2014 Archives

181. Which of the following statements regarding the residuary powers under

Which of the following statements regarding the residuary powers under the Constitution of India is/are correct ?

Residuary powers have been given to the Union Parliament
In the matter of residuary power, the Constitution of India follows the Constitution of Australia
Schedule 7 of the Constitution of India provides a list of residuary powers
The Government of India Act 1935 placed residuary powers in the hands of the Governor General

Select the correct answer using the code given below :

[amp_mcq option1=”1 and 3″ option2=”2 and 3″ option3=”1 and 4″ option4=”4 only” correct=”option3″]

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Statement 1 and statement 4 are correct. Statement 1 is correct because Article 248 of the Constitution of India vests residuary powers of legislation in the Union Parliament. Statement 4 is correct because Section 104 of the Government of India Act, 1935, placed residuary powers in the hands of the Governor General, who could decide whether a matter fell under federal or provincial legislative lists, or neither, and allocate power accordingly.

Residuary powers in India belong to the Union Parliament. India follows the Canadian model regarding residuary powers. The Government of India Act, 1935, placed these powers with the Governor General.

Statement 2 is incorrect because the Constitution of India follows the Canadian model regarding the distribution of residuary powers, not the Australian model. In Australia, residuary powers lie with the states. Statement 3 is incorrect; Schedule 7 of the Constitution lists the Union List, State List, and Concurrent List, but does not list residuary powers. Residuary powers pertain to subjects not enumerated in any of these lists.

182. As per the latest trade agreement in Bali of WTO, India and other deve

As per the latest trade agreement in Bali of WTO, India and other developing and under developed countries can launch food security programmes :

[amp_mcq option1=”forever without any penalty under WTO rules” option2=”till an alternative mechanism is developed” option3=”for four calendar years” option4=”only if subsidy component under such programmes is less than 10 per cent” correct=”option2″]

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At the WTO Ministerial Conference in Bali in December 2013, an agreement was reached on public stockholding programs for food security. Developing countries like India faced challenges with exceeding the permitted levels of trade-distorting subsidies under existing WTO rules when procuring food grains at minimum support prices (MSPs) for public distribution. The Bali agreement included a “peace clause” which allowed developing countries to continue these programs without being challenged legally under WTO rules, even if they exceeded the agreed subsidy limits, *until a permanent solution is found and adopted*. This “until” clause is captured by option B.

– WTO Agreement: Bali Ministerial Conference, 2013.
– Issue: Public stockholding programs for food security in developing countries.
– Outcome: ‘Peace Clause’ allowing continuation of programs despite potential breaches of subsidy limits.
– Duration: Temporary initially, until a permanent solution is agreed upon (later made indefinite).

The peace clause required countries to notify the WTO about their stockholding programs and provide data on procurement, subsidies, and distribution. The search for a permanent solution to this issue continued after Bali. At the Nairobi Ministerial Conference in 2015, the peace clause was extended indefinitely, meaning countries can continue using the peace clause protection until a permanent solution is found. Option B accurately reflects the condition under which the programs were allowed to continue based on the Bali agreement and the subsequent understanding.

183. Which one among the following explains the meaning of the ‘Safety Valv

Which one among the following explains the meaning of the ‘Safety Valve Theory’ in the context of Indian National Movement ?

[amp_mcq option1=”A theory that argued that the Congress was formed as a safe outlet to the discontented educated Indians” option2=”A theory that argued that the Congress was formed as a safe outlet to the hostile attitude of the British towards the Indian people” option3=”A theory which believed that the British and the ex-rebels of 1857 should amicably resolve their differences against each other” option4=”An idea aimed at promoting goodwill among the Indian people” correct=”option1″]

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The ‘Safety Valve Theory’ is a historical interpretation of the formation of the Indian National Congress. This theory suggests that the Congress was founded by A.O. Hume, a retired British ICS officer, with the tacit approval of the then Viceroy, Lord Dufferin, to provide a safe, constitutional outlet for the growing discontent and nationalist feelings among educated Indians. The aim was to prevent a potential violent uprising, similar to the Mutiny of 1857, by allowing Indians to voice their grievances through an organized platform under British supervision. Option A accurately reflects this theory.

– Propounders: Often attributed to Lala Lajpat Rai (though he presented it as a critique) and later elaborated by historians like R. Palme Dutt.
– Core Idea: Congress was formed to channel nationalist aspirations peacefully, preventing a rebellion.
– Key figures: A.O. Hume, Lord Dufferin.

