Central Statistical Office (CSO)
(i)  It is responsible for co-ordination of statistical activities in the country and for evolving and maintaining statistical standards.
(ii) It compiles National Accounts, conducts Annual Survey of Industries and Economic Census, compiles Index of Industrial Production and Consumer Price Indices.
(iii) It deals with social statistics, training, international co-operation, Industrial Classification, etc.
National Sample Survey
Organisation
NSSO has four divisions:
(i) Survey Design and Research Division
(ii) Field Operations. Division
(iii) Data Processing Division
(iv) Co-ordination and Publication Division
The Programme Implementation Wing has 3 Divisions:
(i) Twenty Point Programme
(ii) Infrastructure Monitoring and Project Monitoring
(iii) Member of Parliament Local Area Development Scheme.
1. There is National Statistical Commission and one autonomous Institute, i.e., Indian Statistical Institute.

(i) The general objective of Econometrics is to give empirical content to economic theory
(ii) The specific objectives are :
(i) It helps to explain the behaviour of a forthcoming period that is forecasting economic phenomena.
(ii)  It helps to prove the old and established relationships among the variables or between the variables.
(iii) It helps to establish new theories and new relationships.
(iv) It helps to test the hypotheses and estimation of the parameter.

Three of the most important ways of classifying correlation are:
(i) Based on the direction of change of variables
Positive Correlation:
(i) The correlation is said to be positive if the values of two variables move in the same direction.
(ii) Ex. Y = a + bx
Negative Correlation:
(i) When the values of variables move in the opposite directions.
(ii)  Ex. Y = a - bx
(ii) Based on the number of variables studied.
Simple Correlation:
(i) If only two variables are taken for study.
Multiple Correlations:
(i) If three or more than three variables are studied simultaneously.
\(\operatorname{Ex}: Q_{d}=f\left(P, P_{v}, P, t, y\right)\)
Partial Correlation:
(i) If there are more than two variables but only two variables are considered keeping the other variables constant, then the correlation is said to be Partial Correlation.
(iii) Based on the constancy of the ratio of change between the variables
Linear Correlation:
(i) When on the amount of change in one variable tends to bear a constant ratio to the amount of change in the other.
(ii) Ex. Y = a + bx²
Non Linear:
(i) The amount of change in one variable does not bear a constant ratio to the amount of change in the other variables.
(ii) Ex. Y = a + bx²

Functional Planning:
(i) It refers to that planning which seeks to remove economic difficulties by directing all the planning activities within the existing economic and social structure.
Structural Planning:
(i) It refers to a good deal of changes in the socioeconomic framework of the country.
(ii) Under developed countries follow this type of planning.

1. Sir M. Vishveshwarya (1934) made the first attempt in laying foundation for economic planning in India through his book, "Planned Economy of India". It was a 10 year plan.
2. Jawaharlal Nehru (1938) set-up "National Planning Commission" by a committee but due to the World War II it did not materialize.
3. In 1940,8 leading industrialists of Bombay presented a 15 Year Bombay Plan.
4. In 1944 S. N Agarwal gave the Gandhian Plan focusing on the agriculture and rural economy.
5. M.N. Roy in 1945 drafted People's Plan aiming at mechanisation of agricultural production.
6. In 1950 J.P. Narayan advocated Sarvodaya Plan which was inspired by Gandhian Plan and with the idea of Vinoba Bhave.
7. It gave importance to agriculture, small and cottage industries.
8. After considering all the plans in the same year Planning Commission was set up to formulate Five Year Plan in India by Jawaharlal Nehru.
9. Nehru was the first Chairman of Planning Commission, Government of India.

