Kerala PSC KAS Prelims Paper 2 Mock Test - 2 - Kerala PSC KAS MCQ

• A capitalist economy can be defined as an economy in which most of the economic activities have the following characteristics:

• Statement 1 is correct. There is private ownership of means of production in a capitalist economy.

• Statement 2 is incorrect. The produce is not saved for personal needs of the owner in future. Production takes place for selling the output in the market.

• Statement 3 is correct. There is sale and purchase of labour services at a price, which is called the wage rate.

• In WTO terminology, subsidies in general are identified by “Boxes” which are given the colours of traffic lights: green (permitted), amber (slow down — i.e. be reduced), red (forbidden). In agriculture, things are, as usual, more complicated.

• The Agriculture Agreement has no Red Box, although domestic support exceeding the reduction commitment levels in the Amber Box is prohibited; and there is a Blue Box for subsidies that are tied to programmes that limit production.

• There are also exemptions for developing countries.

• Managed Floating Exchange Rate: Without any formal international agreement, the world has moved on to what can be best described as a managed floating exchange rate system. India is having this type of exchange rate system. This system is also known as 'dirty floating'. It is a mixture of a flexible exchange rate system (the floating part) and a fixed rate system (the managed part).
• In this hybrid exchange rate system, the exchange rate is basically determined in the foreign exchange market through the operation of market forces. Market forces mean the selling and buying activities by various individuals and institutions. So far, the managed floating exchange rate system is similar to the flexible exchange rate system. But during extreme fluctuations, the central bank under a managed floating exchange rate system (like the RBI) intervenes in the foreign exchange market. The objective of this intervention is to minimize the fluctuation in the exchange rate of the rupee. Since, the exchange rate is basically determined by market forces, the upward and downward movements in the value of the rupee are appreciation and depreciation. Hence statement 1 is correct and statement 2 is correct.

• Deflation is a general decline in prices for goods and services, typically associated with a contraction in the supply of money and credit in the economy. During deflation, the purchasing power of currency rises over time. Hence statement 1 is not correct.
  • Deflation causes the nominal costs of capital, labor, goods, and services to fall, though their relative prices may be unchanged.
  • By definition, monetary deflation can only be caused by a decrease in the supply of money or financial instruments redeemable in money. Reduced investment spending by the government or individuals may also lead to this situation.
  • Deflation leads to a problem of increased unemployment due to slack in demand.
• Disinflation is a temporary slowing of the pace of price inflation and is used to describe instances when the inflation rate has reduced marginally over the short term. Hence statement 2 is not correct.
  • Unlike inflation and deflation, which refer to the direction of prices, disinflation refers to the rate of change in the rate of inflation.
  • A healthy amount of disinflation is necessary since it prevents the economy from overheating.
• Deflation is represented as a negative growth rate, such as -1%, while disinflation is shown as a change in the inflation rate, say, from 3% one year to 2% the next. Disinflation is considered the opposite of reflation, which occurs when a government stimulates an economy by increasing the money supply. 

• Under the WTO Agreement on Agriculture (AoA), domestic agri-subsidies are classified into three categories; green, blue and amber. Under WTO principles, "amber box" subsidies create trade distortions because they encourage excessive production through farm subsidies to fertilizers, seeds, electricity, and irrigation.
• They are also called as Aggregate Measure of Support. As per the WTO norms, the AMS can be given up to 10 % of a country’s agricultural GDP (at 1986-88 prices) in the case of developing countries. On the other hand, the limit is 5% for a developed economy. This limit is called the de minimis level of support. It is thus minimal amounts of domestic support that are allowed even though they distort trade — up to 5% of the value of production for developed countries, 10% for developing countries.
• Hence option (b) is the correct answer. 

• One of the core functions of the Central bank is to issue the currency of the country. This currency issued by the central bank can be held by the public or by commercial banks and is called the ‘high- powered money’ or ‘reserve money’ or ‘monetary base’ as it acts as a basis for credit creation.
• High high-powered money is also defined as the total liability of the monetary authority of the country (RBI). It consists of currency (notes and coins in circulation with the public and vault cash of commercial banks) and deposits held by the Government of India and commercial banks with RBI. If a member of the public produces a currency note to RBI the latter must pay her value equal to the figure printed on the note. Similarly, the deposits are also refundable by RBI on demand from deposit-holders. These items are claims that the general public, government, or banks have on RBI and hence are considered to be the liability of RBI. Hence, option (b) is the correct answer.
• High-powered money is the base for the expansion of Bank deposits and the creation of a money supply. The supply of money varies directly with changes in the monetary base and inversely with the currency and reserve ratios.
• The amount of money that banks generate with deposits by the public is called a Money Multiplier. 

