Civil Service Preliminary Paper-1 Previous Year Solved Questions for the year 2011


31) What was the reason for Mahatma Gandhi to organize a satyagraha on behalf of the peasants of Kheda ?
1.   The Administration did not suspend the land revenue collection in spite of a drought.
2.   The Administration proposed to introduce Permanent Settlement in Gujarat.

Which of the statements given above is /are correct ?
(a)  1 only
(b)  2 only
(c)  Both 1 and 2
(d)  Neither 1 nor 2


32. Consider the following actions which the Government can take :
1.   Devaluing the domestic currency.
2.   Reduction in the export subsidy.
3.   Adopting suitable policies which attract greater FDI and more funds from FIIs.

Which of the above action/actions can help in reducing the current account deficit ?
(a)  1 and 2
(b)  2 and 3
(c)  3 only
(d)  1 and 3



33. A rapid increase in the rate of inflation is sometimes attributed to the "base effect". What is "base effect" ?
(a)  It is the impact of drastic deficiency in supply due to failure of crops
(b)  It is the impact of the surge in demand due to rapid economic growth
(c)  It is the impact of the price levels of previous year on the calculation of inflation rate
(d)  None of the statements (a), (b) and (c) given above is correct in this context


34. India is regarded as a country with "Demographic Dividend". This is due to
(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



35. Which one of the following is not a feature of "Value Added Tax" ?
(a)  It is a multi-point destination-based system of taxation
(b)  It is a tax levied on value addition at each stage of transaction in the production-distribution chain
(c)  It is a tax on the final consumption of goods or services and must ultimately be borne by the consumer
(d)  It is basically a subject of the Central Government and the State Governments are only a facilitator for its successful implementation


36. A "closed economy" is an economy in which
(a)  the money supply is fully controlled
(b)  deficit financing takes place
(c)  only exports take place
(d)  neither exports nor imports take place


37. In terms of economy, the visit by foreign nationals to witness the XIX Common Wealth Games in India amounted to
(a)  Export
(b)  Import
(c)  Production
(d)  Consumption


38. Which one of the following statements appropriately describes the "fiscal stimulus" ?
(a)  It is a massive investment by the Government in manufacturing sector to ensure the supply of goods to meet the demand surge caused by rapid economic growth
(b)  It is an intense affirmative action of the Government to boost economic activity in the country
(c)  It is Government's intensive action on financial institutions to ensure disbursement of loans to agriculture and allied sectors to promote greater food production and contain food inflation
(d)  It is an extreme affirmative action by the Government to pursue its policy of financial inclusion


39) The Constitution (Seventy-Third Amendment) Act, 1992, which aims at promoting the Panchayati Raj Institutions in the country, provides for which of the following ?
1.   Constitution of District Planning Committees.
2.   State Election Commissions to conduct all panchayat elections.
3.   Establishment of State Finance Commissions.

Select the correct answer using the codes given below :
(a)  1 only
(b)  1 and 2 only
(c)  2 and 3 only
(d)  1, 2 and 3



40) Consider the following statements :
      In India, a Metropolitan Planning Committee
1.   is constituted under the provisions of the Constitution of India.
2.   prepares the draft development plans for metropolitan area.
3.   has the sole responsibility for implementing Government sponsored schemes in the metropolitan area.

Which of the statements given above is /are correct ?
(a)  1 and 2 only
(b)  2 only
(c)  1 and 3 only
(d)  1, 2 and 3



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