10000 Questions for Prelims 2020 | Prelims 2020 Marathon
Dear Friends,
Let is share and post / paste here questions of various test series . If we crowd source enough, we know that questions will come from here. There was a thread of crowd sourced questions in the past, where @wunwun @burger @pizza and all had contributed and that year we had many questions come from there.
Let us start this initiative. Also please follow the convention followed last year by @neyawn Sir, let us number the questions in a serial number.
Here I am starting
#1Choose correct statements
1) M N Roy was the founder of Communism in India
2) M N Roy first mooted the idea of Constituent Assembly
3) Patel was the Chairman of Committee on negotiating with states
4) Nehru was the Chairman of Drafting Committee
Select correct
a) 1 and 2 only
b) 2 and 3 only
c) 2 and 4 only
d) None of t
Capital formation in a country will necessarily lead to which of the following:1. Increase in ICOR2. Decreasein ICOR3. Economic growthSelect the correct answer using the code given below:(a) 1 & 3 only(b) 2 & 3 only(c) 3 only(d) None of the above
C or D?
If a country’s growth rate is good but there is no corresponding growth in employment, then which of the following could be the reasons:(a) The growth is coming from better utilization of existing capacity and not because of increase in investment(b) The growth is coming from increase in investment but not because of better utilization of existing capacity(c) The growth is coming from both as a result of increase in investment and increase in capacity utilization(d) None of the above
A
If India is experiencing economic growth, then which of the following statements must hold true:1. Real GDP is increasing2. Nominal GDP is increasing3. Rate of growth of real GDP is increasing4. Rate of growth of nominal GDP is increasingSelect the correct answer using the code given below:(a) 1 only(b) 1 & 2 only(c) 1 & 3 only(d) 1 & 4 only
A?
If India is experiencing economic growth, then which of the following statements must hold true:1. Real GDP is increasing2. Nominal GDP is increasing3. Rate of growth of real GDP is increasing4. Rate of growth of nominal GDP is increasingSelect the correct answer using the code given below:(a) 1 only(b) 1 & 2 only(c) 1 & 3 only(d) 1 & 4 onlyA?
Correct.
Economic growth in a country will necessarily have to occur if:(a) There is technological progress in the country(b) There is population growth in the country(c) There is capital formation in the country(d) The country's exports are increasingC
Correct.
Investment in the economy means production of capital goods.
When the economy produces all consumption goods and no capital goods (investment) then its GDP shall remain constant i.e. it will not grow. But till the time there is net production of capital goods i.e. investment in the economy, the production of goods and services (GDP) will keep on increasing. Capital formation means production of capital goods. So, if there is capital formation, it will necessarily lead to increase in GDP i.e. economic growth.
eclectus,Capital formation in a country will necessarily lead to which of the following:1. Increase in ICOR2. Decreasein ICOR3. Economic growthSelect the correct answer using the code given below:(a) 1 & 3 only(b) 2 & 3 only(c) 3 only(d) None of the aboveC
Correct.
Capital formation means production of capital goods.
Production of capital goods leads to future production of goods and services and hence economic growth.
Production of capital goods increases the capital stock in the economy but does not tell whether there is any increase in efficiency of that capital. Efficiency is measured as how much output is produced from how much of inputs. So, we can’t say that ICOR will increase or decrease with capital formation.
eclectus,Which of the following are part of capital account transaction?1. Masala bonds2. Purchase of capital equipment from abroad3. NRI deposits in Indian banksSelect the correct answer using the code given below:(a) 1 only(b) 1 & 2 only(c) 3 only(d) 1 & 3 onlyd
Correct.
Masala bonds are issued outside India and money is raised in foreign currency, so it is part of our capital account. When NRIs are depositing money in Indian banks then it’s t ransaction between Indian residents (banks) and non-resident Indians and it creates a liability on Indian banks for future, hence it’s a capital receipt. Import of capital equipment are part of current account.
eclectus,Economic growth in a country will necessarily have to occur if:(a) There is technological progress in the country(b) There is population growth in the country(c) There is capital formation in the country(d) The country's exports are increasingC
Correct.
Investment in the economy means production of capital goods.
When the economy produces all consumption goods and no capital goods (investment) then its GDP shall remain constant i.e. it will not grow. But till the time there is net production of capital goods i.e. investment in the economy, the production of goods and services (GDP) will keep on increasing. Capital formation means production of capital goods. So, if there is capital formation, it will necessarily lead to increase in GDP i.e. economic growth.
Thanks for the explanation!
If a country’s growth rate is good but there is no corresponding growth in employment, then which of the following could be the reasons:(a) The growth is coming from better utilization of existing capacity and not because of increase in investment(b) The growth is coming from increase in investment but not because of better utilization of existing capacity(c) The growth is coming from both as a result of increase in investment and increase in capacity utilization(d) None of the above
@upsc2020 what should be the answer to this?
If a country’s growth rate is good but there is no corresponding growth in employment, then which of the following could be the reasons:(a) The growth is coming from better utilization of existing capacity and not because of increase in investment(b) The growth is coming from increase in investment but not because of better utilization of existing capacity(c) The growth is coming from both as a result of increase in investment and increase in capacity utilization(d) None of the above@upsc2020 what should be the answer to this?
A
Higher economic growth comes from additional investment, or increase in capacity utilization of the capital stock (factory).
When economic growth comes from new investment then generally more jobs are created but when economic growth comes from better utilization of the existing capacity (which was earlier not utilized properly) then jobs may not get created in the economy.
eclectus,mhs11
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