UPSC EPFO SOLVED PAPER 2015

Total Questions: 70

21. If the Prime Minister of India is a member of the Rajya Sabha

Correct Answer: (d) He will not be able to vote in his favour in the event of a no-confidence motion
Solution:

Prime Minister of India who is a member of Rajya Sabha cannot vote on bills being presented in Lok Sabha. It is an irony of situation that such Prime Minister cannot vote in their defence during a no-confidence motion which is brought to remove them and their Cabinet. Similarly, passage of Money Bills requires only mandatory approval of Lok Sabha are brought at behest of Prime Minister but still they cannot vote for it to endorse it.

22. Which one of the following formed the basic premise for developing the Indian Constitution?

Correct Answer: (a) The Government of India Act, 1935
Solution:

The Government of India Act, 1935 formed the basic premise for developing the Indian Constitution. The most of the provision of Indian Constitution have been taken from the Government of India Act, 1935.
Salient features of the Government of India Act, 1935 were as follows -
• Abolition of provincial dyarchy and introduction of dyarchy at centre.
• Abolition of Indian Council and introduction of an advisory body in its place.
• Provision for an All India Federation with British India territories and princely states.
• Elaborate safeguards and protective instruments for minorities.

23. The Malimath Committee (2003) looked at ways to reform the

Correct Answer: (b) Criminal Justice System in India
Solution:

The Malimath committee was constituted by the Home Ministry for reforms in the Criminal Justice System in 2003. It was headed by Justice V.S. Malimath, former Chief Justice of the Karnataka and Kerala High Courts. The committee recommended admissibility of confessions made before a police officer as evidence in a court of law.

24. What are the disadvantages of Provident Fund Scheme?

1. Money is inadequate for risks occurring early in working life.
2. Inflation erodes the real value of savings.
3. It generates forced saving that can be used to finance national development plans.
Select the correct answer using the codes given below.

Correct Answer: (a) 1 and 2
Solution:

A provident fund is a compulsory, government-managed retirement savings scheme used in Singapore, India and other developing countries. Important disadvantages are-
• Money is inadequate for risks occurring early in working life.
• Inflation erodes the real value of savings.
• Withdrawing from the Provident Fund can be anti-productive.
• It has locking period of 15 years although partially amount withdrawal facility is there after 7th years onward.
• Maximum limit is just 1.5 lac only in a financial year to one account.

25. Besides resistance to pests, what are the other prospects for which plants have been genetically engineered?

1. To enable them to withstand drought
2. To increase the nutritive value of the produce
3. To enable them to grow and do photosynthesis in spaceships and space stations
4. To increase their shelf life
Select the correct answer using the codes given below.

Correct Answer: (c) 1, 2 and 4
Solution:

Besides resistance to pests some other prospects for which plants have been genetically engineered. They are
• To enable them to withstand drought.
• To increase the nutritive value of the produce
• To increase their shelflife
So, option (c) is correct.

26. Consider the following items.

1. Consumer goods and service
2. Gross private domestic investment
3. Goods and services produced by the Government
4. Net income from abroad
Which of the above items are included in GNP?

Correct Answer: (d) 1, 2, 3 and 4
Solution:

GNP is a broad measure of a nation’s total economic activity. GNP is the value of all finished goods and services produced in a country in one year by its nationals. GNP is commonly calculated by taking the sum of personal consumption expenditures, private domestic investment, government expenditure, net exports and any income earned by residents from–overseas investments, minus income earned within the domestic economy by foreign residents. So, the consumers goods and services, Gross private domestic investment, Goods and services produced by the Government and net income from abroad are included in GNP.

27. Which of the following statements best describes the content of the theory of distribution?

Correct Answer: (d) The distribution of income between the owners of factor resources
Solution:

‘Distribution’ refers to the sharing of the wealth that is produced among the different factors of production. In the modern time, the production of goods and services is a joint operation. Distribution theory, in economics, the systematic attempt to account for the sharing of the national income among the owners of the factors of production-land, labour, and capital.

28. The demand for a factor of production is said to be derived demand because

1. It is a function of the profitability of an enterprise.
2. It depends on the supply of complementary factors.
3. It stems from the demand for the final product.
4. It arises out of means being scare in relation to wants.
Which of the reason(s) given above is/are correct(?)

Correct Answer: (c) 2 and 3
Solution:

In economics, derived demand is demand for a factor of production or intermediate good that occurs as a result of the demand for another intermediate or final good.
The demand for a factor of production is said to be derived demand because
• It depends on the supply of complementary factors.
• It stems from the demand for the final product.

29. Whenever countries set up a Free Trade Area they abolish all restrictions on trade among themselves and

Correct Answer: (d) Each country maintains its own set of tariffs and quotas on imports from outside countries
Solution:

A Free trade Area (FTA) occurs when a group of countries agrees to eliminate tariffs among themselves but maintain their own external tariff on imports from the rest of the world. A Free Trade Area is a region in which a group of countries has signed a FTA and maintain little or no barriers to trade in the form of tariffs or quotas between each other. Examples of Free Trade Areas include NAFTA-United States, Mexico and Canada (being renegotiated), EFTA-European free trade Association consists of Norway, Iceland, Switzerland and etc.

30. Which of the following are the functions of Foreign Investment Promotion Board (FIPB)?

1. To ensure expeditious clearance of the proposals for foreign investment
2. To review periodically the implementation of the proposals cleared by the Board
3. To undertake all other activities for promoting and facilitating FDI as considered necessary from time to time
4. To interact with the FIPC being constituted separately by the Ministry of Industry
Select the correct answer using the codes given below.

Correct Answer: (c) 1, 2, 3 and 4
Solution:

The Foreign Investment Promotion Board (FIPB) was a national agency of Government of India, with the remit to consider and recommend FDI which does not come under the automatic route. The function of FIPB.
• To ensure expeditious clearance of the proposals for foreign investment
• To review periodically the implementation of the proposals cleared by the Board
• To undertake all other activities for promoting and facilitating FDI as considered necessary from time to time
• To interact with the FIPC being constituted separately by the Ministry of Industry