2015

11. The substitution of steel for wooden ploughs in agricultural productio

The substitution of steel for wooden ploughs in agricultural production is an example of

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labour-augmenting technological progress
capital-augmenting technological progress
capital-reducing technological progress
None of the above
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The correct option is B (capital-augmenting technological progress). The substitution of a steel plough for a wooden plough is an example of capital-augmenting technological progress.
– A plough is a form of physical capital used in agricultural production.
– Replacing a wooden plough with a steel plough implies an improvement in the efficiency, durability, or effectiveness of the capital good.
– Capital-augmenting technological progress makes capital more productive, meaning more output can be produced with the same amount of capital, or the same output with less capital (relative to labour), or it increases the effective amount of capital available. A stronger, more efficient steel plough allows for better tilling, potentially faster, requiring less effort to achieve the same result, or enabling tilling of harder soil, thus increasing the productivity derived from the capital input.
– Labour-augmenting technological progress increases the productivity of labour. While a better plough *might* allow a farmer to work faster or more effectively, the direct technological improvement is in the tool (capital), making the capital itself more productive.
– Capital-reducing technological progress is not a standard term in this context; the change here is about making capital *more* productive or effective, not necessarily reducing the absolute amount of capital used (though fewer trips might be needed, it’s primarily about enhanced capital productivity).
Technological progress can be classified based on how it affects the marginal productivity of labour and capital. Hicks-neutral technology leaves the ratio of marginal productivities unchanged. Harrod-neutral technology is labour-augmenting. Solow-neutral technology is capital-augmenting. In this specific example, the improvement in the plough enhances the productivity of the capital good itself.

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12. The ideal of ‘Welfare State’ in the Indian Constitution is enshrined i

The ideal of ‘Welfare State’ in the Indian Constitution is enshrined in its

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Preamble
Directive Principles of State Policy
Fundamental Rights
Seventh Schedule
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The correct option is B (Directive Principles of State Policy). The ideal of a ‘Welfare State’ in the Indian Constitution is primarily reflected in the Directive Principles of State Policy (DPSPs).
– The Preamble outlines the objectives of the Constitution, including securing justice (social, economic, political), equality, and fraternity, which contribute to the idea of a welfare state, but the DPSPs are more direct mandates to the state to achieve this ideal.
– Part IV of the Constitution, containing DPSPs (Articles 36-51), lays down principles that the State should follow in governance, aiming to create a social order in which justice, social, economic and political, shall inform all the institutions of national life. Examples include provisions related to securing adequate means of livelihood, preventing concentration of wealth, equal pay for equal work, right to work, education and public assistance, living wage, participation of workers in management, public health, etc.
– Fundamental Rights (Part III) are limitations on the state’s power and protect individual liberties, rather than directly enshrining the ideal of a welfare state.
– The Seventh Schedule deals with the distribution of legislative powers between the Union and States.
While DPSPs are not legally enforceable in courts, they are considered fundamental in the governance of the country and it is the duty of the State to apply these principles in making laws (Article 37). They serve as a moral compass for the government towards establishing a welfare state.

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13. Consider the following countries : 1. China 2. France 3. India 4.

Consider the following countries :

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  • 1. China
  • 2. France
  • 3. India
  • 4. Israel
  • 5. Pakistan

Which among the above are Nuclear Weapons States as recognized by the Treaty on the Non-Proliferation of Nuclear Weapons, commonly known as Nuclear Non-Proliferation Treaty (NPT)?

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1 and 2 only
1, 3, 4 and 5 only
2, 4 and 5 only
1, 2, 3, 4 and 5
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The correct option is A (1 and 2 only). Among the given countries, only China and France are recognized as Nuclear Weapons States (NWS) by the Treaty on the Non-Proliferation of Nuclear Weapons (NPT).
– The NPT defines a Nuclear-Weapon State as one which has manufactured and exploded a nuclear weapon or other nuclear explosive device prior to January 1, 1967.
– The five states recognized by the NPT as NWS are the United States, the Russian Federation, the United Kingdom, France, and China. These are also the five permanent members of the United Nations Security Council.
– India, Israel, and Pakistan possess nuclear weapons but are not signatories to the NPT as NWS. They are often referred to as de facto or non-NPT nuclear weapons states.
The NPT aims to prevent the spread of nuclear weapons and weapons technology, promote cooperation in the peaceful uses of nuclear energy, and further the goal of achieving nuclear disarmament. India, Pakistan, and Israel have not signed the NPT. North Korea signed but later withdrew from the treaty.

14. With reference to inflation in India, which of the following statement

With reference to inflation in India, which of the following statements is correct?

