Question Paper Analysis
If you can't explain it simply, you don't understand it well enough.
If you can't explain it simply, you don't understand it well enough.
-
Albert Einstein
Indian Economy is one of the
important topics covered in General Studies paper in Civil services exam. It
has importance in both preliminary and main exams. Here the questions from
Indian Economy of the General Studies Paper I of Preliminary exam are analysed.
The question from Indian Economy is not strictly from economy it is both from
economy and socio economy of India. The socio economy means the economy related
things which have social angle and societal implication. The major examples for
these are Poverty and Poverty eradication programmes of Government of India. It
has both social and economy angle.
There is no any standard pattern
followed by UPSC in framing the questions. The number of questions and the
nature of questions vary from year to year. This is not specific to Indian
economy it applies to all subjects. But some faint conclusions can be derived
by going through question papers from various years of examination.
As said above the questions are from
economy and socio economy. The questions usually test the conceptual clarity
and their awareness of current happening. Even the questions which test
conceptual clarity somehow related to current happenings. For example a
question in the preliminary exam of 2011 links common wealth Games which
happened during 2010 with economy concept of external trade. This link is
apparent but there are many questions which are indirectly linked. The
questions from socio economy usually are about Government programmes. There are
‘n’ numbers of programmes. It is a bit difficult to know and keep in memory
about all the programmes. So know about the programmes and schemes which are
currently in the news. To put it in a nutshell have conceptual clarity and read
newspaper regularly. Along with newspaper read Economic survey released by
Government of India. If you are a regular reader of newspaper you are likely to
have half of the Economic Survey at your hand before it is published. Once you
read the book certainly you will have some conceptual clarity. This book is not
panacea for all your need. But this book is really of great help.
In the following passage the
question and answer analysis is given.
Civil
Services Preliminary Examination 2011
1. India
has experienced persistent and high food inflation in the recent past. What
could be the reasons?
1. Due to a gradual switchover to the cultivation of commercial crops,
the area under the cultivation of food grains has steadily decreased in the
last five years by about 30%.
2. As a consequence of increasing incomes, the consumption patterns of
the people have undergone a significant change.
3. The food supply chain has structural constraints.
Which of the statements given above are correct?
(a) 1 and only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answer: b
Analysis:
This question is related to current affairs. In the recent past the food
inflation is high. So this question was asked. Inflation is basically because
of two reasons. One is due to supply shortage and another one is high demand.
The above statements reflect either of these two. But to come to a clear
conclusions that which one is reason for current high inflation facts are
necessary. The first statement is wrong as it is not supported by facts. See the
table 1.10. It doesn’t show any decline in the area under food grains. So the
first statement is wrong.
Source: Economic Survey 2010-11
As the first statement is eliminated the obvious answer is b. But this
elimination is not always possible. So consider the other two statements. Yes there is a shift in the pattern of
consumption of people. With increase in per capita income the consumption of
protein food is increasing. And another reason often cited is that the Mahatma
Gandhi National Rural Employment Scheme has increased disposable income in the
hands of people. It led to higher consumption. The 2010-11 Economic Survey
reads: “One popular explanation for suddenly rising prices of vegetables,
spices, dairy, and similar products is rising incomes in India driving prices
higher, as consumers are presumed to be shifting from low-value products to
higher value ones (consistent with Engel’s Law). While this may certainly be
true as a general demand-side explanation, it merits deeper examination….”
The third statement
withstands by the fact that India experienced high Consumer Price Index based
inflation which measures the inflation in retail market is high and Wholesale
Price Index based inflation which measures the inflation in retail market is
low. It means the products available at cheaper rate in whole market become
costlier at retail market. This is because of bottlenecks in the free flow of
products from whole sale market to retail market. This is an interpretation.
2. In terms
of economy, the visit by foreign nationals to witness the XIX Common Wealth
Games in India amounted to
(a) Export
(b) Import
(c) Production
(d) Consumption
======================================================================
Answer: a
Analysis:
The visiting foreign nationals use the service provided by Indian
nationals. The services they use are mostly related with tourism oriented
services like hotel restaurant and travel. For these services they pay money.
