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All questions of Economics for UPSC CSE Exam

Yield is measured as:
  • a)
    Crop produced on a given piece of land during a single year
  • b)
    Crop produced on a given piece of land during a single season
  • c)
    Crop produced and wasted on a given piece of land during a single season
  • d)
    Crop produced on a given piece of land during a single decade
Correct answer is option 'B'. Can you explain this answer?

Vikram Kapoor answered
  • To grow more than one crop on a piece of land during the year is known as multiple cropping.
  • It is the most common way of increasing production on a given piece of land. You have seen that one way of increasing production from the same land is by multiple cropping.
  • The other way is to use modern farming methods for higher yield. Yield is measured as crop produced on a given piece of land during a single season.
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Which of the following are the biotic elements.
1. Birds
2. Animals
3. Air
Which of the statement/statements is/are correct?
  • a)
    1 and 2 Only
  • b)
    2 and 3 Only
  • c)
    1 and 3 Only
  • d)
    All of them
Correct answer is option 'A'. Can you explain this answer?

Kavita Shah answered
  • Environment is defined as the total planetary inheritance and the totality of all resources. It includes all the biotic and abiotic factors that influence each other.
  • While all living elements—the birds, animals and plants, forests, fisheries etc.—are biotic elements, abiotic elements include air, water, land etc. Rocks and sunlight are all examples of abiotic elements of the environment.
  • A study of the environment then calls for a study of the inter- relationship between these biotic and abiotic components of the environment.

Consider the following statements.
1. Absorptive capacity means the ability of the environment to absorb degradation
2. Today many resources have become extinct and the wastes generated are beyond the absorptive capacity of the environment
Which of these statement/statements is/are correct?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    Both 1 and 2
  • d)
    None of them
Correct answer is option 'C'. Can you explain this answer?

Ojasvi Mehta answered
  • The rising population of the developing countries and the affluent consumption and production standards of the developed world have placed a huge stress on the environment in respect of its functions.
  • Many resources have become extinct and the wastes generated are beyond the absorptive capacity of the environment. Absorptive capacity means the ability of the environment to absorb degradation.
  • The result — we are today at the threshold of environmental crisis. The past development has polluted and dried up rivers and other aquifers making water an economic good.

Assertion: All the capital goods produced in a year constitute an addition to the capital stock already existing
Reason: The already existing capital stock suffers wear and tear and needs maintenance and replacement
Select the correct code:
  • a)
    Both A and R are true and R is the correct explanation of A.
  • b)
    Both A and R are true but R is not a correct explanation of A.
  • c)
    A is true but R is false.
  • d)
    A is false but R is true.
Correct answer is option 'D'. Can you explain this answer?

Meera Kapoor answered
  • Part of our final output that comprises capital goods constitutes gross investment of an economy. These may be machines, tools and implements; buildings, office spaces, storehouses or infrastructure like roads, bridges, airports or jetties.
  • But all the capital goods produced in a year do not constitute an addition to the capital stock already existing. A significant part of current output of capital goods goes in maintaining or replacing part of the existing stock of capital goods. This is because the already existing capital stock suffers wear and tear and needs maintenance and replacement.
  • A part of the capital goods produced this year goes for replacement of existing capital goods and is not an addition to the stock of capital goods already existing and its value needs to be subtracted from gross investment for arriving at the measure for net investment.

Consider the following statements.
1. The food procured by the FCI is distributed through every ration shops among the poorer section of the society
2. Ration shops also known as Fair Price Shops
Which of the statements/statements are correct?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    Both 1 and 2
  • d)
    None of them
Correct answer is option 'B'. Can you explain this answer?

Deepa Iyer answered
  • The food procured by the FCI is distributed through government regulated ration shops among the poorer section of the society.
  • This is called the Public Distribution System (PDS). Ration shops are now present in most localities, villages, towns and cities. There are about 5.5 lakh ration shops all over the country. Ration shops also, known as Fair Price Shops, keep stock of foodgrains, sugar, and kerosene for cooking.

Consider the following statements about Global Warming.
1. It is caused by man-made increases in carbon dioxide and other greenhouse gases through the burning of fossil fuels and deforestation
2. It is a gradual increase in the average temperature of the earth’s lower atmosphere as a result of the increase in greenhouse gases since the Industrial Revolution
Which of the statement/statements is/are correct?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    Both 1 and 2
  • d)
    None of them
Correct answer is option 'C'. Can you explain this answer?

Zara Khan answered
  • Global warming is a gradual increase in the average temperature of the earth’s lower atmosphere as a result of the increase in greenhouse gases since the Industrial Revolution. Much of the recently observed and projected global warming is human-induced.
  • It is caused by man-made increases in carbon dioxide and other greenhouse gases through the burning of fossil fuels and deforestation. Adding carbon dioxide, methane and such other gases (that have the potential to absorb heat) to the atmosphere with no other changes make our planet’s surface warmer.

Assertion: The first seven five year plans gave importance to self-reliance which means avoiding imports of those goods which could be produced in India itself
Reason: It was feared that dependence on imported food supplies, foreign technology and foreign capital may make India’s sovereignty vulnerable to foreign interference in our policies.
Select the correct code:
  • a)
    Both A and R are true and R is the correct explanation of A.
  • b)
    Both A and R are true but R is not a correct explanation of A.
  • c)
    A is true but R is false.
  • d)
    A is false but R is true
Correct answer is option 'A'. Can you explain this answer?

  • Self-reliance: A nation can promote economic growth and modernisation by using its own resources or by using resources imported from other nations. The first seven five year plans gave importance to self-reliance which means avoiding imports of those goods which could be produced in India itself.
  • This policy was considered a necessity in order to reduce our dependence on foreign countries, especially for food. It is understandable that people who were recently freed from foreign domination should give importance to self-reliance.
  • Further, it was feared that dependence on imported food supplies, foreign technology and foreign capital may make India’s sovereignty vulnerable to foreign interference in our policies.

Consider the following statements regarding the consequences of the British rule in India.
1. India became an exporter of primary products such as raw silk, cotton, wool, sugar, indigo, jute etc.
2. India became an importer of finished consumer goods like cotton, silk and woolen clothes and capital goods.
Which of the statements is/are correct?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?

Eshaan Kapoor answered
  • India became an exporter of primary products such as raw silk, cotton, wool, sugar, indigo, jute etc. and an importer of finished consumer goods like cotton, silk and woollen clothes and capital goods like light machinery produced in the factories of Britain.
  • For all practical purposes, Britain maintained a monopoly control over India’s exports and imports. As a result, more than half of India’s foreign trade was restricted to Britain while the rest was allowed with a few other countries like China, Ceylon (Sri Lanka) and Persia (Iran).
  • The opening of the Suez Canal further intensified British control over India’s foreign trade. The most important characteristic of India’s foreign trade throughout the colonial period was the generation of a large export surplus. But this surplus came at a huge cost to the country’s economy.

