Bihar Public Service Commission (BPSC)-PT Exam Solved Paper (Exam Held On: 17/04/2011)

1. In which country is 'Takla Makan' desert situated?
(A) Kazakhstan
(B) Turkmenistan
(C) Uzbekistan
(D) China

2. Which strait connects Red Sea and Indian Ocean?
(A) Bab-el-Mandeb
(B) Hormuz
(C) Bosporus
(D) Malacca

3. Where is 'Ninety East Ridge' situated?
(A) Pacific Ocean
(B) Indian Ocean
(C) Atlantic Ocean
(D) Arctic Ocean

4. Which of the following is not a capital city?
(A) Canberra
(B) Sydney
(C) Wellington
(D) Riyadh

5. The highest coal-producing country in the world is
(A) India
(B) USA
(C) China
(D) Russia

6. Folding is the result of
(A) epeirogenetic force
(8) Coriolis force
(C) orogenetic force
(D) exogenetic force

7. Amritsar and Shimla are almost on the same latitude, but their climate difference is due to
(A) the difference in their altitudes
(B) their distance from sea
(C) snowfall in Shimla
(D) pollution in Amritsar

8. Coal mines in Jharkhand are located at
(A) Jharia
(B) Jamshedpur
(C) Ranchi
(D) Lohardaga

9. Major source of oceanic salinity is
(A) rivers
(B) land
(C) wind
(D) ash from volcanoes

10. The large States of India in the order of area are
(A) Rajasthan, Madhya Pradesh, Maharashtra
(B) Madhya Pradesh, Rajasthan, Maharashtra
(C) Maharashtra, Rajasthan, Madhya Pradesh
(D) Madhya Pradesh, Maharashtra, Rajasthan

11. Bihar is the -- largest State of India according to Census 2001.
(A) second
(B) third
(C) fourth
(D) fifth

12. The highest wheat-producing State of India is
(A) Haryana
(B) Punjab
(C) Bihar
(D) Uttar Pradesh

13. TISCO plant is located near
(A) Patna
(B) Darbhanga
(C) Dhanbad
(D) Tatanagar

14. Which States in India are the largest producers of sugarcane?
(A) Bihar and Uttar Pradesh
(B) Uttar Pradesh and Rajasthan
(C) Andhra Pradesh and Jammu and Kashmir
(D) Punjab and Himachal Pradesh

15. Which of the following States has the largest number of people belonging to Scheduled Caste?
(A) Bihar
(B) West Bengal
(C) Uttar Pradesh
(D) Punja

16. According to 2001 Census, what is the total population of Bihar?
(A) 82998509
(B) 76210007
(C) 96878627
(D) 80176197

17. The East Central Railway zone headquarters is located at
(A) Patna
(B) Hajipur
(C) M uzaffarpur
(D) Katihar

18. Where is Industries Commissioner Office of Bihar situated?
(A) Patna
(B) Gaya
(C) Hajipur
(D) Muzaffarpur

19. North Bihar is famous for
(A) agricultural prosperity
(B) heavy industries
(C) flood
(D) famine

20. Which one is not located on National Highway-2 (NH-2)?
(A) Aurangabad
(B) Sasaram
(C) Mohania
(D) Patna

21. Congress passed the 'Swaraj' resolution in the year 1905. The purpose of the resolution was
(A) right to make a constitution for themselves but it was not done
(B) to secure self-rule
(C) responsible government
(D) self-government

22. The Provincial were constituted Act of Governments under the
(A) 1935
(B) 1932
(C) 1936
(D) 1947

23. The Indian comprises of Constitution
(A) 395 Articles, 22 Parts and 12 Schedules
(B) 371 Articles, 21 Parts and 11 Schedules
(C) 372 Articles, 20 Parts and 7 Schedules
(D) 381 Articles, 23 Parts and 8 Schedules

24. The Rajya Sabha consists of
(A) 280 members of which 20 members are nominated by the President of India
(B) 275 members of which 18 members are nominated by the President of India
(C) 250 members of which 12 members are nominated by the President of India
(D) 252 members of which 12 members are nominated by the President of India

25. January 26 was selected as the date for the inauguration of the Constitution, because
(A) the Congress had observed it as the Independence Day in 1930
(B) on that day the Quit India Movement was started in 1942
(C) it was considered to be an auspicious day
(D) None of the above

26. The Public Accounts Committee submits its report to
(A) the Comptroller and Auditor General
(B) the Speaker of the Lok Sabha
(C) the Minister of Parliamentary Affairs
(D) the President of India

27. Of the following statements, which one is not correct?
(A) The Rajya Sabha is powerless in money matter
(B) Money Bills originate in the Rajya Sabha
(C) The Rajya Sabha has to pass Bills within 14 days after they are passed by the Lok Sabha
(D) The Rajya Sabha may pass or return the Money Bill with some recommendations to the Lok Sabha

28. Which of the following rights conferred by the Constitution of India is also available to non-citizens?
(A) Right to constitutional remedies
(B) Freedom to speech
(C) Freedom to move and settle in any part of the country
(D) Freedom to acquire property

29. Who is the head of the National Defence Committee?
(A) Home Minister
(B) Prime Minister
(C) President
(D) Vice-President

30. 'National Emergency' may be declared by the President of India in line with
(A) Article 352
(B) Article 370
(C) Article 371
(D) Article 395

31. Of the following statements, which one is not correct?
(A) Supreme Court was constituted in 1950
(B) Supreme Court is the highest court of appeal in the country
(C) Supreme Court can hear from any High Court/Tribunals except from Court-martial
(D) Supreme Court can hear from any High Court/ Tribunals as well as from Court-martial

32. Who is the constitutional head of the State Governments?
(A) Chief Minister
(B) Governor
(C) Speaker
(D) High Court Judge

33. Commercial sources of energy purely consist of
(A) power, coal, oil, gas, hydro-electricity and uranium
(B) coal, oil, firewood, vegetable waste and agricultural waste
(C) power, coal, animal dung and firewood
(D) coal, gas, oil and firewood

34. In India, per capita consumption of energy in 1994 was
(A) 300 kg of oil equivalent
(B) 360 kg of oil equivalent
(C) 243 kg of oil equivalent
(D) 343 kg of oil equivalent

35. When did the first oil crisis/ energy crisis occur in India?
(A) During 1950's and 1960's
(B) During 1930's and 1940's
(C) During 1990's and 2000's
(D) During 1970's and 1980's

36. Consider the following reasons for financial sickness of State Electricity Boards (SEBs) in India:
I. Sale of power to agricultural and domestic consumers below the cost of production
II. Transmission and distribution losses are very high
III. Lack of commercial autonomy for SEBs
IV. State Governments have implemented social subsidy policies through SEBs

37. Which of the above are correct?
(A) I, II and III
(B) I, II, III and IV
(C) I, III and IV
(D) II, III and IV

37. Which type of economy does India have?
(A) Socialist
(B) Gandhian
(C) Mixed
(D) Free

38. When was 'Speed Post Service' launched by the Indian Postal Department as competition to the 'Courier Service'?
(A) 1988
(B) 1987
(C) 1989
(D) 1986

39. We witnessed the first telephones in India in which year?
(A) 1951
(B) 1981
(C) 1851
(D) 1861

40. Consider the following problems being faced by the Indian Coal Industry :
I. Poor quali ty of coal and bottlenecks m the coal movement
II. Low utilisation capacity of washeries
III. Growing dependence on the import of coking coal
IV. Administered prices
Which of the above are correct?
(A) II, III and IV
(B) I, II, III and IV
(C) I, III and IV
(D) I, II and III

41. Name the committee which was set up by the NDC in 1957 for the reorganisation of CDP and NES, which suggested a three tier system of rural local government
(A) Balwant Rai Mehta Committee
(B) Ashok Mehta Committee
(C) Maharashtra Committee on Democratic Decentralisation
(D) Rural-Urban Relationship Committee

42. Ashok Mehta recommended
(A) three-tier government of Panchayati Raj Committee
(B) two-tier government of Panchayati Raj
(C) single-tier government of Panchayati Raj
(D) multiple-tier government of Panchayati Raj

43. Consider the following about the 'Rolling Plan':
I. A plan for the current year which includes the annual budget
II. A plan for a fixed number of years, say 3, 4 or 5
III. It is revised every year as per requirements of the economy
IV. A perspective plan for 10, 15 or 20 years
Which of the above are correct?
(A) I and II
(B) I and III
(C) II and III
(D) I, II, III and IV

44. In which year was the 'Planning Commission' set up in India?
(A) 1950
(B) 1947
(C) 1948
(D) 1951

45. Patna International Airport is directly connected with
(A) Kathmandu (Nepal), New Delhi, Kolkata, Mumbai, Lucknow, Varanasi and Ranchi
(B) Bengaluru, Hyderabad and Dhaka
(C) Islamabad, Dhaka and Bengaluru
(D) Washington, Dhaka and Chennai

46. In Bihar, air services are provided by
(A) only Indian Airlines
(B) only Sahara Airlines
(C) only Royal Nepal Airlines
(D) Indian Airlines, Sahara Airlines and Royal Nepal Airlines

47. For Bihar, in 1993-94, the Planning Commission estimated that percentage of below poverty line (BPL) was
(A) 55
(B) 65
(C) 45
(D) 35

48. In Bihar, though 'Zamindari' was statutorily abolished In 1952, the social base of land control remained in the grip of
(A) Middle Caste Hindus
(B) Scheduled Caste Hindus
(C) Dominant Caste Hindus
(D) Scheduled Tribe Hindus

49. Bihar State (before separation) had how many 'Industrial Area Development Authorities'?
(A) Six, viz., Adityapur, Bokaro, Patna, Ranchi, Darbhanga and Muzaffarpur
(B) Five, viz., Adityapur, Bokaro, Darbhanga, Muzaffarpur and Patna
(c) Seven, viz., Adityapur, Darbhanga, Ranchi and Bokaro, Patna, Muzaffarpur, Bhojpur
(d) Four, viz., Adityapur, Bhojpur and Muzaffarpur, Khagaria

50. In Bihar, name the scheme which aims at building up infrastructural facilities of high standard, required for establishment of 'Export oriented Units'
(A) Integrated Infrastructural Development (IID)
(B) Export Promotion Industrial Park (EPIP)
(C) Concept of Build-Operate- Transfer (BOT)
(D) Software/Hardware Technology Park (STP /HTP)

51. "Swaraj is my birthright and I shall have it." Who said?
(A) M. K. Gandhi
(B) Jawaharlal Nehru
(C) Bal Gangadhar Tilak
(D) Bhagat Singh

52. The Madras Mahajan Sabha was established in the year
(A) 1880
(B) 1881
(C) 1882
(D) 1883

53. How many representatives took part in the First Session of the Indian National Congress?
(A) 52
(B) 62
(C) 72
(D) 82

54. The first Indian Governor General of Independent India was
(A) Raja Gopalachari
(B) Surinder Nath
(C) Rajendra Prasad
(D) B. R. Ambedkar

55. When was the National Council of Education established?
(A) 15th August, 1903
(B) 15th August, 1904
(C) 15th August, 1905
(D) 15th August, 1906

56. The Non-Cooperation Movement was started in
(A) 1918
(B) 1920
(C) 1921
(D) 1922

57. The Montagu-Chelmsford Report formed the basis of
(A) the Indian Independence Act, 1947
(B) the Indian Councils Act, 1909
(C) the Government of India Act, 1919
(D) the Government of India Act, 1935

