UPSC CSE Prelims Paper 2 Practice Test - 8 - UPSC MCQ

Passage 1

Any government that runs on a huge fiscal deficit has to, at some point, finance that deficit by creating money through borrowings. When the government does that, there is more money chasing the same number of goods and services in the economy. The result is a hike in prices, or inflation. At 5.1%, India's fiscal deficit is dangerously high, controlling which should have been the government's highest priority. Raising diesel prices by 14% such that the subsidy bill on the fuel falls will help bring this deficit under control. To put that issue in perspective, at Rs.47,800 crore oil subsidies for the first quarter of the current financial year have already exceeded the full year's budgeted figure.

For consumers already reeling under a double digit onslaught of food prices, the hike in the diesel prices will hurt, no doubt. Part of this increase can be neutralized, by cutting excise duties on the fuel, for instance. But for successive governments that have been unable to curb spending on vote buying schemes- some of them crucial - or on an inflated and unproductive bureaucracy, the other option is to increase taxes and return to the sky high rates of the coercive 1970s, a regime that is best behind us.

This brings us to the next issue: economic growth. With a high fiscal deficit that keeps inflation high, there is no way the RBI will cut interest rates. Even though most ofthe inflationary expectations are coming from goods outside India's control- crude oil imports, a falling rupee and a globally rising food and commodity prices- RBI's stance has been to keep policy rates high so that thousands cut down on discretionary grounds. In the process, home loan EMIs have been rising and along with inflation on one side, scissoring household targets.

Making matters more complex is the fact that today the sovereign has very little control over its finances. Like it or nor, India cant and will not grow at 9% if the rest of the world is contracting, thereby closing business opportunities- there, the UPA government is right. "The political power of the sovereign goes down with every move towards globalization," Kaushik Basu said. "Economics has become an instrument of global, political and even military strategy." To illustrate, Indian farmers and businesses get affected by WTO negotiations, Indian workers by ILO negotiations, Indian fiscal policy by G20 communities, Indian markets by QE3.

Q.Which of the following would help explain the relationship between the interest rates and a high fiscal deficit?

                        Passage 2

There is a controversy raging over the entry of giants such as Tesco and the Wall Mart into India after the government permitted FDI in multi-brand retail. Most economic analysts look at it in terms of capital coming into India to oust local shopkeepers or in terms of capital coming in to offer better prices to farmers or set up distribution chains and storage facilities to help consumers. These arguments seem a little old. There is a technological dimension to this that may reveal that it is India that it is India that is behind the competitive edge of big retail chains.

In 2009, Walmart picked Bangalore based Infosys Technologies and India centric Cognizant among three information technology service vendors for a $600 million multi-year contract. Finance is now easily available for retail companies from banks and equity markets. What sets the real smart retail giants apart is their ability to leverage software and IT to keep their competitive edge.

Supply chain software can help lower costs by managing inventories. Data analytics and customer relations software can help them identify the more lucrative customers or choose discount strategies. Partners, employees and vendors of retail giants are now connected by software Indian talent figures in all this.

Infosys was an early adapter ofWalmart's move to go in for radio-frequency identification (RFID) tags that helps the retail chain track inventories at low cost.

Last year, Walmart also acquired Kosmix, a cutting edge search engine, founded by Indian born Venky Harinarayan and Anand Rajaraman (who earlier co-founded Junglee.com that Amazon acquired). Now Kosmix is a part of Walmart Labs. Its technology filters and aggregates information by topic from Twitter messages and the larger Web in real time. This is a new way to interact with shoppers.

Tesco now owes its edge to its Bangalore IT facility called the "Hindustan Service Centre". The British retail chain says 6000 employee strong HSC's strategic initiatives coverthe "IT, business, financial, commercial and property aspects." In Bangalore, Indian techies develop tools like mobile applications for Tesco.

Q.It can be assumed that the author's views on FDI in multi brand retail are

  Passage 2

There is a controversy raging over the entry of giants such as Tesco and the Wall Mart into India after the government permitted FDI in multi-brand retail. Most economic analysts look at it in terms of capital coming into India to oust local shopkeepers or in terms of capital coming in to offer better prices to farmers or set up distribution chains and storage facilities to help consumers. These arguments seem a little old. There is a technological dimension to this that may reveal that it is India that it is India that is behind the competitive edge of big retail chains.

In 2009, Walmart picked Bangalore based Infosys Technologies and India centric Cognizant among three information technology service vendors for a $600 million multi-year contract. Finance is now easily available for retail companies from banks and equity markets. What sets the real smart retail giants apart is their ability to leverage software and IT to keep their competitive edge.

