Explore topic-wise InterviewSolutions in Current Affairs.

The number of people residing in per square kilometer is called Density of population.

The correct answer is Nelson Mandela.

• Nelson Mandela:
  • Nelson Mandela was the country's first black head of state and the first elected in a fully representational democratic way. 
  • His government focused on demolishing the legacy of apartheid by stopping institutionalised racism and fostering racial reconciliation.

Important head of state in 2020:

The correct answer is the Yamuna.

• Delhi is situated at the bank of Yamuna river.
  • Yamuna is the second-largest tributary river of the Ganga and the longest tributary in India.
    • Originating from the Yamunotri Glacier.
    • It flows in Yamuna Nagar, Delhi, Agra, Prayagraj, Mathura, Noida, Etawah, Firozabad, Kalpi, Baghpat, Hamirpur.

List of important cities of India located on river banks:

The correct answer is Bankura, Birbhum.

• The soils of Bengal have been studied widely by different scholars.
• the convenient grouping of soils as:
  • Laterites.
  • Red Earths.
  • Tarai soils.
  • Alluvial soils.
  • Coastal soils.

• In West Bengal lateritic soils occur in the districts of Birbhum, Burdwan, and Paschim Medinipur.
• Red soil area extends into and includes the greater part of Santhal Parganas in Jharkhand, the Birbhum, Bankura district of West Bengal.
• Tarai soils cover the north part of West Bengal - Darjeeling, Cooch Bihar, hilly part of Jalpaiguri.
• In West Bengal, a portion of Murshidabad, Bankura, almost the whole tract known as the Rarh region are composed mainly of the old alluvium.
  • New alluvium covering Murshidabad, Nadia, Hoogly, Burdwan, and North 24 Parganas.
• Coastal saline soil covering South 24 Parganas, Howrah, and Midnapore (E). Soils are mostly heavy clay containing higher salts of sodium, magnesium, potassium with organic matter at different stages of decomposition.

Mixed Economy (Mixedism): 

1. In a mixed economy system both private and public sectors co-exist and work together towards economic development.

2. It is a combination of both capitalism and socialism. It tends to eliminate the evils of both capitalism and socialism. 

3. In these economies, resources are owned by individuals and the government. 

4. India, England, France and Brazil are the examples of mixed economy.

1. WTC headquarters located at New York, USA. 

2. It featured the landmark Twin Towers which was established on 4th April 1973. 

3. Later it was destroyed on 11th September 2001 by the craft attack. 

4. It brings together businesses involved in international trade from around the globe.

The correct answer is South Africa.

• South Africa’s Zozibini Tunzi has been crowned Miss Universe for the year 2019, beating more than 90 contestants, including Miss India, from around the globe.
• ,It hosted by American comic-turned-TV personality Steve Harvey, held at Tyler Perry Studios. 
• Zozibini Tunzi of South Africa was crowned as Miss Universe for the year 2019. It was the 68th miss universe pageant.
• She is also the first black women winner after Leila Lopes crowned in 2011.
• She is holding the title of Miss South Africa 2019.
• She is the third woman from South Africa to win Miss Universe.

Correct option is C) airport / for

Correct option is A) port / where

The following are the types of unemployment. 

Types of unemployment:

1. Cyclical Unemployment 

2. Frictional Unemployment 

3. Technical Unemployment 

4. Disguised Unemployment 

5. Seasonal Unemployment 

6. Educated Unemployment 

7. Structural Unemployment

1. Cyclical Unemployment:

• This unemployment exists during the downturn phase of trade cycle in the economy.
• In a business cycle during the period of recession and depression, income and output fall leading to widespread unemployment
• It is caused by deficiency of effective demand.
• Cyclical unemployment can be cured by public investment or expansionary monetary policy.