What are the reasons that we include final goods only while measuring the final value of Economic activity of a country and not the intermediary goods?
1. Final goods already includes the value of the intermediate goods that have entered into their production as inputs
2. Counting them separately will lead to the error of double counting
3. Counting them will highly exaggerate the final value of our economic activity
Which of these statements are not correct?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    3 Only
  • d)
    None of them
Correct answer is option 'D'. Can you explain this answer?

The correct answer is option 'D' - None of them.

Explanation:
1. Final goods already include the value of the intermediate goods that have entered into their production as inputs:
- This statement is correct. When we calculate the value of final goods, it already takes into account the value of intermediate goods that were used in their production. Including the value of intermediate goods separately would result in double counting, which would distort the actual value of economic activity.

2. Counting them separately will lead to the error of double counting:
- This statement is correct. If we were to count the value of intermediate goods separately, it would result in double counting. Intermediate goods are used in the production process and their value is already included in the final goods. Counting them separately would artificially inflate the value of economic activity.

3. Counting them will highly exaggerate the final value of our economic activity:
- This statement is incorrect. Counting the value of intermediate goods separately would not exaggerate the final value of economic activity. On the contrary, it would lead to an overestimation of economic activity due to double counting. Including the value of intermediate goods separately would result in an inflated GDP, which would not accurately reflect the true economic output of a country.

In conclusion, both statements 1 and 2 are correct, while statement 3 is incorrect. Final goods already include the value of intermediate goods, counting them separately would result in double counting and an overestimation of economic activity. Therefore, the inclusion of only final goods is necessary to measure the accurate value of economic activity in a country.

Consider the following statements.
1. Removing barriers or restrictions set by the government is what is known as liberalisation.
2. With liberalisation of trade, businesses are allowed to make decisions freely about what they wish to import or export.
3. The government imposes much less restrictions than before and is therefore said to be more liberal
Which of the statements/statements is/are correct?
  • a)
    1 and 2 Only
  • b)
    2 and 3 Only
  • c)
    1 and 3 Only
  • d)
    All of them
Correct answer is option 'D'. Can you explain this answer?

Krish Sengupta answered
Explanation:

Statement 1:
Removing barriers or restrictions set by the government is indeed known as liberalisation. Liberalisation refers to the process of reducing or eliminating government regulations and controls in various sectors of the economy.

Statement 2:
With liberalisation of trade, businesses are allowed to make decisions freely about what they wish to import or export. This statement is correct as liberalisation of trade aims to promote free trade by reducing trade barriers such as tariffs, quotas, and import/export restrictions. This allows businesses to engage in international trade more freely and make decisions based on market demand and competitiveness.

Statement 3:
The government imposes much fewer restrictions than before and is therefore said to be more liberal. This statement is also correct. Liberalisation often involves reducing government control and intervention in economic activities. By imposing fewer restrictions, the government allows market forces to play a greater role in determining economic outcomes, which is a characteristic of a more liberal economic environment.

Conclusion:
All three statements are correct. Liberalisation involves removing government barriers or restrictions, allowing businesses to make independent decisions about import and export, and reducing government intervention in economic activities. Therefore, option D, which states that all the statements are correct, is the correct answer.

Which of the following are correctly matched?
1. Occasionally poor - who are rich most of the time but may sometimes have a patch of bad luck
2. Churning poor - who regularly move in and out of poverty
3. Chronic poor - Who may sometimes have a little more money
  • a)
    1 and 2 Only
  • b)
    2 and 3 Only
  • c)
    1 and 3 Only
  • d)
    All of them
Correct answer is option 'D'. Can you explain this answer?

Meera Kapoor answered
  • Categorising Poverty: There are many ways to categorise poverty. In one such way people who are always poor and those who are usually poor but who may sometimes have a little more money (example: casual workers) are grouped together as the chronic poor.
  • Another group are the churning poor who regularly move in and out of poverty (example: small farmers and seasonal workers) and the occasionally poor who are rich most of the time but may sometimes have a patch of bad luck. They are called the transient poor. And then, there are those who are never poor and they are the non-poor.

Assertion: Many borrowers find themselves in the Debt trap due to the informal source of loan
Reason: The cost to the borrower of informal loans is much higher
Select the correct code:
  • a)
    Both A and R are true and R is the correct explanation of A.
  • b)
    Both A and R are true but R is not a correct explanation of A.
  • c)
    A is true but R is false.
  • d)
    A is false but R is true.
Correct answer is option 'A'. Can you explain this answer?

Swara Tiwari answered
Assertion: Many borrowers find themselves in the Debt trap due to the informal source of loan.

Reason: The cost to the borrower of informal loans is much higher.

Explanation:

The assertion states that many borrowers find themselves in a debt trap due to the informal source of loans, while the reason provided is that the cost to the borrower of informal loans is much higher.

Informal loans refer to borrowing from sources that are not regulated by formal financial institutions such as banks or credit unions. These sources can include moneylenders, friends, family members, or even loan sharks. These loans are typically characterized by high interest rates, lack of legal documentation, and absence of consumer protection measures.

Supporting Point 1: High interest rates:
- Informal loans often come with exorbitant interest rates that are significantly higher than those offered by formal financial institutions.
- This is because the lenders of informal loans usually operate outside the purview of regulatory authorities and can charge interest rates based on their own discretion.
- As a result, borrowers end up paying a substantial amount of money in the form of interest, which can make it difficult for them to repay the loan.

Supporting Point 2: Lack of legal documentation:
- Informal loans are often based on verbal agreements or informal written documents, lacking the legal protection and enforceability that formal loans provide.
- This makes it easier for lenders to exploit borrowers by changing the loan terms or demanding additional payments without any legal recourse for the borrower.
- As a result, borrowers may find themselves trapped in a cycle of debt due to the lack of transparency and legal safeguards.

Supporting Point 3: Absence of consumer protection measures:
- Informal loans are not subject to the same consumer protection measures that are mandated for formal loans.
- This means that borrowers do not have access to mechanisms such as credit counseling, debt restructuring, or dispute resolution, which can help alleviate their financial burden.
- Without these support systems, borrowers may struggle to manage their debt and find themselves trapped in a never-ending cycle of borrowing to repay existing loans.

Conclusion:
Given the high interest rates, lack of legal documentation, and absence of consumer protection measures associated with informal loans, it is evident that the cost to the borrower is much higher. This, in turn, leads many borrowers to find themselves in a debt trap. Therefore, both the assertion and the reason are true, with the reason providing a correct explanation for the assertion. Hence, option 'A' is the correct answer.

Assertion: The price of food grains declined relative to other items of consumption.
Reason: A good proportion of the rice and wheat produced during the green revolution period was consumed by the farmers themselves
Select the correct code:
  • a)
    Both A and R are true and R is the correct explanation of A.
  • b)
    Both A and R are true but R is not a correct explanation of A.
  • c)
    A is true but R is false.
  • d)
    A is false but R is true.
Correct answer is option 'C'. Can you explain this answer?

