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Economics
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The growth rate of the population is highest in which of the following country?

[3] Development Experience of India – a Comparison with Neighbours
Chapter: [3] Development Experience of India – a Comparison with Neighbours
Concept: undefined >> undefined

The introduction of Economic Reform in Pakistan took place in year ______.

[3] Development Experience of India – a Comparison with Neighbours
Chapter: [3] Development Experience of India – a Comparison with Neighbours
Concept: undefined >> undefined

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Read the given case study and answer the questions

Traditional economic theory viewed capital in physical terms only. Economists during the late 1950s based on the aggregate production function found that the standard measures of simple labour and physical capital were incapable of explaining adequately the rapid post-war growth. Speculations on what was missing were diverse. Some argued that the principal explanation lays in the lack of appropriate adjustments for improvement in the quality of physical capital and the embodiment of technical progress in that capital. Others suggested that the most important omission pertains to the organisational advance or a vaguely specified human capital. The residual of unexplained growth was at first ascribed to technology by Solow, but later, the residual was defined to include improvements in the quality of capital can the investment in human beings. Human capital is formed with improvement in skills education. Improved health and education is merit as well as a public good and is associated with a large number of externalities which are often indirect, indivisible and non-quantifiable.

Which of the following gives the definition of public goods?

[2] Current Challenges Facing Indian Economy
Chapter: [2] Current Challenges Facing Indian Economy
Concept: undefined >> undefined

Read the given case study and answer the questions

Traditional economic theory viewed capital in physical terms only. Economists during the late 1950s based on the aggregate production function found that the standard measures of simple labour and physical capital were incapable of explaining adequately the rapid post-war growth. Speculations on what was missing were diverse. Some argued that the principal explanation lays in the lack of appropriate adjustments for improvement in the quality of physical capital and the embodiment of technical progress in that capital. Others suggested that the most important omission pertains to the organisational advance or a vaguely specified human capital. The residual of unexplained growth was at first ascribed to technology by Solow, but later, the residual was defined to include improvements in the quality of capital can the investment in human beings. Human capital is formed with improvement in skills education. Improved health and education is merit as well as a public good and is associated with a large number of externalities which are often indirect, indivisible and non-quantifiable.

Consider the situation of 2 countries – A and B. Country A has invested more towards the
technological progress whereas Country B has invested more towards expanding its military
network and arms. To Solow, which country would go faster?

[2] Current Challenges Facing Indian Economy
Chapter: [2] Current Challenges Facing Indian Economy
Concept: undefined >> undefined

Read the given case study and answer the questions

Traditional economic theory viewed capital in physical terms only. Economists during the late 1950s based on the aggregate production function found that the standard measures of simple labour and physical capital were incapable of explaining adequately the rapid post-war growth. Speculations on what was missing were diverse. Some argued that the principal explanation lays in the lack of appropriate adjustments for improvement in the quality of physical capital and the embodiment of technical progress in that capital. Others suggested that the most important omission pertains to the organisational advance or a vaguely specified human capital. The residual of unexplained growth was at first ascribed to technology by Solow, but later, the residual was defined to include improvements in the quality of capital can the investment in human beings. Human capital is formed with improvement in skills education. Improved health and education is merit as well as a public good and is associated with a large number of externalities which are often indirect, indivisible and non-quantifiable.

In the context of the above paragraph, the ‘residual’ factor include ______.

[2] Current Challenges Facing Indian Economy
Chapter: [2] Current Challenges Facing Indian Economy
Concept: undefined >> undefined

Read the following text carefully and answer the following question:

SINO-PAK FRIENDSHIP CORRIDOR

The China-Pakistan Economic Corridor (CPEC)  has deepened the decades-long strategic relationship between the two nations. But it has also sparked criticism for burdening Pakistan with mountains of debt and allowing China to use its debt-trap diplomacy to gain access to strategic assets of Pakistan.

The foundations of CPEC, part of China’s Belt and Road Initiative, were laid in May 2013. At the time, Pakistan was reeling under weak economic growth. China committed to play an integral role in supporting Pakistan’s economy.

