[DAY 09] 60 DAY RAPID REVISION (RaRe) SERIES for UPSC Prelims 2024 – ECONOMY, CURRENT AFFAIRS & CSAT TEST SERIES!

Solution (b)

Note:

The Basic Price is the price expected to be received by the producer.

It is calculated as:

‘Factor Cost ‘+ ‘Production Taxes ‘– ‘Production Subsidies ‘.

Hence,

GDP at Basic Price = ‘GDP at Factor Cost’ + ‘Production Taxes’ – ‘Production Subsidies’.

Solution (a)

Note:

Production Taxes or Production Subsidies:

Production taxes or production subsidies are paid or received with relation to production and are independent of the volume of actual production.

• Some examples of production taxes are land revenues, stamps and registration fees, and tax on profession.
• Some production subsidies include subsidies to the railways, input subsidies to the farmers, subsidies to the village and small industries, administrative subsidies to the corporations or co-operatives, etc.

Product Tax or Product Subsidy:

Product taxes or subsidies are paid or received on per unit of product.

• Some examples of product taxes are excise tax, sales tax, service tax, and import and export duties.
• Product subsidies include food, petroleum and fertilizer subsidies, interest subsidies given to the farmers, households, etc.

Solution (d)

Relationship between GDP at Market Price and GDP at Basic Price:

1. GDP at Market Price = GDP at Basic Price + Product Taxes – Product Subsidies

Relationship between GDP at Market Price and GDP at Factor Cost:

1. GDP at Basic Price = GDP at Factor Cost + Production Taxes – Production Subsidies

Substituting the value of GDP at Basic Price with GDP at Factor Cost in equation 1,

GDP at Market Price = (GDP at Factor Cost + Production Taxes – Production Subsidies) + Product Taxes – Product Subsidies

GDP at Market Price = GDP at Factor Cost + (Production Taxes + Product Taxes) – (Production Subsidies + Product Subsidies)

GDP at Market price = GDP at Factor Cost + Indirect Taxes – Subsidies

Solution (b)

The Gross Domestic Product (GDP) measures the value of goods and services produced within a country’s borders, by both the citizens and the noncitizens.

On the other hand, the Gross National Product (GNP) measures the value of goods and services produced by only the country’s citizens, but both domestically and abroad.

GNP = GDP + Income earned by the Indians outside India – Income earned by the foreigners within India.

GNP = GDP + Net Factor Income from Abroad (NFIA).

Solution (c)

Note:

Gross Domestic Product (GDP):

• The Gross Domestic Product (GDP) refers to the market value of all final goods and services produced within an economy.

Recent changes in the GDP estimation (2015):

• Change in the base year from 2004-05 to 2011-12. Usually, the base years are revised at a frequency of 7-10 years by taking into account the changing economic landscape of the country.
• Change in the GDP estimation from the GDP at the Factor Cost to GDP at the Market Prices.
• Change in the database for capturing economic activity from RBI’s database to the MCA-21 database of the Ministry of Corporate Affairs.
• This database is basically used for two purposes:

1. Estimate the production of goods and services in the organized sector, based upon the tax returns.
2. Extrapolate the production of goods and services in the unorganized sector, based upon the organized sector activity.

• The GDP is estimated by the National Statistical Office (NSO).

Solution (a)

Solution (c)

Note:

Giffen Goods:

• In economics and consumer theory, a Giffen good is a product that people consume more of as the price rises and vice versa—violating the basic law of demand in microeconomics.
• For any other sort of good, as the price of the good rises, the substitution effect makes consumers purchase less of it, and more of substitute goods; for most goods, the income effect (due to the effective decline in available income due to more being spent on existing units of this good) reinforces this decline in demand for the good.
• But a Giffen good is so strongly an inferior good in the minds of consumers (being more in demand at lower incomes) that this contrary income effect more than offsets the substitution effect, and the net effect of the good’s price rise is to increase demand for it.
• This phenomenon is known as the Giffen paradox.
• A Giffen good is considered to be the opposite of an ordinary good. There are three necessary preconditions for this situation to arise:
  • the good in question must be an inferior good,
  • there must be a lack of close substitute goods, and
  • the goods must constitute a substantial percentage of the buyer’s income, but not such a substantial percentage of the buyer’s income that none of the associated normal goods are consumed.
• Some examples of it are wheat, potatoes and Rice.

