UPSC 1999 › Indian Economy

17 questions · 1999 · answers as per the UPSC key

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Topics: Infrastructure & Industry (5)Human Development, Poverty & Employment Schemes (4)National Income & Economic Growth (2)Agriculture & Rural Development (1)Banking & Financial Sector (1)Economic Planning & Five-Year Plans (1)External Sector & Balance Of Payments (1)Fiscal Policy & Budget (1)International Institutions & Reports (1)

From the balance sheet of a company, it is possible to

(a) judge the extent of profitability of the company
(b) assess the profitability and size of the company
(c) determine the size and composition of the assets and liabilities of the company
(d) determine the market share, debts and assets of the company
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Answer: (c) determine the size and composition of the assets and liabilities of the company

Persons below the poverty line in India are classified as such based on whether

(a) they are entitled to a minimum prescribed food basket
(b) they get work for a prescribed minimum number of days in a year
(c) they belong to agricultural labourer household and the scheduled caste/tribe social group
(d) their daily wages fall below the prescribed minimum wages
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Answer: (a) they are entitled to a minimum prescribed food basket

Consider the following statements:

  1. There is persistent investment over time only in select locales.
  2. Some areas are agro-climatically less conducive to development.
  3. Some areas continue to face little or no agrarian transformation and the consequent lack of social and economic opportunities.
  4. Some areas have faced continuous political instability.

Regional disparities in India are high and have been rising in recent years because

Which of the above statements are correct?

(a) 1, 2 and 3
(b) 1, 3 and 4
(c) 2, 3 and 4
(d) 1, 2 and 4
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Answer: (a) 1, 2 and 3

Consider the following statements: Industrial development in India, to an extent, is constrained by I. Lack of adequate entrepreneurship and leadership in business. II. Lack of savings to invest. III. Lack of technology, skills and infrastructure. IV. Limited purchasing power among the larger masses.

Which of the above statements are correct?

(a) I, II and III
(b) I, III and IV
(c) II, III and IV
(d) I, II and IV
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Answer: (c) II, III and IV

Among

which one of the following sets of social/religious groups is the extent of poverty the highest, as per Government statistics for the nineties?

(a) Muslims in Kerala, Gujarat and Andhra Pradesh
(b) Tribals in Bihar, Orissa, Madhya Pradesh and Maharashtra
(c) Scheduled Castes in Punjab, Western Uttar Pradesh, northern Rajasthan and Tamil Nadu
(d) Christians in Gujarat, Maharashtra and Assam
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Answer: (b) Tribals in Bihar, Orissa, Madhya Pradesh and Maharashtra

Tourism industry in India is quite small compared to many other countries in terms of India’s potential and size.

Which one of the following statements is correct in this regard?

(a) Distances in India are too far apart and its luxury hotels are too expensive for western tourists
(b) For most of the months India is too hot for western tourists to feel comfortable
(c) Most of the picturesque resorts in India such as in the Northeast and Kashmir are, for all practical purposes, out of bounds
(d) In India, the infrastructure required for attracting tourists is inadequate
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Answer: (d) In India, the infrastructure required for attracting tourists is inadequate

The Employment Assurance Scheme envisages financial assistance to rural areas for guaranteeing employment to at least

(a) 50 per cent of the men and women seeking jobs in rural areas
(b) 50 per cent of the men seeking jobs in rural areas
(c) one man and one woman in a rural family living below the poverty line
(d) None of the above
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Answer: (d) None of the above

The planning process in the industrial sector in India has assumed a relatively less important position in the nineties as compared to that in the earlier period.

Which one of the following is true in this regard?

(a) With the advent of liberalisation, industrial investments/development have largely been placed within the domain of private and multinational sectors
(b) With markets assuming a central place, the role of central planning in many sectors has been rendered redundant
(c) The focus of planning has shifted to sectors like human resource development, infrastructure, population control and welfare
(d) The nation’s priorities have shifted away from industrial development to rural development
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Answer: (b) With markets assuming a central place, the role of central planning in many sectors has been rendered redundant

Consider the following statements: Small-scale industries are, in most cases, not as efficient and competitive as the large-scale ones. Yet the Government provides preferential treatment and reservations in a range of products to the small firms because small-scale industries I. Provide higher employment on a per unit capital deployment basis. II. Promote a regional dispersion of industries and economic activities. III. Have performed better in export of manufactured products than the large-scale ones. IV. Provide jobs to low skill workers, who otherwise may not find employment avenues elsewhere.

