DAY – 1 : Insta 75 Days Revision Plan-2025 : ECONOMY

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• Question 1 of 30 1. Question 1 points Which of the following best describes the “resource curse” phenomenon in economics? a) Countries with abundant natural resources often experience slower economic growth than resource-poor countries b) The depletion of natural resources inevitably leads to economic collapse c) Resource-rich countries always develop faster than countries with fewer natural resources d) The tendency of countries to overinvest in resource extraction at the expense of manufacturing Correct Solution: A The “resource curse” refers to the paradoxical phenomenon where countries with abundant natural resources often experience slower economic growth and poorer development outcomes compared to resource-poor nations. This concept, also known as the “paradox of plenty,” highlights systemic challenges such as overreliance on resource exports, institutional weaknesses, and economic distortions. Countries with abundant natural resources often experience slower economic growth than resource-poor countries.This aligns with the core definition of the resource curse. For example, countries like Nigeria, Angola, and Venezuela have struggled with economic stagnation despite oil wealth, while resource-poor nations like South Korea and Singapore achieved rapid industrialization The curse arises from overdependence on resource sectors, leading to neglect of other industries (e.g., manufacturing), vulnerability to commodity price swings, and institutional corruption Hence, option (a) is correct. Incorrect Solution: A The “resource curse” refers to the paradoxical phenomenon where countries with abundant natural resources often experience slower economic growth and poorer development outcomes compared to resource-poor nations. This concept, also known as the “paradox of plenty,” highlights systemic challenges such as overreliance on resource exports, institutional weaknesses, and economic distortions. Countries with abundant natural resources often experience slower economic growth than resource-poor countries.This aligns with the core definition of the resource curse. For example, countries like Nigeria, Angola, and Venezuela have struggled with economic stagnation despite oil wealth, while resource-poor nations like South Korea and Singapore achieved rapid industrialization The curse arises from overdependence on resource sectors, leading to neglect of other industries (e.g., manufacturing), vulnerability to commodity price swings, and institutional corruption Hence, option (a) is correct.

#### 1. Question

Which of the following best describes the “resource curse” phenomenon in economics?

• a) Countries with abundant natural resources often experience slower economic growth than resource-poor countries

• b) The depletion of natural resources inevitably leads to economic collapse

• c) Resource-rich countries always develop faster than countries with fewer natural resources

• d) The tendency of countries to overinvest in resource extraction at the expense of manufacturing

Solution: A

The “resource curse” refers to the paradoxical phenomenon where countries with abundant natural resources often experience slower economic growth and poorer development outcomes compared to resource-poor nations.

This concept, also known as the “paradox of plenty,” highlights systemic challenges such as overreliance on resource exports, institutional weaknesses, and economic distortions.

Countries with abundant natural resources often experience slower economic growth than resource-poor countries.This aligns with the core definition of the resource curse. For example, countries like Nigeria, Angola, and Venezuela have struggled with economic stagnation despite oil wealth, while resource-poor nations like South Korea and Singapore achieved rapid industrialization

The curse arises from overdependence on resource sectors, leading to neglect of other industries (e.g., manufacturing), vulnerability to commodity price swings, and institutional corruption

Hence, option (a) is correct.

Solution: A

This concept, also known as the “paradox of plenty,” highlights systemic challenges such as overreliance on resource exports, institutional weaknesses, and economic distortions.

The curse arises from overdependence on resource sectors, leading to neglect of other industries (e.g., manufacturing), vulnerability to commodity price swings, and institutional corruption

Hence, option (a) is correct.

• Question 2 of 30 2. Question 1 points What economic phenomenon is characterized by rapidly rising asset prices, widespread speculative behaviour, followed by a sudden collapse in prices? a) Secular stagnation b) Stagflation c) Asset bubble d) Hyperinflation Correct Solution: C An asset bubble occurs when the prices of assets (e.g., stocks, real estate, or commodities) surge far beyond their intrinsic value due to speculative trading, investor euphoria, and market overconfidence. This disconnect between prices and fundamentals eventually leads to a sharp correction, often causing widespread financial damage. Asset prices detach from fundamentals like earnings, rental income, or production costs. For example, during the 2000s housing bubble, U.S. home prices rose 85% above long-term averages relative to income Investors buy assets primarily expecting price appreciation, not underlying value. The dot-com bubble (1990s) saw tech stocks with minimal revenue traded at inflated valuations. Easy credit/low interest rates: Cheap borrowing fuels investment in risky assets. Herd mentality: Fear of missing out (FOMO) drives mass participation. Market narratives: Beliefs like “this time is different” justify overvaluation Hence, option (c) is correct. Incorrect Solution: C An asset bubble occurs when the prices of assets (e.g., stocks, real estate, or commodities) surge far beyond their intrinsic value due to speculative trading, investor euphoria, and market overconfidence. This disconnect between prices and fundamentals eventually leads to a sharp correction, often causing widespread financial damage. Asset prices detach from fundamentals like earnings, rental income, or production costs. For example, during the 2000s housing bubble, U.S. home prices rose 85% above long-term averages relative to income Investors buy assets primarily expecting price appreciation, not underlying value. The dot-com bubble (1990s) saw tech stocks with minimal revenue traded at inflated valuations. Easy credit/low interest rates: Cheap borrowing fuels investment in risky assets. Herd mentality: Fear of missing out (FOMO) drives mass participation. Market narratives: Beliefs like “this time is different” justify overvaluation Hence, option (c) is correct.

#### 2. Question

What economic phenomenon is characterized by rapidly rising asset prices, widespread speculative behaviour, followed by a sudden collapse in prices?

• a) Secular stagnation

• b) Stagflation

• c) Asset bubble

• d) Hyperinflation

Solution: C

An asset bubble occurs when the prices of assets (e.g., stocks, real estate, or commodities) surge far beyond their intrinsic value due to speculative trading, investor euphoria, and market overconfidence. This disconnect between prices and fundamentals eventually leads to a sharp correction, often causing widespread financial damage.

Asset prices detach from fundamentals like earnings, rental income, or production costs. For example, during the 2000s housing bubble, U.S. home prices rose 85% above long-term averages relative to income

Investors buy assets primarily expecting price appreciation, not underlying value. The dot-com bubble (1990s) saw tech stocks with minimal revenue traded at inflated valuations.

• Easy credit/low interest rates: Cheap borrowing fuels investment in risky assets.

• Herd mentality: Fear of missing out (FOMO) drives mass participation.

• Market narratives: Beliefs like “this time is different” justify overvaluation

Hence, option (c) is correct.

Solution: C

Investors buy assets primarily expecting price appreciation, not underlying value. The dot-com bubble (1990s) saw tech stocks with minimal revenue traded at inflated valuations.

• Easy credit/low interest rates: Cheap borrowing fuels investment in risky assets.

• Herd mentality: Fear of missing out (FOMO) drives mass participation.

• Market narratives: Beliefs like “this time is different” justify overvaluation

Hence, option (c) is correct.

• Question 3 of 30 3. Question 1 points How many of the following statements about command economies are correct? Resources are primarily allocated through central planning The profit motive is the primary driver of production decisions Price signals play a limited role in resource allocation Income inequality tends to be lower than in market economies Select the correct answer using the code given below: a) Only one b) Only two c) Only three d) All four Correct Solution: C A command economy is characterized by centralized government control over production, resource allocation, and pricing, with the state prioritizing social welfare over market forces. Command economies rely on centralized planning to direct resources according to government priorities rather than market signals. Example: The Soviet Union used five-year plans to set production targets for industries like steel and agriculture.”central planners set prices, control production levels, and limit competition”. Hence statement 1 is correct In command economies, production decisions aim to meet state objectives (e.g., full employment, social equity), not profit.The economic decisions take precedence over profits, and businesses serve the state, not individual profit. Market economies, on the other hand prioritize profit motives. Hence statement 2 is incorrect Prices in command economies are fixed by the government, rendering supply-demand signals irrelevant. Hence statement 3 is correct Command economies aim to minimize inequality through state-controlled wages and resource distribution. However, in practice, hidden inequalities (e.g., elite privileges in North Korea) often persist despite this goal. Hence statement 4 is correct Incorrect Solution: C A command economy is characterized by centralized government control over production, resource allocation, and pricing, with the state prioritizing social welfare over market forces. Command economies rely on centralized planning to direct resources according to government priorities rather than market signals. Example: The Soviet Union used five-year plans to set production targets for industries like steel and agriculture.”central planners set prices, control production levels, and limit competition”. Hence statement 1 is correct In command economies, production decisions aim to meet state objectives (e.g., full employment, social equity), not profit.The economic decisions take precedence over profits, and businesses serve the state, not individual profit. Market economies, on the other hand prioritize profit motives. Hence statement 2 is incorrect Prices in command economies are fixed by the government, rendering supply-demand signals irrelevant. Hence statement 3 is correct Command economies aim to minimize inequality through state-controlled wages and resource distribution. However, in practice, hidden inequalities (e.g., elite privileges in North Korea) often persist despite this goal. Hence statement 4 is correct

#### 3. Question

How many of the following statements about command economies are correct?

• Resources are primarily allocated through central planning

• The profit motive is the primary driver of production decisions

• Price signals play a limited role in resource allocation

• Income inequality tends to be lower than in market economies

Select the correct answer using the code given below:

• a) Only one

• b) Only two

• c) Only three

• d) All four

Solution: C

A command economy is characterized by centralized government control over production, resource allocation, and pricing, with the state prioritizing social welfare over market forces.

Command economies rely on centralized planning to direct resources according to government priorities rather than market signals.

Example: The Soviet Union used five-year plans to set production targets for industries like steel and agriculture.”central planners set prices, control production levels, and limit competition”.

Hence statement 1 is correct

In command economies, production decisions aim to meet state objectives (e.g., full employment, social equity), not profit.The economic decisions take precedence over profits, and businesses serve the state, not individual profit. Market economies, on the other hand prioritize profit motives.

Hence statement 2 is incorrect

Prices in command economies are fixed by the government, rendering supply-demand signals irrelevant.

Hence statement 3 is correct

Command economies aim to minimize inequality through state-controlled wages and resource distribution. However, in practice, hidden inequalities (e.g., elite privileges in North Korea) often persist despite this goal.

Hence statement 4 is correct

Solution: C

A command economy is characterized by centralized government control over production, resource allocation, and pricing, with the state prioritizing social welfare over market forces.

Command economies rely on centralized planning to direct resources according to government priorities rather than market signals.

Example: The Soviet Union used five-year plans to set production targets for industries like steel and agriculture.”central planners set prices, control production levels, and limit competition”.

Hence statement 1 is correct

Hence statement 2 is incorrect

Prices in command economies are fixed by the government, rendering supply-demand signals irrelevant.

Hence statement 3 is correct

Hence statement 4 is correct

• Question 4 of 30 4. Question 1 points Consider the following: Vaccines provided free in public hospitals Satellite communication systems Online streaming subscriptions How many of the above are “public goods”? a) Only one b) Only two c) All three d) None Correct Solution: D Public goods are defined by two key characteristics: non-excludability (impossible to restrict access) and non-rivalrous consumption. Each vaccine dose given to one person cannot be reused for another. Hence, they are rivalrous Satellite signals can be used by multiple users simultaneously (e.g., GPS, weather data). Hence, they are non- rivalrous, However, Access requires authorization (e.g., licensing from IN-SPACe) or specialized equipment, as per India’s Telecom Act and Space Policy. Hence, they are excludable Online streaming subscriptions: Unlimited users can stream content concurrently. Hence, they are non-rivalrous. However, it requires payment or login credentials (e.g., Netflix, Disney+). Thus they are excludable. Incorrect Solution: D Public goods are defined by two key characteristics: non-excludability (impossible to restrict access) and non-rivalrous consumption. Each vaccine dose given to one person cannot be reused for another. Hence, they are rivalrous Satellite signals can be used by multiple users simultaneously (e.g., GPS, weather data). Hence, they are non- rivalrous, However, Access requires authorization (e.g., licensing from IN-SPACe) or specialized equipment, as per India’s Telecom Act and Space Policy. Hence, they are excludable Online streaming subscriptions: Unlimited users can stream content concurrently. Hence, they are non-rivalrous. However, it requires payment or login credentials (e.g., Netflix, Disney+). Thus they are excludable.

