10 November 2023

Q1. The mutual delegation of executive power between centre and states cannot occur:

1. From Centre to State through President
2. From State to Centre through Governor
3. From Centre to State through Parliament
4. From State to Centre through State legislature

• Solution:

(D)

• President may, with the consent of the state government, entrust to that government any of the executive functions of the Centre.
• Conversely, the governor of a state may, with the consent of the Central government, entrust to that government any of the executive functions of the state.
• Constitution also makes a provision for the entrustment of the executive functions of the Centre to a state without the consent of that state.
• But, in this case, the delegation is by the Parliament and not by the president.
• Notably, the same thing cannot be done by the state legislature.

Q2. Constitution confers executive power of a subject in the Concurrent list to:

1. Union Government
2. State Governments
3. President
4. All of the above

• Solution:

(B)

• In respect of matters on which both the Parliament and the state legislatures have power of legislation (i.e., the subjects enumerated in the Concurrent List), the executive power rests with the states except when a Constitutional provision or a parliamentary law specifically confers it on the Centre.

Q3. Consider the following statements:

• Council of Ministers are collectively responsible to the Parliament.
• Chairman of Rajya Sabha preside over a joint sitting of the two houses of the Parliament in the absence of Speaker.
• Resignation or death of an incumbent Chief Minister dissolves the Council of Ministers.

Which of the above statements is/are correct:

1. 1 and 3 only
2. 1, 2 and 3
3. 1 only
4. 3 only

• Solution:

(D)

• Council of Ministers are collectively responsible to the Lok Sabha.
• Chairman of Rajya Sabha cannot preside over a joint sitting of the two houses of the Parliament in any circumstance.

Q4. Consider the following statements regarding Ocean Currents:

• Water density and temperature influences the mobility of ocean currents.
• Cold Water ocean currents travel from the equator along the surface, towards the cold polar regions.
• Labrador current is a cold current.

Which of the above statements is/are correct:

1. 1, 2
2. 2, 3
3. 1, 3
4. 1, 2, 3

• Solution:

(C)

• Differences in water density affect vertical mobility of ocean currents. Water with high salinity is denser than water with low salinity and in the same way cold water is denser than warm water.
• Denser water tends to sink, while relatively lighter water tends to rise.
• Cold-water ocean currents occur when the cold water at the poles sinks and slowly moves towards the equator.
• Warm-water currents travel out from the equator along the surface, flowing towards the poles to replace the sinking cold water.

Q5. Consider the following statements:

• Surface current constitute more than the deep-water currents.
• Cold currents are usually found in the west coast in the higher latitudes in the Northern Hemisphere.
• Warm currents are found on the east coast of continents in the low and middle latitudes.

Which of the above statements is/are correct:

1. 1, 3
2. 2, 3
3. 3 only
4. 1, 2

• Solution:

(C)

• Ocean currents can also be classified based on temperature: as cold currents and warm currents:
• Cold currents bring cold water into warm water areas.
• These currents are usually found on the west coast of the continents in the low and middle latitudes (true in both hemispheres) and on the east coast in the higher latitudes in the Northern Hemisphere.

• Warm currents bring warm water into cold water areas and are usually observed on the east coast of continents in the low and middle latitudes (true in both hemispheres).
• In the northern hemisphere they are found on the west coasts of continents in high latitudes.

Q6. The term “Sub Urbanisation” refers to:

1. Movement of population from urban areas to rural areas
2. Movement of people from central urban area to satellite communities
3. Population shift from rural areas into suburbs
4. Reduction of population in lower tier cities

• Solution:

(B)

• Suburbanization is a population shift from central urban areas into suburbs, resulting in the formation of (sub)urban sprawl.
• As a consequence of the movement of households and businesses out of the city centers, low-density, peripheral urban areas grow.
• (Sub-urbanization is inversely related to urbanization, which denotes a population shift from rural areas into urban centres.)
• Many residents of metropolitan regions work within the central urban area, and choose to live in satellite communities called suburbs and commute to work via automobile or mass transit.

Q7. Open Acreage Licensing, often seen in news, is related to:

1. Hydrocarbon exploration
2. Railways
3. Mining of Iron ore
4. Land Acquisition

• Solution:

(A)

• The OALP, a critical part of the Hydrocarbon Exploration and Licensing Policy, provides uniform licences for exploration and production of all forms of hydrocarbons, enabling contractors to explore conventional as well as unconventional oil and gas resources.
• Fields are offered under a revenue-sharing model and throw up marketing and pricing freedom for crude oil and natural gas produced.

Q8. There will be progressively lesser difference between Gross Domestic Product (GDP) and Net Domestic Product (NDP):

1. If technological growth is slow in a nation and capital depreciation is high
2. If technological growth is high in a nation and capital depreciation is low
3. If technological growth is slow in a nation and capital depreciation is high
4. If technological growth is high in a nation and capital depreciation is high

• Solution:

(B)

• NDP is essentially the GDP discounted for the total value of the ‘wear and tear’ (depreciation) that happened in the assets while the goods and services were being produced.
• It means GDP minus depreciation is NDP. Depreciation is caused due to wear and tear of capital or due to poor technological growth that fails to cut down levels of depreciation.
• Lower the depreciation, lesser will be the difference between GDP and NDP.
• This is achieved best in the case of option (b)

Q9. “Rent Seeking activities” by business firms often involve:

1. Strategizing to cut down rental costs of factors of production
2. Lobbying the government to change rules for making business profitable
3. Speculating in financial markets to gain competitive advantage
4. Seeking investment from multiple avenues to manage cash burden

• Solution:

(B)

• Trying to get the government to change the rules so as to make one’s business more profitable rather than spending time and money not on the production of real goods and services is called as rent seeking.
• It is like cutting a bigger slice of the cake rather than making the cake bigger trying to make more money without producing more for customers.
• Rent-seeking and crony capitalism are closely related.
• These erode an economy’s competitiveness, leads to concentration of wealth and inequity.

Q10. Why ‘Indirect Tax’ is considered as regressive taxation:

1. They are not charged the same for all income groups
2. They are charged at higher rates than direct taxes
3. They are charged at lower rates than direct taxes
4. None of the above

• Solution:

(D)

• Indirect taxes make the distribution of income more unequal because of their regressive effects.
• The poor will get taxed a higher proportion of their income than the rich, making it a regressive tax.
• Higher indirect taxes can cause cost-push inflation which can lead to a rise in inflation expectations.