PRELIMS 2017 REVISION TEST 30

Solution: b

Fiscal capacity is related to capacity of the government to tax and spend. India’s fiscal capacity can be assessed through tax-GDP and spending-GDP ratios.

There is a strong relationship between a country’s fiscal capacity and the level of economic development. Overall tax to GDP ratio, overall expenditure to GDP and human capital expenditure to GDP are some of the indicators used to assess the overall quality of fiscal capacity. India’s case: Overall tax to GDP ratio is lower in India than OECD countries as well as its EME peers. India’s spending to GDP ratio is lowest among BRICS. The government has made limited progress in increasing its taxing and spending capacity. India’s tax-GDP ratio has increased by about 10 percentage points over the past six decades from 6 per cent in 1950s to about 17 per cent in FY2013. However, the progress is appreciable given that India is a young democracy. Other mature democracies like USA have taken many years for development of good fiscal capacity.

Solution: a

ISRO, Survey of India under directions of the Ministry of Urban Development (MoURD)are creating an urban GIS database with the help of satellite images and aerial photography.

It will be a geospatial thematic database for 152 towns .

For e.g. under its Disaster Management Programme, ISRO has provided the flood inundation maps using satellite data extensively during the recent floods of Tamil Nadu and Andhra Pradesh. Such information will be collated and consolidated in one integrated urban information system.

It will be a strategic move towards urban planning and infrastructure creation.

Solution: c

Option A: The actual rates in the four-slab structure will be 5%, 12%, 18% and 28%, as approved by the GST Council. Maximum rate has been capped at 40% by legislative route.

Option B: States will be permitted to levy any new tax as the taxation powers of the states have only been restricted and not abolished after the rollout of GST. The states need to use the legislative route if it wants to levy additional tax for e.g. on cinema.

Option C: Education, healthcare and non-AC rail travel will remain exempted from the GST tax regime. Luxury hotels, gambling, race club betting and cinema services will attract a tax rate of 28%.

Option D: From option A explanation it is clear that taxes will have to be changed by legislative route, either by the state or Centre.

Solution: a

Statement 1: Antarctica is a continent, and a protected pristine one where no nation has sovereignty.

Statement 2: Due to the polar location, both regions will experience this condition. So, 2 is wrong.

Statement 3: It is the Arctic ice cap that lies on sea. Antarctica lies on land as a continent with a long geological evolution created a variety of stones and mountain ranges.

Solution: c

The Oceanic Nino Index (ONI) is one of the primary indices used to monitor the El Nino-Southern Oscillation (ENSO). The ONI is calculated by averaging sea surface temperature anomalies in an area of the eastcentral equatorial Pacific Ocean, in the region (5S to 5N; 170W to 120W). Also, a 3-month time average (running mean) is calculated in order to better isolate variability closely related to the ENSO phenomenon.

Solution: b

This convention before 2003 led to widespread abuse of the system.

It led to very large size of the Council of Ministers. Besides, when no party had a clear majority, there was a temptation to win over the support of the members of the Parliament by giving them ministerial positions as there was no restriction on the number of the members of the Council of Ministers.

This was happening in many States also. Therefore, an amendment was made that the Council of Ministers shall not exceed 15 percent of total number of members of the House of People (or Assembly, in the case of the States).

Solution: b

To address interventions in combating micronutrient malnutrition in the country, a two day summit was co-hosted by the Food Safety and Standards Authority of India (FSSAI) in partnership with related central ministries/departments and development partners.

Food fortification or enrichment is the process of adding micronutrients i.e. essential trace elements and vitamins into the food. It is an integrated approach to prevent micronutrient deficiencies and complements other approaches to improve health and nutrition. Food fortification does not require changes in existing food habits and patterns nor individual compliance. It does not alter characteristics of food and is socio-culturally acceptable. It can be introduced quickly and can produce nutritional benefits and improve health of people in a short period of time. It also safe and cost effective. This enrichment process has proven as an effective strategy to meet the nutritional needs of a large number of people across various sections of the society, including the poor and underprivileged, pregnant women and young children.

Solution: a

Statement 2: This is done by the National Biodiversity Authority (NBA) and State Biodiversity authorities

Solution: c

Statement 1: Timeline was broadly as follows:

1905-1909: Movement confined to Bengal and launched as a protest movement

1909-1910: Countrywide spread of movement and launching of anti-colonical movement

1910-1911: Swadeshi movement merged with revolutionary terrorist movement of first phase and led to the foundation of numerous secret associations.

Statement 2: It was done in 1905 at a meeting held at the Calcutta Town hall. At this meeting, the famous Boycott resolution was passed.

Boycott was first suggested by Krishan Kumar Mitra in Sanjivani in 1905.

The boycott of British products was followed by the advocacy of Swadeshi and to buy Indian products only.

An important aspect of the swadeshi movement was the emphasis placed on self-reliance or atmasaki. Selfreliance meant assertion of national dignity, honour and self-confidence.