#### 4. Question

Consider the following:

• Vaccines provided free in public hospitals

• Satellite communication systems

• Online streaming subscriptions

How many of the above are “public goods”?

• a) Only one

• b) Only two

• c) All three

Solution: D

Public goods are defined by two key characteristics: non-excludability (impossible to restrict access) and non-rivalrous consumption.

• Each vaccine dose given to one person cannot be reused for another. Hence, they are rivalrous

• Satellite signals can be used by multiple users simultaneously (e.g., GPS, weather data). Hence, they are non- rivalrous, However, Access requires authorization (e.g., licensing from IN-SPACe) or specialized equipment, as per India’s Telecom Act and Space Policy. Hence, they are excludable

• Online streaming subscriptions: Unlimited users can stream content concurrently. Hence, they are non-rivalrous. However, it requires payment or login credentials (e.g., Netflix, Disney+). Thus they are excludable.

Solution: D

Public goods are defined by two key characteristics: non-excludability (impossible to restrict access) and non-rivalrous consumption.

• Each vaccine dose given to one person cannot be reused for another. Hence, they are rivalrous

• Question 5 of 30 5. Question 1 points An economy observes that when household incomes rise, the demand for hand-woven rugs increases while the demand for machine-made carpets decreases. What can be concluded about these goods? a) Hand-woven rugs are normal goods and machine-made carpets are inferior goods b) Hand-woven rugs are inferior goods and machine-made carpets are normal goods c) Both are normal goods with different income elasticities d) Both are inferior goods with different price elasticities Correct Solution: A The observed relationship between income changes and demand patterns indicates that hand-woven rugs are normal goods, while machine-made carpets are inferior goods. Normal Goods: Demand increases as consumer income rises (e.g., premium products). Inferior Goods: Demand decreases as consumer income rises (e.g., budget substitutes). Hence, option (a) is correct Incorrect Solution: A The observed relationship between income changes and demand patterns indicates that hand-woven rugs are normal goods, while machine-made carpets are inferior goods. Normal Goods: Demand increases as consumer income rises (e.g., premium products). Inferior Goods: Demand decreases as consumer income rises (e.g., budget substitutes). Hence, option (a) is correct

#### 5. Question

An economy observes that when household incomes rise, the demand for hand-woven rugs increases while the demand for machine-made carpets decreases. What can be concluded about these goods?

• a) Hand-woven rugs are normal goods and machine-made carpets are inferior goods

• b) Hand-woven rugs are inferior goods and machine-made carpets are normal goods

• c) Both are normal goods with different income elasticities

• d) Both are inferior goods with different price elasticities

Solution: A

The observed relationship between income changes and demand patterns indicates that hand-woven rugs are normal goods, while machine-made carpets are inferior goods.

• Normal Goods: Demand increases as consumer income rises (e.g., premium products).

• Inferior Goods: Demand decreases as consumer income rises (e.g., budget substitutes).

Hence, option (a) is correct

Solution: A

The observed relationship between income changes and demand patterns indicates that hand-woven rugs are normal goods, while machine-made carpets are inferior goods.

• Normal Goods: Demand increases as consumer income rises (e.g., premium products).

• Inferior Goods: Demand decreases as consumer income rises (e.g., budget substitutes).

Hence, option (a) is correct

• Question 6 of 30 6. Question 1 points Consider the following statements: Statement I: Universal Basic Income (UBI) is a transfer payment. Statement II: UBI involves direct cash transfers without requiring labour in exchange. Which of the following is correct? a) Both statements are correct, and II explains I b) Both statements are correct, but II does not explain I c) Only Statement-I is correct d) Only Statement-II is correct Correct Solution: A A payment by the government for which no goods/services are directly exchanged (e.g., welfare benefits, subsidies). A type of transfer payment involving unconditional, regular cash transfers to all citizens. UBI involves redistributing funds from the government to individuals without requiring reciprocal work or services.explicitly define UBI as a “cash transfer” or “financial transfer policy,” aligning with transfer payment criteria. Hence statement 1 is correct. UBI’s defining feature is its unconditionality: recipients are not required to work, seek employment, or meet any criteria . Hence statement 2 is correct. Also, statement 2 explains statement 1. Incorrect Solution: A A payment by the government for which no goods/services are directly exchanged (e.g., welfare benefits, subsidies). A type of transfer payment involving unconditional, regular cash transfers to all citizens. UBI involves redistributing funds from the government to individuals without requiring reciprocal work or services.explicitly define UBI as a “cash transfer” or “financial transfer policy,” aligning with transfer payment criteria. Hence statement 1 is correct. UBI’s defining feature is its unconditionality: recipients are not required to work, seek employment, or meet any criteria . Hence statement 2 is correct. Also, statement 2 explains statement 1.

#### 6. Question

Consider the following statements: Statement I: Universal Basic Income (UBI) is a transfer payment. Statement II: UBI involves direct cash transfers without requiring labour in exchange.

Which of the following is correct?

• a) Both statements are correct, and II explains I

• b) Both statements are correct, but II does not explain I

• c) Only Statement-I is correct

• d) Only Statement-II is correct

Solution: A

A payment by the government for which no goods/services are directly exchanged (e.g., welfare benefits, subsidies). A type of transfer payment involving unconditional, regular cash transfers to all citizens.

UBI involves redistributing funds from the government to individuals without requiring reciprocal work or services.explicitly define UBI as a “cash transfer” or “financial transfer policy,” aligning with transfer payment criteria.

Hence statement 1 is correct.

UBI’s defining feature is its unconditionality: recipients are not required to work, seek employment, or meet any criteria .

Hence statement 2 is correct.

Also, statement 2 explains statement 1.

Solution: A

Hence statement 1 is correct.

UBI’s defining feature is its unconditionality: recipients are not required to work, seek employment, or meet any criteria .

Hence statement 2 is correct.

Also, statement 2 explains statement 1.

• Question 7 of 30 7. Question 1 points Which term describes resource exports causing currency appreciation and harming other sectors? a) Dutch Disease b) Resource Curse c) Baumol’s Cost Disease d) Crowding-out Effect Correct Solution: A Dutch Disease refers to the economic phenomenon where a surge in revenue from natural resource exports (e.g., oil, gas) causes a country’s currency to appreciate, making non-resource sectors (e.g., manufacturing, agriculture) less competitive globally. Currency Appreciation Resource exports flood the economy with foreign currency, increasing demand for the domestic currency and raising its value. Sectoral Shifts Spending Effect: Higher income from resources drives up demand for non-tradable goods (e.g., real estate, services), diverting labor and capital from tradable sectors. Decline in Competitiveness A stronger currency makes non-resource exports uncompetitive. For instance, Australia’s manufacturing sector shrank during its 19th-century gold rush. Incorrect Solution: A Dutch Disease refers to the economic phenomenon where a surge in revenue from natural resource exports (e.g., oil, gas) causes a country’s currency to appreciate, making non-resource sectors (e.g., manufacturing, agriculture) less competitive globally. Currency Appreciation Resource exports flood the economy with foreign currency, increasing demand for the domestic currency and raising its value. Sectoral Shifts Spending Effect: Higher income from resources drives up demand for non-tradable goods (e.g., real estate, services), diverting labor and capital from tradable sectors. Decline in Competitiveness A stronger currency makes non-resource exports uncompetitive. For instance, Australia’s manufacturing sector shrank during its 19th-century gold rush.

#### 7. Question

Which term describes resource exports causing currency appreciation and harming other sectors?

• a) Dutch Disease

• b) Resource Curse

• c) Baumol’s Cost Disease

• d) Crowding-out Effect

Solution: A

Dutch Disease refers to the economic phenomenon where a surge in revenue from natural resource exports (e.g., oil, gas) causes a country’s currency to appreciate, making non-resource sectors (e.g., manufacturing, agriculture) less competitive globally.

Currency Appreciation

• Resource exports flood the economy with foreign currency, increasing demand for the domestic currency and raising its value.

Sectoral Shifts

• Spending Effect: Higher income from resources drives up demand for non-tradable goods (e.g., real estate, services), diverting labor and capital from tradable sectors.

Decline in Competitiveness

• A stronger currency makes non-resource exports uncompetitive. For instance, Australia’s manufacturing sector shrank during its 19th-century gold rush.

Solution: A

Currency Appreciation

• Resource exports flood the economy with foreign currency, increasing demand for the domestic currency and raising its value.

Sectoral Shifts

• Spending Effect: Higher income from resources drives up demand for non-tradable goods (e.g., real estate, services), diverting labor and capital from tradable sectors.

Decline in Competitiveness

• A stronger currency makes non-resource exports uncompetitive. For instance, Australia’s manufacturing sector shrank during its 19th-century gold rush.

• Question 8 of 30 8. Question 1 points How many of the following statements are correct about a perfectly competitive market? Firms are price makers. There is free entry and exit of firms. Products are homogeneous. Select the correct answer using the code given below: a) Only one b) Only two c) All three d) None Correct Solution: B A perfectly competitive market is an idealized economic model characterized by specific conditions that ensure no individual buyer or seller can influence the market price. In perfect competition, firms are price takers, not makers. They cannot influence prices due to standardized products and market saturation.”no single firm can control the market or its conditions” Hence statement 1 is incorrect A hallmark of perfect competition is the absence of barriers to entry/exit. Hence statement 2 is correct All goods/services are identical, ensuring buyers cannot distinguish between sellers’ products. Hence statement 3 is correct Incorrect Solution: B A perfectly competitive market is an idealized economic model characterized by specific conditions that ensure no individual buyer or seller can influence the market price. In perfect competition, firms are price takers, not makers. They cannot influence prices due to standardized products and market saturation.”no single firm can control the market or its conditions” Hence statement 1 is incorrect A hallmark of perfect competition is the absence of barriers to entry/exit. Hence statement 2 is correct All goods/services are identical, ensuring buyers cannot distinguish between sellers’ products. Hence statement 3 is correct

#### 8. Question

How many of the following statements are correct about a perfectly competitive market?

• Firms are price makers.

• There is free entry and exit of firms.

• Products are homogeneous.

Select the correct answer using the code given below:

• a) Only one

• b) Only two

• c) All three

Solution: B

A perfectly competitive market is an idealized economic model characterized by specific conditions that ensure no individual buyer or seller can influence the market price.

In perfect competition, firms are price takers, not makers. They cannot influence prices due to standardized products and market saturation.”no single firm can control the market or its conditions”

Hence statement 1 is incorrect

A hallmark of perfect competition is the absence of barriers to entry/exit.

Hence statement 2 is correct

All goods/services are identical, ensuring buyers cannot distinguish between sellers’ products.

Hence statement 3 is correct

Solution: B

A perfectly competitive market is an idealized economic model characterized by specific conditions that ensure no individual buyer or seller can influence the market price.

Hence statement 1 is incorrect

A hallmark of perfect competition is the absence of barriers to entry/exit.

Hence statement 2 is correct

All goods/services are identical, ensuring buyers cannot distinguish between sellers’ products.

