SBI PO 2021: Prelims Memory Based Question Paper with Answers | SBI PO Mock Test Series & Past Year Papers 2024 - Bank Exams PDF Download

 Page 1


Que. 1 Read the passage given below and then answer the questions given below the passage. Some words
may be highlighted for your attention. Pay careful attention.
Since 2011, the world’s steelmakers have been feeling the heat. Prices for the metal have halved due to flatlining
demand and rising exports from China, which now smelts 50% of the global output. Profits at steel firms around
the world have fallen into a sea of red ink, shuttering plants and laying off workers. New measures designed to
raise the price of carbon in the EU to help the bloc meet its climate-change targets, voted on by the European
Parliament on February 15th, threaten to increase the pressure. The industry is a heavy user of carbon;
responsible for 5% of global emissions. Some steel firms have responded by calling for carbon tariffs to prevent
the measures undermining their international competitiveness. How do border taxes on carbon emissions work?
And are they a good idea?
The reforms the European Parliament passed this week are an attempt to increase the price of carbon by cutting
the emissions allowances granted to firms. The measures include the EU’s first border tax on carbon, levied on
cement imports. Steel firms, also heavy users of carbon, say their exclusion from this scheme is unfair. This week
Lakshmi Mittal, the CEO of Arcelor Mittal, the world’s biggest steelmaker, offered his support for the tax.
Similar proposals in America are also being mooted. This month a group of Republicans—including two former
treasury secretaries, James Baker and George Shultz—proposed a similar levy on imports at the border, as well
as for domestic production. Their plan includes a carbon tax on imports of up to $40 for each tonne produced by
their manufacture, which would increase over time. The income from the levy would then be distributed to
American households on a quarterly basis to make up for higher consumer prices.
Proponents of such policies say that they remove the distortions caused by carbon taxes. Under the EU’s reforms,
steelmakers in Europe would pay up to €30 ($32) to emit a tonne of carbon, but foreign producers selling in the
EU would not have to pay a cent. This harms the cost competitiveness of European producers. It also encourages
firms to move production outside the bloc rather than prompt them to use cleaner methods. Taxing imports on
their embodied carbon—where this has not already happened in their country of origin—would level the playing
field between different systems, they say. It would also give an incentive to countries without controls on
emissions to introduce their own carbon taxes, in order to grab a share of the revenues. 
Economists say the idea works in theory. But many think it would be much more difficult in practice. One big
problem is the difficulty of calculating the embodied carbon in imports. This is not easy even for simple sheets of
steel; for items made of several bits of metal from different sources, it is hellishly complex. Disputes over this
could produce reams of litigation at the WTO between various systems. But the reason why trade economists are
so squeamish about carbon tariffs is the fear that they could cause a tariff war. The EU and America are already
in a politically driven tit-for-tat over steel duties with China; they have risen in some cases to over 500%. Rather
than prod countries to tighten their own regulations, new carbon tariffs could make that battle more vicious.
Worse still, lobby groups could easily pervert the charges into a form of quiet protectionism. Donald Trump’s
presidency has already rattled free-traders’ nerves. Why risk giving the protectionists another opening?
How can raising carbon prices affect the steel industry?
Raising carbon prices cannot affect the steel industry in anyway. 1.
The steel industry is a heavy user of carbon and accounts for 5% of the global carbon emissions. Thus
raising carbon prices will increase overall cost for the steel industry ultimately lowering their profit
margin and cause further increase in already existing problems like closure of plants and laying off of
workers.
2.
The steel industry is a heavy user of carbon accounting for 5% of the global carbon emissions. Thus if it
has to pay more fines, it will cut it from the salary of the workers causing worker unrest.
3.
The proposed increase in price has been put forth by the European Union and it is to be implemented on
the European steel industries. This would cause the European steel industry to lose out against the
4.
Page- 1
Page 2


Que. 1 Read the passage given below and then answer the questions given below the passage. Some words
may be highlighted for your attention. Pay careful attention.
Since 2011, the world’s steelmakers have been feeling the heat. Prices for the metal have halved due to flatlining
demand and rising exports from China, which now smelts 50% of the global output. Profits at steel firms around
the world have fallen into a sea of red ink, shuttering plants and laying off workers. New measures designed to
raise the price of carbon in the EU to help the bloc meet its climate-change targets, voted on by the European
Parliament on February 15th, threaten to increase the pressure. The industry is a heavy user of carbon;
responsible for 5% of global emissions. Some steel firms have responded by calling for carbon tariffs to prevent
the measures undermining their international competitiveness. How do border taxes on carbon emissions work?
