Economics UPSC PYQ 2020

With reference to the international trade of India at present, which of the following statements is/are correct? 1. India’s merchandise exports are less than its merchandise imports. 2. India’s imports of iron and steel, chemicals, fertilisers and machinery have decreased in recent years. 3. India’s exports of services are more than its imports of services. 4. India suffers from an overall trade/current account deficit. Select the correct answer using the code given below:

What are the main constraints in transport and marketing of agricultural produce in India? <!--qid:MAINS_2020_GSIII_Q3-->

In the context of the Indian economy, non-financial debt includes which of the following? 1. Housing loans owed by households 2. Amounts outstanding on credit cards 3. Treasury bills Select the correct answer using the code given below:

In India, which of the following can be considered as public investment in agriculture? 1. Fixing Minimum Support Price for agricultural produce of all crops 2. Computerization of Primary Agricultural Credit Societies 3. Social Capital development 4. Free electricity supply to farmers 5. Waiver of agricultural loans by the banking system 6. Setting up of cold storage facilities by the governments Select the correct answer using the code given below:

Which of the following factors/policies were affecting the price of rice in India in the recent past? 1. Minimum Support Price 2. Government’s trading 3. Government’s stockpiling 4. Consumer subsidies Select the correct answer using the code given below:

Explain the meaning of investment in an economy in terms of capital formation. Discuss the factors to be considered while designing a concession agreement between a public entity and a private entity. <!--qid:MAINS_2020_GS-III_Q51-->

Suggest measures to improve water storage and irrigation system to make its judicious use under depleting scenario. <!--qid:MAINS_2020_GSIII_Q14-->

If another global financial crisis happens in the near future, which of the following actions/policies are most likely to give some immunity to India ?

What are the challenges and opportunities of food processing sector in the country? How can income of the farmers be substantially increased by encouraging food processing? <!--qid:MAINS_2020_GSIII_Q4-->

"Gold Tranche" (Reserve Tranche) refers to

With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristic?

With reference to chemical fertilizers in India, consider the following statements: 1. At present, the retail price of chemical fertilizers is market-driven and not administered by the Government. 2. Ammonia, which is an input of urea, is produced from natural gas. 3. Sulphur, which is a raw material for phosphoric acid fertilizer, is a by-product of oil refineries. Which of the statements given above is/are correct?

With reference to Trade-Related Investment Measures (TRIMS), which of the following statements is/are correct? 1. Quantitative restrictions on imports by foreign investors are prohibited. 2. They apply to investment measures related to trade in both goods and services. 3. They are not concerned with the regulation of foreign investment. Select the correct answer using the code given below:

The term ‘West Texas Intermediate’, sometimes found in news, refers to a grade of

Consider the following statements: 1. In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more credit in comparison to Scheduled Commercial Banks and Regional Rural Banks. 2. One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies. Which of the statements given above is/are correct?

Consider the following statements: 1. The value of Indo-Sri Lanka trade has consistently increased in the last decade. 2. “Textile and textile articles” constitute an important item of trade between India and Bangladesh. 3. In the last five years, Nepal has been the largest trading partner of India in South Asia. Which of the statements given above is/are correct?

Describe the benefits of deriving electric energy from sunlight in contrast to the conventional energy generation. What are the initiatives offered by our Government for this purpose? <!--qid:MAINS_2020_GSIII_Q16-->

If you withdraw 8 1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be

What are the major factors responsible for making rice-wheat system a success? In spite of this success how has this system become bane in India? <!--qid:MAINS_2020_GSIII_Q13-->

Along with the Budget, the Finance Minister also places other documents before the Parliament which include 'The Macro Economic Framework Statement'. The aforesaid document is presented because this is mandated by

Consider the following statements: 1. The weight of food items is higher in the Consumer Price Index (CPI) than in the Wholesale Price Index (WPI). 2. WPI does not capture changes in the prices of services, whereas CPI does. 3. The Reserve Bank of India has adopted WPI for its primary measure of inflation and for deciding key policy rates. Which of the statements given above is/are correct?

Under the ‘Kisan Credit Card’ scheme, for which of the following purposes can farmers avail of short-term credit support? 1. Working capital for maintenance of farm assets 2. Purchase of farm machinery, tractors and mini-tools 3. Consumption requirements of farm households 4. Post-harvest expenses 5. Construction of a house for the family and setting up of cold storage facilities in the village Select the correct answer using the code given below:

Consider the following statements : 1. In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India. 2. In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise. Which of the statements given above is/are correct ?

With reference to the Indian economy after the 1991 economic liberalization, consider the following statements: 1. Worker productivity (per worker at 2004-05 prices) increased in urban areas while it decreased in rural areas. 2. The percentage share of rural areas in the workforce steadily increased. 3. In rural areas, the growth in non-farm economy increased. 4. The growth rate in rural employment decreased. Which of the statements given above is/are correct?

Explain intra-generational and inter-generational issues of equity from the perspective of inclusive growth and sustainable development. <!--qid:MAINS_2020_GS-III_Q41-->

If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do? 1. Cut and optimize the Statutory Liquidity Ratio 2. Increase the Marginal Standing Facility Rate 3. Cut the Bank Rate and Repo Rate Select the correct answer using the code given below:

Explain the rationale behind the Goods and Services Tax (Compensation to States) Act of 2017. How has COVID-19 impacted the GST compensation fund and created new federal tensions? <!--qid:MAINS_2020_GS-III_Q52-->

How is science interwoven deeply with our lives? What are the striking changes in agriculture triggered off by the science-based technologies? <!--qid:MAINS_2020_GS-III_Q46-->

What is the importance of the term “Interest Coverage Ratio” of a firm in India? 1. It helps in understanding the present risk of a firm that a bank is going to give loan to. 2. It helps in evaluating the emerging risk of a firm that a bank is going to give loan to. 3. The higher a borrowing firm’s level of Interest Coverage Ratio, the worse is its ability to service its debt. Select the correct answer using the code given below:

Define potential GDP and explain its determinants. What are the factors that have been inhibiting India from realizing its potential GDP? <!--qid:MAINS_2020_GSIII_Q2-->

With reference to the Indian economy, consider the following statements : 1. ‘Commercial Paper’ is a short-term unsecured promissory note. 2. ‘Certificate of Deposit’ is a long-term instrument issued by the Reserve Bank of India to a corporation. 3. ‘Call Money’ is a short-term finance used for interbank transactions. 4. ‘Zero-Coupon Bonds’ are the interest bearing short-term bonds issued by the Scheduled Commercial Banks to corporations. Which of the statements given above is/are correct ?