DAY – 1 : Insta 75 Days Revision Plan-2026 : ECONOMY

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• Question 1 of 15 1. Question 1 points Which administrative body in India is responsible for the release of the “Annual Estimates of National Income” and the quarterly GDP data? (a) Department of Economic Affairs (b) National Statistical Office (NSO) (c) Office of the Economic Adviser (d) Reserve Bank of India Correct Answer: (b) Explanation The National Statistical Office (NSO) is the nodal agency in India for the release of crucial macroeconomic data, including the Annual Estimates of National Income, Quarterly GDP data, and the Index of Industrial Production (IIP). Ministry: The NSO functions under the Ministry of Statistics and Programme Implementation (MoSPI). Formation: It was formed in 2019 by merging the Central Statistics Office (CSO) and the National Sample Survey Office (NSSO). Previously, the CSO was primarily responsible for National Accounts, but the unified NSO now handles these responsibilities. The NSO releases the “First Advance Estimates” of GDP usually in January, followed by “Second Advance Estimates” in February, and the “Provisional Estimates” in May. Quarterly data is released at the end of the second month after the end of the quarter. Key Reports released by NSO National Accounts Statistics: Includes GDP, GNI, and Per Capita Income. Consumer Price Index (CPI): Used by the RBI for its inflation targeting (Monetary Policy). Index of Industrial Production (IIP): Measures the short-term changes in the volume of production of a basket of industrial products. Periodic Labour Force Survey (PLFS): Data on employment and unemployment in India. Incorrect Answer: (b) Explanation The National Statistical Office (NSO) is the nodal agency in India for the release of crucial macroeconomic data, including the Annual Estimates of National Income, Quarterly GDP data, and the Index of Industrial Production (IIP). Ministry: The NSO functions under the Ministry of Statistics and Programme Implementation (MoSPI). Formation: It was formed in 2019 by merging the Central Statistics Office (CSO) and the National Sample Survey Office (NSSO). Previously, the CSO was primarily responsible for National Accounts, but the unified NSO now handles these responsibilities. The NSO releases the “First Advance Estimates” of GDP usually in January, followed by “Second Advance Estimates” in February, and the “Provisional Estimates” in May. Quarterly data is released at the end of the second month after the end of the quarter. Key Reports released by NSO National Accounts Statistics: Includes GDP, GNI, and Per Capita Income. Consumer Price Index (CPI): Used by the RBI for its inflation targeting (Monetary Policy). Index of Industrial Production (IIP): Measures the short-term changes in the volume of production of a basket of industrial products. Periodic Labour Force Survey (PLFS): Data on employment and unemployment in India.

#### 1. Question

Which administrative body in India is responsible for the release of the “Annual Estimates of National Income” and the quarterly GDP data?

• (a) Department of Economic Affairs

• (b) National Statistical Office (NSO)

• (c) Office of the Economic Adviser

• (d) Reserve Bank of India

Answer: (b)

Explanation

The National Statistical Office (NSO) is the nodal agency in India for the release of crucial macroeconomic data, including the Annual Estimates of National Income, Quarterly GDP data, and the Index of Industrial Production (IIP).

• Ministry: The NSO functions under the Ministry of Statistics and Programme Implementation (MoSPI).

• Formation: It was formed in 2019 by merging the Central Statistics Office (CSO) and the National Sample Survey Office (NSSO). Previously, the CSO was primarily responsible for National Accounts, but the unified NSO now handles these responsibilities.

• The NSO releases the “First Advance Estimates” of GDP usually in January, followed by “Second Advance Estimates” in February, and the “Provisional Estimates” in May. Quarterly data is released at the end of the second month after the end of the quarter.

Key Reports released by NSO

• National Accounts Statistics: Includes GDP, GNI, and Per Capita Income.

• Consumer Price Index (CPI): Used by the RBI for its inflation targeting (Monetary Policy).

• Index of Industrial Production (IIP): Measures the short-term changes in the volume of production of a basket of industrial products.

• Periodic Labour Force Survey (PLFS): Data on employment and unemployment in India.

Answer: (b)

Explanation

• Ministry: The NSO functions under the Ministry of Statistics and Programme Implementation (MoSPI).

Key Reports released by NSO

• National Accounts Statistics: Includes GDP, GNI, and Per Capita Income.

• Consumer Price Index (CPI): Used by the RBI for its inflation targeting (Monetary Policy).

• Index of Industrial Production (IIP): Measures the short-term changes in the volume of production of a basket of industrial products.

• Periodic Labour Force Survey (PLFS): Data on employment and unemployment in India.

• Question 2 of 15 2. Question 1 points Consider the following statements regarding Gross Value Added (GVA): GVA is defined as the value of output minus the value of intermediate consumption. It captures the value created by individual sectors like Agriculture, Industry, and Services. High GVA growth with low GDP growth suggests that the government is providing massive product subsidies. Which of the statements given above are correct? (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2, and 3 Correct Answer: (d) Explanation Gross Value Added (GVA) is a measure of the value of goods and services produced in an economy. It provides the “supply-side” view of the economy. Statement 1 is correct: Conceptually, GVA is the value of the final goods and services produced by an enterprise or sector, minus the cost of the inputs (intermediate consumption) used to produce them. Statement 2 is correct: GVA is particularly useful because it allows for a sector-wise breakdown of the economy. In India, the National Statistical Office (NSO) tracks GVA for eight major sectors, including Agriculture, Manufacturing, and Services, to identify which specific part of the economy is driving growth. Statement 3 is correct: This follows from the fundamental relationship between GDP and GVA: If GVA is high but GDP is relatively lower, it indicates that the term (Product Taxes − Product Subsidies) is a large negative number. This situation arises when the government spends significantly more on subsidies than it collects through product taxes. Incorrect Answer: (d) Explanation Gross Value Added (GVA) is a measure of the value of goods and services produced in an economy. It provides the “supply-side” view of the economy. Statement 1 is correct: Conceptually, GVA is the value of the final goods and services produced by an enterprise or sector, minus the cost of the inputs (intermediate consumption) used to produce them. Statement 2 is correct: GVA is particularly useful because it allows for a sector-wise breakdown of the economy. In India, the National Statistical Office (NSO) tracks GVA for eight major sectors, including Agriculture, Manufacturing, and Services, to identify which specific part of the economy is driving growth. Statement 3 is correct: This follows from the fundamental relationship between GDP and GVA: If GVA is high but GDP is relatively lower, it indicates that the term (Product Taxes − Product Subsidies) is a large negative number. This situation arises when the government spends significantly more on subsidies than it collects through product taxes.

#### 2. Question

Consider the following statements regarding Gross Value Added (GVA):

• GVA is defined as the value of output minus the value of intermediate consumption.

• It captures the value created by individual sectors like Agriculture, Industry, and Services.

• High GVA growth with low GDP growth suggests that the government is providing massive product subsidies.

Which of the statements given above are correct?

• (a) 1 and 2 only

• (b) 2 and 3 only

• (c) 1 and 3 only

• (d) 1, 2, and 3

Answer: (d)

Explanation

Gross Value Added (GVA) is a measure of the value of goods and services produced in an economy. It provides the “supply-side” view of the economy.

Statement 1 is correct: Conceptually, GVA is the value of the final goods and services produced by an enterprise or sector, minus the cost of the inputs (intermediate consumption) used to produce them.

