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UPSC Economics PYQs 2013 | Vaidra | Vaidra
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Economics UPSC PYQ 2013

32 questions from the UPSC 2013 examination.

32 questions

1Mediummains10 marks
Government Budgeting

What is the meaning of the term 'tax expenditure'? Taking housing sector as an example, discuss how it influences the budgetary policies of the government. <!--qid:MAINS_2013_GS-III_Q3-->

2Easyprelims2 marks
National Income & Economic Growth

The national income of a country for a given period is equal to the

Atotal value of goods and services produced by the nationals
Bsum of total consumption and investment expenditure
Csum of personal income of all individuals
Dmoney value of final goods and services produced
3Mediumprelims2 marks
Fiscal Policy & Budget

Which one of the following is likely to be the most inflationary in its effect?

ARepayment of public debt
BBorrowing from the public to finance a budget deficit
CBorrowing from banks to finance a budget deficit
DCreating new money to finance a budget deficit
4Easyprelims2 marks
Inflation & Price Indices

A rise in general level of prices may be caused by 1. An increase in the money supply 2. A decrease in the aggregate level of output 3. An increase in the effective demand Select the correct answer using the codes given below.

A1 only
B1 and 2 only
C2 and 3 only
D1, 2 and 3
5Easyprelims2 marks
Inflation & Price Indices

Consider the following statements : 1. Inflation benefits the debtors. 2. Inflation benefits the bond-holders. Which of the statements given above is/are correct?

A1 only
B2 only
CBoth 1 and 2
DNeither 1 nor 2
6Mediummains10 marks
Issues related to direct and indirect farm subsidies and minimum support prices; Public Distribution System - objectives, functioning, limitations, revamping; issues of buffer stocks and food security; Technology missions; economics of animal-rearing

Food Security Bill is expected to eliminate hunger and malnutrition in India. Critically discuss various apprehensions in its effective implementation along with the concerns it has generated in WTO. <!--qid:MAINS_2013_GS-III_Q4-->

7Mediumprelims2 marks
Monetary Policy & Money Supply

Supply of money remaining the same when there is an increase in demand for money, there will be

Aa fall in the level of prices
Ban increase in the rate of interest
Ca decrease in the rate of interest
Dan increase in the level of income and employment
8Mediummains5 marks
Investment models

Discuss the impact of FDI entry into Multi-trade retail sector on supply chain management in commodity trade pattern of the economy. <!--qid:MAINS_2013_GSIII_Q9a-->

9Mediumprelims2 marks
Agriculture & Rural Development

With reference to the usefulness of the by-products of the sugar industry, which of the following statements is/are correct? 1. Bagasse can be used as biomass fuel for the generation of energy. 2. Molasses can be used as one of the feedstocks for the production of synthetic chemical fertilizers. 3. Molasses can be used for the production of ethanol. Select the correct answer using the codes given below:

A1 only
B2 and 3 only
C1 and 3 only
D1, 2 and 3
10Mediumprelims2 marks
Banking & Financial Sector

The Reserve Bank of India regulates the commercial banks in matters of 1. Liquidity of assets 2. Branch expansion 3. Merger of banks 4. Winding-up of banks Select the correct answer using the codes given below.

A1 and 4 only
B2, 3 and 4 only
C1, 2 and 3 only
D1, 2, 3 and 4
11Easyprelims2 marks
Fiscal Policy & Budget

In India, deficit financing is used for raising resources for

Aeconomic development
Bredemption of public debt
Cadjusting the balance of payments
Dreducing the foreign debt
12Mediumprelims2 marks
National Income & Economic Growth

Economic growth in country X will necessarily have to occur if

Athere is technical progress in the world economy
Bthere is population growth in X
Cthere is capital formation in X
Dthe volume of trade grows in the world economy
13Easyprelims2 marks
External Sector & Balance Of Payments

Which one of the following groups of items is included in India’s foreign-exchange reserves?

AForeign-currency assets, Special Drawing Rights (SDRs) and loans from foreign countries
BForeign-currency assets, gold holdings of the RBI and SDRs
CForeign-currency assets, loans from the World Bank and SDRs
DForeign-currency assets, gold holdings of the RBI and loans from the World Bank
14Mediumprelims2 marks
Agriculture & Rural Development

Which of the following grants/grant direct credit assistance to rural households? 1. Regional Rural Banks 2. National Bank for Agriculture and Rural Development 3. Land Development Banks Select the correct answer using the codes given below:

A1 and 2 only
B2 only
C1 and 3 only
D1, 2 and 3
15Easyprelims2 marks
Monetary Policy & Money Supply

In the context of Indian economy, ‘Open Market Operations’ refers to

Aborrowing by scheduled banks from the RBI
Blending by commercial banks to industry and trade
Cpurchase and sale of government securities by the RBI
DNone of the above
16Easyprelims2 marks
Banking & Financial Sector

Priority Sector Lending by banks in India constitutes the lending to

Aagriculture
Bmicro and small enterprises
Cweaker sections
DAll of the above
17Mediummains10 marks
Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

Write a note on India's green energy corridor to alleviate the problem of conventional energy. <!--qid:MAINS_2013_GS-III_Q11-->

18Mediumprelims2 marks
Human Development, Poverty & Employment Schemes

To obtain full benefits of demographic dividend, what should India do?

