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31. Other things remaining constant, the market supply for a good increase

Other things remaining constant, the market supply for a good increases if:

its price increases.
price of its factors of production decreases.
price of other goods decreases.

Select the correct answer using the code given below:

1 and 2 only

1 and 3 only

2 and 3 only

1, 2 and 3

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The correct answer is C) 2 and 3 only.

Market supply increases when the supply curve shifts to the right. Let’s analyze the statements:
1. Its price increases: An increase in the price of the good leads to an increase in the quantity supplied, causing a movement *along* the supply curve, not a shift of the entire curve.
2. Price of its factors of production decreases: Lower input costs reduce the cost of production, making the good more profitable to produce at any given price. This leads to an increase in supply, shifting the supply curve to the right.
3. Price of other goods decreases: Assuming these are substitute goods in production (producers can produce either Good A or Good B), a decrease in the price of Good B makes producing Good A relatively more profitable. Producers will shift resources towards producing Good A, increasing its supply (shifting the supply curve right).
Therefore, statements 2 and 3 describe factors that cause the market supply curve to shift to the right, indicating an increase in market supply.

Factors that can cause a shift in the supply curve include changes in input prices, technology, prices of related goods (substitutes or complements in production), expectations, government policies (taxes, subsidies), and the number of sellers. A change in the good’s own price causes only a movement along the supply curve, changing the quantity supplied.

32. SDG India Index, developed by NITI Aayog, includes 17 SDGs for each St

SDG India Index, developed by NITI Aayog, includes 17 SDGs for each State. Which one of the following is *not* included in that index?

Zero hunger

Reduced unemployment

Life below water

Responsible consumption and production

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The correct answer is C) Life below water.

The SDG India Index developed by NITI Aayog maps the progress of States and Union Territories against the 17 Sustainable Development Goals (SDGs). While most of the 17 global goals are included, some goals like SDG 14 (Life Below Water) and SDG 15 (Life on Land) are often difficult to measure comprehensively at the sub-national level across all states, especially for landlocked states, and are therefore typically not fully included or measured with limited indicators in the main index. The other goals listed (Zero hunger, Reduced unemployment – covered under Decent Work and Economic Growth, Responsible consumption and production) are generally included in the index framework.

The SDG India Index is a tool to monitor the progress of states and UTs on the SDGs and promote competitive federalism. Different editions of the index might refine the indicators and inclusion of goals based on data availability and relevance. However, SDG 14 is a goal with limited direct relevance and data availability across all Indian states, making its comprehensive inclusion challenging.

33. What would be the impact on the economy if people start holding more c

What would be the impact on the economy if people start holding more currency in hand and less in deposits ?

Money demand will increase

Money multiplier will decrease

Money multiplier will increase

Money demand will decrease

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The correct answer is B) Money multiplier will decrease.

When people hold more currency in hand and less in deposits, the currency-deposit ratio increases. The money multiplier, which determines the total money supply in the economy based on the monetary base, is inversely related to the currency-deposit ratio. Specifically, the simple money multiplier formula is (1+c)/(c+r), where c is the currency-deposit ratio and r is the reserve-deposit ratio. An increase in ‘c’ directly reduces the value of the money multiplier.

A higher currency-deposit ratio means that for every unit of reserves held by banks, a smaller amount of deposits can be supported, and less money can be created through the banking system’s lending process. This leads to a contraction in the potential money supply multiplier effect. While an increased preference for holding currency might reflect a change in the form of money demanded, the most direct and certain impact described is on the money multiplier.

34. The Wholesale Price Inflation has increased in India during 2021 – 202

The Wholesale Price Inflation has increased in India during 2021 – 2022 due to which of the following factors ?

1. Sharp increase in international prices of crude oil
2. Decrease in economic activity post-Covid
3. Disruption of global supply chain
4. High freight cost

Select the correct answer using the code given below :

2 and 3 only

1, 3 and 4

1 and 2 only

1 and 4 only

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The factors that contributed to the increase in Wholesale Price Inflation (WPI) in India during 2021-2022 are 1, 3, and 4.

