1. Consider the following statements with reference to the ‘Research and Development Statistics of India :
1. The Gross expenditure on research and development (GERD) in India has consistently increased over the last decade.
2. The government spending constitutes nearly 60% of the total gross expenditure on the research and development in India.
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
Answer: c
Explanation: National Science and Technology Management Information System (NSTMIS) have recently released research and development statistics and indicator 2019-20. NSTMIS operates under the Department of Science and Technology.
The Gross expenditure on R&D (GERD) in the country has been consistently increasing (Not as a percentage of GDP) over the decade and has nearly tripled from Rs. 39,437.77 crore in 2007- 08 to Rs. 1,13,825.03 crore in 2017-18. So, statement (1) is correct.
India’s GERD as a percentage of GDP remained at 0.7% during the years 2017-18 and 2018-19 respectively.
Gross Expenditure on R&D (GERD) is mainly driven by the Government sector comprising of Central Government 45.4%, State Governments 6.4%, Higher Education 6.8% and Public Sector Industry 4.6% with Private Sector Industry contributing 36.8% during 2017-18. So, statement (2) is correct. Therefore the correct answer is c.
2. Consider the following statements with reference to the Prime Minister’s Employment Generation
Programme:
1. It has been launched by the Ministry of Skill Development and Entrepreneurship.
2. It is a credit-linked subsidy programme aimed at generating self-employment opportunities.
3. It is implemented by the Khadi and Village Industries Commission (KVIC), State Khadi and
Village Industries Board (KVIB) and District Industries Centres (DIC).
Which of the statements given above are correct?
a) 1 and 3 only
b) 1 and 2 only
c) 2 and 3 only
d) None of the above
Answer: c
Explanation:
The Prime Minister’s Employment Generation Programme has been launched and implemented by the Ministry of Micro, Small and Medium Enterprises (MSME). So, Statement (1) is not correct. It is a major credit-linked subsidy programme aimed at generating self-employment opportunities through establishment of micro-enterprises in the non-farm sector by helping traditional artisans and unemployed youth. So, Statement (2) is correct.
The scheme is being implemented by Khadi and Village Industries Commission (KVIC), State Khadi and Village Industries Board (KVIB) and District Industries Centres (DIC). Under the scheme, a loan is being provided by all Public Sector Banks, selected Private Sector Banks and Co-operative Banks with margin money subsidy being given by Ministry of MSME through KVIC. So, Statement (3) is correct.
Therefore, the correct answer is c.
3. Consider the following statements:
1. Euro Zone crisis was a fiscal crisis due to reckless fiscal spending in the past decade.
2. The 2011 US Crisis was a sovereign debt crisis due to an increase in external borrowing.
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
Answer: d
Explanation:
The European debt crisis is a multi-year debt crisis that has been taking place in the European Union since the end of 2009. Several eurozone member states were unable to repay or refinance their government debt or to bail out over-indebted banks under their national supervision without the assistance of third parties like other eurozone countries, the European Central Bank (ECB), or the International Monetary Fund (IMF). Euro Zone crisis was a sovereign debt crisis due to increased external borrowing. Whereas, the 2011 US Crisis was a fiscal crisis due to reckless fiscal spending in the past decade. So, both the statements are not correct.
Therefore, the correct answer is d.
4. In the context of World Trade Organisation, which of the following is/are correctly matched?
1. Mode 1 service : Cross border supply
2. Mode 2 service : Commercial presence
3. Mode 4 service : Presence of natural people
Select the correct answer using the codes given below.
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answer (c) Explanation :
The General Agreement on Trade in Services (GATS) under WTO covers all internationally-traded services — for example, banking, telecommunications, tourism, professional services, etc. It also defines four ways (or “modes”) of trading services:
Mode 1: Services supplied from one country to another (e.g. international telephone calls), officially known as “cross-border supply”
Mode 2: consumers or firms making use of a service in another country (e.g. tourism), officially “consumption abroad”
Mode 3: a foreign company setting up subsidiaries or branches to provide services in another country (e.g. foreign banks setting up operations in a country), officially “commercial presence”
Mode 4: individuals travelling from their own country to supply services in another (e.g. fashion models or consultants), officially “presence of natural persons”
5. Consider the following statements about the foreign exchange market:
(1) If real exchange rate is equal to one, currencies are at purchasing power parity.
(2) Purchasing power parity is often taken as a measure of a country's international competitiveness.
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
Answer: (a) Explanation:
Statement 1 is correct. Real exchange rate is the ratio of foreign to domestic prices, measured in the same currency. If the real exchange rate is equal to one, currencies are at purchasing power parity. Statement 2 is incorrect. The real exchange rate (not Purchasing Power Parity) is often taken as a measure of a country’s international competitiveness.