Hence statement 3 is correct

• Question 9 of 30 9. Question 1 points Consider the following statements: Statement I: A rise in per capita income necessarily reduces multidimensional poverty indices like the Global Multidimensional Poverty Index (MPI). Statement II: MPI incorporates non-income deprivations such as education, healthcare, and living standards. Which of the following is correct? a) Both Statement-I and II are correct, and II explains I b) Both Statement-I and II are correct, but II does not explain I c) Statement-I is correct, but II is incorrect d) Statement-I is incorrect, but II is correct Correct Solution: D The Global Multidimensional Poverty Index (MPI) is an international measure that captures acute poverty by considering multiple deprivations across three key dimensions: health, education, and living standards. Developed by the Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP), the MPI provides a comprehensive assessment of poverty beyond traditional income-based metrics. While there is often an inverse relationship between per capita income and multidimensional poverty, an increase in per capita income does not necessarily lead to a reduction in MPI. This is because the MPI measures deprivations in specific indicators such as nutrition, child mortality, years of schooling, and access to essential services. It’s possible for a country’s average income to rise without significant improvements in these non-income dimensions. For instance, income growth might be unevenly distributed or concentrated among higher-income groups, leaving the poorest segments still deprived in critical areas. Hence statement 1 is incorrect The MPI assesses poverty by evaluating deprivations across ten indicators grouped into three dimensions: Health: Nutrition and child mortality. Education: Years of schooling and school attendance. Living Standards: Cooking fuel, sanitation, drinking water, electricity, housing, and assets. These indicators collectively capture the multifaceted nature of poverty beyond mere income levels. Hence statement 2 is correct Incorrect Solution: D The Global Multidimensional Poverty Index (MPI) is an international measure that captures acute poverty by considering multiple deprivations across three key dimensions: health, education, and living standards. Developed by the Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP), the MPI provides a comprehensive assessment of poverty beyond traditional income-based metrics. While there is often an inverse relationship between per capita income and multidimensional poverty, an increase in per capita income does not necessarily lead to a reduction in MPI. This is because the MPI measures deprivations in specific indicators such as nutrition, child mortality, years of schooling, and access to essential services. It’s possible for a country’s average income to rise without significant improvements in these non-income dimensions. For instance, income growth might be unevenly distributed or concentrated among higher-income groups, leaving the poorest segments still deprived in critical areas. Hence statement 1 is incorrect The MPI assesses poverty by evaluating deprivations across ten indicators grouped into three dimensions: Health: Nutrition and child mortality. Education: Years of schooling and school attendance. Living Standards: Cooking fuel, sanitation, drinking water, electricity, housing, and assets. These indicators collectively capture the multifaceted nature of poverty beyond mere income levels. Hence statement 2 is correct

#### 9. Question

Consider the following statements: Statement I: A rise in per capita income necessarily reduces multidimensional poverty indices like the Global Multidimensional Poverty Index (MPI). Statement II: MPI incorporates non-income deprivations such as education, healthcare, and living standards.

Which of the following is correct?

• a) Both Statement-I and II are correct, and II explains I

• b) Both Statement-I and II are correct, but II does not explain I

• c) Statement-I is correct, but II is incorrect

• d) Statement-I is incorrect, but II is correct

Solution: D

The Global Multidimensional Poverty Index (MPI) is an international measure that captures acute poverty by considering multiple deprivations across three key dimensions: health, education, and living standards.

Developed by the Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP), the MPI provides a comprehensive assessment of poverty beyond traditional income-based metrics.

While there is often an inverse relationship between per capita income and multidimensional poverty, an increase in per capita income does not necessarily lead to a reduction in MPI.

This is because the MPI measures deprivations in specific indicators such as nutrition, child mortality, years of schooling, and access to essential services.

It’s possible for a country’s average income to rise without significant improvements in these non-income dimensions. For instance, income growth might be unevenly distributed or concentrated among higher-income groups, leaving the poorest segments still deprived in critical areas.

Hence statement 1 is incorrect

The MPI assesses poverty by evaluating deprivations across ten indicators grouped into three dimensions:

Health: Nutrition and child mortality.

Education: Years of schooling and school attendance.

Living Standards: Cooking fuel, sanitation, drinking water, electricity, housing, and assets.

These indicators collectively capture the multifaceted nature of poverty beyond mere income levels.

Hence statement 2 is correct

Solution: D

While there is often an inverse relationship between per capita income and multidimensional poverty, an increase in per capita income does not necessarily lead to a reduction in MPI.

This is because the MPI measures deprivations in specific indicators such as nutrition, child mortality, years of schooling, and access to essential services.

Hence statement 1 is incorrect

The MPI assesses poverty by evaluating deprivations across ten indicators grouped into three dimensions:

Health: Nutrition and child mortality.

Education: Years of schooling and school attendance.

Living Standards: Cooking fuel, sanitation, drinking water, electricity, housing, and assets.

These indicators collectively capture the multifaceted nature of poverty beyond mere income levels.

Hence statement 2 is correct

• Question 10 of 30 10. Question 1 points How many of the following are excluded from GDP calculations? Unpaid domestic work Unrecorded transactions in the informal sector Depreciation of capital goods Transfer payments Select the correct answer using the code given below: a) Only one b) Only two c) Only three d) All four Correct Solution: C Gross Domestic Product (GDP) measures the total market value of all final goods and services produced within a country in a specific period. However, it excludes certain non-market and non-productive activities. Excluded: Activities like childcare, cooking, and cleaning are not monetized or recorded in market transactions. Informal/unrecorded economic activities (e.g., cash-based labour, bartering) are not captured in official GDP data. Payments like Social Security, unemployment benefits, or remittances do not involve production of goods/services, thus excluded from GDP. Hence, statement 1, statement 2 and statement 4 are correct. Included: GDP is a gross measure that does not subtract depreciation (wear and tear on machinery, buildings). Depreciation is only excluded when calculating net domestic product (NDP), not GDP Hence, statement 3 is incorrect. Incorrect Solution: C Gross Domestic Product (GDP) measures the total market value of all final goods and services produced within a country in a specific period. However, it excludes certain non-market and non-productive activities. Excluded: Activities like childcare, cooking, and cleaning are not monetized or recorded in market transactions. Informal/unrecorded economic activities (e.g., cash-based labour, bartering) are not captured in official GDP data. Payments like Social Security, unemployment benefits, or remittances do not involve production of goods/services, thus excluded from GDP. Hence, statement 1, statement 2 and statement 4 are correct. Included: GDP is a gross measure that does not subtract depreciation (wear and tear on machinery, buildings). Depreciation is only excluded when calculating net domestic product (NDP), not GDP Hence, statement 3 is incorrect.

#### 10. Question

How many of the following are excluded from GDP calculations?

• Unpaid domestic work

• Unrecorded transactions in the informal sector

• Depreciation of capital goods

• Transfer payments

Select the correct answer using the code given below:

• a) Only one

• b) Only two

• c) Only three

• d) All four

Solution: C

Gross Domestic Product (GDP) measures the total market value of all final goods and services produced within a country in a specific period. However, it excludes certain non-market and non-productive activities.

Excluded:

• Activities like childcare, cooking, and cleaning are not monetized or recorded in market transactions.

• Informal/unrecorded economic activities (e.g., cash-based labour, bartering) are not captured in official GDP data. Payments like Social Security, unemployment benefits, or remittances do not involve production of goods/services, thus excluded from GDP.

• Hence, statement 1, statement 2 and statement 4 are correct.

Included:

• GDP is a gross measure that does not subtract depreciation (wear and tear on machinery, buildings). Depreciation is only excluded when calculating net domestic product (NDP), not GDP

Hence, statement 3 is incorrect.

Solution: C

Excluded:

• Activities like childcare, cooking, and cleaning are not monetized or recorded in market transactions.

• Hence, statement 1, statement 2 and statement 4 are correct.

Included:

• GDP is a gross measure that does not subtract depreciation (wear and tear on machinery, buildings). Depreciation is only excluded when calculating net domestic product (NDP), not GDP

Hence, statement 3 is incorrect.

• Question 11 of 30 11. Question 1 points When the price of smartphones decreases, a retailer notices that the demand for mobile data plans increases, while the demand for landline telephone services decreases. Based on this information, which relationship is correct? a) Smartphones and mobile data plans are substitute goods b) Smartphones and mobile data plans are complementary goods c) Smartphones and landline telephone services are complementary goods d) Mobile data plans and landline telephone services are complementary goods Correct Solution: B In economics, understanding the relationships between goods is crucial for analyzing consumer behavior and market dynamics. Two fundamental concepts in this context are substitute goods and complementary goods. Substitute Goods: These are products that can replace each other in use. An increase in the price of one leads to an increase in the demand for the other, as consumers switch to the more affordable option. Eg: Tea and coffee Complementary Goods: These are products that are often used together. A decrease in the price of one leads to an increase in the demand for the other, as the combined cost of using both becomes more attractive. For instance, printers and ink cartridges are complements; a drop in printer prices can boost the demand for ink cartridges. Smartphones and Mobile Data Plans Complementary Relationship: A price decrease in smartphones leads to higher smartphone adoption, which naturally increases demand for mobile data plans (required for internet access, apps, etc.).”smartphones and data plans” are classic complementary goods, with a positive cross-price elasticity. Example: Cheaper smartphones boost demand for data plans. Smartphones and Landline Services Substitute Relationship: As smartphones become more affordable, consumers replace landline services with mobile alternatives. Hence, option (b) is correct. Incorrect Solution: B In economics, understanding the relationships between goods is crucial for analyzing consumer behavior and market dynamics. Two fundamental concepts in this context are substitute goods and complementary goods. Substitute Goods: These are products that can replace each other in use. An increase in the price of one leads to an increase in the demand for the other, as consumers switch to the more affordable option. Eg: Tea and coffee Complementary Goods: These are products that are often used together. A decrease in the price of one leads to an increase in the demand for the other, as the combined cost of using both becomes more attractive. For instance, printers and ink cartridges are complements; a drop in printer prices can boost the demand for ink cartridges. Smartphones and Mobile Data Plans Complementary Relationship: A price decrease in smartphones leads to higher smartphone adoption, which naturally increases demand for mobile data plans (required for internet access, apps, etc.).”smartphones and data plans” are classic complementary goods, with a positive cross-price elasticity. Example: Cheaper smartphones boost demand for data plans. Smartphones and Landline Services Substitute Relationship: As smartphones become more affordable, consumers replace landline services with mobile alternatives. Hence, option (b) is correct.

#### 11. Question

When the price of smartphones decreases, a retailer notices that the demand for mobile data plans increases, while the demand for landline telephone services decreases. Based on this information, which relationship is correct?

• a) Smartphones and mobile data plans are substitute goods

• b) Smartphones and mobile data plans are complementary goods

• c) Smartphones and landline telephone services are complementary goods

• d) Mobile data plans and landline telephone services are complementary goods

Solution: B

In economics, understanding the relationships between goods is crucial for analyzing consumer behavior and market dynamics. Two fundamental concepts in this context are substitute goods and complementary goods.

Substitute Goods: These are products that can replace each other in use. An increase in the price of one leads to an increase in the demand for the other, as consumers switch to the more affordable option.

Eg: Tea and coffee

Complementary Goods: These are products that are often used together. A decrease in the price of one leads to an increase in the demand for the other, as the combined cost of using both becomes more attractive. For instance, printers and ink cartridges are complements; a drop in printer prices can boost the demand for ink cartridges.

Smartphones and Mobile Data Plans

Complementary Relationship: A price decrease in smartphones leads to higher smartphone adoption, which naturally increases demand for mobile data plans (required for internet access, apps, etc.).”smartphones and data plans” are classic complementary goods, with a positive cross-price elasticity.

Example: Cheaper smartphones boost demand for data plans.

Smartphones and Landline Services

Substitute Relationship: As smartphones become more affordable, consumers replace landline services with mobile alternatives.

Hence, option (b) is correct.

Solution: B

Eg: Tea and coffee

Smartphones and Mobile Data Plans

Example: Cheaper smartphones boost demand for data plans.

Smartphones and Landline Services

Substitute Relationship: As smartphones become more affordable, consumers replace landline services with mobile alternatives.

Hence, option (b) is correct.

• Question 12 of 30 12. Question 1 points Which of the following best describes “technological unemployment”? a) Layoffs during a recession b) Automation reducing manual jobs c) Workers quitting low-wage jobs d) Seasonal agricultural unemployment Correct Solution: B Technological unemployment occurs when advancements in technology (e.g., automation, AI, robotics) displace workers by replacing human labour with machines or software. It is a subset of structural unemployment, where workers’ skills no longer match job requirements due to technological shifts. Automation displaces routine, manual roles (e.g., factory workers, cashiers) through technologies like robotics and self-checkout systems. Manufacturing: Robotic assembly lines replacing manual labour. Retail: Self-service kiosks reducing cashier jobs. Hence, option (b) is correct. Incorrect Solution: B Technological unemployment occurs when advancements in technology (e.g., automation, AI, robotics) displace workers by replacing human labour with machines or software. It is a subset of structural unemployment, where workers’ skills no longer match job requirements due to technological shifts. Automation displaces routine, manual roles (e.g., factory workers, cashiers) through technologies like robotics and self-checkout systems. Manufacturing: Robotic assembly lines replacing manual labour. Retail: Self-service kiosks reducing cashier jobs. Hence, option (b) is correct.

#### 12. Question

Which of the following best describes “technological unemployment”?

