Economic Survey 2017 - 2018

Gist
Through mcq’s

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Q.1.Which of the following areas,
Economic Survey 2017-18 have
major policy focus?
1. Employment
2. Education
3. Agriculture
a) 1 & 2 only b) 2 & 3 only
c) 1 & 3 only d) 1,2,3
Q.2. Consider the following
statements regarding the Producer
Price Index (PPI):
1. The Government had set up a
Working Group under the
Chairmanship of Professor B. N.
Goldar on 21st August 2014 to
suggest the methodology for
introducing Producer Price Index
(PPI) in India.
2. The Producer Price Index (PPI)
measures the average change in
the prices of goods and services,
either as they leave the place of
production called Output PPI or
asthey enter the production
process called Input PPI.
3. PPI contrasts with other
measures such as the Consumer
Price Index (CPI) which measures
changes in prices from buyers or
consumers perspective.
Which of the above statements
is/are correct?
a) 2 only b) 1 and 2
c) 2 and 3 d) 1, 2 and 3
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Q.3. Consider the following
statements regarding the Housing
Price Index:
1. The Housing Price Indices (HPIs)
are a broad measure of the
movement of residential property
prices observed within a
geographic boundary.
2. The first official housing price
index for the country named
‘NHB RESIDEX’ was launched in
July 2007 by the National
Housing Bank (NHB).
Which of the above statements
is/are correct?
a) 1 onlyb) 2 only
c) Both 1 and 2 d)Neither 1 nor 2
Q.4. Which of the following states
has the lowest inflation in the
country?
a)Odisha
b) Uttar Pradesh
c) Bihar
d) Chhattisgarh
Q.5.Headline inflation or General
inflation measured by which of the
following indices?
a) Wholesale Price Index
b) Consumer Price Index
c) Producer Price Index
d) All of the above
Q.6. Consider the following
statements regarding the Price
Stabilization Fund (PSF):
1. The Price Stabilization Fund (PSF)
was set up in 2014-15 under the
Department of Agriculture,
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Cooperation & Famers Welfare
(DAC&FW) to help regulate the Which of the above statements
price volatility of important Agri- is/are correct?
horticultural commodities. a) 1 only b) 2 only
2. The scheme provides for c) Both 1 and 2 d) Neither 1 nor 2
maintaining a strategic buffer of
aforementioned commodities for Q.9.Which of the following were the
subsequent calibrated release to twin goals of Make In India
moderate price volatility and Programme?
discourages hoarding and 1. Reviving Manufacturing sector
unscrupulous speculation. 2. Cheap Labour Supply
3. The fund allocated under PSF has 3. Face the International
been primarily utilized towards Competition
building the buffer of up to 20 a) 1 & 2 only b) 2 & 3 only
lakh tones of pulses. c) 1 & 3 only d) All of these

Which of the above statements Q.10. According to Economic Survey

is/are correct? 2017-18, Net services receipts
a) 2 only b) 1 and 2 increased in 2017-18 on account of
c) 2 and 3 d) 1, 2 and 3 which of the following?

Q.7. Which one of the following is 1. Rise in earnings from

telecommunications
the correct sequence in the
2. Increase in foreign tourist
decreasing order of production (in
arrivals
million tonnes) of the given food
3. Growth in software exports
grains in India in 2016-17? 4. Increase in private
remittances
a) Wheat - Rice - Pulses - Oilseeds
b) Rice - Wheat - Pulses - Oilseeds Select the correct answer using the
c) Wheat - Rice - Oilseeds - Pulses code given below.
d) Rice - Wheat - Oilseeds – Pulses
(a) 1 and 3 only
(b) 1, 3 and 4 only
Q.8. Consider the following (c) 2 and 4 only
statements related to the role of (d) 1, 2, 3 and 4
women in agriculture in India.
1) As per Census 2011, out of total
female main workers, 55 percent Q.11. Which of the following is/are
were agricultural labourers. the effects of climate change on food
2) As per Census 2011, only 12.8 security?
percent of the operational
holdings were owned by women.
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 1. Increased frequency of Select the correct answer using the
extreme climatic events will code given below.
reduce crop production.
2. Acidification of oceans will (a) 1 only
disturb the marine food chain. (b) 1 and 3 only
3. As global temperature (c) 2 and 3 only
increases, pest attacks may (d) 1, 2 and 3
increase on crops. Q.14. RBI is keeping the policy rate
Select the correct answer using the at a higher level for quite some time.
code below. Which of the following conditions
may have led to such behaviour?
(a) 1 and 2 only
(b) 2 only 1. Inflation in the economy is
(c) 1 and 3 only high
(d) 1, 2 and 3 2. Inflation expectation in the
economy is high
Q.12. Which of the following
agencies conducts ‘inflation Select the correct answer using the
expectation survey’ of households in code given below:
India?
(a) (i) only
(a) Central Statistical (b) (ii) only
Organization (c) Both (i) & (ii)
(b) National Sample Survey (d) Neither (i) nor (ii)
Organization
(c) Reserve Bank of India Q.15. "Government offers above
(d) Ministry of Finance
market interest rate on the small
savings schemes like PPF etc.” It
leads to:
Q.13. With reference to Clean
Ganga Fund, which of the following (i) Hindrance in monetary
statements is/are correct? policy transmission
(ii) Supports monetary policy
1. It will be financed by imposing transmission
a cess on the industries in (iii) Mostly benefits the rich
Ganga Basin states. people
2. Activities outlined under the (iv) Mostly benefits the poor
'NamamiGange' programme people
will be financed through it.
3. It will be administered by a Select the correct answer using the
trust chaired by Finance code given below:
Minister.
(a) (i) & (iii) only
(b) (i) & (iv) only
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 (c) (ii) & (iii) only Q.18. Off-grid Renewable Energy
(d) (ii) & (iv) only can be a game changer as it can
provide energy to isolated
communities and areas. Which of
Q.16.The Government of India has the following can be used as a part
set a target of 175 GW renewable of such system?
power installed capacity by the end
1. Biomass gasifiers
of 2022. In this context, arrange the
2. Micro hydro projects
following renewable energy sources
3. Solar Photo Voltaic Roof-top
in the decreasing order of their
Systems
specific targets:
Select the correct answer using the
1. Small hydro power code below.
2. Solar power
3. Biomass power (a) 1 and 2 only
4. Wind power (b) 2 and 3 only
(c) 1 and 3 only
Select the correct answer using the
(d) 1, 2 and 3
codes given below:

(a) 2-4-3-1
(b) 4-2-1-3 Q.19. The term ‘Crowd-out’ in
(c) 1-3-2-4 economy is related to which of the
(d) 4-2-3-1 following:
Q.17.The Macroeconomic (i) Increased public sector
Vulnerability Index (MVI) of a spending replaces private
country is constructed by adding sector spending
together which of the following: (ii) Governments deficit
spending through
(i) Fiscal Deficit borrowed money increases
(ii) Current Account Deficit interest rates
(iii) External Debt (iii) Government spending uses
(iv) Inflation up financial resources that
Select the correct answer using the would otherwise be used
code given below: by private firms
(iv) Government providing a
(a) (i), (iii) & (iv) only service or good that would
(b) (i), (ii) & (iv) only otherwise be a business
(c) (ii) & (iii) only opportunity for private
(d) All of the above industry

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Q.20. 'RISE', an initiative by 1. India’s inter-state trade in
Government of India, aims at goods is less than 10 percent
of GDP.
(a) Promoting the Self Help 2. Maharashtra is the largest
Groups in rural areas. exporting as well as largest
(b) Promoting research in premier importing state in India.
education institutes.
(c) Providing financial and Which of the statements given above
technical assistance to young is/are correct?
start-up entrepreneurs.
(a) 1 only
(d) Providing skill development to
(b) 2 only
widows and destitute.
(c) Both 1 and 2
Q.21. The term ‘Crowd-in’ in the (d) Neither 1 nor 2
economy is related to which of the
following?
Q.23. Consider the following
1. Targeted government
statements:
spending acts as an engine
of growth in the short run (i) Minimum Export Price
2. Government spending (MEP) is the price below
complements the private which exports are not
investment permitted
3. Government spending (ii) MEP is imposed to curb
substitutes the private the price rise and prevent
investment disruptions in domestic
4. Government spending supply
boosts demand for goods (iii) Minimum Import Price
which in turn increases (MIP) is the price below
private demand which imports are not
Select the correct answer using the allowed
(iv) MIP is imposed to curb
code given below:
imports and protect
(a) 1 & 2 only domestic producers
(b) 1 & 3 only Select the correct answer using the
(c) 1, 2 & 4 only
code given below:
(d) 1, 3 & 4 only
(a) (i) & (iii) only
(b) (ii) & (iii) only
Q.22. In the context of India’s (c) (ii) , (iii) & (iv) only
internal trade, consider the following (d) All of the above
statements:

