test 15 extra questions --solutions- history

Insights Mock Tests 2015: Solutions Test - 15

http://www.insightsonindia.com INSIGHTS Page 1

1. Solution: a)

These are the constitutional instructions or recommendations to the State in legislative,

executive and administrative matters.

According to Article 36, the term State in Part IV has the same meaning as in Part III

dealing with Fundamental Rights. Therefore, it includes the legislative and executive organs

of the central and state governments, all local authorities and all other public authorities in

the country.

2. Solution: c)

The Directive Principles resemble the Instrument of Instructions enumerated in the

Government of India Act of 1935. In the words of Dr B R Ambedkar, the Directive

Principles are like the instrument of instructions, which were issued to the Governor-

General and to the Governors of the colonies of India by the British Government under the

Government of India Act of 1935. What is called Directive Principles is merely another name

for the instrument of instructions. The only difference is that they are instructions to the

legislature and the executive.

3. Solution: c)

The Directive Principles are non-justiciable in nature, that is, they are not legally enforceable

by the courts for their violation. Though non-justiciable in nature, they help the courts in

examining and determining the constitutional validity of a law. The Supreme Court has

ruled many a times that in determining the constitutionality of any law, if a court finds that

the law in question seeks to give effect to a Directive Principle, it may consider such law to

be reasonable in relation to Article 14 (equality before law) or Article 19 (six freedoms) and

thus save such law from unconstitutionality.

4. Solution: d)

Some of the Socialistic Principles are:

To promote equal justice and to provide free legal aid to the poor (Article 39 A).

To secure the right to work, to education and to public assistance in cases of

unemployment, old age, sickness and disablement (Article 41).

To make provision for just and humane conditions for work and maternity relief

(Article 42).

To secure a living wage, a decent standard of life and social and cultural

opportunities for all workers (Article 43).



To take steps to secure the participation of workers in the management of industries

(Article 43 A).

To raise the level of nutrition and the standard of living of people and to improve

public health (Article 47).

5. Solution: d)

Fundamental rights ensure opportunities for economic non-discrimination. For e.g. all

should be eligible for public employment etc.It does not ensure economic equity/

Universal adult franchise ensures political equality and not economic equity.

DPSP alone ensures that all should have the right to work; at living wages; income

inequality should be minimized; women should get equal wages for equal work as men do

etc.

The last option deals with the subject of local government and not with economic equity.

6. Solution: b)

http://en.wikipedia.org/wiki/Uniform_civil_code_of_India

http://www.thehindu.com/opinion/open-page/uniform-civil-code-will-it-work-in-

india/article6625409.ece

7. Solution: d)

The Constitution (Ninety Seventh Amendment) Act 2011 relating to the co-operatives is

aimed to encourage economic activities of cooperatives which in turn help progress of rural

India. It is expected to not only ensure autonomous and democratic functioning of

cooperatives, but also the accountability of the management to the members and other

stakeholders.

It makes Right to form cooperatives as a fundamental right.

Reservation of one seat for SC/ST and two seats for women on the board of every co-

operative society.

Cooperatives could set up agency which would oversee election.

Uniformity in the tenure of Cooperative Board of Directors.



Provisions for incorporation, regulation and winding up of co-operative societies

based on the principles of democratic process and specifying the maximum number

of directors as twenty-one.

Providing for a fixed term of five years from the date of election in respect of the

elected members of the board and its office bearers;

Providing for a maximum time limit of six months during which a board of directors

of co-operative society could be kept under suspension;

Providing for independent professional audit;

Providing for right of information to the members of the co-operative societies;

Empowering the State Governments to obtain periodic reports of activities and

accounts of co-operative societies; which have individuals as members from such

categories;

Providing for offences relating to co-operative societies and penalties in respect of

such offences.

8. Solution: d)

Though the Directive Principles are non-justiciable, the Constitution (Article 37) make it

clear that these principles are fundamental in the governance of the country and it shall be

the duty of the state to apply these principles in making laws. Thus, they impose a moral

obligation on the state authorities for their application, but the real force behind them is

political, that is, public opinion. As observed by Alladi Krishna Swamy Ayyar, no ministry

responsible to the people can afford lightheartedly to ignore the provisions in Part IV of the

Constitution. Similarly, Dr B R Ambedkar said in the Constituent Assembly that a

government which rests on popular vote can hardly ignore the Directive Principles while

shaping its policy. If any government ignores them, it will certainly have to answer for that

before the electorate at the election time.

9. Solution: d)

The Directive Principles, although confer no legal rights and creates no legal remedies, are

significant and useful in the following ways:

They are like an Instrument of Instructions or general recommendations addressed

to all authorities in the Indian Union. They remind them of the basic principles of the

new social and economic order, which the Constitution aims at building.

They have served as useful beacon-lights to the courts. They have helped the courts

in exercising their power of judicial review, that is, the power to determine the

constitutional validity of a law.



They form the dominating background to all State action, legislative or executive and

also a guide to the courts in some respects.

They amplify the Preamble, which solemnly resolves to secure to all citizens of India

justice, liberty, equality and fraternity.

10. Solution: b)

11. Solution: b)

As per the Swaran Singh Committee (that suggested inclusion of fundamental rights);

including duty to pay taxes should have been a fundamental duty, but it was not agreed

upon.

So as per the Direct taxation laws; income and other kinds of taxes are a legal obligation for

an Indian citizen as he uses public services, receives social and political security from the

state etc.

12. Solution: b)

According to Article 51 A, it shall be the duty of every citizen of India:

to abide by the Constitution and respect its ideals and institutions, the National Flag

and the National Anthem;



to cherish and follow the noble ideals that inspired the national struggle for freedom;

to uphold and protect the sovereignty, unity and integrity of India;

to defend the country and render national service when called upon to do so;

to promote harmony and the spirit of common brotherhood amongst all the people

of India transcending religious, linguistic and regional or sectional diversities and to

renounce practices derogatory to the dignity of women;

to value and preserve the rich heritage of the countrys composite culture;

to protect and improve the natural environment including forests, lakes, rivers and

wildlife and to have compassion for living creatures;

to develop scientific temper, humanism and the spirit of inquiry and reform;

to safeguard public property and to abjure violence;

to strive towards excellence in all spheres of individual and collective activity so that

the nation constantly rises to higher levels of endeavour and achievement; and

to provide opportunities for education to his child or ward between the age of six

and fourteen years. This duty was added by the 86th Constitutional Amendment

Act, 2002.

13. Solution: c)

Fundamental Duties help the courts in examining and determining the constitutional

validity of a law. In 1992, the Supreme Court ruled that in determining the constitutionality

of any law, if a court finds that the law in question seeks to give effect to a fundamental

duty, it may consider such law to be reasonable in relation to Article 14 (equality before

law) or Article 19 (six freedoms) and thus save such law from unconstitutionality.

They are enforceable by law. Hence, the Parliament can provide for the imposition of

appropriate penalty or punishment for failure to fulfil any of them.

14. Solution: b)

An amendment of the Constitution can be initiated only by the introduction of a bill for the

purpose in either House of Parliament and not in the state legislatures.

It is true that the proposal for amendment may come from any of the options mentioned, but

only after the executive clears it can it be put forth the Parliament. From here the formal

process starts.

15. Solution: d)

The bill can be introduced either by a minister or by a private member and does not require

prior permission of the president.



A private member here means a MP who does not belong to the ruling coalition.

Special days in the Parliament are reserved for Private member bills not constitutional

amendment bills.

16. Solution: d)

The bill must be passed in each House by a special majority, that is, a majority (that is, more

than 50 per cent) of the total membership of the House and a majority of two-thirds of the

members of the House present and voting.

In case of two-third of total membership approving the bill, the second condition

automatically gets fulfilled.

