hence, the correct answer is option (D) - ऊपर के सभी.

Government redistributes income and wealth with the help of government budget. it imposes high tax on rich to absorb extra purchasing power from the economy and give it to the poor in the form of subsidies. This reduces the gap between the rich and the poor and inequality is decreased and redistribution of income and wealth is achieved with the help of government budget.

Direct Tax Definition

Direct tax is a type of tax that is imposed on individuals or entities based on their income, wealth, or property. It is called a direct tax because the liability to pay the tax and the incidence of the tax fall directly on the same person or entity. In other words, the person who is liable to pay the tax is also the one who bears the burden of the tax.

Explanation of Option 'A'

Option 'A' states that direct tax is a tax whose liability to pay and incidence lie on the same person. This means that the person who is legally obligated to pay the tax is the one who ultimately bears the economic burden of the tax.

Significance and Examples

Direct taxes play a crucial role in the government's revenue generation as they directly contribute to the funding of public services and government projects. Some common examples of direct taxes include income tax, property tax, wealth tax, and capital gains tax.

Income Tax:
- Income tax is a direct tax imposed by the government on the income earned by individuals and businesses.
- The liability to pay income tax lies on the individuals or businesses who earn income above a certain threshold set by the government.
- The incidence of income tax falls on the same individuals or businesses, as they are the ones who have to bear the economic burden of the tax.

Property Tax:
- Property tax is another example of a direct tax where the liability to pay and the incidence of the tax lie on the same person.
- Property tax is imposed on individuals or entities who own real estate or property.
- The property owner is responsible for paying the tax and bears the economic burden of the tax.

Wealth Tax:
- Wealth tax is a direct tax imposed on individuals or entities based on their net wealth.
- The liability to pay wealth tax and the incidence of the tax lies on the same person or entity.
- The person or entity with a higher net wealth is obligated to pay a higher amount of tax.

Conclusion

In conclusion, direct tax is a type of tax where the liability to pay and the incidence of the tax lie on the same person or entity. This means that the person or entity who is legally obligated to pay the tax is also the one who bears the economic burden of the tax. Direct taxes, such as income tax, property tax, and wealth tax, play a significant role in generating government revenue and funding public services.

Direct Tax:
A direct tax is a tax levied directly on individuals or entities, such as individuals and businesses, by the government. The burden of the tax is borne by the person or entity on whom it is levied. Direct taxes are typically based on the income or wealth of the taxpayer and are usually collected through withholding or self-assessment.

Example of a Direct Tax:
The example of a direct tax mentioned in the question is Income Tax.

Explanation:
Income tax is a direct tax imposed by the government on the income earned by individuals and entities within a country. It is calculated based on the individual's or entity's taxable income, which is the total income minus allowable deductions and exemptions. The tax rates for income tax can vary depending on the income level and the tax bracket the taxpayer falls into.

Characteristics of Income Tax as a Direct Tax:

1. Levied on Individuals and Entities: Income tax is imposed on both individuals and entities, such as corporations and partnerships, based on their respective income.

2. Borne by the Taxpayer: The burden of income tax is borne by the taxpayer, who is required to pay the tax on their income. It directly affects their financial resources.

3. Based on Income: Income tax is calculated based on the income earned by the taxpayer. Different sources of income, such as employment income, business income, and investment income, may be subject to different tax rates or deductions.

4. Collected through Withholding or Self-Assessment: Income tax can be collected through two main methods. Firstly, employers withhold a portion of employees' income as tax and remit it to the tax authorities on their behalf. Secondly, individuals and entities are also required to file annual tax returns and self-assess their income tax liability.

5. Tax Rates and Brackets: Income tax rates and brackets determine the amount of tax to be paid based on the taxpayer's income level. Higher income levels are generally subject to higher tax rates.

In conclusion, income tax is an example of a direct tax as it is levied directly on individuals and entities, based on their income, and the burden of the tax is borne by the taxpayer.

Assertion (A): Capitalist economies foster self-interest and push economic growth.
Reason (R): Market economies make the best use of available resources for economic growth.

