1. Which among the following constitute the 4.

Which among the following can be

economic territory of country 'X' for the considered either as ‘production tax(es) or
calculation of the national income? production subsidy/subsidies?
1. The political frontiers of country 'X'. 1. Stamp Duty
2. The territorial waters and the airspace 2. GST
of country 'X'.
3. Subsidies on food and kerosene
3. The consulates and the military bases
Select the correct answer using the code
of country 'X' located abroad.
given below:
4. The consulates and the military bases
of other countries located in country (a) 1 only
'X'. (b) 1 and 2 only
Select the correct answer using the code (c) 1 and 3 only
given below: (d) 1, 2 and 3
(a) 1 only
(b) 1 and 2 only
5. Which among the following parameters
(c) 1, 2 and 3 only
is/are used for the calculation of GDP at
(d) 1, 2, 3 and 4
Basic Price?
1. Cost of factors of production, such as
2. Which among the following categories of
land, labour and capital
goods and services is/are taken into
consideration for the calculation of the 2. Production subsidies
Gross Domestic Product (GDP)? 3. Product taxes
1. Services offered on sale of second- Select the correct answer using the code
hand cars. given below:
2. New Cars which remain unsold in a (a) 1 only
particular year. (b) 1 and 2 only
3. Fruits and vegetables grown by the
(c) 1 and 3 only
agricultural household for self-
(d) 1, 2 and 3
consumption.
Select the correct answer using the code
given below: 6. Which among the following correctly
(a) 1 only depicts/depict the nature of relationship
(b) 2 only between the GDP at Factor Cost, Basic
(c) 1 and 2 only Price and Market Price?
(d) 1, 2 and 3 1. GDP at Market Price = GDP at Factor
Cost + Product Taxes – Product
3. With reference to the GDP calculation, Subsidies
consider the following statements: 2. GDP at Basic Price = GDP at Factor
1. Transfer payments, such as old age Cost + Production taxes – Production
pensions, unemployment benefits, Subsidies
gifts etc., are not included in the GDP 3. GDP at Market Price = GDP at Basic
calculation. Price + Product Taxes – Product
2. The foreign remittances into India are Subsidies
directly taken into consideration for
Select the correct answer using the code
the GDP calculation.
given below:
Which of the statements given above
(a) 1 only
is/are correct?
(a) 1 only (b) 1 and 2 only
(b) 2 only (c) 3 only
(c) Both 1 and 2 (d) 2 and 3 only
(d) Neither 1 nor 2

RAUSIAS-TS21E1025 1
https://t.me/upsc_pt_mains
7. Which among the following is/are 3. Higher merchandise trade deficit
accounted for the calculation of the Select the correct answer using the code
Household Private Final Consumption given below:
Expenditure (PFCE)? (a) 1 only
1. Expenditure incurred by the residents (b) 1 and 2 only
within the economic territory. (c) 1 and 3 only
2. Expenditure incurred by the residents (d) 1, 2 and 3
outside the economic territory.
3. Payments made for domestic services, 11. Consider the following statements:
such as housemaid, painting, etc. 1. The Nominal GDP is referred to as
Select the correct answer using the code Inflation-adjusted GDP.
given below: 2. The higher Nominal GDP, as
(a) 1 only compared to Real GDP, denotes
inflation within the economy.
(b) 2 only
Which of the statements given above
(c) 1 and 3 only
is/are correct?
(d) 1, 2 and 3
(a) 1 only
(b) 2 only
8. Which among the following components (c) Both 1 and 2
is/are part(s) of the Gross Fixed Capital
(d) Neither 1 nor 2
Formation (GFCF)?
1. Creation of fixed assets, such as
12. Consider the following statements about
roads, railways, etc. agriculture during British India:
2. Intellectual Property Rights, such as 1. The aggregate area under cultivation
R&D, software, etc. was expanded during the British
3. Increment in livestock and plantation. period.
Select the correct answer using the code 2. About 85% of the country’s population
given below: derived livelihood directly or indirectly
(a) 1 only from agriculture.
(b) 1 and 2 only Which of the statements given above
is/are correct?
(c) 1 and 3 only
(a) 1 only
(d) 1, 2 and 3
(b) 2 only
(c) Both 1 and 2
9. If the Net Factor Income from Abroad (d) Neither 1 nor 2
(NFIA) of a particular country is positive,
what would it denote?
13. Which of the following British systems
(a) GDP is higher than GNP were responsible for the plight of the
(b) GNP is higher than GDP small and the marginal farmers?
(c) Higher inflow of remittances 1. Land settlement
(d) Higher external liabilities of the 2. Revenue settlement
country 3. Commercialization of agriculture
4. Use of fertilizers
10. Which among the following can Select the correct answer using the code
necessarily be associated with the given below:
Negative Net Factor Income from Abroad (a) 1, 2 and 3 only
(NFIA)? (b) 1, 2 and 4 only
1. GDP is higher than GNP (c) 2 and 4 only
2. Closed economic model (d) 1, 2, 3 and 4

RAUSIAS-TS21E1025 2
14. Consider the following statements about Which of the statements given above
the industrial sector during the British is/are correct?
period: (a) 1 only
1. During the second half of the 19th
(b) 2 only
century, the capital goods industry
(c) Both 1 and 2
began to take roots in India.
2. The decline of the indigenous (d) Neither 1 nor 2
handicraft industries led to the growth
of the industries. 17. Consider the following statements about
3. India became a net exporter of the textile industry in Bengal:
important raw materials for the 1. Muslin is a type of cotton textile which
upcoming modern industries in had its origin in undivided Bengal.
Britain. 2. The finest variety of muslin was called
Which of the statements given above ‘Malmal’.
is/are correct?
3. It was introduced by the British
(a) 3 only during the time of Lord Hastings.
(b) 2 and 3 only
Which of the statements given above
(c) 1 and 2 only is/are correct?
(d) 1, 2 and 3 (a) 3 only
(b) 2 and 3 only
15. Consider the following statements:
(c) 1 and 2 only
1. India was in the first stage of
(d) 1, 2 and 3
demographic transition after 1921.
2. During the second stage of transition,
18. Consider the following statements:
neither the total population of India
nor the rate of population growth at 1. Per capita income is a measure of the
this stage was very high. amount of money earned per person
3. The overall literacy level during the in a nation or a geographic region.
British period was less than 16%. 2. The domestic product measures all
Which of the statements given above the goods and services arising out of
is/are correct? the economic activity, while the
(a) 3 only national income is the sum of all
(b) 2 and 3 only incomes as a result of the economic
activity.
