Test: General Awareness (Economy) - Software Development MCQ

The correct answer is ​All of the above.

Key Points

• Rainbow revolution is an integrated development of crop cultivation, horticulture, forestry, fishery, poultry, animal husbandry, and food processing industry.

Additional Information

•  Yellow Revolution:
  • ​The Yellow Revolution is concerned with oilseeds production.
  • This revolution means the cultivation of mustard as a part of crop rotation.
  • The Father of the Yellow Revolution is Sam Pitroda.
  • It was launched in 1986.
• White Revolution:
  • ​Operation Flood is called the White Revolution in India.
  • The program to increase the production of milk is called White Revolution.
  • Father of White Revolution in India - Verghese Kurien.
  • Milkman of India - Verghese Kurien.
• Green Revolution:
  • ​Father of the Green Revolution- Norman Borlaug.
  • Father of the Green Revolution in India- M.S. Swaminathan.
  • It was launched in 1965.
  • This revolution led to an increase in food grain production.

• Blue Revolution:
  • The Blue Revolution was first launched in India as the 'Nili Kranti Mission' during the 7th Five Year Plan (1985-1990).
  • Fish Farmers Development  Agency (FFDA) was sponsored by the central government.
  • The Intensive Marine Fisheries Program was subsequently launched during the 8th Five Year Plan (1992-97).
  • As a result, the fishing harbors were later established over time in Vishakhapatnam, Kochi, Tuticorin, Porbandar, and Port Blair.
  • The scheme was restructured by the Ministry of Agriculture and Farmers Welfare along with the Department of Animal Husbandry, Dairying & Fisheries into 'Blue Revolution' by merging it with the other ongoing schemes.
  • The scheme was controlled by the National Fisheries Development Board (NFDB).

The correct answer is Twelfth Five year plan

Key Points

• Planning Commission was replaced by a new institution – NITI AAYYOG on January 1, 2015, with emphasis on ‘Bottom–Up’ approach to envisage the vision of Maximum Governance, Minimum Government, echoing the spirit of ‘Cooperative Federalism.
• 12^th Five-year plan was underway from 2012-2017.
• Administrative Setup
  • Chairperson: Prime Minister
  • Vice-Chairperson: To be appointed by the Prime-Minister
  • Governing Council: Chief Ministers of all states and Lt. Governors of Union Territories.
  • Regional Council: To address specific regional issues, Comprising Chief Ministers and Lt. Governors Chaired by Prime Minister or his nominee.
  • Ad-hoc Membership: 2 members in ex-officio capacity from leading Research institutions on a rotational basis.
  • Ex-Officio membership: Maximum four from the Union council of ministers to be nominated by the Prime minister.
  • Chief Executive Officer: Appointed by Prime-minister for a fixed tenure, in rank of Secretary to Government of India.
  • Special Invitees: Experts, Specialists with domain knowledge nominated by Prime-minister.

Additional Information

The correct option is  7^th.

Key Points

• In the 7^th five-year plan Jawahar Rojgar Yojna was launched.
• Jawahar Rozgar Yojana was launched in 1989 by the Rajiv Gandhi government.
• It was implemented upon the merger of the National Rural Employment Programme (NREP) and Rural Landless Employment Guarantee Programme (RLEGP).
• The Seventh Five Year Plan (1985-1990) also laid impetus on the development of small-scale and food processing industries
• The Seventh Five Year Plan also encouraged 'Social Justice'.

Additional Information

All Five Year Plans:

The correct answer is Encourage export.

• Devaluation of a currency occurs when the currency's value in foreign exchange is low.
• For example, devaluation of Indian currency means one rupee has less worth compared to other foreign currencies.
• It makes the exports (nation’s goods) more affordable in the global market.
• It helps in the country's economic growth.
• Devaluation makes imports more expensive and creates demand for exports.

The correct answer is The Commission for Agricultural Costs and Prices.

• Based on the recommendations of the Commission for Agricultural Costs and Prices, the Department of Agriculture and Co-operation, Government of India, declares Minimum Support Prices (MSP) for 22 crops before their sowing seasons.

Key Points

• The CACP is an attached office of the Ministry of Agriculture and Farmers Welfare, formed in 1965.
• It is a statutory body that offers separate reports recommending prices for Kharif and Rabi seasons.

Additional Information

• Cost of farming at three levels:
  • A2: All the types of cash expenditure to create the crop like seeds, manure, chemicals, labour costs, fuel costs and irrigation costs.
  • A2+FL: It includes A2 plus an imputed value of unpaid family labour.
  • C2: Under C2, the estimated land rent and the cost of interest on the money taken for farming are added to A2 and FL.
• On 18^th November 2004, the Union government formed the National Commission on Farmers (NCF) with MS Swaminathan as its chairman.
• The main purpose of the committee was to come up with a sustainable farming system, make farm commodities cost-competitive and more profitable.