Meera Kapoor answered
  • The portion of agricultural produce which is sold in the market by the farmers is called marketed surplus.
  • A good proportion of the rice and wheat produced during the green revolution period (available as marketed surplus) was sold by the farmers in the market. As a result, the price of food grains declined relative to other items of consumption.
  • The low- income groups, who spend a large percentage of their income on food, benefited from this decline in relative prices.
The green revolution enabled the government to procure sufficient amounts of food grains to build a stock which could be used in times of food shortage.

Consider the following statements about the concept of modernisation.
1. Adoption of new technology is called modernisation
2. Modernisation does not refer only to the use of new technology but also to changes in social outlook
Which of the statements is/are correct?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?

Kavita Shah answered
  • Modernisation: To increase the production of goods and services the producers have to adopt new technology. For example, a farmer can increase the output on the farm by using new seed varieties instead of using the old ones.
  • Similarly, a factory can increase output by using a new type of machine. Adoption of new technology is called modernisation. However, modernisation does not refer only to the use of new technology but also to changes in social outlook such as the recognition that women should have the same rights as men.
  • In a traditional society, women are supposed to remain at home while men work. A modern society makes use of the talents of women in the workplace — in banks, factories, schools etc. — and such a society in most occasions is also prosperous.

Consider the following statements.
1. NDP at Factor Cost measure allows policy-makers to estimate how much the country has to spend just to maintain their current GDP
2. If the country is not able to replace the capital stock lost through depreciation, then GDP will fall
Which of these statements are correct?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    Both 1 and 2
  • d)
    None of them
Correct answer is option 'B'. Can you explain this answer?

Tanishq Roy answered
Explanation:

Both statements are incorrect. Let's analyze each statement individually:

Statement 1: NDP at Factor Cost measure allows policy-makers to estimate how much the country has to spend just to maintain their current GDP.

This statement is incorrect. NDP at Factor Cost is a measure used to estimate the net value of national income generated within a country during a specific period. It is calculated by deducting depreciation (i.e., the amount of capital stock lost) from the Gross Domestic Product (GDP). NDP at Factor Cost represents the actual income earned by the factors of production (i.e., labor and capital) within a country. It does not provide information about how much the country has to spend to maintain its current GDP. Therefore, statement 1 is incorrect.

Statement 2: If the country is not able to replace the capital stock lost through depreciation, then GDP will fall.

This statement is also incorrect. Depreciation refers to the decrease in the value of capital stock over time due to wear and tear, obsolescence, or any other factors. While depreciation can have an impact on the productivity and efficiency of capital, it does not directly determine the GDP. GDP is a measure of the total value of goods and services produced within a country's borders during a specific period. It is influenced by various factors such as consumption, investment, government spending, and net exports. Therefore, the inability to replace the capital stock lost through depreciation may affect the long-term growth potential of an economy, but it does not necessarily lead to an immediate fall in GDP. Hence, statement 2 is incorrect.

In conclusion, neither statement 1 nor statement 2 is correct.

Consider the following statements.
1. When the income is being spent on the goods and services produced by the firms, it takes the form of aggregate expenditure received by the firms
2. When the aggregate revenue received by the firms is paid out to the factors of production it takes the form of aggregate income
Which of these statements are correct?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    Both of them
  • d)
    None of them
Correct answer is option 'C'. Can you explain this answer?

Meera Kapoor answered
  • When the income is being spent on the goods and services produced by the firms, it takes the form of aggregate expenditure received by the firms.
  • Since the value of expenditure must be equal to the value of goods and services, we can equivalently measure the aggregate income by “calculating the aggregate value of goods and services produced by the firms”.
  • When the aggregate revenue received by the firms is paid out to the factors of production it takes the form of aggregate income.

Consider the following statements about the concept of growth.
1. It refers to increase in the country’s capacity to produce the output of goods and services within the country
2. A good indicator of economic growth, in the language of economics, is steady increase in the Gross Domestic Product (GDP)
Which of the statements is/are correct?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    Both 1 and 2
  • d)
    None of them
Correct answer is option 'C'. Can you explain this answer?

Introduction:
Growth refers to the increase in a country's capacity to produce the output of goods and services. It is an important concept in economics and is often measured by indicators such as Gross Domestic Product (GDP).

Explanation:
To understand the correctness of the given statements, let's analyze each statement individually:

Statement 1: It refers to an increase in the country's capacity to produce the output of goods and services within the country.

This statement is correct. Economic growth is typically associated with an increase in a country's capacity to produce goods and services. This can be achieved through various means such as technological advancements, investments in physical and human capital, and improvements in infrastructure. As a country's capacity to produce increases, it is able to provide a higher quantity and variety of goods and services to its population.

Statement 2: A good indicator of economic growth, in the language of economics, is a steady increase in the Gross Domestic Product (GDP).

This statement is also correct. GDP is a commonly used indicator to measure economic growth. It represents the total value of all goods and services produced within a country during a specific period. A steady increase in GDP over time indicates that the country's economy is growing and expanding its production capabilities.

Conclusion:
Both statements are correct. Economic growth refers to an increase in a country's capacity to produce goods and services, and GDP is a widely accepted indicator to measure this growth. Therefore, option 'C' is the correct answer.

Another feature of high poverty rates has been the huge income inequalities. In context of this, consider the following statements.
1. One of the major reasons for this is the unequal distribution of land and other resources
2. Land reforms which aimed at redistribution of assets in rural areas have not been implemented properly
3. In order to fulfil social obligations and observe religious ceremonies, people in India spend a lot of money
Which of these statements are correct?
  • a)
    1 and 2 Only
  • b)
    2 and 3 Only
  • c)
    1 and 3 Only
  • d)
    All of them
Correct answer is option 'D'. Can you explain this answer?

Sakshi Pillai answered
Explanation:
The given statements are related to the issue of poverty and income inequality in India. Let us analyze each statement in detail:

Unequal distribution of land and resources:
One of the major reasons for income inequality in India is the unequal distribution of land and other resources. The land ownership pattern in rural areas is highly skewed, with a few large landowners holding the majority of the land and the majority of the population being landless or small landowners. This has resulted in a concentration of wealth and power in the hands of a few, leading to income inequality.

Improper implementation of land reforms:
Land reforms in India aimed at redistributing land and other assets in rural areas have not been implemented properly. The lack of political will, bureaucratic red tape, and resistance from vested interests have all contributed to the failure of land reforms. As a result, the concentration of land and resources in the hands of a few has continued, perpetuating income inequality.

Spending on social obligations and religious ceremonies:
In India, people spend a considerable amount of money on social obligations and religious ceremonies. While these are important cultural practices, they can also be a significant drain on household budgets, especially for those living in poverty. This can contribute to income inequality, as those who have more financial resources are able to spend more on these practices, while those who are poor may have to go into debt or forego these practices altogether.

Conclusion:
All three statements are correct and interrelated. Income inequality in India is a complex issue that is influenced by a range of factors, including historical patterns of land ownership, inadequate implementation of land reforms, and cultural practices that can be a significant drain on household budgets. Addressing these issues will require a concerted effort from policymakers, civil society, and communities across the country.