And are they a good idea?
The reforms the European Parliament passed this week are an attempt to increase the price of carbon by cutting
the emissions allowances granted to firms. The measures include the EU’s first border tax on carbon, levied on
cement imports. Steel firms, also heavy users of carbon, say their exclusion from this scheme is unfair. This week
Lakshmi Mittal, the CEO of Arcelor Mittal, the world’s biggest steelmaker, offered his support for the tax.
Similar proposals in America are also being mooted. This month a group of Republicans—including two former
treasury secretaries, James Baker and George Shultz—proposed a similar levy on imports at the border, as well
as for domestic production. Their plan includes a carbon tax on imports of up to $40 for each tonne produced by
their manufacture, which would increase over time. The income from the levy would then be distributed to
American households on a quarterly basis to make up for higher consumer prices.
Proponents of such policies say that they remove the distortions caused by carbon taxes. Under the EU’s reforms,
steelmakers in Europe would pay up to €30 ($32) to emit a tonne of carbon, but foreign producers selling in the
EU would not have to pay a cent. This harms the cost competitiveness of European producers. It also encourages
firms to move production outside the bloc rather than prompt them to use cleaner methods. Taxing imports on
their embodied carbon—where this has not already happened in their country of origin—would level the playing
field between different systems, they say. It would also give an incentive to countries without controls on
emissions to introduce their own carbon taxes, in order to grab a share of the revenues. 
Economists say the idea works in theory. But many think it would be much more difficult in practice. One big
problem is the difficulty of calculating the embodied carbon in imports. This is not easy even for simple sheets of
steel; for items made of several bits of metal from different sources, it is hellishly complex. Disputes over this
could produce reams of litigation at the WTO between various systems. But the reason why trade economists are
so squeamish about carbon tariffs is the fear that they could cause a tariff war. The EU and America are already
in a politically driven tit-for-tat over steel duties with China; they have risen in some cases to over 500%. Rather
than prod countries to tighten their own regulations, new carbon tariffs could make that battle more vicious.
Worse still, lobby groups could easily pervert the charges into a form of quiet protectionism. Donald Trump’s
presidency has already rattled free-traders’ nerves. Why risk giving the protectionists another opening?
How can raising carbon prices affect the steel industry?
Raising carbon prices cannot affect the steel industry in anyway. 1.
The steel industry is a heavy user of carbon and accounts for 5% of the global carbon emissions. Thus
raising carbon prices will increase overall cost for the steel industry ultimately lowering their profit
margin and cause further increase in already existing problems like closure of plants and laying off of
workers.
2.
The steel industry is a heavy user of carbon accounting for 5% of the global carbon emissions. Thus if it
has to pay more fines, it will cut it from the salary of the workers causing worker unrest.
3.
The proposed increase in price has been put forth by the European Union and it is to be implemented on
the European steel industries. This would cause the European steel industry to lose out against the
4.
Page- 1
Correct Option - 2
Chinese steel industry in the global market as China doesn't have extra taxes on them.
The steel industries are dying as the there is less requirement of steel in this plastic age and a further rise
in carbon prices would provide a death knell as they would lose out on their minimum profit margin.
5.
Que. 2 Why do carbon taxes cause firms to move production outside the bloc?
Correct Option - 1
Currently, carbon taxes are applicable on the firms that produce steel inside the European bloc's territory
whereas any foreign producer selling to the bloc need not pay the taxes. This creates price disparity
between the producers prompting many to produce outside the bloc and sell back to the bloc increasing
their profit margin. 
1.
Currently, carbon taxes are applicable on the firms that produce steel inside the European bloc's territory
and also outside the bloc's territory. Thus the firms are moving production outside the bloc as well as
selling to escape the additional burden of the carbon taxes instead of moving to more cleaner practices of
steel production. 
2.
Carbon taxes where put into play to control the emission of carbon by steel producing firms. But it has
failed to create a level playing field for the firms as they are losing out against foreign competitors.
3.
Carbon taxes are only applicable on firms producing inside the European territory. This lowers the profit
margin of the firms and also forces them to adopt more cleaner methods of production. Thus it allows the
lowering of carbon emission.
4.
Carbon taxes are not causing firms to produce outside the bloc but the forced methods of cleaner steel
production is prompting many firms to move production outside the bloc.
5.
Que. 3 'One big problem is the difficulty of calculating the embodied carbon in imports.' Which option can be
called an inference from this sentence?
Correct Option - 1
Carbon particles are omnipresent in all things and hence it is difficult to calculate their quantity for
purpose of taxation.
1.