17. Solution: d)

After duly passed by both the Houses of Parliament and ratified by the state legislatures,

where necessary, the bill is presented to the president for assent.

The president must give his assent to the bill. He can neither withhold his assent to the bill

nor return the bill for reconsideration of the Parliament.

After the presidents assent, the bill becomes an Act (i.e., a constitutional amendment act)

and the Constitution stands amended in accordance with the terms of the Act.

18. Solution: a)

These matters include:

Admission or establishment of new states.

Formation of new states and alteration of areas, boundaries or names of existing

states.

Abolition or creation of legislative councils in states.

Second Scheduleemoluments, allowances, privileges and so on of the president,

the governors, the Speakers, judges, etc.

Quorum in Parliament.

Salaries and allowances of the members of Parliament.

Rules of procedure in Parliament.

Privileges of the Parliament, its members and its committees.

Use of English language in Parliament.

Number of puisne judges in the Supreme Court.

Conferment of more jurisdiction on the Supreme Court.

Use of official language.



Citizenshipacquisition and termination.

Elections to Parliament and state legislatures.

Delimitation of constituencies.

Union territories.

Fifth Scheduleadministration of scheduled areas and scheduled tribes.

Sixth Scheduleadministration of tribal areas.

19. Solution: d)

The following are part of the basic structure as has become clear from several rulings of

Supreme Court:

Supremacy of the Constitution

Sovereign, democratic and republican nature of the Indian polity

Secular character of the Constitution

Separation of powers between the legislature, the executive and the judiciary

Federal character of the Constitution

Unity and integrity of the nation

Welfare state (socio-economic justice)

Judicial review

Freedom and dignity of the individual

Parliamentary system

Rule of law

Harmony and balance between Fundamental Rights and Directive Principles

Principle of equality

Free and fair elections

Independence of Judiciary

Limited power of Parliament to amend the Constitution

Effective access to justice

Principle of reasonableness

Powers of the Supreme Court under Articles 32, 136, 141 and 142

20. Solution: d)

The ministers are collectively responsible to the Parliament in general and to the Lok Sabha

in particular (Article 75). They act as a team, and swim and sink together. The principle of

collective responsibility implies that the Lok Sabha (not Parliament) can remove the ministry

(i.e., council of ministers headed by the prime minister) from office by passing a vote of no

confidence.

21. Solution: a)



The Prime Minister plays the leadership role in this system of government. He is the leader

of council of ministers, leader of the Parliament and leader of the party in power. In these

capacities, he plays a significant and highly crucial role in the functioning of the

government.

Although all decisions are supposed to be taken based on consensus in the Council, he has

the final say over all the decisions of the Council of Ministers. To this effect, he can even

dismiss a few ministers who are causing frequent disagreement in the council.

22. Solution: a)

The lower house of the Parliament (Lok Sabha) can be dissolved by the President on

recommendation of the Prime Minister. In other words, the prime minister can advise the

President to dissolve the Lok Sabha before the expiry of its term and hold fresh elections.

This means that the executive enjoys the right to get the legislature dissolved in a

parliamentary system.

Similarily, the legislature can also pass no confidence motion against the executive and

dismiss it. With it, the Lok Sabha is dissolved if there is no possibility of forming an

alternative government.

Resignation of any minister will not end Lok Sabha only that of the Prime Minister (that

too when no other person is chosen as PM) will bring the Lok Sabha to dissolution.

23. Solution: a)

Yes, India lies entirely in the northern hemisphere.

Second statement is wrong, because it implies that Indias east west distance is greater

than its north-south distance, which is incorrect. India measures 3,214 km (1,997 mi) from

north to south and 2,933 km (1,822 mi) from east to west.

24. Solution: c)



25. Solution: b)

Tributaries of Ganga:

Tributaries

- left Ramganga, Gomti, Ghaghara,Gandaki, Burhi

Gandak, Koshi, Mahananda

- right Yamuna, Tamsa, Son, Punpun,Betwa, Chambal, Tons,

Ken, Sindh,Hindon, Sharda

Tributaries of Brahmaputra

- left Dibang River, Lohit

River,Dhansiri

River, Kalang



- right Kameng River, Manas

River,Raidak

River, Jaldhaka

River,Teesta

River, Subansiri

26. Solution: b)

http://nca.gov.in/nb_basin.htm

India 2015 (Page no. 4)

27. Solution: c)

The Western Himalayan region extends from Kashmir to Kumaon. Its temperate zone is rich

in forests of chir, pine, other conifers and broad-leaved temperate trees. Higher up, forests of

deodar, blue pine, spruce and silver fir occur. The alpine zone extends from the upper limit

of the temperate zone of about 4,750 metres or even higher. The characteristic trees of this

zone are high-level silver fir, silver birch and junipers. The eastern Himalayan region

extends from Sikkim eastwards and embraces Darjeeling, Kurseong and the adjacent tract.

The temperate zone has forests of oaks, laurels, maples, rhododendrons, alder and birch.

Many conifers, junipers and dwarf willows also occur here. The Assam region comprises the

Brahmaputra and the Surma valleys with evergreen forests, occasional thick clumps of

bamboos and tall grasses. The Indus plain region comprises the plains of Punjab, western

Rajasthan and northern Gujarat. It is dry and hot and supports natural vegetation. The

Ganga plain region covers the area which is alluvial plain and is under cultivation for wheat,

sugarcane and rice. Only small areas support forests of widely differing types. The Deccan

region comprises the entire tableland of the Indian Peninsula and supports vegetation of

various kinds from scrub jungles to mixed deciduous forests. The Malabar region covers the

excessively humid belt of mountain country parallel to the west coast of the Peninsula.

Besides being rich in forest vegetation, this region produces important commercial crops,

such as coconut, betel nut, pepper, coffee and tea, rubber and cashew nut. The Andaman

region abounds in evergreen, mangrove, beach and diluvia forests. The Himalayan region

extending from Kashmir to Arunachal Pradesh through Nepal, Sikkim, Bhutan, Meghalaya

and Nagaland and the Deccan Peninsula is rich in endemic flora, with a large number of

plants which are not found elsewhere.

28. Solution: d)

All are incorrect. Please refer Pages 8 and 9 of India 2015 for more information.



Census 2011 is 15th census since 1872

Overall sex ration increased by 7 points to 943.

Indias population growth decreased between 1911 and 21 - an exception.

Bihar is the thickly populated state in India according to census 2011.

29. Solution: d)

Apart from non-statutory instructions issued by the Government from time to time, display

of the National Flag is governed by the provisions of the Emblems and Names (Prevention

of Improper Use) Act, 1950 (No.12 of 1950) and the Prevention of Insults to National Honour

Act, 1971 (No. 69 of 1971). Flag Code of India, 2002 is an attempt to bring together all such

laws, conventions, practices and instructions for the guidance and benefit of all concerned.

For the sake of convenience, Flag Code of India, 2002, has been divided into three parts. Part

I of the Code contains general description of the National Flag. Part II of the Code is devoted

to the display of the National Flag by members of public, private organizations, educational

institutions, etc. Part III of the Code relates to display of the National Flag by Central and

State governments and their organisations and agencies.

30. Solution: a)

The emblem of India is an adaptation of the Lion Capital of Ashoka at Sarnath, preserved in

the Sarnath Museum in India. The actual Sarnath capital including four Asiatic lions

standing back to back - symbolizing power, courage, pride, and confidence - mounted on a

circular base.At the bottom it has 1 horse & a bull,at its centre it has a beautiful wheel

(Dharma chakra). The abacus is girded with a frieze of sculptures in high relief of an

elephant (of the east), a bull (of the west), a horse (of the south), and a lion (of the north),

separated by intervening wheels, over a lotus in full bloom, exemplifying the fountainhead

of life and creative inspiration. Carved out of a single block of polished sandstone, the

capital is crowned by the Wheel of the Law (Dharma Chakra). In the emblem adopted by

Madhav Sawhney in 1950 only three lions are visible, the fourth being hidden from view.