• a) Layoffs during a recession

• b) Automation reducing manual jobs

• c) Workers quitting low-wage jobs

• d) Seasonal agricultural unemployment

Solution: B

Technological unemployment occurs when advancements in technology (e.g., automation, AI, robotics) displace workers by replacing human labour with machines or software. It is a subset of structural unemployment, where workers’ skills no longer match job requirements due to technological shifts.

Automation displaces routine, manual roles (e.g., factory workers, cashiers) through technologies like robotics and self-checkout systems.

Manufacturing: Robotic assembly lines replacing manual labour.

Retail: Self-service kiosks reducing cashier jobs.

Hence, option (b) is correct.

Solution: B

Automation displaces routine, manual roles (e.g., factory workers, cashiers) through technologies like robotics and self-checkout systems.

Manufacturing: Robotic assembly lines replacing manual labour.

Retail: Self-service kiosks reducing cashier jobs.

Hence, option (b) is correct.

• Question 13 of 30 13. Question 1 points Which of the following combinations align with the Impossible Trinity framework? Floating exchange rate, capital controls, independent monetary policy Fixed exchange rate, free capital movement, inflation-targeting by the central bank Managed exchange rate, partial capital controls, interest rate adjustments Select the correct answer using the codes given below: a) 1 and 2 only b) 2 and 3 only c) 1 and 3 only d) 1, 2 and 3 Correct Solution: C The Impossible Trinity, or trilemma, asserts that a country cannot simultaneously maintain a fixed exchange rate, allow free capital movement, and exercise independent monetary policy. Policymakers must prioritize two objectives while sacrificing the third. A floating exchange rate allows market forces to determine currency value. Capital controls restrict cross-border financial flows, enabling monetary independence. This aligns with the trilemma, as capital controls permit independent policy despite a non-fixed exchange rate. Hence statement 1 is correct A fixed exchange rate requires the central bank to align interest rates with the pegged currency’s country. Free capital movement eliminates monetary autonomy, making inflation-targeting unviable. This violates the trilemma, as all three goals cannot coexist. Hence statement 2 is incorrect A managed exchange rate (e.g., India’s system) allows limited flexibility while retaining some stability. Partial capital controls mitigate speculative flows, enabling modest monetary adjustments. This combination balances trade-offs within the trilemma framework. Hence statement 3 is correct Incorrect Solution: C The Impossible Trinity, or trilemma, asserts that a country cannot simultaneously maintain a fixed exchange rate, allow free capital movement, and exercise independent monetary policy. Policymakers must prioritize two objectives while sacrificing the third. A floating exchange rate allows market forces to determine currency value. Capital controls restrict cross-border financial flows, enabling monetary independence. This aligns with the trilemma, as capital controls permit independent policy despite a non-fixed exchange rate. Hence statement 1 is correct A fixed exchange rate requires the central bank to align interest rates with the pegged currency’s country. Free capital movement eliminates monetary autonomy, making inflation-targeting unviable. This violates the trilemma, as all three goals cannot coexist. Hence statement 2 is incorrect A managed exchange rate (e.g., India’s system) allows limited flexibility while retaining some stability. Partial capital controls mitigate speculative flows, enabling modest monetary adjustments. This combination balances trade-offs within the trilemma framework. Hence statement 3 is correct

#### 13. Question

Which of the following combinations align with the Impossible Trinity framework?

• Floating exchange rate, capital controls, independent monetary policy

• Fixed exchange rate, free capital movement, inflation-targeting by the central bank

• Managed exchange rate, partial capital controls, interest rate adjustments

Select the correct answer using the codes given below:

• a) 1 and 2 only

• b) 2 and 3 only

• c) 1 and 3 only

• d) 1, 2 and 3

Solution: C

The Impossible Trinity, or trilemma, asserts that a country cannot simultaneously maintain a fixed exchange rate, allow free capital movement, and exercise independent monetary policy. Policymakers must prioritize two objectives while sacrificing the third.

A floating exchange rate allows market forces to determine currency value. Capital controls restrict cross-border financial flows, enabling monetary independence.

This aligns with the trilemma, as capital controls permit independent policy despite a non-fixed exchange rate.

Hence statement 1 is correct

A fixed exchange rate requires the central bank to align interest rates with the pegged currency’s country. Free capital movement eliminates monetary autonomy, making inflation-targeting unviable. This violates the trilemma, as all three goals cannot coexist.

Hence statement 2 is incorrect

A managed exchange rate (e.g., India’s system) allows limited flexibility while retaining some stability. Partial capital controls mitigate speculative flows, enabling modest monetary adjustments. This combination balances trade-offs within the trilemma framework.

Hence statement 3 is correct

Solution: C

A floating exchange rate allows market forces to determine currency value. Capital controls restrict cross-border financial flows, enabling monetary independence.

This aligns with the trilemma, as capital controls permit independent policy despite a non-fixed exchange rate.

Hence statement 1 is correct

Hence statement 2 is incorrect

Hence statement 3 is correct

• Question 14 of 30 14. Question 1 points The National Planning Committee, one of the earliest efforts toward economic planning in Indi, was established in 1938 under the auspices of: (a) The British colonial government, as part of the Viceroy’s Executive Council initiatives. (b) The Indian National Congress, spearheaded by Subhas Chandra Bose, with Jawaharlal Nehru as its chairman. (c) The Princely State of Mysore under Mirza M. Visvesvaraya’s administration. (d) The Federation of Indian Chambers of Commerce and Industry (FICCI) led by N.R. Sarkar. Correct Solution: B The National Planning Committee (NPC) marked a pivotal early initiative in India’s economic planning, established against the backdrop of the freedom struggle. The NPC was formed in October 1938 under the leadership of Subhas Chandra Bose, who was then the President of the Indian National Congress (INC). Bose, persuaded by economist Meghnad Saha, recognized the need for structured economic development to address poverty and colonial exploitation. However, due to his role as INC president, he invited Jawaharlal Nehru to chair the committee. Hence, option (b) is correct. Incorrect Solution: B The National Planning Committee (NPC) marked a pivotal early initiative in India’s economic planning, established against the backdrop of the freedom struggle. The NPC was formed in October 1938 under the leadership of Subhas Chandra Bose, who was then the President of the Indian National Congress (INC). Bose, persuaded by economist Meghnad Saha, recognized the need for structured economic development to address poverty and colonial exploitation. However, due to his role as INC president, he invited Jawaharlal Nehru to chair the committee. Hence, option (b) is correct.

#### 14. Question

The National Planning Committee, one of the earliest efforts toward economic planning in Indi, was established in 1938 under the auspices of:

• (a) The British colonial government, as part of the Viceroy’s Executive Council initiatives.

• (b) The Indian National Congress, spearheaded by Subhas Chandra Bose, with Jawaharlal Nehru as its chairman.

• (c) The Princely State of Mysore under Mirza M. Visvesvaraya’s administration.

• (d) The Federation of Indian Chambers of Commerce and Industry (FICCI) led by N.R. Sarkar.

Solution: B

The National Planning Committee (NPC) marked a pivotal early initiative in India’s economic planning, established against the backdrop of the freedom struggle.

The NPC was formed in October 1938 under the leadership of Subhas Chandra Bose, who was then the President of the Indian National Congress (INC). Bose, persuaded by economist Meghnad Saha, recognized the need for structured economic development to address poverty and colonial exploitation. However, due to his role as INC president, he invited Jawaharlal Nehru to chair the committee.

Hence, option (b) is correct.

Solution: B

The National Planning Committee (NPC) marked a pivotal early initiative in India’s economic planning, established against the backdrop of the freedom struggle.

Hence, option (b) is correct.

• Question 15 of 30 15. Question 1 points Which of the following statements correctly distinguishes the NITI Aayog from the erstwhile Planning Commission of India? The Planning Commission was a statutory body established by law, whereas NITI Aayog was created by an executive resolution (non-statutory). NITI Aayog provides for direct participation of state Chief Ministers in its governing structure, unlike the Planning Commission’s top-down approach. Select the correct answer using the code given below: (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Correct Solution: B NITI Aayog and the Planning Commission represent two distinct approaches to India’s economic planning. The Planning Commission was not a statutory body but an executive institution established by a 1950 government resolution. Similarly, NITI Aayog was created in 2015 through an executive resolution, not legislation. Both bodies are non-statutory. Hence Statement 1 is incorrect. NITI Aayog’s Governing Council includes Chief Ministers and Lieutenant Governors, ensuring direct state involvement in policy formulation. The Planning Commission operated through a top-down model, with states limited to National Development Council meetings Hence statement 2 is correct Incorrect Solution: B NITI Aayog and the Planning Commission represent two distinct approaches to India’s economic planning. The Planning Commission was not a statutory body but an executive institution established by a 1950 government resolution. Similarly, NITI Aayog was created in 2015 through an executive resolution, not legislation. Both bodies are non-statutory. Hence Statement 1 is incorrect. NITI Aayog’s Governing Council includes Chief Ministers and Lieutenant Governors, ensuring direct state involvement in policy formulation. The Planning Commission operated through a top-down model, with states limited to National Development Council meetings Hence statement 2 is correct

#### 15. Question

Which of the following statements correctly distinguishes the NITI Aayog from the erstwhile Planning Commission of India?

• The Planning Commission was a statutory body established by law, whereas NITI Aayog was created by an executive resolution (non-statutory).

• NITI Aayog provides for direct participation of state Chief Ministers in its governing structure, unlike the Planning Commission’s top-down approach.

Select the correct answer using the code given below:

• (a) 1 only

• (b) 2 only

• (c) Both 1 and 2

• (d) Neither 1 nor 2

Solution: B

NITI Aayog and the Planning Commission represent two distinct approaches to India’s economic planning.

The Planning Commission was not a statutory body but an executive institution established by a 1950 government resolution. Similarly, NITI Aayog was created in 2015 through an executive resolution, not legislation. Both bodies are non-statutory.

Hence Statement 1 is incorrect.

NITI Aayog’s Governing Council includes Chief Ministers and Lieutenant Governors, ensuring direct state involvement in policy formulation. The Planning Commission operated through a top-down model, with states limited to National Development Council meetings

Hence statement 2 is correct

Solution: B

NITI Aayog and the Planning Commission represent two distinct approaches to India’s economic planning.

Hence Statement 1 is incorrect.

Hence statement 2 is correct

• Question 16 of 30 16. Question 1 points Which of the following pairs is *NOT* correctly matched in the context of economic planning in India? (a) P.C. Mahalanobis – Architect of the Second Five-Year Plan’s heavy-industry model (b) D.R. Gadgil – Deputy Chairman of Planning Commission who devised a formula for Plan resource distribution (c) J.P. Narayan – Co-author of the Bombay Plan (1944) outlining post-war industrial development (d) M.N. Roy – Proponent of the “People’s Plan” (1945) focusing on a ten-year development scheme Correct Solution: C India’s economic planning framework emerged post-independence, emphasizing state-led industrialization and welfare. Key milestones include Visvesvaraya’s 1934 proposal for a planned economy, the Bombay Plan (1944) by industrialists, and the establishment of the Planning Commission in 1950. Five-Year Plans guided development, with resource allocation governed by formulas like the Gadgil-Mukherjee Formula. The Bombay Plan (1944) was drafted by eight industrialists and technocrats, including J.R.D. Tata, G.D. Birla, and Purshottamdas Thakurdas. It advocated state-led industrialization and a mixed economy. J.P. Narayan, a socialist leader, authored the Sarvodaya Plan (1950) focusing on village-based development, unrelated to the Bombay Plan. Hence, option (c) is correct. Incorrect Solution: C India’s economic planning framework emerged post-independence, emphasizing state-led industrialization and welfare. Key milestones include Visvesvaraya’s 1934 proposal for a planned economy, the Bombay Plan (1944) by industrialists, and the establishment of the Planning Commission in 1950. Five-Year Plans guided development, with resource allocation governed by formulas like the Gadgil-Mukherjee Formula. The Bombay Plan (1944) was drafted by eight industrialists and technocrats, including J.R.D. Tata, G.D. Birla, and Purshottamdas Thakurdas. It advocated state-led industrialization and a mixed economy. J.P. Narayan, a socialist leader, authored the Sarvodaya Plan (1950) focusing on village-based development, unrelated to the Bombay Plan. Hence, option (c) is correct.