Solution (c)

Solution (b)

Note:

Primary Sector:

• When we produce goods by exploiting the natural resources, it is an activity of the primary sector.
• This is because it forms the base for all other products that we subsequently make.
• Since most of the natural products we get are from agriculture, dairy, fishing and forestry, this sector is also called agriculture and related sector.

Secondary Sector:

• The secondary sector covers activities in which the natural products are changed into other forms through ways of manufacturing that we associate with industrial activity.
• It is the next step after primary. The product is not produced by nature, but has to be made and, therefore, some process of manufacturing is essential.
• This could be in a factory, a workshop or at home. For example, using cotton fibre from the plant, we spin yarn and weave cloth.

Tertiary Sector:

• After primary and secondary, there is a third category of activities that falls under the tertiary sector and is different from the above two.
• These are the activities that help in the development of the primary and the secondary sectors.
• These activities, by themselves, do not produce goods, but they are an aid or a support for the production process.
• For example, goods that are produced in the primary or secondary sector would need to be transported by trucks or trains and then sold in the wholesale and retail shops.
• At times, it may be necessary to store these in godowns.
• Transport, storage, communication, banking and trade are some examples of tertiary activities. Since these activities generate services rather than goods, the tertiary sector is also called the service sector.
• Service sector also includes some essential services that may not directly help in the production of goods. For example, we require teachers, doctors, and those who provide personal services, such as washermen, barbers, cobblers, lawyers and people to do administrative and accounting works.
• In recent times, certain new services, based on information technology, such as internet cafe, ATM booths, call centres, software companies, etc., have become important.

Solution (d)

Solution (b)

Solution (b)

The World Bank classifies economies for analytical purposes into four income groups: low, lower-middle, upper-middle, and high income. For this purpose, it uses gross national income (GNI) per capita data in U.S. dollars, converted from local currency using the World Bank Atlas method, which is applied to smooth exchange rate fluctuations.

Estimates of GNI are obtained from economists in World Bank country units who rely primarily on official data published by the countries; the size of the population is estimated by World Bank demographers from a variety of sources, including the UN’s biennial World Population Prospects.

Countries are classified each year on July 1, based on the estimate of their GNI per capita for the previous calendar year. Income groupings remain fixed for the entire World Bank fiscal year (i.e., until July 1 of the following year), even if GNI per capita estimates are revised in the meantime.

Solution (c)

• National Disposable Income is the maximum amount of goods and services a country has which could be used for the purpose of saving and consumption.
• It is obtained by adding Net National Product at market prices with current transfers from the rest of the world.
• It gives an idea of what is the maximum amount of goods and services the domestic economy has at its

Solution (c)

Solution (b)

• Final Goods are the items which are meant for final use and will not pass through any more stages of production or transformations are called a final
• Of the final goods, we can distinguish between consumption goods and capital
  • Consumption goods are goods like food and clothing and services like recreation that are consumed when purchased by their ultimate
  • Capital goods are those goods that are of a durable character which are used in the production These are tools, implements, and machines. While they make the production of other commodities feasible, they themselves don’t get transformed into the production process.
  • Consumer durables are commodities like television sets, automobiles or home computers, although they are for ultimate consumption, have one characteristic in common with capital goods – they are also
  • Of the total production taking place in the economy a large number of products do not end up in final consumption and are not capital goods Such goods may be used by other producers as material inputs. Examples are steel sheets used for making automobiles and copper used for making utensils. These are intermediate goods.

Solution (a)

Solution (b)

• Double coincidence of wants is a situation where two economic agents have complementary demand for each other’s surplus It refers to the simultaneous fulfilment of mutual wants of buyers and sellers.
• For example, a person with a particular good has to find a person who has the goods of his wants and he should also possess the wanted good of the other

Solution (d)

Solution (c)

The total cost incurred in deploying all factors, which led to the production or generation of goods and commodities available in the market, is known as factor cost.

Taxes paid to the government are not included in the factor cost since they are not directly engaged in the production process and so are not a component of the direct production cost.

Solution (b)

Solution (b)

• The Ministry of New and Renewable Energy notifies the green hydrogen standard for India. Hence statement 1 is incorrect.
• Green hydrogen is the hydrogen derived from renewable energy sources, either via electrolysis or biomass conversion. It also encompasses green energy preserved in energy storage systems.
• The emission thresholds for the production of hydrogen to be classified as ‘green’ are – Green hydrogen having a well-to-gate emission of not more than two kg carbon dioxide (CO2) equivalent per kg hydrogen(H2).
• The Bureau of Energy Efficiency (BEE) under the Ministry of Power will be the nodal authority for the accreditation of agencies for the monitoring, verification, and certification of green hydrogen production projects. Hence statement 2 is correct.