58. Who is popularly known as 'Sher-e-Punjab,?
(A) Rajguru
(B) Bhagat Singh
(C) Lala Lajpat Rai
(D) Udham Singh

59. Gandhi-Irwin Pact took place in
(A) 1930
(B) 1931
(C) 1932
(D) 1933

60. Which Round Table Conference held in 1932?
(A) First
(B) Second
(C) Third
(D) Fourth

61. Who is associated with 'Abhinav Bharat'?
(A) V. D. Savarkar
(B) C. R. Das
(C) B. G. Tilak
(D) S. C. Bose

62. 'Do or Die' is associated with the following movement
(A) Dandi
(B) Non-Cooperation
(C) Khilafat
(D) Quit India

63. With whose efforts was Second Bihar Provincial Congress Session held?
(A) G. K. Gokhale
(B) Shri Deepnarayan Singh
(C) Shri Krishna
(D) Surendranath Banerjee

64. At which place was the 27th Session of the Indian National Congress held?
(A) Bhagalpur
(B) Patna
(C) Ranchi
(D) Bankipur

65. The 16th Session of Bihari Students' Conference at Hazaribag took place in
(A) 1921
(B) 1922
(C) 1923
(D) 1924

66. The editor of 'Bihari', a leading newspaper of Bihar, was
(A) Babu G. Prasad
(B) Babu Ram Prasad
(C) Babu Gopal Prasad
(D) Babu Maheshwar Prasad

67. Raj Kumar Shukla was resident of the village
(A) Murli Bharhawa
(B) Murli Bheet
(C) Murli Dheer
(D) Murli Kher

68. Shri Nivaranchandra Dasgupta belonged to
(A) Patna
(B) Purulia
(C) Hazipur
(D) Meenapur

69. Kunwar Singh was the King of
(A) Hamirpur
(B) Dheerpur
(C) Jagdishpur
(D) Rampur

Answer:C

70. Lord Sinha had resigned in 1921 from the post of Governor of
(A) Bihar-Orissa
(B) Bengal
(C) Punjab
(D) Madras

71. The value of x - [y - {z - (x - y - z)}j is
(A) x+ y+z
(B) x - y-z
(C) 1
(D) °

72. If the function f : I --? R, f(x) = log x then the value of f(x) + f(y) is
(A) f(xy)
(B) f(x+ y)
(C) f (x/y)
(d) f(y/x)

73. The median of 2, 4, 6, 8, 10, 12, 14, 16 is
(A) 8
(B) 9
(C)10
(D)11

74. The inverse of the matrix is
75. The length of the minute hand of a clock is 12 cm. Then the area swept by the minute hand in one minute will be
(A) 22·12 cm2
(B) 23·10 cm2
(C) 24·12 cm2
(D) None of the above

76. A player completes 2200-metre race in any circular path with 7 revolutions. Then the radius of the circular path is ( 1t = ~2)
(A) 30 metres
(B) 40 metres
(C) 50 metres
(D) 60 metres

77. The coordinates of the mid- point on joining the points P (4, 6) and Q (- 4, 8) will be
(A) (2, 7)
(B) (7, 2)
(C) (7, 0)
(D) (0, 7)

78. The solution of the differential equation
d2 d
-----.l:L - 3-.1{ + 2y = e5x
dx2 dx
is
A) y = C eX + C e2x + ~e5x
1 2 12
B) Y = C e-x + C e2x + ~e5X
1 2 12
C) y = C eX + C e-2x + ~ e5x
1 2 12

79. In triangle PQR if L.P = 1200 and PQ = PR, then L. Q and L.R will be respectively
(A) 60°, 30°

(B) 30°, 40°

(C) 30°, 30°

(D) 20°, 40°

80. The value of is

lim X→0

(A) 0
(B) loge ~ b
(C) log - ea
(D) a- b

81. The visible range of solar radiation is
(A) 100-400 nm (B) 400-700 nm (C) 740-10000 nm (D) None of the above

82. Plants which grow on saline soils are
(A) xerophytes
(B) hydrophytes

(C) halophytes
(D) succulents

83. Environment is a composite state of
(A) biotic factors
(B) physiographic factors (C) abiotic factors
(D) All of the above

84. Water is conducted in vascular plants by
(A) phloem tissue
(B) parenchyma tissue (C) meristems
(D) xylem tissue

85. Which component of plants receives stimulus for flowering?

(A) Stems

(B) Branches

(C) Leaves

(D) Roots

86. Minerals are
(A) liquids
(B) inorganic solids(C) gases
(D) All of the above

87. Development of the natural systems is described as
(A)~nction of the systems
(B) evolution of the systems
(C) self-sustained process of the systems
(D) None of the above

88. Genetics deals with

(A) Mendel's laws
(B) organic evolution
(C) DNA structure
(D) heredity and variations

89. Mendel's principles of inheri- tance are based on
(A) vegetative reproduction (B) asexual reproduction (C) sexual reproduction
(D) All of the above

90. Embryo is found in

(A) flowers
(B) leaves
(C) seeds
(D) buds

91. What soil particles are present in loamy soils?
(A) Sand particles(B) Clay particles (C) Silt particles
(D) All types of particles

92. A single type of atom is found in

(A) compounds of minerals
(B) mixture of minerals
(C) native elements
(D) None of the above

93. Soil water available to plants is maximum in
(A) clayey soil (8) silty soil (C) sandy soil (D) loamy soil

94. Capillaries are most effective in (A) clayey soil
(8) silty soil
(C) sandy soil
(D) loamy soil

95. Photosynthesis occurs in

(A) nucleus

(b) mitochondria

(C) chloroplast

(D) peroxisome

96. Continents have drifted apart because of
(A) volcanic eruptions (8) tectonic activities
(C) folding and faulting of rocks (D) All of the above

97. Which of the following do not belong to solar system?
(A) Asteroids
(8) Comets
(C) Planets
(D) Nebulae

98. Table salt (NaCI) is a product of
(A) weak acid and weak base
(B) strong acid and strong base
(C) weak acid and strong base
(D) strong acid and weak base

99. Sexual reproduction causes genetic variation because of
(A) blending of genes
(B) chromosomal changes
(C) Shuffling of genes
(D) All of the above

100. Average salinity of water of Arabian Sea is
(A) 25 ppt (8) 35 ppt (C) 45 ppt (D) 55 ppt

101. Who among the following is the winner of the Mahatma Gandhi International Award for Peace and Reconciliation, 2009?
(A) Yukia Amano
(B) Aung San Suu Kyi
(C) Bill Gates
(D) Hillary Clinton

102. 'Durand Cup' is associated with the game of

(A) football
(B) polo
(C) cricket
(D) hockey

103. For which word, the letter 'G' has been used in '2G Spectrum'?
(A) Global
(B) Government
(C) Generation
(D) Google

104. Former Central Minister for Communication and Information Technology, Mr. A. Raja belongs to which of the following parties?
(A) Congress
(B) BJP
(C) Communist Party of India
(D) DMK

105. Which one of the following numbered Rajdhani trains covers the longest distance?
(A) 12429 Bangalore City Junction
(B) 12431 Trivandrum Central
(C) 12433 Chennai Central
(D) 12435 Dibrugarh Town

106. What is the minimum age of a person whose photographing, fingerprinting and iris mapping will be done for the Census of 2011?

(A) 12 years
(B) 15 years
(C) 18 years
(D) 21 years

107. The Union Cabinet, on August 2010, decided to form institutes like the All India Institute of Medical Sciences (AIIMS) in which six States?
(A) Bihar, Chhattisgarh, Madhya Pradesh, Orissa, Rajasthan, Uttarakhand
(B) Bihar, Uttar Pradesh, Himachal Pradesh, Haryana, Kerala, Gujarat
(C) Bihar, Uttarakhand, Jharkhand, Orissa, Andhra Pradesh, Maharashtra
(D) Bihar, Tamil Nadu, Karnataka, Uttar Pradesh, Jammu and Kashmir, Assam

108. Which was reported the richest party according to the 'National Election Watch' on August 2010?
(A) BSP
(B) BJP
(C) Socialist Party
(D) Congress

109. Which party-wise performance is correct for Bihar Assembly Elections, 2010 in comparison to the elections of 2005?
JDU BJP RJD WP CONG OTHERS
(A) +40 +25 -30 -10 -7 -19
(B) +25 +34 -20 -5 -3 -11
(C) +27 +36 -32 -7 -5 -19
(D) + 17 +46 -15 -10 -10 -10

110. Till 2010, which State Governments have provided 50 percent reservation for women in local bodies?
(A) Bihar, Uttar Pradesh, Rajasthan
(B) Bihar, Madhya Pradesh, Himachal Pradesh
(C) Bihar, Madhya Pradesh, Kerala
(D) Bihar, Himachal Pradesh, Uttar Pradesh

111. 'AVAHAN', the Indian segment of 'Bill and Melinda Gates Foundation', is engaged in the prevention of
(A) dengue
(B) polio
(C) HIV / AIDS
(D) filariasis

112. A recently held underwater meeting has drawn attention world over. The meeting was held by
(A) Some Somali pirates to make a new strategy for capturing ships for ransom
(B) Some environmental scientists for promoting awareness for saving water
(C) some activists environmental awareness for promoting against air pollution
(D) The cabinet of a country to highlight the threat of rising sea level for any country

113. Which one of the following cities is not located on the bank of river Ganga?
(A) Fatehpur
(B) Bhagalpur
(C) Uttarkashi
(D) Kanpur

114. Which one of the following is a human right as well as a fundamental right under the Constitution of India?
(A) Right to Information
(B) Right to Work
(C) Right to Education
(D) Right to Housing

115. The time at Cairo is 2 hours ahead of Greenwich. Hence, it is located at
(A) 30° W longitude
(B) 30° E longitude
(C) 28° E longitude
(D) 28° W longitude

116. The headquarters of International Court of Justice is at
(A) Hague
(B) New York
(C) Geneva
(D) Paris

117. In the world's best countries' list, compiled by the reputed 'News Week' magazine in 2010, the first position went to Finland. What was the rank of India?