It means Indian nationals export the service.
To decide about export and import, see who pay the money and who receive
the money out of product or service exchanged. Take an example. An Indian is
flying from Mumbai to Amsterdam in Air France flight. He pays to French
company. It means he imports service.
=====================================================================
3. Which
one of the following statements appropriately describes the "fiscal
stimulus"?
(a) It is a massive investment by the Government in manufacturing sector
to ensure the supply of goods to meet the demand surge caused by rapid economic
growth
(b) It is an intense affirmative action of the Government to boost
economic activity in the country
(c) It is Government’s intensive action on financial institutions to
ensure disbursement of loans to agriculture and allied sectors to promote
greater food production and contain food inflation
(d) It is an extreme affirmative action by the Government to pursue its
policy of financial inclusion
======================================================================
Answer: b
Analysis:
This is a question related with economics concept. But this question was
asked in the context of global recession of 2008 and subsequent period.
Fiscal stimulus is a budgetary measure. Fiscal stimulus aims at
increasing investment and consumption in the economy which in turn increase GDP
growth. This measure is usually taken to revive the economy from slow growth
and recession. The investment and consumption is boosted by cut in import duty,
excise duty and incentive to investors.
The first statement speaks about investment by government in the time of
rapid economic growth. It doesn’t amount to fiscal stimulus. Surely, it is one
of the fiscal policy/budgetary measure. But it is aimed at correcting
structural imbalance not to stimulate the economy.
The other two statements speak about monetary measure.
======================================================================
4. Consider
the following actions which the Government can take:
1. Devaluing the domestic currency.
2. Reduction in the export subsidy.
3. Adopting suitable policies which attract greater FDI and more funds
from FIIs.
Which of the above actions can help in reducing the current account
deficit?
(a) 1 and 2
(b) 2 and 3
(c) 3 only
(d) 1 and 3
======================================================================
Answer: d
Analysis:
If import is greater than export the current account deficit arises. To
reduce current account deficit the import should be reduced and export has to
be increased.
Devaluing of domestic currency increases the export (to know how
devaluation increases export, see page
no: 108 of Indian Economy Key Concepts 2nd Revised Edition).
Reduction in the export subsidy increases the price of export commodity
so the export comes down. It will increase current account deficit.
Attracting FDI and FII increases capital flow. It doesn’t directly helps
in reducing current account deficit. But it helps indirectly. FDI and FII helps
in boosting investment in the country. It helps in domestic production of
hitherto imported goods and contributes to export. So the current account
deficit comes down.
======================================================================
5. A rapid
increase in the rate of inflation is sometimes attributed to the "base
effect". What is "base effect"?
(a) It is the impact of drastic deficiency in supply due to failure of
crops
(b) It is the impact of the surge in demand due to rapid economic growth
(c) It is the impact of the price levels of previous year on the
calculation of inflation rate
(d) None of the statements (a), (b) and (c)
======================================================================
Answer: c
Analysis:
It is a conceptual issue but was asked in the current context.
See page no: 100 of
Indian Economy Key Concepts 2nd Revised Edition.
======================================================================
6. India is
regarded as a country with "Demographic Dividend". This is due to
(a) Its high population in the age group below 15 years
(b) Its high population in the age group of 15-64 years
(c) Its high population in the age group above 65 years ·
(d) Its high total population
======================================================================
Answer: b
Analysis:
Demographic dividend refers to benefit arises out of young working
population of the country. The young working population actively engages in
productive activities which in turn boosts economy. The population in the age group of 15-64 is
the working population.
======================================================================
7. Which
one of the following is not a feature of "Value Added Tax"?
(a) It is a multi-point destination-based system of taxation
(b) It is a tax levied on value addition at each stage of transaction in
the production-distribution chain
(c) It is a tax on the final consumption of goods or services and must
ultimately be borne by the consumer
(d) It is basically a subject of the Central Government and the State
Governments are only a facilitator for its successful implementation
======================================================================
Answer: d
Analysis:
The statement d is just opposite to what is true. It is basically state
subject and the Central Government plays facilitating role.