Pakistan and China have a strategic relationship that goes back decades. Pakistan turned to China at a time when it needed a rapid increase in external financing to meet critical investments in hard infrastructure, particularly power plants and highways. CPEC’s early harvest projects met this need, leading to a dramatic increase in Pakistan’s power generation capacity, bringing an end to supply-side constraints that had made rolling blackouts a regular occurrence across the country.

Pakistan leaned into CPEC, leveraging Chinese financing and technical assistance in an attempt to end power shortages that had paralyzed its country’s economy. Years later, China’s influence in Pakistan has increased at an unimaginable pace.

China As Pakistan’s Largest Bilateral Creditor: China’s ability to exert influence on Pakistan’s economy has grown substantially in recent years, mainly due to the fact that Beijing is now Islamabad’s largest creditor. According to documents released by Pakistan’s finance ministry, Pakistan’s total public and publicly guaranteed external debt stood at $44.35 billion in June 2013, just 9.3 percent of which was owed to China. By April 2021, this external debt had ballooned to $90.12 billion, with Pakistan owing 27.4 percent –$24.7 billion – of its total external debt to China, according to the International Monetary Fund (IMF).

Additionally, China provided financial and technical expertise to help Pakistan build its road infrastructure, expanding north-south connectivity to improve the efficiency of moving goods from Karachi all the way to Gilgit-Baltistan (POK). These investments were critical in better integrating the country’s ports, especially Karachi, with urban centers in Punjab and Khyber-Pakhtunkhwa provinces.

Despite power asymmetries between China and Pakistan, the latter still has tremendous agency in determining its own policies, even if such policies come at the expense of the long-term socioeconomic welfare of Pakistani citizens.
(https://www.usip.org/publications/2021/05/pakistans-growing-problem-its-china-economic-corridor - Modified)

Outline and discuss any two economic advantages of China Pakistan Economic Corridor (CPEC) accruing to the economy of Pakistan.

[3] Development Experience of India – a Comparison with Neighbours
Chapter: [3] Development Experience of India – a Comparison with Neighbours
Concept: undefined >> undefined

Read the following text carefully and answer the following question:

SINO-PAK FRIENDSHIP CORRIDOR

The China-Pakistan Economic Corridor (CPEC) has deepened the decades-long strategic relationship between the two nations. But it has also sparked criticism for burdening Pakistan with mountains of debt and allowing China to use its debt-trap diplomacy to gain access to strategic assets of Pakistan.

The foundations of CPEC, part of China’s Belt and Road Initiative, were laid in May 2013. At the time, Pakistan was reeling under weak economic growth. China committed to play an integral role in supporting Pakistan’s economy.

Pakistan and China have a strategic relationship that goes back decades. Pakistan turned to China at a time when it needed a rapid increase in external financing to meet critical investments in hard infrastructure, particularly power plants and highways. CPEC’s early harvest projects met this need, leading to a dramatic increase in Pakistan’s power generation capacity, bringing an end to supply-side constraints that had made rolling blackouts a regular occurrence across the country.

Pakistan leaned into CPEC, leveraging Chinese financing and technical assistance in an attempt to end power shortages that had paralyzed its country’s economy. Years later, China’s influence in Pakistan has increased at an unimaginable pace.

China As Pakistan’s Largest Bilateral Creditor: China’s ability to exert influence on Pakistan’s economy has grown substantially in recent years, mainly due to the fact that Beijing is now Islamabad’s largest creditor. According to documents released by Pakistan’s finance ministry, Pakistan’s total public and publicly guaranteed external debt stood at $44.35 billion in June 2013, just 9.3 percent of which was owed to China. By April 2021, this external debt had ballooned to $90.12 billion, with Pakistan owing 27.4 percent –$24.7 billion – of its total external debt to China, according to the International Monetary Fund (IMF).

Additionally, China provided financial and technical expertise to help Pakistan build its road infrastructure, expanding north-south connectivity to improve the efficiency of moving goods from Karachi all the way to Gilgit-Baltistan (POK). These investments were critical in better integrating the country’s ports, especially Karachi, with urban centers in Punjab and Khyber-Pakhtunkhwa provinces.

Despite power asymmetries between China and Pakistan, the latter still has tremendous agency in determining its own policies, even if such policies come at the expense of the long-term socioeconomic welfare of Pakistani citizens.

Analyse the implication of bilateral ‘debt-trap’ situation of Pakistan vis-a-vis the Chinese Economy.

