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UPSC 2024 Economics PYQ Solved

20 Economics questions from UPSC 2024 Prelims GS Paper 1 — solved with answers

20
Questions
70%
Trap Rate
Common Misconception
Top Trap
Q1easy
The total fertility rate in an economy is defined as:
(a) the number of children born per 1000 people in the population in a year.
(b) the number of children born to a couple in their lifetime in a given population.
(c) the birth rate minus death rate.
(d) the average number of live births a woman would have by the end of her child-bearing age.
Answer: (d)
Q2easyCommon Misconception
Consider the following statements : 1. In India, Non-Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve Bank of India. 2. In India, Foreign Institutional Investors can hold the Government Securities (G-Secs). 3. In India, Stock Exchanges can offer separate trading platforms for debts. Which of the statements given above is/are correct ?
(a) 1 and 2 only
(b) 3 only
(c) 1, 2 and 3
(d) 2 and 3 only
Answer: (c)
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Q3moderateCommon Misconception
In India, which of the following can trade in Corporate Bonds and Government Securities ? 1. Insurance Companies 2. Pension Funds 3. Retail Investors Select the correct answer using the code given below :
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answer: (d)
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Q4easy
Consider the following : 1. Exchange-Traded Funds (ETF) 2. Motor vehicles 3. Currency swap Which of the above is/are considered financial instruments ?
(a) 1 only
(b) 2 and 3 only
(c) 1, 2 and 3
(d) 1 and 3 only
Answer: (d)
Q5moderateAbsolute Qualifier
With reference to the sectors of the Indian economy, consider the following pairs : Economic activity | Sector 1. Storage of agricultural produce | Secondary 2. Dairy farm | Primary 3. Mineral exploration | Tertiary 4. Weaving cloth | Secondary How many of the pairs given above are correctly matched ?
(a) Only one
(b) Only two
(c) Only three
(d) All four
Answer: (b)
Trap Analysis
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Q7easy
With reference to physical capital in Indian economy, consider the following pairs : Items | Category 1. Farmer's plough | Working capital 2. Computer | Fixed capital 3. Yarn used by the weaver | Fixed capital 4. Petrol | Working capital How many of the above pairs are correctly matched ?
(a) Only one
(b) Only two
(c) Only three
(d) All four
Answer: (b)
Q9easyCommon Misconception
With reference to the rule/rules imposed by the Reserve Bank of India while treating foreign banks, consider the following statements : 1. There is no minimum capital requirement for wholly owned banking subsidiaries in India. 2. For wholly owned banking subsidiaries in India, at least 50% of the board members should be Indian nationals. 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: (d)
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Q10moderate
With reference to Corporate Social Responsibility (CSR) rules in India, consider the following statements : 1. CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities. 2. CSR rules do not specify minimum spending on CSR activities. 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)
Q20moderateCommon Misconception
With reference to the Indian economy, "Collateral Borrowing and Lending Obligations" are the instruments of :
(a) Bond market
(b) Forex market
(c) Money market
(d) Stock market
Answer: (c)
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Q21easyCommon Misconception
Consider the following airports : 1. Donyi Polo Airport 2. Kushinagar International Airport 3. Vijayawada International Airport In the recent past, which of the above have been constructed as Greenfield projects ?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answer: (a)
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Q44easyCommon Misconception
Consider the following statements regarding World Toilet Organization : 1. It is one of the agencies of the United Nations. 2. World Toilet Summit, World Toilet Day and World Toilet College are the initiatives of this organization, to inspire action to tackle the global sanitation crisis. 3. The main focus of its function is to grant funds to the least developed countries and developing countries to achieve the end of open defecation. Which of the statements given above is/are correct ?
(a) 2 only
(b) 3 only
(c) 1 and 2
(d) 2 and 3
Answer: (a)
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Q52moderateCommon Misconception
Consider the following statements : Statement-I : India does not import apples from the United States of America. Statement-II : In India, the law prohibits the import of Genetically Modified food without the approval of the competent authority. Which one of the following is correct in respect of the above statements ?
(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
Answer: (d)
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Q56moderateOutdated Info
Consider the following statements : Statement-I : The European Parliament approved The Net-Zero Industry Act recently. Statement-II : The European Union intends to achieve carbon neutrality by 2040 and therefore aims to develop all of its own clean technology by that time. Which one of the following is correct in respect of the above statements ?
(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
Answer: (c)
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Q57easy
Consider the following statements : Statement-I : Recently, Venezuela has achieved a rapid recovery from its economic crisis and succeeded in preventing its people from fleeing/emigrating to other countries. Statement-II : Venezuela has the world's largest oil reserves. Which one of the following is correct in respect of the above statements ?
(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
Answer: (d)
Q60easyPartial Truth
With reference to the Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) Yojana, consider the following statements : 1. The entry age group for enrolment in the scheme is 21 to 40 years. 2. Age specific contribution shall be made by the beneficiary. 3. Each subscriber under the scheme shall receive a minimum pension of Rs. 3,000 per month after attaining the age of 60 years. 4. Family pension is applicable to the spouse and unmarried daughters. Which of the statements given above is/are correct ?
(a) 1, 3 and 4
(b) 2 and 3 only
(c) 2 only
(d) 1, 2 and 4
Answer: (b)
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Q67moderate
Consider the following pairs : Country | Reason for being in the news 1. Argentina | Worst economic crisis 2. Sudan | War between the country's regular army and paramilitary forces 3. Turkey | Rescinded its membership of NATO How many of the pairs given above are correctly matched ?
(a) Only one pair
(b) Only two pairs
(c) All three pairs
(d) None of the pairs
Answer: (b)
Q81moderatePartial Truth
Consider the following statements : Statement-I : If the United States of America (USA) were to default on its debt, holders of US Treasury Bonds will not be able to exercise their claims to receive payment. Statement-II : The USA Government debt is not backed by any hard assets, but only by the faith of the Government. Which one of the following is correct in respect of the above statements ?
(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
Answer: (a)
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Q82moderatePartial Truth
Consider the following statements : Statement-I : Syndicated lending spreads the risk of borrower default across multiple lenders. Statement-II : The syndicated loan can be a fixed amount/lump sum of funds, but cannot be a credit line. Which one of the following is correct in respect of the above statements ?
(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
Answer: (x)
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Q83moderateCommon Misconception
Consider the following statements in respect of the digital rupee : 1. It is a sovereign currency issued by the Reserve Bank of India (RBI) in alignment with its monetary policy. 2. It appears as a liability on the RBI's balance sheet. 3. It is insured against inflation by its very design. 4. It is freely convertible against commercial bank money and cash. Which of the statements given above are correct ?
(a) 1 and 2 only
(b) 1 and 3 only
(c) 2 and 4 only
(d) 1, 2 and 4
Answer: (d)
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Q89moderateAbsolute Qualifier
Consider the following statements : 1. India is a member of the International Grains Council. 2. A country needs to be a member of the International Grains Council for exporting or importing rice and wheat. 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)
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