To know more about VAT see page
no: 43 of Indian Economy Key Concepts 2nd Revised
Edition
======================================================================
8. A
“closed economy" is an economy in which
(a) The money supply is fully controlled
(b) Deficit financing takes place
(c) Only exports take place
(d) Neither
exports nor imports take place
======================================================================
Answer: d
Answer: d
Analysis:
A closed economy
solely relies on domestic resources and activities. It no way interacts with
outside world in the economic arena.
======================================================================
9. Both
Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) are related
to investment in a country. Which one of the following statements best
represents an important difference between the two?
(a) FII helps bring better management skills and technology, while FDI
only brings in capital
(b) FII helps in increasing capital availability in general, while FDI
only targets specific sectors
(c) FDI flows only into the secondary market, while FII targets primary
market
(d) FII is considered to be more stable than FDI
======================================================================
Answer: b
Analysis:
FDI is direct investment in a company. It brings better technology and
managerial skill. FII investment happens in secondary market. Both FDI and FII
make capital availability in the country. FII considered volatile as they sell
their shares in secondary and move away with money if they find something
unusual. They are sensitive to even small matters. So they are more volatile.
======================================================================
10. With
reference to "Aam Admi Bima Yojana", consider the following
statements:
1. The member insured under the scheme must be the head of the family or
an earning member of the family in a rural landless house hold.
2. The member insured must be in the age group of 30 to 65 years.
3. There is a provision for free scholarship for up to two children of
the insured who are studying between classes 9 and 12.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
======================================================================
Answer: c
Analysis:
The scheme was launched in Oct 2, 2007. The eligible age group is 18 to
59 years. So the second statement is wrong. If this information is known the
choices b and d can be eliminated.
Though this scheme was launched in 2007 it is possible to see at least a
reference about scheme in newspapers. It is better to study a bit of background
information when such reference appears in the newspapers.
======================================================================
11. With
what purpose is the Government of India promoting the concept of "Mega
Food Parks"?
1. To provide good infrastructure facilities for the food processing
industry.
2. To increase the processing of perishable items and reduce wastage.
3. To provide emerging and eco- friendly food processing technologies to
entrepreneurs.
Select the correct answer using the codes given below:
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
======================================================================
Answer: b
Analysis:
The
Scheme of Food Parks launched in the 10th Five Year Plan has been
revised and reformulated as Mega Food Parks Scheme (MFPS) for the 11th
Five Year Plan period.
It
is also like SEZ aims at creating infrastructure and increase export. It
doesn’t provide any technologies to entrepreneur. Its mandate is to give grant
for the development of Park.
To
know more read: http://mofpi.nic.in/guidelines/Guidelines_MFPS.pdf
=====================================================================================
12.
Microfinance is the provision of financial services to people of low-income
groups. This includes both the consumers and the self—employed. The service/
services rendered under micro finance is / are:
1. Credit facilities
2. Savings facilities
3. Insurance facilities
4. Fund Transfer facilities
Select the correct answer using the codes given below the lists :
(a) 1 only
(b) 1 and 4 only
(c) 2 and 3 only
(d) 1, 2, 3 and 4
======================================================================
Answer: d
Analysis:
Micro finance like all other finance services provides
most of the facilities. But the size of the service and target group is smaller
and narrow.
======================================================================
13. Among
the following who are eligible to benefit from the "Mahatma Gandhi
-National Rural Employment Guarantee Act?
(a) Adult members of only the scheduled caste and scheduled tribe households.
(b) Adult members of below poverty line (BPL) households
(c) Adult members of households of all backward communities
(d) Adult members of any household
======================================================================
Answer: d
Analysis:
This flagship programme of the Government of India aims at enhancing
livelihood security of households in rural areas of the country by providing at
least one hundred days of guaranteed wage employment in a financial year to
every household whose adult members volunteer to do unskilled manual work.
(Economic Survey: 2010-11 p.300)
======================================================================
14.
Regarding the International Monetary Fund, which one of the following
statements is correct?