#### 16. Question

Which of the following pairs is *NOT* correctly matched in the context of economic planning in India?

• (a) P.C. Mahalanobis – Architect of the Second Five-Year Plan’s heavy-industry model

• (b) D.R. Gadgil – Deputy Chairman of Planning Commission who devised a formula for Plan resource distribution

• (c) J.P. Narayan – Co-author of the Bombay Plan (1944) outlining post-war industrial development

• (d) M.N. Roy – Proponent of the “People’s Plan” (1945) focusing on a ten-year development scheme

Solution: C

India’s economic planning framework emerged post-independence, emphasizing state-led industrialization and welfare. Key milestones include Visvesvaraya’s 1934 proposal for a planned economy, the Bombay Plan (1944) by industrialists, and the establishment of the Planning Commission in 1950. Five-Year Plans guided development, with resource allocation governed by formulas like the Gadgil-Mukherjee Formula.

The Bombay Plan (1944) was drafted by eight industrialists and technocrats, including J.R.D. Tata, G.D. Birla, and Purshottamdas Thakurdas. It advocated state-led industrialization and a mixed economy. J.P. Narayan, a socialist leader, authored the Sarvodaya Plan (1950) focusing on village-based development, unrelated to the Bombay Plan.

Hence, option (c) is correct.

Solution: C

Hence, option (c) is correct.

• Question 17 of 30 17. Question 1 points Which of the following factors would reduce Incremental Capital-Output Ratio (ICOR)? Technological innovation. Improved labour skills. Higher interest rates. Select the correct answer using the codes given below (a) 1 and 2 only (b) 2 only (c) 3 only (d) 1, 2 and 3 Correct Solution: A The Incremental Capital-Output Ratio (ICOR) measures the additional capital required to generate a unit increase in economic output. A lower ICOR indicates greater efficiency in capital utilization, reflecting improved productivity and sustainable growth. Technological advancements enhance capital efficiency by reducing the need for incremental capital to achieve higher output. For example: AI and ML integration in healthcare (AI-driven diagnostics) and manufacturing (predictive maintenance) lowers capital expenditure while boosting productivity. Hence statement 1 is correct Skilled labour increases productivity, enabling higher output with the same capital. For instance: Skill development in IT and software sectors reduces dependency on capital-intensive manufacturing, lowering ICOR. Enhanced workforce efficiency in agriculture (precision farming) and services (digital platforms) reduces the capital needed per unit of output. Hence statement 2 is correct Higher interest rates increase borrowing costs, discouraging capital investment. However, this does not inherently improve capital efficiency. The higher rates can raise capital-output ratios by inflating the nominal value of capital relative to output. For example, elevated interest rates in India post-2008 led to underutilized capacity, temporarily lowering ICOR as existing investments bore delayed returns. Hence statement 3 is incorrect Incorrect Solution: A The Incremental Capital-Output Ratio (ICOR) measures the additional capital required to generate a unit increase in economic output. A lower ICOR indicates greater efficiency in capital utilization, reflecting improved productivity and sustainable growth. Technological advancements enhance capital efficiency by reducing the need for incremental capital to achieve higher output. For example: AI and ML integration in healthcare (AI-driven diagnostics) and manufacturing (predictive maintenance) lowers capital expenditure while boosting productivity. Hence statement 1 is correct Skilled labour increases productivity, enabling higher output with the same capital. For instance: Skill development in IT and software sectors reduces dependency on capital-intensive manufacturing, lowering ICOR. Enhanced workforce efficiency in agriculture (precision farming) and services (digital platforms) reduces the capital needed per unit of output. Hence statement 2 is correct Higher interest rates increase borrowing costs, discouraging capital investment. However, this does not inherently improve capital efficiency. The higher rates can raise capital-output ratios by inflating the nominal value of capital relative to output. For example, elevated interest rates in India post-2008 led to underutilized capacity, temporarily lowering ICOR as existing investments bore delayed returns. Hence statement 3 is incorrect

#### 17. Question

Which of the following factors would reduce Incremental Capital-Output Ratio (ICOR)?

• Technological innovation.

• Improved labour skills.

• Higher interest rates.

Select the correct answer using the codes given below

• (a) 1 and 2 only

• (b) 2 only

• (c) 3 only

• (d) 1, 2 and 3

Solution: A

The Incremental Capital-Output Ratio (ICOR) measures the additional capital required to generate a unit increase in economic output. A lower ICOR indicates greater efficiency in capital utilization, reflecting improved productivity and sustainable growth.

Technological advancements enhance capital efficiency by reducing the need for incremental capital to achieve higher output. For example:

AI and ML integration in healthcare (AI-driven diagnostics) and manufacturing (predictive maintenance) lowers capital expenditure while boosting productivity.

Hence statement 1 is correct

Skilled labour increases productivity, enabling higher output with the same capital.

For instance: Skill development in IT and software sectors reduces dependency on capital-intensive manufacturing, lowering ICOR. Enhanced workforce efficiency in agriculture (precision farming) and services (digital platforms) reduces the capital needed per unit of output.

Hence statement 2 is correct

Higher interest rates increase borrowing costs, discouraging capital investment. However, this does not inherently improve capital efficiency. The higher rates can raise capital-output ratios by inflating the nominal value of capital relative to output. For example, elevated interest rates in India post-2008 led to underutilized capacity, temporarily lowering ICOR as existing investments bore delayed returns.

Hence statement 3 is incorrect

Solution: A

Technological advancements enhance capital efficiency by reducing the need for incremental capital to achieve higher output. For example:

AI and ML integration in healthcare (AI-driven diagnostics) and manufacturing (predictive maintenance) lowers capital expenditure while boosting productivity.

Hence statement 1 is correct

Skilled labour increases productivity, enabling higher output with the same capital.

Hence statement 2 is correct

Hence statement 3 is incorrect

• Question 18 of 30 18. Question 1 points How many of the following is/are considered as “above-the-line” expenditures? Salaries of government employees. Interest payments on public debt. Credit guarantees for SMEs. Select the correct answer using the codes given below (a) Only one (b) Only two (c) All three (d) None Correct Solution: B The term “above-the-line” expenditures in government accounting refers to regular, budgeted expenses that directly affect the fiscal deficit. These are recurring operational costs recorded in the main budget, distinct from “below-the-line” items like off-budget borrowings or contingent liabilities. Salaries are recurring operational costs under “Compensation of Employees,” a core budget item. Hence statement 1 is correct Interest payments are mandatory, recurring obligations included in the fiscal deficit calculation. Hence statement 2 is correct Credit guarantees are contingent liabilities that do not impact the fiscal deficit unless invoked. Example: Off-budget borrowings (like guarantees) are excluded from deficit calculations. The IMF categorizes such guarantees as “below-the-line” due to their contingent nature. Hence statement 3 is incorrect Incorrect Solution: B The term “above-the-line” expenditures in government accounting refers to regular, budgeted expenses that directly affect the fiscal deficit. These are recurring operational costs recorded in the main budget, distinct from “below-the-line” items like off-budget borrowings or contingent liabilities. Salaries are recurring operational costs under “Compensation of Employees,” a core budget item. Hence statement 1 is correct Interest payments are mandatory, recurring obligations included in the fiscal deficit calculation. Hence statement 2 is correct Credit guarantees are contingent liabilities that do not impact the fiscal deficit unless invoked. Example: Off-budget borrowings (like guarantees) are excluded from deficit calculations. The IMF categorizes such guarantees as “below-the-line” due to their contingent nature. Hence statement 3 is incorrect

#### 18. Question

How many of the following is/are considered as “above-the-line” expenditures?

• Salaries of government employees.

• Interest payments on public debt.

• Credit guarantees for SMEs.

Select the correct answer using the codes given below

• (a) Only one

• (b) Only two

• (c) All three

Solution: B

The term “above-the-line” expenditures in government accounting refers to regular, budgeted expenses that directly affect the fiscal deficit. These are recurring operational costs recorded in the main budget, distinct from “below-the-line” items like off-budget borrowings or contingent liabilities.

Salaries are recurring operational costs under “Compensation of Employees,” a core budget item.

Hence statement 1 is correct

Interest payments are mandatory, recurring obligations included in the fiscal deficit calculation.

Hence statement 2 is correct

Credit guarantees are contingent liabilities that do not impact the fiscal deficit unless invoked. Example: Off-budget borrowings (like guarantees) are excluded from deficit calculations. The IMF categorizes such guarantees as “below-the-line” due to their contingent nature.

Hence statement 3 is incorrect

Solution: B

Salaries are recurring operational costs under “Compensation of Employees,” a core budget item.

Hence statement 1 is correct

Interest payments are mandatory, recurring obligations included in the fiscal deficit calculation.

Hence statement 2 is correct

Hence statement 3 is incorrect

• Question 19 of 30 19. Question 1 points Which of the following can be considered as capital transfer? (a) Unemployment allowance. (b) Grants for building highways. (c) Fertilizer subsidies to farmers. (d) Mid-day meal scheme funding. Correct Solution: B Capital transfers are transactions involving the transfer of assets or funds specifically designated for acquiring/disposing of assets, impacting the balance sheets of involved parties. They differ from current transfers (recurring expenses like subsidies or welfare payments) by focusing on long-term investments. Grants for highways qualify as capital transfers under investment grants . Unemployment allowance, fertilizer subsidies, and mid-day meal funding are recurring expenses classified as current transfers Hence, option (b) is correct. Incorrect Solution: B Capital transfers are transactions involving the transfer of assets or funds specifically designated for acquiring/disposing of assets, impacting the balance sheets of involved parties. They differ from current transfers (recurring expenses like subsidies or welfare payments) by focusing on long-term investments. Grants for highways qualify as capital transfers under investment grants . Unemployment allowance, fertilizer subsidies, and mid-day meal funding are recurring expenses classified as current transfers Hence, option (b) is correct.

#### 19. Question

Which of the following can be considered as capital transfer?

• (a) Unemployment allowance.

• (b) Grants for building highways.

• (c) Fertilizer subsidies to farmers.

• (d) Mid-day meal scheme funding.

Solution: B

Capital transfers are transactions involving the transfer of assets or funds specifically designated for acquiring/disposing of assets, impacting the balance sheets of involved parties. They differ from current transfers (recurring expenses like subsidies or welfare payments) by focusing on long-term investments.

Grants for highways qualify as capital transfers under investment grants . Unemployment allowance, fertilizer subsidies, and mid-day meal funding are recurring expenses classified as current transfers

Hence, option (b) is correct.

Solution: B

Hence, option (b) is correct.

• Question 20 of 30 20. Question 1 points Consider the following statements: Statement-I: Over 90% of employment generated in India since 1991 is categorized as formal or organized employment. Statement-II: Trade liberalization increased subcontracting linkages between formal and informal sectors, expanding informal employment. Which one of the following is correct? (a) Both Statement-I and Statement-II are correct, and Statement-II explains Statement-I (b) Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I (c) Statement-I is correct, but Statement-II is incorrect (d) Statement-I is incorrect, but Statement-II is correct Correct Solution: D According to an analysis of NSSO data (2011–12), 92% of the 61 million jobs created between 1991 and 2012 were informal. The formal workforce grew from 6% (1999–2000) to just 9% (2011–12), with 51% of organized-sector jobs still being informal. Hence statement 1 is incorrect Post-liberalization, formal industries increasingly subcontracted labour-intensive tasks to informal units to reduce costs: vertical linkages between formal and informal sectors, with formal firms outsourcing semi-finished production to informal units (e.g., garments in Tiruppur, rice processing in Punjab). Subcontracting enabled formal firms to bypass labor regulations, leading to a rise in informal employment within the organized sector (e.g., contract workers in IT/BPOs and manufacturing). Hence statement 2 is correct Incorrect Solution: D According to an analysis of NSSO data (2011–12), 92% of the 61 million jobs created between 1991 and 2012 were informal. The formal workforce grew from 6% (1999–2000) to just 9% (2011–12), with 51% of organized-sector jobs still being informal. Hence statement 1 is incorrect Post-liberalization, formal industries increasingly subcontracted labour-intensive tasks to informal units to reduce costs: vertical linkages between formal and informal sectors, with formal firms outsourcing semi-finished production to informal units (e.g., garments in Tiruppur, rice processing in Punjab). Subcontracting enabled formal firms to bypass labor regulations, leading to a rise in informal employment within the organized sector (e.g., contract workers in IT/BPOs and manufacturing). Hence statement 2 is correct

#### 20. Question

Consider the following statements: Statement-I: Over 90% of employment generated in India since 1991 is categorized as formal or organized employment. Statement-II: Trade liberalization increased subcontracting linkages between formal and informal sectors, expanding informal employment.