Statement 2 is correct: GVA is particularly useful because it allows for a sector-wise breakdown of the economy. In India, the National Statistical Office (NSO) tracks GVA for eight major sectors, including Agriculture, Manufacturing, and Services, to identify which specific part of the economy is driving growth.

Statement 3 is correct: This follows from the fundamental relationship between GDP and GVA:

If GVA is high but GDP is relatively lower, it indicates that the term (Product Taxes − Product Subsidies) is a large negative number. This situation arises when the government spends significantly more on subsidies than it collects through product taxes.

Answer: (d)

Explanation

Gross Value Added (GVA) is a measure of the value of goods and services produced in an economy. It provides the “supply-side” view of the economy.

Statement 3 is correct: This follows from the fundamental relationship between GDP and GVA:

• Question 3 of 15 3. Question 1 points With reference to National Income Accounting, consider the following: Personal Disposable Income (PDI) Net Domestic Product (NDP) at Market Prices Gross National Disposable Income (GNDI) Per Capita Real Income How many of the above are aggregate measures of income used in National Income Accounting? (a) Only two (b) Only three (c) All four (d) None Correct Answer: (c) Explanation National Income Accounting involves several “aggregates” that measure the economic performance of a country from different perspectives (production, income, and expenditure). 1 is an aggregate: Personal Disposable Income (PDI) is the income actually available to households for consumption and saving. It is calculated by subtracting personal tax payments (like Income Tax) and non-tax payments (like fines) from Personal Income. 2 is an aggregate: Net Domestic Product (NDP) at Market Prices is a measure of the net output of the economy within the domestic territory. It is calculated by subtracting Depreciation (consumption of fixed capital) from the Gross Domestic Product (GDP). 3 is an aggregate: Gross National Disposable Income (GNDI) measures the maximum value of goods and services that the residents of a nation can consume or save. It includes the Gross National Product (GNP) plus net current transfers received from the rest of the world (like remittances or gifts). 4 is an aggregate: Per Capita Real Income is used to measure the average income of a person in the country adjusted for inflation. It is calculated by dividing the Real National Income (NNP at Factor Cost at base year prices) by the total population. This is considered a key indicator of the standard of living. Incorrect Answer: (c) Explanation National Income Accounting involves several “aggregates” that measure the economic performance of a country from different perspectives (production, income, and expenditure). 1 is an aggregate: Personal Disposable Income (PDI) is the income actually available to households for consumption and saving. It is calculated by subtracting personal tax payments (like Income Tax) and non-tax payments (like fines) from Personal Income. 2 is an aggregate: Net Domestic Product (NDP) at Market Prices is a measure of the net output of the economy within the domestic territory. It is calculated by subtracting Depreciation (consumption of fixed capital) from the Gross Domestic Product (GDP). 3 is an aggregate: Gross National Disposable Income (GNDI) measures the maximum value of goods and services that the residents of a nation can consume or save. It includes the Gross National Product (GNP) plus net current transfers received from the rest of the world (like remittances or gifts). 4 is an aggregate: Per Capita Real Income is used to measure the average income of a person in the country adjusted for inflation. It is calculated by dividing the Real National Income (NNP at Factor Cost at base year prices) by the total population. This is considered a key indicator of the standard of living.

#### 3. Question

With reference to National Income Accounting, consider the following:

• Personal Disposable Income (PDI)

• Net Domestic Product (NDP) at Market Prices

• Gross National Disposable Income (GNDI)

• Per Capita Real Income

How many of the above are aggregate measures of income used in National Income Accounting?

• (a) Only two

• (b) Only three

• (c) All four

Answer: (c)

Explanation

National Income Accounting involves several “aggregates” that measure the economic performance of a country from different perspectives (production, income, and expenditure).

• 1 is an aggregate: Personal Disposable Income (PDI) is the income actually available to households for consumption and saving. It is calculated by subtracting personal tax payments (like Income Tax) and non-tax payments (like fines) from Personal Income.

• 2 is an aggregate: Net Domestic Product (NDP) at Market Prices is a measure of the net output of the economy within the domestic territory. It is calculated by subtracting Depreciation (consumption of fixed capital) from the Gross Domestic Product (GDP).

• 3 is an aggregate: Gross National Disposable Income (GNDI) measures the maximum value of goods and services that the residents of a nation can consume or save. It includes the Gross National Product (GNP) plus net current transfers received from the rest of the world (like remittances or gifts).

• 4 is an aggregate: Per Capita Real Income is used to measure the average income of a person in the country adjusted for inflation. It is calculated by dividing the Real National Income (NNP at Factor Cost at base year prices) by the total population. This is considered a key indicator of the standard of living.

Answer: (c)

Explanation

National Income Accounting involves several “aggregates” that measure the economic performance of a country from different perspectives (production, income, and expenditure).

• Question 4 of 15 4. Question 1 points Consider the following statements: Statement-I: Gross National Product (GNP) is always higher than Gross Domestic Product (GDP) for a developing nation like India. Statement-II: GNP is calculated by adding Net Factor Income from Abroad (NFIA) to the GDP. Which of the following is correct with respect to above statements? (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I. (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I. (c) Statement-I is correct but Statement-II is incorrect. (d) Statement-I is incorrect but Statement-II is correct. Correct Answer: (d) Explanation Statement-I is incorrect: Whether GNP is higher than GDP depends entirely on the Net Factor Income from Abroad (NFIA). For a developing nation like India, GNP has historically been lower than GDP. This is because India typically has a negative NFIA—the factor income paid to foreigners (interest on loans, dividends to foreign investors, etc.) is generally higher than the factor income received by Indian residents from abroad. Statement-II is correct: GNP measures the value of all finished goods and services produced by the citizens of a country, regardless of where they are located. To arrive at this figure, you take the GDP (production within the territory) and add the NFIA (Income earned by residents abroad minus income earned by non-residents within the country). Value Addition Key Differences: GDP vs. GNP Feature GDP (Gross Domestic Product) GNP (Gross National Product) Focus Geography (Where is it produced?) Citizenship (Who produced it?) Formula India’s Context Higher than GNP Lower than GDP due to high external debt and foreign investment payments [/su_box] Net Factor Income from Abroad (NFIA) consists of three main components: Net compensation of employees: Wages earned by residents working abroad vs. non-residents working in the country. Net income from property and entrepreneurship: Rent, interest, and profits/dividends. Net retained earnings: Of resident companies located abroad. Incorrect Answer: (d) Explanation Statement-I is incorrect: Whether GNP is higher than GDP depends entirely on the Net Factor Income from Abroad (NFIA). For a developing nation like India, GNP has historically been lower than GDP. This is because India typically has a negative NFIA—the factor income paid to foreigners (interest on loans, dividends to foreign investors, etc.) is generally higher than the factor income received by Indian residents from abroad. Statement-II is correct: GNP measures the value of all finished goods and services produced by the citizens of a country, regardless of where they are located. To arrive at this figure, you take the GDP (production within the territory) and add the NFIA (Income earned by residents abroad minus income earned by non-residents within the country). Value Addition Key Differences: GDP vs. GNP Feature GDP (Gross Domestic Product) GNP (Gross National Product) Focus Geography (Where is it produced?) Citizenship (Who produced it?) Formula India’s Context Higher than GNP Lower than GDP due to high external debt and foreign investment payments [/su_box] Net Factor Income from Abroad (NFIA) consists of three main components: Net compensation of employees: Wages earned by residents working abroad vs. non-residents working in the country. Net income from property and entrepreneurship: Rent, interest, and profits/dividends. Net retained earnings: Of resident companies located abroad.