(c) 1 and 2 only
3. National income includes only those
(d) 1, 2 and 3
incomes which are derived directly
from the current production of goods
16. Consider the following statements about
and services.
trade through the Suez Canal:
Which of the statements given above
1. Suez Canal is an artificial waterway,
is/are correct?
running from north to south, across
the Isthmus of Suez in north-eastern (a) 2 only
Egypt. (b) 2 and 3 only
2. It connects the Mediterranean Sea (c) 1 and 2 only
with the Red Sea. (d) 1, 2 and 3

RAUSIAS-TS21E1025 3
19. Which among the following 22. Which among the following is/are the
accounts/account for the lowest share in likely effect(s) of total leakages being
India's Gross Domestic Product (GDP)? higher than the total injections in the
Circular Flow of National Income?
(a) Private Final Consumption
1. Decrease in the GDP growth rate
Expenditure (PFCE)
2. Improvement in the trade balance
(b) Government Final Consumption
3. Decrease in credit creation
Expenditure (GFCE)
Select the correct answer using the code
(c) Investment given below:
(d) Net exports (a) 1 only
(b) 1 and 2 only
20. Which among the following sectors are (c) 1 and 3 only
considered in the model of Circular Flow (d) 1, 2 and 3
of National Income in a two sector
economy? 23. With reference to the GDP estimation in
1. Government India, consider the following statements:
1. The GDP is estimated at the Market
2. Households
Prices, instead of the Factor Cost.
3. Business firms
2. The base year for the calculation of
4. Foreign sector the GDP is 2011-12.
Select the correct answer using the code 3. The GDP is estimated by the National
given below: Statistical Office (NSO).
(a) 1 and 2 only Which of the statements given above are
correct?
(b) 2 and 3 only
(a) 1 and 2 only
(c) 3 and 4 only
(b) 1 and 3 only
(d) 1 and 4 only (c) 2 and 3 only
(d) 1, 2 and 3
21. Which among the following are
considered to be injections in the model of 24. With reference to the trends in India's
Circular Flow of National Income? GDP growth rates, consider the following
1. Savings statements:
1. The Nominal GDP growth rate has
2. Investment
consistently increased in the last 5
3. Government expenditure years.
4. Imports 2. The Nominal GDP growth rate has
5. Exports always been higher than the Real GDP
growth rate in the last 5 years.
Select the correct answer using the code
Which of the statements given above
given below:
is/are correct?
(a) 1 and 2 only
(a) 1 only
(b) 1, 2 and 3 only (b) 2 only
(c) 2, 3 and 5 only (c) Both 1 and 2
(d) 2, 3 and 4 only (d) Neither 1 nor 2

RAUSIAS-TS21E1025 4
25. Consider the following statements:
1. India was among the top 5 countries
in terms of GDP size in 2019-20.
2. India was the second largest economy
in terms of the Purchasing Power
Parity (PPP) in 2019-20.
Which of the statements given above
is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
26. Which among the following countries has
introduced the concept of Gross National
Happiness (GNH) to measure its socio-
economic progress?
(a) Nepal
(b) Bhutan
(c) Sri Lanka
(d) Norway
27. Which among the following international
organizations publishes the "Better Life
Index"?
(a) The World Bank
(b) The Organization for Economic Co-
operation and Development (OECD)
(c) The United Nations Development
Programme (UNDP)
(d) The International Monetary Fund
(IMF)
28. The Lorenz Curve shows the relationship
between
(a) Inflation and Unemployment
(b) Tax rate and Tax collection
(c) Percentage of total income earned by
cumulative percentage of the
population
(d) Tax rate and GDP growth
29. Consider the following statements related
to the Gini Coefficient:
1. The Gini Coefficient measures the
extent of inequality in a country.
RAUSIAS-TS21E1025
2. A Gini Coefficient of 1 means “Perfect
Equality”, whereas a Gini-Coefficient
of 0 means “Perfect Inequality”.
Which of the statements given above
is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
30. Which among the following factors is/are
likely to affect the demand for the goods
in an economy?
1. Prices of the goods
2. Prices of the related goods
3. Income level of the buyer
Select the correct answer using the code
given below:
(a) 1 only
(b) 1 and 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
31. Goods 'X' and 'Y' are considered to be
‘Complementary Goods’. If the price of
goods 'X' increases, then what would
happen to the demand for goods 'Y'?
(a) Increase in demand
(b) Decrease in demand
(c) Demand for goods 'Y' would remain
unaffected
(d) None of the above.
32. Consider a typical scenario:
“You need to travel to office. While
checking the fares on different ride sharing
platforms, you get to know that Uber fares
are much higher than the fares on Ola.
Hence, you decide to travel to your office
by booking an Ola Cab”.
In the above scenario, the price-elasticity
of demand can be considered as
(a) Perfectly Elastic
(b) Perfectly Inelastic
(c) Relatively Elastic
(d) Relatively Inelastic
5
33. As the income of the consumer increases, developed in the Balance of Payments
the demand for a particular commodity and to bring inflation under control.
'X' reduces. Similarly, as the income 2. Stabilization measures were aimed at
decreases, the demand for commodity 'X' improving the efficiency of the
increases. In this case, commodity 'X' can economy and increasing its
be considered as a/an international competitiveness.
(a) Inferior Goods Which of the statements given above
(b) Veblen Goods is/are correct?
(c) Giffen Goods (a) 1 only
(d) None of the above. (b) 2 only
(c) Both 1 and 2
34. With reference to the ‘Veblen Goods’, (d) Neither 1 nor 2
consider the following statements:
1. The demand for these goods increases 37. Which of the following steps leads/lead to
with the increase in their prices. liberalization in the economy?
2. These goods are normally considered 1. Disinvestment
to be the ‘Inferior Goods’. 2. Deregulation of the industrial sector
Which of the statements given above 3. Establishment of the private sector
is/are correct? banks
(a) 1 only Select the correct answer using the code
(b) 2 only given below:
(c) Both 1 and 2 (a) 3 only
(d) Neither 1 nor 2 (b) 2 and 3 only
(c) 1 and 2 only
35. Consider the following statements: (d) 1, 2 and 3
1. All the Giffen Goods are Inferior
Goods, but all the Inferior Goods are 38. Which of the following Central Public
not Giffen Goods. Sector Enterprises are designated as
2. The demand for the Giffen Goods Navratnas?
increases with the increase in their 1. Indian Oil Corporation Limited
prices.