• Most-favoured-nation (MFN): Under the WTO agreements, countries cannot normally discriminate between their trading partners. Grant someone a special favour (such as a lower customs duty rate for one of their products) and you have to do the same for all other WTO members.
• A most-favored-nation (MFN) clause requires a country to provide any concessions, privileges, or immunities granted to one nation in a trade agreement to all other World Trade Organization member countries. Although its name implies favoritism toward another nation, it denotes the equal treatment of all countries. Hence option (b) is the correct answer
• Equal treatment of imported and locally produced goods after foreign goods enter the domestic market is a clause under WTO's another principle known as National Treatment: Treating foreigners and locals equally. 

Both the statements are not correct. About Bharat NCAP(New Car Assessment Program):

• It is a new car safety assessment programme which proposes a mechanism of awarding ‘Star Ratings’ to automobiles based upon their performance in crash tests. Features:
• The proposed Bharat NCAP evaluation will allocate Star Ratings ranging from 1 to 5.
• Vehicles for this program will be tested at facilities equipped with the necessary infrastructure, such as testing agencies.
• It will be applicable to locally produced and imported motor vehicles of category M1 with a gross vehicle weight less than 3.5 tonnes.
• In addition to the driver’s seat, M1 category motor vehicles are utilized for carriage of passengers, comprising 8 seats in addition to the driver’s seat 

The Central Banker Report Cards, published annually by Global Finance since 1994, grade the central bank governors of 101 key countries.

• It celebrates those bank governors whose strategies outperformed their peers through originality, creativity and tenacity.
• The Bank Governors who earned an ‘A+’ grade in the Global Finance Central Banker Report Cards 2023 are Shaktikanta Das from India, Thomas J. Jordan (Switzerland) and Nguyen Thi Hong (Vietnam) 

Difference between a fixed and floating interest rate:

• Fixed interest rates are those that do not change during the tenure of the loan. On the other hand, floating interest rates are subject to market dynamics and the base rate — therefore, the risk differentiation. Hence, Statement 1 is correct.
• Floating interest rates are generally lower than fixed interest rates. For example, if the floating interest rate for home loans is 10.5%, the fixed interest rate would be 12%. Hence, Statement 2 is not correct.
• It has been widely argued that preference for the floating rate-based regime is to better adjust their positions as per the evolving market dynamics.
• Also noteworthy is the fact that floating interest rate loans do not draw any prepayment penalty— unlike fixed rate loans.
• However, the fixed rate-based regime endows a borrower with greater certainty and security. This also helps in better planning and structuring of individual budgets.

Statement 1 is correct: Hallmarking is the accurate determination and official recording of the proportionate content of precious metal in precious metal articles.

• Hallmarks are thus official marks used in many countries as a guarantee of purity or fineness of precious metal articles.
• This certificate is issued to all registered jewellers based on purity tests at certificated centres.
• The principle objectives of the Hallmarking Scheme are to protect the public against adulteration and to obligate manufacturers to maintain legal standards of fineness.

Statement 2 is not correct: In India, at present two precious metals namely gold and silver have been brought under the purview of Hallmarking.

Statement 3 is correct: Implementation: Bureau of Indian Standards (BIS) has been successful in implementation of Mandatory Hallmarking in districts of the country. It is the National Standard Body of India established under the BIS Act 2016

Gresham’s law came into play most recently during the economic crisis in Sri Lanka, during which the Sri Lankan central bank fixed the exchange rate between the Sri Lankan rupee and the U.S. dollar.

Gresham’s law.

• Gresham’s law is named after English financier Thomas Gresham who advised the English monarchy on financial matters.
• Gresham’s law refers to the dictum that “bad money drives out good.” It comes into play when the exchange rate between two moneys or currencies is fixed by the government at a certain ratio that is different from the market exchange rate.
• It applies not just to paper currencies but also to commodity currencies and other goods. 

