UPSC CDS-1 Archives

1. Which one of the following statements regarding GST is not correct?

Which one of the following statements regarding GST is not correct?

Amendment 115 to the Constitution of India kept alcohol for human use and five petroleum products outside the ambit of GST.

Amendment 122 to the Constitution of India kept only alcohol for human use outside the ambit of GST.

Precious metals are taxed at a rate of 1% under GST.

Unworked diamond is taxed at a rate of 0.25%.

This question was previously asked in

UPSC CDS-1 – 2024

Download PDF Attempt Online

C) Precious metals are taxed at a rate of 1% under GST.

– Statement C is incorrect. Under the Goods and Services Tax (GST) regime in India, precious metals like gold, silver, and platinum are taxed at a rate of 3% on the value of the metal. There is an additional GST of 5% on the making charges of jewellery.
– Statement A refers to the 115th Constitution Amendment Bill, which was a previous attempt at introducing GST but did not pass. While it proposed keeping alcohol and certain petroleum products outside GST, referring to it as an enacted amendment is incorrect.
– Statement B refers to the 122nd Constitution Amendment Bill, which became the 101st Constitution Amendment Act, 2016, enabling GST. This Act explicitly kept alcohol for human consumption outside the ambit of GST. It also provided for five petroleum products (petrol, diesel, natural gas, ATF, crude oil) to be included in GST at a future date decided by the GST Council, effectively keeping them outside for the time being. So, stating *only* alcohol was kept out is incorrect.
– Statement D is correct. Unworked diamonds (rough diamonds) are taxed at a low rate of 0.25% under GST.

– The 101st Constitutional Amendment Act, 2016 introduced the GST framework in India. Alcohol for human consumption remains outside GST, subject to state excise duties. The five petroleum products are currently outside GST but can be brought in upon recommendation by the GST Council.

2. Which one of the following statements is not correct?

Which one of the following statements is not correct?

The market mechanism over-produces a good that generates positive externality.

A cap and trade of pollution permits can be used by the government to achieve the social optimum.

The optimal amount of subsidy in the case of an activity that produces a positive externality is the difference between the social benefit and the private benefit at the optimum.

Tragedy of Commons is an example of negative externality.

This question was previously asked in

UPSC CDS-1 – 2024

Download PDF Attempt Online

A) The market mechanism over-produces a good that generates positive externality.

– Statement A is incorrect. A positive externality occurs when an activity provides benefits to third parties not directly involved in the market transaction (e.g., vaccinations benefiting the whole community). In such cases, the social benefit (private benefit + external benefit) is greater than the private benefit considered by market actors. The market mechanism, only considering private benefits and costs, leads to an equilibrium quantity where private marginal benefit equals marginal cost, which is *less* than the socially optimal quantity where social marginal benefit equals marginal cost. Thus, the market *under-produces* goods with positive externalities.
– Statement B is correct. Cap and trade systems are used to control pollution (a negative externality) by setting a cap on total emissions and allowing firms to trade emission permits, leading to pollution reduction being achieved at the lowest cost, closer to the social optimum.
– Statement C is correct. The optimal subsidy for a positive externality is equal to the external benefit at the socially efficient level of output. This external benefit is the difference between the social benefit (including the externality) and the private benefit enjoyed by the consumer/producer.
– Statement D is correct. The Tragedy of the Commons is a classic example of a negative externality, where individuals’ rational self-interest leads to the depletion of a shared resource because the cost of resource degradation is borne by everyone (an external cost).

– Externalities represent market failures where the market price does not reflect the true social costs or benefits of an activity. Governments use various interventions (taxes, subsidies, regulations, market-based mechanisms like cap-and-trade) to address externalities and move towards a socially efficient outcome.

3. Which of the following statements is/are correct? Most of India’s re

Which of the following statements is/are correct?

Most of India’s reserves is held in the form of foreign currency.
There is no cost of holding foreign currency as reserves by a nation.

Select the correct answer using the code given below.

1 only

2 only

Both 1 and 2

Neither 1 nor 2

This question was previously asked in

UPSC CDS-1 – 2024

Download PDF Attempt Online

A) 1 only

– Statement 1 is correct. India’s foreign exchange reserves are composed of Foreign Currency Assets (FCA), Gold, Special Drawing Rights (SDRs), and Reserve Tranche Position (RTP) in the IMF. Foreign Currency Assets, held in major currencies, consistently form the largest component, typically accounting for over 90% of the total reserves.
– Statement 2 is incorrect. Holding foreign currency reserves incurs costs. These include the opportunity cost (the return that could have been earned if the funds were invested domestically or in higher-yield assets instead of low-yield reserves), potential losses due to exchange rate fluctuations (if the reserve currency depreciates), and administrative costs of managing the reserves.

