Concept Application and Fact for Prelims Day-27

This is the Day-27 questions of the CAF Revision plan for prelims. The questions are based on the syllabus as provided in the schedule. Aspirants are requested to go through the detailed CAF strategy to understand the need of the UPSC prelims and to prepare well for the same. Attempt the questions honestly. The link to key answers and explanations of this test is at the end of the questions. The maximum time to attempt the 18 questions is 25 minutes.

Q.1) Which of the following is/are used to check demand pull inflation?

  1. The goods in short supply are imported
  2. Interest on loans increased
  3. Wages revised

Choose the correct answers from the codes given below

(a) 1 and 2

(b) 1 and 3

(c) 2 and 3

(d) 1, 2 and 3

Q.2) A zero rate of Inflation obtains necessarily in a year where the annual rate of inflation

(a) in every week of the year is zero

(b) is falling in every week of the year

(c) is both falling and rising in a year

(d) is constant in every week of the year

Q.3) Inflation tends to reduce the share of labour in the GNP (Gross National Product) because

(a) Wages lag behind prices

(b) Prices lag behind wages

(c) Profits lag behind prices

(d) Profits lag behind wages

Q.4) Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)?

  1. It decides the RBI’s benchmark interest rates.
  2. It is a 12-member body including the Governor of RBI and is reconstituted every year.
  3. It functions under the chairmanship of the Union Finance Minister.

Select the correct answer using the code given below:

(a) 1 only

(b) 1 and 2 only

(c) 3 only

(d) 2 and 3 only

Q.5) Depression is one of the major economic problem a country may face. Which of the following is/are the traits of depression?

  1. an extremely low aggregate demand in the economy causes activities to decelerate.
  2. the inflation being comparatively higher.
  3. the employment avenues start shrinking forcing unemployment rate to grow fast.

Choose the correct answers from the codes given below

(a) 1 and 2

(b) 1 and 3

(c) 2 and 3

(d) 1, 2 and 3

Q.6) “A recession followed by a short-lived recovery, followed by another recession—the GDP growth sliding back to negative after a quarter or two of positive growth”. The above lines describe which of the following?

(a) double-dip recession

(b) growth recession

(c) stagflation

(d) Recession

Q.7) Consider the following in respect of ‘National Career Service’:

  1. National Career Service is an initiative of the Department of Personnel and Training, Government of India.
  2. National Career Service has been launched in a Mission Mode to improve the employment opportunities to uneducated youth of the country.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q.8) Pradhan Mantri MUDRA Yojana is aimed at

(a) Bringing the small entrepreneurs into formal financial system

(b) Providing loans to poor farmers for cultivating particular crops

(c) Providing pensions to old and destitute persons

(d) Funding the voluntary organization involved in the promotion of skill development and employment generation

Q.9) ‘Rashtriya Garima Abhiyaan’ is a national campaign to

(a) rehabilitate the homeless and destitute persons and provide then with suitable sources of livelihood

(b) release the sex workers from the practice and provide them with alternative sources of livelihood

(c) eradicate the practice of manual scavenging and rehabilitate the manual scavengers

(d) release the bonded labourers free their bondage and rehabilitate them

Q.10) Unemployment insurance will result in

(a) Maintenance of consumption level

(b) Decrease in consumption level

(c) Decrease in savings

(d) Increase in savings

Q.11) Which of the following is/are true of bonded labour?

  1. It is forced employment in consideration of an advance or interest payment.
  2. It is employment arising out of any customary or social or hereditary obligation or by reason of birth in any caste or community involved in pledging labour.
  3. It is for any economic consideration involving loss of freedom of contract leading to forced employment.

Choose the correct answer from the codes given below:

(a) 1, 2 and 3

(b) 1 and 2

(c) 1 and 3

(d)2 and 3

Q.12) Among the reasons for disguised unemployment in rural areas is

(a) Choice of a heavy industry model for economic development.

(b) Low levels of technological development in the country

(c) Heavy pressure of population along with half-hearted implementation of agrarian reforms

(d) High illiteracy rates

Q.13) The growth rate of which one of the following sectors has very low employment elasticity?

(a) Manufacturing

(b) Construction

(c) Financial services

(d) Mixed farming

Q.14) In context of the Indian economy, which of the following measures can be used to reduce inflation?

  1. Increasing Cash Reserve Ratio (CRR)
  2. Increasing Statutory Liquidity Ratio (SLR)
  3. Reducing fiscal deficit.
  4. Reducing Reverse Repo Rate.

Select the correct answer using the codes below:

a) 1 and 2 only

b) 3 and 4 only

c) 1, 2 and 3 only

d) 1, 2, 3 and 4

Q.15) Consider the following statements:

  1. Headline inflation excludes items that face volatile price movement, notably food and energy.
  2. Core inflation may not give an accurate picture of how an economy is behaving as it includes food and energy commodities.

Which of the statements given above is/are incorrect?

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

Q.16) ‘Operation Chakravyuh’ is about

(a) Tracing the activities of the youth who are in touch of terror operatives.

(b) Curbing the cross-border terrorism with the mix of technology and tradition.

(c) A military operation to ensure safety of Himalayas.

(d) A rescue operation of the Indian army in Yemen.

Q.17) Which of the following is the apex body for executive action on matters of national security?

(a) National Security Council

(b) Cabinet Committee on Security

(c) Strategic Policy Group

(d) National Security Council Secretariat

Q.18) Consider the following statements about Global Counterterrorism Forum (GCTF).

  1. It is a formal, political, multilateral counterterrorism (CT) platform.
  2. India is a founding member of GCTF.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) None

Q.19) Consider the following statements about Intergovernmental Panel on Climate Change (IPCC).

  1. World Economic Forum body for assessing the science related to climate change.
  2. It provides policymakers with regular scientific assessments concerning climate change.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) None

Q.20) Global Soil biodiversity Atlas is the product of joint venture between Global Soil Biodiversity Initiative and

(a) European Commission Joint Research Centre.

(b) World Economic Forum


(d) UN CBD

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