UPSC 2000 › Indian Economy

21 questions · 2000 · answers as per the UPSC key

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Topics: Human Development, Poverty & Employment Schemes (5)National Income & Economic Growth (4)External Sector & Balance Of Payments (2)Financial Markets & Capital Markets (2)Infrastructure & Industry (2)International Institutions & Reports (2)Agriculture & Rural Development (1)Banking & Financial Sector (1)International Trade & WTO (1)Taxation (1)

Match List I with List II

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

List I I. Development Programme II. National Council of Applied Economic Research III. Indira Gandhi Institute of Development Research IV. World Bank

List II A) UN India Human Development Report B) India Development Report C) World Development Report D) Human Development Report

Codes:

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

“...instil into the vast millions of workers, men and women, who actually do the job, a sense of partnership and of cooperative performance....” The above passage relates to

(a) Planned Development
(b) Community Development
(c) Panchayati Raj System
(d) Integrated Development Programme
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Answer: (b) Community Development
UPSC 2000 · Q7 · Indian Economy › Taxation · Save

The Standing Committee of State Finance Ministers recommended in January 2000 uniform rates across the States in respect of

(a) value-added tax
(b) sales tax
(c) stamp duty and registration fees
(d) agricultural income tax
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Answer: (b) sales tax

Indian Human Development Report does not give for each sample village

(a) Infrastructure and Amenities Index
(b) Education Related Index
(c) Health Related Index
(d) Unemployment Related Index
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Answer: (d) Unemployment Related Index

Economic liberalisation in India started with

(a) substantial changes in industrial licensing policy
(b) the convertibility of Indian rupee
(c) doing away with procedural formalities for foreign direct investment
(d) significant reduction in tax rates
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Answer: (a) substantial changes in industrial licensing policy

Gilt-edged market means

(a) bullion market
(b) market of Government securities
(c) market of guns
(d) market of pure metals
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Answer: (b) market of Government securities

The Swarna Jayanti Shahari Rozgar Yojana which came into operation from 1 December 1997 aims to provide gainful employment to the urban unemployed or underemployed poor but does not include

(a) Nehru Rozgar Yojana
(b) Urban Basic Services Programme
(c) Prime Minister’s Integrated Urban Poverty Eradication Programme
(d) Prime Minister’s Rozgar Yojana
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Answer: (d) Prime Minister’s Rozgar Yojana

Consider the following statements: The Indian rupee is fully convertible

I. In respect of Current Account of Balance of Payment. II. In respect of Capital Account of Balance of Payment. III. Into gold.

Which of these statements is/are correct?

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

Resurgent India Bonds were issued in US Dollar, Pound Sterling and

(a) Japanese Yen
(b) Deutsche Mark
(c) Euro
(d) French Franc
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Answer: (b) Deutsche Mark

Consider the following statements: The Ministerial Meeting of the WTO held in December 1999 was unsuccessful because it attempted to link trade with

  1. Labour related issues.
  2. Environment related issues.
  3. Terrorism related issues.
  4. Debt related issues.

Which of these statements are correct?

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

The growth rate of per capita income at current prices is higher than that of per capita income at constant prices, because the latter takes into account the rate of

(a) growth of population
(b) increase in price level
(c) growth of money supply
(d) increase in the wage rate
Show answer
Answer: (b) increase in price level

The first Indian State to have its Human Development Report prepared and released by Amartya Kumar Sen in Delhi is

(a) West Bengal
(b) Kerala
(c) Madhya Pradesh
(d) Andhra Pradesh
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Answer: (c) Madhya Pradesh

A rise in ‘SENSEX’ means

(a) a rise in prices of shares of all companies registered with Bombay Stock Exchange
(b) a rise in prices of shares of all companies registered with National Stock Exchange
(c) an overall rise in prices of shares of group of companies registered with Bombay Stock Exchange
(d) a rise in prices of shares of all companies belonging to a group of companies registered with Bombay Stock Exchange
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Answer: (c) an overall rise in prices of shares of group of companies registered with Bombay Stock Exchange

The new Gross Domestic Product (GDP) series released by the Central Statistical Organisation (CSO) in February 1999 is with reference to base price of

(a) 1991-92
(b) 1992-93
(c) 1993-94
(d) 1994-95
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Answer: (c) 1993-94

Match List I with List II

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

List I (Industrial Unit) I. Atlas Cycle Company Ltd. II. Bharat Earth Movers Ltd. III. Indian Farmers Fertilisers Cooperative Ltd. IV. National Aluminium Company Ltd.

List II (Centre) A) Bangalore B) Bhubaneswar C) Kalol D) Sonepat

Codes:

(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: (d) I-D, II-A, III-C, IV-B

Match List I with List II

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

List I I. Boom II. Recession III. Depression IV. Recovery

List II A) Business activity at high level with increasing income, output and employment at macro level B) Gradual fall of income, output and employment with business activity in a low gear C) Unprecedented level of under employment and unemployment, drastic fall in income, output and employment D) Steady rise in the general level of prices, income, output and employment

Codes:

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

Which one of the following statements is false?

(a) All countries other than India have over 80% literacy
(b) Malaysia and Korea have life expectancy higher than all other countries
(c) Higher the adult literacy lower is the infant mortality
(d) The life expectancy at birth in India is almost the same as that of Indonesia
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Answer: (c) Higher the adult literacy lower is the infant mortality

The best performance in terms of Human Development among the Asian countries is by

(a) China
(b) Malaysia
(c) Korea
(d) Philippines
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Answer: (c) Korea

Which one of the following countries occupies the first place in the “Global Competitive Report” of World Economic Forum?

(a) USA
(b) Singapore
(c) Hong Kong
(d) France
Show answer
Answer: (b) Singapore

Assertion (A): The rate of growth of India’s exports has shown an appreciable increase after 1991.

Reason (R): The Government of India has resorted 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: (b) Both A and R are true, but R is not a correct explanation of A

In an open economy, the national income (Y) of the economy is: (C, I, G, X, M stand for Consumption, Investment, Government Expenditure, total exports and total imports respectively.)

(a) Y = C + I + G + X
(b) Y = C + I + G – X + M
(c) Y = C + I + G + (X – M)
(d) Y = C + I – G + X – M
Show answer
Answer: (c) Y = C + I + G + (X – M)