Human Resources:
(i) Human power increases productivity and thus national income.
(ii) A healthy, educated and skilled labour force is the most important productive asset.
Technical Know-how:
(i) As the scientific and technological knowledge advances, more sophisticated techniques steadily raise the productivity in all sectors.
Political Freedom:
(i) Development is linked with political freedom.
(ii) Dadabhai Naoroji said the drain of wealth from India under British rule is the major cause of increase in poverty in India.
Social Organization:
(i) Mass participation in development programs is a pre condition for accelerating development
(ii) When some groups enjoy the benefits of growth and majority of the poor do not participate in the process of development it is called crony capitalism.
Corruption free administration:
(i) Tax evasion breeds corruption and prevents progress.
Desire for development:
(i) If the level of consciousness is low and the people have accepted poverty as their fate, there is little scope for development.
Moral, ethical and social values:
(i) If people are dishonest, market cannot function.
Casino Capitalism:
(i) If people spend larger propotion of their income on entertainment liquor, illegal activities, production suffers. This is called casino capitalism.
Patrimonial Capitalism:
(i) If assets are inherited by children, they would not work hard because they do not know the value of the assets. So, production is low.

a) Climate change
(i) Climate change refers to seasonal changes over a long period with respect to the growing accumulation of greenhouse gases in the atmosphere.
(ii) Industrial revolution has increased the concentration of carbon dioxide in the atmosphere by 40 %.
(iii) Several parts of the world have experienced warming of coastal waters, high temperatures, a marked change in rainfall patterns and an increased intensity and frequency of storms.
(iv) Sea levels and temperatures are expected to be rising.
b) Acid rain
(i) Acid rain is one of the results of air pollution.

(i) Electronic waste is the new by product of the Info Tech society.
(ii) It includes a growing range of electronic devices from household appliances, such as refrigerators, air conditioners, cell phones, computers.
(iii) e-waste can be defined as the result when consumer, business and household devices are sent for re-cycling (e.g., television, computers, audio-equipments, VCR, DVD, telephone, Fax, Xerox machines, wireless devices, video games).

Indoor Air Pollution:
(i) It refers to toxic contaminants that we encounter in our daily lives in our homes, schools and workplaces.
(ii) (e.g.) cooking and heating with solid fuels on open fires.
Outdoor Air Pollution:
(i) It refers to ambient air.
(ii) The common sources of outdoor air pollution are caused by combustion processes from motor vehicles, solid fuel burning and industry.

(i) A tax is a compulsory payment made to the government. Refusal to pay the tax is punishable.
(ii) There is no quid pro quo between a taxpayer and public authorities.
(iii) Tax payer cannot claim any specific benefit against the payment of a tax.
(iv) Every tax involves some sacrifice on the part of the tax payer.
(v)  A tax is not levied as a fine or penalty for breaking law.

Inclusive growth, Trade issues, Global governance, Shared Prosperity, International peace and security.

1. Basic Credit Facility
2. Extended Fund Facility
3. Compensatory Financing Facility
4. Buffer Stock Facility
5. Supplementary Financing Facility
6. Structural Adjustment Facility

Also known as floating exchange rate, the exchange rates are freely determined in an open market by market forces of demand and supply.

S.No	Classical Theory of International Trade	Modern Theory of International Trade
1	International trade is on the basis of labour theory of value.	International trade is on the basis of general theory of value.
2	It presents a one factor (labour) model.	It presents a multi factor (labour and capital) model.
3	It attributes the differences in the comparative costs to differences in the productive efficiency of workers in the two countries.	It attributes the differences in comparative costs to the differences in factor endowments in the two countries.

Objectives of Demonetisation :
(i) Removing Black Money from the country.
(ii) Stopping of corruption.
(iii) Stopping terror funds.
(iv) Curbing fake note

The IFCI does the following functions
(i) Providing long-term loans in rupees and foreign currencies.
(ii) Underwriting of equity, preference and debenture issues.
(iii) Subscribing to equity, preference and debenture issues.
(iv) Guaranteeing the deferred payments for machinery imported from abroad or purchased in India
(v) Guaranteeing of loans raised in foreign currency from foreign financial institutions.

