Static Quiz 21 February 2025 (Economy)
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Static Quiz 21 February 2025 (Economy) For UPSC Exam
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- Question 1 of 5
1. Question
Consider the following statements about the Index of Industrial Production (IIP):
1. It is compiled and published by the National Statistical Office.
2. In this index, Crude Oil has the highest weightage among the Eight Core Industries.
3. It is currently calculated with 2004-05 as the Base Year.
4. The Eight Core Industries comprise 70 percent of the weight of all items included in the IIP.
How many of the above statements are correct?CorrectAnswer: a
Explanation :
• Statement 1: Correct. The IIP is compiled and published monthly by the National Statistical Office (NSO), under the Ministry of Statistics and Programme Implementation (MoSPI).
• Statement 2: Incorrect. Among the Eight Core Industries, Refinery Products have the highest weightage, not Crude Oil.
• Statement 3: Incorrect. The IIP is currently calculated with 2011-12 as the base year, not 2004-05.
• Statement 4: Incorrect. The Eight Core Industries constitute 40.27% of the total weight of items included in the IIP, not 70%.
Hence, only one statement is correct.IncorrectAnswer: a
Explanation :
• Statement 1: Correct. The IIP is compiled and published monthly by the National Statistical Office (NSO), under the Ministry of Statistics and Programme Implementation (MoSPI).
• Statement 2: Incorrect. Among the Eight Core Industries, Refinery Products have the highest weightage, not Crude Oil.
• Statement 3: Incorrect. The IIP is currently calculated with 2011-12 as the base year, not 2004-05.
• Statement 4: Incorrect. The Eight Core Industries constitute 40.27% of the total weight of items included in the IIP, not 70%.
Hence, only one statement is correct. - Question 2 of 5
2. Question
Consider the following statements about Imperative Planning:
1. The government has complete control over economic operations under this approach.
2. The market mechanism is replaced by a common economic plan.
3. The private sector is neither tightly monitored nor directed to meet the plan’s aims and priorities.
4. It is mainly aimed at improving the operation of the market system.
How many of the above are features of Imperative Planning?CorrectAnswer: a
Explanation :
• Statement 1: Correct. In Imperative Planning, the government exercises full control over the economy.
• Statement 2: Correct. It replaces the market mechanism with centralized planning.
• Statement 3: Incorrect. In imperative planning, the private sector is tightly monitored to align with state objectives.
• Statement 4: Incorrect. It focuses on state-directed planning rather than improving market operations.
Thus, only one statement is correct.IncorrectAnswer: a
Explanation :
• Statement 1: Correct. In Imperative Planning, the government exercises full control over the economy.
• Statement 2: Correct. It replaces the market mechanism with centralized planning.
• Statement 3: Incorrect. In imperative planning, the private sector is tightly monitored to align with state objectives.
• Statement 4: Incorrect. It focuses on state-directed planning rather than improving market operations.
Thus, only one statement is correct. - Question 3 of 5
3. Question
With reference to the taxation regime in India, which one of the following statements is correct regarding ‘Surcharge’?
CorrectAnswer: b
Explanation :
• A surcharge is an additional charge levied on existing taxes (mainly income tax and corporate tax).
• Option b is correct: The proceeds of surcharge are not required to be shared with the States and can be used by the Central Government for any purpose it deems fit.
• Option a: Incorrect. A surcharge is not necessarily temporary nor always for specific purposes.
• Option c: Incorrect. The 101st Constitutional Amendment Act (2016) is related to GST implementation, not surcharge powers.
• Option d: Incorrect. Surcharge proceeds are not shared with States (unlike cesses or taxes under the divisible pool).IncorrectAnswer: b
Explanation :
• A surcharge is an additional charge levied on existing taxes (mainly income tax and corporate tax).
• Option b is correct: The proceeds of surcharge are not required to be shared with the States and can be used by the Central Government for any purpose it deems fit.
• Option a: Incorrect. A surcharge is not necessarily temporary nor always for specific purposes.
• Option c: Incorrect. The 101st Constitutional Amendment Act (2016) is related to GST implementation, not surcharge powers.
• Option d: Incorrect. Surcharge proceeds are not shared with States (unlike cesses or taxes under the divisible pool). - Question 4 of 5
4. Question
With reference to the Indian Economy, consider the following statements about the Bombay Plan:
1. It gave a call for agrarian reforms by abolishing zamindari.
2. It advocated for the government to refrain from intervening in the economy.
3. It advised future governments to protect indigenous industry.
4. It proposed a comprehensive framework for mass education and vocational education.
How many of the above statements are correct?CorrectAnswer: b
Explanation :
• Statement 1: Incorrect. The Bombay Plan did not focus on agrarian reforms like zamindari abolition.
• Statement 2: Incorrect. The plan supported state intervention in industries for economic development.
• Statement 3: Correct. It emphasized the protection of indigenous industries from foreign competition.
• Statement 4: Correct. The plan proposed investment in mass and vocational education to enhance skills.
Hence, two statements are correct.IncorrectAnswer: b
Explanation :
• Statement 1: Incorrect. The Bombay Plan did not focus on agrarian reforms like zamindari abolition.
• Statement 2: Incorrect. The plan supported state intervention in industries for economic development.
• Statement 3: Correct. It emphasized the protection of indigenous industries from foreign competition.
• Statement 4: Correct. The plan proposed investment in mass and vocational education to enhance skills.
Hence, two statements are correct. - Question 5 of 5
5. Question
Consider the following in relation to Economic Planning in India:
1. Economic growth
2. Poverty alleviation
3. Self-sufficiency
4. Controlling economic inequality
5. Preventing insurgency
6. Employment generation
How many of the above are objectives of Economic Planning in India?CorrectAnswer: c
Explanation :
• Economic planning in India aims to achieve balanced growth with equity.
• Correct Objectives:
◦ Economic growth (1)
◦ Poverty alleviation (2)
◦ Self-sufficiency (3)
◦ Controlling economic inequality (4)
◦ Employment generation (6)
• Incorrect Objective:
◦ Preventing insurgency (5) is not a direct objective of economic planning (though economic development may indirectly reduce insurgency).
Thus, five of the above statements are correct.IncorrectAnswer: c
Explanation :
• Economic planning in India aims to achieve balanced growth with equity.
• Correct Objectives:
◦ Economic growth (1)
◦ Poverty alleviation (2)
◦ Self-sufficiency (3)
◦ Controlling economic inequality (4)
◦ Employment generation (6)
• Incorrect Objective:
◦ Preventing insurgency (5) is not a direct objective of economic planning (though economic development may indirectly reduce insurgency).
Thus, five of the above statements are correct.