#### 4. Question

Consider the following statements:

Statement-I: Gross National Product (GNP) is always higher than Gross Domestic Product (GDP) for a developing nation like India.

Statement-II: GNP is calculated by adding Net Factor Income from Abroad (NFIA) to the GDP.

Which of the following is correct with respect to above statements?

• (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I.

• (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I.

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

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

Answer: (d)

Explanation

Statement-I is incorrect: Whether GNP is higher than GDP depends entirely on the Net Factor Income from Abroad (NFIA). For a developing nation like India, GNP has historically been lower than GDP. This is because India typically has a negative NFIA—the factor income paid to foreigners (interest on loans, dividends to foreign investors, etc.) is generally higher than the factor income received by Indian residents from abroad.

Statement-II is correct: GNP measures the value of all finished goods and services produced by the citizens of a country, regardless of where they are located. To arrive at this figure, you take the GDP (production within the territory) and add the NFIA (Income earned by residents abroad minus income earned by non-residents within the country).

Value Addition

Key Differences: GDP vs. GNP

Feature | GDP (Gross Domestic Product) | GNP (Gross National Product)

Focus | Geography (Where is it produced?) | Citizenship (Who produced it?)

Formula | |

India’s Context | Higher than GNP | Lower than GDP due to high external debt and foreign investment payments

Net Factor Income from Abroad (NFIA) consists of three main components:

• Net compensation of employees: Wages earned by residents working abroad vs. non-residents working in the country.

• Net income from property and entrepreneurship: Rent, interest, and profits/dividends.

• Net retained earnings: Of resident companies located abroad.

Answer: (d)

Explanation

Value Addition

Key Differences: GDP vs. GNP

Feature | GDP (Gross Domestic Product) | GNP (Gross National Product)

Focus | Geography (Where is it produced?) | Citizenship (Who produced it?)

Formula | |

India’s Context | Higher than GNP | Lower than GDP due to high external debt and foreign investment payments

Net Factor Income from Abroad (NFIA) consists of three main components:

• Net compensation of employees: Wages earned by residents working abroad vs. non-residents working in the country.

• Net income from property and entrepreneurship: Rent, interest, and profits/dividends.

• Net retained earnings: Of resident companies located abroad.

• Question 5 of 15 5. Question 1 points Consider the following statements regarding the GDP Deflator: Statement I: The GDP Deflator is often considered a more comprehensive measure of inflation than the Consumer Price Index (CPI) or the Wholesale Price Index (WPI). Statement II: Unlike CPI or WPI, which are based on a fixed basket of goods, the GDP Deflator covers all goods and services produced domestically and its basket changes automatically with the composition of GDP. Statement III: In an open economy like India, the GDP Deflator is highly sensitive to fluctuations in the international prices of imported crude oil. Which one of the following is correct in respect of the above statements? (a) Both Statement II and Statement III are correct and both of them explain Statement I (b) Both Statement II and Statement III are correct but only one of them explains Statement I (c) Only one of the Statements II and III is correct and that explains Statement I (d) Neither Statement II nor Statement III is correct Correct Answer: (b) Explanation Statement I is correct: The GDP Deflator is considered one of the most comprehensive measures of inflation. While the Consumer Price Index (CPI) and Wholesale Price Index (WPI) track price changes for a selected basket of goods and services, the GDP Deflator captures the price changes of all goods and services produced within the domestic economy. Statement II is correct and explains Statement I: The CPI and WPI use a fixed basket of goods and services determined in a base year, which may become outdated as consumption patterns evolve. In contrast, the GDP Deflator is a Paasche index, meaning its basket reflects the current year’s production structure. As the economy changes—for example, if production shifts from coal to smartphones—the weights in the GDP Deflator adjust automatically. Statement III is correct but does NOT explain Statement I: In an open economy like India, the GDP Deflator can be influenced by fluctuations in international crude oil prices, but in an indirect way. Since the GDP Deflator measures the prices of domestically produced goods and services, it does not directly include the price of imported crude oil. However, crude oil is a crucial input in domestic production (transportation, manufacturing, electricity generation, etc.). When global oil prices increase, the cost of producing many goods and services within the economy rises, which can eventually be reflected in the GDP Deflator. Thus, both Statement II and Statement III are correct but only one of them explains Statement I Incorrect Answer: (b) Explanation Statement I is correct: The GDP Deflator is considered one of the most comprehensive measures of inflation. While the Consumer Price Index (CPI) and Wholesale Price Index (WPI) track price changes for a selected basket of goods and services, the GDP Deflator captures the price changes of all goods and services produced within the domestic economy. Statement II is correct and explains Statement I: The CPI and WPI use a fixed basket of goods and services determined in a base year, which may become outdated as consumption patterns evolve. In contrast, the GDP Deflator is a Paasche index, meaning its basket reflects the current year’s production structure. As the economy changes—for example, if production shifts from coal to smartphones—the weights in the GDP Deflator adjust automatically. Statement III is correct but does NOT explain Statement I: In an open economy like India, the GDP Deflator can be influenced by fluctuations in international crude oil prices, but in an indirect way. Since the GDP Deflator measures the prices of domestically produced goods and services, it does not directly include the price of imported crude oil. However, crude oil is a crucial input in domestic production (transportation, manufacturing, electricity generation, etc.). When global oil prices increase, the cost of producing many goods and services within the economy rises, which can eventually be reflected in the GDP Deflator. Thus, both Statement II and Statement III are correct but only one of them explains Statement I

#### 5. Question

Consider the following statements regarding the GDP Deflator:

Statement I: The GDP Deflator is often considered a more comprehensive measure of inflation than the Consumer Price Index (CPI) or the Wholesale Price Index (WPI).

Statement II: Unlike CPI or WPI, which are based on a fixed basket of goods, the GDP Deflator covers all goods and services produced domestically and its basket changes automatically with the composition of GDP.

Statement III: In an open economy like India, the GDP Deflator is highly sensitive to fluctuations in the international prices of imported crude oil.

Which one of the following is correct in respect of the above statements?

• (a) Both Statement II and Statement III are correct and both of them explain Statement I

• (b) Both Statement II and Statement III are correct but only one of them explains Statement I

• (c) Only one of the Statements II and III is correct and that explains Statement I

• (d) Neither Statement II nor Statement III is correct

Answer: (b)

Explanation

Statement I is correct: The GDP Deflator is considered one of the most comprehensive measures of inflation. While the Consumer Price Index (CPI) and Wholesale Price Index (WPI) track price changes for a selected basket of goods and services, the GDP Deflator captures the price changes of all goods and services produced within the domestic economy.

Statement II is correct and explains Statement I: The CPI and WPI use a fixed basket of goods and services determined in a base year, which may become outdated as consumption patterns evolve. In contrast, the GDP Deflator is a Paasche index, meaning its basket reflects the current year’s production structure. As the economy changes—for example, if production shifts from coal to smartphones—the weights in the GDP Deflator adjust automatically.

Statement III is correct but does NOT explain Statement I: In an open economy like India, the GDP Deflator can be influenced by fluctuations in international crude oil prices, but in an indirect way. Since the GDP Deflator measures the prices of domestically produced goods and services, it does not directly include the price of imported crude oil. However, crude oil is a crucial input in domestic production (transportation, manufacturing, electricity generation, etc.). When global oil prices increase, the cost of producing many goods and services within the economy rises, which can eventually be reflected in the GDP Deflator.