(A)17
(B)48
(C)66
(D)78

118. Which university was ranked first in the list of '2010 Academic Rankings of the World Universities '?
(A) Jawaharlal Nehru University, India
(B) Cambridge University, Britain
(C) Harvard University, USA
(D) Massachusetts Institute of Technology, USA

119. Which date is known as 'Diabetes Day'?
(A) 14th February
(B) 14th May
(C) 14th September
(D) 14th November

120. In which country, Ms. Julia Gillard was made the first woman Prime Minister in the year 2010?
(A) Australia
(B) Canada
(C) Germany
(D) Poland

121. Which country's parliament has banned 'Burqa' by passing a law on 14th September, 2010?
(A) USA
(B) France
(C) Italy
(D) Holland

122. Mr. Arjun Munda was on September 11, 2010 sworn in as the Chief Minister of Jharkhand. How many MLAs in the 81- member Assembly supported him?
(A) 41
(C) 50
(B) 45
(D) 55

123. Mr. P. J. Thomas has been appointed as the Central Vigilance Commissioner on September 7,2010. He is an IAS Officer of the following State's cadre
(A) Assam
(B) Karnataka
(C) Kerala
(D) Tamil Nadu

124. What was the maximum amount which has been provided as financial autonomy by the Ministry of Heavy Industries and Public Enterprises of Union Government to the 'Mini Ratna', category I?
(A) Rs 250 crore
(B) Rs 350 crore
(C) Rs 400 crore
(D) Rs 500 crore

125. When was the Right to Education added through the amendment in the Constitution of India?
(A) 1st April, 2010
(B) 1st August, 2010
(C) 1st October, 2010
(D) 1st December, 2010

126. Match the achievements of India in the XVI Asian Games, 2010 :
1. Rank P. 14
2. Gold Q. 33
3. Silver R. 06
4. Bronze S. 17
(A.) 1 2 3 4
Q R P S
(B) 1 2 3 4
R P S Q
(c.) 1 2 3 4
P Q R S
(D) 1 2 3 4
S R P Q

127. To which institute, Shubha Tole, the first woman awardee of prestigious Shanti Swarup Bhatnagar Prize, 2010 in the field of Science, belongs?
(A) Tata Institute of Fundamental Research, Mumbai
(B) Indian Institute of Science Education and Research, Pune
(C) Indian Institute of Technology, Kanpur
(D) Indian Institute of Science"Bengaluru

128. Which Indian was honoured by the 'World Statesman Award, 2010'?
(A) Mrs. Sonia Gandhi
(B) Atal Bihari Vajpayee
(C) Dr. Manmohan Singh
(D) Lal Krishna Advani

129. India's Third Research Centre at Antarctica is name as
(A) Bharti
(B) Swagatam
(C) Hindustan
(D) Maitri

130. In Commonwealth Games, 2010, India won 101 medals. Out of them, how many medals have been received by team events, women and men respectively?
(A) 0, 37, 64
(B) 2, 35, 64
(C) 1, 37, 63
(D) 1, 36, 64

131. Which of the following is a Harappan port?
(A) Alexandria
(B) Lothal
(C) Mahasthangarh
(D) Nagapattanam

132. The Gupta emperor who defeated the 'Hunas' was
(A) Samudragupta
(B) Chandragupta II
(C) Skandagupta
(D) Ramgupta

133. What is the name of Kalhana's book?
(A) Arthashastra
(B) Indica
(C) Purana
(D) Rajtarangini

134. Which inscription tells about the various achievements of Rudradaman I?
(A) Junagarh
(B) Bhitari
(C) Nasik
(D) Sanchi

135. Who was the first ruler of the Slave dynasty?
(A) Qutubuddin Aibak (B) Iltutmish (C) Razia (D) 'Balban

136. Who was the ruler of Devgiri at the time of Alauddin Khalji's invasion?
(A) Prataprudra bev (B) Ramchandra Dev (C) Malik Kafoor (D) Rana Ratan Singh

137. Who of the following Muslim rulers abolished the pilgrimage tax?
(A) Bahalol Lodi (B) Sher Shah (C) Humayun (D) Akbar

138. What was 'Dar-ul-Shafa' established by Firoz Tughlaq?
(A) An alms house
(B) A free hospital
(C) A library
(D) A guesthouse for pilgrims

139. The 'Permanent Settlement' was made with
(A) Zamindars (B) village communities (C) Muqaddamas (D) peasants

140. Who was the founder of 'Prarthana Samaj?
(A) Atmaram Panduranga (B) Tilak (C) Annie Besant (D) Rasbihari Ghosh

141. Who was the father of Indian Renaissance?
(A) Bal Gangadhar Tilak
(B) Dayananda Saraswati
(C) Shraddhananda
(D) Raja Ram Mohan Roy

142. 'Swaraj Dal' was founded by
(A) Tilak and Chittaranjan Das
(B) Gandhi and Motilal Nehru
(C) Gandhi and Tilak
(D) Chittaranjan Das and Motilal Nehru

143. Who founded the 'Theosophical Society'?

(A)Madame H, P. Blavatsky
(B) Raja Ram Mohan Roy
(C) Mahatma Gandhi
(D) Swami Vivekananda

144. Which one of the following books was written by Tilak?

(A) India in Transition
(B) Gita Rahasya
(C) Gokhale-My Political Guru
(D) Discovery of India

145. Where was Mahaveer Swami born?
(A) Kundagram
(B) Pataliputra
(C) Magadh
(D) Vaishali

146. Where did Mahatma Buddha's 'Mahaparinirvan' take place?
(A) Lumbini
(B) Bodh Gaya
(C) Kushinara
(D) Kapilavastu

147. At which place did Mahatma Buddha give his first 'Dharmachakrapravartan '?
(A) Lumbini
(B) Sarnath
(C) Pataliputra
(D) Vaishali

148. What was the early capital of Magadh?
(A) Pataliputra
(B) Vaishali
(C) Rajagriha (Girivraja)
(D) Champa

149. What was the name of the dynasty of Ajatshatru?
(A) Maurya
(B) Haryanka
(C) Nanda
(D) Gupta

150. The Third Buddhist Council was convented at
(A) Takshashila
(B) Sarnath
(C) Bodh Gaya
(D) Pataliputra

Answer Sheet
1	2	3	4	5	6	7	8	9	10
D	A	B	B	C	C	A	A	C	A
11	12	13	14	15	16	17	18	19	20
B	D	D	A	C	A	B	A	C	D
21	22	23	24	25	26	27	28	29	30
B	A	A	C	A	B	B	A	A	C
31	32	33	34	35	36	37	38	39	40
D	B	A	A	D	C	C	D	D	B
41	42	43	44	45	46	47	48	49	50
A	B	B	A	A	D	D	C	A	B
51	52	53	54	55	56	57	58	59	60
C	D	C	A	D	B	C	C	B	C
61	62	63	64	65	66	67	68	69	70
A	D	B	D	A	D	A	B	C	A
71	72	73	74	75	76	77	78	79	80
C	C	B	C	D	C	D	C	C	B
81	82	83	84	85	86	87	88	89	90
B	C	D	C	C	C	C	C	C	C
91	92	93	94	95	96	97	98	99	100
D	C	C	C	C	C	C	C	D	C
101	102	103	104	105	106	107	108	109	110
B	A	C	A	B	B	A	D	C	B
111	112	113	114	115	116	117	118	119	120
C	D	C	C	B	A	D	C	D	A
121	122	123	124	125	126	127	128	129	130
B	B	C	D	A	C	A	C	A	B
131	132	133	134	135	136	137	138	139	140
B	C	D	A	A	B	D	B	A	A
141	142	143	144	145	146	147	148	149	150
A	D	A	B	D	C	B	C	B	D

Economics: The Basics

Economics
When wants exceed the resources available to satisfy them, there is scarcity. Faced with scarcity, people must make choices. Economics is the study of the choices people make to cope with scarcity. Choosing more of one thing means having less of something else. The opportunity cost of any action is the best alternative forgone.

Microeconomics - The study of the decisions of people and businesses and the interaction of those decisions in markets. The goal of microeconomics is to explain the prices and quantities of individual goods and services.
Macroeconomics - The study of the national economy and the global economy and the way that economic aggregates grow and fluctuate.  The goal of macroeconomics is to explain average prices and the total employment, income, and production.

Positive statements - Statements about what is.
Normative statements - Statements about what ought to be.
Ceteris paribus - Other things being equal” or “if all other relevant things remain the same.


The fallacy of composition - What is true of the parts may not be true of the whole. What is true of the whole may not be true of the parts.
The post hoc fallacy - The error of reasoning from timing to cause and effect.
Economic efficiency - Production costs are as low as possible and consumers are as satisfied as possible with the combination of goods and services that is being produced.
Economic growth - The increase in incomes and production per person. It results from the ongoing advance of technology, the accumulation of ever larger quantities of productive equipment and ever rising standards of education.
Economic stability - The absence of wide fluctuations in the economic growth rate, the level of employment, and average prices.

The Modern economy
Economy - A mechanism that allocates scarce resources among alternative uses. This mechanism achieves five things: What, How, When, Where, Who.
Decision makers -  Households, Firms, Governments.
Household - Any group of people living together as a decision-making unit.  Every individual in the economy belongs to a household.

Firm - An organization that uses resources to produce goods and services. All producers are called firms, no matter how big they are or what they produce.  Car makers, farmers, banks, and insurance companies are all firms.
Government - A many-layered organization that sets laws and rules, operates a law-enforcement mechanism, taxes households and firms, and provides public goods and services such as national defense, public health, transportation, and education.
Market - Any arrangement that enables buyers and sellers to get information and to do business with each other.

Role of Government
Not so very long ago, economic planning and public ownership of the means of production were the wave of the future. Planners cannot find out what needs to be done to co-ordinate the production of a modern economy. Even if a technically feasible plan could be drawn up, there is no reason to believe it will be implemented.
How could a central planner know better than the consumers what the individual woman wants? Planners can only provide users with what they believe they should want. Because prices bear no relation to costs, there is no way to calculate what production needs to increase and what production needs to be reduced.

The state has three functions:

• To provide things - known as public goods - that the market cannot provide for itself; 
• To internalize externalities or remedy market failures; 
• To help people who, for a number of reasons, do worse from the market or are more vulnerable to what happens within it than society finds tolerable. 

In addition to providing public goods, governments directly finance or provide certain merit goods. Such goods are consumed individually. But society insists on a certain level or type of provision.
The role of the state in a modern market economy is, in short, pervasive. The difference between poor countries and richer ones is not that the latter do less, but that what they do is better directed (on the whole) and more competently executed (again, on the whole).
The first requirement of effective policy is a range of qualities credibility, predictability, transparency and consistency.
The more the government focuses on its essential tasks and the less it is engaged in economic activity and regulation, the better it is likely to work and the better the economy itself is likely to run.
If one needs a large number of bureaucratic permissions to do something in business, the officials have an opportunity to demand bribes.
Once it is known that a government is prepared to create such exceptional opportunities, there will be lobbying to create them.
Then there is not just the corruption of the government, but the waste of resources in such 'rent-seeking' or 'directly unproductive profit-seeking activities'.
Governments are natural monopolies over a given territory. One of the strongest arguments for an open economy is that it puts a degree of competitive pressure on government.


Factors of Production
Factors of production - The economy’s productive resources; Labor, Land, Capital, Entrepreneurial ability.
Land - Natural resources used to produce goods and services. The return to land is rent.
Labor - Time and effort that people devote to producing goods and services.  The  return to labour is wages.
Capital - All the equipment, buildings, tools and other manufactured goods used to produce other goods and services. The return to capital is interest.
Entrepreneurial ability - A special type of human resource that organizes the other three factors of production, makes business decisions, innovates, and bears business risk. Return to entrepreneurship is profit.

Economic Coordination
Markets - Coordinate individual decisions through price adjustments.
Command mechanism - A method of determining what, how, when, and where goods and services are produced and who consumes them, using a hierarchical organization structure in which people carry out the instructions given to them.
Market economy - An economy that uses a market coordinating mechanism.
Command economy - An economy that relies on a command mechanism.
Mixed economy - An economy that relies on both markets and command mechanism.