– Foreign exchange reserves are crucial for managing exchange rate volatility, providing confidence to markets, and meeting balance of payments needs. However, maintaining excessively high levels can be costly due to the reasons mentioned in statement 2.

4. Which of the following statements is/are correct? A price index capt

Which of the following statements is/are correct?

A price index captures the change in the average price of a constant basket of commodities.
If the price index takes values 100, 110 and 121 in three consecutive years respectively, then the inflation rates in the 2nd and 3rd years are 10% and 21% respectively.

Select the correct answer using the code given below.

1 only

2 only

Both 1 and 2

Neither 1 nor 2

This question was previously asked in

UPSC CDS-1 – 2024

Download PDF Attempt Online

A) 1 only

– Statement 1 is correct. A price index (like the Consumer Price Index or CPI) is typically constructed to measure the average change over time in the prices of a constant basket of consumer goods and services. While the GDP deflator uses a changing basket, the statement refers to “a price index,” and indices using a constant basket are fundamental examples.
– Statement 2 is incorrect. The inflation rate in a given year is the percentage change in the price index compared to the *previous* year.
– Inflation rate in the 2nd year = [(Index in Year 2 – Index in Year 1) / Index in Year 1] * 100 = [(110 – 100) / 100] * 100 = 10%. This part is correct.
– Inflation rate in the 3rd year = [(Index in Year 3 – Index in Year 2) / Index in Year 2] * 100 = [(121 – 110) / 110] * 100 = (11 / 110) * 100 = 10%. The statement says 21%, which is incorrect. The 21% represents the cumulative increase from Year 1 to Year 3.

– The inflation rate calculation is a year-on-year percentage change. Cumulative percentage changes over multiple years are calculated differently.

5. Which of the following statements is/are correct? 1. GDP deflator ca

Which of the following statements is/are correct?

1. GDP deflator captures the average price of an unchanging basket of commodities that constitutes the GDP of the country.
2. GDP deflator can be used to measure the real GDP of the economy but not the inflation rate.

Select the correct answer using the code given below.

1 only

2 only

Both 1 and 2

Neither 1 nor 2

This question was previously asked in

UPSC CDS-1 – 2024

Download PDF Attempt Online

D) Neither 1 nor 2

– Statement 1 is incorrect. The GDP deflator is a price index that reflects the prices of all domestically produced goods and services in GDP. It does *not* use an unchanging basket of commodities; the basket of goods and services included in the GDP changes year to year based on production patterns. This contrasts with indices like the Consumer Price Index (CPI), which uses a fixed basket.
– Statement 2 is incorrect. The GDP deflator is indeed used to calculate Real GDP from Nominal GDP (Real GDP = Nominal GDP / GDP Deflator * 100). However, it is also commonly used as a measure of the economy’s overall inflation rate. Inflation rate between two periods can be calculated from the percentage change in the GDP deflator.

– The GDP deflator is a Paasche index because it uses the current year’s quantities of goods and services as weights, reflecting changes in the composition of output. The CPI is a Laspeyres index as it uses a base year’s quantities as weights.

6. When eggs are heated, the transparent liquid portion around yolk turns

When eggs are heated, the transparent liquid portion around yolk turns solid white. This happens due to the thermal denaturation of

fats

proteins

ribose sugar

carbohydrates

This question was previously asked in

UPSC CDS-1 – 2024

Download PDF Attempt Online

B) proteins

– The transparent liquid portion of an egg white primarily consists of proteins, particularly albumen.
– When heat is applied, the proteins undergo a process called denaturation, where their complex structures unfold.
– This unfolding causes the proteins to aggregate and coagulate, transforming the liquid egg white into a solid, opaque mass.
– Fats, ribose sugar, and carbohydrates are also present in eggs, but the solidification upon heating is specifically due to the thermal denaturation of proteins.

– Denaturation is the loss of the three-dimensional structure of a protein or nucleic acid due to stress, such as heat, chemicals, or radiation. In the case of egg white, heat disrupts the bonds holding the protein structure together, leading to irreversible solidification.