Thus, both Statement II and Statement III are correct but only one of them explains Statement I

Answer: (b)

Explanation

Thus, both Statement II and Statement III are correct but only one of them explains Statement I

• Question 6 of 15 6. Question 1 points Consider the following statements regarding the Gadgil Formula: The Gadgil Formula was used to determine the allocation of central assistance for State Plans in India. It was first introduced during the implementation of the First Five-Year Plan to prioritize the development of heavy industries. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Correct Answer: (a) Explanation The Gadgil Formula is a cornerstone of Indian fiscal federalism, specifically regarding how the Center assisted States before the current Finance Commission-led era. Statement 1 is correct: Named after D.R. Gadgil, then Deputy Chairman of the Planning Commission, the formula was evolved to provide an objective, data-driven basis for allocating Central Assistance for State Plans. Prior to this, the allocation was somewhat arbitrary and lacked a uniform set of criteria. Statement 2 is incorrect: The Gadgil Formula was not introduced during the First Five-Year Plan. It was first adopted for the Fourth Five-Year Plan (1969–1974). The First Plan focused heavily on agriculture and irrigation, while the Second Plan (Mahalanobis Model) focused on heavy industries. The Gadgil Formula came much later to address the growing demand from States for a fair share of central resources. Incorrect Answer: (a) Explanation The Gadgil Formula is a cornerstone of Indian fiscal federalism, specifically regarding how the Center assisted States before the current Finance Commission-led era. Statement 1 is correct: Named after D.R. Gadgil, then Deputy Chairman of the Planning Commission, the formula was evolved to provide an objective, data-driven basis for allocating Central Assistance for State Plans. Prior to this, the allocation was somewhat arbitrary and lacked a uniform set of criteria. Statement 2 is incorrect: The Gadgil Formula was not introduced during the First Five-Year Plan. It was first adopted for the Fourth Five-Year Plan (1969–1974). The First Plan focused heavily on agriculture and irrigation, while the Second Plan (Mahalanobis Model) focused on heavy industries. The Gadgil Formula came much later to address the growing demand from States for a fair share of central resources.

#### 6. Question

Consider the following statements regarding the Gadgil Formula:

• The Gadgil Formula was used to determine the allocation of central assistance for State Plans in India.

• It was first introduced during the implementation of the First Five-Year Plan to prioritize the development of heavy industries.

Which of the statements given above is/are correct?

• (a) 1 only

• (b) 2 only

• (c) Both 1 and 2

• (d) Neither 1 nor 2

Answer: (a)

Explanation

The Gadgil Formula is a cornerstone of Indian fiscal federalism, specifically regarding how the Center assisted States before the current Finance Commission-led era.

• Statement 1 is correct: Named after D.R. Gadgil, then Deputy Chairman of the Planning Commission, the formula was evolved to provide an objective, data-driven basis for allocating Central Assistance for State Plans. Prior to this, the allocation was somewhat arbitrary and lacked a uniform set of criteria.

• Statement 2 is incorrect: The Gadgil Formula was not introduced during the First Five-Year Plan. It was first adopted for the Fourth Five-Year Plan (1969–1974). The First Plan focused heavily on agriculture and irrigation, while the Second Plan (Mahalanobis Model) focused on heavy industries. The Gadgil Formula came much later to address the growing demand from States for a fair share of central resources.

Answer: (a)

Explanation

The Gadgil Formula is a cornerstone of Indian fiscal federalism, specifically regarding how the Center assisted States before the current Finance Commission-led era.

• Question 7 of 15 7. Question 1 points With reference to Public Debt in India, consider the following: Internal debt constitutes a much larger portion of India’s total public debt than external debt. Borrowing from the RBI (monetized deficit) is a form of internal debt. The Fiscal Responsibility and Budget Management (FRBM) Act sets targets for the debt-to-GDP ratio of the Central Government. Which of the statements given above are correct? (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2, and 3 Correct Answer: (d) Explanation Public Debt in India includes the total liabilities of the Union Government that are to be settled from the Consolidated Fund of India. Statement 1 is correct: India’s public debt profile is characterized by a very high reliance on domestic markets. Internal debt (denominated in Rupees and owed to domestic lenders like banks, insurance companies, and households) typically accounts for over 90-95% of the total public debt. External debt (loans from the World Bank, IMF, or foreign governments) constitutes a very small fraction, which helps insulate the Indian economy from global exchange rate volatility. Statement 2 is correct: When the government cannot meet its expenditure through taxes or market borrowings, it can borrow from the Reserve Bank of India (RBI) by issuing special securities. This is known as Monetized Deficit (or “printing money” to fund the deficit). Since the RBI is a domestic entity, this borrowing is classified as a part of the internal debt. It was common in the past through “Ad-hoc Treasury Bills,” it is now strictly regulated and restricted to “Ways and Means Advances” (WMA) to meet temporary mismatches in receipts and payments. Statement 3 is correct: The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 was amended based on the N.K. Singh Committee recommendations. It shifted the focus from just the “Fiscal Deficit” to the Debt-to-GDP ratio. The target was set to achieve a debt-to-GDP ratio of 60% for the General Government (40% for the Center and 20% for the States). Components of Public Debt Incorrect Answer: (d) Explanation Public Debt in India includes the total liabilities of the Union Government that are to be settled from the Consolidated Fund of India. Statement 1 is correct: India’s public debt profile is characterized by a very high reliance on domestic markets. Internal debt (denominated in Rupees and owed to domestic lenders like banks, insurance companies, and households) typically accounts for over 90-95% of the total public debt. External debt (loans from the World Bank, IMF, or foreign governments) constitutes a very small fraction, which helps insulate the Indian economy from global exchange rate volatility. Statement 2 is correct: When the government cannot meet its expenditure through taxes or market borrowings, it can borrow from the Reserve Bank of India (RBI) by issuing special securities. This is known as Monetized Deficit (or “printing money” to fund the deficit). Since the RBI is a domestic entity, this borrowing is classified as a part of the internal debt. It was common in the past through “Ad-hoc Treasury Bills,” it is now strictly regulated and restricted to “Ways and Means Advances” (WMA) to meet temporary mismatches in receipts and payments. Statement 3 is correct: The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 was amended based on the N.K. Singh Committee recommendations. It shifted the focus from just the “Fiscal Deficit” to the Debt-to-GDP ratio. The target was set to achieve a debt-to-GDP ratio of 60% for the General Government (40% for the Center and 20% for the States). Components of Public Debt

#### 7. Question

With reference to Public Debt in India, consider the following:

• Internal debt constitutes a much larger portion of India’s total public debt than external debt.

• Borrowing from the RBI (monetized deficit) is a form of internal debt.

• The Fiscal Responsibility and Budget Management (FRBM) Act sets targets for the debt-to-GDP ratio of the Central Government.

Which of the statements given above are correct?

• (a) 1 and 2 only

• (b) 2 and 3 only

• (c) 1 and 3 only

• (d) 1, 2, and 3

Answer: (d)

Explanation

Public Debt in India includes the total liabilities of the Union Government that are to be settled from the Consolidated Fund of India.