Consider the following statements.
1. Sarva Siksha Abhiyan has been implemented to encourage attendance and retention of children and improve their nutritional status
2. Mid-day meal scheme is a significant step towards providing elementary education to all children in the age group of 6–14 years
Which of these statements are correct?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    Both of them
  • d)
    None of them
Correct answer is option 'D'. Can you explain this answer?

Shilpa Yadav answered
Statement 1: Sarva Siksha Abhiyan has been implemented to encourage attendance and retention of children and improve their nutritional status.

The first statement is incorrect. Sarva Siksha Abhiyan (SSA) is a flagship program of the Government of India implemented in 2000 to achieve universal elementary education. Its primary objective is to provide free and compulsory education to all children in the age group of 6-14 years. While SSA aims to improve access to education and ensure retention of children in schools, it does not specifically focus on improving their nutritional status.

Statement 2: Mid-day meal scheme is a significant step towards providing elementary education to all children in the age group of 6–14 years.

The second statement is incorrect. The Mid-day Meal Scheme (MDMS) is a centrally sponsored program launched in 1995 with the objective of improving the nutritional status of school children and encouraging their enrollment, attendance, and retention in schools. It provides free cooked meals to children studying in government and government-aided schools. While the scheme does contribute to the overall goal of providing elementary education, its primary focus is on improving the nutritional intake of children rather than directly providing education.

Therefore, both statements are incorrect.

In summary:
- Sarva Siksha Abhiyan (SSA) aims to achieve universal elementary education, but it does not specifically focus on improving the nutritional status of children.
- The Mid-day Meal Scheme (MDMS) focuses on providing nutritious meals to children to improve their health and encourage enrollment and attendance in schools, but it is not a direct initiative for providing elementary education.

Consider the following statements.
1. Investment decisions by producers, such as whether to buy a new machine, depend, to a large extent, on the market rate of interest
2. Machines produced in an economy in a given year are not ‘used up’ to produce other goods but yield their services over a number of years
Which of these statements are correct?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    Both 1 and 2
  • d)
    None of them
Correct answer is option 'C'. Can you explain this answer?

Kavita Mehta answered
  • Investment is defined as addition to the stock of physical capital (such as machines, buildings, roads etc., i.e. anything that adds to the future productive capacity of the economy) and changes in the inventory (or the stock of finished goods) of a producer.
  • Note that ‘investment goods’ (such as machines) are also part of the final goods – they are not intermediate goods like raw materials. Machines produced in an economy in a given year are not ‘used up’ to produce other goods but yield their services over a number of years.
  • Investment decisions by producers, such as whether to buy a new machine, depend, to a large extent, on the market rate of interest. However, for simplicity, we assume here that firms plan to invest the same amount every year.

In context of widespread poverty in India, consider the following statements.
1. One historical reason is the low level of economic development under the British colonial administration
2. The policies of the colonial government ruined traditional handicrafts and discouraged development of industries like textiles
3. With the spread of irrigation and the Green revolution, many job opportunities were created in the agriculture sector in the whole India
Which of these statements are correct?
  • a)
    1 and 2 Only
  • b)
    2 and 3 Only
  • c)
    1 and 3 Only
  • d)
    All of them
Correct answer is option 'A'. Can you explain this answer?

Anuj Kumar answered
Explanation:
India has a long history of poverty, and there are many reasons for it. The following statements can explain some of the reasons:

1. Low level of economic development under British colonial administration:
During the British colonial period, India was essentially an agrarian economy. The British policies led to the deindustrialization of India, which heavily impacted the traditional handicrafts and led to a decline in economic activities.

2. Ruin of traditional handicrafts and discouragement of industries like textiles:
The British colonial government introduced policies which hurt the traditional handicrafts and textile industries. For instance, they imposed high tariffs on Indian textiles, which made it difficult for them to compete with British textiles. This led to a decline in the textile industry in India and left millions of people without jobs.

3. Creation of job opportunities in the agriculture sector:
The spread of irrigation and the Green revolution created many job opportunities in the agriculture sector across India. However, this was not enough to solve the problem of poverty in India since the majority of the population was still engaged in agriculture, and the sector was heavily dependent on monsoon.

Therefore, option 'A' is the correct answer as statements 1 and 2 are correct. Statement 3 is not entirely correct since although it created job opportunities, it was not enough to eradicate poverty in India.

Consider the following statements about Mahatma Gandhi National Rural Employment Guarantee Act, 2005.
1. It aims to provide 100 days of wage employment to every household to ensure livelihood security in rural areas
2. It also aimed at sustainable development to address the cause of draught, deforestation and soil erosion
3. One-third of the proposed jobs have been reserved for women
Which of these statements are correct?
  • a)
    1 and 2 Only
  • b)
    2 and 3 Only
  • c)
    1 and 3 Only
  • d)
    All of them
Correct answer is option 'D'. Can you explain this answer?

Abhishek Das answered
Explanation:

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005 is a social security scheme that aims to provide employment and livelihood security to rural households in India. The act has several provisions to achieve its objectives, and the given statements correctly highlight some of the key features of the act.

Statement 1: It aims to provide 100 days of wage employment to every household to ensure livelihood security in rural areas.
This statement is correct. The primary objective of MGNREGA is to provide at least 100 days of wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work. This provision ensures that rural households have access to a minimum level of income and livelihood security.

Statement 2: It also aimed at sustainable development to address the cause of drought, deforestation, and soil erosion.
This statement is correct. MGNREGA is not only focused on providing employment but also aims at sustainable development. The act includes provisions for the creation of durable assets such as water conservation structures, afforestation, and land development to address issues like drought, deforestation, and soil erosion. This helps in promoting environmental sustainability and improving the overall quality of life in rural areas.

Statement 3: One-third of the proposed jobs have been reserved for women.
This statement is correct. MGNREGA recognizes the importance of women's empowerment and participation in rural development. As per the act, at least one-third of the total proposed jobs or work opportunities should be reserved for women. This provision ensures gender equality and provides women with equal opportunities for employment and economic empowerment.

Therefore, all the given statements (1, 2, and 3) are correct. MGNREGA aims to provide 100 days of wage employment, address issues of sustainable development, and reserves one-third of the proposed jobs for women.

Consider the following statements regarding the import substitution policy.
1. This policy aimed at replacing or substituting imports with domestic production.
2. In this policy the government protected the domestic industries from foreign competition
3. Tariffs helped the government specify the quantity of goods which can be imported
Which of the statements is/are correct?
  • a)
    1 and 2 Only
  • b)
    2 and 3 Only
  • c)
    1 and 3 Only
  • d)
    All of them
Correct answer is option 'A'. Can you explain this answer?

