JAIIB Paper 1 Module A Quiz 2

At the aggregate level, GDP at market prices is derived from GVA at basic prices by adding taxes on products and subtracting subsidies on products. This links the production-side measure to the market-price valuation of final output.

Transport infrastructure can lower the cost and time of moving goods, improve market access and raise the productivity of private capital. Borrowing to create a durable asset may spread the financing burden across the period in which benefits accrue, although project quality and debt sustainability still matter.

The quaternary sector is associated with knowledge-intensive activities such as research, information technology, data analysis and specialised information services. Farming is primary, manufacturing is secondary and hospitality is generally tertiary.

If many workers produce a relatively small share of total output, average output per worker in that sector is comparatively low. This can reflect low productivity, disguised unemployment or limited movement of labour into more productive activities; it does not mean agricultural output is excluded from national accounts.

The Green Revolution combined high-yielding varieties with irrigation, fertilisers, plant protection and supportive procurement arrangements. It substantially increased foodgrain production, especially wheat and rice in early-adopting regions, but benefits were uneven and also raised concerns about water and input sustainability.

Udyam Registration is the government’s online registration mechanism for MSMEs. It helps establish the enterprise’s MSME status and can facilitate access to applicable government benefits and support, subject to the conditions of each scheme. Registration does not itself guarantee credit, confer blanket tax exemption or change the legal form of the business.

A PSLC allows the seller to transfer the priority-sector lending achievement represented by the certificate to the buyer, while the underlying loan assets and associated credit risk remain with the originating bank. It does not substitute for regulatory reporting.

The RBI’s PSL framework uses differentiated weights for incremental PSL credit in identified districts with comparatively low or high per-capita PSL credit. The mechanism is intended to incentivise additional credit in underserved districts; eligibility rules and reporting requirements continue to apply.

Stand-Up India was designed to facilitate bank loans for greenfield enterprises promoted by at least one woman borrower and at least one SC/ST borrower per bank branch, subject to scheme conditions. The other options serve different policy objectives.

Gross export value can overstate the amount of value created domestically when exports contain substantial imported inputs. Domestic value added measures the contribution generated within the economy, making it more informative for analysing export-linked production and employment.

FDI generally reflects a lasting interest in an enterprise and a degree of influence or control, while portfolio investment covers cross-border holdings of equity and debt securities that do not constitute direct investment. The distinction is based on the nature of the investment relationship, not simply whether shares are involved.

The IMF promotes international monetary cooperation and exchange-rate stability and provides financial assistance to members facing balance-of-payments problems, subject to programme conditions. The World Bank Group has a stronger focus on long-term development and poverty reduction through financing and knowledge support.

The WTO dispute-settlement system provides procedures for member governments to address alleged breaches of WTO agreements. It is not a consumer court, a national budget authority or a monetary-policy institution.

Trade liberalisation reduces barriers such as tariffs, but it does not generally require governments to abandon legitimate public-health or safety regulation. Such measures should be transparent, evidence-based and non-discriminatory, and must comply with applicable trade obligations.

Financial-sector reforms concern the institutions, regulation, supervision and markets through which savings are mobilised and allocated. Crop technology, roads and factory production processes are primarily changes in the real economy, even though they interact with finance.

Inclusive growth focuses on the distribution and breadth of growth opportunities and benefits, including employment, capabilities and access to essential services. Higher GDP is important but does not by itself establish that growth is inclusive.

Jobless growth describes a situation in which output rises without a commensurate increase in employment. Automation, capital-intensive production, skill mismatches and weak labour absorption can contribute, though the term does not necessarily mean that no jobs are created.

Mitigation measures such as energy efficiency and cleaner energy reduce greenhouse-gas emissions, while adaptation and resilient infrastructure reduce vulnerability to climate impacts. Sustainable development seeks to align environmental protection with long-term economic and social objectives.

Corporate social responsibility can support health, education, environmental and community-development outcomes and contribute to human capital. However, CSR is not a substitute for public policy or universal public-service obligations, and its accounting or tax treatment depends on applicable rules.

When migration and urban population growth outpace investment in housing, sanitation, transport and other services, congestion, informal settlements and pressure on public resources may increase. Migration can also generate productivity gains, so outcomes depend partly on planning and infrastructure capacity.