Explanation:
Capitalist Economies Foster Self-Interest and Push Economic Growth
- Capitalism is an economic system where the means of production and distribution are privately owned and operated for profit.
- In capitalist economies, individuals and businesses are driven by self-interest and the pursuit of profit.
- Self-interest motivates individuals to work hard, innovate, and take risks to improve their own economic well-being.
- As individuals pursue their self-interest, the economy as a whole benefits from increased productivity, economic growth, and higher standards of living.
- Capitalist economies encourage competition, which leads to efficiency and innovation as businesses strive to offer better products and services at competitive prices.
- The profit motive in capitalism serves as an incentive for individuals and businesses to invest, expand, and create jobs, further stimulating economic growth.

Market Economies Make the Best Use of Available Resources for Economic Growth
- Market economies are characterized by the free exchange of goods and services through voluntary transactions between buyers and sellers.
- In a market economy, prices are determined by supply and demand, and resources are allocated based on market forces rather than central planning.
- The price mechanism in a market economy signals the relative scarcity and value of goods and services, guiding producers and consumers in their decision-making.
- Market economies allow resources to be allocated efficiently based on consumer preferences and the profitability of different goods and services.
- The competition among producers in a market economy encourages the efficient use of resources as businesses strive to minimize costs and maximize profits.
- The decentralized decision-making in a market economy ensures that resources are directed towards the most productive and valued uses, promoting economic growth.

Conclusion
Both the assertion and the reason are true. Capitalist economies do foster self-interest and push economic growth, and market economies do make the best use of available resources for economic growth. However, the reason does not fully explain why capitalist economies foster self-interest and push economic growth, so the correct answer is option B.

कैटेलोनिया का स्वायत्त समुदाय स्पेन के उत्तर-पूर्वी कोने में एक त्रिकोणीय क्षेत्र में है। यह फ्रांस और अंडोरा द्वारा उत्तर की ओर, पूर्व में भूमध्य सागर, दक्षिण में वालेंसिया का स्वायत्त समुदाय और पश्चिम में आरागॉन का स्वायत्त समुदाय है। क्रीमिया गणराज्य, आधिकारिक तौर पर यूक्रेन का हिस्सा, काला सागर और आज़ोव सागर के बीच यूक्रेन के दक्षिण से फैला एक प्रायद्वीप पर स्थित है। इसे संकीर्ण केर्च जलडमरूमध्य द्वारा रूस से पूर्व में अलग किया जाता है। मिंडानाओ, द्वीप, फ़िलीपींस में दूसरा सबसे बड़ा (ल्यूज़ोन के बाद) द्वीपसमूह के दक्षिणी भाग में, बोहोल, फिलीपीन, सेलेब्स और सुलु समुद्रों से घिरा हुआ है। ओरोमिया इथियोपिया के नौ जातीय आधारित क्षेत्रीय राज्यों में से एक है, जो 284,538 वर्ग किलोमीटर को कवर करता है।

Modernization, in sociology, the transformation from a traditional, rural, agrarian society to a secular, urban, industrial society.

Economists have found that poor nations can progress only if they have a good industrial sector. Industry provides employment which is more stable than the employment in agriculture; it promotes modernisation and overall prosperity. It is for this reason that the five year plans place a lot of emphasis on industrial development.

Assertion (A): The need to obtain a license to start an industry was misused by big industrial houses.


Reason (R): A big industrialist would get a license not for starting a new firm but to prevent competitors from starting new firms.


The correct answer is option 'A' - Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).

Explanation:
To understand the given assertion and reason, let's break them down and analyze each one individually.

Assertion (A): The need to obtain a license to start an industry was misused by big industrial houses.
Industrial licensing refers to the process of obtaining permission from the government to start a new industry or expand an existing one. In many countries, including India, industrial licensing was prevalent in the past. The assertion states that big industrial houses misused the requirement of obtaining a license to start an industry.

This assertion is true. Big industrial houses often exploited the licensing system to their advantage. They used their influence, connections, and resources to obtain licenses easily, while smaller players faced significant hurdles and delays. This allowed big industrial houses to establish monopolies or oligopolies in certain sectors, limiting competition and maximizing their own profits.