The wheel appears in relief in the centre of the abacus, with a bull on the right and a

galloping horse on the left, and outlines of Dharma Chakras on the extreme right and left.

The bell-shaped lotus beneath the abacus has been omitted.

31. Solution: b)

Vande Mataram was composed in Sanskrit. It was first sung at the 1896 session of the

Indian National Congress.



32. Solution: c)

33. Solution: a)

According to the Part-V, Article-75 of the Indian Constitution, the Council of Ministers are

collectively responsible to only to the Lok Sabha.

34. Solution: a)

The Right against Exploitation, contained in Articles 2324, lays down certain provisions to

prevent exploitation of the weaker sections of the society by individuals or the State. Article

23 provides prohibits human trafficking, making it an offence punishable by law, and also

prohibits forced labour or any act of compelling a person to work without wages where he

was legally entitled not to work or to receive remuneration for it. However, it permits the

State to impose compulsory service for public purposes, including conscription and

community service. The Bonded Labour system (Abolition) Act, 1976, has been enacted by

Parliament to give effect to this Article. Article 24 prohibits the employment of children

below the age of 14 years in factories, mines and other hazardous jobs. Parliament has

enacted the Child Labour (Prohibition and Regulation) Act, 1986, providing regulations for

the abolition of, and penalties for employing, child labour, as well as provisions for

rehabilitation of former child labourers.

Article 39 lays down certain principles of policy to be followed by the State, including

providing an adequate means of livelihood for all citizens, equal pay for equal work for men

and women, proper working conditions, reduction of the concentration of wealth and means

of production from the hands of a few, and distribution of community resources to

"subserve the common good".

Despite being non-justiciable, the Directive Principles act as a check on the State; theorised

as a yardstick in the hands of the electorate and the opposition to measure the performance



of a government at the time of an election. Article 37, while stating that the Directive

Principles are not enforceable in any court of law, declares them to be "fundamental to the

governance of the country" and imposes an obligation on the State to apply them in matters

of legislation.

35. Solution: c)

During an Emergency, the Central government becomes all powerful and the states go into

the total control of the Centre. It converts the federal structure into a unitary one without a

formal amendment of the Constitution. This kind of transformation of the political system

from federal during normal times to unitary during Emergency is a unique feature of the

Indian Constitution.

Since the state governments do exist even at the time of emergency, we can not call it single

government.

36. Solution: a)

Under Article 352, the President can declare a national emergency when the security of India

or a part of it is threatened by war or external aggression or armed rebellion. It may be noted

that the president can declare a national emergency even before the actual occurrence of war

or external aggression or armed rebellion, if he is satisfied that there is an imminent danger.

A proclamation of national emergency may be applicable to the entire country or only a part

of it. The 42nd Amendment Act of 1976 enabled the president to limit the operation of a

National Emergency to a specified part of India.

37. Solution: d)

The President can proclaim a national emergency only after receiving a written

recommendation from the cabinet. This means that the emergency can be declared only on

the concurrence of the cabinet and not merely on the advice of the prime minister. In 1975,

the then Prime Minister, Indira Gandhi advised the president to proclaim emergency

without consulting her cabinet.

The cabinet was informed of the proclamation after it was made, as a fait accompli. The 44th

Amendment Act of 1978 introduced this safeguard to eliminate any possibility of the prime

minister alone taking a decision in this regard.

Approval of the Parliament is required later to decide whether to continue the emergency or

not.



38. Solution: b)

Identifying features of indicative planning may be summed up as under:

Every economy following the indicative planning were the mixed economies.

Unlike a centrally planned economy (countries following imperative planning)

indicative planning works through the market (price system) rather than replaces

it.15

Side by side setting numerical/quantitative targets (similar to the practice in the

imperative planning) a set of economic policies of indicative nature is also

announced by the economies to realise the plan targets.

The indicative nature of economic policies which are announced in such planning

basically encourage or discourage the private sector in its process of economic

decision making.

39. Solution: d)

7th schedule refers to the division of legislative subjects b/w Centre and states.

Economic and social planning is a concurrent subject. Also, while framing the Union, State

and Concurrent list, allocating subjects and other provisions, the Constitution vests power in

the Union to ensure co-ordinated development in essential fields of activity while preserving

the initiative and authority of the states in the spheres allotted to them.

Part IX refers to Panchayats which are responsible for local planning.

Sixth schedule gives elaborate guidelines on the political structure of the tribal areas; and

gives them the right to manage and redistribute their own resources and plan for economic

activities via several structures.

40. Solution: b)

http://en.wikipedia.org/wiki/NITI_Aayog

41. Solution: d)

Infrastructure, Including Rural Infrastructure targets under 12th FYP

Increase investment in infrastructure as a percentage of GDP to 9 per cent by the end

of Twelfth Five Year Plan.

Increase the Gross Irrigated Area from 90 million hectare to 103 million hectare by

the end of Twelfth Five Year Plan.



Provide electricity to all villages and reduce AT&C losses to 20 per cent by the end of

Twelfth Five Year Plan.

Connect all villages with all-weather roads by the end of Twelfth Five Year Plan.

Upgrade national and state highways to the minimum two-lane standard by the end

of Twelfth Five Year Plan.

Complete Eastern and Western Dedicated Freight Corridors by the end of Twelfth

Five Year Plan.

Increase rural tele-density to 70 per cent by the end of Twelfth Five Year Plan.

Ensure 50 per cent of rural population has access to 40 lpcd piped drinking water

supply, and 50 per cent gram panchayats achieve Nirmal Gram Status by the end of

Twelfth Five Year Plan.

42. Solution: c)

Except 5th option, all are fundmental duties

The Fundamental Duties noted in the constitution are as follows:

It shall be the duty of every citizen of India

to abide by the Constitution and respect its ideals and institutions, the National Flag and

the National Anthem;

to cherish and follow the noble ideals which inspired our national struggle for freedom;

to uphold and protect the sovereignty, unity and integrity of India;

to defend the country and render national service when called upon to do so;

to promote harmony and the spirit of common brotherhood amongst all the people of

India transcending religious, linguistic and regional or sectional diversities; to renounce

practices derogatory to the dignity of women;

to value and preserve the rich heritage of our composite culture;

to protect and improve the natural environment including forests, lakes, rivers and wild

life, and to have compassion for living creatures;

to develop the scientific temper, humanism and the spirit of inquiry and reform;

to safeguard public property and to abjure violence;

to strive towards excellence in all spheres of individual and collective activity so that the

nation constantly rises to higher levels of endeavour and achievement;

who is a parent or guardian to provide opportunities for education to his child or ward,

as the case may be, between the age of six and fourteen years

43. Solution: b)



Article 54 of the constitution says:

"The President shall be elected by the members of an electoral college consisting of -

(a) The elected members of both Houses of Parliament and

(b) The elected members of the Legislative Assemblies of the States (including National

Capital Territory of Delhi and the Union Territory of Pondicherry vide the Constitution 70th

amendment Act, 1992)."

Thus in the election of the President the citizens play no direct part and he is elected

indirectly by the representatives or the people, like the American President but no special

electoral college is elected, as in the case of America. Another point of difference that may be

noted is that the election of the President of India is by the system of proportional

representation, by the single transferable vote, as provided by Article 55(3) of the

Constitution, while the American President is elected by the straight vote system.

http://pib.nic.in/archieve/others/pr.html

http://www.thehindu.com/todays-paper/tp-in-school/how-is-indias-president-

elected/article3617995.ece

44. Solution: b)

The Vice President shall act as President in the absence of the President due to death,

resignation, impeachment, or other situations. The Vice President of India is also ex

officio Chairperson of the Rajya Sabha. He ceases to perform as Chairman of Rajya Sabha

while acting as the President.