(a) It can grant loans to any country
(b) It can grant loans to only developed countries .
(c) It grants loans to only member countries
(d) It can grant loans to the central bank of a country
=====================================================================
Answer: c
Analysis:
A core responsibility of the IMF is to provide loans to member countries
experiencing actual or potential balance of payments problems. This financial
assistance enables countries to rebuild their international reserves, stabilize
their currencies, continue paying for imports, and restore conditions for
strong economic growth, while undertaking policies to correct underlying
problems. Unlike development banks, the IMF does not lend for specific
projects.
=====================================================================================
15. Why- is
the offering of "teaser loans" by commercial banks a cause of
economic concern?
1. The teaser loans are considered to be an aspect of sub-prime lending
and banks may be exposed to the risk of defaulters in future.
2. In India, the teaser loans are mostly given to inexperienced
entrepreneurs to set up manufacturing or export units;
Which of the statements given above is/are correct ‘?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
======================================================================
Answer: a
Analysis:
Teaser means attractive. The home loans provided by banks had a unique
blend of fixed interest rate in the initial years and floating rates in the
subsequent years. In initial years the interest is low but later it may go up
depending upon the prevailing money market condition. The increased interest
burden may lead to default in the future. So RBI cautioned banks.
This also related to current event.
======================================================================
16. In the
context of Indian economy, consider the following statements:
1. The growth rate of GDP has steadily increased in the last five years.
2. The growth rate in per capita income has steadily increased in the
last five years.
Which of the statements given above is/ are correct?
(a) 1 only
(b) 2 only
(c) Both l and 2
(d) Neither 1 nor 2
======================================================================
Answer: d
Analysis:
There is a slight fluctuation in the GDP and per capita income in the
last five years. It is clear from the following table.
Year
|
GDP growth (1999-00 prices)
|
Per capita NNP (1999-00 prices)
|
05-06
06-07
07-08
08-09 (provisional estimate)
09-10 (quick estimate)
|
9.5
9.6
9.3
6.8
8.0
|
7.8
7.9
8.1
4.8
6.1
|
Source: economic Survey
2010-11
Though the answer here is supported by five year statistics it is not
necessary that anybody should know all these at ready hand. Even if two years
growth rate is known the question can be answered. For that reading of
newspaper is enough.
======================================================================
17. In
India, which of the following have the highest share in the disbursement of
credit to agriculture and allied activities?
(a) Commercial Banks
(b) Cooperative Banks
(c) Regional Rural Banks
(d) Microfinance Institutions
======================================================================
Answer: a
Analysis:
The share of Commercial bank is around 75% Co-operative Banks and
Regional Rural Banks is 15% and 10% respectively. The early start of Commercial
banks and their presence all over the country with a large number of branches
helps in keeping its dominant position even though special institutions like
cooperatives and RRBs to lend agriculture has been set up.
======================================================================
18. Which
of the following can aid in furthering the Government’s objective of inclusive
growth?
1. Promoting Self-Help Groups
2. Promoting 'Micro, Small and Medium Enterprises
3. Implementing the Right to Education Act
Select the correct answer using the codes given below:
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1,2and 3
======================================================================
Answer: d
Analysis:
Inclusive growth means making economic growth benefits available to all
especially to hitherto excluded section. This has to be achieved by including
them in the growth process and enable them to make effective contribution to
growth and get their return in turn.
So, all these three can aid in furthering the Government’s objective of
inclusive growth.
======================================================================
19. Why is
the Government of India disinvesting its equity in the Central Public Sector Enterprises
(CPSES)?
1. The Government intends to use the revenue earned from the
disinvestment mainly to pay back the external t debt.
2. The Government no longer intends to retain the management control of
the CPSEs.
Which of the statements given above is/ are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
======================================================================
Answer: d
Analysis:
The recent policy stance of the government is that the people have the
right to own a part of CPSEs. And the government wants to hold at least 51% of
ownership of the CPSEs.
======================================================================
20.