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Controlling the inflation in India is the responsibility of the Government of India only
The Reserve Bank of India has no role in controlling the inflation
Decreased money circulation helps in controlling the inflation
Increased money circulation helps in controlling the inflation
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The correct option is C (Decreased money circulation helps in controlling the inflation).
– Inflation is generally caused by excessive demand or reduced supply, often fuelled by an increase in the money supply beyond the growth of output.
– Controlling inflation is a joint responsibility of the government and the central bank (RBI). The RBI is statutorily mandated to maintain price stability, often through monetary policy. Therefore, A and B are incorrect.
– Monetary policy tools aimed at controlling inflation typically involve reducing the money supply and credit availability or increasing interest rates, which leads to decreased money circulation (tight monetary policy). This curbs aggregate demand, helping to cool down inflationary pressures.
– Increased money circulation (loose or expansionary monetary policy) typically stimulates demand and can exacerbate inflation. Therefore, D is incorrect.
The Government sets an inflation target for the RBI (currently 4% with a band of +/- 2%). The RBI uses various instruments like Repo rate, Reverse Repo rate, CRR, SLR, and OMOs to manage liquidity and influence inflation. Fiscal measures like controlling government expenditure, taxation, and managing supply-side issues also play a role in controlling inflation.

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15. With reference to Indian economy, consider the following: 1. Bank ra

With reference to Indian economy, consider the following:

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  • 1. Bank rate
  • 2. Open market operations
  • 3. Public debt
  • 4. Public revenue

Which of the above is/are component/components of Monetary Policy?

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1 only
2, 3 and 4
1 and 2
1, 3 and 4
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The correct option is C (1 and 2). Bank rate and Open Market Operations are standard instruments of Monetary Policy.
– Monetary policy is the policy adopted by the central bank of a country to control the money supply and interest rates to promote macroeconomic stability.
– Instruments of monetary policy include quantitative measures like Bank Rate (discount rate), Open Market Operations (OMOs), Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), Repo Rate, and Reverse Repo Rate.
– Bank rate (Statement 1) is the rate at which the central bank lends money to commercial banks without any security.
– Open market operations (Statement 2) involve the buying and selling of government securities by the central bank in the open market to control liquidity.
– Public debt (Statement 3) and public revenue (Statement 4) are components of Fiscal Policy, which relates to government spending and taxation. Fiscal policy is formulated and implemented by the government, not the central bank.
Monetary policy primarily targets inflation and growth by influencing the cost and availability of money and credit in the economy. Fiscal policy influences aggregate demand through government expenditure and revenue. In India, the Reserve Bank of India (RBI) is responsible for formulating and implementing monetary policy.

16. The fundamental object of Panchayati Raj system is to ensure which amo

The fundamental object of Panchayati Raj system is to ensure which among the following?

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  • 1. People’s participation in development
  • 2. Political accountability
  • 3. Democratic decentralization
  • 4. Financial mobilization

Select the correct answer using the code given below.

1, 2 and 3 only
2 and 4 only
1 and 3 only
1, 2, 3 and 4
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The correct option is C (1 and 3 only). The fundamental objectives of the Panchayati Raj system are primarily people’s participation in development and democratic decentralization.
– The Panchayati Raj system, formalized by the 73rd Constitutional Amendment Act, 1992, aims to strengthen democracy at the grassroots level.
– Democratic decentralization (Statement 3) is the core principle, transferring power and responsibilities from the central/state government to local elected bodies.
– This decentralization enables and encourages people’s participation in the planning and implementation of development programs (Statement 1).
– Political accountability (Statement 2) exists as the elected representatives are accountable to the local electorate, but it’s a consequence of democratic setup rather than the primary objective itself.
– Financial mobilization (Statement 4) is crucial for the functioning of PRIs and undertaking development projects, but it’s a means to achieve the objectives of development and governance, not the fundamental objective for establishing the system.
The Balwant Rai Mehta Committee (1957) is credited with recommending the three-tier Panchayati Raj system for democratic decentralization. The 73rd Amendment Act gave constitutional status to Panchayati Raj Institutions, aiming to make them effective instruments of local self-governance and rural development.

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17. Which one of the following is the best description of the term

Which one of the following is the best description of the term ‘ecosystem’?

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A community of organisms interacting with one another
That part of the Earth which is inhabited by living organisms
A community of organisms together with the environment in which they live
The flora and fauna of a geographical area
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The correct option is C (A community of organisms together with the environment in which they live). This is the standard definition of an ecosystem.
– An ecosystem comprises both biotic (living organisms) and abiotic (physical environment like soil, water, air, sunlight, temperature) components.
– The organisms within an ecosystem interact with each other (biotic interactions) and also with their physical environment (biotic-abiotic interactions).
– Option A describes only the biotic community.
– Option B describes the biosphere or habitable part of the Earth.
– Option D describes flora and fauna, which are only parts of the biotic community.
The term ‘ecosystem’ was coined by A.G. Tansley in 1935. Ecosystems can vary greatly in size, from a small pond to a large forest or ocean. Energy flows through the ecosystem, typically originating from the sun and transferred through trophic levels, while nutrients are cycled within the ecosystem.