Article 66 of the Indian Constitution states the manner of election of the Vice-President. The

Vice-President is elected indirectly by members of an electoral college consisting of the

members of both Houses of Parliament in accordance with the system ofProportional

Representation by means of the Single transferable vote and the voting is by secret ballot

45. Solution: d)

The Rajya Sabha meets in continuous sessions, and unlike the Lok Sabha, the lower house of

Parliament, is not subject to dissolution. The Rajya Sabha has equal footing in all areas of



legislation with Lok Sabha, except in the area of supply, where the Lok Sabha has overriding

powers.

Members sit for six-year terms, with one third of the members retiring every two years.

46. Solution: d)

Parliamentary Committees are of two kinds: Ad hoc Committees and the Standing

Committees. Ad hoc Committees are appointed for a specific purpose and they cease to exist

when they finish the task assigned to them and submit a report. The principal Ad

hoc Committees are the Select and Joint Committees on Bills. Others like the Railway

Convention Committee, the Committees on the Draft Five Year Plans and the Hindi

Equivalents Committee were appointed for specific purposes. Apart from the Ad

hoc Committees, each House of Parliament has Standing Committees like the Business

Advisory Committee, the Committee on Petitions, the Committee of Privileges and the Rules

Committee, etc.

Standing committee is a committee consisting of Members of Parliament. It is a permanent

and regular committee which is constituted from time to time according to the provisions of

an Act of Parliament or Rules of Procedure and Conduct of Business. The work done by

the Indian Parliament is not only voluminous but also of a complex nature, hence a good

deal of its work is carried out in these Parliamentary Committees.[1]

Both Houses of Parliament, Rajya Sabha and Lok Sabha, have similar Committee structures

with a few exceptions. Their appointment, terms of office, functions and procedures of

conducting business are broadly similar. These standing committees are elected or

appointed every year, or periodically by the Chairman of the Rajya Sabha or the Speaker of

the Lok Sabha, or as a result of consultation between them.

47. Solution: a)

Committee on Estimates

This Committee consists of 30 members who are elected by the Lok Sabha every year from

amongst its members. A Minister is not eligible for election to this Committee. The term of

the Committee is one year. The main function of the Committee on Estimates is to report

what economies, improvements in organisation, efficiency, or administrative reform,

consistent with the policy underlying the estimates may be effected and to suggest

alternative policies in order to bring about efficiency and economy in administration. From

time to time the Committee selects such of the estimates pertaining to a Ministry or a group

of Ministries or the statutory and other Government bodies as may seem fit to the

Committee. The Committee also examines matters of special interest which may arise or



come to light in the course of its work or which are specifically referred to it by the House

or the Speaker.

Committee on Public Undertakings

The Committee on Public Undertakings consists of 15 members elected by the Lok Sabha

and 7 members of Rajya Sabha are associated with it. A Minister is not eligible for election to

this Committee. The term of the Committee is one year.

The functions of the Committee on Public Undertakings are(a) to examine the reports and

accounts of Public Undertakings; (b) to examine the reports, if any, of the Comptroller and

Auditor General on the Public Undertakings; (c) to examine in the context of the autonomy

and efficiency of the Public Undertakings whether the affairs of the Public Undertakings are

being managed in accordance with sound business principles and prudent commercial

practices; and (d) such other functions vested in the Committee on Public Accounts and the

Committee on Estimates in relation to the Public Undertakings as are not covered by clauses

(a), (b) and (c) above and as may be allotted to the Committee by the Speaker from time to

time. The Committee does not, however, examine matters of major Government policy and

matters of day-to-day administration of the Undertakings.

Committee on Public Accounts

This Committee consists of 15 members elected by the Lok Sabha and 7 members of the

Rajya Sabha are associated with it. A Minister is not eligible for election to this Committee.

The term of the Committee is one year.

The main duty of the Committee is to ascertain whether the money granted by Parliament

has been spent by Government "within the scope of the Demand". The Appropriation

Accounts of the Government of India and the Audit Reports presented by the Comptroller

and Auditor General mainly form the basis for the examination of the Committee. Cases

involving losses, nugatory expenditure and financial irregularities come in for severe

criticism by the Committee. The Committee is not concerned with questions of policy. It is

concerned only with the execution of the policy laid down by Parliament and its results.

Business Advisory Committee (Lok Sabha)

The Business Advisory Committee of Lok Sabha consists of 15 members including the

Speaker who is the ex-officio Chairman. The members are nominated by the Speaker. Almost

all sections of the House are represented on the Committee as per the respective strength of

parties in the House. The function of the Committee is to recommend the time that should

be allotted for the discussion of such Government legislative and other business as the

Speaker, in consultation with the Leader of the House, may direct to be referred to the

Committee. The Committee, on its own initiative, may also recommend to the Government

to bring forward particular subjects for discussion in the House and recommend allocation

of time for such discussions. The decisions reached by the Committee are always unanimous



in character and representative of the collective view of the House. The Committee generally

meets at the beginning of each Session and thereafter as and when necessary.

48. Solution: d)

Functions assigned to the Ministry under the Government of India (Allocation of Business)

Rules, 1961 made by the President under Article 77(3) of the Constitution of India:-

Dates of summoning and prorogation of the two Houses of Parliament, Dissolution

of Lok Sabha, President's Address to Parliament.

Planning and Coordination of legislative and other official business in both Houses.

Allocation of Government time in Parliament for discussion of motions given notice

of by Members.

Liaison with Leaders and Whips of various Parties and Groups represented in

Parliament.

Lists of Members of Select and Joint Committees on Bills.

Appointment of Members of Parliament on Committees and other bodies set up by

Government.

Functioning of Consultative Committees of Members of Parliament for various

Ministries.

Implementation of assurances given by Ministers in Parliament.

Governments stand on Private Members Bills and Resolutions.

Secretarial assistance to the Cabinet Committee on Parliamentary Affairs.

Advice to Ministries on procedural and other Parliamentary matters.

Coordination of action by Ministries on recommendations of general application

made by Parliamentary Committees.

Officially sponsored visits of Members of Parliament to places of interest.

Matters connected with powers, privileges and immunities of Members of

Parliament.

Parliamentary Secretaries - functions.

Organisation of Youth Parliament Competitions in Schools/Colleges throughout the

country.

Organisation of All India Whips Conference.



Exchange of Government Sponsored Delegations of Members of Parliament with

other countries.

Determination of Policy and follow up action in regard to matters raised under rule

377 of the Rules of Procedure and Conduct of Business in Lok Sabha and by way of

Special Mentions in Rajya Sabha.

Manual for Handling Parliamentary work in Ministries/Departments.

The Salaries and Allowances of Officers of Parliament Act, 1953 (20 of 1953).

The Salary, Allowances and Pensions of Members of Parliament Act, 1954 (30 of

1954).

The Salary, and Allowances of Leaders of Opposition in Parliament Act, 1977 (33 of

1977).

The Leader and Chief Whips of Recognised Parties and Groups in Parliament

(Facilities) Act, 1998 (5 of 1999)

49. Solution: c)

The division of powers is in favour of the Centre and highly inequitable from the federal

angle. Firstly, the Union List contains more subjects than the State List. Secondly, the more

important subjects have been included in the Union List. Thirdly, the Centre has overriding

authority over the Concurrent List. Finally, the residuary powers have also been left with

the Centre, while in the US, they are vested in the states. Thus, the Constitution has made

the Centre very strong.

The Constitution stipulates three types of emergencies - national, state and financial. During

an emergency, the Central government becomes all powerful and the states go into the total

control of the Centre. It converts the federal structure into a unitary one without a formal

amendment of the Constitution. This kind of transformation is not found in any other

federation.