Economic growth is usually coupled with
(a) Deflation
(b) Inflation
(c) Stagflation
(d) Hyperinflation
======================================================================
Answer: b
Analysis:
In the condition of inflation there is an incentive to produce more and
grow when it is moderate. To know how read ‘effect of inflation’ in page no 96 of Indian Economy Key Concepts 2nd
Revised Edition.
======================================================================
21. The
lowering of Bank Rate by the Reserve Bank of India leads to
(a) More liquidity in the market
(b) Less liquidity in the market
(c) No change in the liquidity in the market
(d) Mobilization of more deposits by commercial banks
======================================================================
Answer: a
Analysis:
To know how read
page no 54 of Indian Economy Key
Concepts 2nd Revised Edition
======================================================================
Civil Services Preliminary Examination 2012
1. The endeavour of ‘Janani
Suraksha Yojana’ Programme is
1.
To promote institutional deliveries
2.
To provide monetary assistance to the mother to meet the cost of delivery
3.
To provide for wage loss due to pregnancy and confinement
Which
of the statements given above is/are correct ?
(a) 1 and 2 only
(b) 2 only
(c) 3 only
(d) 1, 2 and 3
======================================================================
Answer:
a
Analysis:
It is aimed at better
health care rather than financial assistance. Therefore, the third statement is
wrong.
JSY integrates the
cash assistance with antenatal care during the pregnancy period, institutional
care during delivery and immediate post-partum period in a health centre by
establishing a system of coordinated care by field level health worker. The JSY is a 100% centrally sponsored scheme.
All pregnant women
belonging to the below poverty line (BPL) households and of the age of 19 years
or above is the target group. The cash assistance is given up to two live births.
But the benefits would
be extended to all women from BPL families of 10 low performing states namely 8
EAG states (Uttar Pradesh, Uttaranchal, Madhya Pradesh, Chhattisgarh,
Rajasthan, Bihar, Jharkhand and Orissa) and the states of Assam and J&K
even after the third live birth if
the mother, of her own accord chooses to undergo sterilization in the health
facility where she delivered, immediately after the delivery.
To know more read: http://www.mohfw.nic.in/NRHM/RCH/guidelines/JSY_guidelines_09_06.pdf
======================================================================
2. Consider the following
1.
Hotels and restaurants
2.
Motor transport undertakings
3.
Newspaper establishments
4.
Private medical institutions
The
employees of which of the above can have the ‘Social Security’ coverage under
Employees’ State Insurance Scheme ?
(a) 1, 2 and 3 only
(b) 4 only
(c) 1, 3 and 4 only
(d) 1, 2, 3 and 4
======================================================================
Answer: d
Analysis:
The
Act applies, in the first instance, to, non-seasonal factories employing 10 or
more persons. The provisions of the Act
are being extended area-wise by stages. The Act contains an enabling provision under
which the "appropriate government" is empowered to extend the provisions of the Act to other classes of
establishments - industrial, commercial, agricultural or other-wise. Under these provisions most of the State Governments
have extended the provisions of the Act to new classes of establishments
namely: shops, hotels, restaurants, cinemas including preview theatres,
road-motor transport undertakings and newspaper establishments employing 20 or
more coverable employees. (Source: Standard
Note on Employees’ State Insurance Scheme as on 01.01.11 available at http://esic.nic.in/CIRCULARS/standardnote010111230911.pdf)
=====================================================================================
3. How do District Rural
Development Agencies (DRDAs) help in the reduction of rural poverty in India?
1.
DRDAs act as Panchayati Raj Institutions in certain specified backward regions
of the country.
2.
DRDAs undertake area-specific scientific study of the causes of poverty and
malnutrition and prepare detailed remedial measures.
3.
DRDAs secure inter-sectoral and inter-departmental coordination and cooperation
for effective implementation of anti-poverty programmes.
4.
DRDAs watch over and ensure effective utilization of the funds intended for
anti-poverty programmes.
Which
of the statements given above is/are correct?