Which one of the following is correct?

• (a) Both Statement-I and Statement-II are correct, and Statement-II explains Statement-I

• (b) Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I

• (c) Statement-I is correct, but Statement-II is incorrect

• (d) Statement-I is incorrect, but Statement-II is correct

Solution: D

According to an analysis of NSSO data (2011–12), 92% of the 61 million jobs created between 1991 and 2012 were informal. The formal workforce grew from 6% (1999–2000) to just 9% (2011–12), with 51% of organized-sector jobs still being informal.

Hence statement 1 is incorrect

Post-liberalization, formal industries increasingly subcontracted labour-intensive tasks to informal units to reduce costs: vertical linkages between formal and informal sectors, with formal firms outsourcing semi-finished production to informal units (e.g., garments in Tiruppur, rice processing in Punjab). Subcontracting enabled formal firms to bypass labor regulations, leading to a rise in informal employment within the organized sector (e.g., contract workers in IT/BPOs and manufacturing).

Hence statement 2 is correct

Solution: D

Hence statement 1 is incorrect

Hence statement 2 is correct

• Question 21 of 30 21. Question 1 points Bela block printing, a traditional textile craft of India, refers to (a) a hand-painted cotton textile in South India (b) a handmade drawing on bamboo handicrafts in North-East India (c) a block-printing technique using bold designs and vibrant colors on textured fabrics in Gujarat (d) a handwoven silk textile with natural dye patterns in North-Western India Correct Solution: C Bela Block Printing: Bela block printing is a traditional textile art known for its bold designs, striking colour combinations, and graphic motifs. Primarily practiced in Kachchh, Gujarat, by the Khatri community, which has a rich heritage in textile printing. Characterized by hand-block printing on textured fabrics, often using natural dyes. Once a thriving craft, it has seen a significant decline over the years due to industrialization and reduced demand for handmade textiles. Efforts are being made to revive the craft through artisan support programs and sustainable textile initiatives. https://www.thehindu.com/society/last-custodian-of-bela-lesser-known-craft-block-printing-kutch-gujarat/article68224478.ece Incorrect Solution: C Bela Block Printing: Bela block printing is a traditional textile art known for its bold designs, striking colour combinations, and graphic motifs. Primarily practiced in Kachchh, Gujarat, by the Khatri community, which has a rich heritage in textile printing. Characterized by hand-block printing on textured fabrics, often using natural dyes. Once a thriving craft, it has seen a significant decline over the years due to industrialization and reduced demand for handmade textiles. Efforts are being made to revive the craft through artisan support programs and sustainable textile initiatives. https://www.thehindu.com/society/last-custodian-of-bela-lesser-known-craft-block-printing-kutch-gujarat/article68224478.ece

#### 21. Question

Bela block printing, a traditional textile craft of India, refers to

• (a) a hand-painted cotton textile in South India

• (b) a handmade drawing on bamboo handicrafts in North-East India

• (c) a block-printing technique using bold designs and vibrant colors on textured fabrics in Gujarat

• (d) a handwoven silk textile with natural dye patterns in North-Western India

Solution: C

Bela Block Printing:

• Bela block printing is a traditional textile art known for its bold designs, striking colour combinations, and graphic motifs.

• Primarily practiced in Kachchh, Gujarat, by the Khatri community, which has a rich heritage in textile printing.

• Characterized by hand-block printing on textured fabrics, often using natural dyes.

• Once a thriving craft, it has seen a significant decline over the years due to industrialization and reduced demand for handmade textiles.

• Efforts are being made to revive the craft through artisan support programs and sustainable textile initiatives.

https://www.thehindu.com/society/last-custodian-of-bela-lesser-known-craft-block-printing-kutch-gujarat/article68224478.ece

Solution: C

Bela Block Printing:

• Bela block printing is a traditional textile art known for its bold designs, striking colour combinations, and graphic motifs.

• Primarily practiced in Kachchh, Gujarat, by the Khatri community, which has a rich heritage in textile printing.

• Characterized by hand-block printing on textured fabrics, often using natural dyes.

• Once a thriving craft, it has seen a significant decline over the years due to industrialization and reduced demand for handmade textiles.

• Efforts are being made to revive the craft through artisan support programs and sustainable textile initiatives.

https://www.thehindu.com/society/last-custodian-of-bela-lesser-known-craft-block-printing-kutch-gujarat/article68224478.ece

• Question 22 of 30 22. Question 1 points With reference to the UN Global Supply Chain Forum, consider the following statements The first edition of the forum was held in Barbados in May 2024, hosted by UN Trade and Development (UNCTAD) in collaboration with the Government of Barbados. One of the major outcomes of the forum was the launch of the “Manifesto for Intermodal, Low-Carbon, Efficient and Resilient Freight Transport and Logistics.” The forum primarily focused on high-income economies, excluding small island developing states (SIDS) from its discussions. The next edition of the forum is scheduled to be held in Saudi Arabia in 2026. Which of the statements given above are correct? (a) 1, 2, and 4 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2, 3, and 4 Correct Solution: A UN Global Supply Chain Forum: The first-ever UN Global Supply Chain Forum was held from May 21-24, 2024, in Barbados, hosted by UN Trade and Development (UNCTAD) in collaboration with the Government of Barbados. Attended by over 1,000 participants, including trade and transport ministers from Small Island Developing States (SIDS), UN agencies, major ports (e.g., Port of Seattle), and industry leaders in shipping and logistics. Addressed global trade disruptions, geopolitical tensions, climate change, and the impact of COVID-19 on supply chains. Discussions focused on decarbonizing global shipping, particularly in developing countries with renewable energy potential. Emphasized incentives for low- or zero-carbon fuels, safety frameworks for new fuels, and enhanced port readiness for sustainable energy transitions. Digital technologies were highlighted as crucial for enhancing supply chain resilience and improving logistics. A key outcome was the launch of the “Manifesto for Intermodal, Low-Carbon, Efficient, and Resilient Freight Transport and Logistics”, advocating for zero-emission fuels, optimized logistics, and sustainable value chains. Ministers from SIDS called for international financial support to promote green and sustainable technologies for energy efficiency and reducing marine pollution. The UN Trade and Development Trade-and-Transport Dataset was launched in collaboration with the World Bank, offering global data on over 100 commodities and various transport modes to analyze trade and transport costs. The next UN Global Supply Chain Forum is scheduled to be held in Saudi Arabia in 2026. https://unctad.org/news/un-global-supply-chain-forum-calls-resilience-amid-world-trade-disruptions Incorrect Solution: A UN Global Supply Chain Forum: The first-ever UN Global Supply Chain Forum was held from May 21-24, 2024, in Barbados, hosted by UN Trade and Development (UNCTAD) in collaboration with the Government of Barbados. Attended by over 1,000 participants, including trade and transport ministers from Small Island Developing States (SIDS), UN agencies, major ports (e.g., Port of Seattle), and industry leaders in shipping and logistics. Addressed global trade disruptions, geopolitical tensions, climate change, and the impact of COVID-19 on supply chains. Discussions focused on decarbonizing global shipping, particularly in developing countries with renewable energy potential. Emphasized incentives for low- or zero-carbon fuels, safety frameworks for new fuels, and enhanced port readiness for sustainable energy transitions. Digital technologies were highlighted as crucial for enhancing supply chain resilience and improving logistics. A key outcome was the launch of the “Manifesto for Intermodal, Low-Carbon, Efficient, and Resilient Freight Transport and Logistics”, advocating for zero-emission fuels, optimized logistics, and sustainable value chains. Ministers from SIDS called for international financial support to promote green and sustainable technologies for energy efficiency and reducing marine pollution. The UN Trade and Development Trade-and-Transport Dataset was launched in collaboration with the World Bank, offering global data on over 100 commodities and various transport modes to analyze trade and transport costs. The next UN Global Supply Chain Forum is scheduled to be held in Saudi Arabia in 2026. https://unctad.org/news/un-global-supply-chain-forum-calls-resilience-amid-world-trade-disruptions

#### 22. Question

With reference to the UN Global Supply Chain Forum, consider the following statements

• The first edition of the forum was held in Barbados in May 2024, hosted by UN Trade and Development (UNCTAD) in collaboration with the Government of Barbados.

• One of the major outcomes of the forum was the launch of the “Manifesto for Intermodal, Low-Carbon, Efficient and Resilient Freight Transport and Logistics.”

• The forum primarily focused on high-income economies, excluding small island developing states (SIDS) from its discussions.

• The next edition of the forum is scheduled to be held in Saudi Arabia in 2026.

Which of the statements given above are correct?

• (a) 1, 2, and 4 only

• (b) 2 and 3 only

• (c) 1 and 3 only

• (d) 1, 2, 3, and 4

Solution: A

UN Global Supply Chain Forum:

• The first-ever UN Global Supply Chain Forum was held from May 21-24, 2024, in Barbados, hosted by UN Trade and Development (UNCTAD) in collaboration with the Government of Barbados.

• Attended by over 1,000 participants, including trade and transport ministers from Small Island Developing States (SIDS), UN agencies, major ports (e.g., Port of Seattle), and industry leaders in shipping and logistics.

• Addressed global trade disruptions, geopolitical tensions, climate change, and the impact of COVID-19 on supply chains.

• Discussions focused on decarbonizing global shipping, particularly in developing countries with renewable energy potential.

• Emphasized incentives for low- or zero-carbon fuels, safety frameworks for new fuels, and enhanced port readiness for sustainable energy transitions.

• Digital technologies were highlighted as crucial for enhancing supply chain resilience and improving logistics.

• A key outcome was the launch of the “Manifesto for Intermodal, Low-Carbon, Efficient, and Resilient Freight Transport and Logistics”, advocating for zero-emission fuels, optimized logistics, and sustainable value chains.

• Ministers from SIDS called for international financial support to promote green and sustainable technologies for energy efficiency and reducing marine pollution.

• The UN Trade and Development Trade-and-Transport Dataset was launched in collaboration with the World Bank, offering global data on over 100 commodities and various transport modes to analyze trade and transport costs.

• The next UN Global Supply Chain Forum is scheduled to be held in Saudi Arabia in 2026.

https://unctad.org/news/un-global-supply-chain-forum-calls-resilience-amid-world-trade-disruptions

Solution: A

UN Global Supply Chain Forum:

• Addressed global trade disruptions, geopolitical tensions, climate change, and the impact of COVID-19 on supply chains.

• Discussions focused on decarbonizing global shipping, particularly in developing countries with renewable energy potential.

• Emphasized incentives for low- or zero-carbon fuels, safety frameworks for new fuels, and enhanced port readiness for sustainable energy transitions.

• Digital technologies were highlighted as crucial for enhancing supply chain resilience and improving logistics.

• Ministers from SIDS called for international financial support to promote green and sustainable technologies for energy efficiency and reducing marine pollution.

• The next UN Global Supply Chain Forum is scheduled to be held in Saudi Arabia in 2026.

https://unctad.org/news/un-global-supply-chain-forum-calls-resilience-amid-world-trade-disruptions

• Question 23 of 30 23. Question 1 points Consider the following countries Angola Botswana Tanzania Mozambique Somalia How many of the above-mentioned countries share a land border with Zambia? (a) Only two (b) Only three (c) Only four (d) All five Correct Solution: C Zambia: Zambia, a landlocked country in southern Africa, boasts rugged terrain and abundant wildlife, featuring numerous parks and safari areas. Along its border with Zimbabwe, the renowned Victoria Falls, locally known as Mosi-oa-Tunya or “Smoke That Thunders,” cascades a misty 108 meters into the narrow Batoka Gorge. Zambia shares land borders with Angola, Botswana, Tanzania, and Mozambique, but not with Somalia. https://www.downtoearth.org.in/africa/kaza-summit-underway-in-zambia-96405 Incorrect Solution: C Zambia: Zambia, a landlocked country in southern Africa, boasts rugged terrain and abundant wildlife, featuring numerous parks and safari areas. Along its border with Zimbabwe, the renowned Victoria Falls, locally known as Mosi-oa-Tunya or “Smoke That Thunders,” cascades a misty 108 meters into the narrow Batoka Gorge. Zambia shares land borders with Angola, Botswana, Tanzania, and Mozambique, but not with Somalia. https://www.downtoearth.org.in/africa/kaza-summit-underway-in-zambia-96405

#### 23. Question

Consider the following countries

• Mozambique

How many of the above-mentioned countries share a land border with Zambia?

