Ramesh Singh Test : Growth, Development And Happiness-2 - UPSC MCQ

1. Community-Led Total Sanitation (CLTS) program - Decrease in open defecation by 15% Incorrect. The CLTS program combined with subsidies and information resulted in an 11% decrease, not 15%.

2. Monthly meetings for microfinance clients - Threefold reduction in loan defaults Incorrect. Changing the frequency of meetings from monthly to weekly resulted in a threefold reduction in loan defaults.

3. Concealing caste identity in puzzle-solving - Boys from backward classes outperforming boys from upper castes Incorrect. When caste identity was concealed, boys from backward classes performed equally well as boys from upper castes, not outperforming them.

4. Addressing stereotypes - Improvement in well-being of marginalized individuals Correct. The report recommends addressing stereotypes to break the cycle of exclusion and improve the well-being of marginalized individuals.

Thus, only one pair is correctly matched.

- Statement 1: This statement is correct. The concept of nudges has indeed been successfully applied in India through public policy initiatives like the Swachh Bharat Mission (SBM) and Beti Bachao Beti Padhao (BBBP) campaigns. These initiatives effectively utilized behavioral economics to encourage desirable behaviors among the population.

- Statement 2: This statement is also correct. There has been a proposal to transition from the Beti Bachao Beti Padhao (BBBP) campaign to a broader initiative called BADLAV (Beti Aapki Dhan Lakshmi Aur Vijay Lakshmi), which reflects an evolution of the initial campaign's goals.

- Statement 3: This statement is correct as well. The effectiveness of nudges in public policy can be significantly enhanced by leveraging the influence of social and religious norms. Using friends and neighbors as role models can help modify behavior more effectively.

All three statements are accurate, making the correct answer Option D.

1. The first statement is incorrect. Research in psychology and evolutionary biology indicates that morality, altruism, and other-regarding values are inherent in the human mind and are influenced by the social environment, not solely by genetic makeup.
2. The second statement is correct. Evidence shows that social norms and habits initially perceived as ingrained in a society can change over short periods, allowing countries to foster social norms conducive to a vibrant economy.
3. The third statement is incorrect. Traditional economic discussions often overlooked the non-economic facets, assuming they did not matter. It is only in recent times that the importance of social norms, preferences, and customs in driving economic growth has been acknowledged by economists.

Thus, the correct answer is Option C: 2 Only.

The Broken Windows Theory in sociology posits that controlling low-level, anti-social behavior serves the purpose of deterring larger criminal behavior. This theory suggests that visible signs of disorder and neglect, such as broken windows, graffiti, or litter, can create an environment that encourages further crime and disorder. By addressing these minor issues promptly, communities can prevent the escalation of criminal activities and maintain a sense of order and safety.

Statement-I highlights the resistance within economics and sociology towards emphasizing psychological, cultural, and normative aspects in development, potentially due to concerns about conceding space to other disciplines. This resistance is a known phenomenon in the social sciences.
Statement-II correctly mentions that the World Development Report (WDR) of 2015 concentrates on the behavioral and social foundations of development and has been positively received. However, Statement-II does not provide an explicit explanation for the resistance described in Statement-I. The two statements are both correct but are not directly related or explanatory of each other, making option (b) the most suitable choice.

1. Behavioral Economics: Correctly matched. Behavioral economics shows that cleaner environments lead to increased honesty and reduced corruption. This aligns with the insights provided by behavioral economics on the formation of customs and behavior.

2. Broken Windows Theory: Incorrectly matched. The Broken Windows Theory in sociology actually suggests that controlling low-level, anti-social behavior deters larger criminal behavior, not the other way around.

3. Pro-Social Behavior: Correctly matched. There is a growing body of literature in economics arguing that pro-social behavior, including altruism and trustworthiness, is innate and essential for efficient economies.

4. Free-Rider Problem: Correctly matched. Awareness that collective qualities like honesty and trustworthiness benefit the entire society does prompt individuals to adopt these qualities, addressing the free-rider problem.

Thus, pairs 1, 3, and 4 are correctly matched, while pair 2 is incorrectly matched. Hence, the correct answer is Option B: Only two pairs.

Statement-I highlights the findings from research in psychology and evolutionary biology regarding the innate nature of morality, altruism, and other values in humans, shaped by the social environment. Statement-II complements this by suggesting that even a small number of morally upright individuals within a society can initiate positive dynamics leading to an overall societal enhancement. Therefore, both statements are correct, with Statement-II logically explaining the implications of Statement-I in fostering a better societal condition.

Statement-I correctly highlights the key policy actions for effective nudges in public policy, including leveraging social norms, changing defaults, and implementing reminders. Statement-II accurately reflects the global reevaluation of economic models due to the COVID-19 pandemic, advocating for alternative approaches to development. The COVID-19 crisis has indeed sparked discussions on redefining economic strategies, making Statement-II pertinent to the current global scenario. Therefore, both statements are correct, and Statement-II logically explains the application of nudges in public policy in light of the pandemic-induced economic reassessment.

Changing the frequency of meetings between microfinance clients and their repayment groups from monthly to weekly resulted in a threefold reduction in the likelihood of loan defaults. This adjustment showcases the significant impact that behavioral interventions can have on economic outcomes, emphasizing the importance of regular interactions in improving repayment behavior among clients.

Leveraging reminders and repeated reinforcements is a crucial strategy to ensure sustained behavioral changes through nudges in public policy. By providing reminders and continuous positive reinforcements, individuals are more likely to adhere to the desired behaviors over time. This approach aligns with the idea that consistent nudges can lead to lasting changes in behavior, making it an effective policy tool in promoting desired outcomes.