Carbon particles are limited in their availability and hence are difficult to calculate. 2.
Carbon taxation is good only in theory. 3.
carbon taxation is good in practice. 4.
Carbon taxation should only be applied to firms producing within a certain territory. 5.
Que. 4 Which word correctly describes the author's opinion regarding protectionism?
Correct Option - 5
Amused 1.
Terrified 2.
Jovial 3.
Threatened 4.
Sceptical 5.
Page- 2
Page 3


Que. 1 Read the passage given below and then answer the questions given below the passage. Some words
may be highlighted for your attention. Pay careful attention.
Since 2011, the world’s steelmakers have been feeling the heat. Prices for the metal have halved due to flatlining
demand and rising exports from China, which now smelts 50% of the global output. Profits at steel firms around
the world have fallen into a sea of red ink, shuttering plants and laying off workers. New measures designed to
raise the price of carbon in the EU to help the bloc meet its climate-change targets, voted on by the European
Parliament on February 15th, threaten to increase the pressure. The industry is a heavy user of carbon;
responsible for 5% of global emissions. Some steel firms have responded by calling for carbon tariffs to prevent
the measures undermining their international competitiveness. How do border taxes on carbon emissions work?
And are they a good idea?
The reforms the European Parliament passed this week are an attempt to increase the price of carbon by cutting
the emissions allowances granted to firms. The measures include the EU’s first border tax on carbon, levied on
cement imports. Steel firms, also heavy users of carbon, say their exclusion from this scheme is unfair. This week
Lakshmi Mittal, the CEO of Arcelor Mittal, the world’s biggest steelmaker, offered his support for the tax.
Similar proposals in America are also being mooted. This month a group of Republicans—including two former
treasury secretaries, James Baker and George Shultz—proposed a similar levy on imports at the border, as well
as for domestic production. Their plan includes a carbon tax on imports of up to $40 for each tonne produced by
their manufacture, which would increase over time. The income from the levy would then be distributed to
American households on a quarterly basis to make up for higher consumer prices.
Proponents of such policies say that they remove the distortions caused by carbon taxes. Under the EU’s reforms,
steelmakers in Europe would pay up to €30 ($32) to emit a tonne of carbon, but foreign producers selling in the
EU would not have to pay a cent. This harms the cost competitiveness of European producers. It also encourages
firms to move production outside the bloc rather than prompt them to use cleaner methods. Taxing imports on
their embodied carbon—where this has not already happened in their country of origin—would level the playing
field between different systems, they say. It would also give an incentive to countries without controls on
emissions to introduce their own carbon taxes, in order to grab a share of the revenues. 
Economists say the idea works in theory. But many think it would be much more difficult in practice. One big
problem is the difficulty of calculating the embodied carbon in imports. This is not easy even for simple sheets of
steel; for items made of several bits of metal from different sources, it is hellishly complex. Disputes over this
could produce reams of litigation at the WTO between various systems. But the reason why trade economists are
so squeamish about carbon tariffs is the fear that they could cause a tariff war. The EU and America are already
in a politically driven tit-for-tat over steel duties with China; they have risen in some cases to over 500%. Rather
than prod countries to tighten their own regulations, new carbon tariffs could make that battle more vicious.
Worse still, lobby groups could easily pervert the charges into a form of quiet protectionism. Donald Trump’s
presidency has already rattled free-traders’ nerves. Why risk giving the protectionists another opening?
How can raising carbon prices affect the steel industry?
Raising carbon prices cannot affect the steel industry in anyway. 1.
The steel industry is a heavy user of carbon and accounts for 5% of the global carbon emissions. Thus
raising carbon prices will increase overall cost for the steel industry ultimately lowering their profit
margin and cause further increase in already existing problems like closure of plants and laying off of
workers.
2.
The steel industry is a heavy user of carbon accounting for 5% of the global carbon emissions. Thus if it
has to pay more fines, it will cut it from the salary of the workers causing worker unrest.
3.
The proposed increase in price has been put forth by the European Union and it is to be implemented on
the European steel industries. This would cause the European steel industry to lose out against the
4.
Page- 1
Correct Option - 2
Chinese steel industry in the global market as China doesn't have extra taxes on them.
The steel industries are dying as the there is less requirement of steel in this plastic age and a further rise
in carbon prices would provide a death knell as they would lose out on their minimum profit margin.
5.
Que. 2 Why do carbon taxes cause firms to move production outside the bloc?
Correct Option - 1
Currently, carbon taxes are applicable on the firms that produce steel inside the European bloc's territory
whereas any foreign producer selling to the bloc need not pay the taxes. This creates price disparity
between the producers prompting many to produce outside the bloc and sell back to the bloc increasing
their profit margin. 
