70 Days WAR Plan

Day#48 Static Flash Cards Revision [70 Days WAR Plan]

AGRI-UDAAN Food and Agribusiness Accelerator 2.0 programme; Malthusian Trap; Methods used by NSSO to collect data for calculating poverty; Tax buoyancy; Late transition; National Afforestation and Eco-Development Board (NAEB); Optimal allocation of resources in economy; Budget 2017-18; Multi Commodity Exchange of India Limited (MCX); Transparency of Rules Act (TORA);
By IT's Core Team
May 08, 2019




The Economic Survey 2016-17 has proposed Transparency of Rules Act (TORA). What is it?

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Answer & Enrich Your Learning:

About Transparency of Rules Act (TORA):

  • TORA is a progressive legislation to end any asymmetry of information regarding rules and regulations faced by an average citizen.
  • The objective is to help citizens overcome an opaque mesh of complicated rules that often leads to corruption and endless litigation.
  • The TORA is an attempt to change in some ways the relationship between the average normal citizen and the State.
  • TORA will require all departments to mandatorily place all citizen-facing rules on their website.
  • Officials will not be able to impose any rule not mentioned beforehand.
  • All laws will have to be updated by the department while providing access to history of the same webpage.
  • Once a department has shifted to the platform, it can be deemed “TORA compliant” and citizens can be sure that the information is authentic and updated.

Why was TORA needed?

  • The opaque regulations prevalent in India makes life difficult for citizens who cannot feign ignorance of the rules as a valid defence.
  • This condition acts as a magnet for corruption and endless litigation.
  • Once TORA is enacted, it’ll be compulsory for all the government websites to publish such TORA compliant unified notifications.
  • And, subsequently, no person can be asked to comply with any rule which is not mentioned such Government website.




What is Multi Commodity Exchange of India Limited (MCX)?

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Answer & Enrich Your Learning:

  • MCX is an independent commodity exchange based in India.
  • MCX is India’s first listed exchange, and a state-of-the-art, commodity derivatives exchange that facilitates online trading, and clearing and settlement of commodity derivatives transactions, thereby providing a platform for risk management..
  • It was established in 2003 and is based in Mumbai.
  • From September 28, 2015, MCX is being regulated by the Securities and Exchange Board of India (SEBI).
  • Earlier MCX was regulated by the Forward Markets Commission (FMC), which got merged with the SEBI on September 28, 2015.
  • It is India’s largest commodity derivatives exchange where the clearance and settlements of the exchange happens.
  • In 2016, MCX was seventh among the global commodity bourses in terms of the number of futures contracts traded.
  • The turnover of the exchange for quarter ended December 2017 was 12.82 trillion rupees.
  • MCX offers options trading in gold and futures trading in non-ferrous metals, bullion, energy, and a number of agricultural commodities (mentha oil, cardamom, crude palm oil, cotton and others).
  • MCX is India’s leading commodity derivatives exchange with a market share of nearly 90 per cent in terms of the value of commodity futures contracts traded in Q1, FY 2017-18.
  • It provides live feeds for all traded commodities and these are published on various websites like MoneyControl.com, Economictimes.Indiatimes.com, and McxIndia.info
  • The exchange has set up a web-based application “ComRIS” (Commodity Receipts Information System) in order to maintain electronic record of commodities deposited at the Exchange accredited warehouses and ensure flow of real time information from the warehouses.
  • The Exchange’s flagship index series, iCOMDEX, developed jointly with Thomson Reuters, is a series of real-time commodity futures price indices, which give information on market movements in key commodities traded on MCX.

Commodities traded include:

  • Metal – Aluminium, Aluminium Mini, Copper, Copper Mini, Lead, Lead Mini, Nickel, Nickel Mini, Zinc, Zinc Mini.
  • Bullion – Gold, Gold Mini, Gold Guinea, Gold Petal, Gold Petal (New Delhi), Gold Global, Silver, Silver Mini, Silver Micro, Silver 1000.
  • Agro Commodities – Cardamom, Cotton, Crude Palm Oil, Kapas, Mentha Oil, Castor seed, RBD Palmolien, Black Pepper.
  • Energy – Brent Crude Oil, Crude Oil, Crude Oil Mini, Natural Gas.