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Q.24. Which of the following
statements are true regarding the
present subsidy regime for urea
fertilizer
(i) It is sold at a government
notified price
(ii) The imports of urea in India is
canalized
(iii)The subsidy is given on a cost
plus basis
(iv) Mandatory production of
neem coated urea for domestic
producers
Q.25. According to Economic Survey
2017-18, which of the following best
defines the phenomenon of "son
meta-preference"?
(a) It is having children until the
desired number of sons are
born.
(b) It is the preference of parents
to have a son as their first
child.
(c) It is the preference of the
society to have more males for
workforce than females.
(d) None of the above.
Q.26. Which of the following sector
are most labourintensive
(a) Leather
(b) Textile and garments
(c) Food processing
(d) Steel
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Q.27. With reference to the
Insurance penetration, consider the
following statements:
1. It is the ratio of premium
underwritten in a given year
to the gross domestic product.
2. It has increased to more than
50 per cent in the last decade.
Which of the statements given above
is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Q.28. Who cannot bid for
companies put up for sale under the
new Insolvency and Bankruptcy
Code (IBC):
(i) A wilful defaulter
(ii) Promoters of the company
Select the correct answer using the
code given below
(a) (i) only
(b) (ii) only
(c) Both (i) & (ii)
(d) Neither (i) nor (ii)
Q.29. With reference to the growth
in gross value addition in services
sector in India, consider the
following statements:
1. 'Public administration,
defence & other services'
registered higher growth in
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 2016-17 than the previous
year owing to implementation
of seventh pay commission.
2. Transport and Hotel services
have registered negative
growth in 2016-17 owing to
decrease in foreign tourist
arrival in India.
Which of the statements given above
is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
(c) 2 and 3 only
(d) 1 and 4 only
Q.32. Consider the following
statements:
1. The ratio of gross fixed capital
formation to GDP has steadily
increased in the last decade.
2. The ratio of domestic saving to
GDP has steadily increased in
the last decade.
Which of the statements given above
is/are correct?

(a) 1 only
Q.30.'Demographic Dividend' is (b) 2 only
estimated/calculated in terms of (c) Both 1 and 2
which of the following: (d) Neither 1 nor 2

(a) Population
(b) Total Fertility Rate (TFR) Q.33. Which of the following is
(c) Working Age to Non-Working correct regarding Producer Price
Age population ratio Index (PPI)?
(d) Per capita income growth
(a) It captures the price changes
at the point of bulk
Q.31. India has the highest trade transactions and include
deficit with China. In this regard, taxes and distribution costs
which of the following are the major up to the stage of wholesale
transactions.
items of import from China?
(b) It is a measure of change in
1. Electronic Devices retail prices of goods and
2. Chemical Fertilizers services consumed by defined
3. Cotton Yarn population group.
4. Aluminium Ore (c) It measures the average
change in the price of goods
Select the correct answer using the and services either as they
code given below. leave the place of production
or as they enter the
(a) 1 and 2 only
production process.
(b) 1, 2 and 4 only

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 (d) It is a measure of change in
retail prices of food products
produced in a given area with
reference to a base year.
Q.34.The Economic Survey 2017-18
estimates a Learning Poverty
Headcount (LPC). LPC refers to
(a) The number of children who
do not meet the basic learning
benchmark.
(b) The number of households
where no adult member is
literate.
(c) The statistical method to
calculate the number of below
poverty line (BPL) households.
(d) The number of school-enrolled
children who come from poor
families.
Q.35. Consider the following
statements regarding trend in the
social expenditure as proportion of
the Gross Domestic Product (GDP):
1. Education expenditure as a
proportion of the GDP has
continuously decreased in the
last 4 fiscal years.
2. Health expenditure as a
proportion of the GDP has
continuously increased in the
last 4 fiscal years.
Which of the statements given above
is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
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Q.36. After agriculture which of the
following sectors provides the largest
employment in India?
(a) Real estate and construction
(b) Mining
(c) Information Technology
(d) Education
Q.37. In the context of Indian
economy, which of the following
actions will boost investment?
1. Reforms to facilitate ease of
doing business.
2. Steps taken by RBI to resolve
twin balance sheet problem.
3. Removal of anti-dumping
duty.
Select the correct answer using the
code given below.
(a) 1 only
(b) 1 and 2 only
(c) 2 only
(d) 1, 2 and 3
Q.38. Welfare of the people of a
country is best represented by
which of the following parameter:
(a) Per capita net national income
at constant prices
(b) Per capita net national income
at current prices
(c) Per capita GDP at constant
prices
(d) Per capita GDP at current
prices
Page 9

Q.39. Which of the following is/are
the possible benefits of farm
mechanization?
1. Increase in crop productivity.
2. Reduction in cost of
cultivation.
3. Reduction in post-harvest
losses.
Select the correct answer using the
code given below.
(a) 1 and 2 only
(b) 1 only
(c) 2 and 3 only
(d) 1, 2 and 3
Q.40. Which of the following is the
correct arrangement regarding
sectoral expenditure of funds for
conducting Research and
Development (R&D)?
(a) Defence > Space > Atomic
Energy > Health > Agriculture
(b) Atomic Energy > Space >
Defence > Health >
Agriculture
(c) Space > Defence > Atomic
Energy > Agriculture > Health
(d) Defence > Space > Atomic
Energy > Agriculture > Health
Q.41. According to Economic Survey
2017-18, women participation in the
workforce has decreased on account
of which of the following?
1. Increased income of men
resulting the women to withdraw
from labour force.
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2. Higher education levels of
women allowing them to pursue
leisure and nonwork activities.
3. Insufficient availability of jobs
that allow women to reconcile
household duties with work.
4. Safety concerns and social
norms preventing women's
mobility.
Select the correct answer using the
code given below.
(a) 3 and 4 only
(b) 1 and 2 only
(c) 1, 2 and 3 only
(d) 1, 2, 3 and 4
Q.42. With reference to Gramin
Agricultural Markets (GrAMs),
consider the following statements:
1. These will be electronically
linked to e- NAM.
2. These will be completely
exempted from regulations of
APMCs.
3. An Agri-Market Infrastructure
Fund will upgrade and
develop infrastructure in
GrAMS.
Which of the statements given above
are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Q.43. With which of the following
countries India continues to have a
negative bilateral trade balance
(trade deficit)?
Page 10
 1. USA Which of the statements given above
2. UK are correct?
3. Saudi Arabia
4. UAE (a) 1 and 2 only
(b) 2 and 3 only
Select the correct answer using the (c) 1 and 3 only
code given below. (d) 1, 2 and 3
(a) 1 and 2 only
(b) 3 and 4 only
(c) 1 and 4 only Q.46. Which of the following
(d) 3 only Indirect taxes have been subsumed
under GST?
Q.44. In the recent budget the
Government announce to launch a 1. Central excise duty
mission on cyber physical systems 2. Entertainment tax
(CPS). Which of the following can be 3. Luxury tax
considered 'Cyber Physical 4. Octroi tax
Systems'? Select the correct answer using the
1. aircraft navigation systems code given below.
2. self-driven cars (a) 1, 2, 3 and 4
3. smart electricity grids (b) 2 and 3 only
Select the correct answer using the (c) 1, 3 and 4 only
code given below. (d) 1, 2 and 4 only

(a) 1 and 2 only

(b) 2 and 3 only Q.47. Consider the following
(c) 1 and 3 only statements regarding Index of
(d) 1, 2 and 3
Industrial Production (IIP):

Q.45. Consider the following
statements about composition
scheme:
1. It allows small taxpayers to
escape from too many GST
formalities.
2. It applies only to the Inter-
State supplies.
3. The tax is paid at fixed rate
under this scheme.
1. It is compiled by Department
of Industrial Policy &
Promotion (DIPP).
2. More than three-fourths of the
weight in IIP is assigned to
manufacturing.
3. The base year for its
calculation is 2004-05.
Which of the statements given above
is/are correct?
(a) 1 only

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 (b) 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
Q.48. In the context of economy,
which of the following factors
determines the price of an asset?
1. Expected return on that asset.
2. The returns available on other
assets.
Select the correct answer using the
code given below.
(a) Providing education and
health facilities to all
adolescent girls.
(b) Ending child marriage
(c) Providing electricity to all
remaining non electrified
households.
(d) Providing broadband
connectivity to all villages.
Q.51. Which of the following is/are
the indicators used by UNESCO to
compute the Gender Parity Index?

