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UPSC IAS Prelims Exam 2016 Economic Survey 2015-16 Questions: STATE OF ECONOMY: AN OVERVIEW Set II

May 6, 2016 19:19 IST

    In the Civil Services IAS Exam, the questions of GS Indian Economy play a crucial role for the aspirants to crack the IAS Exam. In the past few years the relevance of questions based on Indian Economy has been increased in IAS Prelims Exam while there is always a greater possibility of asking many more questions. So, an aspirant should have to be prepared for such questions based on Indian Economy.

    Here, we have provided Multiple Choice Questions based on the Economic Survey 2015-16: STATE OF ECONOMY: AN OVERVIEW

    1. Consider the following statements

    1. In India in Gross Capital Formation (GCF) the share of private corporate sector is larger than household sector.
    2. GCF is investment made out of total GDP each year.

    Select the correct answer from the following codes

    a. Only 1
    b. Only 2
    c. Both 1 and 2
    d. Neither 1 nor 2

    Answer: b

    Explanation:The percentage of investment made each year out of total GDP is called GCF. The suggested rate of capital formation is above 40% to achieve optimum rate of economic growth, in India GCF is 35% for last few years. The share of Household sector has been significantly larger than private corporate sector.

    2. Which of the following is/are reasons of low tax to GDP ratio in India?

    1.  Low population of tax payers.
    2.  Under reported income.
    3. Only few sectors are imposed service tax.

    Select the correct answer from the following codes

    a. Only 1
    b. Only 1 and 2
    c. Only 2 and 3
    d. 1,2 and 3

    Answer: d

    Explanation: Low per capita income and high poverty are  key reasons for low populationof tax payers. Those who pay tax, either pay less due to exemptions or under report the income. Service tax was imposed late and imposed only on few sections.

    3. Which of the following is/are in support of fiscal consolidation?

    1.  Raising tax/GDP ratio.
    2. Optimising subsidies.
    3. Increased capital expenditure.

    Select the correct answer from the following codes

    a. Only 1
    b. Only 1 and 2
    c. Only 2 and 3
    d. 1,2 and 3

    Answer: d

    Explanation: Optimizing expenditure and raising revenue is the path leading to fiscal consolidation. Raising tax- GDP ratio, enhancing fiscal federalism, optimising subsidies are essential for fiscal consolidation.

    4. Which of the following is/are true regarding objective of JAM trinity?

    1. Increase poor’s access to benefits.
    2. Curbing leakage in subsidies.
    3.  Opening no frill bank accounts.

    Select the correct answer from the following codes

    a. Only 1
    b. Only 1 and 2
    c. Only 2 and 3
    d. 1,2 and 3

    Answer: b

    Explanation: JAM trinity is considered as its alternative to provide direct cash transfers to their saving account .  Jan dhan bank account will transfer money , thus broaden his choices regarding quantity and quality of food basket consumption.  Aadhar number helps in effective identification of beneficiaries , thus reducing duplication and exclusion of the needy sections.  Mobile integration would promote real time information about government policies and awareness about their entitlements

    5. Which of the following is/are internal debt of government?

    1. G-bonds
    2. T-bills
    3. Small saving

    Select the correct answer from the following codes

    a. Only 1
    b. Only 1 and 2
    c. Only 2 and 3
    d. 1,2 and 3

    Answer: d

    Explanation: Internal-debt includes Provident finds, small saving, government bonds, and market borrowings in form of treasury bills.

    6. Consider the following statements

    1. Majority of India’s public debt is in form of  internal debt.
    2. NRI deposits is included under internal debt.

    Select the correct answer from the following codes

    a. Only 1
    b. Only 2
    c. Both 1 and 2
    d. Neither 1 nor 2

    Answer: a

    Explanation: External debt  includes NRI deposits. 98% of India’s public debt is in form of internal debt.

    7. Which of the following is/are core infrastructure supportive industries?

    1. Civil aviation.
    2.  Power
    3.  Refinery products.

    Select the correct answer from the following codes

    a. Only 1
    b. Only 1 and 2
    c. Only 2 and 3
    d. 1,2 and 3

    Answer: a

    Explanation: The eight core infrastructure- supportive industries are coal, crude oil, natural gas, refining products, fertilizers, steel, cement and electricity. Major infrastructure sectors are power, road, railways, civil aviation, ports and telecommunication.