2. Seasonal Unemployment:

• This type of unemployment occurs during certain seasons of the year.
• In agriculture and agro based industries like sugar, production activities are carried out only in some seasons.
• These industries offer employment only during that season in a year. Therefore people may remain unemployed during the off season.
• Seasonal unemployment happens from demand side also; for example ice cream industry, holiday resorts etc.

3. Frictional Unemployment (Temporary Unemployment):

• Frictional unemployment arises due to imbalance between supply of labour and demand for labour.
• This is because of immobility of labour, lack of necessary skills, break down of machinery.
• shortage of raw materials etc.
• The persons who lose jobs and in search of jobs are also included under frictional unemployment.

4. Educated Unemployment:

• Sometimes educated people are underemployed or unemployed when qualification does not match the job.
• Faulty education system, lack of employable skills, mass student turnout and preference for white collar jobs are highly responsible for educated unemployment in India..

5. Technical Unemployment:

• Modem technology being capital intensive requires less labourers and contributes to technological unemployment.
• Now a days, invention and innovations lead to the adoption of new techniques there by the existing workers are retrenched.
• Labour saving devices are responsible for technological unemployment.

6. Structural Unemployment:

• Structural unemployment is due to drastic change in the structure of the society.
• Lack of demand for the product or shift in demand to other products cause this type of unemployment.
• For example rise in demand for mobile phones has adversely affected the demand for cameras, tape recorders etc.
• So this kind of unemployment results from massive and deep rooted changes in economic structure.

7. Disguised Unemployment:

• Disguised unemployment occurs when more people are than what is actually required.
• Even if some workers are withdrawn, production does not suffer.
• This type of unemployment is found in agriculture.
• A person is said to be disguisedly by unemployed if his contribution to output is less than what he can produce by working for normal hours per day.
• In this situation, marginal productivity of labour is zero or less or negative.

The word ‘statistics’ is used as Singular and Plural.

The formula for GNP = GDP + Net factor income from abroad
 or
 GNP = C + I + G + X + Z
 Where C is Consumption, I is investment, G is government, X is net exports, and Z is net income earned by domestic residents from overseas investments minus net income earned by foreign residents from domestic investments.

Capitalism, is total freedom and private ownership of means of production. Capitalistic economy is also termed as a free economy (Laissez faire, in Latin) or market economy where the role of the government is minimum and market determines the economic activities.

1. Sometimes educated people are underemployed or unemployed when qualification does not match the job. 

2. Faulty education system, lack of employable skills, mass student turnout and preference for white collar jobs are highly responsible for educated unemployment in India.

GNP at market prices means the gross value of final goods and services produced annually in a country plus net factor income from abroad 

(C + I + G + (X – M) + (R – P)

Social Indicators: Social indicators are normally referred to as basic and collective needs of the people. The direct provision of basic needs such as health, education, food, water, sanitation and housing facilities check social backwardness.

National Income is considered as an indicator of the economic well being of a country. The per capital income as an index of economic welfare suffers from limitations which are stated below:

1. The economic welfare depends upon the composition of goods and services provided. The greater the proportion of capital goods over consumer goods, the improvement in economic welfare will be lesser. 

2. Higher GDP with greater environmental hazards such as air, water and soil pollution will be little economic welfare. 

3. The production of war goods will show the increase in national output but not welfare. 

4. An increase in per capital income may be due to employment of women and children or forcing workers to work for long hours. But it will not promote economic welfare.

Difficulties in Measuring National Income:

1. Transfer payments 

2. Difficulties in assessing depreciation allowance 

3. Unpaid services 

4. Income from illegal activities 

5. Production for self-consumption and changing price 

6. Capital Gains 

7. Statistical problems.

1. Economic development is regarded as a process whereby there is an increase in the consumption of goods and services by individuals. 

2. From the welfare perspective, economic development is defined as a sustained improvement in health, literacy and standard of living.

The ASEAN, there are six “dialogue partners” which have been participating in its deliberations. They are China, Japan, India, South Korea, New Zealand and Australia.