Reason (R): A big industrialist would get a license not for starting a new firm but to prevent competitors from starting new firms.
The reason provides an explanation for the assertion. It states that big industrialists would obtain licenses not necessarily to start new firms but rather to hinder competitors from establishing new firms.

This reason is also true. Big industrial houses, by obtaining licenses, could prevent competitors from entering the market. The licensing process acted as a barrier to entry for new firms, as they had to go through bureaucratic procedures, fulfill certain criteria, and face potential delays. By controlling the licensing process, big industrialists could block potential competitors and maintain their dominance in the industry.

Conclusion:
In conclusion, both the assertion and reason are true. The need to obtain a license to start an industry was indeed misused by big industrial houses. They used their influence to easily obtain licenses, while smaller players faced difficulties. The licenses were not always obtained for starting new firms but rather to prevent competitors from entering the market.

Assertion Analysis
- The assertion states that in 1955, the Karve Committee recognized the potential of small-scale industries in fostering rural development.
- This is indeed true, as the committee aimed to enhance economic conditions in rural areas through the promotion of small-scale industries.
Reason Analysis
- The reason provided defines a small-scale industry in terms of the maximum investment allowed on the assets of a unit.
- This definition is also accurate, as small-scale industries are characterized by investment limits, which are crucial for their classification and development.
Relationship Between Assertion and Reason
- While both statements are true, the reason does not directly explain why small-scale industries can promote rural development.
- The assertion focuses on the role of small-scale industries in improving rural economies, while the reason merely provides a definition without addressing the implications of that definition on rural development.
Conclusion
- Therefore, the correct answer is option 'B': both the assertion and reason are true, but the reason is not the correct explanation for the assertion.
- The relationship between the two statements highlights the importance of understanding the broader context of economic development beyond mere definitions.

Explanation:

• Assertion (A): Inward Looking Trade Strategy is called Import Substitution.


• Reason (R): Instead of importing vehicles made in a foreign country, industries would be encouraged to produce them in India itself.

The correct answer is option 'A' - Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).

Explanation:

• The term Import Substitution means that a country tries to produce goods and services domestically rather than importing them from other countries. This helps in reducing the dependence on foreign countries and also helps in developing domestic industries.


• Inward Looking Trade Strategy is a policy where a country tries to focus on its domestic market rather than international markets. This policy involves reducing imports and increasing exports to boost the economy.


• In the given reason, it is stated that instead of importing vehicles made in a foreign country, industries would be encouraged to produce them in India itself. This is an example of import substitution where India is trying to produce vehicles domestically instead of importing them from other countries.


• Thus, both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).

Assertion (A): It is believed that small-scale industries are more 'labour intensive' i.e. they use more labour than the large-scale industries and, therefore, generate more employment.

Reason (R): These small-scale industries cannot compete with the big industrial firms.

The correct answer is option B: Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).

Explanation:

Labour Intensive:
- Small-scale industries are often referred to as 'labour intensive' because they rely more on manual labor in their production processes.
- Due to their limited capital and resources, small-scale industries tend to have smaller machinery and equipment, which require more human effort for production.
- This higher reliance on labor leads to a higher level of employment generation in small-scale industries compared to large-scale industries.

Reason for Assertion:
- The reason given in the statement (R) is that small-scale industries cannot compete with big industrial firms.
- This reason is not the correct explanation for the assertion (A) that small-scale industries are more labor-intensive and generate more employment.
- While it is true that small-scale industries may face challenges in competing with large-scale industries in terms of economies of scale, market share, and financial resources, it does not directly explain why small-scale industries are more labor-intensive.

Summary:
- The assertion (A) that small-scale industries are more labor-intensive and generate more employment is true.
- However, the reason (R) given that small-scale industries cannot compete with big industrial firms is not the correct explanation for this assertion.
- Therefore, the correct answer is option B: Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).

An indirect tax is a tax collected by an intermediary from the person who bears the ultimate economic burden of the tax. The intermediary later files a tax return and forwards the tax proceeds to government with the return.

Fiscal Deficit refers to the excess of total expenditure over total receipts excluding borrowings. It indicates borrowing requirements of the government.

Finance Minister Nirmala Sitharaman on Monday announced that her government will privatise two public sector banks (PSBs) and one general insurance company as well.