2018

31. Consider the following statements: With an overall objective of bringi

Consider the following statements:
With an overall objective of bringing transparency in the Indian real estate market, the housing price index is expected to serve some highly important and timely purposes:

  • Whether a broker is quoting too high a price for houses in the cities.
  • Banks/housing finance bodies will be able to estimate only if the loan applications are realistic for the properties.
  • This will also show the level of performing assets in the housing sector.

Which of the above statements are correct ?

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

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Statements 1 and 2 are correct.
A transparent housing price index provides valuable market data. Statement 1 is correct because the index can help potential buyers or sellers gauge whether a quoted price is reasonable compared to market averages. Statement 2 is correct because banks rely on market data to assess property values when considering loan applications, ensuring that the loan amount is appropriate relative to the collateral’s worth. Statement 3 is incorrect; a housing price index tracks property values, not the repayment status or ‘performing’ nature of housing loans, which is a measure of asset quality for lenders.
Housing price indices contribute to market transparency and efficiency, benefiting buyers, sellers, lenders, and policymakers. However, they are distinct from metrics that measure the health of the loan portfolio itself.

32. The rate of inflation is the rate of change of general price level whi

The rate of inflation is the rate of change of general price level which is measured as

[amp_mcq option1=”Rate of inflation (year x) = Price level (year x) – Price level (year x – 1) / Price level (year x – 1) × 100″ option2=”Rate of inflation (year x) = Price level (year x) – Price level (year x + 1) / Price level (year x + 1) × 100″ option3=”Rate of inflation (year x) = Price level (year x) + Price level (year x – 1) / Price level (year x – 1) × 100″ option4=”Rate of inflation (year x) = Price level (year x) + Price level (year x + 1) / Price level (year x + 1) × 100″ correct=”option1″]

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The rate of inflation (year x) is measured as (Price level (year x) – Price level (year x – 1)) / Price level (year x – 1) × 100.
Inflation rate is defined as the percentage change in the general price level over a period. The standard formula for calculating the percentage change between two values (in this case, price levels in year x and year x-1) is (New Value – Old Value) / Old Value * 100. Applying this to price levels, where the “old value” is the price level in the base year (year x-1) and the “new value” is the price level in the current year (year x), yields the formula in option A.
Price level can be represented by indices like the Consumer Price Index (CPI) or the Wholesale Price Index (WPI). The formula calculates the annual inflation rate if year x and year x-1 are consecutive years.

33. The process of reforms in India has to be completed via which of the f

The process of reforms in India has to be completed via which of the following processes ?

  • 1. Liberalisation
  • 2. Privatisation
  • 3. Globalisation

Select the correct answer using the code given below :

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

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The process of reforms in India includes Liberalisation, Privatisation, and Globalisation.
The major economic reforms initiated in India in 1991 are commonly referred to as the LPG reforms, standing for Liberalisation, Privatisation, and Globalisation. Liberalisation involved removing restrictions on economic activity, Privatisation involved reducing the role of the state in the economy by selling public sector undertakings, and Globalisation involved integrating the Indian economy with the global economy. All three are considered integral components of India’s reform process.
These reforms were undertaken in response to a severe economic crisis and marked a significant shift in India’s economic policy, moving away from a more protectionist and state-controlled model towards a market-oriented economy.

34. Consider the following statements regarding the NITI Aayog : The Sta

Consider the following statements regarding the NITI Aayog :

  • The State Governments and the local bodies must be made equal partners in the development process through the following changes :
  • 1. Understanding and supporting their developmental needs and aspirations.
  • 2. Incorporating varied local realities into national policies and programmes with the required flexibility.

Which of the above statements is/are correct ?

[amp_mcq option1=”1 only” option2=”2 only” option3=”Both 1 and 2″ option4=”Neither 1 nor 2″ correct=”option3″]

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Both statements 1 and 2 are correct regarding the NITI Aayog’s objective of making State Governments and local bodies equal partners.
NITI Aayog was established with the aim of fostering cooperative federalism and enabling greater participation of states in the policy-making process. Statement 1 directly reflects this goal by emphasizing understanding and supporting states’ specific needs and aspirations. Statement 2 reflects the shift from a centralized planning approach to one that incorporates local realities and allows flexibility in implementing national programs, another core principle of NITI Aayog’s design.
NITI Aayog serves as a think tank that provides policy advice and encourages states’ active involvement in development strategies, moving away from the top-down approach of the former Planning Commission.

35. Nudges can be used in policy making with effective outcomes by taking

Nudges can be used in policy making with effective outcomes by taking policy actions. Which one of the following statements is not correct ?

[amp_mcq option1=”People’s behaviour does not get influenced by social and religious norms.” option2=”Beneficial norms can be used as positive influencers (friends and neighbours as role models) to modify people’s behaviour.” option3=”As people have an inclination to go for ‘default’ option in their actions, changing the default can be a very effective policy.” option4=”Policy of reminders and repeated reinforcements help sustained change in behaviour as people find it difficult to sustain good habits.” correct=”option1″]

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The statement “People’s behaviour does not get influenced by social and religious norms” is not correct.
Nudges in policymaking are based on behavioral economics, which acknowledges that human behavior is significantly influenced by various factors, including social context, norms, biases, and default options. Social and religious norms are powerful determinants of behavior, and understanding and leveraging them (positively or negatively) is often central to designing effective nudges. Therefore, the statement that behavior is *not* influenced by these norms is incorrect.
Statements B, C, and D correctly describe principles or techniques used in nudging: using beneficial norms as role models (social proof), leveraging the power of defaults, and employing reminders/reinforcements to encourage sustained behavioral change.