What is optimal allocation of resources in economy?

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Answer & Enrich Your Learning:

  • Allocation of the resources is basically the analysis of how scarce resources (‘factors of production’) are distributed among producers, and how scarce goods and services are apportioned among consumers.
  • Allocation of resources is a central theme in association with economic efficiency and maximization of utility.
  • Available resources must, therefore, be used effectively in order to save costs and, on the other hand, save time or protect the environment.
  • Optimal allocation equalizes the returns of the marginal (or last) unit to be transferred between all the possible uses.
  • Optimal allocation happens when goods and services are distributed according to consumer preferences and needs of corporations.




What is AGRI-UDAAN Food and Agribusiness Accelerator 2.0 programme?

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Answer & Enrich Your Learning:

  • The programme is organised by NAARM, a-IDEA and IIM-A, Centre for Innovation, Incubation and Entrepreneurship (CIIE), in partnership with Caspian Impact Investment and supported by DST.
  • The program focuses on catalysing scale-up stage Food & Agribusiness start-ups through rigorous mentoring, industry networking and Investor pitching.
  • It is a unique platform for scale up stage innovators, entrepreneurs and start-ups in the Food & Agribusiness sectors to showcase their products/ services and to receive valuable inputs from mentors, incubators, R&D institutions, Agribusiness industries and investors
  • It intends to promote innovation and entrepreneurship in agriculture.
  • It will mentor start-ups and help them connect with potential investors and thus convert innovative ideas from India’s rural youth into viable businesses.
  • It is managed by ICAR-NAARM’s (Indian Council of Agricultural Research-National Academy of Agricultural Research Management).
  • Under the programme, start-ups will get incubation space to run their businesses and have access to research laboratories and libraries.
  • It offers:
    • Access to mentors & technical facilities
    • Capacity building workshops for selected start up cohort
    • Funding opportunity worth over 25 lakhs INR
    • Further funding opportunity through investor pitches
  • This programme will help to selected innovative start-ups who will be mentored in to scale up their operations in agri value chain for effective improvement in agriculture.
  • This is a 6 month program in which shortlisted agri start-ups with promising innovative business models will be mentored & guided to scale up their operations.




What are the major responsibilities of National Afforestation and Eco-Development Board (NAEB)?

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Answer & Enrich Your Learning:

  • The National Afforestation and Eco-Development Board (NAEB), set up in August 1992, is responsible for promoting afforestation, tree planting, ecological restoration and eco-development activities in the country, with special attention to the degraded forest areas and lands adjoining the forest areas, national parks, sanctuaries and other protected areas as well as the ecologically fragile areas like the Western Himalayas, Aravallis, Western Ghats.

About Role and functions of the NAEB:

  1. Evolve mechanisms for ecological restoration of degraded forest areas and adjoining lands through systematic planning and implementation, in a cost effective manner;
  2. Restore through natural regeneration or appropriate intervention the forest cover in the country for ecological security and to meet the fuelwood, fodder and other needs of the rural communities;
  3. Restore fuelwood, fodder, timber and other forest produce on the degraded forest and adjoining lands in order to meet the demands for these items;
  4. Sponsor research and extension of research findings to disseminate new and proper technologies for the regeneration and development of degraded forest areas and adjoining lands;
  5. Create general awareness and help foster people’s movement for promoting afforestation and eco-development with the assistance of voluntary agencies, non-government organisations, Panchayati Raj institutions and others and promote participatory and sustainable management of degraded forest areas and adjoining lands;
  6. Coordinate and monitor the Action Plans for afforestation, tree planting, ecological restoration and eco-development; and
  7. Undertake all other measures necessary for promoting afforestation, tree planting, ecological restoration and eco-development activities in the country.




In context of Demographic Transition, what does the Late transition depict?

