Daily Quiz #85 UPSC Prelims Marathon – February 11, 2020

Explanation: Mixed economy is a golden mixture of capitalism and socialism. Under this system there is freedom of economic activities and government interferences for the social welfare. Hence it is a blend of both the economies. The concept of mixed economy is of recent origin. The developing countries like India have adopted mixed economy to accelerate the pace of economic development. Even the developed countries like UK, USA, etc. have also adopted ‘Mixed Capitalist System’. Mixed economy has following main features:
(i) Co-existence of Private and Public Sector
ii) Personal Freedom
(iii) Private Property is allowed
(iv) Economic Planning
(v) Price Mechanism and Controlled Price
(vi) Profit Motive and Social Welfare

Explanation: The economic profile of India was in complete distress at the time of Independence. Being a typical case of colonial economy, India was serving a purpose of development not for herself but for a foreign land—the United Kingdom. Both agriculture and industry were having structural distortions while the state was playing not even a marginal role. During the half century before India became independent, the world was having accelerated development and expansion in its agriculture and industry on the shoulders of the active role being played by the states, with the same happening in the UK itself. There was not only the unilateral transfer of investible capital to Britain by the colonial state (the ‘drain of wealth’), but the unequal exchange was day by day crippling India’s commerce, trade and the thriving handloom industry, too.

Explanation: The Extended Fund Facility is lending facility of the Fund of the IMF and it was established in 1974 to help countries address medium- and longer-term balance of payments problems. The EFF is prescribed for a country who is suffering from balance of payment problem caused by structural weaknesses and who need fundamental economic reforms. The use of the facility has increased substantially in the recent crisis period.

Explanation: The Intensive Agriculture District Programme (IADP) was launched as the first major experiment in intensive agriculture development in the year 1960. The IADP popularly known as package programme was launched in three districts in 1960 – 61 and four districts in 1962 – 63. The major objectives of the programme were to demonstrate the most effective ways of achieving rapid and significant increase in agriculture production through adoption of a package of improved practices and to suggest successful and adoptable innovations, approaches and procedures which could be adopted in similar areas of the country.

Explanation: Privatization is the process of transferring an enterprise or industry from the public sector to the private sector. The public sector is the part of the economic system that is run by government agencies. Privatization may involve either sale of government-held assets or removal of restrictions preventing private individuals and businesses from participating in a given industry. Privatization is an ongoing trend in many parts of the developed and developing world. Proponents of privatization maintain that the competition in the private sector fosters more efficient practices, which eventually yield better service and products, lower prices and less corruption.