UPSC 2022 Economy Previous Year Questions

Question 1

With reference to the "United Nations Credentials Committee", consider the following statements: 1. It is a committee set up by the UN Security Council and works under its supervision. 2. It traditionally meets in March, June and September every year. 3. It assesses the credentials of all UN members before submitting a report to the General Assembly for approval. Which of the statements given above is/are correct?

Accepted Answer

Correct Option: A. 3 only | 1 and 3 | 2 and 3 | 1 and 2. The UN Credentials Committee is appointed by the General Assembly, not the Security Council, and it does not traditionally meet in March, June and September. It examines member credentials and reports to the General Assembly.

Question 2

Consider the following statements: 1. Vietnam has been one of the fastest growing economies in the world in the recent years. 2. Vietnam is led by a multi-party political system. 3. Vietnam's economic growth is linked to its integration with global supply chains and focus on exports. 4. For a long time Vietnam's low labour costs and stable exchange rates have attracted global manufacturers. 5. Vietnam has the most productive e-service sector in the Indo-Pacific region. Which of the statements given above are correct?

Accepted Answer

Correct Option: C. 2 and 4 | 3 and 5 | 1, 3 and 4 | 1 and 2. Vietnam has grown rapidly, is integrated with global supply chains/export manufacturing, and has attracted manufacturers due to low labour costs and stable macro conditions. It is a one-party state and not known for the most productive e-service sector in the Indo-Pacific.

Question 3

Consider the following: 1. Asian Infrastructure Investment Bank 2. Missile Technology Control Regime 3. Shanghai Cooperation Organisation India is a member of which of the above '

Accepted Answer

Correct Option: D. 1 and 2 only | 3 only | 2 and 3 only | 1, 2 and 3. India is a founding member of the Asian Infrastructure Investment Bank (operational 2016, Beijing), joined the Missile Technology Control Regime in 2016, and has been a full member of the Shanghai Cooperation Organisation since 2017.

Question 4

With reference to the Banks Board Bureau (BBB), which of the following statements are correct? 1. The Governor of RBI is the Chairman of BBB. 2. BBB recommends for the selection of heads for Public Sector Banks. 3. BBB helps the Public Sector Banks in developing strategies and capital raising plans. Select the correct answer using the code given below:

Accepted Answer

Correct Option: B. 1 and 2 only | 2 and 3 only | 1 and 3 only | 1, 2 and 3. BBB was not chaired by the RBI Governor. It recommended selection of public sector bank heads and assisted PSBs with strategy/capital raising plans.

Question 5

Consider the following statements: 1. In India, credit rating agencies are regulated by Reserve Bank of India. 2. The rating agency popularly known as ICRA is a public limited company. 3. Brickwork Ratings is an Indian credit rating agency. Which of the statements given above are correct?

Accepted Answer

Correct Option: B. 1 and 2 only | 2 and 3 only | 1 and 3 only | 1, 2 and 3. Credit rating agencies are regulated by SEBI, not RBI. ICRA is a public limited company and Brickwork Ratings is an Indian credit rating agency.

Question 6

If a major solar storm (solar flare) reaches the Earth, which of the following are the possible effects on the Earth? 1. GPS and navigation systems could fail. 2. Tsunamis could occur at equatorial regions. 3. Power grids could be damaged. 4. Intense auroras could occur over much of the Earth. 5. Forest fires could take place over much of the planet. 6. Orbits of the satellites could be disturbed. 7. Shortwave radio communication of the aircraft flying over polar regions could be interrupted. Select the correct answer using the code given below:

Accepted Answer

Correct Option: C. 1, 2, 4 and 5 only | 2, 3, 5, 6 and 7 only | 1, 3, 4, 6 and 7 only | 1, 2, 3, 4, 5, 6 and 7. Major solar storms can disrupt GPS/navigation, power grids, satellites, auroras and polar shortwave radio communication. They do not cause tsunamis or widespread forest fires directly.

Question 7

Which one of the following statements best reflects the idea behind the "Fractional Orbital Bombardment System" often talked about in media?

Accepted Answer

Correct Option: C. A hypersonic missile is launched into space to counter the asteroid approaching the Earth and explode it in space. | A spacecraft lands on another planet after making several orbital motions. | A missile is put into a stable orbit around the Earth and deorbits over a target on the Earth. | A spacecraft moves along a comet with the same speed and places a probe on its surface.. A Fractional Orbital Bombardment System places a weapon into partial/low orbit and then deorbits it t

Question 8

Among the following crops, which one is the most important anthropogenic source of both methane and nitrous oxide?

Accepted Answer

Correct Option: B. Cotton | Rice | Sugarcane | Wheat. Flooded rice paddies are a major anthropogenic source of methane, and nitrogen fertilizer/wetland conditions also contribute nitrous oxide. Among the options, rice is the key crop for both gases.

Question 9

Which one of the following situations best reflects "Indirect Transfers" often talked about in media recently with reference to India?

Accepted Answer

Correct Option: D. An Indian company investing in a foreign enterprise and paying taxes to the foreign country on the profits arising out of its investment | A foreign company investing in India and paying taxes to the country of its base on the profits arising out of its investment | An Indian company purchases tangible assets in a foreign country and sells such assets after their value increases and transfers the proceeds to India | A foreign company transfers shares and such shares derive the

Question 10

Which of the following activities constitute real sector in the economy? 1. Farmers harvesting their crops 2. Textile mills converting raw cotton into fabrics 3. A commercial bank lending money to a trading company 4. A corporate body issuing Rupee Denominated Bonds overseas Select the correct answer using the code given below:

Accepted Answer

Correct Option: A. 1 and 2 only | 2, 3 and 4 only | 1, 3 and 4 only | 1, 2, 3 and 4. The real sector covers production of goods and services, such as farming and textile manufacturing. Bank lending and overseas bond issuance are financial-sector activities.

UPSC 2022 Economy PYQs with Answers