[3] Development Experience of India – a Comparison with Neighbours
Chapter: [3] Development Experience of India – a Comparison with Neighbours
Concept: undefined >> undefined

‘GLF’ with respect to the People’s Republic of China referred to as ______.

[3] Development Experience of India – a Comparison with Neighbours
Chapter: [3] Development Experience of India – a Comparison with Neighbours
Concept: undefined >> undefined

From the set of the events given in column I and corresponding facts given in Column II, choose the correct pair of statements:

  COLUMN I   COLUMN II
i Dual Pricing A Economic Reforms of 1991
ii Setting up of Special Economic Zones in China B To attract foreign Direct Investment
iii Commune System C Backyard based Industrial production units
iv Great Proletarian Cultural Revolution D Collective Farming
[3] Development Experience of India – a Comparison with Neighbours
Chapter: [3] Development Experience of India – a Comparison with Neighbours
Concept: undefined >> undefined

Read the following statements carefully.

Statement 1: On-the-job trainings help to bridge a gap between theoretical concepts and practical experiences.

Statement 2: On-the-job trainings update the employees, with the latest changes in their work field.

In the light of the given statements, choose the correct alternative:

[2] Current Challenges Facing Indian Economy
Chapter: [2] Current Challenges Facing Indian Economy
Concept: undefined >> undefined

Read the following statements carefully.

Statement 1: Both India and Pakistan initiated their economic reforms without any external pressures.

Statement 2: Pakistan has successfully implemented the SEZ policy and reaped its benefits using the Export Promotion policy.

In the light of the given statements, choose the correct alternative:

[3] Development Experience of India – a Comparison with Neighbours
Chapter: [3] Development Experience of India – a Comparison with Neighbours
Concept: undefined >> undefined

Assertion (A): In the late 1970s, China’s population growth rate had sharply declined.

Reason(R): China has witnessed an increase in the proportion of elderly people owing to stringent family planning programmes.

[3] Development Experience of India – a Comparison with Neighbours
Chapter: [3] Development Experience of India – a Comparison with Neighbours
Concept: undefined >> undefined

Explain briefly the problems faced by Great leap forward campaign.

[3] Development Experience of India – a Comparison with Neighbours
Chapter: [3] Development Experience of India – a Comparison with Neighbours
Concept: undefined >> undefined

In order to tackle the problem of rising general price in an economy, government may come up with a surplus budget to achieve the budget objective of ______.

  1. reallocation of resources
  2. price stability
  3. redistribution of income
[4] Government Budget and the Economy
Chapter: [4] Government Budget and the Economy
Concept: undefined >> undefined

Benefits of physical capital accrue only to private entities, whereas human capital provides private as well as ______ benefits.

[2] Current Challenges Facing Indian Economy
Chapter: [2] Current Challenges Facing Indian Economy
Concept: undefined >> undefined

China initiated ______ in 1958, that aimed at industrializing the country on a massive scale.

[3] Development Experience of India – a Comparison with Neighbours
Chapter: [3] Development Experience of India – a Comparison with Neighbours
Concept: undefined >> undefined

Statement 1: Amongst India, China and Pakistan, China is the largest nation and has the higest population density.

Statement 2: One-child policy introduced in the late 1970s in china led to a considerable decline in the population growth rate.

In the light of the given statements, choose the correct alternative from the following:

[3] Development Experience of India – a Comparison with Neighbours
Chapter: [3] Development Experience of India – a Comparison with Neighbours
Concept: undefined >> undefined

"Expenditure on On-the-job training is an important means of human capital formation in an economy."
Give valid reasons to justify the given statement.

[2] Current Challenges Facing Indian Economy
Chapter: [2] Current Challenges Facing Indian Economy
Concept: undefined >> undefined

State any two features of public goods.

[4] Government Budget and the Economy
Chapter: [4] Government Budget and the Economy
Concept: undefined >> undefined

Under ______ in China, farmers and industrial units were required to buy and sell fixed quantities of inputs and outputs on the basis of prices fixed by the government and the rest were purchased and sold at market prices.

[3] Development Experience of India – a Comparison with Neighbours
Chapter: [3] Development Experience of India – a Comparison with Neighbours
Concept: undefined >> undefined
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