1. **Sharp increase in international prices of crude oil**: Correct. Global energy prices, especially crude oil, saw a significant surge in 2021-2022 due to recovering demand post-pandemic and later amplified by geopolitical tensions (like the Russia-Ukraine conflict which intensified in early 2022). Since crude oil and petroleum products have a high weight in the WPI index and affect costs across various sectors (transportation, manufacturing inputs), this was a major driver of inflation.
2. **Decrease in economic activity post-Covid**: Incorrect. Economic activity in India was recovering significantly in 2021-2022 from the depths of the pandemic-induced slowdown. Increased economic activity typically contributes to demand-side inflation, though WPI is more cost-driven. A decrease in activity would likely dampen inflation.
3. **Disruption of global supply chain**: Correct. The COVID-19 pandemic caused widespread disruptions in global supply chains, leading to shortages of components and finished goods. This mismatch between supply and demand pushed up input costs for producers, directly contributing to higher WPI.
4. **High freight cost**: Correct. Global shipping and logistics costs increased substantially in 2021-2022 due to supply chain bottlenecks, port congestion, and increased fuel prices. Higher freight costs translate into higher landed costs for imported goods and higher transportation costs for domestic movement, adding to WPI.

WPI measures inflation at the wholesale level, reflecting changes in the prices of goods traded in bulk. It is heavily influenced by input costs, including raw materials, energy, and transportation. In 2021-22, WPI inflation remained in double digits for many months, driven primarily by supply-side factors and rising global commodity prices.

35. Which one of the following expenditures is subtracted from Fiscal Defi

Which one of the following expenditures is subtracted from Fiscal Deficit to arrive at Primary Deficit ?

Defence expenditure

Expenditure on subsidies

Interest payments

Pension

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Interest payments are subtracted from Fiscal Deficit to arrive at Primary Deficit.

Fiscal Deficit is the difference between the government’s total expenditure and its total receipts (excluding borrowings). It indicates the total borrowing requirement of the government.
Primary Deficit is defined as Fiscal Deficit minus Interest Payments on previous borrowings.
Primary Deficit = Fiscal Deficit – Interest Payments
The primary deficit shows the borrowing requirement of the government excluding the interest burden on accumulated past debt. It reflects the current fiscal stance of the government.

A high primary deficit indicates the extent of fiscal profligacy in the current year, whereas a high fiscal deficit might be due to the interest burden on past debt even if the current year’s primary deficit is low or zero. Reducing interest payments is a key objective for fiscal consolidation, which can be achieved by reducing overall borrowing (and thus the fiscal deficit) over time.

36. Consider the following statements about clouds : 1. Two major forms

Consider the following statements about clouds :

1. Two major forms of clouds are stratiform and cumuliform.
2. According to the altitude, clouds are classified as high clouds, middle clouds and low clouds.
3. Stratus, nimbostratus and stratocumulus are types of high clouds.
4. Clouds having nimbo attached to their name produce precipitation.

Which of the statements given above are correct ?

1 and 2 only

1, 2 and 4

2 and 4 only

1, 3 and 4

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The correct statements are 1, 2, and 4.

Statement 1 is correct. Clouds are broadly classified based on their form into stratiform (layered or sheet-like) and cumuliform (piled, lumpy, or puffy). Other forms include cirriform (wispy or fibrous) and nimbiform (rain-bearing).
Statement 2 is correct. Clouds are also classified by altitude into three main levels: High clouds (base typically above 6 km), Middle clouds (base between 2 and 6 km), and Low clouds (base below 2 km). There is also vertical development clouds (like Cumulonimbus) that span multiple levels.
Statement 3 is incorrect. Stratus, nimbostratus, and stratocumulus are classified as low clouds (base below 2 km). High clouds include Cirrus, Cirrocumulus, and Cirrostratus.
Statement 4 is correct. The prefix “nimbo-” or suffix “-nimbus” is used to indicate clouds that produce precipitation. Nimbostratus and Cumulonimbus are the primary rain-bearing clouds.