Production Possibility Frontier
The quantities of goods and services that can be produced are limited by the available resources and by technology.  That limit is described by the production possibility frontier.
Production Possibility Frontier (PPF) - The boundary between those combinations of goods and services that can be produced and those that cannot.
Production efficiency - When it is not possible to produce more of one good without producing less of some other good.  Production efficiency occurs only at points on the PPF.
Economic growth - Means pushing out the PPF. The two key factors that influence economic growth are technological progress and capital accumulation.
Technological progress - The development of new and better ways of producing goods and services and the development of new goods.
Capital accumulation - The growth of capital resources.
Absolute Advantage - If by using the same quantities of inputs, one person can produce more of both goods than some one else can, that person is said to have an absolute advantage in the production of both goods.
Comparative Advantage - A person has a comparative advantage in an activity if that person can perform the activity at a lower opportunity cost than anyone else.

Law of Demand
Demand curve - Shows the relationship between the quantity demanded of a good and its price, all other influences on consumers’ planned purchases remaining the same.
Other things remaining the same, the higher the price of a good, the smaller is the quantity demanded.

1. Substitution effect
2. Income effect.

As the opportunity cost of a good increases, people buy less of that good and more of its substitutes.
Faced with a high price and an unchanged income, the quantities demanded of at least some goods and services must be decreased.
Substitute - A good that can be used in place of another good.
Complement - A good that is used in conjunction with another good.
Normal goods - Goods for which demand increases as income increases.
Inferior goods - Goods for which demand decreases as income increases.
If the price of a good changes but everything else remains the same, there is a movement along the demand curve.
If the price of a good remains constant but some other influence on buyers’ plans changes, there is a change in demand for the good.
A movement along the demand curve shows a change in the quantity demanded and a shift of the demand curve shows a change in demand.

Law of Supply
Law of supply – Other things remaining the same, the higher the price of a good, the greater is the quantity supplied.
Supply of a good depends on:

1. The price of the good; 
2. The prices of factors of production; 
3. The price of other goods produced; Expected future prices; 
4. The number of suppliers; 
5. Technology.

Supply curve - Shows the relationship between the quantity supplied and the price of a  good, everything else remaining the same.
If the price of a good changes but everything else influencing suppliers’ planned sales remains constant, there is a movement along the supply curve.
If the price of a good remains the same but another influence on suppliers’ planned sales changes, supply changes and there is a shift of the supply curve.
A movement along the supply curve shows a change in the quantity supplied.  The entire supply curve shows supply.  A shift of the supply curve shows a change in supply.

Equilibrium
Equilibrium: A situation in which opposing forces balance each other.  Equilibrium in a market occurs when the price is such that the opposing forces of the plans of buyers and sellers balance each other.  The equilibrium price is the price at with the quantity demanded equals the quantity supplied. The equilibrium quantity is the quantity bought and sold at the equilibrium price.
When both demand and supply increase, the quantity increases. The price may increase, decrease, or remain constant.
When both demand and supply decrease, the quantity decreases. The price may increase, decrease, or remain constant.
When demand decreases and supply increases, the price falls. The quantity may increase, decrease, or remain constant.
When demand increases and supply decreases, the price rises and the quantity increases, decreases, or remains constant.

Elasticity
The total revenue from the sale of a good equals the price of the good multiplied by the quantity sold. An increase in price increases the revenue on each unit sold.  But an increase in price also leads to a decrease in the quantity sold. Whether the total expenditure increases or decreases after a price hike, depends on the responsiveness of demand to the price.
Price elasticity of demand – A measure of the responsiveness of the quantity demanded of a good to a change in its price, other things remaining the same. It is the percentage change in demand divided by percentage change in price.
Inelastic demand - If the percentage change in the quantity demanded is less than the percentage change in price, then the magnitude of the elasticity of demand is between zero and 1, and demand is said to be inelastic.
If the quantity demanded remains constant when the price changes, then the elasticity of demand is zero and demand is said to be perfectly inelastic.
Elastic demand - If elasticity is greater than 1, it is elastic.
If the quantity demanded is indefinitely responsive to a price change, then the magnitude of the elasticity of demand is infinity, and demand is said to be perfectly elastic.

When markets do not work 
Price ceiling -  A regulation that makes it illegal to charge a price higher than a specified level. When a price ceiling is applied to rents in housing markets, it is called a rent ceiling.
Black market - An illegal trading arrangement in which buyers and sellers do business at a price higher than legally imposed price ceiling.
Minimum wage law - A regulation that makes hiring labor below a specified wage illegal.
Externalities – Social costs, but no private costs.

Consumption & Utility
A household’s consumption choices are determined by

• Budget constraint
• Preferences

Utility - The benefit or satisfaction that a person gets from the consumption of a good or service.
Total utility - The total benefit or satisfaction that a person gets from the consumption of goods and services.
Marginal utility - The change in total utility resulting from a one-unit increase in the quantity of a good consumed.
Consumer equilibrium - A situation in which a consumer has allocated his or her income in the way that, given the prices of goods and services, maximizes his or her total utility.

Understanding Costs
Short run - Period of time in which the quantity of at least one input is fixed and the quantities of the other inputs can be varied.
Long run - Period of time in which the quantities of all inputs can be varied. Inputs whose quantity can be varied in the short run are called variable inputs. Inputs whose quantity cannot be varied in the short run are called fixed inputs.
Firm’s total cost - The sum of the costs of all the inputs it uses in production.
Fixed cost -The cost of a fixed input.
Variable cost - The cost of a variable input.
Total fixed cost - The total cost of fixed inputs.
Total variable cost - The cost of the variable inputs.
Marginal cost - The increase in total cost for increasing output by one unit.
Average fixed cost (AFC) - Total fixed cost per unit of output.
Average variable cost (AVC) - Total variable cost per unit of output.
Average total cost (ATC) - Total cost per unit of output.
Long-run average cost curve - Traces the relationship between the lowest attainable average total cost and output when both capital and labor inputs can be varied.
Economies of scale - As output increases, long-run average cost decreases.
Diseconomies of scale - As output increases, long run average cost increases.

Perfect Competition
There are many firms, each selling an identical product.
There are many buyers.
There are no restrictions on entry into the industry.
Firms in the industry have no advantage over potential new entrants.
Firms and buyers are completely informed about the prices of the product of each firm in  the industry.
Firms in perfect competition are said to be price takers. A price taker is a firm that cannot influence the price of a good or service.

Imperfect Competition
Monopoly - An industry that produces a good or service for which no close substitute exists and in which there is one supplier that is protected from competition by a barrier preventing the entry of new firms.
Price discrimination - The practice of charging some customers a lower price than others for an identical good or of charging an individual customer a lower price on a large purchase than on a small one, even though the cost of servicing all customers is the same.
Monopolistic competition - A market structure in which a large number of firms compete with each other by making similar but slightly different products.
Oligopoly - A market structure in which a small number of producers compete with each other.

Business Cycles
Economic developments should be judged in the context of trends and cycles.
Trends - The trend is the long-term rate of economic expansion.
Cycles - The cycle reflects short-term fluctuations around the trend. There are always a few months or years when growth is above trend, followed by a period when the economy contracts or grows below trend.
Long-term growth - In the long term the growth in economic output depends on the number of people working and output per worker. Output per worker grows through technical progress and investment in new plant, machinery and equipment. Investment and productivity are therefore the basis for continued and sustained economic expansion.
Recession -  A period during which real GDP decreases – the growth rate of real GDP is negative – for at least two successive quarters.
Consumption expenditure - The amount spent on consumption goods and services. Saving is the amount of income remaining after meeting consumption expenditures.
Savings – What remains out of income after consuming.
Capital - The plant, equipment, buildings, and inventories of raw materials and semi-finished goods that are used to produce other goods and services. The amount of capital in the economy is a crucial factor that influences GDP growth.
Investment - The purchase of new plant, equipment, and buildings and the additions to inventory.  Investment increases the stock of capital.  Depreciation is the decrease in the stock of capital that results from wear and tear and the passage of time.
Government Purchases - Governments buy goods and services, called government purchases, from firms.
Net taxes - Taxes paid to governments minus transfer payments received from governments.
Transfer payments - Cash transfers from governments to households and firms such as social security benefits, unemployment compensation, and subsidies.

Measuring Economic Activity
Total economic activity may be measured in three different but equivalent ways.
Add up the value of all goods and services produced in a given period of time, such as one year. Money values may be imputed for services such as health care which do not change hands for cash. Since the output of one business (for example, steel) can be the input of another (for example, automobiles), double counting is avoided by combining only "value added", which for anyone activity is the total value of production less the cost of inputs such as raw materials and components valued elsewhere.
A second approach is to add up the expenditure which takes place when the output is sold.
Since all spending is received as incomes, a third option is to value producers' incomes.

Gross domestic product - GDP is the total of all economic activity in one country, regardless of who owns the productive assets. For example, India’s GDP includes the profits of a foreign firm located in India even if they are remitted to the firm's parent company in another country.
Gross national product - GNP, is the total of incomes earned by residents of a country, regardless of where the assets are located. For example, India’s GNP includes profits from Indian-owned businesses located in other countries.

Omissions in GDP
Deliberate omissions: There are many things which are not in GDP, including the following.

• Transfer payments - For example, social security and pensions.
• Gifts. For example, $10 from an aunt on your birthday.
• Unpaid and domestic activities. If you cut your grass or paint your house the value of this productive activity is not recorded in GDP, but it is if you pay someone to do it for you.
• Barter transactions. For example, the exchange of a sack of wheat for a can of petrol.
• Second-hand transactions. For example, the sale of a used car (where the production was recorded in an earlier year). 
• Intermediate transactions. For example, a lump of metal may be sold several times, perhaps as ore, pig iron, part of a component and, finally, part of a washing machine (the metal is included in GDP once at the net total of the value added between the initial production of the ore and its final sale as a finished item).
• Leisure. An improved production process which creates the same output but gives more recreational time is recorded in the national accounts at exactly the same value as the old process.
• Depletion of resources. For example, oil production is recorded at sale price minus  production costs and no allowance is made for the fact that an irreplaceable part of the nation's capital stock of resources has been consumed.
• Environmental costs. GDP figures do not distinguish between green and polluting industries. 
• Allowance for non-profit-making and inefficient activities. The civil service and police force are valued according to expenditure on salaries, equipment, and so on (the appropriate price for these services might be judged to be very different if they were provided by private companies).
• Allowance for changes in quality. You can buy very different electronic goods for the same inflation-adjusted outlay than you could a few years ago, but GDP data do not take account of such technological improvements.

Unrecorded transactions
GDP may under-record economic activity, not least because of the difficulties of keeping track of new small businesses and because of tax avoidance or evasion.
Deliberately concealed transactions form the black, grey, hidden or shadow economy. This is largest at times when taxes are high and bureaucracy is heavy. Estimates of the size of the shadow economy vary enormously. For example, differing studies put America's at 4-33%, Germany's at 3-28% and Britain's at 2-15%. What is agreed, though, is that among the industrial countries the shadow economy is largest in Italy, at perhaps one-third of GDP, followed by Spain, Belgium and Sweden, while the smallest black economies are in Japan and Switzerland at around 4% of GDP.
The only industrial countries that adjust their GDP figures for the shadow economy are Italy and America and they may well underestimate its size.