    8. Consider the following statements

    1. Labour force participation rate of women is lower in rural areas but higher in urban areas.
    2. In total employment share of informal employment is 90%.

    Select the correct answer from the following codes

    a. Only 1
    b. Only 2
    c. Both 1 and 2
    d. Neither 1 nor 2

    Answer: b

    Explanation: LFPR of women is lower in both rural and urban areas. To bring informal sector into compliance with system, the central and state government have initiated reforms in labour markets.

    9. Which of the following is/are initiatives for skill development?

    1. SSC
    2. STAR
    3. PMKVY

    Select the correct answer from the following codes

    a. Only 1
    b. Only 1 and 2
    c. Only 2 and 3
    d. 1,2 and 3

    Answer:  d

    Explanation: Multipronged policy approach to enable skill development are sector skill council(SSC), National skills qualification framework (NSQF), Standard training and assessment reward(STAR) and Pradhan mantri kaushal vikas yojana to offer industry relevant skill based training to Indian youth.

    10. Universal health coverage index is given by

    a. World bank
    b. World health organisation
    c. United nations organisation
    d. United nations development programme.

    Answer: a

    Explanation: World bank is other intergovernmental agency related to UN heavily involved in international health. Major health related international organisations are WHO, WB, UNICEF, UNDP.

    11. Consider the following statements

    1. Swachh bharat mission is concerned with construction of toilets.
    2. Rural water supply and sanitation project is supported  by world bank.

    Select the correct answer from the following codes

    a. Only 1
    b. Only 2
    c. Both 1 and 2
    d. Neither 1 nor 2

    Answer: c

    Explanation: More than 122 lakhs toilets have been constructed in rural areas since beginning of swachh bharat mission. In order to improve availability of drinking water programme initiated a new World Bank supported project named rural water supply and sanitation project- low income states.

    12. Which of the following reasons can be attributed for high rural poverty?

    1. Subsistence agriculture
    2. Rise in prices of food products
    3. Unemployment

    Select the correct answer from the following codes

    a. Only 1
    b. Only 1 and 2
    c. Only 2 and 3
    d. 1,2 and 3

    Answer: d

    Explanation: The high rural poverty can be attributed to lower farm incomes due to subsistence agricultural, lack of sustainable livelihoods in rural areas, impact of rise in prices of food products on rural incomes, lack of skills, under employment and unemployment.

    13. Which of the following is/are true about sustainable development goals (SDG)?

    1. It replaces milliennium development goals(MDG).
    2. It sets development agenda for same duration as MDG.
    3. It is independent of UNFCCC.

    Select the correct answer from the following codes

    a. Only 1
    b. Only 1 and 2
    c. Only 2 and 3
    c. 1,2 and 3

    Answer: d

    Explanation: United nation assembly (UNGA) in its 17th session announced a set of 17 SDGs. This set of goals replace MDGs. SDG is not binding like UNFCCC.

    14. With reference to Paris agreement, Which of the following is/are true ?

    1. It is mitigation centric.
    2. It provides binding obligation for developed countries to provide financial resources to developing countries.
    3. It encourage voluntary contribution from developing countries.

    Select the correct answer from the following codes

    a. Only 1
    b. Only 1 and 2
    c. Only 2 and 3
    d. 1,2 and 3

    Answer: c

    Explanation: Paris agreement is not mitigation centric and cover all crucial areas including adaptation, loss and damage, finance, technology, capacity building, and transparency of action and support. Statement 2 and 3 are correct.

    15. Which of the following climate change and sustainable development initiatives is/are on the Sidelines of UNFCCC?

    1. Intended nationally determined contribution (INDC)
    2. Paris declaration.
    3. International solar alliance (ISA)

    Select the correct answer from the following codes

    a. Only 1
    b. Only 1 and 2
    c. Only 2 and 3
    d. 1,2 and 3

    Answer: d

    Explanation: The principle of equity and common but differentiated responsibilities (BDR) of UNFCCC are recurring theme of INDC. International solar alliance (ISA) was launched by prime minister of India and president of France on the sidelines of 21st (COP) to UNFCCC.

    Click here for GS Economy Study Material

    DISCLAIMER: JPL and its affiliates shall have no liability for any views, thoughts and comments expressed on this article.

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