By contrast a currency appreciates when it becomes more expensive in terms of foreign currency. Thus statement 1 is correct.

Therefore, statement 1 is correct. If one plans to travel to Britain and wants to know how expensive British goods are relative to goods at home, the measure that captures this is the ‘real exchange rate’-the ratio of foreign to domestic prices measured in the same currency. Thus statement 2 is also correct. If the ‘real exchange rate’ is equal to one the currencies are at ‘purchasing power parity’. This means that goods cost the same in two countries when measured in the same currency.

The ratio represents that the government is able to finance its expenditure. A higher tax to GDP ratio means that the government is able to cast its fiscal net wide. It reduces a government's dependence on borrowings. Statement 2 is not correct: Developed nations typically have higher tax-to-GDP ratios than developing nations.

Thus, flows are defined over a period of time. Therefore statement 1 is incorrect. In contrast, capital goods or consumer durables once produced do not wear out or get consumed in a delineated time period. These are called Stocks. Stocks are thus defined at a particular point of time. However, changes in stock over a period of time are called flows. Thus statement 2 is incorrect.

A Giffen good is a product for which demand increases as the price increases and falls when the price decreases. A Giffen good has an upward-sloping demand curve, which is contrary to the fundamental law of demand, which states that the quantity demanded for a product falls as the price increases, resulting in a downward slope for the demand curve. Generally speaking, Giffen goods are typically inferior products that do not have readily available substitutes.

• Statement 1 is incorrect. By economic units or economic agents are those individuals or institutions, which take economic decisions. They can be consumers who decide what and how much to consume.

• Statement 2 is also incorrect. They may be producers of goods and services who decide what and how much to produce.

• Statement 3 is correct. Economic agents/units may be entities like the government, corporations, banks which also make different economic decisions like how much to spend, what interest rate to charge on the credits, how much to tax, etc.

Lassa fever:

• Lassa fever is one of the hemorrhagic fever viruses like Ebola virus, Marburg virus, and others. Hence, statement 1 is correct.
• It is caused by the Lassa virus, a member of the arenavirus family of viruses.
• Unlike the Ebola virus, Lassa fever is not as contagious from person to person, nor as deadly. Hence, statement 2 is not correct.
• Lassa virus is typically transmitted by the urine or feces of Mastomys rats to humans. Hence, statement 3 is correct.
• Health workers may be infected by direct contact with blood, body fluids, urine, or stool of a patient with Lassa fever.
• Lassa fever occurs primarily in West Africa in areas where these rodents live.

Blueprint Priority Diseases of WHO: Worldwide, the number of potential pathogens is very large, while the resources for disease research and development (R&D) is limited. To ensure efforts under WHO‘s R&D Blueprint are focused and productive, a list of diseases and pathogens are prioritized for R&D in public health emergency contexts. A WHO tool distinguishes which diseases pose the greatest public health risk due to their epidemic potential and/or whether there is no or insufficient counter-measures. At present, the priority diseases are

• COVID-19
• Crimean-Congo hemorrhagic fever
• Ebola virus disease and Marburg virus disease
• Lassa fever
• Middle East respiratory syndrome coronavirus (MERS-CoV) and Severe Acute Respiratory Syndrome (SARS)
• Nipah and henipaviral diseases
• Rift Valley fever
• Zika―
• Disease X‖: Disease X represents the knowledge that a serious international epidemic could be caused by a pathogen currently unknown to cause human disease. The R&D Blueprint explicitly seeks to enable early cross-cutting R&D preparedness that is also relevant for an unknown ―Disease X‖.

The p-Block Elements comprise those belonging to Group 13 to 18 and these together with the s-Block Elements are called the Representative Elements or Main Group Elements.
At the end of each period in a periodic table is a noble gas element with a closed valence shell. All the orbitals in the valence shell of the noble gases are completely filled by electrons and it is very difficult to alter this stable arrangement by the addition or removal of electrons. The noble gases thus exhibit very low chemical reactivity.
Noble gases have uses that are derived from their other chemical properties. The very low boiling points and melting points of the noble gases make them useful in the study of matter at extremely low temperatures. Therefore often used for specific industrial processes.