Grand Trunk road consists of NH-1 and NH-2.

Merits of Capitalism 

1. Automatic Working: Without any government intervention, the economy works automatically. 

2. Efficient Use of Resources: All resources are put into optimum use. 

3. Incentives for Hard work: Hard work is encouraged and entrepreneurs get more profit for more efficiency. 

4. Economic Progress: Production and productivity levels are very high in capitalistic economies. 

5. Consumers Sovereignty: All production activities are aimed at satisfying the consumers. 

6. Higher Rates of Capital Formation: Increase in saving and investment leads to higher rates of capital formation. 

7. Development of New Technology: As profit is aimed at, producers invest on new technology and produce quality goods.

Average Propensity to Save (APS): The average propensity to save is the ratio of saving to income. APS is the quotient obtained by dividing the total saving by the total income. In other words, it is the ratio of total savings to total income. It can be expressed algebraically in the form of equation as under 

APS = S/Y 

Where, S = Saving; Y = Income

Secular Disequilibrium: The secular or long-run disequilibrium in BOP occurs because of long-run and deep seated changes in an economy as it advances from one stage of growth to another. In the initial stages of development, domestic investment exceeds domestic savings and imports exceed exports, as it happens in India since 1951.

Average Propensity to Consume: The average propensity to consume is the ratio of consumption expenditure to any particular level of income.” Algebraically it may be expressed as under:

APC = C/Y

Where, C = Consumption; Y = Income

Chennai port is situated on the eastern coast of India.

Ajmer town is famous for Religious.

The national highway No.3 joins Agra with Mumbai. 

The starting point of Keynes theory of employment and income is the principle of effective demand.  Effective demand denotes money actually spent by the people on products of industry. The money which entrepreneurs receive is paid in the form of rent, wages, interest and profit. Therefore effective demand equals national income.

Managed floating exchange rate is a mixture of a flexible and fixed exchange rate system.

1. Inflation is a consistent and appreciable rise in the general price level. 

2. In other words, inflation is the rate at which the general level of prices for goods and services is rising and consequently the purchasing power of currency is falling. 

3. “Too much of Money chasing too few goods” – Coulbourn 

4. “A state of abnormal increase in the quantity of purchasing power” – Gregorye

• Arabian Sea – Lakshadweep 
• Bay of Bengal- Andaman and Nicobar Islands

1-e;2-a; 3-b; 4-c; 5-d.

1. In narrow sense, the Central Bank starts the purchase and sale of Government securities in the money market. 

2. In Broad Sense, the Central Bank purchases and sells not only Government securities but also other proper eligible securities like bills and securities of private concerns. 

3. When the banks and the private individuals purchase these securities they have to make payments for these securities to the Central Bank.

MRS is the rate at which the consumer will substitute one product for another so that her total utility remains constant. It can be represented as follows: 

MRS = ∆Y/∆X

Marginal revenue of a firm is defined as the increase in total revenue for a unit increase in the firm’s output. It is obtained by dividing the change in total revenue by change in quantity.

In narrow sense, the Central Bank starts the purchase and sale of Government securities in the money market. In Broad Sense, the Central Bank purchases and sells not only Government securities but also other proper eligible securities like bills and securities of private concerns.

When the Reserve Bank of India sells foreign exchange when there is deficit balance of payments, it is called official reserve sale.

These are the goods which are meant for final use and will not pass through any more stages of production or transformations.

Meaning of Trade Cycle A Trade cycle refers to oscillations in aggregate economic activity particularly in employment, output, income, etc. It is due to the inherent contraction and expansion of the elements which energize the economic activities of the nation. The fluctuations are periodical, differing in intensity and changing in its coverage.

It is the change in savings per unit change in income. It is denoted by ‘S’ and is equal to 1-c.