(a) 1 only 1. Access to education

(b) 2 only 2. Health and survival
(c) Both 1 and 2 3. Political empowerment
(d) Neither 1 nor 2 Select the correct answer using the
code given below.

Q.49. With reference to the recently (a) 2 and 3 only

(b) 1 and 3 only
announced 'Affordable Housing
(c) 1 only
Fund', which of the following
(d) 1, 2 and 3
statements is/are correct?

1. It will be established under

NABARD. Q.52. According to the economic
2. It will be funded by collecting survey 2017-18, which of the
cess on real estate following is/are the major reasons
registrations. behind current slowdown in India?
Select the correct answer using the
1. Decreasing public investment
codes given below. 2. Decline in financial savings in
(a) 1 only bank deposits
(b) 2 only 3. Twin balance sheet problem
(c) Both 1 and 2 Select the correct answer using the
(d) Neither 1 nor 2 code given below.

(a) 1 and 2 only

Q.50. 'SaubhagyaYojana', (b) 3 only
sometimes seen in news, aims at (c) 1 and 3 only

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 (d) 1, 2 and 3
Q.53. With reference to Economic
Survey 2017- 18, the term "Late
convergence" refers to:
(a) Rise in income levels of lower
middle income countries after
the financial crisis of 2008.
(b) Fall of income in advanced
economies post 2008
economic recession.
(c) Increase in income of poorer
countries during the
globalization era.
(d) Increase in per capita income
of Indian economy in the post
1991 reform period.
Q.54. Consider the following
statements regarding India's
diamond trade:
1. India is the world's largest
diamond consumer.
2. India exports 95% of the total
imported rough diamond.
Which of the statements given above
is/are not correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Q.55. Which one of the following is
the largest contributor to India’s
current account deficit in 2017-18?
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(a) Manufacturing trade deficit
(b) Gold imports
(c) Remittances deficit
(d) Oil imports
Q.56. With reference to taxation
powers of government, consider the
following statements:
1. Property tax is collected by
State Government.
2. Land tax is collected by local
bodies.
Which of the statement given above
is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Q.57. In the budget 2018-19,
Government has announced to
unveil a Defence Production Policy
2018 with the primary objective to
(a) promote domestic production
by public sector, private sector
and MSMEs
(b) Encourage FDI in defence
production and procurement.
(c) stimulate research and
development in defence
innovation
(d) Increase India's nuclear
arsenal and prowess.
Page 13
Q.58. Which of the following
statements is/are correct regarding
Indian railways?
1. The share of Indian railways
in freight movement has been
steadily increasing over a
period of time.
2. While the passenger fare had
remained relatively constant,
the freight fare has increased
sharply over the year.
Select the correct answer using the
code given below.
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 Nor 2
Q.59. With respect to "Rashtriya
Rail SanrakshaKosh", recently
created by the Railway Ministry,
consider the following statements:
1. It will assist Indian Railways
to accomplish its zero-
accident mission.
2. It is a non-lapsable fund.
3. It is based on the
recommendations of Dr. Anil
Kakodkar Committee.
Which of the statements given above
is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
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Q.60. With reference to transfer
pricing, 'safe harbour regime' in
India refers to
(a) A set of presumptive taxation
norms that entail rigorous
auditing of cross border
transactions by MNCs.
(b) Advance pricing agreements
that rely on certain economic
presumptions to avoid audits.
(c) Circumstances under which
income-tax authorities will
accept the transfer price
declared by the assesse
without any question or
scrutiny.
(d) An arbitration mechanism to
settle disputes over related
party transactions.
Q.61.Which of the following
statements best describes the term
„CriSidEx‟, recently seen in the
news?
(a) It is an independent centre
established with the objective
of generating quality
entrepreneurship.
(b) It is joint military exercise
held between India and
Cambodia.
(c) It is a composite index that
will measure micro and small
enterprises business
sentiment.
(d) It is a portal to make all the
financial and non-financial
information public.
Page 14
Q.62. Consider the following
statements:
1. India is the largest remittance
recipient country in the world
in 2017.
2. Fall in international crude oil
price has led to increase in
India’s remittance receipts.
Which of the statements given above
is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Q.63. Which of the following
correctly describes the 'Long Term
Capital Gains Tax' which was re-
introduced in the Union budget
2018-19?
(a) It is the tax paid on profit
generated by an asset held for
a particular time.
(b) It is the tax levied on import of
capital goods.
(c) It is the tax levied on
manufacturing industries
deploying capital intensive
technology.
(d) It is the tax exempted to
MNCs for their long term
association with a country.
Q.64. Which among the following
releases the Inclusive Development
Index?
(a) World Bank
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(b) European Union
(c) Amnesty International
(d) World Economic Forum
Q.65. Regarding
„PradhanMantriMatruVandanaYojan
a‟, which of the following
statements is/are correct?
1. Its objective is to provide full
compensation for the wage
loss of pregnant women and
lactating mothers.
2. All pregnant women and
lactating mothers including
regular employee of Central
and state governments can be
its beneficiaries.
3. It is being implemented by the
Ministry of Women and Child
Development at the national
level.
Select the correct answer using the
code given below.
(a) 3 only
(b) 2 and 3 only
(c) 1 and 2 only
(d) 1, 2 and 3
Q.66. With reference to the National
Achievement Survey, recently
released by the Ministry of Human
Resource Development, consider the
following statements:
1. It is conducted to monitor
improvement in children’s
learning levels and to assess
the health of the government
education system.
Page 15
 2. It is co-ordinated by the
NCERT at the national level.
Which of the statements given above
is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Q.67. According to economic survey
2017-18, which of the following key
initiatives were taken by the
government to address climate
change?
1. Quick Response (QR) code
2. Zero Effect, Zero Defect policy
initiative
3. Green Debt Securities
Select the correct answer using the
code given below.
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Q.68.Which one of the following is
likely to be the most inflationary in
its effect?
(a) Good agricultural production.
(b) Increase in house rent
allowance for the central
government employees.
(c) Increase in population size of
the country.
(d) An increase in Cash Reserve
Ratios of Banks with RBI.
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Q.69. Baltic Dry Index, sometimes
seen in news, is used as an
economic indicator for
(a) The likely movements in crude
oil prices.
(b) The direction of investment
flows.
(c) The ease of movement of
skilled/unskilled persons
across countries.
(d) The robustness of trade and
shipping services.
Q.70.GST has been widely heralded
for
a) Potential to create one Indian
Market
b) Expand the tax base
c) Foster Cooperative federalism
d) All of the above
Q.71.Consider the following
statements.
1. A shift of resources from low
productivity sectors.
2. A large share of resources devoted
to sectors that have the potential for
rapid productivity growth.
Which of the above is/are required
for successful development of
country?
a) 1 only b) 2 only
c) both d) None
Q.72.Which of the following states
have declare first time ‘Internet’ as a
basic human right?
Page 16
a) KERALA Q.76. The Government has recently
b) MAHARASHTRA announced bank recapitalization. It
c) KARNATAKA is aim at
d) TAMILNADU 1. Easing the balance sheet of PSB’s
2. Accelerate the pace of credit
Q.73. Consider the following Disbursement
statements.
1.The increase in short term debt Which of the above is/are incorrect?
was primarily due to trade related a) 1 only b) 2 only
credits. c) both d) None
2. The increase in long term debt
was primarily due to low Q.77.Consider the following
agricultural production. statements regarding WIPO (World
Which of the above statement is/are intellectual Property organization)
incorrect? 1. It is a specialized agency of UN.
a) 1 only b) 2 only 2. According to WIPO, India is the
c) both d) None 7th largest patent filing office in
the world.
Q.74.Consider the following Which of the above is/are correct?
statements. a) 1 only b) 2 only
1. The production of Coal, Refinery c) both d) None
products, fertilizers ,steel &
Electricity registered Negative Q.78.Which of the following were
growth. the reasons for ‘Missing Women’
2. Crude Oil, Natural Gas & Cement 1. Sex selective abortion
production registered positive 2. Disease
growth. 3. Neglect
Which of the above statements are 4. Inadequate nutrition
correct regarding core eight
industries performance? Select the correct answer using
a) 1 only b) 2 only codes given below?
c) both d) None a) 1 & 2 only b) 1,2& 3 only
c) 1,2& 4 only d) 1,2,3,& 4
Q.75.The Index of Industrial
production is given by Q.79.Consider the following the
a) Ministry of Corporate affairs statement.
b) Ministry of commerce 1. According to World Bank, India
c) Department of Industrial policy & will remain a top remittance
promotion. country in 2017.
d) Department of commerce 2. According to world bank, the
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number of Indian workers Q.80. The Poor Agricultural
emigrating to Saudi Arabia has Performance can lead to
decreased.
a) Inflation
Which of the above is/are correct? b) Farmer Distress
a) 1 only b) 2 only c) Unrest and larger political and
c) both d) None social dissatisfaction.
d) All of the above

