Explore a comprehensive collection of UPSC Prelims Topic Wise Questions focusing on Indian Economy, specifically delving into Population, Poverty, and Unemployment. Designed to assist aspirants in their preparation for the Civil Services examination, these questions cover key aspects of these critical economic issues. From demographic trends to poverty alleviation strategies, and from employment patterns to socio-economic development initiatives, this resource provides a nuanced understanding of the interplay between population dynamics, poverty levels, and unemployment rates in India. Whether you’re a novice or a seasoned candidate, these meticulously curated questions offer invaluable insights and practice to enhance your grasp of these fundamental topics. Strengthen your knowledge base and exam readiness with this indispensable resource tailored for UPSC Prelims preparation.
Q1. Consider the following statements. (1999)
Regional disparities in India are high and have been rising in recent years because
1. there is persistent investment over time only in select locales.
2. some areas are agro-climatically less conducive to development.
3. some areas continue to face little or no agrarian transformation and the consequent lack of social and economic opportunities.
4. some areas have faced continuous political instability.
Which of the above statement(s) are correct?
(a) 1, 2 and 3
(b) 1, 2 and 4
(c) 1, 3 and 4
(d) 2, 3 and 4
Ans. (a)
Assertions (1), (2), and (3) hold true.
Disparities across regions in India are significant and have been increasing in recent years due to continual investment primarily in specific areas.
The main causes for this phenomenon stem from superior infrastructure, attractive incentives, and other amenities offered to industries by states such as Maharashtra and Gujarat. Conversely, there is sluggish economic growth in regions like Jharkhand and Odisha, despite their relative abundance of natural resources.
Certain areas face challenges due to less favorable agro-climatic conditions. In states like Bihar and Rajasthan, investment levels are low or negligible owing to their unfavorable circumstances.
Q2. The first Indian state to have its Human Development Report prepared and released by Amartya Kumar Sen in Delhi is (2000)
(a) West Bengal
(b) Kerala
(c) Madhya Pradesh
(d) Andhra Pradesh
Ans. (c)
The Madhya Pradesh Human Development Report (MPHDR), initiated and published by the Madhya Pradesh Government in 1995, marked the world’s inaugural sub-national human development report. Professor Amartya Sen launched the second edition of the MPHDR in 1999 in Delhi.
The Government of Madhya Pradesh compiles the MPHDR utilizing district-level data concerning individuals’ welfare and deprivation in terms of education, health, and livelihoods. This approach ensures a reliable and transparent documentation of human development within the state.
Q3. Indian Human Development Report does not give for each sample village (2000)
(a) Infrastructure and Amenities Index
(b) Education Related Index
(c) Health Related Index
(d) Unemployment Related Index
Ans. (d)
The Indian Human Development Report does not provide an Unemployment Related Index for individual sample villages. The Indian/National Human Development Report 2001 aimed to depict the overall state of human development in India. In addition to evaluating economic, educational, and health achievements, the report delved into the governance aspect concerning human development.
Q4. Under which one of the Ministries of Government of India does the Food and Nutrition Board work? (2005)
(a) Ministry of Agriculture
(b) Ministry of Health and Family Welfare
(c) Ministry of Women and Child Development.
(d) Ministry of Rural Development
Ans. (c)
The Food and Nutrition Board (FNB) operates under the jurisdiction of the Ministry of Women and Child Development and was established in 1964.
Initially affiliated with the Ministry of Food & Supply, the FNB was transferred to the Ministry of Women and Child Development in 1993, becoming an integral part of the ministry.
It consists of a central technical wing, four regional offices, and quality control laboratories situated in Delhi, Mumbai, Kolkata, and Chennai, alongside 43 Community Food & Nutrition Extension Units (CFNEUs) spanning 29 States/Union Territories.
Q5. Consider the following statements. (2009)
1. Infant Mortality Rate takes into account the death of infants within a month after birth.
2. Infant Mortality Rate is the number of infant deaths in a particular year per 100 live births during that year.
Which of the statement(s) given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans. (d)
Neither assertion (1) nor (2) is accurate.
As per the World Health Organization (WHO), the Infant Mortality Rate (IMR) signifies the likelihood of a child born in a particular year or timeframe dying before reaching the age of one, given the age-specific mortality rates of that period. IMR is quantified as the number of infant deaths per 1000 live births within the first year of life. The formula for calculating IMR is: IMR = (Total number of infant deaths / Total number of live births in that year) × 1000.
Q6. India is regarded as a country with ‘Demographic Dividend’. This is due to (2011)
(a) its high population in the age group below 15 years
(b) its high population in the age group of 15-64 years
(c) its high population in the age group above 65 years
(d) its high total population
Ans. (b)
India is recognized as a nation benefiting from the ‘Demographic Dividend’ due to the majority of its population falling within the age range of 15 to 64 years. Demographic dividend denotes the economic growth resulting from shifts in a country’s population age structure. Crucially, fostering and enhancing the capabilities of young individuals necessitates safeguarding their rights and freedoms to fulfill their potential. Moreover, providing opportunities for education and gaining experience is essential for young people to thrive in an increasingly competitive global job market, which increasingly demands advanced skills, education, and technical proficiency.
Q7. Karl Marx explained the process of class struggle with the help of which one of the following theories? (2011)
(a) Empirical liberalism
(b) Existentialism
(c) Darwin’s theory of evolution
(d) Dialectical materialism
Ans. (d)
Karl Marx elucidated the concept of class struggle through the framework of dialectical materialism theory. Dialectical materialism, developed by Karl Marx and Friedrich Engels, is a philosophical perspective on reality. It asserts that reality has a material foundation that undergoes continual change through dialectical processes, with matter taking precedence over consciousness. Dialectical materialism provides a framework for comprehending reality, encompassing thoughts, emotions, and the material world. In essence, this methodology merges dialectics and materialism to analyze and understand reality.