Supply chain software can help lower costs by managing inventories. Data analytics and customer relations software can help them identify the more lucrative customers or choose discount strategies. Partners, employees and vendors of retail giants are now connected by software Indian talent figures in all this.

Infosys was an early adapter ofWalmart's move to go in for radio-frequency identification (RFID) tags that helps the retail chain track inventories at low cost.

Last year, Walmart also acquired Kosmix, a cutting edge search engine, founded by Indian born Venky Harinarayan and Anand Rajaraman (who earlier co-founded Junglee.com that Amazon acquired). Now Kosmix is a part of Walmart Labs. Its technology filters and aggregates information by topic from Twitter messages and the larger Web in real time. This is a new way to interact with shoppers.

Tesco now owes its edge to its Bangalore IT facility called the "Hindustan Service Centre". The British retail chain says 6000 employee strong HSC's strategic initiatives coverthe "IT, business, financial, commercial and property aspects." In Bangalore, Indian techies develop tools like mobile applications for Tesco.

Q.Which of the following are the essential elements in the success of retail giants?

1.The use of technology to maintain an advantage over others.

2.Sales and marketing strategies based on an analysis of customer data.

Passage 2

There is a controversy raging over the entry of giants such as Tesco and the Wall Mart into India after the government permitted FDI in multi-brand retail. Most economic analysts look at it in terms of capital coming into India to oust local shopkeepers or in terms of capital coming in to offer better prices to farmers or set up distribution chains and storage facilities to help consumers. These arguments seem a little old. There is a technological dimension to this that may reveal that it is India that it is India that is behind the competitive edge of big retail chains.

In 2009, Walmart picked Bangalore based Infosys Technologies and India centric Cognizant among three information technology service vendors for a $600 million multi-year contract. Finance is now easily available for retail companies from banks and equity markets. What sets the real smart retail giants apart is their ability to leverage software and IT to keep their competitive edge.

Supply chain software can help lower costs by managing inventories. Data analytics and customer relations software can help them identify the more lucrative customers or choose discount strategies. Partners, employees and vendors of retail giants are now connected by software Indian talent figures in all this.

Infosys was an early adapter ofWalmart's move to go in for radio-frequency identification (RFID) tags that helps the retail chain track inventories at low cost.

Last year, Walmart also acquired Kosmix, a cutting edge search engine, founded by Indian born Venky Harinarayan and Anand Rajaraman (who earlier co-founded Junglee.com that Amazon acquired). Now Kosmix is a part of Walmart Labs. Its technology filters and aggregates information by topic from Twitter messages and the larger Web in real time. This is a new way to interact with shoppers.

Tesco now owes its edge to its Bangalore IT facility called the "Hindustan Service Centre". The British retail chain says 6000 employee strong HSC's strategic initiatives coverthe "IT, business, financial, commercial and property aspects." In Bangalore, Indian techies develop tools like mobile applications for Tesco.

Q.Which of the following options best explains the purpose of the last four paragraphs?

                        Passage 3

The relation between gender and poverty is a complex and controversial topic that is now being debated more than ever before. Although much policymaking has been informed by the idea of feminization of poverty, the precise nature of the nexus between gender and poverty needs to be better understood and operationalized in policymaking. The difficulty originates from the different shapes and forms gender inequalities and poverty take depending on the economic, social and ideological context. Yet another difficulty involves the scarcity of gender disaggregated data for a number of countries. For the last three decades, many women's advocates have been arguing that women are poorer than men. The most common empirical expression of this idea is the concept of feminization of poverty. This idea has become popular both in shaping analyses of poverty and poverty alleviation strategies. Thus, targeting women has become one vehicle for gender sensitive poverty alleviation. Poor women have become the explicit focus of policymaking, for example, in the area of microcredit programs and income generation activities.

However, the universal validity of the feminization of poverty is being empirically challenged. Although the idea that there are gender differences in experiences of poverty is not abandoned, a more nuanced and complex analysis of poverty and gender inequalities is emerging. This, in turn, is giving rise to a more gender aware approach to poverty elimination strategies.

Q.Which of the following statements agree with the author's opinions on the feminization of poverty?

1.It has drawn attention away from aspects of poverty in its generalization.

2.It has produced results in the areas of microcredit programs and income generation activities.

    Passage 3

The relation between gender and poverty is a complex and controversial topic that is now being debated more than ever before. Although much policymaking has been informed by the idea of feminization of poverty, the precise nature of the nexus between gender and poverty needs to be better understood and operationalized in policymaking. The difficulty originates from the different shapes and forms gender inequalities and poverty take depending on the economic, social and ideological context. Yet another difficulty involves the scarcity of gender disaggregated data for a number of countries. For the last three decades, many women's advocates have been arguing that women are poorer than men. The most common empirical expression of this idea is the concept of feminization of poverty. This idea has become popular both in shaping analyses of poverty and poverty alleviation strategies. Thus, targeting women has become one vehicle for gender sensitive poverty alleviation. Poor women have become the explicit focus of policymaking, for example, in the area of microcredit programs and income generation activities.