Expenditure
The expenditure measure of GDP is obtained by adding up all spending:
 consumption (spending on items such as food and clothing)
+ investment (spending on houses, factories, and so on)
= total domestic expenditure
+ exports of goods and services (foreigners' spending)
= total final expenditure
- imports of goods and services (spending abroad)
= GDP

Government consumption - The level of government spending reflects the role of the state. Government consumption is generally 10-20% of GDP, although it is higher in countries such as Denmark and Sweden where the state provides many services. Changes in government spending tend to reflect political decisions rather than market forces.
Private consumption - This is also called personal consumption or consumer expenditure. It is generally the largest individual category of spending. In the industrialised countries, consumption is around 60% of GDP. The ratio is much higher in poor countries which invest less and consume more.
Investment - Investment is perhaps the key structural component of spending since it lays down the basis for future production. It covers spending on factories, machinery, equipment, dwellings and inventories of raw materials and other items. Investment averages about 20% of GDP in the industrialised countries, but is nearer 30% of GDP in East Asian countries.

Income
The income measure of GDP is based on total incomes from production. It is essentially the total of:
wages and salaries of employees;
income from self-employment;
trading profits of companies;
trading surpluses of government corporations and enterprises;
income from rents.
These are known as factor incomes. GDP does not include transfer payments such as interest and dividends, pensions, or other social security benefits. The breakdown of incomes sheds additional light on economic behaviour because it is the counterpart to expenditure in what economists call the circular flow of money. It also provides a useful basis for forecasting inflation.

Unemployment
Labour force or workforce - The number of people employed and self-employed plus those unemployed but ready and able to work.
Three factors affect the size of the labour force: population, migration and the proportion participating in economic activity.
Population. Birth rates in most industrial countries fell to replacement levels or lower in the 1980s. This implies an older workforce and higher old-age dependency rates (the number of retired people as a percentage of the population of working age) in the future. 15-20% of the population in industrial economies will be over 65 years of age.
Developing countries have young populations with up to 50% under 15 years. This suggests an expanding working-age population with potential problems for housing and job creation.
Migration. In the industrial countries inflows of foreign workers increased since the late 1980s and a substantial number of illegal immigrants were granted amnesty in America, France, Italy and Spain. Foreign-born persons account for over 5% of the labour force in America, Germany and France; around 20% in Switzerland and Canada; and over 25% in Australia.
Inward migration may be a bonus for some economies. For example, German unification  boosted that country's productive potential. However, large numbers of refugees seeking asylum can have significant adverse effects on income per head.
Wealthier developing countries, especially oil producers, have large proportions of foreigners in their labour forces. Workers frequently make a substantial contribution to the balance of payments in their home countries by remitting savings from their salaries.
Participation. Participation rates (the labour force as a percentage of the total population) generally increased in the 1980s and 1990s with earlier retirement for men, especially in France, Finland and the Netherlands, generally offset by more married women entering the labour force, especially in America, Australia, Britain, New Zealand and Scandinavia.
Women account for a smaller proportion of the workforce in Muslim countries (20%) and a greater proportion in Africa (up to 50%) where they traditionally work on the land.
The unemployment rate. Usually defined as unemployment as a percentage of the labour force (the employed plus the unemployed). National variations are rife: Germany excludes the self-employed from the labour force; Belgium produces two unemployment rates expressing unemployment as a percentage of both the total and the insured labour force. By changing the definition, which governments are inclined to do, the unemployment rate can be moved up or, more usually, down by several percentage points.

The Balance Of Payments
Accounting conventions- Balance of payments accounts record financial flows in a specific period such as one year. Financial inflows are treated as credits or positive entries. Outflows are debits or negative entries. When a foreigner invests in the country, there is a capital inflow which is a credit entry. Conversely, the acquisition of a claim on another country is a negative or debit entry.
Debits = credits. The accounts are double entry, that is, every transaction is entered twice. For example, the export of goods involves the receipt of cash (the credit) which represents a claim on another country (the debit). By definition, the balance of payments must balance. Debits must equal credits.
Current = capital. One side of each transaction is treated as a current flow (such as a receipt of payment for an export). The other is a capital flow (such as the acquisition of a claim on another country). Arithmetically current flows must exactly equal capital flows.
Balances
The accounts build up in layers. Balances may be struck at each stage. What follows reflects the IMF'S methodology in the fifth edition of the


Balance of Payments Manual
Net exports of goods (exports of goods less imports of goods)
= the visible trade or merchandise trade balance
+ net exports of services (such as shipping and insurance)
= the balance of trade in goods and services
+ net income (compensation of employees and investment income)
+ net current transfers (such as payments of international aid and workers' remittances)
= the current-account balance (all the following entries form the capital and financial account)
+ net direct investment (such as building a factory overseas)
+ other net investment (such as portfolio investments in foreign equity markets)
+ net financial derivatives
+ other investment (including trade credit, loans, currency and deposits)
+ reserve assets (changes in official reserves), sometimes known as the bottom line
= overall balance
+ net errors and omissions
= zero

Thus the current account covers trade in goods and services, income and transfers. Non-merchandise items are known as invisibles. All other flows are recorded in the capital and financial account. The capital part of the account includes capital transfers, such as debt forgiveness, and the acquisition and/or disposal of non-produced, non-financial assets such as patents. The financial part includes direct, portfolio and other investment.
The balance of payments must balance. When we talk about a balance of payments deficit or surplus, we mean a deficit or surplus on one part of the accounts.


Fiscal Indicators
Fiscal indicators are concerned with government revenue and expenditure.
Level of government - Various problems of definition arise because of different treatment of financial transactions by central government, local authorities, publicly owned enterprises, and so on.
In an attempt to standardise, international organisations such as the OECD focus on general government, which covers central and local authorities, separate social security funds where applicable, and province or state authorities in federations such as in North America, Australia, Germany, Spain and Switzerland.
There is scope for manipulation, Spending can be shifted to publicly owned enterprises which are generally classified as being outside general government. Net lending to such enterprises is part of government spending, but it is not always included in headline expenditure figures.
Classification
Public spending may be classified in several different ways.
By level of government: central and local authorities, state or provincial authorities for federations, social security funds and public corporations.
By department: agriculture, defence, trade, and so on.
By function: such as environmental services, which might be provided by more than one department.
By economic category: current, capital, and so on.
Breaking down the economic effect of public spending into current and capital spending is a useful way to interpret it.

Current spending
Major categories of current spending include the following.
Pay of public-sector employees: this generally seems to rise faster than other current spending.
Other current spending: on goods and services such as stationery, medicines, uniforms, and so on.
Subsidies: on goods and services such as public housing and agricultural support.
Social security: including benefits for sickness, old age, family allowances, and so on; social assistance grants and unfunded employee welfare benefits paid by general government.
Interest on the national debt.

Taxes
Taxes can be Progressive or regressive
Progressive taxes take a larger proportion of cash from the rich than from the poor, such as income tax where the marginal percentage rate of tax increases as income rises.
Proportional taxes take the same percentage of everyone's income, wealth or expenditure, but the rich pay a larger amount in total.
Regressive taxes take more from the poor. For example, a flat rate tax of Rs. 5000, takes a greater proportion of the income of a lower-paid worker than of a higher-paid worker.
Indirect taxes. Levied on goods and services, these include the following:
Value-added tax (VAT) charged on the value added at each stage of production; this amounts to a single tax on the final sale price.
Sales and turnover taxes which may be levied on every transaction (for example, wheat, flour, bread) and cumulate as a product is made.

Customs duties on imports.
Excise duties on home-produced goods, sometimes at penal rates to discourage activities such as smoking.
Indirect taxes tend to be regressive, as poorer people spend a bigger slice of their income. They are charged at either flat or percentage rates.

Budget deficits (spending exceeds revenues) boost total demand and output through a net injection into the circular flow of incomes. As with personal finances, a deficit on current spending may signal imprudence. However, a deficit to finance capital investment expenditure helps to lay the basis for future output and can be sustained so long as there are pri­vate or foreign savings willing to finance it in a non-inflationary way.
 Budget surpluses (revenues exceed expenditure) may be prudent if a government is building up a large surplus on its social security fund in order to meet an expected increase in its future pensions bill as  the population ages.
Tighter or looser. Fiscal policy is said to have tightened if a deficit is reduced or converted into a surplus or if a surplus is increased, after taking into account the effects of the economic cycle. A move in the opposite direction is called a loosening of fiscal policy.

International Organisations

UN had its origin in August, 1944 at Dumbarton Oaks Conference where the representatives of USA, UK, USSR and China met to form an association for the maintenance of international peace and security. Finally, on June 26, 1945, the charter of the United Nations was signed in a conference called at “San Fransisco”, which included the representatives of 51 states. The charter then came into force on 24 Octobar, 1945; thus 24 October has been celebrated as the UN day.

Headquarters, Flag, Languages: United Nation’s Headquarter is situated in Manhattan Island of New York and the European office at Geneva.The Flag of the UNO was adopted in Octobar 1947. The flag includes white UN emblem (two bent olive branches, open at the top and between them is the world map) on a light blue background. the flag was adopted by the UNO in Octobar, 1947. Official Language of UNO are French, Chinese, English, Russian, Arabic and Spanish. While the working languages are only French and English.

Aims and Objectives of UNO: The main objectives of UNO are:

• To maintain international peace and security.
• To develop spirit of co-operation and friendly relations among the nations.
• To promote respect for human rights, dignity and freedom.
• To solve international problems of social, economic, agricultural and humanitarian character.
• To employ international machinery for the promotion of economic and social advancement of all people.

Organs of the UN:

There are six main organs of UN:1. General Assembly : It is the main body of UN and consists of the representatives of all the states. Each state may send 5 representatives in the general assembly but has only 1 vote. It meets regularly once a year, special and emergency sessions can also be sumoned at the request of security council. Decision of an important matters are taken by the 2/3rd majority,

while in simple matters, only simple majority is enough. The assembly may discuss any matter within the scope of charter except those already referred to the Security Council. The assembly generally discusses ways of preserving peace, economic development and social progress, well being of people, peaceful use of atomic energy, human right etc. It elects its own President & Vice-President every year.

Functional of General Assembly:

• The membership of new states is done by the general assembly on the recommendation of Security Council.
• The Judges of the International Court of Justice are elected by general assembly.
• It elects the non-permanent members of security council, members of Economic and Social Council, and certain members of Trusteeship Council.
• It passes entire budget of UNO.

