Economy (Part-3) (CDS-Solved Paper)

Total Questions: 50

1. What is meant by ‘Price discrimination’? [Evening Shift-2015 (II)]

Correct Answer: (b) A situation where the same product is sold to different consumers for different prices
Solution:

Price discrimination is a pricing strategy that charges customers different prices for the same product or service. In pure price discrimination, the seller will charge each customer the maximum price that he or she is willing to pay.

2. What is meant by ‘Public Good’? [Evening Shift-2015 (II)]

Correct Answer: (b) A commodity whose benefits are indivisibly spread among the entire community
Solution:

A product that one individual can consume without reducing its availability to another individual and from which no one is excluded. National defense, sewer systems, public parks and basic television and radio broadcasts are all be considered as public goods.

3. Which one of the following statements with regard to India’s economy between 1814-1860 is not correct? [Evening Shift-2015 (II)]

Correct Answer: (a) Between 1814 and 1850, four commodities dominated India’s exports— raw silk, opium, cotton and indigo
Solution:

India’s economy between 1814-1860 was important because in this period, four commodities dominated India’s exports— raw silk, opium, cotton indigo, jute. Indigo and raw silk were financed by foreign capital and required processing techniques. Hence option (b) is correct.

4. In view of the fact that kerosene is an inferior good in India, what is/are its implication(s)? [Evening Shift-2015 (II)]

1. As households get richer, they consume less kerosene.
2. Over time there is a decline in quality of kerosene.
3. Government needs to stop subsidies on kerosene.
Select the correct answer using the codes given below

Correct Answer: (a) Only 1
Solution:

Inferior goods are those which are cheap and of low quality. Kerosene is an example of inferior good. People of low income level use kerosene for cooking.

It is inferior to LPG. If the income level of poor household increases or if the government pushes through subsidies people switch to LPG and the kerosene consumption will be reduced.

5. Which one of the following is the major source of Gross Tax Revenue (GTR) for the Government of India? [Evening Shift-2015 (II)]

Correct Answer: (b) Corporation tax
Solution:

Corporation tax is the major source of Gross Tax Revenue (GTR)for the Government of India. A corporate tax is a direct tax imposed by a jurisdiction on the income or capital of corporations or analogous legal entities.

Many countries impose such taxes at the national level and a similar tax may be imposed at state or local levels. The taxes may also be referred to as income tax or capital tax.

6. Which one of the following represents a progressive tax structure? [Evening Shift-2015 (II)]

Correct Answer: (b) Tax rate increases as income increases
Solution:

Progressive tax  is the taxing mechanism, in which the taxing authority charges more  taxes  as the income of the taxpayer increases. A higher  tax  is collected from the taxpayers who earn more and lower taxes  from taxpayers earning less.

7. ‘Weibo’ is a social media platform, popularly used in [Evening Shift-2015 (II)]

Correct Answer: (b) China
Solution:

Weibo refers to microblogging in china or China-based microblogging services.

8. Which one of the following is not provided regular budgetary support by the Ministry of Defence? [Evening Shift-2015 (II)]

Correct Answer: (d) United Service Institution of India, New Delhi
Solution:

United service Institution of India New Delhi is not provided regular budgetary support by the Ministry of Defence vdefence ministry of Defence is provided regular financial assistance of these institutions

1. The Institute for Defence Studies and Analysis, New Delhi
2. Mountaineering Institute at Darjeeling and Uttarkashi
3. The Jawahar Institute of Mountaineering and Winter Sports (JIM) at Pahalgam. It carries out all its activities from the resource generated within.
Hence, option (d) is incorrect.

9. In April 2015, India and France agreed to conclude an inter-governmental agreement in respect of which one of the following platforms? [Evening Shift-2015 (II)]

Correct Answer: (a) Rafale medium multirole combat aircraft
Solution:

India and France agreed to conclude an inter-governmental agreement for supply of the Rafale medium multirole combat aircraft on terms that would be better than conveyed by Dassault Aviation as part of a separate process under way the delivery would be in time-frame that would be compatible with the operational requirement of IAF.

10. Where was the 14th Asia Security Summit (Shangri-La Dialogue) held in May 2015? [Evening Shift-2015 (II)]

Correct Answer: (d) Singapore
Solution:

The 14th Asia Security Summit took place from 29th-31st May, 2015 in Singapore.