While the Safety Valve Theory was a prominent interpretation for a long time, many modern historians argue that the formation of Congress was more complex and involved genuine efforts by Indian nationalists to create an all-India political organization. They contend that while Hume might have had his own motives and the British initially viewed Congress favorably, the organization quickly developed into a platform for genuine nationalist struggle.

184. Which of the following statements related to Money Bills is not correc

Which of the following statements related to Money Bills is not correct ?

[amp_mcq option1=”It cannot be introduced in the Council of States” option2=”If any question arises whether the Bill is Money Bill or not, the decision of the Speaker is final” option3=”In case of deadlock over a Money Bill, the President can summon a joint sitting of the Parliament” option4=”A Money Bill cannot be introduced except on the recommendation of the President” correct=”option3″]

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Statement A is correct: A Money Bill can only be introduced in the Lok Sabha (Article 109(1)).
Statement B is correct: If any question arises whether a Bill is a Money Bill or not, the decision of the Speaker of the Lok Sabha is final (Article 110(3)).
Statement D is correct: A Money Bill cannot be introduced except on the recommendation of the President (Article 117(1)).
Statement C is incorrect: There is no provision for a joint sitting of Parliament in case of a deadlock over a Money Bill. The Rajya Sabha has limited powers regarding Money Bills; it can only suggest amendments and must return the bill within 14 days. If it does not return the bill within 14 days or if its recommended amendments are not accepted by the Lok Sabha, the Bill is deemed to have been passed by both Houses in the form it was passed by the Lok Sabha (Article 109). Therefore, a deadlock as understood for ordinary bills cannot occur with a Money Bill.

– Introduction: Only in Lok Sabha, on President’s recommendation.
– Speaker’s decision: Final on whether a bill is a Money Bill.
– Rajya Sabha powers: Restricted, can only suggest amendments, must return within 14 days.
– Joint Sitting: Not possible for Money Bills.

Article 110 of the Constitution defines a Money Bill. It contains only provisions dealing with matters listed in Article 110(1), such as the imposition or abolition of taxes, regulation of the borrowing of money by the government, the Consolidated Fund or the Contingency Fund of India, etc. The Rajya Sabha’s limited role in passing Money Bills is a reflection of the principle that the House directly elected by the people (Lok Sabha) has final authority over financial matters.

185. Recently Iran has clinched a deal with six world powers to curb nuclea

Recently Iran has clinched a deal with six world powers to curb nuclear activities. Which one among the following is not a party to it ?

[amp_mcq option1=”USA” option2=”France” option3=”Russia” option4=”Japan” correct=”option4″]

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Iran’s nuclear negotiations were primarily conducted with the P5+1 group, which consists of the five permanent members of the UN Security Council plus Germany. The P5 are China, France, Russia, the United Kingdom, and the United States. Germany is the “+1”. This group was involved in the Joint Plan of Action (JPOA) in 2013 and the subsequent Joint Comprehensive Plan of Action (JCPOA) in 2015. Japan is not a member of the P5+1 group and was not a direct party to these negotiations or the resulting agreements.

– Parties to the Iran nuclear deal (JPOA/JCPOA): Iran and the P5+1 group.
– P5+1 members: China, France, Russia, UK, USA + Germany.
– Role of Japan: Not a direct party to the negotiations.

The Joint Plan of Action (JPOA), an interim agreement, was signed in November 2013. It aimed to freeze key parts of Iran’s nuclear program in exchange for partial sanctions relief while a long-term agreement was negotiated. The Joint Comprehensive Plan of Action (JCPOA), the comprehensive agreement, was reached in July 2015.

186. Which one among the following was not a provision of the Regulating Ac

Which one among the following was not a provision of the Regulating Act of 1773 ?

[amp_mcq option1=”It introduced Parliamentary supervision over the East India Company” option2=”The Government of Bengal was vested in a Governor General and the Council of four members” option3=”It changed the power of vote in the Court of Proprietors by removing all restrictions on qualifications” option4=”The Governor General was vested with a casting vote” correct=”option3″]

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The Regulating Act of 1773 was the first step by the British Parliament to regulate the affairs of the East India Company in India, thereby introducing parliamentary supervision (A). It reorganized the administration in Bengal by appointing a Governor-General (Warren Hastings) and a Council of four members (B). The Act also granted the Governor-General a casting vote in case of a tie in the Council (D). However, concerning the Court of Proprietors (shareholders of the Company), the Act *raised* the voting qualification from £500 to £1000 shareholding, effectively *restricting* the franchise and reducing the number of eligible voters, rather than removing restrictions (C).