• Statement 1 is correct: India’s public debt profile is characterized by a very high reliance on domestic markets. Internal debt (denominated in Rupees and owed to domestic lenders like banks, insurance companies, and households) typically accounts for over 90-95% of the total public debt. External debt (loans from the World Bank, IMF, or foreign governments) constitutes a very small fraction, which helps insulate the Indian economy from global exchange rate volatility.

• Statement 2 is correct: When the government cannot meet its expenditure through taxes or market borrowings, it can borrow from the Reserve Bank of India (RBI) by issuing special securities. This is known as Monetized Deficit (or “printing money” to fund the deficit). Since the RBI is a domestic entity, this borrowing is classified as a part of the internal debt. It was common in the past through “Ad-hoc Treasury Bills,” it is now strictly regulated and restricted to “Ways and Means Advances” (WMA) to meet temporary mismatches in receipts and payments.

• It was common in the past through “Ad-hoc Treasury Bills,” it is now strictly regulated and restricted to “Ways and Means Advances” (WMA) to meet temporary mismatches in receipts and payments.

• Statement 3 is correct: The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 was amended based on the N.K. Singh Committee recommendations. It shifted the focus from just the “Fiscal Deficit” to the Debt-to-GDP ratio. The target was set to achieve a debt-to-GDP ratio of 60% for the General Government (40% for the Center and 20% for the States).

Components of Public Debt

Answer: (d)

Explanation

Public Debt in India includes the total liabilities of the Union Government that are to be settled from the Consolidated Fund of India.

Components of Public Debt

• Question 8 of 15 8. Question 1 points Consider the following types of government deficits: Fiscal Deficit Revenue Deficit Effective Revenue Deficit Primary Deficit How many of the above would become zero if the government borrows only to finance capital expenditure and not to meet its interest obligations or revenue expenditure? (a) Only one (b) Only two (c) Only three (d) All four Correct Answer: (b) Explanation If borrowing is used only for capital investment, it means revenue receipts are sufficient to meet revenue expenditure and interest payments. Fiscal Deficit: Fiscal Deficit = Total Expenditure − (Revenue Receipts + Non-debt Capital Receipts) Since borrowing is used to finance capital expenditure, fiscal deficit still exists. Hence not zero. Revenue Deficit: Revenue Deficit = Revenue Expenditure − Revenue Receipts If borrowing is not used for revenue expenditure, revenue receipts fully cover it. Hence Revenue Deficit = 0. Effective Revenue Deficit: Effective Revenue Deficit = Revenue Deficit − Grants for Capital Assets Since Revenue Deficit is already zero, Effective Revenue Deficit is also zero. Primary Deficit: Primary Deficit = Fiscal Deficit − Interest Payments Fiscal deficit still exists due to borrowing for capital investment, so Primary Deficit ≠ 0. Therefore, two deficits (Revenue Deficit and Effective Revenue Deficit) become zero. Incorrect Answer: (b) Explanation If borrowing is used only for capital investment, it means revenue receipts are sufficient to meet revenue expenditure and interest payments. Fiscal Deficit: Fiscal Deficit = Total Expenditure − (Revenue Receipts + Non-debt Capital Receipts) Since borrowing is used to finance capital expenditure, fiscal deficit still exists. Hence not zero. Revenue Deficit: Revenue Deficit = Revenue Expenditure − Revenue Receipts If borrowing is not used for revenue expenditure, revenue receipts fully cover it. Hence Revenue Deficit = 0. Effective Revenue Deficit: Effective Revenue Deficit = Revenue Deficit − Grants for Capital Assets Since Revenue Deficit is already zero, Effective Revenue Deficit is also zero. Primary Deficit: Primary Deficit = Fiscal Deficit − Interest Payments Fiscal deficit still exists due to borrowing for capital investment, so Primary Deficit ≠ 0. Therefore, two deficits (Revenue Deficit and Effective Revenue Deficit) become zero.

#### 8. Question

Consider the following types of government deficits:

• Fiscal Deficit

• Revenue Deficit

• Effective Revenue Deficit

• Primary Deficit

How many of the above would become zero if the government borrows only to finance capital expenditure and not to meet its interest obligations or revenue expenditure?

• (a) Only one

• (b) Only two

• (c) Only three

• (d) All four

Answer: (b)

Explanation

If borrowing is used only for capital investment, it means revenue receipts are sufficient to meet revenue expenditure and interest payments.

• Fiscal Deficit: Fiscal Deficit = Total Expenditure − (Revenue Receipts + Non-debt Capital Receipts) Since borrowing is used to finance capital expenditure, fiscal deficit still exists. Hence not zero.

• Revenue Deficit: Revenue Deficit = Revenue Expenditure − Revenue Receipts If borrowing is not used for revenue expenditure, revenue receipts fully cover it. Hence Revenue Deficit = 0.

• Effective Revenue Deficit: Effective Revenue Deficit = Revenue Deficit − Grants for Capital Assets Since Revenue Deficit is already zero, Effective Revenue Deficit is also zero.

• Primary Deficit: Primary Deficit = Fiscal Deficit − Interest Payments Fiscal deficit still exists due to borrowing for capital investment, so Primary Deficit ≠ 0.

Therefore, two deficits (Revenue Deficit and Effective Revenue Deficit) become zero.

Answer: (b)

Explanation

If borrowing is used only for capital investment, it means revenue receipts are sufficient to meet revenue expenditure and interest payments.

• Effective Revenue Deficit: Effective Revenue Deficit = Revenue Deficit − Grants for Capital Assets Since Revenue Deficit is already zero, Effective Revenue Deficit is also zero.

• Primary Deficit: Primary Deficit = Fiscal Deficit − Interest Payments Fiscal deficit still exists due to borrowing for capital investment, so Primary Deficit ≠ 0.

Therefore, two deficits (Revenue Deficit and Effective Revenue Deficit) become zero.

• Question 9 of 15 9. Question 1 points The Strait of Hormuz, frequently seen in the news due to its strategic importance for global energy trade, lies between which of the following pairs of countries? (a) Iran and Oman (b) Iran and Saudi Arabia (c) Iraq and Kuwait (d) United Arab Emirates and Qatar Correct Answer: (a) Explanation: The Strait of Hormuz lies between Oman and Iran and links the Gulf north of it with the Gulf of Oman to the south and the Arabian Sea beyond. It is 21 miles (33 km) wide at its narrowest point, with the shipping lane just 2 miles (3 km) wide in either direction. Importance of Strait of Hormuz About a fifth of the world’s total oil consumption passes through the strait. OPEC members Saudi Arabia, Iran, the United Arab Emirates, Kuwait and Iraq export most of their crude via the strait, mainly to Asia. Qatar, among the world’s biggest liquefied natural gas exporters, sends almost all of its LNG through the strait. The UAE and Saudi Arabia have sought to find other routes to bypass the strait. About 2.6 million barrels per day (bpd) of unused capacity from existing UAE and Saudi pipelines could be available to bypass Hormuz, the U.S. Energy Information Administration said in June last year. The U.S. Fifth Fleet, based in Bahrain, is tasked with protecting commercial shipping in the area. Incorrect Answer: (a) Explanation: The Strait of Hormuz lies between Oman and Iran and links the Gulf north of it with the Gulf of Oman to the south and the Arabian Sea beyond. It is 21 miles (33 km) wide at its narrowest point, with the shipping lane just 2 miles (3 km) wide in either direction. Importance of Strait of Hormuz About a fifth of the world’s total oil consumption passes through the strait. OPEC members Saudi Arabia, Iran, the United Arab Emirates, Kuwait and Iraq export most of their crude via the strait, mainly to Asia. Qatar, among the world’s biggest liquefied natural gas exporters, sends almost all of its LNG through the strait. The UAE and Saudi Arabia have sought to find other routes to bypass the strait. About 2.6 million barrels per day (bpd) of unused capacity from existing UAE and Saudi pipelines could be available to bypass Hormuz, the U.S. Energy Information Administration said in June last year. The U.S. Fifth Fleet, based in Bahrain, is tasked with protecting commercial shipping in the area.