1.
Currently, carbon taxes are applicable on the firms that produce steel inside the European bloc's territory
and also outside the bloc's territory. Thus the firms are moving production outside the bloc as well as
selling to escape the additional burden of the carbon taxes instead of moving to more cleaner practices of
steel production. 
2.
Carbon taxes where put into play to control the emission of carbon by steel producing firms. But it has
failed to create a level playing field for the firms as they are losing out against foreign competitors.
3.
Carbon taxes are only applicable on firms producing inside the European territory. This lowers the profit
margin of the firms and also forces them to adopt more cleaner methods of production. Thus it allows the
lowering of carbon emission.
4.
Carbon taxes are not causing firms to produce outside the bloc but the forced methods of cleaner steel
production is prompting many firms to move production outside the bloc.
5.
Que. 3 'One big problem is the difficulty of calculating the embodied carbon in imports.' Which option can be
called an inference from this sentence?
Correct Option - 1
Carbon particles are omnipresent in all things and hence it is difficult to calculate their quantity for
purpose of taxation.
1.
Carbon particles are limited in their availability and hence are difficult to calculate. 2.
Carbon taxation is good only in theory. 3.
carbon taxation is good in practice. 4.
Carbon taxation should only be applied to firms producing within a certain territory. 5.
Que. 4 Which word correctly describes the author's opinion regarding protectionism?
Correct Option - 5
Amused 1.
Terrified 2.
Jovial 3.
Threatened 4.
Sceptical 5.
Page- 2
Que. 5 From the given options choose the correct synonym for the word 'undermining' in context of the given
passage.
Correct Option - 5
Sabotage 1.
Erode 2.
Undercut 3.
Hurt 4.
Subvert 5.
Que. 6 From the given options choose the correct antonym for the word 'vicious' in context of the given
passage.
Correct Option - 4
Atrocious 1.
Mild 2.
Savage 3.
Civilized 4.
Good 5.
Que. 7 Whose presidency has rattled the free - traders' nerves?
Correct Option - 2
Barrack Obama 1.
Donald Trump 2.
Vladimir Putin 3.
Narendra Modi 4.
Pranab Mukherjee 5.
Que. 8 Directions: In a question given below an incomplete sentence that must be filled/ completed with
one of the sentences/phrases given below i.e. one of the sentences/phrases can be fit into the given
blanks. Choose the correct option and complete the given sentences.
Cyber physical systems _______________________________ due to the destruction of conventional jobs and
the mechanization of jobs.
Correct Option - 5
deals with training youth for new kinds of jobs that would have ben created 1.
deal with training youth for new kinds of jobs that would be create 2.
deal with train youth for new kinds of jobs that would be created 3.
deals with training youth for new kinds of jobs that would be created 4.
deal with training youth for new kinds of jobs that would be created 5.
Page- 3
Page 4


Que. 1 Read the passage given below and then answer the questions given below the passage. Some words
may be highlighted for your attention. Pay careful attention.
Since 2011, the world’s steelmakers have been feeling the heat. Prices for the metal have halved due to flatlining
demand and rising exports from China, which now smelts 50% of the global output. Profits at steel firms around
the world have fallen into a sea of red ink, shuttering plants and laying off workers. New measures designed to
raise the price of carbon in the EU to help the bloc meet its climate-change targets, voted on by the European
Parliament on February 15th, threaten to increase the pressure. The industry is a heavy user of carbon;
responsible for 5% of global emissions. Some steel firms have responded by calling for carbon tariffs to prevent
the measures undermining their international competitiveness. How do border taxes on carbon emissions work?
And are they a good idea?
The reforms the European Parliament passed this week are an attempt to increase the price of carbon by cutting
the emissions allowances granted to firms. The measures include the EU’s first border tax on carbon, levied on
cement imports. Steel firms, also heavy users of carbon, say their exclusion from this scheme is unfair. This week
Lakshmi Mittal, the CEO of Arcelor Mittal, the world’s biggest steelmaker, offered his support for the tax.
Similar proposals in America are also being mooted. This month a group of Republicans—including two former
treasury secretaries, James Baker and George Shultz—proposed a similar levy on imports at the border, as well
as for domestic production. Their plan includes a carbon tax on imports of up to $40 for each tonne produced by
their manufacture, which would increase over time. The income from the levy would then be distributed to
American households on a quarterly basis to make up for higher consumer prices.
