IASbaba’s 60 Day Plan- Prelims Test 2017 Economics and Current Affairs [Day 21]

Hello Friends

So, here we are with the 21st Day of 60 Days Plan. It is the third edition of 60 Days program but seems like the first one because of the excitement involved everywhere, including us 🙂

We are equally excited and pumped. Our Team is working hard to make you realize your dream. Do not take it insincerely and let us down. Your faith and participation has to be in sync with the amount of hard work and effort we do.

Let us pledge to make it a big game changer (better than last year) in the next 60 days!

Importance of Self – Tracking: Learning from Last Year

Last year, aspirants used to comment their answers in the comment box on daily basis. There were huge participation in discussion. Putting answers in comment box has been very effective to self track yourself after updating the score. In the end you can cross check your performance through disqus profile.

It was highly effective in the last edition of 60 Days that propelled aspirants to monitor their performance and learn through discussion. Let you solve these questions with full honesty and write your result in the comment box. Interact with peers to know your mistakes.

The importance of this initiative stands time bound and aggressive reverse engineering to learn the concepts. Many of you must be busy with your own strategy but let us tell you honestly that in the last two months, it is very important to revise and consolidate your learning. Just reading won’t suffice.

So, take out few hours from your schedule and make it a revision exercise.

How you can make the best use of it?

Be honest to your effort and do not start competing with XYZ aspirants here just for the sake of marks. It is more important for you to introspect and check your learning than focusing on others. Try to answer the questions in 20 minutes only. 

Do not get into negative feeling that I don’t have enough knowledge to answer these questions. Feel like you are taking the real exam. What would be your response then?

The same will be replicated in UPSC exam. Here, you get marks only and nothing else matters. So make effort to know the answers of all questions. Do not cheat 😛

Baba’s Gyan for REVISION

Many of you, almost all, asks about effective revision strategy! Can there be any?

Let us tell you something Baba does 😀 

You guys study a lot and there is no issue with the hard work that has been put in. But when it comes to input-output comparison, your performance is questionable.

What to do?

Just do this for a Week: Go to bed before stipulated time of your sleep, at least 1 hour before. Close your eyes and try to relax your mind. You should attain full comfort and calmness.

Do this on the First Day: Imagine the full story of a recent movie that you have watched. Try to recollect from starting to end. See, whether you are able to depict the clear picture or not!

Now, do the same for everything you learnt from morning specially the ones you struggled with. Since it is fresh, most of the things should flow into your mind smoothly. Check what is your recollecting capacity.

For example, if you prepared Polity Day 2: Topics- Try to collect all important concepts and learning of the day.

Trust us, this exercise if done with sincerity will give you immense confidence as well as boost your performance. There is no ideal time for revision and there cannot be any specific date put for it, as commonly done.

This will always expose your weaknesses the very same day and if you tend to forget something, can always get back to consolidate and cement it.

REPEAT IT FOR A WEEK & SEE THE MAGIC 😀 

Must to Do: Read the detailed article regarding Micro Analysis Matrix and follow the guidelines- Click Here

Try to hold your nerves and learn to control the temptation. This is very important art to learn and implement!

Are you ready? Let’s start

[Day 21]: ECONOMICS & CURRENT AFFAIRS 

ARCHIVES

Q.1) You may have heard the term Core Inflation in the news. The computation of Core Inflation does not include which of the following items.

1. Consumer durables
2. Food and fuel items
3. Clothing and apparels
4. Medical expenses

Q.2) Consider the following statements with reference to the Consumer Price Index.

1. It measures Inflation based on the final price paid by the consumer
2. Service tax and Value added Tax are not included in the computation of CPI

Which of the above statements is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Q.3) Consider the following statements with respect to the Wholesale Price Index (WPI)

1. Price rise in both the Goods and Services are included in computing WPI
2. It is published by Office of the Economic Adviser, Ministry of Commerce and Industry
3. The current base year for WPI calculation is 2011-12

 Which of the above statements is/are incorrect?

1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. All of the above

Q.4) Consider the following statements with respect to Inflation measurement in India.

1. RBI has adopted Consumer Price Index (Combined) as the key measure of inflation
2. This was done based on the recommendation of Urjit Patel Committee

Which of the above statements is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Q.5) Consider the following statements about the new series of Consumer Price Index

1. The new series is published by the RBI
2. It measures price rise against the base year prices of 2012

Which of the above statements is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Q.6) With reference to inflation in India, which of the following statements is correct?

1. Controlling the inflation in India is the responsibility of the Government of India only
2. The Reserve Bank of India has no role in controlling the inflation
3. Decreased money circulation helps in controlling the inflation
4. Increased money circulation helps in controlling the inflation

Q.7) Consider the following statements:

1. Inflation benefits the Bondholders
2. Inflation benefits the producers
3. Inflation benefits the debtors

Which of the above statements is/are correct?

1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. All of the above

Q.8) Consider the following statements with reference to The Open Market Operations of RBI

1. RBI sells and purchases government securities under the OMO.
2. It can either increase or decrease the amount of money available in the economy

Which of the above statements is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Q.9) A rise in general level of prices may be caused by

1. An increase in the money supply
2. A decrease in the aggregate level of output
3. An increase in the effective demand

Select the correct answer using the codes given below.

1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. All of the above

Q.10) Which of the following is likely to cause Demand-Pull inflation?

1. Borrowing from the public to finance a budget deficit
2. Borrowing from banks to finance a budget deficit
3. Creating new money to finance a budget deficit

Select the correct answer using the codes given below.

1. 1 only
2. 2 and 3 only
3. 3 only
4. None of the above

Q.11) Which of the following is likely to cause the Cost-push Inflation?

1. Decrease in the Bank lending rates
2. Increased government spending
3. Increased interest rates by the Commercial banks
4. Increase in the disposable incomes of the people

Q.12) Consider the following statements with reference to inflation

1. High inflation will lead to increase in exports
2. High inflation will cause the exports to decrease

Which of the above statements is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Q.13) Consider the following statements with reference to the Philips Curve.

1. It gives the relationship between optimal tax rates and tax collections
2. It gives the relationship between the rate of inflation and rate of employment in the economy

Which of the above statements is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Q.14) A situation where high inflation and high unemployment co-exist is called as

1. Recession
2. Stagflation
3. Depression
4. Hyper inflation

Q.15) Consider the following statements with reference to taxation

1. Higher direct taxes help in controlling Inflation in the economy
2. Higher indirect taxes help in controlling the Inflation in the economy 

Which of the above statements is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Q.16) SAFAR – India, an initiative of the Government of India, aims at

1. providing financial and technical assistance to young start-up entrepreneurs
2. disseminating information regarding air quality on real time
3. promoting the Self Help Groups in rural areas
4. financial inclusion scheme monitored by business correspondents (BC) in rural areas

Q.17) Consider the following statement about ‘Fishing Cat’

1. It is listed as ‘critically endangered’ under the IUCN Red List
2. It is the state animal of West Bengal and Odisha

Select the correct statements

1. Only 1
2. Only 2
3. Both 1 and 2
4. Neither 1 nor 2

Q.18) SAMPRITI is a joint military exercise between India and

1. Nepal
2. Bangladesh
3. Bhutan
4. Sri Lanka

Q.19) Azerbaijan shares its border with which of the following countries?

1. Iran
2. Armenia
3. Georgia
4. Serbia

Select the correct code:

1. 1, 2 and 3
2. 2 and 3
3. 2, 3 and 4
4. All of the above

Q.20) The Kimberley Process Certification Scheme (KPCS) is concerned with:

1. Diamonds
2. Gold
3. Crude Oil
4. None of the above

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