Solution (d)

Atal Bihari Vajpayee was born on 25th December 1924. He was elected 10 times to the Lok Sabha from four different States. He was twice a member of the Rajya Sabha. He was the first non-Congress Prime Minister to have finished a full term. He was Prime Minister thrice in 1996, 1998-1999, and 1999-2004. His birthday is observed as Good Governance Day. He advocated and practiced positive nationalism. He proudly took Hindi to the United Nations first time and spoke it in the UN General Assembly. He rode a bus to Lahore for Indo-Pak peace. He envisaged and executed the first round of Pradhan Mantri Gram Sadak Yojana which connected rural India. He conducted the nuclear test in Pokhran. He brought in the National Highway Development Project leading to East West North South Corridor or the Golden Quadrilateral. The New Telecom Policy of 1999 brought in by him was also a crucial part of the Indian telecom revolution. He was awarded Padma Vibhushan in 1992 and India’s highest civilian honor, Bharat Ratna in 2015. Hence option d is correct.

Solution (b)

The factors that influence the intensity of southwest monsoons in India:

• Strengths of low pressure over Tibet
• Strengths of high pressure over the southern Indian Ocean
• Somali Current
• Indian Ocean branch of Walker Cell
• Indian Ocean Dipole
• Somali Jet

Hence option b is correct.

Solution (c)

• The Grant for Research and Entrepreneurship across Aspiring Innovators in Technical Textiles (GREAT) scheme aims to support individuals and companies to translate prototypes into technologies and products, including commercialization. Hence statement 1 is correct.
• It is launched by the Ministry of Textiles to provide much-needed impetus for the development of the technical textiles startup ecosystem in India, especially in niche sub-segments such as bio-degradable and sustainable textiles, high-performance and specialty fibers, and smart textiles. Hence statement 2 is correct.

Solution (b)

• Zero-day attack refers to an unknown vulnerability that can be exploited by any malicious The findings of the State of India’s Birds Report 2023 released by the State of India’s Birds Partnership are:

• About 39% of bird species show clear declines over the past decades. Hence statement 1 is incorrect.
• 178 species classified as of High Conservation Priority, and require immediate attention.
• Forest degradation, urbanization, and energy infrastructure are the major threats faced by birds. Hence statement 2 is correct.
• Long-distance migratory birds, such as those from Eurasia and the Arctic, have suffered significant declines.
• Several species like the Indian Peafowl, Rock Pigeon, Asian Koel, and House Crow are thriving and increasing in both abundance and distribution.
• Raptors, migratory shorebirds, and ducks have experienced the most significant declines. Hence statement 3 is correct.

Solution (c)

• Seethakali folk art is a centuries-old folk art form that originated in Kerala. Hence statement 1 is correct.
• This art form was first performed some 150 years back by the people of Vedar and Pulayar communities.
• It is based on certain episodes taken from the Indian epic Ramayana. Hence statement 2 is correct.
• Mythic characters such as Rama, Seetha, Ravana, and Hanuman come alive in Seethakali performances that portray the tale of Seetha’s journey, from the time she accompanied Rama to the woods to her ascent to the heavens.
• Its props and instruments are made of natural materials like bamboo and palm leaves. Hence statement 3 is correct.
• The costumes and the make-up are loud and eye-catching. The characters of Rama and Laxmana appear in green since the colour is used to represent gods and goddesses in Kathakali.

Solution (b)

Nataraja is the representation of the Hindu god Shiva during his form as the cosmic dance. It is represented in metal or stone in many Shaivite temples, particularly in South India. It is an important piece of Chola sculpture.

The features of Nataraja are:

• The upper right hand holds the drum which signifies the sound of creation. Hence statement 1 is incorrect.
• The upper left hand holds the eternal fire which signifies the destruction. Hence statement 2 is incorrect.
• The lower right hand is raised in the gesture of Abhay Mudra signifying benediction and reassuring the devotee to not be afraid. Hence statement 3 is correct.
• The lower left hand points towards the upraised foot and indicates the path of salvation. Hence statement 4 is correct.
• Shiva is dancing on the figure of a small dwarf. The dwarf symbolizes ignorance and the ego of an individual.
• The matted and flowing locks of Shiva represent the flow of the river Ganges.
• In ornamentation, one ear of Shiva has a male earring while the other has a female. This represents the fusion of male and female and is often referred to as
• A snake is wrapped around the arm of Shiva. The snake symbolizes the kundalini power, which resides in the human spine in the dormant stage.