(a) 1, 2 and 3 only
(b) 3 and 4 only
(c) 4 only
(d) 1, 2, 3 and 4
======================================================================
Answer: b
Analysis:
The
excerpt from Report of the Committee on Restructuring of DRDA reads: “Right from the beginning, DRDAs were not
intended to be implementing agencies. They were to function as professional
bodies to be in overall charge of planning, monitoring and evaluation of the
programmes and also coordination with different agencies.”
The
Department of Rural Development, Ministry of Rural Development (MoRD) had in 2011
constituted a Committee on Restructuring of District Rural Development Agency
(DRDA) under the chairmanship of Shri V Ramchandran. In this current context
this question may be asked.
======================================================================
4. The Reserve Bank of India
(RBI) acts as a bankers’ bank. This would imply which of the following?
1.
Other banks retain their deposits with the RBI.
2.
The RBI lends funds to the commercial banks in times of need.
3.
The RBI advises the commercial banks on monetary matters.
Select
the correct answer using the codes given below:
(a) 2 and 3 only
(b) 1 and 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
======================================================================
Answer: b
Analysis:
To
know more read page no: 53 of Indian
Economy Key Concepts 2nd revised edition.
======================================================================
5. Under which of the
following circumstances may ‘capital gains’ arise ?
1.
When there is an increase in the sales of a product
2.
When there is a natural increase in the value of the property owned.
3.
When you purchase a painting and there is a growth in its value due to increase
in its popularity
Select
the correct answer using the codes given below:
(a) 1 only
(b) 2 and 3 only
(c) 2 only
(d) 1, 2 and 3
======================================================================
Answer: b
Analysis:
Capital gain means
increase in the value of property. The difference between the selling price and
purchase price is called capital gain. This question may be asked in the
background of Vodafone tax controversy.
======================================================================
6. Which of the following measures would result in an
increase in the money supply in the economy?
1.
Purchase of government securities from the public by the Central Bank.
2.
Deposit of currency in commercial banks by the public
3.
Borrowing by the government from the Central Bank
4.
Sale of government securities to the public by the Central Bank
Select
the correct answer using the codes given below:
(a) 1 only
(b) 2 and 4 only
(c) 1 and 3
(d) 2, 3 and 4
======================================================================
Answer: c
Analysis:
Purchase and sale of
Government securities by RBI is called Open Market Operation (OMO). When RBI
purchases Government securities it gives money to public against the purchase.
This increases the money supply.
The government spends
the money borrowed. This also increases the money supply.
When public deposit money in the bank that
money is taken out of the market so money supply comes down.
To know more read
Methods of credit control in page no 53
of Indian Economy Key Concepts 2nd revised edition.
=====================================================================
7. Which of the following
would include Foreign Direct Investment in India?
1.
Subsidiaries of foreign companies in India
2.
Majority foreign equity holding in Indian companies
3.
Companies exclusively financed by foreign companies
4.
Portfolio investment
Select
the correct answer using the codes given below:
(a) 1, 2, 3 and 4 only
(b) 2 and 4 only
(c) 1 and 3 only
(d) 1, 2 and 3 only
======================================================================
Answer:
d
Analysis:
If the difference between FDI and FII is known it is easy to answer this
question. The same question, in different way, was asked in 2011 exam also.
To know more read Foreign Investments in page no 53 of Indian Economy Key Concepts
2nd revised edition.
======================================================================
8. Consider the following
statements:
The
price of any currency in international market is decided by the
1.
World Bank
2.
Demand for goods/services provided by the country concerned
3.
Stability of the government of the concerned country
4.
Economic potential of the country in question
Which
of the statements given above are correct?
(a) 1, 2, 3 and 4
(b) 2 and 3 only
(c) 3 and 4 only
(d) 1 and 4 only
======================================================================
Answer: b
Analysis:
The
exchange rate is decided by both economic and non-economic factors. Basically
economic factor decide the exchange rate and political factor has role in the
volatility of exchange rate. The economic factor is demand for and supply of
currency in the foreign exchange market. The currency is demanded to purchase
goods and services or for investment purpose.
So if there is a strong demand for goods and service of the country
concerned there is a strong demand for currency also. Then the exchange rate
will be stronger. The vice versa is also true.