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18. “To uphold and protect the Sovereignty, Unity and Integrity of India”

“To uphold and protect the Sovereignty, Unity and Integrity of India” is a provision made in the

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Preamble of the Constitution
Directive Principles of State Policy
Fundamental Rights
Fundamental Duties
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The correct option is D (Fundamental Duties). The phrase “To uphold and protect the Sovereignty, Unity and Integrity of India” is explicitly mentioned as one of the Fundamental Duties of every citizen of India.
– This statement is found in Article 51A(c) of the Constitution, which lists the Fundamental Duties.
– The Fundamental Duties were added to the Constitution by the 42nd Amendment Act, 1976, based on the recommendations of the Swaran Singh Committee. There are currently eleven Fundamental Duties.
– The Preamble mentions “unity and integrity of the Nation” but not the duty “to uphold and protect” them.
– The Directive Principles of State Policy (Part IV) are guidelines for the state, aiming for social and economic welfare, not specific duties of citizens.
– Fundamental Rights (Part III) are rights guaranteed to individuals against the state.
– The emphasis on sovereignty, unity, and integrity reflects the importance of national cohesion and solidarity.

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19. Consider the following statements : 1. The Legislative Council of a

Consider the following statements :

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  • 1. The Legislative Council of a State in India can be larger in size than half of the Legislative Assembly of that particular State.
  • 2. The Governor of a State nominates the Chairman of Legislative Council of that particular State.

Which of the statements given above is/are correct?

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1 only
2 only
Both 1 and 2
Neither 1 nor 2
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The correct option is D (Neither 1 nor 2). Both statements regarding the Legislative Council are incorrect according to the Indian Constitution.
– Statement 1 is incorrect. Article 171(1) of the Constitution stipulates that the total number of members in the Legislative Council of a State shall not exceed one-third of the total number of members in the Legislative Assembly of that State. It also states that the total number of members in the Legislative Council shall in no case be less than forty. Therefore, the size of the Legislative Council is limited to one-third of the Assembly’s size, not half.
– Statement 2 is incorrect. Article 182 of the Constitution states that the Legislative Council shall choose two members of the Council to be respectively Chairman and Deputy Chairman thereof. The Chairman of the Legislative Council is elected by the members of the Council from amongst themselves, not nominated by the Governor.
The system of having a Legislative Council (Vidhan Parishad) is bicameralism at the state level. Not all states have a Legislative Council. Creation or abolition of a Legislative Council in a state is done by Parliament through a simple majority, based on a resolution passed by the State Legislative Assembly by a special majority. The composition of the Legislative Council under Article 171 includes members elected by local bodies, graduates, teachers, and members nominated by the Governor, in addition to those elected by the members of the Legislative Assembly.

20. With reference to Indian economy, consider the following statements:

With reference to Indian economy, consider the following statements:

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  • 1. The rate of growth of Real Gross Domestic Product has steadily increased in the last decade.
  • 2. The Gross Domestic Product at market prices (in rupees) has steadily increased in the last decade.

Which of the statements given above is/are correct?

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1 only
2 only
Both 1 and 2
Neither 1 nor 2
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Statement 1 is incorrect. The rate of growth of Real Gross Domestic Product (GDP) is subject to economic cycles and various domestic and global factors. It rarely increases steadily over a decade; there are typically fluctuations, periods of faster growth, and periods of slowdown. Statement 2 is correct. The Gross Domestic Product at market prices (Nominal GDP in rupees) reflects both the increase in the volume of goods and services produced (real growth) and the increase in prices (inflation). Over a decade, even with fluctuations in real growth, the combined effect of positive real growth (on average) and inflation almost guarantees a steady increase in nominal GDP in absolute rupee terms, year after year.
Nominal GDP (at market prices) in a growing economy like India typically increases every year due to real growth and inflation, while the rate of Real GDP growth is volatile and does not increase steadily over long periods.
Real GDP growth is a measure of the increase in the volume of production, adjusted for inflation. It indicates the actual expansion of the economy’s output capacity. Nominal GDP is the value of goods and services at current market prices. It reflects both volume changes and price changes. Over any typical decade in a developing economy with positive inflation and average positive real growth, nominal GDP tends to show a consistent upward trend, unlike the growth *rate* of real GDP.

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