Explaination
Q.1. Ans :D : Over the medium term, three areas of policy focus
stand out: Employment: finding good jobs for the young and burgeoning
workforce, especially for women. Education: creating an educated and healthy
labor force. Agriculture: raising farm productivity while strengthening
agricultural resilience. Above all, India must continue improving the climate for
rapid economic growth on the strength of the only two truly sustainable
engines—private investment and exports.

Q.2. Ans: D : The Government had set up a Working Group under the
Chairmanship of Professor B. N. Goldar on 21st August 2014 to suggest the
methodology for introducing Producer Price Index (PPI) in India. The Working
Group submitted its report on 31 August 2017.

The Producer Price Index (PPI) measures the average change in the prices of
goods and services, either as they leave the place of production called Output
PPI or as they enter the production process called Input PPI. Thus, the output
indices measure the average change in prices that producers receive for their
outputs while the input indices measure the average change in prices that
producers pay for their inputs. PPI contrasts with other measures such as the
Consumer Price Index (CPI) which measures changes in prices from buyers or
consumers perspective.

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Q.3. Ans :C : The Housing Price Indices (HPIs) are a broad measure of the
movement of residential property prices observed within a geographic
boundary. The first official housing price index for the country named ‘NHB
RESIDEX’ was launched in July 2007 by the National Housing Bank (NHB).
Over time, the base year has been revised to FY 2012-13 to ensure capturing
the latest information and accurately reflect the current economic situation in
the country. Currently, National Housing Bank is publishing NHB RESIDEX for
50 cities on a quarterly basis with FY 2012-13 as the base year. Among 50
cities covered are 18 State/UT capitals and 37 Smart Cities. NHB is not
computing the composite all India housing price index as of now.

Q.4. Ans : A : Many States have witnessed a sharp fall in CPI inflation during
2017-18 (Apr-Dec). Inflation in seventeen States was below 4 per cent in FY
2017-18 (Apr-Dec) as compared to only three States in 2016-17 (Apr-Dec). Five
States, namely, Jammu & Kashmir, Kerala, Delhi, Tamil Nadu and Himachal
Pradesh recorded inflation of more than 4 per cent in FY 2017-18 (Apr-Dec)
whereas nineteen States had inflation of more than 4 per cent in FY 2016-17
(Apr-Dec). Ten States had an inflation rate lower than All India average for FY
2017-18 (Apr-Dec) with Odisha having the lowest inflation followed by Uttar
Pradesh, Bihar and Chhattisgarh, respectively.

Q.5. Ans : B : Recently, Indian economy is witnessing a gradual transition from

a period of high and variable inflation to more stable prices in the last four
years. Headline inflation measured by the Consumer Price Index (CPI) has
remained under control for the fourth successive year. Financial year (FY)
2017-18 began with an annual inflation rate of 3.0 per cent. In the first two
quarters of FY 2017-18, there was a moderate increase in prices, resulting in a
low level of inflation of 2.2 per cent in quarter one and 3.0 per cent in quarter
two. The headline inflation rate reached its series low of 1.5 per cent in the
month of June 2017. Food inflation measured by the Consumer Food Price
Index (CFPI) declined to a low of 1.2 per cent during the FY 2017-18 (April-
December).The average inflation based on the new series (2011-12) of
Wholesale Price Index (WPI) stood at 1.7 per cent in 2016-17 compared to (-)
3.7 per cent in 2015-16 and 1.2 per cent in 2014-15. WPI based inflation for
FY 2017-18 (Apr-Dec) stood at 2.9 per cent.

Q.6. Ans :D : The Price Stabilization Fund (PSF) was set up in 2014-15 under
the Department of Agriculture, Cooperation & Famers Welfare (DAC&FW) to
help regulate the price volatility of important Agri-horticultural commodities
like onion, potatoes and pulses were also added subsequently. The PSF scheme
was transferred from DAC&FW to the Department of Consumer Affairs (DOCA)
with effect from 1st April 2016.
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The scheme provides for maintaining a strategic buffer of aforementioned
commodities for subsequent calibrated release to moderate price volatility and
discourages hoarding and unscrupulous speculation. For building such stock,
the scheme promotes direct purchase from farmers/farmers’ association at
farm gate/Mandi. The PSF is utilized for granting interest-free advance of
working capital to Central Agencies, State/UT Governments/Agencies to
undertake market intervention operations. Apart from domestic procurement
from farmers/wholesale mandis, the import may also be undertaken with
support from the Fund.

Q.7. Ans : B :

Q.8. Ans : C: With growing rural to urban migration by men, there is

‘feminisation’ of agriculture sector, with increasing number of women in
multiple roles as cultivators, entrepreneurs, and labourers. As per Census
2011, out of total female main workers, 55 percent were agricultural labourers
and 24 percent were cultivators. However, only 12.8 percent of the operational
holdings were owned by women, which reflect the gender disparity in
ownership of land holdings in agriculture. Moreover, there is a concentration of
operational holdings (25.7 percent) by women in the marginal and small
holdings categories. Against this backdrop, the Economic Survey 2017-18
suggested that women farmers should have enhanced access to resources like
land, water, credit, technology and training.

Q.9. Ans :C : Reviving manufacturing and making the sector internationally

competitive have been the twin goals of the Make in India program.

Q.10. Ans :D

Net services receipts increased by 14.6 per cent on a Year over year (y-o-y)
basis during first half (H1) of 2017-18, primarily on account of the rise in net
earnings from travel and telecommunications, computer &
informationservices. Net travel receipts more than doubled, as foreign
tourist arrivals increased significantly during H1 of 2017-18. Notwithstanding
uncertainties in the Indian IT industry from tougher visa policies in some
countries, software exports recorded a growth of 2.3 per cent in H1 of 2017-
18. Private transfer receipts, mainly representing remittances by Indians
employed overseas, increased by 10.0 per cent to US$ 33.5 billion in H1
of 2017-18 over the corresponding period of the previous year.

Q.11. Ans : D :

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 • Statement 1 is correct: Climate change related increased intensity and
frequency of extreme events like droughts, floods, storms etc will impact
crop production adversely.
• Statement 2 is correct: Climate change results in increase in CO2
concentration in oceans leading to ocean acidification. Seafood is a large
part of many people's diets around the world. And many marine species
can't survive in the more acidic environment, for e.g. planktons which
form the basis of food chain.
• Statement 3 is correct: Climate change is expected to make water
resources scarcer and encourage weeds and pests. Increased
temperatures provide a better breeding ground for many pests. Moreover,
as climates "migrate", insects and fungi are moving toward the poles too
affecting crops in temperate regions.

Q.12.Ans : C :RBI conducts quarterly 'inflation expectation survey' of

households.

Q.13.Ans: C

Clean Ganga Fund (CGF) will have voluntary contributions from Indian
residents and Non-Resident Indian (NRIs) / Person of Indian Origin (PIO) and
others. No cess is imposed for this purpose. Hence,statement 1 is not
correct.

The Fund will have the objective of contributing to the national effort of
cleaning of the river Ganga. Domestic donors to the Fund are eligible for tax
benefits. The Fund is managed by a Trust, headed by Finance Minister. The
secretariat of the Trust will be set up in Ministry of Water Resources, River
Development and Ganga Rejuvenation under the Mission Director, Clean
Ganga. Hence, statement 3 iscorrect.