If
political stability is there the foreign investment will be high so is the
exchange rate.
To
know more about exchange rate see page
no 107 of Indian Economy Key Concepts 2nd revised edition.
======================================================================
9. The basic aim of Lead
Bank Scheme is that
(a) Big banks should try
to open offices in each district
(b) There should be stiff
competition among the various nationalized banks
(c) Individual banks should
adopt particular districts for intensive development
(d) All the banks make intensive
efforts to mobilize deposits
======================================================================
Answer: c
Analysis:
This
is simple factual question.
To know more about
Lead bank Scheme read page no 67 of
Indian Economy Key Concepts 2nd revised edition.
=====================================================================
10. Which of the following
can be said to be essentially the parts of ‘Inclusive Governance’?
1.
Permitting the Non-Banking Financial Companies to do banking
2.
Establishing effective District Planning Committees in all the districts
3.
Increasing the government spending on public health
4.
Strengthening the Mid-day Meal scheme
Select
the correct answer using the codes given below:
(a) 1 and 2 only
(b) 3 and 4 only
(c) 2, 3 and 4 only
(d) 1, 2, 3 and 4
======================================================================
Answer: d
Analysis:
The
UNDP publication ‘Towards Inclusive Governance Promoting the Participation of Disadvantaged
Groups in Asia-Pacific’ reads: “To be inclusive is a core value of democratic
governance, in terms of equal participation, equal treatment and equal rights
before the law. This implies that all people – including the poor, women,
ethnic and religious minorities, indigenous peoples and other disadvantaged
groups – have the right to participate
meaningfully in governance processes and influence decisions that affect them.
It also means that governance institutions and policies are accessible,
accountable and responsive to disadvantaged groups, protecting their interests
and providing diverse populations with equal opportunities for public services such
as justice, health and education”
In
the light off the above definition all the four points form part of inclusive
governance. Permitting Non-Banking Financial Companies to do banking helps in
financial inclusion as more players will come into banking and compete.
Establishing effective District Planning committees helps people to participate
in planning and implementation of socio economic programmes. Increasing
government spending on health increases the accessibility of health service to
all. Strengthening Mid-day Meal scheme increases school enrolment and retention
ratio.
======================================================================
11. With reference to
National Rural Health Mission, which of the following are the jobs of ‘ASHA’, a
trained community health worker?
1.
Accompanying women to the health facility for antenatal care checkup
2.
Using pregnancy test kits for early detection of pregnancy
3.
Providing information on nutrition and immunization
4.
Conducting the delivery of baby
Select
the correct answer using the codes given below:
(a) 1, 2 and 3 only
(b) 2 and 4 only
(c) 1 and 3 only
(d) 1, 2, 3 and 4
======================================================================
Answer: c
Analysis:
ASHAs are community
health care workers. They are not trained medical personnel. So, they are not
mandated to do delivery.
To know more read: http://www.mohfw.nic.in/NRHM/RCH/guidelines/ASHA_guidelines.pdf
=====================================================================================
12. How
does the National Rural Livelihood Mission seek to improve livelihood options
of rural poor?
1.
By setting up a large number of new manufacturing industries and agribusiness
centres in rural areas
2.
By strengthening ‘self-help groups’ and providing skill development
3.
By supplying seeds, fertilizers, diesel pump-sets and micro irrigation equipment
free of cost to farmers
Select
the correct answer using the codes given below:
(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
======================================================================Answer: b
Analysis:
The
NRLM aims at providing skill and credit facilities to rural households through
Self Help Groups.