2. Steel Authority of India Limited
Which of the statements given above
3. Hindustan Aeronautics Limited
is/are correct?
4. Mahanagar Telephone Nigam Limited
(a) 1 only
5. Bharat Sanchar Nigam Limited
(b) 2 only
Select the correct answer using the code
(c) Both 1 and 2
given below:
(d) Neither 1 nor 2
(a) 1, 2 and 3 only
(b) 3 and 4 only
36. Consider the following statements about
(c) 2, 4 and 5 only
the New Economic Policy (NEP) of India:
(d) 1, 2, 3, 4 and 5
1. Structural reform policies were
intended to correct the weaknesses

RAUSIAS-TS21E1025 6
39. Consider the following statements about 2. During the reform period, the growth
the ‘Maharatnas’, ‘Navratnas’ and of the service sector has declined.
‘Miniratnas’: 3. The growth was mainly driven by
1. The status of the ‘Maharatnas’, growth in the agriculture sector.
‘Navratnas’ and ‘Miniratnas’ are Which of the statements given above
granted to the Central Public Sector is/are correct?
Enterprises, based upon the profit (a) 1 only
made by them.
(b) 2 and 3 only
2. They were set up with the intention of
(c) 1 and 2 only
providing infrastructure and direct
(d) 1, 2 and 3
employment to the public.
Which of the statements given above
42. Which of the following conditions
is/are correct?
supports/support the quantitative
(a) 1 only
restrictions regime followed by India to
(b) 2 only
protect the domestic industries?
(c) Both 1 and 2
1. Reduction of tariffs
(d) Neither 1 nor 2
2. Imposition of import licensing
3. Removal of export duties
40. Consider the following statements about
Select the correct answer using the code
the World Trade Organization (WTO):
given below:
1. The WTO is the successor
(a) 3 only
organization to the General Agreement
(b) 2 only
on Tariffs and Trade (GATT).
(c) 1 and 2 only
2. The WTO was established in 1948 as
(d) 1, 2 and 3
the global trade organization.
3. The WTO is aimed to establish a rule-
based trading regime in which the 43. Consider the following statements about
nations cannot place arbitrary the reforms in the Indian economy:
restrictions on trade. 1. The rupee was devalued against
Which of the statements given above are foreign currencies.
correct? 2. The rate of corporation tax has been
(a) 1 and 3 only gradually increased.

(b) 2 and 3 only 3. The Foreign Institutional Investors

(FIIs) were allowed to invest in the
(c) 1 and 2 only
Indian financial markets.
(d) 1, 2 and 3
Which of the statements given above are
correct?
41. Consider the following statements about
(a) 1 and 3 only
the Indian economy during reforms (the
(b) 2 and 3 only
post–1991):
(c) 1 and 2 only
1. The opening of the economy has led to
a rapid increase in the Foreign Direct (d) 1, 2 and 3
Investment and the foreign exchange
reserves.

RAUSIAS-TS21E1025 7
 ANSWERS & EXPLANATIONS OF
ECONOMY-1
GS Paper-I (TS21E1025)
1. Answer: (c)
Explanation:
The economic territory of a country is not
simply the political frontiers of that
country. The two may have common
elements, but still, they are conceptually
different. The economic territory is the
geographical territory administered by
a government within which persons,
goods and capital circulate freely.
The scope of the economic territory is
defined to cover : (i) The political
frontiers, including the territorial waters
and the air space; (ii) The embassies,
consulates, military bases, etc., located
abroad, but excluding those located
within the political frontiers; (iii) Ships,
aircrafts, etc., operated by the residents
between two or more countries; and (iv)
Fishing vessels, oil and natural gas rigs,
etc., operated by the residents in the
international waters or other areas over
which the country enjoys exclusive rights
or jurisdiction.
2. Answer: (d)
Explanation:
The Gross Domestic Product (GDP)
measurement includes the value of all
final goods and services produced within
the economic territory of a country for a
particular year.
However, it does not cover the
‗intermediate goods‘, since it leads to
double accounting. Some other aspects of
GDP calculation are:
 Does not include the sale of second-
hand goods, but services offered on
such sales are considered.
 Includes even those goods that are not
marketed, but produced for self-
consumption.
RAUSIAS-TS21E1025
 Includes even those goods that remain
unsold, considered as addition to
inventories/ investment.
3. Answer: (d)
Explanation:
The GDP (Gross Domestic Product)
calculation takes into account only those
incomes which are derived directly from
the current production of goods and
services, called the ―factor incomes‖.
Other forms of income, such as old age
pensions, education grants,
unemployment benefits, gifts etc.,
cannot be regarded as payments for
the current services to production.
They are paid out of factor incomes and
are called transfer incomes. Payments, for
which no goods or services are received in
return, are, therefore, termed as transfer
payments.
The remittances into India are not
accounted for the GDP calculation.
They are accounted under the ‗Net Factor
Income from Abroad (NFIA)‘ for the
calculation of GNP (Gross National
Product).
4. Answer: (a)
Explanation:
Production taxes or production subsidies
are paid or received with relation to
production and are independent of the
volume of actual production. Some
examples of production taxes are land
revenues, stamps and registration fees,
and tax on profession. Some production
subsidies include subsidies to the
railways, input subsidies to the farmers,
subsidies to the village and small
industries, administrative subsidies to
the corporations or co-operatives, etc.
1
 On the other hand, product taxes or
subsidies are paid or received on per unit
of product. Some examples of product
taxes are excise tax, sales tax, service tax,
and import and export duties. Product
subsidies include food, petroleum and
fertilizer subsidies, interest subsidies
given to the farmers, households, etc.
5. Answer: (b)
Explanation:
The Basic Price is the price expected to be
received by the producer. It is calculated
as ‗Factor Cost‘ + ‗Production Taxes‘ –
‗Production Subsidies‘.
Hence, GDP at Basic Price = ‘GDP at
Factor Cost’ + ‘Production Taxes’ –
‘Production Subsidies’.