• (a) Only two

• (b) Only three

• (c) Only four

• (d) All five

Solution: C

Zambia:

• Zambia, a landlocked country in southern Africa, boasts rugged terrain and abundant wildlife, featuring numerous parks and safari areas.

• Along its border with Zimbabwe, the renowned Victoria Falls, locally known as Mosi-oa-Tunya or “Smoke That Thunders,” cascades a misty 108 meters into the narrow Batoka Gorge.

• Zambia shares land borders with Angola, Botswana, Tanzania, and Mozambique, but not with Somalia.

https://www.downtoearth.org.in/africa/kaza-summit-underway-in-zambia-96405

Solution: C

Zambia:

• Zambia, a landlocked country in southern Africa, boasts rugged terrain and abundant wildlife, featuring numerous parks and safari areas.

• Along its border with Zimbabwe, the renowned Victoria Falls, locally known as Mosi-oa-Tunya or “Smoke That Thunders,” cascades a misty 108 meters into the narrow Batoka Gorge.

• Zambia shares land borders with Angola, Botswana, Tanzania, and Mozambique, but not with Somalia.

https://www.downtoearth.org.in/africa/kaza-summit-underway-in-zambia-96405

• Question 24 of 30 24. Question 1 points Consider the following pairs Protected Area Well-known for 1. Hollongapar Gibbon Sanctuary : Western Hoolock Gibbon 2. Sundarbans National Park : Royal Bengal Tiger 3. Keoladeo National Park : Siberian Crane Which of the pairs given above is/are correctly matched? (a) 2 only (b) 1 and 2 only (c) 1 and 3 only (d) 1, 2, and 3 Correct Solution: D Hollongapar Gibbon Sanctuary, Assam: Hollongapar Gibbon Sanctuary, located in Assam, is India’s first protected area dedicated exclusively to primates. It is home to the Western Hoolock Gibbon, India’s only ape species. The sanctuary also harbors other primates like the Stump-tailed Macaque and the Capped Langur. Sundarbans National Park, West Bengal: The Sundarbans National Park, a UNESCO World Heritage Site, is the largest mangrove forest in the world. It is famous for the Royal Bengal Tiger, known for its unique adaptation to the mangrove ecosystem, including its ability to swim long distances. Sundarbans also hosts saltwater crocodiles, Gangetic dolphins, and estuarine species. Keoladeo National Park, Rajasthan: Keoladeo National Park (Bharatpur Bird Sanctuary) in Rajasthan is one of India’s most important wetland bird sanctuaries. It was historically a wintering ground for the Siberian Crane, a migratory bird that travelled from Russia to India. However, due to hunting and habitat loss, Siberian Crane sightings have declined significantly, and the bird no longer migrates to India. The park remains a key habitat for migratory birds like Painted Storks, Pelicans, and Bar-headed Geese. Incorrect Solution: D Hollongapar Gibbon Sanctuary, Assam: Hollongapar Gibbon Sanctuary, located in Assam, is India’s first protected area dedicated exclusively to primates. It is home to the Western Hoolock Gibbon, India’s only ape species. The sanctuary also harbors other primates like the Stump-tailed Macaque and the Capped Langur. Sundarbans National Park, West Bengal: The Sundarbans National Park, a UNESCO World Heritage Site, is the largest mangrove forest in the world. It is famous for the Royal Bengal Tiger, known for its unique adaptation to the mangrove ecosystem, including its ability to swim long distances. Sundarbans also hosts saltwater crocodiles, Gangetic dolphins, and estuarine species. Keoladeo National Park, Rajasthan: Keoladeo National Park (Bharatpur Bird Sanctuary) in Rajasthan is one of India’s most important wetland bird sanctuaries. It was historically a wintering ground for the Siberian Crane, a migratory bird that travelled from Russia to India. However, due to hunting and habitat loss, Siberian Crane sightings have declined significantly, and the bird no longer migrates to India. The park remains a key habitat for migratory birds like Painted Storks, Pelicans, and Bar-headed Geese.

#### 24. Question

Consider the following pairs

Protected Area | Well-known for

1.Hollongapar Gibbon Sanctuary : | Western Hoolock Gibbon
2.Sundarbans National Park : | Royal Bengal Tiger
3.Keoladeo National Park : | Siberian Crane

Which of the pairs given above is/are correctly matched?

• (a) 2 only

• (b) 1 and 2 only

• (c) 1 and 3 only

• (d) 1, 2, and 3

Solution: D

Hollongapar Gibbon Sanctuary, Assam:

• Hollongapar Gibbon Sanctuary, located in Assam, is India’s first protected area dedicated exclusively to primates.

• It is home to the Western Hoolock Gibbon, India’s only ape species.

• The sanctuary also harbors other primates like the Stump-tailed Macaque and the Capped Langur.

Sundarbans National Park, West Bengal:

• The Sundarbans National Park, a UNESCO World Heritage Site, is the largest mangrove forest in the world.

• It is famous for the Royal Bengal Tiger, known for its unique adaptation to the mangrove ecosystem, including its ability to swim long distances.

• Sundarbans also hosts saltwater crocodiles, Gangetic dolphins, and estuarine species.

Keoladeo National Park, Rajasthan:

• Keoladeo National Park (Bharatpur Bird Sanctuary) in Rajasthan is one of India’s most important wetland bird sanctuaries.

• It was historically a wintering ground for the Siberian Crane, a migratory bird that travelled from Russia to India.

• However, due to hunting and habitat loss, Siberian Crane sightings have declined significantly, and the bird no longer migrates to India.

• The park remains a key habitat for migratory birds like Painted Storks, Pelicans, and Bar-headed Geese.

Solution: D

Hollongapar Gibbon Sanctuary, Assam:

• Hollongapar Gibbon Sanctuary, located in Assam, is India’s first protected area dedicated exclusively to primates.

• It is home to the Western Hoolock Gibbon, India’s only ape species.

• The sanctuary also harbors other primates like the Stump-tailed Macaque and the Capped Langur.

Sundarbans National Park, West Bengal:

• The Sundarbans National Park, a UNESCO World Heritage Site, is the largest mangrove forest in the world.

• It is famous for the Royal Bengal Tiger, known for its unique adaptation to the mangrove ecosystem, including its ability to swim long distances.

• Sundarbans also hosts saltwater crocodiles, Gangetic dolphins, and estuarine species.

Keoladeo National Park, Rajasthan:

• Keoladeo National Park (Bharatpur Bird Sanctuary) in Rajasthan is one of India’s most important wetland bird sanctuaries.

• It was historically a wintering ground for the Siberian Crane, a migratory bird that travelled from Russia to India.

• However, due to hunting and habitat loss, Siberian Crane sightings have declined significantly, and the bird no longer migrates to India.

• The park remains a key habitat for migratory birds like Painted Storks, Pelicans, and Bar-headed Geese.

• Question 25 of 30 25. Question 1 points With reference to the RudraM-II missile, consider the following statements It is India’s first indigenously developed air-launched ballistic missile. It has been developed by the Defence Research and Development Organisation (DRDO). It is a liquid-fuelled, surface-to-air missile designed to target enemy aircraft. How many of the statements given above are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: B RudraM-II Missile: RudraM-II is India’s first indigenously developed air-launched ballistic missile (ALBM). Developed by: Defence Research and Development Organisation (DRDO). Successfully test-fired from a Su-30 fighter jet of the Indian Air Force (IAF) off the coast of Odisha. Mode: Solid-propelled, air-to-surface missile, designed to neutralize enemy assets. Purpose: Can target various types of enemy installations, enhancing India’s precision strike capability. https://indianexpress.com/article/india/india-successfully-test-fires-rudra-air-to-surface-missile-9359445/ Incorrect Solution: B RudraM-II Missile: RudraM-II is India’s first indigenously developed air-launched ballistic missile (ALBM). Developed by: Defence Research and Development Organisation (DRDO). Successfully test-fired from a Su-30 fighter jet of the Indian Air Force (IAF) off the coast of Odisha. Mode: Solid-propelled, air-to-surface missile, designed to neutralize enemy assets. Purpose: Can target various types of enemy installations, enhancing India’s precision strike capability. https://indianexpress.com/article/india/india-successfully-test-fires-rudra-air-to-surface-missile-9359445/

#### 25. Question

With reference to the RudraM-II missile, consider the following statements

• It is India’s first indigenously developed air-launched ballistic missile.

• It has been developed by the Defence Research and Development Organisation (DRDO).

• It is a liquid-fuelled, surface-to-air missile designed to target enemy aircraft.

How many of the statements given above are correct?

• (a) Only one

• (b) Only two

• (c) All three

Solution: B

RudraM-II Missile:

• RudraM-II is India’s first indigenously developed air-launched ballistic missile (ALBM).

• Developed by: Defence Research and Development Organisation (DRDO).

• Successfully test-fired from a Su-30 fighter jet of the Indian Air Force (IAF) off the coast of Odisha.

• Mode: Solid-propelled, air-to-surface missile, designed to neutralize enemy assets.

• Purpose: Can target various types of enemy installations, enhancing India’s precision strike capability.

https://indianexpress.com/article/india/india-successfully-test-fires-rudra-air-to-surface-missile-9359445/

Solution: B

RudraM-II Missile:

• RudraM-II is India’s first indigenously developed air-launched ballistic missile (ALBM).

• Developed by: Defence Research and Development Organisation (DRDO).

• Successfully test-fired from a Su-30 fighter jet of the Indian Air Force (IAF) off the coast of Odisha.

• Mode: Solid-propelled, air-to-surface missile, designed to neutralize enemy assets.

• Purpose: Can target various types of enemy installations, enhancing India’s precision strike capability.

https://indianexpress.com/article/india/india-successfully-test-fires-rudra-air-to-surface-missile-9359445/

• Question 26 of 30 26. Question 1 points PASSAGE 2 Emergency Procedures Stay as safe as possible during an earthquake. Be aware that some earthquakes are actually foreshocks and a larger earthquake might occur. When you are indoors: Drop to the ground; take cover by getting under a sturdy table or other piece of furniture; and hold on until the shaking stops. If there is no table or desk near you, cover your face and head with your arms and crouch in an inside corner of the building. Protect yourself by staying under the lintel of an inner door, in the corner of a room, under a table or even under a bed. Stay away from glass, windows, outside doors and walls as anything that could fall (such as lighting fixtures or furniture). Stay in bed if you are there when the earthquake strikes. Hold on and protect your head with a pillow, unless you are under a heavy light fixture that could fall. In that case, move to the nearest safe place. Use a doorway for shelter only if it is in close proximity to you and if you know it is strongly supported. Stay inside until the shaking stops and it is safe to go outside. Research has shown that most injuries occur when people inside buildings attempt to move to a different location inside the building or try to leave. Be aware that the electricity may go out or the sprinkler systems or fire alarms may turn on. When you are outdoors: Move away from buildings, trees, streetlights, and utility wires. If you are in an open space, stay there until the shaking stops. The greatest danger exists directly outside buildings; at exits; and alongside exterior walls. Most earthquake-related casualties result from collapsing walls, flying glass, and falling objects. In most cases, people injure each other by pushing and pulling that may result in a stampede. Hence, help each other without giving way to chaos. It’s important to be aware that an earthquake may be a foreshock, and may be followed by the occurrenceof a stronger earthquake. We can protect ourselves by staying under a strong table of bed. Moving to a different location may not be the right thing to do in this scenario. If you are in bed when the earthquake strikes, remain where you are and protect your head with a pillow. You can use a strongly supported doorway for shelter. People often get injured in a stampede if they are in a crowded place during an earthquake. If possible it’s better to find an open space and stay there until the tremors stop. What is the most logical and critical inference that can be drawn from the passage? a. In case of earthquakes, one should avoid being near anything that could fall or collapse. b. In case of earthquakes, one should climb a tree for safety. c. In case of earthquakes, one should make sure to pull the fire alarm and call emergency services for help. d. In case of earthquakes, one should run to the nearest exit. Correct Correct Option : A Justification : Statement 1 is correct, as the passage shows how people should position themselves under safe surfaces and avoid anything that could fall indoors or collapse outdoors. Statement 2 is incorrect as the passage recommends avoiding trees during earthquakes. Statement 3 is not correct because the passage recommends how to stay safe by yourself during an earthquake. Statement 4 is not correct because the passage shows how majority of injuries happen to people who try to move or leave the building during earthquakes. Incorrect Correct Option : A Justification : Statement 1 is correct, as the passage shows how people should position themselves under safe surfaces and avoid anything that could fall indoors or collapse outdoors. Statement 2 is incorrect as the passage recommends avoiding trees during earthquakes. Statement 3 is not correct because the passage recommends how to stay safe by yourself during an earthquake. Statement 4 is not correct because the passage shows how majority of injuries happen to people who try to move or leave the building during earthquakes.

