Topic Details (Notes format)

Social Impact Bonds and Innovative Financing

Subject: Economics

Book: Comprehensive Indian Economy - Additional Topics

Social impact bonds bring private investments into social programs (education, health), where returns depend on measured outcomes. If targets (e.g., higher literacy rates) are met, the government repays principal plus interest. This approach fosters result-oriented spending, but measuring outcomes can be complex. Exam focus: real case studies (Rajasthan SDG bond or municipal bonds for water supply) and how such instruments demand robust data analytics and collaboration among government, NGOs, and investors.

Practice Questions

What is meant by the term “current account deficit”?

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What is the main objective of disinvestment in public sector undertakings (PSUs)?

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What does the term “elasticity of demand” measure?

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What is the main feature of a free-market economy?

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Which of the following is NOT an example of an indirect tax?

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Which of the following is a feature of monopolistic competition?

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What does the term “national income” refer to?

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What is meant by “crowding out” in economics?

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What does the Gini Coefficient measure?

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What is the concept of “invisible hand” associated with?

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