Practice Set: 2011

Q1: 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?

Correct Answer: D

Q2: Regarding "carbon credits", which one of the following statements is not correct?

Correct Answer: D
Carbon credits are market-traded commodities; their prices are determined by supply and demand, not fixed by UNEP.[cite: 1]

Q3: With reference to "Look East Policy" of India, consider the following statements 1. India wants to establish itself as an important regional player in the East Asian affairs. 2. India wants to plug the vacuum created by the termination of Cold War. 3. India wants to restore the historical and cultural ties with its neighbours in Southeast and East Asia. Which of the statements given above is/are correct?

Correct Answer: B

Q4: Recently, "oilzapper" was in the news. What is it?

Correct Answer: A

Q5: In the context of Indian economy, consider the following statements: 1. The growth rate of GDP has steadily increased in the last five years. 2. The growth rate in per capita income has steadily increased in the last five years. Which of the statements given above is/are correct?

Correct Answer: B
This refers to data trends prior to 2011; both indicators did not show a steady increase throughout that specific five-year period.