Economics – Hard Level – GK Questions

Introduced in 2011-12, the Effective Revenue Deficit excludes the revenue expenditure that goes towards the creation of durable assets (like rural roads or housing). It provides a more accurate picture of the government's unproductive borrowing, which is used merely to finance current consumption.

Charged expenditures, which include the salaries of the President, Supreme Court/High Court judges, and the CAG, as well as debt servicing, are automatically met from the Consolidated Fund. They can be discussed by Parliament but cannot be voted upon to ensure the independence of constitutional authorities.

The IBC was passed in 2016 to consolidate and amend the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms, and individuals. It shifted the legal framework from a 'debtor-in-possession' to a 'creditor-in-control' regime.

Introduced to manage excess liquidity, the SDF allows banks to park surplus funds with the RBI without providing collateral. It is usually set 25 basis points below the Repo Rate, establishing the lower bound of the monetary policy operating corridor.

The NSO, operating under the Ministry of Statistics and Programme Implementation (MoSPI), launched the PLFS in 2017. It was designed to provide more frequent and reliable estimates of labor force indicators like unemployment and labor force participation rates in both rural and urban areas.

Considered an unfair trade practice under WTO rules.

Makes domestic goods cheaper and more competitive abroad.

Historically estimated by Planning Commission using Tendulkar/Rangarajan methods.

Occurs when revenue expenditure exceeds revenue receipts.

Prices are still rising, but at a slower pace than before.

People tend to hoard good money and circulate bad money.

Measures the overall change in price level in the economy.

Marginal Rate of Technical Substitution.

Explains price rigidity in an oligopolistic market.

Uses the average of initial and final values.

Point elasticity uses calculus/derivative at a specific point.