Previous year MCQs

Economy UPPSC 1998 GS-I
Question

Assertion (A): The rate of inflation in India has come down in the last three years.
Reason (R): The country has received a large among of foreign capital during these years.

Select the correct answer from the codes given below:
Codes:

Answer & Solution

Answer: (Detailed Solution Below)

Option B: Both A and R are true, but R is NOT the correct explanation of A

Detailed Solution:

The correct answer is “Both A and R are true, but R is NOT the correct explanation of A”.
While both statements are true, there is no direct causal relationship between the two. The inflow of foreign capital can influence various economic factors, but it is not the sole determinant of inflation. Other factors like monetary policy, supply-side issues, and global commodity prices also play a crucial role in influencing inflation rates.

Similar Questions:

Headline inflation refers to the change in value of all goods on the basket. On which basis is the headline inflation measured ?
  1. A) Wholesale Price Index
  2. B) Consumer Price Index for Industrial Worker
  3. C) Combined Consumer Price Index
  4. D) Urban Consumer Price Index
Since the advent of Planning era in India, the share of agriculture sector in GDP has:
  1. A) continued to decline
  2. B) continued to rise
  3. C) first increased and the declined
  4. D) first declined and them increased
India in recent past has succeeded in attracting large foreign investments in

1. Life Insurance Business
2. Services sector
3. Computer software and hardware
4. Trading
5. Telecommunications
6. Automobile industry

Select the correct answer from the codes given below:
Codes:
  1. A) 1,2 and 3
  2. B) 2,4 and 6
  3. C) 2, 3, 4 and 5
  4. D) 2, 3, 4, 5 and 6
Capital Market means
  1. A) share market
  2. B) commodity market
  3. C) money market
  4. D) all the above
The importance of agriculture in the Indian economy is known by which of its following contribution?
  1. A) National income and employment
  2. B) Industrial development and international trade
  3. C) Food supply
  4. D) All of the above
Which among the following are the sources of current revenue for the Central Govt?

I. Corporate Tax
II. Profit from Public Enterprises
III. Sale of National Savings Certificates
IV. Loans received from the World Bank
V. Excise duties

Select the correct answer from the codes given below:
Codes:
  1. A) I, II and III
  2. B) II, III and IV
  3. C) III, IV and V
  4. D) I, II and V
Which one of the following is not a measure of reducing inequalities?
  1. A) Minimum-Needs Programme
  2. B) Liberalization of economy
  3. C) Taxation
  4. D) Land Reforms
Provident Fund in India is
  1. A) Contractual savings
  2. B) Residual Savings
  3. C) Voluntary Savings
  4. D) Employers savings
Given below are two statements one is labelled as Assertion (A) and other as Reason (R) :

Assertion (A) : The government faces a tough time tackling the bottleneck inflation.
Reason (R) : The situation is due to deficiencies existing in the economy such as supply bottleneck and inefficient distribution.

Select the correct answer from the codes given below.
Codes :
  1. A) Both (A) and (R) are true and (R) is correct explanation of (A)
  2. B) Both (A) and (R) are true, but (R) is not correct explanation of (A)
  3. C) (A) is true, but (R) is false
  4. D) (A) is false, but (R) is true
What is meant by a Bullock–Capitalist?
  1. A) Farmers who are poor
  2. B) Farmers who are rich
  3. C) Farmers who have some resources but are not rich
  4. D) Farmers who are big Zamindars
Which of the following committees was set up in India for identification of BPL families in Urban Areas?
  1. A) Tendulkar Committee
  2. B) Saxena Committee
  3. C) Lakdawala Committee
  4. D) Hashim Committee
The system of philosophy propounded by Kapila Muni is:
  1. A) Purva Mimansa
  2. B) Sankhya Philosophy
  3. C) Nyaya Philosophy
  4. D) Uttar Mimansa