6. Answer: (d)
Explanation:
Relationship between GDP at Market
Price and GDP at Basic Price: GDP at
Market Price = GDP at Basic Price +
Product Taxes - Product Subsidies
Relationship between GDP at Market
Price and GDP at Factor Cost: GDP at
Basic Price = GDP at Factor Cost +
Production Taxes - Production Subsidies -
--- (i)
GDP at Market Price = GDP at Basic Price
+ Product Taxes - Product Subsidies -----
(ii)
Substituting the value of GDP at Basic
Price with GDP at Factor Cost in (ii)
GDP at Market Price = (GDP at Factor
Cost + Production Taxes – Production
Subsidies) + Product Taxes - Product
Subsidies
GDP at Market Price = GDP at Factor
Cost + (Production Taxes + Product
Taxes) – (Production Subsidies + Product
Subsidies)
GDP at Market price = GDP at Factor
Cost + Indirect Taxes - Subsidies
RAUSIAS-TS21E1025
7. Answer: (d)
Explanation:
The household consumption expenditure
is referred to as the Private Final
Consumption Expenditure (PFCE). It
consists of the expenditure by the
households (including non-profit
institutions) on non-durable consumer
goods and services, and all durable
goods, except land and buildings.
It includes the following: Expenditure
incurred by the residents within India
(Includes both domestic and imported
goods).
Expenditure incurred by the residents
outside India (e.g., tourism, education,
health etc., accounted as imports)
(Deducted later as imports).
Expenditure incurred by the non-
residents within the economic territory of
India considered as exports.
Payments for domestic services which one
household renders to another, such as
services of maid servants, cooking, child
nursing and gardening.
8. Answer: (d)
Explanation:
The Gross Capital Formation is the net
investment in an economy. The Gross
Capital Formation includes fixed capital
formation, change in stock and valuables.
The Gross Fixed Capital Formation
includes the total investment in the fixed
assets and includes the following:
 Infrastructure, such as dwellings,
roads, railways, etc.
 Machinery and equipment.
 Intellectual Property Rights, such as
R&D, software, etc.
 Cultivated biological resources -
Increment in livestock and plantation.
9. Answer: (b)
Explanation:
The Gross Domestic Product
(GDP) measures the value of goods and
services produced within a country's
2
 borders, by both the citizens and the non-
citizens. On the other hand, the Gross
National Product (GNP) measures the
value of goods and services produced by
only the country's citizens, but both
domestically and abroad.
GNP = GDP + Income earned by the
Indians outside India – Income earned by
the foreigners within India.
GNP = GDP + Net Factor Income from
Abroad (NFIA).
10. Answer: (a)
Explanation:
Net Factor Income from Abroad is
calculated as: ‗Factor income earned by
the domestic factors of production
employed in the rest of the world‘ –
‗Factor income earned by the factors of
production of the rest of the world
employed in the domestic economy‘.
Thus, GNP = GDP + Net Factor Income
from Abroad (NFIA).
If the Net Factor Income from Abroad
(NFIA) is negative, it would mean that
GDP is higher than GNP.
11. Answer: (b)
Explanation:
The Gross Domestic Product (GDP) refers
to the market value of all final goods and
services produced within an economy. It
can be calculated in two ways –
Nominal GDP: It refers to the GDP at the
current market prices, i.e., the GDP is
calculated as per the market prices for
the year for which the GDP is calculated.
Real GDP: It refers to the GDP at base
year prices, i.e., the GDP is calculated as
per the market prices in the base year.
Thus, the Real GDP negates the inflation
in goods and services.
In case of a high rate of inflation, the
Nominal GDP would be quite higher than
the Real GDP. However, in case of
deflation, the Real GDP would be higher
than the Nominal GDP.
RAUSIAS-TS21E1025
12. Answer: (c)
Explanation:
India‘s economy under the British
colonial rule remained fundamentally
agrarian – about 85% of the country‘s
population lived mostly in villages and
derived livelihood directly or indirectly
from agriculture.
However, despite being the occupation of
such a large population, the agricultural
sector continued to experience stagnation
and, not infrequently, unusual
deterioration.
Agricultural productivity became low,
though, in absolute terms, the sector
experienced some growth due to the
expansion of the aggregate area under
cultivation.
13. Answer: (a)
Explanation:
The stagnation in the agricultural sector
was caused mainly because of various
systems of land settlement that were
introduced by the colonial government.
Particularly, under the Zamindari system,
which was implemented in the then
Bengal Presidency, comprising parts of
India‘s present-day eastern states, the
profit accruing out of the agriculture
sector went to the Zamindars, instead of
the cultivators.
However, a considerable number of
Zamindars, and not just the colonial
government, did nothing to improve the
condition of agriculture. The main
interest of the Zamindars was only to
collect rent, regardless of the economic
condition of the cultivators. This caused
immense misery and social tension
among the latter.
To a very great extent, the terms of the
revenue settlement were also responsible
for the Zamindars adopting such an
attitude. The dates for depositing
specified sums of revenue were fixed,
3
 failing which the Zamindars were to lose
their rights.
Besides this, low levels of technology, lack
of irrigation facilities and negligible use
of fertilizers, all added up to aggravate
the plight of the farmers and contributed
to the dismal level of agricultural
productivity.
There was, of course, some evidence of a
relatively higher yield of cash crops in
certain areas of the country due to the
commercialization of agriculture. But, for
the small and the marginal farmers, it
had adverse impacts.
14. Answer: (a)
Explanation:
The primary motive of the colonial
government behind this policy of
systematically de-industrializing India
was two-fold.
The intention was, first, to reduce India to
the status of a mere exporter of important
raw materials for the upcoming modern
industries in Britain and, second, to turn
India into a sprawling market for the
finished products of those industries, so
that their continued expansion could be
ensured to the maximum advantage of
their home country – Britain.
In the unfolding economic scenario,
the decline of the indigenous
handicraft industries created not only
massive unemployment in India, but
also a new demand in the Indian
consumer market, which was now
deprived of the supply of locally made
goods.
This demand was profitably met by the
increasing imports of cheap
manufactured goods from Britain.
During the second half of the 19th
century, modern industry began to take
roots in India, but its progress remained
very slow. Initially, this development was
confined to the setting up of cotton and
jute textile mills. The cotton textile mills,
RAUSIAS-TS21E1025
mainly dominated by the Indians, were
located in the western parts of the
country, viz., Maharashtra and Gujarat,
while the jute mills, dominated by the
foreigners, were mainly concentrated in
Bengal.