The following broad activities will be financed from the Fund:

• Activities outlined under the 'NamamiGange' programme for cleaning of

river Ganga. Hence, statement 2 is correct.
• Control of non-point pollution from agricultural runoff, human
defecation, cattle wallowing, etc.
• Setting up of waste treatment and disposal plants along the river around
the cities.
• Conservation of the biotic diversity of the river.
• Community based activities to reduce polluting human interface with the
river.
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 • Development of public amenities including activities such as Ghat
redevelopment.
• Research and Development and innovative projects.
• Research and Development projects and innovative projects for new
technology and processes for cleaning the river.
• Independent oversight through intensive monitoring and real time
reporting.
• Any other activity as approved by the Trust.
The following broad activities will be financed from the Fund:

• Activities outlined under the 'NamamiGange' programme for cleaning of

river Ganga.
• Control of non-point pollution from agricultural runoff, human
defecation, cattle wallowing, etc.
• Setting up of waste treatment and disposal plants along the river around
the cities.
• Conservation of the biotic diversity of the river.
• Community based activities to reduce polluting human interface with the
river.
• Development of public amenities including activities such as Ghat
redevelopment.
• Research and Development and innovative projects.
• Research and Development projects and innovative projects for new
technology and processes for cleaning the river.
• Independent oversight through intensive monitoring and real time
reporting.
• Any other activity as approved by the Trust.

Q.14. Ans: C

RBI keeps the repo rate high or increases it when the inflation in the economy
increases. When "inflation expectation" of the people is high, i.e. they are
expecting that in future inflation will increase, then such a behaviour of the
people ultimately leads to higher inflation in the economy due to which RBI
increases the repo rate. So, both the statements are true.

Q.15.Ans :A

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When government offers high rate on its own savings scheme then banks are
apprehensive of reducing their deposit rates as it will lead to people depositing
money in government savings schemes rather than in banks. When the banks
are not able to reduce their deposit rate they do not reduce the lending rate
also as it will squeeze/reduce their profits. It hinders in monetary policy
transmission and benefits mostly rich people.

Q.16. Ans :A

The government has up-scaled the target of renewable energy capacity to

175GW by the year 2022.

This includes:

• 100 GW from solar power

• 60 GW from wind power
• 10 GW from biomass power and
• 5 GW from small hydro power

Q.17.Ans : B

Q.18.Ans:D

Distributed/decentralized renewable power projects using wind energy,

biomass energy, and hydro power and hybrid systems are being established in
the country to meet the energy requirements of isolated communities and areas
which are not likely to be electrified in near future. Off-grid Renewable Energy/
Power can be generated using the following:

• Biomass based heat and power projects and industrial waste to-energy
projects for meeting captive needs
• Biomass gasifiersfor rural and industrial energy applications
• Watermills/micro hydro projects – for meeting electricity requirement
of remote villages
• Small Wind Energy & Hybrid Systems - for mechanical and electrical
applications, mainly where grid electricity is not available.
• Solar PV Roof-top Systems for abatement of diesel for power generation
in urban areas
The Ministry of New and Renewable energy is running a program with main
objectives of: supporting R&D to make such systems more reliable and cost
effective, demonstration, field testing, strengthening manufacturing base.

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Q.19.Ans: D

Q.20.Ans : B

• To step up investments in research and related infrastructure in premier

educational institutions, including health institutions, Finance Minister
in his Budget Speech for 2018-19 proposed to launch a major initiative
named ‘‘Revitalising Infrastructure and Systems in Education (RISE) by
2022’’ with a total investment of '1,00,000 crore in next four years.
• Higher Education Financing Agency (HEFA) would be suitably structured
for funding this initiative.
Q.21. Ans : C

Q.22. Ans : B

Last year Economic Survey had estimated that India’s inter-state trade in
goods was between 30 and 50 percent of GDP, a relatively high number
compared to other countries. GST data suggests that India’s internal trade in
goods and services (excludes non-GST goods and services) is actually even
higher: about 60 percent of GDP. Hence, statement 1 is not correct.

The five largest exporting states are Maharashtra, Gujarat, Haryana, Tamil
Nadu and Karnataka; the five largest importing states are Maharashtra, Tamil
Nadu, Uttar Pradesh, Karnataka and Gujarat. Hence,statement 2 is correct.

Q.23. Ans : D

Q.24. Ans : D

Q.25. Ans : A

A phenomenon of son meta-preference is being observed in the Indian society

in which parents are adopting fertility "stopping rules". It is having children
until the desired number of sons are born. This meta-preference leads
naturally to the notional category of "unwanted" girls which is estimated to be
over 21 million.

Q.26. Ans : B

Q.27. Ans : A

• Insurance penetration is defined as the ratio of premium underwritten in

a given year to the gross domestic product (GDP). The Insurance
penetration which was 2.71 per cent in 2001, increased to 3.49 per cent

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 in 2016 (Life 2.72 per cent and General 0.77 per cent). Hence,
statement 1 is correct andstatement 2 is not correct.
• Insurance density is defined as the ratio of premium underwritten in a
given year to the total population. The insurance density in India, which
was US$ 11.5 in 2001, has increased to US$ 59.7 in 2016 (Life 46.5 and
General 13.2).
Q.28. Ans :A

As per the amendment done in the Insolvency and Bankruptcy Code (IBC) in
November 2017,

Wilful Defaulters cannot bid for the companies put up for sale during the
resolution process. It also prohibits from bidding any borrower (or promoter)
whose account has been identified as an NPA for over a year and has not
repaid the dues. But if the borrower promoter has made payment of all overdue
amounts with interest and charges, then he can bid (submit a resolution plan)
for the company.

Q.29. Ans : A

As per the First Advance estimates of national income 2017-18 released by

Central Statistics Offce (CSO), services sector growth (GVA at constant (2011-
12) basic prices) is expected to be 8.3 per cent during 2017-18, higher than the
growth of 7.7 per cent in 2016-17.

The growth in trade, hotels, transport, communication and services related to

broadcasting category is expected to be 8.7 per cent during 2017-18 as
compared to 7.8 percent during 2016-17. Hence,statement 2 is not correct
as the sector has witnessed positive growth consecutively and there has been
an increase in the foreign tourist arrival in India.

The ‘public administration, defence& other services’ category registered a

growth of 11.3 per cent in 2016-17 as against 6.9 per cent in 2015-16, owing
to higher payments of wages and salaries to government staff due to the
implementation of recommendations of Seventh Pay Commission. Hence,
statement 1 is correct.

Q.30. Ans : D

"Demographic Dividend" is the dividend/benefit that a country derive because

of the demographic change and it is measured in terms of additional Per Capita
Income Growth.

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Q.31.Ans : A

India has the highest trade deficit with China. Its share in India’s total trade
deficit increased from 20.3 per cent in 2012-13 to 47.1 per cent in 2016-17
and 43.2 per cent in 2017-18 (April-September). India’s major items of imports
from China are telephone sets including mobiles, automatic data processing
machines, diodes & other semi-conductor devices, electronic devices,
chemical fertilisers,etc. India’s major items of exports to China are cotton
yarn, copper, refined and copper alloys unwrought, PoL items, granite,
aluminium ores, other fixed vegetable fats & oils, cyclic hydrocarbons, cotton,
polymers and iron ore.

Q.32. Ans : D

• Statement 1 is not correct: The ratio of gross fixed capital formation to

GDP climbed from 26.5 percent in 2003, reached a peak of 35.6 percent
in 2007, and then slid back to 26.4 percent in 2017.
• Statement 2 is not correct: The ratio of domestic saving to GDP has
registered a similar evolution, rising from 29.2 percent in 2003 to a peak
of 38.3 percent in 2007, before falling back to 29 percent in 2016.

Q.33. Ans : C

The Producer Price Index (PPI) measures the average change in the prices of
goods and services, either as they leave the place of production called Output
PPI or as they enter the production process called Input PPI. Thus, the output
indices measure the average change in prices that producers receive for their
outputs while the input indices measure the average change in prices that
producers pay for their inputs. Thus option (c) is the correct answer. PPI
contrasts with other measures such as the Consumer Price Index (CPI) which
measures changes in prices from buyers or consumers perspective.

Q.34. Ans : A

The Economic Survey 2017-18 estimates a learning poverty headcount (LPC) as

well as a learning poverty gap (LPG). The LPC simply measures the number of
children who do not meet the basic learning benchmark, whereas the LPG
additionally takes into account how far each student is from the benchmark. In
other words, the LPG measures the gap between the basic learning benchmark
and the average scores of those students who did not meet the benchmark.