The correct answer is Seven Five Year Plan.

Key Points

• Seventh Five-Year Plan(1985-1990):
  • ​The Seventh Plan aims at extending the green revolution to new areas through its emphasis on raising the productivity of rice in the eastern region and rainfed and dryland agriculture. This should lead to faster growth in agricultural output in areas that, in the national context, are economically backward.
    • The induction of new technologies and the pursuit of economic growth should not be at the expense of the environment. In the long run, environmentally sound policies are also developmentally sound ones.
    • Provide gainful employment to the unemployed, particularly women and youth,
    • Raise the earnings of those already employed in low-paid jobs.
    • Step-up the productivity and earnings of those who are self-employed workers.
    • Improve the access of the urban poor to basic amenities like education, health care, sanitation, and safe drinking water.

Additional Information

The correct answer is 1950-51.

Key Points

• Economic Survey is a report of the government on the state of the economy of the country during the last one year.
• It is prepared by the Department of Economic Affairs, under the Ministry of Finance.
• Chief Economic Advisor releases the Economic Survey.
• At first, it was released along with the Union Budget but later it was separated from the budget in 1964 to give a better understanding of the budget proposals.
• It is released one day before the Union Budget.
• Now it is presented in 2 volumes.
• It has no constitutional backing. Its findings and suggestions are not binding on the government.
• First Chief Economic Advisor to the government was Mr. J.J. Anjaria.
• The current Chief Economic Advisor is Dr. V. Anantha Nageswaran.

The correct answer is option 1, i.e., Fixed Exchange rate

Key Points

• Fixed Exchange rate: A fixed exchange rate is a regime applied by a government or central bank ties the country's currency official exchange rate to another country's currency or the price of gold. The purpose of a fixed exchange rate system is to keep a currency's value within a narrow band.

Additional Information

• Managed exchange rate: Under the managed exchange rate system, the exchange rate is predominantly determined in the foreign exchange market by the supply of and demand for a currency. The government intervenes only occasionally to influence the exchange rate when it considers it to be necessary.
• Mixed Economy: A mixed economic system is a system that combines aspects of both capitalism and socialism. A mixed economic system protects private property and allows a level of economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve social aims. According to neoclassical theory, mixed economies are less efficient than pure free markets, but proponents of government interventions argue that the base conditions required for efficiency in free markets, such as equal information and rational market participants, cannot be achieved in practical application. 

The correct answer is Centralization.

Key Points

• Indian economy experienced an economic crisis in 1991.
• The foreign currency assets declined to such an extent that it was barely enough to finance two weeks of imports.
• The annual rate of inflation reached 16.7% in August 1991.
• The government expenditure was greater than its revenue due to defence expenditure, subsidies, interest on loans, etc.
  • The positive effects of the socialistic pattern of society were on the verge of decline.
  • On this ground, it was necessary to bring new changes to the economy. Hence, the Government of India adopted a New Economic Policy (NEP) in 1991.
  • It is also known as LPG i.e.
    1. Liberalization
    2. Privatization
    3. Globalization.
• The process of new economic policy which started in 1985 got momentum in 1991.

Additional Information

Liberalization:

• Liberalization refers to 'economic freedom' or 'freedom for economic decision'.
• It means producers, consumers, and owners of factors of production, are free to take the decision to promote their self-interest.
• Indian government accepted policies suggested by the IMF for economic liberalization.
  • Macroeconomic Stabilisation :
    • Inflation control
    • Balance of Payment adjustment
    • Currency devaluation
  • Structural Adjustment Programs :
    • Trade and capital inflow reforms
    • Industrial reforms
    • Tax reforms
    • Fiscal reforms
    • Monetary and financial reforms
    • Privatization

Privatization: 

• Privatization means the transfer of ownership from the public to the private sector.
• It refers to a process that reduces the involvement of the public sector and increases that of the private sector in economic activities.
• Measures :
  • Disinvestment
  • De-reservation policy
  • Establishment of BIFR (Board of Industrial and Financial Reconstruction)
  • Creation of National Renewal Board (NRB)
  • Navratna Status

Globalization:

• Globalization means integrating the economy of a country with the world economy.
• Measures : 
  • Removal of quantitative restrictions
  • Encouragement to Foreign Capital
  • Convertibility of Rupee
  • Foreign collaboration
  • Long term trade Policy
  • Encouragement to Exports

The correct answer is ​1965.

Key Points

• Green Revolution:
  • ​Father of the Green Revolution in worldwide- Norman Borlaug.
  • Father of the Green Revolution in India- M.S. Swaminathan.
  • This revolution led to an increase in food grain production.
  • In the year 1965, the government of India launched the Green Revolution.
  • India adopted a new strategy in agriculture, which resulted in the Green Revolution especially in the production of wheat and rice.
  • The movement of the green revolution was a great success and changed the country's status from a food-deficient economy to one of the world's leading agricultural nations.