The question asks to identify private goods from the given options. To answer this, we need to understand the definition and characteristics of private goods.
Correct Option: D) All the above
The question asks about the type of goods where consumption is considered rivalrous. Rivalry in consumption is a key characteristic used to classify goods in economics. Understanding this concept helps differentiate between various types of goods.
B) Private goods — Private goods are defined by their characteristics of rivalry and excludability. When a good is rivalrous, one person's consumption of it prevents another person from consuming the same unit of the good. For example, if you eat a slice of pizza, no one else can eat that exact slice. This is a fundamental characteristic of private goods.
The question asks us to identify the correct statements regarding government securities and treasury bills in India. We need to evaluate each statement based on the functions of the Reserve Bank of India (RBI) and the characteristics of government securities.
Based on the evaluation:
Therefore, statements 2 and 3 are correct.
Correct Option: C) 2 and 3 only
This question tests the understanding of 'opportunity cost' in the context of public goods and government provision. Opportunity cost is the value of the next best alternative that must be foregone when making a choice. When the government provides a commodity for free, it means someone else is bearing the cost.
C) The opportunity cost is transferred from the consumers of the product to the taxpaying public. When the government provides a commodity for free, the resources used to produce it still have an opportunity cost. Since the government funds such provisions through taxes, the burden of this cost is effectively borne by the taxpaying public, rather than the direct consumers of the product.
The question asks to evaluate two statements regarding India's economic indicators over the last decade: tax revenue as a percent of GDP and fiscal deficit as a percent of GDP. To answer this, one needs to recall or infer the general trends of these indicators in India over the specified period (roughly 2007-2017, as the question is from 2017).
Tax revenue as a percent of GDP (also known as tax-to-GDP ratio) in India has generally fluctuated but has not shown a steady increase over the last decade (prior to 2017). For instance, it was around 10-11% in the early 2010s, saw some dips, and then recovered. A "steady increase" implies a consistent upward trend, which was not the case. There were periods of stagnation or even decline due to economic slowdowns or policy changes. For example, the tax-to-GDP ratio was around 10.5% in FY2007-08, dipped to 9.6% in FY2009-10, and was around 11.3% in FY2016-17. This is not a steady increase.
Fiscal deficit as a percent of GDP in India has generally been on a path of consolidation, especially after the global financial crisis of 2008-09 when it peaked. The government has aimed to reduce the fiscal deficit to comply with targets set by the Fiscal Responsibility and Budget Management (FRBM) Act. While there might have been temporary increases in certain years due to specific economic conditions or stimulus packages, the overall trend in the decade leading up to 2017 was towards reduction, not a steady increase. For example, the fiscal deficit was 6.0% in FY2008-09, then gradually reduced to 4.9% in FY2012-13, and further to 3.5% in FY2016-17. This clearly indicates a decreasing trend, not an increasing one.
Correct Option: D) Neither 1 nor 2
The question asks about the purpose of the Inter-Creditor Agreement (ICA) signed by Indian banks and financial institutions. This is a current affairs-based question related to banking and financial sector reforms in India, specifically concerning the resolution of Non-Performing Assets (NPAs) or stressed assets.
Correct Option: D) To aim at faster resolution of stressed assets of ₹ 50 crore or more which are under consortium lending.