Q.35.Ans : D
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Q.36.Ans: A

Real estate and construction together, is the second largest employment

provider in the country, next only to agriculture. It employed over 40 million
workforce in 2013, and as per projections is slated to employ over 52 million
workforce by 2017, and 67 million workforce by 2022. This implies that it will
generate over 15 million jobs over the next five years, which will translate to
about three million jobs annually.

Q.37. Ans : B

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 • Improvement in ease of doing business such as tax reforms, labour
reforms, single window system etc attract foreign investors as they find it
easy to do business. Hence, statement 1 is correct.
• Many companies have had to curtail their investments because their
finances are stressed, as the investments they undertook during the
boom have not generated enough revenues to allow them to service the
debts that they have incurred. Resolving twin balance sheet problem will
help in releasing the stress on finances enabling companies to invest
more. Hence, statement 2 is correct.
• Anti-dumping duty is related to trade and has no direct impact on
investment. Hence, statement 3 is not correct.

Q.38.Ans: A

Q.39.Ans : D

• Farm mechanization and crop productivity has a direct correlation as

farm mechanization saves time and labour, reduces drudgery, cut down
production cost in the long run due to saving on time and labour,
reduces post-harvest losses due to improvement in processing and
transportation; and boosts crop output and farm income. Hence, all
statements are correct.
• According to Economic Survey 2017-18, use of improved implements has
potential to increase productivity up to 30 per cent and reduce the cost
of cultivation up to 20 per cent.
• At present, Indian farmers are adapting farm mechanization at a faster
rate in comparison to recent past.

Q.40. Ans : D

India spends more on defence research as compared to research over space

and atomic energy sectors combined together. Also, more funds are being spent
on agricultural research as compared to health research. Thus, the correct
order of sectoral expenditure of funds for conducting R&D is:

Defence> Space > Atomic Energy > Agriculture > Health

Q.41.Ans : D : A well-documented finding relates to the percentage of women

who work, which has indeed declined over time (from 36 percent of women

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being employed in 2005-06 to 24 percent of women being employed in 2015-
16).

• On the supply side, increased incomes of men allows Indian women

to withdraw from the labour force, thereby avoiding the stigma of
working; higher education levels of women also allow them to
pursueleisure and other non-work activities all of which reduce
female labour force participation.
• On the demand side, the structural transformation of Indian agriculture
due to farm mechanization results in a lower demand for female
agricultural labourers. Evidence also points to insufficient
availabilityof the types of jobs that women say they would like to
do—regular, part-time jobs which providesteady income and allow
women to reconcile household duties with work—and types of sectors
that draw in female workers. This, interacted with safety concerns and
social norms about household workand caring for children and
elders, militates against women’s mobility and participation in
paidwork. Finally, the sex ratio of last birth is biased against females
and is lower by 9.5 percentage points in 2015-16 in comparison to other
countries. And this has remained stagnant in the last decade.
• Hence, all the statements are correct.

Q.42.Ans : D

Finance Minister in his Budget Speech announced to develop and upgrade

existing 22,000 rural haats into Gramin Agricultural Markets (GrAMs) to take
care of the interests of more than 86% small and marginal farmers. These
GrAMs, electronically linked to e-NAM and exempted from regulations
ofAPMCs, will provide farmers facility to make direct sale to consumers and
bulk purchasers.

Moreover, an Agri-Market Infrastructure Fund with a corpus of Rs.2000

crorewill be setup for developing and upgrading agricultural marketing
infrastructure in the 22000 Grameen Agricultural Markets (GrAMs) and
585APMCs. So far 470 APMCs have been connected to e-NAM network and rest
will be connected by March, 2018. Hence, all the statements are correct.

Q.43. Ans : D : Among India’s trading partners, the top five countries with
which India has negative bilateral trade balance are China, Switzerland, Saudi

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Arabia, Iraq and South Korea while the top five countries with which it has
surplus trade balance are USA, UAE, Bangladesh, Nepal and UK. India has the
highest trade deficit with China. Its share in India’s total trade deficit increased
from 20.3 per cent in 2012-13 to 47.1 per cent in 2016-17 and 43.2 per cent in
2017-18.

Q.44.Ans : D

Cyber Physical Systems is an interdisciplinary field that deals with the

deployment of computer-based systems that do things in the physical world,
such as the self-driven cars to be produced by Google and Tesla.

Even smart grids (where electricity is optimally distributed on the basis of

calculations in real time by micro-processors) and aircraft navigation
systems qualify as ‘cyber physical systems.’ It was announced in the recent
budget that the Government will launch a mission on cyber physical systems
(CPS) that will help prepare for a new category of jobs.

Q.45. Ans : D

Composition scheme is a convenient way for the small taxpayers in order to

escape from too many GST formalities and pay the tax at a fixed rate based on
their business turnover. Hence statement 1 and 3are correct.

Under this scheme, a taxpayer will pay tax as a percentage of his/her turnover
during the financial year without the benefit of Input Tax Credit. The floor rate
of tax for CGST and SGST shall not be less than 1%. A taxpayer opting for
composition scheme will not collect any tax from his/her customers. When the
eligible taxpayer is opting for the Composition Scheme under GST, a taxpayer
has to file a summarized returns on a quarterly basis, instead of three monthly
returns (as is applicable for normal businesses).

Key Features

• Eligibility: Turnover must be below Rs. 1.5 crore

• Tax rate: Fixed tax rate on the total sales turnover
• Input Tax Credit: Not eligible for Input Tax Credit
• Place of supply: Applies only to the Inter-State supplies. Hence
statement 2 is correct.
• Return: No monthly filing, only Quarterly returns
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 • Billing: Issues Bill of Supply & not tax invoice
Q.46.Ans : A

In a historic tax reform, the goods and services tax was rolled out on 1st July,
2017, subsuming almost all major indirect taxes like Central Excise Duty,
Service Tax, VAT, CST, entertainment tax, Octroi, luxury tax, a large number of
cesses/ surcharges and various other state and central levies on goods and
services. Hence all the options are correct.

Q.47.Ans : B

• Statement 1 is not correct: Central Statistics Office (CSO) is

responsible for preparing IIP. National Statistics Office (NSO) consists of
CSO and NSSO. It comes under Ministry of Statistics and Planning.
• Statement 2 is correct: IIP is sectorally classified into three categories:
Mining, Manufacturing and Electricity. Manufacturing accounts for
77.6% of weight under IIP. Mining and Electricity account for 14.4% and
8% respectively.
• Statement 3 is not correct: The base year has been updated to 2011-
12 recently.

Q.48. Ans : C

Generally, higher expected return on an asset increases its price. This is one of
the factors behind the surge in the stock market. But, the price of an asset is
not solely determined by the expected return onthat asset. It is also
determined by the returns available on other assets.

The government’s campaign against illicit wealth over the past few years—
exemplified by demonetisation—has in effect imposed a tax on certain
activities/assets, specifically the holding of cash, property, or gold. Cash
transactions have been regulated; reporting requirements for the acquisition of
gold and property have been stiffened. In addition, rupee returns to holding
gold have plunged since mid-2016, turning negative since mid-2017.

So, apart from the expectations of high earnings growth, the surge in the stock
market is also due to lesser attractiveness of these other asset classes.

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Q.49.Ans : D

• Finance Minister in his Budget speech (2018-19) proposed that the

government will 'establish a dedicated Affordable Housing Fund (AHF) in
National Housing Bank. It will be funded from priority sector lending
shortfall and fully serviced bonds authorised by the Government of
India.' Hence, bothstatements are not correct.
• National Housing Bank Act is being amended to transfer its equity from
the Reserve Bank of India to the government, he added.
• In last year's Budget, the government had announced infrastructure
status to affordable housing.

Q.50.Ans : C

• PradhanMantriSahajBijliHarGharYojana –“Saubhagya” aims to provide

energy access to all by last mile connectivity and electricity connections
to all remaining un-electrified households in rural as well as urban areas
to achieve universal household electrification in the country.
• Under the scheme poor households would be provided electricity
connections free of cost. Other households would also be provided
electricity connections under the scheme on payment of Rs.500 only
which shall be recovered by the DISCOMs/Power Departments in ten
(10) instalments along with electricity bills.

Q.51.Ans :C

Gender Parity Index (GPI) measures progress towards gender parity in

education participation and/or learning opportunities available for girls in
relation to those available to boys. It is a valuable indicatorwhich reflects the
discrimination against girls in access to educational opportunities. In India, in
highereducation, gender disparities still prevail in enrolment for which
continuous efforts are being made bythe Government to improve net intake
rate for women in higher education. With consistent efforts bythe Government
through programmes like BetiPadhao, BetiBachao, the GPI has improved
substantiallyat the primary and secondary levels of enrolment. Therefore, this
index considers only educationparticipation and/or learning opportunities and
not takes in to account the political empowerment andhealth and survival.

