Answer: C

Explanation:

The Reserve Bank of India is the authority to control inflation through monetary policies.

Some government steps to control inflation:

Fiscal Measures: Lowering import duty on food items, reducing subsidies and indirect taxes under the Food Security Act, 2013.

Administrative measures include a ban on the export of food items, deportation, free medical and health services for Ayushman Bharat, etc.

Other measures include: Ban on the export of all pulses, Zero import duty on pulses and onions, and Empowering States/UTs to impose stock limits on certain food items like essential food items, Edible Oilseeds under the Essential Commodities Act.

Hence, option (c) is correct.

Answer: D

Explanation:

Unemployment occurs when a person who is actively seeking employment is unable to find work. It is often used as a measure of the health of the economy.

Types of Unemployment:

Frictional unemployment occurs when workers lose their current job and are in the process of finding another. This is often referred to as voluntary unemployment.

Disguised unemployment occurs when more people are employed than are actually needed. It is mainly confined to the agricultural and unorganized sectors of India.

Classified unemployment occurs when wages are too high. Such unemployment dominated economic theory before the 1930s. It is also called real wage unemployment.

Structural unemployment arises from the mismatch between the jobs available in the market and the skills of the workers available in the market. Globalization is an important cause of structural unemployment in many countries.

Hence, option (d) is correct.

Answer: C

Explanation:

Strategic disinvestment is the transfer of ownership and control of a public sector unit to another entity. It is the sale of a substantial portion of the government shareholding in Central Public Sector Enterprises (CPSEs) up to 50%, or such a high percentage. NITI Aayog identifies PSUs for strategic disinvestment. Hence statement 1 is correct.

Disinvestment is undertaken to reduce the fiscal burden on the exchequer or to raise funds to meet specific needs, such as meeting shortfalls in revenue from other regular sources. The fiscal burden includes not only the impact of taxes on the budget but also the impact of the government's other, non-tax revenues. Hence statement 2 is correct.

Answer: B

Explanation:

Capital expenditure is the expenditure of the government that results in the creation of physical or financial assets or the reduction of financial liabilities. Capital expenditure includes expenditure related to land acquisition, building construction, machinery equipment, investment in shares and loans, and advances provided by the central government to state governments and union territories and to public enterprises and other parties. Hence, option (b) is correct.

Answer: A

Explanation:

'Tax expenditure' refers to the opportunity cost of levying tax at concessional rates or the opportunity cost of giving exemptions, credits, etc. to taxpayers. The cost of each tax concession is determined separately, assuming that all other tax provisions remain unchanged. It is not related to the expenditure incurred by the government in the collection of taxes. Hence statements 1 and 2 both are incorrect.

A tax expenditure is matched by exemptions given when the tax burden becomes too difficult for the sustainability of a particular sector. Hence statement 3 is correct.