• The low solubility of helium in fluids leads to its admixture with oxygen for breathing by deep-sea divers: because helium does not dissolve in the blood, it does not form bubbles upon decompression (as nitrogen does, leading to the condition known as decompression sickness, or the bends).
• Xenon has been used as an anesthetic; although it is costly, it is non-flammable and readily eliminated from the body.
• Radon is highly radioactive; its only uses have been those that exploit this property (e.g., radiation therapy). (Oganesson is also radioactive, but, since only a few atoms of this element have thus far been observed, its physical and chemical properties cannot be documented.).
• Krypton is used in fluorescent bulbs, flashbulbs, and lasers. Lamps filled with krypton are used at some airports as approach lights since their light can penetrate dense fog unusually well.
• Neon is also used as fog lights. Hence option (d) is the correct answer.

Chloroplasts: They are green-colored plastids, which comprise green-colored pigments within the plant
cell and are called chlorophyll. Hence, statement 1 is correct.
Chloroplast is an organelle that contains the photosynthetic pigment chlorophyll that captures sunlight and
converts it into useful energy, thereby, releasing oxygen from water.
Chloroplasts are found in all green plants and algae. They are the food producers of plants. These are found in the guard cells located in the leaves of the plants. They contain a high concentration of chlorophyll that traps sunlight. This cell organelle is not present in animal cells. Hence, statement 2 is correct.
Chloroplast has its own DNA and can reproduce independently, from the rest of the cell. They also produce amino acids and lipids required for the production of chloroplast membrane.
Functions of Chloroplast: Following are the important chloroplast function:

• The most important function of the chloroplast is to synthesize food by the process of photosynthesis.
• Absorbs light energy and converts it into chemical energy.
• Chloroplast has a structure called chlorophyll which functions by trapping the solar energy and used for the synthesis of food in all green plants.
• Produces NADPH and molecular oxygen (O2) by photolysis of water.
• Produces ATP – Adenosine triphosphate by the process of photosynthesis.
• The carbon dioxide (CO2) obtained from the air is used to generate carbon and sugar during the Calvin Cycle or dark reaction of photosynthesis.
• Where does the photosynthesis process occur in the plant cell?
• In all green plants, photosynthesis takes place within the thylakoid membrane of the Chloroplast.
   

Statement 1 is correct: A fuel cell uses the chemical energy of hydrogen or other fuels to cleanly  and efficiently produce electricity. 
Statement 2 is not correct: They can provide power for systems as large as a utility power station  and as small as a laptop computer.

Convention on International Liability for Damage Caused by Space Objects

1. This convention is one of the several international agreements that complement the Outer Space Treaty, the overarching framework guiding the behaviour of countries in space.
2. The Liability Convention came into force in 1972 and deals mainly with damage caused by space objects to other space assets, but it also applies to damage caused by falling objects on earth. Hence, Statement 1 is not correct.
3. The Convention makes the launching country “absolutely liable” to pay compensation for any  damage caused by its space object on the earth or to a flight in air. Hence, Statement 2 is  correct.

 The country where the junk falls can stake a claim for compensation if it has been damaged by the falling object.
 The amount of compensation is to be decided “in accordance with international law and  the principles of justice and equity”.

• This provision of the Convention has resulted in compensation payment only once so far — when Canada sought damages from the then Soviet Union, for a satellite with radioactive substance that fell into an uninhabited region in its northern territory in 1978. The Soviet Union is reported to have paid 3 million Canadian dollars. Hence, Statement 3 is not correct.

Named after two scientists, Lee and Kim, and the year of its discovery — 1999 — LK-99 is a 
compound which is a room-temperature superconductor working at ambient pressure.

Intermolecular forces tend to keep the molecules together but the thermal energy of the molecules tends to keep them apart. Three states of matter are the result of a balance between intermolecular forces and the thermal energy of the molecules. Hence the correct option is (c)
When molecular interactions are very weak, molecules do not cling together to make liquid or solid unless thermal energy is reduced by lowering the temperature.
Gases do not liquify on compression-only, although molecules come very close to each other and intermolecular forces operate to the maximum. However, when the thermal energy of molecules is reduced by lowering the temperature; the gases can be very easily liquified.

