UPSC 2023 Economy Previous Year Questions

Question 1

Consider the following statements Statement-I: India's public sector health care system largely focuses on curative care with limited preventive, promotive and rehabilitative care. Statement-II: Under India's decentralized approach to health care delivery, the States are primarily responsible for organizing health services. Which one of the following is correct in respect of the above statements?

Accepted Answer

Correct Option: B. Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I | Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I | Statement-I is correct but Statement-II is incorrect | Statement-I is incorrect but Statement-II is correct. Both statements are correct: public health delivery has historically emphasized curative care and health services are primarily organized by States. The

Question 2

Consider the following statements 1. The Self-Help Group (SHG) programme was originally initiated by the State Bank of India by providing microcredit to the financially deprived. 2. In an SHG, all members of a group take responsibility for a loan that an individual member takes. 3. The Regional Rural Banks and Scheduled Commercial Banks support SHGs. How many of the above statements are correct?

Accepted Answer

Correct Option: B. Only one | Only two | All three | None. The SHG-bank linkage programme was initiated by NABARD, not SBI. Group liability is central to SHG lending, and RRBs/scheduled commercial banks support SHGs, so two statements are correct.

Question 3

In the context of finance, the term 'beta' refers to

Accepted Answer

Correct Option: D. the process of simultaneous buying and selling of an asset from different platforms | an investment strategy of a portfolio manager to balance risk versus reward | a type of systemic risk that arises where perfect hedging is not possible | a numeric value that measures the fluctuations of a stock to changes in the overall stock market. In finance, beta measures a security's volatility relative to movements in the overall market.

Question 4

With reference to Central Bank digital currencies, consider the following statements 1. It is possible to make payments in a digital currency without using US dollar or SWIFT system. 2. A digital currency can be distributed with a condition programmed into it such as a time-frame for spending it. Which of the statements given above is/are correct?

Accepted Answer

Correct Option: C. 1 only | 2 only | Both 1 and 2 | Neither 1 nor 2. CBDCs can enable settlement without the US dollar/SWIFT rails and can be programmed with conditions such as time-bound use, depending on design.

Question 5

Consider the following statements with reference to India 1. According to the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, the 'medium enterprises' are those with investments in plant and machinery between Rs. 15 crore and Rs. 25 crore. 2. All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector. Which of the statements given above is/are correct?

Accepted Answer

Correct Option: B. 1 only | 2 only | Both 1 and 2 | Neither 1 nor 2. The post-2020 MSME definition uses investment and turnover thresholds, not the Rs. 15-25 crore investment band stated. Bank loans to MSMEs qualify for priority-sector treatment subject to RBI norms, so only statement 2 is correct.

Question 6

Consider the following infrastructure sectors: 1. Affordable housing 2. Mass rapid transport 3. Health care 4. Renewable energy On how many of the above does UNOPS Sustainable Investments in Infrastructure and Innovation (S3i) initiative focus for its investments?

Accepted Answer

Correct Option: C. Only one | Only two | Only three | All four. UNOPS S3i has focused on affordable housing, renewable energy and health infrastructure. Mass rapid transport is not part of the listed focus areas for this question.

Question 7

Consider the following 1. Demographic performance 2. Forest and ecology 3. Governance reforms 4. Stable government 5. Tax and fiscal efforts For the horizontal tax devolution, the Fifteenth Finance Commission used how many of the above as criteria other than population area and income distance?

Accepted Answer

Correct Option: B. Only two | Only three | Only four | All five. The Fifteenth Finance Commission used demographic performance, forest and ecology, and tax/fiscal effort in addition to population, area and income distance. Stable government and governance reforms were not such horizontal devolution criteria.

Question 8

Consider the investments in the following assets 1. Brand recognition 2. Inventory 3. Intellectual property 4. Mailing list of clients How many of the above are considered intangible investments?

Accepted Answer

Correct Option: C. Only one | Only two | Only three | All four. Brand recognition, intellectual property and client mailing lists are intangible assets. Inventory is a tangible current asset.

Question 9

Consider the following statements: 1. The Government of India provides Minimum Support Price for niger (Guizotia abyssinica) seeds. 2. Niger is cultivated as a Kharif crop. 3. Some tribal people in India use niger seed oil for cooking. How many of the above statements are correct?

Accepted Answer

Correct Option: C. Only one | Only two | All three | None. Niger seed has MSP coverage, is grown as a kharif oilseed in India, and its oil is used by tribal communities for cooking.

Question 10

Which one of the following best describes the concept of 'Small Farmer Large Field'?

Accepted Answer

Correct Option: B. Resettlement of a large number of people, uprooted from their countries due to war, by giving them a large cultivable land which they cultivate collectively and share the produce | Many marginal farmers in an area organize themselves into groups and synchronize and harmonize selected agricultural operations | Many marginal farmers in an area together make a contract with a corporate body and surrender their land to the corporate body for a fixed term for which the corporate bo

UPSC 2023 Economy PYQs with Answers