The
Economic survey 2011-12 reads: “The SGSY has now been restructured as the
National Rural Livelihoods Mission (NRLM). The NRLM aims at reducing poverty by
enabling poor households to access gainful self-employment and skilled wage
employment opportunities. This should result in appreciable improvement in
their livelihoods on a sustainable basis through building strong and
sustainable grassroots institutions. The salient features of the NRLM are: (a)
at least one member from each identified rural poor household, preferably a
woman, to be brought under the SHG network in a time-bound manner, the ultimate
target being100 per cent coverage of BPL families; (b) setting up of strong institutions
of the poor such as SHGs for reducing dependence on external agencies; (c) a
multipronged approach envisaged for continuous capacity building of the
targeted families, SHGs, their federations, government functionaries, bankers, NGOs,
and other key stakeholders; (d) subsidy to be available in the form of
revolving fund and capital subsidy as an incentive for inculcating the habit of
thrift and accumulation of their own funds towards meeting their credit needs
in the long run and immediate consumption needs in the short run; (e) to work
towards universal financial inclusion beyond basic
banking services to all poor households, SHGs, and their federations on both the
demand and supply sides of financial inclusion; (f) in order to ensure affordable
credit, the NRLM has a provision for subsidy on interest rates above 7 per cent
per annum for all eligible SHGs who have availed of loans from mainstream
financial institutions, based on prompt loan repayment; (g) to look at
stabilizing and enhancing existing livelihoods and subsequently diversifying
them; (h) to develop backward and forward
linkages and support business plans; (i) to pursue skill up gradation and placement
projects through partnership mode, with the National Skill Development
Corporation (NSDC) being one of the leading partners in this effort and 15 per
cent of the central allocation under the NRLM earmarked for this purpose; and
(j) 5 per cent of the central allocation to be earmarked for innovations.”
======================================================================
13. The Multi-dimensional
Poverty Index developed by Oxford Poverty and Human Development Initiative with
UNDP support covers which of the following?
1.
Deprivation of education, health, assets and services at household level
2.
Purchasing power parity at national level
3.
Extent of budget deficit and GDP growth rate at national level
Select
the correct answer using the codes given below:
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
======================================================================
Answer: a
Analysis:
The
Multi-dimensional Poverty was introduced from 2010 in the UNDP Human
development report. It measures the deprivation rather than achievements.
To know more read page no 17 of Indian Economy Key
Concepts 2nd revised edition.
======================================================================
14. Which of the following
is/are among the noticeable features of the recommendations of the Thirteenth
Finance Commission?
1.
A design for the Goods and Services Tax, and a compensation package linked to
adherence to the proposed design
2.
A design for the creation of lakhs of jobs in the next ten years in consonance
with India’s demographic dividend
3.
Devolution of a specified share of central taxes to local bodies as grants
Select
the correct answer using the codes given below:
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
======================================================================
Answer: c
Analysis:
Creation
of job and other socio economic issues are mandate of Planning Commission. The
Finance Commission mostly concentrates on Public finance matters and other issues
that have fiscal implications.
======================================================================
15. What is/are the recent
policy initiative(s) of Government of India to promote the growth of
manufacturing sector?
1.
Setting up of National Investment and Manufacturing Zones
2.
Providing the benefits of ‘single window clearance’
3.
Establishing the Technology Acquisition and Development Fund
Select
the correct answer using the codes given below:
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
======================================================================
Answer: d
Analysis:
All
these three are part of the National Manufacturing Policy. It was approved on
25th October 2011. The National Manufacturing Policy is aimed at increasing
the share manufacturing sector contribution from 16% to 25 % by 2025.
======================================================================
16. In India, in the overall
Index of Industrial Production, the Indices of Eight Core
Industries have a combined
weight of 37.90%. Which of the following are among those Eight Core Industries?
1.
Cement
2.
Fertilizers
3.
Natural gas
4.
Refinery products
5.
Textiles
Select
the correct answer using the codes given below:
(a) 1 and 5 only
(b) 2, 3 and 4 only
(c) 1, 2, 3 and 4 only
(d) 1, 2, 3, 4 and 5 only
======================================================================Answer: c
Analysis:
The index of
industrial production measures the industrial output. Among industries included
in this index 8 industries are designated as core industries or infrastructure
industries. They are crude oil, petroleum refinery products, natural gas,
fertilisers, coal, electricity, cement and finished steel.
The index of
Industrial Production is periodically published in the newspaper. A constant
reading of newspaper would help in answering these types of questions.
================================================================
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