Proponents of such policies say that they remove the distortions caused by carbon taxes. Under the EU’s reforms,
steelmakers in Europe would pay up to €30 ($32) to emit a tonne of carbon, but foreign producers selling in the
EU would not have to pay a cent. This harms the cost competitiveness of European producers. It also encourages
firms to move production outside the bloc rather than prompt them to use cleaner methods. Taxing imports on
their embodied carbon—where this has not already happened in their country of origin—would level the playing
field between different systems, they say. It would also give an incentive to countries without controls on
emissions to introduce their own carbon taxes, in order to grab a share of the revenues. 
Economists say the idea works in theory. But many think it would be much more difficult in practice. One big
problem is the difficulty of calculating the embodied carbon in imports. This is not easy even for simple sheets of
steel; for items made of several bits of metal from different sources, it is hellishly complex. Disputes over this
could produce reams of litigation at the WTO between various systems. But the reason why trade economists are
so squeamish about carbon tariffs is the fear that they could cause a tariff war. The EU and America are already
in a politically driven tit-for-tat over steel duties with China; they have risen in some cases to over 500%. Rather
than prod countries to tighten their own regulations, new carbon tariffs could make that battle more vicious.
Worse still, lobby groups could easily pervert the charges into a form of quiet protectionism. Donald Trump’s
presidency has already rattled free-traders’ nerves. Why risk giving the protectionists another opening?
How can raising carbon prices affect the steel industry?
Raising carbon prices cannot affect the steel industry in anyway. 1.
The steel industry is a heavy user of carbon and accounts for 5% of the global carbon emissions. Thus
raising carbon prices will increase overall cost for the steel industry ultimately lowering their profit
margin and cause further increase in already existing problems like closure of plants and laying off of
workers.
2.
The steel industry is a heavy user of carbon accounting for 5% of the global carbon emissions. Thus if it
has to pay more fines, it will cut it from the salary of the workers causing worker unrest.
3.
The proposed increase in price has been put forth by the European Union and it is to be implemented on
the European steel industries. This would cause the European steel industry to lose out against the
4.
Page- 1
Correct Option - 2
Chinese steel industry in the global market as China doesn't have extra taxes on them.
The steel industries are dying as the there is less requirement of steel in this plastic age and a further rise
in carbon prices would provide a death knell as they would lose out on their minimum profit margin.
5.
Que. 2 Why do carbon taxes cause firms to move production outside the bloc?
Correct Option - 1
Currently, carbon taxes are applicable on the firms that produce steel inside the European bloc's territory
whereas any foreign producer selling to the bloc need not pay the taxes. This creates price disparity
between the producers prompting many to produce outside the bloc and sell back to the bloc increasing
their profit margin. 
1.
Currently, carbon taxes are applicable on the firms that produce steel inside the European bloc's territory
and also outside the bloc's territory. Thus the firms are moving production outside the bloc as well as
selling to escape the additional burden of the carbon taxes instead of moving to more cleaner practices of
steel production. 
2.
Carbon taxes where put into play to control the emission of carbon by steel producing firms. But it has
failed to create a level playing field for the firms as they are losing out against foreign competitors.
3.
Carbon taxes are only applicable on firms producing inside the European territory. This lowers the profit
margin of the firms and also forces them to adopt more cleaner methods of production. Thus it allows the
lowering of carbon emission.
4.
Carbon taxes are not causing firms to produce outside the bloc but the forced methods of cleaner steel
production is prompting many firms to move production outside the bloc.
5.
Que. 3 'One big problem is the difficulty of calculating the embodied carbon in imports.' Which option can be
called an inference from this sentence?
Correct Option - 1
Carbon particles are omnipresent in all things and hence it is difficult to calculate their quantity for
purpose of taxation.
1.
Carbon particles are limited in their availability and hence are difficult to calculate. 2.
Carbon taxation is good only in theory. 3.
carbon taxation is good in practice. 4.
Carbon taxation should only be applied to firms producing within a certain territory. 5.
Que. 4 Which word correctly describes the author's opinion regarding protectionism?
Correct Option - 5
Amused 1.
Terrified 2.
Jovial 3.
Threatened 4.
Sceptical 5.
Page- 2
Que. 5 From the given options choose the correct synonym for the word 'undermining' in context of the given
passage.
Correct Option - 5
Sabotage 1.
Erode 2.
Undercut 3.
Hurt 4.
Subvert 5.
Que. 6 From the given options choose the correct antonym for the word 'vicious' in context of the given
passage.
Correct Option - 4
Atrocious 1.
Mild 2.
Savage 3.
Civilized 4.
Good 5.
Que. 7 Whose presidency has rattled the free - traders' nerves?