A nuclear reactor coolant is a coolant in a nuclear reactor used to remove heat from the nuclear reactor core and transfer it to electrical generators and the environment. Frequently, a chain of two coolant loops is used because the primary coolant loop takes on short-term radioactivity from the reactor. Hence statement 1 is correct.

Molten salts share with metals the advantage of low vapour pressure even at high temperatures, and are less chemically reactive than sodium. Salts containing light elements like FLiBe {a molten salt made from a mixture of lithium fluoride (LiF) and beryllium fluoride (BeF2)} can also provide moderation. In the Molten Salt Reactor Experiment, it served as a solvent carrying nuclear fuel.

Gases have also been used as a coolant. Helium is extremely inert both chemically and with respect to nuclear reactions but has a low heat capacity. But India‘s first Prototype Fast Breeder Reactor which will be commissioned in December 2021 at Kalpakkam marking the second of the three-stage nuclear power programme will use liquid sodium as a coolant. Hence statement 2 is not correct.

Aqua regia, (Latin for 'royal water') is a freshly prepared mixture of concentrated hydrochloric acid and concentrated nitric acid in the ratio of 3:1. Hence statement 1 is correct.

It can dissolve gold, even though neither of these acids can do so alone. Aqua regia is a highly corrosive, fuming liquid. It is one of the few reagents that are able to dissolve gold and platinum. Hence statement 2 is correct.

Reverse Osmosis is a technology that is used to remove a large majority of contaminants from water by pushing the water under pressure through a semi-permeable membrane.

Total Dissolved Solids (TDS) in water are some organic and inorganic materials, which include minerals and ions that are dissolved in a particular quantity in water. When water passes through stones, pipes or different surfaces, the particles are absorbed into the water. TDS in water can come from different sources such as minerals in chemicals used for treating water, runoff from the road salts and chemicals or fertilizers from the farms.

Water that has a TDS level of more than 1000mg/L is unfit for consumption. A high level of TDS in water can lead to a number of health problems. The presence of potassium, sodium, chlorides increases the TDS level in the water. However, the presence of toxic ions such as lead, nitrate, cadmium, and arsenic present in water can lead to a number of serious health problems. This is especially important for children because they are much more sensitive to contaminants because their defence systems have not fully developed. Hence statement 1 is correct.

Several types of devices are used to improve the aesthetic qualities of drinking water and to remove chemicals. Activated carbon filters are the most common, they are more effective in removing organic chemicals. They are often used to improve taste, smell and appearance. Hence statement 2 is not correct.

The desalinated water that is demineralized or deionized, is called permeate (or product) water. The water stream that carries the concentrated contaminants that did not pass through the RO membrane is called the reject (or concentrate) stream.

Statement 1 is not correct: Homo indicates the genus of human beings.

Statement 2 is correct: Human beings belong to the species sapiens.

Statement 3 is correct: All human beings belong to kingdom Animalia. All animals belonging to various phyla are assigned to the highest category called Kingdom Animalia in the classification system of animals.

Lamarckism (or Lamarckian inheritance) is the idea that an organism can pass one characteristic that it acquired during its lifetime to its offspring (also known as the inheritance of acquired character). Hence, statement 1 is correct.
Lamarck incorporated the following two ideas into his theory of evolution:

• Use and disuse of organs- Individuals lose characteristics which they do not require (or use) and develop characteristics which they do not require (or use) and develop characteristics that are useful. Hence, statement 2 is correct.
• Inheritance acquired traits- Individuals inherit the traits of their ancestors. Darwin's theory (Natural selection) has been supported by a lot of evidence. Lamarck's Theory of Inheritance of Acquired Characteristics has been disproved. This was done in two major ways. The first is by experiment. We have seen through many real examples and observations that changes that occur in an animal during life are not passed on to the animal's offspring. If a dog's ears are cropped short, its puppies are stillborn with long ears. If someone exercises every day, runs marathons, eats well, and is generally very healthy, the fitness is not passed on and the person's children still have to work just as hard to get that fit and healthy. These and other examples show that Lamarck's theory does not explain how life formed and became the way it is. Hence, statement 3 is not correct.