Eshaan Kapoor answered
  • The industrial policy that we adopted was closely related to the trade policy. In the first seven plans, trade was characterised by what is commonly called an inward looking trade strategy.
  • Technically, this strategy is called import substitution. This policy aimed at replacing or substituting imports with domestic production.
  • For example, instead of importing vehicles made in a foreign country, industries would be encouraged to produce them in India itself. In this policy the government protected the domestic industries from foreign competition. Protection from imports took two forms: tariffs and quotas.
  • Tariffs are a tax on imported goods; they make imported goods more expensive and discourage their use. Quotas specify the quantity of goods which can be imported.
  • The effect of tariffs and quotas is that they restrict imports and, therefore, protect the domestic firms from foreign competition.

In India, regulatory mechanisms were enforced in various ways. Consider the following statements regarding it.
1. Entrepreneur had to get permission from government officials to start a firm, close a firm or decide the amount of goods that could be produced
2. Private sector was not allowed in many industries
3. Some goods could be produced only in small-scale industries
Which of the statements is/are correct?
  • a)
    1 and 2 Only
  • b)
    2 and 3 Only
  • c)
    1 and 3 Only
  • d)
    All of them
Correct answer is option 'D'. Can you explain this answer?

Regulatory mechanisms in India during a particular period enforced various rules and restrictions on entrepreneurs and industries. The correct statements regarding these mechanisms are as follows:

1. Entrepreneurs needing permission from government officials:
In India, entrepreneurs were required to obtain permission from government officials to start a firm, close a firm, or determine the quantity of goods that could be produced. This means that any individual or group wishing to establish a business needed to seek approval from the government before commencing operations or making any significant changes. This control allowed the government to regulate the growth and functioning of businesses in the country.

2. Prohibition of private sector in many industries:
During this period, the private sector was not permitted to operate in several industries. The government adopted a policy of public ownership and control in key sectors such as defense, railways, telecommunications, and banking. This decision aimed to ensure that these critical sectors remained under government control and influence, thereby safeguarding national interests and strategic objectives.

3. Production limited to small-scale industries:
Certain goods were restricted to production only in small-scale industries. This policy was implemented to promote decentralized industrial growth and prevent the concentration of economic power in the hands of a few large-scale industries. It aimed to encourage small-scale entrepreneurs and create employment opportunities at the local level. By restricting the production of specific goods to small-scale industries, the government sought to foster inclusive and equitable economic development.

These regulatory mechanisms were part of the broader economic policies adopted by the Indian government during a specific period. They aimed to balance the interests of the state, protect national security, promote equitable growth, and exercise control over the private sector. The enforcement of these mechanisms had both positive and negative effects on the Indian economy, and their impact continues to shape the country's economic landscape.

Consider the following statements about the Reforms introduced in Indian Economy post – 1991.
1. Reforms have not been able to benefit agriculture, where the growth rate has been decelerating
2. The removal of fertiliser subsidy has led to decrease in the cost of production, which has severely affected the small and marginal farmers
3. There has been a shift from production for the domestic market towards production for the export market focusing on cash crops
Which of the statements is/are correct?
  • a)
    1 and 2 Only
  • b)
    2 and 3 Only
  • c)
    1 and 3 Only
  • d)
    All of them
Correct answer is option 'C'. Can you explain this answer?

Ojasvi Mehta answered
  • Reforms in Agriculture: Reforms have not been able to benefit agriculture, where the growth rate has been decelerating.
  • Public investment in the agriculture sector especially in infrastructure, which includes irrigation, power, roads, market linkages and research and extension (which played a crucial role in the Green Revolution), has fallen in the reform period.
  • Further, the removal of fertiliser subsidy has led to increase in the cost of production, which has severely affected the small and marginal farmers.
  • Moreover, because of export- oriented policy strategies in agriculture, there has been a shift from production for the domestic market towards production for the export market focusing on cash crops in lieu of production of food grains. This puts pressure on prices of food grains.

Consider the following statements.
1. The LED bulb uses one-tenth energy as an incandescent bulb and half as much as a CFL to produce the same amount of light
2. CFLs consume 80 percent less power as compared to ordinary bulbs
Which of the statement/statements is/are correct?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    Both of them
  • d)
    None of them
Correct answer is option 'C'. Can you explain this answer?

Kavita Shah answered
  • According to the Bureau of Energy Efficiency (BEE), CFLs consume 80 percent less power as compared to ordinary bulbs. As put by a CFL manufacturer, Indo-Asian, replacement of one million 100-watt bulbs with 20 watt CFLs can save 80 megawatt in power generation. This amounts to saving Rs 400 crore.
  • These days LED (Light Emitting Diode) lamps are promoted throughout the country to save energy. The LED bulb uses one-tenth energy as an incandescent bulb and half as much as a CFL to produce the same amount of light.
  • According to the Energy Efficiency Services Ltd, the UJALA scheme that aims to replace incandescent bulbs with LEDs could save 5,905 MW in power generation. This translates to an annual savings of Rs. 4,000 for an average family due to efficiency gains and lower replacement costs.

Consider the following statements.
1. Ozone layer prevents most harmful wavelengths of ultraviolet light from passing through the Earth’s atmosphere
2. Montreal Protocol banned the use of chlorofluorocarbon (CFC) compounds
3. The problem of ozone depletion is caused by high levels of chlorine and bromine compounds in the Troposphere
Which of the statement/statements is/are not correct?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    3 Only
  • d)
    All of them
Correct answer is option 'C'. Can you explain this answer?

Deepa Iyer answered
  • Ozone depletion refers to the phenomenon of reductions in the amount of ozone in the stratosphere. The problem of ozone depletion is caused by high levels of chlorine and bromine compounds in the stratosphere.
  • The origins of these compounds are chlorofluorocarbons (CFC), used as cooling substances in air conditioners and refrigerators, or as aerosol propellants, and bromofluorocarbons (halons), used in fire extinguishers.
  • As a result of depletion of the ozone layer, more ultraviolet (UV) radiation comes to Earth and causes damage to living organisms. UV radiation seems responsible for skin cancer in humans; it also lowers production of phytoplankton and thus affects other aquatic organisms. It can also influence the growth of terrestrial plants. A reduction of approximately 5 per cent in the ozone layer was detected from 1979 to 1990.

In context of the public distribution system, Which of the following are correctly matched?
Name of the Scheme - Coverage Target Group
1. PDS - Universal
2. RPDS - Backward blocks
3. TPDS - Poorest of the poor
Which of the statements/statements are correct?
  • a)
    1 and 2 Only
  • b)
    2 and 3 Only
  • c)
    1 and 3 Only
  • d)
    All of them
Correct answer is option 'A'. Can you explain this answer?

The correct match between the name of the scheme and its coverage target group in the context of the Public Distribution System is:

1. PDS - Universal
2. RPDS - Backward blocks
3. TPDS - Poorest of the poor

Explanation:

1. PDS (Public Distribution System) - Universal Coverage: PDS aims to provide food security to the entire population of the country. It covers both the urban and rural areas.

2. RPDS (Revamped Public Distribution System) - Backward Blocks: RPDS was launched in 1992 to provide food security to the population living in remote, hilly, and tribal areas. The objective was to provide food grains at subsidized rates to the people residing in backward blocks.

