ele ted      s    23.3
      5. Consider the following statement—               2. If the income tax level is set below this
                                                             level, raising taxes will increase tax
         “Most of the world’s poor people earn their
         living from agriculture, so if we knew the
         economics of agriculture, we would know         3. If the income tax level is set above this
         much of economics of being poor”.                   level, then lowering taxes will increase
                                                             tax revenue.
         Which of the following document has used
         the above-given saying of the Economics        Select the incorrect statements using the
         Nobel Laureate Theodore Schultz?               code given below:
         (a) Food and Agriculture Organisation          (a) 1 and 2
              Report- 2017 (UNO)                        (b) 2 and 3
         (b) Economic Survey 2015-16 (GoI)              (c) 1 and 3
         (c) Union Budget 2017-18 (GoI)                 (d) 1, 2 and 3
         (d) World Development Report-2016           8. Consider the following statements about
              (World Bank)                              the ‘insurance repository system’, recently
      6. Consider the following statements regarding    introduced in India
         the ‘Taylor Rule’.                              1. Insurance policies will be held in
          1. A rule that suggests appropriate                electronic form.
              adjustments to interest rates, based       2. This will provide speed as well as
              on various economic factors such as            accuracy in revisions and changes in
              inflation and employment rate.                 the policies.
          2. The rule indicates that if inflation        3. IRDA has given licences to five firms
              or employment rates are higher                 to function as insurance repositories.
              than desired, interest rates should        4. Repositories are expected to cut
              be increased in response to these              down the management cost of each
              conditions, and the opposite action            insurance policy to almost one-fifth of
              should be taken under the opposite             the present cost.
              conditions.                               Select the correct statements using the code
         Select the incorrect statement/statements      given below:
         using the code given below:                    (a) 1, 2 and 3
         (a) Only 1                                     (b) 2, 3 and 4
         (b) Only 2                                     (c) 1, 3 and 4
         (c) Both 1 and 2                               (d) 1, 2, 3 and 4
         (d) None of the above                       9. Consider the following statements about
      7. Consider the following statements about        the idea of ‘inclusive growth’.
         the ‘Laffer Curve’.                             1. The idea of ‘inclusive growth’ entered
          1. This is a curve which supposes that for         into the domain of planning with the
              a given economy there is an optimal            Eleventh Plan.
              income tax level to maximise tax           2. This is not only about economics but
              revenues.                                      also about ‘social’ inclusion.