Solution (a)

• The Horn of Africa consists of Somalia, Ethiopia, Eritrea, and Djibouti. Hence statement 1 is incorrect.
• The Greater Horn of Africa region includes Burundi, Djibouti, Eritrea, Ethiopia, Kenya, Rwanda, Somalia, South Sudan, Sudan, Tanzania, and Uganda.
• It is equidistant from the equator and the Tropic of Cancer. Hence statement 2 is incorrect.
• It extends out into the Arabian Sea for hundreds of kilometers.
• It is located along the south of the Gulf of Aden.
• It is a UNESCO Biodiversity Hotspot. Hence statement 3 is correct.

Solution (a)

• Chail Wildlife Sanctuary is located in the Indian state of Himachal Pradesh.
• It encompasses hills, valleys, forests, and grasslands.
• Its flora includes oak, pine, cedar, rhododendron, and grasslands.
• Its fauna includes pheasants, Himalayan bears, deer, langurs, and porcupines.
• It comprises part of the catchment area of a tributary of the Giri River.

Solution (d)

• The Kampala Declaration is related to climate change. Hence option d is correct.
• Kampala Ministerial Declaration on Migration, Environment, and Climate Change (KDMECC) was signed in 2022 at Kampala, Uganda by 15 African states.
• Its objective is to address the nexus of human mobility and climate change in the continent.
• It is the first comprehensive, action-oriented framework led by Member States to address climate-induced mobility in a practical and effective manner.

Solution (b)

We will check by substituting the values for each option:

For option (a): A = (45% of P) – (15% of Q) = 0.45 × 700 – 0.15 × 400 = 255 B = (25% of P) + (20% of Q) = 0.25 × 700 + 0.20 × 400 = 255 Clearly, A = B, hence option (a) is wrong.

For option (b): A = (45% of P) – (15% of Q) = 0.45 × 700 – 0.15 × 300 = 315 – 45 = 270 B = (25% of P) + (20% of Q) = 0.25 × 700 + 0.20 × 300 = 175 + 60 = 235

For option (c): A = (45% of P) – (15% of Q) = 0.45 * 700 – 0.15 * 500 = 315 – 75 = 240

B = ( 25% of P ) + ( 20% of Q) = ( 0.25 * 700) + ( 0.2 * 500 ) = ( 175 + 100 ) = 275

A-B = -35.

Clearly, A-B > 0 Hence, option (b) is the correct answer.

Solution (d)

Distance covered in the 1^st round = AP + PB = 1000 + (4/5)×1000 = 1000 + 800 = 1800 m.

Distance covered in the 2^nd round = BQ + QC = 800 + (4/5)×800 = 800 + 640 = 1440 m.

Distance covered in the 3^rd round = CR + RD = 640 + 4/5×640 = 640 + 512 = 1152 m and so on.

So, the total distance covered = 1800 + 1440 + 1152 + ……………….∞ terms.

This is an infinite G.P. (geometric progression) with common ratio 4/5.

So, Sum, S_∞ = a/1-r ,

a = first term = 1800 and r = common ratio = 4/5.

Hence, the required distance = 1800/(1-4/5) = 1800/(1/5) = 9000 m

Solution (b)

New speed = 4/5 of its usual speed

So, New time taken = 5/4 of the usual time

[time = distance/speed, if distance is constant then time ∝ 1/speed ]

So, (5/4 of the usual time) – (usual time) = 20 min

➱ (5/4 -1) of the usual time = 20 min

➱ ¼ of the usual time = 20 min

➱ usual time = (4×20) min

= 80 min.

Solution (c)

Let the marks scored in five subjects be 4x, 5x, 6x, 7x and 8x (on a scale of 100).

Average score = 60% = 60 marks

So, (4x+5x+6x+7x+8x) / 5 = 60

or x = 10.

So, the marks obtained are 40, 50, 60, 70 and 80.

Hence the number of papers in which he got at least 70% marks = 2 (70 & 80).

Solution (b)

According to the question:

Students who scored more than 100 marks = 22%

And students who scored more than 200 = 6%

Hence, students who scored between 100 and 200 = 22 – 6 = 16%

Now, students who scored less than 30 = 12%

Students who scored between 30 and 100 = 100 – (22 + 12) = 66% = 990

So, Total number of students = 990 × (100/66) = 1500

Students who scored between 100 and 200 = 16% = (16/100) × 1500 = 240