Which of the above statements are correct?

(a) I and IV
(b) I and II
(c) II and III
(d) III and IV
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Answer: (b) I and II

The main sources of credit to the farmers include

(a) the Primary Agricultural Cooperative Societies, commercial banks, RRBs and private moneylenders
(b) the NABARD, RBI, commercial banks and private moneylenders
(c) the District Central Cooperative Banks (DCCB), the lead banks, IRDP and JRY
(d) the Large-scale Multi-purpose Adivasis Programme, DCCB, IFFCO and commercial banks
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Answer: (a) the Primary Agricultural Cooperative Societies, commercial banks, RRBs and private moneylenders

Trans chart is the

(a) chartering wing of the Ministry of Surface Transport
(b) container service established by Indian Railways
(c) training institute of maritime studies and research
(d) passenger insurance scheme of Indian Railways
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Answer: (a) chartering wing of the Ministry of Surface Transport
This question uses a table or figure from the original paper that is not reproduced here.

The product life cycle from inception to demise is shown in the graph. Match List I with List II and select the correct answer using the codes given below the Lists:

List I (Stage) I. Product Development II. Maturity III. Growth IV. Introduction

List II (Zone) (1, 2, 3, 4 as marked in the graph) The original graph is not available for this question.

(a) I-A, II-D, III-B, IV-C
(b) I-A, II-D, III-C, IV-B
(c) I-D, II-A, III-B, IV-C
(d) I-D, II-A, III-C, IV-B
Show answer
Answer: (b) I-A, II-D, III-C, IV-B
This question uses a table or figure from the original paper that is not reproduced here.

Which one of the following is the objective of National Renewal Fund?

(a) To safeguard the interests of workers who may be affected by technological upgradation of industry or closure of sick units
(b) To develop the core sector of the economy
(c) For the development of infrastructure such as energy, transport, communications and irrigation
(d) For human resource development such as full literacy, employment, population control, housing and drinking water
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Answer: (a) To safeguard the interests of workers who may be affected by technological upgradation of industry or closure of sick units

Match List I with List II

and select the correct answer using the codes given below the Lists:

List I I. WTO II. IDA III. IMF IV. IBRD

List II A) Provides loans to address short-term balance of payment problems B) Multi-lateral trade negotiation body C) Sanction of soft loans D) Facilitating lending and borrowings for reconstruction and development

(a) I-B, II-C, III-D, IV-A
(b) I-B, II-C, III-A, IV-D
(c) I-C, II-B, III-D, IV-A
(d) I-C, II-B, III-A, IV-D
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Answer: (b) I-B, II-C, III-A, IV-D

Since 1980, the share of the tertiary sector in the total GDP of India has

(a) shown an increasing trend
(b) shown a decreasing trend
(c) remained constant
(d) been fluctuating
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Answer: (a) shown an increasing trend

Assertion (A): Devaluation of a currency may promote export.

Reason (R): Price of the country's products in the international market may fall due to devaluation.

(a) Both A and R are true, and R is the correct explanation of A
(b) Both A and R are true, but R is not a correct explanation of A
(c) A is true, but R is false
(d) A is false, but R is true
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Answer: (a) Both A and R are true, and R is the correct explanation of A

Assertion (A): Fiscal deficit is greater than budgetary deficit.

Reason (R): Fiscal deficit is the borrowings from the Reserve Bank of India plus other liabilities of the Government to meet its expenditure.

(a) Both A and R are true, and R is the correct explanation of A
(b) Both A and R are true, but R is not a correct explanation of A
(c) A is true, but R is false
(d) A is false, but R is true
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Answer: (a) Both A and R are true, and R is the correct explanation of A