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  • Late transition, stage of Demographic Transition depicts that birth rates start to decline and the rate of population growth decelerates.

Enrich Your Learning:

About Stages of Demographic Transition:

  • Demographic transition (DT) is the transition from high birth and death rates to lower birth and death rates as a country or region develops from a pre-industrial to an industrialized economic system. The theory was proposed in 1929 by the American demographer Warren Thompson.

Stage 1: Pre-transition

  • Characterised by high birth rates, and high fluctuating death rates. Population growth was kept low by Malthusian “preventative” (late age at marriage) and “positive” (famine, war, pestilence) checks.

Stage 2: Early transition

  • During the early stages of the transition, the death rate begins to fall. As birth rates remain high, the population starts to grow rapidly.

Stage 3: Late transition

  • Birth rates start to decline. The rate of population growth decelerates.

Stage 4: Post-transition

  • Post-transitional societies are characterised by low birth and low death rates. Population growth is negligible, or even enters a decline.




What does Tax buoyancy indicate?

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  • Tax buoyancy is an indicator to measure efficiency and responsiveness of revenue mobilization in response to growth in the Gross domestic product or National income.

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About Tax buoyancy:

  • It is calculated by dividing change in tax collection with GDP growth.
  • A tax is said to be buoyant if the tax revenues increase more than proportionately in response to a rise in national income or output.
  • A tax is buoyant when revenues increase by more than, say, 1 per cent for a 1 per cent increase in GDP.
  • Usually, tax elasticity is considered a better indicator to measure tax responsiveness.
  • Tax buoyancy in direct taxes has witnessed a consistent increase from 0.81 in 2015-16 to 1.22 in 2016-17 and to 1.90 in 2017-18. This has been primarily on account of demonetisation in 2016 and implementation of GST in 2017.




Which are the different methods used by National Sample Survey Organization (NSSO) to collect data for calculating poverty.

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Answer & Enrich Your Learning:

Methods used by National Sample Survey Organization (NSSO) to collect data for calculating poverty.

Mixed Reference Period (MRP):

  • Since 1999-2000, however, data are being collected according to MRP. Under this method, data on five less-frequently used items are collected over a one-year period, while sticking to the 30-day recall for the rest of the items. The low-frequency items include expenditure on health, education, clothing, durables etc. Currently, all poverty line data are compiled using the MRP method. These include the most recent estimates by the Suresh Tendulkar and Rangarajan Committees.

Modified Mixed Reference Period (MMRP):

  • In this method, for some food items, instead of a 30-day recall, only a 7-day recall is collected. Also, for some low-frequency items, instead of a 30-day recall, a 1-year recall is collected. This is believed to provide a more accurate reflection of consumption expenditures.

Uniform Reference Period (URP):

  • Up until 1993-94, the poverty line was based on URP data. This involved asking people about their consumption expenditure across a 30-day recall period. In other words, the information was based on the recall of consumption expenditure over the last month alone.




In context of economy, what is Malthusian Trap?

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Answer & Enrich Your Learning:

About Malthusian Trap:

  • The Malthusian Trap argues that as population increases, the world wouldn’t be able to sustain crop production to feed the ever-growing population. Malthus’ argument was based on the theory that populations grow in a way that overtakes the development of adequate land for crops. The Malthusian Trap also states that income gains per person through advancing technologies are lost through increased growth in population
  • This makes it difficult to alleviate poverty. Hence government is suggested to implement population control measures.




What are the three major reforms taken in the Budget 2017-18?

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Answer & Enrich Your Learning:

About Reforms taken in the Budget 2017-18:

  • Budget 2017-18 contains 3 major reforms.
  • First, presentation of Budget advanced to February 1 to enable the Ministries to operationalise all activities from the commencement of the financial year.
  • Second, merger of Railways Budget with General Budget to bring Railways to the centre stage of Government’s Fiscal Policy.
  • Third, removal of plan and non- plan classification of expenditure to facilitate a holistic view of allocations for sectors and ministries.
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