Foreign Direct Investment (FDI) and Trade: 

1. FDI is an important factor in global economy. 

2. Foreign trade and FDI are closely related. In developing countries like India 

3. FDI in the natural resource sector, including plantations, increases trade volume. 

4. Foreign production by FDI is useful to substitute foreign trade. . 

5. FDI is also influenced by the income generated from the trade and regional integration schemes. 

6. FDI is helpful to accelerate the economic growth by facilitating essential imports needed for carrying out development programmes like capital goods, technical know-how, raw materials and other inputs and even scarce consumer goods.

7. FDI may be required to fill the trade gap. 

8. FDI is encouraged by the factors such as foreign exchange shortage, desire to create employment and acceleration of the pace of economic development. 

9. Many developing countries strongly prefer foreign investment to imports. 

10. However, the real impact of FDI on different sections of an economy.

Balance of Payments (BOP): 

1. BoP is a systematic record of a country’s economic and financial transactions with the rest of the world over a period of time.

2. When a payment is received from a foreign country, it is a credit transaction while a payment to a foreign country is a debit transaction.

3. The principal items shown on the credit side are exports of goods and services, transfer receipts in the form of gift etc., from foreigners, borrowing from abroad, foreign direct investment and official sale of reserve assets including gold to foreign countries and international agencies.

4. The principal items on the debit side include imports of goods and services, transfer payments to foreigners, lending to foreign countries, investments by residents in foreign countries and official purchase of reserve assets or gold from foreign countries and international agencies.

The specific objectives of monetary policy are Objectives of monetary policy:

1. Neutrality of Money

2. Stability of Exchange Rates 

3. Price Stability 

4. Full Employment 

5. Economic Growth 

6. Equilibrium in the Balance of Payments

1. Neutrality of Money:

• Economists like Wicksteed, Hayek and Robertson are the chief exponents of neutral money.
• They hold the view that monetary authority should aim at neutrality of money in the economy.
• Monetary changes could be the root cause of all economic fluctuations.
• According to neutralists, the monetary change causes distortion and disturbances in the proper operation of the economic system of the country.

2. Exchange Rate Stability:

• Exchange rate stability was the traditional objective of monetary authority.
• This was the main objective under Gold Standard among different countries.
• When there was disequilibrium in the balance of payments of the country, it was automatically corrected by movements.

3. Price Stability:

• Economists like Crustave Cassel and Keynes suggested price stabilization as a main objective of monetary policy.
• Price stability is considered the most genuine, objective of monetary policy.
• Stable prices repose public confidence, 
• It promotes business activity and ensures equitable distribution of income and wealth.

4. Full Employment:

• During world depression, the problem of unemployment had increased rapidly.
• It was regarded as socially dangerous, economically wasteful and morally deplorable.
• Thus, full employment was considered as the main goal of monetary policy.

5. Economic Growth:

• Economic growth is the process whereby the real per capita income of a country increases over a long period of time.
• It implies an increase in the total physical or real output, production of goods for the satisfaction of human wants.
• Monetary policy should promote sustained and continuous economic growth by maintaining equilibrium between the total demand for money and total production capacity and further creating favourable conditions for saving and investment.

6. Equilibrium in the Balance of Payments: Equilibrium in the balance of payments is another objective of monetary policy which emerged significant in the post war years.

(c) ‘A’ is true but ‘R’ is false

Correct Answer is: (c) Rs 810

Monetary Economics is a branch of economics that provides a framework for analyzing money and its functions as a medium of exchange, store of value and unit of account. It examines the effects of monetary systems including regulation of money and associated financial institutions.

Meaning

1. Money is anything that is generally accepted as payment for goods and services and repayment of debts and that serves as a medium of exchange. 

2. A medium of exchange is anything that is widely accepted as a means of payments. 

3. In recent years, the importance of credit has increased in all the countries of the world. 

4. Credit instruments are used on an extensive scale. 

5. The use of cheques, bills of exchange, etc., has gone up. 

6. It should however, be remembered that money is the basis of credit.