3. TPDS (Targeted Public Distribution System) - Poorest of the Poor: TPDS was launched in 1997 to ensure that the poorest of the poor have access to food grains at subsidized rates. The scheme covers only the below poverty line (BPL) families and the Antyodaya Anna Yojana (AAY) households.

Therefore, the correct answer is option 'A' - All of them.

Consider the following statements about the concept of equity.
1. It is important to ensure that the benefits of economic prosperity reach the poor sections
2. Now growth, modernization and self-reliance, by themselves, may not improve the kind of life which people are living
Which of the statements is/are correct?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?

Introduction:
Equity refers to the fair distribution of resources, opportunities, and benefits among individuals and groups in society. It aims to ensure that everyone has equal access to essential services and a decent standard of living.

Explanation:
1. It is important to ensure that the benefits of economic prosperity reach the poor sections:
This statement highlights the significance of equity in economic development. Economic prosperity should not be concentrated in the hands of a few, but should be distributed fairly among all sections of society, especially the poor. When the benefits of economic growth reach the poor, it helps in reducing poverty, inequality, and social disparities. It promotes inclusive development and social cohesion.

2. Now growth, modernization and self-reliance, by themselves, may not improve the kind of life which people are living:
This statement emphasizes that economic growth, modernization, and self-reliance alone may not necessarily lead to an improvement in people's lives. While these factors are important for development, their impact on the quality of life depends on how the benefits are distributed. If the benefits are concentrated in a few hands, it can lead to widening inequalities and exclusion of marginalized sections. Therefore, it is important to ensure that development efforts are accompanied by equitable distribution of resources and opportunities.

Conclusion:
Both statements are correct as they highlight the importance of equity in ensuring that the benefits of economic prosperity reach the poor sections of society and that growth and modernization alone may not improve people's lives unless accompanied by equitable distribution. By promoting equity, societies can strive towards a more just and inclusive development path, where everyone has equal opportunities and access to essential resources.

Consider the following statements.
1. GDP deflator does not include prices of imported goods
2. CPI does not includes prices of goods consumed by the representative consumers
Which of these statements are not correct?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'B'. Can you explain this answer?

Debanshi Menon answered
Explanation:

GDP deflator:
The GDP deflator is a measure of the average price level of goods and services produced in an economy. It is calculated by dividing nominal GDP (the value of all final goods and services produced at current prices) by real GDP (the value of all final goods and services produced at constant prices). The GDP deflator includes the prices of both domestically produced goods and imported goods.

CPI:
The Consumer Price Index (CPI) measures the average price level of goods and services consumed by the representative consumers in an economy. It is calculated by comparing the cost of a basket of goods and services at current prices to the cost of the same basket at base period prices. The CPI includes the prices of goods consumed by the representative consumers, which may include both domestically produced goods and imported goods.

Statement 1: GDP deflator does not include prices of imported goods
This statement is not correct. The GDP deflator includes the prices of both domestically produced goods and imported goods. It measures the overall price level in an economy, including the prices of goods and services produced both domestically and abroad.

Statement 2: CPI does not include prices of goods consumed by the representative consumers
This statement is also not correct. The CPI measures the average price level of goods and services consumed by the representative consumers. It includes the prices of goods consumed by the representative consumers, which may include both domestically produced goods and imported goods.

Conclusion:
Both statements are not correct. The GDP deflator includes the prices of both domestically produced goods and imported goods, and the CPI includes the prices of goods consumed by the representative consumers, which may include both domestically produced goods and imported goods. The correct answer is option 'B'.

Consider the following statements.
1. The result of greater foreign investment and greater foreign trade has been greater integration of production and markets across countries
2. Globalisation is this process of rapid integration or interconnection between countries
Which of the statements/statements is/are correct?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    Both 1 and 2
  • d)
    None of them
Correct answer is option 'C'. Can you explain this answer?

Manisha Tiwari answered
Answer:

Introduction:
The given statements are related to the concept of globalization and its impact on the integration of production and markets across countries. Let's analyze each statement and determine their correctness.

Statement 1: The result of greater foreign investment and greater foreign trade has been greater integration of production and markets across countries.

Foreign investment and foreign trade play a crucial role in the process of globalization. When countries engage in foreign investment and trade, it leads to the exchange of goods, services, and capital between them. This exchange fosters economic interdependence and integration of production and markets across countries. Here's how it happens:

Integration of Production:
1. Foreign investment allows companies to establish production facilities in other countries, taking advantage of lower costs, resources, or expertise.
2. This leads to the creation of global value chains, where different stages of production are spread across multiple countries.
3. Companies source inputs, components, or services from different countries to optimize their production process.
4. As a result, the production process becomes more integrated and interconnected across borders.

Integration of Markets:
1. Foreign trade enables countries to access larger markets and diverse consumer bases.
2. Through exports and imports, countries can sell their products and services to a global customer base.
3. This leads to increased competition, innovation, and specialization, as companies strive to cater to the global market.
4. The integration of markets also facilitates the flow of ideas, technologies, and best practices between countries.

Therefore, it can be concluded that greater foreign investment and foreign trade result in greater integration of production and markets across countries.

Statement 2: Globalization is this process of rapid integration or interconnection between countries.

Globalization refers to the increasing interconnectedness and interdependence of countries through various economic, political, and cultural channels. It involves the integration of goods, services, capital, technology, information, and people across national boundaries. Therefore, statement 2 is correct in defining globalization as the process of rapid integration or interconnection between countries.

Conclusion:
Both statements are correct. The result of greater foreign investment and foreign trade is greater integration of production and markets across countries. This process of integration or interconnection between countries is referred to as globalization.

Consider the following statements.
1. There may be times when demand exceeds available output under conditions of low utilisation of labour and economy
2. The intervention of the government whether to expand demand or reduce it constitutes the stabilisation function
Which of these statements are not correct?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'A'. Can you explain this answer?

Anjali Rao answered
  • The overall level of employment and prices in the economy depends upon the level of aggregate demand which depends on the spending decisions of millions of private economic agents apart from the government.
  • These decisions, in turn, depend on many factors such as income and credit availability. In any period, the level of demand may not be sufficient for full utilisation of labour and other resources of the economy.
  • Since wages and prices do not fall below a level, employment cannot be brought back to the earlier level automatically. The government needs to intervene to raise the aggregate demand.
  • On the other hand, there may be times when demand exceeds available output under conditions of high employment and thus may give rise to inflation. In such situations, restrictive conditions may be needed to reduce demand. The intervention of the government whether to expand demand or reduce it constitutes the stabilisation function.

Consider the following statements
1. Members can take small loans from the group itself to meet their needs
2. The group charges interest on these loans but this is still less than what the moneylender charges
3. Loan is sanctioned in the name of the particular member and is meant to create self-employment opportunities for the members
Which of these statements are correct about Self Help Groups?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    3 Only
  • d)
    1 and 2 Only
Correct answer is option 'D'. Can you explain this answer?