APromoting skill development
BIntroducing more social-security schemes
CReducing infant mortality rate
DPrivatization of higher education
19Mediummains10 marks
Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth

Examine the impact of liberalization on companies owned by Indians. Are they competing with the MNCs satisfactorily? Discuss. <!--qid:MAINS_2013_GS-III_Q7-->

20Mediumprelims2 marks
Monetary Policy & Money Supply

Consider the following liquid assets: 1. Demand deposits with the banks 2. Time deposits with the banks 3. Savings deposits with the banks 4. Currency The correct sequence of these assets in the decreasing order of liquidity is

A1–4–3–2
B4–3–2–1
C2–3–1–4
D4–1–3–2
21Easyprelims2 marks
Human Development, Poverty & Employment Schemes

Disguised unemployment generally means

Alarge number of people remain unemployed
Balternative employment is not available
Cmarginal productivity of labour is zero
Dproductivity of workers is low
22Mediummains10 marks
Government Budgeting

Discuss the rationale for introducing Goods and Services Tax (GST) in India. Bring out critically the reasons for the delay in roll out for its regime. <!--qid:MAINS_2013_GS-III_Q10-->

23Mediummains10 marks
Issues related to direct and indirect farm subsidies and minimum support prices; Public Distribution System - objectives, functioning, limitations, revamping; issues of buffer stocks and food security; Technology missions; economics of animal-rearing

India needs to strengthen measures to promote the pink revolution in food industry for ensuring better nutrition and health. Critically elucidate the statement. <!--qid:MAINS_2013_GS-III_Q6-->

24Mediumprelims2 marks
External Sector & Balance Of Payments

Which of the following constitute Capital Account? 1. Foreign Loans 2. Foreign Direct Investment 3. Private Remittances 4. Portfolio Investment Select the correct answer using the codes given below.

A1, 2 and 3
B1, 2 and 4
C2, 3 and 4
D1, 3 and 4
25Mediummains10 marks
Inclusive growth and issues arising from it

With a consideration towards the strategy of inclusive growth, the new Companies Bill, 2013 has indirectly made CSR a mandatory obligation. Discuss the challenges expected in its implementation in right earnest. Also discuss other provisions in the Bill and their implications. <!--qid:MAINS_2013_GS-III_Q1-->

26Mediummains5 marks
Investment models

Though India allowed Foreign Direct Investment (FDI) in what is called multi-brand retail through the joint venture route in September 2012, the FDI, even after a year, has not picked up. Discuss the reasons. <!--qid:MAINS_2013_GSIII_Q9b-->

27Mediummains10 marks
Issues related to direct and indirect farm subsidies and minimum support prices; Public Distribution System - objectives, functioning, limitations, revamping; issues of buffer stocks and food security; Technology missions; economics of animal-rearing

What are the different types of agriculture subsidies given to farmers at the national and at state levels? Critically analyse the agricultural subsidy regime with reference to the distortions created by it. <!--qid:MAINS_2013_GS-III_Q5-->

28Easyprelims2 marks
External Sector & Balance Of Payments

The balance of payments of a country is a systematic record of

Aall import and export transactions of a country during a given period of time, normally a year
Bgoods exported from a country during a year
Ceconomic transaction between the government of one country to another
Dcapital movements from one country to another
29Mediummains10 marks
Government Budgeting

What were the reasons for the introduction of Fiscal Responsibility and Budget Management (FRBM) Act, 2003? Discuss critically its salient features and their effectiveness. <!--qid:MAINS_2013_GS-III_Q2-->

30Easyprelims2 marks
Monetary Policy & Money Supply

An increase in the Bank Rate generally indicates that the

Amarket rate of interest is likely to fall
BCentral Bank is no longer making loans to commercial banks
CCentral Bank is following an easy-money policy
DCentral Bank is following a tight-money policy
31Mediummains10 marks
Land reforms in India

Establish relationship between land reforms, agriculture productivity and elimination of poverty in the Indian economy. Discuss the difficulties in designing and implementation of agriculture-friendly land reforms in India. <!--qid:MAINS_2013_GS-III_Q8-->

32Mediummains10 marks
Investment models

Adoption of PPP model for infrastructure development of the country has not been free of criticism. Critically discuss pros and cons of the model. <!--qid:MAINS_2013_GS-III_Q12-->

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