However, the universal validity of the feminization of poverty is being empirically challenged. Although the idea that there are gender differences in experiences of poverty is not abandoned, a more nuanced and complex analysis of poverty and gender inequalities is emerging. This, in turn, is giving rise to a more gender aware approach to poverty elimination strategies.

Q.Which of the following has/have not been mentioned in the passage?

1.Experiences of poverty

2.Failed poverty alleviation strategies.

    Passage 3

The relation between gender and poverty is a complex and controversial topic that is now being debated more than ever before. Although much policymaking has been informed by the idea of feminization of poverty, the precise nature of the nexus between gender and poverty needs to be better understood and operationalized in policymaking. The difficulty originates from the different shapes and forms gender inequalities and poverty take depending on the economic, social and ideological context. Yet another difficulty involves the scarcity of gender disaggregated data for a number of countries. For the last three decades, many women's advocates have been arguing that women are poorer than men. The most common empirical expression of this idea is the concept of feminization of poverty. This idea has become popular both in shaping analyses of poverty and poverty alleviation strategies. Thus, targeting women has become one vehicle for gender sensitive poverty alleviation. Poor women have become the explicit focus of policymaking, for example, in the area of microcredit programs and income generation activities.

However, the universal validity of the feminization of poverty is being empirically challenged. Although the idea that there are gender differences in experiences of poverty is not abandoned, a more nuanced and complex analysis of poverty and gender inequalities is emerging. This, in turn, is giving rise to a more gender aware approach to poverty elimination strategies.

Q.Consider the following statements:

1.The feminization of poverty happened due to a lack of empirical data.

2.Understanding gender issues in poverty is important.

With reference to the above passage, which ofthe following assumptions is/are valid?

  Passage 3

The relation between gender and poverty is a complex and controversial topic that is now being debated more than ever before. Although much policymaking has been informed by the idea of feminization of poverty, the precise nature of the nexus between gender and poverty needs to be better understood and operationalized in policymaking. The difficulty originates from the different shapes and forms gender inequalities and poverty take depending on the economic, social and ideological context. Yet another difficulty involves the scarcity of gender disaggregated data for a number of countries. For the last three decades, many women's advocates have been arguing that women are poorer than men. The most common empirical expression of this idea is the concept of feminization of poverty. This idea has become popular both in shaping analyses of poverty and poverty alleviation strategies. Thus, targeting women has become one vehicle for gender sensitive poverty alleviation. Poor women have become the explicit focus of policymaking, for example, in the area of microcredit programs and income generation activities.

However, the universal validity of the feminization of poverty is being empirically challenged. Although the idea that there are gender differences in experiences of poverty is not abandoned, a more nuanced and complex analysis of poverty and gender inequalities is emerging. This, in turn, is giving rise to a more gender aware approach to poverty elimination strategies.

Q.Consider the following statements-

1.Policymaking, till date, has ignored the link between poverty and gender.

2.Gender disaggregated data is important for formulating policies that factor in the link between poverty and gender.

With reference to the above passage, which ofthe following statements is/are valid?

Directions forthe following 5 (five) items:

Each of the items below consists of a question and two statements. You have to decide whether the data provided in the statements are sufficient to answer the question. Give answer as:

Statements:

1. Rahul at present is 25 years younger to his mother.

2. Rahul's brother, who was born in 1964, is 35 years younger to his mother.

Q. In which year was Rahul born?

Statements:

1. One-fourth of the weight of each pole is 5 kg.

2. The total weight ofthree poles is 20 kilograms more than the total weight oftwo poles.

Q. What will be the total weight of 10 poles, each of the same weight ?

Statements:

1. H is the only daughter of X who is wife of M.

2. K and J are brothers of M.

Q.How many children does M have?

Statements:

1. The company sold 8000 units of product A each costing Rs. 25.

2. This company has no other product line.

Q.How much was the total sale of the company ?

Statements:

1. P is fifteenth from the left in the row.

2.Q is exactly in the middle and there are ten children towards his right.

Q.How many children are there between P and Qina row of children?