Sanaya Basak answered
Introduction:
Self Help Groups (SHGs) are community-based organizations that consist of a small group of individuals who come together to address their common social and economic needs. These groups aim to empower their members through various activities, including providing financial assistance in the form of small loans. Let us analyze the given statements to determine which ones are correct about Self Help Groups.

Statement 1: Members can take small loans from the group itself to meet their needs.
This statement is correct. One of the primary objectives of Self Help Groups is to provide financial assistance to their members. Members can avail small loans from the group to meet their immediate financial requirements. These loans are generally provided at a reasonable rate of interest.

Statement 2: The group charges interest on these loans but this is still less than what the moneylender charges.
This statement is also correct. Self Help Groups charge a nominal rate of interest on the loans provided to their members. The interest rate charged by SHGs is usually lower than what moneylenders or other financial institutions charge. This helps in reducing the financial burden on the members and promotes financial inclusion.

Statement 3: Loan is sanctioned in the name of the particular member and is meant to create self-employment opportunities for the members.
This statement is correct. When a loan is sanctioned by a Self Help Group, it is done in the name of the particular member who requires the funds. This ensures that the loan is used for the intended purpose, which is to create self-employment opportunities for the members. The loans are primarily given for income-generating activities like starting a small business, agriculture, or other livelihood-related ventures.

Conclusion:
In conclusion, all the given statements about Self Help Groups are correct. Members can avail small loans from the group itself, which are provided at a lower rate of interest compared to moneylenders. These loans are sanctioned in the name of the particular member and are meant to create self-employment opportunities. Self Help Groups play a crucial role in promoting financial inclusion and empowering individuals at the grassroots level.

Which of the following sectors are categorised as the Tertiary sector?
1. Fishing,
2. Mining and quarrying
3. Tourism
4. Manufacturing
5. Transport
Choose from the following options.
  • a)
    1, 2, 3 and 4 Only
  • b)
    3, 4 and 5 Only
  • c)
    3 Only
  • d)
    3 and 5 Only
Correct answer is option 'D'. Can you explain this answer?

Anisha Singh answered
Tertiary sector:

The tertiary sector is the sector of the economy that provides services to its consumers. This sector includes a wide range of activities like banking, education, healthcare, hospitality, tourism, transportation, and others.

Sectors categorised as the Tertiary sector:

Out of the given options, the sectors categorised as the Tertiary sector are:

1. Tourism: Tourism is a service-based industry that includes transportation, accommodation, food and beverage, entertainment, and other related services. It is a vital source of revenue for many countries and regions around the world.

2. Transport: Transport includes the movement of goods and people from one place to another. It is an essential service that facilitates trade, commerce, and mobility.

Therefore, the correct answer is option 'D' - 3 and 5 Only.

Consider the following statements.
1. Human capital treats human beings as a means to an end
2. As per Human Capital Perspective, Any investment in education and health is unproductive if it does not enhance output of goods and services
Which of the statements is/are correct?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    Both 1 and 2
  • d)
    None of them
Correct answer is option 'C'. Can you explain this answer?

Kavita Shah answered
  • What is the Difference Between the approach of Development of Human Capital and Human Development? Human capital considers education and health as a means to increase labour productivity.
  • Human development is based on the idea that education and health are integral to human well-being because only when people have the ability to read and write and the ability to lead a long and healthy life, they will be able to make other choices which they value.
  • Human capital treats human beings as a means to an end; the end being the increase in productivity. In this view, any investment in education and health is unproductive if it does not enhance output of goods and services.
  • In the human development perspective, human beings are ends in themselves. Human welfare should be increased through investments in education and health even if such investments do not result in higher labour productivity.
  • Therefore, basic education and basic health are important in themselves, irrespective of their contribution to labour productivity.

With respect to the difference between private goods and public goods, consider the following statements.
1. The benefits of public goods are available to all and are not only restricted to one particular consumer
2. In case of private goods anyone who does not pay for the goods can be excluded from enjoying its benefits
3. One person’s consumption of a good does not reduce the amount available for consumption for others then it is a public good
Which of these statements are not correct?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    3 Only
  • d)
    None of the above
Correct answer is option 'D'. Can you explain this answer?

Kavita Mehta answered
  • There are two major differences. One, the benefits of public goods are available to all and are not only restricted to one particular consumer. For example, if a person eats a chocolate or wears a shirt, these will not be available to others.
  • It is said that this person’s consumption stands in relation to the consumption of others. However, if we consider a public park or measures to reduce air pollution, the benefits will be available to all.
  • One person’s consumption of a good does not reduce the amount available for consumption for others and so several people can enjoy the benefits, that is, the consumption of many people is not ‘rivalrous’.

Consider the following statements.
1. Workers who own and operate an enterprise to earn their livelihood are known as self-employed
2. When a worker is engaged by someone or an enterprise and paid his or her wages on a regular basis, they are known as regular salaried employees
Which of the statement/statements is/are correct?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    Both 1 and 2
  • d)
    None of them
Correct answer is option 'C'. Can you explain this answer?

Meera Kapoor answered
  • Let us take three workers from the construction industry — a cement shop owner, a construction worker and a civil engineer of a construction company.
  • Since the status of each one of them is different from another, they are also called differently. Workers who own and operate an enterprise to earn their livelihood are known as self-employed.
  • Thus the cement shop owner is self-employed. About 52 per cent of the workforce in India belongs to this category. The construction workers are known as casual wage labourers; they account for 30 per cent of India’s workforce.
  • Such labourers are casually engaged in others’ farms and, in return, get a remuneration for the work done. Workers like the civil engineer working in the construction company account for 18 percent of India’s workforce.
When a worker is engaged by someone or an enterprise and pays his or her wages on a regular basis, they are known as regular salaried employees.

Arrange the following Schemes Chronologically based on their releasing year.
1. Prime Minister Rozgar Yozana (PMRY)
2. Rural Employment Generation Programme (REGP)
3. Pradhan Mantri Gramodaya Yozana (PMGY)
4. Gram Swarozgar Yojana (SGSY)
Choose from the following options.
  • a)
    1-2-3-4
  • b)
    1-2-4-3
  • c)
    3-4-1-2
  • d)
    4-3-2-1
Correct answer is option 'B'. Can you explain this answer?

Abhishek Das answered
Explanation:
The correct order of the schemes released chronologically is as follows:

1. Prime Minister Rozgar Yojana (PMRY) - Released first
2. Rural Employment Generation Programme (REGP) - Released after PMRY
3. Gram Swarozgar Yojana (SGSY) - Released after REGP
4. Pradhan Mantri Gramodaya Yojana (PMGY) - Released last

Reasoning:
To determine the correct order of the schemes, we need to analyze the release years of each scheme.

1. Prime Minister Rozgar Yojana (PMRY):
- PMRY was launched in 1993.
- It aimed to provide self-employment opportunities to educated unemployed youth.
- Since it was released first, it takes the first position in the chronological order.