#### 9. Question

The Strait of Hormuz, frequently seen in the news due to its strategic importance for global energy trade, lies between which of the following pairs of countries?

• (a) Iran and Oman

• (b) Iran and Saudi Arabia

• (c) Iraq and Kuwait

• (d) United Arab Emirates and Qatar

Answer: (a)

Explanation: The Strait of Hormuz lies between Oman and Iran and links the Gulf north of it with the Gulf of Oman to the south and the Arabian Sea beyond. It is 21 miles (33 km) wide at its narrowest point, with the shipping lane just 2 miles (3 km) wide in either direction.

Importance of Strait of Hormuz

• About a fifth of the world’s total oil consumption passes through the strait.

• OPEC members Saudi Arabia, Iran, the United Arab Emirates, Kuwait and Iraq export most of their crude via the strait, mainly to Asia.

• Qatar, among the world’s biggest liquefied natural gas exporters, sends almost all of its LNG through the strait.

• The UAE and Saudi Arabia have sought to find other routes to bypass the strait. About 2.6 million barrels per day (bpd) of unused capacity from existing UAE and Saudi pipelines could be available to bypass Hormuz, the U.S. Energy Information Administration said in June last year.

• The U.S. Fifth Fleet, based in Bahrain, is tasked with protecting commercial shipping in the area.

Answer: (a)

Importance of Strait of Hormuz

• About a fifth of the world’s total oil consumption passes through the strait.

• OPEC members Saudi Arabia, Iran, the United Arab Emirates, Kuwait and Iraq export most of their crude via the strait, mainly to Asia.

• Qatar, among the world’s biggest liquefied natural gas exporters, sends almost all of its LNG through the strait.

• The U.S. Fifth Fleet, based in Bahrain, is tasked with protecting commercial shipping in the area.

• Question 10 of 15 10. Question 1 points The Victims of Terrorism Advocacy Network (VoTAN), recently launched to support victims and survivors of terrorism, is an initiative of which of the following organizations? (a) United Nations Office of Counter-Terrorism (UNOCT) (b) Global Counterterrorism Forum (GCTF) (c) United Nations Interregional Crime and Justice Research Institute (UNICRI) (d) Financial Action Task Force (FATF) Correct Answer: (a) Explanation: The Victims of Terrorism Advocacy Network (VoTAN) was launched by the United Nations Office of Counter-Terrorism (UNOCT) following the 2022 UN Global Congress on Victims of Terrorism. It aims to create a global network where victims and survivors can support each other and engage as advocates, educators, and peacebuilders. The initiative has received financial support from Spain. About United Nations Office of Counter-Terrorism (UNOCT) Establishment Established on 15 June 2017 by UN General Assembly Resolution 71/291. Created as part of UN institutional reform under Secretary-General António Guterres. Headquarters United Nations Headquarters, New York. First Head Vladimir Voronkov (Russia) – appointed as the first Under-Secretary-General for Counter-Terrorism. Mandate and Legal Basis UNOCT operates under the framework of the: UN Global Counter-Terrorism Strategy (2006) – adopted by UNGA Resolution 60/288. Strategy is reviewed every two years by the UN General Assembly. Incorrect Answer: (a) Explanation: The Victims of Terrorism Advocacy Network (VoTAN) was launched by the United Nations Office of Counter-Terrorism (UNOCT) following the 2022 UN Global Congress on Victims of Terrorism. It aims to create a global network where victims and survivors can support each other and engage as advocates, educators, and peacebuilders. The initiative has received financial support from Spain. About United Nations Office of Counter-Terrorism (UNOCT) Establishment Established on 15 June 2017 by UN General Assembly Resolution 71/291. Created as part of UN institutional reform under Secretary-General António Guterres. Headquarters United Nations Headquarters, New York. First Head Vladimir Voronkov (Russia) – appointed as the first Under-Secretary-General for Counter-Terrorism. Mandate and Legal Basis UNOCT operates under the framework of the: UN Global Counter-Terrorism Strategy (2006) – adopted by UNGA Resolution 60/288. Strategy is reviewed every two years by the UN General Assembly.

#### 10. Question

The Victims of Terrorism Advocacy Network (VoTAN), recently launched to support victims and survivors of terrorism, is an initiative of which of the following organizations?

• (a) United Nations Office of Counter-Terrorism (UNOCT)

• (b) Global Counterterrorism Forum (GCTF)

• (c) United Nations Interregional Crime and Justice Research Institute (UNICRI)

• (d) Financial Action Task Force (FATF)

Answer: (a)

Explanation: The Victims of Terrorism Advocacy Network (VoTAN) was launched by the United Nations Office of Counter-Terrorism (UNOCT) following the 2022 UN Global Congress on Victims of Terrorism. It aims to create a global network where victims and survivors can support each other and engage as advocates, educators, and peacebuilders. The initiative has received financial support from Spain.

About United Nations Office of Counter-Terrorism (UNOCT)

Establishment

• Established on 15 June 2017 by UN General Assembly Resolution 71/291.

• Created as part of UN institutional reform under Secretary-General António Guterres.

Headquarters

• United Nations Headquarters, New York.

First Head

• Vladimir Voronkov (Russia) – appointed as the first Under-Secretary-General for Counter-Terrorism.

Mandate and Legal Basis

UNOCT operates under the framework of the:

• UN Global Counter-Terrorism Strategy (2006) – adopted by UNGA Resolution 60/288.

• Strategy is reviewed every two years by the UN General Assembly.

Answer: (a)

About United Nations Office of Counter-Terrorism (UNOCT)

Establishment

• Established on 15 June 2017 by UN General Assembly Resolution 71/291.

• Created as part of UN institutional reform under Secretary-General António Guterres.

Headquarters

• United Nations Headquarters, New York.

First Head

• Vladimir Voronkov (Russia) – appointed as the first Under-Secretary-General for Counter-Terrorism.

Mandate and Legal Basis

UNOCT operates under the framework of the:

• UN Global Counter-Terrorism Strategy (2006) – adopted by UNGA Resolution 60/288.

• Strategy is reviewed every two years by the UN General Assembly.