Correct Option - 2
Barrack Obama 1.
Donald Trump 2.
Vladimir Putin 3.
Narendra Modi 4.
Pranab Mukherjee 5.
Que. 8 Directions: In a question given below an incomplete sentence that must be filled/ completed with
one of the sentences/phrases given below i.e. one of the sentences/phrases can be fit into the given
blanks. Choose the correct option and complete the given sentences.
Cyber physical systems _______________________________ due to the destruction of conventional jobs and
the mechanization of jobs.
Correct Option - 5
deals with training youth for new kinds of jobs that would have ben created 1.
deal with training youth for new kinds of jobs that would be create 2.
deal with train youth for new kinds of jobs that would be created 3.
deals with training youth for new kinds of jobs that would be created 4.
deal with training youth for new kinds of jobs that would be created 5.
Page- 3
Que. 9 Directions: In a question given below an incomplete sentence that must be filled/ completed with
one of the sentences/phrases given below i.e. one of the sentences/phrases can be fit into the given
blanks. Choose the correct option and complete the given sentences.
Zero budget farming is a form of natural farming _______________________________.
Correct Option - 2
which is neither chemical-loaded or organic with its reliance on manure. 1.
which is neither chemical-loaded nor organic with its reliance on manure. 2.
which is either chemical-loaded nor organic with its reliance on manure. 3.
who is neither chemical-loaded nor organic with its reliance on manure. 4.
which is neither chemical-loaded nor organic with it's reliance on manure. 5.
Que. 10 In the following question, two columns are given containing three phrases each. In the first column
phrases are A, B, and C and in the second column, the phrases are D, E, and F. A phrase from the first
column may or may not connect with phrase from the second column to make grammatically and contextually
correct sentence. There are five options, four of which display the sequence(s) in which the phrases can be joined
to form a grammatically and contextually correct sentence. If none of the options forms a correct sentence after
combination, select ‘None of these’ as your answer.
Column 1 Column 2
A. There is always a
back-to-school
atmosphere at
Westminster in the
autumn, but it will be
intensified this
D. investment to fund
life at university, a
survey has suggested.
B. Students facing a
financial shortfall have
increasingly turned to
cryptocurrency
E. industry and is
unlikely to improving
before the end of the
year, according to
Vauxhall Motors.
C. The global shortage of
computer chips has had a
significant impact on the
car
F. year by the
resumption of
parliamentary business
unmuffled by Covid
restrictions.
Correct Option - 3
B - E, C - D 1.
A - E, B - D, C - F 2.
A - F, B - D 3.
A - F, B - E, C - D 4.
None of these 5.
Que. 11 In the following question, two columns are given containing three phrases each. In the first
column phrases are A, B, and C and in the second column, the phrases are D, E, and F. A phrase
from the first column may or may not connect with phrase from the second column to make
Page- 4
Page 5


Que. 1 Read the passage given below and then answer the questions given below the passage. Some words
may be highlighted for your attention. Pay careful attention.
Since 2011, the world’s steelmakers have been feeling the heat. Prices for the metal have halved due to flatlining
demand and rising exports from China, which now smelts 50% of the global output. Profits at steel firms around
the world have fallen into a sea of red ink, shuttering plants and laying off workers. New measures designed to
raise the price of carbon in the EU to help the bloc meet its climate-change targets, voted on by the European
Parliament on February 15th, threaten to increase the pressure. The industry is a heavy user of carbon;
responsible for 5% of global emissions. Some steel firms have responded by calling for carbon tariffs to prevent
the measures undermining their international competitiveness. How do border taxes on carbon emissions work?
And are they a good idea?
The reforms the European Parliament passed this week are an attempt to increase the price of carbon by cutting
the emissions allowances granted to firms. The measures include the EU’s first border tax on carbon, levied on
cement imports. Steel firms, also heavy users of carbon, say their exclusion from this scheme is unfair. This week
Lakshmi Mittal, the CEO of Arcelor Mittal, the world’s biggest steelmaker, offered his support for the tax.
Similar proposals in America are also being mooted. This month a group of Republicans—including two former
treasury secretaries, James Baker and George Shultz—proposed a similar levy on imports at the border, as well
as for domestic production. Their plan includes a carbon tax on imports of up to $40 for each tonne produced by
their manufacture, which would increase over time. The income from the levy would then be distributed to
American households on a quarterly basis to make up for higher consumer prices.