36. Which one of the following is aimed at supplying those goods and servi

Which one of the following is aimed at supplying those goods and services to the disadvantaged and marginalised sections of society which are bare minimum but essential in nature ?

[amp_mcq option1=”Long-term policy” option2=”Short-term policy” option3=”Industrial policy” option4=”Fiscal policy” correct=”option4″]

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Fiscal policy is aimed at supplying those goods and services to the disadvantaged and marginalised sections of society which are bare minimum but essential in nature.
Fiscal policy involves the government’s use of taxation and spending to influence the economy. Providing essential goods and services (like subsidized food, healthcare, housing, education) to disadvantaged groups is primarily done through government expenditure, which is a component of fiscal policy. These are welfare measures funded through the government budget.
While such policies might be part of a broader social welfare program, the mechanism of delivery through government spending aligns most closely with fiscal policy. Long-term and short-term policies refer to the time horizon, while industrial policy focuses on specific economic sectors (industry).

37. The International Day of Happiness is celebrated on

The International Day of Happiness is celebrated on

[amp_mcq option1=”10th March” option2=”15th March” option3=”20th March” option4=”25th March” correct=”option3″]

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The International Day of Happiness is celebrated on March 20th.
The United Nations General Assembly proclaimed March 20th as the International Day of Happiness in its resolution 66/281 of 12 July 2012.
The resolution recognized the relevance of happiness and well-being as universal goals and aspirations in the lives of human beings around the world and the importance of their recognition in public policy objectives. The day is observed to promote the idea that economic growth must be inclusive, equitable, and balanced, promoting sustainable development, poverty eradication, happiness, and well-being of all peoples.

38. As per their achievements, the countries were broadly classified into

As per their achievements, the countries were broadly classified into different categories with a range of points on the index. Which one of the following is not correct?

[amp_mcq option1=”High Human Development Countries : 0·800 – 1·000 points on the index” option2=”Medium Human Development Countries : 0·500 – 0·799 points on the index” option3=”Low Human Development Countries : 0·000 – 0·499 points on the index” option4=”Very Low Human Development Countries : 0·000 – 0·004 points on the index” correct=”option4″]

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The statement “Very Low Human Development Countries : 0·000 – 0·004 points on the index” is not correct.
The Human Development Index (HDI) ranges from 0 to 1. While the theoretical minimum is 0, actual observed HDI values for countries typically range from around 0.3 to over 0.9. A range of 0.000 – 0.004 is extremely narrow and not representative of any recognized category of Human Development, including the lowest ones. The typical classification ranges for HDI are much broader and start from significantly higher values for the lowest category (e.g., below 0.550 for Low Human Development in recent reports).
HDI categories and ranges have seen slight variations over time. However, the lowest recorded HDI for any country is significantly higher than 0.004. The standard categories are typically Low, Medium, High, and Very High Human Development, with score thresholds that group countries based on their progress in health, education, and income.

39. The dilemma of measuring the developmental level of economies was solv

The dilemma of measuring the developmental level of economies was solved once the United Nations Development Programme (UNDP) published its first Human Development Report (HDR) in

[amp_mcq option1=”1990″ option2=”1992″ option3=”1994″ option4=”1996″ correct=”option1″]

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The correct answer is 1990.
The United Nations Development Programme (UNDP) published its first Human Development Report (HDR) in the year 1990.
The first HDR was a landmark publication that introduced the Human Development Index (HDI) as a new way of measuring development, moving beyond solely economic indicators like GDP per capita. It was conceptualized by Mahbub ul Haq and Amartya Sen, among others.

40. Which one of the following relations is correct for net domestic

Which one of the following relations is correct for net domestic product?

[amp_mcq option1=”Net Domestic Product = Gross Domestic Product + Depreciation” option2=”Net Domestic Product = Gross Domestic Product – Depreciation” option3=”Net Domestic Product = Gross Domestic Product/Depreciation” option4=”Net Domestic Product = Gross Domestic Product × Depreciation” correct=”option2″]

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The correct answer is B. Net Domestic Product (NDP) is calculated by subtracting Depreciation from Gross Domestic Product (GDP).
– Gross Domestic Product (GDP) is the total market value of all final goods and services produced within a country’s borders in a specific time period.
– Depreciation is the consumption of fixed capital, representing the decrease in the value of physical capital goods (like machinery, buildings) due to wear and tear or obsolescence over time.
– Net Domestic Product (NDP) measures the value of goods and services produced within a country’s borders minus the cost of capital consumed during the production process. It is a measure of net output.
The relationship is NDP = GDP – Depreciation. Similarly, Net National Product (NNP) is Gross National Product (GNP) minus Depreciation. NDP at market prices is GDP at market prices minus depreciation. NDP at factor cost is GDP at factor cost minus depreciation. NDP is a more accurate measure of the nation’s annual output available for consumption and investment after accounting for the capital used up in production.
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