Hence, option (C) is correct.

Q.52.Ans : D
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India’s current investment (saving) slowdown have never occurred in India’s
history–not during the balance-of-payments crises of 1991 nor during the
Asian Financial Crisis of the late 1990s. Theinvestment rate (Gross Capital
Formation (GCF) as a share of GDP) in the economy declined by nearly5.6
percentage points between 2011-12 and 2015-16.The major reduction
occurred in the year 2013-14, when investment rate declined by nearly 5
percentage points. Savings rate (Gross saving as a share of GDP) also declined
by two and half percentage points between 2011-12 and 201314. Major
reasons behind the current slowdown are:

1. The investment rate of public sector (including general government)

consistently declined from 2011-12 to 2014-15.
2. Decline in financial savings in bank deposits by households sector:
Financial savings by the households are held mainly in currency, bank
deposits, life insurance funds, provident and pension funds and of late in
the form of shares and debentures. Bank deposits accounted for about 50
per cent of the aggregate financial savings between 2011-12 and 2015-16.
There was a significant decline in the proportion of deployment of financial
savings in bank deposits and life insurance funds. The savings of
household sector as a ratio of GDP have declined from 23.6 per cent in
2011-12 to 19.2 per cent in 2015-16.
3. Decreased private investment in the economy is majorly due to twin-
balance sheet problem. Hence, option (d) is correct.

Q.53. Ans : A

Convergence is the process of lower middle income countries, such as India,

attempting to make the transition to middle income status. And late
convergence refers to those attempting to do so after the watershed event of the
global fnancial crisis (GFC). Hence, (a) is the correct answer.

Q.54.Ans : A

India is the world’s third largest diamond consumer, accounting for 8% of

the global market. It exports 95% of the total imported rough diamond, as
per statistics from the Gems and Jewellery ExportPromotion Council (GJEPC)
The world’s first diamond futures exchange Indian Commodity Exchange(ICEX)
has begun operations in India.

Q.55.Ans : D

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The current account deficit can be split into a manufacturing trade deficit, an
oil and gold deficit, a services deficit, and a remittances deficit. As shown in the
graph, oil deficit or the deficit caused in the current account due to imports of
crude oil and petroleum products, is the largest constituent of the current
account deficit of India. Hence, option (d) is correct.

The current account deficit widened in 2017-18 and is expected to average

about 1.5-2 percent of GDP for the year as a whole. In the first half of 2017-18,
the oil and gold balance has improved (smaller deficit of $47 billion) but this
has been offset by a higher trade deficit ($18 billion) and a reduced services
surplus ($37 billion), the latter two reflecting a deterioration in the economy’s
competitiveness. Despite these developments, the overall external position
remains solid. The current account deficit is well below the 3 percent of GDP
threshold beyond which vulnerability emerges.

Q.56.Ans : D

Both the statements are not correct.

Building tax, including property/house tax, are collected at the municipality

(ULG) and Gram Panchayat level. Land tax is assessed and collected by the
state government. Property taxes are the principal sources of direct tax revenue
at the third tier of government, apart from professional taxes

Q.57.Ans : A

Private investment in defence production has been opened up including

liberalizing foreign direct investment. The Government will take measures to
develop two defence industrial production corridors in the country. The
Government will also bring out an industry friendly Defence Production Policy
2018 to promote domestic production by public sector, private sector and
MSMEs.

Q.58.Ans : B : Statement 1 is not correct: As per Economic Survey 2017-18,

the share of Indian railways in freight movement has been declining over a
period of time primarily due to non-competitive tariff structure.

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• Statement 2 is correct: While the passenger fare had remained more or
less flat, the freight fare has increased sharply over the year.

Q.59.Ans : D

• All statements are correct.

• In the First combined Budget of Independent India, The Finance Minister
announced the creation of a non-lapsable "Rastriya Rail SanrakshaKosh"
(RRSK) totaling Rs.1,19,183 Crores, out of which Rs.1,11,683 Crores to be
funded by Ministry of Finance for safety improvement of Indian Railways.
The safety related works identified are related to track works, bridge
rehabilitation, safety works at level crossing, replacement and improvement
of signaling system, improvement and upgradation of rolling stock,
replacement of electrical assets and human resource development. The
fund will help Indian Railways to accomplish its zero-accident mission by
strengthening the safety measures on the rail network in a comprehensive
way. Hence, statements 1 and 2 are correct.
• 'Rashtriya Rail SanrakshaKosh' has been set up on the recommendations of
a high-level safety review committee under former chairman Atomic Energy
Commission Dr.Anil Kakodkar. Hence, statement 3 iscorrect.

Q.60. Ans: C

Introduced by the CBDT in 2009, safe harbour refers to the circumstances

under which income-tax authorities will accept the transfer price declared by
the assesseewithout any question or scrutiny. Under it, Indian units of
MNCs declaring minimum operational profits specified in the safe harbour
scheme—regarded by the I-T department as the industry standard for such
transactions among unrelated parties—will not be subject to rigorous
transfer pricing audits.

A new safe harbour regime has been notified for three years with effect from 1st
April, 2017 to reduce transfer pricing disputes, provide certainty to
taxpayers, align safe harbour margins with industrystandards and enlarge the
scope of safe harbour transactions. This regime reduces the requirement
ofoperational profits, as the earlier requirement had led to a subdued repsonse
from taxpayers, many ofwhich instead preferred to go for advance pricing
agreements.

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Q.61.Ans : C

Recently, Ministry for Finance launched the India’s first sentiment index
CriSidEx for micro and small enterprises (MSEs) which is developed jointly by
CRISIL & SIDBI. It is a composite index based on a diffusion index of 8
parameters and measures MSE business sentiment on a scale of 0 (extremely
negative) to 200 (extremely positive). The crucial benefit of CriSidEx is that its
readings will flag potential headwinds and changes in production cycles and
thus help improve market efficiencies. And by capturing the sentiment of
exporters and importers, it will also offer actionable indicators on foreign trade.

Hence, option (c) is correct.

Q.62.Ans : A

India has remained one of the major recipients of cross border remittances and
according to the World Bank (October 2017), India will remain a top remittance
recipient country in 2017, followed by China, the Philippines, and Mexico.
Hence, statement 1 is correct.

However, the private transfers (gross) inflows to India declined by 6.1 per cent
in 2015-16 and 6.5 per cent in 2016-17. This was due to constrained labour
market conditions in the source countries, particularly GCC (Gulf Cooperation
Council) countries, largely caused by the fall in international crude oil prices.
Hence, statement 2 is not correct.

Q.63. Ans: A

It is the tax paid on profit generated by an asset such as real estate, shares or
share-oriented products held for a particular time-frame. The definition of
Long-term Capital Gains, or LTCG, is different for various products.

Q.64. Ans: D

• The Inclusive Development Index (IDI) is an annual assessment of 103

countries’ economic performance that measures how countries perform on
eleven dimensions of economic progress in addition to GDP. It has 3
pillars: growth and development; inclusion and; intergenerational
equity. It is released by the World Economic Forum.
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• The 2018 Index has been divided into two parts. The first part covers 29
advanced economies and the second 74 emerging economies. India was
ranked at the 62nd position among emerging economies, much below
China’s 26th position and Pakistan’s 47th. Norway remains the world’s
most inclusive advanced economy, while Lithuania again tops the list of
emerging economies.
• The WEF has urged world leaders to urgently move to a new model of
inclusive growth and development, because reliance on GDP as a measure
of economic achievement is fuelling short-termismand inequality.
• Despite its low overall score, India is among the ten emerging economies
with ‘advancing’ trend.

Q.65.Ans : A

Statement 1 is not correct: PradhanMantriMatruVandanaYojana (PMMVY), a

centrally sponsored scheme is launched with the objective to provide partial
compensation for the wage loss in terms of cash incentives so that the woman
can take adequate rest before and after delivery of the first living child.

The cash incentive provided would lead to improved health seeking behavior
amongst the Pregnant Women and Lactating Mothers (PW&LM). Under
PMMVY, a cash incentive of ` 5000/- would be provided directly in the account
of Pregnant Women and Lactating Mothers (PW&LM) for first living child of the
family subject to their fulfilling specific conditions relating to Maternal and
Child Health.