Proponents of such policies say that they remove the distortions caused by carbon taxes. Under the EU’s reforms,
steelmakers in Europe would pay up to €30 ($32) to emit a tonne of carbon, but foreign producers selling in the
EU would not have to pay a cent. This harms the cost competitiveness of European producers. It also encourages
firms to move production outside the bloc rather than prompt them to use cleaner methods. Taxing imports on
their embodied carbon—where this has not already happened in their country of origin—would level the playing
field between different systems, they say. It would also give an incentive to countries without controls on
emissions to introduce their own carbon taxes, in order to grab a share of the revenues. 
Economists say the idea works in theory. But many think it would be much more difficult in practice. One big
problem is the difficulty of calculating the embodied carbon in imports. This is not easy even for simple sheets of
steel; for items made of several bits of metal from different sources, it is hellishly complex. Disputes over this
could produce reams of litigation at the WTO between various systems. But the reason why trade economists are
so squeamish about carbon tariffs is the fear that they could cause a tariff war. The EU and America are already
in a politically driven tit-for-tat over steel duties with China; they have risen in some cases to over 500%. Rather
than prod countries to tighten their own regulations, new carbon tariffs could make that battle more vicious.
Worse still, lobby groups could easily pervert the charges into a form of quiet protectionism. Donald Trump’s
presidency has already rattled free-traders’ nerves. Why risk giving the protectionists another opening?
How can raising carbon prices affect the steel industry?
Raising carbon prices cannot affect the steel industry in anyway. 1.
The steel industry is a heavy user of carbon and accounts for 5% of the global carbon emissions. Thus
raising carbon prices will increase overall cost for the steel industry ultimately lowering their profit
margin and cause further increase in already existing problems like closure of plants and laying off of
workers.
2.
The steel industry is a heavy user of carbon accounting for 5% of the global carbon emissions. Thus if it
has to pay more fines, it will cut it from the salary of the workers causing worker unrest.
3.
The proposed increase in price has been put forth by the European Union and it is to be implemented on
the European steel industries. This would cause the European steel industry to lose out against the
4.
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Correct Option - 2
Chinese steel industry in the global market as China doesn't have extra taxes on them.
The steel industries are dying as the there is less requirement of steel in this plastic age and a further rise
in carbon prices would provide a death knell as they would lose out on their minimum profit margin.
5.
Que. 2 Why do carbon taxes cause firms to move production outside the bloc?
Correct Option - 1
Currently, carbon taxes are applicable on the firms that produce steel inside the European bloc's territory
whereas any foreign producer selling to the bloc need not pay the taxes. This creates price disparity
between the producers prompting many to produce outside the bloc and sell back to the bloc increasing
their profit margin. 
1.
Currently, carbon taxes are applicable on the firms that produce steel inside the European bloc's territory
and also outside the bloc's territory. Thus the firms are moving production outside the bloc as well as
selling to escape the additional burden of the carbon taxes instead of moving to more cleaner practices of
steel production. 
2.
Carbon taxes where put into play to control the emission of carbon by steel producing firms. But it has
failed to create a level playing field for the firms as they are losing out against foreign competitors.
3.
Carbon taxes are only applicable on firms producing inside the European territory. This lowers the profit
margin of the firms and also forces them to adopt more cleaner methods of production. Thus it allows the
lowering of carbon emission.
4.
Carbon taxes are not causing firms to produce outside the bloc but the forced methods of cleaner steel
production is prompting many firms to move production outside the bloc.
5.
Que. 3 'One big problem is the difficulty of calculating the embodied carbon in imports.' Which option can be
called an inference from this sentence?
Correct Option - 1
Carbon particles are omnipresent in all things and hence it is difficult to calculate their quantity for
purpose of taxation.
1.
Carbon particles are limited in their availability and hence are difficult to calculate. 2.
Carbon taxation is good only in theory. 3.
carbon taxation is good in practice. 4.
Carbon taxation should only be applied to firms producing within a certain territory. 5.
Que. 4 Which word correctly describes the author's opinion regarding protectionism?
Correct Option - 5
Amused 1.
Terrified 2.
Jovial 3.
Threatened 4.
Sceptical 5.
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Que. 5 From the given options choose the correct synonym for the word 'undermining' in context of the given
passage.
Correct Option - 5
Sabotage 1.
Erode 2.
Undercut 3.
Hurt 4.
Subvert 5.
Que. 6 From the given options choose the correct antonym for the word 'vicious' in context of the given
passage.
Correct Option - 4
Atrocious 1.
Mild 2.
Savage 3.
Civilized 4.
Good 5.
Que. 7 Whose presidency has rattled the free - traders' nerves?
Correct Option - 2
Barrack Obama 1.
Donald Trump 2.
Vladimir Putin 3.
