Static Quiz 25 February 2025 (Indian Economy)
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Static Quiz 25 February 2025 (Indian Economy) For UPSC Exam
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- Question 1 of 5
1. Question
Consider the following statements regarding Growth and Development:
1. Higher economic development requires higher economic growth.
2. Higher economic growth automatically brings in higher economic development.
3. Economic development involves quantitative as well as qualitative progress in an economy.
How many of the above given statements are correct?CorrectAnswer: a) Only one
Explanation:
• Statement 1: Incorrect – Higher economic development does not always require higher economic growth. Development encompasses broader aspects like health, education, and standard of living, which may improve without high growth.
• Statement 2: Incorrect – Economic growth (increase in GDP) doesn’t always lead to development. Growth can occur without equitable distribution or improved living standards.
• Statement 3: Correct – Economic development includes both quantitative (income) and qualitative (health, education) improvements.IncorrectAnswer: a) Only one
Explanation:
• Statement 1: Incorrect – Higher economic development does not always require higher economic growth. Development encompasses broader aspects like health, education, and standard of living, which may improve without high growth.
• Statement 2: Incorrect – Economic growth (increase in GDP) doesn’t always lead to development. Growth can occur without equitable distribution or improved living standards.
• Statement 3: Correct – Economic development includes both quantitative (income) and qualitative (health, education) improvements. - Question 2 of 5
2. Question
Consider the following statements regarding the Mahalanobis Model of Development:
1. The Mahalanobis model was employed in the First Five Year Plan.
2. The model laid emphasis on rapid industrialisation with a focus on heavy industries and capital goods.
Which of the above statements is/are correct?CorrectAnswer: b) 2 only
Explanation:
• Statement 1: Incorrect – The First Five Year Plan (1951-56) focused on agriculture and irrigation. The Mahalanobis Model was implemented during the Second Five Year Plan (1956-61) for industrial development.
• Statement 2: Correct – The model emphasized heavy industries and capital goods to boost long-term economic growth.IncorrectAnswer: b) 2 only
Explanation:
• Statement 1: Incorrect – The First Five Year Plan (1951-56) focused on agriculture and irrigation. The Mahalanobis Model was implemented during the Second Five Year Plan (1956-61) for industrial development.
• Statement 2: Correct – The model emphasized heavy industries and capital goods to boost long-term economic growth. - Question 3 of 5
3. Question
Regarding the Post Devolution Revenue Deficit Grant, consider the following statements:
1. The term “Post Devolution Revenue Deficit Grant” is mentioned in Article 275 of the Indian Constitution.
2. It is the duty of the Union Government to release this grant to all states, irrespective of their financial position.
3. The Department of Expenditure, under the Ministry of Finance, releases such amount to the respective state governments.
How many of the above given statements are correct?CorrectAnswer: a) Only one
Explanation:
• Statement 1: Incorrect – Article 275 provides for grants to certain states, but Post Devolution Revenue Deficit Grant is recommended by the Finance Commission, not specifically mentioned in Article 275.
• Statement 2: Incorrect – The grant is not given to all states; only those facing revenue deficits after tax devolution are eligible.
• Statement 3: Correct – The Department of Expenditure (Ministry of Finance) releases the grants to eligible states.IncorrectAnswer: a) Only one
Explanation:
• Statement 1: Incorrect – Article 275 provides for grants to certain states, but Post Devolution Revenue Deficit Grant is recommended by the Finance Commission, not specifically mentioned in Article 275.
• Statement 2: Incorrect – The grant is not given to all states; only those facing revenue deficits after tax devolution are eligible.
• Statement 3: Correct – The Department of Expenditure (Ministry of Finance) releases the grants to eligible states. - Question 4 of 5
4. Question
Consider the following statements:
1. The Lorenz curve represents the wealth distribution of the nation.
2. The Gini Coefficient of India has increased in the past decade.
3. The Gini Coefficient can be represented graphically through the Lorenz curve.
How many of the above given statements are correct?CorrectAnswer: b) Only two
Explanation:
• Statement 1: Incorrect – The Lorenz curve typically represents income distribution rather than wealth.
• Statement 2: Correct – According to various reports, income inequality (Gini Coefficient) has generally increased in India, making this statement largely correct.
• Statement 3: Correct – The Gini Coefficient is derived from the Lorenz curve and represents the degree of income inequality.
Correct Statements: Statements 2 and 3IncorrectAnswer: b) Only two
Explanation:
• Statement 1: Incorrect – The Lorenz curve typically represents income distribution rather than wealth.
• Statement 2: Correct – According to various reports, income inequality (Gini Coefficient) has generally increased in India, making this statement largely correct.
• Statement 3: Correct – The Gini Coefficient is derived from the Lorenz curve and represents the degree of income inequality.
Correct Statements: Statements 2 and 3 - Question 5 of 5
5. Question
With reference to ‘Fiscal Marksmanship’, which of the following statements is correct?
CorrectAnswer: b) It refers to the accuracy of the government’s forecast of fiscal parameters.
Explanation:
• Fiscal Marksmanship assesses how accurately the government forecasts fiscal indicators (like revenue and expenditure) compared to actual outcomes.
• Options a, c, and d are unrelated to fiscal forecasting accuracy.IncorrectAnswer: b) It refers to the accuracy of the government’s forecast of fiscal parameters.
Explanation:
• Fiscal Marksmanship assesses how accurately the government forecasts fiscal indicators (like revenue and expenditure) compared to actual outcomes.
• Options a, c, and d are unrelated to fiscal forecasting accuracy.