Solution: b

Smog is the most common example of air pollution that occurs in many cities throughout the world. There are two types of smog:

Classical smog occurs in cool humid climate. It is a mixture of smoke, fog and sulphur dioxide. Chemically it is a reducing mixture and so it is also called as reducing smog.

Statement 1: So, it talks about classical smog, not photochemical smog. Photochemical smog occurs in warm, dry and sunny climate.

Statement 2: The main components of the photochemical smog result from the action of sunlight on unsaturated hydrocarbons and nitrogen oxides produced by automobiles and factories.

Statement 3: Ozone is a common oxidizing agent found in photochemical smog. Another type of smog, “reducing smog”, has high concentrations of sulfur dioxide, which is a reducing agent.

It produces severe eye irritation and poor visibility

Solution: b

The system of E-visa has evolved over the last seven years. In 2010 India launched Tourist Visa on Arrival (TVOA) limited to nationals from five countries Japan, Singapore, Finland, Luxembourg and New Zealand.

A year later the government decided to extend the scheme to nationals to nationals from Cambodia, Laos Vietnam, the Philippines, Myanmar and Indonesia.

The conventional process of granting visas by Indian diplomatic missions, however, will not be discontinued.

Solution: a

A removal motion signed by 100 members (in the case of Lok Sabha) or 50 members (in thecase of Rajya Sabha) is to be given to the Speaker/Chairman.

The Speaker/Chairman may admit the motion or refuse to admit it.

If it is admitted, then the Speaker/Chairman is to constitute a three-member committee to investigate into the charges.

The procedure is same for a SC judge. So, 1 and 2 both are correct.

Statement 4: After the motion is passed by each House of Parliament by special majority, an address ispresented to the president for removal of the judge.

Finally, the president passes an order removing the judge.

Solution: a

Sultans like Muhammad bi Tughlaq and FirozTughlaq took efforts to enhance agricultural production by providingirrigational facilities and by providing takkavi loans. So, 1 is wrong.

They alsoencouraged the farmers to cultivate superior crop like wheat instead of barley. So, 2 is wrong.

Firoz encouraged the growth of horticulture. Muhammadbin Tughlaq created a separate agricultural department, DiwaniKohi.

Solution: d

In 1977, the sixth Lok Sabha expelled Mrs. Indira Gandhi from its membership and sentenced her to jail for a week for committing a contempt of House while she was Prime Minister. So, A is incorrect.

But, the seventh Lok Sabha rescinded the resolution expelling her by describing it as politically motivated.

A Prime Minister need not be the Leader of the Lok Sabha, but he is the Leader of the House where he is a member (for e.g. Manmohan Singh was leader of Rajya Sabha and its member). So, R is correct.

Solution: c

These institutions (for e.g. Manappuram Finance, Capital First and Shriram Transport Finance) perform banking like activities done by NBFCs, but are not regulated by RBI. They need not follow statutory limits like CRR, SLR etc. They operate only under certain guidelines issued by RBI/SEBI, IRDA etc.

Solution: d

Statement 1: It has not role in overseeing the commercial or the financial aspects of ISPs in India. So, 1 is incorrect.

Statement 3:  Overseeing the mergers of companies in India comes under the jurisdiction of the Competition Commission of India (CCI). So, 3 is also incorrect.

Solution: a

The force acting on a unit area of asurface is called pressure.

Option A: The total pressure exerted by a liquid column at its base is proportional to the height of the column.

Option B: If the width of the container increases, a) height of liquid column will reduce, and b) area of the base will increase. So, pressure will actually reduce.

Option C: Width of the liquid column contributes to the weight, not pressure, since pressure is calculated on “per unit area”. So, the increase in width is adjusted with the increase in area.

Solution: d

The NIEO was a set of proposals put forward during the 1970s by some developing countries through the United Nations Conference on Trade and Development to promote their interests by improving their terms of trade, increasing development assistance, developed-country tariff reductions, and other means.

It was meant to be a revision of the international economic system in favour of Third World countries, replacing the Bretton Woods system, which had benefited the leading states that had created it – especially the United States.

Solution: a

Finance Minister is the Governor and RBI Governor is the Alternate Governor.

The day-to-day management of the IMF is carried out by the Managing Director who is Chairman of the Board of Executive Directors.

Board of Executive Directors consists of 24 directors appointed/elected by member countries/group of countries – is the executive body of the IMF.

India is represented at the IMF by an Executive Director, who also represents three other countries in India’s constituency – Bangladesh, Sri Lanka and Bhutan.

Solution: c

Mixed economy is basically an economic system combining private and state enterprise.

It features characteristics of both capitalism and socialism. A mixed economic system protects private property and allows a level of economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve social aims.

Subsidies, targeted tax credits, fiscal stimulus and public-private partnerships are common examples of government intervention in mixed economies. These usually do not generate massive economic distortions, but instead are instruments to achieve specific goals.