The governor is empowered to reserve certain types of bills passed by the state legislature

for the consideration of the President. The President can withhold his assent to such bills not

only in the first instance but also in the second instance. Thus, the President enjoys absolute

veto (and not suspensive veto) over state bills. But in US and Australia, the states are

autonomous within their fields and there is no provision for any such reservation.

50. Solution: b)



The power to make laws with respect to residuary subjects (i.e., the matters which are not

enumerated in any of the three lists) is vested in the Parliament. This residuary power of

legislation includes the power to levy residuary taxes.

From the above scheme, it is clear that the matters of national importance and the matters

which requires uniformity of legislation nationwide are included in the Union List. The

matters of regional and local importance and the matters which permits diversity of interest

are specified in the State List. The matters on which uniformity of legislation throughout the

country is desirable but not essential are enumerated in the concurrent list. Thus, it permits

diversity along with uniformity.

51. Solution: a)

The Constitution expressly secures the predominance of the Union List over the State List

and the Concurrent List and that of the Concurrent List over the State List. Thus, in case of

overlapping between the Union List and the State List, the former should prevail. In case of

overlapping between the Union List and the Concurrent List, it is again the former which

should prevail. Where there is a conflict between the Concurrent List and the State List, it is

the former that should prevail.

In case of a conflict between the Central law and the state law on a subject enumerated in the

Concurrent List, the Central law prevails over the state law. But, there is an exception. If the

state law has been reserved for the consideration of the president and has received his

assent, then the state law prevails in that state. But, it would still be competent for the

Parliament to override such a law by subsequently making a law on the same matter.

52. Solution: b)

If the Rajya Sabha declares that it is necessary in the national interest that Parliament should

make laws on a matter in the State List, then the Parliament becomes competent to make

laws on that matter. Such a resolution must be supported by two-thirds of the members

present and voting. The resolution remains in force for one year; it can be renewed any

number of times but not exceeding one year at a time. The laws cease to have effect on the

expiration of six months after the resolution has ceased to be in force.

When the legislatures of two or more states pass resolutions requesting the Parliament to

enact laws on a matter in the State List, then the Parliament can make laws for regulating

that matter. A law so enacted applies only to those states which have passed the resolutions.

However, any other state may adopt it afterwards by passing a resolution to that effect in its

legislature. Such a law can be amended or repealed only by the Parliament and not by the

legislatures of the concerned states.



53. Solution: a)

The Constitution empowers the Centre to exercise control over the states legislative matters

in the following ways:

(i) The governor can reserve certain types of bills passed by the state legislature for the

consideration of the President. The president enjoys absolute veto over them.

(ii) Bills on certain matters enumerated in the State List can be introduced in the state

legislature only with the previous sanction of the president. (For example, the bills imposing

restrictions on the freedom of trade and commerce).

(iii) The President can direct the states to reserve money bills and other financial bills passed

by the state legislature for his consideration during a financial emergency.

54. Solution: a)

The Constitution contains the following other provisions which enable the Centre to exercise

control over the state administration:

(i) Article 355 imposes two duties on the Centre: (a) to protect every state against external

aggression and internal disturbance; and (b) to ensure that the government of every state is

carried on in accordance with the provisions of the Constitution.

(ii) The governor of a state is appointed by the president. He holds office during the pleasure

of the President. In addition to the Constitutional head of the state, the governor acts as an

agent of the Centre in the state. He submits periodical reports to the Centre about the

administrative affairs of the state.

(iii) The state election commissioner, though appointed by the governor of the state, can be

removed only by the President.

55. Solution: b)

These include a number of advisory bodies and conferences held at the Central level.

The non-constitutional advisory bodies include the NITI AYOG, the National Development

Council, the National Integration Council, the Central Council of Health, the Central Council

of Local Government and Urban Development, the Zonal Councils, the North-Eastern

Council, the Central Council of Indian Medicine, Central Council of Homo-eopathy, the

Central Family Welfare Council, the Transport Development Council, the University Grants

Commission and so on.

The important conferences held either annually or otherwise to facilitate Centrestate

consultation on a wide range of matters are as follows: (i) The governors conference

(presided over by the President). (ii) The chief ministers conference (presided over by the



prime minister). (iii) The chief secretaries conference (presided over by the cabinet

secretary). (iv) The conference of inspector-general of police. (v) The chief justices

conference (presided over by the chief justice of India). (vi) The conference of vice-cancellors.

(vii) The home ministers conference (presided over by the Central home minister). (viii) The

law ministers conference (presided over by the Central law minister).

56. Solution: b)

Service Tax Levied by the Centre but Collected and Appropriated by the Centre and the

States (Article 268-A): Taxes on services are levied by the Centre. But, their proceeds are

collected as well as appropriated by both the Centre and the states. The principles of their

collection and appropriation are formulated by the Parliament.

Taxes Levied and Collected by the Centre but Assigned to the States (Article 269): The

following taxes fall under this category:

(i) Taxes on the sale or purchase of goods (other than newspapers) in the course of inter-state

trade or commerce.

(ii) Taxes on the consignment of goods in the course of inter-state trade or commerce

57. Solution: a)

The Centre The receipts from the following form the major sources of non-tax revenues of

the Centre: (i) posts and telegraphs; (ii) railways; (iii) banking; (iv) broadcasting (v) coinage

and currency; (vi) central public sector enterprises; and (vii) escheat and lapse.19

The States The receipts from the following form the major sources of non-tax revenues of the

states: (i) irrigation; (ii) forests; (iii) fisheries; (iv) state public sector enterprise; and (v)

escheat and lapse.

58. Solution: a)

Article 275 empowers the Parliament to make grants to the states which are in need of

financial assistance and not to every state. Also, different sums may be fixed for different

states. These sums are charged on the Consolidated Fund of India every year.

Apart from this general provision, the Constitution also provides for specific grants for

promoting the welfare of the scheduled tribes in a state or for raising the level of

administration of the scheduled areas in a state including the State of Assam.

The statutory grants under Article 275 (both general and specific) are given to the states on

the recommendation of the Finance Commission.



The Constitution also provided for a third type of grants-in-aid (other than Statutory and

Discretionary), but for a temporary period. Thus, a provision was made for grants in lieu of

export duties on jute and jute products to the States of Assam, Bihar, Orissa and West

Bengal. These grants were to be given for a period of ten years from the commencement of

the Constitution. These sums were charged on the Consolidated Fund of India and were

made to the states on the recommendation of the Finance Commission.

59. Solution: a)

To protect the interest of states in the financial matters, the Constitution lays down that the

following bills can be introduced in the Parliament only on the recommendation of the

President:

A bill which imposes or varies any tax or duty in which states are interested;

A bill which varies the meaning of the expression agricultural income as defined for

the purposes of the enactments relating to Indian income tax;

A bill which affects the principles on which moneys are or may be distributable to

states; and

A bill which imposes any surcharge on any specified tax or duty for the purpose of

the Centre.

60. Solution: b)

The Inter-State Water Disputes Act empowers the Central government to set up an ad hoc

tribunal for the adjudication of a dispute between two or more states in relation to the

waters of an inter-state river or river valley. The decision of the tribunal would be final and

binding on the parties to the dispute. Neither the Supreme Court nor any other court is to

have jurisdiction in respect of any water dispute which may be referred to such a tribunal

under this Act.

The need for an extra judicial machinery to settle inter-state water disputes is as follows:

The Supreme Court would indeed have jurisdiction to decide any dispute between states in

connection with water supplies, if legal rights or interests are concerned; but the experience

of most countries has shown that rules of law based upon the analogy of private proprietary

interests in water do not afford a satisfactory basis for settling disputes between the states

where the interests of the public at large in the proper use of water supplies are involved.

61. Solution: c)



The first National Tribal Festival Vanaj concluded this month - February 2015 in New

Delhi.

It was organised by the Ministry of Tribal Affairs.