Narendra Modi 4.
Pranab Mukherjee 5.
Que. 8 Directions: In a question given below an incomplete sentence that must be filled/ completed with
one of the sentences/phrases given below i.e. one of the sentences/phrases can be fit into the given
blanks. Choose the correct option and complete the given sentences.
Cyber physical systems _______________________________ due to the destruction of conventional jobs and
the mechanization of jobs.
Correct Option - 5
deals with training youth for new kinds of jobs that would have ben created 1.
deal with training youth for new kinds of jobs that would be create 2.
deal with train youth for new kinds of jobs that would be created 3.
deals with training youth for new kinds of jobs that would be created 4.
deal with training youth for new kinds of jobs that would be created 5.
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Que. 9 Directions: In a question given below an incomplete sentence that must be filled/ completed with
one of the sentences/phrases given below i.e. one of the sentences/phrases can be fit into the given
blanks. Choose the correct option and complete the given sentences.
Zero budget farming is a form of natural farming _______________________________.
Correct Option - 2
which is neither chemical-loaded or organic with its reliance on manure. 1.
which is neither chemical-loaded nor organic with its reliance on manure. 2.
which is either chemical-loaded nor organic with its reliance on manure. 3.
who is neither chemical-loaded nor organic with its reliance on manure. 4.
which is neither chemical-loaded nor organic with it's reliance on manure. 5.
Que. 10 In the following question, two columns are given containing three phrases each. In the first column
phrases are A, B, and C and in the second column, the phrases are D, E, and F. A phrase from the first
column may or may not connect with phrase from the second column to make grammatically and contextually
correct sentence. There are five options, four of which display the sequence(s) in which the phrases can be joined
to form a grammatically and contextually correct sentence. If none of the options forms a correct sentence after
combination, select ‘None of these’ as your answer.
Column 1 Column 2
A. There is always a
back-to-school
atmosphere at
Westminster in the
autumn, but it will be
intensified this
D. investment to fund
life at university, a
survey has suggested.
B. Students facing a
financial shortfall have
increasingly turned to
cryptocurrency
E. industry and is
unlikely to improving
before the end of the
year, according to
Vauxhall Motors.
C. The global shortage of
computer chips has had a
significant impact on the
car
F. year by the
resumption of
parliamentary business
unmuffled by Covid
restrictions.
Correct Option - 3
B - E, C - D 1.
A - E, B - D, C - F 2.
A - F, B - D 3.
A - F, B - E, C - D 4.
None of these 5.
Que. 11 In the following question, two columns are given containing three phrases each. In the first
column phrases are A, B, and C and in the second column, the phrases are D, E, and F. A phrase
from the first column may or may not connect with phrase from the second column to make
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grammatically and contextually correct sentence. There are five options, four of which display the
sequence(s) in which the phrases can be joined to form a grammatically and contextually correct sentence.
If none of the options forms a correct sentence after combination, select ‘None of these’ as your answer.
 Column 1 Column 2
A. A new analysis suggests
the current level of UK
spending to
D. for what happens to batteries at the
end of their lives, to reduce reliance
on mining and keep materials in
circulation.
B. A project that seeks to
develop new kelp strains for
the seaweed aquaculture
sector
E. combat climate change is lagging
behind what advisers say is needed.
C. As the automotive
industry starts to transform,
experts say now is the time
to plan
F. has been awarded funding from
World Wildlife Fund (WWF), with
support from the Bezos Earth Fund.
Correct Option - 3
A-F, B-D, C-E 1.
B-E, C-D 2.
A-E, B-F, C-D 3.
A-D, B-F 4.
None of these 5.
Que. 12 In the question below, three statements are given which may or may not be grammatically
correct. Choose the sentence/sentences that is/are grammatically incorrect.
A. Venus is more nearer to Earth than Jupiter and so, appears brighter in the night sky; however, this alone does
not account for its larger-than-life appearance.
B. The British fixation with the weather seems to link readily with a pessimistic view of Britain’s vulnerability to
flooding.
C. In one of the most widely scrutinized CEO succession ever, Microsoft directors selected insider Satya Nadella
to run the company.
Correct Option - 3
B and C 1.
A and B 2.
A and C 3.
Only B 4.
Only A 5.
Que. 13 In the question below, three statements are given which may or may not be grammatically
correct. Choose the sentence/sentences that is/are grammatically incorrect.
A. I will have been working in this organization for eleven years next year.
B. Meanwhile, the gallant Jos had agreed to escort her sister and the major’s wife, the bulk whose goods and
chattels, including the famous bird of paradise and the turban, was with the regimental baggage.
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