MPPSC Prelims and Mains Notes, MPPCS Test Series
The economy is a complex system that is constantly changing. It is important to understand the basics of economics in order to be successful in the MPPSC exam. This article will provide you with an overview of the economy, including its structure, components, and functions. It will also discuss some of the key economic concepts that you need to know for the exam.
The economy is a system that produces and distributes goods and services. It is made up of three main sectors: the primary sector, the secondary sector, and the tertiary sector. The primary sector is responsible for extracting raw materials from the environment, such as agriculture, mining, and forestry. The secondary sector is responsible for manufacturing goods, such as construction, manufacturing, and utilities. The tertiary sector is responsible for providing services, such as retail, finance, and healthcare.
The economy is also made up of different markets, such as the goods market, the labor market, and the financial market. The goods market is where goods and services are bought and sold. The labor market is where workers are hired and paid. The financial market is where money is borrowed and lent.
The economy is constantly changing. These changes can be caused by a variety of factors, such as changes in technology, changes in government policy, and changes in consumer demand. It is important to understand how the economy works in order to be successful in the MPPSC exam.
Here are some of the key economic concepts that you need to know for the exam:
* Supply and demand: Supply and demand are the two forces that determine the price of a good or service. Supply is the amount of a good or service that is available for sale, while demand is the amount of a good or service that people are willing and able to buy. The price of a good or service will adjust until supply and demand are equal.
* Inflation: Inflation is a general increase in prices over time. It can be caused by a variety of factors, such as an increase in the money supply, an increase in government spending, or an increase in demand for goods and services.
* Unemployment: Unemployment is the percentage of the labor force that is unemployed. It can be caused by a variety of factors, such as a recession, a decline in demand for goods and services, or a mismatch between the skills of workers and the skills that employers are looking for.
* Economic growth: Economic growth is an increase in the amount of goods and services that a country produces. It can be caused by a variety of factors, such as an increase in the labor force, an increase in capital investment, or an increase in productivity.
* Economic development: Economic development is the process of improving the standard of living of a country’s population. It can be achieved through a variety of means, such as increasing economic growth, reducing poverty, and improving education and healthcare.
These are just some of the key economic concepts that you need to know for the MPPSC exam. By understanding these concepts, you will be better prepared to answer questions on the exam and succeed in your career.
WOMEN DEVELOPMENT PROGRAMS Beti Bachao Beti Padhao (BBBP) Beti Bachao Beti Padhao (BBBP) was launched by the Prime Minister on 22nd January, 2015 at Panipat, Haryana. BBBP addresses the declining Child Sex Ratio (CSR) and related issues of women empowerment over a life-cycle continuum. It is a tri-ministerial effort of Ministries of Women and Child … Read more
ADMINISTERED PRICES INCLUDING MSP AND PROCUREMENT PRICES Historical context The emergence of agricultural Price Policy in India was in the backdrop of food scarcity and price fluctuations provoked by drought, floods and international prices for exports and imports. This policy in general was directed towards ensuring reasonable food prices for consumers by providing … Read more
JOB CREATION As outlined in the NITI Aayog’s Action Agenda, India suffers more from the problem of underemployment (i.e. low-productivity, low-wage jobs) than unemployment as for example: In 2011-12, agriculture engaged nearly 50% of the workforce but contributed 15% to GDP In 2010-11, within manufacturing, small firms employed 72% but output was … Read more
State finances and local finances State finances The constitution (73rd and 74th) Amendment Acts, 1992 and Article 280 (3) (c) have altered the erstwhile fiscal devolution system and framework between the states and local governments. Under the new fiscal devolution system every state government is required to constitute, once in five years, a … Read more
Panchayati Raj Institutions (PRIs) are rural local governments entrusted with the responsibilities to prepare plan and implement schemes for economic development and social justice in rural India. A number of Centrally Sponsored Schemes (CSS) assign important role to PRIs. In addition, PRIs are also involved in implementation and monitoring of several State Schemes. For … Read more
Development Experience and Development Planning of India Poverty, low per capita income, under-development, unemployment, prompted the newly established Indian polity to adopt economic planning for the development of the country. The idea of economic planning can be traced to 1934, when M. Visvesverayya in his book ‘Planned Economy of India’, advocated for planning … Read more
Domestic capital in economic development Our economic growth has been facing headwinds which is primarily cyclical in nature. The policy makers, the regulators and the system are making an honest effort to restore it. Many fiscal and monitory policies have been announced and implemented sincerely. These measures, it is expected, will bring the desired outcome. … Read more
Sectoral Composition with respect to contribution to Gross Domestic Product (GDP) and Employment Historically, India has classified and tracked its economy and GDP in three sectors: agriculture, industry and services. Agriculture includes crops, horticulture, milk and animal husbandry, aquaculture, fishing, sericulture, aviculture, forestry and related activities. Industry includes various manufacturing sub-sectors. India’s definition … Read more
MONETARY POLICY TOOL: There are several direct and indirect instruments that are used for implementing monetary policy. Repo Rate: The (fixed) interest rate at which the Reserve Bank provides overnight liquidity to banks against the collateral of government and other approved securities under the liquidity adjustment facility (LAF). Reverse Repo Rate: … Read more
Population growth and economic development The effect of population growth on a society’s per capita output level depends on the pattern of population growth as also its institutional (organisational) framework. In other words, it depends on the age composition of the population. The pattern of spending reflects the age distribution. An ageing population—one … Read more