Key facts

The aim of weeklong National Tribal Festival was to bridge the gaps of social divide

and promote tribal culture in India.

The purpose of the festival was to uplift the quality of tribal lives of the country in

order to conserve and promote their distinctive cultures by providing them national

platform.

More than 900 folk and tribal artists from states like Assam, Chhattisgarh, Gujarat,

Himachal Pradesh, Jharkhand, Kerala, Madhya Pradesh, Maharashtra, Nagaland,

Odisha, Rajasthan, Sikkim, Tamil Nadu and West Bengal participated in it.

Maiden edition of the festival showcased the rich diversity of Tribal culture, art,

painting, music, dance, tribal medicine, tribal food, and a special attraction- tribal

cuisine.

62. Solution: d)

It is duty imposed by government on imported products which have prices less than

their normal values or domestic price.

Usually countries initiate anti-dumping probes to check if domestic industry has

been hurt because of a surge in below-cost imports.

Anti-Dumping Duty is imposed under the multilateral WTO regime and vary from

product to product and from country to country.

In India, anti-dumping duty is recommended by the Union Ministry of Commerce,

while the Union Finance Ministry imposes it.

63. Solution: d)

India and Sri Lanka have signed an agreement on civil nuclear cooperation, Cultural

cooperation during Sri Lankas newly elected President Maithripala Sirisen four-day visit to

India.

Sri Lanka has signed first such bilateral agreement on civil nuclear cooperation.

Following agreements were signed between India and Sri Lanka



Agreement on Cooperation in the Peaceful Uses of Nuclear Energy- It will facilitate

the transfer and exchange of knowledge and expertise, resources in peaceful uses of

Nuclear energy between both nations. This agreement also includes capacity

building and training of personnel for nuclear security, radioactive waste

management and nuclear and radiological disaster mitigation and environmental

protection.

Programme of Cultural cooperation between both nations for years 2015-18 It

seeks to enhance cooperation in different fields like arts, visuals arts, cultural

documentation, archeology, handicrafts etc between both nations.

MoU on establishment of Nalanda University- It will enable Sri Lanka to

participate in Indias Nalanda University project.

Work Plan 2014-15 under MoU on Cooperation in the field of Agriculture- It will

facilitate bilateral cooperation in Agro Processing, Agricultural extension,

horticulture, agricultural machinery, training in farm mechanization, livestock

diseases, etc. between relevant institutes and organizations from both countries.

64. Solution: d)

Minimum Support Price (MSP) is a form of market intervention by the Government of India

to insure agricultural producers against any sharp fall in farm prices. The minimum support

prices are announced by the Government of India at the beginning of the sowing season for

certain crops on the basis of the recommendations of the Commission for Agricultural Costs

and Prices (CACP).

In formulating the recommendations in respect of the level of minimum support prices and

other non-price measures, the CACP takes into account a comprehensive view of the entire

structure of the economy of a particular commodity or group of commodities. Other Factors

include cost of production, changes in input prices, input-output price parity, trends in

market prices, demand and supply, inter-crop price parity, effect on industrial cost

structure, effect on cost of living, effect on general price level, international price situation,

parity between prices paid and prices received by the farmers and effect on issue prices and

implications for subsidy. The Commission makes use of both micro-level data and

aggregates at the level of district, state and the country

65. Solution: d)

The FCI has been constructing storage capacity for holding buffer and operational stocks of

food grains at nodal points in the country. The storage capacities available with FCI are

mainly used for storage of food grains and partly for other commodities and general

warehousing.



The buffer stocks are required to

1. Feed TPDS and other welfare schemes,

2. Ensure food security during the periods when production is short of normal demand

during bad agricultural years

3. Stabilize prices during period of production shortfall through open market sales.

66. Solution: a)

Import dependence was about 3 per cent during 1992-93. The production of oilseeds, though

it has increased in recent years (from 184.40 lakh tons in 2000-01 to 297.99 lakh tons in 2011-

12), it has not kept pace with the demand for edible oils in India. Imports have helped raise

the per capita availability of edible oils which has increased from 5.8 kg in 1992-93 increased

to 14.5 kg in 2010-11.

ii. One instrument for promoting future domestic production is calibration of the import

duty structure. Large imports of edible oils are primarily due to competitive prices of edible

oils in the international market and the import duty structure which has been sharply

reduced to near zero levels over time to protect consumers India has such a high market

share (in the world edible oil imports) that allows it to set some independent tariff policy

that can meet both goals better.

67. Solution: d)

The role of the agriculture market is to deliver agricultural produce from the farmer to the

consumer in the most efficient way. Agriculture markets are regulated in India through the

APMC Acts.

According to the provisions of the APMC Acts of the states, every APMC (Agricultural

Produce Marketing Committee) is authorised to collect market fees from the buyers/traders

in the prescribed manner on the sale of notified agricultural produce. The relatively high

incidence of commission charges on agricultural/horticultural produce renders their

marketing cost high, which is an undesirable outcome.

All this suggests that a single point market fee system is necessary for facilitating free

movement of produce, bringing price stabilisation, and reducing price differences between

the producer and consumer market segments. Another point to be highlighted is that the

cleaning, grading, and packaging of agricultural produce before sale by the farmers have not

been popularised by these market committees on a sufficient scale.

68. Solution: d)



The horticulture sector includes a wide range of crops, such as fruits, vegetables, roots and

tuber crops, flowers, aromatic and medicinal plants, spices, and plantation crops, which

facilitate diversification in agriculture. It has been recognised that growing horticulture

crops is now an ideal option to improve livelihood security, enhance employment

generation, attain food and nutritional security, and increase income through value

addition. Over the years, there have been noticeable achievements and significant

improvement in the production and productivity of various horticulture crops.

The NHM scheme was launched during the Tenth Plan for holistic development of the

horticulture sector, duly ensuring forward and backward linkages by adopting a cluster

approach, with the active participation of all the stakeholders. The supply of quality planting

material through establishment of nurseries and tissue culture units, production and

productivity improvement programmes through area expansion and rejuvenation,

technology promotion, technology dissemination, human resource development, creation of

infrastructure for post-harvest management and marketing in consonance with the

comparative advantages of each state/region and their diverse agro-climatic conditions are

the major programmes of the Mission.

69. Solution: d)

There are various major crop insurance schemes under implementation in the country:

(i) National Agricultural Insurance Scheme (NAIS): The NAIS is a government-sponsored

central-sector crop insurance scheme being implemented in the country since 1999-2000

season (the erstwhile Comprehensive Crop Insurance Scheme-CCIS of 1985 was merged into it)

with the objective of providing financial support to farmers in the event of failure of crops

as a result of natural calamities, pests, and diseases. The Agriculture Insurance Company of

India Ltd. (AICIL) is the implementing agency for the Scheme. At present, the scheme is

being implemented by 25 states and two UTs.

(ii) Modified NAIS (MNAIS): With the aim of further improving crop insurance schemes, the

MNAIS is under implementation on pilot basis in 50 districts in the country from rabi 2010-

11 season. Some of the major improvements made in the MNAIS are

Actuarial premium with subsidy in premium at different rates

All claims liability to be on the insurer

Unit area of insurance reduced to village panchayat level for major crops

Indemnity for prevented/sowing/planting risk and for post-harvest losses

due to cyclone

On account payment up to 25 per cent advance of likely claims as immediate

relief

More proficient basis for calculation of threshold yield, and

Allowing private sector insurers with adequate infrastructure

Other schemes too cover the aforementioned.



70. Solution: d)

It includes all those economic policies which intend to boost the aggregate demand in the

economy be it domestic or external. For the enhanced domestic demand, the focus has to

be on increasing the purchasing power of the masses which entails an emphasis on the

creation of the gainful and quality employment opportunities.

