UPSC CSE 2018 PRELIMS GS Part 5 Q31 to Q35 Indan Administrative Servces BY: AAKRITI
31. Which one of the following statements correctly describes the meaning of legal tender money? (a) The money which is tendered in courts of law to defray the fee of legal cases (b) The money which a creditor is under compulsion to accept in settlement of his claims (c) The bank money in the form of cheques, drafts, bills of exchange, etc. (d) The metallic money in circulation in a country
Answer.b Explanation:Legal tender money is a type of payment that is protected by law.Legal tender is alsco known as forced tender which is very secured and it is impossible to deny the legal tender while subsiding a debt which is assigned in the same medium of exchange. In other words we can say that the term legal tender does not represent the money itself, rather it is a kind of status which can be bestowed on certain types of money.
32. If a commodity is provided free to the public by the Government, then (a) the opportunity cost is zero. (b) the opportunity cost is ignored. (c) the opportunity cost is transferred from the consumers of the product to the tax-paying public. (d) the opportunity cost is transferred from the consumers of the product to the Government.
. Answer.d Explanation:Opportunity cost is the cost which could have been earned from second best investment option. For free goods, the opportunity cost is zero for the person consuming it, however, it is not so for the provider of that good. The choice of spending on various alternatives is available with government and not tax payers. Thus, it is transferred to government.
33. Increase in absolute and per capita real GNP do not connote a higher level of economic development, if (a) industrial output fails to keep pace with agricultural output. (b) agricultural output fails to keep pace with industrial output. (c) poverty and unemployment increase. (d) imports grow faster than exports.
. Answer.c Explanation: Per capita GNP is the total value of all the goods and services produced by a country in a year including income from foreign investments, divided by the number of people living there. *For countries which have a lot of foreign investments, GNP per capita is a more accurate economic indicator. GNP - GDP Net income inflow from abroad- Net income outflow to foreign countries.Therefore, if gains of increase in per capita income are grabbed by a small section of society, then economic growth will not lead to economic development.
34. Consider the following statements: Human capital formation as a concept is better explained in terms of a process, which enables 1. individuals of a country to accumulate more capital. 2. increasing the knowledge, skill levels and capacities of the people of the country. 3. accumulation of tangible wealth. 4. accumulation of intangible wealth. Which of the statements given above is/are correct? (a) 1 and2 (b) 2 only (c) 2 and 4 (d) 1, 3 and 4
. Answer.b . Explanation: The term human capital formation implies the development of abilities and skills among the population of the country . According to Harbison, the human capital formation indicates, "The process of acquiring and increasing the number of persons who have the skills, education and experience which are critical for the economic and the political development of the country
. Human capital formation is thus associated with investment in man and his development as a creative and productive resource.Thus, human capital formation indicates investment for imparting education, improvement of health and training of workers in specialised skills. Although the accumulation of physical capital is quite important in the process of economic growth of a country but with the passage of time, it is being increasingly realised that the growth of tangible capital stock depends extensively on the human capital formation must get its due importance US
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