However, there was hardly any capital
goods industry to help promote further
industrialization in India.
15. Answer: (b)
Explanation:
Various details about the population of
British India were first collected through
a census in 1881. Though suffering from
certain limitations, it revealed the
unevenness in India‘s population growth.
Subsequently, every 10 years such
census operations were carried out.
Before 1921, India was in the first
stage of demographic transition. The
second stage of transition began after
1921. However, neither the total
population of India nor the rate of
population growth at this stage was very
high.
Various social development indicators
were also not quite encouraging. The
overall literacy level was less than 16%.
Out of this, the female literacy level was
at a negligible low of about 7%.
16. Answer: (c)
Explanation:
Suez Canal is an artificial waterway,
running from north to south, across the
Isthmus of Suez in north-eastern Egypt.
It connects Port Said on the
Mediterranean Sea with the Gulf of Suez,
an arm of the Red Sea. The Canal
provides a direct trade route for the ships
operating between the European or the
American ports and the ports located in
South Asia, East Africa and Oceania, by
doing away with the need to sail around
Africa.
4

Suez Canal: Used as highway between
India and Britain
17. Answer: (c)
Explanation:
Muslin is a type of cotton textile which
had its origin in undivided Bengal,
particularly, places in and around Dhaka
(spelled during the pre-independence
period as Dacca), now the capital city of
Bangladesh. ‗Daccai Muslin’ had gained
worldwide fame as an exquisite type of
cotton textile. The finest variety of muslin
was called ―Malmal’.
Sometimes, foreign travellers also used to
refer to it as ‗Malmal Shahi’ or ‗Malmal
Khas’, implying that it was worn by, or fit
for, the royalty.
Malmal was established during the
time of Akbar by Malmali Khan, one of
the translators in Akabari darbar.
18. Answer: (d)
Explanation:
Per capita income is a measure of the
amount of money earned per person in a
nation or a geographic region. Per capita
income can be used to determine the
average per person income for an area
and to evaluate the standard of living and
RAUSIAS-TS21E1025
quality of life of the population. Per capita
income for a nation is calculated by
dividing the country's national income by
its population.
The domestic product measures all the
goods and services arising out of the
economic activity, while the national
income is the sum of all incomes as a
result of the economic activity. Since the
production of goods and services is the
result of the use of primary factors of
inputs, viz., capital and labour, along
with the raw materials, the process
automatically generates income. This
income is in the form of return to capital
and labour used in the production
process.
National income includes only those
incomes which are derived directly from
the current production of goods and
services, which are called the ‗factor
incomes‘.
19. Answer: (d)
Explanation:
According to the ‗Expenditure Method‘,
GDP (Gross Domestic Product) is
calculated as C+G+I+ (X-M), where C
denotes ‗Private Final Consumption
Expenditure (PFCE); G denotes
Government Final Consumption
Expenditure (GFCE); I denotes
investment; X denotes exports; and M
denotes imports. The PFCE, accounting
for around 60% of India's GDP, is the
major driver. The net exports (exports-
imports), accounting for around -3% of
India's GDP, has the lowest share.
20. Answer: (b)
Explanation:
The Circular Flow of National Income can
be depicted in ‗two sectors‘ (households
and firms), ‗three sectors‘ (households,
firms and government) and ‗four sectors‘
(households, firms, government and rest
of the world) models.
5
21. Answer: (c)
Explanation:
The Circular Flow of National Income
refers to the continuous circular flow of
money income and flow of goods between
different sectors of the economy. A
‗leakage‘ is the amount of money which is
withdrawn from the flow of income,
whereas ‗injections‘ are the amount of
money that is added to the flow of income
in the economy.
Thus, (i) savings; (ii) taxes by households
and firms; and (iii) import spending
constitute a leakage from the circular flow
of income. On the other hand, (i)
investment spending; (ii) government
spending; and (iii) export earnings
become injections into the circular
flow of income.
22. Answer: (c)
Explanation:
The Circular Flow of National Income
refers to the continuous circular flow of
money income and flow of goods between
different sectors of the economy. For
equilibrium at the macro level, leakages
(savings, taxes and imports) must be
equal to injections (investment,
government expenditure and exports). If
the total leakages are higher than the
total injections, it is likely to indicate the
following:
 Decrease in the GDP growth rate
(Since leakages > injections)
 Adverse impact on external trade
(Since imports > exports)
 Decrease in credit creation (Since
savings > investment)
23. Answer: (d)
Explanation:
The Gross Domestic Product (GDP) refers
to the market value of all final goods and
services produced within an economy.
Recent changes in the GDP estimation
(2015):
 Change in the base year from 2004-05
to 2011-12. Usually, the base years
are revised at a frequency of 7-10
RAUSIAS-TS21E1025
years by taking into account the
changing economic landscape of the
country.
 Change in the GDP estimation from
the GDP at the Factor Cost to GDP at
the Market Prices.
 Change in the database for capturing
economic activity from RBI's database
to the MCA-21 database of the
Ministry of Corporate Affairs. This
database is basically used for two
purposes :
o Estimate the production of goods and
services in the organized sector, based
upon the tax returns.
o Extrapolate the production of goods
and services in the unorganized
sector, based upon the organized
sector activity.
The GDP is estimated by the National
Statistical Office (NSO).
24. Answer: (b)
Explanation:
The Gross Domestic Product (GDP) refers
to the market value of all final goods and
services produced within an economy. It
can be calculated in two ways:
Nominal GDP: It refers to the GDP at the
current market prices, i.e., the GDP is
calculated as per the market prices for
the year for which the GDP is calculated.
Real GDP: It refers to the GDP at the
base year prices, i.e., the GDP is
calculated as per the market prices in the
base year. Thus, the Real GDP negates
the inflation in goods and services.
6
25. Answer: (a) 28. Answer: (c)
Explanation: Explanation:
In 2019-20, with the Nominal GDP size of The Lorenz Curve shows the percentage of
$ 2.9 trillion, India has become the fifth total income earned by cumulative
largest economy in the world by percentage of the population. In a
perfectly equal society, 10% of the
overtaking UK and France. Top 5
population would earn 10% of the
countries by the end of 2019-20: USA,
cumulative income. Similarly, 25% of the
China, Japan, Germany and India. population would earn 25% of the
In terms of the Purchasing Power cumulative income. Hence, as shown in
Parity (PPP) in 2019-20, the top 3 the figure, in a perfectly equal society, the
economies are: China, USA and India. line inclined at 45° is called the "Line of
Perfect Equality". As inequality increases,
the Lorenz Curve deviates from the Line
26. Answer: (b)
of Equality and shows that the income
Explanation: gets concentrated in a few sections of the
The phrase ‗Gross National Happiness‘ society.