Cutting down CAD and fiscal deficit affect the level of demand and inflation in the macro-

economy.

71. Solution: a)

Several connotations and meanings of the term privatisation have developed. We may see

them as follows:

(i) Privatisation in its purest sense and lexically means de-nationalisation i.e. transfer of the

state ownership of the assets to the private sector to the tune of 100 per cent. Such bold

moves took place only once anywhere in the world without any political fallouts - in the

early 1980s of the UK under the Thatcher regime. This route of privatisation has been

avoided by almost all democratic systems. In the mid-1990s some west European nations

Italy, Spain and Francebesides the USA went for such moves.21 India never ventured into

any such privatisation move.

(ii) The sense in which privatisation has been used is the process of disinvestment all over

the world. This process includes selling of the shares of the state-owned enterprises to the

private sector. Disinvestment is de-nationalisation of less than 100 per cent ownership

transfer from the state to the private sector. If an asset has been sold out by the Government

to the tune of only 49 per cent the ownership remains with the state though it is considered

privatisation. If the sale of shares of the state-owned assets has been to the tune of 51 per

cent, the ownership is really transferred to the private sector even then it is termed as

privatisation.

(iii) The third and the last sense in which the term privatisation has been used around the

world, is very wide. Basically, all the economic policies which directly or indirectly seem to

promote the expansion of the private sector or the market (economy) have been termed by

the experts and the governments as the process of privatisation. We may cite a few examples

from India de-licencing and dereservatrion of the industries, even cuts in the subsidies,

permission to foreign investment, etc.

72. Solution: a)



Considered as the backbone for the success of the reform process in India itself, it consists

of dismantling of the Administered Price Mechanism (APM). There were many products in

the economy whose prices were fixed/regulated by the Government viz. petroleum, sugar,

fertilizers, drugs, etc.

Though a major section of the products under the APM were produced by the private sector,

they were not sold on the market principles which hindered the profitability of the

manufacturers as well as the sellers and ultimately the expansion of the concerned

industries leading to a demand-supply gap. Under market reforms these products were to

be brought into the market fold.

In the petroleum segment now only kerosene oil and the LPG remained under the APM

while petrol, diesel, lubricants have been phased out. Similarly, the income tax paying

families dont get sugar from the TPS on subsidies; only urea, among the fertilizers, remain

under APM while many drugs have also been phased out of the mechanism. Opening the

petroleum sector for private investment, cutting down the burden of levy on sugar, etc. are

now giving dividends to the economy. But we cannot say that the Factor Market Reforms

(FMRs) are complete in India. It is still going on. Cutting down subsidies on the essential

goods is a socio-political question in India. Till market-base purchasing power is not

delivered to all the consumers, it would not be possible to complete the FMRs.

73. Solution: d)

When the general level of prices is falling over a period of time this is deflation, the opposite

situation of inflation. It is also known as disinflation. But in contemporary economics,

deflation or disinflation not used to indicate fall in prices. Instead, a price rise is termed a

rise in inflation and a price fall is termed a fall in inflation. The terms deflation or

disinflation have become part of the macroeconomic policy of modern governments. In

policy terms, the terms show a reduction in the level of national income and output, usually

accompanied by a fall in the general price level.

Such a policy is often deliberately brought about by the governments with the objective of

reducing, inflation and improving the balance of payments (BoP) by reducing import

demand. As instruments of deflation, any policy includes fiscal measures (as for example,

tax increase) and monetary measures (as for example, increase in interest rate).

74. Solution: d)

The governments may take recourse to tighter monetary policy to cool down either the

demand-pull or the cost-push inflations. This is basically intended to cut down the money

supply in the economy by siphoning out the extra money (as RBI increases the Cash Reserve

Ratio of bank in India) from the economy and by making money costlier (as RBI increases



the Bank Rate or Repo Rate in India). This is a short-term measure. In the long-run, the best

way is to increase production with the help of the best production practices.

Again, this measure does not work if the price rise is taking place in the items of everyday

use such as salt, onion, wheat, etc. (because nobody purchases such goods by borrowing

from the banks). This measure helps if the prices are rising due to extra demand of cement,

iron and steel, etc.

75. Solution: a)

Core Inflation is based on the inclusion or exclusion of the goods and services while

calculating inflation. Popular in western economies, core inflation shows price rise in all

goods and services excluding energy and food articles. In India, it was first time used in the

financial year 200001 when the Government expressed that it was under controlit means

the prices of manufactured goods were under control. This was criticised by experts on

account of excluding food articles and energy out of the inflation and feeling satisfied on the

inflation front. Basically, in the western economies, food and energy are not the problems for

the masses, while in India these two segments play the most vital role for them.

76. Solution: a)

An inflationary situation in an economy which results out of a process of wage and price

interaction when wages press prices up and prices pull wages up is known as the

inflationary spiral. It is also known as the wage-price spiral. This wage-price interaction was

seen as a plausible cause of inflation in the year 1935 in the US economy, for the first time.

It can be seen in Indias case also when the government revises the Dearness allowance

(addition to the basic salary w.r.t. to inflation levels), it adds to the existing demand in the

economy and leads to inflation.

77. Solution: a)

A situation in an economy when inflation and unemployment both are at higher levels, is

contrary to conventional belief. Such a situation first arose in 1970s in the US economy

(average unemployment rate above 6 per cent and the average rate of inflation above 7 per

cent)32a and in many Euro- American economies. This took place as a result of oil price

increases of 1973 and 1979 and anticipation of higher inflation. The stagflationary situation

continued till the early 1980s. Conventional thinking that a trade-off existed between

inflation and unemployment (i.e. Phillips curve) was falsified and several economies

switched over to alternative ways of economic policies such as monetaristic and supply-side

economics.



When the economy is passing through the cycle of stagnation (i.e. long period of low

aggregate demand in relation to its productive capacity) and the government shuffles with

the economic policy, a sudden and temporary price rise is seen in some of the goodssuch

inflation is also known as stagflation. Stagflation is basically a combination of high inflation

and low growth.

78. Solution: c)

Economists usually distinguish between inflation and a relative price increase. Inflation

refers to a sustained, across-the-board price increase, whereas a relative price increase is a

reference to an episodic price rise pertaining to one or a small group of commodities. This

leaves a third phenomenon, namely one in which there is a price rise of one or a small group

of commodities over a sustained period of time, without a traditional designation.

Skewflation is a relatively new term to describe this third category of price rise.

In India, food prices rose steadily during the last months of 2009 and the early months of

2010, even though the prices of non-food items continued to be relatively stable. As this

somewhat unusual phenomenon stubbornly persisted, policymakers conferred on how to

bring it to an end. The term skewflation made an appearance in internal documents of the

Government of India, and then appeared in print in the Economic Survey 2009-10, GoI, MoF.

The skewedness of inflation in India in the early months of 2010 was obvious from the fact

that food price inflation crossed the 20 per cent mark in multiple months, whereas wholesale

price index (WPI) inflation never once crossed 11 per cent. It may be pointed out that the

skewflation has gradually given way to a lower-grade generalised inflation. (with the

economy in the middle of 2011 inflating at around 9 per cent with food and non-food price

increases roughly at the same level).

79. Solution: a)

This is the ratio between GDP at Current Prices and GDP at Constant Prices. If GDP at Current

Prices is equal to the GDP at Constant Prices, GDP deflator will be 1, implying no change in

price level. If GDP deflator is found to be 2, it implies rise in price level by a factor of 2, and

if GDP deflator is found to be 4 , it implies a rise in price level by a factor of 4. GDP deflator

is acclaimed as a better measure of price behaviour because it covers all goods and services

produced in the country (because the weight of services has not been equitably accounted in

the Indian headline inflation i.e. inflation at the WPI).

80. Solution: d)

Inflation redistributes wealth from creditors to debtors i.e. lenders suffer and borrowers

benefit out of inflation. The opposite effect takes place when inflation falls (i.e. deflation).