– Key provisions of Regulating Act 1773: Governor-General of Bengal with a Council, casting vote for Governor-General, establishment of Supreme Court in Calcutta, ban on private trade by company servants, raising voting qualification for Court of Proprietors.
– Aim: To control and regulate the affairs of the East India Company.

The Regulating Act was a response to the financial difficulties of the East India Company and the growing concerns in Britain about its misrule and corruption. While it attempted to bring some order and accountability, it had several drawbacks, such as the limited powers of the Governor-General and conflicts between the Supreme Court and the Council.

187. The issue whether a commitment made by a Minister on the floor of the

The issue whether a commitment made by a Minister on the floor of the House has been fulfilled or not is decided by the :

[amp_mcq option1=”Concerned Departmentally Related Committee” option2=”Business Advisory Committee” option3=”Committee on Public Assurances” option4=”Political Affairs Committee of the Union Cabinet” correct=”option3″]

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The Committee on Public Assurances (or Committee on Government Assurances) is a parliamentary committee constituted in both the Lok Sabha and the Rajya Sabha. Its specific function is to scrutinize the assurances, promises, undertakings, etc., given by Ministers in the Houses from time to time and to report on the extent to which such assurances have been implemented. They examine whether the government has fulfilled the commitments made on the floor of the House within a reasonable time frame.

– Function of the Committee on Public Assurances: Monitor the implementation of assurances/promises made by Ministers in Parliament.
– Composition: Members from the respective House (Lok Sabha or Rajya Sabha).
– Reporting: Reports to the House on the status of implementation.

Departmentally Related Standing Committees examine Bills, budgets, and policies related to specific ministries. The Business Advisory Committee allocates time for discussion of government business. The Political Affairs Committee is an informal high-level body within the Union Cabinet that deals with major policy issues. None of these are specifically tasked with following up on ministerial assurances made on the floor of the House; this is the dedicated role of the Committee on Public Assurances.

188. Recently a leading public sector bank of India has allowed withdrawal

Recently a leading public sector bank of India has allowed withdrawal of upto Rs. 1000 from any shop/trader with a point-of-sale (PoS) terminal. Identify the bank from below :

[amp_mcq option1=”Bank of Maharashtra” option2=”Punjab National Bank” option3=”State Bank of India” option4=”Bank of Baroda” correct=”option3″]

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In late 2013 and early 2014, State Bank of India (SBI) launched a pilot project allowing cash withdrawals of up to Rs 1000 at Point-of-Sale (PoS) terminals located at merchant outlets. This initiative aimed to extend basic banking services to areas with limited ATM penetration and promote the use of debit cards. While other banks might have explored similar options, SBI was a prominent public sector bank that initiated this specific service around that time.

– Initiative: Allowing cash withdrawal at PoS terminals in shops.
– Amount limit: Up to Rs 1000 (at the time).
– Bank involved: State Bank of India (SBI).
– Purpose: Enhance financial inclusion, increase card usage, provide cash access in underserved areas.

The service was often branded as ‘Cash@POS’. It was introduced by various banks and the National Payments Corporation of India (NPCI) to leverage the existing network of PoS terminals for providing cash, especially in semi-urban and rural areas where ATMs were scarce. RBI guidelines regulate such withdrawals.

190. The rate at which the consumer is willing to substitute one good for a

The rate at which the consumer is willing to substitute one good for another without changing the level of satisfaction is known as :

[amp_mcq option1=”Marginal rate of substitution” option2=”Marginal rate of technical substitution” option3=”Diminishing marginal utility” option4=”Equi-marginal utility” correct=”option1″]

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The rate at which a consumer is willing to substitute one good for another while maintaining the same level of utility or satisfaction is known as the Marginal Rate of Substitution (MRS). Graphically, it is the absolute slope of an indifference curve at any point.

– Marginal Rate of Substitution (MRS): Rate at which a consumer gives up one good for another to maintain constant utility.
– Marginal Rate of Technical Substitution (MRTS): Rate at which a firm substitutes one input for another to maintain constant output.
– Diminishing Marginal Utility: The concept that the additional utility gained from consuming one more unit of a good decreases as consumption increases.
– Equi-marginal utility: Condition for consumer equilibrium where the ratio of marginal utility to price is equal for all goods.

MRS is a core concept in consumer theory, helping to understand how consumers make choices between different bundles of goods based on their preferences, represented by indifference curves. As a consumer moves down an indifference curve, consuming more of one good and less of another, the MRS typically diminishes, reflecting the consumer’s increasing reluctance to give up the good they have less of for the good they have more of.