UPSC 2001 › Indian Economy

25 questions · 2001 · answers as per the UPSC key

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Topics: National Income & Economic Growth (4)Agriculture & Rural Development (3)Fiscal Policy & Budget (3)Infrastructure & Industry (3)International Institutions & Reports (3)Banking & Financial Sector (2)External Sector & Balance Of Payments (2)Human Development, Poverty & Employment Schemes (1)Inflation & Price Indices (1)International Trade & WTO (1)IT & Services Sector (1)Taxation (1)

Which of the following committees examined and suggested Financial Sector Reforms?

(a) Abid Hussain Committee
(b) Bhagwati Committee
(c) Chelliah Committee
(d) Narasimham Committee
Show answer
Answer: (d) Narasimham Committee

The new series of Wholesale Price Index (WPI) released by the Government of India is with reference to the base prices of

(a) 1981-82
(b) 1990-91
(c) 1993-94
(d) 1994-95
Show answer
Answer: (c) 1993-94

The theme of the World Development Report, 2001 is

(a) From Plan to Market
(b) Knowledge for Development
(c) Attacking Poverty
(d) The State in the Changing World
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Answer: (c) Attacking Poverty

The term National Income represents

(a) Gross National Product at market prices minus depreciation
(b) Gross National Product at market prices minus depreciation net factor income from abroad
(c) Gross National Product at market prices minus depreciation and indirect taxes subsidies
(d) Gross National Product at market prices minus net factor income from abroad
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Answer: (c) Gross National Product at market prices minus depreciation and indirect taxes subsidies

Assertion (A): There was an increase in industrial production during 1999-2000.

Reason (R): The period witnessed a stable exchange rate and improved business sentiments.

(a) Both A and R are individually true, and R is the correct explanation of A
(b) Both A and R are individually 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
Show answer
Answer: (a) Both A and R are individually true, and R is the correct explanation of A

Assertion (A): India's software exports increased at an average growth rate of 50% since 1995-96.

Reason (R): Indian software companies were cost-effective and maintained international quality.

(a) Both A and R are individually true, and R is the correct explanation of A
(b) Both A and R are individually 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
Show answer
Answer: (a) Both A and R are individually true, and R is the correct explanation of A

Assertion (A): Ceiling on foreign exchange for a host of current account transaction heads was lowered in the year 2000. Reason (R): There was a fall in foreign currency assets also.

(a) Both A and R are individually true, and R is the correct explanation of A
(b) Both A and R are individually 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
Show answer
Answer: (c) A is true, but R is false

The prices at which the Government purchases food grains for maintaining the public distribution system and for building up buffer stocks is known as

(a) minimum support prices
(b) procurement prices
(c) issue prices
(d) ceiling prices
Show answer
Answer: (b) procurement prices

Consider the following statements regarding power sector in India: I. The installed capacity of power generation is around 95000 MW. II. Nuclear plants contribute nearly 15% of total power generation. III. Hydroelectricity plants contribute nearly 40% of total power generation. IV. Thermal plants at present account for nearly 80% of total power generation.

Which of these statements is/are correct?

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

National Agriculture Insurance Scheme replacing Comprehensive Crop Insurance Scheme was introduced in the year

(a) 1997
(b) 1998
(c) 1999
(d) 2000
Show answer
Answer: (c) 1999

The annual agricultural production of a product for the period 1991-92 to 1998-99 is shown in the figure given above.

Which one of the following is the product in Q?

(a) Pulses
(b) Wheat
(c) Oilseeds
(d) Rice
Show answer
Answer: (d) Rice
This question uses a table or figure from the original paper that is not reproduced here.

Consider the following States: I. Gujarat II. Karnataka III. Maharashtra IV. Tamil Nadu

The descending order of these States with reference to their level of Per Capita Net State Domestic Product is

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

Consider the following: I. Market borrowing II. Treasury bills

III. Special securities issued to RBI

Which of these is/are component(s) of internal debt?

(a) I only
(b) I and II
(c) II only
(d) I, II and III
Show answer
Answer: (d) I, II and III

Consider the following statements regarding Reserve Bank of India: I. It is a banker to the Central Government. II. It formulates and administers monetary policy. III. It acts as an agent of the Government in respect of India’s membership of IMF. IV. It handles the borrowing programme of Government of India.

Which of these statements are correct?

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

Consider the following schemes launched by the Union Government: I. Antyodaya Anna II. Gram Sadak Yojana III. Sarvapriya IV. Jawahar Gram Samriddhi Yojana.

Which of these were announced in the year 2000?

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

Consider the following factors regarding an industry: I. Capital investments II. Business turnover III. Labour force IV. Power consumption

Which of these determine the nature and size of the industry?

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

The most appropriate measure of a country’s economic growth is its

(a) Gross Domestic Product
(b) Net Domestic Product
(c) Net National Product
(d) Per Capita Real Income
Show answer
Answer: (d) Per Capita Real Income

Match List I with List II

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

List I (Term) I. Fiscal deficit II. Budget deficit III. Revenue deficit IV. Primary deficit

List II (Explanation) A) Excess of Total Expenditure over Total Receipts B) Excess of Revenue Expenditure over Revenue Receipts C) Excess of Total Expenditure over Total Receipts less borrowings D) Excess of Total Expenditure over Total Receipts less borrowings and Interest Payments

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

Consider the following organisations:

I. International Bank for Reconstruction and Development II. International Finance Corporation III. International Fund for Agricultural Development IV. International Monetary Fund

Which of these are agencies of the United Nations?

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

The Union Budget, 2000 awarded a Tax Holiday for the North-eastern Region to promote industrialisation for

(a) 5 years
(b) 7 years
(c) 9 years
(d) 10 years
Show answer
Answer: (d) 10 years
UPSC 2001 · Q82 · Indian Economy › Taxation · Save

Consider the following taxes: I. Corporation tax II. Customs duty III. Wealth tax IV. Excise duty

Which of these is/are indirect taxes?

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

The largest share of Foreign Direct Investment (1997-2000) went to

(a) Food and food product sector
(b) Engineering sector
(c) Electronics and electric equipment sector
(d) Service sector
Show answer
Answer: (b) Engineering sector

Match List I with List II

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

List I (Publisher) I. Ministry of Industry II. Central Statistical Organisation III. Reserve Bank of India IV. Ministry of Finance

List II (Publication) A) Report on Currency and Finance B) Economic Survey C) Wholesale Price Index D) National Accounts Statistics

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

The earlier name of WTO was

(a) UNCTAD
(b) GATT
(c) UNIDO
(d) OECD
Show answer
Answer: (b) GATT

The following table shows the percentage change in the consumption of electricity by five towns P, Q, R, S, T from 1986 to 1988: Town Per cent change from 1986 to 1987 From 1987 to 1988 P +8 −18 Q +15 −11 R +6 +9 S −7 −5 T +13 −6 If town T consumed 500,000 units in 1986, how much did it consume in 1988?

(a) 371,000 units
(b) 531,100 units
(c) 551,100 units
(d) 571,100 units
Show answer
Answer: (b) 531,100 units
This question uses a table or figure from the original paper that is not reproduced here.