Chapter 1

Question 1

What is economic dualism

Answer 1

Unbalanced and unintegrated economy characterised by co-existence of traditional and modern sector, chiefly export oriented.

Question 2

Examples of dualism

Answer 2

Financial, geographical, technological, organisational. Existence of banking sector and money lending in rural areas

Question 3

India’s growth rate from 1992 to 2015

Answer 3

6.5%

Question 4

Demographic dividend means?

Answer 4

The rise in the relative share of the working age population in an economy. India’s working age population is 63.4% from 2011 census

Question 5

What is dependency ratio?

Answer 5

The ratio of children(0-14 years) and elderly(65+) to those in working age(15-64)

Question 6

Literacy rate of India

Answer 6

73% according to 2011 census. Developed countries below 5%

Question 7

HDI and GII(gender inequality index) in India?

Answer 7

HDI: bottom 25%
GII : bottom 20%
of all countries
Lowest in all BRICS countries. Lower than Sri Lanka. Ranks 130th.

Question 8

What is mixed economy

Answer 8

Existence of both public and private sector

Question 9

What is Planning Commission called now?

Answer 9

Niti Aayog

Question 10

How to accelerate growth and development? 3 points

Answer 10

Reduce inflation by putting in place a framework for monetary policy, fiscal consolidation and food reforms

Tax and expenditure reforms like Goods and Services Tax(GST), Direct Taxes Code(DTC) and a more predictable tax administration. Expenditure reforms like new designs for subsidies, go er spending on public goods

Legal and regulatory framework needed for a market economy