Statement 2 is not correct: All Pregnant Women and Lactating Mothers, are
the targeted beneficiaries of the scheme except those who are in regular
employment with the Central Government or the State Governments or PSUs or
those who are in receipt of similar benefits under any law for the time being in
force.

Statement 3 is correct: The scheme would be implemented by Ministry of

Women and Child Development at the Central level while at the State/ UT level
the concerned State/ UT have the option to implement the scheme either
through Women and Child Development (WCD)/Social Welfare Department or
through Health &Family Welfare Department.

Q.66.Ans : C

To monitor improvement in children’s learning levels and to assess the health

of the government education system as a whole, the National Achievement
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Survey (NAS) has been periodically conducted since 2001. The recently
released survey was conducted for Classes III, V and VIII. Hence, statement 1
iscorrect.

National Achievement Survey is a large-scale assessment exercise designed to

determine educational standards across the country. NAS uses a
representative sample of students and must be carefully designed to fit the
group being assessed. NAS is not an examination. It checks the general health
of the education system: NAS doesn’t test individual students.

At the national level it is coordinated by the NCERT. Hence, statement 2 is

correct. The purpose of these assessments is to obtain an overall picture of
what students in specific classesknow and can do, and to use these findings to
identify gaps and diagnose areas that need improvement.This information can
then be used to impact policies and interventions for improving children’s
learningunder the SarvaShiskshaAbhiyan.

Q.67. Ans: D

Key initiatives taken to address climate change by the government include:

• As part of the mission on strategic knowledge on climate change, India has

established 8 Global Technology Watch Groups in the areas of Renewable
Energy Technology, Advance Coal Technology,Enhanced Energy Efficiency,
Green Forest, Sustainable Habitat, Water, Sustainable Agriculture
andManufacturing.
• The broad policy initiatives of the central government are supplemented by
actions at the subnational levels. 32 States and Union Territories have put
in place the State Action Plans on ClimateChange attempting to
mainstream climate change concerns in their planning process.
• National Adaptation Fund on Climate Change established in 2015 to
support concrete adaptation activities which are not covered under on-
going activities through the schemes of State and Central Government,
continues till 31st March 2020 with financial implication of ` 364 crore.
• India is one of the few countries where, despite ongoing development, forest
and tree cover has increased transforming country’s forests into a net sink
owing to national policies aimed at conservation and sustainable
management of forests. India’s growth in the forest cover has been in the
positive territory while that for Indonesia and Brazil, which are countries
with substantial forest cover, the growth has been in the negative territory
during the same period.

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• PradhanMantriKrishiSinchayeeYojanahas been formulated with the
vision of extending the coverage of irrigation and improving water use
efficiency.
• Second Phase of Science Express Climate Action Special train with the
aim to create awareness among various sections of society, especially
students, on the science of climate change, the observed and anticipated
impacts, and different possible responses as to how climate change can be
combated.
• Zero Effect, Zero Defect is a policy initiative to enhance energy
efficiency and resources efficiency in Medium & Small Industries.
• The National Mission for Clean Ganga seeks to rejuvenate the river along
its length of more than 2,500 km.
• Indian financial market also moved in the direction of greener actions. SEBI
issued the circular on the disclosure requirements for Issuance and Listing
of Green Debt Securities on 30th May, 2017. The utilisation of the
proceeds shall be verified by the report of an external auditor, to verify the
internal tracking method and the allocation of funds towards the project(s)
and/or asset(s), from the proceeds of Green Debt Securities.
• In the Union Budget 2017, government indicated to increase the coverage
under the PradhanMantriFasalBimaYojana (PMFBY) from 30 per cent to
40 per cent in 2017-18 and 50 per cent in2018-19.
• In February, 2017, India launched the world’s first interoperable Quick
Response (QR) code acceptance solution. It is a sticker pasted on the teller
counter wall of the merchant and can begenerated dynamically on
merchant itself, removing the need to even print. By providing the
BharatQR option, India is taking the right step in the direction of greener
and sustainable future.

Q.68.Ans : B

Good agricultural production coupled with regular price monitoring by the

Government help contain inflation, especially food inflation. Average food
inflation for the financial year 2017-18 (Apr- Dec) declined to a low of 1.2 per
cent and stood at 5.0 per cent in December, 2017. However, during the current
financial year, food inflation, the CPI based core inflation has remained above 4
per cent during the last four financial years. Following implementation of the
revised house rent allowance for central government employees based on the
recommendation of the 7th Central Pay Commission has added to the inflation.
Thus option (b) is the correct answer.

Under CRR a certain percentage of the total bank deposits have to be kept in
the current account with RBI which means banks do not have access to that

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much amount for any economic activity or commercial activity, thus an
increase in CRR is anti – inflationary in nature. Increase in population size
generally may lead to more distribution of wealth and money reducing the
supply of money in the market. However it may also create more demand and
cause increase in inflation. But it is considered less inflationary in effect when
compared to increase in house rent allowance.

Q.69. Ans : D

The Baltic Dry Index is a freight index and a good proxy for the robustness of
trade and shipping services. It is released by the London-based Baltic
Exchange that measures change in the cost of transporting various raw
materials.

It fell from a peak of 11,793 on 20 May 2008 to a low of 663 on 8 December

2008 and was in the red at 290 on 11 February 2016, improved since then and
was at 1,164 on 17 January 2018.

Q.70. Ans : D : All of the above

Q.71. Ans :C : For the successful development of country both the things are
required.

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Q.72. Ans : A : Kerala – The most literate state in India has declared in 2017
that Internet access as a basic right for every citizen just like food, education &
water states aim to provide internet connections free of cost to 20 lakh poor
families at subsidies rates.

Q.73. Ans : B : The increase in long term debt was primarily due to the
increase in foreign portfolio investment in the debt segment of domestic capital
market included under commercial borrowings. Short term debt grew by 5.4 %
primarily due to increase in the trade related credits. Share of Government
debt in in total debt increased to 21.6 %.

Q.74. Ans : D : The eight core industries grew by4.8 per cent as compared to 3
per cent in 2015-16. The production of Coal, Refinery Products,Fertilizers, Steel
and Electricity registered positivegrowth, with Steel registering a robust growth
of10.7 per cent (this can be attributed to the positivemeasures taken by the
Government such asimposition of Minimum Import Price (MIP),
antidumpingduty etc. on Steel imports in February2016). On the other hand,
Crude Oil, NaturalGas and Cement production registered negativegrowth.

Q.75. Ans : C : The Index of Eight Core Industries measuresthe performance of

eight core industries i.e. Coal,Crude Oil, Natural Gas, Petroleum Refinery
Products, Fertilizers, Steel, Cement and Electricity.In line with the base year
change in IIP, Departmentof Industrial Policy and Promotion, revised the
base year of Index of Eight Core Industries from2004-05 to 2011-12. The
industries included inthe eight core industries comprise about 40 per
cent weight in the IIP.

Q.76. Ans : D : The Government has recently announced bankrecapitalisation

to the tune of `2.11 lakh crore.The move is aimed at easing the balance sheets
ofthe public sector banks, conditional on cleaningup their balance sheets,
thereby helping banks toaccelerate the pace of credit disbursement.

Q.77. Ans : C : . WIPO is one of the 17 specialized agencies of UN. According

to the WIPO, India isthe 7th largest Patent Filing Office in the World.In 2015,
India registered 45,658 patents incomparison to China (1,101,864), USA
(589,410),Japan (318,721), Republic of Korea (213,694),and Germany (91,726).
However, India producesfewer patents per capita.

Q.78. Ans : D : Using the methodology of Sen (1990) andAnderson & Ray
(2010, 2012), the total stock aswell as the flow of “missing women” in India are

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updated. The stock of missing women as of 2014was nearly 63 million and
more than 2 millionwomen go missing across age groups every year(either due
to sex selective abortion, disease,neglect, or inadequate nutrition).

Q.79. Ans : C : India will remain a top remittance recipient country in 2017
followed by China, the phillipines and Mexico. Along with Saudi Arabia, the
number of Indian workers emigrating to United Arab Emirates also decreased.
Among the structural factors, tightening norms of hiring foreign workers in
USA, Labour market adjustment in GCC countries and rising anti immigration
sentiments in Many Source countries pose considerable down risk.

Q.80. Ans :Agriculture also matters for Economic reasons because it still
accounts for substantial part of GDP 16% and Employment 49%.

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