• Question 11 of 15 11. Question 1 points Public discussion around sports often celebrates individual achievement, medals and financial rewards. Yet sporting activity also exists within a broader social context where it can influence community well-being, social cohesion and collective aspirations. When sports are viewed only as personal accomplishment or commercial success, their wider relevance may become limited. In many cases, public recognition and financial incentives accompany sporting success. These rewards may benefit athletes and institutions connected with them, but their significance for society depends on how sports contribute to collective progress. The value of sporting achievements therefore cannot be assessed solely by victories or material gains. Which one of the following statements best reflects the critical message conveyed by the passage? (a) Sporting success should be evaluated in relation to its broader social significance. (b) Governments should allocate more funds to promote sports infrastructure. (c) Individual sporting achievements generally benefit only the athletes concerned. (d) Prize money received by athletes should primarily be invested in community development. Correct Answer: (a) Explanation Option (a) is correct: The passage suggests that the value of sports lies not merely in individual success or rewards but in its broader contribution to society and collective progress. Option (b) is incorrect: The passage does not discuss funding or infrastructure policies related to sports. Option (c) is incorrect: Although the passage hints that personal benefits alone are insufficient, it does not claim that sporting achievements benefit only athletes. Option (d) is incorrect: The passage does not prescribe how prize money should be used; it focuses on evaluating sports within a wider social perspective. Incorrect Answer: (a) Explanation Option (a) is correct: The passage suggests that the value of sports lies not merely in individual success or rewards but in its broader contribution to society and collective progress. Option (b) is incorrect: The passage does not discuss funding or infrastructure policies related to sports. Option (c) is incorrect: Although the passage hints that personal benefits alone are insufficient, it does not claim that sporting achievements benefit only athletes. Option (d) is incorrect: The passage does not prescribe how prize money should be used; it focuses on evaluating sports within a wider social perspective.

#### 11. Question

Public discussion around sports often celebrates individual achievement, medals and financial rewards. Yet sporting activity also exists within a broader social context where it can influence community well-being, social cohesion and collective aspirations. When sports are viewed only as personal accomplishment or commercial success, their wider relevance may become limited.

In many cases, public recognition and financial incentives accompany sporting success. These rewards may benefit athletes and institutions connected with them, but their significance for society depends on how sports contribute to collective progress. The value of sporting achievements therefore cannot be assessed solely by victories or material gains.

Which one of the following statements best reflects the critical message conveyed by the passage?

• (a) Sporting success should be evaluated in relation to its broader social significance.

• (b) Governments should allocate more funds to promote sports infrastructure.

• (c) Individual sporting achievements generally benefit only the athletes concerned.

• (d) Prize money received by athletes should primarily be invested in community development.

Answer: (a)

Explanation

Option (a) is correct: The passage suggests that the value of sports lies not merely in individual success or rewards but in its broader contribution to society and collective progress.

Option (b) is incorrect: The passage does not discuss funding or infrastructure policies related to sports.

Option (c) is incorrect: Although the passage hints that personal benefits alone are insufficient, it does not claim that sporting achievements benefit only athletes.

Option (d) is incorrect: The passage does not prescribe how prize money should be used; it focuses on evaluating sports within a wider social perspective.

Answer: (a)

Explanation

Option (a) is correct: The passage suggests that the value of sports lies not merely in individual success or rewards but in its broader contribution to society and collective progress.

Option (b) is incorrect: The passage does not discuss funding or infrastructure policies related to sports.

Option (c) is incorrect: Although the passage hints that personal benefits alone are insufficient, it does not claim that sporting achievements benefit only athletes.

Option (d) is incorrect: The passage does not prescribe how prize money should be used; it focuses on evaluating sports within a wider social perspective.

• Question 12 of 15 12. Question 1 points P, Q and R together can complete a work in 15 days. P and Q together can complete the work in 30 days. Q and R together can complete the work in 20 days. Find the time taken by P and R together to complete the work. (a) 20 days (b) 12 days (c) 15 days (d) 18 days Correct Answer: (a) Solution: Given that, P, Q and R together can complete the work in 15 days. So, P + Q + R = 1/15 Also, P + Q = 1/30 Q + R = 1/20 We have to find P + R Now, (P + Q) + (Q + R) = P + R + 2Q Using the same method: (P + Q + R) + Q = (P + Q) + (Q + R) So, 1/15 + Q = 1/30 + 1/20 Taking LCM = 60, 4/60 + Q = 2/60 + 3/60 4/60 + Q = 5/60 So, Q = 1/60 Now, P + R = (P + Q + R) − Q = 1/15 − 1/60 Taking LCM = 60, = 4/60 − 1/60 = 3/60 = 1/20 Thus, P and R together can complete the work in 20 days. Hence, option (a) is correct. Incorrect Answer: (a) Solution: Given that, P, Q and R together can complete the work in 15 days. So, P + Q + R = 1/15 Also, P + Q = 1/30 Q + R = 1/20 We have to find P + R Now, (P + Q) + (Q + R) = P + R + 2Q Using the same method: (P + Q + R) + Q = (P + Q) + (Q + R) So, 1/15 + Q = 1/30 + 1/20 Taking LCM = 60, 4/60 + Q = 2/60 + 3/60 4/60 + Q = 5/60 So, Q = 1/60 Now, P + R = (P + Q + R) − Q = 1/15 − 1/60 Taking LCM = 60, = 4/60 − 1/60 = 3/60 = 1/20 Thus, P and R together can complete the work in 20 days. Hence, option (a) is correct.

#### 12. Question

P, Q and R together can complete a work in 15 days. P and Q together can complete the work in 30 days. Q and R together can complete the work in 20 days. Find the time taken by P and R together to complete the work.

• (a) 20 days

• (b) 12 days

• (c) 15 days

• (d) 18 days

Answer: (a)

Solution:

Given that,

P, Q and R together can complete the work in 15 days.

P + Q + R = 1/15

P + Q = 1/30 Q + R = 1/20

We have to find P + R

(P + Q) + (Q + R) = P + R + 2Q

Using the same method:

(P + Q + R) + Q = (P + Q) + (Q + R)

1/15 + Q = 1/30 + 1/20

Taking LCM = 60,

4/60 + Q = 2/60 + 3/60

4/60 + Q = 5/60

Q = 1/60

P + R = (P + Q + R) − Q

= 1/15 − 1/60

Taking LCM = 60,

= 4/60 − 1/60 = 3/60 = 1/20

Thus, P and R together can complete the work in 20 days.

Hence, option (a) is correct.

Answer: (a)

Solution:

Given that,

P, Q and R together can complete the work in 15 days.

P + Q + R = 1/15

P + Q = 1/30 Q + R = 1/20

We have to find P + R

(P + Q) + (Q + R) = P + R + 2Q

Using the same method:

(P + Q + R) + Q = (P + Q) + (Q + R)

1/15 + Q = 1/30 + 1/20

Taking LCM = 60,

4/60 + Q = 2/60 + 3/60

4/60 + Q = 5/60

Q = 1/60

P + R = (P + Q + R) − Q

= 1/15 − 1/60

Taking LCM = 60,

= 4/60 − 1/60 = 3/60 = 1/20

Thus, P and R together can complete the work in 20 days.

Hence, option (a) is correct.

• Question 13 of 15 13. Question 1 points Two pipes P and Q can fill a tank in 120 minutes and 160 minutes respectively, whereas the third pipe R can empty the full tank in 240 minutes. If all three pipes are opened together, in how much time will the tank be filled? (a) 1 hour 28 minutes (b) 1 hour 36 minutes (c) 2 hours 14 minutes (d) 2 hour 25 minutes Correct Answer: (b) Explanation: P’s 1 minute work = 1/120 Q’s 1 minute work = 1/160 R’s 1 minute work = –1/240 Net work in 1 minute = 1/120 + 1/160 – 1/240 Taking LCM = 480 = 4/480 + 3/480 – 2/480 = 5/480 = 1/96 So, tank will be filled in 96 minutes That is 1 hour 36 minutes Hence, option (b) is correct. Incorrect Answer: (b) Explanation: P’s 1 minute work = 1/120 Q’s 1 minute work = 1/160 R’s 1 minute work = –1/240 Net work in 1 minute = 1/120 + 1/160 – 1/240 Taking LCM = 480 = 4/480 + 3/480 – 2/480 = 5/480 = 1/96 So, tank will be filled in 96 minutes That is 1 hour 36 minutes Hence, option (b) is correct.