(GNH) was first coined by the 4th king of
Bhutan, King Jigme Singye Wangchuck,
in 1972, when he declared, ―Gross
National Happiness is more important
than Gross Domestic Product.‖ The
concept implies that sustainable
development should take a holistic
approach towards the notions of progress
and give equal importance to non-
economic aspects of well-being.
The GNH Index includes both traditional
areas of socio-economic concern, such as
living standards, health and education,
and less traditional aspects of culture and 29. Answer: (a)
psychological well-being. Explanation:
As inequality increases, the Lorenz Curve
deviates from the Line of Equality and
27. Answer: (b)
shows that the income gets concentrated
Explanation: in a few sections of the society.
The Better Life Index is published by the
Organization for Economic Co-operation
and Development (OECD). It is a set of 11
social indicators, comprising ―housing,
income, jobs, community, education,
environment, governance, health, life
satisfaction, safety and work-life
balance‖. These indicators, in turn, are
composed of 20 sub-indicators through
averaging and normalization. By selecting
a set of weights to the sub-indicators, a
user can rank the countries according to
their weighted sum.

RAUSIAS-TS21E1025 7
 The Gini Coefficient is defined as A/(A+B),
where A is the area between the Line of
Perfect Equality and the Lorenz Curve;
and B is the area between the Lorenz
Curve and X-Axis (As shown in the
figure).
If A=0 (i.e., the Lorenz Curve lies along
the Line of Perfect Equality), then the Gini
Coefficient (A/A+B) = 0, which denotes
Perfect Equality.
If B=0 (i.e., the Lorenz Curve lies along X),
then the Gini Coefficient (A/A+B) = 1,
which denotes Perfect Inequality. Thus,
as Gini Coefficient increases, the
inequality in the country increases.
30. Answer: (d)
Explanation:
The demand for goods is defined as the
quantity of the good purchased at a given
price at a given time. Individual demand
refers to the quantity of a commodity that
an individual buyer is willing to buy at a
given price per unit of time. Hence, the
demand is dependent on a number of
factors, such as: (i) Price of the
commodity; (ii) Price of the related goods;
(iii) Income of the buyer; and (iv) Tastes
and preferences of the buyer.
31. Answer: (b)
Explanation:
Complementary goods are those goods
which are used together in satisfying a
particular want. Examples of
complementary goods are car and petrol,
ball pen and refill, etc. If the price of one
of them increases, the demand for the
other goods will decrease and if the price
of one of them falls, the demand for the
other will increase.
32. Answer: (c)
Explanation:
The demand for goods moves in the
opposite direction of its price. Price-
elasticity of demand is a measure of the
RAUSIAS-TS21E1025
responsiveness of the demand for goods
to changes in its price. Price-elasticity of
demand for goods is defined as the
percentage change in demand for the
goods divided by the percentage change
in its price.
The more responsive the demand for
goods is to its price, the higher is the
price-elasticity of the demand for the
goods. If at some price, the percentage
change in the demand for goods is less
than the percentage change in the price,
then the demand for the goods is said to
be inelastic at that price.
If, at some price, the percentage change
in the demand for goods is equal to the
percentage change in the price, then the
demand for the goods is said to be
unitary elastic at that price.
If, at some price, the percentage change
in the demand for goods is greater than
the percentage change in the price, then
the demand for the goods is said to be
elastic at that price.
33. Answer: (a)
Explanation:
The quantity of a goods that the
consumer demands can increase or
decrease with the rise in the income,
depending on the nature of the goods. For
most goods, the quantity that a consumer
chooses, increases as the consumer‘s
income increases and decreases as the
consumer‘s income decreases. Such
goods are called ‗Normal Goods’. Thus, a
consumer‘s demand for a normal goods
moves in the same direction as the
income of the consumer. However, there
are some goods the demands for which
move in the opposite direction of the
income of the consumer. Such goods
are called ‘Inferior Goods’. As the
income of the consumer increases, the
demand for an inferior goods falls; and as
the income decreases, the demand for an
inferior goods rises.
8
 Examples of inferior goods include low
quality food items, like coarse cereals.
34. Answer: (a)
Explanation:
A ‗Veblen Goods‘ is a goods for which the
demand increases as the price
increases. Veblen goods are typically
high-quality goods that are made well, are
exclusive and are a status symbol. Veblen
goods are generally sought after by the
affluent consumers, who place a premium
on the utility of the goods. Some of the
examples include diamonds, iPhones, etc.
37. Answer: (b)
35. Answer: (c)
Explanation:
Giffen Goods are those goods whose
demand increases with the increase in
their prices. It is important to note that
all Giffen Goods are Inferior Goods, but
not all Inferior Goods are Giffen Goods.
Conditions for Giffen Goods:
 The goods must be inferior.
 There must be a lack of close
substitute goods.
 The goods must form a large
percentage of total consumption.
36. Answer: (d)
Explanation:
India agreed to the conditionalities of the
World Bank and the IMF, and announced
the New Economic Policy (NEP). The NEP
consisted of wide ranging economic
reforms. The thrust of the policies was
towards creating a more competitive
environment in the economy and
removing the barriers to the entry and the
growth of the firms.
This set of policies can broadly be
classified into two groups: (i) The
stabilization measures; and (ii) The
structural reform measures.
The stabilization measures are short-
term measures, intended to correct
some of the weaknesses that have
RAUSIAS-TS21E1025
developed in the Balance of Payments
and to bring inflation under control. In
simple words, this means that there was
a need to maintain sufficient foreign
exchange reserves and keep the rising
prices under control.
On the other hand, the structural
reform policies are long-term
measures, aimed at improving the
efficiency of the economy and
increasing its international
competitiveness by removing the
rigidities in various segments of the
Indian economy.
Explanation:
 Liberalization was introduced to put
an end to the restrictions and open
various sectors of the economy.
Though a few liberalization measures
were introduced in the 1980s in the
areas of industrial licensing, export-
import policy, technology upgradation,
fiscal policy and foreign investment,
the reform policies initiated in 1991
were more comprehensive.