Holding money does not remain an intelligent economic decision (because money loses

value with every increase in inflation) that is why people visit banks more frequently and

try to hold least money with themselves and put maximum with the banks in their saving

accounts. This is also known as the shoe leather cost of inflation (as it consumes the precious

time of the people visiting the bank frequently tagging their shoe!). It means that saving rate

increases. But this happens as a short-term effect of inflation. In the long-run, higher

inflation depletes the saving rate in an economy. Just the opposite situation arises when

inflation falls or shows falling traits with decreasing saving, in the short-run and increasing

saving in the long-run, respectively.

81. Solution: b)

WPI categories. Services are included in CPI. Price rise in intermediate goods is not counted.

Instead, the final price rise in the manufactured good is included.

82. Solution: d)

The typical problem of bottleneck inflation (i.e structural inflation) arises out of shortfalls in

the supply of goods, a general crisis of a developing economy, rising demand but lack of

investible capital to produce the required level of goods.

Whenever the Government managed to go for higher growths by managing higher

investible capital it had inflationary pressures on the economy (seen during 1970s and 1980s,

specially) and growth was sacrificed at the altar of lower inflation (which was politically

more justified). Thus the supply-side mismatch remained a long-drawn problem in India for

higher inflation. After some time even if the government managed higher expenditure, most

of it was eaten by the non-developmental areas which did show low growth with higher

inflation signs of a stagnating economy.

83. Solution: a)

Major traits of recession, to a great extent, are similar to that of depression may be summed

up as follows

there is a general fall in demand as economic activities takes a downturn;



inflation remains lower or/and shows further signs of falling down;

employment rate falls/unemployment rate grows;

Industries resort to price cuts to sustain their business.

The major economic traits of boom may be listed as given below:

an accelerated and prolonged increase in the demand;

demand peaks up to such a high level that it exceeds sustainable output/production

levels;

the economy heats up and a demand-supply lag is visible;

the market forces mismatch (i.e. demand and supply inequilibrium) and tend to

create a situation where inflation start going upward;

(e) the economy might face structural problems like shortage of investible capital, lower

savings, falling standard of living, creation of a sellers market.

84. Solution: a)

Agriculture is not only the biggest sector of the economy (employment wise) but also the

most free private sector, too. It is the only profession which still carries no burden of

individual income tax.

This is the biggest unorganised sector of the economy accounting for more than 90 per cent

share in the total unorganised labour-force (93 per cent of the total labour force of the

economy i.e. 39.7 crores, is employed in the unorganised sector).

85. Solution: c)

Under the broader step of Tenancy Reforms, three inter-related reforms protecting the land

tenants were effected by the GoI:

Regulation of rent so that a fixed and rational rate of rent could be paid by the share-

croppers to the land owners;

Security of tenure so that a share-cropper could be feel secure about his future income

and his economic security; and

Ownership rights to tenants so that the landless masses (i.e. the tenants, the share-

croppers) could be transferred the final rights for the land they plough - land to the

tillers.

86. Solution: c)



Prevention of pig-to-human transmission

The transmission from swine to humans is believed to occur mainly in swine farms, where

farmers are in close contact with live pigs. Although strains of swine influenza are usually

not able to infect humans, this may occasionally happen, so farmers and veterinarians are

encouraged to use face masks when dealing with infected animals. The use of vaccines on

swine to prevent their infection is a major method of limiting swine-to-human transmission.

Prevention of human-to-human transmission

Influenza spreads between humans when infected people cough or sneeze, then other

people breathe in the virus or touch something with the virus on it and then touch their own

face, eyes, nose or mouth. Swine flu cannot be spread by pork products, since the virus is

not transmitted through food. The swine flu in humans is most contagious during the first

five days of the illness, although some people, most commonly children, can remain

contagious for up to ten days.

PIB Features

http://pib.nic.in/newsite/efeatures.aspx

87. Solution: b)

The Ministry of Home Affairs extends manpower and financial support, guidance and

expertise to the State Governments for the maintenance of security, peace and harmony

without trampling upon the constitutional rights of the States.

The Ministry of Home Affairs shows[4][5] the has the following constituent Departments:

Department of Border Management

Department of Border Management, dealing with management of borders, including coastal

borders.

Department of Internal Security

Department of Internal Security, dealing with police, law and order and rehabilitation.

Department of Jammu & Kashmir Affairs

Department of Jammu & Kashmir (J & K) Affairs, dealing with the constitutional provisions

in respect of the State of Jammu & Kashmir and all other matters relating to the State

excluding those with which the Ministry of External Affairs is concerned.

Department of Home

Dealing with the notification of assumption of office by the President and Vice President,

notification of appointment of the Prime Minister and other Ministers, etc



Department of Official Language

Dealing with the implementation of the provisions of the Constitution relating to official

languages and the provisions of the Official Languages Act, 1963.

Department of States

Dealing with Centre-State relations, Inter-State relations, Union Territories and Freedom

Fighters' pension.

88. Solution: b)

Comptroller and Auditor-General of India :-

(1) There shall be a Comptroller and Auditor-General of India who shall be appointed by the

President by warrant under his hand and seal and shall only be removed from office in like

manner and on like grounds as a Judge of the Supreme Court.

(2) Every person appointed to be the Comptroller and Auditor-General of India shall, before

he enters upon his office, make and subscribe before the President or some person

appointed in that behalf by him, an oath or affirmation according to the form set out for the

purpose in the Third Schedule.

(3) The salary and other conditions of service of the Comptroller and Auditor-General shall

be such as may be determined by Parliament by law and, until they are so determined, shall

be as specified in the Second Schedule:

Provided that neither the salary of a Comptroller and Auditor-General nor his rights in

respect of leave of absence, pension or age of retirement shall be varied to his disadvantage

after his appointment.

(4) The Comptroller and Auditor-General shall not be eligible for further office either under

the Government of India or under the Government of any State after he has ceased to hold

his office.

(5) Subject to the provisions of this Constitution and of any law made by parliament, the

conditions of service of persons serving in the Indian Audit and Accounts Department and

the administrative powers of the Comptroller and Auditor-General shall be such as may be

prescribed by rules made by the President after consultation with the Comptroller and

Auditor-General.

(6) The administrative expenses of the office of the Comptroller and Auditor-General

including all salaries, allowances and pensions payable to or in respect of persons serving in

that office, shall be charged upon the Consolidated Fund of India.

149. Duties and Powers of the Comptroller and Auditor-General :- The Comptroller and

Auditor-General shall perform such duties and exercise such powers in relation to the

accounts of the Union and of the States and of any other authority or body as may be



prescribed by or under any law made by Parliament and, until provision in that behalf is so

made, shall perform such duties and exercise such powers in relation to the accounts of the

Union and of the States as were conferred on or exercisable by the Auditor-General of India

immediately before the commencement of this Constitution in relation to the accounts of the

Dominion of India and of the provinces respectively.

150. Form of accounts of the Union and of the States :- The accounts of the Union and of the

States shall be kept in such form as the President may, on the advice of the Comptroller and

Auditor-General of India, prescribe.

151. Audit Reports :-

(1) The reports of the Comptroller and Auditor-General of India relating to the accounts of

the Union shall be submitted to the president, who shall cause them to be laid before each

House of Parliament.

(2) The reports of the Comptroller and Auditor-General of India relating to the accounts of a

State shall be submitted to the Governor of the State, who shall cause them to be laid before

the Legislature of the State.

89. Solution: b)

http://www.icrisat.org/what-we-do/agro-ecosystems/Bhoo-Chetana/background.htm

90. Solution: c)

The enactment of Administrative Tribunals Act in 1985 opened a new chapter in the sphere

of administe

test 15 extra questions --solutions- history

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