The ten basic cloud genera recognized by the World Meteorological Organization (WMO) are Cirrus, Cirrocumulus, Cirrostratus (High), Altocumulus, Altostratus (Middle), Stratus, Cumulus, Stratocumulus, Nimbostratus (Low), and Cumulonimbus (Vertical).

38. Which one among the following State capitals is closest to the Equator

Which one among the following State capitals is closest to the Equator ?

Hyderabad

Bhubaneswar

Panaji

Mumbai

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Panaji is the State capital closest to the Equator.

The Equator is located at 0 degrees latitude. To find the closest state capital, we need to compare their latitudes. All the given capitals are in the Northern Hemisphere.
– Hyderabad (Telangana): approximately 17.4° N
– Bhubaneswar (Odisha): approximately 20.3° N
– Panaji (Goa): approximately 15.3° N
– Mumbai (Maharashtra): approximately 19.1° N
Comparing the absolute values of the latitudes, Panaji (15.3° N) has the lowest latitude among the given options, making it the closest to the Equator.

Cities closer to the Equator generally experience higher average temperatures and less variation in daylight hours throughout the year compared to cities further north or south. The southern tip of India is closer to the Equator than any of these capitals.

39. Identify the type of soil on the basis of given characteristics : 1.

Identify the type of soil on the basis of given characteristics :

1. They contain a large proportion of sodium, potassium and magnesium, and thus, they are infertile.
2. Their structure ranges from sandy to loamy.
3. They are more widespread in western Gujarat, deltas of the eastern coast and in Sunderban areas of West Bengal.

Peaty soil

Laterite soil

Arid soil

Saline soil

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The characteristics describe Saline soil.

The key characteristics point towards Saline soil:
1. High proportion of sodium, potassium, and magnesium salts makes them infertile for most crops.
2. Their texture can vary from sandy to loamy.
3. They are typically found in arid and semi-arid regions, areas with poor drainage, and coastal areas or deltas where seawater intrusion occurs or where salts accumulate due to capillary action and evaporation. Western Gujarat, deltas of the eastern coast (like Godavari, Krishna, Cauvery deltas), and the Sunderban areas of West Bengal are all regions known to have issues with soil salinity.

Saline soils are also known as Solonchaks or “Usar” soils in some local Indian contexts. They are often formed due to factors like arid climate, poor irrigation management (leading to salt accumulation from irrigation water), poor drainage, and tidal influences in coastal areas. Reclamation of saline soils often involves improving drainage and leaching out the salts.

40. Which one of the following pairs of events and years is not correctly

Which one of the following pairs of events and years is not correctly matched ?

Launch of the first communications satellite : 1962

Completion of a continuous around the world fibre-optic cable link : 1997

Creation of the SWIFT system for worldwide electronic interbank fund transfer : 1977

Introduction of the World Wide Web (www) : 1995

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The pair that is not correctly matched is D) Introduction of the World Wide Web (www) : 1995.

A) Launch of the first communications satellite : 1962. Telstar 1, the first active communications satellite, was launched in 1962. This pair is correctly matched.
B) Completion of a continuous around the world fibre-optic cable link : 1997. Major projects like the Fiber-Optic Link Around the Globe (FLAG) connecting continents were becoming operational around this time (FLAG was completed in 1997). This pair is correctly matched.
C) Creation of the SWIFT system for worldwide electronic interbank fund transfer : 1977. The Society for Worldwide Interbank Financial Telecommunication (SWIFT) was founded in 1973 and started its messaging services for live payments in 1977. This pair is correctly matched.
D) Introduction of the World Wide Web (www) : 1995. The World Wide Web was invented by Tim Berners-Lee at CERN in 1989 and was released to the public in 1991. While the public adoption grew rapidly in the mid-1990s with browsers like Netscape, 1995 is not the year of its introduction.

The first web server was live in 1990, and the first web page was created in 1991. A significant event was CERN’s announcement in April 1993 that the WWW technology would be freely available to everyone, which spurred its widespread adoption.