 Deregulation of the industrial
sector: In India, regulatory
mechanisms were enforced in various
ways – (i) Industrial licensing, under
which every entrepreneur had to get
permission from the government
officials to start a firm, close a firm or
decide the amount of goods that could
be produced; (ii) The private sector
was not allowed in many industries;
(iii) Some goods could be produced
only in the small-scale industries; and
(iv) Controls on price fixation and
distribution of selected industrial
products.
 The financial sector includes financial
institutions, such as commercial
banks, investment banks, stock
exchange operations and foreign
exchange market.
9
  The reform policies led to the 39. Answer: (c)
establishment of the private sector Explanation:
banks, Indian as well as foreign. The Many of the profitable PSEs (Public Sector
foreign investment limit in the banks Enterprises) were originally formed during
was raised to around 74%. the 1950s and the 1960s, when self-
Note: Privatization of the public sector reliance was an important element of the
enterprises (PSEs), by selling off part of public policy. They were set up with the
the equity of the PSEs to the public, is intention of providing infrastructure and
known as disinvestment. So, direct employment to the public, so that
disinvestment is a part of quality end-product reaches the masses
privatization, not liberalization. at a nominal cost and the companies
themselves were made accountable to all
38. Answer: (b) stakeholders.
Explanation: The Ministry of Heavy Industries and
The Central Public Sector Enterprises are Public Enterprises grants the status of
designated with different status. A few the ‗Maharatnas‘, ‗Navratnas‘ and
examples of public enterprises with their ‗Miniratnas‘ to the Central Public Sector
status are as follows: Enterprises (CPSEs), based upon the
profit made by these CPSEs.
(i) Maharatnas –
 National Thermal Power
Corporation (NTPC) 40. Answer: (a)
 Oil and Natural Gas Explanation:
Corporation (ONGC)  The World Trade Organization
 Steel Authority of India (WTO) was founded in 1995 as the
Limited (SAIL) successor organization to the General
Agreement on Tariffs and Trade
 Bharat Heavy Electricals
(GATT).
Limited (BHEL)
 The GATT was established in 1948
 Indian Oil Corporation
with 23 countries as the global trade
Limited (IOCL)
organization to administer all
 Hindustan Petroleum Corporation
multilateral trade agreements by
Limited (HPCL)
providing equal opportunities to all
 Coal India Limited (CIL) countries in the international market
 Gas Authority of India for trading purposes.
Limited (GAIL)  The WTO is expected to establish a
 Bharat Petroleum Corporation rule-based trading regime in which
Limited (BPCL) the nations cannot place arbitrary
 Power Grid Corporation of restrictions on trade.
India (POWERGRID)
(ii) Navratnas – 41. Answer: (a)
 Hindustan Aeronautics Limited Explanation:
 Mahanagar Telephone Nigam  The reform process has completed
Limited three decades since its introduction.
(iii) Miniratnas – The post–1991 India witnessed a rapid
 Bharat Sanchar Nigam Limited growth in the GDP on a continual
 Airports Authority of India basis for two decades. The growth of
GDP increased from 5.6% during
 Indian Railway Catering and
1980–91 to 8.2% during 2007–12.
Tourism Corporation Limited

RAUSIAS-TS21E1025 10
  During the reform period, the removed from April, 2001. Export
growth of agriculture has declined. duties have been removed to increase
While the industrial sector reported the competitive position of the Indian
fluctuation, the growth of the goods in the international markets.
service sector has gone up. This
indicates that this growth is mainly 43. Answer: (a)
driven by growth in the service
Explanation:
sector.
 The rate of corporation tax, which
 The opening of the economy has led to was very high earlier, has been
a rapid increase in the Foreign Direct
gradually reduced. Efforts have also
Investment (FDI) and the foreign
been made to reform the indirect
exchange reserves. The foreign taxes, taxes levied on the
investment, which includes the FDI
commodities, in order to facilitate the
and the foreign institutional establishment of a common national
investment (FII), has increased from market for goods and commodities.
about US $100 million in 1990-91 to
 The first important reform in the
US $ 30 billion in 2017-18. There has
external sector was made in the
been an increase in the foreign
foreign exchange market. In 1991, as
exchange reserves from about US $ 6
an immediate measure to resolve the
billion in 1990-91 to about US $ 413
Balance of Payments crisis, the rupee
billion in 2018-19. India is one of the
was devalued against foreign
largest foreign exchange reserve
currencies. This led to an increase in
holders in the world.
the inflow of foreign exchange.
 The Foreign Institutional Investors
42. Answer: (b)
(FIIs), such as the merchant bankers,
Explanation: mutual funds and pension funds, are
 In order to protect the domestic now allowed to invest in the Indian
industries, India was following a financial markets.
regime of quantitative restrictions on
imports. This was encouraged through
44. Answer: (b)
tight control over imports and by
Explanation:
keeping the tariffs very high. These
policies reduced the efficiency and S.N. Book Author
competitiveness, which led to slow 1. Poverty and Amartya Sen
growth of the manufacturing sector. Famines
 The trade policy reforms aimed at: (i) 2. The Romesh
Dismantling of the quantitative Economic Chandra Dutt
restrictions on imports and exports; History of
(ii) Reduction of tariff rates; and (iii) India
Removal of licensing procedures for
3. The Land B.H. Baden-
imports.
Systems of Powell
 Import licensing was abolished, except
British
in the case of hazardous and
India
environmentally sensitive industries.
 Quantitative restrictions on imports of 4. India Divided Dr. Rajendra
manufactured consumer goods and Prasad
agricultural products were also fully

RAUSIAS-TS21E1025 11
45. Answer: (a)
Explanation:
The Capitalistic Form of Economy has its
origin in the famous work of Adam
Smith—Wealth of Nations. Adam Smith,
the Scottish philosopher-economist
professor at the University of Glasgow,
whose writings formed the basis of
classical economics, had stressed certain
fine ideas which were to take fancy
among some of the western countries and
finally capitalism took birth.
He raised his voice against the heavy-
handed government regulation of
commerce and industry of the time,
which did not allow the economy to tap
its full economic worth and reach the
level of well-being. Stressing ‗division of
labour’ and an environment of ‗laissez
faire’ (non-interference by the
government), he proposed that the
‗invisible hand‘ of ‗market forces‘ (price
mechanism) will bring a state of
equilibrium in the economy and a general
well-being for the countrymen. For such
an economy to function for public well-
being, he acknowledged the need of
competition in the market.
