UPSC Essentials brings to you its initiative of subject-wise quizzes. These quizzes are designed to help you revise some of the most important topics from the static part of the syllabus. Attempt today’s subject quiz on Economy to check your progress. Come back tomorrow to solve the International Relations Quiz.
With reference to the Relative Economic Performance of Indian States report, consider the following statements:
1. The per capita income of all southern states became higher than the national average after 1991.
2. Gujarat and Maharashtra have had per capita incomes exceeding the national average since the 1960s.
3. West Bengal has seen a consistent increase in the share of GDP contribution.
How many of the statements given above are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
Explanation
— According to the paper titled ‘Relative Economic Performance of Indian States: 1960-61 to 2023-24’, five southern states — Karnataka, Andhra Pradesh, Telangana, Kerala and Tamil Nadu — accounted for over 30 per cent of India’s Gross Domestic Product (GDP) in 2023-24. In addition, the per capita income of all southern states became higher than the national average after 1991. Hence, statement 1 is correct.
— West Bengal, which had the third-largest percentage of national GDP at 10.5 per cent in 1960-61, accounts for only 5.6 per cent in 2023-24. It has steadily declined over time. Hence, statement 3 is not correct.
— Delhi, Telangana, Karnataka, and Haryana continued to have the greatest relative per capita incomes, while Bihar had the lowest. In 2023-24, Delhi’s relative per capita income was 250.8 per cent, which meant that the average income was 2.5 times more than the national average.
— The per capita incomes of Maharashtra and Gujarat remained above the national average since the 1960s, with the 2023-24 data showing Gujarat at 160.7 per cent of the national average and Maharashtra at 150.7 per cent. Hence, statement 2 is correct.
Therefore, option (b) is the correct answer.
Consider the following crops:
1. Maize
2. Sorghum
3. Groundnut oilseeds
4. Barley
5. Mustard
Which of the crops given above are covered under the Kharif crops?
(a) 1, 2 and 3
(b) 2 and 4 only
(c) 2, 3 and 4
(d) 1, 2, 3 and 5
Explanation
— Cropping pattern refers to the distribution of different crops within a specific area at a given time. It indicates the yearly sequence and spatial arrangement of crops that follow in an area.
— In India, cropping patterns have traditionally been shaped by the monsoons, which determine the agricultural calendar of the country.
— India’s agricultural landscape is broadly divided into Kharif (monsoon), Rabi (winter) and Zaid cropping seasons.
Kharif Cropping
— It begins in July and lasts around September or October.
— Major Kharif crops include rice, maize, sorghum, millet, pulses (arhar and moong), and oilseeds (groundnut and soybean).
— The area sown with Kharif crops exceeds 378 lakh hectares, reflecting a 14.10 per cent increase compared to the previous year.
Rabi Cropping
— It begins with the onset of winter in October and concludes with the harvesting season around March or April.
— The primary Rabi crops include wheat, barley, mustard, gram, and lentils. Wheat stands out as the most important Rabi crop, occupying a significant portion of the total cultivated area during this season.
Zaid Cropping
— These are grown in the short intervening season between Kharif and Rabi, typically from March to June. Common Zaid crops include watermelon, cucumber, pumpkin, bitter gourd, and fodder crops.
Therefore, option (a) is the correct answer.
Consider the following statements:
1. Frictional unemployment is the situation where the supply of jobs is less than the demand for jobs.
2. Structural unemployment results when a person searches for the jobs that best suit their tastes and skills.
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
Explanation
— The unemployment rates for male and female youth are 9.7% and 10%, respectively. Female labour force participation climbed from 17% in 2017-18 to 27.8% in 2022-23.
— Male labour force participation was 55.5% in 2017-18, and it climbed marginally to 56.2% in 2022-23.
— Frictional unemployment occurs when workers take the time to look for jobs that match their preferences and skills, but structural unemployment occurs when the supply of jobs is insufficient to meet the demand. Hence, statements 1 and 2 are not correct.
Therefore, option (d) is the correct answer.
What is the correct sequence of these renewable energies from low to high as per their energy capacity contribution as of May 2024?
1. Solar
2. Biomass
3. Hydropower
4. Wind
Select the correct answer using the codes given below:
(a) 2—3—1—4
(b) 2—4—3—1
(c) 1—4—2—3
(d) 2—1—3—4
Explanation
— India’s Nationally Determined Contribution (NDC) initially included two main goals: First, to reduce the emissions intensity of its GDP by 33-35 per cent by 2030 from 2005 level, and second, to achieve about 40 per cent of its total installed electric power capacity from non-fossil fuel energy resources by 2030.
— In August 2022, India updated these targets: The goal for reducing the emissions intensity of GDP was increased to 45 per cent by 2030 from 2005 level, and the target for non-fossil fuel-based energy capacity was raised to 50 per cent by 2030.
— India has made significant progress in renewable energy and achieved an installed renewable energy capacity of 191 GW (38.2% of target) as of May 2024. This capacity includes:
(i) Solar power (around 85 GW),
(ii) Wind power (around 46 GW),
(iii) Large hydropower (around 45 GW) and small hydropower (around 4.5 GW)
(iv) Biomass (around 10 GW), and
(v) Waste-to-Energy (0.5 GW).
Therefore, option (b) is the correct answer.
Consider the following statements:
1. Nominal effective exchange rate (NEER) is a summary index that captures movements in the external value of the rupee against a basket of global currencies.
2. Real effective exchange rate (REER) is NEER that is adjusted for the inflation differentials between the home country and its trading partners.
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
Explanation
— The effective exchange rate (EER) is measured by an index similar to the consumer price index (CPI).
— The EER is an index of the weighted average of the rupee’s exchange rates vis-à-vis the currencies of India’s major trading partners.
— There are two measures of EER:
Nominal EER or NEER
— The NEER is a summary index that captures movements in the external value of the rupee against a basket of global currencies. Hence, statement 1 is correct.
— The NEER indices are with reference to a base year value of 100 for 2015-16.
Real EER or REER
— The REER is basically the NEER that is adjusted for the inflation differentials between the home country and its trading partners. Hence, statement 2 is correct.
— If a country’s nominal exchange rate falls less than its domestic inflation rate – as with India – the currency has actually appreciated in “real” terms.
Therefore, option (c) is the correct answer.
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