#### 13. Question

Two pipes P and Q can fill a tank in 120 minutes and 160 minutes respectively, whereas the third pipe R can empty the full tank in 240 minutes. If all three pipes are opened together, in how much time will the tank be filled?

• (a) 1 hour 28 minutes

• (b) 1 hour 36 minutes

• (c) 2 hours 14 minutes

• (d) 2 hour 25 minutes

Answer: (b)

Explanation:

P’s 1 minute work = 1/120 Q’s 1 minute work = 1/160 R’s 1 minute work = –1/240

Net work in 1 minute =

1/120 + 1/160 – 1/240

Taking LCM = 480

= 4/480 + 3/480 – 2/480 = 5/480 = 1/96

So, tank will be filled in 96 minutes

That is 1 hour 36 minutes

Hence, option (b) is correct.

Answer: (b)

Explanation:

P’s 1 minute work = 1/120 Q’s 1 minute work = 1/160 R’s 1 minute work = –1/240

Net work in 1 minute =

1/120 + 1/160 – 1/240

Taking LCM = 480

= 4/480 + 3/480 – 2/480 = 5/480 = 1/96

So, tank will be filled in 96 minutes

That is 1 hour 36 minutes

Hence, option (b) is correct.

• Question 14 of 15 14. Question 1 points A and B can finish a work in 12 days. B and C can finish it in 15 days. A and C can finish it in 20 days. If all three work together, they finish it in (R + 4) days. Find in how many days C alone can complete the work? (a) R + 42 (b) R + 50 (c) R + 54 (d) R + 60 Correct Answer: (c) Solution: Let work rates be a, b, c. a + b = 1/12 b + c = 1/15 a + c = 1/20 Adding, 2(a + b + c) = 1/12 + 1/15 + 1/20 = 1/5 So, a + b + c = 1/10 Hence, all three together take 10 days. Given, R + 4 = 10 So, R = 6 Now, c = 1/10 − 1/12 = 1/60 So, C alone = 60 days Since R = 6, 60 = R + 54 Hence, option (c) is correct. Incorrect Answer: (c) Solution: Let work rates be a, b, c. a + b = 1/12 b + c = 1/15 a + c = 1/20 Adding, 2(a + b + c) = 1/12 + 1/15 + 1/20 = 1/5 So, a + b + c = 1/10 Hence, all three together take 10 days. Given, R + 4 = 10 So, R = 6 Now, c = 1/10 − 1/12 = 1/60 So, C alone = 60 days Since R = 6, 60 = R + 54 Hence, option (c) is correct.

#### 14. Question

A and B can finish a work in 12 days. B and C can finish it in 15 days. A and C can finish it in 20 days. If all three work together, they finish it in (R + 4) days. Find in how many days C alone can complete the work?

• (a) R + 42

• (b) R + 50

• (c) R + 54

• (d) R + 60

Answer: (c)

Solution: Let work rates be a, b, c.

a + b = 1/12 b + c = 1/15 a + c = 1/20

2(a + b + c) = 1/12 + 1/15 + 1/20 = 1/5

a + b + c = 1/10

Hence, all three together take 10 days.

R + 4 = 10

c = 1/10 − 1/12 = 1/60

So, C alone = 60 days

Since R = 6, 60 = R + 54

Hence, option (c) is correct.

Answer: (c)

Solution: Let work rates be a, b, c.

a + b = 1/12 b + c = 1/15 a + c = 1/20

2(a + b + c) = 1/12 + 1/15 + 1/20 = 1/5

a + b + c = 1/10

Hence, all three together take 10 days.

R + 4 = 10

c = 1/10 − 1/12 = 1/60

So, C alone = 60 days

Since R = 6, 60 = R + 54

Hence, option (c) is correct.

• Question 15 of 15 15. Question 1 points A work is completed by A, B and C in 20 days, 30 days and 60 days respectively. If they together earn Rs. 66000 for the whole work, then which among the following is certainly true (a) The amount earned by A and C collectively is equal to the amount earned by B. (b) The amount earned by B and C collectively is less than the amount earned by A. (c) The amount earned by A alone is more than Rs. 30000. (d) None of the above. Correct Answer: (c) Explanation: Efficiency of: A = 1/20 B = 1/30 C = 1/60 Take LCM of 20, 30, 60 = 60 So, efficiency ratio: A = 60/20 = 3 B = 60/30 = 2 C = 60/60 = 1 Thus, wage ratio = 3 : 2 : 1 Total ratio = 6 Total wages = Rs. 66000 Value of 1 part = 66000/6 = Rs. 11000 So, A earns = 3 × 11000 = Rs. 33000 B earns = 2 × 11000 = Rs. 22000 C earns = 1 × 11000 = Rs. 11000 Hence, option (c) is correct. Incorrect Answer: (c) Explanation: Efficiency of: A = 1/20 B = 1/30 C = 1/60 Take LCM of 20, 30, 60 = 60 So, efficiency ratio: A = 60/20 = 3 B = 60/30 = 2 C = 60/60 = 1 Thus, wage ratio = 3 : 2 : 1 Total ratio = 6 Total wages = Rs. 66000 Value of 1 part = 66000/6 = Rs. 11000 So, A earns = 3 × 11000 = Rs. 33000 B earns = 2 × 11000 = Rs. 22000 C earns = 1 × 11000 = Rs. 11000 Hence, option (c) is correct.

#### 15. Question

A work is completed by A, B and C in 20 days, 30 days and 60 days respectively. If they together earn Rs. 66000 for the whole work, then which among the following is certainly true

• (a) The amount earned by A and C collectively is equal to the amount earned by B.

• (b) The amount earned by B and C collectively is less than the amount earned by A.

• (c) The amount earned by A alone is more than Rs. 30000.

• (d) None of the above.

Answer: (c)

Explanation:

Efficiency of:

• A = 1/20

• B = 1/30

• C = 1/60

Take LCM of 20, 30, 60 = 60

So, efficiency ratio:

• A = 60/20 = 3

• B = 60/30 = 2

• C = 60/60 = 1

Thus, wage ratio = 3 : 2 : 1

Total ratio = 6

Total wages = Rs. 66000

Value of 1 part = 66000/6 = Rs. 11000

• A earns = 3 × 11000 = Rs. 33000

• B earns = 2 × 11000 = Rs. 22000

• C earns = 1 × 11000 = Rs. 11000

Hence, option (c) is correct.

Answer: (c)

Explanation:

Efficiency of:

• A = 1/20

• B = 1/30

• C = 1/60

Take LCM of 20, 30, 60 = 60

So, efficiency ratio:

• A = 60/20 = 3

• B = 60/30 = 2

• C = 60/60 = 1

Thus, wage ratio = 3 : 2 : 1

Total ratio = 6

Total wages = Rs. 66000

Value of 1 part = 66000/6 = Rs. 11000

• A earns = 3 × 11000 = Rs. 33000

• B earns = 2 × 11000 = Rs. 22000

• C earns = 1 × 11000 = Rs. 11000

Hence, option (c) is correct.

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