2. Rural Employment Generation Programme (REGP):
- REGP was launched in 1995.
- It aimed to create sustainable employment opportunities in rural areas.
- REGP was released after PMRY, so it takes the second position in the order.

3. Gram Swarozgar Yojana (SGSY):
- SGSY was launched in 1999.
- It aimed to provide self-employment opportunities to rural poor.
- SGSY was released after REGP, so it takes the third position in the order.

4. Pradhan Mantri Gramodaya Yojana (PMGY):
- PMGY was launched in 2000.
- It aimed to improve the quality of life in rural areas through various development initiatives.
- PMGY was released last, so it takes the fourth and final position in the chronological order.

Summary:
Based on the release years of the schemes, the correct chronological order is:
1. Prime Minister Rozgar Yojana (PMRY)
2. Rural Employment Generation Programme (REGP)
3. Gram Swarozgar Yojana (SGSY)
4. Pradhan Mantri Gramodaya Yojana (PMGY)

Hence, the correct answer is option 'B' (1-2-4-3).

Consider the following statements.
1. Those that relate to the current financial year only are included in the revenue account
2. Those that concern the assets and liabilities of the government into the capital account
Which of these statements are correct?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?

Deepa Iyer answered
  • Although the budget document relates to the receipts and expenditure of the government for a particular financial year, the impact of it will be there in subsequent years.
  • There is a need therefore to have two accounts- those that relate to the current financial year only are included in the revenue account (also called revenue budget) and those that concern the assets and liabilities of the government into the capital account (also called capital budget).

Consider the following statements regarding the concept of social exclusion.
1. Poverty must be seen in terms of the poor having to live only in a poor surrounding with other poor people
2. It is a process through which individuals or groups are excluded from facilities, benefits and opportunities that others enjoy
3. Untouchability is the example of this concept
Which of these statements are correct?
  • a)
    1 and 2 Only
  • b)
    2 and 3 Only
  • c)
    1 and 3 Only
  • d)
    All of them
Correct answer is option 'D'. Can you explain this answer?

Suresh Reddy answered
  • According to this concept, poverty must be seen in terms of the poor having to live only in a poor surrounding with other poor people, excluded from enjoying social equality of better-off people in better surroundings. Social exclusion can be both a cause as well as a consequence of poverty in the usual sense.
  • Broadly, it is a process through which individuals or groups are excluded from facilities, benefits and opportunities that others (their “betters”) enjoy. A typical example is the working of the caste system in India in which people belonging to certain castes are excluded from equal opportunities. Social exclusion thus may lead to, but can cause more damage than, having a very low income.

Assertion: In recent years, there has been a decline in the dependence of population on agriculture partly
Reason: Agriculture faces disguised unemployment
Select the correct code:
  • a)
    Both A and R are true and R is the correct explanation of A.
  • b)
    Both A and R are true but R is not a correct explanation of A.
  • c)
    A is true but R is false.
  • d)
    A is false but R is true.
Correct answer is option 'A'. Can you explain this answer?

Abhishek Das answered
Assertion: In recent years, there has been a decline in the dependence of population on agriculture partly.

Reason: Agriculture faces disguised unemployment.

Explanation:
The given assertion states that there has been a decline in the dependence of the population on agriculture, while the reason provided is that agriculture faces disguised unemployment. Let's analyze the assertion and reason separately to determine their accuracy and relationship.

Understanding the Assertion:
In recent years, there has indeed been a decline in the dependence of the population on agriculture. This can be attributed to various factors such as industrialization, urbanization, and the growth of other sectors of the economy. As countries develop, their economies become more diverse, leading to a decrease in the relative importance of agriculture.

Understanding the Reason:
Disguised unemployment refers to a situation where more people are engaged in a particular activity than necessary, resulting in lower productivity per worker. In the context of agriculture, this means that there are more people employed in the sector than required, leading to underutilization of labor and lower agricultural productivity.

Relationship between the Assertion and Reason:
The reason provided in the given statement, i.e., agriculture faces disguised unemployment, is a correct explanation for the decline in the dependence of the population on agriculture. When there is disguised unemployment in agriculture, it means that there are surplus workers who are not contributing effectively to agricultural output. As a result, people are likely to seek employment in other sectors, leading to a decline in the dependence on agriculture.

Conclusion:
Based on the analysis, it can be concluded that both the assertion and the reason are true, and the reason is a correct explanation for the given assertion. Therefore, the correct option is 'A' - Both A and R are true, and R is the correct explanation of A.

Consider the following statements.
1. Since people living in rural areas engage themselves in more physical work, calorie requirements in rural areas are considered to be higher than in urban areas
2. The accepted average calorie requirement in India is 2400 calories per person per day in rural areas and 2100 calories per person per day in urban areas
Which of these statements are correct?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    Both of them
  • d)
    None of them
Correct answer is option 'C'. Can you explain this answer?

The correct answer is option 'C', which means both statements are correct.

1. Statement 1: Since people living in rural areas engage themselves in more physical work, calorie requirements in rural areas are considered to be higher than in urban areas.

This statement is correct. People living in rural areas generally engage in more physical work compared to those in urban areas. Rural occupations often involve manual labor such as farming, fishing, and livestock rearing, which require more physical exertion. As a result, individuals in rural areas have higher energy expenditure and require more calories to meet their daily energy needs.

2. Statement 2: The accepted average calorie requirement in India is 2400 calories per person per day in rural areas and 2100 calories per person per day in urban areas.

This statement is also correct. The accepted average calorie requirement in India varies based on factors such as age, sex, occupation, and physical activity level. However, as a general guideline, the average calorie requirement is considered to be higher in rural areas compared to urban areas. The average daily calorie requirement for an adult in rural areas is around 2400 calories, while it is around 2100 calories in urban areas.

The higher calorie requirement in rural areas can be attributed to the physical nature of rural occupations and the increased energy expenditure associated with them. On the other hand, urban areas often have sedentary jobs and a more comfortable lifestyle, leading to a slightly lower calorie requirement.

In conclusion, both statements are correct. People living in rural areas indeed have higher calorie requirements due to their engagement in more physical work, and the accepted average calorie requirement in India is higher in rural areas (2400 calories) compared to urban areas (2100 calories).

Consider the following statements regarding the open market operations of the RBI.
1. When RBI buys a Government bond in the open market, it pays for it by giving a cheque.
2. Selling of a bond by RBI leads to increase in quantity of reserves and hence the money supply
3. RBI cannot sell bonds to the private institutions
Which of these statements are correct?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    3 Only
  • d)
    1 and 2 Only
Correct answer is option 'A'. Can you explain this answer?

Kavita Mehta answered
  • Open Market Operations refers to buying and selling of bonds issued by the Government in the open market. This purchase and sale is entrusted to the Central bank on behalf of the Government.
  • When RBI buys a Government bond in the open market, it pays for it by giving a cheque. This cheque increases the total amount of reserves in the economy and thus increases the money supply. Selling of a bond by RBI (to private individuals or institutions) leads to reduction in quantity of reserves and hence the money supply.

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