CAPF (AC) 2018 (Paper-1) (Question 101-125)

Total Questions: 25

21. The power of the President of India to refer a matter back to the Council of Ministers for reconsideration was inserted in the Constitution by

(a) 44th Amendment
(b) 42nd Amendment
(c) 43rd Amendment
(d) 35th Amendment

Correct Answer: (a) 44th Amendment

Solution:Under Article 352 of the Constitution, the President can only proclaim an emergency when she/he has a confirmation of the crisis by the Prime Minister and their Cabinet, presented to the President in written form. In addition, the right to property from the list of fundamental rights was removed under the 44th Amendment of 1978.

A new provision, Article 300-A, was added to the Constitution, which provided that "no person shall be deprived of his property save by authority of law". Therefore, the correct option is (a).

22. Ashok Mehta Committee was constituted to make recommendations on which one of the following issues?

(a) Division of tax revenues between Centre and States
(b) Panchayati Raj System
(c) Appointment of Governors
(d) Presidential and Vice Presidential Elections

Correct Answer: (b) Panchayati Raj System

Solution:In December 1977, a committee on Panchayati Raj institutions was appointed by the Janata Government. The committee was set up under the chairmanship of Ashoka Mehta. In August 1978, the committee submitted its report.

The report included 132 recommendations to revive and strengthen the declining Panchayati Raj system in the country. In the consequences of the report, new legislation was passed by the states of Karnataka, Andhra Pradesh, and West Bengal. Therefore, the correct option is (b).

23. In India, approximately what percentage of households still use firewood for cooking as per 2011 Census?

(a) 20%
(b) 40%
(c) 50%
(d) 60%

Correct Answer: (c) 50%

Solution:Census 2011states that the use of firewood for cooking purposes by households is highest at 49.0 per cent followed by LPG/PNG that occupies the share of 28.5 per cent in the country. India derives most of its cooking energy needs from solid fuels, such as cow dung cake, firewood, and crop residue.

On the contrary, developed countries, such as the USA, UK, Italy, Denmark and others use cleaner cooking fuels. Therefore, the correct option is (c).

24. Consider the following countries :

1. China

2. Spain

3. India

4. Russia

Which one of the following is the correct ascending order of the above countries in terms of their share of services sector to Gross Value Added (GVA) during the period 2001-2015?

(a) 1, 2, 3, 4
(b) 1, 3, 4, 2
(c) 1, 2, 4, 3
(d) 1, 3, 2, 4
(*)

Correct Answer: (*)

Solution:Services sector is the largest sector of the world as 63 percent of total global wealth comes from services sector. United States is the largest producer of services sector with around 15.53 trillion USD. Services sector is the leading sector in 201 countries/economies.

30 countries receive more than 80 percent of their GDP from services sector. Chad has lowest 27% contribution by services sector in its economy. Gibraltar has 100% of GDP in services sector, other two sectors has zero output. Preferences China: 52% share of GDP comes from service sector. India: 61% share comes from service sector. Russia: 62% comes from service sector. Spain: 71% share comes from service sector.

25. If farmers' loans are waived in India, how will it affect the aggregate demand in the economy?

1. Private consumption impact via increase in private sector net wealth

2. Public sector impact via changes in government expenditure/taxes

3. Crowding-out impact via higher borrowings by State Governments

4. Crowding-in impact via higher credit availability as bank NPAs fall

Select the correct answer using the code given below.

(a) 1, 2 and 3 only
(b) 1, 2, 3 and 4
(c) 3 and 4 only
(d) 1 and 2 only

Correct Answer: (b) 1, 2, 3 and 4

Solution:The strength of the household sector's balance sheet is a basic determinant of private consumption. An economic theory arguing that rising public sector spending drives down or even eliminates private sector spending is known as a crowding-out effect. It occurs when there is an increase in private sector investment due to higher government spending.

The crowding in effects occurs because higher government spending leads to an increase in economic growth and therefore encourages firms to invest because there are now more profitable investment opportunities. Therefore, the correct option is (b).

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