Ramesh Singh Test: Growth, Development & Happiness-1 - UPSC MCQ

1. India is ranked lower than all its neighbouring countries in the World Happiness Report 2020: This statement is correct. India ranks lower than its neighbours Pakistan, Nepal, Bangladesh, and Sri Lanka.

2. The report ranks nations on the basis of reported happiness by their citizens across six variables, including GDP per capita and social support: This statement is correct. The World Happiness Report measures happiness based on six variables: GDP per capita, social support, healthy life expectancy at birth, freedom to make life choices, generosity, and perception of corruption.

3. India is ranked with the least happy nations in the world alongside Afghanistan, South Sudan, and Rwanda: This statement is correct. India is indeed ranked among the least happy nations, including Afghanistan, South Sudan, Zimbabwe, and others.

All three statements are accurate as per the provided content. Therefore, the correct answer is Option D.

The Human Development Index (HDI) is a composite index that measures a country's average achievements in three basic aspects of human development: health (life expectancy at birth), education (mean years of schooling and expected years of schooling), and standard of living (gross national income per capita). By combining these factors, the HDI provides a comprehensive overview of a country's overall development status.

1. The first statement is correct. Historically, economists used the terms progress, growth, and development interchangeably until the 1960s, 1970s, and 1980s when distinct meanings for these terms emerged.

2. The second statement is also correct. Economic growth is indeed quantifiable in absolute terms, as it refers to an increase in economic variables over a period of time.

3. The third statement is incorrect. Economic development is not solely focused on the increase in economic variables; it encompasses improvements in the standard of living, including factors such as healthcare, education, and quality of life.

Hence, the correct answer is Option B.

Analysis of Statements:

1. Statement-I:
   "In the 2024 World Happiness Report, India ranks lower than several of its neighboring countries."

   • Evaluation: This statement is correct. In the 2024 report, India does rank lower than neighboring countries like Bhutan, Nepal, Bangladesh, and Sri Lanka.

2. Statement-II:
   "India’s ranking has remained relatively stagnant over the years, indicating limited progress in improving the overall happiness and well-being of its population."

   • Evaluation: This statement is also correct. While India’s rank has not seen significant changes, it reflects ongoing challenges in improving the overall happiness and well-being of its citizens.

Relationship Between the Statements:

• Explanation: Statement-II provides context for Statement-I by explaining that the stagnation in India's ranking indicates a lack of progress in enhancing happiness levels. The two statements are related in that they both highlight issues concerning India's happiness ranking.

Conclusion:

• Since both statements are correct and Statement-II explains the situation described in Statement-I, the correct answer is:

a) Both Statement-I and Statement-II are correct, and Statement-II explains Statement-I.

1. Community-Led Total Sanitation (CLTS) programme - Decreased open defecation by 11% in some villages: This pair is correctly matched. The CLTS programme combined with subsidies for toilet construction and information on disease transmission resulted in an 11% drop in open defecation in some villages.

2. Weekly meetings between microfinance clients and repayment groups - Increased loan defaults threefold: This pair is incorrectly matched. The correct information is that the likelihood of default on loans became three times less, not more, with a simple change in the periodicity of meetings from monthly to weekly.

3. Revealing caste identity before puzzle-solving sessions - Caused a 23% underperformance in backward class boys: This pair is correctly matched. Research showed that boys from backward classes underperformed by 23% when caste identity was revealed before puzzle-solving sessions.

4. Economic development - Dependent solely on fiscal policy, monetary policy, and taxation: This pair is incorrectly matched. Economic development is also rooted in human psychology, sociology, culture, and norms, not solely on fiscal policy, monetary policy, and taxation.

Hence, only pairs 1 and 3 are correctly matched.

Answer: Option B: Only two pairs

Research in psychology and evolutionary biology suggests that human and moral qualities, such as morality, altruism, and other-regarding values, can play a crucial role in economic development. While the social setting can influence these traits, the innate nature of these qualities can have a substantial impact on fostering a vibrant economy. Studies indicate that having a few "good" individuals in a society can lead to positive dynamics that contribute to overall societal betterment. This highlights the significance of understanding the psychological and moral aspects alongside traditional economic factors in fostering economic growth.

- Statement 1: Correct. The Human Development Index (HDI) combines indicators of health, education, and standard of living into a single composite index, which is a widely recognized measure of development.

- Statement 2: Incorrect. Countries with an HDI score between 0.500 and 0.799 are classified as Medium Human Development Countries, not High Human Development Countries. High Human Development Countries have an HDI score between 0.800 and 1.000.

- Statement 3: Correct. Bhutan's Gross National Happiness (GNH) includes parameters such as higher real per capita income, good governance, environmental protection, and cultural promotion.

Given the accuracy of statements 1 and 3 and the inaccuracy of statement 2, the correct answer is Option C: 1 and 3 Only.

1. GDP per capita (at PPP) - Correctly matched. It refers to the economic output per person adjusted for purchasing power parity, which is a measure used to compare the economic performance of different countries.

2. Social support - Incorrectly matched. Social support in the context of the World Happiness Report refers to having someone to count on in times of trouble, not just government welfare programs.

3. Healthy life expectancy at birth - Correctly matched. This measures the average number of years a newborn is expected to live in good health, considering current health conditions and mortality rates.

4. Freedom to make life choices - Incorrectly matched. In the context of the World Happiness Report, this refers to the individual's perception of freedom to make choices about their life, not specifically the ability to participate in political elections.

Thus, only two pairs (1 and 3) are correctly matched.

Statement-I correctly highlights the evolution of the terms progress, growth, and development in economic literature over time, emphasizing the distinct meanings that emerged in the specified decades. Statement-II accurately distinguishes between economic growth and economic development, explaining that growth pertains to measurable increases in economic variables, while development pertains to enhancing the standard of living from low to high income levels. Therefore, both statements are correct, with Statement-II logically explaining the progression of economic concepts outlined in Statement-I.

1. Economic Growth: Increase in economic variables over a period of time.

- This is correctly matched. Economic growth is indeed defined as an increase in economic variables such as GDP, income, etc., over a period of time.

2. Economic Development: Improvement in the standard of living from low-income to high-income.

- This is correctly matched. Economic development refers to the growth of the standard of living in a nation, transitioning from a low-income (poor) economy to a high-income (rich) economy, involving qualitative improvement in well-being.

3. Progress: Specific economic connotations focused on quantifiable metrics.

- This is incorrectly matched. Progress is a broad term that lacks specific economic connotations and is not solely focused on quantifiable metrics. It signifies overall improvement, which can be qualitative as well as quantitative.

4. World Happiness Report: Resource provided by the World Bank.

- This is incorrectly matched. The World Happiness Report is actually published by the United Nations Sustainable Development Solutions Network (SDSN), not the World Bank.

Hence, only pairs 1 and 2 are correctly matched.