#### 26. Question

PASSAGE 2

Emergency Procedures

Stay as safe as possible during an earthquake. Be aware that some earthquakes are actually foreshocks and a larger earthquake might occur.

When you are indoors:

• Drop to the ground; take cover by getting under a sturdy table or other piece of furniture; and hold on until the shaking stops. If there is no table or desk near you, cover your face and head with your arms and crouch in an inside corner of the building.

• Protect yourself by staying under the lintel of an inner door, in the corner of a room, under a table or even under a bed.

• Stay away from glass, windows, outside doors and walls as anything that could fall (such as lighting fixtures or furniture).

• Stay in bed if you are there when the earthquake strikes. Hold on and protect your head with a pillow, unless you are under a heavy light fixture that could fall. In that case, move to the nearest safe place.

• Use a doorway for shelter only if it is in close proximity to you and if you know it is strongly supported.

• Stay inside until the shaking stops and it is safe to go outside. Research has shown that most injuries occur

when people inside buildings attempt to move to a different location inside the building or try to leave.

• Be aware that the electricity may go out or the sprinkler systems or fire alarms may turn on.

When you are outdoors:

• Move away from buildings, trees, streetlights, and utility wires.

• If you are in an open space, stay there until the shaking stops. The greatest danger exists directly outside buildings; at exits; and alongside exterior walls. Most earthquake-related casualties result from collapsing walls, flying glass, and falling objects.

• In most cases, people injure each other by pushing and pulling that may result in a stampede. Hence, help each other without giving way to chaos. It’s important to be aware that an earthquake may be a foreshock, and may be followed by the occurrenceof a stronger earthquake.

We can protect ourselves by staying under a strong table of bed. Moving to a different

location may not be the right thing to do in this scenario. If you are in bed when the earthquake strikes, remain where you are and protect your head with a pillow.

You can use a strongly supported doorway for shelter. People often get injured in a stampede if they are in a crowded place during an earthquake. If possible it’s better to find an open space and stay there until the tremors stop.

What is the most logical and critical inference that can be drawn from the passage?

• a. In case of earthquakes, one should avoid being near anything that could fall or collapse.

• b. In case of earthquakes, one should climb a tree for safety.

• c. In case of earthquakes, one should make sure to pull the fire alarm and call emergency services for help.

• d. In case of earthquakes, one should run to the nearest exit.

Correct Option : A

Justification :

Statement 1 is correct, as the passage shows how people should position themselves under safe surfaces and avoid anything that could fall indoors or collapse outdoors.

Statement 2 is incorrect as the passage recommends avoiding trees during earthquakes.

Statement 3 is not correct because the passage recommends how to stay safe by yourself during an earthquake.

Statement 4 is not correct because the passage shows how majority of injuries happen to people who try to move or leave the building during earthquakes.

Correct Option : A

Justification :

Statement 1 is correct, as the passage shows how people should position themselves under safe surfaces and avoid anything that could fall indoors or collapse outdoors.

Statement 2 is incorrect as the passage recommends avoiding trees during earthquakes.

Statement 3 is not correct because the passage recommends how to stay safe by yourself during an earthquake.

Statement 4 is not correct because the passage shows how majority of injuries happen to people who try to move or leave the building during earthquakes.

• Question 27 of 30 27. Question 1 points If a pipe A can fill a tank 3 times faster than pipe B. If both the pipes can fill the tank in 32 minutes, then the slower pipe alone will be able to fill the tank in? a. 128 minutes b. 124 minutes c. 154 minutes d. 168 minutes Correct Correct Option : A Justification : Let, the time is taken by pipe A = x Then, time is taken by pipe B = x/3 By substituting these values, we get: 1/x + 3/x = 1/32 x = 128 minutes Hence, option (a) is correct. Question Level: Easy Incorrect Correct Option : A Justification : Let, the time is taken by pipe A = x Then, time is taken by pipe B = x/3 By substituting these values, we get: 1/x + 3/x = 1/32 x = 128 minutes Hence, option (a) is correct. Question Level: Easy

#### 27. Question

If a pipe A can fill a tank 3 times faster than pipe B. If both the pipes can fill the tank in 32 minutes, then the slower pipe alone will be able to fill the tank in?

• a. 128 minutes

• b. 124 minutes

• c. 154 minutes

• d. 168 minutes

Correct Option : A

Justification :

Let, the time is taken by pipe A = x Then, time is taken by pipe B = x/3

By substituting these values, we get: 1/x + 3/x = 1/32 x = 128 minutes

Hence, option (a) is correct.

Question Level: Easy

Correct Option : A

Justification :

Let, the time is taken by pipe A = x Then, time is taken by pipe B = x/3

By substituting these values, we get: 1/x + 3/x = 1/32 x = 128 minutes

Hence, option (a) is correct.

Question Level: Easy

• Question 28 of 30 28. Question 1 points (x-2) men can do a piece of work in x days and (x+7) men can do 75% of the same work in (x-10)days. Then in how many days can (x+10) men finish the work? a. 14 days b. 12 days c. 20 days d. 30 days Correct Correct Option : B Justification : (M1 D1) / W1 = (M2 D2) / W2 M1 = ( x-2) D1 = x W1 = W2 work is same M2 = (x+7) D2 = (x-10) ( x -2)x / W1 = [( x+7 )(x – 10)] / ( 75/100) W1 After simplification , x = 20 Total work = ( x -2)x = (20 – 2) 20 = 360 units No. of men = (x + 10) = 30 men Now no. Of days taken by 30 men to do work = total work / no. of men = 360/30 = 12 days Incorrect Correct Option : B Justification : (M1 D1) / W1 = (M2 D2) / W2 M1 = ( x-2) D1 = x W1 = W2 work is same M2 = (x+7) D2 = (x-10) ( x -2)x / W1 = [( x+7 )(x – 10)] / ( 75/100) W1 After simplification , x = 20 Total work = ( x -2)x = (20 – 2) 20 = 360 units No. of men = (x + 10) = 30 men Now no. Of days taken by 30 men to do work = total work / no. of men = 360/30 = 12 days

#### 28. Question

(x-2) men can do a piece of work in x days and (x+7) men can do 75% of the same work in (x-10)days. Then in how many days can (x+10) men finish the work?

• a. 14 days

• b. 12 days

• c. 20 days

• d. 30 days

Correct Option : B

Justification :

(M1 D1) / W1 = (M2 D2) / W2

M1 = ( x-2)

W1 = W2 work is same

M2 = (x+7)

D2 = (x-10)

( x -2)x / W1 = [( x+7 )(x – 10)] / ( 75/100) W1

After simplification , x = 20

Total work = ( x -2)x = (20 – 2) * 20 = 360 units

No. of men = (x + 10) = 30 men

Now no. Of days taken by 30 men to do work = total work / no. of men

= 360/30 = 12 days

Correct Option : B

Justification :

(M1 D1) / W1 = (M2 D2) / W2

M1 = ( x-2)

W1 = W2 work is same

M2 = (x+7)

D2 = (x-10)

( x -2)x / W1 = [( x+7 )(x – 10)] / ( 75/100) W1

After simplification , x = 20

Total work = ( x -2)x = (20 – 2) * 20 = 360 units

No. of men = (x + 10) = 30 men

Now no. Of days taken by 30 men to do work = total work / no. of men

= 360/30 = 12 days

• Question 29 of 30 29. Question 1 points A can finish the piece of work in 48 days B is 20% more efficient than A. C is 25% more efficient than B. in how many days B and C together can finish the same piece of work? a. 9/160 days b. 160/9 days c. 150/9 days d. 9/150 days Correct Correct Option : B Justification : Explanation: Time taken by A =48 days B is 20% more efficient than A. Time taken b y B=48100/120=40 days. (B+C)’s 1 day’s work=1/40 +1/32 On solving we get=9/160 Required time=160/9 days. Incorrect Correct Option : B Justification : Explanation: Time taken by A =48 days B is 20% more efficient than A. Time taken b y B=48100/120=40 days. (B+C)’s 1 day’s work=1/40 +1/32 On solving we get=9/160 Required time=160/9 days.

#### 29. Question

A can finish the piece of work in 48 days B is 20% more efficient than A. C is 25% more efficient than B. in how many days B and C together can finish the same piece of work?

• a. 9/160 days

• b. 160/9 days

• c. 150/9 days

• d. 9/150 days

Correct Option : B

Justification :

Explanation:

Time taken by A =48 days

B is 20% more efficient than A.

Time taken b y B=48*100/120=40 days.

(B+C)’s 1 day’s work=1/40 +1/32

On solving we get=9/160

Required time=160/9 days.

Correct Option : B

Justification :

Explanation:

Time taken by A =48 days

B is 20% more efficient than A.

Time taken b y B=48*100/120=40 days.

(B+C)’s 1 day’s work=1/40 +1/32

On solving we get=9/160

Required time=160/9 days.

• Question 30 of 30 30. Question 1 points A Pipe A can fill a tank in 12 hours and another pipe B can fill it in 16 hours. Both the pipes are opened together at 10 a.m. and pipe B is turned off after some time. The tank is filled at 7 p.m., and then finds the time at which the pipe B turned off? a. 12 p.m. b. 1:00 p.m. c. 2:00 p.m. d. 2:30 p.m. Correct Correct Option : C Justification : Pipe A = 12 hours Pipe B = 16 hours LCM = 48 units Efficiency Pipe A = 4 Pipe B = 3 T ank filled in 9 hours. As per question, Pipe A worked for all the time. Let Pipe B work = x 4×9 + 3×x = 48 36+3x = 48 3x = 12 x = 4 hours Time = 2 p.m. Hence, option (c) is the correct answer. Incorrect Correct Option : C Justification : Pipe A = 12 hours Pipe B = 16 hours LCM = 48 units Efficiency Pipe A = 4 Pipe B = 3 T ank filled in 9 hours. As per question, Pipe A worked for all the time. Let Pipe B work = x 4×9 + 3×x = 48 36+3x = 48 3x = 12 x = 4 hours Time = 2 p.m. Hence, option (c) is the correct answer.

#### 30. Question

A Pipe A can fill a tank in 12 hours and another pipe B can fill it in 16 hours. Both the pipes are opened together at 10 a.m. and pipe B is turned off after some time. The tank is filled at 7 p.m., and then finds the time at which the pipe B turned off?

• a. 12 p.m.

• b. 1:00 p.m.

• c. 2:00 p.m.

• d. 2:30 p.m.

Correct Option : C

Justification :

Pipe A = 12 hours

Pipe B = 16 hours

LCM = 48 units

Efficiency

Pipe A = 4

Pipe B = 3 T

ank filled in 9 hours.

As per question, Pipe A worked for all the time.

Let Pipe B work = x 4×9 + 3×x = 48

36+3x = 48

x = 4 hours

Time = 2 p.m. Hence, option (c) is the correct answer.

Correct Option : C

Justification :

Pipe A = 12 hours

Pipe B = 16 hours

LCM = 48 units

Efficiency

Pipe A = 4

Pipe B = 3 T

ank filled in 9 hours.

As per question, Pipe A worked for all the time.

Let Pipe B work = x 4×9 + 3×x = 48

36+3x = 48

x = 4 hours

Time = 2 p.m. Hence, option (c) is the correct answer.

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