CAPF (AC) 2020 (Paper-1) (Question 51-100)

The phrase invisible hand was introduced by Adam Smith in his book 'The Wealth of Nations. It states that market price/mechanism act as the force that helps the demand and supply of goods in a free market to reach equilibrium automatically.

• Market Equilibrium refers to a state in which the supply of a particular commodity and its demand becomes equal.
• The market forces, automatically, drive both the producers and the consumers to the price at which Demand Curve and Supply Curve intersect each other.
• The price at which the Market Equilibrium is achieved is called the “Equilibrium Price” or “Market-Clearing Price”.

Fixation of price levels for wheat and rice by the Commission for Agriculture Costs and Prices (CACP) is an example of Support Price. The support price is a minimum price set by the government to ensure that farmers receive a fair and remunerative price for their crops. It provides a safety net for farmers, ensuring that they do not incur losses due to low market prices.

• In January 1965, the Commission for Agricultural Costs and Prices (CACP) was established.
• It was previously known as the Agriculture Price Commission before being renamed the Commission for Agricultural Costs and Prices (CACP) in 1985.
• CACP is a decentralised Government of India organisation. It serves as an advisory body to the Ministry of Agriculture and Farmers Welfare.
• Itis a statutory panel of the Government of India's Ministry of Agriculture and Farmers' Welfare.
• The CACP is an expert body that recommends to the Cabinet Committee on Economic Affairs (CCEA) the MSPs for the notified Kharif and Rabi crops.
• The Commission was formed to recommend Minimum Support Prices (MSPs) in order to encourage cultivators and farmers to adopt cutting-edge technology in order to optimise resource use and increase productivity.
• However, its recommendations are not legally binding on the government.

In an oligopoly market structure, a small number of large firms dominate the market. In the case of the mobile phone operators market in India, there are a few major players such as Jio, Airtel, Vodafone, and Idea, who control a significant portion of the market share. These firms have a significant influence over the pricing and output decisions, and they often compete on factors such as network coverage, pricing plans, and customer service.

A market situation where a large number of buyers and sellers deal in a homogeneous product at a fixed price set by the market is known as Perfect Competition. Homogeneous goods are goods of similar shape, size, quality, etc. In other words, in a perfectly competitive market, the
sellers sell homogeneous products at a fixed price determined by the industry and not by a single firm.

In the real world, the situation of perfect competition does not exist; however, the closest example of a perfect competition market is agricultural goods sold by farmers. Goods like wheat, sugarcane, etc., are homogeneous in nature and their price is influenced by the market.
Monopoly is a completely opposite form of market and is derived from two Greek words, Monos (meaning single) and Polus (Meaning seller).

A market situation where there is only one seller in the market selling a product with no close substitutes is known as Monopoly. For
example, Indian Railways. In a monopoly market, there are various restrictions on the entry of new firms and exit of existing firms. Also, there are chances of Price Discrimination in a Monopoly market.

A Monopolistic Competition Market consists of the features of both Perfect Competition and a Monopoly Market. A market situation in which there is a large number of firms selling closely related products that can be differentiated is known as Monopolistic Competition. The
products of monopolistic competition include toothpaste, shampoo, soap, etc.

For example, the market for soap enjoys full competition from different brands and has freedom of entry showing the features of a perfect competition market. However, every soap has its own different
features, which allows the firms to charge a different price for them. It shows the features of a Monopoly Market.

The Industrial sector and Infrastructure are major contributors to the Nonperforming assets (NPA) of banks. NPA refers to the classification for loans or advances that are in default or arrears. A loan is in arrears when principal or interest payments are late or missed.

• As perthe RBI guideline, banks are required to classify NPAs further into —
• Substandard assets: Assets which have remained NPA for a period less than or equal to 12 months.
• Doubtful assets: An asset that has remained in the substandard category for a period of 12 months.
• Loss assets: It is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted, although there may be some recovery value.

The distance between two successive crests or troughs of a sea wave is known as wavelength. Wave height is affected by wind speed, wind duration, or how long the wind blows, and fetch, which is the distance over water that the wind blows in a single direction. If wind speed is slow, only small waves result. If the wind speed is great but it only blows for a few minutes, no large waves will occur.

The Mediterranean countries are part of the region enclosing the Mediterranean Sea. These countries have coastlines on the Mediterranean Sea. And the Mediterranean region encompasses portions of three continents. There are many countries including Egypt, Libya, and Turkey. North Sudan is not a Mediterranean country.

The PAHAL scheme is related to LPG customers. The primary purpose of PAHAL is to ensure that LPG consumers get the subsidy to benefit directly into their account, therefore, eliminating any misuse of funds in the process.
PAHAL Scheme Working:

• The consumer books a gas cylinder at the market price.
• Once delivered, the government credits the subsidy amount directly into the linked bank account of the consumer.
  There are two types of consumers in the scheme:
• Primary Aadhaar-Based DBT (preferred): Aadhaar is linked with both the LPG consumer number and the bank account.
• Alternative (Non-Aadhaar-Based): Bank account is linked directly with the LPG consumer number if Aadhaar linking is not available.

Polje is the largest karst landforms. Polje is a large, flat-floored depression within karst limestone whose long axis develops in parallel with major structural trends and usually ranges from a few Sq. Km to hundred sq. Km. can be extended further.

• Karst is a landscape which is underlain by limestone which has been eroded by dissolution, producing towers, fissures, sinkholes, etc.
• Itis so named after a province of Yugoslavia on the Adriatic sea coast where such formations are most noticeable.
• Karst topography is a landscape formed from the dissolution of soluble rocks such as limestone, dolomite, and gypsum.
• Itis characterized by underground drainage systems with sinkholes, caves etc..

About Port of Call:

• It is an intermediate stop for a ship on its scheduled journey for cargo operation or transporting supplies or fuel. It is a port where a ship stops except its home port.
• These are the ports which originally developed as calling points on main sea routes where ships used to anchor for refuelling, watering and taking food items. Later on, they developed into commercial ports.
• Examples: Aden, Honolulu and Singapore are good examples.
• It is also called port of refuge, port of call is usually not a part of a ship’s itinerary. The vessel may “call” the said intermediate port and need a stopover due to various reasons, like:
  -Cargo operations (cleaning, repairs, or maintenance)
  -Stock up supplies (fuel, food, etc.)
  -Load and unload cargo -Unforeseen emergencies
• Depending on the reason for stopping, port of call can also be divided into subcategories, like:
• Dry harbor (for vessel maintenance), Cargo harbor (for cargo dispersal) and Fish harbor (for dropping fishes), etc.

B. The Censure Motion is an expression of strong disapproval or harsh criticism. It can be a stern rebuke by the opposition against the policies of the Government or an individual minister. It can also be passed to criticize, condemn some acts. Leave of the house is not required to move such a motion.
Key Features

• Can be moved against an individual minister or the entire council.
• Focuses on a specific policy, action, or failure.
• Passed by a simple majority of MPs present and voting.
• Does not lead to resignation, even if passed.
• Used more as a tool for moral pressure or political messaging.
• Example: If the opposition feels that the Home Minister mishandled a law-and-order situation, they can move a censure motion criticizing that decision.