2. Security Council : It is the executive body of UN which is responsible for maintaining international peace in the world. Its session can be summoned at 24 hour notice and if functions almost continuously. the council consists of 15 members–5 permanent (USA, UK; Russia, France and China) and 10 non- ermanent members which are elected for a term of 2 years by the General Assembly. the distribution of the numbers of non-permanent members are (1) Five members from Asian and African countries (2) two from latin American countries (3) two from western Europes and other (which implies commonwealth countries) (4) and one from east European countries. Each member of the Security Council has one vote. The approval of all permanent members is necessary. If any permanent member casts a “Veto” to show its disagreement, then no decision can be taken. The number of affirmative votes needed for a decision are atleast nine which includes the vote of 5 permanent members. In the event of a threat to peace or occurence of war between two or more countries, the security council has the power to take appropriate measures to restore peace and security.
3. Economic and Social Council : The Economic and Social Council (ECOSOC) is the welfare council which coordiantes the economic and social activities of the United Nations and its specialised agencies and other organisations. This council meets at least thrice a year. It is composed of 54 members. General Assembly elects one-third members of ECOSOC every year for a period of 3 years. ECOSOC takes decision by a majority of those members present and voting. ECOSOC seeks to build a world of greater prosperity, stability and justice.
4. The Trusteeship Council : The Prime responsibility of this council is to supervise the administration of those territories which were placed under the International Trusteeship System. This council of UNO is also known as ‘Protector of Dependent People’ who are not yet able to Govern themselves. It consists of member of states administering trust territories and permanent members of the security council nto administering territories. Under the charter, the member states have to accept certain obligations to promote their development and to protect their interest and security so long as the trustee territories are not able to govern themselves.
   At present, USA is the only administering trust territory. So, the Trusteeship Council consists of only permanent members. This council meets at least once in a year.
5. Secretariat : All day today functions of the UN are performed by the Secretariat. the Secretariat is headed by the Secretary-General who is the chief Administrative Officer, and he is appointed by the General Assembly upon the recommendation of Security Council for a five-year term, which is renewable. It is his duty to implement all resolutions passed by the Security Council or the General Assembly. He makes the annual report of General Assembly and also bring to the notice of security council about any matter threatening the maintenance of international peace and Security.

Secretary General : Ban Ki Moom

• International Monetary Fund (IMF) : HQ – Washington, D.C. The IMF came into existence in December 1945, as one among the Bretton Wood twins when the first 29 countries signed its Articles of Agreement. The International Monetary Fund (IMF) is an international organisation that oversees the global financial system by observing exchange rates and balance of payments. An unwritten rule establishes that the IMF’s managing director must be non-Italian European and that the president of the World Bank must be from the United States. IMF describes itself as “an organisation of 185 countries, Montenegro being the 185th as of January 18th, 2007.
• World Bank Group : HQ–Washington, D.C. The World Bank Group is a group of five international organisations responsible for providing finance and advice to countries for the purposes of economic development and eliminating poverty. The Bank came into formal existence on 27 December, 1945 following international ratification of the Bretton Woods agreements, it approved its first loan to France for postwar reconstruction. The World Bank Group consists of:
  • The International Bank for Reconstruction and Development (IBRD), established in 1945, which provides debt financing on the basis of sovereign guarantees;
  • The International Finance Corporation (IFC), established in 1956, which provides various forms of financing without sovereign guarantees, primarily to the private sector;
  • The International Development Association (IDA), established in 1960, which provides concessional financing (interest-free loans or grants), usually with sovereign guarantees;
  • The Multilateral Investment Guarantee Agency (MIGA), established in 1988, which provides insurance against certain types of risk, including political risk, primarily to the private sector; and
  • The International Centre for Settlement of Investment Disputes (ICSID), established in 1966, which works with governments to reduce investment risk.
• Food and Agriculture Organisation (FAO) : HQ–Rome, Italy.
  The Food and Agriculture Organisation (FAO) is a specialized agency of the United Nations that leads international efforts to defeat hunger. FAO was founded on 16 October 1945, in Quebec City, Canada. In 1951 its hadquarters were moved from Washington, D.C., United States, to Rome, Italy. As of 17 November 2007, it had 191 members (plus one member organisation, the European Community and one associate member, the Faroe Islands).
• International Labour Organisation (ILO) : HQ-Geneva, Switzerland. The International Labour Organisation (ILO) is a specialized agency of the United Nations that deals with labour issues. Founded in 1919, it was formed through the negotiations of the Treaty of Versailles, and was initially an agency of the League of Nations. The ILO hosts the International Labour Conference in Geneva every year in June. The organisation received the Nobel Peace Prize in 1969. Its secretariat is known as the International Labour Office. Its a tripartite intergovernmental body of governments, employers and workers.
• United Nations Educational, Scientific and Cultural Organisation (UNESCO) : HQ-Paris, France. UNESCO (United Nations Educational, Scientific and Cultural Organisation) is a specialized agency of the United Nations established in 1945. Its stated purpose is to contribute to peace and security by promoting international collaboration through education, science, and culture in order to further universal respect for justice, the rule of law, and the human rights and fundamental freedoms proclaimed in the UN Charter. As of October 2007, UNESCO had 193 member states and 6 associate members.
• International Civil Aviation Organisation (ICAO) : HQ–Montreal, Canada. The International Civil Aviation Organization (ICAO), an agency of the United Nations set up in 1944, codifies the principles and techniques of international air navigation and fosters the planning and development of international air transport to ensure safe and orderly growth. The ICAO defines the protocols for air accident investigation, followed by transport safety authorities in countries signatory to the Convention on International Civil Aviation, commonly known as the Chicago Convention.
• World Health Organisation (WHO) : HQ-Geneva, Switzerland. The World Health Organisation (WHO) is a specialized agency of the United Nations that acts as a coordianting authority on international public health. Established on 7 April 1948, the agency inherited the mandate and resources of its predecessor, the Health Organization, which had been an agency of the League of Nations. WHO complies the widely followed International Classification of Diseases (ICD).
• International Atomic Energy Agency (IAEA) : HQ-Vienna, Austria. The International Atomic Energy Agency (IAEA) was established as an autonomous organisation on July 29, 1957. It seeks to promote the peaceful use of nuclear energy and to inhibit its use for military purposes. United States President Dwight D. Eisenhower envisioned, in his “Atoms for Peace” speech before the UN General Assembly in 1953, the creation of this international body to control and develop the use of atomic energy.
• International Telecommunication Union (ITU) : HQ–Paris, France. The International Telecommunication Union (ITU) is an international organisation established to standardise and regulate international radio and telecommunications. It was founded as the International Telegraph Union in Paris in May 17, 1865, and is today the World’s oldest international organisation. Its main tasks include standardization, allocation of the radio spectrum, and organising interconnection arrangements between different countries to allow international phone calls.
• Universal Postal Union (UPU) : HQ–Berne, Switzerland The Universal Postal Union (UPU) is an international organisation that coordiantes postal policies between member nations, and hence the worldwide postal system. Each member country agrees to the same set of terms for conducting international postal duties. It is the second oldest, international organisation (after the ITU). It was created in 1874, under the name “General Postal Union”, as a result of the Treaty of Berne signed on 9 October 1874. In 1878, the name was changed to “Universal Postal Union”.
• International Maritime Organisation (IMO) : HQ–London, U.K The International Maritime Organisation (IMO), formerly known as the Inter-Governmental Maritime Consultative Organization (IMCO), was established in 1948, through the United Nations to coordinate international maritime safety and related practices. However the IMO did not enter into full force until 1958. The IMO promotes cooperation among government and the shipping industry to improve maritime safety and to prevent marine pollution.
• World Meteorological Organisation (WMO) : HQ–Geneva, Switzerland. The World Meteorological Organisation (WMO) is a specialized agency of the United Nations. It is the UN system’s authoritative voice on the state and behaviour of the Earth’s atmosphere, its interaction with the oceans, and the climate produces or the resulting distribution of water resources. It originated from the International Meteorological Organisation (IMO), which was founded in 1873. Established in 1950, WMO became the specialized agency of the United Nations for meteorology (weather and climate), operational hydrology and related geophysical sciences. The WMO helped create the Intergovernmental Panel on Climate Change (IPCC). It is also directly responsible for the creation of the Global Atmosphere Watch (GAW).
• Interpol (International Criminal Police Organisation) : HQ–Lyon, France
  Established as International Criminal Police Commission in 1923 to assist international criminal police co-operation. Its work focuses primarily on public safety, terrorism, organised crime etc. It is the world’s third largest international organisation after UN and FIFA.
• International Court of Justice (ICJ) : HQ-The Hague, The Netherlands The International Court of Justice (known colloquially as the World Court or ICJ) is the primary judicial organ of the United Nations. Established in 1945 by the Charter of the United Nations, the Court began work in 1946 as the successor to the Permanent Court of International Justice. The ICJ is composed of 15 judges elected to nine year terms by the UN General Assembly and the UN Security Council from a list of persons, nominated by the national groups in the Permanent Court of Arbitration. All 192 UN members are automatically parties to the Court’s statute. Article 94 establishes the duty of all UN members to comply with decisions of the Court involving them. If parties do not comply, the issue may be taken before the Security Council for enforcement action. It conducts its business in English and French.
• International Criminal Court (ICC) : HQ–The Hague, The Netherlands. It is a court created under the Rome Statute of 2002 as an independent, permanent court that tries persons accused of the most serious crimes of international concern, namely genocide, crimes against humanity and war crimes. The ICC is based on a treaty, joined by 104 countries. The ICC s a court of last resort. It will not act if a case is investigated or prosecuted by a national judicial system unless the national proceedings are not genuine. In addition, the ICC only tries those accused of the gravest crimes.
• Organisation for the Prohibition of Chemical Weapons (OPCW) : HQ–The Hague, The Netherlands. The Organisation for the Prohibition of Chemical Weapons (OPCW) is an international agency. Its mission is to promote membership of the Chemical Weapons Convention treaty which entered into force in 1997 and mandated the elimination of “the scourge of chemical weapons forever and to verify the destruction of the declared chemical weapons stockpiles within stipulated deadlines”.
• United Nations Children’s Fund (UNICEF) : HQ–New York City, USA The United Nations Children’s Fund (UNICEF) was created on December 11, 1946. In 1953, its name was shortened from United Nations International Children’s Emergency Fund. UNICEF provides long-term humanitarian and developmental assistance to children and mothers in developing countries. UNICEF was awarded the Nobel Peace Prize in 1965.
• United Nations Office on Drugs and Crime (UNODC) : HQ–Vienna, Austria. United Nations Office on Drugs and Crime (UNODC) is a United Nations agency which was founded in 1997 as the Office for Drug Control and Crime Prevention with the intent to fight drugs and crime on an international level. This intent is fulfilled through three primary functions: research, lobbying state government to adopt various crime and drug based laws and treaties and assistance of said governments on the ground level. In October 2002, the United Nations Drug Control Programme (UNDCP) was merged into the UNODC.
• United Nations Conference on Trade and Development (UNCTAD) : HQ–Geneva, Switzerland. The United Nations Conference on Trade and Development (UNCTAD) was established in 1963 as a permanent intergovernmental body, UNCTAD is the principal organ of the United Nations General Assembly dealing with trade, investment and development issues. UNCTAD has 191 member States.
• United Nations Environment Programme (UNEP) : HQ–Gigiri, Nairobi, Kenya.
  It was founded as a result of the United Nations Conference on the Human Environment in 1973. The World Meteorological Organisation and the UNEP established the Intergovernmental Panel on Climate Change (IPCC) in 1988. UNEP is also one of several implementing agencies for the Global Environment Facility (GEF). The year 2007 has been declared as International Year of the Dolphin by the United Nations and UNEP.
• United Nations Development Programme (UNDP) : HQ–New York City, USA.
  The United Nations Development Programme (UNDP), the United Nations’ global development network, is the largest multilateral source of development assistance in the world. The UNDP is an executive board within the United Nations Economic and Social Council. The UNDP Administrator is the third highest ranking member of the United Nations after the United Nations Secretary-General and Deputy Secretary-General. UNDP publishes an annual Human Development Report to measure and analyze developmental progress.
• United Nations High Commissioner for Refugees (UNHCR) : HQ–Geneva, Switzerland.
  The United Nations High Commissioner for Refugees (UNHCR) (established December 14, 1950) protects and supports refugees at the request of a government or the United Nations and assists in their return or resettlement. It succeeded the earlier International Refugee Organisation and the even earlier United Nations Relief and Rehabilitation Administration. UNHCR was awarded the Nobel Peace Prize in 1954 and 1981. UNHCR presently has major missions in Lebanon, South Sudan, Chad/Darfur, Iraq, Afghanistan as well as Kenya to assist and provide services to IDPs and refugees.
• United Nations Human Settlements Programme (UN-HABITAT) :HQ–Nairobi, Kenya. The United Nations Human Settlements Programme (UN-HABITAT) is the United Nations agency for human settlements. It was established in 1978. It is mandated by the United Nations General Assembly to promote socially and environmentally sustainable towns and cities with the goal of providing adequate shelter for all.
• United Nations Industrial Development Organisation (UNIDO) : HQ–Vienna, Austria. The United Nations Industrial Development Organisation (UNIDCO), is a specialized agency in the United Nations system. UNIDO was established as a UN programme in 1966 and became a specialized agency of the United Nations in 1985.
• United Nations Population Fund (UNFPA) : HQ–New York, USA.
  The United Nations Fund for Population Activities was started in 1969 and renamed the United Nations Population Fund (UNFPA) in 1987. The United Nations Population Fund is the world’s largest international source of funding for population and reproductive health programs.
• World Intellectual Property Organisation (WIPO) : HQ–Geneva, Switzerland.
  The World Intellectual Property Organisation (WIPO) is one of the specialized agencies of the United Nations. WIPO was created in 1967 with the stated purpose of encouraging creative activity and promoting the protection of intellectual property throughout the world. WIPO currently has 184 member states and administers 23 international treaties. Vatican City and almost all UN members are member of the WIPO. The predecessor to WIPIO was the BIRPI (French acronym for United International Bureau for the Protection of Intellectual Property), which had been set up in 1893 to administer the Berne Convention for the Protection of Library and Artistic Works and the Paris Convention for the Protection of Industrial Property. WIPO was formally created by the Convention Establishing the World Intellectual Property Organisation (signed at Stockholm on July 14, 1967 and as amended on September 28, 1979).
• World Trade Organisation (WTO) : HQ–Geneva, Switzerland.
  The World Trade Organisation (WTO) is an international organisation that establishes rules for international trade through consensus among its member states. It also resolves disputes between the members, which are all signatories to its set of trade agreements. Uruguay Round of General Agreement on Tariffs and Trade (GATT), negotiations culminating in the Marrakesh Agreement that established the WTO. There are 151 member states in the organisation, the latest to join being Tonga on July 27, 2007. Since its inception in 1995, the WTO has been a major focus for protests by civil society groups in many countries.
• International Red Cross and Red Crescent Movement : HQ–Geneva, Switzerland.
  The International Red Cross and Red Crescent Movement is an international humanitarian movement founded in 1863, whose stated mission is to protect human life and health, to ensure respect for the human being, and to prevent and alleviate human suffering, without any discrimination based on nationality, race, religious beliefs, class or political opinions. It adopted a new symbol a hollowed out red crystal on a white background in addition to the present symbols of red cross (1863) and red cresent (1876). Red star of David was used by Israel till now. Awarded the Nobel Peace prize in three times –1917, 1944 and 1963.
• World Social Forum (WSF)
  The World Social (WSF) is an annual meeting held by members of the anti-globalisation movement to coordiante world campaigns, share and refine organizing strategies, and inform each other about movements from around the world and their issues. It tends to meet in January when its “great capitalist rival”, the World Economic Forum is meeting in Davos, Switzerland.
• World Economic Forum (WEF)
  The World Economic Forum (WEF) is a Geneva-based foundation whose annual meeting of top business leaders, national political leaders (presidents, prime ministers and others), and selected intellectuals and journalists is usually held in Davos, Switzerland. There are also regional meetings throughout the year. It was founded in 1971 by Klaws M. Schwab, a business professor in Switzerland.
• Global Water Partnership (GWP)
  It is a network created by stakeholders including Sweden, The UNDP, World Bank and committee of Economic development of Australia. It has been established to ensure optimum use of scrace water resources in an integrated manner to benefit the world community.
• Asian Development Bank (ADB) : HQ–Manila, Philippines.
  The Asian Development Bank (ADB) is a regional development bank established in 1966 to promote economic and social development in Asian and Pacific countries through loans and technical assistance. It is a multilateral development financial institution owned by 66 members, 47 from the region and 19 from other parts of the globe. ADB’s vision is a region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their citizens. The highest policy-making body of the bank is the Board of Governors composed of one representative from each member state. The Board of Governors also elect the bank’s President who is the chairperson of the Board of Directors and manages ADB. Traditionally, and because Japan is one of the largest shareholders of the bank, the President has always been Japanese.
• African Development Bank (ADBP): HQ–Abidjan, Cote D’Ivoire.
  Established officially in 1964 as a result of Monorovian Conference of 1961, under the auspices of the Economic Commission for Africa, the ADBP began operation in 1966 with. With the statute of a regional multilateral development bank, the African Development Bank engaged in promoting the economic development and social progress of its Regional Member Countries (RMCs) in Africa. The African Development Bank Group has two other entities: the African Development Fund (ADF) and the Nigeria Trust Fund (NTF).
• UN Democracy Fund (UNDEF)
  The UN Democracy Fund will be a voluntary fund housed in the UN Fund for International Partnerships (UNFIP), but with its own Executive Head who will report to an Advisory Board of Member States on substantive matters. In order to ensure transparency and accountability, a dedicated support office will arrange for monitoring, evaluation and auditing of the program. The idea for the Fund was first articulated by President Bush in a speech before the UN General Assembly last fall and has been embraced by the 141 nations that attended the third ministerial meeting of the Community of Democracies in Santiago, Chile in April 2005.

