Which of the following statements is/are the key feature(s) of India’s New Economic Reforms (1991)?
Show Hint
- Liberalization of the economy
- Privatization of public sector enterprises
- Complete nationalization of all industries
- Globalization and increased foreign direct investment
The Correct Option is A, B, D
Solution and Explanation
The New Economic Reforms initiated in India in 1991 were primarily aimed at improving the country's economic growth and integration with the global economy.
(A) is correct: Liberalization refers to the reduction of government restrictions in various areas, including trade, investment, and industry. This was a key feature of the 1991 reforms.
(B) is correct: Privatization involved the transfer of public sector enterprises to private ownership. The reforms aimed at reducing the role of government in the economy and promoting private sector participation.
(C) is incorrect: The reforms did not involve the complete nationalization of all industries. In fact, the trend was towards privatization, not nationalization.
(D) is correct: Globalization and increased foreign direct investment (FDI) were also central to the 1991 reforms, which aimed at opening up India's economy to the global market.
Top Questions on Economics
Consider the following Harrod-Domar growth equation: \[ \frac{s}{\theta} = g + \delta \] where \( s \) is the saving rate, \( \theta \) is the capital-output ratio, \( g \) is the overall growth rate, and \( \delta \) is the capital depreciation rate. If \( \delta = 0 \) and \( s = 20% \), then to achieve \( g = 10% \), the capital-output ratio will be ________ (in integer).
Let \( Y \) be income, \( r \) be the interest rate, \( G \) be government expenditure, and \( M_s \) be money supply. Consider the following closed economy IS-LM equations with a fixed general price level (\( \bar{P} \)):
IS equation: \[ Y = 490 + 0.6Y - 4r + G \] LM equation: \[ \frac{M_s}{\bar{P}} = 20 + 0.25Y - 10r \] If \( G = 330 \) and \( \frac{M_s}{\bar{P}} = 500 \), then the equilibrium \( Y \) is ________ (round off to one decimal place).- Consider a two-person exchange economy where two goods, \( x \) and \( y \), are available in limited quantities of 50 and 100, respectively. The preferences of the two persons, Anil and Binod, are given by the utility functions: \[ U_{{Anil}}(x_{{Anil}}, y_{{Anil}}) = x_{{Anil}}^{0.4} y_{{Anil}}^{0.6} \] \[ U_{{Binod}}(x_{{Binod}}, y_{{Binod}}) = x_{{Binod}}^{0.6} y_{{Binod}}^{0.4} \] If they decide to share good \( y \) equally among themselves, the amount of good \( x \) Anil receives is ______________ (in integer).
- Which of the following statements is/are NOT CORRECT?
Consider the two scenarios for a small open economy based on the Mundell-Fleming IS-LM model with floating exchange rate and perfect capital mobility.
Where \( Y \) is aggregate income, \( C \) is aggregate consumption, \( I \) is investment, \( r^* \) is the world interest rate, \( G \) is government expenditure, \( T \) is taxes, \( NX \) is net exports, \( e \) is exchange rate, \( M \) is money supply, and \( P^* \) is general price level. Given the relationships:
\( I \) has a negative relationship with \( r^* \),
\( NX \) depends negatively on both \( e \) and \( Y \),
\( P^* \) is fixed.
Which of the following statements is/are CORRECT?
Questions Asked in GATE XH-C1 exam
- Consider a square field ABCD. The diagonal AC is 50 meter. The cost of laying grass in the field is Rs. 5 per square-meter. The total cost for laying grass in the field ABCD is Rs. ________ (rounded off to two decimal places).
In the following figure, four overlapping shapes (rectangle, triangle, circle, and hexagon) are given. The sum of the numbers which belong to only two overlapping shapes is ________
- Many countries are facing water shortage crises in the past few years. A report of the United Nations has named India among the worst countries for poor quality of water. The report ranks 122 countries according to the quality of their water as well as their commitment to improve the situation. Some countries in Europe are considered the worst because of the quality of its groundwater. Rain failed in some parts of India in the past. The vast areas of Rajasthan, Madhya Pradesh, and Andhra Pradesh were affected by severe drought. People without water turn desperate and violent. Consequently, the food godowns were attacked in some of the states. Based on the details given in the passage, which of the following option(s) is/ are correct statement(s)?
- Anand, Hari, and Chris are engaged in one of the three types of occupations – clerk, teacher, and plumber, not necessarily in that order. Each person is assigned only one type of occupation. No two or more persons can be assigned the same type of occupation. Clerk is Chris’s cousin. Hari lives next door to the plumber. Anand, who knows more facts than the teacher, has to drive more than 1 hour to reach Hari’s home. Identify each of the person’s correct type of occupation, and accordingly, which one of the following options is correct?
Suppose, your last year taxable income was Rs. 22000. Due to hike in salary, your taxable income this year is Rs. 34200. The details for tax calculation are given in the table below.
Consider the appropriate tax slab corresponding to your income. What is theadditional amount of tax you need to pay this year compared to last year?