Once the USA attained independence, the
ideas of Adam Smith were made part of
its public policy—just one year after the
Wealth of Nations was published. From
here, the idea spread to other parts of
Euro-America—by 1800, the economic
system, called ‗capitalism‘, was
established, which was later known by
different names : ‗Private Enterprise
System‘, ‗Free Enterprise System‘ or
‗Market Economy‘.
The decisions of what to produce, how
much to produce and at what price to sell
are taken by the market, by the private
enterprises in this system, with the state
having no economic role.
The economy of India is a developing
mixed economy.
RAUSIAS-TS21E1025
46. Answer: (d)
Explanation:
The State Economy System: Rooted in
the ideas of historical change, proposed
by the German philosopher Karl Marx
(1818–1883) more specifically, this kind
of economic system first came up in the
erstwhile USSR after the Bolshevik
Revolution (1917) and got its ideal shape
in the People‘s Republic of China (1949).
This form of economic system also spread
to other countries in Eastern Europe.
Here, there can be seen two versions of
the state economy—in the erstwhile
USSR, known as the socialist economy
and in pre-1985 China, as the
communist economy. While a socialist
economy emphasised collective ownership
of the means of production (property and
assets), it also ascribed a large role to the
state in running the economy, while a
communist economy, on the other hand,
advocated state ownership of all
properties, including labour with absolute
power to the state in running the
economy, though for Marx, ‗socialism‘
was a transitional stage to ‗communism‘,
it never did happen in reality.
Basically, this form of economy came in
reaction to the prevalent popular
economic system of capitalism and
proposed just the opposite. The decisions
related to production, supply and prices
were all suggested to be taken solely by
the state only. Such economies were also
known as ‗Centralized Economy‘,
‗Centrally Planned Economy‘ or ‗Non-
market Economy‘.
The socialist and communist economies
used to criticise the capitalist economics
of being based on exploitation. In
response, the capitalist economies called
them the practitioners of ‗state
capitalism‘, where the state was the sole
exploitator. The communist and anti-
communist propagandas resulted in
serious intellectual discussions almost
upto the mid-1980s.
12
47. Answer: (c)
Explanation:
The Great Depression was a major
economic crisis that began in the United
States in 1929 and went to have a
worldwide impact until 1939. It began on
October 24, 1929, a day that is referred to
as ―Black Thursday‖, when a monumental
crash occurred at the New York Stock
Exchange as stock prices fell by 25%.
The belief in the self-correcting quality of
the market and the ‗invisible hand‘ of
Adam Smith got a major setback in the
early 20th century during the Great
Depression (1929).
The capitalist system of economy and
absence of government intervention in the
market are considered as the major
causes of the depression.
The impact of the depression spread from
the USA to other economies of Western
Europe, escalating large scale
unemployment, downfall in demand and
economic activities, and lockouts in
industrial enterprises.
48. Answer: (d)
Explanation:
A mixed economic system protects private
property and allows a level of economic
freedom in the use of capital, but also
allows for the governments to interfere in
the economic activities, in order to
achieve social aims.
A mixed economy is an economy
organized with some free market elements
and some socialistic elements, which lies
on a continuum, somewhere between
pure capitalism and pure socialism.
Mixed economies typically maintain
private ownership and control of most of
the means of production, but often under
government regulation.
Mixed economies socialize select
industries that are deemed essential or
that produce public goods.
RAUSIAS-TS21E1025
All known historical and modern
economies are the examples of mixed
economies, though some economists have
critiqued the economic effects of various
forms of mixed economy.
49. Answer: (d)
Explanation:
The term ‗Washington Consensus‘ was
coined by the economist John
Williamson, under which he had
suggested a set of policy reforms which
most of the officials in Washington (i.e.,
the International Monetary Fund and the
World Bank) thought would be good for
the crisis-driven Latin American countries
of the time. The policy reforms included
ten propositions:
(i) Fiscal discipline.
(ii) A redirection of public expenditure
priorities toward fields, offering both
high economic returns and the
potential to improve income
distribution, such as primary health
care, primary education and
infrastructure.
(iii) Tax reform (to lower marginal rates
and broaden the tax base).
(iv) Interest rate liberalization.
(v) A competitive exchange rate.
(vi) Trade liberalization.
(vii) Liberalization of FDI inflows.
(viii) Privatization.
(ix) Deregulation (in the sense of
abolishing barriers to entry and exit).
(x) Secure property rights.
However, in the coming times, the term
became synonymous to neo-liberalism (in
Latin America), market fundamentalism
(as George Soros told in 1998) and even
globalization across the world. It has often
been used to describe an extreme and
dogmatic commitment to the belief that
the markets can handle everything.
13
50. Answer: (b)
Explanation:
When we produce goods by exploiting the
natural resources, it is an activity of the
primary sector. This is because it forms
the base for all other products that we
subsequently make. Since most of the
natural products we get are from
agriculture, dairy, fishing and forestry,
this sector is also called agriculture and
related sector.
The secondary sector covers activities in
which the natural products are changed
into other forms through ways of
manufacturing that we associate with
industrial activity. It is the next step after
primary. The product is not produced by
nature, but has to be made and,
therefore, some process of manufacturing
is essential. This could be in a factory, a
workshop or at home. For example, using
cotton fibre from the plant, we spin yarn
and weave cloth.
After primary and secondary, there is a
third category of activities that falls under
the tertiary sector and is different from
the above two. These are the activities
that help in the development of the
primary and the secondary sectors. These
activities, by themselves, do not produce
goods, but they are an aid or a support
for the production process. For example,
RAUSIAS-TS21E1025
goods that are produced in the primary or
secondary sector would need to be
transported by trucks or trains and then
sold in the wholesale and retail shops. At
times, it may be necessary to store these
in godowns.
Transport, storage, communication,
banking and trade are some examples of
tertiary activities. Since these activities
generate services rather than goods,
the tertiary sector is also called the
service sector.
Service sector also includes some
essential services that may not directly
help in the production of goods. For
example, we require teachers, doctors,
and those who provide personal services,
such as washermen, barbers, cobblers,
lawyers and people to do administrative
and accounting works. In recent times,
certain new services, based on
information technology, such as internet
cafe, ATM booths, call centres, software
companies, etc., have become important.
14