Quantitative methods
1) Bank Rate Policy:
(i) It is the rate at which the Central Bank rediscount the first class.
(ii) The bank advances loans on approved securities to its member banks.
(iii) If the Central Bank wants to control credit, it will raise the bank rate.
(iv) So deposit rate and other lending rates rise, borrowing is discouraged.
2) Open Marker Operation:
(i) The Central Bank purchases and sells Government securities in the money market.
(ii) When banks or public buy these securities they have to pay to the Central Bank.
3) Variable Cash Reserves Ratio:
(i) The Central Bank controls credit by changing the Cash Reserve Ratio.
(ii) If Commercial Banks have excessive cash reserves and create too much credit, the central bank will raise the CPR.
(iii) If CRR is high, commercial bank's capacity to create credit will be less.
Qualitative Methods
1) Rationing of Credit:
(i) It controls and regulates the purposes for which credit is granted by commercial banks.
(ii) It is of 2 types - variable portfolio ceiling and variable capital asset ratio
2) Direct Action:
(i) Direct action is taken against erring banks
3) Moral Suasion:
(i) Central Bank gives advice, then requests and persuades the Commercial Banks to co-operate with the Central Bank in implementing its credit policies.
4) Publicity:
(i) A policy can be effectively successful only when an effective public opinion is created in its favour.
5) Regulation of Consumer's Credit:
(i) The down payment is raised and the number of installments reduced for credit sale.
6) Changes in the Marginal Requirements on Security Loans:
(i) The margin requirements can be increased to prevent excessive use of credit for stock exchange speculation

(i) The Marshall equation is
M = KPY where
(ii) M is the quantity of money
(iii) Y is the aggregate real income of the community
(iv) P is purchasing power of money
(v) K is the fraction of the real income which the public desires to hold in the form of money.
P= M / KY
(vi) The value of money is 1 / P = KY / M.

(i) On the basis of speed there are four types of inflation - Creeping inflation, Walking Inflation, Running inflation, Galloping inflation.
(ii) Demand-Pull inflation, Cost-Push inflation.
(iii) On the basis of inducement - currency inflation, credit inflation, deficit induced inflation, profit induced inflation, scarcity induced inflation, tax induced inflation.

(i) Money supply means the total amount of money in an economy.
(ii) It refers to the amount of money which is in circulation in an economy at any given time.
(iii) Money supply determines the price level and interest rates.
(iv) Money supply viewed at a given point of time is a stock and over a period of time it is a flow.

(i) Payment towards past debts
(ii) Purchase of existing wealth
(iii) Import of goods and services
(iv) Non availability of consumer goods
(v) Full employment situation

S. No Accelerator Effect Multiplier Effect 1. First developed by R. F. Khan redefined by Keynes Developed by J.M. Clark. Further developed by Hicks, Samuelson 2. It is the ratio of the change in national income to a change in investment.
\(K=\frac{\Delta Y}{\Delta I}\) It is the ratio between induced investment and an initial change in
consumption
\(\beta=\frac{\Delta \mathrm{I}}{\Delta \mathrm{C}}\)

S. No	Autonomous Investment	Induced Investment
2.	Independent	Planned
3.	Income inelastic	Income elastic
4.	Welfare motive	Profit motive

(i) In the Keynesian model, output is determined mainly by aggregate demand.
(ii) The aggregate demand is the amount of money which entrepreneurs expect to get by selling the output produced by the labourers employed.
(iii) Aggregate demand (spending) is the amount that households, firms, the governments and the foreign purchasers would like to spend on domestic output
Aggregate demand has four components:
1. Consumption demand (C)
2. Investment demand (I)
3. Government expenditure (G)
Net Export ( export - import) (X - M)
AD = C + I + G + (X - M)

(i) Automatic working without any government intervention.
(ii) Efficient use of resources.
(iii) Incentives for hard work.
(iv) Production and productivity are high, so there is economic progress.
(v) Consumers sovereignty exist.
(vi) Increased saving and investment leads to higher capital formation.
(vii) Development of new technology.