PREVIOUS YEAR SOLVED PAPERS - July 2016
2. Match the items of List – I with List – II and indicate the correct code :
| List – I | List – II |
| (a) Fiscal Policy | (i) Mitigation of National hazards |
| (b) Technology Policy | (ii) Balance of Payment |
| (c) Macro-Economic Policy | (iii) Fiscal Federalism |
| (d) Monetary Policy | (iv) Inflation |
CODES
| (a) | (b) | (c) | (d) | |
| 1 | (i) | (ii) | (iii) | (iv) |
| 2 | (iii) | (i) | (ii) | (iv) |
| 3 | (iv) | (iii) | (i) | (ii) |
| 4 | (ii) | (i) | (iv) | (iii) |
- Option : D
- Explanation : Development of proper infrastructure is vital for economic growth of any country. Investors will like to put the capital only in those countries where there is developed infrastructure. Infrastructure consists of many things such as road, railway, port and harbour, airport, electricity, telecommuni-cation, water supply etc. Development of infrastructure is capital intensive and gestation period is high. At the same time return on capital in case of infrastructure projects is small as well as slow. Hence, investors are shy in investing capital in infrastructure projects unless some special incentives and privileges are provided.
Special features of infrastructure projects
(i) Large Capital requirement
(ii) High sunk cost. A large proportion of the cost has to be irrevocably committed upfront before the project becomes operative
(iii) Long gestation periods
(iv) Returns are slow to pass in
(v) Availability of foreign funds is poor
(vi) Sector is sensitive to political environment and policy changes
(vii) The services produced are non tradable. The excess services generated can not be stored or exported and deficiency in service can not be met with by imports except for certain exceptions.
No single solution applies to different projects as characteristics is different from sector to sector. What applies to road sector does not apply to railways and what applies to railways can not apply to telecommunications sector as the capital requirements are different and so is the method of revenue collection.
4. Out of the following which is not a major component of Gross Domestic Product (GDP)?
- Option : C
- Explanation : GDP has four components: personal consumption expenditures, gross private domestic investment, government purchases of goods and services, and net exports of goods and services. The largest component, by a wide margin, is personal consumption expenditures.
5. Which of the following is not a forum of Consumer Dispute Redressal System?
- Option : A
- Explanation : The National Consumer Disputes Redressal Commission, India is a quasi-judicial commission in India which was set up in 1988 under the Consumer Protection Act of 1986. This Act was enacted to better protect the interests of consumers by creating an alternative disputes resolution mechanism exclusively for consumers. The Act provides for a three-tier approach in resolving consumer disputes. There are three levels of consumer courts called District Consumer Disputes Redressal Forum (District Forum), State Consumer Disputes Redressal Commission (State Commission), and National Consumer Disputes Redressal Commission (National Commission).
District Forum and State Commission are formed by states with the permission of the Central Government while the National Commission is formed by the Central Government. These courts have not taken away the jurisdiction of the civil courts but have provided an alternative remedy.
The National Commission is the top most layer in the three-level hierarchy of the consumer courts. It was constituted in the year 1988. National Consumer Disputes Redressal Commission’s head office is in New Delhi. The commission is headed by a sitting or retired judge of the Supreme Court of India.