Q8. Economic growth in country X will necessarily have to occur if (2013)
(a) there is technical progress in the world economy
(b) there is population growth in X
(c) there is capital formation in X
(d) the volume of trade grows in the world economy
Ans. (c)
Economic advancement in country X is contingent upon the occurrence of capital formation within X. Capital formation augments the productive capacity of the economy and fosters economic growth. Regarded as a pivotal element in the economic development of an economy, capital formation or accumulation holds significant importance. It serves as a crucial means to break the cycle of poverty in underdeveloped nations.
Q9. To obtain full benefits of demographic dividend, what should India do? (2013)
(a) Promoting skill development
(b) Introducing more social security schemes
(c) Reducing infant mortality rate
(d) Privatisation of higher education
Ans. (a)
To fully harness the benefits of the demographic dividend, India must prioritize the promotion of skill development. Demographic dividend refers to the advantageous scenario where a country’s working-age population outweighs its dependent population. Therefore, to capitalize on this demographic advantage, it’s imperative to ensure that the youthful demographic segment receives adequate job opportunities, necessitating investment in skill development. The initial stride for India entails bolstering investments in healthcare, which have not kept pace with the country’s economic growth. Public expenditure on healthcare has remained stagnant at approximately 1% of GDP. Consequently, it’s crucial to formulate policies that prioritize healthcare provision during the demographic dividend period. Additionally, India should strive to enhance female workforce participation in the economy. There’s an urgent need to create new skills and opportunities for women and girls to fully tap into their potential.
Q10. In the context of any country, which one of the following would be considered as part of its social capital? (2019)
(a) The proportion of literates in the population
(b) The stock of its buildings, other infrastructure and machines
(c) The size of population in the working age group
(d) The level of mutual trust and harmony in the society
Ans. (d)
Within any nation, the degree of mutual trust and cohesion within its society constitutes an integral component of its social capital. Social capital encompasses the elements of well-functioning social groups, comprising interpersonal connections, a collective sense of identity, shared understanding, communal norms, and the presence of mutual trust and harmony.
This reservoir of social capital empowers a collective to collaborate efficiently towards a unified objective or aspiration.
Q11. In a given year in India, official poverty lines are higher in some states than in others because (2019)
(a) poverty rates vary from state to state
(b) price levels vary from state to state
(c) gross state product varies from state to state
(d) quality of public distribution varies from state to state
Ans. (b)
Poverty levels fluctuate across states due to disparities in prices between states. The NITI Aayog gauges poverty nationwide through consumer expenditure surveys carried out by the NSSO (National Sample Survey Office). Consequently, noticeable price discrepancies emerge, leading to variations in poverty thresholds among states across India.
Q12. Match List I with List II and select answer using the codes given below the lists. (2020)
| List I | List II |
| A. Boom | 1. Business activities are at high level with increasing income, output and employment at macro level. |
| B. Recession | 2. Gradual fall of income, output and employment with business activity in a low gear. |
| C. Depression | 3. Unprecedented level of under employment and unemployment, drastic fall in income, output and employment. |
| D. Recovery | 4. Steady rise in the general level of prices, income, output and employment. |
Codes
A B C D
(a) 1 2 3 4
(b) 1 2 4 3
(c) 2 1 4 3
(d) 2 1 3 4
Ans. (a)
The accurate matching is A-1, B-2, C-3, D-4.
An economic boom, also referred to as an ‘Economic Boom’, corresponds to the expansion and peak phases of the business cycle. It’s alternatively labeled as an upswing, upturn, or growth period. During a boom, key economic indicators like Gross Domestic Product (GDP) experience an upward trajectory.
Recession denotes a slowdown or significant contraction in economic activities, often triggered by a notable decline in spending. It constitutes a period of widespread economic decline, typically accompanied by a downturn in the stock market.
Depression, within economics, signifies a severe downturn in the business cycle characterized by sharp and prolonged declines in economic activity, alongside elevated rates of unemployment, poverty, and homelessness.
Economic recovery represents the phase of the business cycle subsequent to the recession, marked by a sustained period of improving business activity. However, government policies may at times impede the economic recovery process.
Q13. Consider the investment in the following assets: (2023)
1. Brand recognition
2. Inventory
3. Intellectual property
4. Mailing list of clients
How many of the above is/are considered intangible
(a) Only one
(b) Only two
(c) Only three
(d) All four
Ans. (c)
Only three options are correct.
An intangible asset is an identifiable non-monetary asset, without physical substance, held for use in the production or supply of goods or services, for rental to others or for administrative purposes. Common examples of items encompassed by these broad headings are computer software, patents, copyrights, motion picture films, customer lists, mortgage servicing rights, fishing licenses, import quotas, franchises, customer or supplier relationships, customer loyalty, market share, and marketing rights. Goodwill is another example of an item of intangible nature which either arises on acquisition or is internally generated.
Tangible assets typically refer to physical assets or property owned by a company, such as equipment, buildings, and real estate.
Q14. Consider the following: (2023)
1. Demographic performance
2. Forest and ecology
3. Governance reforms
4. Stable government
5. Tax and fiscal efforts
For the horizontal tax devolution, the 15th Financa Commission used how many of the above as criteria other than population area and income distance?
(a) Only two
(b) Only three
(c) Only four
(d) All five
Ans: (b)
Among the given options, the 15th Finance Commission employed the following criteria, in addition to population, area, and income distance, for the horizontal distribution of taxes between states:
1. Population (2011 Census)
2. Demographic Performance
3. Income distance
4. Forests and Ecology
5. Tax Efforts
6. Area
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