UN Secretaries General

Year	Name	Nation
1946	Trygve Lie	Norway
1953	Dag Hammarskjold	Sweden
1961	U Thant	Burma
1972	Kurt Waldheim	Austria
1982	Javier Peres De Cuellar	Peru
1992	Dr. Boutros Boutros Ghali	Egypt
1997	Kofi Annan	Ghana
2007	Ban Ki Moom	S. Korea

• Association of Southeast Asian Nations (ASEAN) : HQ–Jakarta, Indonesia.
  The Association of Southeast Asian Nations (ASEAN) is a geopolitial and economic organisation of 10 countries, located in Southeast Asia. ASEAN was established on 8 August, 1967 in Bangkok by the five original Member Countries namely–Indonesia, Malaysia, Phillippines, Singapore, and Thailand. Brunei Darussalam joined on 8 January 1984, Vietnam on 28 July 1995, Lao PDR and Myanmar on 23 July 1997, and Cambodia on 30 April 1999.

ASEAN Plus Three (APT)

APT is a forum that functions as a coordinator of cooperation between Association of Southeast Asian Nations and the three East Asian nations of China, Japan, and South Korea. The first leaders’ meeting was held in 1997 and the group’s significance and importance was stregthened by the Asian Financial Crisis. The grouping was institutionalised by 1999.

ASEAN Regional Forum (ARF)

ASEAN Regional Forum is an informal multilateral dialogue of 25 members that seeks to address security issues in the Asia-Pacific region. ARF met for the first time in 1994. The current participants in the ARF are as follows: ASEAN, Australia, Canada, People’s Republic of China, European, Union, India, Japan, North Korea, South Korea, Mongolia, New Zealand, Pakistan, Papua New Guinea, Russia, East Timor, and the Unites States. Bangladesh was added to ARF as the 26th member, starting from July 28, 2006.

• European Union (EU)
  The European Union (EU) is a supranational and intergovernmental union of 27 democratic member states in Europe. It was established under that name by the Treaty on European Union (Maastricht Treaty) signed on February 7, 1992 in Maastricht, Netherlands. The Union has a single market consisting of a customs union, a currency called the euro (adopted by 13 member states), a Common Agricultural Policy, a common trade policy and a Common Fisheries Policy. The Schengen Agreement abolished passport control and customs checks for most member states within EU’s internal borders, creating, to some extent, a single area of free movement for EU citizens to live, travel, work and invest. A Common Foreign and Security Policy, and the Police and Judicial Co-operation in criminal matters have been initiated. Important EU institutions and bodies include the European Commission, the Council of the European Union, the European Council, the European Central Bank, the European Court of Justice, and the European Parliament which is directly elected by EU citizens once every five years.

Location of European Union Institutions

Brussels	seat of the European Commission and the Council of Ministers.
Strasbourg	Seat of the European Parliament.
Luxembourg	Seat of the European Court of Justice, the European Court of Auditors, the Secretariat of the European Parliament and the European Investment Bank.
Frankfurt	Seat of the European Central Bank.

Council of European Union

• Main EU decision making body.
• Also known as Council of Ministers.
• Represents interests of individual member states.
• Each member states represented by its own ministers.
• Presidency rotates between member states on six-monthly basis.

European Commission

• Proposes legislation to Council and Parliament.
• Manages implementation of EU legislation.
• Commissioners appointed on five-yearly basis by Council in agreement with member states.
• Appointments confirmed by parliament to which commission is answerable.