7. Pulse is felt due to the rhythmic contraction and relaxation of the

Pulse is felt due to the rhythmic contraction and relaxation of the

chambers of heart

valves present in veins

aorta and main arteries

valves of heart

This question was previously asked in

UPSC CDS-1 – 2024

Download PDF Attempt Online

The correct option is C) aorta and main arteries.

The pulse felt in arteries is the physical manifestation of the pressure wave generated by the left ventricle’s contraction (systole), which pumps blood into the aorta. This pressure wave travels rapidly along the elastic walls of the aorta and its arterial branches. The expansion and recoil of the artery walls in response to this pressure wave are what we feel as the pulse. It is most readily felt in superficial arteries like the radial artery, carotid artery, or femoral artery.

The rhythmic contraction and relaxation of the heart chambers pump blood, but the pulse is a phenomenon of the arterial system’s response to the ejection of blood under pressure. Heart valves ensure unidirectional flow within the heart and between the heart and the great vessels but do not create the palpable pulse wave in the arteries. Veins carry blood back to the heart under lower pressure and do not exhibit a significant pulse in healthy individuals.

8. From which among the following are blood clotting factors released?

From which among the following are blood clotting factors released?

RBCs

Eosinophils

Platelets

Monocytes

This question was previously asked in

UPSC CDS-1 – 2024

Download PDF Attempt Online

The correct option is C) Platelets.

While most blood clotting factors are proteins produced in the liver and circulated in the plasma, platelets (thrombocytes) play a critical role in initiating and facilitating the coagulation cascade at the site of injury. When a blood vessel is damaged, platelets adhere to the damaged endothelium, aggregate to form a plug, and release various substances, including platelet factors (like platelet factor 3/tissue factor), that are essential for activating and accelerating the steps of the clotting cascade.

The clotting cascade is a complex process involving numerous protein factors (Factor I to Factor XIII, and others like tissue factor). Platelets provide a negatively charged surface (via exposed phospholipids) that is crucial for the assembly and activation of several key clotting factor complexes, significantly enhancing the efficiency of clot formation.

9. The causal organism of dengue fever is a mosquito-borne virus which be

The causal organism of dengue fever is a mosquito-borne virus which belongs to which one among the following categories?

Flavi-ribo virus

Adenovirus

Vaccinia virus

Nipah virus

This question was previously asked in

UPSC CDS-1 – 2024

Download PDF Attempt Online

The correct option is A) Flavi-ribo virus.

Dengue fever is caused by the dengue virus (DENV). DENV is a member of the genus *Flavivirus* within the family *Flaviviridae*. Flaviviruses are positive-sense single-stranded RNA viruses. The term “ribo-virus” is a general term for RNA viruses. Thus, “Flavi-ribo virus” is a descriptive categorization referring to the Flavivirus genus and its RNA nature, making option A the most appropriate choice among the given options. Adenoviruses and Vaccinia viruses are DNA viruses, and Nipah virus belongs to a different RNA virus family (Paramyxoviridae).

Flaviviruses are typically arthropod-borne viruses (arboviruses), transmitted by mosquitoes or ticks. Other well-known human pathogens in the Flavivirus genus include Yellow Fever virus, West Nile virus, Zika virus, and Japanese Encephalitis virus.

10. Which of the following were objectives of the G20 Summit, 2023 under I

Which of the following were objectives of the G20 Summit, 2023 under India’s Presidency?

1. Green development
2. Accelerating progress on SDGs
3. Women-led development

Select the correct answer using the code given below.

1 and 2 only

2 and 3 only

1, 2 and 3

1 and 3 only

This question was previously asked in

UPSC CDS-1 – 2024

Download PDF Attempt Online

The correct option is C) 1, 2 and 3.

During its G20 Presidency in 2023, India outlined several key priorities. These explicitly included: Green Development, Accelerating progress on SDGs, and Women-led Development, among others like Digital Public Infrastructure and Multilateral Institutions. All three statements listed were indeed stated objectives or priorities of India’s G20 Presidency.

India’s theme for the G20 Presidency was “Vasudhaiva Kutumbakam” – “One Earth, One Family, One Future”, emphasizing unity and collective action towards global challenges. The priorities reflected this theme by focusing on sustainable development, inclusive growth, and empowering vulnerable populations.