Economy (CDS-Solved Paper)

Total Questions: 50

21. Consider the following statements. [Morning Shift-2019 (I)]

1. Inflation in India continued to be moderate during 2017-18.
2. There was significant reduction in food inflation, particularly pulses and vegetables during the period.
Which of the statement(s) given above is/are correct?

Correct Answer: (c) Both 1 and 2
Solution:As per economic survey. Inflation in india continued to be moderate 3.3% during 2017-18. It was mainly due to the significant reduction in food inflation, particularly pulses and vegetables during the period. Hence, Both the statements are true.

22. Which one of the following hypotheses postulates that individual’s consumption in any time period depends upon resources available to the individual, rate of return on his capital and age of the individual? [Morning Shift-2019 (I)]

Correct Answer: (c) Life-Cycle Hypothesis
Solution:

The life-cycle hypothesis postulates that individual consumption in anytime period depends on.
(i) The resources available to the individual.
(ii) The rate of return on his capital.
(iii) The age of the individual.
It was developed by Franco Modigliani.

23. According to John Maynard Keynes, employment depends upon [Morning Shift-2019 (I)]

Correct Answer: (c) effective demand
Solution:

John Maynard Keynes was the founder of modern macro-economics. He was a British economist. As per his book the general theory of employment, interest and money, employment depends on effective demand.

With the increase in demand, manufacturing and other services require more person to manufacture goods and provide services thus leading to job growth. Hence, option (c) is true.

24. Which one among the following is the most populated state in India as per Census 2011? [Morning Shift-2019 (I)]

Correct Answer: (c) Meghalaya
Solution:

The Census of 2011 was 15th Census held in two phases.
Among the above state Meghalaya is most populated and Sikkim is least populated.
The state of Uttar Pradesh (First rank), Maharashtra (Second rank) and Bihar (Third rank) are among top three populated states according to the census 2011.

25. EK Janaki Ammal National Award on Taxonomy is administered by the [Morning Shift-2019 (I)]

Correct Answer: (d) Ministry of Environment, Forest and Climate Change
Solution:

EK Janaki Ammal National award on Taxonomy is administered by the Ministry of Environment, Forest and Climate change.

This award is categorised in three fields Plants, Animals and Microbial Taxonomy. The award is named after EK Janaki Ammal legendary Botanist from Kerala.

26. Which one of the following canons of taxation was not advocated by Adam Smith? [Morning Shift-2019 (I)]

Correct Answer: (d) Canon of fiscal adequacy
Solution:

Adam Smith was an economist, best known for his book ‘Wealth of Nation’. He presented four canon of taxation, later many other canon were developed. Smith’s canon of taxation include
(i) Canon of equality
(ii) Canon of certainty
(iii) Canon of convenience
(iv) Canon of economy
So canon of fiscal adequacy was not advocated by adam smith.

27. As per Census 2011, the concentration of Scheduled Caste population (going by percentage of Scheduled Caste population to total population of the State) is the highest in the state of [Evening Shift-2018 (II)]

Correct Answer: (c) Punjab
Solution:

Punjab has the largest share of Schedule Caste people in its population at 31.9%. Himachal Pradesh and West Bengal follow Punjab with 25.2% and 23.5%. Uttar Pradesh has 20.7% Schedule Caste people in its population.

28. Which one of the following is the correct ascending sequence of states with regard to percentage of urban population (2011)? [Evening Shift-2018 (II)]

Correct Answer: (c) Maharashtra–Kerala–Mizoram–Goa
Solution:

Percentage of urban population in Goa is 62.17%, Mizoram is 51.51% , Maharashtra is 45.23% and Kerala is 47.72%. The correct sequeuce is Maharastra–Kerela–Mizoram–Goa

29. According to the latest Reserve Bank of India study on state finances, capital spending is maximum on [Evening Shift-2018 (II)]

Correct Answer: (c) urban development
Solution:

According to reveal by the latest Reserve Bank of India (RBI) study on state finances, capital spending was maximum on urban development. Capital outlay by all states was expected to touch a staggering ₹5.37 trillion in 2018-19 , up from ₹4.7 trillion in 2017-18 (RE).

The spending amounted to 2.9 per cent of Gross Domestic Product (GDP). Under AMRUT scheme, states have to spend large amounts on urban development.

30. The Fourteenth Finance Commission assigned different weights to the following parameters for distribution of tax proceeds to the states [Evening Shift-2018 (II)]

1. Income distance
2. Population
3. Demographic changes
4. Area
Arrange the aforesaid parameters in descending order in terms of their weights.

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

The total devolution to states during the five year (2015-20) period will be ₹39.48 lakh crore. Criteria and weights for the horizontal distribution of the tax is as followsThe 14th Finance Commission of India is constituted in the Chairmanship of the
former RBI Governor Mr. YV Reddy for the period of 1st April, 2015 to 31st
March, 2020.
The 14th Finance Commission has recommended a record 10% increase in the states’ share in the Union taxes to 42% as compared to the 13th Finance Commission.
Hence, option (b) is the correct answer.