European Parliament

• Votes on and oversees implementation of EU budget.
• Considers Commission proposals on legislation.
• Works with Council on legislative decisions.
• Caribbean Community (CARICOM) : HQ–Georgetown, Guyana.
  The Caribbean Community and Common market or CARICOM was established by the Treaty of Chaguaramas which came into effect on August 1, 1973. The first four signatories were Barbados, Jamaica, Guyana and Trinidad and Tobago. CARICOM replaced the 1965–1972 Caribbean Free Trade Association (CARIFTA). Currently CARICOM has 15 full members, five associate members and seven observers. From March 2004, Haiti’s participation in CARICOM was suspended by its interim Prime Minister. But in early June 2006, Haiti was readmitted as a full member of the CARICOM.
• Economic Community of West African States (ECOWAS) : HQ–Abuja, Nigeria.
  The Economic Community of West African States (ECOWAS) is a regional group initially of sixteen countries, founded on May 28, 1975 when sixteen West African countries signed the Treaty of Lagos. Its mission is to promote economic integration.
• Economic and Monetary Community of Central Africa (CEMAC) : HQ-Bangui, Central African Republic.
  The Economic and Monetary Community of Central Africa (CEMAC) is an organisation of states of Central Africa established to promote economic integration among countries that share a common currency, the CFA franc. CEMAC is the successor of the Customs and Economic Union of Central Africa (UDEAC), which it completely superseded in June 1999 (through an agreement from 1994). Its six members states are Cameroon, the Central African Republic, Chad, the Republic of the Congo, Equatorial Guinea and Gabon. Equatorial Guinea joined in January 1984.
• Southern African Customs Union (SACU) : HQ–Windhoek, Namibia.
  SACU is the oldest customs union in the world. It was established in 1910 as a Customs Union Agreement between the then Union of South Africa and the High Commission Territories of Bechuanaland, Basutoland and Swaziland. With the advent of independence for these territories, the agreement was updated and on December 11, 1969 it was re-launched as the SACU was the signing of an agreement between the Republic of South Africa, Botswana, Lesotho and Swaziland. The updated union officially entered into force on March 1, 1970. After Namibia’s independence in 1990, it joined SACU as its fifth member.
• Cooperation Council for the Arab States of the Gulf (GCC) : HQ–Riyadh.
  The Cooperation Council for the Arab States of the Gulf, formerly named and still commonly called Gulf Cooperation Council (GCC) is a regional organisation involving the six Arab Gulf states with many economic and social objectives in mind. Created on May 25, 1981, the Council is comprised of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. Not all of the countries neighboring the Persian Gulf are members of the council. Specifically, Iran and Iraq are not members. Yemen is currently (as of 2007) in negotiotions for GCC membership, and hopes to join by 2016. On the economic front, the GCC aims to create a common market by 2007 and to adopt a single currency, the Khaleeji, in 2010.
• South Asian Association for Regional Cooperation (SAARC) : HQ–Kathmandu, Nepal.
  South Asian Association for Regional Cooperation (SAARC) is the largest regional organisation in the world by population, covering approximately 1.5 billion people. SAARC is an economic and political organisation of eight countries in Southern Asia. The organisation was established on December 8, 1985 by India, Pakistan, Bangladesh, Sri Lanka, Nepal, Maldives and Bhutan. Afghanistan became a member (eighth) on April 3, 2007. It declared 2006–2015 as the’SAARC decade of poverty alleviation’. It was agreed in principle to the desire of China and Japan to become SAARC obsevers. The Islamic Republic of Iran is the only country in Southern Asia that is not a part of SAARC. In April 2006, the United States of America and South Korea made formal requests to be granted observer status. The European Union has also indicated interest in being given observer status, and made a formal request for the same to the SAARC Council of Ministers meeting in July 2006. On August 2nd, 2006 Foreign ministers of SAARC countries agreed in principle to grant observer status to the US, South Korea and the European Union.
• Group of 77 (G-77) : HQ–New York, USA
  The Group of 77 at the United Nations is a loose coalition of developing nations, designed to promote its members’ collectives, economic and interest to create an enhanced joint negotiating capacity in the United Nations. There were 77 founding members of the organisation, but the organisation has since expanded to 130 member countries. It is modelled on the Group of 7, which now contains 8 countries. The group was founded on June 15, 1964 by the “Joint Declaration of the Seventy Seven Countries” issued at the United Nations Conference on Trade and Development (UNCTAD).
• Intergovernmental Group of Twenty Four (G-24) : HQ–Washington D.C., USA
  The Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development (G-24) was established in 1971. Its main objective is to concert the position of developing countries on monetary and development of finance issues. It consists of countries from three regions of Africa, Latin America and the Caribbean and Asia.
• North American Free Trade Area (NAFTA)
  The Noth American Free Trade Area is the trade bloc created by the North American free Trade Agreement (NAFTA) and its two supplements, the North American Agreement on Environmental Cooperation (NAAEC) and the North American Agreement on Labor Cooperation (NAALC) whose members are Canada, Mexico and the United States. It came into effect on 1 January 1994. It is the world’s largest free trade area.
• Developing 8 (D-8) : HQ-Istanbul, Turkey.
  The Developing 8 (D-8) is a group of developing countries that have formed an economic development alliance. It consists of Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey.
• Bay of Bengal Initiative for Multi Sectoral Technical and Economic Co-operation (BIMSTEC)
  The organisation was formed in Bangkok, Thailand, on 6 June 1997. Initially, its name was BIST-EC (Bangladesh, India, Sri Lanka, Thailand Economic Cooperation). At that time, Myanmar was an observer, but later joined the organisation as a full member at a special ministerial meeting, held in Bangkok on 22 December 1997. Consequently, the name of the organisation was changed to BIMST-EC. Nepal was granted observer status by the second ministerial meeting in Dhaka, Bangladesh in December 1998. Later, full membership has been granted to Nepal and Bhutan in 2003. During the first summit in Bangkok on 31 July 2004, the organisation’s name was changed to its current name.
• Organisation for Economic Co-operation and Development (OECD) : HQ–Chateau de la Muette in Paris, France.
  The Organisation for Economic Co-operation and Development (OCED) is an international organisation of those developed countries that accept the principles of representative democracy and a free market economy. It originated in 1948 as the Organisation for European Economic Co-operation (OEEC) to help administer the Marshal Plan for the reconstruction of Europe after World War II. Later its membership was extended to non-European states, and in 1961 it was reformed into the Organisation for Economic Co-operation and Development. There are currently thirty full members; of these, 24 are described as high-income countries by the World Bank.
• Organisation of Petroleum Exporting Countries (OPEC) : HQ–Vienna, Austria.
  The Organisation of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental Organisation, created at the Baghdad Conference on September 10-14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. The five Founding Members were later joined by nine other Members Indonesia’s membership currently under review as Indonesia is no longer considered by OPEC as a net oil exporter. Former Members are Gabon (full member from 1975 to 1995) and Ecuador (full member from 1963 to 1993). However Ecuador has expressed interest in rejoining. OPEC’s official language is English, although the official language of a majority of OPEC member-states is Arabic, as seven current members are Arab states. Only one member nation (Nigeria) has English as an official language. From 1976-2006 OPEC gained on new member nations. In November 2006, the Angolan Government announced its intention to apply for membership and subsequently joined on 1st January 2007. Sudan has also expressed intent for joining. Russia, though a net exporter of oil, has failed to gain membership into the grouping.
• Asia-Pacific Economic Cooperation (APEC) : HQ–Singapore.
  The Asia-Pacific Economic Cooperation (APEC) is an economic forum for a group of Pacific Rim countries to discuss matters on regional economy, cooperation, trade and investment. The current membership of APEC consists of 21 members, which includes most countries with a coasting on the Pacific Ocean. the last countries to have joined APEC, during its sixth leader’s summit in Kualalumpur, November 1998 were Peru, Russia and Vietnam.
• Organisation of the Islamic Conference (OIC) : HQ–Jeddah, Saudi Arabia.
  OIC is an inter-governmental organisation with a Permanent Delegation to the United Nations. It groups 57 mostly Islamic nations in the Middle East, North, West and Southern AFrica, Central Asia, Europe, Southeast Asia, the Indian subcontinent and South America.
• African Union (AU) : HQ-Addis Ababa, Ethiopia.
  The African Union (AU) is an organisation consisting of fifty-three African States. Established in 2001, the AU was formed as a successor to the amalgamated African Economic Community (AEC) and the Organisation of African Unity (OAU). The African Union was launched in Durban on July 9, 2002, by its first president, South African Thabo Mbeki, at the first session of the Assembly of the African Union. Eventually, the AU aims to have a single currency and a signle integrated defence force, as well as other institutions of state, including a cabinet for the AU Head of State. The AU covers the entire continent except for Morocco, which opposes the membership of Western Sahara/Sahrawi Arab Democratic Republic. However, Morocco has a special status within the AU and benefits from the services available to all AU states from the institutions of the AU.
• League of Arab States: HQ-Cairo, Egypt.
  The League of Arab States, or Arab League, is a voluntary association of countries whose peoples are mainly Arabic speaking. It aims to strengthen ties among member states, coordiante their policies and direct them towards the common good. The idea of the Arab League was mooted in 1942 by the British, who wanted to rally Arab countries against the Axis powers. However, idea did not take off until seven states formed the Arab League on March 22, 1945. It has 22 members, including Palestine, which the league regards as an independent state. In January 2003, Eritrea joined the Arab League as an observer.
• North Atlantic Treaty Organisation (NATO) : HQ–Brussels, Belgium.
  The North Atlantic Treaty Organisation (NATO) also called the North Atlantic Alliance, the Atlantic Alliance, the Western Alliance, is a military alliance established by the signing of the North Atlantic Treaty on 4 April 1949. The organisation establishes a system of collective security whereby its member states agree to mutual defense in response to an attack by any external party. The Treaty of Brussels, signed on 17 March 1948 by Belgium, the Netherlands, Luxembourg, France and the United Kingdom is considered the precursor to the NATO agreement. The 2006 NATO summit was held in Riga, Latvia, which had joined the Atlantic Alliance two years earlier. It is the first NATO summit in a former COMECON country. Membership went on expanding with the accession of seven more European countries to NATO–Estonia, Latvia and Lithuania and also Slovenia, Slovakia, Bulgaria, and Romania thereby taking the membership to 26. These 7 countries joined NATO on 29 march 2004.
• Commonwealth of Independent States (CIS) : HQ–Minsk, Belarus.
  The Commonwealth of Independent States (CIS) is the international organization, or alliance, consisting of 11 former Soviet Republics: Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Ukraine, and Uzbekistan and one associate member. Turkmenistan discontinued permanent membership as of August 26, 2005 and is now an associate member. The CIS is not a confederation. On December 21, 1991, the leaders of 11 of the 15 constituent republics of the Soviet Union met in Almata, Kazakhstan, and signed the charter, thus de facto ratifying the initial CIS treaty and launching the organisation.
• ANZUS
  The Australia, New Zealand, United States Security Treaty (ANZUS or ANZUS Treaty) is the military alliance which binds Australia and the United States, and separately Australia and New Zealand to cooperate on defence matters in the Pacific Ocean area, though today the treaty is understood to relate to attacks in any area. The treaty was concluded at San Francisco on
  1 September 1951, and entered into force on 29 april 1952. The treaty bound the signatories to recognize that an armed attack in the Pacific area on any of them would endanger the peace and safety of the others.
• Mercosur : HQ–Montevideo, Uruguay.
  Mercosur or Mercosul is a Regional Trade Agreement (RTA) between Brazil, Argentina, Uruguay, Venezuela and Paraguay, founded in 1991 by the Treaty of Asuncion, which was later amended and updated by the 1994 Treaty of Ouro Preto. It is known as the Common Market of the South. Its purpose is to promote free trade and the fluid movement of goods, peoples, and currency. Bolivia, Chile, Colombia, Ecuador and Peru currently have associate member status.
• Shanghia Cooperation Organisation (SCO) : HQ–Beijing, China.
  The Shanghai Cooperation Organisation (SCO) is an intergovernmental organisation which was founded on June 14, 2001 by leaders of the China, Russia, Kazakhastan, Kyrgyzstan, Tajikistan and Uzbekistan. Except for Uzbekistan, the other countries had been members of the Shanghai Five; after the inclusion of uzbekistan in 2001, the members renamed the organisation.
• Benelux
  Benelux is an economic union in Western Europe comprising three neighbouring monarchies. Belgium, the Netherlands and Luxembourg. The treaty establishing the Benelux Customs Union was signed in 1944 by the governments in exile of the three countries in London, and entered into force in 1947. It ceased to exist in 1960, when it was replaced by the Benelux Economic Union. A Benelux Parliament (originally referred to as Interparliamentary Consultative Council) was created in 1955. The treaty establishing the Benelux Economic Union was signed in 1958 and came into force in 1960 to promote the free movement of workers, capital, services, and goods in the region. In 1965, the treaty establishing a Benelux Court of Justice was signed and it entered into force in 1975 with seat at Brussels.
• Indian Ocean Rim-Association for Regional Cooperation (IOR-ARC) : HQ–Mauritius.
  The IOR-ARC, initially known as the Indian Ocean Rim Initiative, is an international organization with 18 member states. It was first established in Mauritius on March 1995 and formally launched on 6-7 March 1997. Countries with the status of dialogue partners are China, Egypt, France, Japan and United Kingdom.