You are appointed the Vice Chairman in an authority that is responsible for fulfilling the needs in the area. The area has a substantial number of weaker sections and low income groups, which cannot afford to buy expensive houses. You have been asked by the State Housing minister to sell the land that is meant for building houses for the poor to private builders at throw away prices so that they can build plush apartments and sell them at an exorbitant premium. You will

You are newly appointed as secretary in the telecom commission. The commission is ready to sell the radio wave spectrum to private companies. After the scrutiny of the documents you have come to know that the price at which the spectrum is being sold is substantially lower than the current market valuation. You think that this may cause a huge loss. You will

You are the head of the foreign diplomacy department of your country. The country's economy is ailing and it needs fresh infusion of capital. You have been asked by the foreign minister to do something about this problem. You will

You have been appointed the head of a committee, which has been created to look into the demands of various groups to create smaller states based on ethnicities and language differences in existing states as they think that development in all areas is not even and some areas are extremely backward. These groups are highly vocal in nature for creation of new states but the government thinks that creating new states will hamper the unity of the country. You belong to one of these states. You will

The district where you are working as a collector has been affected by a severe drought. The majority of the population, which was clearly impoverished, has been hit hard by the non availability of the staple food grain. However, the government storages are full of grains and some of it is on the verge of decay. In this situation, you will

You are the chief engineer in the Highway authority and are responsible to construct roads and highways. The authority is building a new road and the project has hit a roadblock because there is a temple in the way where the road is to be built. It is a religiously sensitive area and the people in this area are protesting that they will not let the temple be broken as it would be a religious sacrilege to them. It is not technically possible for you to take the road around the temple as there is a high probability that this turn would result in frequent accidents. You will

You are a district collector in a small district where the local goons are rampant. A particular area is notorious for the instances of goons being involved in eve teasing and rape and has found place in many national media reports. The National Commission for Women (NCW) has pointed this out to you and asked you to do something about it. You will

You are a police constable on duty and notice two people on a bike riding without helmets. You ask them to pull over and are about to fine them when the driver tells you that they could not put on their helmets as the pillion rider is extremely sick and needs to be taken to the hospital urgently. You will

Your father has had a heart attack and needs to be taken to the hospital right away. You are the only one in your house as other family members are on a tour. While you are taking your father to the hospital you see that a small girl has fallen into a deep drain. You will

Directions forthe following 9 (nine) items:

The following nine items are based on three passages in English to test the comprehension of English language and therefore these items do not have Hindi version. Read each passage and answer the items that follow.

                         Passage - 1

The poor baron bore it all, as long as he could, and when he could bear it no longer, lost his appetite and his spirits, and sat himself gloomily and dejectedly down. But there were worse troubles yet in store for him, and as they came on, his melancholy and sadness increased. Times changed. He got into debt. The Germain coffers went empty, though the Heusen family had looked upon them as inexhaustible; and just when the baroness was on the point of making a thirteenth addition to the family pedigree, Von discovered that he had no means of replenishing them

Q.The baron-

 Passage - 1

The poor baron bore it all, as long as he could, and when he could bear it no longer, lost his appetite and his spirits, and sat himself gloomily and dejectedly down. But there were worse troubles yet in store for him, and as they came on, his melancholy and sadness increased. Times changed. He got into debt. The Germain coffers went empty, though the Heusen family had looked upon them as inexhaustible; and just when the baroness was on the point of making a thirteenth addition to the family pedigree, Von discovered that he had no means of replenishing them

Q.The Germain coffers-

 Passage - 1

The poor baron bore it all, as long as he could, and when he could bear it no longer, lost his appetite and his spirits, and sat himself gloomily and dejectedly down. But there were worse troubles yet in store for him, and as they came on, his melancholy and sadness increased. Times changed. He got into debt. The Germain coffers went empty, though the Heusen family had looked upon them as inexhaustible; and just when the baroness was on the point of making a thirteenth addition to the family pedigree, Von discovered that he had no means of replenishing them

Q.Von-

                           Passage - 2

Peter Morton woke with a start to face the first fight. Rain tapped against the glass. It was January the fifth.He looked across a table on which a night light had guttered into a pool of water, at the other bed. Francis was still asleep and Peter lay down again with his eyes on his brother. It amused him to imagine it was himself whom he watched, the same hair, the same eyes, the same lips and line of cheek. But the thought palled, and the mind went back to the fact which lent the day importance. It was the fifth ofjanuary. He could hardly believe a year had passed since Mrs. Henne Falcon had given her last children's party.

Q.Francis-

                              Passage - 2

Peter Morton woke with a start to face the first fight. Rain tapped against the glass. It was January the fifth. He looked across a table on which a night light had guttered into a pool of water, at the other bed. Francis was still asleep and Peter lay down again with his eyes on his brother. It amused him to imagine it was himself whom he watched, the same hair, the same eyes, the same lips and line of cheek. But the thought palled, and the mind went back to the fact which lent the day importance. It was the fifth ofjanuary. He could hardly believe a year had passed since Mrs. Henne Falcon had given her last children's party.

Q.Peter-